Senate OKs budget cuts in close vote

The bill now goes to the House for a vote.
WASHINGTON (AP) -- The Senate narrowly approved Thursday the first cuts since 1997 to benefit programs such as Medicare, Medicaid and farm subsidies, giving Republicans a modest victory against ever-rising government spending.
The bill, passed by a 52-47 vote, makes mild cuts to the health-care programs for the elderly, poor and disabled, but leaves the food stamp program untouched.
The measure also permits exploratory oil drilling in an Alaskan wilderness area. Five Republicans in the GOP-controlled Senate who oppose the drilling voted against the bill.
The spending battle now heads to the House, where Republicans are divided over whether to cut more deeply across a broader range of social programs. Also, House GOP leaders may remove a provision that allows drilling in the Arctic National Wildlife Refuge.
The Senate bill is estimated to trim $36 billion, or 2 percent, from budget deficits forecast at $1.6 trillion over five years. The cuts total $6 billion for the plan's first year, with deficits predicted to exceed $300 billion.
Still, Republicans said the debate was an important moment for their party, which gained control of Congress 11 years ago with promises to balance the budget. The return of intractable deficits and surging spending has caused heartburn for many Republicans over their record on holding the line on spending and addressing budget deficits.
The long-planned budget measure would make the first cuts to mandatory programs since 1997. These programs account for 55 percent of the budget and include Medicare, Medicaid, farm subsidies and student loan subsidies.
Despite strongly supporting the overall effort, the White House has threatened to veto the bill over an obscure proposal to kill subsidies for some regional health insurers that offered Medicare prescription drug coverage. The White House's stand threatens $5.4 billion in savings.
Dems opposed
Democrats generally opposed the bill because it allows the oil drilling and increases the deficit when coupled with a $70 billion tax cut bill.
"Their budget ... actually would make the deficit worse," said Senate Minority Leader Harry Reid, D-Nev. "That's fiscally irresponsible at any time, but especially when we should be saving to prepare for the baby boomers' retirement."
Yet Republicans did pick up the support of two Democrats, Sen. Ben Nelson of Nebraska and Mary Landrieu of Louisiana, whose hurricane-devastated state won emergency aid under the bill.
Also Thursday, the House Budget Committee approved a $54 billion deficit-reduction bill on a party-line vote. But so many GOP lawmakers are unhappy with the bill that Republican leaders acknowledge it will have to be reworked before a final vote in the full House next week.
Drilling issue
It appears increasingly likely that protests from moderates will force House GOP leaders to drop the oil drilling plan and revisit it in final compromise talks with the Senate.
The Senate Republicans who opposed the budget bill over the drilling issue were Norm Coleman of Minnesota, Susan Collins and Olympia Snowe of Maine; Lincoln Chafee of Rhode Island; and Mike DeWine of Ohio.
As a result, the Senate's cuts largely protect beneficiaries of the programs, while turning to drug companies, pharmacies and insurance subsidies for much of the savings. The Agriculture Committee, meantime, dropped plans to cut food stamps.