|
April 6, 2007
Volume 13, Number 5
An Information Service of the NCSL Budgets and Revenue Committee
Previous Issue
Back Issues Archive
Supplemental Appropriations
On March 29, the Senate adopted H.R. 1591, the $121 billion dollar emergency supplemental, which included: $96 billion for the Iraq/Afghanistan War, $6.7 billion for Hurricane Katrina relief, $4.2 billion for agricultural disaster relief, $1.8 billion for the veterans health care, $745 million for the State Children’s Health Insurance Program (SCHIP), an increase to the federal minimum wage, $12 billion in tax breaks, and language to force the withdrawal of U.S. troops from Iraq. On March 23, the House passed its $124 billion emergency supplemental, which included variations of provisions included in the Senate version. Both the House and Senate supplemental far exceeded the President’s request of request $103 billion. The President has repeatedly said that he will veto the bill if it includes language to force the withdrawal U.S. troops or extraneous domestic spending. In addition, both bills contained language to preserve state authority to enforce stricter and stronger chemical facility security standards (DHS has reserved the right to preempt such laws under certain circumstances). Several attempts were made in the House and Senate to strip this language from H.R. 1591; while these attempts were unsuccessful, the issue may reappear during the House and Senate conference on H.R. 1591. The Senate has appointed conferees; the House is expected to announce its conferees soon.
U.S. House and U.S. Senate Budget Resolutions
On March 29, the House of Representatives, adopted its budget resolution (H. Con. Res. 99), which included additional budget (reserve) authority in 2008 through 2012, applied PAY-GO requirements to the following programs: SCHIP; Alternative Minimum Tax (AMT); additional tax relief (child tax credit, R&D credit, deduction for state and local sales tax); and Medicare reform. PAY-GO limits any new expenditures or revenue reductions (e.g. tax cuts) to offsets through additional revenue sources or reductions to other programs.
On March 23, the Senate adopted its budget resolution (S. Con. Res. 21). Heading to conference, the House and Senate differ on a number of issues, such as the AMT fix and tax breaks associated with the minimum wage.
Real ID Grant Program
On March 28, 2007, the House Committee on Homeland Security approved the Department of Homeland Security Authorization Act for Fiscal Year 2008 (H.R. 1684), which would create a new grant program to assist states with the implementation of the Real ID. The grant program would authorize $120 million in FY 2008, $100 million in FY 2009, and $80 million in FY 2010, to assist states with the implementation of the Real ID. In addition, H.R. 1684 would prohibit DHS from allowing states to use other grant programs to fund implementation of the Real ID.
Implementation of the Unfinished 9/11 Recommendations
On March 13, 2007, the Senate passed S. 4, the "Improving America's Security by Implementing Unfinished Recommendations of the 9/11 Commission Act of 2007." S. 4 reduces the State Homeland Security Grant Program (SHSGP) state minimum to 0.45 percent from its current level of 0.75 percent. The House version (H.R. 1) reduces the state minimum to 0.25 percent with certain exceptions. S. 4 also establishes a grant program for interoperable communications, commencing with a $400 million authorization in FY 2008 and incrementally rising to $1 billion over five years.
Real ID Legislation
On March 1, the Department of Homeland Security (DHS) issued the long awaited draft regulations on Real ID implementation. The comments are subject to a 90 day comment period, which will expire on May 8, 2007. While the draft regulations addressed a number of concerns expressed by NCSL, governors and motor vehicle administrators in the September 2006 report— The Real ID: National Impact Analysis, the regulations failed to adequately address the issues of reenrollment and other costs associated with the Real ID.
On February 28, 2007, Senator Akaka (HI-D), along with Senators Sununu (NH-R), Leahy (VT-D) and Tester (MT-D), introduced S. 717, which would "repeal the Real ID Act and reinstitute the shared rulemaking and more reasonable guidelines established in the Intelligence Reform Act."
On February 15, 2007, Representative Tom Allen (ME-D) introduced H.R. 1117, which would repeal the Real ID Act and reestablish the negotiated rulemaking process that was repealed under the Real ID. On February 13, 2007, Senator Collins (ME-R) introduced S. 563, which would delay the implementation of the Real ID and would require the Department of Homeland Security "to take into account the concerns and challenges associated with states’ compliance" with the implementation of the Real ID. For the most recent Real ID news visit: http://www.ncsl.org/realid/.
Fiscal Year 2007
On February 15, President Bush signed the FY 2007 continuing appropriations resolution (H.J. Res. 20) into law (P.L. 110-005). The year-long continuing resolution (CR) is
necessary as the 109th Congress managed to pass just two of its 11 annual appropriations bills —Homeland Security and Defense— before adjourning in December. H.J. Res. 20 funds the majority of federal programs at FY2006 levels. However, House and Senate appropriators reduced funds to over 60 programs and rescinded unobligated balances that resulted in $10 billion in savings to fund other “high priority needs.”
Following the President’s signature, the Office of Management and Budget Director Rob Portman announced that the 13 Cabinet departments funded by the measure are barred from obligating money for earmarks contained in committee reports "or other written or oral communications regarding earmarks." Earmarks contained in the statutory text are still effective.
President’s FY2008 Budget Terminations and Reductions
On February 9, the President released the Major Savings and Reforms in the President's 2008 Budget report, which outlines the 141 programs set for termination and other programs set for a reduction under the President’s FY2008 budget proposal. http://www.whitehouse.gov/omb/budget/fy2008/pdf/savings.pdf
Debt Ceiling
On January 31, the U.S. Department of the Treasury indicated that the debt ceiling would be reached at some point this fall. On January 24, the Congressional Budget Office (CBO) issued a similar warning, stating the debt ceiling would be reached during the second half of 2007. The debt ceiling is currently set at $8.965 trillion.
NCSL Spring Forum: April 19-21, 2007
NCSL’s Spring Forum at the Hyatt Regency on Capitol Hill, Washington, D.C.
For more information: http://www.ncsl.org/forum
For additional information contact NCSL staff: Molly Ramsdell (molly.ramsdell@ncls.org, 202-624-3584) or Garner Girthoffer (garner.girthoffer@ncsl.org, 202-624-7753).
|
