Budget Resolution Approved by House and Senate Committees

On March 12, the House Budget Committee approved, 24-19, the FY2004 budget resolution (as-yet-unnumbered). The next day, the Senate Budget Committee approved its resolution by a vote of 12-11. Although the budget resolution is non-binding, it provides a blueprint for federal spending in the upcoming fiscal year. Under the 1974 Budget Act (P.L. 93-344), Congress is required to approve a budget resolution by April 15; however, Congress has met that deadline only five times since 1974.

Under the Senate resolution, $784 billion would be provided for discretionary spending in FY2004, approximately the same amount requested by the President. The House resolution would provide $775 billion in FY2004.

Both the House and Senate plans would establish several reserve funds in the event that Congress enacts legislation to address Medicare reform, including a prescription drug benefit, and Medicaid and State Child Health Insurance Program (SCHIP) reform. The House and Senate would provide $400 billion over ten years for the Medicare reserve fund. Additionally, the House and Senate would provide $3.3 billion in FY2004 and $8.9 billion between FY2004 and FY2008 for Medicaid and SCHIP reform. The Senate plan also would allocate $12.8 billion through FY2010, provided that the legislation does not increase the deficit within the next ten years.

House Plan
At press time, full details of the House budget resolution were unavailable.

Although the committee defeated roughly 40 Democratic amendments, the committee did approve, 41-1, a bipartisan amendment offered by Reps. Chet Edwards (D-TX) and Edward Schrock (R-VA). Their amendment would increase the funding for federal impact school aid in areas where there are large concentrations of military families to $223 million.

Another amendment, offered by Rep. Denise Majette (D-GA), was defeated, 19-24. Her amendment would have added $7.7 billion for education programs.

Rep. Tammy Baldwin (D-WI) offered an amendment that would have increased spending for scientific research at the National Institutes of Health, the National Science Foundation, the National Aeronautics Space Administration, the Department of Energy, and the Department of Homeland Security by $4.5 billion. The amendment was defeated, 17-24.

Another amendment, offered by Rep. Darlene Hooley (D-OR), would have increased spending for special education by $2.5 billion. Her amendment failed, 17-24.

Rep. Bobby Scott (D-VA) offered an amendment that would have fully funded the No Child Left Behind education reform bill; however, the committee rejected the amendment, 19-23.

Rep. Harold Ford, Jr. (D-TN) offered an amendment that would have expressed the sense of Congress that more money is needed to pay for federal health programs and to provide coverage for millions of uninsured persons. The amendment was defeated, 18-24.

Additionally, an amendment offered by Rep. Jim Cooper (D-TN) was defeated, 17-24. His amendment would have required that Head Start remain within the Department of Health and Human Services rather than be moved to the Department of Education.

Several other amendments were defeated by voice vote, including:

• An amendment offered by Rep. Ford that would have eliminated the President’s proposed dividend tax cut in order to provide early childhood education for every three-and four-year old child;
• An amendment offered by Rep. Rahm Emanuel (D-IL) that would have increased funding for Pell Grants; and
• An amendment offered by Rep. Rosa DeLauro (D-CT) that would have reduced the President’s tax cut by $2.8 billion and would have used half of the money to increase child care subsidies for low-income working families and the other half to reduce the deficit.

Senate Plan
The Senate plan would provide $78.5 billion for education programs. Of this amount, $12.7 billion would be provided for Title I under the Elementary and Secondary Education Act, a $1 billion increase over FY2003. Additionally, $10.1 billion would be provided for special education, a $1.2 billion increase over last year. The Senate also would provide a $1 billion increase for Part B of the Individuals with Disabilities Education Act.

Health programs would receive $240.6 billion in FY2004. Of this amount, the National Institutes of Health would receive $27.9 billion.

In FY2004, the Senate would provide $11.5 billion in discretionary funding for international development and assistance. Last year, $10.4 billion was allocated by Congress. Also, $450 million would be provided for global HIV/AIDS programs and $22 billion would be provided over the next ten years.

During the Senate Budget Committee’s consideration of the bill, the committee approved, by voice vote, a sense of the Senate resolution by Sen. Russ Feingold (D-WI) that calls for a maximum increase in Pell Grants to $9,000.

The committee defeated several amendments, including:

• An amendment offered by Sen. Debbie Stabenow (D-MI) that would have increased the Medicare reserve fund from $400 billion to $600 billion and would have reduced the tax cut provisions in the bill by $400 billion. It was defeated, 11-12.
• Another amendment, by Sen. Stabenow would have lowered prescription drug prices. It was defeated, 11-12.
• An amendment by Sen. Paul Sarbanes (D-MD) would have provided $16 million in additional funding for unemployment insurance. It was defeated, 11-12.
• An amendment offered by Sen. Patty Murray (D-WA) that would have fully funded the No Child Left Behind Act and reduced tax breaks for wealthy taxpayers was defeated, 11-12.