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Budget and Revenue Standing Committee

Federal Budget and Revenue Update

May 21, 2007
Volume 13, Number 7

An Information Service of the NCSL Budgets and Revenue Committee

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U.S. House and U.S. Senate Budget Resolutions

On May 17, the House and Senate adopted the FY 2008 Budget Resolution. The budget resolution, which sets overall discretionary spending for appropriators, authorizes $2.965 trillion in spending authority of which $954.1 billion is for discretionary spending programs. The resolution establishes authority to expand the State Children Health Insurance Program (SCHIP)($50 billion) and provide for additional funds for veterans health care ($43 billion), Medicare improvements (up to $5 billion); the Farm Bill reauthorization (up to $20 billion), and federal grants to states for child care (up to $5 billion). The resolution provides authority to extend alternative minimum tax relief and extend additional middle-income tax relief, including state and local sales tax deductions, the child tax credit, and marriage penalty relief. In addition, the resolution allows for a one year delay in the implementation of the rule published January 2007 on Medicaid intergovernmental transfers, urges appropriations for State Criminal Alien Assistance Program equal to its authorized levels; and calls for $750 million in reconciliation of education and labor programs (through FY 2011). The additional spending authority would be subject to PAYGO limitations (which require any new spending be offset by corresponding cuts or revenue raisers).

U.S. House Begins Work on FY 2008 Appropriations

On May 18, the House Appropriations Subcommittee on Homeland Security became the first subcommittee to approve FY 2008 spending bill. The legislation will be taken up by the full committee in the weeks following the Memorial Day break. The other appropriations subcommittees will soon follow. House leadership has indicated that they would like to have work completed on the appropriations bill by the July 4th recess.

Supplemental Appropriations

On May 17, the Senate adopted a placeholder for the emergency supplemental spending bill (H.R. 2206) in order to move the bill to conference with the House. On May 10, the House passed its bill, which included language to fund a portion of the military operations, with additional funds subject to a report by the administration on the progress in Iraq (the Whitehouse has issued a veto threat to the House language). The House bill also includes funds for veterans care, Katrina relief, Low Income Home Energy Assistance Program, SCHIP and an increase in the federal minimum wage (and corresponding tax breaks) and a provision to prevent the preemption of state chemical security laws and regulations that are more stringent than those created by Department of Homeland Security. The House and Senate leadership have indicated that the conference agreement should be negotiated by the Memorial Day break.

Department of Homeland Security Authorization

On May 9, the House adopted 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.

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/

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