Budget and Revenue Standing Committee

Federal Budget and Revenue Update

October 16, 2006

Volume 12, Number 12

An Information Service of the NCSL Budgets and Revenue Committee

Only Two Spending Bills Completed by October Recess

The House and Senate recessed September 29^th having completed work on only two—Homeland Security and Defense—of its FY 2007 appropriations bills. A Continuing Resolution (CR) was adopted to fund the other departments and programs through November 17^th at the lesser of either the FY 2006 funding levels or the House- or Senate-passed bill. Because the Labor/HHS/Education FY 2007 spending bill has not passed either the House or Senate, those programs will be funded under the CR at the FY 2006 level (see table 1). Congress will return to the nation’s capitol on November 13, 2006, to finish work on the nine remaining appropriations bills or start the process of assembling an omnibus spending bill.

As for the FY 2007 Homeland Security spending bill (P.L. 109-476), it fails to provide funds for state implementation of the Real ID and provides only $525 million for state formula-based grants (a reduction of $19 million below the FY 2006 level and $550 million below FY 2005 funding levels). The Urban Area Security Initiative (UASI) received an $85 million increase from FY 2006 funding levels. In addition, the Emergency Management Performance Grants (EMPG) received $200 million, $17 million over FY 2006 funding levels.

Table 1. Select Programs in FY 2007 Appropriations Bills
(Note: Labor/HHS/Education has not passed either the House or Senate. All other spending bills have passed both chambers and are ready for conference)

Department/Program

FY2006

House FY2007

Senate FY2007

Energy & Water (H.R. 5427)

State Energy Program Grants

$35.6 million

$25 million (a)

$49.4 million

Interior & Environment (H.R. 5386)

Clean Water Revolving Fund (SRF)

$886 million

$688 million

$688 million

Superfund

$1.242 billion

$1.256 billion

$1.261 billion

State and Tribal Wildlife Grants

$3.213 billion

$3.009 billion

$3.0 billion

Science/State/Justice/Commerce (H.R. 5672)

State Criminal Alien Assistance Program (SCAAP)

$399 million

$415 million

$100 million

Edward Byrne Discretionary Grants Program

$189 million

$0

$120 million

Labor/HHS/Education (H.R. 5647, S. 3708)

Health and Human Services

Community Services Block Grant

$694 million

$507 million

$694 million

Social Services Block Grant

$2.250 billion(b)

$1.70 billion

$1.70 billion

Education

No Child Left Behind (NCLB)

$12.7 billion (LEA)

$12.7 billion (LEA)

$12.7 billion (LEA)

Individuals with Disabilities Education Act (IDEA)

$10.5 billion

$11.753 billion

$11.610 billion

Educational Technology State Grants

$272 million

$0

$272 million

(a) The FY2007 allocation came through a floor amendment offered by Connecticut Representative Rosa DeLauro, as the program had been zero funded in the committee report.

(b) Supplemental appropriations were provided for Katrina relief under P.L. 109-148.

REAL ID Will Cost States $11 Billion

On September 21^st, National Conference of State Legislatures (NCSL), the National Governors Association (NGA) and the American Association of Motor Vehicle Administrators (AAMVA) released a comprehensive analysis of the federal Real ID Act, revealing a cost to states of more than $11 billion over five years. The report sets forth the consequences and costs of implementing the act and makes recommendations to facilitate a more realistic approach. A copy of the report is available at: http://www.ncsl.org/print/statefed/Real_ID_Impact_Report_FINAL_Sept19.pdf .

Federal Funding Accountability and Transparency Act

On September 13^th, the House passed the Federal Funding Accountability and Transparency Act (S. 2590), which requires the Office of Management and Budget (OMB) to create a publicly accessible website containing information on all federal grant and contract funding awards. The website will contain information on the amount of the award and the entity, public and private, receiving the funds. The Senate passed S. 2590 on September 7^th.

House Earmark Reform

On September 14^th, the House adopted H.Res. 1000, a House rules change requiring all earmarks contained within a bill reported by a committee or within a conference report (and the name of the member requesting the earmark) to be disclosed before the bill may be considered on the House floor. If an earmark is not disclosed, the legislation will be subject to a point of order challenge on the floor of the House. In addition, any tax measure containing an earmark (as determined by the Joint Committee on Taxation) would be subject to the same point of order challenge. However, the rule adopted by the House does not include bills that bypass the committee process or which are brought directly to the floor. The resolution does not apply to the Senate. It does not apply to 10 of the 11 House-passed appropriations bills unless new earmarks emerge in the conference committee reports.

NCSL's Fall Forum in San Antonio, Dec. 5-8: Come to NCSL's Fall Forum in San Antonio, Texas, on December 5-8, to find out about the new faces, new issues and new challenges that the election brings. Online registration is now available! http://www.ncsl.org/forum/