DATE: Friday, June 6, 1997                  TAG: 9706060681

SECTION: FRONT                   PAGE: A7   EDITION: FINAL 

SOURCE: THE WASHINGTON POST 

DATELINE: WASHINGTON                        LENGTH:   45 lines

PLAN TO BALANCE BUDGET, CUT TAXES WINS CONGRESS' OK

Congress gave final approval Thursday to a five-year balanced budget and tax cut plan, even as the much-heralded compromise between GOP leaders and President Clinton began to fray at the edges.

The complex blueprint - the product of five months of intense bargaining and a flurry of last-minute haggling - would eliminate the deficit by 2002, stabilize the financially troubled Medicare system by cutting spending $115 billion and provide $85 billion of net tax cuts over five years.

It was approved by the House, 327 to 97. To pass it, 129 Democrats joined with 198 Republicans. Later, the Senate adopted the plan, 76 to 22, with 40 Republicans and 36 Democrats voting for it.

``I think we should celebrate today an agreement that will in fact bring about a balanced budget in a real way with tax cuts,'' said House Budget Committee Chairman John R. Kasich, R-Ohio. ``And I think this is the first step towards beginning to deal significantly with entitlement programs.''

But instead of celebrating, many Democrats charged that House GOP leaders had reneged on their commitment during the budget talks to alter last year's welfare reform legislation to restore aid for certain legal immigrants.

``The Republican majority is now offering the House what can only be called a bait-and-switch deal,'' said Rep. Martin Frost, D-Texas.

The administration also denounced another House GOP proposal that would nullify a recent White House ruling that state governments must pay the minimum wage to welfare recipients participating in workfare programs.

During a meeting of a Ways and Means welfare subcommittee Thursday, the Republican majority blocked Democratic efforts to guarantee welfare recipients the minimum wage and appeared poised to push through their immigrant provisions. ILLUSTRATION: HOW THEY VOTED

A ``yes'' vote is a vote to pass the bill.

Herbert Bateman, R-Va. Yes

Owen B. Pickett, D-Va. Yes

Robert C. Scott, D-Va. No

Norman Sisisky, D-Va. Yes

Eva Clayton, D-N.C. Yes

Walter Jones Jr., R-N.C. Yes

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