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Senate Democrats prepare government funding bill to prevent shutdown as long
WASHINGTON Senate Democrats are preparing a catchall government funding bill that denies President Barack Obama money for implementing signature firstterm accomplishments like new regulations on Wall Street and his expansion of government health care subsidies but provides modest additional funding for domestic priorities like health research.
The measure expected to be released Monday is the product of bipartisan negotiations and is the legislative vehicle to fund the daytoday operations of government through Sept. 30 and prevent a government shutdown when current funding runs out March 27.
Passage in the Senate this week would presage an end to a mostly overlooked battle between House Republicans and Obama and his Senate Democratic allies over the annual spending bills required to fund federal agency operations.
The bipartisan measure comes as Washington girds for weeks of warfare over the budget for next year and beyond as both House and Senate Budget Committees this week take up blueprints for the upcoming 2014 budget year.
The first salvo in that battle is coming from House Republicans poised to release on Tuesday a nowfamiliar budget featuring gestures to block Obama's health care overhaul, turn Medicare into a voucherlike program for future retirees and sharply curb the Medicaid health care program for the poor and domestic agency budgets. Such ideas are dead on arrival with Obama and Democrats controlling the Senate, but will in concert with new taxes on the wealthy enacted in January allow Republicans to propose a budget they say would come to balance within 10 years.
"We think we owe the American people a balanced budget," House Budget Committee Chairman Paul Ryan said on "Fox News Sunday."
Senate Democrats are countering on Wednesday with a budget plan mixing tax increases, cuts to the Pentagon and relatively modest cuts to domestic programs. The measure would not reach balance, but it would undo automatic budget cuts that started taking effect this month and largely leaves alone rapidly growing benefit programs like Medicare which provides health care coverage for the elderly.
"We need to make sure that everybody participates in getting us to a budget that deals with our debt and our deficit responsibly," Budget Committee Chairwoman Patty Murray said Monday evening.
The upcoming debate over the longterm budgetary future promises to be stoutly partisan, even as Obama is undertaking outreach to rankandfile Republicans in hopes of sowing the seeds for a bipartisan "grand bargain" on the budget this year after two failed attempts to strike agreement with House Speaker John Boehner. Obama's budget is already weeks overdue and Press Secretary Jay Carney deflected questions about it Monday, other than to promise that it would "for a period of time" bring deficits below 3 per cent of gross domestic product, a measure that many analysts say is sustainable without damaging the economy.
The wrapup spending bill for the halfcompleted fiscal year released Monday, however, is another matter entirely. It's a lowest common denominator approach that gives the Pentagon muchsought relief for readiness accounts but adds money sought by Democrats like Appropriations Committee Chairwoman Barbara Mikulski for domestic programs such as the Head Start early education program, health research, transportation and housing.
The Senate measure would award seven Cabinet departments including Defence, Commerce, justice, Agriculture and Veterans Affairs with their linebyline detailed budgets, but would leave the rest of the government running on autopilot at current levels. All domestic agencies except for Veterans Affairs would then be subject to a 5 per cent acrosstheboard cut while the Pentagon would bear an 8 per cent cut.
Mikulski needs Republican votes to pass the measure through the Senate, which Democrats control with 55 votes but where 60 votes are required for virtually every piece of substantive legislation. Using their leverage, Republicans have denied a White House request for almost $1 billion to help set up state healthcare exchanges to implement Obama's health care reform program as well as smaller requests for financial regulators to implement the 2010 DoddFrank law overhauling regulation of Wall St. and for the Internal Revenue Service to police tax returns.
It is hoped that the prenegotiated Senate measure could return to the House of Representatives which passed a different catchall spending bill last week and pass through that chamber unchanged and be sent on to Obama well in time to avert a politically disastrous government shutdown.
House Republicans weighed in strongly and successfully against a proposal by Mikulski to give the Obama administration greater flexibility to transfer funds between accounts to cope with the acrosstheboard spending cuts, known as sequestration. By law, the acrosstheboard cuts are supposed to be taken in equal measure from frontline programs like air traffic control, meat inspection and the Border Patrol and lowerpriority items such as agriculture research and subsidies for airline travel to rural airports.
Unless Congress acts,[url=http://nikefree.mobilejeti.com]nike free sko[/url], about $85 billion in acrosstheboard spending cuts must be made by the end of the budget year on Sept. 3, causing thousands of job losses and threatening the fragile economic recovery. The automatic cuts derive from a budget dispute they were supposed to help resolve back in the fall of 2011. At the time, a congressional Supercommittee was charged with identifying at least $1.2 trillion in deficit savings over a decade as part of an agreement aimed at averting a firstever government default. The president and Republicans agreed to create a fallback of that much in acrosstheboard cuts, designed to be so unpalatable that it would virtually assure the panel struck a deal.
However, the Supercommittee failed to reach a deal. And while Obama and Republicans agreed to a twomonth delay last January, they failed to reach agreement to prevent the first installment of the acrosstheboard cuts from taking effect.
Even as many Republicans attack the administration for making cuts such as ending White House tours or cancelling early snow removal from Yellowstone National Park, Republicans on the House Appropriations Committee in particular fear that giving Obama greater flexibility would erode Congress' control over the federal purse, which is enshrined in the Constitution and zealously guarded.

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Ukraine faced a fresh secessionist crisis on Monday as pro-Kremlin militants occupying the Donetsk government seat proclaimed independence from Kiev and vowed to hold a referendum on joining Russia.
The declaration and accompanying appeal for Russian military assistance put the culturally splintered nation of 46 million in danger of disintegration and intensified pressure on Western powers to act.
The White House responded by calling on the Kremlin to stop trying to "destabilise Ukraine" -- a comment that echoed Kiev's earlier charge of Russia seeking to "dismember" its neighbour.
But Moscow brushed off the accusations and called the latest unrest a sign of Kiev's Western-backed leaders' ineptitude and illegitimacy.