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Federal Update: 11 Oth Congress Begins Second Session The U.S. Senate and House of Representatives reconvened this week for the second session of the 11 Oth Congress with an agenda dominated by the economy. Leaders from both houses hope to collaborate with the Administration to develop a bipartisan economic stimulus package. This issue along with health care, energy and the environment are expected to be top issues in Congress as well as at the forefront of the presidential campaign in the coming year. Below is an update on federal budget issues followed by a recap on housing, public safety, water. eminent domain and internet legislation the league has been tracking in both houses of Congress_ Appropriations for FY 2008 and 2009 The extended appropriations negotiations late last year between Congress and the Administration. for the fiscal year that started Oct. 1 produced mixed results for local government. The final multi- bill appropriations package, P.l. 110-161, included $578.233 million for the Community Oriented Policing Services (COPS) program. This is $45.233 million more than what was appropriated in FY 2007, but $120 million less than the House and Senate proposed for the program for this year. The omnibus spending bill signed by President Bush in December also included $3.6 billion for the Community Development Block Grant (CDBG) program, which is $100 million less than last year and $600 million more than the President proposed this year. The FY 2008 budget negotiations were lengthy because of disagreements between Congress and the Administration on appropriate spending levels for domestic programs. Initially, Congress proposed to spend 2.5 percent more than the Administration on domestic programs and the President vowed to veto any spending legislation that exceeded his proposed budget. When Congress ultimately agreed to the President's total FY spending level of $933 billion, they chose to steer funding into programs which they determined had the greatest need. The release of President Bush's proposed FY 2009 budget on Feb. 4 is just the beginning of the federal budget negotiation process, which similar to FY 2008, will be difficult and fraught with partisan differences. After the President's proposal is released, Congress will begin reviewing the budget and setting its own spending priorities for the upcoming fiscal year. It is extremely likely that Congress' budget agenda may not align with the White House's due to partisan divisions. The League will continue to monitor federal budget issues as they relate to local government in the coming months. Updates will be issued through Priority Focus and the Web site at www,cacities.or~. 2007 Legislative Recap Congress will return to work this year on several pieces of key legislation being closely tracked by the League. This legislation includes: The Energy Independence and Security Act of 2007 In December, the President signed this legislation (P.L. 110-140) into law, which includes a provision to authorize the Energy Efficiency and Conservation Block Grant program at $2 billion annually through FY 2012. The program would provide grants to states and local governments to help reduce fossil fuel emissions, reduce energy usage, and improve energy efficiency in transportation, building, and other appropriate sectors. Appropriated funds would be split into two primary portions, with 68 percent of funds allocated to local governments and 28 percent of funds allocated to states, including DC, Puerto Rico, and territories and possessions. The remaining 4 percent would be split between Indian tribes and 9A Page 11 4