Shutdown wrap-up
Thursday, Oct 17, 2013 - Posted by Rich Miller
* I’ve read quite a bit of coverage about the deal to end the government shutdown and avoid hitting the debt ceiling. Lots of stories focused on the possiblity that this could happen again next February. I highly doubt it. From Government Executive…
The measure also extends the nation’s ability to borrow—which the administration said would be exhausted Thursday—through Feb. 7. The Treasury Department will be permitted to use extraordinary measures to borrow after that date, if it needs to, which could extend the deadline. There’s also a mechanism for Congress to vote in favor of a “motion to disapprove” any increase the president announces, but Obama can veto that and force an override effort.
No way will both chambers pass a motion to disapprove.
At least on the borrowing limit aspect, this was a complete defeat of the tea party Republicans.
* Illinois may actually get some jobs out of the bill…
Buried in the Senate bill to end the partial government shutdown and raise the debt ceiling is a provision to nearly quadruple funding for an Ohio River dam project, an allocation slammed as “disgraceful” by Republican Sen. John McCain.
The dam project, which was approved in 1988, has drastically soared over its original budget of $775 million, and the new bill will raise its funding to nearly $3 billion.
Supporters of the project, called the Olmsted Locks and Dam, say it is necessary to reduce bottlenecking at the crossing of the Ohio and Mississippi rivers. Despite being approved over 20 years ago, the project is still described as “under construction between Illinois and Kentucky” on the Army Corps of Engineers’ website.
Nothing like a little pork for the Senate Minority Leader to grease the wheels of government.
Heh.
* While most House Republicans voted against the compromise bill, just one Illinois Republican voted “No”…
Rep. Randy Hultgren, an Illinois Republican backed by the tea party, said Wednesday that the confrontation leading to a partial government shutdown had left him with “disappointment and frustration” because Congress could have acted to tame the national debt “and the reality is, we didn’t do anything.”
Hultgren, 47, a Republican from DuPage County, spoke with the Tribune before casting the only “no” vote in the Illinois delegation on a bipartisan deal to reopen the government and avert default.
“Overall, I had no desire to see the government shut down, no desire to see our debts not paid, but I am very concerned about the larger picture: $17 trillion in debt and significant increases in new entitlement programs and debt that will only increase taxes on my constituents,” the second-term congressman said. […]
State Sen. Jim Oberweis, an investment manager and dairy magnate from Sugar Grove, is the GOP state central committeeman for the 14th District. He said Hultgren had “done a good job,” and he would be surprised if a Republican challenged the two-term congressman in 2014.
There are lots of rumors that Joe Walsh has switched gears and was thinking about challenging the lackluster fundraiser Hultgren in the GOP primary. We’ll see how this vote impacts the future there.
* Freshman Republican Congressman Rodney Davis voted for the bill…
Republican Rep. Rodney Davis said that while he opposes the president’s health care law, the shutdown that furloughed as many as 800,000 workers was “absolutely unacceptable.”
He said a default would have had “disastrous effects on an already-fragile economy.”
* And that could mean trouble if tea party groups like FreedomWorks follow through on their threats…
The President and CEO of the tea party group Freedomworks predicted that House Republicans who vote in favor of the latest plan to avert a debt default and re-open the federal government, will face primary challengers.
“Absolutely,” Freedomworks CEO and President Matt Kibbe said on CNN when asked if House Republicans would pay a “political price” for voting for the plan. “You’re seeing that and a repopulation of the republican party.”
There have been some reports that FreedomWorks has money troubles, but that’s not a unanimous consensus by any means.
If there is cash available, that could be the best news to come Erika Harold’s way since she launched her primary campaign against Davis earlier this year. She can’t raise money on her own, but maybe an outside group will ride to her rescue.
* Related…
* Treasurer Rutherford: Federal default threat a wash for Illinois finances: But with the federal default looming, Rutherford said his office moved about $1.2 billion out of treasury bills and into other investments such as repurchase agreements, money market accounts and commercial paper. Rutherford said there were concerns about how quickly the state could get the money back in the event of a default. “We looked at other instruments to still draw interest, but which were secure,” he said. “The other instruments were actually up in the market, so it allowed us the opportunity to at least equal, if not to the penny, very close to the penny equal the U.S. treasuries.”
