–Senate Majority Leader Says Speaker Has ‘Returned’ To Budget Talks
–Boehner Under ‘Lot of Pressure From The Tea Party Folks’
–FY’11 Compromise ‘Lies in the Middle’
–Warns of ‘Terrible Consequences’ of Government Shutdown
By John Shaw
WASHINGTON (MNI) – Senate Majority Leader Harry Reid Wednesday said
he continues to negotiate with House Speaker John Boehner on a final
fiscal year 2011 spending bill, adding that there would be “terrible
consequences” if the federal government were to shut down at the end of
next week.
In remarks on the Senate floor, Reid said that he is encouraged
that Boehner has “returned to the conversation” on a final FY’11 budget.
He said Boehner is under a “lot pressure from the Tea Party folks”
in the House Republican caucus. Reid called this group a “radical
faction” that does want to compromise on the budget.
“We know the answer lies in the middle,” Reid said, adding that
Democrats are willing to make concessions to secure a final agreement on
the FY’11 budget.
The 2011 fiscal year began on Oct. 1 and the government has run on
six short-term funding bills.
Congress’s most recent temporary spending bill for the 2011 fiscal
year will keep the federal government funded until April 8.
House Republicans have been seeking $61 billion in spending cuts
from portions of the FY’11 budget. Congress so far has approved $10
billion in cuts.
Democratic leaders offered a new proposal this week with up to $20
billion in additional spending cuts.
Senate Democrats say the two sides are within striking distance of
an agreement. They say Republicans want to cap FY’11 discretionary
spending at $1.052 trillion while Democrats have suggested capping
spending at $1.058 trillion.
“Our proposal still stands,” Reid said.
House Majority Leader Eric Cantor, a Republican, Tuesday said
suggestions that the two sides are near an agreement are inaccurate.
** Market News International Washington Bureau: (202) 371-2121 **
[TOPICS: M$U$$$,MFU$$$,MCU$$$]