CQ BUDGET TRACKER NEWS
May 13, 2007 – 9:16 p.m.
Democrats on Cusp of Budget

Congressional Democrats this week expect to adopt their first budget since 1994 — the last time they controlled both chambers.

A final deal on the budget is expected early in the week with the two chambers moving to adopt it mid-week. House-Senate conferees met last Thursday in a public meeting and Democrats were expected to continue negotiating among themselves over the weekend. It’s uncertain whether they will convene another public meeting to approve a final deal. Democrats may just circulate a signature approval sheet and file a final agreement without another public meeting — despite the fact they used to complain when Republicans did that.

Democrats will promote a budget deal as proof of their ability to govern. They won their congressional majorities last November in part by painting the then-GOP majority as being ineffective, highlighting the fact Republicans had been unable to agree on a budget and move appropriations bills — the one true responsibility of Congress each year. Congress in recent years also was unable to agree on a budget in 2004 (with a GOP Congress) and in 2002 (when control of Congress was split, with Democrats in charge in the Senate).

Tax language and the question of including reconciliation instructions top the major issues negotiators must resolve. House Democrats seem willing to accept Senate “Baucus” language that would explicitly assume the extension of Bush’s middle-class tax cuts without any offsets. But they are insisting upon “trigger” language that would allow non-offset tax cut extensions to occur only if a budget surplus is projected within a year or two. House Budget Chairman Spratt also suggested the “cost” of extensions should use up no more than 80 percent of projected surpluses. On reconciliation, Senate Budget Chairman Conrad opposes House language to provide reconciliation protection (against Senate filibuster) to student loan legislation. But it is a high priority for House leaders and education lawmakers in both chambers.

Negotiators also must decide how many reserve funds to include (the House has 12, the Senate 38), most of which would allow spending increases for specific activities as long as the cost is offset.

Source: CQ Budget Tracker News
Reporting the deals, dollars and decisions of the federal budget process.
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