A View From D. C.

We at Viewfromdc want to thank Sarah Palin, the Tea Party and the Republican Party for the political theater known as the November election which has engulfed the country. Not even Shakespeare, Twain or Hemingway could have written a better drama.

As we begin to head into the home stretch toward the November election, there are a few clear factors which will shape the outcome this fall:

1. Republicans are currently riding high with momentum. All predictions call for a major victory for Republicans, possibly of historic proportions.

2. The economy is the principal cause for the momentum enjoyed by Republicans. As unemployment continues to hover close to 10 percent, the electorate is increasingly disenchanted with the president’s economic policies.

3. Republicans still have not resolved their internal debate with the Tea Party movement which will have a significant impact on their ability to legislate. While the Tea Party candidate in Utah, Michael Lee, appears to be a shoo-in to win election to the Senate representing that state, other Tea Party candidates still must prove they can win a general election.

4. Democrats need to regroup and develop a post-election strategy which may include a change in leadership on Capitol Hill.

5. While the short-term prognosis for housing and community development programs looks good, there are ominous signs that cuts to vital housing programs could be a part of the future.

Let the Fighting Begin

The Republicans seem to be doing all they can to squander the good fortune the current political environment is affording them. All of the major polls and political experts agree Republicans are poised for major gains at the congressional and state level. However, intraparty fighting is bubbling to the surface as Tea Party activists have turned the primary season upside down by electing candidates of their choice to represent the party in a number of key states.

The latest beneficiary of the Tea Party support was Christine O’Donnell who won the Republican nomination for senator in Delaware. She will run against the Democratic nominee, Chris Coons. O’Donnell’s victory comes at the price of Castle, a popular former governor and most recently the House Representative for the State. He was expected to defeat Coons handily and be a key victory in the Republicans quest to regain the Senate. Now, there is significant doubt that O’Donnell can defeat Coons this fall.

O’Donnell’s victory follows the defeat of Sen. Lisa Murkowski (R-AK) by Tea Party candidate, Joe Miller, in the Alaska primary. Murkowski is defying party officials and has decided to pursue retaining her seat as a write-in candidate. Even though the party’s leadership at the national level stands behind Miller, a civil war is brewing within the party’s rank and file.

While primary results are typically determined by the most ardent party supporters, the victory by Tea Party candidates in Nevada, Kentucky and Delaware raises a number of concerns for the Republican Party in the fall. First, it is unclear if Tea Party candidates can win in a general election. A win in the primary doesn’t guarantee a win in the fall. With the exception of Utah and possibly Kentucky, there is genuine concern about the ability of Tea Party candidates to connect with “mainstream voters.”

Second, if Republicans do win control of the Senate, how they govern will be interesting to watch. Republicans releases a Pledge to America promising to create jobs, cut taxes, curtail government spending and protect the country. The message sounds good but what does it mean when it is time to govern? Will they govern from a Tea Party platform of reducing Federal spending and reducing taxes which includes facing a showdown with President Obama? This approach will satisfy the conservative base in the party but will it have broad public appeal? The last time Republicans did this was in 1995 and it backfired on them. They received the bulk of the blame and galvanized support for then President Bill Clinton.

There are some Republicans and Tea Party supporters who relish the thought of a government shutdown. If Republicans regain either chamber, they will clearly have a major say in national policy for the next two years. This can be both a blessing and a curse to the party. They will be pressured by Tea Party supporters and their allies, to do all they can to reduce taxes and limit the Federal government’s authority. However, Republicans must be careful. House Majority Leader John Boehner (R-OH) has indicated he believes the Tea Party supporters have the potential to shape policy on the Hill. If so, a repeat of 1995 is possible.

Republicans are becoming so confident they will regain control, they have already promised oversight hearings to embarrass the administration, will seek to defund the health care initiative and some members have openly discussed confronting the president into a showdown resulting in a shutdown of the Federal government. With Republican momentum on the upswing, the party is unanimous in opposing the president’s call to eliminate the tax cuts enacted during the Bush administration for those earning above $250,000 a year.The president wants to make tax cuts for those earning under $250,000 permanent and allow the cuts for those above that figure to expire. To Republicans, it is all or nothing.

It will be interesting to watch the Tea Party approach to governing. Will they adhere to principles over platform or will they adjust to the realities of governing and compromise? There is a tension between the Tea Party's three principles (limited government, fiscal responsibility and free enterprise) and the realities of having to govern. If you are for fiscal responsibility and for tax cuts, then how will you move toward balancing the budget? What will you do about entitlement spending - Social Security and Medicare – which some of the Tea Party activists rely on? If you even try to close a post office, the rural limited government pro-fiscal responsibility folks in the community turn into rabid pro-jobs, cut-somebody-else activists.

From a purely political standpoint, the Tea Party's refusal to offer anything about the specifics is brilliant. It's like Obama's promise of change. The Tea Party wants to get their people elected first. But you can only be a radical outsider once. When the election is over, the coalition will break apart when the hard choices have to be made.

Tea Party Victory Could Help Housing Agenda

The election of Tea Party candidates could enhance efforts to enact legislation granting housing authorities’ greater flexibility in the administration of their programs. While national groups representing housing and community development issues have fared well in the bills up for approval, this year Congress approved cuts to food programs and has frozen future domestic spending. Additionally, the administration is proposing significant cuts to defense spending at levels unheard of in Washington. This does not bode well for increased funding for housing programs. It could; however, spur discussion on deregulation.

The three major public housing groups, Council of Large Public Housing Agencies (CLPHA), Pubic Housing Authorities Directors Association (PHADA) and the National Association of Housing and Redevelopment Officials (NAHRO), have agreed upon a set of principles which they hope will guide Congress on deregulation efforts. It is unlikely anything of significance will happen so close to the election. This will create a lame duck session in mid to late November; during which it is unlikely much will get done except for a continuing resolution (CR). A CR is a temporary funding measure which keeps the government open for a fix period of time. In this case, the likely scenario is that Congress will pass a CR to keep the government funded until sometime in January.

All indications are a Republican Landslide

Major news organization s have prominently reported that recent polls show the president’s support declining while generic support for Republicans is gaining. This is not atypical for the mid-year election cycle of a first-term president, according to Larry Sabato and Mark Abromovitz of the University of Virginia’s Crystal Ball who have written extensively on this subject.

Sabato believes Republicans are in position to gain enough seats to take over the House and come within striking distance of reclaiming the Senate. Stu Rothenberg, a political analyst in Washington, DC, believes Republicans will reclaim both chambers. Charlie Cook, another highly regarded political analyst and author of the Cook Political Report, believes Republicans will fall short of controlling both chambers but he believes they will take the house.

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Friday, September 24, 2010

Drama Surrounds November Election

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