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Economy

House GOP Threatens Government Shutdown To Get Steeper Cuts To Food Assistance, Financial Regulations

House Republicans made it clear earlier this year that they had no intention of upholding the debt deal reached in 2011, despite a vow from President Obama that he would veto any appropriations bills that attempted to cut more spending than was agreed upon last August and a pledge from Senate Minority Leader Mitch McConnell (R-KY) that the deal would be upheld in the Senate.

After earlier indications that they would make substantial cuts to domestic programs to preserve defense spending, the House Appropriations Committee made it official yesterday, setting a spending level $27 billion below the level agreed to in the debt deal. The committee, bowing to the GOP’s more conservative wing, will make deep cuts to food assistance, financial regulations, and a host of other programs, setting up the potential for a government shutdown when the fiscal year ends in October, Politico reports:

The House begins with a total of $1.028 trillion for discretionary spending, $19 billion below the $1.047 trillion target set last summer and $15 billion below what was enacted just months ago for the current 2012 fiscal year. Republicans would also go $8 billion over the caps set in the Budget Control Act for defense spending, and the result would be a net reduction of more than $27 billion from all other appropriations.

This translates into an added cut of about 5 percent, with the burden falling chiefly on a half-dozen domestic spending bills affecting nutrition programs, transportation, financial regulatory agencies, natural resources, and especially the labor, health and education bill cited by Dicks.

After GOP leadership worked with Democrats to form the debt deal last year, the party’s conservatives have seemingly wrangled control back from Speaker John Boehner (R-OH). House Appropriations Chair Hal Rogers (R-KY) opposed efforts to break the deal but went along at Boehner’s urging in attempts to assuage more conservative members — even still, four conservatives pushed Rogers to cut as much as $97 billion from the debt agreement.

Senate Republicans, despite McConnell’s stated position last week, are now making similar rumblings. South Dakota Sen. John Thune (R) said Wednesday that the Senate GOP may back House Republicans in setting lower spending limits, saying, “I think we’ve got to be as aggressive as we can in trying to rein in the cost of government, the growth of government.” With White House officials reiterating the president’s veto threat, however, 2012 is shaping up similarly to the summer of 2011, when Republicans repeatedly pushed the government to the brink of shutdown and nearly caused its default before striking a debt deal at the last minute.

Climate Progress

Update: 2011 Sets Record for Most Disasters, GOP Demands Relief Funding Be Offset by Clean Energy Cuts, Then Blinks

This year just set the record for most Federal Emergency Management Agency declared disasters.  And we’ve still got 3 months to go.

It is strictly a coincidence, of course, that most of those disasters are climate related and climate scientists predicted that as we pour more heat-trapping gases into the atmosphere we would see more record-smashing extreme events (see “Two seminal Nature papers join growing body of evidence that human emissions fuel extreme weather, flooding that harm humans and the environment“).

And no doubt it is similarly coincidental that the pro-pollution, anti-science extremists who run the House of Representatives are demanding relief efforts for these disasters be offset by cuts in clean energy programs that create jobs and cut emissions of heat-trapping greenhouse gases that make extreme weather disasters more likely.

I believe Congressional Democrats and the White House should be willing to shut the government down rather than giving in to the GOP masters of disaster.

UPDATE:  TPM reports, “Senate Averts Government Shutdown Threat, Funds FEMA“:  “The threat of a government shutdown, and the possibility that FEMA will run out of money this week, will both be averted, thanks to some clever accounting and the GOP’s lack of will to keep holding disaster relief funds hostage to budget cuts.”  So it looks like the GOP overplayed an inanely weak hand and blinked:

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NEWS FLASH

Boehner Pans Tea Party Congressmen Who Defied Him As ‘Know It Alls’ | Following the surprise defeat yesterday of a GOP resolution to keep the government funded, House Speaker John Boehner (R-OH) was described as “spitting nails” in a closed-door meeting with other GOP lawmakers, suggesting “the usually unflappable speaker is reaching something close to a breaking point with his internally divided conference.” The National Journal reports that, in private, Boehner reportedly called the 48 Republicans who broke with the GOP leadership to kill he measure “know-it-alls who have all the right answers.” The bill contained funds for disaster relief, which were offset by spending cuts elsewhere. But Boehner is now threatening his caucus with the prospect of proceeding with a “clean” continuing resolution, which would not have the offsets and be more costly, and thus, less appealing to the Tea Party wing of the party.

