"Although there are good discussions, no agreement is reached," wrote John Boehner Speaker of staff in an e-mail message to reporters after a White House meeting. "The speakers were reminded that there was no agreement on 33000000000 $ as an acceptable level of spending cuts, and that $ 33 billion in cuts are not enough, especially when it is achieved mainly through budget gimmicks."
In a call early last week the White House chief of staff Bill Daley and staff Boehner agreed to allow the House and Senate Committees to begin sketching what $ 33 billion in cuts would look like. Two rooms have been passed $ 10 billion in cuts, so it was really two committees are seeking $ 23 billion in savings. Both sides agreed on about $ 7.5 billion in cuts to discretionary spending, according to Senate sources, and $ 8 billion in cuts to mandatory spending. The White House wanted to establish the final $ 7.5 billion in mandatory cuts more - by speeding up the timeline to cut Pell Grants to summer school and graduate students, cuts to the Children of the State Health Insurance Plan and eliminating funds for Kent Conrad cage health care. But Boehner wanted the money late to get out of discretionary spending - that impasse.
Discussion began to collapse at the weekend when Obama called and Boehner Boehner stressed to the President that he never agreed to a rate of $ 33 billion and that the cuts to discretionary spending are not deep enough - especially if some of the House so-called riders will make it through the Senate. Draft Laws, including hundreds of controversial riders that defund everything from health care reform to Planned Parenthood with the Environmental Protection Agency's regulation of greenhouse gases. Most of those riders had little chance of collecting 60 votes to pass the Senate.
The White House last night instructed its agencies to be prepared in case the government shutdown. Boehner also warned that a conference could be soon - the news is received with a standing ovation. Meanwhile, the Chairman plans to bring another temporary measure to the floor that would fund the government for another week, but at the cost of an additional $ 12 billion in cuts - a proposal is DOA in the Senate.
Even if both parties to reach agreement, the clock is ticking and a brief shutdown may be avoided. Funding for the government runs out on Friday and the House has a rule that all bills must be attached to the line three days before the vote - which means that to pass something on Friday bill must be posted online by tomorrow at the latest.
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