WASHINGTON (AllPolitics, October 14) -- Negotiators from the White House and the Republican-led Congress believe they have reached a deal on a new draft budget. An announcement was possible Wednesday night.

Sources say President Clinton has signed off on the agreement, which was being passed around among Republican committee chairmen and ranking Democrats for their approval.

Any final budget agreement must be put in writing, and a formal vote isn't expected in Congress until Friday.

Earlier Wednesday, sources from both sides indicated they had the "framework" in place for an agreement. But just in case, Congress passed a new stopgap measure to keep the government operating until midnight Friday.

Such a spending measure is necessary, because the federal government's 1999 fiscal year began October 1. An earlier temporary spending bill expires at midnight Wednesday.

The upcoming November elections both helped and hurt negotiations on the $500 billion spending bill.

Lawmakers up for re-election are anxious to wrap up a deal so they can hit the campaign trail. But both parties dug in their heels on issues that could be voter-sensitive, such as funding for education, family planning and the 2000 U.S. Census.

The main sticking point has been the Clinton administration's plan to use $1.1 billion to hire 100,000 more elementary school teachers.

Republicans have said the proposal smacks of more federal bureaucracy, and, while agreeing to the money figure, want to give local schools control over the money, particularly to hire special education teachers.

According to several sources, a compromise was being drafted under which the White House would agree to allow special education programs to be covered by the new teacher initiative, a major Republican demand.

In return, Republicans were prepared to set aside a specific amount of money for teacher hiring, something the GOP had previously resisted on grounds Washington should not dictate local school spending.

The administration also was seeking money for school construction, another area the Republicans say should be left to local school districts. Sources said Republicans were not budging on that dispute.

White House officials also told congressional Democrats they believed they had made major progress in resolving disputes on such issues as funding for the International Monetary Fund, agriculture spending and contraception policy.

Republicans have agreed to require federal employees' health care plans to cover prescription contraceptives but are demanding a "moral objection" clause. Democrats have agreed to a religious exemption but said the moral objection clause would be a loophole making it easy for providers to get around the requirement.

Correspondent John King contributed to this report.

Wednesday, October 14, 1998

• White House, Congress near $500 billion budget agreement
• White House-Congress lawyers to confer on impeachment inquiry
• Monica Lewinsky moves out of Watergate
• Lott Pessimistic on Tax Bill
• Court Mulls St. Ballot Initiatives
• Jones wants to use Starr referral

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