Operation Offset

Congressional Republicans have ruled out any roll back of tax cut to pay for the Katrina reconstruction effort. They say the $200 billion should come from spending cuts.

What do those cuts include? Check out this line from the Navy Times:

"Possible sources of funding cuts to free up money for Katrina relief include reduced health benefits, consolidation of the three military exchange systems and the closure of the military's stateside school system."

The Congressmen call their idea "Operation Offset." It looks like it could leave a lot of service members behind:

• It will offer cash payments for servicemembers who cut back on health insurance and health care for their families -- this could save $2.4 billion over four years.
• Stateside school for servicemembers families would save only about $788 million over 10 years

On the other hand, Congress could remove the $24 billion in pork in this year's Highway Bill -- and be more than a tenth of the way toward paying for the reconstruction.

So far, only Rep Nancy Pelosi (D-CA) has agreed to give up $10 million of her earmarks. No one else on Capitol Hill is willing to give up their pet projects. (Navy Times)