Obama, GOP stare at possible government shutdown

It seems like it wouldn't be a budget fight without the threat of a government shutdown.

Just as they did in the spring, President Obama and congressional Republicans are looking at a possible shutdown this weekend amid their dispute over an extension of the payroll tax cut that expires at the end of the year.

Congressional Republicans say they have an omnibus budget bill ready for approval, but Obama and the Democrats want Congress to first to deal with the payroll tax cut (as well as an extension of unemployment benefits).

Last night, the White House called on Congress to pass a temporary spending measure before the government runs out of money at midnight Friday.

White House communications director Dan Pfeiffer said in a statement: "Given the magnitude of the legislation -- providing over $1 trillion dollars in funding -- coupled with the unresolved payroll tax cut and unemployment insurance extension, Congress should pass a short-term continuing resolution as it has seven times already this year so that all parties have an appropriate opportunity to consider and complete all of the critical budget and economic issues necessary to finish our responsibilities for the year."

The Republicans want to link the payroll tax cut extension to approval of an oil pipeline project from Canada to Texas, citing the issues of jobs and energy creation.

The Republican-run House has passed a bill that includes both the payroll tax cut extension and the oil pipeline. The issue is hung up in the Democratic-run Senate, prompting Republicans to push the omnibus spending bill in the meantime in order to avoid a government shutdown.

"Let's first deal with the deadline that happens this Friday," said Senate Minority Leader Mitch McConnell, R-Ky. "Fund the government through the rest of the fiscal year, and then turn immediately to the payroll tax cut extension that expires in January. And let's pass the job-creating and job-saving measures the House has passed."

In the meantime, the Obama administration has sent e-mails to its departments alerting them to the impact of a shutdown.

"We do need to be prepared for any contingency, and in case Congress does not act, we are taking the steps necessary to be prepared if a lapse in funding should occur," said a statement from the Office of Management and Budget.

You know the drill -- stay tuned.