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As the House Appropriations Committee forges ahead with the fiscal 2005 budget cycle, having been cleared to do so after House passage of the budget resolution, the Senate remains deadlocked headed into this week.

If the Senate cannot pass the budget resolution, then Appropriations Committee Chairman Ted Stevens, R-Alaska, would likely begin moving spending bills through committee capped at $814 billion, the level set by last year's budget resolution, as opposed to $821.4 billion in this year's version.

He would then be likely to add $7 billion in emergency funds to the Defense spending bill, bringing the total up to where House appropriators are headed, without triggering a point of order on the floor when total spending eventually exceeds $814 billion.

Stevens could avoid that scenario with passage of the budget resolution, which would also offer budgetary restraint ensuring a smoother process and avoiding complications in spending negotiations among the House, Senate and White House.

Senate Budget Committee Chairman Don Nickles, R-Okla., and GOP leaders will continue their efforts this week to secure the final two votes for passage of the budget resolution.

Comments by Treasury Secretary John Snow last Friday that Congress will need to enact a debt limit increase by August could add a bit of urgency to the budget talks, as debt limit legislation could be only considered under expedited procedures after adoption of a budget resolution.

A debt limit increase is a "must-pass" measure that could nonetheless serve as political fodder for Democrats to highlight what they call irresponsible GOP fiscal policies.

Although it is not expected on the Senate floor this week, the budget resolution could come up at any time if a deal is struck or if Senate Majority Leader Bill Frist, R-Tenn., decides to simply put it on the floor and risk defeat, which he had considered at one point before the Memorial Day recess.

Meanwhile, House GOP leaders will use the week to continue discussions with House Budget Committee Chairman Jim Nussle, R-Iowa, Appropriations Committee Chairman Bill Young, R-Fla., and a coalition of GOP moderates and conservatives aiming to strengthen Nussle's budget enforcement bill, which is unlikely to reach the floor until next week.

Leaders do not want to bring that measure to the floor until they are confident of passage with 218 votes, and will need to cobble together the right balance to attract both GOP appropriators and spending hawks, as Democrats are expected to oppose the bill.

House appropriators next week are expected to complete work on the Defense, Homeland Security and Interior spending bills, while subcommittees will mark up the Legislative Branch, Agriculture and Energy and Water bills.

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