FY2007 Budget Resolution Heads to Senate Floor

After two days of debate, the Senate Budget Committee approved, 11-10, the FY2007 budget resolution (as-yet-unnumbered) on March 9. As requested by the administration, the resolution would provide $873 billion for discretionary spending in FY2007.

The resolution proposes to extend through FY2011 several tax provisions in the 2003 tax law (P.L. 108-27) that are set to expire in 2007 and 2008. These include: the accelerated increase in the child tax credit, the expansion of the 10 percent income tax bracket, and the expansions of the standard deduction and 15 percent income tax bracket for married taxpayers filing jointly. In total, the resolution would provide $227 billion in tax cuts over five years.

In FY2007, the resolution would provide $33.1 billion for international affairs; $76.1 billion for education, training, employment and social services; and $54.5 billion for health care programs.

The resolution also would provide for a $90 billion reserve for emergency spending in FY2007.

During consideration of the resolution, the committee approved, by unanimous consent, an amendment offered by Ranking Member Kent Conrad (D-ND) that would provide $1.75 billion for a demonstration program to coordinate care for Medicare beneficiaries with chronic conditions.

The committee also approved, by unanimous consent, an amendment offered by Sen. Charles Grassley (R-IA) that would provide an additional $500 million for the Social Services Block Grant, bringing the total to $1.7 billion in FY2007.

The committee rejected the following amendments:

• an amendment by Sen. Conrad that would have reinstated the pay-as-you-go rule requiring that any spending increases be offset with spending cuts, 10-11;
• an amendment by Sen. Debbie Stabenow (D-MI) that would have provided all Medicare beneficiaries with a Medicare-administered prescription drug option, 9-12;
• an amendment by Sen. Bob Menendez (D-NJ) that would have provided an additional $2.8 billion for higher education and vocational education programs. The amendment would have been offset by closing tax loopholes, 10-11;
• an amendment by Sen. Ron Wyden (D-OR) that would have authorized the Department of Health and Human Services to use the purchasing power of Medicare beneficiaries to negotiate prices for prescription drugs, by voice vote;
• an amendment by Sen. Patty Murray (D-WA) that would have waived or eliminated co-payments under the Medicare prescription drug program for low-income beneficiaries, 10-11; and
• an amendment by Sen. Bill Nelson (D-FL) that would have provided an additional $975 million in FY2007 to assist the widows and orphans of soldiers. The amendment would have been offset by closing tax loopholes, 10-11.