Blue Dogs advocate three years of spending cuts

The moderate Democrats will suggest reducing nonsecurity discretionary spending by 2 percent annually for three years, and then freezing spending levels for two years.

Reps. Frank Kratovil of Maryland and Travis Childers of Mississippi are leading a group of Blue Dogs who plan to introduce legislation that would cut nonsecurity discretionary spending by 2 percent for each of the next three fiscal years and freeze spending levels for two years after that.

"Although cutting discretionary spending will no doubt mean making tough choices about where to tighten our belts, it is the common-sense way to focus on today's national priorities while preparing for the future. ... We must enact the policies necessary to rein in spending and build the foundation for a stronger, more stable economy," Kratovil said.

The Congressional Budget Office last week put the deficit for fiscal 2010 at $1.5 trillion -- 10.3 percent of GDP, a post-World War II record. The CBO analysis, which took into account President Obama's fiscal 2011 budget proposal, projected the 10-year at $9.8 trillion, compared with $8.5 trillion estimated by the White House.

"Our national debt and deficit have reached unsustainable levels and are continuing to grow," Childers said. He called cutting nonsecurity discretionary spending "a significant step toward balancing our budget and restoring fiscal responsibility."

The lawmakers said the measure would effectively reinstate caps on federal discretionary spending that were in place during the 1990s and helped produce budget surpluses along with pay/go.

Blue Dogs and House Democratic leaders pushed to give pay/go the force of law and Obama signed the bill last month, along with a $1.9 trillion increase in the statutory debt limit that set the ceiling at $14.3 trillion.

Obama proposed a three-year nonsecurity discretionary spending freeze in his fiscal 2011 budget request; it exempts defense, homeland security, veterans' programs and foreign aid spending.

House Democratic leaders have said they believe the freeze should also apply to defense and homeland security spending.