House Approves FY 2005 Budget
Plan
March 26, 2004 - The House of Representatives March
25 approved its version of the FY 2005 budget resolution (H.
Con. Res. 393) after debating and rejecting four alternative
budget blueprints.
The resolution, originally approved by the House Budget Committee
March 17, would freeze domestic spending, increase defense
spending to the President's request of $401.7 billion, and
provide procedural protections for the consideration of $138
billion in tax cuts.
Rep. Jeb Hensarling (R-Texas) unsuccessfully offered a proposal
on behalf of the Republican Study Committee to cut non-defense,
non-homeland security discretionary spending by 1 percent,
reduce the rate of growth for non-Social Security mandatory
programs by 1 percent, and provide for consideration of $182.6
billion in tax cuts over 5 years.
The House also rejected three alternative budget plans offered
by Democrats. The leadership plan, offered by Budget ranking
member John Spratt (D-S.C.), called for $836 billion in discretionary
spending in FY 2005, approximately $15 billion more than the
committee's proposal. The Spratt proposal would have required
spending cuts or revenue increases to offset new entitlement
spending and all tax cuts. The House defeated a moderate proposal
by the Blue Dog Democrats to cut the deficit in half in two
years and balance the budget by 2012 by capping discretionary
spending and requiring pay-as-you-go (PAYGO) offsets for tax
cuts and spending increases. The House also turned back a
more liberal plan by the Congressional Black Caucus to provide
more money for education, health care and law enforcement
and repeal the tax cuts for taxpayers with gross incomes over
$200,000.
House Budget Committee Chair Jim Nussle (R-Iowa) has indicated
he will try to achieve a conference agreement with the Senate
by April 2 before the House leaves for its spring recess.
Information:
Dave Moore, Senior Director
AAMC Government Relations
dbmoore@aamc.org
(202) 828-0525
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