–Key Senate Democrat Says Senate Votes Were ‘Reality Check’
–Would Be ‘Better For Country’ For Wider Talks
–Also ‘Easier’ To Get Accord With Broader Negotiations
–Senate Votes Show No Dem Support For House GOP Plan

By John Shaw

WASHINGTON (MNI) – Sen. Chuck Schumer, the third-ranking Senate
Democrat, said Thursday that it’s now time “reset” by talks between the
White House and Congress over the 2011 fiscal year budget, adding it
would be “a lot better for the country and easier” if the talks expanded
beyond the discretionary budget.

At a briefing, Schumer said Senate’s rejection Wednesday of both
the House Republican and Senate Democratic FY’11 spending plans was a
“reality check” for both parties, especially for 89 House Republican
freshman who hoped to get Democratic support their plan.

“Each side has got to move. We have and they haven’t,” Schumer
said, adding the Senate Democratic plan moves in the direction of the
House GOP plan.

“We’re waiting for some movement off of HR 1,” he said, referring
to the House Republican bill.

The Senate first defeated the House GOP plan Wednesday on a
44-to-56 vote. Sixty votes were required to pass the bill.

The Senate then defeated the Senate Democratic plan on a 42-to-58
vote. It also required 60 votes, so it fell well short.

The House Republican plan would have funded government for the
balance of FY’11 at about $61 billion below last year’s spending level
while the Senate Democratic alternative would have cut spending by about
$6.5 billion below last year.

Last week, Congress passed a two-week stop-gap spending bill that
funds the federal government until March 18.

The 2011 fiscal year began on Oct. 1 and the government has run on
a series of short-term funding bills.

Schumer has said it is now time to approach the budget stalemate
with “fresh eyes and a new mindset.”

Schumer argues that it’s time to expand the budget talks beyond
non-defense discretionary programs to include other areas of the budget.

Schumer said these talks will not reach an agreement immediately.

“It’s going to take several weeks,” Schumer said.

A bipartisan group of senators is working on a decade-long plan to
cut budget deficits deeply by drawing from savings from entitlements,
discretionary spending and tax reform.

House Republican leaders have said that Congress may have to pass
next week another stop-gap spending bill running for two or three weeks
as talks continue on a plan to complete the FY’11 budget.

** Market News International Washington Bureau: 202-371-2121 **

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