New continuing resolution shows GOP’s strong hand

Fiscal years have now collapsed into fiscal weeks.

With no sign of a compromise on the horizon, House Republican leaders have taken the initiative and will unveil another stopgap funding bill on Friday that will cut roughly $6 billion from current discretionary spending levels and continue to fund the government for three weeks past the March 18 expiration of the current continuing resolution.

The cuts are expected to come from a mix of earmarks and programs targeted for termination in President Obama's fiscal 2012 budget, a combination intended to ensure passage in the Senate, which is controlled by Democrats.

The bill could be considered by the full House as soon as Tuesday.

Passage by the House is likely, as it keeps to the pro-rated level of cuts -- $2 billion per week -- that keeps them on track to roll back discretionary spending to approximately 2008 levels. Once passed by the House the measure would go to the Senate, which would then send it to the President Obama for his signature.

Although the proposal from the House underscores the strong negotiating position the GOP is in, some members are uneasy with the idea of another short-term extension.

"I am really not warmed over to that, because if you continue to do that you continue to create a lot of uncertainty and unpredictability for the American people," said Rep. Allen West, R-Fla., a tea party favorite and one of 87 GOP freshmen. He would not say whether he would vote for the measure.

West said he is against the idea of short-term measures funding the government and would like a bill to take care of the rest of the year, and is urging the GOP to stand by their proposal to cut $57 billion from current spending levels. "This is a drop in the ocean … we will look like idiots."

West noted that the Government Accountability Office released a report last week that listed 33 areas where federal programs overlap, creating the potential for savings through consolidation or elimination of duplicative programs. Republicans said that such actions could save up to $100 billion a year.

The three weeks will provide additional time for congressional leaders and the White House to negotiate a compromise. The government is currently operating on a stopgap measure that runs through March 18. If Congress fails to act on a short-term extension or an agreement for the remainder of fiscal 2011, which ends on September 30, the government would shut down.

If no deal materializes, it's unclear what the appetite will be to do another short-term extension, given that more difficult cuts will likely have to be made then. "Then you are past the window dressing, and then you are actually into some substantive spending cuts," said Rep. Steven LaTourette, R-Ohio, a member of the Appropriations Committee. "What happens after those three weeks depends upon how much movement there is in those three weeks. If there is movement, great; if there is not movement, then what's the point of keeping talking?"

White House officials, including Office of Management Budget Director Jacob Lew and National Economic Council Director Gene Sperling, met with Senate Democrats on Thursday. The discussion centered on "where we are and what we need to do address the current situation with the budget," said Sen. Jeanne Shaheen, D-N.H. "It was a good exchange of ideas."

The latest developments come after the Senate defeated a Republican proposal on Wednesday to cut $57 billion from current levels and fund the rest of the fiscal year. That vote went down, 44-56, with three Republicans joining Democrats in voting against the plan. The proposal, which fell well short of 60 votes needed for approval, was approved by the House last month. The Senate also defeated a Democratic alternative-which failed 42-58, with 11 Democrats joining Republicans in voting against the measure. The Democratic alternative would have cut $4.7 billion from current levels. The Democratic bill also needed to win 60 votes to pass.

Democrats held the votes to demonstrate that neither proposal would pass the Senate and that Republicans would be forced to negotiate down from the amount of cuts they want.

Meanwhile, a group of Senate Republicans pledged to block consideration of any bill in their chamber that does not seek to reduce the deficit and debt. They would not act on their threat if there is significant floor debate on the issue ahead of the need to increase the debt limit this spring. The group sent a letter on Thursday to Senate Majority Leader Harry Reid, D-Nev., outlining the issue.

"We're telling Sen. Reid that we'll object to any legislation that fails to directly address meaningful spending cuts," Sen. David Vitter, R-La., said in a release. "If Reid agrees to dedicate significant floor time to debate spending and debt well in advance of the federal government reaching our statutorily mandated debt limit, then we'll withhold our objection."

Reid spokesman Jon Summers said that the demand will delay needed legislation that would create jobs.

"After ignoring jobs for months, Republicans are making it official by vowing to block every bill that creates American jobs," Summers said.

Billy House contributed to this report.