Prospects brighten for small-scale budget deal

WASHINGTON (AP) — Despite the poisonous environment in Congress, chances are improving for a small-scale budget deal next month that would ease automatic spending decreases that threaten to cut more deeply into domestic programs and military priorities in 2014.

Neither party will get its biggest priority — for Democrats, higher taxes; for Republicans, slowing the exploding cost of retirement programs. But a mutual desire to avert another government shutdown sets the stage for splitting the $91 billion difference between what Senate Democrats and House Republicans want to spend next year on operating budgets of the Pentagon and domestic agencies.