April 12, 1999
Web posted at: 7:18 p.m. EDT (2318 GMT)

WASHINGTON (AllPolitics, April 12) -- House and Senate Republican congressional leaders ironed our their differences Monday on a $1.7 trillion federal budget for fiscal 2000 and hope to put the measure to a vote in Congress this week.

"We resolved everything," said Senate Budget Committee Chairman Pete Domenici (R-New Mexico).

The budget highlights the GOP's political message of tax cuts. Republicans say their spending plan includes $800 billion in tax cuts over the next decade while setting aside surplus funds for Social Security and heeding spending limits enacted two years ago.

The blueprint sets overall limits for spending and taxes for the fiscal year beginning October 1. It does not include details about what taxes would be cut and how to reduce spending to meet budget limits, leaving those for future legislation. It also does not require President Bill Clinton's signature.

The president has proposed smaller tax reductions and has said the Republican plan does not set aside enough money to bolster Medicare for the looming retirement of baby boomers.

There were few differences between the two GOP-written budgets, which were approved separately last month by both chambers.

The compromise reached Monday delays until later this year a decision on what to do with any additional federal surpluses that are estimated this summer. The preferred option of many conservatives is to set aside the surpluses for a bigger tax cut, but others want the money be used to further reduce the national debt.

Domenici and others say an updated surplus estimate is likely to show little change from current projections, which would mean the tax cut would not get much larger.

Monday's agreement makes it possible Congress will be able to meet the usually ignored April 15 deadline for passing its budget, following through on GOP promises to do their work on time this year.

Disputes between House and Senate Republicans over tax cuts prevented them last year from approving a budget for the first time since the current budget process began in 1975.

The Associated Press contributed to this report.

Monday, April 12, 1999

• Clinton found in civil contempt for Jones testimony
• House, Senate GOP leaders reach budget compromise
• McDougal not guilty on one count; mistrial declared on other two charges
• The trials and tribulations of Susan McDougal
• Congress returns to talk Kosovo
• Capitol statues may be replaced
• Congress approves disaster aid bill
• As recess ends, Kosovo could overwhelm GOP tax-cut message
• Gore schedules 'house parties' to soften VIP image
• Blockbuster congressional hearings a thing of the past?
• With eyes on Giuliani, Lazio is the other Republican

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