Politics

BREAKING: House GOP Votes Down Resolution Containing Disaster Relief Funds It Promised Not To Hold Hostage

With just more than a week until the government’s spending authority ends, the House’s continuing resolution failed 195-230 today, as 48 Republicans broke with party leadership to vote down the measure that would have kept the government functioning through mid-November had the Senate passed the same version. The resolution had been expected to pass easily.

Republican opposition was based on House Majority Leader Eric Cantor’s (R-VA) attachment of $1 billion in disaster relief funds in the wake of Hurricane Irene and other climate disasters, which Republicans, including Cantor, had demanded be offset by spending cuts in other areas. Last week, Cantor promised that no one in the House Republican caucus would hold disaster relief hostage over spending cuts — an assertion that today’s vote has apparently proven false. Democrats opposed the offsets Republicans did find, which targeted funding for energy efficienct vehicles. A bipartisan Senate majority approved $7 billion in disaster relief funds last week.

The House GOP brought the government to the brink of shutdown in April, when a last-minute deal with Democrats ended in a six-month spending bill that expires next week. It appears they’re doing it again.

Politics

VIDEO: At Rick Perry Rally, Tom DeLay Hopes For A Longer Government Shut Down Next Month

ThinkProgress filed this report from The Response rally in Houston, Texas.

On Saturday, Gov. Rick Perry (R-TX) held a prayer rally with an assortment of right-wing pastors in Houston, Texas. ThinkProgress attended the supposedly “nonpolitical” event, and noticed a parade of Republican politicians and consultants milling about backstage. To our surprise, we encountered former House Majority Leader Rep. Tom DeLay (R-TX), who told us that he was attending as a private citizen.

We spoke to DeLay about some of the issues in the news, including the possibility of another government shutdown next month when the continuing resolution budget expires. DeLay, who helped manage the Gingrich government shut down in 1995, said this time Republicans should refuse to negotiate and should close the government “until they get what they want.” He also said he is “always praying” for reducing the size government, even if that means a closure of federal agencies:

FANG: Regardless of the current leadership of Congress in the House, how do you think Congress should proceed in general as the C.R. runs out next month? There could be a government shut down–

DELAY: They’re going to face another shut down. And hopefully this time they’ll let it shut down until they get what they want. Everyone points to the shut down we had in ’95 and says it was a horrible thing. The horrible thing was when Bob Dole walked out on the Senate floor on Sunday afternoon and re-opened the government. Including in President Clinton’s own book, that if we’d had held out for one more day, we’d have won. […]

FANG: Were you praying today for reducing the size of government even if it comes to a government shut down?

DELAY: I’m always praying for reducing the size of government!

Watch it:

DeLay wouldn’t comment directly on the leadership of his successors in Congress, like current House Majority Leader Rep. Eric Cantor (R-VA). But he did say he hopes they take a harder line against Obama to defeat him in 2012.

Justice

House GOP Plans To Exploit Jobs Crisis To Permanently Shut Down The Federal Government’s Ability To Regulate

Americans depend on federal regulators to keep them safe literally every single day. FDA regulations ensure that our medicines are safe, effective, and reasonably free from toxic side effects. Vehicle safety regulations allow us to buy cars that enable us to survive an accident. Before the federal government started regulating food safety, something as innocuous as a bottle of ketchup could contain a toxic mix of mold, rot, and spices added to cover up the flavor of decay.

And yet, House Republicans would effectively shut down these regulators’ ability to perform the most basic functions of their job:

The GOP will make a major push this fall for the REINS Act, which would require all major regulations to get a vote in Congress. [...] Unions and consumer groups are outraged over the REINS Act and have been lobbying against it.

They say it will severely delay regulations, increase corporate influence over health and safety rules through increased lobbying and allow politics to displace science. Especially problematic for them is a provision that if Congress does not approve a regulation within 70 days, it is cancelled and cannot be considered again.

House Republicans claim that REINS will simply provide an additional layer of congressional oversight before a federal agency can improve vehicle safety standards or reduce greenhouse emissions or streamline the FDA’s process for approving new drugs, but the actual effect of REINS would be to completely freeze much of the federal regulatory structure in place — permanently.

For one thing, while REINS’ chief sponsor claims that it would prevent new regulations from being filibustered in the Senate, the bill does not account for a loophole in the Senate rules. As a result, all but the most insignificant new federal regulations would be shut down completely unless they could somehow earn supermajority support in the Senate.

