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Tuesday, December 11, 2012

Storm Relief Sets Up New Spending Without Cuts

President Obama’s call for $60 billion in additional spending to cover damage from Superstorm Sandy tops a congressional wish list of more stimulus spending, expanded unemployment benefits and extending the payroll tax cut — all without finding cuts elsewhere in the federal budget.

The new spending, totaling as much as $250 billion, and the lack of what lawmakers call “offsets” threaten to complicate the already difficult “fiscal cliff” conversations going on in Washington, where the push is on to lower deficits over the long run.

“The American people are expecting that the cliff negotiations to be focused on reducing the deficit, not increasing spending,” said Sen. Jeff Sessions, Alabama Republican and ranking member of the Senate Budget Committee, who has called for any form of new spending to be balanced by savings or reductions elsewhere in the federal budget.

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