- 47th Ward - Thursday, Oct 17, 13 @ 12:17 pm:
Several prominent economists, including those at Moody’s, Fitch and Goldman Sachs, estimate the shutdown fight cost us billions and shaved about 0.6% from the 4th quarter GDP. Totally unnecessary, self-inflicted damage.
Thanks Tea Party!
- wordslinger - Thursday, Oct 17, 13 @ 12:25 pm:
Some interesting comments for Rep. Schock. Obviously, there’s the possibility of a bipartisan governing majority in the House if Boehner wants to go there.
–Schock was angry that the leaders spent almost a month passing legislation that was designed to court arch-conservatives so that they could boast that they had the votes entirely from their side of the aisle, even as the legislation was repeatedly flicked away by Reid’s Senate Democrats.
–“Let’s not wait till the end of the day, let’s start at the beginning of the day and say, ‘Who wants to be a part of a constructive majority?’ ” Schock said. “Let’s start negotiating in the House with people who want to get things done.”–
Club for Growth has already targeted Schock. Refreshing to see that he’s not backing down.
- too obvious - Thursday, Oct 17, 13 @ 12:26 pm:
Rodney Davis was against the shutdown before he was for it. Something for all sides to dislike with him.
- Anon - Thursday, Oct 17, 13 @ 12:33 pm:
The shutdown was a bad thing, however the lost GDP estimate is probably high. That is because all the federal employees will get full back pay. They will then use that back pay to pay their bills. That money will then add back in to the GDP.
- Belle - Thursday, Oct 17, 13 @ 12:33 pm:
An enormous waste of energy, time and money.
- The Captain - Thursday, Oct 17, 13 @ 1:01 pm:
I can’t believe we lived through a time where the state had to move the state portfolio out of treasuries and into commercial paper because it was safer. Cats and dogs, up is down, etc.
- wordslinger - Thursday, Oct 17, 13 @ 1:05 pm:
Who knew that Pulaski County had one of the biggest federal construction projects?
That’s been a cash cow since 1995, and looks like it will keep going until 2020.
- Mason born - Thursday, Oct 17, 13 @ 1:06 pm:
Rich
It appears the language, allowing the Pres. to raise the ceiling unless congress votes to disprove, is only valid prior to Feb 7th for bills due prior to the 8th. It also reads the same as the language of the last deal.
So i guess we can be sure we won’t see another Debt Limit crisis until Feb but after the 7th God only knows.
- Nearly Normal - Thursday, Oct 17, 13 @ 1:15 pm:
Interesting read on BuzzFeed about the House Republicans turning on Sen. Cruz. Rep. Kinzinger is quoted.
http://www.buzzfeed.com/katenocera/house-republicans-are-now-turning-on-ted-cruz
- hisgirlfriday - Thursday, Oct 17, 13 @ 1:16 pm:
@Mason born: The treasury is allowed to move money around via “extraordinary measures” so Feb. 7 probably won’t be the date around which the next debt ceiling crisis is fought but instead its likely to come some months later.
- ZC - Thursday, Oct 17, 13 @ 1:21 pm:
Joe Walsh perfects his new electoral strategy: run only in congressional off-years (2010, 2014, 2018), moonlight as true conservative and raise money in the interim.
- Demoralized - Thursday, Oct 17, 13 @ 1:33 pm:
My biggest problem with some of these groups like Freedomworks and those that think like them is that they have absolutely no interest in governing. They only want to create havoc. I swear that is their only purpose. And that comment about “repopulating” the Republican party should give people the shivers. Crazy is the only word I can think of to describe these types of people.
- Mason born - Thursday, Oct 17, 13 @ 1:34 pm:
@ Hisgirlfriday
I know that the 7th isn’t the most likely date. Hence the “God knows”. I just wanted to demonstrate that the 7th was the last date for a semi-automatic increase.
- Nonplussed - Thursday, Oct 17, 13 @ 1:35 pm:
Good to see Rutherford had faith in his party….
- Fan - Thursday, Oct 17, 13 @ 1:46 pm:
It is wonderful to be able spend and spend knowing full well we will never pay it back. I think the debt works out to about 153,000 owed from every working American in the US. And that number is shrinking daily. But again, we will never be able to pay this back.
- hisgirlfriday - Thursday, Oct 17, 13 @ 1:48 pm:
@Mason born - Sorry for misunderstanding your earlier comment.
- Holdingontomywallet - Thursday, Oct 17, 13 @ 2:04 pm:
“Rodney Davis was against the shutdown before he was for it. Something for all sides to dislike with him.”
