NYSACRA

 The state budget process moved into high gear on Monday as both houses of the NYS Legislature made their proposals public, passing bills that called for spending more in education and health care while cutting taxes further.  However, the Senate and Assembly plans are different.  Conference Committees have been formed and began meeting on Monday to begin ironing out their differences so they can try to pass a budget by the April 1st deadline.  The Senate's $111.8 billion proposal includes $1.5 billion in tax cuts this year, with most of the money going to reduce local property taxes.  The cuts would reach $6.4 billion over three years.  The Assembly put forward $2.4 billion in tax cuts over three years in its $112.4 billion budget proposal.  The Assembly's budget continues the Medicaid "wraparound" Pharmacy Coverage for the Dual-Eligible population through April 30, 2007.  Speaker Silver noted that this action is necessary due to the federal government's chaotic administration of the Medicaid Part D program.  Additionally, the Assembly's budget delays the Governor's proposed implementation date for mandatory enrollment of low-income EPIC (Elderly Pharmaceutical Insurance Coverage) enrollees in Medicare Part D from July 1, 2006 to February 1, 2007.  The Assembly also provides $2 million for education, outreach, counseling and advocacy services for Medicare Part D eligible individuals who are also eligible for EPIC and Medicaid.  The NYS Senate budget extends Medicare Part D prescription coverage for seniors to December 1, 2006 instead of July 1, 2006, as proposed by the Governor.  In a statement, Governor Pataki, who is recovering from an appendectomy, praised the Legislature for moving to pass a budget on time, but criticized the proposed spending increases and complained that lawmakers rejected almost all of his proposed cuts.  His budget director said the spending increases in the proposals were even higher than what the Legislature had calculated.  More details will follow as the two houses come to an agreement.

   The U.S. Senate is taking key votes on amendments to the fiscal 2007 budget resolution that could increase education spending and restore pay-as-you-go budget enforcement rules.  Democrats offered a $6.3 billion increase in the proposed $873 billion fiscal 2007 discretionary spending cap to boost funding for education programs, reversing many of the cuts proposed in President Bush’s budget.  The amendment assumes the increased spending would be paid for by closing “corporate tax loopholes and tax shelters” that the Senate has previously voted to eliminate.  It is similar to an amendment adopted by the Senate last year on a 51-49 vote that was later stripped out in conference with the House.  Republican senators are considering amending debt limit legislation to include new line-item veto authority proposed last week by President Bush.  The U.S. House and Senate will adjourn for a weeklong St. Patrick’s Day recess on Friday.