Budget Alert: March 9, 2007

HOUSE DEMS PROPOSE SUPPLEMENTAL FUNDING BILL;
PRESIDENT THREATENS VETO DUE TO IRAQ WITHDRAWAL PROVISIONS

Yesterday, House Democratic leaders released the outlines of a $123 billion FY'07 supplemental funding bill in response to the President's February 5th request for $103 billion. The Democratic plan would add the following to the President's request:
  • $4.3 billion for an agricultural disaster program;
  • $4 billion to the President's $91.5 billion request for the Dept. of Defense. Within the $95.5 billion, House Democrats would add money for Afghanistan, direct increased funding to defense health, cover a housing shortfall, and increase funding for mine resistant vehicles;
  • $3.6 billion allocated to defense health and veterans health for treatment and traumatic brain injury, PTSD, and hospital improvement;
  • $3.1 billion to fully fund Base Realignment and Closure;
  • $2.9 billion for Gulf Coast recovery efforts;
  • $2.5 billion for homeland security (aviation, ports, containers and border security);
  • $1 billion for pandemic flu preparedness;
  • $735 million to eliminate '07 shortfalls in the State Children's Health Insurance Program; and
  • $500 million for Wildfire Suppression.
The most controversial part of the Democratic plan would place the following conditions on war funding in Iraq:
  • The President would have to complete redeployment of the U.S. military from Iraq by August 2008, or earlier if he cannot certify progress towards political and military benchmarks in the interim.
  • In addition, the plan would require that the President deploy only those units that are fully prepared for their missions, limit the length of troop deployments, and require that minimum periods between tours be enforced or issue a waiver and explanation.

The President's staff indicated Thursday afternoon he will veto the supplemental if it attaches conditions to war funding. However, the conditions might never reach the President's desk if Senate Republicans filibuster the measure.

The Administration has said it will transmit a revised supplemental request to Congress that will add funds for support personnel as part of the surge in Iraq. The additional funding would be partially offset by eliminating funding for several aircraft (although the House Democratic proposal has already redirected the aircraft funds for other military purposes).

FY 2007 Supplemental: President's Request vs. House Democrats' plan ($ in billions)

Account/Activity

President's

House

 

Explanation:

 

Request

Democrats

 

Democratic proposal compared to President's

DEFENSE

Military Personnel

12.145

13.567

 

Increase covers housing allowance shortfall

Operations and Maint.

50.316

52.500

 

Increases for strategic reserve readiness, Afghanistan ,

 

family advocacy; Decreases for Navy and Air Force O&M

Procurement

24.900

24.814

 

Increases for mine resistant vehicles, 3 F/A-18E/F aircraft;

 

reduces 2 Joint Strike Fighters, and 5 navy attack planes.

RDT&E*

1.448

1.035

 

This reduction in funds is re-directed to military health care.

Revolving Funds

1.321

1.321

Defense Health

1.073

2.790

 

Increases for PTSD, Brain Injury, Amputee care, other.

Drug Interdiction

0.259

0.259

Intelligence

0.067

0.057

 

Nat'l Counterterrorism Center

General Provisions

-0.815

 

Budget savings from better management of private contractors.

Subtotal: defense

91.529

95.529

MILITARY CONSTRUCTION

1.853

1.853

STATE DEPT/ INT'L ASSIST.

6.000

6.000

 

Also includes Security Assistance: Iraq , Afghanistan , Lebanon

OTHER AGENCIES

0.200

0.200

 

Prisons, Treasury, Corps of Engineers,

HURRICANE KATRINA

3.400

6.300

 

Increase of $2.9 billion above President's request.

Subtotal: President's Request

102.982

 

This was the amount requested on February 5th.

VETERANS HOSPITALS

 

1.783

 

The Dem plan would add $3.5 b, part under defense health

 

 

(above), the rest under veterans health

BRAC

3.100

 

Fully funds Base Realignment and Closure

HOMELAND SECURITY

2.500

 

Aviation, Port, Container and Border Security

PANDEMIC FLU VACCINES

1.000

 

Avian flu preparedness.

SCHIP

0.735

 

Address shortfalls in 14 States

Offset

-0.735

 

An unidentified "offset" to pay for SCHIP as required by PAYGO

LIHEAP

0.400

 

Low Income Home Energy Assistance

WILDFIRE SUPPRESSION

0.400

 

Forest Service / Interior Dept.

FARM DISASTER FUNDS

4.300

 

For farmers who have purchased crop insurance.

TOTAL: FY'07 SUPP

102.982

123.365

*Research, development, testing and evaluation

FY'07 SUPPLEMENTAL: STEP-BY-STEP ™

  • Week of March 12: House Appropriations Committee mark-up of FY 2007 Supplemental

  • Week of March 19: House Floor action on FY 2007 Supplemental.

  • March 20: Senate Appropriations Committee mark-up of FY 2007 Supplemental.

  • Week of March 26: Possible Senate Floor action on FY 2007 Supplemental.

FY'08 BUDGET PROCESS: STEP-BY-STEP ™

  • March 14, 15: Senate Budget Committee mark-up of FY 2008 Budget Resolution.

  • March 16: CBO releases full analysis of the President's FY '08 Budget proposals.

  • Week of March 19: House Budget Committee mark-up of FY 2008 Budget Resolution.

  • Week of March 19: Senate Floor action on FY 2008 Budget Resolution.

  • Week of March 26: House Floor debate on FY 2008 Budget Resolution.
     Charles S. Konigsberg, President | (202) 587-2984 (ph) | (202) 587-2983 (fax) | ckonigsberg@federalbudgetgroup.com
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