April 30, 2007
FY 2007 Supplemental and FY 2008 Budget Update
Last week, the House approved and the Senate cleared the conference report to the FY 2007 emergency supplemental appropriations bill (H. Rpt. 110-107/H.R. 1591). The measure provides war funding, hurricane relief and additional domestic spending. The president will veto it.
A new emergency supplemental bill is being negotiated, and the White House has called a meeting with congressional leaders for this week.
Conferees to the FY 2008 budget resolution may be named this week (H. Con. Res 99 and S. Con. Res. 21). The measures set the discretionary funding levels that appropriations committees allocate among their bills.
Key issues to be resolved in budget resolution negotiations include whether to use a projected surplus in 2012 to extend expiring tax provisions and add new spending for the State Children's Health Insurance Program (SCHIP) as assumed in the Senate version, or to identify other offsets for SCHIP costs as called for in the House version. Differences also include the Senate's two-year alternative minimum tax patch vs. the House's one-year extension, and an education reconciliation instruction that is included in the House plan.
House appropriations bills could be marked-up over the next two weeks. If a budget resolution has not been finalized before consideration of the appropriations bills begins, a "deeming" resolution may set the cap at the House-passed level of $955 billion. The Senate is scheduled to begin marking up its spending bills in May or early June.
April 25, 2007
2007 Medicare Trustees Report Released
The Medicare Modernization Act requires the Medicare Board of Trustees to report a "Medicare funding warning" whenever general fund revenue exceeds 45% of total Medicare costs. If done two years in a row this requires the president in his next budget to propose ways of either increasing funding or decreasing costs, and provides for expedited floor consideration of such legislative proposals. Increasing revenues could include increasing the Medicare payroll tax, making Medicare benefits taxable, increasing beneficiary premiums (including the substantial state contribution for dual eligibles) and increasing the clawback. The Trustees report makes such a warning, and the FY 2009 federal budget will include such a set of recommendations.
Amendment Filed to Make Internet Access Tax Moratorium Permanent
Late yesterday, Senator John Sununu filed an amendment to S. 761, the America COMPETES Act, that would make the current Internet Access Tax Moratorium permanent. It is uncertain when the amendment will be considered.
April 24, 2007
Conferees Reach Agreement on Supplemental
House and Senate conferees have reached an agreement on the FY 2007
emergency supplemental appropriations bill (H.R. 1591). H.R. 1591 includes
provisions calling for
In addition to war funding, H.R. 1591 provides about $20 billion in domestic spending, including $3.5 billion for agriculture disaster assistance, $2.25 billion for homeland security programs and $400 million for the Low-Income Home Energy Assistance program.
It also has Medicaid and SCHIP provisions. It would provide $650 million for SCHIP, to cover anticipated shortfalls in 14 states. The bill also would provide a one-year moratorium on rulemaking or other administrative actions relating to the Medicaid provider reimbursement rule or graduate medical education.
April 19, 2007
New Earmarks Website
The Office of Management and Budget has launched a website that identifies appropriations earmarks by state. The link can be found here.
April 9, 2007
Chemical Safety Regulations Released
The Department of Homeland Security (DHS) issued final rules for regulating security at chemical facilities. High-risk chemical sites will be required to provide officials with a vulnerability assessment and safety plans. The rules include a stipulation that bars state and local governments from enacting any chemical security law that conflicts with, interferes with or frustrates federal regulations. Both the House and Senate FY 2007 supplemental appropriations bills explicitly preserve states' abilities to supplement the DHS regulations.
Firefighters Grants Available
On Thursday, March 29, DHS announced the FY 2007 application period for Assistance to Firefighters Grants (AFG). More than $492 million will be available. Grants are awarded on a competitive basis. AFG awards assist first-responder organizations in purchasing response equipment, personal protective equipment and vehicles. Awards are allocated through two AFG programs. The Operations and Safety program prioritizes funding for activities such as training, equipment, personal protective equipment, wellness, fitness, and health and safety modifications to stations and facilities. The Vehicle Acquisition program prioritizes funding for assets such as brush trucks, tankers and tenders, rescue vehicles, ambulances, aerials, foam units and fireboats. The application period ends Friday, May 4. Applications are available online at three locations: www.firegrantsupport.com, www.usfa.fema.gov, and www.grants.gov.
Department of Education Grants Forecast
The FY 2007 Department of Education Grants Forecast is located here. It lists virtually all programs and competitions under which the department has invited or expects to invite applications for awards and provides actual or estimated dates for the transmittal of applications under these programs. The document is advisory only.
April 2, 2007
FY 2008 Budget Resolution Negotiations to Begin
Staff-level negotiations on the FY 2008 budget resolution are scheduled to begin this week even though Congress has adjourned for its spring recess. The House and Senate resolutions are similar in that they impose pay-as-you-go budget rules and increase discretionary spending. The House plan calls for about $25 billion more than the president's proposal and about $7 billion more than the Senate version. The Senate plan assumes $15 billion for SCHIP without offsets and $35 billion more if offsets are found, while the House plan allows up to $50 billion with offsets (potentially from higher tobacco taxes). Other differences include the Senate's two-year alternative minimum tax "patch" vs. the House plan's one-year extension and the House plan's $20 billion increase in farm programs vs. the Senate's $15 billion, with both plans calling for offsets.