March 23, 2007

House and Senate Budget Committees Clear FY 2008 Budget Resolutions

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 Senate 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.

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

On March 22, The House Budget Committee passed its FY 2008 Budget Resolution, which includes $54.246 for Function 550. This is a 4.1 percent increase over the final FY 2007 amount, but not as high as the 5.2 percent increase provided in the Senate Budget Resolution. Nevertheless, this increase is double the Congressional Budget Office's 2.1 percent FY 2008 inflator .

For more information on the House and Budget Resolution, please review the Chairman's Summary and Tables.

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