Nation/World The Salina Journal Friday, January 10,1986 PageS Reagan frustrated by budget process Post office rescinds newspaper rates WASHINGTON (AP) - President Reagan, who's been frustrated by the budget process since he came to Washington five years ago, will ask Congress in his State of the Union address to put its economic house in order, administration officials said Thursday. The officials said Reagan will I use the Jan. 28 speech to present I his vision not just for 1986 but for the closing years of the century. Completing work on an overhaul of the income tax system, u which the president proposed in $<, last year's State of the Union address, will be a top priority, ReaMn the sources said. neagan But they said Reagan also wants to tell Congress that the complex budget-writing process it adopted more than a decade ago must be redrawn if the government is to keep its own promise of balancing the budget by 1991. One administration official described the current process as "a shambles" and said Reagan is tired of trying to work within its constraints. The president has tried unsuccessfully to win approval of a constitutional amendment to prohibit the government from spending more than it takes in. He also wants a measure that would allow the president to veto separate spending items in appropriations bills without having to veto the entire bill. The source said the White House budget office and top Reagan aides are searching for new ideas for overhauling the system. Currently, the president submits a plan, Congress rewrites its general guidelines and committees then draft authorization and appropriations bills for programs that may not fall within the guidelines. Not all the appropriations bills get through both houses before the end of the fiscal year or even before the close of the session. That forces the adoption of emergency, catchall spending measures to keep the departments and agencies running until the next year. But changing the system is a particularly delicate issue, one source noted, because the congressional budget process is regarded as a legislative matter. Lawmakers may resent White House interference in what they consider an internal affair. The source noted that President Nixon kept out of the congressional debates on the Budget Reform Act, in which Congress adopted a bill designed to create a systematic approach to federal spending. But one senior official says Reagan is inclined to raise the issue. "The budget process is in acute need of change," the official said. "For all the energy and time and intelligence of a lot of good people, the result is $200 billion deficits. You have to change the process if you're going to change the deficits." WASHINGTON (AP) - After discovering a miscalculation, the Postal Service on Thursday rescinded a just-approved Jan. 18 postage rate increases for certain newspapers and nonprofit organizations. A resolution approved in a telephone vote by the postal board said some second-class newspaper rates approved Tuesday "were technically incorrect." David F. Harris, board secretary, explained that a calculation error would have resulted in charging newspapers about $5 million more than was necessary. U.S. might sell loans to reach deficit goals Weinberger WASHINGTON (AP) — The Reagan administration, straining to meet deficit reduction targets, wants to put some government loans — good ones as well as bad ones — on the auction block, U.S. officials said Thursday. Government-held loans for urban and farm housing, for small businesses and for students from low- income families are among those being considered for sale to the highest bidder, the officials said. But one senior agency executive said some of the loans the administration seeks to market are "so bad Weinberger says" Soviets violating SALT accord WASHINGTON (AP) — Defense Secretary Caspar W. Weinberger said Thursday the Soviet Union had deployed an additional 18 intercontinental ballistic missiles in "clear violation" of the 1979 Strategic Arms Limitation Treaty. He said in a speech that only a sustained American weapons buildup would persuade the Soviets to reach an agreement with the United States reducing nuclear weapons. "Peace through strength is not a motto, it's a fact of life," Weinberger said. He was defending the administration's defense spending program against congressional efforts to impose restraints in order to reduce budget deficits. In the past month, he said, the Soviet Union had increased from 27 to 45 the number of mobile SS-25 strategic missiles that were deployed and operational. Weinberger said the Soviet action was fresh evidence of the need for an arms control agreement. However, he criticized the Carter administration for concluding the 1979 treaty, saying it had accepted' the "Soviet approach" and permitted the Kremlin to embark on virtually the same weapons buildup it would have undertaken without the accord. The fourth round of U.S.-Soviet negotiations in Geneva is due to resume next Thursday. The outlook for progress is clouded by disagreement over the U.S. "Star Wars" anti-missile research program. Britain's defense secretary resigns By The New York Times LONDON — Defense Secretary Michael Heseltine, long considered a likely contender for leadership of the Conservative Party, resigned Thursday in a confrontation with Prime Minister Margaret Thatcher at a Cabinet meeting and stalked out of her official residence at 10 Downing Street. The possibility that Heseltine might have to resign had been widely recognized for several weeks as he staked his political future on the outcome of a battle between two multinational consortiums over Britain's only helicopter manufacturer, an ailing company called Westtand. But his walkout, which was regarded as a stunning departure from the stately norms of British politics, posed a major challenge to Thatcher's policies and domineering leadership style. "There was no way in honor in which I could remain within the Cabinet," he said at a news conference. He charged Thatcher had stifled discussion in the Cabinet and undermined the principle of collective responsibility. we'll be lucky if we get 10 cents on the dollar." Former budget director David Stockman scoffed at the notion of selling off part the nation's $250 billion loan portfolio when it was proposed last spring by Sens. Daniel Patrick Moynihan, D-N.Y., and Frank Lautenberg, D-N.J. But budget chief James C. Miller III has told agency heads to examine their loan programs to see which loans might be salable. Miller is under the gun to come up with at least $50 billion in proposed deficit-reduction measures as he puts the finishing touches on the president's fiscal 1987 budget. It is expected to be submitted to Congress on Feb. 3. The cuts are required under the new federal budget-balancing law. A three-judge federal panel was scheduled Friday to hear arguments in a lawsuit brought by 12 members of Congress challenging the constitutionality of that act. An administrator! budget official said the administration's 1987 budget will propose that a modest amount of federally held loans be sold. That might produce $1 billion or $2 billion in added revenues for 1987. Among the "paper" that might be sold off would be "several hundred million dollars" in loans held by the Small Business Administration, the Bonneville Power Administration and by other agencies the ad- minstration is proposing to eliminate, said the official. Loans for rural housing might also be candidates, he said. One loan portfolio that won't be up for sale is the $75 billion in outstanding guaranteed student loans, according to Bruce Carnes, deputy under secretary of education. & Saturday SPECIAL IPEN TO CLOSE CHOICE Kansas Your Choice FREE Refill* On All Drinks , IIIKMU • « izzlin. Try Ui For Sinlc* I Quality At III B«tt Ord*n To Qo Awllibl* Hours: 1 0:30 to 1 0 Sun. thru Thurs 1 0:30 to 1 1 Friday and Saturday 1708 W. Crawford can new reach these TWA cities at the following numbers. $79* New Orleans $99* Atlanta Ft. Lauderdale Miami Orlando Seattle Tampa/ St. Petersburg Introducing TWVs incredible new Getaway'fares. As you can see, they're some very low numbers. 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