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. The House GOP has been very critical of the Senate version of the budget resolution because it did not cut spending deeply enough. Two amendments adopted on the Senate floor March 17 only increased the contempt of the House. Sen. Gordon Smith’s (R-OR) amendment to protect the Medicaid program from $15 billion in cuts and Sen. Ted Kennedy’s (D-MA) amendment to raise the discretionary spending ceiling by $5.4 billion will be major obstacles to be negotiated during the conference committee and may threaten the bill entirely. Both resolutions are fiscally irresponsible and threaten the fiscal health of the United States. By solidifying large deficits for years to come, the Senate budget resolution would further weaken the ability of the federal government to meet the great variety of spending priorities affecting millions of Americans in communities across the country. The chart below summarizes the major aspects of the bills. For more detailed information on the budget resolution debates in the House and Senate, read these analyses:

• Smith, Kennedy Amendments Could Doom Budget Resolution
• Despite Compromise, House Conservatives Could Threaten Budget Resolution