Budget and Revenue -- Budget Update

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Budget and Revenue Standing Committee

Federal Budget and Revenue Update
July 3, 2006

Volume 12, Number 8

An Information Service of the NCSL Budgets and Revenue Committee

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FY 2007 Appropriations Bills

The House has passed all of its appropriations bills except for the Labor/HHS/Education bill.

The Senate Appropriations Committee has passed six of its twelve annual appropriations bills: Agriculture, Legislative Branch, Energy & Water, Interior, Homeland Security and State/Foreign Operations.

House Approvals

Senate Approvals

Approved
by
Subcmte

Approved
by
Committee

House
Vote

Approved
by
Subcmte

Approved
by
Committee

Senate
Vote

Agriculture (H.R. 5384)

5/03/06

5/09/06

5/18/06

6/20/06

6/22/06

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

6/14/06

6/20/06

6/29/06

Defense (H.R. 5631)

6/7/06

6/13/06

6/20/06

District of Columbia

Energy & Water (H.R. 5427)

5/11/06

5/17/06

5/24/06

6/27/06

6/29/06

Foreign Operations (House) (H.R. 5522)
State/Foreign Operations (Senate)

5/19/06

6/5/06

6/9/06

6/27/06

6/29/06

Homeland Security (H.R. 5441)

5/11/06

5/17/06

6/6/06

6/27/06

6/29/06

Interior & Environment (House) (H.R. 5386)

Interior & Environment (Senate)

5/4/06

5/10/06

5/18/06

6/27/06

6/29/06

Labor/HHS/Education (H.R. 5647)

6/7/06

6/13/06

Legislative Branch (H.R. 5521)

6/1/06

6/1/06

6/7/06

6/22/06

6/22/06

Mil. Qual. of Life/Veterans Affairs (H.R. 5385) (House) Mil. Const./Veterans Affairs (Senate)

5/4/06

5/10/06

5/19/06

Trans./Treasury/HUD/Judiciary/D.C. (House)

H.R. 5576

Trans./Treasury/Judiciary/HUD (Senate)

5/26/06

6/6/06

6/14/06

HOUSE FY 2007 APPROPRIATIONS

House: Transportation/Treasury/HUD/Judiciary/D.C.: On June 14, the House approved the Transportation, Treasury, Housing and Urban Development, the Judiciary, the District of Columbia, and Independent Agencies Appropriations Act for FY2007 (H.R. 5576). Here are some of the amendments that were adopted during the floor debate:

An additional $214 million (by offset) for Amtrak, for a total allocation of $1.1 billion. The amendment was offered by Representative LaTourette during the floor debate.

An additional $250,000 for the Election Assistance Commission. The amendment was offered by Representative Millender-McDonald.
An additional $15 million (by offset) for the Brownfield Redevelopment Program, for a total allocation of $4.2 billion to the Community Development Fund. The amendment was offered by Representative Miller of California.

H.R. 5576: http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=109_cong_bills&docid=f:h5576rfs.txt.pdf

House: Science, State, Justice, Commerce

On June 29, the House approved the Science, State, Justice, Commerce, and Related Agencies Appropriations Act of 2007 (H.R. 5672). Here are some of the highlights:

Provides $430 million for the State Criminal Alien Assistance Program (SCAAP), which includes $25 million added during floor debate as an amendment by Representative Barrow of Georgia. The President had sought to eliminate funding of this program.
Provides $635 million for the Edward Byrne Justice Assistance Grants program, of which $77 million was added during floor debate as amendments ($25 million by Rep. Reichert of Washington; $50 million by Rep. Kennedy of Minnesota; and $2 million by Rep. Garrett of New Jersey).
Provides $400 million for violence against women programs (VAWA), which includes $10 million added during floor debate as an amendment by Representative Brown-Waite of Florida. The President had sought to eliminate funding for the VAWA training programs.
Provides $100 million for law enforcement technologies and interoperability.
Rescinds $127 million for Community Oriented Policing Services (COPS) from prior year appropriations.
An amendment offered in Committee to increase the minimum wage failed (the amendment was identical to the amendment approved on the Labor/HHS/Education bill). A point of order was raised and sustained against the amendment when it was raised during floor debate.

