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Thursday, March 29, 2007
House Adopts Budget Resolution; Conference Ahead
By a 216-210 margin, the House this afternoon passed a budget resolution for FY 2008 . The $2.9 trillion nonbinding blueprint calls for a $153 billion surplus by 2012, a nearly $25 billion increase for domestic programs, and restoration of the PAYGO budget discipline rule.
The GOP alternative, offered by ranking GOP member Rep. Paul Ryan (R-WI), which would have cut entitlement spending by $270 billion over five years, added $168 billion to the deficit, and violated the House PAYGO rule, was defeated 160-268. It never had a chance, with 40 GOP members bucking leadership -- GOP ranks were split about 4-to-1 in favor.
House and Senate conferees will be appointed to work out the modest differences between H. Con. Res. 99 and the Senate resolution passed last week. The compromise resolution would ultimately provide guidelines only to Congress as it moves into the appropriations phase of the budget-making process; as a resolution, it never goes to the President for his signature.
Nevertheless, as we have remarked, the final product will invariably add only about three percent to the President's FY 2008 proposed domestic discretionary spending levels.
On the other hand, it will also invariably include a new congressional PAYGO regime for the first time since early in the Bush administration when the President and the GOP Congress allowed the Budget Enforcement Act to expire and deficits to explode.
Posted by Dana Chasin
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