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� �� .� D.C. UPDATE from page 1 . . .... .... . ... . .... .... . .... . ... ..... . ... . . FY 2005 Appropriations Conference negotiations on a six-year bill have stalled over two major issues—the overall On September 29, the House and Senate price of the bill, and the "donor-donee" issue. passed a Continuing Resolution (CR), H.J. Res. Shortly before the previous extension expired on 107, which will fund all federal programs through September 30'', conferees were close to an November 20, 2004. Of the thirteen appropria- agreement on a$299 billion TEA-3 bill. How- tions bills Congress must pass annually, only two ever, Senate Democrats enlisted the support of have been enacted—the FY 2005 Defense Appro- several key Republicans in opposition to any priations bill and the FY 2005 District of Columbia funding level lower than $318 billion, a number Appropriations bill. Prior to this week's adjourn- that the Administration has threatened to veto. ment, House and Senate leaders hope to complete conference on three of the remaining twelve FY Meanwhile, conferees are trying to deter- 2005 Appropriations bills—Homeland Security; mine if they can come up with a way to ensure Military Construction; and Foreign Operations. that states receive in highway aid at least 95 cents of every dollar they pay in federal gaso- The FY '05 Homeland Security Appropriations line excise taxes, without penalizing states that bill is currently stalled, as House and Senate have historically received far more than they leadership debate whether or not to attach an contributed (the "donor/donee" debate). Staff Internet tax moratorium amendment by House members continue to work on a plan with the Judiciary Committee Chairman James goal of appeasing both sides. Sensenbrenner. On October 7, the League and the California State Association of Counties Homeland Security Grant Reform (CSAC) sent a joint memo to the Appropriations Committee, opposing Chairman Sensenbrenne�'s The House and the Senate this week consid- amendment. (See League-CSAC memo, p.�. ered legislation to implement portions of the 9/ 11 Commission recommendations relating to Other outstanding issues are the PresidenYs intelligence and homeland security reform. The $10.2 billion hurricane relief bill, and a$3 billion House version, H.R. 10, contains provisions drought relief package to it. Congressional lead- similar to H.R. 3266, the "Faster and Smarter ers are optimistic about the bill's passage before Funding for First Responders" bill introduced by adjournment. Homeland Security Chairman Christopher Cox. There are eight remaining FY 2005 Appropria- The Cox proposal would change the method tions bills that have not been cleared: Transporta- for allocating the State Homeland Security tion, Treasury; VA-HUD; Labor, Health and Human Grant, Urban Area Security Initiative, Law En- Services, and Education; Commerce, Justice, forcement Terrorism Prevention Program, and State; Energy and Water; Interior; Agriculture; and Citizen Corps funds. Under the bill, the Depart- Legislative Branch. These wilf likely be rolled ment of Homeland Security (DHS) would distrib- together in a multi-bill omnibus measure and ute funds to states or regions based on assess- considered during the lame duck session. ments of terrorist threats and critical infrastruc- ture. Each state would continue to be assured TEA-21 Reauthorization of a minimum level of funding, but the minimum level would be lowered to 0.25% of total funding, On September 30, Congress passed H.R. except that states with a'significanY interna- 5183, extending federal highway and transit tional border would receive at least 0.45%. programs another eight months through May 31, 2005. House Transportation and Infrastructure Under the current allocation formula, DHS Chairman Don Young pledged to continue his first allocates 0.75% of total funding to each Committee's efforts to pass a six-year bill in the state and then allocates remaining funds on a interim. Continued on Page 8 Visit the League's Official Web Site -- www.cacities.org PRIORITY FOCUS/PAGE 7 ... , _ .�.. .