THE WEEK

By KATHLEEN ADAMS, LINA LOFARO, ALICE PARK, MICHAEL QUINN, JEFFERY C. RUBIN, ALAIN L. SANDERS AND SIDNEY URQUHART

NATION

THE REVOLUTION ROLLS ON

Stitching together the hundreds of controversial policy changes they had already approved in separate pieces, the House and Senate passed the Republican plan to balance the budget by 2002. Included are G.O.P. overhauls of Medicare and Medicaid and the party's $245 billion tax cut. Unless the plan is significantly changed in a conference committee, where remaining differences between the two chambers must still be ironed out, the legislation faces an almost certain presidential veto. Protracted wrangling between President Clinton and the G.O.P. congressional leadership is expected to begin shortly-with the 1996 elections very much in mind.

LABOR TURNS CONFRONTATIONAL

Seeking to revive the sagging fortunes of organized labor, AFL-CIO delegates elected insurgent John Sweeney to become the new president of the national labor federation. Sweeney beat out insider Thomas Donahue by pledging to rebuild union membership, open more labor posts to minorities and women and-perhaps most significant-adopt more militant tactics against cost-slashing employers. True to his word, Sweeney led a protest march through New York City's garment district the day after his election.

CALIFORNIA GOLD

Voter-rich California provided good news to two major players in the 1996 presidential election. Republican Senator Bob Dole obtained the key endorsement of Governor Pete Wilson, who only recently dropped out of the G.O.P. race. And Ross Perot's operatives handed over the signatures of some 100,000 Californians to state election officials-more than enough, if the names check out, to place his new independent party on the state ballot in 1996.

DEM PROBE BAGS G.O.P. CATCH

The independent counsel investigating former Clinton Agriculture Secretary Mike Espy obtained his first conviction: a guilty plea from a top Republican political insider and lobbyist. James Lake admitted to taking part in an illegal scheme to funnel money to the failed congressional campaign of the Secretary's brother, Henry Espy. Lake allegedly had been asked to help Espy out by a lobbyist for Sun Diamond Growers of California, a client company of Lake's own lobbying firm. The point of the exercise, presumably, was to curry favor with the Agriculture Secretary.

FATAL CROSSING

In Fox River Grove, Illinois, a Chicago-bound commuter train plowed into a school bus filled with teenagers, killing seven students and injuring nearly 30 others. The bus had apparently come to a stop for a red light situated just beyond a railroad crossing, with the rear of the bus still extended over the tracks. An investigation is under way.

ABORTION SUIT SURPRISE

A Dallas federal jury assessed a group of antiabortion organizations and individuals $8.6 million for placing threatening calls to Dr. Norman Tompkins and hounding him and his family at his home, office, hospital and church. One of the defendants was Operation Rescue.

SELENA'S KILLER GETS LIFE

Dismissing the defense claim that the shooting had been an accident, a Houston jury convicted Yolanda Saldivar of having murdered Tejano singing star Selena. The sentence: life in prison with no possibility of parole for 30 years. The March shooting, which took place in a Corpus Christi motel, is said to have occurred during a financial dispute between Selena and Saldivar, the former president of the singer's fan club.

GUNNING DOWN FORT BRAGG

A sniper hiding in the woods opened fire on 1,300 Army paratroopers at Fort Bragg as they were about to set out on a predawn exercise run. One soldier was killed, and about 20 were wounded. Other soldiers seized and subdued the suspect, Sergeant William Kreutzer, a comrade at the North Carolina Army base. He was being questioned by Army officials.

SOMEWHAT LESS DEADLY

For the third year in a row the national homicide rate declined from 10.5 killings per 100,000 in 1993 to 9.7 per 100,000 in 1994-good news, to be sure, though the latter figure still represents a whopping 23,730 deaths from shooting, stabbing and other means.

WORLD

U.N. MARKS HALF-CENTURY

The member countries of the U.N. marked the organization's 50th birthday at headquarters in New York City with three days of speechifying and celebrating. Each of 201 world leaders was allotted five minutes to speak from the General Assembly's rostrum; politicians being politicians, most of them took a little longer to make their points. Chief among their concerns: war, poverty and reform of the U.N., including the U.S.'s embarrassing refusal to pay its $1.2 billion dues in arrears.

SUMMIT I: HYDE PARK

President Clinton took advantage of the global gathering to meet privately with Russian President Boris Yeltsin for four hours at F.D.R.'s Hudson River estate. The tete-a-tete was demonstrably friendly, with Yeltsin squeezing Clinton in a bear hug. With their urging, negotiators later agreed that about 2,000 Russian troops would play a noncombat supporting role in a multinational peacekeeping force in Bosnia. But nato insists that any Russian combat troops in Bosnia be placed under its control, a demand the Russians just as adamantly reject.

YELTSIN HOSPITALIZED

Upon his return to Moscow, Yeltsin complained of chest pains and was hospitalized with heart trouble for the second time in four months. His doctors found that the blood supply to Yeltsin's heart was ''unstable'' and ordered him to remain under close medical supervision until the end of November.

SUMMIT II: LINCOLN CENTER

The mood was decidedly less chummy when Clinton met for two hours at New York's Lincoln Center with China's President Jiang Zemin. The two nations remained intractable on the many issues that divide them-human rights, Taiwan, Tibet, nuclear nonproliferation-though each side politely called the talks ''positive.''

BALKAN PEACE MOVES

With a meeting in Moscow postponed by Yeltsin's illness, the leaders of Bosnia's warring parties prepared for the U.S.-sponsored talks set for this week in Dayton, Ohio. One hopeful sign: the first civilian convoy to reach Sarajevo since the Bosnian war began in 1992 traveled through Serb-held territory with a welcome cargo of flour and cement. A less hopeful sign: in Croatia, President Franjo Tudjman said that if the final slice of Croatian territory held by Bosnian Serbs is not relinquished through negotiation by the end of November, the Croatian army will move to retake it by force.

CHECHENS BLITZ RUSSIANS

Eighteen Russian soldiers were killed and eight more captured by Chechen rebels when their convoy was ambushed as they traveled to give medical aid to fellow Russian troops. The attack was the hottest flare-up in fighting since the two sides agreed to a cease-fire six months ago. After the Russian military vowed to retaliate with ''adequate measures,'' and warned Chechen civilians to evacuate the area where the attack occurred, the eight hostages were released.

BUSINESS

PROBING A STOCK GURU

Federal prosecutors are reported by Business Week to be looking into whether influential Wall Street columnist and broadcaster Dan Dorfman was involved in illegal insider trading, wire and mail fraud and securities-law violations through his friendship with a stock promoter. Dorfman, who denies the allegations, has taken a leave from MONEY magazine (which is owned by Time Inc.) pending resolution of the matter.

SCIENCE

TOO GOOD TO BE TRUE?

The research group that blew the whistle on the unhealthy fat content of Chinese food and movie popcorn has now reported that olestra, a nonfattening fat substitute, is unsafe for consumption. The group says olestra leaches the body of essential vitamins, such as A, D and K. Proctor & Gamble, olestra's creator, has proposed fortifying it with the vitamins. The Food and Drug Administration will hold hearings in November on whether olestra is safe for use in snack foods.

SPORT

A SMOKING CIGAR

At Belmont Park, strongly favored Cigar captured the $3 million Breeders' Cup Classic in record time to cap a dazzling undefeated season.

--By Kathleen Adams, LINA LOFARO, Alice PARK, Michael Quinn, Jeffery C. Rubin, Alain L. Sanders and Sidney Urquhart