The move shows Democrats are trying to determine a new negotiating stand. Dems ready cuts to avoid shutdown

Top Senate Democrats have informed the White House that they are putting together a seven-month continuing resolution that will include some spending cuts outlined in President Barack Obama’s proposed 2012 budget, according to a Democratic aide with knowledge of the negotiations.

Democrats have yet to reveal how deep their cuts will be, but the latest move shows that Senate Democrats are trying to determine a new negotiating stand while House Republicans insist on their $61 billion in cuts to fiscal 2011 federal spending.


Democratic leadership aides and Senate Appropriations Committee staff are putting this plan together in hopes of averting the need for a short-term budget bill before the government runs out of money on March 4. Democrats said they want to propose a plan that will show their commitment to cut future spending that goes beyond their calls to freeze domestic discretionary spending over five years.

While they won’t go as far as the GOP plan, Democrats are trying to avoid the blame if the government shuts down, showing that they are willing to compromise - unlike their adversaries. But if the GOP leadership backs less ambitious cuts proposed by Democrats, they’ll face strong opposition from the tea party wing of their caucus.

According to an aide, the Democratic leadership has informed White House officials that it plans to target the 211 programs outlined by Obama for terminations and cuts — which the Office of Management and Budget projects would save $33 billion in 2012 — as well as leftover earmarks still being funded under the current continuing resolution, which amount to some $8.5 billion. Those reductions would be made next fiscal year under Obama’s plan, but Democrats say they want to see which of those programs can be eliminated or cut immediately.

“We have said all along we are willing to negotiate on further cuts beyond the $41 billion we have already put on the table,” the aide said. “Now we are putting a seven-month offer together that makes serious cuts, and we will see whether House Republicans will be reasonable or if they will continue to push for a government shutdown.”

It remains unclear how many of those programs Democrats would eventually cut, especially since some have already generated outrage from the left, like the $2.5 billion cut from low-income heating assistance. Other proposals, such as cutting coal subsidies by $136 million next year, are certain to generate pushback from Democrats from industrial states. Democrats will have to agree on a plan when they meets next Tuesday for a caucus lunch.

House Republicans have so far stood firm on their calls to cut $61 billion in spending over the next seven months, and potentially cut $4 billion over the first two weeks of March as a stop-gap measure to avert a government shutdown. And they’ve scoffed at the $41 billion figure, saying Democrats are inflating the actual level of cuts since, they’re measuring against a budget that never has been enacted.

“It sounds like Senate Democrats are making progress towards our goal of cutting government spending to help the private sector create jobs,” said Michael Steel, spokesman for House Speaker John Boehner (R-Ohio). “Hopefully, that means they will support the short-term CR with spending cuts that we will pass next week, rather than shutting down the government.”