In a party line vote of 23-18, the House Budget Committee on March 15 approved its FY2001 budget resolution. Although the budget resolution is nonbinding, 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 four times since 1974. Earlier this year, the Republican leadership told Budget Committee leaders to complete work on the budget resolution by the end of March in an effort to begin work on the appropriations bills early. However, wrangling between House and Senate Budget Committee members over spending levels led to a delay in the budget’s consideration, making it unlikely that final work will be completed by the end of the month.
Under the plan approved by the House Budget Committee, discretionary spending for FY2001 would be set at $596.5 billion, an increase of nearly $10 million over FY2000 levels. The plan would reserve the entire Social Security surplus—projected to be $1 trillion over the next five years—to pay down the debt. Additionally, the budget plan would set aside $40 billion of the non-Social Security surplus to reform and strengthen Medicare. This would include funding for the enactment of a Medicare prescription drug benefit.
The House budget resolution also would set aside $10 billion of the non-Social Security surplus for tax cuts in FY2001. The resolution would provide for $150 billion in tax cuts over the next five years, including repeal of the marriage tax penalty, a phaseout of the estate tax, education assistance, and tax cuts associated with the patients’ bill of rights currently in conference. In addition to the $150 billion tax cut, the plan would establish a reserve fund of $40 billion over five years to be used for additional tax relief or debt reduction.
During the mark-up, Democrats offered over 30 amendments aimed at increasing spending and reducing the tax cut. All of the amendments were defeated by party line votes. One amendment would have reduced the tax cut by $15.2 billion and shifted the money to allow schools to hire an additional 49,000 teachers and renovate 14,000 schools. The amendment, offered by Rep. Rush Holt (D-NJ), also would have increased the maximum Pell Grant by $200 to $3,500, but it was defeated, 18-23. Another amendment would have increased funding for the National Institutes of Health by $33 billion over five years.
The committee approved an amendment, offered by Rep. James McDermott (D-WA), that would set aside $4.4 billion in tax cuts designed to make health insurance more affordable. The amendment was adopted by voice vote.
The House is expected to consider the FY2001 budget resolution next week. The Senate Budget Committee is set to take up its budget resolution next week.
