June 19, 2007 Portman Steps Down as OMB Director BUDGET PROCESS STEP-BY-STEP™ June 15:
June 19:
June 19-21:
June 21:
June 22:
July 2-6:
August 6:
Sept. 10:
October 1:
PORTMAN STEPS DOWN AS OMB DIRECTOR President Bush announced today the resignation of Rob Portman as Director of the Office of Management and Budget. Jim Nussle, former Republican Chairman of the House Budget Committee, has been nominated to fill the position. Nussle left Congress in 2006 to pursue an unsuccessful run for governor of Iowa. Nussle's appointment to the cabinet-level OMB position requires Senate confirmation. If confirmed, Nussle will step into the middle of a heated appropriations season, with President Bush threatening to veto appropriations legislation exceeding his request. APPROPRIATIONS BACK ON TRACK FOLLOWING EARMARK STANDOFF House leaders had hoped to pass 4 appropriations bills last week, but were delayed due to disagreements with Republican leaders over when and how to add earmarks to FY'08 appropriations bills. After several days of negotiations, House leaders announced an agreement Thursday evening:
In addition, yesterday the House adopted a new rule (H.Res. 491) by unanimous consent allowing members to raise a point of order against appropriations conference reports if new earmarks are added during conference (often called "air- dropping" earmarks).
HOUSE PASSES HOMELAND SECURITY AND MIL CON-VA Homeland Security (passed House 6/15)
Military Construction-VA (passed House 6/15)
VETO THREAT REMAINS FOR '08 APPROPRIATIONS The Administration has threatened to veto appropriations bills that exceed the President's request, and on June 13th the Republican Study Committee announced they had lined up 147 votes to sustain the President's vetoes (146 being necessary to block the 2/3 needed to override a veto). The Administration has already issued veto threats for the Homeland Security and Energy-Water bills, which exceed his request by $2.1 and $1.1 billion, respectively. Although the Mil Con-VA bill also exceeds the President's request by $4.0 billion, the Administration has not publicly threatened a veto of that bill, instead stating that Congress needs to "offset this increase with spending reductions in other bills." HOUSE APPROPRTIATIONS REPORTS 3 MORE BILLS State-Foreign Operations - Passed House Appropriations on June 12 $34.2 billion -- $700 million below President's request - 9.5% increase over FY 2007. One of the few appropriations bills coming in under the President's request, this bill reflects a shift in foreign policy priorities. Several programs received significant boosts: HIV/AIDS prevention and treatment programs at the State Department and the U.S. Agency for International Development would receive $5.1 billion, an increase of $1.3 billion over FY 2007 and $585.7 million more than the President's request. $2 billion would be directed to child survival and health programs (a $237 million increase over FY 2007 funding and $391 million over the President's request). Sudan, currently embroiled in a humanitarian crisis, would receive increased foreign aid with humanitarian, peacekeeping, and development programs receiving $950 million, $104 million above the President's request. Appropriations for U.N. peacekeeping dues would total $1.3 billion, an increase of $167 million over FY 2007 and $195 million over the President's request. In addition to the U.N funds, $293 million would be spent on targeted peacekeeping missions of high value to the U.S. (an increase of $69.9 million over FY 2007 and $72 million over the President's request). Democrats also shifted funds away from several of the President's high-priority programs including: The Millennium Challenge Corporation (a fund that provides bilateral development assistance on a competitive basis) would receive $1.8 billion, $50 million over FY 2007, but $1.2 billion under the President's request (as a result of $2 billion in unobligated balances, i.e. funds appropriated but not yet used). The President's request of $456 million for Iraq aid would receive no funding in light of the $2.9 billion appropriated in the FY 2007 supplemental for the same purpose. The State Department's Drug Interdiction program in Colombia would receive $530.6 million, a cut of $86.5 million from FY 2007 and $59 million below the President's request. Democrats cited a desire to increase funding for similar programs in other Latin American countries as the reason behind the cuts. Financial Services-General Government - Passed House Appropriations on June 11 $21.4 billion -- $243 million below President's request - 9.8% increase over FY 2007. The Financial Services-General Government bill includes IRS, Treasury Department, District of Columbia, Judiciary, Executive Office of the President, as well as independent government agencies. Key Financial Services Priorities: An important focus of this bill is improving taxpayer services which would receive $3.6 billion, an increase of $74.6 million over FY 2007 and $51.9 million over the President's request. Key programs include pre-filing services available at walk-in sites around the nation ($450.4 million) and the National Taxpayer Advocate ($179.6 million) which helps solve taxpayer problems. Another important focus for