Cuts to social programs upset key appropriators

House-Senate negotiators Monday were nearing agreement on fiscal 2006 spending bills, but the decision to cut funds for the Labor, Education and HHS departments by about $1.4 billion below last year's levels is leaving some key players unhappy.

The havoc in social programs is such that Senate Labor-HHS Appropriations Subcommittee Chairman Arlen Specter, R-Pa., used terms like "scandalous" and "unconscionable," even threatening to vote against his own bill. Senate Appropriations Chairman Thad Cochran, R-Miss., said appropriators might have to go back to the Budget Committees to negotiate a higher spending cap.

The underlying Military Construction-VA and Labor-HHS spending bills, as well as a $65.9 billion Transportation-Treasury bill -- which cuts $518 million from fiscal 2005 levels -- might see final approval this week.

The Senate passed a $30.5 billion Energy and Water appropriations bill Monday by an 84-4 vote, making it the sixth of 11 fiscal 2006 spending bills to be either signed or be sent to the president's desk, and all but the Defense bill are likely to be cleared by this weekend.

Congress will have to approve another stopgap continuing resolution this week -- the current one expires at midnight Friday -- to fund the government, probably through Dec. 17.

The fiscal 2006 Defense spending bill, expected to total $453 billion, appears to be held in reserve for December. At that point, it could carry other must-pass items such as a reallocation of existing funds to agencies affected by hurricanes Katrina and Rita.

An avian flu preparedness package also might be included in the Defense bill, which is shaping up to be a mini-omnibus in its own right. There remain concerns from House conservatives such as Energy and Commerce Chairman Joe Barton, R-Texas, about the bird flu money.

Conferees are moving to provide $22.5 billion for VA medical services, making up more than half of the $44.1 billion fiscal 2006 Military Construction-VA measure. About $1.2 billion of the healthcare funds were to be designated as a "contingent emergency," which does not count against budget caps.

The White House, however, would have to formally ask to spend the money.

Veterans are an important constituency for both parties. Part of the reason for the substantial healthcare increase stems from errors in projecting the agency's increased workload due to soldiers returning from Iraq and Afghanistan.

By contrast, GOP leaders have shown none of the same deference for social services spending in the Labor-HHS measure, favored mostly by Democrats and moderate Republicans.

Already faced with a $329 million cut, appropriators also had to make room for about $980 million in new costs associated with implementing the Medicare prescription drug benefit, for which enrollment begins Tuesday.

That burden effectively crowds out traditional priorities, such as job training, and freezes or cuts many education and health services programs.

"I may vote against it, which is a little difficult to do in a leadership position, but it's that bad," Specter said.

The National Institutes of Health budget would receive a $150 million increase over last year, the smallest in 36 years. President Bush's community college and community health center initiatives were slashed, and members had to sacrifice about $1 billion in proposed home-state earmarks.

The cuts come as House leaders have been courting moderate Republican votes for a package of mandatory spending reductions and other savings, from programs like Medicaid and student loans.

The deficit reduction bill is likely to include at least $1 billion in Low Income Home Energy Assistance funds, particularly important to Northeastern Republicans whose constituents face higher energy prices this winter. That softens some of the Labor-HHS blow, as GOP leaders included a small increase but were reluctant to add emergency funds for heating subsidies to that measure.