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

DATE: SATURDAY, March 12, 1994                   TAG: 9403120099
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A-1   EDITION: METRO 
SOURCE: From The Washington Post and The Associated Press
DATELINE: WASHINGTON                                LENGTH: Medium

HOUSE PASSES BUDGET

The House Friday voted 223-175 to approve the outlines of President Clinton's $1.5 trillion budget for fiscal 1995 after rejecting a Republican alternative that would have cut more in spending and provided a $500-per-child tax credit for families making up to $200,000 a year.

All Virginia Democrats voted for the budget except Owen Pickett of Virginia Beach, who opposed it. All House Republicans opposed it.

The budget reflects Clinton's long-term economic and deficit-reduction plan approved last summer. Discretionary spending, the one-third of the budget Congress directly controls, would decline slightly for the first time in nearly three decades, and the deficit would drop from $228 billion to $176.1 billion, the lowest level since 1985.

Budget director Leon Panetta said House passage of the budget resolution, the first big step in this year's budget process, "keeps us on track for fulfilling the president's commitment to fiscal discipline, deficit reduction and economic growth."

Republicans sought to upstage the Democrats with a budget alternative that made good on Clinton's campaign pledge to give tax relief to the middle class and that included funds to begin implementing GOP proposals for welfare and health care reform.

Clinton abandoned his plan for a middle-class tax cut after the election. His budget proposal for the fiscal year beginning Oct. 1 does not reflect potential costs of his pending proposals for health care and welfare reform.

The spending plan would limit the Pentagon to $270.5 billion, $8.5 billion less than last year.

Democrats only faintly retouched the edges of the budget Clinton sent Congress last month. In the $1.5 trillion, they rearranged just a few billion.

Lawmakers approved $3.7 billion of the $4.1 billion Clinton sought for education, job-training, aid to the homeless and other programs. They also rescued from proposed cuts some of their favorite programs, such as $200 million for city buses and subways.

by CNB