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Tuesday, July 29, 1997

Stenholm says balanced-budget deal is what he's been waiting for

By WILLIAM GARLAND Harte-Hanks Washington Bureau

WASHINGTON - Rep. Charles Stenholm, D-Abilene, says the balanced-budget deal reached late Monday between congressional Republicans and the White House will give him an opportunity he's been waiting for.

"It's going to give us a chance to vote for a balanced budget by 2002," he said after the agreement was announced. "I've waited a long time to vote (for a measure) that projects actually to balance the budget at a time certain."

While waiting to see some of the details, he said he did not expect any major drawbacks in the fine print. "I don't know of any reason not to vote for it."

And when the final version is released sometime this week, he said the influence of the so-called Blue Dog Democrats, including himself and other conservative Democrats, would be evident. "I think you're going to see paw prints all over the final compromise.

"It's a good compromise in which there are wins for both sides and hopefully the biggest winners are going to be the American people," said Stenholm, a long-time advocate of a constitutional amendment to balance the federal budget.

"I'm glad to see that it looks like we're going to have a targeted capital gains reduction, (as well as) estate tax relief," he said. "It's my understanding these will be very targeted and that's movement in the right direction."

He said he also was pleased with a compromise, pushed hard by President Clinton, that will allow the $500 per child tax credit to go to the poorest taxpayers. He said he did not believe it would amount to a refund for the poorest taxpayers whose total tax liability might be less than $500.

"It will be a credit where they are paying taxes," he said. "That's the way it's been explained to me."

On another issue important for Texas, he said there would be a favorable compromise on the privatization of the delivery of welfare benefits, supported by Texas officials in Austin and Washington but earlier blocked by the White House.

Ed Lorenzen, Stenholm's aide on budget issues, said the compromise would allow Lockheed Martin Corp. and EDS to be among bidders for providing welfare services in Texas.

"The compromise we were able to reach is to allow privatization to be done as a demonstration project where Texas can try contracting out ... in half of the area of the state," Lorenzen said.

But he said the definition of half the state would be based on population rather than geographical area. The private contractors could operate "in as many counties as they wanted so long as it constituted less than half the population of the state.

"From our perspective, this is pretty much perfect because we've always wanted to test it out," said Lorenzen. "It could save a lot of money and make the system a lot more efficient."

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