Thursday, March 3, 2011

Government shutdown: If not now ... maybe later?

House offers breathing room, but sidesteps big issues

By David Lightman, William Douglas and Margaret Talev

House Majority Leader Eric Cantor, R-Va., speaks with Capitol Hill reporters Tuesday amid congressional action to avert a government shutdown starting Saturday. The House voted to keep the government running until March 18; the Senate votes today or Thursday. (Associated Press: J. Scott Applewhite)

WASHINGTON — Tuesday's vote in the House to keep the federal government funded for two weeks is the first step toward averting a government shutdown Saturday, but it leaves the major differences between Republicans and Democrats over taxes and spending unresolved.

It also leaves tremendous uncertainty about what may happen next — whether the government will shut down this month, or next, for want of money, and whether the opposing sides can devise a long-term plan for cutting the national debt.

Tuesday's vote is little more than "kicking the can down the road," said veteran budget analyst Charles Konigsberg.

The House voted 335-91 to keep the government running until March 18, while cutting $4 billion. Voting yes were 231 Republicans and 104 Demo-crats; six Republicans and 85 Democrats voted no.

The Democratic-run Senate plans to vote today or Thursday on the two-week funding plan. Unless it passes, government funding runs out Friday. But Senate Majority Leader Harry Reid said Tuesday that he expects the bill to go to President Barack Obama for his signature in the next 48 hours.

The House last month approved $61 billion in cuts through the rest of fiscal 2011, which ends Sept. 30, but the Senate is unlikely to concur, leading to the two-week temporary solution while they seek common ground on the rest of the fiscal year.

Ultimately, the fight over short-term spending is the year's first act in a more consequential drama — how to

reduce federal debt over the long term. So far, lawmakers have concentrated only on cutting nonmilitary domestic discretionary programs that make up only 12 percent of the budget.

They haven't touched the big-money programs that drive up budget deficits — Social Security, Medicare, Medicaid and defense — not to mention possibly raising taxes to help end deficits.

But lawmakers face two looming deadlines: The federal authority to borrow will run out this spring, and fiscal

2012 begins Oct. 1. Both deadlines will force Congress to confront tax and spending choices again.

The longer lawmakers deal with this year's spending, the less time they'll have to craft a serious plan to address long-term issues, said budget analyst Stan Collender.

Another worry is that this short-term debate will stiffen both sides, making later negotiations more difficult.

"We're frustrated that there's such a hue and cry over a very small part of the budget. It reinforces the perception that the problem is just waste, fraud and abuse," said Robert Bixby, executive director of the Concord Coalition, a budget watchdog group. "In some ways, it's a substitute for a more serious budget debate they need to have."

Rep. Jason Chaffetz, R-Utah, said he backed the two-week measure, but his patience is ebbing.

"It's going to get tougher, not easier," he said. "There are some of us out there who won't play this game of $4 billion every two weeks."

Few appeared eager for a shutdown — or at least for being blamed for one.

"The goal of House Republicans is not to shut down the government, but to rein in the out-of-control spending that is devastating our economy," said Rep. Renee Ellmers, R-N.C.

Rep. Scott DesJarlais, R-Tenn., said "It would never be our goal to shut the government down." But he said he and other GOP freshmen are "going to continue to push for what we were elected to do — cut spending."

The White House suggested Tuesday that doubling the length of the temporary fix to four weeks and the spending cuts in that time to $8 billion. But House Speaker John Boehner, R-Ohio, rejected the idea, saying it should have been floated sooner, not the day of the vote.

White House press secretary Jay Carney said the administration thinks a shutdown — or constant threats of a shutdown — would hurt the economy and anger voters. He said President Barack Obama doesn't want "a toll booth, where we are negotiating again and again on continuing resolutions to fund the government for two weeks or another short-term period.

"There may be a process where we do that once or twice," Carney said, "but the focus needs to be on the longer-term deal."

The two-week extension would expire on the eve of Obama's planned five-day visit to Brazil, Chile and El Salvador.

If congressional negotiators can't agree by then on a new funding measure, that would put the president in a bind. On the one hand, if the government shuts down, he'll feel obliged to stay home to manage things.

But if he does that, he'll risk offending foreign partners. Obama twice had to cancel departures for Indonesia last year because of domestic events — first the congressional fight over his health care expansion and later the oil spill in the Gulf of Mexico.

This report includes information from the Associated Press.

Source: http://www.twincities.com

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