The full Senate Appropriations Committee passed its Labor-HHS-Education Appropriations bill on June 26. The total discretionary spending in the bill is $154.9 billion, a $9.5 billion increase over the Administration's FY 2009 Budget request. Highlights of the Senate bill include $2.9 billion for adult, youth, and dislocated worker job training. The Senate's version would increase WIA Youth Activities funds by $6.4 million above the FY 2008 level. Job Corps is funded at $1.6 billion, a $40 million increase. For more information, visit appropriations.senate.gov/News/2008_06_26_Summary_of_FY_2009_Labor_Health_and_Human_Services_Education_Related_Agencies_Committee_Mark.pdf?CFID=24174575&CFTOKEN=52590339.

The President indicated that he would veto any bill that exceeds the Administration's budget request, with possible exceptions for Defense and Veterans Affairs funding. Congressional insiders believe that few if any appropriations bills will be approved this year. They expect that legislators will pass a continuing resolution before the September 30 end of the fiscal year to fund government operations through the beginning of 2009.

Second Stimulus
The likelihood of a second stimulus package that includes additional domestic spending hinges on the state of the economy and whether members of Congress are eager to fund items that were not included in previous stimulus bills or the war supplemental but are still important to their states or districts. Items not included in the final version of the supplemental include $490 million for State and Local Law Enforcement Grants, $451 million for emergency infrastructure funding to repair or reconstruct roads and bridges damaged by natural disasters, and $400 million for rural schools. These items were included in the Senate version of the war supplemental, but were left out of the House version. At this time, there is no discussion of including youth employment funding in a second stimulus package.

Other Legislation
On June 19, Reps. Jim McDermott (D-WA) and Jerry Weller (R-IL) introduced the Fostering Connections to Success Act, which would provide supports for children in foster care and their non-parent, related guardians. If passed, the bill would provide the option for states to provide select foster care services to children up to the age of 21 who are in secondary or postsecondary education, participating in an employment program "designed to promote or remove barriers to employment," or are employed at least 80 hours per month.

On June 4, the House passed a bill authorizing $6.4 billion in funding for construction of environmentally friendly public schools. In early June, the Senate also considered the Lieberman-Warner Climate Security Act of 2008, which includes the adoption of the job training program first created as a separate piece of legislation in the Green Jobs Act.

MAY

Budget and Appropriations
House and Senate majority leaders continue to work together to develop a fiscal year (FY) 2008 supplemental appropriations package, but a number of issues prevented Congress from completing the bill before the Memorial Day recess. At this time, Capitol Hill insiders expect the measure to include the Administration's FY 2008 request of $102 billion for the wars in Iraq and Afghanistan, as well as a $70 billion bridge fund for the wars in FY 2009.

On May 22, the Senate passed its version of the appropriations bill by a vote of 70-26 for the war funding provision and 75-22 for the domestic spending provision. If Senate leaders can maintain this supermajority, Congress will have enough votes to override a presidential veto. In order to obtain this supermajority, Senate lawmakers found it necessary to trim down the total amount of domestic spending in their bill.

Differing views from minority members regarding domestic spending delayed the House version of the emergency war supplemental. The House bill is similar to the Senate-passed version, with one major exception. In order to pay for the new veterans benefits, the House bill includes a 0.47 percent surtax for individuals with gross income in excess of $500,000 or $1 million for couples. The Senate version does not include this tax.

Congressional staff expect a vote on the $3.03 trillion budget conference report soon after members return on June 2. Upon passage of the FY 2009 Congressional Budget, House and Senate appropriations subcommittees will receive their 302b allocations, which will set the total amount of discretionary spending for each subcommittee. The allocation for Labor, Health & Human Services, and Education programs will likely exceed the Administration's FY 2009 request by about $8 to $10 billion.

According to the Budget Act, appropriators may begin to mark up their bills if legislators have not adopted a budget resolution by May 15. Appropriators, however, have not yet begun work. House Appropriations Committee Chairman David Obey (D-WI) stated his desire that appropriations bills proceed in the regular order and that each committee will have approved its appropriations bills by July 4.

House Appropriations Committee staff continue to indicate that the Committee is intent upon marking up its bills in the near future. It remains unclear, however, whether the Committee will bring these bills to the House floor for votes or hold them in abeyance. Congressional insiders continue to indicate that majority leaders intend to delay final negotiations over FY 2009 appropriations until next year when a new administration enters office and the next Congress is seated. Legislators would likely pass a continuing resolution to extend funding for government operations until March or April of next year. Congressional insiders expect that in the House at least two FY 2009 appropriations bills will make it to the floor after the August recess, most likely the Military-Veterans Affairs and Defense appropriations. Senate insiders have indicated a similar schedule.

Summer Jobs
Initially, congressional staff indicated that legislators would possibly include $1 billion for summer jobs in the Emergency War Supplemental currently in debate in Congress. Unfortunately, majority leaders encountered a great deal of resistance to a more modest domestic spending package that was initially included with the war supplemental. Therefore, it appears summer jobs will not be included in the supplemental.

