While House Appropriations Cardinals are supposedly shaking the spending trees to find programs to cut from the end-of-the-year appropriations bill to get to the $933 billion spending level (this includes the already enacted Defense Appropriations bill), there have also been reports that the Senate is drafting its own version of the Omnibus spending bill. Senate Minority Leader McConnell has floated a plan to use an across-the-board cut to get to the President’s level. The across-the-board cut was a tried and true technique during the years of Republican control of Congress. However, the proposed 2.5% shave is much larger than was ever used during those years.

Across-the-board cuts are a blunt instrument that guarantees wasteful programs remain funded and good government programs get shortchanged. This is a budget gimmick that is used to avoid making hard decisions about spending priorities – what should be funded and what should be cut. For instance, Sens. McConnell and Reid have $91.2M and $243.7M in earmarks in the spending bills (respectively) that would be folded into the omnibus. So, after the across-the-board cut, they would still have $88.9M and $237.6M to brag about back home. After threats to require Congress to roll up their sleeves and cut programs, the across-the-board cut is being used as an earmark preservation tool and a parachute for a budget process that is in a free fall.

Much better would have been House Appropriations Chair Obey’s proposal to cut earmarks and cut spending programs to shave off the $11B that would get to the President’s number. We have been told that House Appropriations cardinals have been directed to find areas to cut and the House is intent on moving their proposal. That is a far more responsible approach to budget decision-making, and an example of legislators doing their jobs.

We will be watching for other gimmicks to mask the true cost as well, such as forward funding (shifting spending items into FY09 only to shift them back at later date) and cutting popular programs and shifting the cost to emergency spending bills at a later date.

Obviously, everything is in flux, but Congress should take up a new CR tomorrow that will probably last until next Friday (12/21). We probably won’t see an omnibus in either chamber until Friday (12/14).

For more information, please contact Steve Ellis, 202-546-8500 ext. 126, or by email .