In the Shutdown Showdown, A Temporary Reprieve

At the end of this week, hundreds of thousands of workers will be furloughed, agencies shuttered and new government benefits suspended if Congress doesn’t act to reopen cash flow to the federal infrastructure. Rhetorical volleys between Democrats and Republicans in recent days suggest a short-lived agreement is near, and March 4 won’t see the first government shutdown since 1995. But that doesn’t mean the budget impasse is waning.

Last Friday, House Appropriations chairman Hal Rogers and the Republican leadership unveiled a package of $4 billion in cuts that would be tied to two more weeks of government funding. It appears to be a good faith effort to buy more time. If the cuts were stretched out over the remaining fiscal year, the dollar amount would scale to $61 billion, equal to the total amount called for in the House GOP’s ambitiously austere yearlong proposal, thus mollifying dogmatic Tea Party freshmen. But while the scope of the package is unyielding, its contents are largely uncontroversial. Rather than thrust cuts to Planned Parenthood or public broadcasting on Democrats who would undoubtedly reject them, Republicans picked a number of programs that Obama already proposed to nix (or, at very least, didn’t plan to expand). The measure would eliminate $250 million from the Striving Readers program at the Education Department, $650 million to the Federal Highways Administration and a host of agency earmarks, among other snips. There may be a few areas of contention, but the proposal isn’t packed with poison pills that would force Democrats to reject it and give Republicans an opening to blame them for the looming shutdown.

The Democratic response has been mostly positive. Senate Budget Committee chairman Kent Conrad, the Democrats’ lead negotiator, called the package “acceptable” on Sunday. Majority Leader Reid’s office reported he was “encouraged.” Those comments are enough to suggest that the new continuing resolution will pass this week and the deadline to avoid a shutdown will be bumped back to March 18. But the most important thing to understand about these cuts is that this is the easiest it gets. For all the talk of “waste, fraud and abuse” in government, slashing non-security discretionary spending without nicking one party’s priority or another’s is difficult. When it comes to bipartisan agreement, the supply of obvious cuts is quickly exhausted. A successful short-term agreement means very little for the prospects of a lasting deal.

Just consider the origins of the current predicament. Since the beginning of 2011, the federal government has been operating on a crude, temporary continuation of last year’s budget, the details of which were largely mapped out in early 2009. Those spending levels were set long before Democrats passed their sweeping overhauls of health care and financial regulations, Tea Party calls for austerity made waves in the midterm elections, or the depth of the recession and the resulting short-term fiscal crisis were fully known. In light of those new realities, Democratic and Republican priorities further diverged and the two parties found themselves unable to pass a new budget for 2011. Republicans are eager to bleed dry the new regulatory beasts, new GOP members of Congress feel beholden to the Tea Party, and Speaker Boehner’s decision to allow a wide-open amendment process on his party’s budget proposal has put a spate of deep cuts forward that Democrats will never agree to, but that Boehner will be hard-pressed to abandon.

Even as passage of a temporary agreement nears, the same schisms remain. In his weekly radio address Saturday, President Obama tipped his hat to cuts, but mounted a unequivocal defense of some of the initiatives Republicans are bent on eliminating. “I’m willing to consider any serious ideas to help us reduce the deficit – no matter what party is proposing them,” he said. “But instead of cutting the investments in education and innovation we need to out-compete the rest of the world, we need a balanced approach to deficit reduction. We all need to be willing to sacrifice, but we can’t sacrifice our future.” Meanwhile, in the parallel Republican address, Ohio Senator Rob Portman made the case for broader short-term cuts, saying, “Getting our debt and deficits under control is the first step we can take, and the single most important step Washington can take, to get our economy moving and create the jobs we so badly need.”

We know at least one thing from the Republicans’ offer of a continuing resolution and the swift Democratic assent: Both sides are telling the truth when they say they don’t want to see a government shutdown on Friday. But if one looks weeks and months down the road, it’s still hard to see a path they can jointly take to avoid one.

Related Topics: Congress
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  • apr2563

    http://www.nytimes.com/2011/02/27/opinion/27rich.html?_r=1&nl=todaysheadlines&emc=tha212
    .
    Why Wouldn’t the Tea Party Shut It Down?
    .

