The conference report to the FY 2004 Omnibus Appropriations bill is scheduled to be considered on the House floor today, Monday December 8.  After a vote, the House will adjourn for the remainder of the year.  The Senate is then expected to address the measure on Tuesday, December 9 but it remains unclear whether Senate Majority Leader Bill Frist (R-Tenn) will be able to pass the bill by unanimous consent since many Democratic members are calling for the bill to be debated will roll call votes.  Another option would be the filing of a motion to invoke cloture for a vote later in the week.  There is also a possibility that the Senate could postpone consideration of the measure until it reconvenes in January.  The current continuing resolution covers government spending until the end of January. 

The conference report to the omnibus bill combines the seven remaining appropriation bills -- Agriculture, Commerce/Justice/State, District of Columbia, Foreign Operations, Labor/Health and Human Services/Education, Transportation/Treasury and Veteran's Affairs/Housing and Urban Development for a total of $328 billion in discretionary spending and $820 billion overall.  Similar to last year, the omnibus package includes an across-the-board cut, this time of 0.59%.  The cut would apply to all FY 2004 discretionary appropriations, with the exception of those in the Defense, Military Construction and supplemental appropriation bills.  This means that the Energy/Water, Homeland Security and Interior bills, which already have been enacted and include major grants to states, will be subject to the cut if the conference report is enacted.  The cut also applies to FY 2004 advanced funding contained in prior year appropriations. 

Commerce/Justice/State ($37.5 billion):  The CJS appropriation bill was never able to garner Senate approval.  The conference agreement includes a 24% cut in major justice programs. Grants to local law enforcement suffer the biggest cuts, as the Local Law Enforcement Block Grant (LLEBG) and Community Oriented Policing Services (COPS) programs lose a combined $400 million.  The Juveniles Accountability Incentive Block Grant (JAIBG) also is reduced by more than two-thirds.  Funding for SCAPP is restored somewhat, but is just more than half of its FY 2002 level of $562 million. 

Labor/HHS/Education ($138.9 billion): The FY 2004 omnibus bill includes a 6% increase for the Department of Education, a 1% increase for the Department of Health and Human Services and level-funding for the Department of Labor.  Most labor programs are approximately level-funded.  However, labor programs received significant reductions last year.  The across-the-board cut included in the conference agreement would apply to all FY 2004 discretionary funds, including FY 2004 advance funding contained in the FY 2003 appropriations bill.  As a result, the allotments for last year would be reduced for the two programs that contain ad advance appropriation -- adult activities and dislocated workers.  The flip side is that this year's reduction would be less because the cut applies to only FY 2004 funds, not FY 2005 advance funds. 

The omnibus bill includes language allowing states to transfer 10% from their Temporary Assistance to Needy Families Block Grant (TANF) to the Social Services Block Grant (SSBG) in FY 2004.  The Transportation Equity Act (TEA-21) reduced the amount states may transfer from TANF to SSBG to 4.25%.  However, the annual appropriations process has restored the 10% transferability each year.  The agreement funds the Low-Income Home Energy Assistance Program at $1.89 billion, of which $100 million is for emergency funds.  It also provides $100 million for Access to Recovery, a new competitive grant program included in the President's FY 2004 budget for substance abuse treatment vouchers.

Education:  Overall, the bill provides a $2.9 billion increase for the Department of Education, bringing it to a total of $56 billion.  Special education grants are funded at $10.1 billion, $1.2 billion over last year.  Title I is funded at $12.4 billion, the same as the budget request and $727 million above last year.  Reading First is funded at $1.03 billion.  Improving Teacher Quality provides $2.94 billion, $96 million above the budget request, for professional development programs.  The bill also provides $45.6 million for Transition to Teaching to assist eligible members of the armed forces and mid career professionals to obtain certification as teachers.  Math and Science Partnerships are funded at $150 million, an increase of $50 million over last year.  The bill also includes $392 million for state assessements which is $7 million over FY 2003, to cover the cost of developing annual state assessments of students' reading and math skills.  States will be responsibile for selecting and desinging their own assessments.  Maximum pell grants awards are maintained at $4,050.  Impact Aid is funded at $1.236 billion which is $48.6 million over last year's level and $221 million above budget request. After school centers are funded at $1 billion, $405 million over budget request and TRIO and Gear Up programs to help minority and disadvantaged students prepare for and succeed in college are increased by $35 million and $15 million over the budget request, bringing total funding to $837.5 million and $300 million respectively.  .

Transportation/Treasury ($27.3 billion):  Legislation reauthorizing the federal-aid highway program expired after FY 2003; the program has been temporarily extended through February 2004.  In addition, the failure to enact energy legislation eliminated an expected restructuring of ethanol taxes that would have provided new funding for the Highway Trust Fund.  As a result, the omnibus appropriations bill reflects interim decisions pending future authorizing and tax legislation.

