DAILY FISCAL POLICY REPORT -- April 9, 2008

Health Care -- Bipartisan Support for Blocking Bush Medicaid Rule: CQ reports ($) that a House bill that would block the president's Medicaid rule changes is gaining support among Republicans. The proposed rule changes would shift about $17.8 billion (over five years) in Medicaid costs to states. The bill, H.R. 5613, will be marked up today in the Committee on Energy and Commerce Health Subcommittee.

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Deconstructing Obstruction

White House spokesperson Dana Perino made the following statement conveying President Bush's opposition to the Senate Foreclosure Prevention Act of 2008, which won a cloture vote in the Senate this afternoon, 92-6. Perino: The bill will likely do more harm than good by bailing out lenders and speculators, and passing on costs to other Americans who play by the rules and honor their mortgage debt obligations.

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NYT Quotation of the Day

For the Hard of Ear-ing No matter what you want to call it, an earmark is an earmark. If Congressional leaders don't believe that soft earmarks are earmarks, then I think that makes the case as to why we need tougher reforms in place. - Rep. Jeff Flake (R-AZ), on pork-barrel spending But, to be fair, Flake wasn't quoted here about pork-barrel spending. He was quoted about earmarks. If you're interested in the difference -- and if you writers and editors at the Times are listening -- have a look at this, esp. pp. 3-5.

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Monthly Budget Review: March, 2008

CBO estimates that the government incurred a deficit of $310 billion in the first half of 2008. The deficit last year at the same point in time was $258 billion. The $51 billion increase in the deficit through March was largely unaffected by differences in the timing of receipts or expenditures. A number of programs experienced double-digit percentage increases in spending in the first half of the year—including food and nutrition programs, unemployment benefits, veterans' health care, federal-aid highways, and community development block grants.

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DAILY FISCAL POLICY REPORT -- April 8, 2008

Budget Resolution -- Blue Dogs Say PAYGO or No-Go: In an April 4 letter to the House and Senate Budget Committee Chairs and ranking members, 26 deficit-hawk Blue Dog Democrats said that a budget resolution must "include deficit-neutral AMT relief through reconciliation language and any stimulus package be fully offset [or it] will meet our firm opposition on the House Floor." Given the five-vote margin of victory for the House resolution last month, a defection by 26 Democrats would almost certainly doom the prospects for an FY 2009 budget resolution.

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Wash Post Opines on Future of Entitlements

The Washington Post wrote their lead editorial yesterday on the future of entitlement programs. The editorial once again lumps Social Security, a relatively healthy program, with Medicare and Medicaid, which face more serious funding issues not because they are entitlement programs, but because of the rapidly growing cost of health care in both the public and private sectors.

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DAILY FISCAL POLICY REPORT -- April 7, 2008

Economy -- Jobless Reports Boost Odds for Stimulus 2.0: Following last week's report that payrolls declined by 80,000 in March, bringing the cumulative three-month loss to 232,000, and the unemployment rate surged upward, to 5.1 percent from 4.8 percent, House Speaker Nancy Pelosi said on April 4: "Today's disturbing unemployment numbers, combined with [Federal Reserve] Chairman [Ben] Bernanke's recession warning... compels the President to work with Congress on a second stimulus package...

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Frank's Housing Bill Is Good Policy, Good Politics

Dana has a piece up at TPM Café in which he outlines a set of criteria - political and substantive - that qualify a housing bill as effective and viable.
  • It cannot involve "massive government intervention," or it risks the threat of veto by President Bush
  • It must pay for itself or include offsetting tax hikes or spending cuts to comply with the pay-as-you-go
  • (PAYGO) constraints Congress has imposed on itself
  • It cannot involve a bailout of either financial institutions or investors who have lent to homeowners or to

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IBM Suspension Lifted

POGO's Scott Amey flags this update on the government's suspension of IBM from obtaining federal contracts: WASHINGTON (AP) — The government has lifted a week-old ban that prevented IBM from getting new federal contracts in an exchange for an agreement from the company to drop its protest of an $84 million Environmental Protection Agency contract it lost last year. ...

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The Employment Situation

While a loss of 80,000 jobs is troubling, an even more disturbing trend in the private job market continues. In March, the private sector shed 98,000 jobs, marking the fourth consecutive month to see private-sector losses. (click on image to enlarge) Dean Baker at Center for Economic and Policy Research has a good write-up of the situation:

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