Budget chronology

October 09, 1990|By Knight-Ridder News Service

These are the developments that led to the budget crisis:

Sept. 30: After four months of negotiations, White House and congressional leaders propose a budget plan to cut the deficit by $500 billion in five years, $40 billion in 1991.

Oct. 1: The start of the government's 1991 fiscal year. Congress approves a bill allowing the government to operate for five days while it considers the proposed budget plan.

Oct. 2: On national television, President Bush calls on Americans to support the budget plan. But opposition builds in Congress as the public opposes increases in Medicare fees and higher taxes.

Oct. 4: The House defeats the budget plan after a majority of Republicans, and then Democrats, desert the president and their congressional leaders who had endorsed the plan.

Oct. 5: With the five-day spending bill due to expire at midnight and no budget agreement in sight, Congress passes a bill allowing the government to operate for another seven days.

Oct. 6: Bush, expressing frustration with Congress, vetoes the seven-day spending bill. Non-essential government operations begin shutting down. The House fails to override the veto.

Oct. 7: Democratic leaders in Congress propose a new 1991 budget plan similar to the one endorsed by Mr. Bush a week before. But it would reduce Medicare fee increases and give committees in Congress more leeway to determine tax increases. House Republicans object, but the plan is approved in the House.

Oct. 8: The Senate begins consideration of the new 1991 budget plan proposed by Democratic leaders. Federal workers have the day off for Columbus Day.

Oct. 9: Federal workers have been told to report to work but could be sent home if the budget crisis continues.

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