ROANOKE TIMES

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, July 25, 1990                   TAG: 9007250154
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A/2   EDITION: METRO 
SOURCE: Associated Press
DATELINE: WASHINGTON                                LENGTH: Short


BUSH, DEMOCRATS AGREE TO CEASE-FIRE ON BUDGET

President Bush and congressional Democrats agreed during a two-hour budget session Tuesday to tone down political attacks, but failed to narrow crucial differences on curing the federal deficit.

At a later meeting, administration officials and congressional leaders of both parties failed again to agree to the overall size and components of the cuts they would make in next year's budget. But House Majority Leader Richard Gephardt, D-Mo., said the two sides could agree to the overall outline of a package by today

Senate Budget Committee Chairman James Sasser, D-Tenn., confirmed that the general consensus of the negotiators remained a package of about $50 billion in savings for next year, divided about evenly between tax increases and spending cuts. The bargainers have informally been using those numbers for several weeks.

The sides agreed to a political cease-fire after Bush blistered Democrats last week at fund-raising events around the country, and Democrats responded in kind.

"We need to concentrate on reducing partisan comments," said House Speaker Thomas S. Foley, D-Wash., adding that the peace pact applied to political campaign committees as well as individuals.

At a midday speech to a GOP audience in Philadelphia, Bush said he saluted "those Democrats in the leadership who are now working with me" in reaching a budget agreement.

However, he renewed his appeal for a constitutional amendment to balance the budget, saying it would end what he called an "budget charade" and "fiscal follies" in Congress.



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