BACKGROUNDER: FY '07 FUNDING RESOLUTION

The joint resolution (which requires presidential signature, the same as a "bill") appropriates $463.5 billion to fund programs covered by the nine unfinished FY ’07 appropriations bills.

Context: Although Congress failed to adopt an FY’07 Budget Resolution last year, both the House and Senate, in separate measures, last year set $872.8 billion as the FY '07 spending cap for new discretionary (i.e. non-entitlement) "budget authority" (the appropriations term for authority given to agencies to spend federal funds).

After subtracting total appropriations for the Departments of Defense and Homeland Security from the total FY'08 spending cap of $872.8 billion, the remaining amount available for appropriation was $463.5 billion. This amount, in general, only allowed for most programs to be funded at the FY'06 "enacted" levels with adjustments to cover personnel costs.

However, funding all programs at FY '06 levels left some room under the spending limits to add money to specific programs, boosting them above the FY '06 enacted levels. Also, over 60 programs were cut below FY '06 levels, freeing up additional funds for programs deemed to be high priorities. Among the programs hit with cuts are the Community Development Fund, Army Corps of Engineers Construction Expenses, the Internal Revenue Service, and the Economic Support Fund.

Following is a brief summary of the largest increases in funding over FY'06 levels.

Context: It is usually the case, in the congressional budget process, that increases or decreases are measured against a baseline that includes inflation adjustments. For example if a program costs $100 million in the current year, and inflation is running at 3 percent, the "baseline" for the upcoming fiscal year is $103 million to continue the program's "current services." If the appropriations bill funds the program at $102 million, that funding level would traditionally be called a $1 million "cut" in the program because inflation would not allow the program to maintain the current level of services.

This year is different. The new chairmen of the Appropriations Committees (Sen. Byrd and Rep. Obey) chose to make FY '06 funding levels the "baseline" or starting point. Consequently, the following list of increases are calculated against actual FY'06 funding, rather than the typical starting point of '06 funding plus inflation. That is why you may hear conflicting statements about whether a program’s funding has been "increased" or "cut."

• Veterans Healthcare: $3.6 billion boost, 13% over '06, to cover an increase in caseload (325,000 new patients) and to meet rising healthcare costs.

• Highway and Transit Funding: $4 billion to fully fund highway construction and transit programs at the FY '07 levels authorized by the 2005 "SAFETEA-LU" highway bill ($39 billion for highways and $9 billion for transit programs).

• Defense Programs not included in the DOD Appropriations Bill: $2.7 billion increase including a 6% increase in Defense Health programs, a 4% increase in the housing allowance, and $1 billion for base closures.

• Low-Income Housing: $1.7 billion increase for a 19% increase in project-based housing vouchers, a 3% increase in tenant-based housing vouchers, and a 9% increase for critical needs at public housing authorities.

• Global Health: $1.4 billion increase including $1.3 billion to expand global HIV/AIDS efforts and $149 million to expand malaria initiatives.

• Education: $1.2 billion increase including a boost in the maximum Pell Grant by $260 to $4,310 per grant; a 2% increase in special education (IDEA) funding, a 1% increase in elementary and secondary education grants, $125 million for a new program to assist schools failing to meet No Child Left Behind requirements, and a 1.5% increase in Head Start.

• Health Programs: $1 billion increase including a 2% increase in the NIH (boosting the agency to $28.9 billion), a 12% increase in community health centers, a 0.5% increase for the Indian Health Service, and a 6% increase in Ryan White CARE grants (HIV/AIDS).

• Scientific Research: $885 million increase including $500 million for alternative energy technologies and an 8% increase for the National Science Foundation.

• Law Enforcement: $739 million increase including a 4% increase for the FBI, a $343 million increase for prison construction, a $109 million increase for assistance grants, and $70 million to boost funding for community police.

• Environment and Natural Resources: $367 million including a 25% increase in the clean water state revolving fund, a 4% increase in fire management funds, and $100 million for national parks and other public lands operations.

• Coal Mine Safety: a 5% increase.
  
  Appropriations Committee Summary of the Bill