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 rel "iIkreal musigreatpric.s W'Ho- WHlAT - WHEN- WHERE- HOW m our9IORfANewl out '4 scwme 4iaocd i v~m 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 Effective with Registration for Winter Term 1996, students viser on U.S. servicemen missin 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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