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Government Affairs Home > Washington Highlights > April 4, 2003

Budget Conferees Meet To Resolve House and Senate Differences

April 4, 2003- Congressman Jim Nussle (R-Iowa) and Senator Don Nickles (R-Okla.), chairmen of the House and Senate Budget Committees, respectively, April 2 formally opened the conference negotiations on the FY 2004 Budget. In addition to resolving the size of the tax cut, two other outstanding issues are the overall limit on discretionary spending, which affects spending on NIH, health professions, AHRQ, CDC, and veterans' health care, and the $93 billion in Medicaid cuts, as proposed by the House-passed budget bill.

Conferees had hoped to complete their conference by week's end; however, moderate Republican Senators' opposition to a tax cut larger than the Senate-passed level of $350 billion appears to be delaying the conference.

The AAMC remains concerned with the overall limit on discretionary spending and the potential Medicaid cuts. AAMC President Jordan Cohen, M.D., April 1 wrote a letter to the House and Senate conferees urging the inclusion in the final budget bill the Senate-passed level of $791 billion for discretionary spending in FY 2004. "Equally important, we also urge you to reject any Medicaid cuts and adopt the Senate's budget provisions as it related to Medicaid spending.

Also on April 1, the House passed 399-22 a non-binding motion to instruct conferees to require the managers to eliminate the House-passed bill's reconciliation instructions to a number of committees, including the Energy and Commerce and Ways and Means Committees. The motion also instructs the conferees to "adjust the revenue levels without resulting in any increase in the deficit or reduction in surplus for any fiscal year covered by the resolution.

On April 2, the National Governors Association Executive Committee Chair Paul Patton (D-Ky.) and Vice Chair Dick Kempthorne (R-Idaho) wrote to express support for the Senate position in regard to mandatory spending levels. The letter states "The House budget resolution would have a severe impact on states' ability to adequately fund many federally-funded, state-administered programs for the most vulnerable populations, such as Medicaid, TANF, food stamps, and SCHIP." Govs. Patton and Kempthorne also co-chair the Medicaid Reform Task Force (see related article).

Information:
Dave Moore, Senior Associate Vice President
AAMC Government Relations
dbmoore@aamc.org
(202) 828-0525
Lynne Davis Boyle, Assistant Vice President
AAMC Office of Governmental Relations
ldavisboyle@aamc.org
(202) 828-0526

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