On To The 1997 Federal Budget

By Charles Bierbauer/CNN

WASHINGTON (April 30) -- The House Budget Committee hopes to start its "markup" session on the 1997 fiscal year federal budget Thursday. Senate Budget Committee action could also start as early as Thursday, but might slip into next week.

The two houses are trying to sort out as many differences as possible before the committees act to try to shorten the budget process in an election year, Congressional sources say.

It is likely that the budget will be separated into three components: separate "reconciliation" bills for Medicare, welfare and Medicaid, and taxes.

Senate Majority Leader Robert Dole's desire to roll back the 1993 gas tax increase -- 4.3 cents a gallon -- could cause an additional headache. It would mean lost revenues of about $5 billion a year that would have to be offset with spending cuts. If the tax rollback were effective immediately, lawmakers would have to go back into the just agreed '96 budget to offset the cost.

House sources also feel they are willing to cut taxes more deeply than is the Senate. One issue to be resolved is whether the proposed child tax credit should be cut from the original $500 per child proposal to $250 per child per year. That would allow Congress to drop the "sunset" provision in this year's proposal.

House sources also say their budget will continue to seek to close entire federal departments. The Commerce Department will "definitely be in there", a budget committee source says. The House is expected to target the Energy Department and possibly the Department of Education.

A Senate source, however, feels it "will be difficult to close any of them this year." The source said it would be particularly hard to close the Commerce Department following the death of Secretary Ron Brown and other Commerce officials in an April 3 Croatia plane crash.

On To The 1997 Federal Budget

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