 |
||||||||||||||||||
July 10, 2007 Senate takes up Defense Authorization Bill Appropriations Committees Continue Mark-Ups Senate Finance Moves Toward $1/pack Tobacco Tax to Fund SCHIP
Link to WBR's Appropriations Status Chart Tues, July 10:
Wed, July 11:
Thurs, July 12:
August 6:
October 1:
IN THE BUDGET SPOTLIGHT: FY 2008 DEFENSE AUTHORIZATION On May 24, 2007 the Senate Armed Services Committee (SASC) approved S. 1547, the FY 2008 defense authorization bill. The bill's total authorization of $648.8 billion matches the President's request, though funds would be shifted from the Iraq war to the "base" defense budget . President Bush's FY 2008 Budget requested $507 billion for the Departments of Defense and Energy (nuclear programs) and $141.8 billion for the wars in Iraq and Afghanistan. Compared to the President's request, S. 1547 would shift $12 billion from war-funding to the base defense budget ($519 billion for DoD/DOE and $129.8 billion for Iraq/Afghanistan). Highlights of S. 1547: The SASC bill would authorize $24.6 billion for the Defense Health Program (TRICARE) and rejects the President's proposed $1.9 billion fee increase. SASC proposes a 3.5% pay raise for all uniformed personnel, 0.5% more than President Bush had requested. Consistent with Administration requests to increase active-duty Army and Marine personnel over the next several years, the bill would set new end strengths for the Army and Marines, with the Army gaining 13,000 soldiers for a total of 525,400 and the Marines gaining 9,000 for a total of 189,000. In the defense procurement budget the bill would authorize:
RE-CAP OF APPROPRIATIONS ACTION JUST BEFORE THE JULY 4th RECESS VETO WATCH: See WBR's appropriations chart displaying bills that exceed the President's request. The President's Office of Management and Budget has made a blanket veto threat against any nondefense discretionary spending bill that exceeds the President's FY 2008 Request. Currently, that includes: Commerce-Justice-Science; Energy-Water; Homeland Security; Interior-Environment; Labor-HHS-Ed; Mil-Con, and Transportation-HUD. The largest disparity is the Labor-HHS-Ed bill where the House bill is more than $10 billion over the President's request and the Senate more than $8 billion. Context: Gross Federal Debt has increased from $5.6 trillion at the end of FY 2000 to a projected $9 trillion at the end of FY 2007. However, nondefense discretionary spending is the budget factor least responsible for the increase in the Federal Debt:
Interior-Environment passed the house on June 27. Totaling $27.598 billion or $1.946 billion more than President's request, the bill would provide a 4.5% increase over FY 2007. The White House has threatened a veto. The Environmental Protection Agency would receive $8.086 billion-- $361 million more than FY 2007 and $887 million more than the President's request. Included in the bill is $266 million in funding for climate change research ($94 million increase over FY 2007). The Department of the Interior would receive $10.163 billion, or $257 million over FY 2007.
Financial Services-General Government passed the house on June 28. Totaling $21.4 billion or $243 million below President's request, the bill would provide a 9.8% increase over FY 2007. The Financial Services-General Government bill includes IRS, Treasury Department, District of Columbia, Judiciary, Executive Office of the President, as well as independent government agencies. An important focus of this bill is improving taxpayer services which would receive $3.6 billion, an increase of $74.6 million over FY 2007 and $51.9 million over the President's request . Key programs include pre-filing services available at walk-in sites around the nation ($450.4 million) and the National Taxpayer Advocate ($179.6 million) which helps solve taxpayer problems. Another important focus for Democrats is closing the tax gap as a deficit reduction measure (the estimated $290 billion in taxes owed but not collected). The bill would appropriate $7.2 billion for enforcement activities ($406 million above FY 2007 and matching the President's request), $282 million for business systems modernization ($69.4 million above FY 2007 and matching the President's request), and $116.7 million for compliance research ($12.5 million above FY 2007 and matching the President's request). The White House has threatened to veto the bill because of provisions weakening trade restrictions with Cuba and the possible allowance of the extension of benefits to domestic partners in the District of Columbia.
