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FY2004 Budget Resolution Cleared for Conference

On March 26, the Senate approved, 56-44, its FY2004 budget resolution (S. Con. Res. 23). Last week, the House narrowly approved its resolution (H. Con. Res. 95) (see The Source, 3/21/03). 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.

In FY2004, S. Con. Res. 23 would provide $791 billion in discretionary spending. The President requested $786.6 billion in FY2004, and the House-passed resolution would provide $775 billion in FY2004.

On March 21, the Senate approved, 89-10, an amendment offered by Sen. Judd Gregg (R-NH) that would provide a $1.75 billion increase for Part B grants under the Individuals with Disabilities Education Act (IDEA). An additional $26.3 billion would be provided through FY2008.

Prior to approving the Gregg amendment, the Senate rejected, 47-52, an amendment offered by Sen. Kent Conrad (D-ND) that would have provided full funding for IDEA part B grants over ten years, by reducing tax breaks for the wealthy.

Sen. Maria Cantwell (D-WA) also offered an amendment that would restore funding for programs under the Workforce Investment Act. Her amendment was approved, 51-48.

Additionally, Sen. Blanche Lincoln (D-AR) offered an amendment expressing the sense of the Senate that the $1,000 child credit should be extended for an additional three years. The amendment was approved, 99-1.

Senators also offered a number of amendments that were approved by voice vote, including:

  • An amendment by Sen. Carl Levin (D-MI) that would use half of the $4.7 billion revenues received from corporate tax haven loopholes, to provide funding for IDEA, school construction and modernization, and after-school programs;
  • An amendment by Sen. Edward Kennedy (D-MA) that would increase the maximum Pell Grant from $4,050 to $4,500 in FY2004;
  • An amendment by Sen. Gregg that would provide $2 billion for education block grants to states for the No Child Left Behind Act, IDEA, or vocational education programs;
  • An amendment by Sen. Richard Lugar (R-IN) would increase spending in the foreign affairs account;
  • An amendment by Sen. Barbara Boxer (D-CA) expressing the sense of the Senate that the number of children in after-school programs does not decrease; and
  • An amendment by Sen. James Inhofe (R-OK) to increase impact aid.

The Senate also rejected numerous amendments, including:

  • An amendment by Sen. Barbara Mikulski (D-MD) that would have provided up to $5,000 for individuals with long-term or chronic care needs or for their family caregivers. The amendment was rejected, 45-54;
  • An amendment by Sen. Christopher Dodd (D-CT) that would have provided after-school programs for 1.6 million more children in FY2004 through increased funding. Additionally, the amendment would have increased funding for Head Start in order to serve 80 percent of eligible three- and four-year-old children and to increase the number of infants and toddlers in the program. The amendment failed, 48-51;
  • An amendment by Sen. Hillary Rodham Clinton (D-NY) that would have provided $1.3 billion in FY2004 through FY2013 for vocational education training, the same amount allocated in FY2003. Her amendment was rejected, 49-50;
  • An amendment by Sen. Jeff Bingaman (D-NM) that would have increased mandatory child care spending by $4.6 billion over five years and $9.1 billion over ten years. The amendment was rejected, 49-50;
  • An amendment by Sen. Tom Harkin (D-IA) would have restored education cuts. The amendment failed, 46-53;
  • An amendment by Sen. John Kerry (D-MA) that would have increased funding for global HIV/AIDS programs. The amendment failed by a vote of 47-51;
  • An amendment by Sen. Lisa Murkowski (R-AK) that would have extended the child tax credit through FY2013. The amendment failed, 48-52; and
  • An amendment by Sen. Mark Dayton (D-MN) that would have provided full and mandatory funding for IDEA in FY2004. The amendment failed, 28-70.

Additionally, the Senate tabled, 50-48, an amendment by Sen. Patty Murray (D-WA) that would have fully funded the No Child Left Behind Act 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 Children’s 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.

The Senate plan would provide $11.5 billion in discretionary funding for international development and assistance. Also $450 million would be provided for global HIV/AIDS programs in FY2004 and $22 billion would be provided over the next ten years. The House plan would provide $27.8 billion for all international programs.

Additionally, the Senate would provide $78.6 billion in FY2004 for education programs, while the House plan would provide $75.4 billion in FY2004. In FY2004, the Senate would provide $12.7 billion for Title I under the Elementary and Secondary Education Act, a $1 billion increase over last year. The House would provide $12.4 billion in FY2004.

In FY2004, health programs would receive $240.7 billion under the Senate plan and $235 billion under the House plan. Both the House and the Senate would provide $27.9 billion for the National Institutes of Health, $700 million more than last year.

The Senate also assumes $622 million for the Maternal and Child Health Block Grant, $2.3 billion for the Child Care Development Block Grant, $6.8 billion for Head Start, and a $69 million increase in funding for Foster Care and Adoption Assistance programs.

House and Senate conferees hope to complete action on a conference report by April 11.

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