    That’s not to say there is no fiscal mission in the right’s agenda, both nationally and locally — only that the mission has nothing to do with deficit reduction. The real goal is to reward the G.O.P.’s wealthiest patrons by crippling what remains of organized labor, by wrecking the government agencies charged with regulating and policing corporations, and, as always, by rewarding the wealthiest with more tax breaks. The bankrupt moral equation codified in the Bush era — that tax cuts tilted to the highest bracket were a higher priority even than paying for two wars — is now a given. The once-bedrock American values of shared sacrifice and equal economic opportunity have been overrun.
    .
    These special interests will stay in the closet next week when the Tea Partiers in the House argue (as the Gingrich cohort once did) that their only agenda is old-fashioned fiscal prudence. The G.O.P. is also banking on the presumption that Obama will bide his time too long, as he did in the protracted health care and tax-cut melees, and allow the Fox News megaphone, not yet in place in ’95, to frame the debate. Listening to the right’s incessant propaganda, you’d never know that the latest Pew survey found that Americans want to increase, not decrease, most areas of federal spending — and by large margins in the cases of health care and education.

  • liberalmeltdown

    “But instead of cutting the investments in education and innovation we need to out-compete the rest of the world, we need a balanced approach to deficit reduction. We all need to be willing to sacrifice, but we can’t sacrifice our future.”
    .
    We are going to out compete the $.50 an hr wages of China and Indonesia?.
    .
    Spending is not investment. And the government does not come up with innovation except for NASA and Obama wants to cut the space program.
    .
    Who’s we? Michelle is gonna cut back on vacations? He is going to golf less? Nancy is going to give up her jet. Oops, she had it taken away. One out of three.

  • apr2563

    http://www.nytimes.com/2011/02/26/business/economy/26nocera.html?_r=1&hp
    .
    Shared Sacrifice?
    .
    http://www.nytimes.com/2011/02/26/business/economy/26nocera.html?pagewanted=2&_r=1&hp
    .

    Mr. Mozilo, who had co-founded Countrywide Financial in 1969 — and, for nearly 40 years, presided over its astonishing rise and its equally astonishing fall — would not be prosecuted by the Justice Department.
    .
    .. the Justice Department concluded that Joe Cassano shouldn’t take the fall for the financial crisis either. Mr. Cassano, you’ll recall, is the former head of the financial products unit of the American International Group, a man whose enthusiasm for credit-default swaps led, pretty directly, to the need for a huge government bailout of A.I.G.
    .
    And then there’s Richard Fuld, the man who presided over Lehman Brothers’ demise. Though he was the subject of an investigation shortly after the Lehman bankruptcy, it appears that prosecutors are moving on.
    .
    With the F.B.I. understandably focused on terrorism, there isn’t a lot of manpower left to dig into potential crimes that may have taken place during the financial crisis. Fewer than 150 of the bureau’s agents are assigned to mortgage fraud, for instance. Several lawyers who represent white collar defendants told me that outside of New York, there aren’t nearly enough prosecutors who understand the intricacies of financial crime and know how to prosecute it. It is a lot easier to prosecute people for old-fashioned crimes — robbery, assault, murder — than for financial crimes.

    .
    So the moral of the story is bring down the country’s economy insuring there is a lack of money to prosecute.
    Bail the frauds out.
    Weaken regulations more.
    Give large bonuses all around.
    Blame it all on the middle class and poor. Make them sacrifice.

  • apr2563

    I seem to remember GW fiddling while Rome burned. How many trips to the faux ranch, how many golf sessions?
    .
    As of August 2010:
    Obama has taken 48 days off so far, but at the same point Bush had taken 155. “I haven’t the foggiest idea” if Americans care about Obama’s Vineyard retreat, but the GOP’s decision to make it an issue is just “bizarre.”
    .
    President Bush took, while in office over a period of 8 years was 977 days, or 32% of his total time in office, was spent on vacations or retreats.
    .
    Laura Bush took a 1 month safari in Africa, and also spent time in Budapest, Prague and Paris. I thought those trips were fine, particularly when she took her daughters.
    .
    I’ll give you, President Obama probably plays basketball more than President Bush.

