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June 26, 2007
June 20:
June 21:
June 22:
June 26:
June 27:
June 28:
July 2-6:
August 6:
October 1:
SENATE PASSES ENERGY PACKAGE On June 21 the Senate amended and passed H.R. 6, the CLEAN Energy Act of 2007. This comprehensive energy bill passed without the Finance Committee's renewable energy/energy efficiency tax package. The key provision of the bill is an increase in CAFE (corporate average fuel economy) standards to 35 miles per gallon by 2020, a roughly 40% increase from today's standards. In addition, the bill calls for increased usage of biofuels (15 billion gallons by 2015 and 36 billion by 2022) including corn and ethanol based fuels. The bill would also: increase energy efficiency standards for home appliances, require energy saving measures in the Federal government, and tighten penalties for price gouging in the oil and gasoline markets. Notably absent is the $32.1 billion taxpackage approved by the Senate Finance Committee last week. The package would have provided incentives for production and use of renewable energy that would have been offset by tax increases on oil and gas producers. By a vote of 57-36 the senate failed to stop a filibuster of the tax package (60 votes being required). Baucus comment on the Senate vote CBO preliminary cost estimates on the Senate package:
SENATE HELP COMMITTEE REPORTS STUDENT LOAN RECONCILIATION BILL S.Con.Res. 21, the FY 2008 Budget Resolution, includes Reconciliation instructions to the Senate HELP Committee and the House Education & Labor Committee to report budget reconciliation legislation to reduce the deficit by $750 million over fiscal years 2007-2012. The objective is to use Reconciliation's expedited and filibuster-proof procedures to pass legislation that reduces student loan costs (offset by reduced subsidies to lenders), with a net budget savings of $750 million over 5 years. On June 20 the Senate Health, Education, Labor, and Pensions Committee approved reauthorization of the Higher Education Act for another 5 years as well as budget reconciliation legislation. The reconciliation language would cut $18.3 billion in student loan lender subsidies and would use the savings to increase Pell Grant awards (currently at $4,310, this bill would increase them to $5,100 next year and $5,400 in 2011), provide loan relief, and reduce the deficit. HOUSE PASSES TWO APPROPRIATIONS BILLS State-Foreign Operations passed the House on June 21 with total budget authority of $34.2 billion ($700 million below the President's request and 9.5% over FY 2007). HIV/AIDS programs would receive $5.1 billion, an increase of $1.3 billion over FY 2007 and $585.7 million over the President's request. Child survival and health programs would receive $2 billion, an increase of $237 million over FY 2007 and $391 million more than the president's request. Sudan would receive $950 million -- $104 million more than the President's request. The Millennium Challenge Corporation (a fund that awards bilateral aid on a competitive basis to countries that have instituted economic and political reforms) would receive $1.8 billion, $50 million over FY 2007 but $1.2 billion under the President's request. The reason for the disparity lies in the fact that the MCC has $2 billion in funds that have yet to be committed to development projects. The President's request for $456 million in additional assistance for Iraq would not be funded under the House bill. Democrats cited the $2.9 billion appropriated last month in the FY 2007 supplemental for the same purpose. The Administration has threatened to veto the bill if it weakens Federal policies limiting aid to groups that provide abortions. However, the House added by a vote of 223-201 an amendment from Foreign Ops Subcommittee Chair Nita Lowey (D-NY) that would modify current policy to allow funding for contraceptives to be given to organizations that provide abortions. The amendment could spark a showdown with the White House.
Legislative Branch passed the House on June 22 with spending of $3.102 billion (4% over FY 2007). Noteworthy items include: a $30.4 million increase for the Capitol Police ($286 million total), $30 million for security costs associated with the 2008 Presidential election, and a program to reduce carbon dioxide emissions from the Capitol complex. The bill does not include funding for the Senate as the two chambers do not consider each other's spending levels until conference. With the inclusion of Senate funds the bill would total $4 billion. SENATE APPROPRIATIONS REPORTS 3 BILLS Labor, HHS, Education - June 21 Next to the defense appropriations bill (which will be caught up in Iraq politics), Labor-HHS may be the most contentious appropriations bill this year. The reason: the bill would appropriate $8.3 billion more than the President's request. $149.2 billion - $8.3 billion over President's request - 3.3% increase over FY 2007. Labor: Job training programs would receive a total of $5.2 billion which includes $1.6 billion for Job Corps (a vocational and educational program geared towards young workers), an increase of $82 million over FY 2007 and $138 million more then the President's request. Funding for training and employment services grants to states would remain level with FY 2007 at $3 billion, which is still $500 million over the President's request. Health: The National Institutes of Health would receive $29 billion, an increase of $1 billion over FY 2007 and $1.2 billion more than the President's request. The Centers for Disease Control and Prevention would receive $6 billion, an increase of $224 million over FY 2007. Education: Head Start would receive more than $7 billion, an increase of $200 million over FY 2007 and $300 million more than the President's request. $13.9 billion would be directed to Title I grants to elementary and secondary schools, an increase of $1 billion over FY 2007 and equal to the President's request. Funding for Pell Grants would increase, in order to award more grants, from $13.7 billion in FY 2007 to $14.5 billion in FY 2008 (compared to the President's request of $13.4 billion). The bill would provide $12.3 billion for education of individuals with disabilities, an increase of $450 million over FY 2007 and $748.1 million over the President's request. (A longstanding concern of the disability community is the failure of the Federal Government to fully fund the authorized level of Federal assistance for children with disabilities.) The Reading First program would receive a cut of$230 million bringing total spending to $800 million versus $1.03 billion in FY 2007. The Committee cited concerns of mismanagement of the program within the Department of Education. The bill contains a provision supported by Chairman Tom Harkin, (D-IA) and Ranking Republican Arlen Specter (R-PA) that would increase the number of stem cell lines eligible to receive federal funds. In addition to the overall amount of funding in the bill, this provision will be another item drawing a veto threat. . Interior-Environment - June 21 $27.2 billion - $1.5 billion over President's request - 2.8% increase over FY 2007. The EPA would receive $7.77 billion, an increase of $574 million over the President's request and $48 million above FY 2007 spending levels. A key provision of the bill would allocate $2 million in EPA funds to begin the rulemaking process to regulate greenhouse gas emissions using the Clean Air Act as authority (a door opened by a recent Supreme Court decision). A key amendment from Pete Domenici (R-NM) was agreed to that struck controversial language requiring oil and gas companies to renegotiate leases with the Interior Department from the late 1990s that included overly broad royalty relief provisions. Legislative Branch - June 21 $2.8 billion - 5.2% increase over FY 2007. The bill includes $842 million for the Senate, an increase of $38.5 million over FY 2007. Also included is $284 million for the Capitol Police, an increase of $18 million over FY 2007, reflecting increased concerns over Capitol security. The Library of Congress would receive $577 million (13% over FY 2007). In addition, the long-awaited Capitol Visitor Center is set to receive $28.7 million in this bill for construction completion and operational expenses. Because the two chambers do not consider each other's funding until conference, this amount is less than their 302(b) allocation of $4 billion. NEW BUDGET DOCUMENTS JCT: Present Law and Background Relating to the Individual Alternative Minimum Tax CBO: Value of Properties in the National Flood Insurance Program CBO Testimony From Director Orszag: Health Care and the Budget: Issues and Challenges for Reform GAO: Border Patrol: Costs and Challenges Related to Training New Agents |
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| Charles S. Konigsberg, President | (202) 587-2984 (ph) | (202) 587-2983 (fax) | ckonigsberg@federalbudgetgroup.com | |
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