Budget Conferees Resume

Senate leaders called House conferees back to budget negotiations today after House Speaker Thomas P. (Tip) O’Neill Jr. said he would accept higher defense spending if a freeze on Social Security cost-of-living payments was dropped.

Senate leaders would not say whether they would scrap their plans for a controversial Social Security freeze. But Senate Republican leader Bob Dole suggested several ideas were being considered as alternatives--including higher taxes on Social Security payments for the wealthy and bringing all state and local employees under the Social Security system.