Budget and Revenue Standing Committee

Federal Budget and Revenue Update

January 5, 2007
Volume 13, Number 1

An Information Service of the NCSL Budgets and Revenue Committee

110th Congress: The First 100 Hours

As the Democrats take the helm in the 110^th Congress, leadership has outlined its priorities for the first 100 hours of the legislative term. They include:

Implementing the 9/11 Commission’s recommendations, including reform to FEMA, improving interoperable communications, reforming the DHS grant award process, and improving information sharing between federal, state and local government;
Instituting greater disclosure of earmarks;
Increasing the minimum wage;
Reinstating PAYGO rules;
Improving the availability of prescription drugs;
Increasing funds for stem cell research;
Investing in and developing renewable energy;
Easing the financial burden of college tuition;
Enacting comprehensive immigration reform; and
Strengthening America’s military.

Fiscal Year 2007

The 109^th Congress managed to pass just two of its 11 annual appropriations bills —Homeland Security and Defense— before adjourning in December. As a consequence, the 109th Congress adopted H.J.Res 102, a third continuing resolution (CR) that keeps the remaining federal government programs operational through February 15, 2007. In addition, incoming House and Senate Appropriations Committee chairs, Wisconsin Representative David Obey and West Virginia Senator Robert Byrd, respectively, stated that they will push for a year-long CR as Congress reconvenes in 2007. Passage of H.J. Res 102 keeps the remaining programs funded at either the House-passed level or the FY 2006 level, whichever is lower. Because neither chamber passed a FY 2007 funding bill for labor, health, human services and education programs, those programs automatically remain at the FY 2006 level.

Real ID Regulations Coming?

On January 3, the Office of Management and Budget (OMB) received the Department of Homeland Security’s draft regulations to implement the Real ID Act of 2005 (P.L. 109-13)—legislation that establishes minimum federal standards for state-issued driver’s licenses and identification cards. Under current law, OMB has 90 days to review the proposed regulations, which will then be released for a public comment period. As the May 11, 2008 implementation deadline approaches, states face the uncertainty of overly prescriptive regulations and an unfunded mandate of more than $11 billion over its first five years; this includes $1 billion in start-up costs. NCSL urges legislators to contact their congressional delegation and urge them to include $1 billion in the FY 2008 budget resolution for state implementation of the Real ID. For more information on the cost to implement the Real ID: http://www.ncsl.org/print/statefed/Real_ID_Impact_Report_FINAL_Sept19.pdf .

President’s FY2008 Budget

The President’s FY2008 Budget is expected to be released February 5, 2007. In his budget, the President has promised to balanced the budget by 2012 and permanently extend his tax cuts of 2001 and 2003. The President is further expected to seek a $130 billion -$160 billion “emergency” (off-budget) supplemental for overseas military operations.

For more information contact NCSL staff Molly Ramsdell (molly.ramsdell@ncsl.org; 202-624-3584) or Garner Girthoffer (garner.girthoffer@ncsl.org; 202-624-7753).