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Government Affairs Home > Washington Highlights > May 23, 2003

Appropriations Begin to Lag

May 23, 2003 - Despite pledges from GOP leaders that this year's appropriations cycle would not mirror last year's marathon effort, appropriators reportedly are having difficulty getting the process started. The leadership has been unable to reach agreement on the subcommittee or 302(b) allocations, which determine how much money each of the 13 individual appropriations subcommittees will have to spend in the coming year.

Part of the difficulty results from the overall discretionary spending limit agreed to in the FY 2004 budget resolution that Congress approved in mid-April. The congressional budget blueprint calls for $784.7 billion in discretionary spending - spending determined by the appropriations committees - in FY 2004. This is roughly $2 billion less than President Bush's FY 2004 budget request, which also included user fees that Congress is unlikely to approve. In addition, the budget resolution assumes about $7.6 billion in unspecified cuts in the FY 2004 spending bills.

The problem may be particularly acute for the Labor-HHS-Education subcommittee. Various sources suggest the FY 2004 allocation for the subcommittee will be approximately $138 billion. This appears to be a $6 billion increase over the current year's level. However, the FY 2003 Labor-HHS appropriation assumes about $2.2 billion in advance funding that has to be credited against the FY 2004 limit. In addition, the budget resolution precludes the subcommittee from using advance funding in FY 2004, which means the appropriators must come up with funds for these programs in FY 2004. As a result, the actual increase for the coming year may be closer to $1.5 billion.

Information:
Dave Moore, Senior Associate Vice President
AAMC Government Relations
dbmoore@aamc.org
(202) 828-0525

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