The Real Battle Begins

Living through the dog days of August 2011 entails more than enduring heat and humidity. This is the period of congressional recess where advocates have a full month to lobby Members of Congress on issues of importance to them. With the focus on the Super Committee’s mandate to tackle entitlements and tax reform per the debt ceiling agreement, local community groups will need to bring their “A” game to preserve funding for their priority programs. It will not be easy. Now that the committee has been named, the focus will be on the individuals appointed to the panel. There will be tremendous pressure for them to reach consensus on a deal. Because of what is at stake, they will ultimately reach a deal. Neither side wants to trigger the across the board cuts which will occur if an agreement...

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Navigating the Presidential Politics of 2012 Begins Now!

The race for the presidency has begun. The debt ceiling agreement and its plan to reduce federal spending was the first salvo in the battle to claim the White House. Presidential politics is the order of the day between now and next November.While many media outlets have identified winners and losers in the debt ceiling debate, it is more important to understand the lessons learned from the last few months. In this post, we will look at lessons we should have learned from this debate (or debacle depending on your perspective):The nation’s fiscal situation has changed the nation’s political dynamics and community groups must adjust to this new reality. The new reality is more complicated than simply choosing between a more conservative Republican versus liberal Democratic approach to governance....

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Obama Should Leave the Table

President Barack Obama needs to end negotiations immediately. The time for talk is over. It is time to get a deal done and it is clear these individuals can’t get agree on anything. We are at a point where saving face is as important as getting a credible deal done. It is time to move on. When everyone convenes Thursday, the president should tell all in attendance that he appreciates their effort, but there is not enough time to put together a deal that addresses the deficit and inflicts the least amount of pain on Americans. He should say he will only accept an unconditional increase in the debt ceiling. He should say after he receives this authority, he will submit the findings of his deficit commission to Congress in legislative...

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Danger Lurking as Deficit Drama Continues

The drama surrounding the deficit reduction talks is not a good sign for domestic programs. With Republicans dug against tax increases the underlying question in the current stalemate is: who will blink first? For supporters of domestic spending it doesn’t matter. In the end, domestic programs, including housing, will take it on the chin. How serious a blow these programs will receive won’t be resolved until the deficit discussion is completed. Until an agreement is reached, all discussions on a FY 2012 budget are in hold. Therefore, it is not a surprise that the House Transportation-HUD Appropriations Subcommittee cancelled this week’s mark-up of a FY 2012 appropriations bill. After the deficit reduction numbers are agreed to, the real...

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Pressure Heating Up on Deficit Talks

Now that President Barack Obama is more directly involved in the discussions to negotiate an agreement on deficit reduction, the pressure is building on all sides to bend before the nation’s debt ceiling needs to be lifted more than a month from now. House Majority Leader Eric Cantor’s (R-VA) decision to abruptly pull out of the talks in objection to potential tax increases does more to absolve him of any responsibility for an agreement he and his conservative allies oppose than it does to bring both parties closer together. Cantor can read the writing on the wall. House and Senate Republicans have expressed a willingness to explore the elimination of corporate tax loopholes and cuts to defense spending in order to reach a compromise with...

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Deficit Drama Continues, Impact on Budget Still Uncertain

House Majority Leader Eric Cantor’s decision to abruptly leave the deficit reduction talks throws another wrench into bipartisan efforts to reach a compromise on reducing federal spending. Republicans hard line on any tax increases or elimination of tax loopholes will make it extremely difficult to reach an agreement before the deadline to raise the nation’s debt limit.If the Republicans are successful, domestic programs, including affordable housing programs are at risk of deep reductions over the next several years. Talks seemed to be progressing to the point where budget parameters for the next few years were coming into sharper focus. However, Cantor’s action and the Republican’s insistence on receiving a pledge from the president pretty much ensures an agreement will not be reached by...

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Interesting Reading to Start Your Week

Housing and Community DevelopmentHousing Market Suffers Biggest Decline in 16 MonthsBy Ben TerrisThe National JournalWhat, Me Worry? (Part 1)Main Street: We’ve Got Bigger ProblemsBy Jim TankersleyThe National JournalEDITORIAL: Unemployment reformHouse to vote on easing 99-week benefit requirementThe Washington TimesPro-Obama Media Always Shocked by Bad Economic NewsBy Michael BaroneWashington ExaminerPoliticsNY-26: Big impact on deficit fightsBy David GergenCNNHow the GOP could rescue Medicare reformBy Michael GersonThe Washington PostRepublicans brace for tough 2012 fight against Obama in unlikely place — N.C.By Amy GardnerThe Washington PostJust who is Herman Cain? And what does his presidential run mean for the GOP?By Jason HorowitzThe Washington PostThe 2012 Republican Battle TestWhy it's...

