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''His political persuasion is to the moderate wing from mine,'' said Stuart M. Butler, the director of domestic policy studies at the Heritage Foundation, where many of Ronald Reagan's economic policies were developed. ''But I admire his professional objectivity. He is the kind of person who is highly respected by people like me who disagree with him.'' The most pressing budget issue to many is the Federal deficit, and Mr. [Robert D. Reischauer] rejects any notion that the deficit is not a serious problem. ''I can't say it's dangerous over the next 12 or 24 months,'' he said. ''But if you run big deficits year after year, you're going to have a lower standard of living 5 or 10 or 15 years out.'' Ways Around the Problem ''Clearly, it would take a number of years to develop a consensus around any such major policy shift,'' Mr. Reischauer wrote. But ''structural reforms hold out some promise'' for producing ''a budget surplus in the late 1990's.''

The Center on Budget and Policy Priorities will hold conference call briefings Tuesday, July 8 at 11:00 a.m. and 2:00 p.m. (ET) featuring Urban Institute President [Robert Reischauer] to discuss aspects of the Medicare prescription drug bill going to a House- Senate conference. The Center also will release, in conjunction with the briefing, a new analysis by Center deputy director and state fiscal expert [Iris Lav] on the state revenue losses that states will experience if the $174 billion in tax cuts included in the House bill are enacted. The study includes state-by-state revenue loss estimates.

The leading candidate, according to insiders, is Robert D. Reischauer, an economist at the Brookings Institution, who is a specialist in Government social programs and who was once deputy director of the agency. Mr. Reischauer, 48 years old, advised Gov. Michael S. Dukakis in last year's Presidential campaign.