This week, the House and Senate will consider their respective FY 2009 budget resolutions (H. Con. Res. 312; S. Con. Res. 70), which will guide spending choices, both discretionary and mandatory. The amounts set in the resolutions are translated into allocations to the appropriations committees for discretionary programs and set the stage for potential cuts and changes to mandatory or entitlement programs through a budget reconciliation bill. Currently reconciliation is only required in H. Con. Res. 312. 

What is reconciliation?  If the budget resolution calls for reduced levels of entitlement spending or expected levels of revenues that are different from what would occur if current law remained unchanged, a process called reconciliation may be used.  In this case, the budget resolution contains reconciliation instructions to specific committees that include the dollar changes to be achieved and a deadline by which the legislation is to be reported.* Reconciliation bills are sent to the president for either his signature or veto.

States fare very well in both resolutions. “Faring well” is conditional, however. Budget resolutions do not have the force of law. They do not require a presidential signature. Appropriators are not bound to follow the directives in the budget resolution. On the other hand, the resolutions establish general and sometimes specific priorities. Having favorable language in a budget resolution can be an effective advocacy tool.

The table below provides a comparison of select provisions in the House and Senate budget resolutions as passed by the budget committees. A number of amendments are expected on the floor of the House and Senate.  This table will be updated as the budget process moves forward.

