March 21, 2005

 

The House and Senate will adjourn for a two week spring recess and will reconvene on Monday, April 4.
 

 
House and Senate Pass FY 2006 Budget Resolution
 
On Thursday, March 17, the House and Senate both passed different versions of FY 2006 budget resolution which could potentially set up a difficult conference, specifically over cuts to entitlement programs. A budget resolution is legislation in the form of a concurrent resolution which sets broad limits for the congressional budget; but it is not required to be signed into law.  The budget resolution establishes various budget totals, divides spending totals in functional categories and could include reconciliation instructions to designated House or Senate committees.
 
The Senate adopted their version of the the resolution (S. Con. Res. 18) by a vote of 51-49 with Republican Senators Lincoln Chafee (RI), Olympia Snowe (ME), George Voinovich (OH), and Mike DeWine (OH) joining 44 Democrats and Senator Jim Jeffords (I-VT) in agreeing to it.  Before final adoption, the Senate voted on an amendment authored by Senator Smith (R-OR), striking reconciliation language from the budget resolution instructing the Senate Finance Committee to cut $15 billion from programs under its jurisdiction -- $14 billion of which would likely have come from the Medicaid program.  The amendment would also designate $1.5 million to a reserve fund to start a Medicaid Commission.  Senator Smith stated that he does not expect his amendment to remove Medicaid cuts from the budget conference committee discussions but rather hopes that Senate approval of the amendment will prompt House and Senate budget conferees to move toward a lower reconciliation number.  By way of comparison, the House resolution requires $69 billion in entitlement cuts; the Senate only requires $17 billion.
 
The Senate budget also opens the door for oil drilling in Alaska's Arctic National Wildlife Refuge, a fight that has been waged for two decades.  The House version does not make mention of the refuge.  Senators voted yea on an amendment by Susan Collins (R-ME) and Joe Lieberman (D-CT) to restore $855 million in proposed budget cuts for first responder and other security programs within the Department of Homeland Security which would include $565 million for the state homeland security grant program, $150 million for port security grants and $140 million for the hiring of 1,000 additional border patrol agents.  Another amendment, offered by Senator John Ensign (R-NV), would provide an additional $410 million for health care for America's veterans.  The Senate also passed an amendment offered by Senator Kennedy (D-Mass) that would raise the discretionary spending limit by $5.4 billion for education programs.  Other agreed to amendments include language to fully fund the Community Development Block grant program (CDBG) and double the size of the reconciliation tax package to $129 billion from $70 billion. 
 
Tax changes must first be addressed through the Senate Finance Committee, another amendment would protect the tax cut total from filibuster on the floor.  The action is important only in that it technically could allow for additional tax cuts, such as individual health care tax credits, in a tax reconciliation bill.
 
For a list of amendments (agreed to and not agreed to) please visit:  http://thomas.loc.gov/cgi-bin/bdquery/L?d109:./temp/~bda23SU:1[1-123](Amendments_For_S.CON.RES.18)&./temp/~bddEOM
 
The House adopted its budget resolution (H. Con. Res. 95) by a vote of 218-214.  The measure calls for $69 million in entitlement cuts and contains instructions to the Energy and Commerce Committee to cut $20 billion over five years from programs under its jurisdiction.  The House version would only include $45 billion in the tax reconciliation bill.
 

  Senate Environment & Public Works Committee Passes Transportation Reauthorization

Last week,  the Senate Environment and Public Works Committee passed a bill authorizing approximately $192 billion in spending obligations for the Federal Highway Administration from Fiscal Years 2005 through 2009. The legislation is essentially the same as Titles I and II of the bill passed by the Senate last year, with authorizations reduced across-the-board by approximately 10 percent. Additional changes were made to the equity bonus program also to hold down the cost of the bill. Although many amendments were filed, only a few were offered at mark-up, and 13 were rolled into a package and passed en bloc at the request of Committee Chairman James Inhofe (R-OK).

