DRA: FY 2021 Close-Out Budget Justification Page 1 of 6 September 2019

Delta Regional Authority (DRA)

Congressional Justification for Close-Out Budget 

Fiscal Year 2021

Introduction

President Trump submitted his Budget Blueprint to Congress proposing to eliminate funding for 

programs considered unnecessary, outdated, or not working. Delta Regional Authority (DRA) was 

proposed to be eliminated in that Budget. This narrative is presented as justification to the FY 2021 

Budget Close-Out presented on page 2.

Forward

Currently, participating states pay 50% of DRA’s administrative costs, less federal employees 

expenses. In a close-out scenario, 100% of DRA’s funding would come from federal 

appropriations as the States will not pay an assessment when they are not going to receive grants, 

therefore, this burden falls on the federal appropriation and some expenses presented may be 

higher than usual.

Source and (Uses) of Appropriations

The attached budget table indicates the source and (uses) of DRA’s federal appropriations and a 

detailed presentation of its close-out expenditures as follows:

• FY 2020 Approved Budget,

• FY 2021 Potential Close-Out Budget, and

• Comparison of FY 2021 Potential Close-Out Budget to FY 2020 Approved Budget.

Format and Content

DRA’s administrative budget presentation on the attached table is presented in three sections:

1. “Source – Federal Appropriation and State Assessments”,

2. “Uses and Investment” of that appropriation – Local Development Districts (LDD) Technical

Assistance and,

3. “Administration” – Expenses classified at the major object class level.
DRA: FY 2021 Close-Out Budget Justification Page 2 of 6 September 2019

Delta Regional Authority

Close-Out Budget Congressional Justification

FY 2021

FY 2021

FY 2021 Close-Out

FY 2020 Proposed Over (Under)

Approved Close-Out FY 2020

Source Approved Budget Budget Approved Budget

Federal Appropriations $ 30,000,000 $ 2,458,000 $ (27,542,000)

State Assessments 1,173,914 - (1,173,914)

Total Federal and State Appropriations $ 31,173,914 $ 2,458,000 $ (28,715,914)

(Uses) & Investments

State Economic Development Assistance Program (SEDAP) 12,277,108 - (12,277,108)

Congressionally Directed Infrastructure Fund - (CIF) 15,000,000 - (15,000,000)

Local Development District Technical Assistance 554,000 544,000 (10,000)

Special Programs:

Apprenticeship/Job Training 500,000 - (500,000)

Administration 2,842,806 1,914,000 (928,806)

Total Federal Appropriations $ 31,173,914 $ 2,458,000 $ (28,715,914)

Administration

Object Class

Federal Salaries $ 331,521 $ 175,188 $ (156,333)

Federal Benefits 99,456 52,556 (46,900)

DRA Salaries 909,098 794,243 (114,855)

DRA Benefits 272,729 238,273 (34,456)

Travel - Federal Staff 35,000 39,995 4,995

Travel - Non-Federal Staff 150,000 150,000 -

Professional Services/Contractual Services/Non-Health

Insurance

680,000 292,952 (387,048)

Communications and Outreach 45,000 - (45,000)

Professional Development 25,000 - (25,000)

Rents, Leases, Supplies & Materials, printing, graphics 260,000 168,793 (91,207)

Equipment 35,000 2,000 (33,000)

Total Expenditures $ 2,842,804 $ 1,914,000 $ (928,806)
DRA: FY 2021 Close-Out Budget Justification Page 3 of 6 September 2019

Justification for Use of Federal Appropriation

The Uses section describes congressionally mandated Local Development Districts Technical 

Assistance. DRA is obligated to fund the LDDs at $2,000 for each of the 252 counties/parishes. 

This presentation does not address LDD support in out-years. The amount presented represents:

LDD Technical Assistance (252 counties/parishes at $2,000/Each $ 504,000

Training (44 LDDs at $900/Each 40,000

Total $ 544,000

Administration

Administration - funds necessary to shut the program down are presented below.

Federal Salaries, Benefits, & Travel

The Office of the Federal Co-Chairman (FCC) previously maintained four positions consisting of 

the Federal Co-Chairman, the Alternate Federal Co-Chairman, Chief Counsel, and Senior Advisor. 

This presentation eliminated all (3 positions) but the FCC, a Presidential appointee confirmed by 

the Senate. DRA has no control over federal salaries, benefits, & travel.

