The establishment of an independent, outside Office of Public Integrity to review and investigate ethics charges against members of Congress is "definitely on the table," Democratic leadership aide told Congress Daily ($$) today, confirming a report in today's New York Times that "House Democrats are seriously exploring the creation of an independent ethics arm to enforce new rules on travel, lobbying, gifts and other issues."

In an ironic and perplexing development today, the Bush Administration expressed dismay with yesterday's decision by incoming Congressional leaders to extend the FY2007 continuing resolution (CR) through the end of the current fiscal year. "The announcement from the incoming congressional majority is disappointing," said OMB Director Rob Portman, adding that “should there be a long-term continuing resolution, the administration would want to assure we maintain fiscal discipline and avoid gimmicks and unwarranted emergency spending.”

So the budget battle of 2006 will end with a whimper, not a bang. The new Democratic leadership wants to (CQ, $) extend the continuing resolution for the entire 2007 fiscal year, with some adjustments. Though not ideal, it's probably the best of all available options. It will:

• Impose a "moratorium" on earmarks, which could put the next Congress on a path toward more earmark reforms
• Remove a distraction for the new Congress, giving it more time to focus on an ambitious 100-hour agenda

Expect a long-term continuing resolution for the "punted" 2007 budget. Following announcements by the chairmen of the Appropriations Committees favoring a CR, Rep. Nancy Pelosi and Sen. Harry Reid issued this statement today: