Thursday, July 15, 2010

Having failed to enact a 2011 budget, Dems gave up a vital tool

In electing to deem a federal budget, instead of  enacting one, the Democrats have inadvertently handed crucial blocking power to the minority Republicans.

Lacking a budget, the Democrats can not  resort to budget reconciliation, a tool that would allow them to enact controversial legislation with just 51 votes, instead of the 60 required to overcome a filibuster in the Senate.

On red-meat issues such as cap-and-trade, the Democrats will have first and 10 on their own 10-yard line instead of first and 10 at mid-field.

Here is how the Washington Independent describes the situation:

On Tuesday, the Treasury Department announced that the country’s deficit had hit the $1 trillion mark just nine months into the fiscal year. Fear of the deficit had already led Congress to kill or delay an administration-backed jobs bill, a federal extension of unemployment benefits, a war funding bill and federal funding for Medicaid. Now, the 13-digit monster has claimed its latest victim: a full budget for the coming fiscal year.



Recognizing that Democrats would be reluctant to record “yes” votes for a budget that would augment the deficit, the House leadership opted to deem as passed a “budget enforcement resolution” instead, just before the July 4 recess. While the distinction between an enforcement resolution and a full budget is largely technical, there is one crucial difference: Under the enforcement resolution, Democrats can no longer use a parliamentary tactic known as budget reconciliation next year — a process Democrats had hoped might allow them to pass key pieces of legislation, such as a jobs bill, with 51 votes in the Senate, as opposed to the usual 60 needed to overcome a filibuster.


Under the arcane rules of the Senate, budget reconciliation can only be used if it was written into the budget rules passed the previous year. With no full budget, there can be no reconciliation. As a consequence, Democrats lose a valuable tool for passing budget-related items on a majority-rules vote. Stimulus and jobs measures, if they combined short-term spending with longer-term deficit reduction, would have qualified for reconciliation.


Some policy advisers and members of Congress pushing for a such a measure — and recognizing that it could not make it past a Republican filibuster — viewed reconciliation as a last hope. “What we want to do is end up with legislation that is going to create a substantial number of jobs,” Sen. Bernie Sanders (I-Vt.) told reporters. “We don’t have 60 votes to do that. We could do that through majority rule, 51 votes.”


But a desire among Democrats to avoid voting on a deficit-increasing budget won out over the need to preserve reconciliation in creating the budget enforcement resolution. “Members looked at the budget and said, ‘We might need more deficit spending,’” said Jim Horney, the director of federal fiscal policy at the Center for Budget and Policy Priorities. “And anything you do to try to reduce those deficits would necessarily include policies that might not be popular — tax increases, cuts in major programs.” The House leadership judged the enforcement resolution as less of a political risk for moderate Democrats who will face difficult re-election campaigns in the fall.

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