And even if the Senate somehow decided to put aside its partisan differences and start approving rules, it’s not even clear that it would have enough time to do so. Last year, the Senate simply sat on literally hundreds of bills that passed the House — many of them unanimously — because it didn’t have enough time to pass them. In 2010, federal agencies issued more than 90 new rules that would have required congressional approval within a narrow 70-day window if REINS were enacted. It’s anyone’s guess where Congress would find the time to approve all these rules.

Nor is it even clear how REINS would advance the right’s deregulatory agenda. As Sally Katzen, a former chief overseer of the federal regulatory process, points out, “Agencies sometimes propose eliminating outdated rules. But even these efforts at regulatory streamlining would nonetheless get caught in the REINS Act net, as deregulatory rules are nevertheless still rules.”

In short, REINS would place every major federal safety regulation, every agency’s major effort to rein in Wall Street, and even every major effort to reduce the burden of federal regulations in the hands of a body that just spent two months trying to decide whether to force America into a catastrophic economic default. If Congress can’t even agree to not blow up the entire U.S. economy, it unclear why anyone thinks that it could pass just one of the dozens of new measures REINS would require it to approve every year.

Economy

30 Years After Reagan Busted The Air Traffic Controllers Union, GOP Holds FAA Hostage Over Anti-Union Demands

Thirty years ago today, President Ronald Reagan threatened to fire almost 13,000 air traffic controllers unless they called off their strike and returned to work. He then followed through on his threat, firing most of the workers — represented by the Professional Air Traffic Controllers Organization (Patco) — and banning them from the federal workforce for life. Today’s GOP is celebrating by holding another group of airline industry workers hostage over the party’s radical anti-union stance.

Republican demands that a measure making it harder for workers to unionize be attached to the re-authorization of the Federal Aviation Administration (FAA) has led to the agency’s shutdown, costing the government more than $200 million a week, leaving 4,000 FAA employees and 70,000 construction workers out of work, and forcing airline inspectors to work without pay. And because Congress is now in recess until September, the shutdown is almost assured to last at least another month.

The FAA shutdown is the latest GOP effort to weaken unions at the federal and state level. And while Reagan broke Patco, a move that had many damaging and long-lasting effects on the American labor movement, today’s Republicans are going much further, according to Joseph A. McCartin’s editorial in today’s New York Times:

Over time the rightward-shifting Republican Party has come to view Reagan’s mass firings not as a focused effort to stop one union from breaking the law — as Reagan portrayed it — but rather as a blow against public sector unionism itself.

As McCartin points out, Reagan did not oppose public or private workers’ right to organize or collectively bargain, only the ability of public workers to strike. Reagan himself was a former union leader and led the 1960 strike of the Screen Actors’ Guild.

The GOP’s attempts to further weaken the labor movement, meanwhile, come at a time when union membership continues to shrink, thanks in large part to Reagan’s 1981 effort and Republican policies of the last 30 years. And the moves come at a time when American workers could benefit the most from robust unions.

Union members make more than comparable non-union workers, and a recent study tied declining union participation to rising levels of income inequality. Other studies show that returning to 1980 union membership levels would add more than $1,500 to the income of the average middle-class American worker.

Republicans still insist that they care about workers and ending America’s job crisis. Unfortunately, by standing up for airline companies and against the 74,000 people they have put out of work, their actions continue to tell a different story.

Economy

FAA Will Close at Midnight, Furloughing Up to 4,000 Workers

The Federal Aviation Administration will shut down at midnight after GOP senators refused to let go of an anti-union provision amending the National Mediation Board’s union voting rules. Speaking of the matter, Sen. Dick Durbin (D-IL) lambasted his colleague Sen. Orinn Hatch (R-UT) on the Senate floor over the political manuevering, saying that Hatch is only presenting “one side of a story”:

We’re going to lay off 4,000 people at midnight tonight. Do you think that means anything to them? What I offered was a clean extension that didn’t get into the merits of this, which said let’s put this big debate aside and that debate aside and keep the agency working, the federal aviation administration. [Hatch] said, ‘No, you either take the Republican approach or else.’

And incidentally, he told you at the outset, the House Republicans have gone home. They’re gone. They sent this over and said, ‘Take it or leave it or close it down.’ That’s not a very sound choice for our country.

Watch it:

As a result of Congress’ failure to pass any sort of long-term funding deal for the FAA, around $2.5 billion worth of airport construction will cease and airlines will have to stop collecting around $200 million a week in ticket taxes. The up to 4,000 furloughed employees will include engineers, administrative assistants and computer specialists, but air traffic controllers will stay on duty.

