Budget Advisory

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Budget Advisory

January 31, 2005

Over the next several months, the Congressional budget for FY2006 will be proposed, debated, and voted upon. The Congressional budget process has many steps that seem redundant. Facing heightened political challenges, NASW is looking to mobilize our chapters, members, and social work education programs to advocate for a budget that safeguards crucial domestic programs such as Medicaid, child welfare, TANF, and other entitlement programs. Please share this and future action alerts with your members, students, and faculty.

This advisory provides background information in preparation for discussions with Members of Congress through letters, visits, and phone calls. Included are definitions of the steps of the budget process, a general timeline for the budget process, and key times for advocacy.

Budget Definitions

President's Budget Request : lays out the Administration's priorities for the budget. The President requests a specified funding level for appropriated programs (discretionary spending) and may request changes in tax and entitlement law (e.g. tax cuts and entitlement spending caps).
Budget Resolution : the spending plan for Congress in the coming fiscal year. It includes a total for discretionary spending and targets for revenues and entitlement spending. Congress is expected to issue precise directives (called reconciliation instructions) to various committees forcing them to cut entitlement programs under their jurisdiction to meet spending targets. Passage of a budget resolution is required to authorize use of the budget reconciliation mechanism.
Budget Reconciliation : an expedited procedure that is easier to pass than regular legislation. A reconciliation bill cannot be held up by a filibuster and requires only 51 votes to pass in the Senate, making it difficult, if not impossible, to defeat once it reaches the Senate floor.
Budget Process Reforms : legislation to change procedures in the budget process. These could include a global spending cap, entitlement caps, discretionary spending caps, "pay-as-you-go" rules for entitlement programs, and tax cuts.

Budget Timeline (estimated) Bold indicates key advocacy times (you will receive an action alert from NASW at these times).

February 2	• State of the Union Address
February 7	• President's Budget Released (Letters/E-mail)
February	• Congress Holds Hearings on Budget • Committees Prepare "views and estimates letters" for the Budget Committees
February 18-28	• Members of Congress in home districts (Visits)
March-April	• Congress prepares its budget resolution with: • Total for discretionary spending • Targets for revenues and entitlement spending • Reconciliation instructions to cut entitlements and/or taxes • Budget process changes affecting both discretionary and entitlement spending • Possible stand-alone budget process bill, which could include a global spending cap; an entitlement cap; discretionary caps; and/or "pay-as-you-go" rule for entitlements only.
March 18-April 4	• Members of Congress in home districts (Visits)
May-July	• Appropriations process starts • Likely: budget reconciliation legislation considered, which could include cuts in entitlements (but no cap), Medicaid block grant, and tax cuts; TANF reauthorization could be part of this bill or move separately.