Budget Conference Begins

The House and Senate met this week to reconcile differences on their respective budget resolutions for fiscal year 2008 (FY08). Although Congress held the first formal conference meeting yesterday, a final agreement is unlikely until next week. The House budget provides $7 billion more in discretionary spending than the Senate measure. Budget Chairmen Rep. John Spratt (D-SC) and Sen. Kent Conrad (D-ND) are contemplating a $20-plus billion boost to the President’s FY08 discretionary funding request for non-security domestic programs. The final budget blueprint should match the White House request for the Pentagon. The conferees are on the clock as appropriators can begin clearing FY08 discretionary spending bills for floor action beginning May 15th, with or without a final budget resolution that sets an overall spending cap.



The Senate bill, S Con Res 21, proposes $9.2 billion more than the President’s proposal on education and training, including $62.1 billion for the Department of Education, $6.1 billion more than requested. The House resolution, H Con Res 99, projects a $153 billion surplus in fiscal 2012. That includes a $1.1 trillion cap on discretionary spending, which is almost $25 billion more than the President’s discretionary request for FY08. The budget plan allows for tax cut extensions and new mandatory entitlement programs, such as a potential $50 billion expansion of children’s health care and $20 billion for farm programs – but only if Congress can offset the costs. The bill provides $83.3 billion in discretionary budget authority for function 500, a 2008 program level that is $3.0 billion over current spending for education, training, and social services.
Once appropriators start their markups, the Labor-HHS-Education Appropriations bill might be the third bill to reach the house floor, following the Homeland Security and Energy bills. Mark up on the Labor-HHS-Education bill could happen as early as next week, depending on what happens with the budget conference. Regardless, House Appropriations Labor-HHS-Education Subcommittee chairman, Rep. David Obey (D-WI), wants the bill passed through committee by Memorial Day (Monday, May 28). That puts the bill on the House floor by the end of May or early June. House majority leader Steny Hoyer (D-MD) has June scheduled as “Appropriations Month” on the House calendar. Hoyer claims all appropriations bills will get through the House before the Fourth of July recess.
Resources:
David Clarke, “Budget Negotiators Appear Near a Deal; Jousting Begins on Senate Floor,” CQ Today, May 9, 2007.
Scott Cox, “Budget Conference Set to Begin Today, With Agreement Expected Next Week,” Congress Now, May 10, 2007.
Author: SAS