Sarah Bufkin

Politics

Minnesota Bars Running Out Of Beer Due To Government Shutdown

Around 300 bars and restaurants in Minnesota will not be able to buy alcohol until the state reaches a budget agreement and ends its government shutdown. Since closing down all but the most important services on July 1, the state has stopped issuing the $20 buyer cards required by retailers to replenish their alcohol inventories — bad news for Minnesotans already hurting from the cuts to their social services.

Restaurants are already reporting being low on inventories, and Frank Ball, the executive director of the Minnesota Licensed Beverage Association, calls the situation “crippling” to the alcohol retail industry. In an interview with Minnesota Public Radio’s Cathy Wurzer, Ball warned against beer spoiling in warehouses and bars closing:

Wurzer: “The penalty for buying or selling alcohol without this card is about $250 for the first offense. Do you think it might be wiorth it to some of these bars and restaurants and liquor stores and their providers for that matter to just kind of chance it and risk paying he fine?

Ball: “They’re sitting on millions of dollars worth of sales here, and they could be fined up to a thousand dollars for the suspension of their license for each event. But there’s nobody to enforce that law. So we don’t cover the wholesalers–that’s a decision they’ll have to make–but [with] our retailers, we’re telling them, if you’ve got a wholesaler that will sell to you, buy. Because otherwise if they run out of their product, our bars and restaurants are going to fold. They’re going to close.”

Along with losing their neighborhood bars, Minnesotans may also have to cope with the loss of MillerCoor’s 39 brands of beer. After misfiling its brand-label registration paperwork in June, the company could not procure the necessary documents from the state before its offices shut down a couple of weeks later.

But beer is only the latest victim in the state’s government shutdown debacle. Each day, Minnesota is losing $1.25 million from lottery sales and $200,000 from the closures of its state parks. By month’s end, the state coffers will be short $52 million it would have collected in tax revenues. And yet, as social services suffer and government workers idle without paychecks, lawmakers have made no movements recently toward a budget compromise. If the state legislature stopped focusing on politics and started focusing on people, we might start to see progress.

Sarah Bufkin

Justice

California Lawmakers About To Lose Their Salaries Over Failure To Pass Budget

The California Assembly Chamber

California isn’t exactly known for its sensible budget policy. The state’s long history of requiring supermajorities in order to raise taxes has turned it’s broken budget process into an international laughing stock. Nevertheless, California’s constitution does contain one very sensible provision — under a ballot initiative which was enacted last November, if lawmakers do not pass a budget by June 15, their salaries will be permanently docked:

[I]n any year in which the budget bill is not passed by the Legislature by midnight on June 15, there shall be no appropriation from the current budget or future budget to pay any salary or reimbursement for travel or living expenses for Members of the Legislature during any regular or special session for the period from midnight on June 15 until the day that the budget bill is presented to the Governor. No salary or reimbursement for travel or living expenses forfeited pursuant to this subdivision shall be paid retroactively.

California Comptroller John Chiang announced yesterday that the legislature has not yet complied with this provision, thus its members will lose their pay in two weeks if a new budget is not enacted. And, frankly, the federal government would be much improved if it took a page out of California’s book.

Earlier this year, the federal government came within inches of an economically catastrophic shutdown because right-wing lawmakers refused to fund the government unless they could exact some concessions from President Obama. This summer, the GOP could blow up the entire U.S. economy by forcing us to default on our debt unless Obama signs economically crippling spending cuts into law. Meanwhile, there is nothing in the U.S. Constitution or anywhere else in federal law that penalizes lawmakers who fail to complete must-do tasks like funding the government or raising the debt ceiling.

California’s pay-docking provision is a good idea, but it probably doesn’t go far enough. Many modern constitutions are designed to make it next to impossible for a government to cripple itself via inaction. Canada, for example, recently had to dissolve its entire government and hold a new election because it’s previous legislature failed to pass a budget.

But, in the United States, Speaker John Boehner, Rep. Paul Ryan (R-WI), and their follow extortionists will suffer few personal consequences if they force us into the impossible choice of either killing Medicare or defaulting on our debts. Their jobs are guaranteed for two full years, and they can always retroactively pay their own salaries in the event of a shutdown. Worse, if Tea-drunk members of Congress bring us within inches of blowing up the nation’s economy, our Constitution contains no fail-safe to prevent catastrophe.

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