The Office of Management and Budget is required to produce a "Mid-Session Review" by July 15 of each year. However, the mid-session budget review has still not been issued.

We reported earlier that Senate Finance Committee Chairman Charles Grassley (R-IA) wanted to delay until September consideration of extending the "middle-class" tax cuts -- marriage penalty, expansion of the 10% income tax bracket, and the $1000 child tax credit -- that will expire on December 31. However, the Bureau of National Affairs (BNA) reported July 12 that House and Senate leaders plan to consider the cuts late this week.

A conservative effort to severely limit domestic programs was soundly defeated in the House last week. The so-called "Spending Control Act of 2004" failed by a vote of 146-268.

The appropriations process for FY 2005 doesn't lend itself well to periodic updates on which bills have been passed and who the winners and losers are. No one is even pretending that the House and Senate will debate and pass any of the 13 separate appropriations bills, or reconcile the two versions in conference -- the normal budget process. Rather, it has been clear from the start that an impossibly tight budget in an election year will dictate the process.