The Senate Banking, Housing, and Urban Affairs Committee also approved a bill that would reauthorize the transit portion of the not yet numbered surface transportation reauthorization bill.  The committee provided $51.6 billion for transit for FY 2005 through FY 2009.  Last year's Senate bill provided 18.8 percent of total funding to transit, the highest percentage ever achieved for transit.  Several committee members stressed their commitment to work to address the reduction when the bill moves to the floor. The

The overall Senate funding level matches the House number of $284 billion, although amendments that would increase that level are expected on the floor.

After the Senate returns from spring recess, the Senate Commerce, Science, and Transportation Committee and the Finance Committee are expected to mark-up the highway safety and tax titles.

 


 

CMS Releases Guidance on Transition Plans for Medicare Part D Implementation

Last week, CMS released two guidance documents for Medicare plans that will provide prescription drug coverage starting in January.  The first document outlines the medication transition details that plans will need to submit to CMS as part of their formulary system.  The transition plans are meant to accommodate beneficiaries who are stabilized on existing drug regimes when they join a Part D plan.  The guidance would also address the particular needs of enrollees who reside in long term care facilities.

The second document addresses pharmacy participation standards and access standards for beneficiaries residing in long term care facilities.  These minimum performance and service standards - which reflect current industry practice- include requiring a long-term care pharmacy to have a comprehensive inventory of drugs commonly used in a long term care setting the ability to package medications in the unit of use packaging typically used in nursing homes, and be able to provide a qualified pharmacist to be on call 24 hours a day, seven days a week, including holidays.  For more information on the guidance documents, please visit:  http://www.cms.hhs.gov/pdps/

 


 

House Subcommittee Approves Welfare Reform Reauthorization

Last Tuesday, the House Ways and Means Subcommittee on Human Resources voted to reauthorize the 1996 welfare reform law.  H.R. 240 would require adult recipients to work 40 hours per week, at least 24 hours of which must be devoted to direct work activities (employment, on the job training, community service).  The remaining 16 hours per week can be devoted to education or other training activities.  The measure also provides an increase of $1 billion in mandatory childcare subsidies to states over five years. The bill would allow recipients to count up to three months of voc ed and training as a direct work activity. 

The House and Senate recently passed the ninth extension of the current welfare law which will expire on June 30, 2005.

 


 

Senate Judiciary Committee Approves SCAAP Reauthorization Bill

The Senate Judiciary Committee approved (by voice vote) a bill that would reauthorize the State Criminal Alien Assistance Program (SCAAP) for six years.  S. 188 helps state and local governments with the prison and jail costs of illegal immigrants who have committed crimes not related to their immigration status.  The bill would authorize $750 million FY 2006, $850 million for FY 2007, and $950 per year for FY 2008 through FY 2011.  The program received $297 million in FY 2005.  No funding was requested for SCAAP in the President's budget.  In FY 2004, Nevada received close to $3.5 million.

In addition, the Senate adopted (by voice vote) a Sense of the Senate amendment to the FY 2006 budget resolution that $750 million would be allowed in appropriations for SCAAP.

 


 

White House Submits BRAC Commission Nominees

The White House recently submitted their recommendations to the Senate for the 2005 Base Realignment and Closure (BRAC) Commission. The President recommended Anthony Principi, former U.S. Secretary of Veterans Affairs, to chair the commission, which will review bases recommended for closure by the Pentagon and submit a list to the President in September. A decision must then be made by the President about whether to accept the commission's recommendations, or reject them and seek a new list. If the President accepts the commission's recommendations, they become final in 45 legislative days unless Congress passes a joint resolution of disapproval.

In addition to Secretary Principi, the other nominees recommended by the White House include: James H. Bilbray, former House member from Nevada; Philip Coyle of California, a former Assistant Secretary of Defense; Retired Admiral Harold W. Gehman of Virginia, a former NATO Supreme Allied Commander; James V. Hansen of Utah, a former House member; Retired Army General James T. Hill of Florida; Retired Army Lt. General Claude M. Kicklighter, of Georgia; Samuel K. Skinner of Illinois, a former U.S. Secretary of Transportation; and Retired Air Force Brigadier General Sue Ellen Turner of Texas. Nominees must be confirmed by the Senate.

 


 

For a list of this week's grant notifications, please visit our website at www.nevadadc.org