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FY11 Appropriations Process Moving Forward

Members of Congress face a busy week as they attempt to advance some major bills before the start of the July Fourth recess.  At the same time, the FY11 appropriations process may also begin to gear up this week and move forward after the July recess period.

House Democrats would like to approve the FY10 supplemental budget by the end of this week, which would provide critical war funding as well as some other “emergency” funding including money to help states prevent teacher layoffs.  Democratic leaders are considering using a process where two separate votes would be taken; one for the war money and another for all the other funding.  The supplemental plan now being circulated by Democrats would total $61.5 billion, and would include $10 billion to prevent K-12 teacher layoffs and $4.95 billion for Pell grants.  The Pell grant funding would help fill a hole in the president’s budget request for FY11, and effectively free up discretionary spending for this year’s appropriations bills.

Meanwhile, we may see action on the FY11 appropriations process this week as the House Appropriations subcommittees begin to consider a series of FY11 spending bills.  House appropriators could have half their bills approved at the subcommittee level by the end of the week, with five markups scheduled.  The Homeland Security Appropriations Subcommittee approved its draft last week, and the following five subcommittees are set to meet in coming days: Commerce-Justice-Science (Tuesday); Agriculture and State-Foreign Operations (Wednesday); and Legislative Branch and Transportation-HUD (Thursday).   However, most of these bills are not expected to be considered on the House floor before November, necessitating a long-term continuing resolution (CR).   Republican appropriators have already signaled that they intend to offer amendments at the subcommittee mark-ups as they may not get another chance to express their concerns about federal spending until after the mid-term elections.   

The Senate may also begin to move a few of their own spending measures.   The Chair of the Senate Appropriations Committee has suggested that a couple of the FY11 spending bills would be considered this week but the schedule is still unclear at this point.  If markups for spending bills are scheduled this week and the committee follows past practices, both a subcommittee and full committee markup would be held for the bills considered.

Senator Robert Byrd, 1917-2010

Early this morning, US Senator Robert Byrd (D-WV) passed away at a hospital in Virginia.  Byrd was 92.  

Byrd, who was first elected to the Senate in 1958, was President Pro Tem, a largely ceremonial post but one that put him third in succession to the presidency.  On November 18th of this year, his 20,774th day of service in Congress, Byrd reached a milestone as the longest-serving lawmaker in Congressional history.  He had previously held the title of the longest-serving US Senator.

With the Senator’s death, West Virginia GovernorJoe Manchin (D) must select an interim replacement.  A West Virginia law appears to state that the replacement will likely hold the seat for the remainder of the late senator’s record ninth term, through 2012.  For that reason, Byrd’s death would not impact the partisan makeup of the Senate, nor would it directly impact the pending 2010 elections.  However, there is some ambiguity in the law that has left some election experts questioning the what should happen with the seat.

The Senator’s passing may cause a slight shake-up with Senate Appropriations Committee members.  Byrd has been the second senior member of that committee, behind Senator Daniel Inouye (D-HI), and the Chair of the Homeland Security Subcommittee.  Depending on who replaces Byrd as chair of that subcommittee, it could cause a small round of musical chairs with other subcommittee chair positions.  I don’t expect any shocking changes, and the Democrats may not make any permanent changes until after the mid-term elections in November. 

As an observer of Congress, I will miss Senator Byrd’s eloquent floor speeches and the way he was able to make his political points using both West Virginia and US historical references.  I didn’t always agree with him, but I certainly respected his point of view — and I almost always learned something new from him.  Thank you Senator Byrd and may you rest in peace.

Senate Fails to Pass Extenders for the Third Time

On Thursday, Senate Democrats failed for a third time to pass a jobs and economic relief bill (tax extenders bill).  Republicans rejected the $100 billion-plus package, which included payments to states to cover for Medicaid costs and an extension of unemployment benefits.  This latest version of the bill reduced the original $24 billion in new state assistance for Federal Medical Assistance Percentages (FMAP) to just $16 billion and also included a phase out of payments altogether. The smaller FMAP payments were also fully paid for with offsets.  Unfortunately, that was not enough to attract the 60 votes necessary and the measure failed 57-41.  Both Senators Murray and Cantwell supported the measure.

Individual portions of the bill may be revived, especially given the almost 1.2 million unemployed workers who are currently living without unemployment benefits.  The FMAP payments are also critical to roughly 29 states – including Washington State – as they have all included these anticipated funds in their current budgets. Senate Majority Leader Harry Reid (D-NV) has expressed great frustration with yet another failure to pass this measure and announced he would pull the bill from the floor and turn to other legislation. 

The Senate will go home at the end of next week for the July Fourth recess period.  When they return, it is expected that they will focus their debate on energy policy, including legislation related to off-shore oil drilling. They will break again on August 6th for a 5-week period.  Unless there is a major breakthrough with those opposed to the bill, Reid seems prepared to wait until after Labor Day before trying again on the extenders bill.

Energy & Climate Action Remains Uncertain

The Gulf oil spill continues to complicate negotiations on a legislative pathway for energy and climate legislation.  While many agree, including the President, that Congress must take action on an energy bill this year, several moderate senators remain unconvinced that a climate bill can garner the necessary votes in the Senate.  The Senate continues to discuss potential measure that would include provisions such as renewable energy incentives and standards, energy efficiency improvements, revisions to offshore oil and gas policies, and may also include climate change language that regulates greenhouse gas emissions.  

