Here's the Deal On Budget Negotiations

In an otherwise perceptive account of the budget dilemma in which Congress finds itself, the Washington Post last week erroneously asserted it is "inevitable" that Congress "reach a deal to fund the federal government through September, the end of the fiscal year," because congressional leaders in both parties agree they must; it is just a matter of how. To the contrary, it is not at all clear that Republican leaders do, in fact, agree it is necessary to pass a comprehensive Continuing Resolution (CR) taking us through the rest of the fiscal year. And even if they do agree, it does not imply they should.

It is true, as the Post contends, that "limping along" on a series of stopgap funding extensions has been "a hassle to negotiate, with the two parties bickering over spending cuts for little benefit." However, it is far from certain that it would be less of a "hassle" or less costly politically for Republicans to pass a comprehensive CR taking us through the end of the fiscal year rather than finishing out the fiscal year by continuing to piece together a series of short-term extensions, adding additional spending cuts to each extension along the way during the next six months. 

Moreover, for a significant contingent of the Republican Party -- which is perfectly willing to shut the government down, indeed is hankering to do so -- "limping along" may be far preferable to sailing through on a comprehensive CR, which may enrage the GOP base.

The Washington Post now reports that when some Republican House freshmen went home this week, constituents urged them to keep up the budget brinkmanship:

"They say: 'Shut it down. Shut it down,'" said Rep. Joe Walsh (R-Ill.), meaning the government. "I think the American people are ahead of us on this. And they're prepared for it.'"

A strategy of serial short-term extensions may be just the way for Republicans to have their cake and eat it too if a gimpy Uncle Sam earns them plaudits from the party's conservative base without raising most other people's ire, whereas a government shut down may provoke wide-scale political backlash.

The same Washington Post article uncovered that federal agencies are operating in limbo as the budget impasse drags on: 

The budget impasse hasn't shut down the government -- at least not yet. But it has slowed down or stopped a lot of its parts.

The fact is, though, there is a far preferable alternative that would allow both sides to win something important and would benefit the nation enormously.

The budget battle has morphed into more a struggle over policy change through appropriations riders than a battle over how much money will be cut from the budget during the rest of this fiscal year. In the House, Republicans are pushing a variety of de-funding riders that would change policy by denying spending authority. The four most important among them are defunding National Public Radio, defunding EPA's ability to regulate carbon dioxide as a pollutant, defunding Planned Parenthood, and repealing existing and denying new spending authority for implementation of ObamaCare. 

There is less zeal for attaching these riders in the Senate. However, in the Senate, Republicans are unanimously behind what might be called the Debt Limit Restoration Rider, which is not being pushed in the House. This amendment championed by Senators Toomey, Vitter and DeMint would prioritize spending for debt service and Social Security payments and thus guarantee that funds are available for both in the event the debt ceiling is reached and the federal government is precluded from borrowing more money. Senate Republicans voted unanimously to attach this rider to the Continuing Resolution.

Of these five riders, the debt-limit restoration provision is clearly the most important, not only because it is the only one of the riders with a real chance of surviving in a comprehensive CR this year but also because it would provide for an orderly and rational reduction of federal spending and the deficit in years to come. It is the rider on the margin, which would provide Archimedean leverage in the budget process to reduce federal spending. By removing the specter of a default on the national debt or Social Security in the event the debt limit is reached, this rider would eliminate the ability of big-spenders to hold markets and seniors hostage to raising the congressional credit-card limit time and again.

Hence, by transforming the debt limit into a real budget constraint, the debt limit would become the anvil against which federal spending reductions were wrought. Under a hard budget constraint defined by the debt limit, Congress would lock itself into a predetermined amount of spending reductions by first deciding how much less than the projected deficit it decided to raise the debt ceiling. This alteration in the congressional budget process would transform the debt limit from a paper ceiling that is routinely ripped up at will into a real, hard budget constraint under which Congress would have to allocate spending. In the process, it also would provide a framework in which to consider the policy changes sought by the Big Four riders.

Finally, the debt limit restoration provision would be very attractive to Senate Majority Leader Reid in his struggle to keep on the reservation potential Democrat renegades who are being tempted to use Republicans as their cat's paw to cut Social Security benefits. It's a deal the Majority Leader could not refuse.

To make this work, House Republicans must finally come to the realization that their lone House majority is insufficient to force the Senate and the president to accept any of their Big Four riders. These riders are, as the Post points out, deal-breakers for the Democrats, and threatening to shut the government down over them is like threatening to shoot yourself in the head if you don't get your way. 

