House, Senate Continue FY
2005 Budget Talks
April 2, 2004 - House and Senate negotiators continue
to work to resolve differences between their respective FY
2005 budget resolutions. A major obstacle to a conference
agreement on the budget is House GOP opposition to a Senate
provision restoring the former pay-as-you-go (PAYGO) rules
that would require any new tax cuts or mandatory spending
increases to be offset by other revenue increases or spending
cuts or face a 60 vote point of order on the Senate floor.
A non-binding Democratic motion on March 30 to instruct the
House conferees to apply PAYGO to tax cuts as well as spending
increases failed by a tie vote of 209-209 only after Republican
leaders held the vote open for an additional 23 minutes while
they worked to persuade enough of their colleagues to vote
against the measure.
Budget negotiators reportedly have reached agreement on an
overall discretionary spending limit of $821 billion for FY
2005 - $2 billion less than the President's budget request,
but $2 billion more than the $819 billion cap for FY 2005
set in last year's budget resolution.
While Congress can proceed with its work on the FY 2005 appropriations
bills in the absence of a budget agreement, the political
stakes associated with gaining an agreement are high for Republicans
in both chambers. Senate Republicans want the procedural protections
a budget resolution provides for consideration of a reconciliation
bill to extend current tax cuts. House Republicans want a
budget conference agreement because it would automatically
extend the federal debt limit and avoid a potentially embarrassing
vote close to the November election.
The House and Senate leadership had hoped to be able to vote
on a conference agreement on the budget resolution (S.Con.Res.
95) before the House leaves for its two-week spring recess
beginning April 2; however, at press time, it appears deliberation
on the resolution will be held over until after the recess.
Information:
Dave Moore, Senior Director
AAMC Government Relations
dbmoore@aamc.org
(202) 828-0525
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