With the support of Senator Susan Collins, the U.S. Senate has approved the conference report, or the final version, of the fiscal year 2008 budget resolution. Similar to the Senate version of the bill, the budget includes funding to expand the teacher tax credit, which was originally created by Senator Collins. In addition, the budget restores funding for the Low Income Heating and Energy Assistance Program (LIHEAP); it increases funding for vital first responder grant programs; and it increases funding for the Childrens’ Health Insurance Program, SCHIP.
Following final passage, Senator Collins released this statement:
“This measure is by no means perfect. But the conference report retained a number spending provisions that I support and have worked for. For example, this budget resolution includes an expansion of the teacher tax deduction, which I originally authored; it provides increased funding for health insurance for low-income children; it restores funding for the LIHEAP program; it provides more funding for vital first responder grant programs; and it increases funding for veterans’ health care. In addition, it increases funding for the National Institute of Health, the Centers for Disease Control and Prevention, and community health centers.”
“I would however, have preferred the Senate version provisions for tax relief for middle- income families. But on balance, this budget deserved my support,” added Senator Collins
Specifically, the budget includes Senator Collins’ provision to expand the “teacher tax deduction” from $250 to $400 annually to provide some relief to teachers who spend their own money on school supplies. The provision would also allow teachers to deduct costs associated with professional development expenses, and it would make the tax credit permanent. Senator Collins authored the original bill that created the teacher tax credit.
The budget also includes a provision coauthored by Senator Collins that would provide $3.2 billion in funding for the LIHEAP program—an increase from the amount that was in the original budget proposal.
Senator Collins, along with Senator Lieberman, was also successful in her effort to restore $731 million funding for vital first responder and emergency planning grants.
Other highlights of the budget include:
- Increased funding for NIH, CDC, and community health centers.
- $1.5 billion additional funding for environmental and natural resource programs including the EPA, the Clean Water State Revolving Fund, and Drinking Water State Revolving Fund.
- The resolution provides $50 billion for SCHIP over five years, which will help better meet the needs of uninsured children.
- Increased funding for the Veterans’ Benefits Administration by $70.3 million to address backlogs in the claims process.
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