Senate Appropriations Reports State-Foreign Operations $34.243 billion - $700 million below President's request - 9.5% increase over FY 2007 The Department of State would receive $10.7 billion for its operations in 2008, a $1 billion increase over FY 2007 and $40 million below the President's request . Funding for international peacekeeping received a significant boost, with the committee approved bill including $1.35 billion ($245 million over the President's request and $216 million over FY 2007). Bilateral economic assistance would total $17.3 billion ( $516 million below the President's request ) with HIV/AIDS programs receiving the biggest increases. Total HIV/AIDS spending would be $5.09 billion ($940 million above the President's request and $2.221 billion over FY 2007). 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 $1.2 billion ( $1.8 billion below the President's request and $352.3 million below FY 2007). The appropriators' reason: MCC has not yet obligated $2.1 billion of funds available from previous years. Senate Appropriations Reports Commerce-Justice-Science $54.646 billion - $3.4 billion over President's request - 8.5% increase over FY 2007 The Department of Commerce would receive $7.35 billion (an increase of $725 million over FY 2007 and $754 million over the President's request ), with a significant portion of the increase going to NOAA, the National Oceanographic and Atmospheric Administration ($4.215 in total, $137 million over FY 2007, and $405 million above the President's request). The Department of Justice would receive a total of $24.31 billion for an increase of $1.46 billion over FY 2007 and $2.06 billion over the President's request . Funding for state and local law enforcement would receive $2.66 billion, an increase of $177 million over FY 2007 but $1.55 billion above the President's request. NASA would receive $17.46 billion ($1.2 billion above FY 2007 and $150 million above the President's request), including $4 billion for Space Shuttle operations and $2.2 billion for Space Station operations. Lastly, the National Science Foundation would receive $6.553 billion, an increase of $636 million over FY 2007 and $124 million above the President's Request. The bill includes a controversial amendment from Senator Richard Shelby (R-AL) that would limit the used of ATF gun trace data to "legitimate law enforcement purposes related to a specific case or investigation." Parties to civil lawsuits against weapons dealers have been interested in receiving access to the information, while others have expressed concern that making the information available for non law enforcement purposes would jeopardize law enforcement officers and potentially hamper ongoing and future investigations. Senator Appropriations Reports Energy, Water, Science $32.273 billion - $1.8 billion over President's request - 6.5% increase over FY 2007 The Army Corps of Engineers would receive $5.4 billion (an increase of $109 million over FY 2007 and $577 more than the President's request). Department of Energy Science programs would receive $4.497 billion ($99 million above the President's request) for research basic energy research as well cutting edge research into nuclear physics, and biological and environmental sciences. In addition, $3.715 billion would be directed to energy activities within the Department of Energy ($536 million over the President's request) relating to supply, conservation, and alternative energy. In addition, these programs include research into advanced hydrogen based technologies as well was research into increasing the efficiency and cleanliness of existing fossil fuels. The bill includes a controversial amendment from Senator Larry Craig (R-ID) that would "fund a seismic inventory of oil and natural gas resources in the eastern Gulf of Mexico," a step many see as the first in the process of allowing drilling in that area. Supporters view the project as enabling the U.S. to understand and take stock of its energy resources. SENATE FINANCE COMMITTEE MEMBERS TENTATIVELY AGREE TO TOBACCO TAX TO PAY FOR SCHIP REAUTHORIZATION, EXPANSION This year's FY 2008 Budget Resolution called for reauthorizing and expanding the State Children's Health Insurance Program, but did not provide any funding for expansion, or even continuing coverage for current enrollees by keeping pace with health care inflation. (SCHIP is a Federal grant program that provides health coverage to about 6 million children in families whose incomes are low, but somewhat higher than Medicaid's tight income eligibility limits. Funds are provided to States based on population.) Today, Congressional Quarterly and Congress Daily both reported that members of the Senate Finance Committee have informally agreed to move ahead with a $35 billion package to reauthorize and expand SCHIP that would be funded primarily by an increase in the tobacco tax from the current 39 center/pack to $1.00/pack. In addition, more funds would be freed up for expansion of the program by preventing SCHIP funds from being used by States to cover adults (about 600,000 adults are currently covered). The Finance Committee will likely mark-up an SCHIP package next week. The White House opposes expansion of SCHIP and is likely to issue a veto threat through OMB after the Finance Committee acts. Whether sponsors of the package could overcome a veto remains unclear. Baucus Statement
CBO: Financing Projected Spending in the Long Run CBO: July 2007 Monthly Budget Review CBO: Medicare Advantage: Private Health Plans in Medicare GAO: Capitol Visitor Center: Update on Status of Project's Schedule and Cost as of June 27, 2007 CBO: Testimony on Foreign Holdings of U.S. Government Securities and the U.S. Current Account |
||||||||||||||||||
| Charles S. Konigsberg, President | (202) 587-2984 (ph) | (202) 587-2983 (fax) | ckonigsberg@federalbudgetgroup.com | ||||||||||||||||||
 |
||||||||||||||||||