9:25 PM 18 Jun 1998
TO: ACTING DIRECTOR JACK LEW ACTING DEP. DIRECTOR FOR MANAGEMENT ED DESEVE EXECUTIVE ASSOCIATE DIRECTOR JOSH GOTBAUM FROM: OMB LEGISLATIVE AFFAIRS DATE: JUNE 18, 1998 SUBJECT: LEGISLATIVE REPORT Budget Resolution Conference/Tax Cuts: Speaker Gingrich said yesterday "I think the principle that Sen. Lott enunciated of a $60-$70b tax cut is the right idea .... I thought it was a terrific offer and thatO,s what weO,re trying to work out." Gingrich also said he believes that "virtually all" of a $60 billion to $70 billion tax cut could be funded by mandatory program savings without using savings from discretionary accounts. House and Senate conservatives, however, reacted negatively saying they would oppose anything lower the House-passed $101b tax cut. Roth Critical of House-passed Tax Code Termination Bill (June 17, 1998): Senate Finance Committee Chairman Roth yesterday released the following statement regarding the House approval today of legislation that would sunset the tax code by 2003: "I am sympathetic to those who support sunsetting the tax code. I share their great frustration with the complexity of the current code -- complexity, I might add, that Congress and the Administration increase with every tax law enacted. Hqwever, I have serious concerns about sunsetting the tax code without an alternative in place. Doing so would leave businesses as well as individuals unable to plan for the future. For example -- if a family bought a house today, would they be able to deduct their mortgage interest after the current code was sunsetted? would they still be able to contribute to an IRA? How could a business make long term plans, if they did not know what the tax regulations would be? We need to reach a consensus on reforming the tax code, and unfortunately, we are not there yet -- even within our own party . Let's not put the cart before the horse." Deputy Director for Management Ed DeSeve is scheduled to testify on Y2K before the House Reform & Oversight Subcommittee on Government Management on Monday, June 22. DOD Authorization/China Issues: The status of the DOD authorization bill debate next week is in question, pending resolution of whether numerous amendments will be offered related to China. CONGRESS -- TODAY (6/18): SENATE: Passed (98-1) S. 2138, the Energy & Water Development Appropriations Bill, FY 1999 [SAP sent 6/18/98: concern that the $566m increase provided for Corps of Engineers projects has come at the expense of other priority programs.] Began consideration of Agriculture FY99 Appropriations Bill [SAP pending] HOUSE: Passed (225-197), Conference report on HR 2646, the Education Savings Act for Public and Private Schools. (57 votes short of two-thirds necessary to override veto) [POTUS letter sent 6/16/98: POTUS will veto] Adopted (409-10)H.Res. 463 - Establishing the Select Committee on u.S. National Security and Miiitary/Commercial Concerns with the PeopleD,s Republic of China [No SAP] Continued consideration of HR 2183 - the Bipartisan Campaign Integrity Act of 1997. Shays/June/Meehan amendment debated. [POTUS letter sent, 5/20: POTUS supports Shays/June/Meehan substitute] CONGRESS -- TOMORROW (6/19) SENATE: Continue consideration of S. 2159 Agriculture FY99 Appropriations Bill. No roll call votes are expected. [SAP pending] HOUSE: Legislative business to commence at 9am. Continue action on HR 2183 - the Bipartisan Campaign Integrity Act of 1997 [POTUS letter sent, 5/20: POTUS supports Shays/June/Meehan substitute] CONGRESS -- NEXT WEEK SENATE Next Week: S. 2159 Agriculture FY99 Appropriations Bill [SAP under development) S. 2168 VA/HUD FY99 Appropriations Bill [SAP under development) S. 2057 - DoD Authorization (possible) [SAP sent, 5/14: Cites concerns; and Cohen letter in clearance: veto threat on Inhofe/Dorgan amendment) S.2137 Legislative Branch Appropriations Bill [SAP under development] S.2160 Military Construction Appropriations Bill [SAP under development) If UC agreements can be reached, the Senate could consider any of the following measures: Conference report on HR 2646, the Education Savings Act for Public and Private Schools (passed 6/18 in the House 225-197). (possible) [POTUS letter sent 6/16/98: POTUS will veto) S. 1882 - Higher Education Amendments of 1998 [SAP sent 6/16/98: strongly opposes in its current form] S. 1250 - NASA authorization bill [SAP pending: support if amended] H.R. 2610 - National Narcotics Leadership Act of 1997 (ONDCP reauthorization) [SAP sent 11/8/97: no objection but will seek amendments] HOUSE Next Week Monday, June 22 & Tuesday, June 23 The House will begin legislative business at 2pm on Monday and at 10 am on Tuesday and will consider items under suspension of the rules (the list to be determined). No recorded votes are expected before 5pm on Monday. During these sessions, the following bills will be considered: H.R. 4059 - Military Construction FY99 Appropriations [Rules SAP sent 6/18/98] H.R. 4060 - Energy and Water Development FY99 Appropriations [Rules SAP sent 6/18/98] H.R. --- Treasury and General Government FY99 Appropriations (subject to a rule) [SAP under development] Wednesday, June 24 and Thursday, June 25 Legislation business will commence at 10 am on Wednesday and subject to rules being granted, will consider the following: .H.R. Department of Defense FY99 Appropriations [SAP under development] H.R. Agriculture, Rural Development, FDA, & Related Agencies FY99 Appropriations [SAP under development] H.R. Legislative Branch FY99 Appropriations [SAP under development] Friday, June 26 The House will not be in session and will be in recess through July 13th.