July 16, 2010
J.R. Reskovac
Sarah Strup
Appropriations-Budget
Senate appropriators agreed Thursday to cut $14 billion from President Obama’s FY11 budget request, approximately double the cut offered by House Democrats, but still left Republicans unsatisfied.
The Appropriations Committee voted 17-12 to put a $1.114 trillion cap on FY11 regular discretionary spending, with the Pentagon taking two budget hits at the markup to bring the figure down. That did not prevent GOP appropriators from refusing to support the 12 annual appropriations bills unless the cap was at most $1.108 trillion. Appropriations Chairman Daniel Inouye (D-HI) began the markup by proposing only an $8 billion reduction from Obama’s request. He later offered to split the difference with the Republicans and lower the spending cap by an additional $6 billion, with the entire amount taken from Defense programs.
The House has adopted a spending cap of $1.121 trillion. The FY10 cap on non-emergency discretionary spending was about $1.090 trillion. The House did not write a traditional five-year budget resolution this year and instead settled on a one-year spending cap for the appropriations bills.
Inouye’s plan goes far below the spending cap included in the FY11 budget resolution (S Con Res 60) approved by the Senate Budget Committee on April 22. Under that resolution, which the full Senate never took up, non-emergency discretionary spending would have been cut by only $4 billion.
The full Senate does not plan to consider the resolution approved by the Budget Committee, whose chairman, Kent Conrad of North Dakota, said Thursday that Senate Democrats are still discussing whether to try to adopt a one-year cap like the House did.
The alternative would be to do nothing and move the bills under the spending plan adopted by the Appropriations Committee.
Appropriations- Subcommittee Markups
Agriculture
Senate Appropriations on Thursday approved its $22.8 billion discretionary bill, which provides $296 million less than 2010 funding and is $27 million below the request. It also includes $109.1 billion in mandatory spending for nutrition, crop insurance and other farm support programs, bringing the bill's total to $131.9 billion.
Energy/Water
The House subcommittee on Thursday approved a $34.7 billion discretionary bill, $1.2 billion more than 2010 funding but $675 million below the request. Most of the increase, $1.1 billion, would go to national security programs in the National Nuclear Security Administration. The Corps of Engineers would receive $5.3 billion, which is $399 million more than requested, but a $165 million reduction from FY10. The Bureau of Reclamation would receive $1.1 billion, a $22 million cut from the current level, but equal to the request. The measure also includes $6.9 billion for weapons activities, which is $606 million more than the FY10 level.
Homeland Security
Thursday, the Senate approved its $43.9 billion discretionary bill. The measure would provide $1 billion (two percent) more than current funding, but $100 million less than requested. Like its House counterpart, it rejects administration proposals to cut Coast Guard personnel and other assets, and provides more than requested for grants to state and local first-responders.
Labor/HHS/Education
The House Appropriations Subcommittee approved its draft bill Thursday, the biggest of the 12 annual measures, with more than $730 billion in total funds. The bill would provide $176.4 billion in discretionary funding, which is roughly $12.7 billion, or eight percent, more than the FY10 enacted level. Overall, the measure, approved 11-5, would allocate a total of $738.7 billion, $562.3 billion of which is mandatory spending. The measure is focused on protecting the middle class, according to subcommittee’s chairman David Obey, and would provide significant increases for Labor Department activities related to employment and job training. Overall, the department would get $14.2 billion in discretionary funding, which is about $680 million (five percent) more than current levels. However, spending on Education programs was trimmed down significantly, with $71.9 billion provided for the Education Department, which is $7.7 billion more than fiscal 2010 levels but nearly $1.5 billion less than Obama’s request.
Military Construction- VA
The Senate approved the $77.25 billion discretionary measure on Thursday, $1.5 million below what was requested and $751.9 million below current levels. The VA would receive $57 billion in discretionary spending, $27 billion more than requested. It also includes $63.8 billion in mandatory funding for VA pensions and benefits, bringing total VA funding to $120.8 billion and total bill funding to $141.1 billion.
Washington Outlook
Members of Congress can anticipate a busy schedule in the coming weeks before the August recess. Democratic and Republican leadership aides said that the main items on the agenda that can realistically pass before the recess are the unemployment extension and the financial regulatory reform conference report that passed yesterday, as well a supplemental defense spending bill and confirmation of Solicitor General Elena Kagan to the Supreme Court.
The Senate will hold a cloture vote Tuesday to extend the eligibility for unemployment benefits. The bill, (HR 4213) caused a continued battle between Democrats and the GOP, highlighting their economic contrasts as they struggle to move broader bills. Senate Majority Leader Reidalso said the Senate will swear in the interim replacement for the late Senator Robert Byrd (D-WV) at 2:15 p.m. Tuesday, then will resume voting on the unemployment extension immediately after at 2:30 p.m..
Senate Democrats have announced a long wish-list of measures they hope to pass this summer. Reid said he wants to take up an energy bill; a new version of tax extenders legislation; a House-passed bill responding to the Supreme Court's Citizens United v. FEC decisions loosening contribution regulations on corporations and unions; and possibly pass a defense authorization bill. However, chances that there will be action on all those measures before Labor Day, is highly unlikely. That puts the measures on a long list of Democratic priorities endangered by the looming election and end of the 111th Congress.
Senate Democrats have yet to find a way to move the FY10 war supplemental (HR 4899), which appears unable to pass the Senate with $16 billion in domestic spending added in the House. The White House has threatened a veto of the measure as a result of an offset for the added costs that would cut President Obama’s education programs.
With the House set to recess a week earlier than the Senate, it looks possible the upper chamber could send over the Senate-preferred version days before the House recesses, though talks continue, according a Republican staffer. It is uncertain whether the House could then pass the bill, given opposition by some liberals without the domestic spending. The Pentagon is working on contingency plan in case Congress fails to pass a supplemental. If the supplemental is not ready by next week, the Senate will resume consideration of a bill to spur small business job creation, a Reid spokeswoman said. Democrats still hope to reach a deal on amendment with the GOP on the measures, but an aide said it may be pushed aside until after Labor Day.
The House Appropriations Committee is expected to mark up several spending bills next week, including a pair of oil spill research measures.
Sponsored by Lynn Woolsey (D-CA), the first bill (HR 2693) would expand a federal pollution research program to include a study on preventing and responding to oil spills. The second bill (HR 5716) sponsored by Bart Gordon, (D-TN) would overhaul a federally funded deep-water drilling research program that the Obama administration has targeted for termination.
