White House: government shutdown can be avoided

Despite hard-line positions in Congress that indicate a shutdown of the federal government may be inevitable, the White House is "optimistic" one can be avoided.

"There is the strong potential there for us to reach an agreement to avoid what you called a government shutdown," said White House press secretary Jay Carney at his daily press briefing.

Funding for much of the federal government will expire on March 4th unless Congress enacts a new funding resolution.

The Republican-led House passed a bill last week that would keep the government operating through the end of the fiscal year September 30th. But the measure includes $61 billion in new budget cuts that Democrats find unacceptable.

Senate Majority Leader Harry Reid says he won't even bring the House bill to the Senate floor. He wants to pass a short-term measure that would keep the government funded and operating while a compromise is worked out.

House Speaker John Boehner is willing to go with a short-term measure, but insists it contain budget cuts of some magnitude. He didn't say how much.

Neither the Office of Management and Budget nor the Office of Personnel Management have yet issued guidelines to federal departments and agencies on what a government shutdown would mean and how it should be implemented.

Like Carney, they adhere to the hope that congressional leaders can work out a compromise to keep the government up and running beyond March 4th.

"We have been engaged in the process," Carney said of White House efforts to arrange an extension of government funding. He did not get specific.