Salary - Federal (w/1.9% cola) $ 175,188

Benefits at 30% 52,557

Travel 39,995

Total $ 267,740

DRA Salaries & Fringe Benefits—Non-Federal Staff

Non-federal salaries and benefits begin the year with a full complement (1 federal and 11 nonfederal employees-total 12) of approved positions for October through the first payday in 

November. The assumption is that DRA will have final directions by that time to shut down. Upon 

receipt, DRA will begin immediate terminations as follows: In November terminate 5 of the 12

positions leaving the following 7 positions to shut down operations:

Federal Co-Chair – to direct overall directions of agency,

Senior Technician – comply w/recordkeeping to archive all DRA correspondence/files/records, 

Finance – to continue recording all financial transactions, budget reports, and work with auditors,

Monitoring/Compliance – to ensure grantees continue to follow policies/procedures relative to 

federal grants,

SEDAP Mgr. – to ensure all grant files for the past 17 years are accounted, archived & comply 

w/recordkeeping,

Chief of Staff – to direct remaining employees’ day-to-day activities and ensure progress on shutdown and,

Human Resource Mgr. – to ensure DRA complies with HR policies during shut-down and assist 

with accounting and archival of all records. Federal expenses are as follows:
DRA: FY 2021 Close-Out Budget Justification Page 4 of 6 September 2019

Salaries $ 536,553

Incentive pay 132,000

Severance pay 125,690

Sub-total Salaries $ 794,243

DRA Fringe Benefits—Non-Federal Staff

The effective fringe benefit rate is 30 percent of salaries representing mandated and voluntary 

salary-related expenditures as follows:

• FICA - (social security) at 6.2% of salaries up to $127,200,

• Medicare - at 1.45% of salaries (no max),

• SUTA - State Unemployment Tax 3.06% of the first $12,000 of salary/employee,

• Non-elective retirement 11.7% of total salary, and

Elective retirement (401k) effective rate of 3.2% of employees’ voluntary contribution 

(maximum match of 5%). Fringe benefits consist of:

Social Security $ 49,243

Medicare 11,517

State unemployment 8,446

Medical/health 50,725

Retirement 118,342

Total $ 238,273

Travel - Non-Federal

Travel includes mileage and/or fuel, rental vehicles, hotels, airfare, meals & incidentals, taxis, 

parking, etc., consisting mainly of trips to small rural towns, villages, and parishes without access 

to major public transportation (airlines, train) over 200,000 square miles, 252 counties/parishes, 

and over 500 cities/towns in an eight-state region. DRA’s footprint presents logistical challenges 

that necessitate vehicle travel.

Staff will travel to the three (DC, Little Rock and D.C. offices) branches to gather files, data, 

furniture, and equipment to bring inventory to the central office in Clarksdale, MS, to transfer, sell, 

and/or dispose of equipment per policy. Data on computers must be copied, archived and cleaned 

prior to disposal.

Travel for mandated LDD Technical Training $ 30,000

Airfare, hotels, per diem, mileage 40,000

Vehicle rentals to move/store equipment 10,000

Monitoring & Compliance 50,000

Auctioneer/3rd party to sell/dispose of equipment 20,000

Total Non-federal travel $ 150,000
DRA: FY 2021 Close-Out Budget Justification Page 5 of 6 September 2019

Professional Services

Professional services are for specialists that provide a specific skillset not available with existing 

staff or temporary help. These services are time-limited but do not have non-appropriation clauses 

and will be amended to terminate during FY 2021. Such services consist of:

Policy & research $ 45,000

Public affairs 51,000

Website/social media 40,400

Custodial 25,000

Legal 35,000

Audit 25,000

Outsourced IT 13,000

GSA Financial Mgmt 22,552

Total $ 256,952

Insurance—Non-Health

This line item consists of liability, professional, property, inland marine, worker’s compensation, 

automobile, criminal, employee dishonesty, and fidelity insurance:

Liability $ 8,000

Property 3,000

Work Comp 5,500

Auto 19,500

Total $ 36,000

Printing & Publications

DRA will get the message out to its 44 LDDs, 252 counties/parishes, 8 state Governors, 16 

Senators and a number of Representatives by communicating its shut-down policies and to 

complete projects as well as directions as to whom they will work with through completion of their 

projects and how to close them out. Such publications will include:

Year in Review/collateral materials $ 53,500

Internet/social media 6,500

Print ads 5,000

Total $ 65,000
DRA: FY 2021 Close-Out Budget Justification Page 6 of 6 September 2019

Rent & Leases

The D.C. and Little Rock branch offices have termination clauses whereas the Clarksdale office 

and office machines do not. Rent and leases consist of:

Rent - D.C. $ 12,661

Rent - Clarksdale 57,848

Rent - Little Rock 10,584

Rent - Ofc machines 8,000

Rent - Telephones/fax/WIFI/internet 4,200

Postage 3,500

Office, general/custodial supplies 7,000

Total $ 103,793

Equipment and furniture

Equipment & furniture consist of repairs: $2,000

Total Administration Expenses $1,914,000

Total Close-Out Budget $2,458,000