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

DATE: THURSDAY, November 18, 1993                   TAG: 9311180036
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A-8   EDITION: METRO 
SOURCE: Associated Press
DATELINE: WASHINGTON                                LENGTH: Short

BUDGET OFFICE SAYS SAVINGS NOT SO GREAT

Billions in savings from the White House government reform plan? Not likely, says the Congressional Budget Office.

The office estimated savings of $305 million over the next five years from Vice President Al Gore's "reinventing government" plan, way off White House predictions of $5.9 billion over five years and $9.1 billion over six years.

Leon Panetta, director of the White House's Office of Management and Budget said, "We believe our estimates are solid and we stand by them."

A big difference was over the cost of a plan for buyouts of up to $25,000 for employees who agree to resign or retire early as part of an effort to reduce the government work force by 252,000.

The Congressional Budget Office put retirement benefit costs at $519 million and estimated that incentive payments and other work force restructuring costs would be nearly $2 billion.

Panetta, however, said the ultimate cost would be zero because the plan "would force the agencies to fit those payments under the very tight discretionary spending caps and reduce other spending."

Panetta said the exact amount saved under the reforms is not nearly as important as the more efficient government that will result.

by CNB