Morning Bulletin – Friday, Feb. 27, 2009

A roundup of news, schedules, and key stories from CBS News Political Director Steve Chaggaris:

4830721If the title of President Obama's $3.55 trillion budget – "A New Era of Responsibility" - didn't reflect his mandate for change, the just turn to page 5 of his budget blueprint.

"This is the legacy that we inherit—a legacy of mismanagement and misplaced priorities, of missed opportunities and of deep, structural problems ignored for too long. It's a legacy of irresponsibility, and it is our duty to change it," it reads.

In not so many words: President Bush made him do it.

The question now is, as this budget process unfolds over the next 7 months, will this tectonic shift in how federal money is raised and spent work for the country as well as the president's and his party's political futures?

"President Obama's first budget -- with its eye-popping $1.75 trillion deficit, a health-care fund of more than $600 billion, a $150 billion energy package and proposals to tax wealthy Americans even beyond what he talked about during his campaign -- underscores the breadth of his aspiration to reverse three decades of conservative governance and use his presidency to rapidly transform the country," writes the Washington Post's Dan Balz.

"But in adopting a program of such size, cost and complexity, Obama has far exceeded what other politicians might have done. As a result, he is now gambling with his own future and the success of his presidency."

"Mr. Obama faces many constraints," the New York Times' John Harwood adds. "He is asking Congress to take on a wide-ranging set of complicated issues all at once, after years during which it had trouble grappling directly with almost any of them.

"His own party remains seared by the last time it followed a new Democratic president on a course of tax increases and ambitious social engineering. Interest groups, while demonized by the White House, have hardly fled from Washington and are already mobilizing for battles that could have big winners and losers.

"Like Ronald Reagan and Franklin D. Roosevelt, Mr. Obama 'does have the advantage of a crisis,' said Representative Tom Cole, Republican of Oklahoma. 'The politics of the country are changing profoundly and rapidly,' Mr. Cole continued, 'much as they did in 1932 and 1980.' But, he added, 'if he is wrong, and I believe he is, Democrats will pay a hefty political price.'"

"He sought to put his imprint on the coming decade with an agenda sharply different from that of the eight years under Republican George W. Bush, including universal health care, broad tax cuts, and a helping hand for the working and middle classes; greater regulation of business, and an aggressive plan to limit emissions that cause global warming," write McClatchy Newspapers'[ Steven Thomma and David Lightman.

"Obama proposed a massive transfer of the nation's tax burden, saying that wealthier people and businesses that benefited unfairly in recent years should pay more to help those losing ground at the bottom of the economic ladder. He would raise taxes on those with family incomes of $250,000 or more by $955 billion over 10 years and cut taxes for other families by $770 billion. Obama also signaled a shift in the way the United States projects power, calling for expanding the Foreign Service, which sends diplomats around the globe, and doubling foreign aid. His spending plan anticipates the war in Iraq winding down, even as he sends more troops to Afghanistan."

"With ambitious plans to change health care, energy, farm payments, taxes and more, President Barack Obama's budget gives congressional Democrats goals to reach for. And highlights political targets for Republicans to aim at," writes the Associated Press' David Espo.

"Democrats on Capitol Hill welcomed President Obama's budget as a long-awaited reordering of the government's priorities. Republicans expressed dismay for much the same reason," reports the Wall Street Journal's Naftali Bendavid.

"But even some Democrats expressed unease with some of the president's sweeping proposals, which include calls for higher taxes on affluent Americans and businesses, a new form of energy tax and big cuts to some long-favored programs. Mr. Obama's budget reflects his vow to change the way Washington works, but some changes can have powerful opponents."

LA Times' Janet Hook, "Obama's budget is the end of an era"

IRAQ: President Obama heads to Camp Lejeune, N.C. where he'll announce his Iraq troop withdrawal plan at 11:45am ET.

