Delivering what he believes is the Senate Democrats' bottom line on the budget, Minority Leader Daschle yesterday said his caucus is unlikely to accept a budget deal that cuts Medicare or taxes by more than $100 billion.
However, Senate Majority Leader Lott told CongressDaily that tax cuts and Medicare may not be the major stumbling blocks. Lott said the Clinton administration is still insisting on a discretionary spending increase of more than $100 billion.
Daschle said the $100 billion in Medicare cuts offered by President Clinton is "the limit beyond which we cannot go."
Budget talks are set to continue this week, and Daschle said if the deal includes Medicare cuts of more than $100 billion, "I'd be inclined to oppose it." He said he is confident administration officials feel the same way.
Senate Budget Chairman Domenici has called for Medicare savings of between $110 billion and $130 billion. Lott said any Medicare plan must provide for reform and solvency of the program. "I'm not sure that $100 billion is enough to do that," he said. Daschle also said a tax cut "has to stay in the double-digits," adding that "it would be very difficult for Democrats to support any more than that."
Senate GOP leaders this weekend said if there is no substantial progress by Wednesday -- when the formal talks are set to resume -- they would suspend negotiations and begin developing a budget on their own.
Lott said a major issue facing negotiators is the level of discretionary spending. He said the administration wants a discretionary spending boost of more than $100 billion, with increased spending on such programs as welfare.
Daschle said he is disappointed Republicans are again discussing deadlines. "I don't think there's any reason to throw down any deadline," he said. "We've passed many of those premature deadlines in the past." Daschle questioned whether Republicans can even develop their own budget. "I don't think they have the consensus," he said.
Domenici, appearing on "Fox News Sunday," said budget negotiators are searching for the "big middle" that could form the basis of an agreement. However, Daschle said that for the talks to succeed, Republicans must show more flexibility. "Movement has to come from their side," Daschle said.
On another spending issue, Daschle said Senate Democrats will oppose a plan to attach an automatic continuing resolution to the supplemental spending bill being considered by the House Appropriations Committee. Commenting on the plan, which is designed to avoid a government shutdown, Daschle said it is "not an appropriate use of continuing resolutions."