Update from Washington, D.C. 12/03/2010
Following a brief Thanksgiving recess, Congress returned to
Washington to face an uncertain lame-duck agenda. As the 111th
Congress comes to a close, it remains to be seen if lawmakers can
complete action on several major pieces of legislation, such as
the fiscal year 2011 appropriations, the expiring Bush-era tax
cuts, and an extension of unemployment benefits.
Other hot-button issues that Congress is grappling with during
the waning days of the session include efforts to end the “don’t
ask, don’t tell” policy of the U.S. military, Senate ratification
of the new START treaty with Russia, and finalizing the DREAM
Act, which would benefit children of illegal
immigrants.
Since the start of the fiscal year, October 1, the federal
government has been operating under a continuing resolution (CR)
set at fiscal year 2010 levels. The current CR (PL 111-242) is
due to expire on December 3. In order to avoid a lapse in
funding, the House passed December 2 another CR to maintain
government operations through December 18, with the Senate
clearing the measure the following day. The two-week extension
would provide additional time for policy-makers to work on how to
settle the fiscal year 2011 appropriations bills.
With the year quickly coming to a close, Democrats will have to
make an eleventh-hour decision on how to advance the federal
spending measures. Congress has yet to complete work on any of
the 12 appropriations bills this year. Possible outcomes include
a stopgap bill that would fund the federal government into next
year or approve an all-encompassing omnibus spending
measure.
For their part, Senate Democrats are working steadily toward
passing an omnibus appropriations bill for fiscal year 2011.
Senate Appropriators Chairman Daniel Inouye (D-HI), along with
Ranking Member Senator Thad Cochran (R-MS), is drafting an
omnibus spending package that would sustain discretionary
spending at $1.1 trillion. However, passing an omnibus funding
measure will be easier said than done, as the appropriators would
need to gather 60 votes to advance the legislation.
On the other hand, Republican leaders are hoping to pass a
short-term CR. The temporary funding extension would allow
Republicans the opportunity to roll back spending to fiscal year
2008 levels when they take over the House next year.
On a related matter, Senator Tom Coburn (R-OK) offered a proposal
that would establish a three-year ban on congressional earmarks.
The earmark moratorium, which was initially attached to a food
safety bill (S 510), revealed a deep divide within party caucuses
over the issue. Although the amendment failed to garner enough
support by a vote of 39-56, seven Democrats voted in favor of the
ban while eight Republicans opposed the amendment. The mixed bag
of proponents and opponents demonstrates that congressionally
directed spending will likely be a divisive issue for the 112th
Congress.
It should be noted that the incoming Speaker of the House, John
Boehner (R-OH), and the next House Majority Leader, Eric Cantor
(R-VA), have promised to push for a ban on all earmarks when
Republicans are in power next year.
In other news, President Obama met with Democratic and Republican
leaders on November 30 to discuss extending the Bush-era tax
cuts, which are scheduled to expire on December 31. The White
House has made it clear to Congress that it wants to make the tax
cuts permanent for individuals who earn less than $200,000, or
$250,000 for married couples. Although the proposal would extend
tax cuts for most Americans, the administration has faced
opposition from Republicans and some moderate Democrats, who
insist that the tax cuts for all income earners be extended.
Though no game-changing compromises emerged from the meeting,
President Obama and the congressional leaders agreed to set up a
group of negotiators to collaborate on a tax solution. Along with
two administration officials, the group will consist of the
current ranking member of the House Ways and Means Committee,
Dave Camp (R-MI), Senate Minority Whip Jon Kyl (R-AZ), Senate
Finance Committee Chairman Max Baucus (D-MT), and Congressman
Chris Van Hollen (D-MD), who is also a member of the House Ways
and Means Committee.
Moreover, House Democrats offered a proposal that would
permanently extend the Bush tax cuts to individuals that make
less than $200,000 and $250,000 for married couples. Among other
items, the measure would also include education tax breaks,
elimination of the “marriage penalty,” and expansion of the child
tax credit. The GOP is likely to oppose the plan and with the
political momentum in their favor, it is unclear if the measure
will advance.
In other developments, Senator Max Baucus introduced the
Unemployment Insurance Stabilization Act of 2010 (S 3981) on
November 29. The bill would provide unemployment benefits through
the end of 2011. The $56.4 billion bill, which does not contain
offsets, will likely face strong opposition from Republicans and
some moderate Democrats, charging that large price tag would
further add to the growing budget deficit.
Extending an olive branch to Republicans, President Obama
announced a proposal to freeze federal government employee
salaries for two years to demonstrate his commitment to making
significant fiscal policy changes in Washington. The plan would
save over $60 billion over 10 years and affect about two million
federal workers. The pay freeze would start January 2011 and run
through December 2012. The proposal was welcomed by Republicans
who have called for a freeze in federal government salaries and
federal personnel hiring in the past.
In another key development, the House earlier this week adopted
and sent to President Obama for his signature a one-year
extension of the Temporary Assistance for Needy Families (TANF)
program. Included in a Senate vehicle (HR 4783) compensating
American Indians and black farmers for past discriminatory
claims, the TANF reauthorization did not include funding for the
TANF Emergency Contingency Fund that helped create subsidized
jobs under the Recovery Act. Extending the basic program through
September 30, 2011, the measure also contains new state reporting
requirements on how TANF funds are used. The reports are intended
to help inform Congress on what changes may be needed as it
considers a more in-depth review of TANF next year.
Additionally, the House cleared December 2 child nutrition
legislation (S 3307) that provides for more poor children to
receive free meals at school, raises the nutritional quality of
school food programs, and reduces the amount of junk food and
sugar-laden beverages sold in schools. With the Senate approving
the bill last summer, the measure will now be sent to the other
end of Pennsylvania Avenue where President Obama is expected to
sign the measure. The cost of the bill was offset by cuts to the
food stamp program.
On another front, the White House’s Office of Management and
Budget recently announced that under current funding legislation,
counties can no longer receive their share of geothermal revenues
established under the Energy Act of 2005.
The fiscal year 2010 Interior Appropriations bill (PL 111-88)
eliminated the 25 percent counties share of geothermal revenues.
This provision was repealed in the fiscal year 2010 Emergency
Supplemental Appropriations bill (PL 111-212), restoring these
much-needed funds to counties. However, because the current CR
for fiscal year 2011 refers to the fiscal year 2010
Appropriations Act for Interior, Environment, and related
Agencies – as opposed to the Emergency Supplemental – counties
are once again facing the possibility of not receiving geothermal
revenues.
CSAC’s Washington office is working with several key
congressional offices to ensure that the geothermal funds
continue to flow to California’s counties in fiscal year
2011.
Looking ahead, uncertainty looms over the remainder of the
lame-duck session as lawmakers wrestle with a number of highly
contentious issues. Senate Republicans have threatened to block
any bills that come to the floor until the unfinished fiscal year
2011 appropriations bills and the expiring Bush-era tax cuts have
been resolved. At press time, it is unclear how congressional
leaders will proceed with either of those timely issues or any of
the remaining bills that Democrats hope to complete before the
start of the New Year.