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March 11, 2011

Senate Defeats 2 Proposals to Close Out FY 2011 Funding 

Senators voted largely along party lines Wednesday to reject two proposals to fund the federal government for the rest of this fiscal year, leaving a legislative stalemate that will have to be resolved next week to avert a government shutdown when current appropriations expire next Friday, March 18.

A Republican proposal passed last month by the House of Representatives, HR 1, that would cut another $57 billion from the Fiscal Year 2011 budget (including $11.1 billion in discretionary transportation funding) failed in the Senate by a vote of 56-44. It did not receive a single Democratic vote.

An alternative Democratic plan to cut $6.2 billion in federal spending (including $2.3 billion in discretionary transportation funding) failed to garner any Republican support. The vote on Senate Amendment 149, offered by Senate Appropriations Committee Chairman Daniel Inouye, D-Hawaii, failed 58-42. Ten Democrats and one independent voted against the Inouye alternative.

Both proposals did not achieve a majority, let alone coming close to the 60-vote supermajority required for passage under a Senate order.

After the votes, Senate Majority Leader Harry Reid, D-Nevada, said he wants to strike a deal that would fund the government for the rest of the fiscal year, reiterating his opposition to passing stopgap bills two weeks or a month at a time, The Hill reported. Congress passed a two-week appropriations measure last week, extending funding from March 4 to March 18 and cutting nearly $1 billion from transportation programs. (see March 4 AASHTO Journal story)

Lawmakers on both sides of the aisle said spending negotiations will begin in earnest after the test votes forced senators to take public stances on the parties' competing proposals.

"Once it is plain that both parties' opening bids in this budget debate are nonstarters, we can finally get serious about sitting down and narrowing the huge gap that exists between the two sides," said Sen. Charles Schumer, D-New York.

A gulf of more than $50 billion in cuts still separates the two parties, and Republicans have shown few signs of backing down from demands for deep spending rollbacks, CQ Today reported.

More Transportation Cuts Likely in Next CR

House Appropriations Committee member Steven LaTourette, R-Ohio, said Wednesday that the next continuing resolution will be a three-week bill lasting through April 8. It would cut an additional $6 billion from current discretionary spending levels. That matches Republicans' previous demands to include $2 billion in new spending cuts for each week that Congress provides more funds for the fiscal year that ends Sept. 30. House Republican leaders are expected to include many of the $6.2 billion in cuts Senate Democrats included in the alternative package they put on the floor this week.

Those cuts proposed by Senate Democrats include reducing high-speed rail funding from $2.5 billion to $1 billion and cutting Federal Transit Administration "New Starts" construction grants from $2 billion to $1.85 billion. The Inouye amendment also includes language eliminating $630 million of unused highway earmarks from previous transportation bills.

The previously approved House bill (HR 1) includes cutting all $2.5 billion from high-speed rail for this fiscal year, reducing FTA New Starts grants from $2 billion to $1.57 billion, lowering Amtrak capital and debt-service grants from $1 billion to $850 million, eliminating the Transportation Investment Generating Economy Recovery grant program ($600 million), and zeroing out grants to the Washington Metropolitan Area Transit Authority ($150 million) and an FTA program to help transit agencies reduce their energy use and greenhouse-gas emissions ($75 million). In addition, the House-passed bill would rescind $631 million in previously approved TIGER grants, $6.25 billion in previously approved high-speed and intercity passenger rail grants, $355 million in previously approved FTA grants.

Senate Majority Whip Richard Durbin, D-Illinois, suggested his party might have to give some ground to Republicans to resolve the budget impasse.

Noting that several Democrats voted against their party's substitute because they favor deeper cuts, Durbin said: "So we know the sweet spot is somewhere between" the House and Senate positions. "We have to try to work to find out where it is."

White House spokesman Jay Carney stressed that Obama wants lawmakers to act "very soon" to strike a deal "that funds the government through the end of the year, cuts spending substantially in a way that all sides can agree on, and that maintains the important investments to keep our economy growing."

Obama has threatened to veto an appropriations bill if it comes to his desk with deep cuts in social programs and reduced government spending that could jeopardize the current economic recovery.


Questions regarding this article may be directed to editor@aashtojournal.org.

 
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