Incoming Democrats face fiscal minefield

The Boston Globe reports:

The outgoing Republican Congress has placed a political time bomb for incoming Democrats: Nearly all domestic programs paid for by the federal government are level funded through mid-February with no adjustments for inflation, a situation that probably will trigger cuts or reductions in such popular areas as veterans' affairs, children's healthcare, housing vouchers, and low-income fuel assistance.

Democrats, who take control of Congress in January, will therefore have to immediately choose between restoring any lost services and their campaign pledge to control government spending. The clash could expose tensions within the party in the crucial first weeks of Democrats' leadership -- and the party's agenda could get sidetracked in a pitched battle over spending priorities.

"As the Republicans leave their control of Congress, they've decided to blow up the room," said Senator Richard J. Durbin of Illinois, the assistant Democratic leader. "They're leaving behind a disaster for us to deal with."

Republicans will adjourn the 2006 congressional term today without passing nine of the 11 annual appropriations bills, which cover thousands of government programs and nearly half a trillion dollars in domestic spending. Instead, Congress passed a stopgap measure that will keep government operating at a bare-bones level through mid-February -- more than a quarter of the way into fiscal 2007.

The minimum level is determined by picking the lowest of three budget figures for each agency: the amount the Senate or the House appropriated in separate votes or the amount the agency received last year. In most cases, that will be last year's budget for the program or agency.

The typical effects of level funding include delays in an agency's hiring or expansion plans, or inflation-related cuts in services. Democrats and social service groups predict a range of dire consequences: shuttered Social Security offices, a hiring freeze for FBI agents, thousands of children losing access to federally sponsored healthcare.

The Department of Veterans' Affairs budget will be particularly hard hit. The House and Senate budgeted $36.5 billion for the department in fiscal 2007, but Congress' failure to act on the spending bills will leave it funded at last year's level of $34.26 billion -- even as costs and the number of people it treats continues to rise.

That means thousands of battle-wounded soldiers returning from Iraq and Afghanistan may have to wait longer for VA medical treatment.

Advocates for social service programs are already sounding alarms and promise to lobby Democrats to fix what the Republicans left behind.

"This is just intolerable, where things are right now," said Charles Loveless, legislative director for the American Federation of State, County, and Municipal Employees.

Government has been growing and Mr. Loveless thinks more growth is needed.Gee,isn't it amazing how someone like Loveless would want more government? Those government workers couldn't make more money without more spending.