Budget Conference Update

No public meetings are currently scheduled for the budget conference committee, but informal talks continue between House Budget Committee Chairman Paul Ryan (R-Wis.) and Senate Budget Committee Chairwoman Patty Murray (D-Wash.) on a top-line number for a 2014 budget. There are indications that the two leaders are close to a short-term deal, as the panel seeks to come up with an accord on FY 2014 spending between the two parties’ figures of $967 billion and $1.058 trillion. The conferees will have 10 legislative days remaining when they return from Thanksgiving recess to formalize an agreement before a Dec. 13 deadline. Outside the fray, Democrats continue to insist that tax increases be part of what they call a “balanced package” that would include spending cuts. Meanwhile, Republicans refuse to consider the closure of tax expenditures outside of a comprehensive tax overhaul and want any new revenue to come through cuts in mandatory spending programs. The consensus remains that the most likely outcome may be a short-term agreement such as a one- or two-year government funding deal that includes some relief from the next round of sequestration for 2014 and budget parameters for 2015. If the two conference leaders do not succeed on a proposal to advance a budget, a government shutdown could become more likely by mid-January. For more information, please contact Brian Lenihan at (202) 547-4733 or lenihanb@agc.org.