Print version Email to a friend

Decision coming on U.S. budget talks - senator

Mon, 2 May 2011 22:43 GMT

Source: reuters // Reuters

* Bipartisan group of lawmakers seek budget compromise

* Announcement could provide clue this week

* United States nearing $14.3 trillion debt limit

By Andy Sullivan

WASHINGTON, May 2 (Reuters) - The U.S. Senate's top budget writer hinted on Monday he will soon know whether a bipartisan deficit-reduction plan will be possible or whether Democrats should forge ahead with a plan of their own.

Senate Budget Committee Chairman Kent Conrad has delayed the release of his annual budget plan for several weeks while he and a handful of other lawmakers known as the "Gang of Six" have tried to hammer out a deal that could be acceptable to both Republicans and Democrats.

Members of the bipartisan group have declined to say how those talks are going in all but the broadest terms amid keen interest in Washington as Congress girds for a showdown over the country's rapidly increasing debt.

"Every time we meet we're closer" to an agreement, Conrad said after a three-hour Gang of Six meeting on Monday.

Conrad said he could have an announcement soon about the Budget Committee's plans, which could indicate whether the Gang will have a feasible blueprint or whether he will be forced to advance a plan of his own.

"I hope to have something to announce before the end of this week on what we'll do in the Budget Committee, then we'll go to a budget resolution. So I hope to be able to make an announcement on a schedule before the end of this week," Conrad said.

As chairman of the Budget Committee, Conrad is responsible for advancing an annual budget resolution, a blueprint of sorts that sets spending levels for the fiscal year that starts in October.

Conrad has said that he hopes to use the Gang of Six proposal as this year's budget resolution in order to win support from both parties, rather than the partisan document that passes on a party-line vote in a typical year.

But he is likely to encounter fierce resistance from Republican members of the Budget Committee who have not been part of the bipartisan Gang of Six discussions.

If the Gang of Six fails to yield results, Conrad could move ahead with a budget proposal that would only win Democratic support.

Three other members of the group -- Republican senators Saxby Chambliss and Tom Coburn and Democratic senator Mark Warner -- declined to comment about the talks.

Asked if they would reach an agreement by the end of the week, Chambliss said: "Who knows."

The Republican-controlled House of Representatives passed a budget blueprint several weeks ago that would slash spending and benefit programs in order to trim budget deficits that have hovered around 10 percent of GDP in recent years.

That plan is not expected to get far in the Democratic-controlled Senate.

The Gang of Six, which also includes Democratic Senator Dick Durbin and Republican Senator Mike Crapo, has based their discussion on a proposal released last year that would combine spending cuts and end a wide variety of tax breaks.

Though the group has been meeting for months, it will need to come up with results soon.

The United States is expected to reach its $14.3 trillion debt limit in the next couple of weeks, and lawmakers from both parties say they won't agree to raise it higher unless Congress also takes steps to get deficits under control.

Many analysts believe the Gang of Six represents the best chance to come up with a plan that could win support from both parties. (Editing by Laura MacInnis)