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October 27, 1995 - Image 8

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Publication:
The Michigan Daily, 1995-10-27

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8 - The Michigan Daily -- Friday, October 27, 1995
SPENDING
Continued from Page 1
President Clinton has vowed to veto
the bill as written.
The war of words between the White
House and Republicans tured especially
bitter yesterday, when Clinton spokesman
Mike McCury joined Democrats in con-
tendingthat GOPleaders wanted Medicare
to die. "You know, that's probably what
th'd like to see happen to seniors, too, if w
you think about it," McCury said in a
sardonicmanner. Gingrich and Senate Ma-
jority Leader Bob Dole (R-Kan.) in ajoint
statement, called the comment "reprehen-
sible, divisive, un-Amerian," and urged
ClintontofireMcCury.
Even if eventual negotiations between
Congress and the White House produce
X changes in the bill, what remains will still
likely be a change in federal fiscal policy
because Clinton, for all hisvetothreats,has
signaled a willingness to accept key ele-a
ments of the Republican plan. He has en-
dorsedthegoalofbalancing thebudget and
even indicated he could accept the GOP's
seven-year timeline; he has accepted the
° deaofendingpoorAmericans'entitlement
owelfare;hehas aledforcutsintaxesand
he growth of Medicare, although he dis-
agrees with Republicans about the size and
focus of those reductions.:
NegotiationswithClintonarenotlikely
o begin in eamest until after House and
Senate Republicans iron out the differ-
encesbetweentheirversionsofthebill. In
many areas, such as farm policy and
welfare, the Senate's bill proposes less
drastic changes in current policy than the
House's. The Senate is expected to vote
on its bill today. During its second day of
debate yesterday, the Senate rejected a A rocking chair
series of Democratic amendments seek-
ing to ease cuts in social programs -
including one, rejected on a 53-46 vote, Continued from P
that would have scaled back proposed
cuts in Medicare to $89 billion. the University'
K The budget "reconciliation" bill be- "The constrain
fore the House and Senate is the center- which are a dir
piece of Republicans' effort to balance tinue to be ama
the budget, which until now has been we're going to
waged piecemeal through the 13 annual through the res
appropriations bills. However, spend- The Univer
ing cuts in those measures do not affect the direct lend
federal entitlements such as Medicare lows universiti
and welfare, which automatically pro- a servicer con
vide benefits for anyone who qualifies. ment of Educa
Entitlement spending canbe controlled teed loan prog
only through changes in the programs' the remainder
structure, and that is the heart of the University had
reconciliation bill. The bill incorpo- ers, guarantors
ratesseveralmeasuresalreadyapproved viding federal
by the House. The Senate

Republicans in
House dose to
'Contract' pledge.

by his side, House Minority Leader Richard Gephardt (D-Mo.) address

Page 1
s Washington lobbyist.
rts on direct lending,
ect student benefit, con-
jorproblem and amatter
continue to be fighting
t of the process."
sity strongly supports
ing program, which al-
es to work directly with
tracted by the Depart-
tion. With the guaran-
ram, which makes up
of student loans, the
J dealt with 1,400 lend-
s and servicers in pro-
aid.
earlier voted 51-48 to

table an amendment by Sens. Edward
Kennedy (D-Mass.) and Paul Simon
(D-Ill.) that would have continued the
direct loan program. The narrow vote
may force the majority-to compromise
with the White House on the direct loan
program either before or after a likely
presidential veto.
"It's still a major victory on those
other issues, but (Simon is) not satis-
fied," said David Carle, Simon's press
secretary. "(Senate Majority Leader
Bob) Dole went as far as he had to go
to get the more moderate Republicans
away from supporting the Kennedy-
Simon amendment."
The House passed a version of the
budget reconciliation bill yesterday
that would eliminate the direct loan
program completely.
Education Secretary Richard Riley

