Tuesday, April 05, 2011

Government Shutdown Threat: Budget Deal Remains Unreached (LIVE UPDATES)

from ChaoticFate.com by qew

http://www.huffingtonpost.com/2011/04/05/government-shutdown-threat-deal-unreached_n_845014.html

First Posted: 04/ 5/11 12:07 PM ET Updated: 04/ 5/11 06:17 PM ET

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WASHINGTON--Washington is hurtling toward a government shutdown on Friday night as the time to agree on a budget for the remainder of the fiscal year grows very short.

Because of Senate rules, Democrats could be forced to break two GOP filibusters in order to pass a spending bill, and each vote requires a 30-hour delay. Government funding expires on Friday night, meaning that if negotiators don't reach a deal by the end of today or early tomorrow, just one Republican senator could stall the vote until the deadline arrives.

If the talks Tuesday between House Republicans and the White House are any guide, the two parties are a long way from a deal. House Republicans emerged from the White House telling reporters that they are committed to finding a solution to the impasse, but were unwilling to do it unless the White House and Senate Democrats agree to cuts beyond the $33 billion level that had previously been floated.

"The Speaker told the president that the House will not be put in a box and forced to choose between two options that are bad for the country (accepting a bad deal that fails to make real spending cuts, or accepting a government shutdown due to Senate inaction)," a summary of the meeting provided to reporters by House Republican leadership read.

The House has instead proposed a one-week spending bill that would cut government spending by $12 billion while funding the military through the end of September, when the fiscal year ends.

House Democrats quickly rejected the offer. House Minority Whip Steny Hoyer (D-Md.) told reporters it was time to put an end to the "sporadic, episodic" stop-gap bills and reach a final agreement. He said that Democrats would whip opposition to the House bill if it is brought to the floor.

House Republicans aren't willing to take yes for an answer, Hoyer said, and were demanding far more than they were entitled by their partial control of the government, noting that Democrats control the Senate and White House. "You would think if you're going to reach a compromise, we get two, they get one," he said. " It appears that one side doesn't want to compromise."

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Today 5:57 PM How A Shutdown Would Impact Pay

Ed O'Keefe of Washington Post's Federal Eye explores how a government shutdown would impact federal pay and benefits:

Q: Can non-esential workers take previously-approved paid leave during a shutdown?
A. No. All paid leave during a shutdown furlough period must be canceled because the requirement to furlough supersedes leave rights. Paid leave creates a debt to the government that isn't authorized by law.
Q: Can essential personnel take previously-approved leave or be granted new requests for paid leave during a shutdown?
A. No. Essential personnel must be either doing their job or furloughed during any absence from work during a shutdown. If an excepted employee refuses to report for work after being ordered to do so, he or she will be considered in an absence without leave (AWOL) and will be subject to any subsequent consequences.
Q: Will an employee continue to be covered under the Federal Employee Health Benefits (FEHB) program during a shutdown furlough if the agency is unable to make its premium payments on time?
A. Yes, the employee’s FEHB coverage will continue even if an agency does not make the premium payments on time.

Read more of O'Keefe's analysis here, or take a look at the full guidance issued by the U.S. Office of Personnel Management here.

Today 5:20 PM Senate Dems: No Pay During Shutdown

HuffPost's Elise Foley reports:

A group of 21 Senate Democrats, including moderates such as Sens. Joe Manchin (D-W.V.) and Ben Nelson (D-Neb.), sent a letter to House Speaker John Boehner on Tuesday urging the House to pass a bill that would block the president and members of Congress from receiving pay during a government shutdown.

The letter requests a meeting with Boehner, whose busy Wednesday schedule could already include another trip to the White House for negotiations.

“Our bill is simple: if we cannot do our work and keep the government functioning, we should not receive a paycheck,” the letter from Senate Dems reads. “If we cannot compromise and meet each other halfway, then we should not be paid.”

But passage of such a measure is unlikely, the Washington Post’s Felicia Sonmez here.

