Full text of Budget Revisions : Fiscal Year 1982
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FISCAL YEAR
Budget Revisions
M A R C H
1981
For sale by the Superintendent of Documents, V S. Government P r i n t i n g Office Washington, B.C. 20402
The Congressional Budget Act of 1974 requires
that the President
submit
to the
Congress
revisions
of
the
1982 budget by April 10.
This document meets that requirement.
GENERAL NOTES
1.
All years referred to are
unless otherwise noted.
fiscal years
2.
Detail may not add to totals due to
rounding.
-iii-
TABLE OF CONTENTS
Page
MESSAGE OF THE PRESIDENT ON THE BUDGET....
Part 1.
ECONOMIC AND BUDGET POLICY
The Economic Plan
Lessons of Past Economic Events
Budget Restraint
Budget Reduction Plans
Part 2.
THE CURRENT BUDGET OUTLOOK
Introduction
Economic Assumptions
Budget Receipts
The Credit Budget and Off-Budget Outlays
Debt
Federal Civilian Employment
Part 3.
Part 4.
Part 5.
1
1
4
5
7
11
11
12
14
17
28
30
BUDGET AUTHORITY AND OUTLAYS BY FUNCTION,
1980-1982
33
BUDGET AUTHORITY AND OUTLAYS BY FUNCTION,
1983-1986
95
SUMMARY TABLES
Appendix A.
Appendix B.
Appendix C.
M-l
FEDERAL AID TO STATE AND LOCAL GOVERNMENTS....
SUMMARY OF PROGRAMMATIC INCREASES TO THE
JANUARY BUDGET
SUMMARY TABLE OF PROGRAMMATIC DECREASES TO
THE JANUARY BUDGET
121
135
140
144
-iv-
LIST OF TABLES
Page
Part 1. ECONOMIC AND BUDGET POLICY
1. Budget Savings
2. Change from Current Policy Base Outlays to
Target Outlay Ceiling
3. January Versus Revised Budget Totals
4. Fiscal Trends
Part
5.
6.
7.
8.
9.
10.
11.
12.
13.
2. THE CURRENT BUDGET OUTLOOK
Budget Totals
Economic Assumptions
Change in Budget Receipts
Summary of Credit Budget Totals
Changes in Direct Loan Obligations, 1981-1982
Changes in Loan Guarantee Commitments/ 1981-1982
Changes in Off-Budget Outlays
Budget Financing and Debt
Total Federal Civilian Employment — Executive Branch.
Part 3.
BUDGET AUTHORITY AND OUTLAYS BY FUNCTION,
1980-1982
3
6
7
11
13
15
18
24
25
27
28
31
33-94
Part 4.
14.
15.
BUDGET AUTHORITY AND OUTLAYS BY FUNCTION,
1983-1986
Changes from January Budget to Revised Budget,
1983-1986
Budget Outlay Target Shares, 1981 and 1986
2
Part 5. SUMMARY TABLES
16. Budget Receipts by Major Source
17. Estimated Effect of Administrative Actions and
Proposed Legislation on Receipts, 1981-1986
18. Composition of Budget Outlays, 1980-1986
19. Budget Authority by Function
20. Budget Outlays by Function
21. Budget Authority by Agency
22. Budget Outlays by Agency
23. New Direct Loan Obligations by Agency
24. New Loan Guarantee Commitments by Agency
25. Budget Financing and Outstanding Debt
26. Summary of the Full-Time Equivalent of Full-Time
Permanent Civilian Employment in the Executive Branch
APPENDIX TABLES
A-l. Grants to State and Local Governments
A-2. Grants to State and Local Governments
by Function:
Budget Authority
A-3. Grants to State and Local Governments
by Function:
Outlays
B.
Summary of Programmatic Increases to the January
Budget
C.
Summary of Programmatic Decreases to the January
Budget
95-119
97
98
122
123
124
126
127
128
129
130
131
132
133
135
138
139
140
144
TO THE CONGRESS OF THE UNITED STATES:
On February 18, I spoke to a Joint Session of Congress
about the economic crisis facing America.
I pledged then to
take the action necessary to alleviate the grievous economic
plight of our people.
The plan I outlined will stop runaway
inflation and revitalize our economy if given a chance.
There is nothing but politics-as-usual standing in the way
of lower inflation, increased productivity, and a return to
prosperity.
Our program for economic recovery does not rely upon
complex theories or elaborate Government programs.
Instead,
it recognizes basic economic facts of life and, as humanely
as possible, it will move America back toward economic
sanity.
The principles are easily understood, but it will
take determination to apply them. Nevertheless, if inflation
and unemployment are to be curtailed, we must act.
First, we must cut the growth of Government
spending.
Second, we must cut tax rates so that once again work
will be rewarded and savings encouraged.
Third, we must carefully remove the tentacles of
excessive Government regulation which are strangling our
economy.
Fourth, while recognizing the independence of the
Institution, we must work with the Federal Reserve Board to
develop a monetary policy that will rationally control the
money supply.
Fifth, we must move, surely and predictably, toward a
balanced budget.
The budget reform plan announced on February 18 includes
83 major cuts resulting in $34.8 billion outlay savings for
1982, with greater future savings. With this message, over
200 additional reductions are proposed. An additional $13.8
billion in savings are now planned.
Further, I am proposing
changes in user charges and off-budget payments that will
bring total fiscal savings to $55.9 billion.
This compares
with $49.1 billion in fiscal savings announced on February 18.
M-2
In terms of appropriations and other budget authority
that will affect future spending f we are proposing elimination
of $67 billion in 1982 and over $475 billion in the period
1981 to 1986.
These cuts sound like enormous suras — and they are —
until one considers the overwhelming size of the total
budget.
Even with these cuts, the 1982 budget will total
$6 95.3 billion, an increase of 6.1 percent over 1981.
The budget reductions we are proposing will, undoubtedly,
face stiff opposition from those who are tied to maintaining
the status quo.
But today's status quo is nothing more than
economic stagnation coupled with high inflation.
Dramatic
change is needed or the situation will simply get worse,
resulting in even more suffering and misery, and possibly
the destruction of traditional American values.
While recognizing the need for bold action, we have
ensured that the impact of spending reductions will be
shared widely and fairly by different groups and the various
regions of the country. Also, we have, as pledged, maintained
this society's basic social safety net, protecting programs
for the elderly and others who rely on Government for their
very existence.
Budget cuts alone, however, will not turn this economy
around.
Our package includes a proposal to reduce substantially the personal income tax rates levied on our
people and to accelerate the recovery of business with
capital investment.
These rate reductions are essential to
restoring strength and growth to the economy by reducing the
existing tax barriers that discourage work, saving, and
investment.
Individuals are the ultimate source of all
savings and investment.
Lasting economic progress, which is
our goal, depends on our success in encouraging people to
involve themselves in this kind of productive behavior.
Our tax proposal will, if enacted, have an immediate
impact on the economic vitality of the Nation, where even a
slight improvement can produce dramatic results.
For example,
a 2 percent increase in economic growth will add $60 billion
to our gross national product in one year alone.
That $60
billion adds to the State and local tax base, to the purchasing
power of the American family, and to the resources available
for investment.
M-3
When considering the economic recovery package, I urge
the Members of Congress to remember that last November the
American people's message was loud and clear.
The mandate
for change, expressed by the American people, was not my
mandate; it was our mandate.
Together we must remember that
our primary responsibility is to the Nation as a whole and
that there is nothing more important than putting A m e r i c a 1 s
economic house in order.
The next steps are up to Congress.
It has not been
easy for my Administration to prepare this revised budget.
1 am aware that it will not be easy for the Congress to act
upon it.
I pledge my full cooperation.
It is essential
that, together, we succeed in again making this Nation a
land whose expanding economy offers an opportunity for all
to better themselves, a land where productive behavior is
rewarded, a land where one need not fear that economic
forces beyond one's control will, through inflation, destroy
a lifetime of savings.
RONALD REAGAN
THE WHITE HOUSE,
March 10, 1981
-1-
Part 1
ECONOMIC AND BUDGET POLICY
On February 5, President Reagan
spoke to
about the economic problems that we face:
runaway
—
the
American
people
inflation?
excessive
regulation;
tax burdens that have
diminished
produce, save, and invest;
incentives
—
large and increasing budget deficits; and
—
uncontrolled growth of the Federal budget.
to
work,
The Economic Plan
The President then outlined his plan to deal with these problems.
It consists of four broad parts:
(1) an immediate,
substantial,
and
sustained
reduction
in the growth of Federal expenditures;
(2) a significant reduction in Federal tax rates over the next 3
years;
(3) elimination
of unnecessary Federal regulations; and
(4) a slower, steady, and predictable growth of the money
supply
set by the
independent
Federal
Reserve
System.
These four
complementary
policies
form an
integrated
and
comprehensive
program.
This plan
reflects faith in the private sector, rather than the
Federal Government,
as the
fundamental
source
of
economic
motivation and growth.
It is based on the belief that Government
economic policy must again become reliable and consistent.
The
approach
embodied
in the Administration's
plan
is a major
departure
from past policies, which consisted of rapid growth of
Federal
spending,
excessive
increases
in the money
supply,
frequent
changes of direction, historically high and continually
rising
tax burdens,
and unwarranted
regulation.
The
plan
proposes
to restore State and local government responsibilities
in areas of public services in which the Federal Government
has,
in recent years, become excessively or improperly involved.
The
major
features
of the President's
economic
plan
were
and
described in his address to a joint session of the Congress
in the February 18 report, A Program for Economic Recovery.
The
present
document
updates
that
report
and
contains
further
information
on the budget revisions the President is proposing,
including additional changes now proposed by
the
Administration
to achieve the
1981
and
1982 outlay
targets
announced
on
February 18. This is summarized in the following tables.
Table 1 . — B U D G E T SAVINGS
(in billions of dollars)
Outlays
Savings listed on February 18 a/
Additional savings now listed b/
Subtotal, Outlay savings
Savings included above that were also
included in the January budget
Receipts
Proposed user charges and other proposals...
Proposals included above that were also
included in the January budget..
Total budget savings
a/ Measured from a current policy base,
b/ Measured from the January budget.
1981
1982
1983
1984
1985
1986
4.8
1.6
34.8
13.8
50.1
17.1
61.4
19.9
70.2
22.6
77.3
25.4
6.4
48.6
67.2
81.2
92.8
102.7
(0.3)
(8.2)
(9.1)
(9.7) (11.1)
0.3
2.6
2.9
3.3
3.6
4.0
(0.2)
(1.8)
(2.0)
(2.2)
(2.4)
(2.6)
51.2
70.2
84.5
96.4
6.6
(11.5)
106.8
Table 2 . — C H A N G E FROM CURRENT POLICY BASE OUTLAYS TO TARGET OUTLAY CEILING
(in billions of dollars)
February 18 current poli cy base
Added defense funds..
Reestimates and other adjustments
Current policy base with adequate defense.
Outlay savings (from Table 1)
Nondefense increases a/
Additional savings to be proposed
Target outlay
ceiling...
a/ Measured from the January budget.
1981
1982
1983
1984
1985
1986
657 .8
729 .7
792 .1
849 .0
911 .4
972 .8
.0
0 .2
6 .2
6 .8
20 .7
14 .4
27 .0
17 .7
660 .0
742 .7
827 .2
893 .7
978 .7 1055 .7
-6 .4
.6
-48 .6
1 .2
-67 .2
1 .8
-29 .8
-81 .2
1 .9
- 4 4 .2
- 9 2 .8 -102 .7
1 .7
1 .8
-43 .7 -42 .7
732 .0
770 .2
844 .0
—
655 .2
— .—
695 .3
50 .2
17 . 1
63 .1
19 .8
912 .0
-4Lessons of Past Economic
Events
The
experience
of
the past
decade has
taught
workers
and
businessmen
alike
that
frequent
Government
tinkering
with
economic policy results in increased
uncertainty,
unpredictable
interest rates, rapid price increases, steep increases in Federal
budget
outlays,
and
uncertain
real
returns
to
savings
and
investment.
In contrast, the
President's
economic
plan
moves
toward dependable stability.
For
the future, budget control is essential.
The excessive past
rates of increase in Federal
outlays
have
inhibited
economic
growth,
raised
the N a t i o n f s real tax burden, diverted resources
from more productive private uses, and discouraged production and
investment.
Borrowing
to
finance
growing
deficits
has
brought
about
a
substantial
reallocation
of
national
savings from the private
sector to the Federal Government.
More than three-fourths of the
nondefense
portion
of
the Federal
budget
is
for
current
expenditure
rather
than
investment.
The growing public sector
demands on available savings, to finance current expenditures
by
the Government, has impeded the private sector capital formation
necessary for sustained economic growth.
Sluggish growth and rising unemployment led, in a vicious circle,
to additional budget spending, higher budget deficits, and
still
less
growth.
The budget
became
a captive
of deteriorating
economic forces rather than a catalyst for economic
improvement.
A year
ago,
for example, the Congress and the executive branch
reached a consensus as to the need to balance
the budget,
and
made
an effort to do so. An economic recession, however, along
with the explosive increase in interest rates, overwhelmed
these
efforts.
This volatility and deterioration in the performance of
the
national
economy
increased
estimated 1981 spending by $47
billion while receipts increased by less than
$8 billion.
The
plan
to balance
the budget
fell apart.
Once again, external
economic forces reversed planned policy.
This Administration's budget control plan
explicitly
recognizes
the
interaction
between
external
economic forces and internal
Federal policy changes.
The surest path to a balanced budget
is
coordinated
program to rejuvenate economic growth and restore
a
the value of money.
If this is done,
external
economic
forces
will
act
to
enhance
the Government's internal fiscal policies
rather than to undermine them.
-5-
Budget
Restraint
Restraining the growth of Federal spending lies at the center
of
the program
for
economic
recovery.
In
recent years, deeply
embedded inflationary fears have
been
reinforced
by
numerous
upward budget revisions and growing Federal deficits.
During the
past
2 years,
Federal spending has increased from the original
budget estimates by amounts totaling nearly $100 billion, and the
rate of increase in Government spending has
averaged
16%.
The
President's
budget
control
plan
is designed to create a much
better economic environment.
Compared
to the
current
policy
base,
the plan will
save
$40 billion
in outlays
in 1982.
Reduction targets of $97.0 billion in 1983
and
more
than
$125
billion annually during 1984-1986 have been established.
During
the 1981-84 period, the budget plan would reduce the rate
of growth of Federal expenditures
to
5.5%
annually.
Together
with
a stable
monetary
policy,
this abrupt downward shift in
spending growth is the only credible way to
reduce
inflationary
expectations
and remove the historically large inflation premium
that is currently embedded in interest rates.
As indicated
in the
following
tables,
this
Administration's
proposals
substantially
alter the previous administration's tax
and spending policies.
Sharp reductions in spending growth would
occur under the budget reform plan.
Spending in 1982 would
grow
by
6.1%
under
the Administration's revised budget, only about
half as fast as the 11.6% growth
in
spending
proposed
by
the
previous
administration.
The
substantial
reduction
in
the
Government tax burden is illustrated by:
a much slower growth
rate
in budget
receipts
during
1982 —
8.3%
for the
revised budget in comparison to
17.2% in the January budget; and
—
almost a 2 percentage point reduction
in the
receipts
share
of GNP
in
1982 — from 22.1% under the January
budget to 20.4% under the Administration proposals.
spending
reductions,
off-budget
outlay
In addition to budget
savings
of
$4.7 billion are proposed in 1982, and significantly
larger reductions are proposed for later years.
Some
of
these
budget
and
off-budget reductions, which are partially offset by
upward revisions to the base, occur in Federal
lending
or
loan
guarantee
programs.
Under
the
revised
budget,
direct
loan
obligations would be $2.6 billion lower for 1982 than
under
the
January
budget
proposals,
and
new
loan guarantee commitments
would be $18.4 billion lower.
-6 —
Table 3 . — J A N U A R Y VERSUS REVISED BUDGET TOTALS
(in billions of dollars)
Actual
1980
Estimate
1981
1982
Budget Authority
January budget
Change
658.8
726.5
-16.3
809.8
-37.5
Revised budget
658.8
710.1
772.4
Outlays
January budget
Change
579.6
662.7
-7.6
739.3
-44.0
Revised budget
579.6
655.2
695.3
Receipts
January budget
Change
520.0
607.5
-7.2
711.8
-61.4
Revised budget
520.0
600.3
650.3
Deficit ( - )
January budget
Change
-59.6
-55.2
0.3
-27.5
-17.4
Revised budget
-59.6
-54.9
-45.0
The combination of incentive-strengthening
tax
rate
reductions
and
firm
expenditure
control will lead to a balanced budget by
1984. The President's proposals project a 1984
spending
target
of
$770 billion, which is $120 billion below the January budget
projection for that year. The 1984 outlay target share of GNP is
estimated at 19.3%,
2.7 percentage
points below
the
January
budget
estimate.
The
receipt
share of GNP
under President
Reagan's proposals also stands at 19.3% in 1984, with the Federal
tax burden reduced by
$152 billion
from the January
budget
estimate.
As a result
of the President's tax proposals, Federal receipts
are estimated to rise by 28% between 1981 and 1984, when
budget
balance
is
first attained, and by 57% over the entire 1981-1986
period. Under the previous administration's
proposals,
Federal
receipts would have
risen by 96% over this 5-year period.
But
this extraordinary tax burden would inhibit investment and output
growth, and thus would have
triggered
additional
outlays
for
unemployment
benefits
and
the like, resulting in higher budget
deficits. However, the new policy
of tax rate
reduction
is
expected
to
expand
the economy's productive
base,
lower
unemployment, and
reduce budget
outlays.
As a result,
the
decline
in tax rates is likely to generate both strong economic
-7-
improvement and impressive gains in receipts, paving the way
a balanced budget.
Table 4 . — F I S C A L
for
TRENDS
1981 Estimate
January
Revised
1982 Estimate
January
Revised
Percentage Growth
Receipts
Outlays
16.8
14.3
15.4
13.0
17.2
11.6
8.3
6.1
Percent of GNP
Receipts
Outlays
21.4
23.3
21.1
23.0
22.1
23.0
20.4
21.8
By "holding the
growth
of Federal
spending below the rate of
growth of gross national product, the new policy achieves serious
and reliable budget control.
The tax share will be equal to
the
outlay
share by
1984, at significantly lower levels than under
previous policy.
The reduced size of the public sector will free
up the resources for a strong, rapidly growing private sector.
The reduced Federal share of GNP
under
the
new budget
plan,
reinforced
by
monetary stability, will signal a sharp reduction
in future rates of
inflation,
and will
thus have
beneficial
effects
on
financial,
labor,
product,
commodity, and foreign
exchange
markets.
As
inflationary
expectations
moderate,
interest rates will decline and business confidence will improve.
Long-term
capital
markets will
recover,
making
possible the
refinancing of corporate balance sheets. Wage and price
demands
will become less aggressive.
Commodity prices will stop rising,
and the dollar will strengthen in foreign exchange markets.
Tax
burdens will ease.
Better fiscal policies will become the basis
for economic revival.
Budget Reduction
Plan
The expenditure plan proposed in this document
is
complete
for
1981
and
1982.
Projections
of
1983 and future-year spending
consistent with the specific budget reductions included
in
this
program
are
also
shown.
However,
is shown in Table 2 above,
further spending reductions affecting 1983 and
subsequent
years
are also planned.
These further reductions will be identified in
later messages and budgets.
Because
of
the long lags in the Federal spending process, large
reductions in spending authority do not result
in
corresponding
immediate
reductions
in outlays.
For
example,
the proposed
reductions in budget authority amount to
$21 billion
in
1981.
-8-
The resulting outlay reductions in 1981 are
less than a third of this amount.
estimated
to
total
Spending
has achieved runaway momentum because criteria on which
to judge the merits
of
spending
programs
have
been
largely
absent.
As
a
result,
virtually
any
demand
for
Federal
assistance, from any sector of the economy or
region,
has
been
considered valid.
The President's budget revisions represent a sharp departure from
the policies
of
the past
two decades.
The
January budget
estimates showed Federal spending increasing at an annual rate of
13.3% over the period from 1977 to 1981.
This
Administration's
program
will
reduce
the
rate of growth of Federal spending to
only 5.5% a year
over
the
1981-1984 period.
Restrained
and
steady
fiscal policy
will replace the excessively expansionary
and erratic policies of the past and will permit
sound
monetary
policies.
This
change will
benefit
Americans
of
all
income
classes,
regions, and ages.
