If I was a Democrat in Congress...

Yahoo! News - Bush Proposes Steep Cuts in $2.57T Budget
If I was a Democrat in Congress, house or senate, I would just simply vote against this horrible budget and do nothing else.
Its Bush's shell game -- propose a budget so horrible that the Congress won't vote for it, then blame them for raising the deficit.
So the Democratic response should be -- nothing. No negotiations, no massaging, no special pleadings to restore this or that program, no porkbarreling, no little quid-quo-pros that would add line items for my district back in so that I would vote in favour, no cooperation, no "bipartisanship", no nothing. Its a Republican budget all the way, so let them vote for it and live with it.
Of course, I live in a parliamentary system, where the governing party is always responsible and accountable for the budget it proposes and if they screw up, people always know who to blame for the mess.