House delays vote on budget

WASHINGTON -- The House vote on a $1.97 trillion budget outline was delayed early Friday after it was found that some pages were missing from the House-Senate compromise, according to Congress members.

The congressional leadership had hoped to get the package, called a budget resolution, through the House and Senate Thursday, but abandoned efforts to approve the measure shortly before 2 a.m. Friday. Debate will continue Tuesday.

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The House has gone into late-night session to pass the non-binding federal budget resolution, as both Democrats and Republicans offered different interpretations of the deal.

The Senate isn't expected to vote until next week.

The White House pointed to the anticipated passage as a victory in its dealings with Congress and Democrats.

Senate Minority Leader Tom Daschle, D-South Dakota, said Wednesday that President Bush "was dragged kicking and screaming" into the budget deal. But Mitch Daniels, director of the Office of Management and Budget, rejected Daschle's claim.

"The president wasn't dragged anywhere," Daniels said. "In reality, I think, it was his opposition which was dragged upstairs one step at a time from zero to this number that was very close to what the president proposed."

The spending package calls for a $1.35 trillion federal income tax cut over 11 years and a 4.9 percent increase in discretionary spending in the 2002 budget. Because it is non-binding, the budget resolution does not go to the president for his signature.

Bush originally wanted $1.6 trillion in tax cuts and a 4 percent spending cap, but was forced into a compromise by key moderate Democrats who said the tax cut was too high and spending was too low to adequately fund government programs.

"We think the 4.9 percent increase is a good number," Daniels said. "It's a big increase, although it does begin to moderate the runaway binge levels of spending growth that have characterized the last few years."

Rep. Harold Ford, D-Tennessee, said he wasn't comfortable with the budget deal.

"There's still some of us, including me, concerned a little bit about whether or not this will provide the discipline needed to continue to pay down the debt, provide the resources for medical research and veterans' affairs as well as education and health care and provide the big tax cut," Ford said. "This is just the first step."

Ford said federal spending needs to increase by 7 percent to 8 percent to keep up with the growing needs of children as well as seniors.

The Senate Finance Committee must next craft the details of the proposed $1.35 trillion income tax cut.

The budget resolution instructs the committee to complete its work on that tax bill by May 18. Senate Republican leaders want a full Senate vote by Memorial Day.

Key components of the budget deal include:

• An 11-year $1.35 trillion federal income tax cut, $100 billion of which will be used as an economic "stimulus" during the next two years.

• A cap on spending at $667 billion for fiscal 2002, a 4.9 percent increase from this year's $635 billion.

• A call for $2.3 trillion in debt reduction by 2011.

• A $300 billion set-aside for Medicare reform and a prescription drug benefit.

• $80 billion in agriculture funding, $28 billion in health insurance for the uninsured and $44.5 billion in education funding.

CNN Congressional Correspondent Kate Snow contributed to this report.

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The White House
 • U.S. President George W. Bush
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U.S. Congressional Budget Office

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