Budget Talks Begin

Senate GOP leaders said today they do not want to short- circuit the normal budget process to reach a balanced budget agreement with the White House.

"We're going to follow the regular order of the budget act," Republican Conference Chairman Thad Cochran of Mississippi told reporters following a leadership meeting, adding, "We don't want the budget process to consume the whole year."

President Clinton has said a balanced budget deal could be reached in the aftermath of the election and met with congressional today to discuss that possibility. Senate Majority Leader Lott said he did not foresee anything substantive coming from the meeting and that GOP leaders want to see Clinton's FY98 budget before cutting any deal -- a notion with which Cochran agreed. "I think the consensus among the leadership is that we should start following the dates in the budget act and so should the president," Cochran said.

Lott said committee chairmen and the OMB and CBO must be consulted before a deal can be reached. Cochran said the Republicans agreed tax cuts should be included in budget reconciliation, but reached no other conclusions.

Lott said he wants a balanced budget constitutional amendment to come to the floor fairly early, adding that while he still likes the text of the amendment the Senate considered last year, he is willing to examine possible changes. "It was a good bill," he said. "We ought to start from there." Lott said a Democratic plan to exempt the Social Security trust fund from balanced budget calculations could convince some Democrats to support the amendment but also could convince other senators to oppose it.

Meanwhile, now that it appears a two-thirds majority of the Senate favors such an amendment, Clinton is talking less about his previous opposition to it and more about creating an "escape hatch" to allow deficit spending in the event of a national economic emergency. "I don't believe that we need [a balanced budget amendment], but if we have it, it ought to be implemented in a way that actually works," Clinton told reporters earlier today. "We just don't want an amendment to wind up making our recession worse."

White House Press Secretary Michael McCurry said the White House-leadership meeting "is not a budget negotiating session today, but a session that will determine what type of attitude there is amongst the leadership about the budget and other issues." He said Clinton's "purpose in calling the meeting was to generate a little momentum to move things faster than the regular order" of reconciliation.

Lott, House Speaker Gingrich, House Majority Leader Armey, House Minority Leader Gephardt and Senate Minority Whip Ford are scheduled to attend; Senate Minority Leader Daschle is out of the country. Clinton also plans today to hold his first extended session with OMB aides about the budget he will present to Congress in February.