Appropriations Bill Cuts Key Conference Priorities
May 15, 2000
As US Mayor went to
press, both the House and Senate Appropriations Subcommittees approved FY
2001 spending bills for the departments of Labor, Health and Human Services
and Education, making it one of the first appropriations bills to complete
subcommittee mark-ups. The Labor-HHS-Education appropriations bill is the
largest of the 13 annual spending bills and has been difficult to pass
except as part of a larger spending bill.
The House bill made
significant cuts below the President's requests - approximately $3 billion
in cuts in education programs, $1.7 billion in labor programs and $1.1
billion in health programs. The Senate also made some cuts but provided $4
billion more than the House's version of the bill. President Clinton stated
that he will veto a bill that fails to address his Administration's major
Based on an early
analysis, the impact on some key Conference priorities is as follows:
Formula Grants (including summer youth employment) - Level funded by
both the House and the Senate at the FY Ô00 level of $1,001 million.
The President requested a $22 million increase for FY Ô01. According to
Conference estimates, even the President's $22 million increase does
not make up for the shortfall of funds due to additional requirements
under the Workforce Investment Act, which calls for comprehensive
services and year-round follow up for all youth served. This level of
funding will result in significant decreases in the number of youth
served, including the number of youth employed in the summer. The
Conference has requested $500 million under WIA in supplemental funding
to address the shortfall of funds needed for this summer to continue
serving 500,000 youth in summer jobs - the same number of youth served
Grants - The House cut $200 million from the President's FY'01 budget
request of $375 million, and the Senate level funded the program at the
FY '00 level of $125 million. These cuts will eliminate expansion of
the program and potentially reduce third year grants to the existing 36
local areas with Youth Opportunity Grants which fund competitive grants
for out-of-school youth, especially in inner cities and other areas
where unemployment rates are high.
Work/Families Win - Both the House and the Senate zeroed out the
President's request for $255 million for a new "Fathers Work/Families
Win" initiative in FY'01 to promote responsible fatherhood and support
working families which builds on the Welfare-to-Work program.
Health and Human
Health Insurance Program (SCHIP) - The Senate deferred $1.9 billion in
SCHIP until FY 2003. This essentially translates a cut for the thirteen
states that will not have SCHIP carryover funds for next year.
Low Income Heating
Assistance (LIHEAP) - The Senate canceled forward advance funding for
YR 2002 appropriations. The funding for FY 2001 remains flat funded at
$1.1 billion as it has been for the past few years.
Teachers/Class Size Reduction - The Senate provides $1.4 billion for
the President's initiative to provide the third installment of the plan
to help schools recruit, hire, and train 100,000 new teachers by 2005
and reduce class size in the early grades. The House provides no funding
for the President's initiative. The President proposed $1.75 billion
for FY Ô01, an increase of $450 million over FY Ô00, which would bring
the total number of new teachers to 49,000.
On May 11, the Senate
approved spending for Labor-HHS-Education appropriations in the full
committee. The House plans a full committee mark-up on May 24. For more
detail on the Labor-HHS-Education appropriations bills look for additional
updates in USMAYOR and contact Conference staff as follows: for Labor and
Education contact Joan Crigger at 202-861-6726, for Health and Human
Services contact Crystal Swann at 202-861-6707.
Return to Previous Page.