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

DATE: SATURDAY, January 8, 1994                   TAG: 9401080160
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A-1   EDITION: METRO 
SOURCE: Associated Press
DATELINE: WASHINGTON                                LENGTH: Medium

HOUSING FUND CUT SOUGHT

President Clinton will propose cutting more than $2 billion for public housing next year - particularly slashing aid to the elderly, congressional sources said Friday.

At the same time, the administration will call for boosting spending for the homeless by nearly 50 percent and nearly doubling a rent subsidy program for the poor, said congressional aides and lobbyists.

The cuts for public housing construction and renovation are certain to create an uproar. "I'm all for increasing funds for the homeless, but if you're really going to address homelessness, you do it through major increases in the stock of assisted housing," said Cushing Dolbeare, president of the National Low-Income Housing Coalition, an advocacy group.

Clinton is completing his $1.5 trillion budget for the fiscal year that begins Oct. 1. And though he doesn't plan to unveil it until Feb. 7, details are emerging. Aides and lobbyists said other proposals include:

Increases of nearly 3 percent for the departments of Education and Health and Human Services, although some programs within each agency are cut. The huge Chapter I program that provides extra teachers for poor school districts would grow from $6.9 billion this year to $7.6 billion in 1995.

Shrinking the National Aeronautics and Space Administration's budget from $14.5 billion this year to $14.3 billion next year.

Increasing the budget for the National Science Foundation, which finances many of the country's research scientists, to $3.2 billion from $3 billion.

Spending caps included in last year's deficit-reduction package require that total spending for all defense, foreign aid and domestic programs - excluding benefit programs like Medicare - remain at this year's levels. No extra money is allowed to cover the costs of inflation. For every increase Clinton wants, he must cut an equal amount from other programs.

The sources said that among housing programs, Clinton will propose:

Slashing the $4.6 billion spent this year to acquire, build and modernize public housing units to about $2.7 billion.

Shrinking the $1.1 billion given to nonprofit groups this year to provide housing for the elderly to less than $200 million.

Cutting the Home Investment Partnerships to $1 billion from $1.25 billion. The money goes to state and local governments for construction, improvements and rental assistance.

by CNB