Reagan Gets Draft of ’87 Budget Urging Sweeping Cuts

Budget Director James C. Miller III submitted to President Reagan on Wednesday the first draft of the next fiscal year’s proposed federal budget, a plan that officials said contains some of the most sweeping domestic spending cuts ever considered by the Administration.

It was the President’s first look at the 1987 budget, which Miller has said would trim at least $50 billion in non-military spending in the fiscal year that begins next Oct. 1.

White House officials would not divulge specific details of the budget proposal, which will be formally presented to the Cabinet today.

Cuts Advocated Earlier

But sources both inside and outside the Administration said it would include most of the program eliminations the President unsuccessfully advocated in his 1986 budget, including ending Amtrak subsidies and abolishing the Small Business Administration and the Jobs Corps.

According to the sources, who spoke on the condition of anonymity, the new package is also likely to propose:

--Drastic cutbacks in government aid programs to states and cities, including housing, mass transit and urban development programs.

--A major overhaul of federal credit programs and a tightening of requirements for obtaining a wide variety of government-backed loans, including new proposed slashes in student aid programs.

Revenue-Raising Fees

--A new package of revenue-raising “user fees” to shift a greater share of the cost of government services to those who use them. Increases in fees to use national parks are among those under consideration, according to the sources.

Miller stressed that the spending cuts in his draft report were tentative, and that he intended to give the President a series of options. In all, the $50 billion in cuts will come from a pool of $430 billion in possible reductions, Miller has said previously.

The new round of cuts was expected to generate heated debate among the Cabinet, which was informally notified of the proposed cuts after the late-morning meeting between Miller and Reagan.

White House spokesman Larry Speakes said the meeting lasted about an hour. Pressed by reporters for more information about the session, Speakes said only that “all players” were present.

Saying he had imposed upon himself a “rule of silence” about the budget process, Speakes refused to offer any other details and added that he “would not announce any further meetings, not talk anymore, whatever.”

The spokesman added that no further budget sessions would be published on Reagan’s public schedule.

It was Miller’s first budget offering. He took over the key budget post last fall, succeeding David A. Stockman.

Miller, in a recent session with reporters, said he thinks there now is more of a commitment both within the Administration and on Capitol Hill to make difficult budget choices.