The broad outline of the $3.5 trillion spending blueprint that Congress approved last week hews closely to President Barack Obama’s spending target and pays homage to his ambitious agenda. But the fine print contained a sobering warning about his marquee initiatives on health care, energy, education and economic recovery.
Congress’ message: We can’t do it all at once.
Both the House and Senate budget resolutions, which set guidelines for future spending, give the green light to an overhaul of the health-care system, but only if the president comes up with an acceptable way to pay for it. The budgets do not block action on Obama’s global warming initiative, but a bipartisan coalition has dashed administration hopes of moving it through on a fast track.
And the Democratic majorities in the House and Senate will probably be willing to give Obama whatever he eventually asks for to shore up the banking and financial system, but their budget writers refused to set aside the desired $250 billion.
“In Congress, they are saying, ‘Mr. President, this is more than the political traffic will bear,'” said William Galston, an analyst at the Brookings Institution. “They are not prepared to say no to Obama, but they haven’t figured out how to say yes.” Every Republican and several Democrats voted no Thursday evening when budget resolutions passed the House 233-196 and the Senate 55-43.
Negotiators will iron out the relatively small differences between them after Congress returns from recess in mid-April. The measure does not have to be signed by the president. It sets targets for tax and spending bills to be enacted later this year.
Although the resolution is not binding, it is a telling emblem of the extent — and limits — of Congress’ commitment to tackle so many major issues so fast.
In both chambers, Democrats argued that the budget should both shore up the economy in the short term and lay the groundwork for long-term economic growth with investments in education, health and energy.
Those ambitious goals appeared substantially harder to achieve after the Congressional Budget Office, using less optimistic assumptions, recently estimated that the deficit over the next decade would be more than $2 trillion bigger than the $7 trillion gap Obama’s aides had projected two months ago.
“When you lose $2.3 trillion in revenue because of the new CBO forecast, we felt it was necessary to make adjustments in the president’s budget while maintaining his priorities,” said Senate Budget Committee Chairman Kent Conrad (D-N.D.).
Republicans said the budget would still saddle future generations with an insupportable debt. They offered alternatives that would freeze spending for 10 years and proposed more tax cuts.
“We need to be adults and tackle these fiscal problems before they tackle us,” said Rep. Paul Ryan (R-Wis.), ranking Republican on the House Budget Committee.
Differences between the plans of congressional Democrats and Obama are relatively small, and Obama’s team expresses confidence.
“Our proposals will have to be nipped and tucked along the way,” said Ken Baer, spokesman for Obama’s Office of Management and Budget. “The president is clear that everyone is going to have to make sacrifices.”
But for a new president who could be at the height of his power and popularity, even small differences are red flags — a warning about what aspects of his agenda need a bigger White House push even within his own party.
The Senate budget did not make room for an extension of the middle-class tax cut that was a pillar of his campaign platform: the $400 break for working people.
More Top Picks Best Ups Battery Backups For Pc
And rather than find a way to pay for a health-care overhaul, the budget simply stipulated that the cost of any such plan must be matched with tax increases or spending cuts in other areas. The major House-Senate differences that will face negotiators writing the final bill later this month are not over what Obama wants, but how he wants Congress to handle it.
The administration is encouraging Congress to consider moving its major initiatives through a fast-track procedure known as “reconciliation,” which sidesteps any Republican filibuster.
At this stage, the positions being taken by members of both parties in part represent maneuvering for advantage.
But the differences are real, and the budget battles this year will be no piece of cake for the White House.
———–
Pentagon to give priorities Defense
secretary to unveil spending plan: chicagotribune.com/pentagonbudget