THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Wednesday, November 15, 1995 TAG: 9511150210
SECTION: FRONT PAGE: A9 EDITION: FINAL
SOURCE: BY DALE EISMAN, STAFF WRITER
DATELINE: WASHINGTON LENGTH: Medium: 59 lines
Their ranks depleted by retirements and defections to the Republicans, a beleaguered band of moderate Democrats intensified efforts Tuesday to get the public and their colleagues to pay attention to their ``third way'' toward a balanced federal budget.
The budget plan offered by ``The Coalition,'' as the moderates call themselves, would balance the federal government's books in seven years - a major goal of Congress' Republican leaders.
But The Coalition's plan would get to the GOP goal in a way that minimizes damage to educational and social programs dear to most Democratic hearts. The Coalition also would forgo any federal tax cuts until the budget is finally balanced.
``We simply believe we should not be considering tax cuts until the budget has been balanced,'' Virginia Sen. Charles S. Robb, a Coalition member, told reporters.
By forgoing the $245 million in tax cuts advocated by the GOP, The Coalition would be able to avoid or limit some of the most severe spending cuts in the Republican plan. For example:
The Republican plan cuts Medicare spending by $270 billion over seven years; The Coalition alternative limits those cuts to $168 billion, in part by giving doctors and other health-care providers smaller-than-projected increases in reimbursement payments.
The Republicans would cut growth in Medicaid by $169 billion, twice as much as The Coalition proposal.
The Republicans want a $23.5 billion cut in the earned income tax credit, an important tax break for the working poor; The Coalition would reduce the benefit by only $1.8 billion.
The Republicans would reduce the growth in federal spending on a variety of education, health, science and other programs by $143 billion; The Coalition would cut those programs by $69 billion.
About 20 coalition members and supporters jammed a conference room in the Capitol's basement Tuesday morning to all but plead with the White House and congressional Republicans to consider their plan as the basis for negotiations that could break the government's budget deadlock.
``If the Republicans are serious, all they have to do is look across the aisle,'' said Nebraska Sen. Bob Kerrey, who has been one of President Clinton's sharpest critics on tax and spending questions.
Kerrey said The Coalition plan gives Democrats an opportunity to show a skeptical public that they're serious about reducing spending.
Other coalition stalwarts insisted that though bipartisan majorities in each house have voted down The Coalition's alternative, the plan is quietly gaining support.
If either the White House or Republican leaders would merely hint that the group's plan might be the basis for a budget settlement, ``there would be a tidal wave of support,'' Illinois Sen. Paul Simon told reporters.
KEYWORDS: FEDERAL GOVERNMENT BUDGET SHUTDOWN by CNB