Budget and Revenue Standing Committee

Federal Budget and Revenue Update

May 7, 2007
Volume 13, Number 6

An Information Service of the NCSL Budgets and Revenue Committee

Real ID Comment Deadline
As the May 11, 2008 deadline approaches, states have until May 8, 2007 to submit their comments to the Department of Homeland Security (DHS) on the draft regulations to implement the Real ID. Your comments can be submitted via the web (http://www.regulations.gov/), by fax (866–466–5370) or by mail (Department of Homeland Security, Attn: NAC 1–12037, Washington, DC 20528). Comments should reference the DHS docket number: DHS–2006–0030. DHS expects final regulations to be published sometime this Fall.

Department of Homeland Security Authorization
On May 9, the House is expected to take up the Department of Homeland Security Authorization Act for Fiscal Year 2008 (H.R. 1684), which includes an authorization for a $300 million grant program to assist states with the implementation of the Real ID. To date, Congress has only appropriated $40 million to implement the Real ID.

Supplemental Appropriations
On May 2, 2007, the President vetoed the emergency supplemental spending bill (H.R. 1591) because the bill included language that would have forced the withdrawal U.S. troops and because of extraneous domestic spending. The $124.2 billion dollar bill (H.R. 1591) included:

$100 billion for ongoing military operations in Iraq and Afghanistan;
$5 billion for veterans health care;
$6.9 billion for the victims of Hurricane Katrina;
$650 million for the State Children’s Health Insurance Program (SCHIP);
$2.25 billion for a number of homeland security initiatives;
$625 million for pandemic flu preparedness;
$3.5 billion agricultural disasters assistance; and
an increase to the federal minimum wage (with approximately $5 billion in corresponding tax breaks for small business); and
language that would prohibit the Secretary of Health and Human Services from implementing a proposed Medicaid rule (published January 18, 2007) that would limit payments to government health care providers and alter state financing mechanisms for a period of one-year.

Negotiations have already begun between the House and Senate appropriators on a second supplemental, which House and Senate leadership hope to complete by the Memorial Day break.

U.S. House and U.S. Senate Budget Resolutions
The House and Senate will soon begin negotiations on the FY 2008 Budget Resolution to resolve the difference between the House and Senate Budget Resolutions— H. Con. Res. 99 and S. Con. Res. 21, respectively. The budget resolutions differ on discretionary departmental spending levels and the extension of various tax breaks. House and Senate appropriators may begin their work on FY 2008 appropriations bill by May 15 if the House and Senate budget conferees have not reached an agreement on the budget resolutions.

NCSL Annual Meeting: August 5-9, 2007
This summer, thousands of state legislators and legislative staff will come to Boston—the cradle of the American Revolution—to revolutionize ideas for America’s future. For more information: http://www.ncsl.org/annualmeeting/

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).