An amendment adopted during the floor debate requires cities and counties receiving federal law enforcement funding to inquire as to the immigration status of individuals arrested, detained or stopped by state or local law enforcement. The amendment, offered by Representative Culberson of Texas, preempts several “sanctuary” policies adopted by two states and a number of localities.

H.R. 5672: http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=109_cong_bills&docid=f:h5672rh.txt.pdf

SENATE FY 2007 APPROPRIATIONS

Senate: Agriculture

On June 22, the Senate Committee on Appropriations reported the Department of Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations bill for FY2007. Here are some of the highlights:

Provides $37.865 billion for the Food Stamp Program, $2.8 billion below FY 2006 levels.
Provides $13.6 billion for the Child Nutrition Programs, $900 million below FY2006 levels and $300 million above the House request.
Provides $5.264 billion for the Special Supplemental Nutrition Program for Women, Infants and Children (WIC), $7 million below FY2006 levels and $20 million above the House request.
Increases funds for the Food and Drug Administration (FDA) by $117.895 million over FY2006 levels (for a total of $1.942 billion). This included an increase of $50.49 million for pandemic preparedness.

Senate: Homeland Security

On June 29, the Senate Appropriations Committee passed, the Department of Homeland Security Appropriations Act for FY2007. Here are the highlights:

Fails to provide any funds for state implementation of the REAL ID.
Provides $500 million for state formula-based grants ($45 million below the House approved level).
Provides $1.165 billion for high-density urban areas, similar to FY2006 levels, including:
- $745 million for urban area grants ($5 million below the House approved level);
- $150 million for rail security (equal to the House approved level);
- $210 million for port security ($10 million above the House approved level); and
- $205 million for Emergency Management Performance Grants (EMPG) (slightly below FY 2006 levels and $25 million above the House approved level).

Senate: Interior & Environment

On June 29, the Senate Appropriations Committee passed the Department of the Interior, Environment, and Related Agencies Appropriations Act for FY2007 (H.R. 5386). Here are the highlights:

Reduces funds for Clean Water State Revolving Fund (SRF) by $200 million below FY 2006 levels (equal to the President’s budget request and the House approved level).
Increases funds for Superfund by $19.2 million over FY2006 levels ($4.5 million above the House approved level).
Reduces funds for the State and Tribal Wildlife Grants by $133 million below FY 2006 levels.
Provides $235 million in funds for Payment in Lieu of Taxes (PILT), an increase of $2.5 million over FY 2006 levels ($7 million above the House approved level).

TAX ITEMS

Repeal of State Estate Tax Deduction

On June 22, the House approved H.R. 5638, the Permanent Estate Tax Relief Act of 2006, which adjusts the federal threshold exemption for the federal estate and gift tax. In addition, H.R. 5638 disallows a deduction of state estate tax payments on an individual federal income tax return (a credit for such payments are also not permitted).

H.R. 5638: http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=109_cong_bills&docid=f:h5638pcs.txt.pdf

Business Activity Tax

On June 28, H.R. 1956, Business Activity Tax Simplification Act of 2005, was approved by the House Judiciary Committee. H.R. 1956 establishes a 21-day physical presence standard for the imposition of a state business activity tax (BAT), preempting states that impose an economic presence standard for BAT or lesser physical presence standard. The National Governors Association estimates that H.R. 1956 would cost state an estimated $6.6 billion annually.

H.R. 1956 (as introduced):http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=109_cong_bills&docid=f:h1956ih.txt.pdf

Repeal of the Telephone Excise Tax

On June 28, the Senate Finance Committee passed S. 1321, the Telephone Excise Tax Repeal Act of 2005, which would repeal the federal excise tax on communication services. In May, the Treasury Secretary of the Treasury John Snow announced that the Treasury would no longer pursue collection of the excise tax on long-distance telephone service.

S. 1321: http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=109_cong_bills&docid=f:s1321is.txt.pdf

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Budget and Revenue Standing Committee

Federal Budget and Revenue UpdateJuly 3, 2006

Federal Budget and Revenue Update
July 3, 2006