  • http://erieangel.wordpress.com erieangel

    Oh but spending is investment. What got us of the depression if not spending? We can argue about whether it was the jobs program going on prior to our entry into WWII or the war itself; however, the war turned out to be a huge jobs program in itself.
    .
    And when the interstate highways system was built–it was sold to conservatives as an investment in our national security.
    .
    So, how secure is our country going to be if 10% of the population is unemployed? How secure is our country going to be if we don’t have adequate schools? How secure is this country going to be if we don’t enter the 21st century?
    .
    This country is going to he11 in a hand basket and the right doesn’t seem to care so long as the wealthy keep getting their tax breaks.

  • http://patricksartor.wordpress.com patricksartor

    “Spending is not investment.”
    .
    The interstate highway system. national railroads (privately owned but government subsidized since before Lincoln was the president) the Tennessee Valley Authority, the Hoover Dam, improvements to local schools and National Parks are not investments?
    .
    ” And the government does not come up with innovation except for NASA and Obama wants to cut the space program.”
    .
    Outside of NASA we have:
    .
    1) The Internet
    .
    2) the overwhelming majority of computer technology from about 1930 until 1980.
    .
    3) GPS
    .
    4) Jets
    .
    5) Motorcycles
    .
    6) Seat belts
    .
    7) Radios
    .
    8) Walkie talkies
    .
    There was an entire TV show on the History channel about military technology becoming civilian goods.
    .
    NASA brought us: Tang – wonderful. I think I had Tang at a friend’s house when I was six or seven and never wanted to to try it again.
    .
    Sorry, psychiatric meltdown, some spending is investment.

  • http://phd9.blogspot.com Paul Dirks

    “Getting our debt and deficits under control is the first step we can take, and the single most important step Washington can take, to get our economy moving and create the jobs we so badly need.”

    Why isn’t the lede for this article “Senator Rob Portman is willing to destroy the village in order to save it” The immediate effect of the proposed spending cuts will be to tank the recovery and throw more people out of work. The fact that you’ve allowed the phrase “good faith effort” to infect you posts suggests that your willing to swallow a lie wholesale in order to refrain from reporting accurately what the Tea Party agenda actually entails.

    As I said in the last post, 2003 proved that large numbers of people believing something (and reporting it in newspapers) doesn’t necessarily mean that its true.

  • bobell

    Meanwhile, back at the Washington Navy Yard (which is entirely an office complex these days, and that in itself is a very important point, although not the one I’m seeking to make here), the Navy has just deferred another proposed major overhaul to an elderly but stlil needed ship. (This isn’t the first such deferral, but rather the most recent.)
    .
    Funding for the work is in the DOD appriations act for the current fiscal year, but our beloved Congress hasn’t passed it yet — and likely never will. There isn’t enough money for it in the continuing resolution, so it gets “deferred” — which in this case may yet turn out to mean “cancelled” This is one of several examples of deferred maintenance, and it’s degrading our naval capabilities.
    .
    Now maybe our naval capabilities can stand degrading. That’s a debate worth having. But to do it in this essentially invisible fashion doesn’t reflect well on anyone. Why don’t they just pass a ten-year continuing resolution and all go home for the next decade? Oh, and cancel all elections for the next ten years also — it’s not as if they want to lose their jobs simply because they aren’t getting anything done.

  • kbanginmotown

    Adam: There was a little rally in Madison, Wisconsin, this weekend that attracted 70-100,000 protesters during a blizzard. Please let us know who from the Swampland team has been dispatched to cover this event, and when we can expect a first-hand update. We are looking forward to this. Thanks!

  • Ivy_B

    kbang, Didn’t you get enough information from all the coverage in the other media? I really enjoyed not only the coverage on all the tv news shows and newspapers of not only that rally in Madison, but the hundreds elsewhere in the county.
    .
    As someone else said, whenever a half dozen people got together to hold a tea party rally there was always coverage. Thousands on the other side, not so much.
    .
    Of course if they did, it might require they report on the facts of the situation instead of simply saying Walker must cut these pensions (of those greedy workers who bargained for them) to balance the budget, leaving out the fact that the workers already agreed to the financial cuts. They imply that the pension contributions are a gift, instead of part of the worker compensation. The Phila Inquirer mentioned that Gov Christie (the new press man-crush) only budgeted 5% of what the state was obligated to contribute to pensions this year. That’s how the deficit came to be in the first place.
    .
    I suggest they make big cuts in the pensions of those other government workers – legislators and executive branch workers.

