Majority Leaders Admit Appropriations Will Not Make Deadline

The two majority leaders of the House and Senate were forced to admit last month that Congress will not pass all 12 spending bills for fiscal year 2008 (FY08) by the October 1 deadline. Concessions from the two leaders prompted critics and supporters alike to prepare for the inevitable continuing resolution (CR) to fund government operations until the final bills are passed and signed by the President. Although Congressional schedules are often subject to change, the leaders' choice on an expiration date for the CR will provide a better picture for the timeline on the remaining spending measures.

On Wednesday, September 5, House majority Leader Steny Hoyer (D-MD) finally conceded that Congress will not have all its appropriations work done before the beginning of the next fiscal year. Senate Majority Leader Harry Reid (D-NV) followed suit yesterday, although he assured the public that the Senate will have most of the 11 remaining spending bills finished by the end of the month. Unfortunately, the two chambers still need to go to conference on every one of the 12 FY08 appropriations measures. Rep. Hoyer and Sen. Reid were both reluctant to admit defeat, especially in light of the fact that Democrats won the majority last fall due, in part, to promises to complete appropriations work in a timely, efficient fashion. While Rep. Hoyer hinted towards the Senate's delays are to blame, both leaders attempted to assure that the delay will not be as long as in previous sessions of Congress.

Sen. Reid's promise that most of the bills will be completed by the end of month signals that he hopes to pass a CR that extends funding for a few weeks, rather than months. However, the real fight is not only between the majority and minority on Capitol Hill, but between Congressional leaders and the Bush Administration. The White House, and its allies in Congress, have characterized the Democrat's spending plans as a "$1 trillion meltdown," going to far beyond those levels requested in the President's FY08 Budget Proposal. Democrats, on the other hand, claim that the $22 billion difference between their budget and the President's request is less than a 1% total increase for FY08. Rep. Hoyer claimed that the President's request would end up as a $16.1 billion cut for domestic programs, once you adjust for inflation. Either way, the schedule for the appropriations cycle will depend on: 1) the President's resolve to veto bills that he deems excessive on spending, 2) Republicans commitment to sustain a veto, and 3) Democrats unwillingness to bring spending down to an acceptable level for the White House.

Once a CR is passed, Democrats will likely get one of the highly contested bills to the President, both to test his resolve, and to make a political statement regarding their funding priorities. Assuming the President follows through on his veto threats, and assuming Republicans have the votes to sustain those vetoes, Democratic leaders will likely group multiple spending measures into one large omnibus bill. Since the funding for so many government agencies and programs will be tied together, an omnibus bill brings more political pressure on the President to sign, and against the minority, making it harder to sustain a veto. The one drawback to an omnibus bill, from the perspective of the majority, is that even though it will get its spending levels, it will have employed a tactic that it spent year criticizing the Republicans for using too often. It is simply a case of which political hit is more worth taking.

Resources:
George Cahlink, "Hoyer Concedes That Appropriations Work Will Not Be Finished By Oct. 1," Congress Now, September 5, 2007
Jennifer Bendery, "Reid: Senate Will Pass Most Appropriations Bills By Oct. 1, But Temporary Spending Measure Likely," Congress Now, September 6, 2007
Author: SAS