February 8, 1996
Web posted at: 2:10 p.m EST
From Senior Washington Correspondent Charles Bierbauer
WASHINGTON (CNN) -- A Congressional Budget Office review of President Clinton's sketchy 1997 budget proposal has made House Speaker Newt Gingrich enthusiastic about the chances for a balanced budget agreement.
Gingrich, in a conversation with CNN Wednesday night, said the CBO, ran some preliminary numbers on the budget outline Clinton submitted this week and found it would reduce the deficit substantially more than at first thought.
"He's in the box," Gingrich said, suggesting Clinton is in a range that would encourage GOP congressmen to return to the bargaining table.
Gingrich noted there's about a $900 billion diference between Clinton's budget last year and the one he presented this week.
"Now that is an immense shift," Gingrich said. "I think that frankly we have to come to grips with that in the Republican Party."
He added that at first glance the Clinton budget numbers may not have seemed so favorable because "sometimes you get too close to the details" of the negotiating process.
Speaking Thursday to the American Association of Retired Persons, he said, "I wouldn't be too surprised to see a (balanced budget) bill sometime maybe in March actually get signed. I can see the beginnings here of a real opportunity to put together a pretty good program."
The speaker also told CNN that he is very pleased that the nation's governors endorsed "block grants" in the Medicaid proposal they put forth Tuesday. He indicated that could be an important step toward breaking the budget deadlock.
Gingrich said the Republicans would continue to examine the developments during the coming week while the House is in recess. No talks with the White House are scheduled at this time.
The importance of breaking the deadlock on the budget was stressed Thursday by Alan Greenspan, Federal Reserve chairman, in a speech to a housing conference.
"Our economic prospects in coming years will hinge on our ability to increase national savings ... and making investments wisely," he said. "Making a serious commitment to balancing the budget in the foreseeable future is an essential first step."
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