House and Senate Budget Committees Move Forward

This week, House Republicans and Senate Democrats began the process of moving their respective fiscal year (FY) 2014 budgets.  In the House, Budget Committee Chairman Paul Ryan passed his budget out of committee late Wednesday night on a party-line 22 to 17 vote. All committee Republicans voted for the FY 2014 plan, which now heads to the full House for floor consideration next week. The Ryan budget provides an ambitious plan to balance the federal budget and have a $7 billion surplus in 10 years.  To get there, the budget cuts $5.7 trillion – compared to the Congressional Budget Office (CBO) baseline – repeals ObamaCare, and lowers the top tax rate to 25 percent.  Unfortunately, the budget does not include a “reserve fund” that would allow transportation spending to rise above what the Highway Trust Fund (HTF) brings in each year if lawmakers agree to additional funding. A similar provision was in the budget last year.  In addition, the budget also states that general fund transfers into the HTF be offset just as they were in MAP-21.  To read the Ryan budget, please click here. In the Senate, Budget Chairwoman Patty Murray (D-Wash.) is expected to pass the Democrats’ budget out of her committee later this evening by a party-line vote.  The Senate budget – the first in 4 years -takes a much different tact than the House.  It says nothing about balancing the budget; instead, it would impose tax increases by eliminating certain deductions.  The Senate budget also calls for a $100 billion stimulus for infrastructure development and job training, as well as the creation of an infrastructure bank.  The Senate Budget Committee plan can be found here. The House and Senate budget will be considered on the respective floors next week, where they will likely pass on party-line votes. If you have any questions, please contact Sean O’Neill at oneills@agc.org or (202) 547-8892.