The House passed a combined energy and climate measure (HR 2454) last year.  But that bill and other proposals have stalled in the Senate.  President Obama cited the House measure in his televised speech from the Oval Office on Tuesday evening but he did not specifically mention action to combat greenhouse gas emissions.  Today, the Senate Democratic Caucus plans to discuss prospects for action this year on energy and climate bills.

Multiple proposals, or portions of those proposals, are on the table for discussion.  Senate Energy and Natural Resources Chairman Jeff Bingaman (D-NM) successfully moved an energy policy bill (S 1462) out of his committee last year that includes a renewable electricity generation standard, offshore oil production allowances, and other standard energy policy revisions.  Senators John Kerry (D-MA) and Joseph Lieberman (I-CT) are pushing for their climate change proposal, which has not yet been introduced.   The Kerry-Lieberman measure adds nuclear power and state offshore oil and gas revenue-sharing incentives in an attempt to garner Republican support.  Senators Maria Cantwell (D-WA) and Susan Collins (R-ME) introduced their version of a climate proposal (S 2877) last year, which proposes a “cap and dividend” solution as opposed to the more common “cap and trade” option.  Finally, Senator Richard Lugar (R-IN) recently introduced yet another energy and climate research bill (S 3464).  Except for the Lugar proposal, all the measures were crafted and unveiled prior to the Gulf of Mexico oil spill.

The Office of Federal Relations has reviewed all the current proposals and will monitor the process closely if the Senate does decide to move forward on energy and/or climate legislation this year.

Congress Returns to Unfinished Business

Congress returns this week from its one-week Memorial Day recess with the Senate ready to take up the House-passed “extenders” bill, while the House determines their next move on the FY10 supplemental bill.

Tax Extenders:  The tax extenders measure (HR 4213) under consideration in the Senate includes a number of important program authorities that expired over the recess period, including authority for long-term unemployment benefits and provisions preventing a scheduled 21 percent cut in Medicare reimbursement rates to doctors.  The House narrowly passed the measure on May 28 just hours before leaving for its Memorial Day break.

The most important provision to the State of Washington is the “emergency” provision that would have extended for another six months increased federal aid for joint federal-state Medicaid programs (FMAP).  Because states lag behind national recovery, they expect 2011 to be as bad as 2010, and states will not begin the path to recovery until 2012.  The Senate is under pressure to include this provision in their version of the bill.

Supplemental Budget:  House action on the FY10 supplemental appears unlikely this week, as Democratic leaders have not yet agreed on a strategy to move the bill forward.  The supplemental provides funds for ongoing efforts in Iraq and Afghanistan, as well as funds to assist with the oil spill response in the Gulf.  The House bill would also include $23 billion to prevent layoffs of teachers when special aid from the stimulus runs out, as well as $5.6 billion to fill the Pell Grant shortfall. 

The Senate took action on this measure before the Memorial Day recess, but their version of the bill does not include the $23 billion education jobs package or $5.6 billion to cover the projected shortfall in the Pell Grant program.  The measure being developed by House Appropriations Committee Chairman David Obey (D-WI) is expected to include both provisions, but public higher education would not be included in the education jobs bill, nor would the state maintenance of effort (MOE) provision apply to higher education.  As pointed out in a May 27 higher education association letter to Mr. Obey, the latter provision could leave public institutions vulnerable to cuts as states strive to meet the K-12 MOE requirement. 

Budget and Appropriations:  Democrats this week will continue their efforts to pass a FY11 budget or deeming resolution in order to begin drafting and passing the annual appropriations bills.  Senate Budget Committee Chairman has indicated plans to push for passage of a five-year budget resolution in the Senate by the Independence Day recess.

Environment and Energy:  The BP Gulf of Mexico oil spill continues to dominate the congressional calendar, with at least three hearings scheduled for this week.  The Senate is likely to vote Thursday on a long-awaited resolution introduced by Senator Lisa Murkowski (R-AK) that would strip the EPA of its regulatory power over carbon emissions.  The resolution has 41 co-sponsors, including three Democrats. The measure needs 51 votes for passage.

The climate and energy bill sponsored by Senators John Kerry (D-MA) and Joe Lieberman (D-CT) will also be on the Senate’s agenda during the month of July.  Senate Majority Leader Harry Reid (D-NV) wrote in a letter to committee leaders last week that he wants them to offer legislative language related to the oil spill before the Independence Day recess for inclusion in a comprehensive energy bill that will be debated on the floor in June.  

Ocean Acidification Resolution:  On Tuesday, the House will consider a resolution introduced by Congressman Jay Inslee (D-WA) that calls for the United States to adopt national policies and pursue international agreements to prevent ocean acidification, to study the impacts of ocean acidification, and to address the effects of ocean acidification on marine ecosystems and coastal economies.  House Resolution 989 was first introduced by Inslee in December 2009 and currently has 53 co-sponsors, including Congressmen Brian Baird (D-WA), Norm Dicks (D-WA), and Adam Smith (D-WA). 

Science and Engineering Festival:  The USA Science & Engineering, the country’s first national science festival, will be held on the National Mall October 3-24, 2010. The National Academy of Sciences, the National Academy of Engineering, Institute of Medicine, and the National Research Council are official festival partners. The expo will give more than 500 US science and engineering organizations the opportunity to present a hands-on science activity to inspire the next generation of scientists and engineers.  Learn more about the Festival.