THE GOVERNMENT . . . CHOPPING AN ARM TO SAVE THE LEGS

The Clinton Administration is considering a host of proposals to cut programs and even Cabinet departments, racing to stay ahead of budget-slashing Republicans. Administration officials said today they were considering dismantling the departments of Housing and Urban Development, Energy and Transportation. But Vice President Al Gore, who spearheaded the reinventing government effort, complained that the leaks highlight preliminary recommendations not even presented to President Clinton. Even so, the affair is shaping up as a bidding war between Democrats and Republicans over who can chop the budget fastest, and is widely interpreted in Washington as a sign of President Clinton's eagerness to reclaim the political center.