WHITE HOUSE ANNOUNCES HELP FOR D.C.

WASHINGTON (AP) -- The District of Columbia would get $485 million for
housing prisoners and new prison construction under President Clinton's
1999 budget.

Hillary Rodham Clinton outlined the president's proposed $3.7 billion plan
for the capital city on Thursday.

``The president challenged us to make our capital city a great city and
help fulfill that promise,'' she said at a meeting attended by several top
federal officials. ``We want to give the city and its citizens the economic
strength to succeed in the next century.''

Mayor Marion Barry denounced the Clinton package and called on the
president to provide ``less rhetoric and more resources.''

Barry said the proposal lacks several items that are critically important
to the city's health. He said these include full payment of the Medicaid
costs borne by the city, funding of mental health services and a federal
payment for the city in lieu of property taxes for federal installations.
He said those items total $750 million.

The plan also includes $50 million for a locally chartered economic
development corporation; $25 million for management reforms; a similar
amount for Metrorail station improvements for the proposed new Washington
Convention Center; and $1.5 billion for various cultural and historic
institutions including the Kennedy Center for the Performing Arts and
Smithsonian Institution museums.

The city's troubled school system, which opened three weeks late this past
fall because of uncompleted roof and boiler repairs, would get $20 million
for improving student achievement, said Education Secretary Richard Riley.
The money would be used to expand summer school, train teachers and
principals and place reading specialists in all 156 city schools.

``I, for one, will not abide this tyranny of low expectations that cost too
many of our urban schools in this country, including some schools here in
the district,'' Riley said. ``I also know that the citizens of the District
of Columbia are demanding change as well.''

The city would receive $1.4 billion in grants and services from various
federal agencies. That includes $638 million for federal Medicaid
assistance; $15 million for the school-lunch program; and $14 million in
Labor Department grants for job training.

President Clinton last August signed legislation giving the federal
government responsibility for such district expenses as Medicaid and
pensions for retired judges, firefighters and police officers.