Nearly one month into the 2012 fiscal year Congress has yet to finalize any of the 12 annual appropriations bills that are necessary to fund federal operations. But the House and Senate did avoid the prospect of a government shutdown last month (at least temporarily) when they approved a continuing resolution (CR) to fund the government at a reduced level through November 18, to buy more time to agree on a final spending plan. Under the terms of the CR, all government agencies are being funded at a level 1.5% below their final FY11 allocations.
Some Capitol Hill observers predict that a final FY12 spending deal will not be reached until after Thanksgiving, when the congressional Supercommittee faces a deadline of submitting a plan to reduce federal spending by $1.5 trillion over ten years beginning in 2013. While the Supercommittee proposal will not directly impact FY12 spending, some members of Congress may wish to use it as a template for cutting the budget in this fiscal year.