Category: Budget

The House and Senate will take up their budget resolutions this week as Democrats seek to lay the groundwork for healthcare reform and other elements of President Obama’s agenda, as Republicans continue to make the case that the programs will hurt the struggling economy.

Both resolutions include deficit-neutral reserve funds for healthcare reform, energy and education — three pillars of the Obama agenda — leaving it up to the committees of jurisdiction to draft legislation on matters such as a cap-and-trade program to limit greenhouse gas emissions.

Source: Congress Daily

Yesterday, the Senate Budget Committee approved its FY10 budget resolution following similar action in the House the day before.  The White House Budget Director applauded House and Senate committee approval of their budgets, noting they include the administration’s top priorities.   Both the House and Senate will take floor action on their proposals sometime next week.  Unlike the version approved by the House Budget panel on Wednesday, the Senate resolution includes no reconciliation instructions for legislation to implement Obama’s health and education policies. Such provisions would allow those bills to move without the threat of a Senate filibuster.  The decision of whether to include reconciliation will be made in April during a House-Senate conference on the budget.  Democrats are hopeful bipartisan support can be found for an overhaul of the health care system, but many want reconciliation as a backup to move a bill if negotiations break down.

House and Senate Budget Committees are on course to consider a fiscal year 2010 budget resolution during the week of March 23rd. A budget resolution sets parameters for the spending and tax provisions of the detailed appropriations bills that emerge from Congress. A budget resolution identifies priorities of the majority party for both the upcoming fiscal year and the future. The FY10 budget process will likely set the stage for several priorities inclusding an overhaul of the health care system, curbing greenhouse gas emissions through a cap-and-trade system, and making Pell Grants an entitlement. President Obama released a FY10 budget blueprint last month. However, a detailed budget request from the President is not expected until late April. Nonetheless, Democratic leaders in Congress hope to have a budget resolution passed by early April -ahead of a two week congressional recess. Passing a budget resolution may prove difficult this year, particularly in the Senate, as there is considerable disagreement over where spending should be cut going forward. The movement of actual appropriations bills will likely take place over the course of the summer and into the fall.

The FY09 omnibus appropriations bill was signed into law today, following a 62-35 Senate vote last night and a statement by President Obama that the earmark process needs to be reformed during the FY10 appropriations process. According to the President, many congressionally directed appropriations (also known as earmarks) serve legitimate public needs, but a few suspect projects have brought about a negative view of the practice. Most of the President’s suggestions on earmark reform center around transparency, like requiring Members of Congress to publically post their earmark requests on a website. Additionally, the President stated that earmarks directed to private for-profit organizations should be subject to the same competitive bidding process as other federal contracts. It is expected, as stated recently by the President’s budget chief Peter Orszag, that future appropriations bills will have fewer requests for earmarks. Continue reading “Fiscal Year 2009 Appropriations Signed Into Law”