Wednesday, April 20, 2011

Please see below information on SBA budget. This is good news given the pressure to cut spending in Washington.

S.B.A. Spared in Congress 2011 Spending Deal

While many federal agencies will take a haircut in the spending bill negotiated recently between Senate Democrats and House Republicans — total nonmilitary discretionary spending will be cut by 7 to 8 percent from 2010 levels — the Small Business Administration has emerged from the negotiations largely intact.

The bill trims 0.2 percent from every nonmilitary discretionary account, including those that finance the S.B.A. But it also aims at specific programs with deeper cuts, and here the S.B.A. was effectively spared. In February, the House voted to cut $25 million, or about 6 percent, from the agency’s 2011 salaries and expenses budget, which pays for much of its small-business mission, including the counseling grants that the agency passes on to other organizations (such as Score and the small business development centers). In the end, however, House and Senate negotiators restored the appropriation to $433 million. The business loan guarantee programs are financed through a separate account, which also retained its 2010 funding of $236 million.

There is a bill in Sacramento SB 776 sponsored by the California Federation of Labor, the Building Trades and the California Manufacturing and Technology Association which requires that 50% of the Workforce Investment Act funds go directly to into workforce training . According to the California Workforce Association who opposes the bill this would force closure of about 30% of the career centers. Do any of you use the Career Centers? How effective are they? What do you think about this legislation.

It is required that 25% of state contracts go to small business. I have been asked if I would be interested in testifying on the cumulative economic impacts of small business in obtaining these contracts. Some background on this in 2004 the Schwarzenegger administration launched its Strategic Source initiative, and effort to leverage California purchasing power through large statewide contracts for items such as office products and other commodities The savings according to some sources was $160 million. Many of these contracts were taken away from small business. Please note 18% of the states contracts are Strategic Sourcing. What are your thoughts

Scott Hauge
Small Business California
2311 Taraval Street
San Francisco, CA 94116

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