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Protecting County Interests in a Challenging Fiscal Era In the first session of the 112th Congress, county governments saw an onslaught of efforts to address deficit reduction Because of these efforts, counties have begun to feel the effects of cuts in federal assistance. Combined with reduced state funding and lower local revenue these cuts are forcing counties to reduce staff and services, threatening many vital county programs. As the nation's leaders continue to debate the options for addressing our fiscal ills, NACo has expressed support for a balanced approach in tackling America's debt problems, an approach that would lessen the burden on counties and their residents. We have adopted four key principles which we believe should guide discussions as deficit reduction options are being considered. They are as follows: The federal government cannot solve the budgetary deficit by only cutting domestic, non - military discretionary programs. Federal assistance to state and local governments will help mitigate further layoffs. Federal investment in state and local infrastructure produces private sectorjobs. Deficit reduction should not be accomplished by shifting costs to counties and their residents, imposing unfunded mandates, or preempting county programs or taxing authority. County governments are partners with the federal government and states in providing important programs and services to the American people. For county officials, "special interests" are constituents who decided to put trust in them as public servants to adopt sound fiscal policies while providing the basic services for which constituents pay. As the 112th Congress begins its second session, the NACo Board of Directors eleven Steering Committees Large Urban ( LUCC ) and Rural ( County Caucuses have adopted the key priorities listed below. The issues are not presented in priority order and are among many concerns that NACo will pursue. On all issues, county officials seek solutions that will protect vital county programs, effectively serve our common constituents and promote job creation. The adopted priorities are as follows: Promote a balanced approach to deficit reduction. Protect county programs during budget deficit reduction and appropriation considerations. Balance includes looking at discretionary, defense and entitlement spending, and revenue enhancements. Support the reauthorization of the Farm Bill and Priority for Rural Development Programs. Work to eliminate the federal health benefits " inmate exception for persons in county jails and detention centers who are in custody pending disposition of charges. Maintain the original federal- state -local partnership for financing and delivering Medicaid and social services, and oppose measures that will shift Medicaid and social service costs to counties. Maintain full funding for Payments in Lieu Of Taxes ( Secure Rural Schools ( programs and Community Self- Determination Act Reauthorize aviation and surface transportation programs. Oppose unfunded mandates and preemptions. For more information about NACo's legislative policy positions or to contact the Legislative Department, click here. Presidential Initiative Page 159