politics

WASHINGTON - The Senate on Sunday approved a $447 billion spending package that will keep much of the federal government running through next September.

But even as they sent the spending measure to President Obama, Democrats were deeply divided over efforts to substantially raise the federal debt limit before Congress quits for the year.

With the increased spending and more red ink provoking new congressional alarm, a group of Democratic deficit hawks was insisting that Congress and the White House agree to new efforts to rein in the deficit or they would block a large increase in the debt limit.

Failure to increase the $12.1 trillion debt limit to cover federal borrowing could lead to a technical government default. As a result, the White House is eager to get some breathing room on the debt by the end of the year, giving lawmakers worried about deficit spending added power.

"There are a number of us who feel very strongly that this is the moment we can get some kind of concession," said Sen. Claire McCaskill, D-Mo., one of a group of lawmakers who met in the Capitol over the weekend to plot strategy.

Cost-cutting strategies

She and others said they wanted a vote on a new proposal to create a bipartisan independent commission to recommend spending cuts and revenue increases to pare the deficit. Others want an agreement by Congress to follow "pay as you go" rules when considering legislation.

If they are unable to strike a deal with the White House and the congressional leadership, the lawmakers said they would support only a short-term increase in the debt limit -- perhaps into February -- to allow more time for negotiation and for Obama to present his own deficit-reduction strategy in his State of the Union address.

"We are not going to give up the leverage we have now," said Sen. Kent Conrad, D-N.D., who leads the Budget Committee and is an author of the plan to create an independent deficit commission.

The spending measure -- for the 2010 budget year that began Oct. 1 -- passed Sunday on a vote of 57 to 35, with both Minnesota senators supporting it.

The bill combines six of the 12 annual appropriations bills funding federal departments at a cost of $447 billion, plus about $650 billion in mandatory payments for federal benefit programs such as Medicare and Medicaid.

The push at cost control by Democrats comes as Republicans, who themselves presided over deficit spending when they controlled Congress and the White House, have tried to paint Democrats as profligate because of the $787 billion stimulus plan and other spending increases.

Republicans pointed to a 10 to 12 percent overall spending increase included in the budget measure as representative of a Democratic willingness to overspend.

"Poll after poll have made it clear that this kind of irresponsible and excessive spending is unacceptable, but Democrats simply aren't getting the message," said Michael Steele, chairman of the Republican National Committee.

Focus on deficit next year

Top Democrats say their focus this year has had to be on job creation, but Obama and his aides say they intend to focus on deficit reduction next year and will propose a restrained budget in 2010.

Appearing Sunday on "State of the Union" on CNN, Lawrence Summers, the president's chief economic adviser, said Obama was receptive to new ideas for reducing the deficit.

But Summers would not commit to White House backing for a commission with the ability to make recommendations to Congress for an up-or-down vote. "What's fundamentally important is that we find a solution that works," Summers said.

The Associated Press contributed to this report.