Wednesday, March 11, 2009

Obama Budget In Trouble

President Obama’s $410 billion omnibus spending bill has been approved. But his overall proposed budget could still be in trouble.
Here's the report from Walter Alarkon at The Hill:
Sen. Kent Conrad (D-N.D.) said he has spoken to enough colleagues about several different provisions in the budget to make him think Congress won’t pass it.
Conrad urged White House budget director Peter Orszag not to “draw lines in the sand” with lawmakers, most notably on Obama’s plan for a cap-and-trade system to curb carbon emissions.
“Anybody who thinks it will be easy to get the votes on the budget in the conditions that we face is smoking something,” Conrad said
. . . .
Conrad joined Sen. Judd Gregg (N.H.), the top Republican on the Budget Committee, and Sen. Lindsey Graham (R-S.C.) in criticizing the administration’s cap-and-trade proposal for not doing enough to counterbalance increases in energy costs that will be felt by consumers and companies, especially those in energy states such as North Dakota.
Conrad said that it would be a “distant hope” to expect the climate change plan to pass unless it includes help for industries that would be hit hard by limits on carbon emission production.
The North Dakota Democrat also knocked the Obama administration’s plan to cut subsidies for farmers with incomes of more than $500,000. He noted that Congress just rewrote its agricultural policies last year in a bill that received 81 votes in the Senate. The administration has said that it could save taxpayers nearly $10 billion over the next decade from stopping direct federal payments to wealthy farmers, but Conrad denied that the farm policies were not fiscally responsible.
“The Farm Bill was paid for. We made a lot of tough choices. We raised money. We made spending reductions,” Conrad said. “Those who suggest that not fiscally responsible — I don’t think they’re very aware of the history of how we got a Farm Bill passed.”
Conrad said that he hopes the administration understands that “accomplish[ing] big things takes compromise around here.”

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