Similarly, as is fitting
in our
democracy,
of budget restraint will be widely shared. No group
the
impact
except the truly needy should be exempt. No one should expect to
share the benefits of budget restraint without also
sharing
its
costs.
Despite
the
limited
time
that
this Administration has had to
review the budget,
the proposed
revisions
are
extensive
and
detailed.
This detail demonstrates clearly that the costs of the
budget restraint program are shared equitably.
The proposed
budget reductions were developed on the basis of a
set of clear, consistent, and economically sound
criteria.
The
Administration
has
applied
the
following
nine
criteria
for
evaluating claims for Federal support.
The first criterion is the preservation of the social safety net.
The social safety net consists of those programs, mostly begun in
the 1930's, that now constitute an agreed-upon core of protection
for the elderly, the unemployed, and the poor, and those programs
that fulfill our basic commitment to the people
who
fought
for
this
country
in times
of war.
Under
the President's plan,
expenditures for these programs will increase as a percentage
of
total Federal outlays, from 36.8% in 1981 to 40.1% in 1984.
The second criterion is the revision of entitlements to eliminate
unintended
benefits.
This criterion applies primarily to newer
Federal entitlement programs and related income security programs
that have undergone rapid growth during the last 20 years.
The
criterion
also
applies
to certain aspects of social safety net
programs
that have
been
added
unnecessarily
or have
grown
excessively.
Outlays for new or expanded entitlements have grown
from
$5.6 billion in 1970 to a January budget estimate of $56.9
billion for 1982.
The third criterion is the reduction of benefits for people
with
middle
to upper incomes.
Given the current economic climate and
-9-
the proposed major reductions in income taxes,
these
spending
reductions
are a matter of simple equity and common sense.
This
criterion
directly
challenges
the
drift
toward
the
universalization of social benefit programs.
The
fourth criterion is the recovery of allocable costs by means
of user fees. The user fee principle is applicable to activities
that provide direct economic benefits to a specific
and
known
group of individuals or enterprises and where there is no need or
reason for these beneficiaries to be subsidized by all taxpayers.
The Administration
proposes
applying this criterion to certain
Coast Guard expenses,
inland waterways,
and the air
traffic
control
system.
The
scope
for application of this principle
extends to other areas as well.
The fifth criterion is the application of rigorous
standards
to
economic
subsidy
programs.
The budget reform plan proposes to
eliminate grants and subsidies that were
designed
to
alleviate
specific problems
of
economic
deterioration, but have instead
made our economic problems worse by interfering with the workings
of the marketplace.
Significant
reductions
are proposed
for
nonproductive
jobs programs,
unnecessary
subsidies to develop
energy technologies, and a host of other
subsidy
programs
that
contribute
to,
rather
than help
solve, our national economic
problems.
The sixth criterion is a stretch-out
of public
sector
capital
investment
programs.
Many
of these projects are desirable and
should
be
completed
expeditiously
under
normal
economic
conditions.
However,
the present
economic
crisis argues for
stretching out and delaying these investments in the short run.
The seventh criterion is the imposition of
fiscal
restraint
on
of
national interest. These programs have some
other programs
merit, but given current constraints on available resources
they
must be curtailed or eliminated.
The eighth criterion is consolidation of many categorical grants
to State and local governments into block
grants.
The
Federal
Government
in Washington has no special wisdom in dealing with
many of the social and educational issues faced at the State
and
local
level. By consolidating many of the 550 categorical grant
programs, it will be possible to achieve
numerous
efficiencies.
The health, education, and social services programs proposed for
consolidations
encompass
616 pages
of
law,
1,400 pages
of
regulations,
over
10,000
separate
grants,
and
approximately
88,000 grant sites.
It takes over 7 million hours
to fill
out
the
reports
that
are
required each year, and several thousand
Federal employees to administer these programs.
The ninth
and
final
criterion
is the
reduction
of
Federal
overhead,
personnel
costs,
and program waste and inefficiency.
As a start, President Reagan placed a complete freeze on
Federal
hiring and ordered limits on the procurement of office equipment,
consulting
services,
and travel. This is a beginning.
Federal
management,
personnel
levels,
and administration
are
being
further evaluated and tightened.
-10-
Many people
will
find
some of the individual, specific budget
reductions described in these pages difficult to accept.
This is
because every dollar now paid in Federal taxes or borrowed by the
Federal Government in private financial markets is paid out to
a
recipient
who has an interest in seeing this payment continued,
whether the Federal Government and its taxpayers can truly afford
it or not.
People who plead for special treatment
or
exemption
from
the
criteria
outlined
above
threaten
the rationale and
validity of the entire budget reform plan.
The plan is
designed
to
share
the
temporary
economic
burden
of
constraining the
Federal
Government
to
its proper
role,
based
on
stated
principles.
One
exception
logically
leads
to many
other
exceptions and to erosion
of
the plan
and
of
its
long-term
benefits for the economy and for all Americans.
The
application
of these criteria makes it possible to continue
to finance programs that comprise the social safety net
and
aid
the truly
needy,
and
those
—
like
a strengthened national
defense
—
that
are
essential
Federal
Government
responsibilities.
The
benefits
of
the
President's
economic plan to the average
American will be substantial.
Inflation,
now
at
double-digit
rates,
can be
cut
in half
by 1986.
Reduced tax burdens and
increased
private
saving
will
provide
funds
for
productive
investment.
As a result, the American economy should be able to
produce some 13 million new jobs by 1986.
The creativity and ambition of the American people are the
vital
forces
of
economic growth.
The motivation and incentive of our
people — to supply new goods and services
and
earn
additional
income
for
their families — are the mainspring of our Nation's
economy.
The U.S. economy faces no
insurmountable
barriers
to
sustained
growth.
It
confronts
no permanently
disabling
tradeoffs between inflation
and
unemployment
or
between
high
interest
rates
and high taxes.
New economic policy can revive
the incentives to work and save.
It can restore the
willingness
to
invest
in the private capital required to achieve a steadily
rising standard of living.
Most
important,
it
can help
the
American people regain their faith in the future.
-] 1-
Part 2
THE CURRENT BUDGET OUTLOOK
Introduction
This part presents information on the revised budget totals.
It
includes
sections
on the budget
economic assumptions, budget
receipts, the credit budget and off-budget outlays,
the
Federal
debt,
and Federal civilian employment. The revised estimates in
this document supersede the budget estimates and
recommendations
transmitted to the Congress in January.
They reflect:
—
tax and spending reductions
proposed
as part
President's program for economic recovery;
of
the
proposed increases for defense programs; and
reestimates
of
receipts
and outlays
revised
economic
assumptions
and
reestimates.
resulting
from
from
technical
Table 5 . — B U D G E T TOTALS
(in billions of dollars)
Actual
1980
Receipts
Target outlay
ceiling
Target surplus
or deficit (-).
Estimate
1984
1983
1985
1986
770.7
849.9
940.2
732.0
770.2
844.0
912.0
-45.0
-22.8
0.5
5.8
28.2
21.1
20.4
19.7
19.3
19.3
19.5
23.0
21.8
20.3
19.3
19.2
19.0
1981
1982
520.0
600.3
650.3
709.1
579.6
655.2
695.3
-59.6
-54.9
20.3
22.6
Addendum:
Percent of GNP
Receipts
Target outlay
ceiling
Under the President's Budget
reform plan,
budget
outlays
are
estimated
to total $695.3 billion in 1982 with outlay targets of
$732.0 billion in
1983
and
$912.0 billion
by
1986.
Budget
receipts
are
estimated
at
$650.3 billion in 1982, growing to
$709.1 billion in 1983 and $940.2 billion
by
1986.
Under
the
target
outlay
ceilings
the outlay share of GNP is projected to
fall from 23.0% in 1981 to 19.0% in 1986. The receipts share
of
GNP is projected to decline from 21.1% in 1981 to 19.5% in 1986.
-12-
Economic Assumptions
The economy and the budget are interrelated.
Economic conditions
significantly
affect
the budget,
and
the budget,
in
turn,
influences
economic
conditions.
Because
of
the
complex
interrelationships
between
the budget
and the economy, budget
estimates depend to
a very
significant
extent
upon
economic
assumptions.
The
economic
assumptions presented here reflect the President's
This plan is designed to bring to
program for economic recovery.
all aspects of Government policy a greater sense of purpose
and
consistency.
Permanent
personal tax rate reductions will allow
people to keep more of the additional income they
earn,
thereby
providing increased incentives for work and saving.
Business tax
reductions
will
increase
incentives
for
capital
expansion,
resulting
in higher
productivity.
Spending
reductions
and
elimination of unneeded regulation will give greater control over
resources
to the private sector, where incentives to economize
are strongest.
Stable monetary policy and slower growth
of
the
money
supply,
combined with expanding productive capacity, will
bring about a reduction of the inflation rate.
The economic assumptions used for developing the budget estimates
are presented in the following table to assist
in
understanding
the budget
estimates.
These
economic
assumptions
are
on a
calendar year basis, whereas the budget estimates are for
fiscal
years.
These
economic
assumptions
set
goals
that
may seem
difficult to attain to some.
Compared
to the
January
budget,
projected
inflation,
unemployment
and
interest
rates are all
generally
lower.
The
projections
do
represent
a
decisive
departure
from
the
trends
of
recent
years
— but so do the
proposed
policies.
In
fact,
if
each
portion
of
this
comprehensive
economic
program
is put in place — quickly and
completely — the economic environment could
improve
even
more
rapidly than envisioned in these assumptions.
Table 6. —ECONOMIC ASSUMPTIONS
(Calendar years; dollar amounts in billions)
Actual
1980
Major economic indicators!
Gross national "product (percent change, fourth quarter over
fourth quarter)t
Current dollars.
Constant (1972) dollars
QNP deflator (percent change, fourth quarter over fourth quarter).
Consumer Price Index (percent change, fourth quarter over fourth
quarter) 1 /
Unemployment rate (percent, fourth quarter)• .
.
Annual economic assumptions!
Gross national product!
Current dollars!
Amount
Percent change, year over year
Constant (1972) dollars!
Amount
Percent change, year over year.
Income!
Personal income/**
Wages and salaries
•••••••••
Corporate profits 2/
.
Price level!
GNP deflator!
Level (1972«100), annual average
Percent change, year over year...
Consumer Price Index l/i
Level (1967-100), annual average
Percent change, year over year
Unemployment rate!
Total, annual average
Insured, annual average 3/.
Federal pay raise, October Tpcrcent) 4/t
Civilian
Military
Interest rate, 91-day Treasury bills (percent) 6/
Estimate
1983
195?
T55S
1981
1982
9.8
0.0
9.9
11.0
1.4
9.5
13.3
5.2
7.7
11.8
4.9
6.6
10.1
4.2
5.7
9.6
4.2
5.2
9.1
4.2
4.7
12.6
7.5
10.5
7.7
7.2
7.0
6.0
6.5
5.1
6.3
4.6
5.8
4.0
5.6
2629
8.9
2920
11.1
3293
12.8
3700
12.4
4098
10.8
4500
9.8
4918
9.3
1482
-0.1
1497
1.1
1560
4.2
1638
5.0
1711
4.5
1783
4.2
1858
4.2
2161
1344
243
2399
1488
242
2675
1667
281
2982
1853
326
3276
2035
367
3580
2221
408
3910
2417
455
177.4
9.0
195.0
« 9.9
211.1
8.3
225.9
7.0
239.5
6.0
252.4
5.4
264.7
4.9
247.0
13.5
274.3
11.1
297.0
8.3
315.5
6.2
332.7
5.5
348.3
4.7
363.0
4.2
7.2
3.9
7.8
4.4
7.2
3.8
6.6
3.4
6.4
3.2
6.0
2.9
5.6
2.7
7.0
8.9
8.9
7.0
7.9
7.8
7.0
7.0
7.0
6.4
6.4
6.0
6.0
6.0
5.6
9.1
11.7
11.5
4.8
9.1 5/
11.1
1985"
1/ CPI for urban wage earners and clerical workers. Two versions of the CPI are now published. The index shown here is
that currently used, as required by law, in calculating automatic cost-of-living increases for indexed Federal programs.
2/ Excludes the direct accounting effect of the Administration's depreciation proposal on business income, although all
categories of economic assumptions do reflect the economic impact of this proposal.
3/ This indicator measures unemployment under State regular unemployment insurance as a percentage of covered employment
under that program. It does not include recipients of extended benefits under that program.
4/ General schedule pay raises become effective in October — the first month of the fiscal year. Thus, the October 1981
pay raise will set new pay scales that will be in effect during fiscal year 1982.
5/ An additional pay raise of 5.3% is proposed to be effective in July 1981.
6/ Average rate on new issues within period. The projections assume that interest rates decline with the rate of
inflation and inflationary expectations. The projections do not represent a forecast of interest rates.
-14Budget
Receipts
Under
the Administration's budget reform plan, receipts would be
substantially lower than the January estimates.
These reductions
are the net effect of policy changes, administrative actions, the
revised
economic
forecast,
and
technical
reestimates.
The
revised estimate of 1981 receipts is $600.3 billion, $7.2 billion
below
the January
budget
estimate.
Receipts
in
1982
are
estimated at $650.3 billion, $61.4 billion less than the
January
estimate
of
$711.8 billion.
Estimates of receipts are $100 to
$248 billion lower in 1983-1986.
Substitution
of
the Administration's
proposals
for
those
presented in the January budget reduces receipts by $11.1 billion
in
1981,
$56.6 billion
in
1982,
and $195.9 billion by 1986.
Administrative actions, which include the immediate decontrol
of
crude oil prices and the electronic funds transfer of payments of
alcohol
and
tobacco
excise
taxes,
increase
receipts by $3.7
billion in 1981 and $0.5 billion in 1982. The
revised
economic
forecast,
primarily
lower
inflation,
reduces receipts by $4.3
billion in 1982 and by
increasing
amounts
in each
subsequent
year.
Receipt
Proposals
Proposed
reductions
in individual income tax rates and business
taxes are an
integral
part
of
the Administration's
economic
recovery
program.
These
reductions
are designed to encourage
work, saving, and investment, which will
strengthen
the
growth
and
productivity of the economy and result in higher incomes and
balanced budgets
in
later
years.
The
proposed
changes
are
described briefly below.
Individual income tax r e d u c t i o n s . — T h e
Administration
is
proposing that marginal tax rates for individuals be
reduced
by
10%
each
year for the next three years, beginning July 1, 1981.
Compared with present law, tax rates would be reduced by
5%
for
calendar
year 1981, 15% for calendar year 1982, 25% for calendar
year 1983, and 30% for calendar year 1984. As a result, marginal
tax rates would be reduced from their present range of 14 to
70%
to
a
range of 10 to 50% effective January 1, 1984.
Withholding
rates would be reduced by 10% on July 1, 1981.
For
all
years
after 1981, the percentage reduction in withholding rates and tax
schedule
rates would be the same.
These proposed reductions in
individual income tax rates are estimated to reduce
receipts
by
$6.4 billion
in 1981, $44.2 billion in 1982, and $162.4 billion
by 1986. As a result, individual income taxes rise
at
a
10.2%
annual
rate
from 1981-1986, compared with an annual increase of
16.6% under current law.
Depreciation r e f o r m . — T h e
proposed
Accelerated
Cost
Recovery
System would provide for faster write-off of capital expenditures
under
simplified
and
standardized rules.
Under this proposal,
the following classes of plant and equipment are identified, each
with a standard schedule of deductions to be taken over
a
fixed
recovery period:
Table 7 . — C H A N G E IN BUDGET RECEIPTS
(in billions of dollars)
January budget
Pol icy changes:
Removal of Carter administration
proposals
Individual income tax reductions..
Depreciation reform
Reform of Federal employee
injury compensation
User charges
Other proposals 1/
Actual
1980
1981
1982
520 .0
607.5
711.8
809.2
-2.5
-6.4
-2.5
-5.3
-44.2
-9.7
17.8
15.1
7.9
15.0
- 8 1 . 4 -118.1 -141.5 -162.4
-18.6
-30.0 -44.2 -59.3
*
0.1
2.1
0.4
0.2
*
Subtotal, policy changes
Administrative actions 2/
Revised economic assumptions
Technical reestimates
Revised budget
520.0
Estimate
1984
1983
0.1
2.4
0.5
1985
1986
922 .3 1052.6 1188.5
0.1
2.7
0.5
0.1
3.1
4.4
0.1
3.4
4.5
-89.2 -129.8 -163.2 -195.9
-11 .1
3.7
0.4
-0.4
-56.6
0.5
-4.3
-1.0
*
*
*
*
-10.3
-0.5
-21.8
0.1
-40.2
0.7
-54.9
2.5
600.3
650.3
709 .1
770.7
849.9
940.2
l/ These proposals include extension of highway trust fund taxes
scheduled
to
expire
September 30,
1984,
an
increase
in railroad retirement payroll taxes, and increases in
passport and visa fees.
2/ These estimates include gross windfall profit tax receipts resulting from
immediate
decontrol
of crude oil prices and a speed up in collections of tobacco and alcohol excise
taxes resulting from the electronic funds transfer of payments.
*
$50 million or less.
-16-
—
3-year p r o p e r t y . — T h i s class consists of autos and light
trucks plus machinery and equipment used in research and
development.
Expenditures for
these
assets would
be
written-off
in
3 years
according
to
an accelerated
schedule.
An investment credit of 6% would be
allowed,
which is an increase of 2-1/2 percentage points over the
credit allowed under present law.
—
5-year p r o p e r t y . — T h i s class consists of other machinery
and equipment, except
for
certain
long-lived
utility
property.
After
a phase-in
period, property in this
class would be written-off according to an
accelerated
5-year
schedule.
The
full
10% investment tax credit
would apply for property in this class.
—
10-year p r o p e r t y . — T h i s
class
consists
of
factory
buildings,
retail
stores,
and warehouses, and public
utility property for which present guidelines exceed
10
years.
After a phase-in period, property in this class
would be written-off according to an accelerated 10-year
schedule.
As under
present
law,
the
10%
investment
credit
would
apply
to the public utility property in
this class but not to the structures.
Standard lives and depreciation methods also are established
other classes of depreciable real estate:
for
—
15-year p r o p e r t y . — T h i s
class
consists
of
non-residential
structures
not included in the 10-year
class described above, and
low-income
rental
housing.
After an initial phase-in period, these structures would
be written-off in 15 years on a straight-line basis.
—
18-year p r o p e r t y . — O t h e r residential structures would be
written-off on a straight-line basis over 18 years.
This system of accelerated depreciation, proposed to be effective
for new and used property acquired or placed
in
service
after
December 31, 1980,
is
estimated
to
reduce
receipts
by
$2.5
billion in 1981, $9.7 billion in 1982, and increasing amounts
in
subsequent years.
As part
of
its
effort
to reform the Federal employees injury
compensation program, the Administration
proposes
to make
the
entire
amount of benefits received under this program subject to
the Federal income tax.
This proposal is estimated
to
increase
receipts by $18 million in 1981 and $0.1 billion in 1982 and each
year thereafter.
The Administration
is proposing
an
increase in aviation user
taxes and an increase in user fees for barge operators
beginning
July
1,
1981.
These
charges
are proposed to recover through
governmental receipts most of the Federal costs
associated
with
the
safe and efficient movement of air traffic, the operation of
waterways, and
the
construction
of
new
facilities
on
these
waterways.
A proposal
to
levy user charges on yacht and boat
owners and a proposed increase in fees paid by users of deepwater
-17-
ports are classified
as proprietary
receipts
and
are
offset
against
outlays in the transportation
and natural resources and
environment functions.
The revised estimates also reflect the following proposals, which
were included in the January budget:
extension of highway
trust
fund
taxes
that
are scheduled to expire September 30, 1984; an
increase
in
railroad
retirement
payroll
taxes
to
alleviate
funding
problems
of
the
Railroad
Retirement
trust fund; and
increases in passport and visa fees.
The Credit Budget and Off-Budget
Outlays
In the last decade, rapid growth of Federal
credit
activity
both
direct loans and loan guarantees — has had serious effects
on the Nation's economy
and
on
financial
markets.
For
this
reason,
rigorous control over Federal credit programs, including
loans
financed
off-budget,
is an
important
part
of
the
President's
budget reform plan.
The criteria used in developing
proposed
reductions
in
credit
and
off-budget
activity
are
identical
to those
used
for on-budget expenditure reductions.
For example, special scrutiny has been applied to certain
credit
programs, such as the guaranteed student loan program and certain
housing
programs, that provide benefits to those with middle and
upper incomes.