Today 3:20 PM Slideshow: Possible Effects Of A Shutdown

HuffPost's Dean Praetorius explores how a government shutdown will impact our everyday life:

With the government looking like it's heading towards a shutdown as Friday approaches, many are wondering what exactly a shutdown would mean to them.

Based on the last government shutdown, there could be wide-reaching effects. According to AOL News, some immediate effects, such as the closing of national parks and museums, would be easily seen, while other services may only see delays.

Click here to see the slideshow and learn what services may be affected.

Today 3:05 PM GOP Clock Counts Down Seconds Until Shutdown

HuffPost's Jon Ward reports:

The Republican Study Committee, the organizing umbrella for the most conservative members of the House GOP, has a clock on its website counting down the days, hours, minutes and seconds to a government shutdown.

The RSC, which boasts a membership of 175 out of 241 House Republicans, devised the clock to paint the Democrats as the one driving Congress toward a shutdown-causing impasse. The graphic with the clock reads: "Will Democrats force a shutdown? The clock is ticking ... "

Below the ticking clock, the graphic says, "House Republicans voted on Feb. 19, 2011 to keep the government open. Click here to read our plan."

It links to a summary of the bill passed by the House that would cut spending by $100 billion compared to the budget requested by President Obama, but never enacted, for the current fiscal year. The measure would cut $61.3 billion from actual spending levels currently in place.

News that House Republicans applauded Monday when they learned that House Speaker John Boehner (R-Ohio) was preparing for a shutdown has already provided one anecdote for Democrats to leverage in blaming the GOP. Sen. Barbara Boxer (D-Calif.) already used the story on the Senate floor Tuesday afternoon to do that very thing.

A countdown clock could lend the GOP's opponents another cudgel to hit them with. Countdown clocks are usually associated with anticipated events.

RSC spokesman Brian Straessle pushed back, saying, "if anybody tried to make that argument, I’d remind them that 'usually' and 'always' don’t mean the same thing."

"Unlike some prominent Democrats, we don’t want a shutdown," Straessle told The Huffington Post. "To the contrary, we’re the only ones who’ve passed a bill to fund the government for the rest of the year. The clock is just a way to help crystallize this situation for the public."

But in the past, little details have shaped perceptions in a big way. During the government shutdown of 1995, Republican House Speaker Newt Gingrich's complained President Clinton didn't talk to him on Air Force One about their budget conflict, causing Gingrich to be seen as throwing a temper tantrum. It hurt his standing in the debate.

Michael Steel, a spokesman for House Speaker John Boehner (R-Ohio), said of the clock, “I suppose it’s good to know when it will happen if the Democrats who run Washington fail to act.”

Today 2:50 PM Meeting Fails To Produce Agreement

HuffPost's Ryan Grim reports:

A meeting between House Speaker John Boehner and Senate Majority Leader Harry Reid Tuesday afternoon, which just broke up, did not produce an agreement.

"The Speaker and the Senate Majority Leader sat down privately and had a productive discussion," Boehner spokesman Michael Steel told reporters in an e-mail. "They agreed to continue working on a budget solution."

Meanwhile, Jon Summers, spokesman for Reid, offered a nearly-identical statement. "Leader Reid and Speaker Boehner sat down privately and had a productive discussion," he said. "They agreed to continue working on a budget solution."

The president has called for both parties to venture west on Pennsylvania Avenue Wednesday for a meeting at the White House.

Today 1:59 PM '$61 Billion Or Die'

Mother Jones has published comments by Rep. Terry Lee (R-Neb.), who asserts that for Republicans are insistent on $61 billion in budget cuts:

It's also clear from the number of people who have gone up at the microphone at our conferences that it's $61 [billion] or die…
Many of our constituents will think we've caved if it's less. Now the reality is if you get to $58 or to $59 or $60 [billion], then say it's just silly to not take a deal like that. But you never know. There will be some that will say, if it's less than $61, if it $60.5 [billion]—someone's going to say it's not enough.

