March 19, 2007

FY 2008 Budget Resolution Clears Senate Budget Committee

The FY 2008 Budget Resolution (S. Con. Res. 21) passed by the Senate Budget Committee on March 15 includes $54.815 for Function 550 (public health) discretionary Budget Authority. This is a 5.2 percent increase over the final FY 2007 amount of $52.098. While not the 7.8 percent increase the health community is seeking, it is better than the overall domestic discretionary amount provided in the measure, which is a 4.2 percent increase over FY 2007.

The Budget Resolution also includes a number of budget-neutral reserve funds that require offsets, including cuts in other federal programs or revenue increases. Specifically, one fund reflects the interest of the committee in creating a "new federal or public-private entity" to conduct comparative effectiveness research-where pharmaceuticals, medical devices, and medical procedures used to treat the same conditions are evaluated for their relative safety, effectiveness, and cost. The Agency for Healthcare Research and Quality (AHRQ) currently conducts this research, as authorized under the Medicare Modernization Act.

Adoption of the Budget Resolution does not require Congress to act on the priorities recommended through these reserve funds; it provides only a blueprint should Congress pursue these priorities in FY 2008.

The House Budget Committee is expected to mark up its Budget Resolution this week.

For more information, please review the Committee Print and Tables.

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