Human Needs Report Article

The Human Needs Report is the Coalition on Human Needs' newsletter on national policy issues affecting low-income and vulnerable populations. It is published every other week while Congress is in session.

Article from the May 23, 2008 edition of the CHN Human Needs Report:

House-Senate Negotiators Agree on a Budget Deal; 
Last Minute Snag Delays Enactment

House and Senate budget negotiators worked out their differences and released a Budget Resolution for FY 2009 on May 20.  The budget increases annual appropriations very modestly above the amount needed just to keep pace with inflation.  While much of the Budget Resolution is essentially a non-binding outline of Congressional intentions, it does set a real total for appropriations.  Advocates had sought a larger total, to do more to make up for years of cuts in housing, public health, job training, child care, and many other services for families and communities.  They were pleased that some expansion in services will be possible in FY 2009, and that the budget deal rejects the President’s proposed cuts.  The Resolution agreement provides more than $20 billion over the President’s proposal for domestic annual spending.

Congressional leaders had hoped to get approval in the full House and Senate before leaving for their week-long Memorial Day recess.  But an unusual mistake that threw the override of the President’s farm bill veto into question forced a delay.  (See the farm bill article elsewhere in this issue.)

House and Senate Budget Committee members build their total for annual appropriations based on assumptions about the level of services they want to provide.   When the full Congress approves the Budget Resolution, it is subscribing to a set of priorities.  Advocates were pleased by many of the choices set forth in the budget agreement.  For example, the budget deal specifies an intent to increase funding for home energy assistance, Head Start, low-income rental assistance, and the Women, Infants and Children nutrition program (WIC). Although the Appropriations Committees will make specific recommendations about program funding later, advocates will use the priorities outlined in the Budget Resolution to remind Congress that it has already expressed a commitment to provide increased funding.

In addition to setting a binding appropriations total, the Budget Resolution signals priorities for programs like the State Children’s Health Insurance Program (SCHIP), child care, and child support enforcement – so-called “mandatory” programs whose funding is ongoing (without needing annual appropriations).  The Budget Resolution awaiting final approval includes language calling for increases in these areas.  It also calls for improvements in Unemployment Insurance so that more low-income and recent workers can qualify when they are out of work.  In addition, the budget language calls for extending the Child Tax Credit to some families now too poor to qualify. 

One issue in the lengthy negotiations over the Budget Resolution was how strict to make the requirement that new or extended tax cuts be paid for by finding offsetting revenue increases or program cuts.  Moderate Democrats in the House (known as “Blue Dogs”) were holding out for rules that would make it very difficult for tax cuts to pass without being paid for.  Because of strong opposition in the Senate to the Blue Dogs’ original proposal, the compromise involves assurances from the Senate Budget Committee Chair (Conrad, D-ND) that he will raise a point of order against new tax cuts that are not accompanied by a funding source.  Overturning that point of order would require 60 votes. 

As an outline guiding Congress through the year’s budget and appropriations decisions, the Budget Resolution is not a statute and does not need the President’s signature.  In both House and Senate, the rules require only a simple majority vote to pass it.  There seems to be a very good chance that Congress will approve the Resolution upon its return in June.  Advocates will then have to work hard to see that the low-income priorities contained in the Resolution become reality in Congress’ final decisions about spending.

To see the Coalition on Human Needs’ letter supporting the priorities in the Budget Resolution agreement go to: http://www.chn.org/pdf/2008/budgetlet2009.pdf.