Congress Fails To Fund Key U.S. Agencies

By GINGER ADAMS OTIS

ROBERT BYRD: Stop hosing vets.

The inability of Congress to finalize nine appropriations bills before the close of this year's legislative session has left the fate of several Federal agencies, as well as state and city projects, up in the air until later this month.

The outgoing Republican-led Congress managed to approve and pass appropriations bills for the Department of Defense and the Department of Homeland Security two weeks ago, but left nine bills that determine funding for other agencies for the new Congress to finalize.

IRS, Social Sec. in Mix

Affected agencies include the Internal Revenue Service, the U.S. Department of Veterans' Affairs, the Social Security Administration and those controlling housing, urban affairs and other civilian issues.

Congress already set a cap of $872 billion for Fiscal Year 2007 to fund all 11 appropriations bills, considered an "austere" amount by Washington insiders.

The last time Congress failed to approve the appropriations bills needed to fund government functions was more than a decade ago, and it resulted in a temporary shutdown of Federal agencies.

COLLEEN M. KELLEY: Workers left hanging.

A Capitol Hill source said that there are traditionally one or two appropriations bills that get left behind and have to be finalized at the start of the incoming Congressional Session every year. But to have nine out of 11 unfinished was "unprecedented," he said.

As a stop-gap measure until lawmakers return Jan. 4, the outgoing Congress voted through a continuing resolution valid through Feb. 15 that says Federal agencies can continue to operate at 2006 funding levels.

In a joint statement released Dec. 11, Sen. Robert Byrd (D-W. Va.) and U.S. Rep. David Obey (D-Wash.) said they plan to extend the resolution until the end of the current fiscal year.

Senator Byrd, the incoming Chairman of the powerful Appropriations Committee, and Congressman Obey, his House counterpart, also said they would not support any "earmarks" from lawmakers through Sept. 30.

Earmarks are requests for funding for state and municipal projects that elected officials try to get tacked on to appropriations bills as a way to steer money toward issues of importance to their constituents.

Press for Reform

That will strip close to 10,000 projects totaling nearly $17 billion out of the nine still-to-be-finished appropriations bills that await Senator Byrd and Congressman Obey in January. The lawmakers also said they would only support a return to earmarks once a "reformed process is put in place," including "new standards for transparency and accountability."

The lack of a fixed budget for government spending is a sizeable hurdle that the incoming Congress will have to maneuver around to avoid falling behind the fiscal schedule.

President Bush is slated to submit his budget for Fiscal Year 2008 - which begins Oct. 1 - to Congress during the first week of February 2007. Among other things, he's expected to ask for more than $100 billion to fund fighting in Iraq and Afghanistan.

'Operating in Limbo'

A Capitol Hill aide who spoke on condition of anonymity noted that Fiscal Year 2007 began 2-1/2 months ago, "so we are already well into the fiscal year without state and local governments having any sense of what kind of funds they can allocate for projects - it leaves everyone operating in great limbo, and it's just a poor way to govern."

Specific concerns have already been raised about the Department of Veterans' Affairs. The VA medical system faces a $3-billion funding shortfall, and if it doesn't receive an increase in budget, it won't be able to continue servicing veterans, officials have said.

Senator Byrd, who met with Bush Administration officials Dec. 11, was critical of delays that placed veterans' care in jeopardy.

"Veterans paid for their health care at Iwo Jima, at the Mekong Delta, at the Chosin Reservoir, at Fallujah, and at so many other locales. They should not be expected to sacrifice yet again," he said in a statement posted on his Web site.

Hand in Their Pockets

Under the Bush Administration, veterans have been asked to pay enrollment fees for programs and make higher co-payments for prescriptions, and some have even found their access to medical care blocked by new policies, he added.

The U.S. Office of Personnel Management that oversees cost-of-living adjustments for civilian Federal workers hasn't been able to set increases for 2007 due to Congressional delay.

The appropriations bill that decided Department of Defense funding included a 2.2-percent increase for military workers.

Colleen M. Kelley, president of the National Treasury Employees' Union, which represents more than 90,000 Federal employees, said the failure of the outgoing Congress to conclude its legislative business hurt government workers.

"One of the appropriations bills left unfinished would provide a 2.7-percent pay increase for Federal employees but, instead, a 2.2-percent alternative pay plan put forth by the President will go into effect in January," she said. "Under the President's plan, roughly half the Federal work force would receive an increase of only 1.7 percent, and would bear the brunt of the lowest Federal pay raise in 18 years. When the 110th Congress convenes in January, NTEU is prepared to continue working for passage of a 2.7 percent increase for all Federal employees."