MoJo also examined comments from Rep. Mike Simpson (R-Idaho), who believes that Democrats will be quick to blame the GOP should the government shut down:

"There's no other explanation except that [Harry Reid] wants to have a government shutdown and blame it on Republicans," Rep. Mike Simpson (R-Idaho) told reporters Tuesday afternoon.

Full story here.

Today 1:52 PM What Would A Shutdown Look Like?

HuffPost's Mike McAuliff explores this question:

If you were wondering what a government shutdown would look like, your guess is almost as good as Congress', even as a budget impasse threatens to unplug large parts of federal agencies next month.

While some of the broader implications of a shutdown can be predicted, the White House's Office of Management and Budget keeps the agency's shutdown plans secret--and Congress has not recently examined how the feds would go about shuttering large sections of the government.

A spokesman for the notoriously investigation-happy chairman of the House Committee on Oversight and Government Reform, Rep. Darrell Issa (R-Calif.), said the committee was “focused on other things.”

The administration, meanwhile, declined to discuss the possible impact of a shutdown, insisting that one can be forestalled. “Since 1980, all agencies have had to maintain a plan in case of a government shutdown and we are prepared for any contingency as a matter of course,” said OMB spokeswoman Moira Mack.

Read the rest here.

Today 1:48 PM WATCH: 'We Don't Have Time For Budget Games'

AP released the full video of Obama's remarks on the need to avoid a government shutdown. Take a look:

Today 1:32 PM Union Files Lawsuit Regarding Government Shutdown

PR Newswire reports that the American Federation of Government Employees, the United States' largest federal employee union, has filed suit against the White House for Obama's lack of transparency surrounding a government shutdown's impact on programs and services:

The American Federation of Government Employees filed a lawsuit in federal court on March 30 seeking details on agencies' shutdown plans, AFGE National President John Gage announced today at a National Press Club newsmaker event.
AFGE filed a Freedom of Information Act request with the Office of Management and Budget on March 2 seeking copies of agencies' contingency plans for continuing operations during a government shutdown. AFGE filed the lawsuit after OMB failed to respond to the FOIA request.
AFGE and other unions have been provided with little information on how a shutdown would impact agency programs and services and how agencies would determine which employees are essential.

More here.

Today 1:28 PM Full Guide: Congressional Operations During A Shutdown

Politico obtained a copy of the Committee On House Administration's full guide, which details how Congress will operate during a shutdown. Take a look here.

Today 1:02 PM White House Reacts To GOP's $40 Billion Proposal

HuffPost's Sam Stein reports:

The Obama administration did not respond positively on Tuesday to news that House Speaker John Boehner (R-Ohio) is asking that lawmakers agree to $40 billion in spending cuts as part of a measure to keep the government funded through the end of the fiscal year.

“Does that sound like someone who is serious about finding common ground and averting a shutdown?” an administration official said, rhetorically, in an email to the Huffington Post.

Boehner’s new proposal represents a $7 billion increase in cuts Democrats have offered. It is also roughly $7 billion more than House Republicans proposed in their initial continuing resolution--a number they abandoned (for $61 billion in cuts) under Tea Party pressure.

The abrupt pushback from the administration suggests that the White House is ramping up its engagement in the negotiations after weeks of declining to weigh in, in detail, on prospective spending levels.

But considering the short amount of time left before the government runs out of money, it also suggests that the difference between the two parties may be too wide to bridge.

Today 12:27 PM Reid: Boehner Seeks 218 Votes

Washington Post's Greg Sargent reports on Twitter that Senate Majority Leader Harry Reid has asserted publicly that House Speaker John Boehner will only agree to a budget compromise that yields 218 Republican votes in the House.

Today 12:25 PM New Compromise: $40 Billion?

Politico reports that House Speaker John Boehner has upped the value of cuts in the spending package to $40 billion in order to reach a compromise:

Republican and Democratic officials confirmed that Speaker John Boehner raised the $40 billion number or $7 billion above the target now being used in negotiations. The Ohio Republican is slated to meet with Senate Majority Leader Harry Reid (D-Nev.) Tuesday afternoon, and Obama said that if the two can’t reach an agreement, he wants them back at the White House Wednesday for more discussions.

