To Members of the NASULGC System:

Fiscal Year 2006 comes to a close tomorrow and both the House and Senate plan to adjourn without completing action on most of the F.Y. 2007 appropriations bills. Before departing for their five-week pre-election recess, both houses are expected to pass the DHS and DOD spending bills and a continuing resolution to keep the rest of the federal government operating through mid-November.

As you are aware from our previous communications, the House approved its version of the F.Y. 2007 Agriculture Appropriations bill on May 23 and the Senate Appropriations Committee reported its version of the bill on June 22. However, because the full Senate has yet to take up the Agriculture funding measure, the legislation has been in suspended animation for more than 90 days.

It is unclear when the Senate will take up the bill, thereby clearing the way for a joint House-Senate conference committee to reconcile the two versions of the legislation. Many different scenarios could play out after the November 7 elections, depending mostly upon whether or not the Republican Party retains its majorities in the House and/or Senate. (Of course, even if control of one or both chambers were to switch to the Democrats, that would not occur officially until after the 110th Congress convenes in early January 2007.)

We continue to be well positioned for success in the F.Y. 2007 appropriations process. Our collective efforts have resulted in recommendations for significant increases in NASULGC priorities in both the House and Senate Agriculture Appropriations bills. You may view our summary of these provisions at: www.nasulgc-bac.com/documents/FY2007/Senate_FC.doc

At this juncture, there is little more any of us can do to further improve our position in the F.Y. 2007 appropriations debate. In addition, with regard to the F.Y. 2008 budget/appropriations cycle and the upcoming Farm Bill debate, your advocates in Washington have been busy preparing for the battles that lie just over the horizon.

As soon as there is additional news on the F.Y. 2007 appropriations front, we will be sure to share it with you immediately. Until then, as they say in Chicago: "Vote early and vote often."

The Cornerstone Team