Pelosi: Pass stimulus by mid-February

"The fact that he is making these comments publicly about fiscal responsibility gives me encouragement that we will see something," said Rep. Charlie Melancon of Louisiana, one of the leaders of the Blue Dog Coalition.

With Democrats in control of both chambers in Congress, Obama's reassurances to budget hawks from both parties already appear to be making a stimulus package more palatable. Obama said this week he would like Congress to complete action on an economic recovery plan by the end of the month or the first week of February.

But Obama himself is warning that the nation could face trillion-dollar deficits for years to come. Eight years ago, the federal budget ran a surplus; the deficit on Sept. 30 was about $455 billion. That was before the government began spending nearly half of a $700 billion bailout fund for the financial sector.

Senate Budget Committee Chairman Kent Conrad, D-N.D., agreed that trillion-dollar deficits are likely for a few years and must be tolerated as the government pumps money into the badly weakened economy. But the nation must confront long-term problems facing Social Security and Medicare, he said, which will be "very, very tough."

"It would send a very healthy message to the markets and the American people if President-elect Obama were to simultaneously announce an economic recovery package and the beginning of a bipartisan process to deal with our long-term imbalances," Conrad said.

Obama has not detailed solutions for vexing problems such as growing demands on Social Security and Medicare. His prescriptions to make government accountable could easily run aground, much like those of predecessors who vowed to tackle government waste, fraud and abuse.

But lawmakers are not short on ideas. Conrad and the Budget Committee's top Republican, New Hampshire Sen. Judd Gregg, have proposed a bipartisan fiscal task force of lawmakers and administration officials that would create a plan to reduce budget deficits and lower the national debt.

Blue Dog Democrats would like to see legislation that would force Congress to pay for spending proposals with equal spending cuts or with new revenue. House Democrats this week plan to consider legislation that would require all federal agencies to undergo new audits and would call for congressional hearings when agency inspectors general find evidence of waste or fraud.

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