Budget Negotiations Begin In Earnest

As Congress goes back to work after a two-week recess, negotiations to reconcile the House and Senate versions of the FY ’10 budget resolution will begin in earnest. The major differences between the two bills are the discretionary spending levels and whether to use the budget reconciliation process, which prevents Senate filibusters, for health care as included in the House budget resolution.

The House wants to spend more on the FY ‘10 appropriations bills and use the budget reconciliation process to move legislation in September overhauling the health care system and student loan programs. Senate Republicans are taking it as a given that the reconciliation instruction will be included for health care, despite public protestations from Senate Budget Chairman Kent Conrad (D-ND) and Senate Finance committee Chairman Max Baucus (D-MT). Both chairmen say they are leery of using reconciliation for far-reaching health care reform, preferring a more bipartisan measure.

Unless Congressional leadership and the White House exert pressure for conferees to reach agreement on these difficult issues, negotiations could stretch until the Memorial Day recess. The start of the annual appropriations process usually is contingent on agreement to a final budget resolution because it sets the cap for what can be spent on the 12 regular appropriations bills. But because the Obama administration is not expected to send up the rest of its budget until May 4, House appropriators are expected to begin marking up appropriations bills by mid to late May with final passage not likely until early summer. The Senate usually follows the House.

The House budget resolution includes language for a reserve fund for surface transportation reauthorization, meaning that if an additional funding source for the highway program is found, authorizers can spend it. The National Stone, Sand & Gravel Association and its coalition partners support the reserve fund language.