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Appropriations Outlook for Next Week

The Association of American Universities (AAU) released the following outlook today for the appropriations process scheduled to resume next week when congress returns from recess:  

The Senate Appropriations Committee will begin moving its FY12 bills next week as soon as the Senate returns from the August recess on September 6.  Two bills will be marked up that day in their respective subcommittees: Energy and Water and Homeland Security.  CQ Today reports that the full committee is expected to meet shortly after the subcommittee markups to adopt the FY12 spending cap and allocate funding among the panel’s 12 subcommittees.  Just one funding bill, Military Construction-Veterans, was approved by the Senate before the recess. 

 Senate Democratic leaders delayed approval of an FY12 budget resolution, which sets the discretionary spending ceiling for the fiscal year, because they could not gain majority support for any particular level of spending.  The issue was resolved on August 2 with enactment of the Budget Control Act, which included a discretionary spending total of $1.043 trillion for FY12.  That is $7 billion less than the FY11 level, but about $23 billion more than the level in the House-passed FY12 budget resolution.  

Earlier this year, the House passed an FY12 Budget Resolution that cut $30 billion from discretionary spending in FY11, and then approved six of its 12 appropriations bills based on those numbers.  The remaining bills include Commerce-Justice-Science, which funds the National Science Foundation and NASA, and Labor-HHS-Education, which funds the National Institutes of Health and student aid.

At this writing, House Republican leaders have not said how they will move forward on the remaining FY12 bills in light of the increased spending total, but they have expressed support for abiding by the higher overall number.  House Majority Leader Eric Cantor (R-VA), said in a memorandum to his Republican colleagues on August 17, “While all of us would like to have seen a lower discretionary appropriations ceiling for the upcoming fiscal year, the debt limit agreement did set a level of spending that is a real cut from the current year level.  I believe it is in our interest to enact into law full-year bills at this new lower level.”  House Appropriations Committee Chairman Hal Rogers (R-KY) stated his commitment to maintaining “the responsible 2012 spending level agreed to by the House, Senate, and White House under the recent debt ceiling agreement.” 

 While the Senate appropriations process is finally moving forward, the new fiscal year is just one month away, so there seems little chance that the House and Senate can approve all of their bills and reconcile them with one another by October 1.  The more likely scenario is congressional approval of one or more continuing resolutions to sustain funding into the new fiscal year, followed by some type of omnibus appropriations package.

Joint Select Committee on Deficit Reduction: Timeline & Deadlines

Timeline

August 16, 2011:  members of the Joint Select Committee on Deficit Reduction to be appointed.

September 16, 2011:  Joint Select Committee on Deficit Reduction must hold its first meeting.  

September 22, 2011:  Congress must consider a resolution of disapproval for first tranche ($900 billion) of debt limit increase.  

October 1-December 31, 2011:  the House and Senate must vote on a Balanced Budget Amendment.

October 14, 2011:  deadline for House and Senate committees to submit recommendations to the Joint Select Committee on Deficit Reduction.

November 23, 2011:  deadline for the Joint Select Committee on Deficit Reduction to vote on a plan with the goal (not a requirement) of $1.5 trillion in deficit reduction.   

December 2, 2011:  Joint Select Committee must submit report and legislative language to the President and Congress.

December 23, 2011:  Deadline for the House and Senate to vote on the Joint Select Committee on Deficit Reduction’s bill.     

January 15, 2012:  “trigger” date leading to $1.2 trillion of future spending cuts goes into effect, if the Joint Select Committee on Deficit Reduction’s legislation has not been enacted. 

February 2012:  Approximately when the first $900 billion of debt ceiling increase runs out. 

February/March 2012:  in this period—15 days after the President uses his authority under the bill to increase the debt ceiling a second time—is the deadline for Congress to consider a resolution of disapproval for the second tranche ($1.2-$1.5 trillion) of debt limit increase.  

Fall/Winter 2012:  additional $2.1-$2.4 trillion of borrowing authority from this law runs out. 

January 2, 2013:  OMB orders sequestrations for defense and non-defense categories of spending necessary to meet spending cuts required by the “trigger.”

Deficit Reduction Committee Complete

House Minority Leader Nancy Pelosi has tapped her three choices to serve on the deficit reduction super committee: Representatives James Clyburn (D-SC), Xavier Becerra (D-CA), and Chris Van Hollen (D-MD).  Pelosi vowed to appoint Democrats who would protect entitlement programs and push for revenue increases.  All 12 committee members are now in place.

More Super Committee Names

House Speaker John Boehner has appointed Ways and Means Chairman Dave Camp (R-MI), Energy and Commerce Chairman Fred Upton (R-MI), and Republican Conference Chairman Jeb Hensarling (R-TX) as the House GOP members of the deficit reduction “super committee.”  Hensarling will be co-chairman of the committee.  Senate Minority Leader Mitch McConnell also announced Wednesday the Senate Republican members:  Jon Kyl (R-AZ), Pat Toomey (R-PA), and Rob Portman (R-OH).

On Tuesday, Senate Majority Leader Harry Reid announced the Senate Democratic members of the committee: Patty Murray of Washington, John Kerry of Massachusetts and Max Baucus of Montana.  Murray will be the other co-chair.

House Minority Leader Nancy Pelosi has yet to name the House Democratic members of the committee.

Murray Tapped for “Super Committee”

Senate Majority Leader Harry Reid plans to tap Senator Patty Murray (D-WA) to serve as the co-chair of the deficit reduction super committee, which was created through the debt legislation approved last week.  According to Democratic sources, the other two picks for the Senate Democrats will be Senator Max Baucus (D-MT) and John Kerry (D-MA).