"Instead of a 16-month withdrawal period, as he originally called for, most of the troops now in Iraq would be withdrawn over the next 19 months, leaving by August 2010, senior officials said. Even under this slightly delayed timetable, the Pentagon would bring at least 92,000 troops home over the next year and a half, a massive exodus that is likely to satisfy most Americans that he is fulfilling his promise to bring the war to a close, even if some top Democrats say it's not enough," reports Politico's David S. Cloud.

"The remaining U.S. forces— totaling between 35,000 and 50,000 —would have a scaled-down mission focused on advising Iraqi forces, protecting civilian reconstruction projects and carrying out counter-terrorism operations. Senior administration officials emphasized that Obama is determined to remove all U.S. troops by the end of the 2011, as called for under an agreement signed by Iraqi and Bush administration officials. At least for now, Obama does not plan on asking Iraqi officials to allow any to remain in the country after that deadline."

Meantime, "President Obama sought yesterday to quell growing complaints from members of Congress about his plans for drawing down troops in Iraq, inviting lawmakers to a White House meeting on the eve of a North Carolina speech in which he is expected to announce that he will pull out many combat troops by August of 2010. After House Speaker Nancy Pelosi (D-Calif.) complained that the level of troops -- 50,000 -- who would remain in Iraq is too high, other senior Democrats voiced similar concerns. Not one member of the Democratic leadership, except for Sen. Richard J. Durbin (Ill.), defended the new Obama plan, which will take three months longer than he promised and still leave a significant force structure on the ground," write the Washington Post's Anne E. Kornblut and Paul Kane.

"Most lawmakers left the White House quickly after the event. Aides later said that Democrats seemed no more pleased during the meeting than before."

However, "Republicans emerged from a meeting Thursday evening more supportive than several leading Democrats, who complained earlier in the day that the president was still leaving behind too many American forces," reports the New York Times' Peter Baker.

"Mr. McCain said during the private White House meeting that he thought the withdrawal plan was thoughtful and well prepared, according to several people who were in the room. His spokeswoman, Brooke Buchanan, confirmed by e-mail on Thursday night that Mr. McCain is 'supportive of the plan.'

"The convergence of Mr. Obama and Mr. McCain on Iraq would have seemed highly improbable just a few months ago, when they clashed harshly on the future of the American mission there. Mr. McCain accused Mr. Obama of being na?ve and opposed his withdrawal plans.

"At one point, Mr. McCain said Mr. Obama 'would rather lose a war than lose a campaign.' Even since the inauguration, Mr. McCain, who represents Arizona, has remained a tough opponent of Mr. Obama, at least on economic matters. But the two have come to a common ground of sorts on Iraq, the issue that once defined their rivalry. Mr. McCain's views were echoed by other Republicans briefed in the State Dining Room by Mr. Obama, Defense Secretary Robert M. Gates and Adm. Mike Mullen, chairman of the Joint Chiefs of Staff.

"The Obama team told two dozen lawmakers from both parties that at least 90,000 of the 142,000 troops in Iraq would be withdrawn by August 2010 — 19 months after the president's inauguration, or three months longer than the time frame he had outlined as a candidate."

ALSO TODAY: Vice President Joe Biden heads to Philadelphia to chair his first meeting of the Middle Class Task Force. Today's 12:30pm ET meeting focuses on "green" jobs and among those joining him in Philly are: Energy Secretary Steven Chu, Transportation Secretary Ray LaHood, Education Secretary Arne Duncan, HUD Secretary Shaun Donovan, Agriculture Secretary Tom Vilsack and Labor Secretary Hilda Solis.

Biden wrote an op-ed that appears in today's Philadelphia Inquirer, "Green jobs are a way to aid the middle class"

The Conservative Political Action Conference continues in Washington, D.C. today. Speakers include: former Gov. Mitt Romney, R-Mass.; Gov. Mark Sanford, R-S.C.; former House Speaker Newt Gingrich; House Minority Leader John Boehner, R-Ohio; Rep. Ron Paul, R-Tex.; NRA head Wayne LaPierre and former Christian Coalition executive director Ralph Reed.

