Fiscal Year 2008 in Full Swing
The fiscal year 2008 (FY08) appropriations cycle is well underway and this week was quite busy. The Budget Committees in the House and Senate are responsible for preparing a budget resolution (BR) that sets the federal spending caps. The process of setting the caps is called the 302(a) process, named after its authorizing section in the Congressional Budget Act of 1974. This week, the Senate Budget Committee began that 302(a) process by offering a plan that increases discretionary spending in FY08 by $18 billion over President Bush’s request. According to Chairman Kent Conrad (D-ND), the plan would balance the budget by 2012 while adding $6.1 billion more for the U.S. Department of Education in FY08.
Next week’s Senate floor debate on the resolution will be heated because Conrad’s plan makes many assumptions that are not probable and the Republicans will expose that. In order to achieve a balanced budget by FY 2012, the plan assumes: nearly $500 billion more in tax revenue over five years, that the percentage of discretionary spending will drop from now through 2012 and that all war funding ends by 2010. “It’s a budget from the Land of Oz,” said Judd Gregg (R-NH), the ranking Republican on the Budget Committee.
When the House and Senate eventually approve their BRs, the House and Senate Appropriation Committees move the process along by taking the 302(a) spending caps and performing 302(b) distributions to their respective House and Senate Appropriation Sub-committees.
In preparation for this upcoming 302(b) step, the House and Senate Apportions Subcommittees on Labor, HHS and Education held hearings on the proposed FY08 education spending this week. On Monday, Tuesday and Wednesday, the House Subcommittee on Labor, HHS and Education held hearings to review the President’s budget request for the U.S. Department of Education (ED). Secretary Spellings went before the Subcommittee on Monday. Deputy Secretary Ray Simon went before the Subcommittee on Tuesday, and Under Secretary of Education Sarah Martinez Tucker and the Director of the Institute of Education Science Grover Whitehurst went before the Subcommittee on Wednesday. In sum, the message to the Administration was clear: the proposed budgets are insufficient and House Appropriation Subcommittee Chairman David Obey (D-WI) promised to invest more money into education. His displeasure was clear.
The Administration’s request is … 10% below 2005 levels after adjusting for inflation and for population growth. The NCLB funding is down 7% below the 2005 levels after adjusting for inflation and population growth. The President’s ‘08 budget also shrinks the federal commitment to cover a portion of the costs of special education for almost $7 million students. The request is almost a billion less than the 2005 levels … and we can go on and on.
On Wednesday, the Senate Subcommittee on Labor, HHS and Education hosted a panel to review the President’s education budget request and it was just as uncomfortable for Administration officials. According to Subcommittee Chairman Tom Harkin (D-IA), the requests, dating back to 2002, have simply been insufficient to meet the program’s requirements. “The more I get into it really a matter of resources,” said Harkin, “They [schools] are simply not getting it and I do not see the request for funding in your budget.” As in the House Appropriations hearing, the Senate Committee appears ready to provide more funding for education.
The Senate hearing then became tense when Harkin expressed the Committee’s serious concerns with how the U.S. Department of Education was implementing the money they now receive, citing the Office of Inspector General’s scandalous Reading First Audit. Secretary Spellings detached herself from the findings by stating that she was not “micromanaging” ED programs at the time, but this clearly did not reduce the Committee’s displeasure about the way ED has managed their funds to date.
Resource:
United States Senate Committee on Appropriations, http://appropriations.senate.gov/index.cfm
United States House of Representatives Committee on Appropriations, http://appropriations.house.gov/Subcommittees/sub_lhhse.shtml
“Budget Testimony,” United States Department of Education, March 14, 2007, http://www.ed.gov/news/speeches/2007/03/03142007b.html
Author: DAD