The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Friday, March 17, 1995                 TAG: 9503170658
SECTION: FRONT                    PAGE: A1   EDITION: FINAL 
SOURCE: BY JERRY GRAY, THE NEW YORK TIMES 
DATELINE: WASHINGTON                         LENGTH: Medium:   72 lines

HOUSE OKS RECORD BUDGET CUT COMING: MORE REDUCTIONS TO OFFSET TAX BREAK CUTS THAT AIM AT AGED, WOMEN AND CHILDREN KEY TO BILLS' APPROVAL

House Republicans advanced their Contract With America on two major fronts Thursday, giving final approval to a record $17.3 billion in cuts from the current budget and taking the first step toward a reduction of nearly $200 billion over five years to pay for a promised tax cut.

Central to the success of both bills are plans to cut billions of dollars from social and welfare programs that mostly affect women, children and the elderly. Republicans brushed aside criticisms that the proposals were callous and used their superior numbers to roll over the opposition, despite the defections of some conservative Democrats who had once seemed certain to vote with the Republicans.

``We've heard the same rhetoric about compassion,'' said Rep. Gerald B.F. Solomon, R-N.Y., who as chairman of the House Rules Committee played an influential role in shepherding the legislation to the floor. ``If we don't make these cuts and more, we're going to add another trillion dollars to our 4 1/2-trillion-dollar national debt. What, I ask, is so compassionate about saddling our children and grandchildren with such staggering debt?''

After 10 hours of debate over two days, the midyear budget cuts, known as rescissions, passed by a vote of 227-200 and the bill was sent to the Senate.

Three hours later, Republicans on the House Budget Committee easily approved a separate bill to offset tax cuts approved earlier in the week by the Ways and Means Committee and sent it to the full House.

But before any of the cuts approved Thursday become law, Republicans face a much tougher challenge in the Senate and the probability of a veto by President Clinton.

Speaking to a conference of state legislators Thursday afternoon, Clinton criticized the midyear budget cuts, saying they would ``cut too much people and not enough pork.'' The president will veto the package if he receives it in its currents form, said his chief of staff Leon Panetta.

At least 17 Democrats who had indicated earlier that they would vote for the budget cuts changed their minds and voted ``no'' after it appeared that the Republicans had reneged on a deal brokered by Speaker Newt Gingrich. The deal would have guaranteed that the savings go toward deficit reduction rather than a promised tax cut. ILLUSTRATION: Graphic

GOP pledge: $1 trillion in cuts by 2002

$189 billion over five years in spending reductions to offset tax

cuts

$17 billion in spending cuts approved by House on Thursday

Local public housing cuts

Norfolk: $3.9 million

Portsmouth: $1.9 million

Suffolk: $200,000

STAFF FILE

Young Terrace, one of Norfolk's public housing communities.

HOW THEY VOTED

A ``yes'' vote is a vote to approve the package of cuts.

Herbert H. Bateman, R-Va.

Owen B. Pickett, D-Va.

Robert C. Scott, D-Va.

Norman Sisisky, D-Va.

Eva Clayton, D-N.C.

Walter Jones Jr., R-N.C.

by CNB