Attention has also been given to credit
programs
that
were designed to promote economic development, but have had
either little
or
no measurable
results
or have
exacerbated
existing
problems
by interfering with the efficiency of private
financial markets.
The Credit
Budget
The application of
the
economic
criteria
of
the
President's
reform plan to Federal credit programs has led the Administration
to propose
substantial
reductions in the size and scope of the
Federal credit budget.
The Administration
will
work with
the
Congress to control credit programs in two ways:
—
by proposing annual appropriation
bill
limitations
on
new obligations for direct loans and on new commitments
for loan guarantees; and
by
proposing
changes
to
the
basic
authorizing
legislation for programs that are not acted on in annual
appropriations
bills.
Without
fundamental changes to
authorizing legislation, certain entitlements to Federal
credit will remain relatively uncontrollable.
Revised totals for direct loan
obligations
and
loan
guarantee
commitments
are
$13.6 billion below the adjusted January budget
for 1981 and $21.0 billion below for 1982.
The
revised
totals
for
direct
loan
obligations
are $2.6 billion below January in
1981 and
1982.
Total
loan
guarantee
commitments
are
$11.0
billion
below
the
adjusted
January
total
in
1981 and $18.4
billion lower in 1982.
Table 8 . — S U M M A R Y OF CREDIT BUDGET TOTALS
(in billions of dollars)
1981 Estimate
January
Revised
Change
New direct loan
On-budget
Off-budget
1982 Estimate
January
Revised
Change
obligations:
Total new direct loan
obligations, gross
Less new FFB purchases of
loan assets
Total direct loan obligations,
net
New loan guarantee commitments:
Commitments, gross
Less secondary guarantees and
guaranteed loans held as direct
loans
Total primary
commitments
Total credit budget
42.1
32.2
38.6
32.6
-3.5
0.4
34.1
26.1
32.9
22.7
-1.2
-3.4
74.2
71.2
-3.0
60.2
55.6
-4.6
-16.6 a/ -16.2
0.4
-8.2 a/
-6.2
2.0
55.0
-2.6
52.0 a/
49.4
-2.6
202.1 b/ 184.7
-17.4
196.4 b/ 168.7
-27.7
57.6 a/
-105.9
-99.5
6.4
-99.5
-90.2
9.3
guarantee
96 . 2 b/
153.8
85 .2
140.2
-11.0
-13.6
96 .9 b/
148.9
78 . 5
127.9
-18 .4
-21.0
a/ The direct loan obligation
totals
published
in the
January
budget
have
been
adjusted
downward
by
$16.6 billion in 1981 and $8.2 billion in 1982 to eliminate double
counting of purchases of loan assets by the Federal Financing Bank.
b/
The loan guarantee commitment totals published in the
January
budget
have
been
increased by $5.1 billion in 1981 and $4.5 billion in 1982 to correct technical errors.
Proposed reductions * — F e d e r a l credit programs
would
be
reduced
primarily
as
a result of applying three of the criteria used in
shaping the President's economic plan.
First,
proposed
changes
resulting
from
the
application
of
sound economic criteria to
subsidy programs reduce direct loan obligations by
$2.7
billion
in
1981
and
$5.1 billion in 1982. Guaranteed loan commitments
would be reduced by $4.6 billion in 1981 and $5.4 billion in 1982
below the January budget levels.
The following subsidy
programs
would be affected:
Rural and agricultural
reduced by:
development
programs
would
be
$89 million in 1981 and $2,650 million 1/ in 1982 in
direct loan obligations for the agricultural
credit
insurance
fund
in the Farmers Home Administration
(FmHA).
Decreases are primarily for farm
ownership
and
emergency
disaster
loans.
Loan
guarantee
commitments for this program would be
increased
by
$100 million.
The reductions in direct loans result
in decreases
in
loan guarantee commitments of $76
million in 1981 and $1,139 million in 1982 for sales
of
certificates
of beneficial
ownership
to
the
Federal Financing Bank (FFB).
$316 million in 1981 and $649 million
in
1982
in
direct loan obligations and $274 million in 1981 and
$517 million in 1982 for loan guarantee commitments
fund.
The
latter
for the rural housing insurance
are
due
to
decreases
in sales of certificates of
beneficial ownership to the Federal Financing
Bank.
These
reductions
will not significantly affect the
poorest
households
and
communities.
FmHA
would
narrow
its focus to serve borrowers who lack access
to other credit sources,
rather
than
serve
as
a
source of below-market interest rate loans to a wide
variety
of private, credit-worthy borrowers.
Under
this approach, housing
programs
serving
the
very
poor would
receive
smaller
reductions than those
that provide homeownership loans to moderate
income
families.
$187 million in 1981 and $400 million
in
1982
for
Rural
Electrification
Administration
(REA) direct
loan obligations and a $100 million increase in 1982
for REA loan guarantee commitments
to
replace
REA
direct
5%
loans
to generation
and
transmission
cooperatives.
The FFB will no longer provide direct
lending with REA guarantees to
electric
generation
1/
Subsequent to the revision of the credit
budget
data
base
and
calculation
of
final
credit
budget
totals,
it was
learned that the correct figure for the
reduction
in
1982
direct
loan
obligations
for the
agricultural
credit
insurance fund is $1.3 billion.
-20-
and
transmission
cooperatives
and
to
telephone
companies
and
cooperatives.
The
REA
has
substantially
accomplished its purpose of providing
concessional financing to make
available
electric
and telephone service to rural areas.
These changes
shift most
of the financing for rural electric and
telephone facilities currently assisted by
REA
and
the
FFB
from
direct
Federal lending to privately
originated loans with REA guarantees.
$160 million in 1981 and $130 million
in
1982
in
direct
loan obligations and $500 million in 1982 in
loan
guarantee
commitments
in
rural
development
programs
in FmHA
as
a result
of
the
proposed
elimination
of
the business
and
industry
loan
program in FmHA.
This does not include further cuts
of
$275 million
that would
result from proposed
legislation.
$25 million in 1981 and $100 million in 1982 in
the
storage
facility
loan program of the Department of
Agriculture.
—
Other proposed reductions in the commerce
development subsidy programs are:
and
economic
$50 million in 1981 and
$116 million
in
1982
in
direct loan obligations and $262 million in 1981 and
$425 million
in 1982 in loan guarantee commitments
by
eliminating
the
Economic
Development
Administration (EDA). There is a lack of convincing
evidence
that
EDA programs have been effective in
creating new jobs and attracting capital
investment
to distressed areas.
$126 million in 1981 and $133 million
in
1982
in
direct
loan obligations by eliminating the National
Consumer Cooperative Bank.
Successful
cooperatives
can obtain
adequate private credit, and the use of
scarce budgetary resources to subsidize
inefficient
cooperatives cannot be justified.
$45 million in 1981 and
$116 million
in
1982
by
reducing
direct
lending
of
the
Small
Business
Administration.
Guarantee commitments for SBA would
be reduced by $990 million in 1981 and $1.5
billion
in
1982.
The
decrease
for
SBA
direct
loan
obligations for disasters is $780 million
in
1981
and $50 million in 1982.
—
Proposed reductions
in energy
subsidy
programs
will
allow
normal market forces to achieve rapid development
of the most
efficient
new
energy
technology
and
to
promote
energy
conservation.
Direct loan obligations
would be reduced by $90 million in 1981 and $94
million
in 1982. Loan guarantee commitments would be reduced by
-21-
$1.9 billion in 1981 and $233 million in 1982 in biomass
and geothermal energy development programs.
—
Direct loan
obligations
for
exports would be reduced by:
programs
that
subsidize
$752 million in 1981 and $600 million
in
1982
by
in the Export-Import Bank.
Loan
program
changes
guarantee
commitments would
be
reduced
by
$1.0
billion
in
1981
and
$1.2 billion in 1982.
These
reductions
are proposed
because
restoration
of
general
economic health in the U.S. economy will be
a more powerful stimulant to export
expansion
than
costly subsidized loans.
$76 million in 1981
and
$70 million
in 1982
in
direct loan obligations as a result of reductions in
very
low
interest
loans for exports of food under
Public Law-480.
In
light
of
the
current
rising
trend
in
commercial
agricultural
exports and the
need to target foreign aid on the highest
priority
objectives,
this
substantial
subsidy is no longer
justified.
Second, the effort to reduce subsidies to middle and upper income
families reduces
primary
loan
guarantee
commitments by
$4.8
billion
in
1981
and
$9.0 billion
in
1982.
Secondary loan
guarantee commitments would be reduced by $7 billion in 1981
and
$9.6 billion in 1982.
Loan guarantee commitments for the Federal Housing Administration
(FHA) mortgage insurance program would be reduced by $4.8 billion
in
1981
and
$9 billion in 1982. Government National Mortgage
Association (GNMA) guarantees of mortgage-backed securities would
be reduced by $8 billion in both 1981 and 1982. While
the
GNMA
tandem mortgage assistance program is proposed to be terminated,
an increase in mortgage purchase commitments of $3.3 billion over
the January totals will be made in
1982 to provide
subsidized
mortgages
for projects
processed before February 13, 1981 that
satisfy tandem program criteria.
These overall lower
levels
of
activity
for Federal housing credit reflect downward reestimates
in the number of newly constructed HUD subsidized
housing
units
for
1981
and
1982,
and
a slower expected rate of increase in
single family Federal mortgage insurance activity.
The estimates
also
reflect
the
effort
to
focus
Federal
housing
credit
assistance
only on those segments of the housing market that are
not served by the private market.
The Administration proposes
that
the Department
of
Education
guarantees
of
obligations
of the
Student
Loan
Marketing
Association (SLMA) be increased
by
$1.0 billion
in 1981
and
decreased by $1.4 billion in 1982. The Department of Education's
authorization
to guarantee
the
obligations
of
SLMA would be
terminated in 1982 to curtail further use of off-budget financing
through the Federal Financing Bank (FFB). Access to the FFB
was
intended to enable SLMA to expand its loan purchasing and attract
adequate
private
capital
into the guaranteed
student
loan
-22-
program.
However, SLMA is not prepared to begin raising funds in
private
credit
markets
during
1982.
Its
current
financial
condition
is
sufficiently
strong
to allow
SLMA to go wholly
private
thereafter.
The Administration's
budgetary
proposal
provides
sufficient
interim
capital
to
SLMA
to ensure this
transition without interruption of SLMA's scheduled financing.
Other proposed reductions in education are $30 million
in
1981
and
$45 million
in 1982 in direct loan obligations for college
housing.
Collections of principal on past loans, which have been
used to make new loans, will help provide
adequate
funding
for
future lending.
Third,
the
President's
budget
reform
plan
imposes
fiscal
are
in
restraint on a number of credit assistance programs that
the
national
interest but cannot be accorded an urgent priority
in light of the need to curtail
the
effects
of
large
Federal
demands
upon
the Nation's
financial
markets.
Direct
loan
obligations would
be
reduced
by
$0.8
billion
in
1981.
Commitments
for loan guarantees would be reduced by $1.0 billion
in 1981 and $3.6 billion in 1982.
—
Loan guarantee commitments
for
programs would be reduced by:
less
essential
credit
$100 million in 1981 and $250 million
in
1982
for
aircraft
purchase
loan
guarantees.
In addition,
beginning in 1982 eligibility
for
loan
guarantees
will
be
limited
to
commuter
airlines^ which
traditionally
have
the most
difficulty
getting
financing from private institutions.
$300 million in 1981 and $350 million
in
1982
loan
guarantee
commitments
for
assistance
merchant shipbuilding.
for
to
$0.6 billion in 1981 and $2.6 billion
in
1982
for
loan
guarantee
commitments
for public housing and
construction.
This reduction is part of the general
effort to reduce the growth in the number
of
units
of
federally
subsidized housing.
This action will
substantially decrease Federal investment in
future
years while
maintaining essential housing benefits
to the most needy.
Direct loan obligations would be reduced by:
$40 million in 1981 for the
coastal
energy
impact
program
in the National
Oceanic
and Atmospheric
Administration.
Activities under this
program
can
be
undertaken by States and localities on their own
or deferred.
$152 million in 1981 and $215 million
in
1982
by
eliminating
the
rehabilitation
loan
fund
in the
Department of Housing and Urban Development
because
it
unnecessarily
duplicates
the
much
larger
-23-
rehabilitation efforts of the community
block grant program.
development
A net reduction of $358 million in 1982 is proposed
for
foreign
military
sales
credit
guarantees
of Federal
Financing
Bank
direct
lending.
This
action
will
decrease
FFB
off-budget
direct loans.
An increase of
$632 million in direct loan obligations in 1982
is
due
to
increased
assistance to governments critical to the
security of the United States.
Other reductions in direct loan obligations
$91 million in 1981 and
$96 million
several veterans insurance funds.
are:
in
1982
for
$75 million in 1982 to the District of Columbia
capital investment.
for
-24Table 9 . — C H A N G E S IN NEW DIRECT LOAN OBLIGATIONS,
(in billions of dollars)
1981-1982
1981
January budget totals
Less FFB purchases of loan assets
Adjusted January totals
Policy reductions:
Security assistance
Export-Import Bank
Foreign assistance - P.L. 480
Biomass and geothermal energy development....
Rural Electrification Administration
Price support and commodity loans
Agricultural credit
Mortgage purchase activity (GNMA)
Rural housing
National Consumer Cooperative Bank
Housing rehabilitation programs
Rural development
Economic development assistance
Small business
Student assistance
Veterans programs
District of Columbia
Federal Financing Bank
Other
Subtotal, policy reductions
Revised total, direct loan obligations
74.2
-16 .6 a
1982
60.2
-8 . 2 a
57.6
52.0
-0.5
-0.8
-0.1
-0.1
-0.2
-*
-0.1
0.6
-0.6
-0.1
0.1
-0.4
-0.1
-2.6^
3.3
-0.6
-0.1
-0.2
-0.1
-0.1
-0.2
-0.1
-0.1
-0.1
-1.0
-*
-0.3
-0.1
-0.2
-0.2
-*
-0.8
-*
-0.2
1.0
-*
-2.6
-2.6
55.0
49.3
a/ The totals published in the January
budget
have
been
adjusted
downward
by
$16.6 billion in 1981 and $8.2 billion in
1982 to eliminate double counting of purchases of loan assets
by
the Federal Financing Bank.
to the
revision of the credit budget data
b/
Subsequent
base and calculation
of
final
credit
budget
totals,
it
was
learned
that the correct figure for the reduction in 1982 direct
loan obligations for the agricultural credit
insurance
fund
is
$1.3 billion.
*
$50 million or less.
-25-
Table 1 0 . — C H A N G E S IN NEW LOAN GUARANTEE COMMITMENTS,
(in billions of dollars)
January budget totals
Reestimates and corrections:
TVA
Biomass energy development
Adjusted January totals
1981-1982
1981
1982
91.1
92.4
3.4
1. 7
96.2a/
4.5
96.9a/
Policy reductions:
Security assistance
International development
Export-Import Bank
Biomass and geothermal energy development....
Rural Electrification Administration
Agricultural credit
Mortgage purchase activity (GNMA)
Mortgage credit (FHA)
Rural housing
Small business
Aircraft programs
Rural development
Assistance to merchant shipbuilding
Student assistance
Public housing
Economic development
Other
-*
-1.0
-1.9
-*
-0.1
-8.0
-4.8
-0.3
-1.0
-0.1
-*
-0.3
1.0
-0.6
-0.3
-*
-0.4
-0.2
-1.2
-0.2
0.1
-1.0
-8.0
-9.0
-0.5
-1.5
-0.2
-0.5
-0.4
-1.4
-2.6
-0.4
-0.2
Subtotal, changes in gross loan guarantee
commitments
-17.4
-27.7
6.4
9.3
Changes in deductions for secondary
guarantees and guarantees held as
direct loans
Subtotal, policy reductions
Revised total, loan guarantee commitments
-11. 0
-18.4
85.2
78.5
a/
The
loan
guarantee commitment totals published in the
January budget have been increased by $5.1 billion
in
1981
and
$4.5 billion in 1982 to correct technical errors.
*
$50 million or less.
338-780 0-81-2
-26Changes in Off-Budget Outlays Due to Credit Activities
The
Federal
Financing
Bank
(FFB) accounts
for almost all of
off-budget net outlays.
The FFB was designed in
1974
primarily
to provide
an efficient
method
for financing certain Federal
agency borrowing.
However,
the operations
of
the FFB
have
weakened
budgetary
control over
Federal credit programs.
The
Administration is proposing broad
reform
of
Federal
Financing
Bank
operations
and
substantial decreases in Federal Financing
Bank loan outlays.
Proposed reductions in total FFB lending are estimated to be $0.2
billion in 1981 and $3.2 billion in 1982. Major
reductions
are
discussed above under the credit budget.
They include lending to
or on behalf
of the Farmers Home Administration, Student Loan
Marketing Association, and Rural Electrification
Administration.
Changes in off-budget outlays are shown on Table 11.
Table 1 1 . — C H A N G E S IN OFF-BUDGET OUTLAYS
(in billions of dollars)
January budget estimates
Reestimates and revisions:
Federal Financing Bank:
Low-rent public housing
Other
Postal Service
Proposed policy changes:
Federal Financing Bank:
Rural Electrification Administration..
Farmers Home Administration
Student Loan Marketing Association....
Other.
Revised budget estimates
*
$50 million or less.
1982
1983
1984
1985
1986
23.2
18.3
15.3
14.7
15.3
16.9
-0.4
0.4
1. 6
0. 1
1. 5
1 .7
0 .1
0 .4
2.6
0.2
0.5
2 .5
- 1 .1
0 .5
2 .5
-1 .7
0 .5
*
3. 1
2 .2
3.2
1 .8
1 .2
-0.4
1.0
-0.2
-1. 2
-1. 7
-1. 4
-0. 5
- 2 .4
-1 .7
-2 .2
- 0 .6
-3.7
-1.6
-2.5
-0.7
- 5 .1
-1 .6
- 2 .5
- 0 .6
-6 .6
-1 .9
-2 .5
- 0 .6
0.4
-4. 7
-6 .9
-8.5
-9 .8
-11 .6
23.6
16. 7
10 .7
9.5
7 .4
6 .5
*
Subtotal, reestimates
Subtotal, proposed policy
1981
changes
-28-
Debt
The budget
deficits
now
estimated for 1981 and 1982, together
with the deficits of the
off-budget
Federal
entities
and
the
other
factors
involved
in budget
financing, require that the
Federal Government borrow $71.0 billion from the public
in
1981
and
$60.0 billion in 1982. By the end of 1982, debt held by the
public is estimated to be $846.1 billion and gross
Federal
debt
to be
$1,075.4 billion.
The total borrowing from the public
during 1981 and 1982 is estimated to be $14.0 billion
more
than
in the January
budget.
This
is primarily
because
the tax
reductions needed
in
1982
to provide
economic
stimulus
are
greater
than the
cuts in budget outlays and off-budget Federal
spending.
The following table shows the relationship
between
the
Federal
deficits,
the
change in debt held by the public, and the change
in gross Federal debt.
Table 1 2 . — B U D G E T FINANCING AND DEBT
(in billions of dollars)
Actual
1980
1981 Estimate
January
Revised
Budget
Budget
1982 Estimate
January
Revised
Budget
Budget
-59.6
-14.2
-55.2
-23 .2
-54.9
-23 .6
-27.5
-18.3
-45.0
-16.7
3.3
6.4
7.5
0.8
1.7
Change in debt held by the public
Change in Federal agency investments in
Federal debt
70.5
72.0
71.0
45.0
60.0
10.1
6.1
7.3
20.3
22.8
Change in gross Federal debt
80.6
78.1
78.3
65.2
82.8
914.3
992.4
992.6
1057.7
1075.4
199.2
715.1
205.3
787.1
206.5
786.1
225.6
832.1
229.3
846.1
908.7
987.3
987.4
1053.6
1071.2
Budget surplus or deficit ( - )
Deficit(-), off-budget Federal entities
Means of financing other than borrowing
the public
Outstanding debt, end of year:
Gross Federal debt
Held by:
Government agencies
The public
Debt subject to statutory limit
from
-30Federal Civilian Employment
The President demonstrated his commitment to reducing
the
level
of
Federal
civilian employment when h e signed an order freezing
Federal civilian hiring as his first official act
following
his
inauguration.
As part
of
the preparation of the revised budget, new civilian
personnel ceilings for 1981 and
1982 were
developed
for
each
agency.
These personnel
ceilings are significantly lower than
those planned in the January budget. As the heads
of
agencies
adopt
specific
plans
to meet the revised ceilings, they may be
able to modify or lift the hiring
freeze.
