MIRACLE SEASON?

Will miracles never cease? Perhaps motivation fueled by the fact that all the Representatives and one third of the Senators are up for election in November 2014 has produced a degree of cooperation which is resulting in a “Budget Deal” that if passed will avoid any government shut down for the next two years.

This Bill should be up for vote in the House on Thursday followed later by a Senate vote. Of course the tea party right will oppose it in both Houses but there should be enough combined party votes to make it the law.

According to a 6:04 pm Tuesday New York Times report; the ”budget deal would raise military and domestic spending over the next two years, shifting the pain of across-the-board cuts to other programs over the coming decade and raising fees on airline tickets to pay for airport security.

The agreement eliminates about $63 billion in across-the-board domestic and military cuts while adding $23 billion in deficit reduction by extending a 2 percent cut to Medicare through 2022 and 2023, two years beyond the cuts set by the Budget Control Act of 2011.

Under the agreement, military and domestic spending for the current fiscal year that is under the annual discretion of Congress would rise to $1.012 trillion, from the $967 billion level it would hit if spending cuts known as sequestration were imposed next month. Spending would inch up to $1.014 trillion in the 2015 fiscal year.

The figure for this year is about halfway between the $1.058 trillion passed by the Senate this spring and the $967 billion approved by the House.

Military spending would be set at $520.5 billion this fiscal year, while domestic programs would get $491.8 billion. The $63 billion increase over the next two years would be spread evenly between Pentagon and domestic spending, nearly erasing the impact of sequestration on the military. Domestic programs would fare particularly well because the 2 percent cut to Medicare health providers would be kept in place, alleviating cuts to programs like health research, education and Head Start.

The increase would be paid for in part with higher airline fees that underwrite airport security. Higher contributions from federal workers to their pensions would save about $6 billion. Military pensions would see slower cost of living increases, a $6 billion savings over 10 years. Private companies would pay more into the federal Pension Benefit Guaranty Corporation. “

States receiving mineral revenue payments will have to help defray the costs of managing the mineral leases, saving $415 million over 10 years. Deep water, natural gas and other petroleum research programs would end.

Democrats gave up their demand that the deal extend unemployment benefits that expire at the end of the month, but they hope to press for an extension in a separate measure. 

It is a start and perhaps early next year some rational Senators and Representatives will laws with needed tax reforms and entitlement changes that will put this country into a positive budget balance and at the same time reduce the National Debt.

Yes miracles can happen.