With reconciliation moving full steam ahead, Sen. Kent Conrad (D-ND) of the finance committee commented, "I have never felt that a budget going through the Congress of the United States is more disconnected from reality than this budget." It truly is disconnected -- the Senate Budget Committee yesterday approved a spending blueprint which would cut $39 billion from mandatory programs over the next five years. Overall the bill would actually produce $71 billion in gross savings, but would put about $32 billion of those savings back into new spending.

The legislation will likely be considered on the House floor next week. House Republican leaders are currently still working to put together 218 votes for support for a larger $50 billion plan. Some Republicans, including Ways and Means Committee Chairman Bill Thomas (R-CA) have privately expressed frustration to House leaders over the increased spending cut targets. Ways and Means, for example, is now being pressured to cut $8 billion, which is up from $1 billion in the original FY06 budget resolution.

House and Senate appropriators have mapped out a plan for finishing work on all 11 appropriations bills before Thanksgiving, however there is some speculation that reconciliation will force GOP leaders to work slowly on appropriations to keep pressure on members to stay in town into December to complete other unfinished business.

Congressional conferees are expected to wrap up work on the FY 2006 Agriculture spending bill this week, and if all goes according to plans, appropriators may complete negotiations on a $30.5 billion FY06 Energy and Water bill this week. The week of November 7 they are hoping to complete work on the Defense spending bill (including $50 billion for overseas military operations), as well as the Science-State-Justice-Commerce and Military Quality of Life measures. Their ambitious plan also includes passage of the Labor-HHS and Transportation-Treasury bills the week before Thanksgiving, as well as a short-term continuing resolution (the current CR expires Nov. 18) to give President Bush time to sign remaining spending bills into law. We'll see if they will actually be able to come to a consensus on reconciliation and tackle all of this approps work in the weeks ahead.

The House will set to work on the reconciliation budget bill tomorrow, with markups in eight separate committees. The Energy and Commerce Committee will be looking to trim as much as $12 billion from Medicaid over five years. These cuts could be problematic for some members of the Energy and Commerce Committee Republicans such Rep. Heather Wilson (R-NM), who was responsible for sending a letter to Budget Committee Chairman Jim Nussle back in April, asking him to remove reductions to Medicaid in the reconciliation instructions. The letter was signed by 43 other Republicans, including former leader Tom Delay, Speaker Dennis Hastert, and House Whip Roy Blunt. The cuts to Medicaid which would be included in the House budget reconciliation bill would, unlike the Senate Finance Committee proposal, hit Medicaid beneficiaries directly.

The House reconciliation instructions will also look at ANWR, offshore drilling, and LIHEAP funding. According to BNA, on Wednesday and Thursday of this week two House committees "plan to mark up language that would open the Arctic National Wildlife Refuge, expand offshore oil and gas exploration, and increase federal assistance to low-income families that need help paying their winter heating bills." Opening the ANWR coastal plain to oil and gas leasing is projected to raise $2.4 billion over five years (although this money is not guaranteed), yet will have a number of environmental consequences and do little to alleviate national dependancy on oil.

House Energy and Commerce Committee Chair Joe Barton (R-TX) also plans to ask for an extra $1 billion to fund LIHEAP, which provides heating and cooling assistance to one out every five American families. In the Senate there have been two amendments to increase LIHEAP funding by $3.1 billion. Each of the two votes, which were procedural, have been rejected; however in anticipation of a 50 percent increase in heating bills many will be experiencing this winter, it is almost certain funding will go up significantly. The White House is expected to request a third supplemental spending bill for hurricane recovery by the end of this week, and that could potentially be a vehicle through which LIHEAP funding could be increased.

Colorado's harmful Taxpayer's Bill of Rights (TABOR) -- which has contributed to a significant decline in the state's public services over the last decade -- will be at the mercy of voting Coloradoans November 1. They will have the opportunity to vote on "Referendum C," which, according to the Center on Budget and Policy Priorities, "would allow the state to spend all revenues it collects under current tax rates for the next five years, even if those revenues exceed TABOR limits." The Referendum is supported by many individuals and groups, including business leaders, children’s advocates, Republican and Democrat legislators, the Denver Chamber of Commerce, and the conservative Colorado Springs City Council.

A new CBPP report, "A Formula For Decline: Lessons From Colorado for States Considering TABOR," outlines the consequences other states would face if they instituted TABOR-like restrictions on their spending. TABOR, year after year, has created a maximum expenditure level in Colorado that is below what is needed for many programs, and the funding cuts have had severe effects on Colorado schools, health care programs, and other vital services.

It appears Republicans are laying the groundwork to positively spin the possible collaspe of support for an amendment to the budget resolution that would increase cuts to entitlement programs from $35 to $50 billion over the next five years. As of today, it appears the House leadership still does not have the 218 votes necessary to pass the amendment.

Undetered, acting-Majority Leader Roy Blunt (R-MO) declared today, "Our chairman, frankly, can do [these additional cuts] without a vote and are moving forward." He added, "I don't think the Conference is divided at all. I think we have a plan. The question is: At what point do we bring that plan to the floor."

Yet Blunt did not elaborate on how he thought the leadership would be able to pass the actual reconciliation bill with $50 billion in cuts (whenever they decide to bring it to the floor) if they could not muster the suppoort for an amendment that is merely a verbal committment to pass the cuts. It is possible to use a tactic favored by this leadership group, which is holding the vote open for extended periods until they twist enough individual arms and offer enough consessions and sweateners to get the votes they need. Democracy at its finest!