ROANOKE TIMES

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

DATE: MONDAY, November 20, 1995                   TAG: 9511200123
SECTION: NATL/INTL                    PAGE: A-1   EDITION: METRO 
SOURCE: Knight-Ridder/Tribune
DATELINE: WASHINGTON                                LENGTH: Medium


FEDERAL SHUTDOWN ENDS

The federal government was set to reopen today after its longest shutdown in history, as White House and congressional leaders agreed Sunday night to negotiate over how to balance the budget in seven years.

The agreement lets furloughed government employees return to their jobs this morning and stay at work until Dec. 15 - while President Clinton and Congress try to resolve their differences over the budget.

Those negotiations will be difficult because of fundamental disputes between Clinton and Republicans in Congress over the size and scope of the federal government and how programs such as Medicare, Medicaid and welfare should be structured.

Republican leaders proclaimed the deal would result in the first balanced budget since 1969, leading to a better future for Americans. ``This is truly one of the historic days in American governmental history,'' said House Speaker Newt Gingrich of Georgia.

``This is a victory for all Americans because what we have now done is get the president of the United States committed to a balanced budget in seven years,'' said Senate Budget Committee Chairman Pete Domenici, R-N.M.

Democratic leaders boasted that they had forced Republicans to reopen the government and acknowledge that programs such as Medicare and Medicaid must be protected.

``We must balance the budget, but we must do it in a way that is good for our economy and maintains our values,'' President Clinton said at the White House. ``This agreement reflects my principles.''

Under the terms of the deal reached Sunday night:

Congress passed a bill letting the government reopen for one day.

Congress then would pass another bill allowing government functions to resume until Dec.15.

Gingrich said the House would approve the measure today. It also gives federal workers back pay for the six days they were furloughed.

Under the agreement, Congress and Clinton committed to balancing the budget in seven years, provided they agree that the balanced-budget bill protects Medicare, Medicaid, education, agriculture, defense and other programs, as well as stimulates economic growth.

The Congressional Budget Office will determine whether the bill achieves its goal of balancing the budget. That office will consult with the president's Office of Management and Budget and outside economists before making its assessment.

The deal, based on an offer made Sunday by White House chief of staff Leon Panetta, lets both sides claim partial victories.

Republicans boasted that they had forced Clinton to commit to balancing the budget in seven years, with their Congressional Budget Office the arbiter.

Clinton and his Democratic aides said the deal gives the president an out if he thinks it would harm popular social service programs.

``The key here is we have established the framework for negotiations. Nothing will be agreed to until everything is agreed to,'' Panetta said.

``What we've been going through the last week is kind of like a pickup football game outside the Super Bowl stadium. Now we're going to go in the stadium,'' said House Democratic Leader Richard Gephardt of Missouri.

``The heavy lifting starts tonight,'' said Sen. James Exon, D-Neb.

As the talks got under way Sunday, even the Senate chaplain, the Rev. Lloyd John Ogilvie, a Presbyterian, got into the act, pleading with the two sides to end the ``continuing deadlock'' and citing Jesus' admonition that ``a house divided against itself cannot stand.''



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