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Appropriations Process Bogs Down

September 19, 2003- Any hopes for a relatively quick House-Senate conference agreement on the FY 2004 Labor-HHS-Education appropriations bill (H.R. 2660) are rapidly disappearing. The bill is traditionally one of the most complex of the 13 annual spending bills, and this year is no exception as disputes have arisen over funding for special education and a provision that would block the Bush Administration's efforts to change the rules on overtime pay.

House Ways and Means Chairman Bill Thomas (R-Calif.) has indicated that he will file a "blue slip" resolution objecting to the bill as passed by the Senate Sept. 10. Mr. Thomas objects to an amendment on the Senate bill that would add $1.2 billion for special education funding by extending Customs Service fees that are scheduled to expire Sept. 30. Mr. Thomas is basing his objection to the use of the fees on the House's constitutional prerogative to originate revenue bills. Prior to the amendment, sponsored by Senator Chris Dodd (D-Conn.), the Senate Appropriations Committee had proposed increasing special education funding by $1 billion. Sen. Dodd and his supporters, who include Senate HELP Chairman Judd Gregg (R-N.H.), fear that without the amendment, the Senate bill will not meet the $2.2 billion in additional funding for special education that was called for in the FY 2004 budget resolution.

At the same time, the Bush Administration has objected to a provision in the Senate bill that would block a White House proposal to change overtime pay rules. The Senate passed, 54 to 45, an amendment by Senator Tom Harkin (D-Iowa) to prevent Department of Labor funds from being used to implement any rule changing the eligibility for overtime pay. The Labor Department issued a preliminary rule in March that would make an estimated 1.3 million low-income workers eligible for overtime pay for the first time. At the same time, the department proposed to reclassify an estimated 644,000 workers as executives, administrators, or professionals who would not qualify for overtime pay. Democrats contend that as many as 8 million workers would lose eligibility for overtime pay. House Democrats plan to offer a motion to instruct House conferees to adopt the Senate provision. An amendment similar to Sen. Harkin's offered by Rep. Dave Obey (D-Wis.), was defeated 210 to 213 by the House during its consideration of the Labor-HHS bill.

Meanwhile, House and Senate Republican leadership Sept. 17 confirmed that Congress would begin work on a continuing resolution (CR) to keep the federal government running through Oct. 31. The CR is needed because none of the 13 annual appropriations bills is likely to be enacted before the Oct. 1 start of the federal fiscal year.

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