GOP Leadership Struggles To Save Face on Budget

Although House GOP leaders dropped plans to vote on an amendment to the budget resolution to raise the level of cuts to mandatory spending from $35 billion to $50 billion, it appears GOP leaders are trying to save face by bringing a non-binding amendment, or an expression of preference, to the floor next week. The amendment would embody all four points of the "Hastert plan," including an increase in mandatory cuts to $50 billion, additional rescissions of unspent appropriations, "de-authorizing" unnecessary programs and an across-the-board cut in non-combat discretionary spending, but would do absolutely nothing to make sure those measures are actually implemented. It is unlikely the Senate will be looking to increase cuts since they are still struggling this week for consensus on just $35 billion in cuts.

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Senate Finance Committee Comes to Conclusion on Cuts

The Senate Finance Committee, after days of deliberation, agreed today to $10 billion in Medicare and Medicaid cuts, to take place over the next five years. The cuts will come primarily from Medicare, as the measure would cut $18.6 billion from the Medicare and $7.7 billion from Medicaid. It also, however, would boost spending on various Medicaid and Medicare programs. They will markup the measure early on Monday, which will pave the way for the bill to be included in the Senate Budget Committee's reconciliation package, slated to be put together October 26.

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UMRA Used to Kill Minimum Wage Increase

Remember that sneak attack from Sen. Lamar Alexander (R-TN), who snuck into the Senate budget resolution an amendment that altered the procedural requirements of the Unfunded Mandates Reform Act? UMRA created a new point of order against any bill that would impose costs on state and local governments above a specific threshold, but the vote count required to overcome the point of order and allow a bill to move forward for a final vote was only a simple majority. Alexander changed that, for the Senate at least, by raising the vote count to a 60-vote supermajority.

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NSR: A Second Bite at the Apple

With slim chances of passing in Congress, a controversial change to the designation of new source review is now snaking its way through the regulatory system. The regulation would allow power plants to make modifications to existing equipment without installing new pollution technology if their hourly emissions rates do not increase. By changing the way power plant emissions are calculated from an annual output to an hourly output, plants would be allowed to pollute more per year by operating for longer hours. From the New Standard:

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Senate GOP Blocks Minimum Wage Increase...Again

The Senate voted this afternoon 47 - 51 against raising the minimum wage to $6.25. 42 Democrats, 4 Republicans (Chafee, DeWine, Santorum, and Specter), and Independent Jim Jeffords (VT) voted in favor of the increase. The minimum wage has not been increased for over 8 years, the second longest drought on record.

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Budget Amendment Pulled From House Schedule for Thursday

As speculated earlier today on the Budget Blog, the House GOP leadership has pulled an expected amendment to the budget resolution from Thursday's floor schedule. There is no indication currently if this is simply a delay or a cancelation of the amendment. Either way, it shows that both the GOP leadership and the conservative Republican Study Committee do not have the influence necessary to push through more drastic cuts to low-income entitlement programs in the new political enviornment post-Katrina.

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GOP Attempts to Spin Collaspe of Budget Amendment

It appears Republicans are laying the groundwork to positively spin the possible collaspe of support for an amendment to the budget resolution that would increase cuts to entitlement programs from $35 to $50 billion over the next five years. As of today, it appears the House leadership still does not have the 218 votes necessary to pass the amendment. The House leadership has already scaled back the amendment by dropping a proposal for an across-the-board 2 percent cut to discretionary programs. It remains unclear if there is enough support for increasing the mandatory cuts beyond those originally agreed upon in the resolution this past April, but a delay or cancelation of the vote on the amendment is clearly a sign of weakness for both the GOP leadership's efforts to enact deeper cuts and the Republican Study Committee's efforts to threaten the leadership for control of the House. Undetered, acting-Majority Leader Roy Blunt (R-MO) declared today, "Our chairman, frankly, can do [these additional cuts] without a vote and are moving forward." He added, "I don't think the Conference is divided at all. I think we have a plan. The question is: At what point do we bring that plan to the floor." Yet Blunt did not elaborate on how he thought the leadership would be able to pass the actual reconciliation bill with $50 billion in cuts (whenever they decide to bring it to the floor) if they could not muster the suppoort for an amendment that is merely a verbal committment to pass the cuts. It is possible to use a tactic favored by this leadership group, which is holding the vote open for extended periods until they twist enough individual arms and offer enough consessions and sweateners to get the votes they need. Democracy at its finest!

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Your Safety is at Stake

More than 5,000 people are killed every year in crashes with big rigs on the nation's highways, and a major cause of these accidents is fatigue -- that overworked truck drivers are forced to drive way too many hours at a stretch. Now Congress is poised to make matters worse.

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Safeguarding Charity in the War on Terror

Safeguarding Charity Since the 9/11 terrorist attacks, federal measures intended to cut off terrorism funding have imposed undue burdens on the nonprofit sector. This report addresses unbalanced anti-terrorist financing regulations and guidelines and suggests a clear, sensible system, under which nonprofit organizations and foundations can pursue legitimate charitable activities.

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Lastest OMB Watcher: October 18, 2005

Be sure to read the lastest edition of the OMB Watcher. The budget and tax articles in this edition include: Republicans Use Katrina To Push For More Drastic Cuts Congress Mistakenly Focusing On Katrina Spending As Top Fiscal Danger President's Tax Panel Hints at its Forthcoming Recommendations Study Adds Voice of Low-Income Americans to Debate Over Economic Divide

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