Democrats Weigh $35 Billion for Economy

WASHINGTON — Senate Democrats are considering following up the recently passed economic stimulus bill with $35 billion in additional money for the unemployed, food stamps and heating subsidies for the poor.

Budget Committee Chairman Kent Conrad, D-N.D., on Wednesday said the proposed steps are likely to be endorsed in the congressional budget plan he is drafting as a response to President Bush's budget for the 2009 fiscal year beginning Oct. 1.

Conrad said his plan would demonstrate the budget can be balanced within four or five years despite deficits that are worsening in the short term.

Democrats are also weighing whether to advance legislation raising taxes on oil companies under special budget rules that block Senate Republicans from filibustering the measure to death as they did last year, Conrad said. The additional revenues would go to incentives to support wind, solar and biofuel industries, as well as energy efficiency programs.

The annual congressional budget resolution is a nonbinding blueprint that sets the parameters for follow-up legislation setting spending levels and making tax policy changes.

As a practical matter, new stimulus steps do not need to be endorsed by the nonbinding budget plan, but it was the first time a top Democrat had put a price tag on the party's additional stimulus plans.

This year's budget debate will play out against the backdrop of a presidential election and a soft economy that guarantees lawmakers will take a pass on tackling difficult problems such as the spiraling growth of federal health care programs.

Instead, Democrats are signaling they'll press for additional funding for proposals aimed at boosting the economy as well as longer-term increases for infrastructure projects such as road and bridge construction.

Bush has signaled that he'll oppose Democrats' efforts to add economic stimulus spending on food stamps, heating subsidies and unemployment insurance on top of the tax cut measure approved earlier this month that will provide $600-$1,200 rebate checks to most taxpayers.

Democrats seem to relish the prospect of election-year battles with Bush and Republicans on additional proposals to boost the faltering economy. Republicans have delayed Senate action on a bill aimed at easing the housing and foreclosure crisis and Bush has signaled he'll veto that measure as well.

The budget is slated to advance through Conrad's committee next week. He consulted behind closed doors with fellow Democrats on the budget picture Wednesday.

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