By
The Associated Press
WASHINGTON - The Senate embarrassed Republican leaders yesterday and rejected a bill providing nearly $33 billion for the Treasury and Congress' own operations. The vote set back GOP plans to begin quickly resolving lingering budget fights with President Clinton.
The 69-28 vote came amid a stepped-up effort by GOP leaders to complete the 11 remaining spending bills for fiscal 2001, which begins Oct. 1, so lawmakers can return to their districts for the upcoming congressional and presidential elections. Only two bills - both covering military programs - have been signed, and most of the others are now under negotiations between congressional budget writers and the White House.
The administration had complained that the Treasury measure failed to sufficiently finance the Internal Revenue Service and counterterrorism programs. White House budget director Jack Lew and other administration officials had repeatedly labeled the measure "unacceptable," but had hinted that Clinton might sign it if the extra money was provided in other bills.
Further adding to the discomfort of some lawmakers, the bill would clear the way for members of Congress to receive a $3,800 pay raise in January, a 2.7 percent increase that would put their salaries at $145,100.
And it would also eliminate a scheduled increase of roughly $700 annually over the next two years that lawmakers were due to make in contributions for their own pensions.
In one indication of the bill's political sensitivity, many lawmakers who initially voted for the measure changed their votes to "no" after it became apparent that the bill would be defeated.
Senate approval would have sent the measure to the White House. The House approved it last Thursday by a narrow 212-209 margin.
The measure was actually a combination of two spending bills, combined by GOP letters in hopes of streamlining the budget process. One contained $30.4 billion for the Treasury Department and smaller agencies, the other $2.5 billion for Congress' own operations.
The measure would also repeal the 3 percent federal tax on telephone service. Though that move is popular with lawmakers of both parties, Democrats complained that with Republicans saying they will limit the amount of money for end-of-session tax cuts and spending increases, decisions about overall tax cuts and spending should be made first.
The bill provided $8.6 billion for the IRS, about $300 million less than Clinton wants.
Meanwhile, the two sides were hoping to narrow differences over another measure financing the Interior Department and cultural programs.
Participants speaking on condition of anonymity said the proposal would provide about $500 million less than the $970 million Clinton wants for purchasing new federal, state and local park lands. The measure would also provide $1.75 billion for battling forest fires, said Sen. Slade Gorton, R-Wash., an author of the bill, compared to Clinton's $1.6 billion request.
The bill would also include language the administration has opposed blocking proposed restrictions on the use of land in the Northwest's Columbia River basin, and exempting New Hampshire's White Mountains from policies aimed at limiting logging.
