# Renewable Fuels



Iowa reaction to U.S. House spending cuts

The U.S. House approved a continuing resolution to fund the federal government through September 30 by a 235 to 189 vote at 4:40 am Saturday morning. The bill contains about $61.5 billion in spending cuts; it “would kill more than 100 [federal] programs and cut funding for hundreds more.” The roll call shows remarkable party unity; all but three House Republicans voted for the bill, and every Democrat present voted against it. Iowa’s representatives voted along the usual party lines.

Much of the language in this continuing resolution will never become law. President Barack Obama has already threatened to veto the House bill, and the Democratic-controlled U.S. Senate is working on its own continuing resolution with roughly $25 billion to $41 billion in spending cuts. Some signs point toward a federal government shutdown, but House Budget Committee Chairman Paul Ryan says House Republicans are not seeking that outcome. Quinn Bowman and Linda Scott further note:

To make time for the negotiations between the two chambers, yet another short term [continuing resolution] might need to be passed – which brings up another wrinkle: as time passes and the fiscal year gets shorter and shorter, Republicans set on cutting billions from the rest of the year’s budget will have a smaller pie to slice as money is spent.

Many House Democrats denounced the Republican budget cuts, but I didn’t see any of them acknowledge the failure to pass 2011 budget bills when Democrats still controlled both chambers of Congress. U.S. Senate Republicans blocked the Democratic omnibus spending bill during the lame-duck session in December, setting the stage for the current budget brinksmanship. None of these fiscal 2011 spending cuts would be on the table if Congress had passed budget bills on time last year.

After the jump I’ve posted the five Iowa House representatives’ statements on the House continuing resolution for fiscal year 2011. All include themes we are likely to hear during the 2012 Congressional campaigns. Democrats Bruce Braley (IA-01), Dave Loebsack (IA-02) and Leonard Boswell (IA-03) embraced the principle of reducing government spending, but argued that the GOP plan would eliminate jobs here and undermine the national economic recovery. I noticed that Boswell is holding a roundtable discussion about transportation on February 22; expect him to warn of the dire consequences of proposed GOP spending cuts.

Braley’s comment on the continuing resolution warned that the proposal “will kill thousands of jobs in Iowa’s ethanol industry.” In that vein, I’ve also enclosed below his statement from February 16, touting an amendment he proposed to “safeguard the Renewable Fuel Standard.” The Environmental Protection Agency issued its final rule on the Renewable Fuel Standard earlier this month. Braley asserts that the continuing resolution blocks the EPA “from setting renewable fuel standards for 2012,” and industry groups are worried. House leaders ruled Braley’s amendment out of order, and Republican Tom Latham (IA-04) argued that the language prohibiting the EPA from regulating greenhouse gases would not affect the ethanol industry in any way. At The Iowa Republican blog, Craig Robinson says Braley “didn’t understand what he was talking about,” while Bleeding Heartland user SamuelJKirkwood claims here that Latham was misinformed or ignoring the facts. If that portion of the continuing resolution becomes law, we’ll find out later this year who was correct (either ethanol industry jobs will disappear or they won’t). Iowans are likely to hear more about this issue during the 2012 campaign, especially if the new map throws Braley and Latham into the same district.

Latham’s statement on the continuing resolution praised Congress for starting down “the road less traveled,” passing “some of the biggest spending cuts in the history of Congress.” He did some sleight of hand: “I joined a majority of my colleagues […] to vote in favor of cutting $100 billion in federal spending over the president’s funding request for the current fiscal year.” Jamie Dupree explains,

As for the budget cuts in this bill, Republicans persisted in calling this a cut of over $100 billion – but that figure is misleading, as it compares the bill’s spending levels to President Obama’s budget from last year, which was never enacted by the Congress.

It’s worth noting that Latham didn’t stand with the most ambitious House GOP axe-wielders. He was among 92 Republicans who joined Democrats to reject an amendment containing $22 billion more in cuts. Without elaborating, Latham described that proposal as “not thoughtful.” (As opposed to, say, zeroing out federal support for the Public Broadcasting Service or the Intergovernmental Panel on Climate Change–very thoughtful!)

The statement from Republican Steve King (IA-05) focused on his own successful amendments to the continuing resolution, which prohibit the use of federal funding “to implement and enforce ObamaCare.” King has consistently been one of the loudest voices in the House for repealing or otherwise blocking the health insurance reform law approved last March. Incidentally, unlike Latham, King voted for that amendment proposing to cut an additional $22 billion from current-year spending.

I haven’t seen any statement from Senator Chuck Grassley regarding the House GOP’s spending cut plans. Democratic Senator Tom Harkin has been on a tear for days, blasting how the House continuing resolution would affect health care in Iowa, employment and training in Iowa, the Social Security Administration in Iowa, education in Iowa, and so on.

Share any thoughts about the federal budget or the political debate over spending cuts in this thread.

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Tom Harkin is right

Senator Tom Harkin was right to warn in a conference call with reporters today that the economic stimulus bill may be too small.

He is also right to be concerned about the tax-cut provisions. Tax cuts that put more money into the hands of people in high income brackets (such as fixing the alternative minimum tax) will not necessarily boost consumer spending.

He is right about this too:

Harkin said the bill must be seen as more than an immediate jump-start for the ailing economy, and therefore lawmakers should not be timid about its potential.

“This is not just a stimulus bill to put someone to work right now,” Harkin said. “That’s important and we will do that. But we are also going to do things that lay the groundwork for a solid recovery in the future.”

Harkin wants the bill to put more money into renewable fuels and less money into so-called “clean coal”:

“We’re putting money into clean coal technology,” he said. “There’s no such thing.”

You said it, senator.

Speaking of how there’s no such thing as clean coal, if you click here you’ll find another clever ad from the Reality Coalition.

Speaking of senators who are right about things, Here’s John Kerry on the stimulus:

Reacting to Wednesday night’s vote in the House – where not a single GOP member supported the stimulus package – Kerry told Politico that “if Republicans aren’t prepared to vote for it, I don’t think we should be giving up things, where I think the money can be spent more effectively.”

“If they’re not going to vote for it, let’s go with a plan that we think is going to work.”

The Massachusetts Democrat and 2004 presidential candidate suggested tossing some of the tax provisions in the stimulus that the GOP requested. “Those aren’t job creators immediately, and even in the longer term they’re not necessarily. We’ve seen that policy for the last eight years,” he said.

What was that thing Americans voted for in November? Oh yeah, change.

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