These
actions
will
complete
one phase of the Administration's effort to reduce the
size and cost of the Federal work
force
and
to
increase
its
efficiency.
The
new,
lower personnel
levels should increase
productivity by encouraging a more efficient use of personnel.
The following table compares, by major
agency,
employment
estimates
in the January
budget
estimates.
the
end-of-year
to the
revised
Employment in nondefense agencies would
be
reduced
by
32,900
positions
in
1981
and by
63,100 positions
in 1982 from the
January budget estimates.
As part of the Administration's
proposed
increases
in
budget
resources
devoted
to
national defense, civilian employment for
the Department of Defense would be
14,000
positions
higher
in
1981
and
20,000 higher in 1982 than the levels proposed in the
January budget.
A table showing full-time permanent
employment
estimates
on
full-time equivalent (workyear) basis is provided in Part 5.
a
Table 1 3 . — T O T A L FEDERAL CIVILIAN EMPLOYMENT — EXECUTIVE BRANCH
(Excluding the Postal Service; End-of-Year)
Agriculture
Commerce
Defense-Military
Defense-Civil
Education
Energy
Health and Human Services
Housing and Urban Development
Interior
Labor
State
Transportation
Treasury
Environmental Protection Agency...
National Aeronautics and Space
Administration
Veterans Administration
Other:
General Services Administration
International Communication
Agency
International Development
Cooperation Agency
Nuclear Regulatory Commission..
Office of Personnel Management.
Panama Canal Commission
Small Business Administration..
Tennessee Valley Authority
Subtotal
Contingencies
Expected lapse
Total
January
Budget
1981
Revised
Budget
129,200
39,200
916,000
31,900
7,200
21,500
154,500
16,400
77,000
55,900
23,500
23,400
71,800
125,000
14,800
125,000
37,300
930,000
31,900
6,800
20,300
160,100
15,500
75,000
54,700
21,900
23,400
68,800
120,900
14,100
-4,200
-1,900
14,000
23,800
216,700
January
Budget
1982
Revised
Budget
Change
-3,000
-4,100
-700
132,300
43,100
916,000
34,700
6,900
21,700
155,300
16,800
78,700
56,500
23,500
23,700
72,200
128,300
15,500
126,000
39,600
936,000
32,100
6,400
18,400
155,500
15,300
74,300
54,100
21,800
23,200
67,500
121,200
13,800
-6,300
-3,500
20,000
-2,600
-500
-3,300
200
-1,500
-4,400
-2,400
-1,700
-500
-4,700
-7,100
-1,700
23,300
212,000
-500
-4,700
23,800
217,200
23,200
208,000
-600
-9,200
35,500
33,700
-1,800
36,200
33,300
-2,900
8,100
7,700
-400
8,100
7,700
-400
6,100
3,500
7,400
8,700
5,000
49,000
45,900
5,900
3,400
7,400
8,600
4,700
45,500
43,200
-200
-100
6,100
3,600
8,000
8,600
5,000
48,000
47,700
5,800
3,500
7,400
8,500
4,500
44,000
44,300
-300
-100
-600
-100
-500
-4,000
-3,400
Change
-400
-1,200
5,600
-900
-2,000
-1,200
-1,600
-100
-300
-3,500
-2,700
2,117,000 2,101,000 -15,900 2,137,500 2,095,400 -42,100
2,000
1,000
-1,000
2,000
1,000
-1,000
-8,000
-8,000
-8,000
-10,000 -2,000
2,111,000 2,092,100 -18,900 2,131,500 2,088,400 -43,100
-33-
Part 3
BUDGET AUTHORITY A N D OUTLAYS BY FUNCTION,
1980-1982
The budget
resources
devoted
to meeting
national
needs
are
classified
by functions so that budget authority and outlays can
be
grouped
together
according
to purpose.
To the
extent
feasible,
these
groupings
are made without regard to agency or
other organizational di stinctions. These categories are used
by
the
Congress
in developing
the
concurrent resolutions on the
budget.
This part contains separate sections
for
each of
the
budget
functions
on
1981 and 1982 estimates.
Part 4 discusses
the projections for 1983 through 1986 for each function.
-34050:
NATIONAL DEFENSE
($ billions)
Actual
Estimate
1980
1981
1982
Budget Authority
January budget
Department of Defense-Military:
Reestimates and revised economic
assumptions:
Military retired pay
All other
Policy reductions:
Civilian pay
All other
Policy increases:
Military pay
All other
Atomic energy defense activities
Defense-related activities
145.8
Revised budget
17 3.9
200.3
-*
-0.8
-0.2
-2.1
-0.5
-0.1
-1.9
0.4
7.7
*
1.9
28.6
0.3
-0.5
145.8
180.7
226.3
January budget
Department of Defense-Military:
Reestimates and revised economic
assumptions:
Military retired pay
All other
Policy reductions:
Civilian pay
All other
Policy increases:
Military pay
All other
Atomic energy defense activities
Defense-related activities
135.9
161.1
184.4
-*
-2.6
-0.2
-3.4
-0.3
-0.2
-0.9
0.4
3.5
*
*
1.9
7.6
0.1
-0,5
Revised budget
135.9
162.1
188.8
Outlays
*
$50 million or less.
The budget authority
now requested
for the national
defense
function
for 1982 is $25.8 billion higher than that requested in
the January budget. Outlays for 1982 are estimated
to be
$4.3
billion higher.
This is due to program increases totaling $9.6
-35-
billion in outlays, partly offset by
$3.6 billion
reestimates and planned reductions of $1.6 billion.
Department of
in
downward
Defense-Military
Reestimates.—Defense
outlays
and budget
authority
have been
reestimated to reflect the economic assumptions contained in this
document.
Lower projected inflation has reduced projected
costs
of defense
purchases
and military
retired pay cost-of-living
adjustments.
In addition, prior to any policy
modifications
to
the
January
budget,
outlays
under
existing
contracts
were
reestimated downward by $2.3 billion for 1981
and
$2.2
billion
for 1982 on the basis of recent spending patterns.
Proposed r e d u c t i o n s . — S a v i n g s of $0.2 billion in 1982 in civilian
employment payroll costs, and larger amounts in subsequent years,
are
estimated
for
the Administration's proposed changes in the
method
used
to
calculate
Federal
pay
raises.
Under
this
proposal, a pay raise of 4.8% is estimated for civilian personnel
for 1982, rather than the 5.5% assumed in the January budget.
Savings
of
$0.7 billion
a year beginning in 1983 are expected
from the withdrawal of most
of
the previous
administration's
proposals
to alter the military retired pay system.
The January
budget proposal to shift from semi-annual to annual indexation of
retired pay benefits is retained, however, and this
proposal
is
now
estimated
to
save $0.4 billion in 1982 compared to current
law.
The Administration proposes other reductions
estimated
at
$1.9
billion
in budget authority and $0.9 billion in outlays in 1982,
and larger amounts in subsequent years.
These reductions involve
realignment of the defense installation and
logistics
structure
that would reduce its over-all size, and, where appropriate, make
greater
use
of
contractual
services
instead
of
in-house
Government activities.
Travel costs and the use
of
consultants
will
also be
reduced, and a variety of management improvements
will be undertaken to improve acquisition procedures.
The latter
include multi-year procurements permitting substantial
economies
due
to early
assurance
of longer production runs; ordering in
more
economic
quantities,
and
increased
competition
in
the
awarding
of
contracts;
termination
of weapon systems that are
excessively
costly
in relation
to mission
requirements
or
peripheral
to
our
defense
requirements;
and
emphasis
on
investments
that
improve productivity
both
in the
defense
industrial base and in Government-operated facilities.
Proposed i n c r e a s e s . — T h e Administration proposes a 5.3% pay raise
for military
personnel
in July
1981, in addition to the 9.1%
October 1981 pay raise
assumed
in
the January
budget.
This
higher
military
pay will
reduce
the outflow
of experienced
personnel from the armed services.
This
adds
$1.9 billion
to
military
pay
in
1982,
compared
to the amount provided in the
January budget.
-36Increased funding in other areas amounting to
$28.6 billion
in
budget
authority
and
$7.6 billion
in outlays
in
1982 will
strengthen strategic
forces,
improve military
readiness,
and
accelerate modernization of combat forces.
The major program initiatives for strategic forces include a new
manned bomber, improvements in tanker aircraft, additional cruise
missiles, and improvements in command and control systems.
The readiness of U.S. forces will be improved by providing
funds
for
additional
spare
parts
needed to sustain higher operating
rates and fill war reserve needs, and for
additional
ammunition
for
training
and war reserve requirements.
Higher military pay
rates will
also
contribute
to readiness
by
attracting
and
retaining skilled military manpower.
Our
ability to deploy forces in remote areas, such as the
Ocean and Persian Gulf, will be improved by
increases
in
surface
forces,
including
reactivation
of battleships
aircraft carrier.
Special equipment would be acquired to
combat
forces to operate in hostile environments, such as
warfare.
Indian
naval
and an
enable
desert
Modernization of conventional forces would be accelerated by more
rapid procurement of new Army equipment, including new tanks, air
defense systems, helicopters, and ammunition; naval aircraft
and
air-defense
and missile-launching systems for surface ships; and
Air Force aircraft, missiles, and ammunition.
Intelligence
capabilities
will
be
strengthened
by
providing
increased
funding
for personnel,
processing,
and information
collection capabilities.
Other National
Defense
Proposed i n c r e a s e s . — E s t i m a t e s
for
atomic
energy
defense
activities have increased by $0.3 billion in budget authority and
$0.1 billion
in outlays
for
1982,
primarily
for
necessary
improvements
to
the Nation's
nuclear
weapon's
production
facilities.
Proposed r e d u c t i o n s . — T h e
General
Services
Administration
maintains a stockpile of strategic
and
critical
materials
for
potential
defense
production
requirements.
In addition
to
currently required materials, the stockpile now contains about $6
billion worth of materials that have
been
declared
excess
by
defense
agencies.
The Administration proposes acceleration of
the sales of these excess materials to provide funds
for
future
acquisitions
of
required
materials
and
to
reduce
security,
rotation, and other storage costs of the excess
materials.
The
acceleration
of
sales would
increase receipts by $0.5 billion
over the estimate in the January budget for 1982.
-37-
150:
INTERNATIONAL AFFAIRS
(S 'billions)
Actual
Estimate
1980
1981
1982
Budget Authority
January budget
Reestimates:
Export-Import Bank
Policy reductions:
Development aid
International organization
assessments
Export-Import Bank
All other
Policy increases:
Security assistance
Other
15.5
25.2
19.6
-0.1
-*
-0.6
-1.7
-0.7
*
-0.2
-0.6
-0.1
*
0.9
*
Revised budget
15.5
23.7
17.9
January budget
Reestimates:
Export-Import Bank
Other (net)
Policy reductions:
Development aid
International organization
assessments
Export-Import Bank
All other
Policy increases:
Security assistance
Other
10.7
11.3
12.2
0.1
0.1
-0.4
0.1
-0.1
-0.3
-0.1
*
-0.2
-0.2
-0.1
*
0.1
*
Revised budget
10.7
11.3
11.2
Outlays
$50 million or less.
The revised budget proposals for international affairs include a
policy
increase to meet critical security assistance objectives,
but because
of offsetting
policy
reductions
and
downward
reestimates,
the
function
totals
for
1982 are well below the
January budget request. The Administration's
budget
authority
request
is $1.5 billion lower in 1981 and $1.7 billion lower in
1982 than the January budget levels. Outlays are estimated to be
-38approximately the same as the January budget for
billion lower in 1982.
1981
and
§1.0
Reestimates.—Reestimates
of
spending rates reduce 1982 outlays
on net by $0.3 billion below the January budget.
Of this amount,
$0.4 billion is
a downward
reestimate
of
Export-Import
Bank
outlays
due
to lower interest rates and slower disbursements on
aircraft loans.
Subscriptions to
the multilateral
development
banks
have
also been
reestimated
down
($-0.1 billion) since
January and partially offset an
upward
reestimate
of
exchange
stabilization fund outlays ($0.2 billion).
Proposed r e d u c t i o n s . — T h e
Administration proposals reduce budget
authority for international affairs by $1.4 billion in
1981
and
$2.6 billion
in 1982 below the January budget request.
Outlays
are estimated to be $0.2 billion lower in 1981 and
$0.8
billion
lower in 1982 as a result.
Reductions
are proposed
in development
programs to eliminate
lower
priority
activities.
Contributions
to
internationally
agreed
replenishments
of
the
funds
of
some
multilaterial
development banks will be stretched out in a manner
consistent
with
those
agreements.
Voluntary contributions to some United
Nations and other international organization programs and funding
for the Agency for International Development (AID), P.L. 480 food
aid, and the Peace Corps would be reduced from the levels in
the
January
budget.
Humanitarian programs, such as those providing
emergency disaster relief and food, would be maintained at
their
recent
levels.
The AID programs would be reoriented to assure
that they clearly
contribute
to the
ability
of
Third
World
countries to improve their economic performance.
Starting
in
1982 there will be a delay each year in the payment
of U.S. assessed contributions
to
international
organizations.
This
change will permit savings in the budget requests for 198285. For 1982, this shift would reduce the January budget request
by $0.2 billion in budget authority and outlays.
The Administration
proposal
to
reduce
the
long-term
lending
authority of the Export-Import Bank is part of the overall effort
to control the expansion of Federal credit programs, particularly
those
with an unneeded subsidy element.
The lower lending level
would still permit the Bank to offer substantial levels of credit
to exporters.
In addition to benefiting from regular,
long-term
direct
loans,
smaller
U.S.
exporters
would
continue
to
be
assisted by the Bank's medium-term discount
loan
program.
The
revised
budget
proposes
an authorization level of $0.4 billion
for the medium-term
loan
program,
while
the
January
budget
proposed
termination
of
this program.
The net effect of these
changes would reduce 1982 budget authority for the
Export-Import
Bank by
$0.6 billion
and
outlays
by
$0.2 billion below the
January budget request.
Other
proposed
reductions
include
cutbacks
in
International
Communication
Agency
activities and in the U.S. contribution to
International
Tin Agreement.
In
addition,
the
the
Sixth
proposals
would
reduce
the
Overseas
Private
Investment
-39Corporation 1 s loan guarantee program
lending.
and
terminate
its
direct
Proposed i n c r e a s e s . — T h e
Administration is proposing to increase
security assistance programs to
several
countries
as well
as
contingency
accounts.
Th^e
initiatives
would
increase 1982
budget
authority
by
$0.9 billion
above
the January
budget
request.
In addition,
the Administration plans to establish a
new revolving fund for procuring military equipment for
eventual
transfer
to other
countries
that would shorten lead times for
delivery of critical weapons systems.
Because
the
fund
would
receive
payments
well before they are paid out against military
equipment orders, the effect of the fund is to reduce outlays
in
the
international
affairs
function.
As
a result,
the
net
increase in security assistance outlays above the January
budget
is $0.1 billion in 1982.
The Administration
also proposes to increase funding for Radio
Free Europe/Radio Liberty through the appropriation to the
Board
for International Broadcasting to improve broadcasting to Eastern
European countries.
-40-
250:
GENERAL SCIENCE, SPACE, AND TECHNOLOGY
($ billions)
Actual
Estimate
1980
1981
1982
Budget Authority
January budget
Policy reductions:
NASA
National Science Foundation
Department of Energy general
science
6.1
6.6
8.1
-*
-0.1
-0.5
-0.3
-*
-*
Revised budget
6.1
6.5
7.2
5.7
6.3
7.6
-*
-*
-0.4
-0.2
6.2
6.9
Outlays
January budget.
Policy reductions:
NASA
National Science Foundation
Department of Energy general
science
-—
Revised budget
5.7
$50 million or less.
The Administration believes that Federal support for science
and
space
technology
is an
important
investment
in the Nation's
future. The policy changes proposed in this
function
for
1981
and
1982 permit
continuation of the highest priority programs,
but
reduce
those
that
cannot be
sustained
under
current
circumstances.
In 1982, the revised budget proposes $7.2 billion,
in
budget
authority,
an
increase
of
10%
from the
level
appropriated for 1981, but a reduction
of
11%
from
the
level
proposed
by
the previous administration. Estimated outlays are
$6.9 billion in 1982, a 9% reduction from the level estimated
in
January.
Proposed r e d u c t i o n s . — T h e
sharp
increase proposed for the space
programs of the National Aeronautics and Space Administration
in
the January budget
is incompatible with a program of overall,
restraint.
The revised budget authority request for
1982,
$5.6
billion, still provides the significant increase over 1981 needed
in the
space
shuttle program
to meet
civilian and critical
defense needs. The development and procurement of the
fleet
of
four
space
shuttle orbiters
and
the option
to buy a fifth
orbiter, if needed, will be maintained.
Slower
development
of
-41-
spacelab
and
elimination
of
funding
propulsion system are also proposed.
for
the
solar electric
For space science programs, the revised budget defers new
flight
projects
and projects initiated only recently, such as the gamma
ray observatory spacecraft,
the Venus orbiting
imaging
radar
project,
and spacelab experiments, while the solar polar mission
is continued at a reduced level.
Most
new
space
applications
programs previously proposed would be deleted and reductions are
proposed for some ongoing activities.
The
reduced
level
would
provide
support
for research on space remote-sensing techniques
and satellite missions, research related to understanding weather
and
climate,
and
research
on advanced
space
communications
technology.
Budget
authority
for space programs of the National Aeronautics
and Space Administration is reduced by $521 million in 1982
from
the January request. Outlay reductions are estimated to be $428
million in 1982.
The Administration proposes to reduce or eliminate some
National
Science
Foundation
(NSF) programs while preserving support for
the advancement of science through basic research. The
programs
that
are proposed for reduction or elimination include those in
science and engineering education and the behavioral, social, and
economic sciences that are less critical to meeting the principal
goals and objectives of the Foundation.
All
new NSF
programs
proposed
in the January budget
request — such as university
laboratory modernization grants
and
a planned
25-meter
radio
telescope
—
are being deferred for future consideration.
The
budget authority request for NSF is reduced
by
$83 million
in
1981
and
$320 million
in 1982 from the January budget, while
estimated outlays
are
reduced
$36 million
and
$209
million
respectively.
The Administration
proposes a budget authority reduction of $40
million from the January budget in the Department
of
Energy's
general
science programs in life sciences and nuclear medicine,
high-energy physics, and nuclear physics. This will result in a
stretchout
of
construction
projects,
and
deferral
of
new
accelerator construction at several
universities.
The
revised
budget authority request of $567 million in 1982 still allows for
improvements in experimental facilities and support of continuing
research.
Outlays would be reduced by $24 million in 1982 from
the January budget estimate.
-42-
270:
ENERGY
($ billions)
Actual
Estimate
1980
1981
1982
Budget Authority
January budget
Reestimates
Policy reductions:
Fossil and synthetic fuels
Alcohol fuels and biomass
Solar
Other supply
Uranium enrichment
Spent fuel storage
Solar Energy and Energy Conservation
Bank
Conservation
Regulation and information
Policy increases:
Nuclear energy
Strategic petroleum reserve
Petroleum reserve and other receipts.
36.4
8.3
0.1
12.1
-0.6
-1.2
-0.1
-0.2
-0.8
-0.3
-1.1
-0.1
-0.2
-0.1
-0.1
-0.7
-0.3
0.1
1.3
-0.3
0.3
0.2
-0.3
Revised budget
36.4
5.8
9.0
January budget
Policy reductions:
Fossil and synthetic fuels
Alcohol fuels and biomass
Solar
Other supply
Uranium enrichment
Spent fuel storage
Solar Energy and Energy Conservation
Bank
Conservation
Regulation and information
Policy increases:
Nuclear energy
Strategic petroleum reserve
Petroleum reserve and other receipts.
6.3
8.7
12.0
-0.3
-0.1
-0.1
*
0.1
-1.2
-0.1
-0.4
-0.3
-0.4
-0.2
-*
-*
-0.1
-0.1
-0.4
-0.3
Revised budget
6.3
-0.4
-0.3
-0.4
Outlays
*
$50 million or less.
0.1
1.3
-0 * 3
0.2
0.3
-0.3
9.2
8.7
-43-
Most of
the changes
in the energy
function
reflect
the
Administration's
conviction
that
the Nation's energy problems
will be solved by the people and industries of
this country
in
response
to realistic
Federal
policies,
not by
Government
spending.
In the past, the Federal Government has postponed hard
decisions on energy policy and
created
numerous
programs
that
have
added
to the burden
of the budget and have provided the
illusion
of progress
without
the reality.
