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TG's Legislative Report

January 27, 2004

Senate Passes FY 2004 Omnibus Appropriations, Takes Up Pension Reform Bill

Almost four months into fiscal year 2004, the Senate late last week voted to end debate and then passed the $820 billion FY 2004 omnibus appropriations conference report (H.R. 2673), clearing the measure for the president's expected signature.

Minority Leader Daschle, in an effort to appease his Democratic colleagues over the controversial provisions contained in the omnibus (country-of-origin labeling, media ownership, overtime pay, etc.), stated on the floor today that "these issues will not go away" and that "we intend to come back on each and every one" of these issues.

Daschle then offered a motion to proceed to consideration of an "enrolling" resolution that struck the country-of-origin labeling language in the omnibus conference report. The motion was immediately objected to.

Following Daschle's remarks, Majority Leader Frist assured the body that "these issues will be revisited." Frist quickly added that "it is time to move on" and that the country "demands that we complete action on this bill." Frist ended his statement by urging the Senate to vote for cloture and "move America forward."

After the vote on final passage of H.R. 2673, the Senate moved to H.R. 3108, the Pension Funding Equity Act of 2003.

H.R. 3108 would make changes to the way pension liabilities are calculated for certain plans, which would affect both pension contributions and premiums paid to the Pension Benefit Guaranty Corporation (PBGC).

The Congressional Budget Office (CBO) and the Joint Committee on Taxation (JCT) estimate that enacting H.R. 3108 would increase federal revenues by $2.7 billion in FY 2004, $4.0 billion over the FY 2004-2008 period, and $304 million over the FY 2004-2013 period. CBO estimates that the bill would increase direct spending by $279 million over the FY 2005-2013 period.

Senate HELP Committee Chairman Gregg, a primary steward of the pension reform measure, stated today that the goal of the legislation is to ensure "we have a viable pension system... and a strong defined benefit system."

There was no official unanimous consent agreement regarding the length of debate on H.R. 3108. However, there is a tentative agreement for each side to offer three amendments on "three topics":

  1. Pension discounts.
  2. Deficit reduction contribution relief.
  3. Multi-employer plan relief.

Votes on these amendments will continue through the week of January 25th.

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Unauthorized Appropriations and Expiring Authorizations

Earlier this month, the CBO released its annual reports on unauthorized appropriations and expiring authorizations. The latter set of reports (one each for the House and Senate) lists the authorizations that expire this year, by committee, and thus provides a convenient starting point for charting the legislative agendas of the authorizing committees.

CBO reports that about $424 billion worth of definite authorizations in laws under the jurisdiction of 14 House and 15 Senate authorizing committees will expire by the end of this fiscal year. Most of that amount (about $397 billion) is authorized in a single law-the National Defense Authorization Act for Fiscal Year 2004 (P.L. 108-136). Many billions more are authorized in indefinite authorizations ("such sums as are necessary"). An example is the $20-plus billion Food Stamp program.

Note that since the FY 2004 omnibus appropriations bill-which contains seven of the thirteen annual spending measures-was not enacted last year, information on unauthorized appropriations within these spending bills was not provided in the "Appropriations Version."

Because of election year politics, the CBO will probably not release a second updated report before next January on programs funded in the FY 2004 omnibus unless members of either Appropriations Committee specifically ask for it.

However, look for reauthorizations and extensions of these programs (along with the 2001 and 2003 income tax reductions) to take up much of this Session's time prior to the August recess and November general election.

Included in CBO's list are the usual suspects: the annual defense and intelligence reauthorizations, plus the TEA-21 and welfare reform reauthorizations.

From the CBO report, here are highlights of some major authorizations that expire this year.

P.L 107-56 (USA PATRIOT ACT, 2001) — Antiterrorist activities of the Federal Bureau of Investigation (reauthorizes amounts originally provided in the Antiterrorism and Effective Death Penalty Act of 1996).
Expiration Date: September 30, 2004
FY 2004 Appropriations Authorized: $200,000,000

P.L 106-113 (Consolidated Appropriations Act for Fiscal Year 2000)
Additional funding for embassy security, construction and maintenance
Expiration Date: September 30, 2004
FY 2004 Appropriations Authorized: $900,000,000

P.L 108-177 (Intelligence Authorization Act for Fiscal Year 2004)
Intelligence Community Management Account
Expiration Date: September 30, 2004
FY 2004 Appropriations Authorized: $221,513,000

P.L 108-136 (National Defense Authorization Act for Fiscal Year 2004)
All Defense Military Programs and Activities (except Military Construction and Family Housing)
Expiration Date: September 30, 2004
FY 2004 Appropriations Authorized: $371,611,107,000

Atomic Energy Defense Activities (including weapons activities, environmental programs, nuclear nonproliferation, and other activities of the National Nuclear Security Administration)
Expiration Date: September 30, 2004
FY 2004 Appropriations Authorized: $16,698,752,000

Military Construction ($5,726,527) and Family Housing ($3,462,873)
Expiration Date: September 30, 2004
FY 2004 Appropriations Authorized: $9,189,400,000

