The House and Senate passed separate versions of the fiscal year 2006 (FY06) budget resolution last week that would allow for additional tax cuts, mostly targeting wealthy families, while cutting back on spending for programs that serve middle- and low-income America. A split within the GOP ranks may spell trouble for reconciling the two budget resolutions, and, as with the current year, would mean Congress would operate without a budget blueprint.

With the proposed markup date for the budget resolution set for March 9, behind the scenes negotiation involving the budget committee chairmen and members of Congress was in full swing last week and through the weekend. Senate Budget Chairman Judd Gregg (R-NH) and House Budget Chairman Jim Nussle (R-IA) have spent the last few weeks soliciting input from members. While details are still vague, there are some initial indications of the shape and scope of the resolution.

President Bush’s release of his budget proposal on Feb. 7 confirmed widespread speculation that its contents would prove unfavorable for a number of important agencies and social programs. The president stated many times in the weeks leading up to the budget release that his proposal for fiscal year 2006 (FY 06) would be “tough.” In a bold effort to cut our national deficit in half — the same deficit which is mostly the result of his costly tax policies — Bush proposed slicing and dicing funding for many domestic programs, which would result in the termination of some.

The President’s budget that was released on Feb. 7 is not just austere; it is also frighteningly bleak for nonprofit groups and the people and causes they serve. The President has manufactured a fiscal crisis with massive tax cuts, mainly targeted to the wealthy, that has resulted in federal revenues being reduced to the lowest levels since the 1950s as a percentage of our economy. Cutting revenue to that level means there is drastically less money to fund programs that address community and human need problems, a core function of many nonprofits.