The
President's
decision
to decontrol
oil markets and proposed changes in the
budget are key
steps
in carrying
out
the policies
of
this
Administration.
The budget
authority
proposed for the energy
function is $2.5 billion lower in 1981 and $3.1 billion lower
in
1982 than the levels requested in the January budget.
Estimated
outlays are increased by $0.5 billion in 1981
(due to the
net
effect of reductions
and
increased
costs
for the strategic
petroleum reserve) and reduced by $3.3 billion in 1982.
Reestimates.—Correction
of an error
in the January
budget
increases
budget
authority for the Clinch River breeder reactor
by $0.1 billion in 1981.
Policy r e d u c t i o n s . — T h e Administration supports
the
development
of a commercial
synthetic
fuels
industry.
By
shifting the
Department
of
Energy's
synthetic
fuels
commercialization
activities
to the newly-created
Synthetic
Fuels Corporation,
development of our synthetic
fuels potential
can be
achieved
without needless use of tax dollars to subsidize private business
ventures.
Using the forms of assistance provided by the Corporation, rather
than
those provided
by the Department
of Energy,
private
companies will manage construction with more of their own
money
at risk.
The
likelihood
of successful project outcomes will,
therefore,
increase,
while
potential
Government
costs
will
decrease.
The Department of Energy would end its program of major technical
demonstrations,
transfer
the
interim alternative fuels funding
program
to the
Synthetic
Fuels
Corporation,
and
focus
on
supporting
long-range
research
and
development.
The
Administration will propose a rescission of $300 million in
1981
for feasibility studies and cooperative agreements and a transfer
of the unobligated
portion
of the
remaining $5.0 billion of
budget authority in the Department
of Energy
program
to
the
Synthetic Fuels Corporation on June 30, 1981.
In keeping with this strategy, major reductions are also planned
in
fossil
energy
research,
development,
and
demonstration
programs.
Funding
for design
and operation
of major fossil
energy pilot and demonstration plants is reduced
or
eliminated.
Budget authority for all fossil and synthetic fuels programs will
be reduced
below
the January level by $0.6 billion in 1981 and
$1.1 billion in 1982. Estimated outlays would be reduced by $0.3
billion in 1981 and $1.2 billion in 1982.
The Administration supports continuation of existing tax
credits
and
the
excise
tax
exemption
for gasohol,
but proposes the
-44-
termination
of
the
alcohol
fuels
and
biomass
programs
administered
by
the
Departments
of Agriculture and Energy and
funded through the energy security reserve.
The
combination
of
tax
incentives and removal of price controls from domestic crude
oil will make alcohol fuels more competitive
and
eliminate
the
need
for
additional
subsidies
through
the
loan
guarantees,
feasibility studies, and cooperative agreements
that
have
been
supported
by these agencies.
Budget authority not yet obligated
under either program, estimated to be $1.2 billion,
is
proposed
for
rescission
in
1981.
This would
result in reductions in
estimated outlays of $0.1 billion in 1981 and 1982.
The
Department
of Energy
conducts
a variety
of
research,
development,
and
demonstration
programs
that
are intended to
develop or improve
energy
technologies
and
to
subsidize
the
adoption
of
these
technologies
by
private
industry.
Rising
energy prices, new
tax
incentives
for
investment,
regulatory
relief
and
economic
recovery
make
many
of
these
programs
unnecessary.
The Administration,
therefore,
plans
to
restructure
the
technology
programs
of
the Department
of Energy to emphasize
longer-term, high risk, but potentially high-payoff research
and
development
while
terminating
larger technical demonstrations.
The Administration
believes
that
Federal
support
for
energy
research
is appropriate,
but that large demonstrations and the
should
be
left
to
the
development of commercial applications
private sector.
—
The focus of Department of Energy
programs
for
solar
energy will
be
shifted
from
near-term
development,
demonstration, and commercialization
activities
toward
longer-term
research and development.
Budget authority
and outlays would be reduced by $0.1 billion in 1981 and
in
1982 below
the
January
budget.
by $0.4 billion
Federal
tax
credits,
including incentives for biomass
and alcohol fuels, estimated to be $0.6 billion in 1982,
will continue unchanged.
—
Other energy supply programs, including geothermal
loan
guarantee
and
commercialization
programs, the uranium
resource
assessments
program,
subsidies
for
small
hydropower
projects,
near-term
development
of energy
storage
and
electric
transmission
systems
and
duplicative
environmental studies, would be eliminated.
These proposals reduce budget authority by $0.2
billion
in
1981
and
$0.3 billion
in 1982, while outlays are
decreased $0.3 billion in 1983.
In addition, improved
efficiency
of
operations
and
increased
prices
that
recover a greater part of the costs associated with
the uranium enrichment program of the Department of Energy result
in a $0.8 billion reduction in budget authority in 1981 and
$0.4
billion reductions in budget authority and outlays in 1982.
The Administration does not support Federal funding for an awayfrom-reactor spent nuclear fuel storage facility. Withdrawal
of
-45-
th e previous
administration's proposal reduces budget authority
by $0.3 billion and increases outlays by $0.1
billion
in
1981,
while 1982 outlays are reduced by $0.2 billion.
Under
the Administration proposals, the Solar Energy and Energy
Conservation Bank program in the Department of Housing and
Urban
Development
would
not
be
started
up.
Existing
Federal tax
credits
and
rising
oil prices
already
provide
substantial
incentives
for
investment
in
solar
energy
and conservation.
Preliminary regulations have been withdrawn and no loan subsidies
will be disbursed.
The Administration proposes that $121 million
appropriated
for
this program
in
1981 be rescinded and that the 1982 budget be
amended to withdraw the $125 million appropriation
requested
by
the previous
administration.
Outlays would be reduced by $0.1
billion in 1982.
Rising energy prices have led to substantial improvements in
the
efficiency
with
which the Nation uses energy.
Decontrol of oil
prices and existing tax credits will encourage continuing
energy
conservation efforts by individuals and businesses.
As a result,
many
of the energy conservation spending and regulatory programs
conducted by the Federal Government are no longer necessary.
The Administration proposes reductions in Department
of
Energy
programs
for
conservation
technology
development, regulation,
information,
and
financial
assistance
to State
and
local
governments.
Grants for conservation improvements in public and
non-profit schools and hospitals will continue at a rate of about
$100 million per year.
The Department of Energy's weatherization
assistance program is proposed for termination.
State and
local
governments
can
continue
to fund weatherization programs using
the Department
of Housing
and
Urban
Development's
community
development
block
grant
program,
which
is discussed
in the
community and regional development function.
The Administration will propose a rescission of $207 million
in
1981
and
amendments
to the budget
request
submitted by the
previous administration, as well as withdrawing
regulations
and
proposed
legislation
that
are
no
longer
called
for.
These
changes reduce budget authority by $0.2 billion in 1981 and
$0.7
billion
in 1982 from the January budget level.
Outlays would be
reduced by $0.4 billion in 1982.
Since greater reliance will be placed on energy markets
to
meet
energy
needs,
there will be less need for energy regulation and
information programs.
The price and allocation functions of
the
Economic
Regulatory
Administration,
mandatory
fuel
use
restrictions, and coupon
gasoline
rationing
are
proposed
for
elimination.
This
will result in reductions of $0.2 billion in
both budget authority and
estimated
outlays
from
the
January
budget levels for 1982.
As a result of the reductions in the activities of the Department
of Energy,
budget authority for departmental administration and
overhead is being reduced by 32% below the January budget request
-46-
for 1982.
In addition,
planning
for
the
regional
strategic
petroleum reserve program proposed by the previous administration
will
be
terminated,
since
prompt
development
of centralized
storage facilities is more effective and less costly.
The Administration proposes a major change in the
financing
of
the
Rural
Electrification
Administration,
termination
of the
biomass and alcohol fuels loan guarantee program, and
reductions
in geothermal
and other credit programs, which are discussed in
Part 2.
Policy i n c r e a s e s . — T h e
Administration
believes
that
nuclear
energy must play an important role in the Nation's energy future.
The revised budget includes budget authority and outlay increases
in 1981 and 1982 to build the Clinch River breeder reactor and to
start
design
studies
for
a large,
commercial
size
breeder
reactor.
Increases
are
also proposed
for
commercial
waste
management programs and for continuing research by the Department
of Energy
at
the Three
Mile
Island
nuclear
plant.
These
proposals result in an increase over the January budget levels of
$0.1 billion in budget authority in 1981 and of $0.3
billion
in
budget authority and $0.2 billion in outlays in 1982.
As
a result
of decontrol
of domestic
oil prices
and
the
termination of the crude oil entitlements program, the
strategic
petroleum
reserve
program will
lose
offsetting
receipts
of
approximately $1.3 billion in 1981 and $0.2 billion in 1982.
The
Administration proposes to increase budget authority and
outlays
b y the amounts needed to maintain strategic petroleum reserve oil
fill schedules.
Estimated
receipts
from the sale of oil at the Government-owned
petroleum
reserves
and
from power marketing
activities
are
expected
to
increase
$0.3 billion in 1981 and $0.3 billion in
changes
in oil prices,
taxes
and
sales
1982 as a result of
practices.
-47-
300:
NATURAL RESOURCES AND ENVIRONMENT
($ billions)
Actual
Estimate
1980
1981
1982
Budget Authority
January budget
Reestimates:
Mineral leasing receipts
Policy reductions:
Water resource construction
Improved targeting of conservation
expenditures
Youth conservation corps
Waste treatment grants
National Oceanic and Atmospheric
Administration (NOAA)
Mineral leasing receipts
All other.
Policy increases:
National Park Service
All other
13.1
12.7
13.6
-0.1
-0.1
*
-0.2
-0.3
-*
-1.7
-0.6
-0.1
-3.7
-*
-0.1
-0.2
-0.2
-0.7
*
0.1
0.1
*
Revised budget
13.1
10.4
7.9
13.8
14.1
14.0
Outlays
January budget
Reestimates:
National Oceanic and Atmospheric
Administration (NOAA)
Mineral leasing receipts
Waste treatment grants
All other
Policy reductions:
Water resource construction
Improved targeting of conservation
expenditures
Youth conservation corps
Waste treatment grants
National Oceanic and Atmospheric
Administration (NOAA)
Mineral leasing receipts...
All other
Policy increases:
National Park Service
All other
Revised budget
$50 million or less.
.
-0.1
-0.1
-*
-0.1
-0.1
-0.2
-0.2
13.8
-0.1
-*
-*
-0.3
-0.1
-0.3
*
-0.1
-0.2
0.2
-0.5
*
0.1
0.1
*
13.7
12.0
-48-
Administration proposals and technical reestimates reduce outlays
for the
natural
resources
and
environment
function
by
$0.4
billion
in
1981
and by $2.1 billion in 1982 below the January
budget.
The budget authority request is
$2.3
billion
less
in
1981
and $5.7 billion less in 1982 than the January budget.
The
proposed reductions include stretching out and retargeting public
sector capital improvement programs, imposing fiscal restraint on
other programs, delaying purchase of additional land for park and
recreation purposes, while at the same time augmenting
resources
for
the protection
of
existing national parks, and increasing
offsetting receipts by accelerating mineral leasing.
Proposed r e d u c t i o n s . — T h e Administration proposes a 15% reduction
in planned
construction
for water
resources
programs.
This
proposal
does
not
include funding for three Corps of Engineers
projects that are incompatible with the
current
austere
budget
environment.
About 75 of the more than 300 remaining projects would be delayed
slightly.
However, these delays would not affect the completion
dates for hydro-power, municipal
and
industrial
water
supply,
urban flood control or navigation projects.
The Administration
proposes
to eliminate funding for the Water
Resources Council (including State planning grants and the
River
Basin
Commissions)
and
the
Office
of Water
Research
and
Technology.
A small Office of Water Policy will
be
established
within
the Department of the Interior to advise the Secretary on
water resources policies.
The Administration
will
continue
to
examine
water
resource
planning
and
development programs for
additional improvements.
The
expenditures
for
recreation
land
conservation
will
be
substantially
refocused
through:
a moratorium on Federal land
purchases; the elimination of
three
major
grant
programs
for
recreation
land
acquisition
and
development
and
historic
preservation; and significant
resource
increases
for
existing
national
parks.
Postponing Federal acquisition will allow for a
thoughtful
policy
review
of
existing
park
and
recreation
legislation.
Legislation is being proposed to amend the land and
water
conservation
fund
to
allow
the
fund
to be
used for
improvements in our National Park system.
The
requested
budget
authority
will
be
reduced
by
$0.2 billion
in 1981 and $0.5
billion in 1982.
Estimated
outlays
for
conservation
purposes
will
decline
$0.1 billion
in
1981
and $0.3 billion in 1982.
While outlays for non-timber activities in national forests
will
decrease
slightly
in
1982
from
the January budget estimates.
Some of the Bureau of Indian Affairs grant
programs
located
in
the
natural
resources
and
environment
function
will
be
consolidated
with
other
Indian
programs.
This
proposal
is
discussed in the community and regional development function.
The Administration
proposes to phase out the Youth Conservation
Corps (YCC) by the end of 1981.
This will
be
accomplished
by
rescinding
1981
funds currently available for YCC.
The January
budget also proposed to eliminate the Young
Adult
Conservation
Corps, a similar program that is classified in the employment and
-49-
training subfunction.
The phaseout of these programs is proposed
because they are costly and are not well directed to needy youth.
In addition,
these
programs
carry out public lands activities
that are similar, but often lower priority, than those
that
are
accomplished
through
other budgeted programs.
Budget authority
savings from the YCC phaseout are proposed at $38 million in 1981
and $60 million in 1982. Outlays will be reduced by $33
million
in 1981 and $60 million in 1982.
The Administration
proposes
to reduce
appropriations for the
municipal waste treatment grant
program
and
to direct
future
funding
only to high-priority projects that directly improve the
quality of receiving waters in
the
near
term.
This will
be
achieved
by
(1) a
rescission
of
$585
million
in
1980
appropriations carried
forward
to
1981,
(2) a rescission
of
approximately $115 million in funds appropriated under the Public
Works
Employment
Appropriation Act of 1977, (3) a rescission of
$1.0 billion
in
appropriations
for
1981,
(4) substantive
legislative
changes that limit Federal funding to those projects
that directly
enhance
the
quality
of
receiving
waters,
and
(5) the withdrawal of the appropriation request for $3.7 billion
in 1982 until this legislation has been enacted.
Upon
enactment
by Congress, $2.4 billion will be requested for 1982.
The Administration
proposes
to
reduce
budget
authority
and
outlays for the Department of Commerce's
National
Oceanic
and
Atmospheric
Administration
(NOAA) programs in this function by
$0.2 billion below the January budget in 1982.
Funding
for
the
State
coastal
zone management
and
sea
grant
colleges grant
programs would be terminated because they have
largely
achieved
their
original purpose to develop State and local capability for
addressing marine and coastal issues.
In addition,
the
funding
for
the
national
oceanic
satellite
system
(NOSS) would
be
eliminated because the intended NOSS data currently is
collected
through
other
means.
No
additional
LANDSAT
satellite
procurements or ground system
upgrade
to provide
land
remote
satellite
sensing
data
continuity
through the 1980's would be
undertaken by NOAA. The two LANDSAT satellites already funded by
NASA will provide sufficient data to assess the market
potential
for future land remote satellite sensing data.
Proposed receipts increases.--The
Administration
is
seeking to
accelerate the leasing of mineral
resources
on
Federal
lands.
The Outer Continental Shelf leasing program will be revised with
the objectives of shortening the time needed to start exploratory
drilling in all OCS
areas
and
of
streamlining
the OCS
sale
preparation
process
while
protecting
the
environment and the
public's financial interest.
Oil and gas leasing in the national
petroleum reserve in Alaska (NRPA), coal leasing, and
oil
shale
leasing
will be accelerated.
Excluding Outer Continental Shelf
receipts which are accounted for in the undistributed
offsetting
receipts
function,
this would increase the proprietary receipts
of the Government,
and
therefore
reduce
budget
outlays
an
estimated $0.2 billion in 1982, as well as increase future shared
revenue payments to States .
338-780 0-81-3
-50-
Th e Administration
will propose user fee legislation for inland
waterways and for harbors
and
channels.
The
inland
waterway
proposal
accounted
for
in
the
receipts section, Part 2, will
increase the present 4-cents per gallon tax on
commercial
barge
fuel
to
recover
the
cost
of operating
and
maintaining the
waterways through increased receipts beginning in 1982, and
will
provide
for recovering the cost of new waterways to be opened in
the future.
This proposal will recoup Federal subsidies of
$248
million
in
1982. The channel and harbor proposal will begin to
recover the full cost of dredging
and
maintaining
harbors
and
channels,
exclusive
of
costs
allocated
to
naval
traffic,
beginning in 1983. The proprietary receipts from
this
proposal
are included in the natural resources and environment function in
Part 4.
-51-
350:
AGRICULTURE
($ billions)
Actual
Estimate
1980
1981
1982
Budget Authority
January budget
Policy reductions
4.9
5.6
-*
5.6
-*
Revised budget
4.9
5.6
5.5
1.1
4.8
Outlays
January budget
Reestimates:
Federal crop insurance
Policy reductions:
Price support and related programs
(CCC):
Storage facility loans
Loan interest rates
Grain reserve interest waivers....
Agricultural credit insurance (FmHA).
Research and services
Grain inspection and weighing user
charges
Policy increases:
Debt rescheduling (Poland)
Revised budget
*
4.8
0.1
-*
-*
-0.1
-*
-*
-0.1
-*
-0.2
-*
-*
-*
0.1
4.8
1.2
4.4
$50 million or less.
The Administration request for agriculture programs would
reduce
budget authority by $22 million in 1981 and in 1982. Outlays are
estimated to be $48 million higher in 1981 and $0.4 billion lower
in 1982 than
the January budget as a net result of reestimates
and policy reductions. A reestimate of crop insurance
indemnity
payments increases outlays by $0.1 billion in 1982.
Proposed r e d u c t i o n s . — S i n c e
1978 there have been large surpluses
of milk products, which
the Federal Government
must
purchase
under
the dairy
price
support
program. As a result, Federal
stocks have increased (along with the Federal
subsidy) at
the
same
time
that prices paid by the consumer have increased.
To
help
eliminate
excess
dairy production,
the
Administration
proposes
to decrease the Federal subsidy for these products.
As
a result, dairy prices in the future would depend more on
supply
and demand in the market than on artificially high demand created
-52-
by
this
subsidy
program.
greater than $0.6 billion.
Annual estimated outlays would be no
To achieve
these
objectives,
the
Administration
submitted
legislation
to eliminate the mandatory April 1, 1981 increase in
dairy price support currently required by law.
In addition,
the
Administration
will
submit
long-term
reforms
as part of its
comprehensive farm program.
The
Federal
Government
provides
loans
—
not
to
exceed
$100,000 —
to
farmers
for 75% or more of the cost to build or
grain,
rice
renovate storage and drying facilities, usually for
or
soybeans.
The Administration proposes to curtail the current
storage facility loan program in 1981 and to phase it out by 1986
since there is currently more than adequate storage capacity
for
current
and
future crop years.
This will reduce outlays by $25
million in 1981 and $0.1 billion in 1982.
The Administration intends
to
reduce
costs
in price
support
operations
by
charging
interest on all loans at least equal to
the Treasury cost of borrowing.
Legislation will be submitted to
eliminate the mandated first-year interest waiver for farmer-held
reserve loans.
These two actions would reduce
outlays
by
$0.1
billion
in
1981
and by $0.2 billion in 1982.
However, because
the debt service payments on CCC export credits
to
Poland
that
were
due
March
through
June
1981 have been rescheduled, 1981
outlays will be increased by $88 million.
As a result, total net
outlays for price support programs will decrease by
$21
million
in 1981 and $0.3 billion in 1982.
In order
to
reduce
dependence
on the Federal Government as a
supplier of credit, the Administration
plans
to
reduce
direct
lending
by
the
Farmers Home Administration, as is discussed in
detail in the credit section of Part 2.
In addition,
interest
subsidies
will
be
terminated through administrative action for
the farm operating loan program, and through proposed legislation
for farm ownership and emergency disaster loans.
Policy i n c r e a s e s . — A g r i c u l t u r a l research and extension activities
will be increased
$13 million
in both budget
authority
and
outlays
for
1982.
The Administration believes that increasing
farm productivity should be an
important
part
of
the
Federal
Government's agriculture policies.
Proposed receipts i n c r e a s e . — I n
addition
to
the January budget
user charge proposal for cotton, tobacco, and warehouse
grading
and
inspection,
user
charge
legislation
is being proposed to
recover the full Federal cost associated with the supervision
of
grain inspection and weighing activities.