NY Times' Michael Falcone, "At Meeting of Conservatives, a Call for Principle Before Party"


FEDERAL BUDGET / ECONOMY

NY Times' Jackie Calmes, "Obama Plans Major Shift in Spending"

Wall Street Journal's Jonathan Weisman, "Obama Budget Pushes Sweeping Change"

Washington Post's Lori Montgomery, "In $3.6 Trillion Budget, Obama Signals Broad Shift in Priorities"

Politico's John Ward Anderson, "Budget winners and losers"

Associated Press' Martin Crutsinger, "Economists question budget's economic assumptions"

Wall Street Journal's Sudeep Reddy, "Rosy Assumptions Hold Down Deficit"

Bloomberg News' Ryan J. Donmoyer and Roger Runningen, "Obama's Deficit Plans May Use Over-Optimistic Growth Forecasts"

Wall Street Journal's John D. McKinnon and Tom Herman, "The Wealthy Lose Out as Many Others Gain"

Washington Post's Thomas Heath, "Investors Bristle at Obama Budget"

Wall Street Journal's Greg Hitt and Jesse Drucker, "Business Braces for a Big Hit"

NY Times' David Leonhardt, "A Bold Plan Sweeps Away Reagan Ideas"

Washington Post's Alejandro Lazo and Maria Glod, "White House Plan Would End Subsidies to Student Lenders"

Associated Press' Richard Alonso-Zaldivar, "Obama calls for generic biotech drugs"

Washington Post's Philip Rucker, "Orszag Is Economic Centrist Who Knows How to Deal"

FINANCIAL BAILOUT

NY Times' Eric Dash, "U.S. Is Said to Agree to Raise Stake in Citigroup"

LA Times' Jim Puzzanghera, "Cost of banking industry rescue could double"

FOREIGN POLICY / NATIONAL SECURITY

Associated Press' Lolita C. Baldor, "Obama directive expands national security team"

Washington Post's Karen DeYoung, "Clinton Praises 'Valuable' Talks"

SEN. ROLAND BURRIS

Chicago Tribune's Rick Pearson and Monique Garcia, "Quinn pushing Burris to walk"

MINNESOTA SENATE RECOUNT

Minneapolis Star Tribune's Pat Doyle and Kevin Duchschere, "Ballot ruling buoys Coleman"

FUTURE RACES

Politico's Kenneth P. Vogel, "Obama pledge could hamper Dems": "As if the economy wasn't causing enough fundraising problems, Democrats may face another impediment: President Barack Obama's campaign pledge not to accept money from lobbyists and political action committees. Obama's promise, and his decree that the Democratic National Committee would forego lobbyist and PAC cash while he was the party's titular leader, could considerably complicate the money chase for Democratic congressional candidates and the party committees that raise money for them and gubernatorial candidates."

IL-5 special election (Emanuel open seat): CQ Politics' Emma Dumain, "Every Vote Counts in Crowded Primary for Emanuel's House Seat"

IL-5 special election (Emanuel open seat): Chicago Tribune's John McCormick and Dan Mihalopoulos, "Feigenholtz campaign sign in Emanuel's yard"

NY Sen. 2010: NY Times' Ross Goldberg, "Gillibrand Prefers Soliloquy to Sound Bite"

NJ Gov. 2010: Philadelphia Inquirer's Cynthia Burton, "In N.J., questions on GOP's Lonegan"

TX Gov. 2010: Ft. Worth Star-Telegram's Maria Recio, "Signs point to Democrat Tom Schieffer announcing bid for Texas governor Monday"

ALSO:

Washington Post's Ann Scott Tyson, "Media Ban Lifted For Bodies' Return"

Politico's John Bresnahan, "Pelosi butts heads with Obama"

Associated Press' Sharon Theimer, "Gregg had stake in, won aid for base"

Washington Post's Mary Beth Sheridan and Hamil R. Harris, "D.C. Voting Measure Clears The Senate"