–House Budget Chairman: Obama ‘Punted’ On Tough Choices on Budget
–Rep. Ryan: Obama Ignores Burden of Debt Coming Our Way’
–OMB’s Lew: Budget Makes ‘Very, Very Tough Choices’
–House Set To Begin Debate On FY’11 Stop-Gap Spending Bill

By John Shaw

WASHINGTON (MNI) – House Budget Committee Chairman Paul Ryan
clashed sharply Tuesday with White House Budget Jack Lew at a hearing on
President Obama’s fiscal year 2012 budget, with Ryan asserting the
president’s budget “does nothing” to reform increasingly costly
entitlement programs.

In the hearing, Ryan said the administration’s budget avoids
confronting the most serious fiscal problems facing the country — the
soaring cost of entitlements which he said are the “drivers” of future
deficits and debt.

“Why did you duck?” Ryan asked sharply. “Why are you not taking
this opportunity to lead?”

“We all know the debt is becoming a crisis,” he said.

Ryan also said the administration’s uses very optimistic growth
assumptions to narrow the deficit by the middle of the decade.

“You are expecting very robust growth,” he said skeptically to Lew.

Lew said the administration’s FY’12 fiscal “puts the nation on a
path of fiscal sustainablity,” but said bipartisan negotiations will be
needed to tackle medium and long-term fiscal issues.

“This is the first step in the process … . The president’s budget
is the starting point,” Lew said.

“There are very very tough choices in this budget,” he added.

When asked when the U.S. might ever see a balanced budget again,
Lew said that “balancing the budget would require a set of decisions
beyond what anyone is discussing now.”

Over the next several days, both Lew and Treasury Secretary Tim
Geithner will testify a number of times on Obama’s new budget.

In a related matter, the House is expected to begin debate Tuesday
on a stop-gap spending bill funding the federal government for the rest
of the 2011 fiscal year. The current stop-gap bill expires March 4.

House Republicans are offering a bill that cuts the stop-gap bill
about $60 billion below current funding levels. House GOP leaders
say this plan would bring FY’11 non-security discretionary spending $100
billion below Obama’s original request.

Under the rule governing the House debate on the stop-gap bill,
lawmakers will be allowed to offer amendments that cut spending further.

Senate Democratic leaders have said the House GOP stop-gap bill
funds government at levels that are insufficient, signaling they will
offer a stop-gap bill that has few of the spending cuts proposed by
Republicans.

Lew urged the House and Senate to work together on the FY’11
stop-gap bill to ensure the government continues to operate.

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

[TOPICS: M$U$$$,MFU$$$,MCU$$$]