CONGRESS STAYS TO FINISH WORK ON BUDGET PLAN.

Byline: Alan Fram Associated Press 

Against a backdrop of a rare Saturday workday for Congress, Republican budget bargainers expressed a willingness to give President Clinton some of the money he is demanding for schools, but on their own terms.

Both the House and Senate were open for business by lawmakers hoping for a budget agreement to let them complete the year's legislative work this week and go home for their re-election campaigns.

The heaviest lifting was being done in closed-door meetings between administration officials and lawmakers. Sen. Frank Lautenberg, D-N.J., said they agreed to $609 million for Amtrak, the federally subsidized passenger railroad, $54 million more than the Senate initially approved.

They still dickered over how to pay for demands by the administration and lawmakers for billions in additional spending and over issues like procedures for the 2000 census, U.S. support for the International Monetary Fund and immigration laws.

Aides from both sides said the Clinton administration was demanding about $3 billion in additional spending, mostly for education and foreign aid.

Republicans were expressing a willingness to provide the $1.1 billion Clinton wants to help communities hire 100,000 elementary school teachers, participants said. But the GOP was insisting that savings be found to pay for it, and that states be allowed to use it to reduce class sizes any way they want, such as by adding classrooms.

White House Chief of Staff Erskine Bowles met twice with GOP leaders, emerging in the early evening to give an upbeat assessment to reporters.

``They clearly heard what we're saying on education, and I'm optimistic on that regard,'' he said.

House Majority Leader Dick Armey, R-Texas, also expressed optimism but said the dispute was ``not at all settled.''

Clinton arranged to meet this afternoon with his budget team and top Democrats from the House and Senate to go over the status of negotiations. The president also cleared his schedule for most of the day Monday to be available for budget talks, delaying his departure on a fund-raising trip to New York City until late afternoon.

In his weekly radio address, Clinton also emphasized his education initiatives. They include a plan to help communities leverage bonds for school construction.

``Congress has an opportunity and an obligation to renew and strengthen our schools,'' Clinton said. ``There is no more important task before us.''

By making school programs his paramount budget demand, Clinton has given congressional Democrats a clear, simple theme that they can use for the Nov. 3 elections. Republicans are also using it to contrast themselves with their Democratic opponents.

``There are serious, legitimate objections on both sides,'' said House Speaker Newt Gingrich, R-Ga. ``We're more conservative, want less Washington spending. My hope is that we will be able, today and tomorrow, to reach a resolution.''

Senate Majority Leader Trent Lott, R-Miss., said Clinton wants ``tons more money controlled by his type of folks.'' He added, ``We fully expect him to demagogue this issue, and that's all it is, pure and simple.''

One GOP aide familiar with the talks said that Saturday, a day after Clinton first made the education initiatives his top priority, was the first time White House bargainers raised it as an issue in budget talks that have lasted days.

Another GOP aide said Republican leaders agreed with White House drug policy director Barry McCaffrey on an anti-drug package, but administration bargainers balked at accepting it.