And Reid and Obama were against raising the debt ceiling before they were for it. The politicians on both sides go back and forth for political gains. When do we reach the point when the debt ceiling is too high? Never?
- Judgment Day - Thursday, Oct 17, 13 @ 2:05 pm:
“Several prominent economists, including those at Moody’s, Fitch and Goldman Sachs, estimate the shutdown fight cost us billions and shaved about 0.6% from the 4th quarter GDP.”
As soon as you said “Moody’s, Finch, and Goldman Sachs…”, you lost me. The only thing they were worried about was them missing out on the $85 bil a month that the Fed Reserve pumps into Wall Street and the crooked, lying, thieving ‘banksters’. Talk about addicts.
Btw, Randy Hultgren really doesn’t have many worries out here. He, unlike Joe Walsh and a number of others is a pretty solid thinker. He pushed in favor of the bills to limit domestic spying by the government (NSA), and has shown himself to be very aware of the REAL damage being done to our economy by the patent trolls, and stupid legislation like PIPA/SOPA.
Randy and his staff both come across as being much more aware on technology issues than any number of so-called ‘bright lights’ in both parties. And what’s impressive (at least so far to me), is when they don’t know enough about an issue, they tend to ‘dig in’ and learn.
We don’t need Joe Walsh out here. There’s no ‘ideology’ in ‘technology’, and Randy Hultgren seems to get that. Wish we had a congressional democrat in the state who got that concept.
And don’t even try and tell me “Bill Foster” (D-IL 11). BTDT - Been There Done That.
- Grandson of Man - Thursday, Oct 17, 13 @ 2:07 pm:
“bipartisan governing majority in the House if Boehner wants to go there”
One can only hope. I want to go there.
- hisgirlfriday - Thursday, Oct 17, 13 @ 2:23 pm:
A bipartisan governing majority that would let a farm bill through the house and go to conference with the Senate so there could be some more certainty in the ag biz sure would be nice.
It is interesting that all but one Il GOPer voted with the Dems. Reminds me of a Paul Krugman piece a couple of days ago where he advocated Democrats join with the mostly northern non-radical Republicans in a House governing majority alliance to shut the Dixiecrats who are now Republicans out.
- Jaded - Thursday, Oct 17, 13 @ 2:51 pm:
His Girl Friday, House farm bill conferees were appointed over the weekend.
- Judgment Day - Thursday, Oct 17, 13 @ 3:09 pm:
“A bipartisan governing majority that would let a farm bill through the house and go to conference with the Senate so there could be some more certainty in the ag biz sure would be nice.”
There’s problems there. Not a clean bill, on a number of different fronts. Everybody thinks food stamps, but there’s a number of other issues.
- Bemused - Thursday, Oct 17, 13 @ 3:14 pm:
Sometime during all of this I think it was NBC who did a poll asking folks how they perceived themselves. I think the question was, are you far left, far right, or in the middle. I think the numbers went something like, 28% far right, 23% far left and the rest down the middle. No big shocks there.
The problem seems to be the 28% are fighting to control the helm of the GOP. In my view the party stalwarts on both sides are more like 40% of the population. This leaves about 10% of voters calling the shots. Sounds like the IL GOP congressional guys may be seeing thru the haze.
If you want to threaten to shut down the government you need to not only give a reason for actions you need to describe in detail what your changes would be. The old health care system was flawed. Is ACA a better solution, I don’t know. Problem is the Tea Party folks chanting Repeal and Replace tells me nothing.
- walkinfool - Thursday, Oct 17, 13 @ 3:54 pm:
Dupage, though a suburban county in “greater Chicagoland,” has some of the strongest social values Conservatives, and Tea Party supporters in our state.
Part of that is reaction to being close to Chicago.
Democrats are making gains there, but the core is hard to move.
- Anonymous - Thursday, Oct 17, 13 @ 4:57 pm:
There was plenty of reason to try to accomplish something with this. The ACA was the wrong choice pay - go would have been better.
Oldie but Goodie
The fact that we are here today to debate raising America’s debt limit is a sign of leadership failure. It is a sign that the U.S. government can’t pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our government’s reckless fiscal policies. Over the past five years, our federal debt has increased by $3.5 trillion to $8.6 trillion. That is ‘trillion’ with a ‘T.’ That is money that we have borrowed from the Social Security trust fund, borrowed from China and Japan, borrowed from American taxpayers. And over the next five years, between now and 2011, the president’s budget will increase the debt by almost another $3.5 trillion.
