From Andrew Taylor of AP:

WASHINGTON – Congressional Democrats returning this week to the Washington they control will confront an embarrassing pile of unfinished budget business after spending the winter and spring blowing deadline after deadline.
With many Democratic lawmakers running for their political lives five months before the fall elections, even relatively simple tasks such as helping the jobless and preventing cuts in Medicare payments to doctors are hanging — victims of the ever increasing anxiety over annual trillion-dollar-plus deficits.
A war funding bill is long overdue. The most basic chore of writing a budget has been all but abandoned. There’s no sign of the 12 annual spending bills for keeping government agencies open four months from now.

More:

On the horizon is the dilemma of what to do about renewing a long roster of tax cuts enacted under former President George W. Bush. They’re due to expire two months after the November election. Lawmakers will be under tremendous pressure to act in September or October. Based on the record so far, it won’t be smooth — and might not get done before Election Day.
Efforts to pass a nonbinding blueprint that sketches out fiscal goals have stalled in the House. Moderate “Blue Dog” Democrats have demanded spending cuts beyond President Barack Obama’s proposed freeze on domestic agency operating budgets. House leaders and the liberal core of the party are resisting.
The most painful budget questions — where and how to raise taxes or cut popular benefit programs, or both — were handed them off to bipartisan fiscal commission, which many budget experts believe is unlikely to succeed in coming up with a deficit-cutting plan…
It’s hardly the first time that Congress won’t have passed a budget resolution, but Democrats were harshly critical of Republicans’ failures to do so in the past.
“If you can’t budget, you can’t govern,” Rep. John Spratt Jr., D-S.C., now the House Budget Committee chairman, said when the GOP-controlled Congress failed to produce a budget in 2006.