Appropriations Update as Congress Adjourns for August Recess

As Congress heads into the final month of the fiscal year, which ends September 30, the House has passed 11 of the 13 annual appropriations bills, while the Senate has approved nine bills.  Two conference reports have been passed by the House and Senate and readied for President Clinton’s signature – Military Construction and Legislative Branch -- only Military Construction has been signed by the President. 
   Each year, the Appropriations cycle is a slow and painful ordeal.  This year is no different.  In 1997, President Clinton and congressional leaders all hailed the passage of the “Balanced Budget Act of 1997.”  The bill required reductions in spending beginning in the later years of the five-year bill.  Now, in fiscal year 2000, Congress is faced with making those difficult cuts, using budget gimmicks to get around the caps, or busting the budget caps.  
   With Congress struggling to stay within the spending caps that were established in the Balanced Budget Act of 1997, it is likely that Congress will not be able to pass all the appropriations bills by September 30.  Congress will likely have to pass one or more continuing resolutions (CRs) and then wrap several appropriations bills into one omnibus package for President Clinton to sign.  If Congress is not able to pass the 13 appropriations bills by September 30, President Clinton and Congressional Democrats will publicly clamor that Republicans can’t get their job done.  They will argue that Democrats must regain control of the House and Senate so that the “trains will run on time.”  Nevertheless, the following is an update of the funding levels for some key construction programs for fiscal year 2000 thus far and how they compare to this year.

Tax Debate Continues:  President Clinton is holding firm to his threat to veto the $792 billion tax cut bill passed by Congress earlier this month.  After a veto, it is expected that Congress will produce a smaller tax cut bill when they return to Washington the week of September 6^th.  It is critical that the President and Members of Congress hear that the construction industry supports tax cuts, particularly elimination of the death tax.  Please take a moment to call the White House at (202) 456-1111 to let President Clinton know that you support tax cuts.  Also, call or write your  Congressmen and Senators.  More information along with sample letters you can use can be found at http://www.agc.org/public/legislative/taxrelief.html in the What’s New section.

The House of Representatives is poised to consider managed care legislation in September.  Of greatest concern to AGC is that one bill likely to be debated by the House (sponsored by republican Charles Norwood of Georgia and democrat John Dingell of Michigan) would allow employees to sue health care plans over delayed or denied benefits.  In some cases, even employers could be held accountable for the health plan’s decision if the employer is involved in the decision making process.  Either way, such a provision will increase the already high premiums paid by AGC members. This bill has 20 Republican supporters and could pass if all the House Democrats support it.  The Senate rejected a similar liability provision this summer.  AGC will oppose any managed care legislation containing mandates that will drive up the cost of health care premiums paid by employers and put employers at legal risk for health care decisions.