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Federal Budgets and Revenue Update

May 6, 2005
Volume 11, Number 6

An Information Service of the NCSL Budgets and Revenue Committee

Back Issues Archive

HOMELAND SECURITY APPROPRIATIONS

On May 4^th, the House Appropriations Subcommittee on Homeland Security reported the Fiscal Year (FY) 2006 Homeland Security Appropriations bill. The bill provides:

• $750 million for basic state formula grants ($1.1 billion was provided in FY 2005);
• $1.215 billion for high-density urban areas, including $850 for urban area grants, $150 million for rail security, $150 million for port security, and $65 million for other infrastructure protection;
• $400 million for state and local law enforcement terrorism prevention grants (same as FY 2005);
• $180 million for Emergency Management Performance Grants (same as FY 2005); and
• $200 million for First Responder training.

As it relates to the state formula grants, under current law each state receives a minimum allocation of .75 percent with the remaining funds distributed based on population.  There are several bills pending before Congress to change the formula to distribute the funds based more on risk.  If Congress does not change the formula, this appropriations bill makes a change to that policy.  The .75 percent minimum to each state would be maintained; however, the balance of funds would be distributed based on risk, threat and need and NOT population.  The Congressional Research Service recently released a report providing a comparison of the formula provisions contained in S. 21 and H.R. 1544.  
To access the report: http://www.ncsl.org/print/standcomm/scbudg/homeform.pdf  

For more highlights on the appropriations bill: http://appropriations.house.gov/index.cfm?FuseAction=PressReleases.Detail&PressRelease_id=471&Month=5&Year=2005

INTERIOR AND ENVIRONMENT APPROPRIATIONS

On May 4^th, the House Appropriations Subcommittee on Interior, Environment, and Related Agencies reported an FY 2006 appropriations bill.  The bill includes:

• $850 million for the Drinking Water State Revolving Fund (SRF) (same as FY 2005);
• $850 million for the Clean Water SRF ($1.1 billion was provided in FY 2005 and $1.3 billion was provided in FY 2004); and
• $1.3 billion for Superfund.

For more highlights on the bill: http://appropriations.house.gov/index.cfm?FuseAction=PressReleases.Detail&PressRelease_id=470&Month=5&Year=2005

SUPPLEMENTAL APPROPRIATIONS

On May 5^th, the House approved the conference agreement on the FY 2005 Emergency Supplemental funding bill for defense-related activities, the global war on terrorism, and tsunami relief. The conference agreement INCLUDES House-proposed federally mandated driver’s license provisions (the REAL ID Act) which carries with it an estimated $500 million in unfunded mandates. The agreement dissolves the negotiated rule making process already underway by the Department of Transportation to establish standards for state issued driver’s licenses. NCSL has been part of the rulemaking process. (For more information on the rulemaking see the Dec. 15, 2004 Capitol to Capitol). The Senate is expected to vote on the bill early next week.

What:  NCSL Annual Meeting      Where: Seattle, Washington       When:  August 16 – 20, 2005    How to Register:   online or send us the registration form. Early bird saves $35-$85 until May 27; after May 27, go online and save $20

For more information contact NCSL staff: Molly Stauffer, Nick Steidel.