“Numbers that large are sometimes hard to understand. Some people may wonder why they matter. Here is why: This year, the federal government will spend $220 billion on interest. That is more money to pay interest on our national debt than we’ll spend on Medicaid and the State Children’s Health Insurance Program. That is more money to pay interest on our debt this year than we will spend on education, homeland security, transportation and veterans benefits combined. It is more money in one year than we are likely to spend to rebuild the devastated Gulf Coast in a way that honors the best of America.
“And the cost of our debt is one of the fastest-growing expenses in the federal budget. This rising debt is a hidden domestic enemy, robbing our cities and states of critical investments in infrastructure like bridges, ports and levees; robbing our families and our children of critical investments in education and health care reform; robbing our seniors of the retirement and health security they have counted on.
“Every dollar we pay in interest is a dollar that is not going to investment in America’s priorities. Instead, interest payments are a significant tax on all Americans — a debt tax that Washington doesn’t want to talk about. If Washington were serious about honest tax relief in this country, we would see an effort to reduce our national debt by returning to responsible fiscal policies.
“But we are not doing that. Despite repeated efforts by Senators [Kent] Conrad and [Russ] Feingold, the Senate continues to reject a return to the common-sense pay-go rules that used to apply. Previously, pay-go rules applied both to increases in mandatory spending and to tax cuts. The Senate had to abide by the common-sense budgeting principle of balancing expenses and revenues. Unfortunately, the principle was abandoned, and now the demands of budget discipline apply only to spending.
“As a result, tax breaks have not been paid for by reductions in federal spending, and thus the only way to pay for them has been to increase our deficit to historically high levels and borrow more and more money. Now we have to pay for those tax breaks plus the cost of borrowing for them. Instead of reducing the deficit, as some people claimed, the fiscal policies of this administration and its allies in Congress will add more than $600 million in debt for each of the next five years.
“That is why I will once again co-sponsor the pay-go amendment and continue to hope that my colleagues will return to a smart rule that has worked in the past and can work again.
“Our debt also matters internationally. My friend, the ranking member of the Senate Budget Committee, likes to remind us that it took 42 presidents 224 years to run up only $1 trillion of foreign-held debt. This administration did more than that in just five years. Now, there is nothing wrong with borrowing from foreign countries. But we must remember that the more we depend on foreign nations to lend us money, the more our economic security is tied to the whims of foreign leaders whose interests might not be aligned with ours.
“Increasing America’s debt weakens us domestically and internationally. Leadership means that ‘the buck stops here.’ Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better.
“I therefore intend to oppose the effort to increase America’s debt limit.”
IL Sen. Barrack Obama March 16, 2006. The same year every Democrat voted against the debt ceiling increase.
A Pox on both their houses!!
- Holdingontomywallet - Thursday, Oct 17, 13 @ 6:32 pm:
“Oldie but Goodie” - Yup, Obama was for it before he was against it. Reid made a similar speech in 2006. Politicians that change with the wind for political and personal gain. It may be good politics, but I believe it is poor leadership. We need leaders.
- Just The Way It Is One - Thursday, Oct 17, 13 @ 7:17 pm:
Thank the good Lord THAT mess of epic proportions is behind us for awhile. And sorry if the Tea Partiers don’t like it, but Hultgren should be ashamed of himself (but fat chance of THAT)…!
- Jackson - Thursday, Oct 17, 13 @ 9:23 pm:
Boehner could never strike a deal with Northern Republicans and the Dems to form a majority. He would lose his Speakership. 145 Republicans voted against the deal last night.
- Jackson - Thursday, Oct 17, 13 @ 9:26 pm:
Obama lost 63 House seats in 2010, and control of the House in 2012 also. I am not defending the Tea Party, but they are the reason the GOP controls the House. Boehner knows this
- wordslinger - Thursday, Oct 17, 13 @ 10:27 pm:
–Boehner could never strike a deal with Northern Republicans and the Dems to form a majority. He would lose his Speakership.–
Bipartisan governing majorities were not unusual for most of the 20th Century: first, more conservative Southern Democrats and Republicans, then Republicans and Northern Democrats, then back to Republicans and Southern Democrats under Reagan (until they flipped to Republicans).
It’s rare to see the tail wag the dog like this. It’s not a parliamentary form of government relying on lock-step party loyalty.