To: Victor Lazlo who wrote (35993 ) 1/22/2004 6:28:43 PM From: Mannie Read Replies (1) | Respond to of 89467 Thursday, January 22, 2004 Republicans urge Bush to cut spending 40 members say deficit is getting out of control By RICHARD W. STEVENSON THE NEW YORK TIMES WASHINGTON -- A day after President Bush vowed to submit an austere budget and halve the deficit in five years, conservatives in his own party said they were not satisfied and stepped up their campaign to force the White House and Republican leaders on Capitol Hill to do more to hold down the growth of government spending. A group of 40 Republican House members gathered to hash out how to press Bush and the congressional leadership to deal with spending increases that they say are running out of control and a deficit that is reaching alarming proportions. Their discomfort has been echoed and encouraged over the past few days and weeks by reports and statements from conservative researchers and commentators who support Bush on most issues, such as the Heritage Foundation, the Club for Growth, a political action committee, and the editorial page of The Wall Street Journal. "The president used the State of the Union to defend past spending increases and he made eight specific calls for new spending increases," said Brian Riedl, a budget analyst at Heritage. "But he made zero calls for spending cuts." After long blaming the recession and the war on terror for the sharp swing from budget surpluses to deficits, Bush is now facing political pressure not just from small-government conservatives in Congress and Democrats who say his tax cuts have plunged the government into a sea of red ink, but also from voters. Polls show that the widening deficit is of increasing concern to the electorate, and that Republicans are losing their traditional advantage over Democrats on the issue. A poll this month by the Pew Research Center for the People and the Press found that 51 percent of respondents called the budget deficit one of the top priorities for Bush and Congress. That was up from 40 percent a year earlier and 35 percent two years ago. Democrats said Bush has mortgaged the nation's future to pay for repeated rounds of tax cuts whose benefits have gone largely to the wealthy but that have failed to deliver the promised rebound in job creation. The party's presidential candidates regularly use the deficit as a proxy for Bush's overall economic management, and make a case that the budget shortfalls are leading the government to underfund health and education programs. The government ran a deficit of $374 billion in the year ended Sept. 30, and it is expected to be about $500 billion for the current fiscal year. When Bush took office three years ago, the Congressional Budget Office forecast a surplus for the following decade of $5.6 trillion. According to calculations by the Heritage Foundation, government outlays for the current fiscal year will rise 9 percent, following increases of 13 percent in 2002 and 12 percent in 2003, making the past few years one of the fastest growing periods of government spending since the 1960s. White House officials said Bush has spent money necessary for the wars in Afghanistan and Iraq and to protect the nation from terrorism and that domestic spending outside of security has been held in check. Fiscal conservatives said it would be hard for them to make progress in an election year, when members of both parties would be eager to bring more federal funding home to their districts. "You're going to have someone upset with you if you do the right thing," said Rep. Sue Myrick, R-N.C., chairman of the Republican Study Committee, the group whose members were meeting to agree on ways to hold down spending and address the deficit. "That's what we've got to find out: Are our members willing to stand up and do the right thing?"