Federal Budgets and Revenue Update
June 13, 2005
Volume 11, Number 8
An Information Service of the NCSL Budgets and Revenue Committee
Back Issues Archive
APPROPRIATIONS UPDATE
The House has passed five of its twelve FY 2006 appropriations bills—Agriculture, Energy & Water, Homeland Security, Interior & Environment, and Military Quality of Life/Veterans Affairs—with two additional spending bills—Defense and Science/Commerce/Justice/State—ready for floor action. The Senate has held only a subcommittee markup of its Interior appropriations package. At this point, the House is on its way to passing all 11 of its bills by the July 4 recess, while the Senate may have trouble completing half of its bills by the August recess.
Since the last Update, the House has approved the FY 2006 Agriculture spending bill. The bill (H.R. 2744) funds the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) slightly above the FY 2005 level of $5.278 billion and funds the Food Stamp Program at $40.7 billion ($35.1 billion was provided in FY 2005). The bill also includes an amendment prohibiting the use of FDA funds to enforce a ban on drug importation. The White House released a Statement of Administration Policy (SAP) opposing the provision citing safety concerns that Americans purchasing imported drugs would not be required to show a prescription prior to purchase. The bill also includes a one-year delay of the controversial country-of-origin labeling (COOL) program.
The Clean Water State Revolving Funds (SRFs) would receive $1.1 billion for FY 2006, if action taken on June 7 in the Senate Interior and Environment Appropriations Subcommittee holds. The FY 2005 funding level is $1.1 billion. House-passed legislation sets the funding level at $850 million and the Administration’s budget calls for $750 million. NCSL urged a return to FY 2004 levels of $1.34 billion based on identified needs, and will lend its support to the Senate’s recommendation through conference
WAYS & MEANS HOLDS FIRST HEARING ON PRESIDENT’S TAX REFORM INITIATIVE
The House Ways & Means Committee met June 8 to discuss federal tax reform. Committee Ranking Member Charles Rangel (D-New York) suggested that the panelists, a group of five recognized economists, could best assist the Committee by identifying and justifying the removal of deductions, credits, and exemptions in the tax code that hold no economic benefit. The Committee heard about the current code’s complexity and burdensome taxpayer compliance requirements from Dr. Joel Slemrod, Director of the Office of Tax Policy Research at the University of Michigan. Dr. Slemrod noted in his testimony that overall collection requirements cost taxpayers $135 billion in FY 2004, or 1.2% of GDP. Recommendations by the President’s Advisory Panel on Tax Reform are due July 31. 2005. However, Congressional action may not take place till next year.
NCSL RELEASES NEW MANDATE MONITOR
The 109th Congress began the second decade of UMRA by adopting federal standards for state issued driver’s licenses, waiving a point of order in the House against an intergovernmental mandate contained in the Energy Policy Act, and paving the way for a $10 billion reduction in federal Medicaid expenditures starting in FY 2007, according to the May 25 edition of NCSL’s Mandate Monitor. The new edition is available on NCSL’s website at http://www.ncsl.org/standcomm/scbudg/manmon.htm
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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 |
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