Budget talks begin as White House touts supplemental

Top House and Senate budget negotiators met Tuesday to discuss the fiscal 2006 budget resolution, while the White House weighed in on the Senate's $80.6 billion fiscal 2005 supplemental appropriations bill with an admonishment to fully fund administration requests and remove items unrelated to the war on terrorism.

Senate Budget Chairman Gregg said while talks are in full swing it was unrealistic to expect a budget deal by the April 15 statutory deadline.

"We're a long way from having a deal," Gregg said, adding that "we're having good discussions."

While the Senate has appointed conferees, the House has yet to do so and, as of presstime, had no plans to do so this week.

House-Senate sticking points on the budget include the parameters of a package of mandatory spending and tax cut targets for inclusion in reconciliation legislation later this year.

Sen. Gordon Smith, R-Ore., a leader of Senate moderates who want smaller Medicaid cuts than the House and Bush administration have proposed, said "you can have a reconciliation number, but it needs to be small. And it needs to be addressed in reforms that have bipartisan support."

The Senate version calls for $17 billion in mandatory cuts, with none in Medicaid, while the House version would trim $69 billion from various entitlement programs. On tax cuts, Gregg said "we're talking to the House" but that "they're not as hung up on the tax issue as we are. It's more what [Finance] Chairman Grassley feels he needs ... he feels he needs $70 billion."

The House version calls for $45 billion in tax cuts protected by reconciliation instructions, in part to preserve flexibility in pushing for permanent extensions of expiring tax cuts, and $106 billion overall. As budget talks took place, Senate debate continued on the supplemental. An amendment by Sen. Patty Murray, D-Wash., to add $2 billion in veterans' benefits was pending at presstime, although it had little GOP support.

The White House on Tuesday issued a Statement of Administration Policy expressing support for the supplemental but asking senators to remove unrelated items, such as $128 million for flood protection and cleanup in states such as Utah, California and Hawaii.

The White House also urged appropriators to fully fund its $250 million request for the office of the national intelligence director. The Senate Appropriations Committee shaved $161 million that would be steered to building a facility to house the intelligence office. The administration also asked that the Senate restore $45 million in debt relief for tsunami-stricken nations that appropriators removed, and that funds for Iraqi and Afghan security forces not be diverted for other purposes. ,p. The Senate bill would direct $500 million to reimburse the Army for training costs and $99 million to Jordan for a regional training center.