Comparison of House and Senate Budget Resolutions**
Category	House: H. Con. Res.  312 Status:  Passed Committee March 6 (22Y/12N)	Senate: Sen .Con. Res. 70 Status:  Passed Committee March 6 (12Y/10N)
Compared to President’s Request	$22 billion more than the president for domestic, non-defense discretionary spending.	$18 billion more than the president for domestic, non-defense discretionary spending.
Mandatory Spending Reconciliation	$750 million reduction in mandatory spending between FY 2008 and FY 2013 (to be reported no later than Sept. 12, 2008).	Not required.
Revenue Reconciliation	$70 million between FY 2010 and FY 2013, to include an AMT fix. (To be reported no later than July 15, 2008.)	Not required.
General Stimulus Language	Not included.	Provides the option for $35 billion in additional stimulus, which includes tax relief and mandatory and discretionary programs.  According to the committee summary, “among those with the highest ‘bang for the buck’ were unemployment benefits, Food Stamps and state fiscal relief.”  Possible forms of additional assistance could also include housing, infrastructure, LIHEAP, WIC and the Summer Jobs program.
SPENDING:  DISCRETIONARY
Defense	Provides robust funding for defense while shifting funds to target high priorities including cooperative threat reduction, nuclear nonproliferation efforts and quality of life issues for the troops and their families.	Funds the President’s core defense budget request over 5 years.  Provides for a 3.4 percent pay raise for military personnel.  Rejects the president’s proposal for new TRICARE enrollment fees and deductibles for military retirees under the age of 65.
Education and Training	Provides substantially more than the president for education, which includes job training programs.  Rejects the president’s elimination of 47 education programs. Proposes actions to make college more affordable, which includes increasing the maximum Pell grant.	Rejects the President’s proposed cuts in education, training and social services.  Assumes additional funding for programs such as Head start, NCLB, IDEA, Pell Grants and job training. Assumes Congress will provide tax relief to make college education more affordable.
Homeland Security and Justice Projects	Rejects the president’s proposal to eliminate funding for COPS, firefighters, State Criminal Alien Assistance Program (SCAAP) and the Edward Byrne Justice Assistance Grants.   Rejects the president’s cuts to the State Homeland Security Grant Program (SHSGP).	Rejects the president’s proposal to eliminate the program and funds COPS at the 2008 inflation-adjusted level. Funds State Homeland Security Grant Program (SHSGP) and the Firefighter grants at the 2008 inflation-adjusted level.   Provides $200 million for interoperable communications.
Community Development Block Grant (CDBG)	Rejects the president’s cuts to CDBG.	Rejects the president’s proposal to cut CDBG by $932 million.  The proposal funds the program at $4 billion, an increase of $68 million above the 2008 inflation-adjusted level.
AMTRAK	Increases funds for Amtrak.	Provides $1.8 billion, which is $1 billion above the president’s request and $453 million above the 2008 inflation-adjusted level.
Low Income Home Energy Assistance Program (LIHEAP)	Rejects the president’s cuts to LIHEAP.	Rejects the president’s cuts to LIHEAP.  Funds LIHEAP at $2.5 billion, $141 million above the 2008 inflation-adjusted level.  Includes an additional $600 million for LIHEAP in 2008.
Infrastructure	Invests in highways, water and other infrastructure by providing sufficient funds as well as a reserve fund.	Provides $9 billion more than the president’s budget proposal for key transportation accounts. Provides an additional $3.5 billion in stimulus in 2008 for “ready to go” infrastructure projects.
SAFETEA-LU	Fully funds.	Fully funds.
Clean and Safe Water SRFs	Rejects the president’s cuts to the Clean Water State Revolving Fund and other grants to states and tribes to address water and air quality.	Provides significant increases for the Clean and Safe Drinking Water State Revolving Funds.
Affordable Housing	Offset by regulation of certain government sponsored enterprises.	Rejects the president’s proposal to cut various housing assistance programs.
Community Health Centers	No specific language was identified.	Provides $2.9 million for Federally Qualified Health Centers (FQHCs).  This is $756 million above the 2008 inflation-adjusted level and $798 million more than the president’s request.
Woman, Infant and Children (WIC) Nutrition Program	No specific language was identified.	Provides $6.5 billion for WIC in 2009, a funding level that is $784 million above the 2008 level adjusted for inflation and $400 million more than the president’s request.
Child Care Development Block Grant	No specific language was identified.	Provides $2.5 billion for the Child Care Development Block Grant in 2009, $406 million above the 2008 level adjusted for inflation and $441 million more than the president’s request.
SPENDING:  MANDATORY
SCHIP	Provides for a deficit-neutral reserve fund for up to $50 billion.	Provides for a deficit-neutral reserve fund for up to $50 billion.
Medicaid	Rejects the president’s proposed savings from Medicaid.  Creates a reserve fund which supports a delay of Medicaid and SCHIP regulations. Establishes a reserve fund to extends Transitional Medical Assistance.	Creates a reserve fund to extend the moratorium on several Medicaid regulation and the August 17, 2007 SCHIP directive.  Establishes a reserve fund to extend Transitional Medical Assistance.
Medicare	Rejects the president’s cuts to Medicare.	Delays the Medicare trigger.
Farm Bill	Assumes sufficient funds for the Farm Bill.	Provides a deficit-neutral reserve fund for the reauthorization of agriculture programs. Allows for a $15 billion increase in mandatory agriculture funding between 2008 and 2013.
Unemployment Insurance	Considers making unemployment benefits available for an additional 13 weeks for unemployed workers and providing an addition 13 weeks for those living in states with high unemployment.	Possibly part of the $35 billion stimulus package. Considers making unemployment benefits available for an additional 13 weeks for unemployed workers and providing an addition 13 weeks for those living in states with high unemployment.
REVENUES
Tax Relief	Extends various tax breaks, including the child tax credit, state and local sales tax deduction, R&D credit; and the elimination of most estate taxes.	Includes a reserve fund for tax relief, including the extension of expiring provision as long as the cost of these measures is offset, this includes the state and local sales tax deduction.
AMT	Provides tax relief for 2008, which may include AMT.	Provides  tax relief for 2008, which may include AMT.
Housing	Provides $1 billion over the baseline in advance funding in project-based Section 8.	Gives Congress the option to provide additional stimulus, although details are up to committees of jurisdiction.
Energy	Increases funding for efficient and renewable energy programs.  Rejects the president’s cuts to research as well as weatherization assistance for lower-income families.  Accommodates legislation to encourage production of renewable energy alternatives, increased energy efficiency, investments in new energy and vehicle technologies, and training workers for “green collar” jobs.	Accommodates certain energy tax provisions.
Closing the Tax Gap, Shutting Down Tax Shelters, Addressing Offshore Tax Havens	Provides additional fund authority for the IRS to close the tax gap.	Provides additional fund authority for the IRS to close the tax gap. Provides reserve funds for the IRS to close the tax gap.
RESERVE FUNDS
	SCHIP Veterans Education for servicemembers, veterans and their families Infrastructure Investment Renewable Energy and Energy Efficiency Middle Income Tax Relief and Economic Equity (child tax credit, extension of the 10 percent individual income bracket, Extension of the deduction for small business expensing and extension of the deduction for state and local sales taxes, elimination of the estate tax on all but a small fraction of estates, and a tax credit for school construction bonds) AMT Higher Education Affordable House Medicare Improvements (including an increase in physician reimbursement rates and improvements to the Prescription drug program in Medicare Part D) Health Care Quality, Effectiveness and Efficiency (including mental health parity) Medicaid and Other Programs (including the Transitional Medical Assistance program) Trade Adjustment Assistance and Unemployment Insurance Modernization. Secure Rural Schools and Community Self Determination Act or to make changes to the Payments in Liu of Taxes Act of 1976. San Joaquin River Restoration and Navajo nation Water Rights Settlement National Park Centennial Fund Child Support Enforcement (allows states to pass through 100 percent of support to families without a penalty)	Strengthening and Stimulating the American Economy and Providing Economic Relief to American Families (This includes tax relief, revitalize manufacturing sector, housing assistance, flood insurance reform, trade adjustment assistance reform, TANF grants, child support enforcement and child welfare improvements, unemployment insurance reform and up to $5 billion for childcare entitlement to states). Improving Education Investing in Infrastructure Investing in Clean Energy, Preserving the Environment, including a reserve fund to carry out the San Joaquin River Restoration and Navajo nation Water Rights Settlement Veterans Improving America’s Health Care—reauthorization of SCHIP, to include an expansion  ($50 billion), Medicare improvements to include an increase in physician reimbursement, health care quality, FDA product regulation and drug importation, Medicaid (legislation addressing certain rules or administrative actions and legislation extending the Transitional Medical Assistance program) Judicial Pay and Judgeships
Sense of the House/Senate	America Competes Veterans’ health care and other priorities Homeland Security Long Term Fiscal Reform Waste, Fraud and Abuse PAYGO Long Term Budgeting Fighting Hunger Affordable Health Coverage Pay Parity Subprime lending and Foreclosures
BUDGET ENFORCEMENT
PAYGO	Includes a Sense of the House to extend PAYGO rules originally enacted in the BEA of 1990.	Requires that new mandatory spending and tax cuts be offset or get 60 votes.

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

*Basics of the Budget Process, Committee on the Budget, Majority Caucus, United States House of Representatives, Washington, D.C., February 2001.

**This document contains direct excerpts from the following documents:

• Report of the Committee on the Budget to Accompany H. Con. Res. 312, United States House of Representatives, March 7, 2008.
• FY 2009 Senate Budget Resolution:  Strengthening the Economy, Making America Safer, U.S. Senate Budget Committee Summary of the FY 2009 Senate Budget Resolution, March 5, 2007.
• Key Features of the Chairman’s Mark of the FY 2009 Budget Resolution, House Budget Committee, U.S. House of Representatives, March 5, 2008
• H. Con Res. 312 as passed by the House Budget Committee.
• S. Con Res. 70 as passed by the Senate Budget Committee