Balanced-Budget Deal Weathers Attack, Nears Senate Approval

WASHINGTON —  Fending off efforts to rewrite a finely wrought budget agreement, the Senate on Thursday neared approval of a resolution that calls for eliminating the federal deficit, providing substantial tax cuts and imposing new spending restraints on Medicare over the next five years.

Approval of the resolution, expected this morning, will mark the end of a bumpy road test of the budget agreement announced by President Clinton and GOP leaders in early May. It has weathered contentious debates in both the House and Senate, where its defenders have managed to narrowly defeat efforts to rewrite the budget to pump in more money for highways, schools and other politically popular programs.

The budget resolution, which represents an important milestone in Congress’ efforts in recent years to bring down the deficit, calls for balancing the budget by 2002 by cutting projected spending by more than $300 billion. But the budget makes room for a net $85 billion in tax cuts over five years, and about $32 billion in spending increases for key Clinton initiatives, such as expanding children’s health coverage and restoring some benefits for legal immigrants.

The Senate worked into the night to finish up work on the budget before today, when Congress is scheduled to begin a week-long recess. A nearly identical measure passed the House early Wednesday. However, minor differences between the two versions will not be ironed out until after Congress returns.

In a related development, GOP leaders came under fire Thursday for a decision to allow lawmakers to begin their recess before they voted on legislation to provide $8.4 billion in assistance to states, including California, hit by flooding and other natural disasters.

Protesting the delay, lawmakers voted to block adjournment of the House for the Memorial Day recess. However, the GOP leadership made it clear that there would be no votes on the matter until June. Democrats had complained that the GOP was holding up aid to disaster-stricken states by insisting that the aid bill be laden with politically charged amendments, including one designed to prevent future government shutdowns like the ones in 1995-96 that caused the GOP great political damage.

“We’re in chaos,” said Rep. David R. Obey (D-Wis.), comparing Republicans’ strategy to the recalcitrance that led to the shutdowns. “Once again it looks like Congress can’t put together a two-car funeral without the help of a dead undertaker.”

Republicans said they were not delaying needed assistance, because much disaster relief is already flowing through government revolving funds. However, House Appropriations Chairman Bob Livingston (R-La.) is still trying to persuade GOP leaders to bring up a stripped-down version of the bill to provide about $1 billion in interim aid to help states while Congress finishes work on the larger bill.

Many Republicans hailed this budget agreement as a triumph of their party’s long-standing efforts to balance the budget and cut taxes. But some conservatives complained that, in the effort to accommodate Clinton’s priorities, the plan did not sufficiently cut taxes and spending.

Sen. Wayne Allard (R-Colo.) said the deal would neither balance the budget nor “reduce the size and scope of the federal government.”

Democrats also were split. While the plan drew the high-profile opposition of House Democratic leader Richard A. Gephardt (D-Mo.), it was endorsed by his Senate counterpart.

“I believe this budget agreement is a very good thing for the country,” said Senate Democratic leader Tom Daschle (D-S.D.).

The budget resolution sets spending and revenue targets for the coming fiscal year, which will be a blueprint for the next stage of the budget process. When Congress returns from its recess, its committees will begin drafting detailed legislation to cut taxes, rein in spending for Medicare and other federal benefit programs, and provide annual appropriations for the rest of the federal government.

Before approving the resolution, the Senate defeated a series of amendments that were portrayed by opponents as a threat to the integrity of the budget deal.

One of the stiffest challenges to the accord came in an amendment by Sen. John V. Warner (R-Va.) to provide an additional $12 billion for highway projects and other transportation programs. That amendment, like a similar one narrowly defeated in the House, had strong bipartisan appeal because it would increase the budget for home-state projects that are the mother’s milk of pork-barrel politics.

But the amendment was killed, 51-49, after budget leaders argued that it would undermine the deal.

“None of us are happy with the level of funding that we have for our investment in highways,” said Sen. Frank Lautenberg (D-N.J.). “But we have a proposal in hand that takes priorities, unfortunately, for the moment and that is to complete the work we started on a balanced budget.”

In earlier action, the Senate rejected, 43-56, an amendment to provide an additional $5 billion for school repair and construction--a Clinton priority that was not included in the budget deal.

GOP leaders and the White House joined forces to fight those and other amendments because they had jointly committed themselves to blocking changes to its central elements.