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What $20 Billion Offer?

It has been widely reported that Democrats — specifically the White House — are “preparing” to offer an additional $20 billion in spending cuts as part of a continuing resolution for the remainder of the fiscal year. That would be on top of the $10 billion that has already been cut as the result of two short-term resolutions, and would bring the total amount of cuts roughly in line with House Budget Committee chairman Paul Ryan’s original figure of $32 billion, and about half of the $61 billion in cuts contained in H.R. 1, the long-term spending bill passed by the House last month.

House Minority Whip Steny Hoyer (D., Md.) touted this as evidence that the White House is actively engaged in the budget talks, and suggested that Republicans won’t accept the offer because they are “stuck on H.R. 1″ and “cannot agree with themselves.” He referred to the $20 billion offer as a “starting point to discuss,” and insisted there has been “no response” from the GOP.

But senior Republican aides tell NRO that they still haven’t seen this alleged offer from the White House. Even assuming the offer is legitimate, some are skeptical of what it might contain in terms of cuts. Republicans want real spending cuts out of the discretionary portion of the budget, but the Democrats’ most recent offer included a sizable chunk of “savings” from mandatory programs. Also, the Democrats’ refusal to accept any of the policy riders from H.R. 1 could be yet another sticking point in negotiations.

UPDATE: Senate Majority Leader Harry Reid (D., Nev.) tells reporters that the latest Democratic offer for a long-term CR is “$70 billion” in spending cuts. He presumably arrives at that figure by taking the $40 billion “cut” by failing to enact President Obama’s 2011 budget, plus the $10 billion cut by the recently-passed short-term resolutions and now this additional $20 billion. In reality, it would constitute a spending cut of about $30 billion.

“That’s our number,” Reid said, adding that the cuts “don’t all come from the discretionary side,” but giving no further details. He characterized the alleged $20 billion offer as “extremely good” and that in putting it forward Democrats were meeting Republicans “far more than half way.”

Reid argued it was now up to Republicans to make the next move, but question whether they are prepared to do so. “What are [Republicans] afraid of?” he asked rhetorically. “They are afraid to tell the extreme* Tea Party members of the caucus that they are trying to find common ground with Democrats. Is that so embarrassing?”

* Somewhere, Chuck Schumer is smiling.

Reid continued to follow Schumer’s script by attempting to drive a wedge between GOP leadership and the Tea Party. “Speaker Boehner has two choices,” he said. “Anger the Tea Party base or shut down the government.”

Earlier this afternoon, Senate Minority Leader Mitch McConnell (R., Ky.) ducked a question as to whether a $20 billion offer would be acceptable to Republicans, saying only: “We want to reach an agreement for this year. I think there’s widespread agreement on that.”

Minority Whip Jon Kyl (R., Ariz.) when asked about the $20 billion offer, replied: “I don’t even know what you’re talking about.”

UPDATE II: House Republicans leaders issued a firm rebuttal to Senate Democrats at a press conference this afternoon, calling on them to pass a bill before negotiations over a long-term deal can go forward. House Speaker John Boehner (R., Ohio) pointed out that 38 days have passed since the House passed it’s version of a spending resolution to fund the government through the remainder of the fiscal year (September 30), and in that time period the Senate has failed to act. Furthermore, Boehner said, Democrats are ultimately responsible for the current predicament because they failed to pass a budget for 2011. “They created this mess because they failed to do a budget, they failed to do appropriations bills, and it’s time to for the Senate to move a bill so that we can sit down and begin negotiations,” Boehner said. “We’ve done our work. Instead of messaging and marching orders, maybe what they should do is get to work and actually pass a plan.”

House Majority Leader Eric Cantor (R., Va.) called out Senate Democratic leaders for “playing political games” and for not approaching the debate in a serious fashion. “The American people don’t understand why it seems that Harry Reid, Chuck Schumer and the rest feel like it’s important to defend every dollar and cent of total spending,” he said. “Chuck Schumer is intent on playing political games. When he decides to tell his caucus to depict Republicans in the House as not serious and to depict every spending cut as being nonsensical, that is the thing that’s not serious.”

Cantor said it was clear that Reid, Schumer, et al. have to decided to not to support any efforts to cut spending, and challenged them to put forward an alternative plan to reduce the deficit. “You either cut spending or you raise taxes,” he said. “Where is Harry Reid’s plan to raise taxes?”

Asked about the Democrats’ alleged $20 billion offer, Boehner said: “There are a lot of numbers that have been thrown around; the face is there is not an agreement on a number.”

“Nothing can be agreed to until everything is agreed to,” he continued. ‘It’s not just cutting spending; there are a number of limitations that passed the floor of the House,” presumably referring to policy riders attached to H.R. 1 (defunding of the EPA, Planned Parenthood, etc.).

Following the conference, GOP aides reiterated that Republicans have yet to see a specific proposal from Democrats.

New on The Corner. . .


COMMENTS   29

EXPAND  

   03/29/11 15:15

Even if the "offer" is sincere, it's far from adequate; it would take untold numbers of offers like this in a very short time to make a meaningful dent in the fiscal problem.

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   03/29/11 15:19

So if the Republicans don't accept this "offer" site unseen, it will be their fault if the govt shuts down.

Don Corrleone couldn't have said it any better.

(how much of these cuts are actually tax increases in disguise?)

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 Zmac
   03/29/11 15:20

$61 Billion in cuts or bust! Needs to at least be a drop in the bucket! GOP needs to understand that extra government spending is going to be used as slush fund in 2012 to defeat them.

