Contentious Budget Process Begins to Unfold - February 9, 2011

The US House of Representatives is focusing its attention on funding the government through the rest of the fiscal year. The current Continuing Resolution (CR), which is funding the government at FY 2010 levels, expires on March 4. Next week, the House is expected to take up its spending bill, which sets a cap on spending at FY 2008 spending levels. The bill will reportedly appear on the floor under an “open rule” allowing for many amendments – the likely result being even greater cuts made through amendment. The Senate plans to take up the spending measure once it is passed by the House. Senate Democrats are expected to craft a more generous spending bill, though they will need support by a handful of Republicans to invoke cloture and move to passage.

Simultaneously, policy-makers in Washington are eagerly awaiting the Feb. 14 release of the president’s FY 2012 budget request to Congress. The White House has been closed-lipped about what will be contained in the President’s budget, but the President has been clear that it will be an austere document, with Office of Management and Budget Director Michael Lew noting that the President will propose significant cuts to programs he supports. Congressional Budget Committees are expected to take up their FY 2012 budget resolutions later this month or in early March. House Republicans are debating how deeply to cut the budget next year with the conservative Republican Study Committee calling for cuts of more than $100 billion in domestic discretionary spending.

While the exact cuts slated in the President’s budget – and those being contemplated by the Budget Committees – are not yet known, we believe that Medicaid likely will be targeted for significant cuts. For that reason, we are strongly recommending that all NAPH members come to Washington for our Community Leaders Legislative Event on March 7-8. Your voice is critical in this debate. The deadline for hotel reservations is Friday, Feb. 11.