
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, June 14, 1995                   TAG: 9506140094
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A-1   EDITION: METRO 
SOURCE: Associated Press
DATELINE: WASHINGTON                                LENGTH: Medium

CLINTON PROPOSES BALANCED BUDGET

After months of being outmaneuvered by Republicans, President Clinton weighed in Tuesday with his own proposal to balance the federal budget in 10 years. ``It's time to clean up this mess,'' he said.

But his gesture drew fire from Republicans and Democrats alike. Indeed the vehemence of the Democratic criticism was remarkable.

Clinton said in a brief Oval Office address to the nation his proposal would cut federal spending by $1.1 trillion over the 10-year span. He said it would protect certain programs, such as education and some environmental programs. ``But make no mistake, in other areas these will be big cuts. And they will hurt.''

The new proposal calls for $127 billion in Medicare cuts, about half the amount sought by Republicans, and for trimming $25 billion from subsidies and tax breaks enjoyed by corporations.

It also resurrects a modest health-reform plan and retains a middle-income tax cut previously proposed by Clinton.

The plan was greeted with deep skepticism from Republicans, who are on their way toward enacting a balanced budget.

Leaders of Clinton's own party also tried to dissuade him, fearing they would lose important political ammunition for denouncing GOP-sponsored cuts.

In a bitter commentary, Rep. David Obey of Wisconsin, the ranking House Democrat on appropriations, said, ``I think most of us learned some time ago that if you don't like the president's position on a particular issue, you simply need to wait a few weeks.''

In all, Clinton's plan would achieve $517 billion in net deficit reduction over seven years, and $1.23 trillion over 10 - including the cost of the tax cut.

That plan calls for a $500-per-child tax break and allows families earning under $100,000 to deduct up to $10,000 a year in college tuition.

Other aspects of the proposal:

Trims welfare costs by $35 billion, less than half the size of the Republican plans; saves $55 billion in Medicaid costs, about one-third that in GOP plans.

Makes widespread general cuts across a wide range of agencies of more than 20 percent by the end of the 10-year period.

Proposes no change in the president's proposed levels of defense spending.

by CNB