The House Budget Committee yesterday approved a set of tight congressional budget targets for fiscal 1980 designed to produce a deficit of $24.9 billion-$4.1 billion under the $29 billion limit President Carter proposed last January.
The action came after the panel, reversing a vote it took on Wednesday, agreed to restore the bulk of the money it cut previously to finance Carter's new urban initiatives program. The committee approved $500 million of the $788 million Carter requested on Wednesday.
The committee's recommendations are expected to spark fierce fights, both on the House floor and in conference with the Senate. The Senate Budget Committee is working on what appears to be a significantly more generous spending plan. But it may not finish until late Saturday.
The House committee's defense spending proposals are certain to anger conservatives. The panel cut Carter's fiscal 1980 military budget by $1.8 billion in outlays and $3 billion in new spending authority-far below Carter's NATO pledge to raise Pentagon spending 3 percent after inflation.
It also denied a White House request for $2.2 billion in additional defense appropriations for fiscal 1979. which would have raised military outlays in the current year by $1.1 billion. By contrast, the Senate Budget Committee voted to give Carter essentially what he wants.
But the House panel's proposals also will run into trouble with liberals, who are likely to view them as short-changing urban areas. The panel cut money for grants to states under the general revenue-sharing program, and killed a proposal to continue antirecession aid to cities.
It also rebuffed liberals' efforts to increase spending for public-service jobs and to restore full financing for impact aid to education. And it killed Carter's proposed "real wage insurance" tax credit which would reimburse workers if inflation exceeded the 7 percent pay guideline.
In a last round of decision making yesterday, the House panel agreed to restore $15 million in outlays and $500 million in new spending authority for Carter's rural home ownership assistance program, and also put back $7 million in outlays for education for the handicapped.
The vote to restore $500 million in new spending authority for Carter's latest urban intitiatives program came on a motion by Rep. Stephen J. Solarz (D.N.Y.). The vote was 14 to 11. On Wendesday, the panel had killed the program. Actual outlays will involve only $50 million.
Although the House committee denied any supplemental fiscal 1979 funds for defense spending, it did approve extra spending for the current year's budget in a spate of domestic programs, totaling $6.459 billion in additional outlays and $9 billion in spending authority.
It also proposed revising the current year's congressional spending ceiling to adjust for higher than expected spending and higher outlays. However, the deficit would be cut to $34.475 billion - down from $38.8 billion as approved last September.
The Senate Budget Committee continued meanwhile, through another round of relatively minor budget decisions, meeting late into the evening in a rush to complete its work sometime this weekend.