GOP Wants More Cuts

Budget negotiations hit a major bump Wednesday, as Republican budget writers insisted they need larger cuts in discretionary spending than the Clinton administration is willing to provide.

Sources familiar with the three-hour discussion on discretionary spending said Republicans, particularly House Budget Chairman John Kasich, R-Ohio, argued that House Republicans will not pass a budget without larger cuts in programs funded through appropriations bills. Following the meeting, Kasich told reporters, "If we reach agreement at the end of the day, no one is going to be happy with what we do in discretionary spending."

Administration officials continued to emphasize education, job training and the environment. "The president ran on those priorities and included them in the budget," OMB Director Raines told reporters after the meeting, "We had a good, frank discussion about one of the toughest areas we have to tackle."

Discretionary spending levels haunted congressional leaders and the White House throughout the 104th Congress, leading to the passage of a series of continuing resolutions after they could not reach agreement on a variety of appropriations issues.

The negotiators at Wednesday's session, including White House officials, budget writers and leaders of the House and Senate Appropriations panels, came to no agreement on discretionary spending, and Senate Budget Chairman Pete Domenici, R-N.M., said the issue was too large for one meeting.

"I believe [discretionary spending] will have to wait for another day," Domenici said. He added that appropriators, who had little comment after the meeting, are frustrated with the process. He said the administration must identify its high priority spending programs and Republicans will do the same. "If we look a little bit down, it's because of the difficulty of the process," Domenici said. "We cannot say a lot was accomplished today." Added Kasich, "This area is very difficult."

Senate Appropriations Chairman Ted Stevens, R-Alaska, said he told the budget writers that the spending committees need a budget on which to base their fiscal 1998 spending bills. House Appropriations Chairman Robert Livingston, R-La., recently said appropriators need discretionary spending levels by May 15.

Senate Budget ranking member Frank Lautenberg, D-N.J., said the gulf between the two sides widened during the discussion, which he termed "eye-opening."

Added Lautenberg: "Today was the cold shower day ... The Republicans said discretionary spending is too high and the Republicans said entitlement spending is too high. It made each of us more aware of the magnitude of the job."

Budget talks are slated to continue this afternoon, with a discussion of tax issues. Domenici said the discussions will continue on Friday and Monday.