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Copyright 1999 Newsday, Inc.  
Newsday (New York, NY)

November 24, 1999, Wednesday ALL EDITIONS

SECTION: NEWS; Page A06

LENGTH: 1275 words

HEADLINE: REPUBLICAN SHIFT ON BUDGET / EASING OF DISCIPLINE AFTER CONGRESSIONAL TRIUMPH IN '95

BYLINE: By James S. Toedtman. WASHINGTON BUREAU CHIEF 


DATELINE: Washington

BODY:
By James S. Toedtman WASHINGTON BUREAU CHIEF Washington - The "Republican Revolution" to shrink the size of the federal government and return tax money and power to the people has come up a bit short.

Five years after recapturing Congress, declaring war on the federal government and vowing to shut down huge portions of a bloated bureaucracy, the Republican-controlled Congress finished work on the fiscal year 2000 budget that was balanced without a tax increase and without tapping the Social Security Trust Fund, both rallying points for Republicans.

But in the details of the new spending plan is the harsh reality that three departments and most of the 14 agencies and 283 spending programs targeted for extinction have avoided the hangman and in most cases actually grown. Some of the programs that were shut down by House Speaker Newt Gingrich and his followers in 1995 and 1996 have been revived this year. In short, the era of big government may be over, but the trophies ballyhooed with much fanfare during the raucous months of early 1995 are thriving. "It's a little hard to find the Republican Revolution right now," said Stan Collender, budget analyst for the Fleischman Hillard public relations firm. The Education, Commerce and Energy Departments, which were supposed to be closed down, have grown by 19.6 percent. Agencies such as the Corporation for Public Broadcasting, the Economic Development Administration and the Legal Services Corp. that were ideological and political targets of the Republicans have stayed in business.

A host of other programs, including Clinton's AmeriCorps national service program, heating assistance funds for low-income seniors, the earned income-tax credit for poor workers, Head Start, job training for those who lost their jobs because of rising imports, the commissions for the arts and humanities and summer jobs programs have also weathered the onslaught.

Goals 2000, Clinton's signature educational initiative, may be the only administration initiative scrapped when its funding expires next year. It has grown from $ 230 million to $ 490 million since 1995, but it was sacrificed to achieve another White House proposal - hiring 100,000 new teachers.

There are many reasons for the retreat. Rep. John Kasich (R-Ohio), the hyperkinetic chairman of the House Budget Committee and cheerleader for the revolutionaries, laments the turnaround and says that budget surpluses have tempered the passion of the budget hawks. "We came here with a moral commitment to balance the budget. Once we got it to balance, people began saying, 'Why do we need to worry about making government smaller?' " he said.

Others cite a retreat by Republican troops after the miscalculations by their leaders, particularly the government shutdown four years ago. "They thought that was a winner," said John Berthoud, president of the National Taxpayers Union, an antitax interest group. "And when it wasn't, they overread the results." Rep. Michael Forbes (D-Quogue), who was elected in 1994 with the help of Gingrich's Contract With America rhetoric and its pledge to downsize government, but has now switched parties, says Republican leaders overplayed their hand. "There has been a slowing of spending, and that's a good thing. But they overreached. Their intolerance and mean-spirited approach has left people betrayed by their leaders. The Republicans went after some programs like the earned income-tax credit, an incentive for the poor to work, for example. In the end they went too far and eventually were undermined by their lack of public support." Since 1995, Congress has shut down about 300 programs at a savings of $ 3 billion, barely measurable in a $ 1.8-trillion annual budget. Those that survived continue to grow. During the negotiations for the 2000 budget, the retreat of the budget cutters was frequently apparent. In 1995, Congress embraced free markets and passed the Freedom to Farm bill, which phased out federal subsidies. This year, Congress included $ 9 billion in emergency aid to farmers, and a tax incentive for converting chicken waste into energy is still being debated. In 1995, the transportation appropriations bill included no highway demonstration projects, a traditional vehicle for pork barrel spending.

This year's transportation bill had more than 200 local projects.

Budget discipline has also eased. In 1995, any new spending had to be offset by comparable cuts. "They were demanding cuts in spending to offset the cost of emergency flooding in North Dakota," said Collender.

"Today, they're declaring emergencies for programs that have been ongoing for 200 years," a reference to the 2000 Census, whose $ 4.5 billion cost was funded as an "emergency" to evade spending caps set in 1997. "It's the biggest collection of gimmicks we've ever seen," he said.

Killing programs remains difficult. This year, House Republicans tried to close 24 more, including the Selective Service System, which once administered the draft and now spends $ 25 million a year to keep records. But the Senate blocked the shutdown.

At the same time, Congress resuscitated a program killed in 1996, the Stateside Land and Water Conservation Fund, a popular 34-year-old program used by states to buy and maintain recreation areas. It has been used aggressively by New York State to purchase and fix an estimated 1,100 beaches and recreation areas in New York at a total cost of $ 500 million. Although the program funded projects including the Wollman Ice Skating Rink in Central Park, the Crotona Park swimming pool in the Bronx, Robert Moses State Park improvements, Napeague Dunes acquisition and Belmont State Park upkeep, no one argued when the program was terminated in 1996.

That changed this spring when the nation's governors and mayors appealed to Congress. Gov. George Pataki wrote Senate and House members, an appeal echoed in a letter to the state congressional delegation from Parks Commissioner Bernadette Castro and Department of Environmental Conservation Commissioner John Cahill. Citing "an outpouring of interest" from the "friends of parks and open spaces," they called on Congress to reopen the pipeline.

With the popularity of local parks projects, and a tough election ahead next year, pragmatism trumped ideology as 55 Republicans, including House leaders Tom DeLay and Dick Armey of Texas as well as Rep. Peter King of Seaford, joined 157 Democrats to secure at least $ 20 million in the final Interior Department appropriation.

Sen. John McCain (R-Ariz.), who itemized $ 13 billion in pork barrel projects sprinkled throughout the budget, called the $ 20 million "far below what is necessary" for the program. "Unfortunately," he said, "it's penalized due to other low-priority and special-interest spending." "The triumphalism of 1994 is long gone," said Heritage Foundation's congressional expert Marshall Wittman. "It's been replaced by survivalism." Of the Republican strategists, Kasich's change from zealot to philosopher reflects the changed congressional dynamic. Five years ago he led the Republican cheers as the House passed its ambitious budget plan. "Our vision is to take the power and the money and control and influence from people in this city and give it back to the men and women in every city, town and village in America." Several weeks ago, a more reflective Kasich, who is retiring from Congress at age 47, talked of context. "We sat down five years ago, and we plotted a road map. We have made some real progress. Have we made all the progress that I would like? Of course not. But we are moving forward."

GRAPHIC: AP File Photo - Rep. John Kasich (R-Ohio) laments the GOP turnaround. Chart - Funding Picture (NOT IN TEXT DATABASE)

LOAD-DATE: November 24, 1999




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