GOP Approves Outline of Budget Plan

Breaking a weeks-long deadlock, the Republican chairmen of the House and Senate budget committees agreed Friday to the outlines of a $1.8-trillion budget for next year that portends an election-year confrontation with President Clinton.

Under their framework, spending on many defense and domestic programs would total $596.5 billion next year, $10.5 billion more than this year, with increases planned for defense, education and health. Clinton wants $625 billion, leaving the two sides nearly $30 billion apart.

The plan also envisions $150 billion for tax cuts from 2001 through 2005, and leaves the door open for at least $60 billion more. Clinton has proposed $99 billion in tax cuts, offset almost completely by $96 billion in tax increases.

“We think we’ve got a winner,” said House Budget Committee Chairman John R. Kasich (R-Ohio).

Democrats didn’t. They said the GOP plans for tax cuts and defense spending would force cuts in many domestic programs and ensure an autumn budget brawl.

“They’re assuming unrealistic cuts in vital services from health to environment so they can either have significant tax cuts or rely once again on end-of-year gimmicks and shell games,” said Gene Sperling, a White House economic advisor.

The GOP package would also set aside $20 billion to $40 billion over five years for a Medicare prescription drug benefit or other changes to the program, plus $5 billion next year for financially strapped farmers. And besides using all $978 billion in Social Security surpluses to reduce the national debt, it would specify that any money for tax cuts that Clinton vetoes would also go for debt reduction.

Kasich said his committee would vote on the measure next week. The Senate Budget Committee chairman, Sen. Pete V. Domenici (R-N.M.) said his panel will follow a week later.

Their framework, for which details must still be completed, was reached after weeks of talks with congressional leaders and rank-and-file Republicans.

Kasich and many conservatives initially wanted to limit defense and domestic programs to $586 billion, the same as this year. But they agreed to the higher figure after it became clear there would not be enough votes to pass a budget at the lower level.

Republican leaders hope Congress will complete its budget by mid-April to give lawmakers time to complete the rest of their work and adjourn by early October so they can campaign for reelection.

However, Sen. Phil Gramm (R-Texas), one of four conservatives on the budget committee who want less spending than Domenici prefers, said he would “vigorously oppose” it. Gramm wants to hold spending down, in part to leave room for the $483-billion tax cut proposed by GOP presidential candidate George W. Bush of Texas.