HuffPost's Jason Linkins reports:

Pretty soon, the budget battle narrative will kick into gear, depicting Rep. Paul Ryan's (R-Wis.) budget plan as the work of someone "serious" and "courageous." One big factor is the media's inability to come to grips with some basic tenets of the plan: it will raise taxes on the majority of Americans, as well as phase out Medicare and eliminate Medicaid, thus spreading the debt around to your household as your elderly loved ones sicken and die. But another key factor is that the White House doesn't seem willing to fill the "seriousness and courage gap" with any seriousness or courageousness of its own.

Let's go to today's press gaggle, and marvel at how White House Press Secretary Jay Carney just doesn't seem to have anything to say about the hotly anticipated rollout of Paul Ryan's plan.

Read the whole thing here.

Today 11:30 AM Obama: 'There Is No Reason Why We Should Not Get An Agreement'

HuffPost's Sam Stein reports:

Seizing the bully pulpit, President Barack Obama made a surprise appearance at the White House briefing on Tuesday, excoriating lawmakers for failing to get a budget deal done and dismissing the idea of a stopgap measure to prolong negotiations.

The President announced that Speaker John Boehner (R-Ohio) and Majority Leader Harry Reid (D-Nev.) would be meeting at 4 p.m. to hammer out differences over spending cuts. Administration aides, he said, were not invited to the discussion, per Boehner’s request.

“That’s fine,” said Obama. “If they can sort it out we have more than enough to do. If they can’t sort it out than I want them here tomorrow.”

The President, who has stayed largely away from the cameras during the budget negotiation process, was adamant in insisting Democrats had met Republicans halfway, noting that the White House's proposed $73 billion in cuts (compared to suggested 2011 spending levels) were the same that the GOP leadership originally demanded.

“We are now closer than we have ever been to getting an agreement,” said Obama. “There is no reason why we should not get an agreement… We have now matched the number that the Speaker originally sought. The only question is whether politics and ideology are going to get in the way of preventing a government shut down.”

Emphasizing the need to handle compromise like adults, Obama added that he believes what the American people are looking for lawmakers to "act like grownups, and when we are in negotiations like this, that everybody gives a little bit, compromises a little bit in order to do the people’s business."

The President was pressed, additionally, on the idea of passing a one-term continuing resolution as a means of allowing negotiators the time to come to some form of agreement without the government shutting down. House GOP leadership had proposed a stopgap of that length that would include $12 billion in cuts while funding the Pentagon through the remainder of the fiscal year. Saying he’d support a short-term measure if it meant, simply, allowing lawmakers to file the needed paperwork, Obama nevertheless threw cold water on the idea.

“We have already done that twice,” he said, adding that short-term funding measures was “not a way to run a government. I can’t have our agencies making plans based on two week budgets.”

Today 10:54 AM Baucus Blasts Medicare Cuts In GOP Proposal

Senate Finance Committee Chairman Max Baucus condemned a House Republican budget proposal to cut more than $2 trillion in Medicare benefits, including health care and nursing home coverage for seniors, today, stating that "we can't allow the house to balance the budget on the backs of seniors and we won't--not on my watch."

According to a news release from the finance committee:

Under the House budget plan, Medicare would be disassembled and converted into a “voucher-like” program. Under this plan, seniors would have to wade through significant paperwork and fine print to find a private plan that covered their medical needs. But that plan wouldn’t necessarily cover the unforeseen medical conditions seniors could face over the course of the year. If seniors’ were faced with a condition not covered by their private plan, they would have to pay 100 percent of the cost out-of-pocket. The House plan would create a National Insurance Exchange, or a Washington-based marketplace where seniors would select a private health insurance plan. Plans would receive seniors’ vouchers, but those vouchers would not cover the cost of a plan with the same benefits Medicare has today. For coverage equal to the benefits Medicare offers today, seniors would have to pay much of the total cost, often thousands of dollars more, out of pocket. And, under the House plan, private insurance companies would be allowed to discriminate against seniors with pre-existing medical conditions such as high-blood pressure and diabetes. Insurance companies would charge more for seniors as they grow older and if they develop expensive conditions, including cancer.
The Republican budget also cuts more than $2 trillion in other critical health care services. These cuts could entirely eliminate seniors’ access to nursing home and home health care services. Without these benefits, seniors would be forced to pay 100 percent of these costs.

