Thursday, 17 of May of 2012

Budget and Appropriations Update

By Washington Partners

It was Groundhog Day once again in the Nation’s capital this week. First the House of Representatives and then the Senate passed a 6th Continuing Resolution (CR) to keep funds flowing to all government agencies. This CR will expire on April 8th. On the one hand, it prevents a government shutdown while negotiations continue. On the other hand, running the richest country in the world on a budget that changes every week seems a bit reckless. CR number six cuts another $2 billion per week from the total that the government would have spent had the CR actually represented a freeze from FY 2010. This CR, thankfully, does not make additional cuts to the Department of Education.

One new twist on the latest CR vote in the House was the defection of all but 20 of the new Republican Members. A significant number of Democratic votes were needed to get the bill across the finish line. This is the first hint of a weakened hand for Speaker of the House John Boehner (R-OH). The tough talk among these renegade Republicans suggests this will be the last short term CR they support.

Meetings are taking place between leadership teams from the House, Senate and White House in an effort to strike a compromise, but the Democratic caucus is still clamoring for more direct intervention from the President. Democrats are concerned the President will cut a deal with Republicans on a spending plan, as he did on taxes at the end of the last Congress, leaving the Democrats fuming on the sidelines.

Finalizing the budget was the major topic in the Congress this week, but not the only one. Several hearings examined escalating costs in the Pell Grant Program, as well as the costly and time-consuming nature of Department of Education regulations imposed on higher education institutions and local school districts. President Obama spoke early in the week about the urgency surrounding the rewrite of the Elementary and Secondary Education Act—he even took to calling it the “No Child Left Behind Act” in an effort to rile the public and spur the Congress to act on the legislation. Secretary Duncan also spoke out about the need to revise the law, repeating his claim that 80 percent of schools will be labeled as failing in the coming year if the rules don’t change.

Next week marks yet another recess period for the House and the Senate. Congress will return to the Capitol on March 28th, just in time to see the Cherry Blossoms bloom. Hopefully they will be rested and ready to finally put the budget for FY 2011 to bed.

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