Other Legislation
On May 14, the House Education and Labor Committee approved the Stop Child Abuse in Residential Programs for Teens Act (H.R. 5876). Aimed at reforming boarding schools, boot camps, and wilderness schools, the act would take steps to end abusive practices, such as the denial of food and shelter and the use of physical restraint as punishment.
Congress passed a $290 billion Farm Bill on May 15. The President vetoed the bill, but congressional insiders expect both the House and Senate to easily override the veto. The

Nutrition Title of the Farm Bill includes the Food Stamp Employment and Training (FSET) program. This program was created to provide employment training to Food Stamp recipients. Improvements to the FSET in the 2008 Farm Bill include provisions which allow participants to stay in the program to last up to 120 hours per month and a new requirement for 90 days of post-employment services.

On May 20, Sen. Joe Lieberman (I-VT) introduced a new energy bill, titled the Lieberman-Warner Climate Security Act (S. 3036). Money paid into a new "cap-and-trade" system promoted by the bill could be used to fund workforce training similar to the training proposed in the Green Jobs bill. Sen. Barbara Boxer (D-CA), Chair of the Environment and Public Works Committee, has prepared an amendment to the bill that would, among other things, substitute the text of the Green Jobs Act of 2007 for the section on worker training in the original bill. If the Boxer Amendment prevails, the bill will include the same "Pathways out of Poverty" section included in the Green Jobs Act when it first passed Congress and the President signed it into law.

In addition, the Boxer Amendment also includes language that instructs the U.S. Department of the Interior to "include strategies that engage youth and young adults" and to encourage opportunities for employment in the private sector through partnerships with employers. 

APRIL

Budget and Appropriations
On April 9, the House Ways and Means Committee took up for consideration the Emergency Extended Unemployment Compensation Act of 2008 (H.R. 5749). This bill would extend unemployment insurance benefits by 13 weeks in every state and an additional 13 weeks in states with six percent unemployment or higher. On April 16, the House Ways and Means Committee approved the bill by a 23-13 vote. Many Capitol Hill insiders believe this legislation will not move as a stand-alone bill but rather that legislators will attach it to a larger defense spending package.

As legislation that would provide emergency supplemental defense funding in Iraq and Afghanistan picks up steam, majority leaders have indicated that they plan to attach an unspecified amount of domestic spending to the bill. At the top of the list for such spending is an extension of unemployment benefits, though other possibilities include assistance to states, an increase in food stamp benefits, infrastructure repairs, and summer jobs. The Administration pushed back against any additional spending, threatening to veto any emergency supplemental package that exceeds its $108 billion request.

Other potential amendments to the defense supplemental include increased education benefits for active veterans and measures shifting responsibility for Iraqi reconstruction to the Iraqi government. The Senate Appropriations Committee held a hearing on the defense supplemental on April 15.

Second Chance Act
On April 9, President Bush signed into law the Second Chance Act of 2007 (H.R. 1593). This bill authorizes the Secretary of Labor to award grants to nonprofit organizations to provide mentoring, job training and job placement services, and other comprehensive transitional services to assist eligible ex-offenders in obtaining and maintaining employment. Grantees would establish partnerships in eligible local areas with the criminal justice system, local workforce investment boards, housing authorities, and other entities to ensure a coordinated approach in making an array of services available to more effectively assist ex-offenders. The bill authorizes Congress to appropriate $20 million per year in fiscal years (FYs) 2009 and 2010 for these grants.

Second Stimulus Package
Discussion in Congress continues regarding a second economic stimulus package. Sen. Patty Murray (D-WA) introduced the Summer Jobs Stimulus Act of 2008 (S. 2755). Rep. James E. Clyburn (D-SC) introduced a similar bill, the Job Investment and Economic Stimulus Act of 2008 (H.R. 5444). Both bills call for $1 billion to support summer jobs for low-income youth.

Other proposals for the stimulus package include: Medicaid cost relief for states;  increased availability of food stamps; a "green" investment package; investment in infrastructure; and budgetary relief for cities.  Thus far, the Administration has signaled its refusal to accept any of these initiatives. Capitol insiders suggest that if additional domestic spending proposals are included, they will be attached to the supplemental defense spending bill.

MARCH

Budget and Appropriations
On March 27, the U.S. Department of Labor Employment and Training Administration released Training and Employment Guidance Letters (TEGLs) 23-07 and 24-07. TEGL 23-07, which the public may access at wdr.doleta.gov/directives/corr_doc.cfm?DOCN=2620, details the state-by-state allocations of new Workforce Investment Act (WIA) funding for Program Year (PY) 2008. TEGL 24-07, which the public may access at wdr.doleta.gov/directives/corr_doc.cfm?DOCN=2619, details the state-by-state impact of WIA rescissions, including the $250 million rescission passed in December 2007 as part of the Fiscal Year (FY) 2008 Consolidated Appropriations Act.

