Tentative Pact Cuts $55 Billion From Budget

Congressional negotiators today agreed on a fragile, unpopular $968 billion 1986 budget, including a $55-billion deficit reduction package that still would leave the government awash in at least $172 billion in red ink.

Even with actions outlined for savings of $276.2 billion over three years, the spending plan misses the goal set by President Reagan and congressional leaders at the beginning of the year to do something that would cut budget deficits in half--to $100 billion or less--by 1988.

After two days of private negotiations between the senior budget writers from the House and Senate, a larger group of bargainers settled remaining unresolved issues and gave their blessing to the package.

The package recommends:

--No significant tax changes.

--Allowing military spending to rise with inflation next year.

--Allowing full cost-of-living adjustments for Social Security and other government benefit programs.

--Reduced spending for a variety of domestic programs.

--A 15% cut for Amtrak and mass transit programs.

--Ending general revenue sharing for local governments in 1987.

The House and Senate still must ratify the agreement, which, in effect, provides a blueprint for Congress to follow in making its spending and revenue decisions. The plan does not require the President’s signature.

Legislators, weary after more than seven weeks of fighting among themselves and with the White House, appeared resigned that this was the best that could be done before Congress begins a monthlong recess on Friday.