Democrats is closing the tax gap as a deficit reduction measure (the estimated $290 billion in taxes owed but not collected). The bill would appropriate $7.2 billion for enforcement activities ($406 million above FY 2007 and matching the President's request), $282 million for business systems modernization ($69.4 million above FY 2007 and matching the President's request), and $116.7 million for compliance research ($12.5 million above FY 2007 and matching the President's request). On the national security front, the Office of Terrorism and Financial Intelligence would receive $56.5 million (an increase of $13 million over FY 2007 and $250,000 above the President's request) and the Financial Crimes Enforcement Network would receive $83.3 million (an increase of $10.1 million over FY 2007 and $2.5 million under the President's request). Other Important Programs: Federal courts would receive $5.9 billion, an increase of $254 million over FY 2007 and $115 million below the President's request. District of Columbia schools would receive $76 million ($3.4 million above FY 2007 and matching the President's request) while the DC criminal justice system would receive $531.9 million ($60.9 million above FY 2007 and $51.5 million above the President's request). Democrats have prioritized regulatory oversight and consumer protection, and related independent federal agencies would receive increases: The Consumer Products Safety Commission would receive $66.8 million ($4.1 million above FY 2007 and $3.6 million above the President's request). The Federal Trade Commission would receive $247 million ($36.2 million above FY 2007 and $7.25 million above the President's request). Key priorities for FY 2008 include identity theft and investigating the sub-prime lending market. The Securities and Exchange Commission would receive $908 million ($15.9 million above FY 2007 and $3.1 million above the President's request). The Federal Communications Commission would receive $313 million ($21.7 million above FY 2007 and matching the President's request), with increases directed towards helping consumers with the transition to digital TV. In addition, the Small Business Administration would receive $582 million for its programs ($117 million above the President's request) in order to expand SBA loan programs. The bill also includes a 3.5% cost of living adjustment for Federal workers. Legislative Branch - June 12 $3.104 billion -- 4% increase over FY 2007. This bill, which funds the activities of Congress, currently includes funding for the House of Representatives. The House would receive $1.2 billion for its operations, or $61 million above FY 2007. (Funding for the Senate is added when they take up the bill and would bring its total up to $4 billion.) The biggest issue addressed by the bill is security, with $286 million directed towards the Capitol police (an increase of $30.4 million over FY 2007). In addition the bill would provide $30 million in funding for costs associated with the 2008 presidential elections. SENATE APPROPRTIATIONS REPORTS 2 BILLS Homeland Security - June 14 $37.6 billion (discretionary + mandatory) -- $2.2 billion over President's request - 8% increase over FY 2007. Key Provisions: Would provide $570 million in funding for 3,000 additional border patrol agents; $1 billion for border fencing, infrastructure, and technology; and $146 million for additional detention beds. The bill would provide $400 million in funding for port security grants and $529.4 million for explosives detection equipment in airports. The Senate bill would provide $1.83 billion more than the President's request ($644 million over FY 2007 excluding the supplemental) for state, local, and first responder grant programs. The bill includes an amendment delaying passport requirements for travel to Canada, Mexico, the Caribbean, and Bermuda (to ease back- logs). The bill would also allow states to implement chemical security laws that are stricter than federal standards-a highly controversial provision. Mil Con-VA - June 14 $64.7 billion (discretionary + mandatory) -- $4 billion over President's request - 22% increase over FY 2007 (including supplemental BRAC funding). The bill would provide $37.2 billion for the Veterans Health Administration, an increase of $4.5 billion over FY 2007. Within that total $29 billion would be directed to medical services, $3.6 billion to medical administration, and $4.1 billion to medical facilities. $21.56 billion would be provided for military construction, an increase of $8.8 billion over FY 2007. Included is $2.74 billion to increase the size of the Army and Marine Corps, $8.17 billion for Base Realignment and Closure costs (making up the majority of the increase), and $929.8 million in infrastructure funds for the National Guard and Reserves. NEW BUDGET DOCUMENTS GAO: Presidential Signing Statements Accompanying the Fiscal Year 2006 Appropriations Acts. Senate Appropriations Committee Release. CBO: Federal Support for Research and Development CBO: Will the U.S. Current Account Have a Hard or Soft Landing? |
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| Charles S. Konigsberg, President | (202) 587-2984 (ph) | (202) 587-2983 (fax) | ckonigsberg@federalbudgetgroup.com | |