House, Senate Pass Similar $1.2-Trillion Spending Plans

The two houses of Congress approved separate $1.2-trillion spending plans Thursday designed to carry out the budget accord struck with the White House and hold the deficit below $100 billion for fiscal 1990, which begins next Oct. 1.

Although the House and Senate resolutions are similar, the budget measure will have to go to a House-Senate conference committee to iron out some differences. The balloting in the House was 263 to 157. Approval in the Senate came on a vote of 68 to 31.

Changes in the legislation were held to a minimum, reflecting a reluctance by lawmakers to risk upsetting the budget agreement with the White House. A Democratic move to impose an oil import fee to help finance higher spending for social programs was roundly defeated.

Approves Wilson Amendment

In the only two notable revisions, the Senate approved an amendment by Sen. Pete Wilson (D-Calif.) to boost spending for drug enforcement by $100 million, while the House increased veterans’ programs by $175 million. In both cases, the money was offset by cuts elsewhere.

Just before the final vote, House members rejected a bid by Rep. Richard A. Gephardt (D-Mo.) that would have raised an additional $9 billion in revenues by imposing an oil import fee. Gephardt also would have hiked domestic spending by $5.8 billion. The vote against it was 373 to 49.

And the Senate brushed aside a substitute proposal by Sen. Ernest F. Hollings (D-S.C.) that would have frozen all government spending at the current year’s levels. The vote on that measure was 82 to 18.

The fact that the two budget resolutions were passed virtually intact suggests that the accord the lawmakers worked out with Administration officials most likely will stand--at least long enough to meet the deficit targets mandated by the Gramm-Rudman budget law.

The Administration already has announced that it hopes to complete negotiations with Congress this year on a budget accord for fiscal 1991--a virtually unprecedented development, if it ultimately occurs. Talks on the fiscal 1991 budget could begin early next month. That fiscal year begins Oct. 1, 1990.

California Rep. Leon E. Panetta (D-Monterey), chairman of the House Budget Committee, said that the House-Senate conference committee will start work next week in hopes of completing the measure so the congressional appropriations process can begin on schedule May 15.

Conceding that the compromise budget package was modest because of the constraints imposed by President Bush’s refusal to consider new tax increases, Panetta promised that the lawmakers would consider a “bolder” plan for fiscal 1991--but only if Bush agreed to drop his restrictions.

“If the President continues to say, ‘read my lips (no new taxes),’ you’re not likely to see a bold package,” the Budget Committee chairman told reporters. White House officials have consistently refused to say what Bush will do for fiscal 1991.

For a variety of mostly technical reasons, the two resolutions call for slightly different deficit levels. The Senate version projects a red-ink figure of $99.4 billion, while the House resolution assumes a deficit of about $99.7 billion. The two will be reconciled in conference.

As was the accord with the White House, the two congressional resolutions were based on forecasts of the economy’s performance that many outside economists regard as overly optimistic. Both assume a slight reduction in interest rates, which have been on the increase.

The lawmakers also have yet to work out details of how they will raise some $5.3 billion in added tax revenues called for as part of the accord, without violating President Bush’s campaign pledge for no new taxes. They also left vague their plans for getting $5.7 billion from sales of U.S. assets.

As specified in the accord with the White House, the two budget resolutions essentially would freeze outlays for military programs at their current level of about $299 billion, while allowing spending for domestic programs to keep pace with inflation.