News and updates

The FY11 budget predicament reaches its climax this week as tea party conservatives and Democratic leaders clash over how much, or how little, to slash from this year’s budget, and whether to include conservative policy riders that limit the federal government’s ability to spend money on things like Planned Parenthood, environmental regulations, and other liberal priorities.  If the two sides don’t come to agreement, the government will shut down on Saturday.

Everyone agrees that the outcome of the FY11 budget that comes to a head this week will affect the budget battles ahead, so both sides are strategizing what to fight for in the current budget and how much to hold off the bigger battles for the FY12 budget debate.

Negotiations began last week on a possible FY11 package that would cut $33 billion for the year ($73 billion from President Obama’s request for fiscal 2011), although House leadership has repeatedly said no agreement had been made on a specific level of cuts.  Supported by tea party activists, GOP freshmen, and other conservatives have argued for the full $61.5 billion in cuts that was included in HR 1 as passed by the House in February, $10 billion of which has already been enacted as part of GOP short-term stopgap funding extensions.  

When the overall budget number and cuts are agreed to, it’ll be a race against the clock to keep the government running. Earlier this year, Republicans instituted a three-day vetting period for most pieces of legislation and they are unlikely to waive that requirement for the FY11 bill.  This essentially makes Wednesday the final day a compromise could hit the floor and gain approval before the end of the current continuing resolution (CR) on Friday at midnight.  They can also choose to pass a short-term CR to fund the government for a few days but increasing numbers of both Democrats and Republicans believe it is time to either reach a final agreement or have the showdown over spending that many have expected could eventually occur.  Two continuing resolution (CR) extensions have been enacted in the past month, with the latest extension of government spending authority expiring Friday night.

And, sadly, this is not the last budget battle Democrats and Republicans will fight this year.  The FY12 budget battle will begin Tuesday when House Budget Chairman Paul Ryan (R-WI) unveils his proposal that promises to cut more than $4 trillion from federal spending over the next decade.  The annual budget resolution is a non-binding blueprint that simply outlines Congress’ goals for spending, taxes and deficits in future years.  It is usually more important as a one-year document that sets a limit on discretionary appropriations for the coming fiscal year, and for providing procedural protections against Senate filibuster for bills moving through a special “reconciliation” process.  House floor consideration of the GOP budget is expected next week.

This action will almost certainly set off a broader public debate concerning the need to reduce future debts and deficit.  Lawmakers and others who have been told about the budget resolution say it will aim to scale back some domestic programs to FY06 spending levels, include some cuts to Defense spending and call for cost savings in mandatory spending programs including Medicaid and Medicare.  The budget resolution is expected to reflect plans to replace the current formula-based Medicaid program, which provides health care to the poor, with a block grant system in which the states receive a set amount of funding from Washington and have greater latitude to design their own programs and determine who is eligible for Medicaid.

The budget resolution will kick off the next round of rhetorical battles over the more than $1 trillion deficit and growing $14 trillion national debt.

The Office of Federal Relations is continuing to monitor developments on both FY11 and FY12 budgets and will report new information as it becomes available.

Negotiations on the FY11 budget continued yesterday mostly through competing press conferences where Republicans and Democrats traded blame, with little indication of any movement toward a compromise.  The likelihood of government shutdown remains high as Democrats continued to argue that GOP leaders were refusing to compromise because they didn’t want to upset conservatives and tea party groups, while Republicans argued that Democrats didn’t yet have a unified position from which to negotiate. It has now been 39 days since the House passed its FY11 bill, HR 1, which would cut $61.5 billion in discretionary spending for the remaining six months of the fiscal year. 

The current continuing resolution (CR) doesn’t expire until April 8, next Friday night, but it will take some time to draft a legislative package once the outline of a deal is reached. And until a top-line spending figure is agreed to, negotiators can’t determine the extent of cuts and hence the specific funding levels for individual agencies and programs.  The practical deadline to reach a deal may be the end of this week, which would then provide the weekend for drafting the measure so House Republicans could post it on their web site as soon as possible early next week to comply with House rules requiring that legislation be publicly available for 72 hours before votes occur.  It’s because of this that the media is reporting that there is a real potential for a government shutdown.

The Office of Federal Relations continues to urge our Congressional Delegation to oppose reductions to federal research and training accounts that would take them below FY10 levels.

Congress returns to work today for a three-week session where lawmakers face some difficult budget and spending decisions.  The most urgent task remains funding the government for the rest of FY11, with the latest continuing resolution (CR) set to expire in less than two weeks (April 8^th). The current CR cut another $6 billion in current spending — bringing to $10 billion the amount of spending that has been cut so far by CR extensions enacted in the past month.  Still, Republicans and Democrats are more than $51 billion apart in the additional amount of cuts to discretionary spending they want for this fiscal year, which is now about half over.

Little progress has been made between the two parties on spending since they approved the last CR on March 16^th and many pundits now believe that the chances for a government shutdown are increasing. Congressional leaders at the end of last week criticized one another regarding the status of talks, which reportedly broke down March 22 over the question of whether negotiations should proceed from the $61.5 billion in cuts proposed by House Republicans as part of HR 1, or the $10 billion in cuts already made so far this year.  

The Senate this week expects to take what amount to “test votes” on many of the policy issues now linked to the FY11 spending bill.  Those votes would occur on amendments being offered to an otherwise non-controversial small-business bill (S 493).  The Republican amendments include provisions to bar the EPA from regulating greenhouse gas emissions, and to block federal funding for Planned Parenthood, public broadcasting, and implementation of the health care overhaul law.  Other possible amendments include a series to end the federal ethanol subsidy, eliminate leftover earmarks, and eliminate or consolidate duplicative federal programs.  Another amendment is planned that would put senators on record as to whether efforts to reduce future debt and deficits should involve Social Security.  

So far, the FY11 debate has spared most federal research accounts from the harshest cuts – but there are still programs and funding in jeopardy.  The Office of Federal Relations is in frequent contact with our state’s congressional delegation, as well as others, to make sure they understand the implications of reductions and eliminations to federal research and training accounts.

** UPDATE 3/17 **
This afternoon, the Senate voted 87-13 in favor of a three-week stopgap spending measure, or continuing resolution (CR), that would keep the federal government funded through April 8th.   The new CR includes $6 billion in cuts to the federal budget.

Some conservative House Republicans had pledged to vote against the measure, saying it does not make enough cuts and does not include social-issue riders some had wanted.  Fifty-four House Republicans ultimately voted against the bill – far more than the six who voted against the last CR – while 85 House Democrats helped to pass the measure.

It remains unclear whether Members will be able to negotiate a longer-term spending bill in the next three weeks.  So far, the White House, Senate Democrats and House GOP leaders have made little progress on a deal.

Washington delegation members voting for the CR:  Cantwell, Inslee, Herrera Beutler, Hastings, McMorris Rodgers, Dicks, Reichert, and Smith.

Washington delegation members voting against the CR: Murray, Larsen and McDermott