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The Road to Reelection Got Smoother for Obama

Indiana Governor Mitch Daniels’ decision to forego a White House bid has increased the likelihood President Barack Obama will be reelected for a second term. Recognizing a lot can occur between now and November 2012, it appears the only thing that can truly sink the president’s reelection bid is a down economy.Each of the remaining high-profile candidates mentioned - New Jersey Governor Chris Christie, Texas Governor Rick Perry and former Florida Governor Jeb Bush - may attract Republican support but will have a difficult time unseating the president if the economy is on the upswing. None of the current candidates or prospective candidates generates excitement among the party faithful. If they have difficulty energizing their own party faithful,...

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Deficit Talks Not Good for Housing

Sen. Tom Coburn’s decision to withdraw from talks by the “Gang of Six” does not bode well for advocates hoping to stall cuts to federal housing programs. Coburn was part of a group of senators hoping to reach bipartisan agreement on a deficit reduction plan that could win broad congressional approval. Coburn’s decision to remove himself from those discussions makes reaching an agreement harder. As a result, the politics of deficit reduction will overshadow any substantive discussion that could occur.President Barack Obama’s decision not to accept the recommendations of the deficit commission he empaneled as the starting point for these discussions has led to a more complicated, highly political process leaving Federal programs ripe for attacks....

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New Strategy Required

Congress returns from its spring recess to begin further discussions on a FY 2012 budget that includes concrete provisions to reduce Federal spending. In exchange for support for increasing the debt limit, Members of Congress from both parties are pressuring the White House and congressional leadership to agree to a spending plan that addresses deficit reduction in a real way.For local housing providers receiving Federal funds, both the politics and the economics of the deficit reduction discussions means fewer funds in spite of efforts to garner congressional support for Federal programs. During the congressional recess, national groups have galvanized their members to express dismay over the cuts approved in the FY 2011 budget agreement and their opposition to further cuts in the FY 2012...

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Failure to Lead

President Barack Obama and congressional leaders have demonstrated a failure to lead in their respective approaches to tackling the budget. Both the president and the Republican leadership are more concerned with positioning themselves favorably with the public than they are in reaching a bipartisan solution to our mounting deficit. The president’s decision to present a deficit reduction plan was opportunistic, simply to distinguish himself from the proposal presented by Rep. Paul Ryan (R-WI). Ryan’s plan was approved by the House of Representatives along party lines. While a clever move it only occurred because Obama has an eye on reelection which would be in jeopardy if he appears disinterested in tackling such a thorny issue.He passed on a leadership moment when he decided not to endorse...

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Time to Rethink Federal Housing Programs

Now that a deal appears to be in place for the balance of FY 2011, the discussion will now turn to FY 2012. As President Obama prepares to outline his deficit reduction plan, further cuts to Federal housing programs are to be expected. As a result, families will have to find a way to pay more of their housing costs as local providers struggle to offset budget losses with lay-offs, reduced services and deferred maintenance.The budget agreement reached last week is expected to receive bipartisan support and is expected to pass. The cuts included in this agreement will be a precursor for what is expected to be deeper cuts in FY 2012. House Republicans released a deficit reduction plan for FY 2012which is expected to reduce funding for the public housing and voucher programs.To offset these...

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Lessons Learned from the Budget Debate

Now that the House has approved a continuing resolution for the balance of FY2011, here is one writer’s take on seven lessons learned from the debate which will influence future funding discussions:1. While unorthodox by Washington standards, the decision by the Speaker to open the floor to amendments allowed Members of Congress to actually do the work expected of them: propose, debate and vote on issues affecting the nation. It is encouraging to see Congressmen and women actually voting on legislation versus sniping at each other. Look for this free flowing form of debate to continue.2. To both of the political parties’ credit, members took votes that did not fall along party line. There were Republicans and Democrats uniting to defeat spending measures deemed unnecessary. There were...

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Deep Cuts to Housing Programs on the Way

Housing programs will join the list of other Federal programs subject to reductions when the president submits his FY 2012 budget Valentine’s Day. While President Barack Obama is proposing “painful” cuts to key programs in the next fiscal year in an effort to reduce the deficit, his proposal pales in comparison to the cuts proposed by House Republicans for the balance of the current fiscal year. Their proposal calls for close to $6 billion in cuts to housing programs as part of $100 billion in cuts to Federal programs.Anticipating negative reaction to the Obama budget proposal, the president’s staff has contacted supporters of various programs to provide them with a heads up to pending cuts. In a New York Times editorial Jack Lew, Director of the Office of Management and Budget (OMB), stated...

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Brace for a Government Shutdown

The likelihood of a government shutdown increased when House Republicans passed a resolution calling for approximately $60 billion in cuts to non-defense spending for the balance of the FY 2011. Approved primarily along party lines just before the president delivered his State of the Union address, the resolution underscores the commitment of House Republicans to reduce federal spending.The resolution (H. Res. 38) establishes the starting point for Republican negotiations with the White House and Democrats in funding the federal government for the remainder of the current fiscal year. Given the two other fiscal issues to be debated this year – increasing the federal debt limit and passage of a FY 2012 budget – how funding for FY2011 is resolved will impact the debate on the other two issues....

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