–Sen. Murray, Rep. Hensarling ‘Deeply Disappointed’ In Panel’s Failure
–Deficit Panel Chiefs Say They Hope Hill Can ‘Build’ On Their Work
–Budget Debate Shifts To Implementation Of Across-The-Board Spend Cuts
–House Speaker Boehner Says Effort To Cut Spending Must Continue

By John Shaw

WASHINGTON (MNI) – The co-chairmen of Congress’s deficit reduction
panel announced Monday evening that it “will not be possible” for their
panel to reach an agreement on any deficit reduction plan.

In a statement, Sen. Patty Murray, a Democrat, and Rep. Jeb
Hensarling, said they are “deeply disappointed” their panel was not able
to agree on a “bipartisan” deficit reduction package.

They said they are “hopeful” that the work of their panel can
provide the basis for successful deficit reduction efforts in the
future.

In a separate statement, House Speaker John Boehner said he is
“disappointed” the panel failed to achieve the “desired outcome.”

But he said the panel’s work “did bring our enormous fiscal
challenges into greater focus.”

Boehner vowed to press ahead on efforts to cut spending and ease
government regulation.

Senate Majority Leader Harry Reid slammed Republicans for the
panel’s failure, saying the GOP “never found the courage to ignore the
Tea Party extremists” who were opposed to a balanced plan.

The Joint Select Committee on Deficit Reduction that Murray and
Hensarling chaired was charged to submit a report to Congress by
Wednesday that reduces the deficit by at least $1.2 trillion for the
2012 and 2021 period.

Since the panel failed to agree on a spending cut package, a budget
enforcement trigger will secure $1.2 trillion in budget savings through
across-the-board cuts.

The cuts are designed to be equally divided between defense and
non-defense programs but would exempt Social Security, Medicaid and
low-income programs. Those cuts are scheduled to begin in January of
2013.

Senate Budget Committee Chairman Kent Conrad said lawmakers must
continue to try to assemble a major deficit reduction plan.

“A bipartisan, comprehensive and balanced deficit reduction plan
must be enacted,” Conrad said.

Republican members of the panel said Democrats would not agree to
an overhaul of entitlement programs unless massive tax increases were
attached to these changes.

Democrats said the GOP members of the panel demanded that the Bush
era tax cuts be extended as part of any deficit reduction deal.

** Market News International Washington Bureau: (202) 371-2121 **

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