P.L 107-210 (Trade Act of 2002)
U.S. Customs Service reauthorization; including noncommercial operations ($1,399,592,400), commercial operations ($1,683,667,050), and air and marine interdiction ($175,099,725)
Expiration Date: September 30, 2004
FY 2004 Appropriations Authorized: $3,258,359,000

P.L 105-285 (Coats Human Services Reauthorization Act of 1998)
Low-Income Home Energy Assistance
Expiration Date: September 30, 2004
FY 2004 Appropriations Authorized: $2,000,000,000

P.L 108-89 (TANF)
Temporary assistance for needy families, abstinence education (section 510), payment to territories (section 1108(b) and Medicaid transition payments (section 1925).
Expiration Date: March 31, 2004
Indefinite Appropriations Authorized

P.L 108-88 (Surface Transportation Extension Act of 2003)
Highway Formula programs
Expiration Date: February 29, 2004
FY 2004 Appropriations Authorized: $13,483,458,000

On a related topic, the CBO's budget and economic outlook released on January 26th projects record deficits before the budget balances in 2014.

The CBO assumes existing laws will remain unchanged, e.g., 2001 and 2003 income tax reductions will expire and that the rate of growth in annual appropriations will not exceed the consumer price index.

Discounting Social Security, annual budget deficits will be $631 billion in 2004, $535 billion in 2005, $464 billion in 2006, $477 billion in 2007, $504 billion in 2008, $507 billion in 2009, $511 billion in 2010, $421 billion in 2011, $299 billion in 2012, $294 billion in 2013, and $277 billion in 2014. Counting the Social Security surpluses, the deficit will be less, ranging from $154 bill in 2004 to $13 billion in 2014.

As a percent of the gross domestic product, the annual deficit is projected to decline from 4.2 percent this year to .1 percent in 2013.

Get the full reports at http://www.CBO.gov.

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Governor Directs Universities to Set Accountability and Efficiency Standards

Gov. Rick Perry today directed university regents to begin setting accountability standards to ensure tax dollars colleges and universities receive are being efficiently spent and college students are receiving a quality education.

Perry issued the directive in an executive order.

"Our institutions of higher education should be held accountable to taxpayers for the billions of dollars in state funding they receive each year," Perry said. "It also is essential students and parents know they are getting a quality education for their tuition dollars."

In his executive order, the governor directed that the boards of regents for each public institution and university system work with the Texas Higher Education Coordinating Board in developing the accountability measures. That system, the governor said, should "provide Texans with the information necessary to determine the effectiveness and quality of student education at individual institutions, and the basis upon which to evaluate the institutions' need for additional state resources."

"Whether in tough economic times or economic boom times, our colleges and universities must clearly define their need for additional state funding," Perry added. "They must make the case to justify the public's continued investment of resources."

Perry noted public schools that educate students in kindergarten through grade 12 have been held to accountability standards for more than 10 years.

"The public has the right to demand complete accountability for its investment in institutions of education," Perry said in his executive order. "Systems and institutions of higher education must be able to clearly define the need for additional state funding in a manner which will justify the public's continued investment of resources."

Perry set a deadline of December 17, 2004 for receipt of the accountability system proposals.

Executive Order RP31 — Relating to Accountability of Higher Education Systems and Institutions

By The Governor of The State of Texas
Executive Department
Austin, Texas
January 22, 2004

WHEREAS, the people of the State of Texas expect the state to provide the highest quality of higher education; and

WHEREAS, Texas public institutions of higher education and the systems in which they operate are funded by both public funds and tuition paid by private citizens; and

WHEREAS, the public has the right to demand complete accountability for its investment in institutions of education; and

WHEREAS, public K-12 education has been required to provide comprehensive accountability to the citizens of Texas for more than ten years; and

WHEREAS, systems and institutions of higher education must be able to clearly define the need for additional state-funding in a manner which will justify the public's continued investment of resources;

NOW, THEREFORE, I, Rick Perry, Governor of the State of Texas, by virtue of the power and authority vested in me by the constitution and laws of the State of Texas, do hereby order the following:

The boards of regents for public institutions of higher education in the state shall direct that each institution and system work with the Higher Education Coordinating Board to create a comprehensive system of accountability.

This system will provide the citizens of Texas, the Governor, and the Legislature with the information necessary to determine the effectiveness and quality of the education students receive at individual institutions.

It will also provide the basis to evaluate the institutions' use of state resources.

This system of accountability shall be approved by the Boards of Regents and the Texas Higher Education Coordinating Board no later than December 17, 2004.

This executive order supersedes all previous orders inconsistent with its terms and shall remain in effect and in full force until modified, amended, rescinded, or superseded by me or by a succeeding Governor.

Given under my hand this the 22nd day of January, 2004.

RICK PERRY
Governor

Attested By:
GEOFFREY S. CONNOR
Secretary of State

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For more information, contact:

TG Congressional and Legislative Relations
(512) 219-4503
P.O. Box 83100
Round Rock, TX 78683-3100

 

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