Negotiators reach deal; vote expected soon on $150B
economic package
By Paul Kane, Thursday, February 16, 2012
Congressional negotiators gave final approval early Thursday to an economic
plan worth more than $150 billion that would extend a payroll tax holiday and
unemployment benefits.
A key roadblock was overcome when the lawmakers agreed to require new federal
workers to contribute more to their pension plans, clearing the way around 12:30
a.m. for a majority of the House-Senate conference committee to begin signing
onto the deal.
The pension provision represented a concession to key Maryland Democrats who,
even after prodding from President Obama, did not grant their support until
current federal workers were shielded from the new pension plan, aides in both
parties said.
A vote could come as early as Friday, the last act in a five-month battle
over Obamafs proposed jobs plan.
gThis is good for the country, itfs very good for the country. We have an
agreement,h Sen. Max Baucus (D-Mont.) said at a hastily arranged post-midnight
press conference in a Capitol hallway. Baucus was joined by Rep. Dave Camp
(Mich.), the lead GOP negotiator.
Baucus, the Senate Finance Committee chairman, had prematurely declared a
gdealh was at hand at 11 p.m. Wednesday. He then spent 90 minutes huddled inside
Campfs office with nearly 10 House Republicans who were serving on the
conference committee.
Camp assured reporters later that the final talks were about gtechnical
thingsh in the billfs legislative language and that more than enough senators
and House members had agreed to the substantive issues to ensure the bill would
be published later Thursday.
gWe have an agreement and wefre moving forward,h Camp, chairman of the House
Ways and Means Committee, said.
The bill — which some Obama aides say is likely to be the last significant
legislation passed before the November elections —
includes a 10-month extension of a payroll
tax holiday that lets the average worker keep an extra $1,000 a year. The
deal also would extend unemployment benefits through the end of 2012. But it
reduces the tenure on unemployment by the end of the year to 63 weeks in states
moderately impacted by the recession and 73 weeks for those with the highest
jobless rates.
The plan is about one-third the size of the original jobs legislation Obama
proposed in September. It includes a temporary fix for Medicarefs payment plan,
intended to prevent a 27 percent drop in fees paid to doctors who treat
elderly patients.
The final talks were hung up on the need to find about $50 billion in
spending cuts and new revenue to offset the $50 billion cost of the
unemployment extension and the Medicare change.
The Senate side of the conference committee, with four Democrats and three
Republicans, found itself stalled late Wednesday. Initial plans called for
drawing $15 billion in savings by requiring all federal workers to make
increased contributions to their pension plans, prompting an objection from Sen.
Benjamin L. Cardin (D-Md.). The three Senate Republicans demanded an exemption
from portions of the 2010 health-care law for physician-owned hospitals, a move
Democrats opposed.
This left the conference committee one senator shy of the number needed to
sign off on a final agreement.
The Democrats would only agree to support the plan once Baucus and Camp
agreed to shield current federal employees from the increased pension
contribution. The final details of that pension increase were unclear early
Thursday, but initial estimates on Wednesday suggested federal workers would
need to pay an additional 0.75 percent to their pension plans.
In addition to the pension issue, Baucus and Camp agreed to cut
$5 billion from a fund created under the health-care law to help
primary-care physicians prevent illness — a fund that the president singled out
for a similar cut in the budget for fiscal 2013 that he announced Monday.
Another last-minute dispute, according to lawmakers and aides in both
parties, involved a plan to raise at least $15 billion in revenue from
selling off public spectrum to telecommunication companies for better mobile
communication. This has been a key issue for homeland security officials ever
since the Sept. 11 terrorist attacks, after which emergency first responders
began requesting their own frequency to better communicate with federal
officials during disasters.
On Wednesday, negotiators agreed to auction off $22 billion worth of the
spectrum to the industry, then siphon $7 billion of that into a fund for federal
maintenance of a frequency dedicated to emergency first responders.
Republican leaders, who had been divided
on the payroll tax package in December, decided over the weekend that the
best decision on the contentious issue was to support a plan that would not
require offsetting cuts for the tax holiday, which is worth about $100 billion.
That decision, a reversal of their previous position, made the final
negotiations much easier.
By early Wednesday, House GOP leaders were anxious to reach an agreement to
put the issue behind them and refocus their agenda for the rest of the year.
gIf the agreement comes together like I expect it will, the House should vote
this week,h House Speaker John A. Boehner (R-Ohio) told reporters Wednesday
morning.
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