The FY 2004 omnibus bill includes a $2.1 billion (6%) increase for the highway-obligation ceiling.  While states will receive full-year ceilings, their ability to obligate funds under the current highway program will cease after the temporary extension expires.  Discretionary mass transit grants increase 3% in the bill and other programs are approximately level-funded.

VA/HUD/EPA ($90.8 billion)  The omnibus bill includes a $1.4 billion increase for Section 8 housing vouchers, reflecting major increases in housing and utility costs.  Nonetheless, the program may experience a shortfall in FY 2004.  Legislative language permits - but does not require- HUD to provide necessary funds from unused prior-year balances.  Other programs are level-funded.  Legislative language permanently amends the program providing public housing operating subsidies by prohibiting HUD from using currently appropriated funds to reimburse housing authorities for prior-year balances.

Agriculture ($16.8 billion)

Foreign Operations ($17.1 billion)

No Child Left Behind Update 

On Tuesday, December 9, the U.S Department of Education will publish a final regulation in the Federal Register affecting students deemed to have the most significant cognitive disabilities by their states.  Under the rule, these students would be tested against standards appropriate for their intellectual development and , for accountability purposes, their scores would be counted as part of their school's performance.  The intent is two-fold:  to protect children with disabilities from being excluded from accountability systems that provide valuable information to parents and educators and to ensure that schools receive credit for the progress of all children.  The number of "proficient" scores counted for adequate yearly progress may not exceed one percent of all students in the grades tested (about nine percent of students with disabilities), although states may appeal for a higher limit.  Without this flexibility, those scores would have to be measured against grade-level standards and considered "not proficient."  For more information on the Dec. 9the reg, please visit http:///www.ed.gov/news/fedregister/

Governor Guinn Announces Availability of Funding for Net-Metered Renewable Energy Systems 

On Friday, December 5, Governor Kenny Guinn announced approximately $245,000 is now available to help acquire, install or expand renewable energy systems installed by consumers where those systems would be or actually are connected to their electric utility through a net-metering arrangement.  Net-metering allows consumers essentially to "spin their electric meter backward" by selling energy generated by such systems to their local utility at the same retail rate at which energy is purchased from the utility.  Net-metering customers may sell energy to the utility only up to the point that total energy kilowatt hours) sold equals the total energy purchased from the utility.  The funding was made available through the passage of Assembly Bill 429 during the 2003 session of the Nevada Legislature.  The Nevada State Office of Energy (NSOE), located within the Governor's Office, is responsibility for distribution of the grant funding  and has issued a request for proposals (RFP) to solicit competitive projects that meet the requirements of AB 429.  Eligible applicants include educational institutions, state and local government agencies, business and industry, non-profit organizations, and individuals.  Proposals for distribution of the grant funds through third-party grantees, in support of multiple projects, are also requested through the RFP.

Persons interested in learning more are directed to download the RFP from NSOE's web page at www.energy.state.nv.us (Funding Opportunities link at the bottom of page).  Hard copy of the RFP can also be requested by email or phone request to Pete Konesky at pkonesky@dbi.state.nv.us or 775-684-8735.  Responses are due on December 22, 2003 at the time and location specified in the RFP. 

2004 Congressional Schedule 

The second session of the 108th Congress will begin on Tuesday, January 20, 2004 with an expected adjournment of Friday, October 1, 2004.  The President's fiscal year 2005 budget is expected to be released on Monday, February 2, 2004.  Some key issues for states that Congress is expected to address next year include the reauthorization of surface transportation, welfare reform, child nutrition programs and several education measures.  In addition, Senate Majority Leader, Bill Frist has stated that the energy bill likely will be on the agenda in the Senate, along with class action and asbestos liability reform.  The House GOP agenda tentatively includes tax credit extensions, corporate tax legislation, and pension reform.  In May, the debt ceiling will need to be raised.  Other 2004 dates to note include -

·         The President's State of the Union Address is tentatively scheduled for Wednesday, January 21.

·         The Democratic National Convention will be held in Boston, Massachusetts, July 26-29

·         The Republican National Convention will be held in New York, August 30-September 2.

New Website  

The State of Nevada Washington Office is pleased to announce the first phase of our newly renovated website today, Monday, December 8.   In the coming weeks, we will be expanding the information available on the site to include legislative summaries, issue briefs, appropriations analyses and a library of Governor Guinn's letters to the Nevada delegation.  We hope you will provide our office with feedback about the growing site, and that you find the information helpful.  Please visit the first phase of the site renovation at www.sso.org/nevada.  Our weekly grant notices and the 2004 Congressional Calendar are also available at the above web address.