  • thethirdcell

    Obviously you took little time to find out the facts. You make wild accusations and can’t back any of it up.

    Maybe you should put on that Fast Food Restaurant uniform and get to work!

  • thethirdcell

    Why aren’t the people on Wall Street that perpetrated the state’s budget crisis by selling toxic derivatives to the tune of $13.4 trillion dollars being prosecuted for this crime? Toxic derivatives have crippled not only the Federal government, but also the pension funds in almost every state. The state’s problems stem from outside sources, not the school teacher who makes $38,000 a year. In Wisconsin the legislature is to blame for the budget shortfall as they gave tax breaks to corporations without considering the ramifications.
    According to the Wisconsin Department of Revenue, two-thirds of corporations in the state pay no taxes, and the share of corporate tax revenue funding the state government has fallen by half since 1981.
    Since the conservatives and Republican Party like to quote the constitution so much, maybe they should read the preamble:
    “We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.”
    I don’t see anything the preamble about corporations, executive pay, Wall Street or the Banks.

  • kbanginmotown

    Ivy: re: Coverage in the other media. It turns out that the news outlet that elevated this story to an appropriate level this weekend was none other than Fox.com:
    .
    http://i.imgur.com/nggzh.png
    .
    Granted, the Fox articles have the expected bias. But, I am puzzled by the media ignoring the WI protests.

  • http://derekg.wordpress.com/ Derek

    “Meanwhile, in the parallel Republican address, Ohio Senator Rob Portman made the case for broader short-term cuts, saying, “Getting our debt and deficits under control is the first step we can take, and the single most important step Washington can take, to get our economy moving and create the jobs we so badly need.”"

    Did he add any detail or facts to support his case?

  • pintortwo

    Why aren’t the people on Wall Street that perpetrated the state’s budget crisis by selling toxic derivatives to the tune of $13.4 trillion dollars being prosecuted for this crime?
    .
    They’re not even getting regulated sufficiently. As Adam says:
    .
    Republicans are eager to bleed dry the new regulatory beasts
    .
    ..meanwhile Obama and the Dems already made sure those “beasts” are little more than kittens. He/they gave too much discretion to regulators appointed by the President. Of course, as re-election donations come in, FOX frames the regulatory debate (always less) and when anti-regulation Presidents are elected, those appointees can chose to allow more of the same shenanigans.
    .
    “And the banks — hard to believe in a time when we’re facing a banking crisis that many of the banks created — are still the most powerful lobby on Capitol Hill. And they frankly own the place.”
    - Sen. Dick Durbin (D-Ill.) (link)

  • fhmadvocat

    While others have chosen to see the glass as half empty, I see a glass that is half full. It is worth noting that the Republicans put forth cuts in programs already proposed by the President. Maybe, we can have a Congress that works together instead of grandstanding.

    Are we likely to readily solve the budget impasse? Not likely with a Republican House and a Democratic Senate. It would be nice if either would be willing to tackle the issue of non-discretionary spending of Medicaid and Medicare. These are the parts that are really eating up the budget.

    I would like to President Obama to at least put forth the recommendations of his deficit reduction commission. We need to be willing to sacrifice, especially those who have enjoyed the boon of the past 30 years.

  • afguy

    WHAT commission recommendations?
    .
    You mean the ones trotted out by the chairmen in that presser? The ones they couldn’t even get the committee itself to endorse?
    .
    What happened to the “14 out of 18 members have to be for it to recommend” requirement?
    .
    You mean THOSE commission recommendations?

  • 3xfire3

    fhmadvocat,
    .
    As usual a good post.
    .
    It would be great if President Obama would take a stronger leadership role especially on the major items such as Social Security, Medicare and Medicaid. He could help himself in the 2012 election if he had the courage to show more leadership on these critical problem areas.

  • shepherdwong

    But, I am puzzled by the media ignoring the WI protests.
    .
    They’ve decided against reporting the raging class war. Apparently, there’s no profit in it.

  • shepherdwong

    What about ALL OF THE UNCERTAINTY!?
    .
    I guess that only counts when your proposing regulations and your a Democrat.