This new proposal will
result
in
annual
outlay
savings,
starting
in
1982,
of
approximately $25 million.
-53-
370:
COMMERCE AND HOUSING CREDIT
($ billions)
Actual
Estimate
1980
1981
1982
Budget Authority
January budget
Reestimates and revised economic
assumptions
Policy reductions:
Government National Mortgage
Association (GNMA)
Rural housing insurance (FmHA)
Postal Service subsidies
Withdrawal of proposed payments in
excess of corporate tax liability...
Small Business Administration
National Consumer Cooperative Bank...
Other
Proposed increases:
National Credit Union Administration.
Functional change l/z
Trade adjustment
assistance
10.5
7.0
10.7
-*
-0.5
-0.2
2.1
-0.1
-0.2
-0.2
-*
-0.1
-*
-3.5
-0.2
-0.1
-0.1
Revised budget
10.5
6.4
8.2
January budget
Reestimates and revised economic
assumptions
Policy reductions:
Government National Mortgage
Association (GNMA)
Rural housing insurance (FmHA)
Postal Service subsidies
Withdrawal of proposed payments in
excess of corporate tax liability...
Small Business Administration
National Consumer Cooperative Bank...
Other
Function change 1/: Trade adjustment
assistance
7.8
3.5
8.1
0.2
-0.7
*
-*
-*
-0.1
-0.2
-0.2
-0.1
-0.1
-*
-3.5
-0.1
-0.1
-0.3
Revised budget
7.8
0.1
0.1
Outlays
*
*
3.2
3.1
$50 million or less.
1/ The trade adjustment assistance program
for
firms
and
communities will be transferred from the community and regional
development function.
-54-
The Administration proposes to reduce budget
authority
by
$0.6
billion
in
1981 and $2.5 billion in 1982, and to reduce outlays
by $0.2 billion in 1981
and
$5.0 billion
in
1982 below
the
January
budget request.
The budget reductions identified in the
Government National
Mortgage
Association
(GNMA),
the
Federal
Housing
Administration
(FHA),
the
Farmers Home Administration
(FmHA), the Small Business Administration (SBA), and the National
Consumer
Cooperative
Bank have
significant
implications
for
Federal
credit
activity,
which
is discussed in more detail in
Part 2.
Reestimates and revised economic a s s u m p t i o n s . — O u t l a y s have
been
reestimated
for
the Government
National
Mortgage Association
tandem programs to reflect
new
interest
rate
projections
and
recent
mortgage
sales
experience.
Outlays
have
also
been
reestimated
for
the
Federal
Housing
Administration
and
the
National
Credit
Union
Administration to reflect recent program
other
technical
factors.
These
reestimates
experience
and
increase
outlays
$0.2 billion
in 1981 and reduce outlays $0.7
billion in 1982.
Proposed r e d u c t i o n s . — T h e tandem
mortgage
purchase
program
of
GNMA, which
provides
subsidized
mortgage
financing
for
the
Department of Housing and Urban Development's subsidized
housing
(section 8)
and
other
rental
apartment
projects,
will
be
discontinued after 1982.
Under
Administration
proposals,
GNMA
will
make
$3.6 billion in mortgage purchase commitments in 1982
to provide
subsidized
financing
for projects
already
under
development
and
meeting
current
tandem
program
guidelines.
Similarly,
the
Administration
will
not
propose
that
any
alternative
mortgage
subsidy
program,
such
as
the
mortgage
assistance grant
program,
be
created
to
replace
the
tandem
program.
These
policy changes will have a negligible effect on
outlays in 1981 and 1982, but will result in substantial
savings
in the
outyears
after current commitments are issued.
In 1986
this policy change reduces estimated outlays by $1.1 billion.
The Administration proposes to reduce the limitation for the
FHA
mortgage insurance program, as discussed in the credit section of
Part 2,
to
increase
sales
of property
owned
by
FHA and to
increase gradually, over a 5-year period, the
rent
contribution
percentage
for
tenants in FHA-owned property from 25% to 30% of
renters' income.
These policy changes reduce
estimated
outlays
by $14 million in 1981 and $8 million in 1982.
The Administration proposes to reduce direct loan obligations for
the rural housing insurance fund by $0.3 billion in 1981 and $0.6
billion in subsequent years below the January budget level.
This
reduction is also discussed in the credit section of Part 2.
The
proposed
reduction
in
lending reduces estimated outlays by $20
million in 1981 and $86 million in 1982.
The U.S. Postal Service currently receives a subsidy
equivalent
to about 7% of its total operating budget.
This Federal payment
subsidizes certain mail users
and
services
and
increases
the
financial
burden for all taxpayers.
The Administration believes
that the costs of mail service should
be borne
by
users,
not
-55-
taxpayers.
It therefore
proposes to reduce the public service
subsidy, which offsets the cost of maintaining services that
are
not self-sustaining, by $0.3 billion.
It also proposes to reduce
from
$0.8 billion
to $0.5 billion the revenue forgone subsidy,
which provides funds for
free
and
reduced
rates
for
certain
classes
of mail.
Further, the Administration is also proposing
to rescind $0.3 billion from the public service subsidy in
1981.
These
actions would
reduce outlays by $0.3 billion in 1981 and
$0.6 billion in 1982 compared with
the
current
services
base.
Compared with the January budget, which proposed a smaller cut in
the Postal Service subsidy, estimated outlays are reduced by $0.3
billion in 1982.
The Administration does not support the previous administration's
proposal
to make
30% of the investment tax credit refundable.
Withdrawal of this proposal reduces
estimated
outlays
by
$0.2
billion in 1981 and $3.5 billion in 1982.
As
discussed in the credit section of Part 2, the Administration
proposes to reduce direct
and
guaranteed
loans by
the
Small
Business
Administration and to raise the interest rate on direct
loans.
In addition,
the Administration
proposes
to
reduce
technical
assistance
to
special
small business groups.
These
measures will reduce estimated outlays $0.1 billion in
1981
and
1982 below the January budget.
Because
of
the
need
to
eliminate
desirable
but unnecessary
programs,
the Administration
proposes
to
end
the
National
Consumer
Cooperative
Bank.
Cooperatives already enjoy special
tax treatment.
Those that have good management, provide services
to their members economically and have expectations of
continued
good earnings should be able to obtain adequate credit privately.
Loans currently held by the Bank will be shifted to other Federal
agencies.
Capital stock held in the Bank by cooperatives will be
redeemed.
Termination of the Bank will reduce estimates outlays
by $0.1 billion in 1981 and 1982.
The Administration is proposing a 40%
staff
reduction
in
the
Federal
Trade
Commission
by
1986 by phasing out the regional
offices
and
decreasing
the Washington
headquarters'
office.
State
and
local
governments have significantly increased their
resources
devoted
to
consumer
protection
and
antitrust
activities.
Additionally,
the
Justice
Department's antitrust
division has resources to focus on related antitrust problems and
many
antitrust
issues
can best
be
addressed
directly
by
litigation
by
the
aggrieved
private
sector
interests.
The
proposal contained in the revised
1982 budget
would
have
the
Commission
focus
more
on problems of nationwide scope, reduce
multi-governmental regulatory burdens on business
and
eliminate
artificial
restrictions
on
commerce
that ultimately result in
higher
costs
to
consumers.
The
proposed
reduction
would
eliminate about 665 full-time staff in the FTC by 1986.
-56-
400:
TRANSPORTATION
($ billions)
Actual
Estimate
1980
1981
1982
Budget Authority
January budget
Function change 1/
Policy reductions:
Federal highway construction
Mass transit capital grants
Amtrak
Other railroads...
Airport construction grants
Maritime ship construction
Boat and yacht fees
All other
20.2
26.3
25.5
0.2
-*
-0.3
-*
-0.1
-0.3
-*
-*
-2.0
-1.3
-0.4
-0.4
-0.3
-0.1
-0.1
-0.6
Revised budget
20.2
25.5
20.5
January budget
Reestimates:
Mass transit
Maritime ship construction
Function change 1/
Policy reductions:
Federal highway construction
Mass transit capital grants
Amtrak
Other railroads
Airport construction grants
Maritime ship construction
Boat and yacht fees
All other
21.1
24.1
21.6
0.4
-*
0.2
-*
*
-*
-0.1
-*
-0.2
-*
-*
-0.1
-0.4
-0.4
-0.3
-0.1
-*
-*
-0.1
-0.4
Revised budget
21.1
24.0
19.9
Outlays
*
$50 million or less.
1/ Transfer of the Appalachian highway
community and regional development function.
program
from
the
The
Administration's
proposals
reduce budget
authority
and
outlays for transportation programs in both 1981 and
1982
below
the
levels proposed in the January budget, despite increases for
both years in mass transit outlays due to higher than anticipated
obligations in 1980 and early 1981.
-57-
Proposed r e d u c t i o n s . — A s with
other
major
federally
supported
public
sector
investment programs, the Administration's highway
proposal would stretch-out and slow down construction
of
lowerpriority highway projects, with proposed savings of $2.0 billion
in budget authority and $0.4 billion
in
estimated
outlays
in
1982.
Capital
grants
for building new urban rail transit systems and
extending existing systems would be reduced
in
1981
and
1982.
Remaining
construction
resources would
be used to finish only
operable rail segments currently under construction and,
in
the
future,
no new
transit
rail
system
construction
would
be
federally financed.
The reduction in mass transit capital grants
in 1982 would result in decreases
of
$1.3
billion
in
budget
authority
and
$0.4 billion in outlays below the January budget
request.
Funding for bus and rail modernization
projects
would
be
continued
in
recognition
of
the
need
to improve transit
services.
Legislation will be proposed to
require
Amtrak
to
discontinue
service
on
its
least
efficient routes.
Total Federal subsidy
amounts will be lowered to $613 million in budget
authority
in
1982, with
progressively
lower
amounts
authorized
in future
years. These changes result in 1982 savings of $0.4 billion
in
budget authority and $0.3 billion in outlays.
To promote
economy
and efficiency, the Administration plans to
reduce Federal subsidy levels for low-traffic rail lines and
for
upgrading
track
on
other
freight
rail
lines.
These changes
result in savings in 1982 of $120 million in budget authority and
$37 million
in outlays.
As
a result
of
greater
economic
vitalization and less regulation, it may be possible to phase out
all
low
interest
loans
and
other
subsidies
to the Nation's
railroads within the next 4 years.
The Administration intends to decrease the amount
of
funds
for
Conrail
in
1981-1982,
with plans to cease Federal aid by 1983.
Additionally,
the Administration
will
propose
the
sale
or
transfer of the Alaska railroad in 1982.
Legislation
to
reauthorize
the
airport
grant
program during
1981-1986 will be proposed.
The annual funding
levels will
be
held
constant at $450 million, resulting in estimated savings of
$0.3 billion in budget authority in 1981 and 1982.
The
savings
will
be
achieved through cuts in grant categories and phased-in
defederalization of large commercial airports.
Alternatives to existing maritime subsidy policies are
currently
under
consideration.
Meanwhile,
a stable but somewhat reduced
level of subsidy for
the
construction
of
new
privately-owned
commercial vessels for use in ocean foreign commerce is proposed.
Budget
authority savings related to policy actions in 1982 would
be $107 million below the January
budget,
with
outlay
savings
estimated
at
$21 million
and
$40 million
in 1981 and 1982,
respectively.
-58-
The Administration is also withdrawing support of the cooperative
automotive
research
program
proposed
by
the
previous
administration.
The
level
of
support
will
be
reduced
for
aeronautics research and development in the National
Aeronautics
and
Space
Administration
(NASA) budget,
primarily
for
new
initiatives
proposed
in
the January
budget
and
technology
development
and
demonstration
efforts
that
may
be
more
appropriately undertaken by the private sector.
Proposed receipts c h a n g e . — S t a r t i n g in 1982,
the
Administration
proposes
that
boat
and
yacht
owners and other members of the
maritime
industry
be
charged
for
all
direct
administrative
services provided by the U.S. Coast Guard (USCG) and that a range
of
annual
fees be
assessed to pay for indirect USCG services.
This will ensure that the small portion of
the population
that
benefits
from these activities will bear the costs of operation.
The resulting increase
in proprietary
receipts,
which
offset
budget
outlays, would be $0.1 billion in 1982. An aviation user
that would
increase
governmental
receipts
is
tax proposal
discussed in the section in Part 2 on receipts.
-59450:
COMMUNITY AND REGIONAL DEVELOPMENT
($ billions)
Actual
Estimate
1980
1981
1982
Budget Authority
January budget
Reestimates:
Federal emergency management
activities
Functional changes 1/
Policy reductions:
Urban development and community
development block grants
Rehabilitation loans
Farmers Home Administration
Rural Electrification Administration.
Economic Development Administration..
Regional commissions
Coastal and inland energy impact
programs
Indian programs
SBA disaster loans
Federal emergency management
activities
All other
10.1
Revised budget
10.2
9.2
-0.5
-0.3
-0.1
-*
-*
-0.3
-0.1
-0.1
-*
-0.8
-0.5
-0.1
-*
-*
-0.6
-0.1
-0.1
-0.1
-*
-0.1
-0.1
10.1
8.2
7.3
January budget
Functional changes 1/
Policy reductions:
Urban development and community
development block grants
Rehabilitation loans
Farmers Home Administration
Rural Electrification Administration.
Economic Development Administration..
Regional commissions
Coastal and inland energy impact
programs
Indian programs
SBA disaster loans
Federal emergency management
activities
All other
10.1
11.1
9.1
-0.1
Revised budget
10.1
Outlays
*
-*
-*
-*
-*
-*
*
-0.2
-*
-*
-0.3
-0.1
-*
-*
-0.8
-0.1
-*
*
-*
-*
-0.1
-0.1
10.3
8.1
§50 million or less.
1/ Transfer of the trade adjustment assistance program
for
firms and communities to the commerce and housing credit function
and
the Appalachian
highway
program
to
the
transportation
function.
-60-
Proposed
budget
authority
for
the
community
and
regional
development
function is below the January budget by $2.0 billion
in 1981 and $1.9 billion
in
1982.
The
current
estimates
of
outlays
are below
the January budget in 1981 and 1982 by $0.9
billion and $1.0 billion,
respectively.
These
reductions
are
primarily
the
result
of applying
sound
criteria to economic
subsidy programs and imposing fiscal restraint on other programs.
R e e s t i m a t e s . — A technical reestimate relating to new requirements
for recording indefinite borrowing authority reduces 1981
budget
authority
for Federal
emergency management
activites by $0.5
billion.
Proposed r e d u c t i o n s . — T h e
Department
of
Housing
and
Urban
Development
currently
provides
financial
support
directly to
local governments to help finance general
community
development
activities and specific economic development projects through the
community
development
block
grant
(CDBG) and
the
urban
can
development action grant (UDAG) programs. While communities
use their CDBG funds for a broad range of community and economic
development
purposes,
not
all of
the economic
development
activities eligible for UDAG funding can be supported under CDBG.
The UDAG
program,
on
the other hand,
currently requires an
excessive
amount
of
Federal
intervention
in
developing,
selecting,
and monitoring
local economic development projects.
The Administration will propose new policies to integrate
these
programs
into a more
efficient
and flexible grant mechanism.
This effort will build on the best features of both programs
and
will
reduce
the
1982 budget authority request by $0.5 billion
below the January budget.
The Administration also proposes to terminate the
rehabilitation
loan
fund
of the Department of Housing and Urban Development.
This fund unnecessarily duplicates the rehabilitation efforts
of
the community development
block
grant
program.
Furthermore,
block
grant-funded
rehabilitation
is
more
flexible
than
rehabilitation
through
the
loan
fund since block grant-funded
rehabilitation can make use of direct grants, interest subsidies,
or loans. By contrast, the
rehabilitation
loan
fund
provides
only
subsidized
loans. This change, which will replace Federal
control with local decision-making, reduces budget
authority
in
both 1981 and 1982 by $0.1 billion. Outlay savings are estimated
at $39 million in 1981 and $0.2 billion in 1982.
As part
of a general effort to reduce dependence on the Federal
government as a supplier of credit, the Administration
proposes
to reduce by $0.2 billion the 1981 direct loan obligations of the
Farmers
Home Adminstration for water and waste disposal systems.
In 1982, the Administration proposes to reduce the
$0.6
billion
loan
level provided in the January budget for water and waste to
$0.3 billion.
Similarly, a $0.1 billion reduction
in the
$0.3
billion community facility loan program is proposed in 1982.
The
Farmers
Home Administration will therefore narrow its focus and
give
priority
to those
communities
least
able
to
afford
alternative
financing.
In addition
to the reductions in loan
level, the Administration will propose
legislation
to
increase
the rate on water, waste and community facility loans from 5% to
-61the average municipal bond
rate
charged
on
similar
types
of
projects.
The Administration
also proposes
to phase-out the
business and industry loan guarantee
program.
A
reduction
of
$0.1 billion
in
loan guarantee commitments is proposed in 1981
and
the
program
is
scheduled
to be
terminated
in
1982.
Termination
of
the rural communications development fund of the
Rural Electrification Administration, which is used
to make
or
guarantee
loans
to finance and administer community antenna and
cable television services in rural areas, is also proposed.
The Administration proposes to eliminate funding for the Economic
Development Administration (EDA) and
the
Regional
Development
Commissions
of
the
Department of Commerce, and the non-highway
programs of the Appalachian Regional Commission (ARC) 1/ . There
is no convincing evidence that these programs have been effective
in creating new jobs
or
capital
investment,
or
are
actually
needed
to promote local and regional economic development.
As a
result of this proposal, budget
authority
is reduced
by
$0.5
billion
in
1981
and
$0.7 billion in 1982. Outlay savings are
estimated at $0.4 billion in 1982.
Termination of both the coastal and inland energy impact programs
is proposed.
The local impacts from oil and gas development have
proven to be far less than originally anticipated and well within
the
capability
of
States
and
localities
to handle.
These
proposed
changes
reduce
1982 outlays by $0.1 billion below the
January budget.
The Administration proposes to consolidate 10 operating
programs
currently
administered
by the Bureau of Indian Affairs in order
to move toward an Indian block grant
program.
This
initiative
will
result in net savings of $40 million in budget authority in
1982. These savings are
spread
among
the
natural
resources;
education,
training,
employment,
and
social
services;
and
community and regional development functions.
Given existing fiscal constraints,
the Administration
believes
that Federal disaster assistance should be provided only to those
who
are
most in need.
The Administration therefore proposes to
terminate funding for the Small Business Administration's (SBA's)
non-physical disaster loan program and to increase interest rates
on physical disaster loans to the cost of Treasury borrowing.
In
addition, the pending 1981
supplemental
for
physical
disaster
withdrawn.
These
actions
reduce budget
assistance
is being
authority and outlays by $0.8 billion in 1981.
The Federal Emergency Management Agency
(FEMA)
Federal
disaster
assistance
and
National
1/
administers
the
flood
insurance
The
trade
adjustment
assistance
program
for
firms
and
communities
now
located
in EDA will be transferred to the
Department of Commerce's International Trade Administration,
which is in the commerce and housing credit
function.
The
Appalachian
highway
program
will
be
transferred
to the
Federal Highway Administration and funded from
the
highway
trust fund, which is in the transportation function.
-62-
programs.
The
Administration
proposes
to
tighten
the
administration of FEMA's disaster relief program.
An increase in
insurance rates for the subsidized portions of the National flood
insurance
program
is
also proposed.
Together, these changes
reduce budget authority and outlays by $0.1 billion in 1982.
The Administration also supports termination of the HUD
planning
assistance
and
neighborhood
self-help
development
programs.
Local communities can
use
their
CDBG
funds
to
support
both
planning
activities
and
specific
neighborhood
development
projects.
Commensurate with the proposed reductions in the
Arts
and Humanities Endowment programs, the Administration proposes to
reduce
Federal support for the Commission of Fine Arts by 50% in
1982.
-63-
500:
EDUCATION, TRAINING, EMPLOYMENT, AND SOCIAL SERVICES
($ billions)
Actual
Estimate
1980
1981
1982
Budget Authority
January budget
Implicit functional change 1/
Reestimates and revised economic
assumptions:
Loan guarantees to students
Policy reductions:
Elementary and secondary education
grant consolidation
Youth initiative _2/
Vocational education
Pell grants (BEOGs)
Educational research and improvement.