Letter to the Editor StumbleUpon| Digg| Reddit| Twitter| Facebook

Lawrence A. Hunter is president of the Alliance for Retirement Prosperity.

I must admit that I am skeptical about the debt cutting intentions of any member of the beltway chosen. My magnitude of skepticism is only found one other place and for exactly the same reason. It is exhibited by the prostitute who is confronted by a bargain basement John wanting a fifty percent discount with the explanation that he will only put it in halfway.

Sorry, but I don't see where this is a solution to anything. So long as there is a mechanism for raising the debt ceiling it WILL be raised. Every dime of government spending has a constituency and politicians of all stripes will do whatever they must to avoid alienating an organized bloc of votes. Gimmicks and Gimcracks are not a substitute for governance.

No, Mr. Hunter, HERE'S the deal. The President has proposed a spending program of $3.7 trillion, which is $1.5 trillion more than projected revenues. We are on the Titanic and we have struck the iceberg. Strategizing about how to avoid losing political points is akin to rearranging the deck chairs. There is one - ONE - member on each side of our legislature that has proposed balancing the budget and those proposals have been greeted with peals of silence from the rest of the morons on the hill. We are talking about the preservation of the republic, idiot. Let's not worry about who looks good to the media and the public.

Sounds like a deal for House and Senate Republicans to agree upon and demand for their votes to keep funding the gov't. Also proves we're the ones working to save Social Security from the party that stole most our money.

The only thing these feckless, weak kneed Rs have finally figured out is that the "people are indeed ahead of them on this issue". No kidding, morons. Congrats, you got one right!!! These hapless saps can't even get their hands around the message; they still allow the Ds and the LSM to label this as a "government shutdown". It is no such thing when 60% of the government, the vital services, if you will, are still up and running. Is there nobody in the R leadership capable of making this simple yet vital point? Lord!!, you got that slime ball Schumer on tape making the R case for them, that the Ds are nothing more than vile liars, and still Boehner remains silent. Well, you clowns are going to learn an even greater, ruder lesson, about how much more the American people are truly ahead of you. The Washington bubble is about to burst. Say good-bye to business as usual. In fact, say good-bye to your hapless careers and prepare to get real jobs.

Republicans, wisdom and courage. Are you kidding? Hey pal, the gop is known, and for good reason, as the stupid party and courage, well there are only a handfull that I would allow in my foxhole. No, this sounds like another, " lets go along to get along" strategy. Simply put, the GOP gets scared and the dems win!

Is there a single statesman left or all they just politicians now? Sure, making deals and compromising can sound like progress is being made but we don't have the luxury of slow progress. Our debased fiat currency is on the road to collapse and the left believes the time for shedding blood in defense of the status quo has arrived. Investors are fleeing treasuries and foreign governments are quietly reducing their financial stake in our nation. Just what will it take for someone besides the Paul family to tell the American people the jig is up? I want desperately to believe that the Republic can be restored but the light at the end of the tunnel gets dimmer by the day.

Makes sense. Thing is it works only if rational minds and a unified Republican front has the balls and druthers to pull it of. I'm not going to hold my breath on that.

If Harry Reid can accept it, I'm against it.

We need to forget all this BS and stand on principles needed to keep our republic. Shut the government down!

You are dead wrong on this and that is why people like you in the Senate need to wake up. The American people are ready for a shutdown (it is not a complete shutdown anyway) if necessary do get these riders past. The 2 for sure are what the American people want and will not be satified if not past. The Obamacare and EPA riders. The others they want as well but it may be harder to get. So we throw 4 at them and settle for the 2.

I always said that the real battle is over the debt celing raise. The current budget is just a skirmish in the big battle. And, its the ultimate leverage. No debt celing raise; hence no spending. Its brilliant.

As far as I am concerned, at the end of the day $61 billion had better be cut out of the 20011 budget or even more RINO heads will roll.

ex animo davidfarrar

Make that the 2011 budget.

ex animo davidfarrar

Let Reid bring it on. To paraphrase a great American, Shut 'er down!

Thanks for the interesting insights Mr Hunter. I certainly hope Boehner does not back down. He must realize that the reason he has the Speaker's chair is precisely because the people want someone to stand up to the obamatons.

The problem with this byzantine proposal is it misses one fundamental point: the Donkey party is ANGLING for a shut down because they think its a good re-election strategy. They are wrong. We should give them this fight, and beat them into the dirt while it's on.

d(^_^)b http://libertyatstake.blogspot.com/ "Because the Only Good Progressive is a Failed Progressive"

Bunk. The House by itself can stop all legislation, initiate all legislation and defund any legislation. Bonehead is trying to intimidate his own party. He will be cast aside in 2012.

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