THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Friday, June 30, 1995 TAG: 9506300664
SECTION: FRONT PAGE: A2 EDITION: FINAL
SOURCE: KNIGHT-RIDDER NEWS SERVICE
DATELINE: WASHINGTON LENGTH: Medium: 80 lines
Congress approved a historic seven-year budget plan Thursday that calls for a hefty tax cut, deep reductions in most domestic programs, a slowdown in spending for major health-care programs - and a balanced budget in 2002.
Republicans happily predicted that the plan would lead to lower interest rates, increased productivity and stronger buying power for U.S. families.
Democrats warned, however, that the GOP plan would cause needless suffering for the elderly, the poor and the middle class as the government curbs their benefits.
Now members of Congress will spend the coming months arguing with President Clinton - and among themselves - over how to accomplish the broad goals laid out in the congressional budget resolution.
The legislation to spend the money and cut the taxes will have to be worked out, and will require the president's signature.
White House spokesman Mike McCurry predicted a ``long, hot summer'' of negotiations between the president and the Congress.
He said Clinton wants to negotiate a compromise tax and spending plan, but warned anew that the president would use his veto ``to force the kinds of changes in these congressional measures that must be made if we're going to protect the interests of the American working family and protect the American economy.''
Nevertheless, congressional Republicans hailed Thursday's action as historic.
``America will be a much better place because we decided today to start paying our own bills, instead of passing them on to our children to pay,'' said Senate Budget Committee Chairman Pete V. Domenici, R-N.M. He called it a ``moral imperative'' to halt the federal borrowing that ``will crush future generations.''
``It's a great day for our country,'' said House Budget Committee Chairman John Kasich, R-Ohio. ``Today, we're making history. Today, we're taking a giant step toward saving America.''
The House approved the budget plan on a 239-194 vote. Eight Democrats joined 231 Republicans in voting yes, while one Republican - Michael Flanagan of Chicago - joined one independent and 192 Democrats in voting no.
A couple hours later, the Senate followed suit on a party-line vote of 54-46. The plan was worked out by House and Senate negotiators last week.
Virginia Sen. Charles S. Robb, one of only three Senate Democrats to break ranks and support an earlier Republican budget plan, would not go along with the GOP's revised proposal Thursday.
Compared to the original budget, ``the conference report we vote on today is less fiscally responsible in every way,'' Robb said. ``It increases the national debt. It postpones most of the politically difficult decisions until we're so far down the road we won't be credible.''
In addition to calling for up to $245 billion in tax cuts over seven years, the GOP's plan would slow spending increases for Medicare from 10 percent a year to 6 percent a year and for Medicaid from 10 percent to 4 percent a year. The two programs help pay for health care for the elderly, disabled and poor.
It would also reduce spending from current levels on a wide array of government programs, including those dealing with the environment, education, transportation, energy and agriculture. The largest government program - Social Security - would not be affected. Defense spending would remain stable. ILLUSTRATION: Graphics
HOW THEY VOTED
A ``yes'' vote is a vote to approve the balanced-budget plan.
Herbert Bateman, R-Va. Yes
Owen B. Pickett, D-Va. No
Robert C. Scott, D-Va. No
Norman Sisisky, D-Va. No
Eva Clayton, D-N.C. No
Walter Jones Jr., R-N.C. Yes
John W. Warner, R-Va. Yes
Charles S. Robb, D-Va. No
Jesse A. Helms, R-N.C. Yes
Lauch Faircloth, R-N.C. Yes
by CNB