TEFAP Alliance Blog

September 2002

In This Issue:
• Fiscal Year 2003 Appropriations Stalled
• States Opt to Increase Administrative Dollars
• Election Year Pork

Fiscal Year 2003 Appropriations Stalled

Appropriations for TEFAP may be frozen for 2003 at this year’s funding levels. It is mid-way through September, and Congress has not passed any of the 13 appropriations bills needed to fund the government in the new fiscal year that begins in October. At this point, it is unlikely that any appropriations bill will be enacted before October 1.
As a result, Congress is expected to pass a Continuing Resolution (CR) in the near future, keeping all government spending at current levels for the start of fiscal year 2003. What remains unknown is when a CR will pass and how long it will be in effect. Congress may hold a lame duck session in November after the elections to pass appropriations or may keep a CR in force until well into calendar year 2003.
Unless the CR also contains across-the-board cuts, funding for TEFAP storage and processing costs under a CR would be held at $50 million. However, if a provision of the new Farm Bill passed in May is permitted to take effect, TEFAP will receive a mandatory $140 million for food purchases, further exacerbating the mismatch between the amount of food available and funds to distribute it.

States Opt to Increase Administrative Dollars
When USDA announced in July that up to $5 million in TEFAP food funds could be converted to administrative purposes, cash-starved states jumped at the opportunity to boost their operating budgets. USDA reports that almost all of the $5 million was re-programmed to cover storage and transportation expenses to help move entitlement items as well as the over $300 million in bonus commodities pumped into the program this year.
One critical unknown for TEFAP in any continuing resolution is whether the legislation will continue to give USDA the $5 million conversion authority, which will be critical if there is no possibility of increasing storage and processing funds through appropriations. States appeared to need just about every penny of TEFAP administrative funding they could get their hands on this fiscal year. USDA reports that just $40,000 of the $50 million in appropriated funds were available for reallocation at the end of the fiscal year.

Election Year Pork
On September 9, USDA Secretary Ann Veneman announced that the Department will purchase an additional $30 million of pork products for use in school feeding and nutrition programs, including TEFAP. “These purchases will provide a boost to pork producers who have experienced tough economic conditions this year,” said Veneman.
The dollar total translates into 52 million pounds of fresh and processed pork products, which will be added to the nearly 14 million pounds of pork USDA has already purchased this year for schools. The government this year as compared to last year is buying more than twice as much pork overall.

Washington Update
Friday, September 13, 2002

mvauthier :: Sep.13.2002 :: Washington Update :: No Comments »:: Print This Post

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