Money Matters: FY 2009 Budget Yet to Be Determined - 9/17/08
Money Matters
FCNL’s Federal Budget Interest Group
I. Allocating a Trillion Dollars in 2 Weeks
II. Military Authorization Update
III. Energy Tax Credits Update
IV. What It’s Like to Be Poor in a Declining Economy
V. ACTION: Call in to Congress to Support Low Income Families
I. Allocating a Trillion Dollars in 2 Weeks
Congress is back in town for 2 more weeks. Maybe 3. In that short time, the members have to accomplish something they’ve been unable to achieve all year — they have to allocate all the money needed to keep the government running.
In the normal order of things, each chamber would pass 12 separate appropriations bills, settle the differences between them in conference committees, and send them to the president to be signed. This year has not been normal. Senate leaders are proud that the full Senate appropriations committee passed 9 of its 12 appropriations bills. But none of them went to the Senate floor for a vote. The House appropriations committee has only passed 5 bills. Now chaos is the order of the day.
No one seems to know how this job will get done. Congress could pass a “continuing resolution” that simply continues current funding for existing programs (perhaps with an adjustment for inflation and a few minor adjustments for a few programs) until a certain date in the future.
Another possibility would be for Congress to pass an “omnibus appropriations bill,” which would combine all the remaining appropriations bills into one behemoth. This bill could include many more pieces — perhaps measures that would extend expiring tax breaks, or reauthorize programs, or place sanctions on Iran. While the democratic process goes forward on the House and Senate floors, on matters such as scenic river preservation and establishing environmental education programs for children, the trillion-dollar questions are being hammered out in closed-door meetings from which even congressional aides are excluded.
Will Congress reconvene after the elections to work more on these spending bills? As a practical matter, there’s one week in November (17–21) when Congress might return for a “lame duck” session — so called because some members will have been voted out of office, making them (in theory) less powerful. Congress would then recess for the Thanksgiving holidays and would return, if at all, for a week or 2 in December. So even a lame duck session does not afford members of Congress much more time to work out their differences on the big funding issues. But they might try.
II. Military Authorization Update
Unlike other parts of the government, military programs are reauthorized every year. That means, each year, Congress extends the authority of the military to spend money on particular programs. The military authorizations include permits to build new weapons, purchase more materials, adjust wages for military personnel, and sometimes incorporate military policy statements. Read more about the military authorization bill that is on the Senate floor this week from our colleague organization, the Center for Arms Control and Non-Proliferation.
III. Energy Tax Credits Update
The renewable energy industry continues to warn that failure to extend renewable energy tax breaks beyond their December 31 expiration date will damage the country’s ability to shift away from fossil fuels. Because projects must be producing electricity by December 31 to receive the tax credit, even wind turbines that take a few months to build are now on hold.
Among the energy tax credits under discussion in the Senate are
— long-term extensions of wind, solar, geothermal, biomass, and wave energy tax credits;
— extension of tax incentives for energy efficiency including buildings,
appliances, and smart meters;
— long-term extension of credits for alternative transportation fuels; and
— support for nuclear and coal energy production, but not drilling.
House leaders are looking at legislation that would
— extend and expand tax incentives for renewable energy, including incentives for plug-in vehicles;
— provide long-term extensions for renewable electricity production credits benefitting solar, wind, biomass, geothermal, wave, waste, fuel cell, alternative fuel, and other non-fossil energy sources;
— offer credits for energy efficient homes, buildings, and appliances; and
— support domestic oil drilling, but not nuclear production.
Although members of Congress have expressed a great deal of interest in these issues, they have little time left to develop and agree on large-scale legislation, and these proposals would require a significant amount of time to formulate. It seems doubtful that Congress will be able to complete work on energy tax credits this year.
IV. What It’s Like to Be Poor in a Declining Economy
High Unemployment Rates Taking a Toll
The unemployment rate rose to 6.1 percent in August — higher than it’s been in longer than a decade. More than 500,000 people in the United States have lost their jobs in the past 8 months and many more are underemployed (can only find part-time work). The government has responded by extending unemployment insurance and giving more funding to safety-net programs. More needs to be done, however, to support working families through this crisis. Read the full article and find out what you can do.
Extending the Child Tax Credit to Lower-Income Families
With 18 percent of U.S. children living below the poverty line, safety-net programs that support children are becoming increasingly important. The Child Tax Credit provides a needed income supplement to millions of families, but the current system is set up to give larger credits to higher-income families and no benefit to families earning below $12,500 a year. Congress is considering legislation that would extend the Child Tax Credit to families earning $8,500 or more — a measure that would benefit 13 million additional children. Learn more about the Child Tax Credit and encourage your senator to vote for extending it to lower-income families.
More Information on What It’s Like to Be Poor in a Declining Economy
- The Coalition on Human Needs recently released a report summarizing what Congress can do to help working families through the recession. View the article, “Towards Shared Recovery: Congress Must Do More to Reverse the Recession.”
- A National Women’s Law Center report breaks down poverty rates by gender, age, and race. It gives a historical analysis of poverty in the United States and suggests where those trends may be going. Read the report.
- The Center on Budget and Policy Priorities releases an employment report every month. Read the August report.
V. ACTION: Call on Congress to Support Low Income Families
On Wednesday, September 17 through Friday the 19th, FCNL is joining with colleague organizations in the Coalition on Human Needs to call in to Congress with a simple message in a complicated time. Ask your members of Congress to keep low-income families in the front of their minds as they consider spending bills and tax credits. An ailing economy is tough on everyone, but it’s hardest for those who are completely left out — of employment, housing, health care, and adequate food. These families should come first. Click here to read more on the call-in and find talking points.
On THIS Wednesday through Friday, call 1-888-245-0215 to be connected to your representative and senators and deliver the message.