On March 14, 2008, the Senate passed its FY 2009 budget resolution (S. Con. Res. 70) by a 51-44 vote after a long series of amendments. Earlier the same day, the House passed its version of the budget resolution (H. Con. Res. 312) by a 212-207 vote. The two resolutions will head to a conference committee for negotiations leading to a final budget amenable to both houses of Congress.

The Senate resolution calls for $1,013.4 billion in discretionary funding. The Senate  authorized funding for budget category 500, which includes all education, training, employment and social services funding, at $94.7 billion. The Senate's budget requests $8.8 billion more for discretionary spending on education, job training, and social services programs than requested in the Administration's budget. Adjusted for inflation, this amount is a $5.5 billion increase over FY 2008 funding.

The House resolution calls for $1,017 billion in discretionary funding, and requests $95.2 billion in education, training, employment, and social services funding. The House budget requests $7.1 billion more for discretionary spending on education, job training, and social services programs than called for in the Administration's budget. Adjusted for inflation, this amount is a $3.8 billion increase over 2008 funding levels.

Much of the debate over the budget involved how to handle the extension of tax cuts set to expire at the end of this fiscal year. Even with the higher budget caps in congressional budget resolutions, funding will be tight as defense spending continues to put constraints on all other spending. The House version of the budget extends pay-as-you-go rules, creating a situation in which new spending must be offset by spending cuts or tax increases.

According to the Congressional Budget and Impoundment Control Act of 1974, the budget resolution's caps on spending may be exceeded through a "budget enforcement" vote in both houses of Congress. In the Senate, three-fifths of members must vote in favor to bypass budget cap enforcement on non-emergency spending. In the House, a majority must vote in favor to bypass budget cap enforcement on non-emergency funding. In both houses of Congress, bypassing budget cap enforcement for emergency spending only requires a simple majority. Therefore, a budget resolution's cap is more like a soft target rather than a hard spending limit, and Congress may spend beyond those caps as they take up appropriations legislation and consider emergency funding requests later this year or early next year.

Access NYEC's full Budget and Appropriations Side-by-Side at www.nyec.org/content/documents/Budget&AppropsSidebySide.pdf.

Economic Stimulus
On March 13, 2008, Sen. Patty Murray (D-WA) introduced the Summer Jobs Stimulus Act of 2008 (S. 2755). Previously, on February 14, 2008, Rep. James Clyburn (D-SC) had introduced a similar bill, the Job Investment and Economic Stimulus Act of 2008 (H.R. 5444). Both bills call for $1 billion to be spent on summer jobs for low-income youth. The performance measures which may be used in assessing the success of programs under these acts are limited to the "attainment of basic skills, and, as appropriate, work readiness or occupational skills." Both bills would allow funds to be used from April 1, 2008 through December 31, 2008. Congressional insiders have indicated that a second economic stimulus package may be considered in the next few months.

FEBRUARY

Budget and Appropriations

On February 5, the Administration released its FY 2009 budget, once again severely reducing discretionary spending on health and human services programs.  On February 15, Congress adjourned for the week-long President's Day recess.  Going into the break, the House of Representatives had passed its version of the Higher Education Act (HEA) reauthorization and both houses of Congress had completed work on a stimulus bill to provide most Americans with tax rebate checks.  After returning from the break on February 25, the Senate began work a housing-focused stimulus and bankruptcy reform bill, as well as beginning work on its FY 2009 budget.

The President's FY 2009 budget includes $10.5 billion in discretionary spending for the Department of Labor.  This amount is a 1 percent decrease from the President's FY 2008 Budget and 7.9 percent less than the $11.4 billion appropriated by Congress last year.  Cuts to Workforce Investment Act (WIA) job training programs total approximately $1 billion.

The Administration's FY 2009 Budget includes:

*FY 2008 appropriations include a 1.75 percent across-the-board cut implemented in the FY 2008 Consolidated Appropriations Act (H.R. 2674)

Congressional insiders expect members to take-up for consideration a budget of their own in March.  On February 27, Senate Budget Chairman Ken Conrad (D-ND) briefed Majority members on budget options moving forward, and included in those options the possibility of a second $35 billion stimulus package.  Including stimulus in the Congressional budget would not mean the Congress must consider or pass a second stimulus package.  Rather, it would set out the intentions of Congress to add stimulus not included in the first package through the budget and appropriations process.  Senator Conrad mentioned the extension of unemployment insurance benefits, funding for food stamps, low-income energy assistance, and infrastructure projects as items that might be included in a second package.

This week, House Appropriations Committee Chair David Obey (D-WI) stated that if the Administration was not willing to negotiate with Congress regarding a higher spending level than proposed in the President's FY 2009 Budget, then Congress might simply wait until a new President enters office next year before acting on appropriations.  The President stated earlier in February that he would veto any appropriations bill exceeding the spending caps in his FY 2009 budget.  If no room for negotiation looks possible, Congress would need to pass a temporary Continuing Resolution (CR) to extend funding for government operations until after January 20, 2009.

JANUARY