7N iMICHIGAN
RECORDS
phone: 663.5800
114 university (above goodtime chadeys), AA
mon.-lurs.:9:00-10:00 psundaysj
r.& sat.: 9:00a- F11:00p 1:0 -:0
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TMORROW 60

trl7

By Ronnie olassberg
Daily Staff Reporter
House Republicans pushed one step The idea of
closer yesterday to fulfilling many z d
pledges ofthe"Contract With America"zout
by passing the budget reconciliation l
bill. -
The legislation, which the Senate is a ri
expected to vote on today, includes - r
ralassive changes to Medicare, Medic- - ThomasBul
ail, welfare and student loans, along Associate Vice President
wh a $245 billion tax cut. Republicans Goverment Rel
saythebill would balance thebudgetby
202. removed from the bill yester day
*The Republicans are very ambitious Kingdon said that in comprons
in what they want to accomplish," po- with Clinton, the Republicans e
litial science Prof. John Kingdon said decrease Medicare cuts and pro
after the bill's passage. "I think the fewer tax cuts.
likely scenario is that the Republicans "The other scenario is that the
pass this version, PresidentClinton will publicans will make less sbstp
vetotandtheyenterintonegotiations." changes, send it back to Clir
TI House bill would eliminate the then he has to decide whether to
federal direct student loan program, again," Kingdon said.
which Clinton and the University Mark Fletcher, state chair ofthe(
strongly support. It would save $10.8 lege Republicans, said he is plea
billionfromstudentloanprogramsdur- with the bill's passage.
ing the next seven years. "This is on the level of the G
"It's awful," said Associate Vice Society, at least,"Fletcher said."It
Presidsit for Government Relations it's going to help the Republicasin
AP PHOT O Thomas Butts, the University's Wash- future. What we've done is bro
es a seniors group on Capitol Hill- ington obbbyist. "The idea of zeroing back responsibility to the federal
has recommended that the President out direct lending is just absurd." emient."
veto the bill if the direct loan cap re- The Senate yesterday approved an Dave Donoghue, co-chairofthe(
mains in the final bill. amendmentto its version ofthe bill that lege Democrats, said Republicans
"Unfortunately, these voices of rea- would save only $4.8 billion from the face opposition to their plan.
son were drowned out by the special student loan programs in the same pe- "I think that the Medicare changes
interests when it came to direct lend- riod. The plan caps direct loans at 20 going tobe a wake-up call fortheA
ing," Riley said. "The decision to place percent ofoal loans. can people," Donoghue said. "I thini
a 20-percent cap on direct lending will The House bill also would eliminate going to turn the tide, and people
force millions of students out ofa loan the six-month interest-free grace pe- going to see in 1996 the error of t
program that is light years better than riod followitng graduation, a provision ways."
the old way of doing things."
Sen. Carl Levin (D-Mich.) voted in
favor of the Kennedy-Simon amend-
ment, while Sen. Spencer Abraham The Washigtoin Post lady Hillary Rodham Clinton.
(R-Mich.) opposed it. WASHINIGTON - The Senate By unanimous voice vote, the c
"While it certainly can be viewed Whitewatercommitteevotedyesterday mittee agreed to demand docum
as a victory for Democrats, they should to issue 49 document subpoenas to and phone recordsathat it firstrequer
have included in their modification a White Housetlffices,government agen- in August. Committee Chairr
change to allow the direct program to cies,investigatiorsandavarietyofasso- Alfonse D'Amato (R-N.Y.) took
continue at full levels," said Kathleen ciates of Presient Clinton and first unusual step of calling for subpot
McShea, Levin's press secretary. because he said the White Hloue
deliberately delayed and "trifledw
the committee's efforts.
Decnocrats initially objected to
RIM P RTA N T subpoenas,'but finallywent alonga
getting committee lawyers to nar
REG ISTRATION the scope of those being sct to
White House and to the Clintons'
* INFRM~'AT8IONE onal lawyers
1811T O S*en aawyers said the last 1
Congressissuedasubpoenatothe W
House was in 1992, when it so
records from the national security
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will be receiving their registration appointment times taken prisoner in Vietnam. Before
electronically. All registered students with an address on the they said, the last congress ,-!
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November 6. Registration appointment start times will also during Watergate.
be available on Wolverine Access. Touch-Tone Registration In addition to records eekin
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