Congress Passes Stark Continuing Resolution; Many Programs Will See Funding Cuts

With the end of the fiscal year looming before them, lawmakers were forced to adopt a stopgap funding measure last week to avoid a government shutdown. The measure -- called a continuing resolution (CR) -- will fund government operations for the next seven weeks. Because of the unusual structure of the CR, however, it will result in the dramatic under-funding of programs, setting spending levels at the lowest of three possible levels: the enacted totals for Fiscal Year 2005 (FY05), or either of the completed levels of the House or Senate FY06 spending bills. The unique funding structure of the CR will result in either freezes or cuts to most government accounts. In addition, it will prohibit agencies from initiating or resuming programs not funded in FY05 or awarding new grants during the seven week CR period, which ends Nov. 18. House Appropriations Chairman Jerry Lewis (R-CA) pushed through this bare-bones CR in response to calls from congressional conservatives to hold down spending. Lewis worked hard to make sure that the CR did not include numerous special add-ons requested by his colleagues. The CR passed the House, 348-65 on Sept. 29, and passed the Senate by unanimous consent on Sept. 30. The low funding rates in this CR, however, have a number of senators wondering aloud how programs and agencies under their committees' jurisdictions will be able to pay for the services they provide over the next two months. Senate Commerce-Justice-Science Appropriations Subcommittee Chairman Richard Shelby (R-AL), for example, has expressed concern over spending for the National Oceanic and Atmospheric Administration. The office is of particular important now as it provides both navigation and hazardous material cleanup services, and has jurisdiction over the fishing industry, which has been largely wiped out in the Gulf Coast. In addition, Sen. Tom Harkin (D-IA), Ranking Democrat on the Labor-Health and Human Services-Education Appropriations Subcommittee, argued the unprecedented CR would result in a 50 percent cut in community service grants, which would have a devastating effect on low-income families. Other programs Harkin pointed out as being negatively impacted include heating and housing assistance, Head Start, transportation for the elderly, and help for people applying for the earned income tax credit. In an attempt to avoid these cuts, Harkin offered an amendment to fund the Community Services Block Grant (CSBG) -- which provides low-income families with meals, transportation, job-training and heating assistance -- at FY05 levels , instead of allowing them to face a nearly 50 percent cut, as was passed by the House. (The Bush administration proposed to zero out CSBG.) Even under Harkin's amendment, funding CSBG at FY05 levels would not have allowed for increases for population growth or the effects of inflation. The amendment, however, was defeated by a 53-39 vote. While the CR prevented a government shut down, it clearly bears the handprint of the Republican philosophy of shrinking or eliminating important government investments at any opportunity and will interrupt normal operations for many programs and agencies. A number of House Democrats spoke out against the CR at a news conference on Sept. 29. Rep. Lynn Woolsey (D-CA) commented that the CR and more generally the budget, which cuts healthcare and education programs, shows where Congress' misguided priorities lie. Rep. Jim McDermott (D-WA) told reporters that Congress is "pursuing a path that is not in the best interests of this country." Congress Pushes Ahead With Appropriations Work The Senate will use the time allotted by the CR to continue working through appropriations bills. Late last week, the Senate continued its work on the defense spending bill, adding $5.2 billion in emergency funds to the measure, including $3.9 billion to combat the deadly avian flu virus and $1.3 billion to bolster National Guard equipment for domestic disaster response. These additions come on top of the $50 billion already added for direct war costs (which do not count against budget caps). The Bush administration has threatened to veto the defense appropriations bill if it falls billions short of the administration's budget request, which was $419.3 billion. A statement released by the Office of Management and Budget on Sept. 30 criticized the Senate Appropriations Committee for falling $7 billion short of the Pentagon's initial budget request. After wrapping up work on the defense appropriations bill this week, the Senate will turn its gaze either to the Labor-HHS-Education bill or the FY06 Transportation-Treasury bill, to which the District of Columbia budget would be attached. The prospect of completing either bill during the week is uncertain, however, due to a number of contentious provisions associated with each bill, as well as highly disputed funding levels. Finally, the House and Senate are also expected to clear the Homeland Security bill this week. If completed, the bill will be only the third appropriations bill for FY06 signed into law thus far.
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