Demos hint at flexibility on budget

By David Espo

Associated Press

Published: Tuesday, March 29 2011 9:33 p.m. MDT

WASHINGTON — Democrats indicated Tuesday they may be willing to accept Republican-backed curbs on the Environmental Protection Agency and other federal regulators as part of an overall deal on spending cuts, a rare hint of compromise in private negotiations marked by public rancor.

There was no immediate reaction from the White House, although administration officials are working closely with Senate Majority Leader Harry Reid in the secretive three-way talks that include House Speaker John Boehner, R-Ohio.

Any concession by Democrats on non-spending items would mark an attempt to persuade Republicans to accept smaller budget cuts than the $61 billion contained in legislation that passed the House last month.

The talks are aimed at finding agreement on a bill to meet the Republicans' demand for spending cuts while funding the government through the Sept. 30 end of the fiscal year.

A short-term spending measure expires on April 8. A partial government shutdown looms without further action by Congress by then. Even so, House Majority Leader Eric Cantor, R-Va., told reporters during the day "time is up" and there will be no more stopgap measures without the larger agreement Republicans seek.

The talks have taken place entirely out of public view, but in recent days, lawmakers in each party have swapped accusations while saying prospects for a deal were dimming.

This maneuvering took an unusual turn during the day when Sen. Chuck Schumer, D-N.Y., could be heard advising fellow Democratic senators what to say in a conference call with reporters.

"The only way we can avoid a shutdown is for Boehner to come up with a reasonable compromise and not just listen to what the tea party wants," he said.

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