Federal Budgets and Revenue Update

June 24, 2005
Volume 11, Number 9

An Information Service of the NCSL Budgets and Revenue Committee

APPROPRIATIONS UPDATE

In the race to complete work on the FY 2006 appropriations measures, the Senate Appropriations Committee finally took some significant steps toward keeping up with House appropriators. However, the House completed work on a series of bills. Below is a rundown of action and highlights of programs of interest to the states.

FY 2006 Appropriations Bills

House Approvals

Senate Approvals

Approved by Subcommittee

Approved by Committee

House
Vote

Approved by Subcommittee

Approved by Committee

Senate
Vote

Agriculture HR2744

5/16/05

6/2/05

6/8/05

6/21/05

6/23/05

Science/State/Justice/Commerce (House) HR2862
Commerce/Justice/Science (Senate)

5/24/05

6/7/05

6/16/05

6/21/05

6/23/05

Defense HR2863

5/24/05

6/7/05

6/20/05

District of Columbia

Energy & Water HR2419

5/12/05

5/18/05

5/24/05

6/14/05

6/16/05

Foreign Operations (House)
State/Foreign Operations (Senate)

6/16/05

6/21/05

Homeland Security HR2360

5/4/05

5/10/05

5/17/05

6/14/05

6/16/05

Interior & Env. (House) HR2361

Interior (Senate)

5/4/05

5/10/05

5/19/05
6/7/05
6/9/05

Labor/HHS/Education

6/9/05

6/17/05

Legislative Branch

N/A

6/16/05

6/22/05

6/21/05

6/23/05

Mil. Qual. of Life/Veterans Affairs (House) HR2528

Mil. Const./Veterans Affairs (Senate)

5/12/05

5/18/05

5/26/05

Trans./Treasury/HUD/Judiciary/D.C. (House)
Trans./Treasury/Judiciary/HUD (Senate)

6/15/05

6/21/05

The Senate Homeland Security Appropriations bill

Reduces by 61 percent (from $1.1 billion in FY 2005 to $425 million in FY 2006) funds available for state homeland security formula grants. Of the $425 million, each state, the District of Columbia and the Commonwealth of Puerto Rico will receive .75 percent with the territories receiving .25 percent.
Provides $1.09 billion ($1.2 billion was provided in FY 2005) to be distributed by the Secretary of Homeland Security based on risks, threats, vulnerabilities, unmet capabilities and cooperation of multiple jurisdictions in preparing domestic preparedness plans. The legislation also would allow grants to be made not only to states but to single or multiple jurisdictions in the same urban area or region. And $25 million of the $1.09 billion is to be made available to tax exempt organizations.
Provides level funding ($400 million) for Law Enforcement Terrorism Prevention Grants.
Provides level funding ($180 million) for Emergency Management Performance Grants.
Provides $40 million for grants to states to implement the REAL ID Act of 2005. The House bill provides $100 million.

The Senate Energy & Water Appropriations bill

Provides $240 million in weatherization assistance program grants ($230 million was provided in FY 2005).
Provides $41 million for state energy program grants (a reduction from $44.7 million in FY 2005).

The House Science/Commerce/Justice/State Appropriations bill

Provides $405 million for the State Criminal Alien Assistance Program (SCAAP). This represents a 34 percent proposed increase over FY 2005 levels.
Provides $366 million in Byrne Memorial Justice Assistance Grants (a reduction from $634 million in FY 2005).
Provides $334 million for juvenile delinquency prevention and accountability programs (a reduction from $384 million in FY 2005).
Provides level funding for violence against women prevention and prosecution programs.

The House Labor/HHS/Education Appropriations bill

The bill provides $2 billion for the Low Income Home Energy Assistance Program (LIHEAP). While this figure is slightly above the FY 2005 level, the bill does not include the $300 million in additional emergency spending provided for the program in FY 2005.
Provides very small increases for Title 1 grants to states and special education grants, $100 (for a total of $12.7 billion) million and $150 million (for a total of $10.7 billion), respectively.
Reduces from $496 million to $300 million the funds for the Education Technology State Grants.
Eliminates funding for state grants for incarcerated youth offenders.
Reduces from $437 million to $400 million forwarded funds for state grants under the Safe and Drug Free Schools and Communities.
Increases payments to states for adoption assistance by $24.9 million.
Reduces the Maternal and Child Health Block Grant from $723 million to $700 million.
Increases funding for Ryan White AIDS programs by $10 million.
Reduces by 50 percent (from $636 million to $320 million) grants to states for community service (Community Service Block Grant).
Reduces by $30.8 million grants to states for adult training and by $36 million funds for youth training.
Reduces by $40 million funds available for unemployment operations/state operations.
Reduces by $84 million (from $780 million to $696 million) allotments to states for employment services.

The House Transportation/Treasury/HUD/Judiciary/District of Columbia Appropriations bill

Recommends a 54 percent reduction (from $1.2 billion in FY 2005) in funds for Amtrak. Requires Amtrak to use its recommended $550 million for routes that require less than $30 per passenger to operate. If enacted, this threshold would effectively derail 21 existing routes. The administration and the subcommittee’s chair, Rep. Joe Knollenberg (R-MI), continue to suggest that supplemental state funding is one answer for Amtrak’s funding woes.
Provides $4.2 billion (a reduction from $4.7 billion in FY 2005) for assistance to state and local governments for economic and community development activities, of which $3.86 billion (a reduction from $4.1 billion in FY 2005) is available for the Community Development Block Grant (CDBG)

PRESIDENT GIVES TAX REFORM PANEL TWO MONTH EXTENSION

The White House released an executive order on June 16 extending the reporting deadline of the President's Advisory Panel on Federal Tax Reform by two months, from July 31 to Sept. 30. Reports suggest that the deadline was pushed back because the Administration and Congress are too busy working on other legislation including appropriations, the Central American Free Trade Agreement and the energy and highway bills to introduce new tax reform legislation. The Panel’s chairmen, former Senators Connie Mack (R-FL) and John Breaux (D-LA) issued a statement saying that the Panel was prepared to issue its report by the July 31 deadline, but appreciates the extra time to complete its work. The new deadline for reporting falls on Congress's tentative target adjournment date for the year.

What: NCSL Annual Meeting
Where: Seattle, Washington
When: August 16 – 20, 2005
How to Register: online or send us the registration form.
Go online and save $20

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