Appropriators Close to Omnibus Deal

Congress may finally come to an agreement regarding fiscal year 2008 (FY08) spending. House Appropriations Committee Chairman David Obey (D-WI) plans to introduce an omnibus spending package that he and his colleagues drafted on Monday. The omnibus bill includes funding for the eleven appropriations bills for FY08 that have yet to pass. The new deal, which brings total spending down nearly to the President’s request of $933 billion, signals Democrat’s willingness to submit to Republican demands for lower spending in order to avert a government shutdown.


Although the newest proposal is closer to the President’s request, Democrats are working to make sure this does not translate into significant program cuts from their original proposal. Instead, Chairman Obey is removing a majority of earmarked spending projects, in order to bring spending down to the levels desired by the President and his supporters in Congress. Nevertheless, many programs may still receive less funding than they would have under the Democrats’ original proposed levels. Lawmakers on both sides of the aisle are unhappy with losing their spending projects, but most are still willing to support any deal that will avoid a government shutdown. Senate leaders have yet to confirm their assent to such a proposal, though the time crunch may not leave them with much of a choice.
The government is currently operating under a continuing resolution (CR), funding agencies at FY 2007 levels. That CR runs out at midnight tonight. On Thursday, Congress passed an additional CR to run through Friday, December 21, giving them a week to get the omnibus bill through both Houses of Congress and onto the President’s desk. The president signed the CR today. House Majority Leader Steny Hoyer (D-MD) hopes to be able to adjourn next week, allowing members to go home for Christmas, but the adjournment date will rely heavily on whether or not Congress can pass the omnibus. If negotiations falter, Congress may pass a fourth CR, carrying over until January, preventing a government shutdown over the holidays.

The debate centers over the President’s unwillingness to compromise on his proposed total discretionary spending level of $933 billion. The Democrats in Congress originally came out with over $955 billion in discretionary spending, more than $22 billion over the President’s request. Under those spending levels, the Defense appropriations bill is the only one that became law. The President vetoed the Labor-HHS-Education bill, the largest domestic spending bill, back in November. After a failed override attempt, appropriators decided to “meet the President halfway” by bringing the total spending level down to about $944 billion. Over the weekend, after a series of failed negotiations with Congressional Republicans and the White House, Chairman Obey dropped the proposal, claiming that the other side was not proceeding in good faith.

This debate is largely one of political impression. The President is trying to prove that he is relevant and a true fiscal conservative. He has the support of Congressional Republicans that can either claim a victory by getting the $933 billion cap or cite the fiscal mess as evidence of poor Democratic leadership. The Democrats loath the capitulation but they have few options at this point. They cannot fail to pass their appropriations as the Republicans did in 2006, nor can they tolerate a government shutdown. Historically, government shutdowns reflect more negatively on Congress than the White House. These political obstacles make it difficult for Democrats to negotiate with any authority, which is why they are now proposing the lower spending level. The lack of earmarks may simply be Chairman Obey’s way of trying to retaliate at Republicans who support the President.

Although neither the President nor Republicans in Congress have openly supported the new proposal, opting to wait until Obey shares the bill with the public this weekend, the White House has hinted that it would support the bill, so long as it comes in, at, or close to the $933 billion cap. Republicans criticized the Democrats for taking so long to compromise on spending. Democrats held to their initial proposals for months, trying to make political statements regarding priorities for programmatic spending. Possibly holding on a bit too long, Democrats have left themselves only a week to reach a deal before the holiday recess. Meanwhile, Democrats contend that Republicans are to blame for their refusal to negotiate at all. Regardless of which side bears the blame, the White House will reap the benefits as it can claim a victory over Congress, assuming the $933 billion cap holds.

Resources:
David Clarke and Liriel Higa, “Lawmakers Edging Toward Final Deal on Year-End Appropriations Plan,” CQ Today, December 13, 2007.
Author: SAS