National Endowments for the Arts and
Humanities
Public service employment (CETA)
CETA grant consolidation
Welfare reform demonstrations
Federal-State employment service
Social services block grant
Tax credit for non-profit institutions
All other
30.6
Revised budget
30.6
31.9
36.3
0.3
-0.4
-0.5
-1.4
-1.5
-1.2
-0.2
-0.3
-0.2
-0.2
-0.2
-*
-*
-0.2
-0.2
-0.2
-4.6
-0.9
-0.2
-0.2
-1.4
-0.2
-0.6
29.4
24.6
1/
In the January
budget,
foster
care
and
adoption
assistance were classified in the income security function.
They
have
now been incorporated into the social services block grant
in this function.
2/
Includes reductions for
the
Departments
of
Education
($-0.9 billion) and Labor ($-0.2 billion).
-64-
($ billions)
Actual
Estimate
1980
1981
1982
Outlays
January budget
Implicit functional change 1/. . .
Reestimates and revised economic
assumptions:
Loan guarantees to students..
Other adjustments
Policy reductions:
Elementary and secondary education
grant consolidation
Youth initiative 2/
Vocational education
Pell grants (BEOGs)
Educational research and improvement.
National Endowments for the Arts and
Humanities
Public service employment (CETA)
CETA grant consolidation
Welfare reform demonstrations
Federal-State employment service
Social services block grant
Tax credit for non-profit institutions
All other
30.8
Revised budget
30.8
31.8
34.5
0.3
-0.3
-0.5
-0.2
-0.1
-1.1
-0.1
-0.2
-0.2
-0.1
-0.1
-*
-*
-0.1
-0.1
-3.6
-0.7
-0.2
-0.2
-1.2
-0.2
-0.6
30.6
25.8
-0.6
-*
1/
In the January budget,
foster
care
and
adoption
assistance were classified in the income security function.
They
have
now been incorporated into the social services block grant
in this function.
2/
Includes reductions for
the Departments
of
Education
($-50 million) and Labor ($-80 million).
*
$50 million or less.
The
revised
budget
reduces budget
authority
and outlays for
education, training, employment, and social services for 1981 and
1982 below the
levels proposed
in the January budget.
The
differences
are
due
to reestimates
and
revised
economic
assumptions as well as to policy
reductions.
In total,
the
revised
budget
proposals
reduce 1982 budget authority by $11.7
billion and outlays by $8.7 billion below the January
budget
request.
Reestimates and revised economic a s s u m p t i o n s . — U n d e r
the revised
interest rate
assumptions,
the
interest
subsidy
provided
to
students
through the guaranteed student loan program is expected
to be lower than was assumed in the January budget. As a result,
-65-
th e outlay estimates have been revised downward by
in 1981 and $0.5 billion in 1982.
$0.3
billion
Proposed r e d u c t i o n s . — S e v e r a l policy reductions below the January
budget
request
are
proposed
for programs
in
this
function
totaling $11.5 billion in 1982 budget authority and $8.4
billion
in outlays.
Education
policy
has historically been the prerogative of State
and local authorities.
In recent years, the
Federal
Government
has
become
increasingly
involved
in
this
non-Federal
responsibility.
The Administration
proposes
to
shift
control
over
education
policy
from the Federal Government to State and
local authorities through the consolidation of 44 elementary
and
secondary
education
grant
programs
into
2 block
grants.
Substantial
reductions
in
regulatory
and
paperwork
burdens,
resulting
in
significantly lower administrative costs, would be
achieved by
this
consolidation.
The
Administration
proposal
would reduce 1982 budget authority by $1.5 billion and outlays by
$1.1 billion
below
the January budget request to reflect these
economies.
The revised budget also reduces 1981 budget authority
for the programs to be consolidated by 25% or $1.4 billion.
In recent years, State
and
local
expenditures
for
vocational
education have been increasing rapidly and now provide more than
$10 for every Federal dollar spent for vocational education.
The
Administration proposes
to
cut budget
authority
for
Federal
vocational
education
programs
by
25%
in 1981 and 20% in 1982
below the January budget request.
This proposal would save
$0.2
billion in 1982 budget authority and outlays.
Although
the
original
purpose of the Pell grant program was to
assist low income
students,
changes have
been
made
in
this
program
that
allow
grants
to be
provided
to
students from
families with
incomes
in excess
of
$30,000
per
year.
The
Administration
proposes
to target Pell grants more specifically
on the truly needy,
to
increase
the
amount
of
discretionary
income that families must contribute to the support of a student,
and
to
require
a $750
self-help
contribution from students,
except
where
extreme
financial
need
is demonstrated.
The
Administration
proposal
would
result in outlay savings of $0.2
billion
in
1982
from
the January
budget
request.
(The
Administration
proposal
to eliminate the Student Loan Marketing
Association's access to Federal borrowing
starting
in
1982
is
discussed in Part 2.)
Historically,
cultural
activities
and
the
arts have
been
maintained by State and local support and by the philanthropy
of
private
individuals and corporations.
In recent years, however,
the Federal Government has been relied upon increasingly
as
the
financial
patron
of
first
resort
for both
individuals
and
institutions engaged in artistic
and
literary
pursuits.
The
Administration is proposing to restore the historical reliance on
the
role of private philanthropy and State and local support for
cultural activities by reducing 1982 budget
authority
for
the
Arts
and
Humanities Endowments by 50% or $0.2 billion below the
January budget request.
-66-
Th e revised budget
proposes
to
eliminate
the public
service
employment
programs by the end of fiscal year 1981 to return the
Comprehensive Employment and Training Act (CETA) to its
original
prupose
—
improving the employability of the disadvantaged and
structurally unemployed by
training
them
in
skills
that
are
marketable
in
the private
sector.
People who currently hold
public service jobs could be absorbed into the regular
State
or
local
government
payroll,
be placed by the prime sponsor in an
unsubsidized job in the private sector, or enroll in
a CETA
or
other
education or training program.
Individuals who lose their
jobs would
be
eligible
for
unemployment
compensation.
The
phase-out
of
public
service employment reduces outlays by $0.6
billion in 1981 and $3.6 billion in 1982.
The January budget proposed
a youth
education,
training,
and
employment
program
(the youth initiative) — a joint effort of
the Departments of Labor and Education.
This
Administration
is
withdrawing that proposal, reducing 1982 outlays by $130 million.
Instead
the Administration
is proposing
a more comprehensive
consolidation of youth programs into
the
general
purpose
CETA
training
grants
(Title II Parts B and C). The authorization of
appropriations for two of CETA's Title
IV youth
programs
(the
youth
community
conservation
and
improvement projects and the
youth employment and training programs) expired
at
the
end
of
1980,
and
the two programs currently are authorized by the 1981
Continuing Resolution.
Rather than seek reauthorization of these
programs for 1982, the Administration
proposes
to
consolidate
them with
the training and employment programs authorized under
Title II Parts B and C.
The revised
budget
requests
a
modest
increase
in budget authority above the January budget for Title
II Parts B and C to reflect this
consolidation,
although
total
budget
authority requested is $0.9 billion less than the January
request for the three separate programs.
However,
the
decrease
in
resources
available
for
training
under
these programs is
expected to be significantly mitigated by administrative
savings
achieved
by consolidating several grants into one.
Beginning in
1983, the summer youth employment program would
become
part
of
the
consolidated
grant, providing prime sponsors with increased
flexibility to design training
and
employment
strategies
that
serve
the
disadvantaged
and
meet
local
needs
for
skilled
employees.
The consolidation proposal reduces
outlays
by
$0.7
billion in 1982 relative to the January budget request.
The
Administration is also proposing to fund numerous social and
community service activities in a block grant
to States.
This
reform
will
permit
better
coordination at the State and local
levels and deliver publicly-financed services
more
effectively.
It will
lower
costs by eliminating the problems and associated
costs
of
administering
Federal
categorical
programs
with
different
matching
rates,
procurement
requirements, reporting
standards, and accounting
practices.
Grant
applications
from
local
service
providers
could
be
reviewed
in the context of
overall State funding priority decisions.
Improved
coordination
will
make it easier for clients to receive comprehensive followup services from a single service agency rather than from several
different grantees.
The proposal reduces 1982
outlays
for
the
-67-
categorical programs to be consolidated by $1.2 billion below the
January budget request.
In addition, the Administration is withdrawing
support
for
the
previous
administration's
proposed
tax
credit
for non-profit
institutions, which reduces 1982 budget authority and outlays
by
$0.2 billion.
Several
other
changes are proposed, including:
termination
of
the
Institute
for Museum
Services
and
the
Architectural
and
Transportation Barriers Compliance Board, and
reductions
in bilingual
education,
higher
and
continuing
education,
the Corporation for Public Broadcasting, and national
employment and training programs (including
withdrawal
of
1982
proposals to test positive adjustment assistance concepts).
In addition
to the proposed reductions from the January budget,
proposals
recommended
the Administration endorses the following
in the January budget:
—
Limiting impact aid to those districts whose tax base is
most adversely affected by Federal activities.
Starting
in 1982, payments would be made only to those
districts
in which
children
whose parents both live and work on
Federal property comprise 20% or more of the
district's
enrollment.
—
Reforming the guaranteed student loan program
by:
(1)
limiting
loans
to a student's remaining financial need
after all other financial assistance and expected family
contribution have been counted; (2) eliminating
the
9%
interest subsidy now provided to students while they are
in
school;
and
(3) removing
the
special
allowance
lenders
receive
on
loans
they make
to parents
of
students.
—
Phas ing out the Young Adult Conservation Corps — one of
the most costly and least targeted of
Federal
training
and
employment
programs
—
by the end of 1982.
(The
Administration is also proposing the elimination of
the
Youth
Conservation
Corps,
which
is discussed in the
natural resources and environment function.)
The following information fulfills the requirement of Section 602
of the Comprehensive Employment
and
Training
Act
(Public
Law
95-524),
and revises information supplied in the Budget Appendix
for 1982 in the temporary employment assistance account.
The unemployment
rate
projected to be 7.4%.
for
fiscal
year
1982
The number of unemployed in excess of 4%
of the
force is estimated to be 3.6 million in 1982.
is
now
labor
-68—
The average cost per year of a Title VI
public
service
employment opportunity is estimated to be $11,294.
—
The amount that would need to be appropriated to provide
public service jobs for 25% of the number of
unemployed
in
excess
of
4%
is
$10,291
million.
Because
the
Administration
is proposing
a rescission
of
1981
appropriations not needed to phase out Title VI in 1981,
this
estimate
includes
no allowance for carry-forward
balances.
-69-
550:
HEALTH
($ billions)
Actual
Estimate
1981
1980
1982
Budget Authority
71.9
86.1
0.3
-0.1
- 0 . 6*
-1.2
-0.1
-0.5
-0.5
-0.1
January budget
Reestimates and revised economic
assumptions:
Medicare and medicaid
Policy reductions:
Medicaid grants
Medicare
Health services grant consolidation..
Other health care services
Research
Training
All other
59.8
Revised budget
59.8
71.3
83.5
January budget
Reestimates and revised economic
assumptions:
Medicare and medicaid
Policy reductions:
Medicaid grants
Medicare
Health services grant consolidation..
Other health care services
Research
Training
All other
58.2
66.0
74.6
0.7
1.3
-0.3
0.5
-*
-*
-*
-*
-0.9
-0.8
-0.2
-0.3
-*
-0.1
-0.1
Revised budget
58.2
66.7
73.4
-0.1
-0.1
-0.1
-0.1
-0.1
Outlays
*
$50 million or less.
The revised budget totals for the health
function
reflect
the
effects
of upward reestimates for medicare offset by the effects
of revised economic assumptions and proposed
policy
reductions.
On net,
these
changes increase outlays by $0.7 billion in 1981
and decrease outlays by $1.2 billion in 1982 in comparison to the
January budget estimates.
Budget authority is reduced
by
$0.6
billion in 1981 and $2.6 billion in 1982.
-70-
Reestimates and revised economic a s s u m p t i o n s . — P r o g r a m
reestimates and revised economic assumptions
raise
outlays
for
medicare
under
current
law above the January estimates in both
years.
For 1982, the increase is $1.2 billion
in outlays.
A
major
source
of
this
1982
increase
is the
deletion of the
previous administration's assumption that issuance
of
voluntary
cost
increase guidelines for hospitals would significantly lower
the rate of hospital cost inflation.
Removing
these
"savings"
from the revised budget raises 1982 outlays $0.8 billion.
Proposed r e d u c t i o n s . — T h e
revised budget proposes policy changes
to restructure and restrain growth in Federal health
spending.
The Administration is proposing an interim limit on unconstrained
growth
in medicaid
and
elimination
of medicaid
expansions
included in the January
budget
while
fundamental
health
care
financing
reforms are developed.
For 1981, outlays for medicaid
grants would be reduced a total of $0.3 billion below the January
budget through imposition of the interim limit and by accelerated
Federal collection of prior
year
funds
erroneously
spent
by
States.
Federal
spending
for medicaid would be limited to an
increase of 5% in 1982, and to the rate of inflation
thereafter.
Increased
flexibility
in administering
medicaid
would
allow
States
to
reorganize
their programs
to deliver
care
more
effectively
and at lower cost.
The budget authority request for
1982 would be reduced by $1.2 billion and
outlays
for
medicaid
grants
would
be
an estimated $0.9 billion lower as a result of
the Administration proposals.
The proposed medicare changes include elimination of
a
one-time
shift in hospital reimbursement from the last three weeks in 1981
to
the
first week of 1982, which was enacted last year, as well
as changes in utilization review requirements and
withdrawal
of
program
expansions proposed in the January budget.
The shift in
hospital reimbursement to a normal
payment
schedule
adds
$0.5
billion to 1981 outlays and reduces 1982 outlays by $0.5 billion.
Several
changes
in discretionary health programs are proposed.
The Administration proposes to replace the present collection
of
26 Federal categorical grants for health services and prevention
programs with two block grants to States as part of the effort to
return decisionmaking authority, where appropriate, to States and
localities.
This proposal would reduce 1982 budget authority
by
$0.5 billion and outlays by about $0.2 billion below the January
budget request, primarily as a result of
reduced
administrative
costs for both States and the Federal Government.
Several
other
changes
in discretionary
health
care services
programs are proposed including: elimination of free medical care
for merchant seamen and closure of the remaining 8 Public
Health
Service
(PHS) hospitals
and
29 clinics
now providing these
services;
reductions
in
Indian
Health
Service
facilities
construction;
phase-out
of
Federal
subsidies
for
health
maintenance
organizations
and
of
the health
planning
and
professional
standards
review
organizations
programs;
and
restrained growth in the National
Health
Service
Corps
(NHSC)
service
delivery program.
Finally, adjustments are proposed for
the bonuses paid to PHS Commissioned Corps physicians
consistent
-71-
with current PHS physician needs
and with
similar
adjustments
proposed for Veterans Administration physicians.
These proposals
reduce
the
1982 budget
authority request by over $0.5 billion
below the January budget.
The Administration proposes reducing
the
increase
in
research
funding
proposed
in
the January budget to cover only partially
the effects
of projected
inflation.
These
proposals
reduce
budget
authority
for
research
by
$57 million in 1981 and $92
million in 1982 below the January
budget.
Outlay
savings
are
estimated at $35 million and $21 million, respectively.
The revised budget proposes better targeting of Federal subsidies
for health
professions education to ensure that Federal dollars
subsidize the education of health professionals only
in
medical
specialities
where
they are most needed.
General institutional
subsidies for training health professionals would be
eliminated,
training
of mental
health professionals would be phased out by
the end of 1982, and there would be no new
scholarships
in
the
remainder
of
1981
or in 1982 for the NHSC.
The Administration
also proposes to end the
current
practice
of paying
more
to
educational
institutions
for
a Federally
supported
research
trainee under the national research service awards
program
than
is charged
in tuition
and
fees
to non-Federally
supported
students at the same institutions.
These
reforms
would
reduce
1982 budget authority by $140 million and outlays by $133 million
below the January request.
Proposed
reforms
of consumer and occupational health and safety
programs would reduce 1982 budget authority by
$81 million
and
outlays by $68 million below the January budget request.
-72600:
INCOME SECURITY
($ billions)
Actual
Estimate
1980
1981
1982
Budget Authority
January budget
Implicit functional change _l/
Reestimates and revised economic
assumptions:
Retirement and disability programs:
Social security
Other
Unemployment compensation
Food and nutrition assistance
Other income security
Policy reductions:
Retirement and disability programs:
Social security
Other
Unemployment compensation:
Extended benefits
Trade adjustment
Ex-Servicemen
Other
Housing assistance:
Program level
Rent contribution
Modernization
Indian housing
Other
Food and nutrition assistance:
Food stamps
Food assistance to Puerto Rico-...
Child nutrition
Other
Other income security:
Aid to families with
dependent children
Hardship assistance block grant...
Supplemental security income
Other
224.2
Revised budget
224.2
255.2
279.6
-0.3
1.4
-0.1
-0.6
0.8
-0.1
-1.6
-0.1
-0.3
-*
-0.1
-0.1
-0.4
-0.1
*
-4.6
-0.3
-0.2
-0.2
-1.2
-0.2
0.2
-8.7
-0.1
-0.5
-0.7
-0.1
-2.3
0.9
-1.3
-0.6
*
-*
-0.7
-0.4
0.2
-0.1
249.9
261.8
-73($ billions)
Actual
Estimate
1980
1981
1982
Outlays
January budget
Implicit functional change 1/
Reestimates and revised economic
assumptions:
Retirement and disability programs:
Social security
Other
Unemployment compensation
Food and nutrition assistance
Other income security
Policy reductions:
Retirement and disability programs:
Social security:
Minimum benefits
Student benefits
Disability insurance
Death benefits
Other
Unemployment compensation:
Extended benefits
Trade adjustment
Ex-Servicemen
Other
Housing assistance:
Program level
Rent contribution
Other
Food and nutrition assistance:
Food stamps
Food assistance to Puerto Rico....
Child nutrition
Other
Other income security:
Aid to families with
dependent children
Hardship assistance block grant...
Supplemental security income
Other
193.1
Revised budget
193.1
231.6
255.0
-0.3
-0.4
-0.1
-0.7
-2.0
-0.3
-1.4
-0.3
-0.4
*
-*
-*
-0.1
-*
-0.5
-0.1
0.1
-*
-*
-0.1
-1.3
-1.0
-0.4
-0.2
-0.1
-*
-1.2
-0.2
-0.1
-*
-0.1
-0.1
*
-2.3
0.9
-1.2
-0.5
*
*
-0.7
-0.4
0.2
-0.1
229.7
241.4
1/ In the January budget,
foster
care
and
adoption
assistance were
classified
in the
income
security function.
Starting in 1982 they are incorporated into the
social
services
block grant proposal in the education, training, employment, and
social services function.
* $50 million or less.
338-780 0 - 81 -1+
-74Reestimates and revised economic a s s u m p t i o n s * — T h e
anticipated
improvement
in
the
economy
and other factors have resulted in
downward reestimates for most
income
security
benefits
under
existing
law.
Estimated
outlays for social security and other
retirement benefits under existing law have been revised downward
by $0.5 billion in 1981 and $2.3 billion in 1982.
The
estimates
of outlays for unemployment compensation under existing law have
been reduced by $0.7 billion in 1981 and $1.4 billion
in
1982.
The
revised
estimates
for
other income security outlays under
existing law are below the January estimates by $0.4 billion
for
1982.
Under
current
economic
assumptions,
the proposed
change
in
extended
unemployment
benefits
is estimated
to
reduce
1982
outlays by $1.2 billion, compared to a savings of $2.2 billion in
the
January
budget estimates for a similar change.
The savings
associated with annual indexation of Federal employee
retirement
are
currently estimated to be $515 million in 1982, $140 million
less than the January budget estimate.
Proposed r e d u c t i o n s . — P r o p o s e d policy reductions from the January
budget in budget authority and outlays for 1982 are estimated
to
be $15.8 billion, and $8.8 billion, respectively.
Retirement and
disability
programs
are reduced in 1982 from the January budget
by $0.2 billion in budget authority and $3.0 billion in
outlays.
Unemployment
compensation
is reduced by $1.2 billion in budget
authority and $1.5 billion in outlays, while housing
assistance
is reduced by $10.1 billion in budget authority and $0.2 billion
in outlays.
The
food
and
nutrition
assistance
programs
are
reduced
by
$3.4 billion in budget authority and $3.2 billion in
outlays.
Retirement and disability p r o g r a m s . — W h i l e the Administration
is
committed to protecting basic retirement and disability benefits,
the
budget
includes
a number
of
legislative
proposals
to
eliminate unintended benefits.
