Budget Balancing Act Begins

Budget Balancing Act Begins

Looking to build upon this year's marathon budget negotiations, the Clinton White House will push the new 105th Congress to "accelerate" the budget process in an effort to quickly reach a balanced budget agreement.

"I think you'll see us pushing for the fastest possible timetable," a senior administration official today told CongressDaily. After protracted budget negotiations this year, "we're in pretty good shape to sit down almost immediately and work out an agreement. The regular [reconciliation] order should be a fall back," he said.

Negotiations next year will be somewhat easier because a growing economy has reduced the amount of cuts needed to reach balance by 2002. "We're in remarkably good shape on the numbers in our plan," he said, noting the final administration offer this year gives them "a pretty good basis to sit down right now."

The budget submitted by President Clinton to Congress next February will contain funding and offsets for the president's campaign promises regarding education tax credits and deductions, retirement account changes and the child tax credit. The official said it should be easy to reach accord on extending for 10 years the Medicare Part A trust fund, which covers hospitals and nursing homes. But the administration expects continued disagreement on Part B premiums, co-pays and deductibles for doctor fees and outpatient care.

As part of a budget agreement, Clinton wants to reinstate food stamp and other benefit eligibility for legal immigrants changed in the welfare reform bill. With a new Senate appearing more likely to have enough votes to pass a balanced budget constitutional amendment, moving an actual balanced budget agreement at a faster pace also could dampen enthusiasm for the amendment, which Clinton opposes.

Other Clinton administration legislative priorities include passage of a new Superfund bill; Everglades preservation; welfare-to-work incentives including tax credits for businesses that hire welfare recipients; and health care benefits for workers between jobs.

The administration also "is ready to engage" in negotiations with the 105th Congress to pass some key Republican priorities, such as regulatory reform, tort reform and product liability, the official said. Clinton plans to extend an invitation to congressional leaders to meet with him in the coming weeks, the official said.

While Democrats did not take back either the House or Senate, presidential aides appear hopeful much can be accomplished, especially since they consider the president's agenda to be "modest" and agreeable to Republicans. "They [Republicans] found the way Americans gave them credit was passing constructive legislation," the senior aide said. "There was a positive feedback that the more they got done, the more people liked it." He added the evolving coalition of conservative Blue Dog Democrats and moderate Republicans will be key this year to passing legislation, especially a balanced budget agreement.

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