According to the Wall Street Journal, the proposal would “essentially end Medicare” as it exists today.

Today 10:32 AM U.S. House Gets Ready For Shutdown

HuffPost's Mike McAuliff reports:

The U.S. House of Representatives took the first step Tuesday toward shutting down the government, ordering all its members to draw up lists of staffers who will be furloughed.

And they have to be in by 5 p.m. Friday, April 8, Rep. Dan Lungren (R-Calif.), chairman of the Committee on House Administration, ordered his fellow lawmakers in a "Dear Colleague" letter.

The government will run out of money at midnight Friday if Congress can't reach a deal to pass a new measure to keep the money flowing.

"Should Congress and the President fail to come to an agreement continuing appropriations for the Legislative Branch, non-essential House operations must be shut down effective April 9, 2011," Lungren wrote.

Read the rest here.

Today 9:50 AM Tea Party Leader Urges GOP To Avoid Shutdown

Tea Party Express Director Amy Kremer urged Republicans to avert a government shutdown amid deteriorating budget negotiations ahead of a Friday deadline, The Hill reports.

"I don't think that's the right thing to do," said Tea Party Express Director Amy Kremer. "These guys were sent up here to make the hard decisions and that's exactly where they need to go now. ... They need to find that political will power [to find $100 billion in cuts] and do it."

Click here to read more.

Today 9:37 AM Polls: Public Split On Who To Blame If Government Shuts Down

HuffPost's Emily Swanson reports:

Two polls released this week show a public split on whether to blame Republicans or Democrats if the federal government shuts down later this week.

The Pew Research Center and Washington Post surveys each found that Americans are equally ready to blame either the Republicans or the Obama administration. In the Pew poll, 39 percent say Republicans would be to blame and 36 percent said that Obama administation would be more to blame. In the Washington Post poll, an equal percentage (37 percent) said Republicans and the Obama administration would be more responsible.

Click here to read more.

Today 9:26 AM Republicans Cheer Possible Shutdown, Give Boehner Ovation

The Washington Post reports that on Monday Republicans in the House cheered on the prospect of a government shutdown.

House Republicans huddled late Monday and, according to a GOP aide, gave the speaker an ovation when he informed them that he was advising the House Administration Committee to begin preparing for a possible shutdown.

More here.

Today 9:19 AM White House Rejects GOP Stopgap Funding Measure

HuffPost's Sam Stein reports:

A one-week stopgap funding measure proposed by House Republicans to keep the government running for an additional week ran into several roadblocks on Tuesday morning as both the Obama administration and congressional Democrats expressed opposition.

White House Press Secretary Jay Carney would not confirm or deny whether the president would ultimately oppose the measure, which would cut $12 billion in government spending while funding the Pentagon for the remainder of the fiscal year. But congressional aides say that administration officials have privately rejected the offer.

In an off-camera gaggle Carney reiterated the administration’s belief that “it is not necessary and not acceptable to continue to create a toll booth where you have to pay to keep the government [funded] every two weeks or one week or three weeks.”

Minority Whip Steny Hoyer (D-Md.) was far more direct, telling reporters on Tuesday that House Democrats will oppose the GOP one-week offer and whip opposition to it.

Republicans on the Hill were quick to jump on Democrats for rejecting the one-week offer, insisting that blame for an impending shutdown now fell on the president’s shoulders.

"If the White House rejects a sensible, one-week funding bill, they are significantly increasing the chances of the government shutdown that so many Washington Democrats are rooting for,” said Speaker John Boehner’s (R-Ohio) spokesman, Michael Steel. “And every soldier and senior who doesn't get a check next week will know who to blame."

Click here to read more.

Will there be a government shutdown this year?

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