Nation - Wednesday

Dems agree on $2.9 tril budget

Democrats in the House and Senate agreed on a budget blueprint for '08 and a non-binding 5-year plan to erase the deficit. The plan promises a $41 bil surplus in '12. It counts on revenue that would be raised by letting Bush tax cuts for higher earners to expire in 2011, along with tax cuts on dividends and capital gains. It also relies on revenue from the Alternative Minimum Tax.

Neb. Sen. Chuck Hagel became the latest Republican to call on Att'y Gen'l Alberto Gonzales to resign. Hagel said revelations about Gonzales' sick bed visit to his predecessor have undermined his moral authority to lead the Justice Dept. VA's $3.8 mil in bonuses probed

The Veterans Affairs Dept. said it asked the U.S. Office of Personnel Management to review the way senior officials were awarded bonuses last year. Some bonuses went to officials involved in crafting a budget that came up $1.3 bil short and jeopardized veterans' health care. The Associated Press reported that many who got bonuses were charged awarding them.

History test scores rise from '01

Fourth, eighth and 12th graders all made modest gains since '01 on the National Assessment of Educational Progress history test. Still, only 20% of fourth and eighth graders and 14% of 12th graders were "proficient." The gains could counter criticism that history is less of a focus under No Child Left Behind.