–Co-Chair of Hill Deficit Panel Says Panel Wants An Agreement
–Sen. Murray: Panel To Hold Nov. 1 Hearing With Simpson, Bowles, Others
–CBO Chief Elmendorf Says Deal Needed By Early Nov To Gete CBO Score

By John Shaw

WASHINGTON (MNI) – Sen. Patty Murray, the co-chair of Congress’
Joint Select Committee on deficit reduction said Wednesday that her
panel is working hard to craft a bipartisan agreement and added that the
members of her committee are aware their deadline is approaching.

“We have a lot of work to do and a shrinking amount of time,”
Murray said as she ended Wednesday’s sessions with Doug Elmendorf, the
director of the Congressional Budget Office.

During the hearing, Elmendorf repeated that the CBO will need to
receive a deficit reduction package by early November to have sufficient
time to make a cost estimate by the end of the month.

Elmendorf said it will take “some weeks” to estimate the deficit
impact of any budget package that the panel agrees to.

During the hearing with Elmendorf, Democrats and Republicans on the
committee seemed to use the CBO chief to confirm views and arguments
that they have been making for months.

Elmendorf agreed, during Democratic questioning, that non-defense
discretionary spending is set to decline as a percentage of the economy.

The CBO chief also agreed, during GOP queries, that discretionary
spending has risen in dollar terms a great deal over the last several
years.

Both Democrats and Republicans on the committee appeared to agree
that discretionary spending is not the main driver of the nation’s
deficits and debt.

Republican lawmakers on the panel cited this fact as evidence that
fundamental entitlement reforms are needed, especially as it pertains to
health care entitlements.

Democrats on the panel agreed that entitlement reforms are needed,
but also emphasized that new revenues need to be part of the mix.

Rep. Chris Van Hollen, the top Democrat on the House Budget
Committee and a member of the deficit panel, said the group faces two
challenges — outlining a short-term economic growth package and
controlling long-term deficits.

“I hope we can complete that mission,” he said.

At the end of the hearing, Murray announced the panel will hold
another public session on Nov. 1 with the chairs of recent deficit
reduction panels — Alan Simpson and Erskine Bowles and Pete Domenici
and Alice Rivlin.

Murray said deficit panel continues to work for a “balanced and
bipartisan plan that can pass through Congress and get signed into law.”

“We aren’t there yet, but I’m confident we are making progress. And
I’m hopeful we’re moving quickly enough to meet our rapidly-approaching
deadline,” she said.

The Joint Select Committee on Deficit Reduction is charged to
submit a report to Congress by Nov. 23, 2011 that reduces the deficit by
between $1.2 trillion and $1.5 trillion for the 2012 and 2021 period.

The final package, if one is agreed to by the majority of the
panel’s 12 members, must be voted on without amendment by the House and
Senate by Dec. 23, 2011.

If the panel fails to agree on a spending cut package or Congress
rejects its plan, a budget enforcement trigger would secure $1.2
trillion in budget savings through across-the-board cuts.

The cuts would be equally divided between defense and non-defense
programs but would exempt Social Security, Medicaid and low-income
programs.

The deficit reduction panel has now held four public hearings so
far: its organizational meeting on Sept. 8; a budget overview hearing on
Sept. 13 with Elmendorf; a revenue overview on Sept. 22 with Thomas
Barthold, the chief of staff of Congress’ Joint Tax Committee; and a
second session with Elmendorf Wednesday.

The deficit reduction committee received a private briefing last
week from the members of a bipartisan group of senators who have
developed a far-reaching deficit reduction plan.

The 12 person panel has been meeting several times a week in often
lengthy private sessions. Members have left those sessions tight-lipped,
saying nothing that might provide a hint about where the panel is
headed.

Several Republican members of the panel have said the panel should
focus on achieving the $1.2 trillion to $1.5 trillion deficit cutting
goal.

Some lawmakers and outside groups have urged the panel to come up
with a $4 trillion deficit reduction plan over 10 years.

There have been reports that Senate Finance Committee Chairman Max
Baucus has floated a plan that calls for about $3 trillion in deficit
reduction over a decade with a nearly equal blend of spending cuts and
tax increases.

** Market News International Washington Bureau: (202) 371-2121 **

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