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KBo
   03/29/11 15:25

The best strategy, I think, is to cut the $200 billion in duplicate spending found by the GAO (I think that was the number). Then put together a few (3 or 4) packages of about $100 billion in cuts. Or more. Package all that and then say to the Democrats, you choose the package of cuts that you think is the best for the country. It would be very difficult for them to choose none of the above, and they would get blamed for any shutdown.

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   03/29/11 15:31

On January 1st of this year, I decided that sometime this year I was going to buy a $30,000 car. Today, I decided that I would not buy a $30,000 car this year. I just made a $30,000 cut to my budget! Hooray! I'm a Democrat now!

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Real American
   03/29/11 15:32

if these budget proposals spend more than last year, then there are ZERO CUTS. Time for some honesty.

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   03/29/11 15:34

I just decided to not borrow $1,000,000. I have just cut my budget by a million dollars! Whoop! This is fun!

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   03/29/11 15:38

As underhanded as it gets.

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   03/29/11 15:39

Go, DougV!!!!! Congrats on your fiscal responsibility and effort!
;)

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1776
   03/29/11 15:40

Implement Michelle Bachman's strategy. Start by defunding Obamacare to the tune of $105 B.

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Bat Dad
   03/29/11 15:41

This is what I love about NRO. You are so transparently part of a political movement, so transparently interested in journalistic integrity, that you will literally say whatever you're instructed to on your movement conference calls with Grover.

Ok, so what so magically makes discretionary cuts better than cuts to mandatory programs? Please explain this sudden infatuation of yours with protecting the 80% of the budget that's mandatory or defense.

Fiscal conservatives my behind.

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JinNE
   03/29/11 15:53

This is like bailing out the Titanic with a thimble. Even if Reid's "$70 Billion" figure was real money (which it isn't) it amounts to about one week's worth of deficit during Feb 2011 alone. So after all this heavy duty negotiating we'll have reduced the annual deficit by one week's worth. Grab a life jacket folks - we're going down!

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Wayne Hermes Jr
   03/29/11 15:59

Stick to your guns and if the goverment shuts down so be it

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   03/29/11 16:16

Sen. Reid is pathetic, he is making a feeble attempt to sow discord in GOP ranks. The discord is in Dem Senate ranks who face voters next year. We don't care about Reid's stupid Cowboy Poetry festival. If the Nevada GOP hadn't been so foolish as to nominate a doozy like Sharron Angle, Reid would be reading his own poetry at that Poetry Festival. No funding for ObamaCare. If the Govt shuts down it's the fault of the Executive Branch. Obama is no Slick Willie, The House GOP is in an exremely strong position and they should push it NOW! This is no time for timidity. Let Obama explain why he shut down the Gummint for ObamaCare

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   03/29/11 16:23

People's newfound attention to discretionary spending?

I do not KNOW for certain. I'm gonna go out on some limbs here, though. Hold onto my legs, please!

PERHAPS it's caused by the Democrats' spending spree on such discretionary items, to the tune of more than $2 TRILLION in new debt added in less than two years on discretionary items alone.

So, since the bulk of the latest deficit spending was on discretionary items, then that is, like, um, you know, like, um, a real good place to, um, start cutting back, ok?

And maybe there are those among us who have been living under rocks (or in the District of Columbia!) for the past 3 decades. To quote them old awesome Lowenbrau tv ads, "Here's to good friends . . ."

It's been rendered practically impossible to cut ANYTHING from "mandatory" programs.

There is this quaint little phrase about social security being some sort-of "third rail" of American politics, or something, whatever that is supposed to mean! Why it's the "3rd" rail and not the 2nd, puh! NO CLUE HERE!

Anyway, it's like, um, you see, um, really, like-hard to cut entitlement programs. So, when we have, like, a big Whopper of a debt problem, and some people, like, have just finished a discretionary spending spree to the tune of over $2 TRILLION, why, we just, um, stupidly gravitate toward cutting back on the optional items in the budget.

HEE HAW! HEE F'ING HAW!

Maybe, if all our knuckles here at NRO among the reader-class were not so chafed from rubbing against the tarmac all day, and if we could stop biting our bottom lips with our buck teeth, and if we could just put down the stupid black leather books we tote under our armpits, we'd stop focusing on discretionary spending and dive right in to the mandatory items.

Crystal clear?

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DJH
   03/29/11 16:58

Funny, the deceitful, intellectual coward reid and others claimed they met reps halfway on healthcare too - of course the halfway part 'they' gave up was the public option that would never pass to begin with. According to them that was meeting the reps. Never mind that they were left out of all discussions and ultimately were given a week, but the dems refused to allow any changes.

Once again, the deceit from the left. If you're way is so 'right' then why do you have to lie to sell it? Why do you have to attack a majority of Americans, specifically middle America, to sell it? Hmmmmm.

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lmora
   03/29/11 17:05

Shut it down. With tea party backing and well articulated position this is huge victory for Republicans.

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alwaysright
   03/29/11 17:16

SHUT IT DOWN !!! With tea party backing this issue, just like
November election landslide victory for Republicans. Must articulate position well. Voters concerned about deficit spending. This is a fight you have to fight or it's over for America.

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TL
   03/29/11 17:31

There is no worry about Reid driving a wedge between the GOP leadership and this Tea Partier. The GOP leadership lost me when they made their pathetically small "pledge" to begin with. The GOP leadership is haggling over change while they have the absolute power to balance the budget right now, just by not voting to raise the debt limit. I already despise them just as I do Reid.

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   03/29/11 17:49

I also find suspicious that they refer to "savings" in mandatory spending and "cuts" in discretionary spending. To Dems, deciding to increase a budget by 5% instead of the planned 10% is considered a "savings" of 5%. I say cut what you can, when you can and where you can. I read somewhere someone suggested that it would be difficult to get seniors to agree to cuts to SS unless it's been shown that everything else had already been cut.

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