6B
Tuesday, February 7, 1995
UNIVERSITY DAILY KANSAN
Clinton's budget revealed; GOP wants to cut more
The Associated Press
WASHINGTON — President Bill Clinton unveiled a $1.61 trillion budget for 1996 yesterday that mixes mild tax relief and spending reductions with a sharp message to Republicans commanding Congress: You want deeper cuts, go find them.
GOP leaders said they eventually would do just that to finance their hugely expensive promises of even bigger tax reductions while balancing the budget.
"Without the president's leadership I don't know where we are going," taunted Senate Budget Committee Chairman Pete Domenici, R-N.M. "You will not get a balanced budget without the leadership of the president."
Clinton heeded the popular mood by emphasizing downsizing and efficiency. There is no general tax increase; the Energy Department and four other agencies are shrunk, and more than 400 mostly small programs are slashed or combined.
The budget's centerpiece is $144 billion in savings for the next five years, when the government will spend nearly $3 trillion.
Clinton would use $63 billion of the reductions to lower taxes for millions of middle-income families and savers, and the remaining $81 billion to steady annual deficits at about the $200 billion level through the decade.
Yet the savings yielded are but an anthill compared with the task Congress' new Republican chieftains have set for themselves. Their proposed tax cuts would cost nearly $200 billion, and their pledge to balance the budget by the year 2002 would take another $1.2 trillion in savings, according to the nonpartisan Congressional Budget Office.
To trim the budget, Clinton proposed cutting military spending, selling federal assets ranging from excess uranium to power-producing dams, and eliminating another 36,000 government jobs. That would bring to 173,000 the number of jobs in the government erased since Vice President Al Gore began his effort to reinvent government in 1993.
As always, the amount the government spends simply to pay interest on the money it borrows continues to surge. It will cost taxpayers $257 billion next year — more than that spent on any other individual piece of the government except Social Security and defense.
But more telling is what Clinton's budget does not do.
As promised, his axe misses Social Security, the government's biggest and most politically untouchable program. He takes only token savings from Medicare and Medicaid, two of the largest, fastest-growing programs, and a horde of other benefit programs.
That leaves unreined virtually the entire half of the federal budget most responsible for its growth in recent years; benefit programs that go automatically to people who qualify. It was this omission that most riled Republicans, who say they will find big savings in these huge but popular programs.
Clinton's outline also omitted the potential costs of reforming the nation's welfare system, sidestepping what is likely to be a big fight this year with Congress.
Ecuador asks for support
The Associated Press
QUITO, Ecuador — Ecuador's president shuttled across South America yesterday in a desperate bid to halt the winds of war blowing through Ecuador and Peru.
With the breakdown of peace talks in Rio de Janeiro on Sunday, concern was growing that the two-week-old border conflict over a remote jungle region might escalate.
President Alberto Fujimori of Peru visited his troops Sunday and vowed to enforce Peru's claim to an unmarked border area 220 miles southeast of Quito and 600 miles north of Lima, Peru's capital.
Ecuadorean President Sixto Duran-Ballen was meeting with the presidents of Brazil, Argentina and Chile to present his nation's case and seek support for a peaceful solution.
Fujimori said his forces would remove all the invaders from Peruvian territory if diplomacy failed.
Ecuador said yesterday that Peruviian warplanes had renewed attacks on Condor Mirador, an Ecuadorean military lookout 10 miles inside the disputed border.
A communique also said Ecuador's navy had intensified its sea patrols. Peru last week moved warships and submarines close to Ecuador's coast.
Talks with the Rio Protocol group in Brazil ended Sunday without agreement. Its four members — Brazil, Argentina, Chile and the United States — guaranteed the 1942 accord that delineated the disputed Ecuador-Peru border.
Duran-Ballen flew to Brasília on Sunday to meet with President Fernando Henrique Cardoso. He met in
Buenos Aires with President Carlos Menem of Argentina and was to meet later yesterday with President Eduardo Frei of Chile.
Peruvian Foreign Minister Efrain Goldenberg said international treaties recognize his country's right to the disputed area. He warned that Peru had the means to defend its national sovereignty.
Ecuador and Peru both reported fighting Sunday at the headwaters of the Cenepa River, where the two countries have been battling on and off since Jan. 26 — the latest conflict in a dispute that dates to 1941.
The attacks have been concentrated in a triangular 70-square-mile area in rugged jungle mountains called the Cordillera del Condor, on the eastern edge of the Andes. The area is said to contain gold, uranium and other minerals.
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