Jonathan Karl: Capitol Hill update and political year in review

Jonathan Karl is a CNN Capitol Hill correspondent.

CNN: Welcome to CNN.com Newsroom, Jonathan Karl. Nice to have you back with us today.

JONATHAN KARL: Greetings!

CNN: Members of Congress allowed an automatic pay raise for themselves to go through. What's the story behind these raises?

KARL: Well, as you point out, although Congress couldn't pass a bill to stimulate the economy, they did take the time to pass a pay raise for themselves -- some personal economic stimulus. It is a three percent raise, and it's actually slightly lower than the pay raise given to all other federal employees. And don't forget ... President Bush got a big raise this year. The presidential pay went from $250,000 to $400,000.

CHAT PARTICIPANT: What's happened to Scalia's son's confirmation?

KARL: Nothing yet! Democrats are absolutely opposed to this nomination, which is for the inspector general for the Labor Department. Democrats, like Senate Labor Committee Chairman Ted Kennedy say Scalia is not sympathetic to the concerns of workers. Republicans say this has nothing to do with Eugene Scalia, and everything to do with his father, Supreme Court Justice Antonin Scalia. But so far, no vote in the Senate.

CHAT PARTICPANT: I understand that Dick Armey finally agreed with Daschle that we really didn't need a stimulis package. Do you think that agreeing with the opposition is the start of a trend in Congress, much like the vote on Contra aide during the Reagan administration?

KARL: I see the opposite trend! Next year is going to start off with with a real partisan bloodbath on capitol. The bi-partisan spirit that was so pervasive after September 11 is gone. Democrats will support the president on the war, but they are prepared to do battle over domestic policy, setting the stage for next November's election, when both the House and Senate are up for grabs.

CHAT PARTICIPANT: What are likely to be some of the casualties of the "partisan bloodbath" next year?

KARL: For one, the President's faith-based initiative... another, any further effort to stimulate the economy or more presidential nominations. Essentially, it will be very hard for any major legislative initiative to make its way through the Congress next year ...

CNN: Jon, looking back -- what were some of the most notable political stories this year?

KARL: What a year! So much history was made: The first-ever former First Lady to be sworn in as senator, that is the first 50/50 Senate in over 100 years, the first time a single person -- Jim Jeffords -- changed the balance of power in the U.S. Senate. His decision to leave the Republican Party made things a lot more difficult for President Bush. Of course, September 11 and the anthrax attack, which, again for the first time in history, forced the Congress to shutdown something that didn't even happen when the British burned the Capitol Building during the War of 1812. Much history was made during 2001.

CHAT PARTICIPANT: The BRAC is still an issue in the news. What is the continuing attitude toward this objective?

KARL: BRAC -- which is the commission to close unnecessary military bases, was defanged this year in the House. The Defense Department says it has bases that need to be closed so the resources can be used elsewhere, but Congress is not making that easy.

CNN: Who should we watch for in the political arena in 2002?

KARL: Absolutely .... two names that will be in the news -- and are virtually unknown now -- are Tim Johnson and John Thune. The two candidates for Senate in South Dakota, which will be the most watched Senate race this year. Elizabeth Dole is another - she'll be running for Senate in North Carolina, where she may face Bill Clinton's former Chief of Staff Erskine Bowles. Al Gore ... watch for his re-emergence next year. The question is, will Democrats welcome him back? Oh, and Bill Clinton! Rick Berke in the NY Times had an excellent story about how Clinton has called back in his political advisors and former cabinet secretaries to continue his permanent campaign: this time to ensure his standing in history.

CHAT PARTICIPANT: Jonathan, do you think that Bush will make the recess appointments?

KARL: White House officials say Bush is likely to make some recess appointments. These are temporary one-year appointments that can be made without Senate confirmation -- for some of the nominees that have been blocked in the Senate. Otto Reich, who would be Colin Powell's number one official for the entire Western Hemisphere at the State Department has been blocked by Democrats (specifically Chris Dodd). Reich will likely get a recess appointment. Far less certain is whether Bush will do the same for Scalia. Many nominees don't like recess appointments, because they last only one year, and they lack the stamp of approval that comes with Senate confirmation.

CNN: Any closing comments for us today?

KARL: Certainly … This has been a tremendous year in terms of news ... but I'd settle for a much less eventful year next year. Cheers and happy New Year!

CNN: Thanks Jonathan! Talk to you again next week.

Jonathan Karl joined CNN.com from Virginia and he typed for himself in the chat room. This is an edited transcript of the interview on Wednesday, December 26, 2001.