  • http://erieangel.wordpress.com erieangel

    So, Liberalmeltdown, you didn’t respond to my questions about the security of our country if we keep on the track of the far right fringe and tea party.
    .
    We now have an economic atmosphere very similar to what we had leading into the depression. This atmosphere had led to a economic crash in the 1880s and again in the 1890s and finally into the depression. This atmosphere, historically, has proven to be unstable.
    .
    In contrast, the regulations and policies that had been put into place as this country came out of the depression served us well for several decades until the far right, longing for the days of unlimited power and wealth convinced far too many working class Americans their lives would be better if we returned to pre-depression failed policies. Unfortunately, many still believe that is the way to go.

  • http://erieangel.wordpress.com erieangel

    I’ve found the coverage on alternet.com to be very informative. They are one of the only news outlets who are reporting on the protests weeklong.

  • http://erieangel.wordpress.com erieangel

    Facts? Details? Why would he add those when all they’re doing is cutting for the sake of cutting.

  • http://erieangel.wordpress.com erieangel

    Social Security only adds to the deficit when the SSA cashes in one of the many treasury bonds it is holding–those treasury bonds were assigned to SSA when previous administrations–both democratic and republican–raided the trust fund. And it is the interest on those bonds that does the most damage to the bottom line.
    .
    Further, social security is not an entitlement except insofar as I am curently paying into the social security fund and I am entitled to get something back when I retire. Payroll taxes that support social security are not like other taxes which supports all other government spending. I have one voice in how all my other taxes are spent; payroll taxes truly is my money and I am entitled to get it back.

  • liberalmeltdown

    PS, most of the things you list came from the military not from an investment program by the government. Yes the money came from the government, but not any “winning the future” program.
    .
    If we were to build nuclear power plants; now that would be an investment. Little wind farms, not so much.
    .
    And GPS came from the space program. No president micromanaged the space program with a leftist agenda.
    .

    http://thehill.com/special-reports/technology-july-2009/50201-numerous-benefits-of-space-exploration
    .
    Throughout its 40-year history, our space program has set goals that required innovation and technology yet to be developed, and the results have been astonishing. Miniaturized integrated circuits, satellite technology, GPS navigation systems, bone-density measurements, miniaturized heart pumps and other technologies derived from NASA research and development have saved and improved our lives. New spin-offs include water filtration systems that turn wastewater into drinkable water, wireless light switches, remediation solutions for sites contaminated by chemicals, the development of Liquidmetal and sensors on reconnaissance robots used in Afghanistan and Iraq to deal with improvised explosive devices. The list goes on and on.

  • liberalmeltdown

    erieangel, The government has borrowed all the SS money and spent it just like all the general fund money. If we get to the point where we are in so much debt that investors and foreign countries no longer want our bonds, then interest rates will go up. It becomes a vicious cycle which can collapse an economy in a very short amount of time. It has the same effect that an adjustable rate mortgage has on a homeowner. The rates go up and so does the payment. Except the market on our debt doesn’t have a ceiling on how high the rates can go. Paying 20% interest on our massive debt would explode the deficit, making it necessary to sell more bonds.
    .
    You might say that SS has become an entitlement for government. It’s own little piggy bank to raid.
    .
    You want to enter the 21st century? Get real and build nuclear plants. Schools? Local government knows how and where to build schools. Except LA where they spend $30,000 a year per student and graduate 40%. Look it up yourself. That’s going to h@ll in a hand basket and getting fleeced while you’re at it.
    .
    Indiscriminate spending by the Federal Government is not investment. Handing out money here and there just wastes precious resources. Since most of what the consumer buys is made in China; the money goes to manufacturers in China.
    .
    I guess this is what Obama means by Green $$$$
    .
    http://rightwingnews.com/2011/01/california-solar-panel-plant-going-bust-despite-535-m-stimulus-bailout/
    .

    Inconvenient truth for President Barack Obama, California Governor Jerry Brown, Senators Feinstein and Boxer:

    Solyndra Solar Panel plant in Fremont, California has wasted a billion dollars, $535 million of those a direct bailout from U.S. taxpayers, and it is going “bust.”

    The Solyndra Solar panel plant in Fremont, California served as the convenient “backdrop” for Barack Obama’s “green economy” speeches in California, and other campaigning Democrats.

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