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White House, Congress in budget talks as possible federal government shutdown looms


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White House, Congress in budget talks as possible federal government shutdown looms

BY Aliyah Shahid and Corky Siemaszko

NY DAILY NEWS STAFF WRITERS

 

Wednesday, April 6th 2011

 

 

"The Statue of Liberty could stop greeting the huddled masses of tourists as early as this weekend if the federal government shuts down.

 

The White House and Congress were locked in high-stakes negotiations on Tuesday - and facing a Friday deadline to reach an agreement on a federal budget.

 

If they don't reach a compromise, the iconic statue would be one of the many federally-funded sites that might have to close.

 

But the real impact would be felt on Monday, when some federal government offices would stay closed - and everything from passport and visa requests to cleanup work at toxic Superfund sites could be suspended.

 

President Obama turned the heat up on Republicans to compromise by rejecting their request for yet another week-long stopgap extension of government operations.

 

"We are now at the point where there is no excuse to extend this further," Obama said.

 

House Speaker John Boehner (R-Ohio) also wants to avoid a government shutdown - something some Tea Party activists have been calling for.

 

That strategy blew up on the Republicans in the 1990s and enabled President Bill Clinton to win reelection when then-Speaker Newt Gingrich refused to compromise.

 

Obama has agreed to pare about $33 billion from this year's budget.

 

That's not enough for the Tea Party-backed Republicans, who wanted to cut at least $61 billion.

 

Also, the GOP wants to attach policy riders attacking Obama's health care and financial reform laws - and cut taxpayer funds to Planned Parenthood.

 

Meanwhile, House Budget Committee Chairman Paul Ryan (R-Wis.) unveiled a long-term plan to slash the budget deficit and pay off the national debt by essentially eliminating Medicare and Medicaid - programs that help the elderly and the poor."

 

 

http://www.nydailynews.com/news/politics/2011/04/06/2011-04-06_as_shutdown_nears_its_put_up_or_shut_up.html

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Guest lance25
This budget seems to be more about political motives than solving the fiscal crisis.

 

Of course it is; always has been, always will be. Congress still gets paid in a government shutdown, so it really doesn't matter to them.

 

From CNNMoney.com

NEW YORK (CNNMoney) -- If the government closes shop after Friday, the IRS will stop processing paper tax returns, the Small Business Association will stop making loans and federal home loan guarantees will be put on hold.

 

Those are just a few of the consequences of a government shutdown, according to senior administration officials, who detailed federal contingency plans for the first time on Wednesday.

 

Lawmakers have been trying to reach a compromise that would set spending levels for the next six months. But with the deadline fast approaching, there appears to be precious little movement toward a deal.

 

The current spending bill expires at the end of Friday.

 

The officials stressed that a shutdown would put a drag on the economy, as loans dried up and hundreds of thousands of government workers are put on furlough.

 

And for the first time, officials hinted at just how many workers would be asked to stay home. The official estimate: 800,000. That means almost a million Americans won't get a paycheck.

 

Those workers might be receive back pay at a late date, but only if Congress retroactively authorizes it. In other words, no guarantees.

 

In a nutshell, agencies will only be allowed to perform operations necessary for the safety of human life and protection of property. (Read what happened during the last shutdown.)

 

National Park Service sites and the Smithsonian Institution would be shuttered, and the Cherry Blossom Festival parade scheduled for this weekend in Washington would be cancelled.

 

Some of the government's biggest jobs, like defense and medical research, would also take a hit.

 

U.S. troops would be paid through April 8, but after that, paychecks to members of the military, including those in war zones, would stop.

 

The National Institutes of Health will stop accepting new patients, and put clinical trials on hold.

 

At the IRS, paper tax return filings -- about 30% of all returns -- would be put on hold, but electronic filings would be processed.

 

The Environmental Protection Agency would stop reviewing environmental impact statements, which will slow crucial energy related projects.

 

E-Verify, the Department of Homeland Security program that helps businesses determine the eligibility of employees, would be suspended, which could lead to hiring delays.

 

The story above is what will probably happen if the government shuts down, right in time for those who just filed their taxes before the April 18th deadline.

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If troops wont get paid after April 8th, does that mean they can stop fighting after that date? Because I would take full advantage of that.

 

So would your enemies. They won't stop shooting even if you do. The military WILL get paid.

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So would your enemies. They won't stop shooting even if you do. The military WILL get paid.

 

Very true indeed. A question? What happens to people like my mom who retired and receives a monthly social security retirement check. Can't seem to find that info.:confused:

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Very true indeed. A question? What happens to people like my mom who retired and receives a monthly social security retirement check. Can't seem to find that info.:confused:

 

I found a similar situation concerning IRS refunds. It appears that if there is a government shutdown ELECTRONIC direct deposits will still go out but checks won't be sent out because there will be no one to input the data(?) ,and mail those checks. I'm going out on a limb and guessing this will be the process for the Social Security Dept. also even though SS checks are more important to everyone than the refunds are, IMO. It's also another way to get more people to take the direct deposit option vs the paper check one which the SS department wants to do anyway.

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Shutdown Avoided. We went down to the final hour before a shutdown. The shutdown almost occurred when a near deal breaker major was the dispute by Tea Party GOPERS to reduce or end funding for planned parenthood. This despite fact an earlier law makes it illegal for congress to provide funding specially for abortion.

 

Shutdown is avoided.

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If this doesn't prove how Obama should be a one term president [some of his supposed campaign promises being to end the Iraq war {not to start a new war against a country that's not a threat to us like Libya} and to cut spending], then nothing will...

 

But I suppose taking trips across the country/globe is more important than actually doing his job.

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Guest lance25

I don't see what Obama taking a vacation from time to time has to do with Congress's inability to get anything accomplished. What about Bush? Nearly half of his presidency was spent elsewhere and not the White House.

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Same goes for him, I didn't support Bush in his 2nd term. Point is, Obama should be standing to his campaign promises to stop wars [not start new ones] and to cut spending [not cause the national debt to be $14 trillion]. To me his vacations are the icing on the cake. Time for someone else.

 

 

Concourse being objective if the economy has improved by next Nov. 2012, as many people are predicting Obama will be re-elected. The old phrase the 'economy stupid' is always at or near the top of every campaign in American History.

 

While it's early that pretty much the republicans best chance to beat Obama. Incumbents are hard (not impossible) to beat.

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