Since the enactment of social
security,
a number
of
unearned
benefits
have
been
added
to the basic old-age and survivors
insurance program.
In recent
years,
these
non-basic
benefits
have
threatened
the
continued
solvency
of
the basic social
security program.
The Administration is proposing the
following
changes in social security benefits:
—
Minimum b e n e f i t . — U n d e r current law,
everyone
eligible
for social security benefits receives at least a minimum
payment
of $122 a month, regardless of their employment
history.
The main beneficiaries of the minimum
payment
provision
are
those with
a modest
work history in
employment covered by
social
security.
Many
of
the
recipients
had
long
periods
of Federal
civilian
employment and therefore also receive
generous
Federal
pensions.
Because
these
recipients
receive
social
security payments far in excess of the
level
to
which
their taxes entitle them, they represent a serious drain
on
the
social
security
trust funds.
Eliminating the
"minimum
benefit"
would
stop
this
drain,
without
-75reducing benefits for truly needy retirees at all; their
benefits
would
be
replaced,
dollar
for
dollar,
by
increased payments from the supplemental security income
program.
The net outlay savings
associated
with
this
proposal are estimated to be $1.3 billion in 1982.
—
Student b e n e f i t s . — A n o t h e r
unearned
benefit
that
was
added
to
the
social
security
system
in 1965 is the
payment to
adult
students whose
parents
are
social
security beneficiaries.
These payments are unrelated to
the
educational
costs
incurred,
are
often inversely
related
to
family
needs,
and
duplicate
benefits
available
under
other
Federal
student
assistance
programs.
Adult student payments have grown
from
$165
million in 1965 to over $2.0 billion in 1981. Under the
Administration's
proposal,
no new recipients would be
eligible, and current student payments would be
reduced
by
25%
annually.
The
outlay savings associated with
this proposal are estimated to be $1.0 billion in 1982.
—
Disability b e n e f i t s . — T h e Administration
also
proposes
to
reduce
mounting
disability
insurance
costs
by
tightening
administration
and
ending
misdirected
benefits.
In addition,
an
overall
limit
will
be
established on disability benefits so that the
benefits
recipient
receives
from
all
public
sources never
a
exceeds
the worker's
prior
earnings,
adjusted
for
inflation.
This
proposal will prevent recipients with
multiple sources of disability payments
from
receiving
overly-generous
benefits.
The
Administration
will
propose
legislation
to
require
disability
insurance
beneficiaries
to have worked
6 out
of the last 13
calendar
quarters.
The proposals
are
estimated
to
reduce
outlays by $0.1 billion in 1981 and $0.4 billion
in 1982.
—
Payments upon the death of a w o r k e r . — U n d e r current law,
a payment of $255 is made upon the death of
an
insured
worker regardless of whether there is a surviving family
member.
About
half
of current
payments are made to
estates with no
surviving
spouse
or
surviving
minor
children
and many
of
these payments
go directly to
funeral home
operators.
The
costs
of
administering
these payments
is
five
times
as high as for earned
social
security
benefits.
The Administration
will
propose
eliminating this payment where there is neither
a spouse nor a child
to
receive
survivors
benefits.
Payments
to widows
and
orphans would be continued as
under current law. The outlay savings
associated
with
this proposal are estimated to be $0.2 billion in 1982.
The black
lung
disability
trust
fund is rapidly sinking into
insolvency,
producing
massive
deficits
that
are
presently
financed from general,revenues.
To put the trust fund on a sound
financial footing, the Administration will propose legislation to
restrict
benefits
to those who are truly medically disabled by
black lung and to ensure that the program is financed entirely by
-76-
a reasonable levy on the coal industry.
The
objective
of
the
proposal
is to
eliminate
questionable claims and reduce trust
fund outlays to a level where the coal industry could finance the
program without drawing on
the
Treasury.
The
legislation
is
expected
to
eliminate
the
current
deficit in this program by
1983.
Since the precise distribution between
outlay
reductions
and
revenue
increases
depends
upon
legislation that is still
being developed, the savings resulting
from
these
changes
are
reflected in the allowance for contingencies.
The
Railroad
Retirement
Board
pension system is substantially
underfunded and could be unable to pay benefits on a timely basis
by April
1982.
The
Congress
directed
the
rail
sector
to
negotiate
and
report,
by March 1,
1981,
a solution to fund
soundly the rail industry
pension
system.
On
assurance
from
labor
and
management
that they would recommend sound financing
for their industry
pension,
the Congress
enacted
an
ad
hoc
increase
to take effect in June 1981.
Since the parties neither
agreed to nor recommended a solution
to the pension
system's
imminent
insolvency, the Administration proposes to defer the ad
hoc increase until after current
benefit
payments
are
soundly
funded.
The Administration
will
support
the
Rail
Pension
96th
Congress,
Assurance Amendments, originally proposed in the
as
a way of solving the rail industry pension system's long-term
actuarial deficit on an evenhanded basis without
added
Federal
subsidies.
Under
present
policy,
virtually
every Federal benefit payment
that has automatic adjustments for the
impact
of
inflation
is
adjusted once a year.
Federal employee retirement and disability
benefits,
however,
are
currently
adjusted
twice
a year.
To
assure
equitable
treatment
for
all
beneficiaries,
the
Administration
supports legislation to replace biannual cost-ofliving adjustments with a single
annual
adjustment
for
civil
service
and
other
Federal
retirees.
This proposal, which was
also included in the January budget, is now estimated
to
reduce
1982
outlays
in this function by $0.5 billion.
The savings in
retired pay for military
personnel
is estimated
to be
$0.4
billion in 1982, are classified in the national defense function.
The
Administration
intends
to
continue
exploring
the
appropriateness of the existing
inflation
adjustment
mechanism
for
federal
retirees
and
their survivors.
An attempt will be
made to
identify
and
correct
inequities
in that
adjustment
mechanism.
The
Administration
also supports the tightening of criteria for
granting
Federal
employees
disability
and
early
retirement
benefits.
Changes
in the
administrative guidelines governing
these programs will reduce the number
of beneficiaries
and
is
expected to lower outlays in 1982 by $180 million.
As
part
of
the general effort to improve entitlement programs,
the Administration will propose legislation to reform the Federal
employees
injury
compensation
program.
These
changes
are
intended
to
remove
(1) incentives to file questionable claims;
(2) disincentives for injured workers to return to work when they
-77-
are medically able to do so; and (3) inequities
in
compensation
rates,
which
now permit higher-paid workers to receive more in
compensation benefits than they received in take-home
pay
when
working.
The
proposed
reforms would
ensure
the
efficient
compensation
of
justifiable
claims, while
eliminating
the
overcompensation
and
other inequities that currently plague the
Federal employees compensation program. Outlay
savings
of
$50
million are expected in 1982.
Unemployment c o m p e n s a t i o n . — U n d e r
current law, during periods of
high unemployment, the Federal Government assists the
States
in
providing
an
additional
13 weeks
of unemployment
insurance
benefits ("extended benefits") beyond the 26 weeks
of
coverage
provided
by basic State programs.
As announced on February 18,
the Administration will propose
legislation
to
focus
extended
benefit
payments
only
on
those
areas where high unemployment
provides a real barrier to employment for unemployed workers.
The legislation
would:
(1) eliminate
the
national
extended
benefits program, which now requires payment of extended benefits
in all
States
— including those with low unemployment — when
the national insured unemployment rate reaches the level
set
by
law;
(2)
remove
claimants
of
extended
benefits
from
the
calculation of the insured unemployment
rate, which
determines
when
extended
benefits
are paid
in
each
State; (3) require
recipients of extended benefits to have worked 20 weeks
in
the
one-year
base period;
and
(4) require
a higher
level
of
unemployment in individual States before
extended
benefits
are
paid.
State
trigger
rates would
be
increased to 5% insured
unemployment (and 120% of the rate in the
comparable
period
of
the prior 2 years) or, at State option, to 6% (without regard to
prior years).
In addition,
the
requirement
in the
Omnibus
Reconciliation
Act of 1980 that extended benefits claimants must
accept
offers
of
jobs
that
pay
an
amount
equal
to
their
unemployment
benefits
or the minimum wage, whichever is higher,
will be
strictly
enforced.
The Administration
will
propose
legislation
to apply
this same provision to claimants who have
collected at least 13 weeks of regular benefits.
The Administration proposal would eliminate the national
trigger
on July 1, 1981 and change the method of calculating the insured
unemployment
rate
the week
following
enactment.
To
permit
necessary
changes
in State
law, the increase in State trigger
rates, the requirement of 20 weeks of work in the base
period,
requirement
that
claimants
under the regular program
and
the
accept jobs paying at least their weekly benefit
amount
or
the
minimum
wage
after
13 weeks
of benefits, would
take effect
October 1, 1982.
In comparison
to
current
law,
proposed
reforms
to
extended
benefits
are
now estimated to reduce outlays by $0.5 billion in
1981 and $1.2 billion in 1982. The January budget also
included
legislation
to
change
the method
of
calculating
extended
benefits.
Under the economic assumptions used
in January,
the
proposal was estimated to reduce 1982 outlays by $2.2 billion.
-78The Administration will propose legislation to make
ex-military
personnel
who voluntarily leave the service, who are released or
separated for cause, or who fail to reenlist when they could have
done so, ineligible for unemployment benefits.
This change would
be effective July 1, 1981, and would reduce 1981
outlays
by
an
estimated
$60 million
and
1982
outlays
by an estimated $225
million.
The Administration will also propose legislation
to
reform
the
trade adjustment assistance (TAA) program.
This legislation will
direct benefits to those workers who have not been called back to
work by
their former employers and who have been unable to find
other
work
by
the
time
their
eligibility
for
unemployment
insurance has ended.
Weekly
TAA benefit
amounts will
be
the same as the worker's
weekly unemployment insurance benefit amount
and
will
be
paid
only
to workers who have used up all their weeks of unemployment
insurance.
This change would become effective for all
claimants
October 1, 1981.
This proposal is estimated to reduce outlays by
$1.2 billion in 1982.
Housing a s s i s t a n c e . — A s
part
of the
general effort to control
long-term Federal
government
spending,
the Administration
is
proposing
several
reductions
in housing assistance provided by
the Department of Housing and Urban Development (HUD):
—
The Administration
is requesting
funds
for
175,000
additional subsidized housing units in 1982, compared to
260,000
units
in
the
January
budget.
The
1981
subsidized housing program will also be reduced from the
254,550 unit level proposed in the
January
budget
to
210,000 units.
This is a more realistic estimate of the
program
level
likely
to be
achieved
in
1981.
In
addition,
the Administration
proposes
shifting
the
percentage mix between new and existing units from 50/50
to
45/55 in 1982 to take greater advantage of the lower
subsidy costs for existing
housing.
To
achieve
this
policy
change,
the
President
will propose to rescind
$4.6 billion in 1981 budget authority for the Department
of Housing and Urban
Development's
subsidized
housing
program.
The
Administration
will
also propose
a
reduction
in
1982 budget
authority
for
subsidized
housing of $8.7 billion.
—
The Administration proposes to increase
gradually
over
the next 5 years the maximum allowable rent contribution
paid
by
tenants living in federally subsidized housing
from 25% to 30% of their
adjusted
income.
Currently,
very
needy households pay less than 25% of their income
for rent in HUD subsidized housing projects.
Since this
proposal provides for the same rate of increase for
all
tenants,
the
differential
for
the very needy will be
maintained.
This
change will
be
achieved
through
administrative action and proposed legislation.
-79Th e proposal will decrease budget authority
by
$60 million
in
1982.
The reduction will decrease budget authority by over $400
million in 1986.
Outlays
are
estimated
to decline by
$0.3
billion
in
1982.
However, by 1986, outlays are estimated to be
almost $1.1 billion less than the outlays for subsidized
housing
and
public
housing operating subsidies estimated in the January
budget.
—
The Administration
also proposes
to
stretch
out
construction
and
renovation
activity
for
the public
housing modernization program.
This will be achieved by
rescinding $300 million of
the
1981
appropriation
of
$2.0 billion and reducing the 1982 appropriation request
by $500 million to $1.5 billion.
—
In addition, the Administration
proposes
to
terminate
HUD's
Indian housing
program in 1982 and rescind $0.2
billion in budget authority for
the program
in
1981.
The
current
backlog
of
22,000
funded but unfinished
Indian housing units represents a 5 1/2 year
supply
at
the
4,000
unit
program
level proposed in the January
budget. With an average budget authority cost
of
over
$175,000
per
unit
there is no reason to continue this
very expensive and substantially backlogged program.
Food and nutrition a s s i s t a n c e . — I n
accord
with
the
Administration's
efforts
to target assistance to the most needy
families, major changes will be proposed in the
food
stamp
and
child
nutrition programs.
The changes in the food stamp program
are designed to eliminate anomalies found in the present
program
families
with high annual incomes are nevertheless
under
which
eligible for food stamps.
The Administration's
program
would
remove about 400,000 such households from the rolls.
The January
budget
for
food
stamps
included
legislative
savings of $0.5
billion in 1982 outlays.
The revised budget reflects gross
food
stamp changes
of
$3.1 billion in 1982 outlays.
Funds totaling
$1.1 billion for food stamps to Puerto
Rico will
be
converted
into a proposed block grant for Puerto Rico at the reduced amount
of 0.9 billion in outlays for 1982.
Food
stamps
account for more than 10% of the personal income of
Rico.
To
improve
the
residents of the Commonwealth of Puerto
administration
of
these
activities
and
to make
them
more
responsive to the
Commonwealth's
culture,
economy,
and
food
preferences,
a consolidation of funds amounting to $0.9 billion
is proposed.
This
block
grant would
eliminate
the
detailed
nutritional
prescriptions, financial reporting and accounting of
current Federal programs,
and would
permit
the
Puerto
Rican
government
to target
nutrition
assistance
in accord with its
priorities and to stimulate local agricultural
production.
The
proposed
amount is about 75% of the 1981 level of USDA nutrition
assistance for Puerto Rico.
Under the Administration's
proposal
for
the
child
nutrition
programs,
Federal subsidies will be eliminated for students from
families of four with
incomes
above
$15,630.
Students
from
families
of
four with incomes between $11,640 and $15,630 will
-80continue to have their school meals
partially
subsidized.
For
students
from
families
of four with incomes below $11,640, the
present policy of full subsidization of meals will continue.
The
proposal would
also
terminate
funding
to purchase
new
food
service
equipment,
and
to
finance
nutrition
education
and
training grants
to
States,
subsidized
snacks,
and
all
meal
subsidies
to
schools with high tuitions.
The base and special
subsidies for both free and reduced price meals would be annually
indexed in future years from 1982 levels for price changes in the
current indices.
These proposals would reduce 1982
outlays
for
child
nutrition
by $1.6 billion below current law.
The January
budget included legislative outlay savings
of
$0.4 billion
in
1982.
The
supplemental feeding program for women, infants, and
children
(WIC) will be
focused
on
low-income
pregnant
and
lactating
women,
and
infants
under established priorities for
participation.
Applicants
with
relatively
high
incomes
or
without
measurable
nutrition
deficiencies
may not receive WIC
benefits at the 1982 funding level, which is $0.2 billion
below
the 1981 level.
The Administration
is proposing
several reforms to the aid to
families
with
dependent
children
(AFDC) and
child
support
enforcement
programs.
These
changes are designed to determine
welfare needs more accurately,
improve program
administration,
reduce
fraud
and
abuse,
and decrease Federal and State costs.
Anomalies in the present system often result in
the
payment
of
cash welfare grants to high-income families.
Changes are needed
to assure that the resources available
to a
family
are
fully
taken
into
account
in determining the family's need for public
assistance cash payments,
to
improve
incentives
to work,
to
standardize
and simplify program requirements and administration
(which will help reduce errors, waste, and
abuse),
to
increase
child
support
collections
(which will
reduce
the
amount of
welfare payments needed), and to provide a more equitable balance
between the State and Federal shares
of
enforcement
costs
and
collections.
These
proposals
are
expected
to
reduce
1982 outlays by $0.7
billion.
The January budget also included outlay savings of $0.5
billion in 1982.
The Administration
is
also
preparing
several
improvements
in the
supplemental
security
income
reduce errors and waste.
management
program to
Other income s e c u r i t y . — T h e
Administration
is
proposing
reductions
in the
refugee
assistance program reflecting lower
refugee flow to the United States, earlier phaseout
of
the
old
Cuban
refugee
program
(1962 to 1978 arrivals), reduced Federal
administration,
and
elimination
of
funds
for
non-State
administered,
low-priority
social
service programs.
This will
produce outlay savings of $31 million for 1981.
Increased reliance on the sponsors of immigrants
to meet
their
obligations
with
respect to an immigrants' first 3 years in the
United States will reduce AFDC outlays by $15 million in 1982.
-81An expansion of the earned income tax
credit,
proposed
in
the
January
budget,
has
not been included as part of the economic
recovery plan.
The Administration
will
propose
legislation
to
consolidate
authorities
for
energy
and
related assistance into a hardship
assistance block grant to States. The Administration's
proposal
will
enable
States
to assist low-income households to meet the
rising cost of home heating and assist households
facing
other
hardship
situations
that may
not be
energy
related.
This
consolidation will result in outlay savings of
$0.4 billion
in
1982.
-82-
700:
VETERANS BENEFITS AND SERVICES
($ billions)
Actual
Estimate
1980
1981
1982
Budget Authority
January budget
Revised economic assumptions:
Service-connected compensation
Non-service-connected pensions
All other
Policy reductions:
Readjustment benefits
Medical care
Hospital construction
All other
21.2
Revised budget
23.2
25.0
-0.1
-0.1
-0.1
-0.2
-0.4
-0.1
-0.1
21.2
22.9
24.2
January budget
Revised economic assumptions:
Service-connected compensation
Non-service connected pensions
All other
Policy reductions:
Insurance policy loans
Readjustment benefits
Medical care
Hospital construction
All other
21.2
22.6
24.5
Revised budget
21.2
Outlays
*
-0.1
-*
-*
-0.1
-*
-0.1
-*
^
-0.1
-0.1
-0.4
-0.1
-0.1
22.4
23.6
$50 million or less.
The Administration
proposes
to reduce budget
authority
for
veterans benefits and services from the January budget request by
$0.3 billion in 1981 and $0.7 billion in 1982. Estimated outlays
in 1981 and 1982 are below the January budget by $0.2 billion and
$0.8 billion,
respectively.
These reductions are in large part
the result
of
lower
projected
inflation,
revisions
in
entitlements to eliminate unintended benefits, the application of
sound criteria to economic subsidy programs, and a stretch-out of
capital investment programs.
Revised economic a s s u m p t i o n s . — A
decline in budget authority and
outlays for service-connected compensation
of
$0.1 billion
in
-83-
1982
reflects
lower
estimates
of proposed
cost-of-living
adjustments than the January budget.
Lower
automatic
cost-ofliving
adjustments
reduce budget authority and outlays for nonservice-connected pensions by $11 million in 1982.
Policy r e d u c t i o n s . — A t present, VA
insurance
policy
loans
are
made
at
5%
interest
rates,
a fraction of the interest rates
charged on secured loans in private markets.
This
has had
the
effect of encouraging veterans to borrow on their policies, often
diminishing
the
future
security
of veterans' families as the
value of the policy is reduced.
The Administration
proposes
to
decrease
the
interest
subsidy
now given to veterans receiving
insurance loans.
This proposal reduces outlays by
$0.1
billion
in both 1981 and 1982.
A
2-year extension
of
the
period
of eligibility for certain
readjustment benefits for needy and
educationally
disadvantaged
Vietnam-era
veterans,
which was proposed in the January budget,
is not supported by this Administration.
The
current
10-year
period of eligibility is sufficient and the same as that provided
for
veterans
of previous
wars.
Elimination of this proposal
reduces
1982 budget
authority
and
outlays
below
the
level
proposed in January by $0.1 billion.
The Administration
proposes
a ceiling on the funding available
for VA physicians' and dentists' bonuses.
Under
this
proposal
funds
available
for bonuses will be limited to 12% of the total
annual appropriations for physicians and dentists pay.
This will
reduce the annual costs of bonuses for VA physicians and dentists
by approximately $40 million,
to the
level
estimated
by
the
Congressional
Budget
Office
at
the
time
the
Congress
was
considering passage of PL 96-330, the legislation that authorized
the additional
bonuses.
In
addition,
moderate
staffing
reductions
in non-clinical
personnel
will
be
imposed on the
Department of Medicine and Surgery
(DM&S),
which
would
return
DM&S
to
its
1979
staffing
level.
These
actions
and
the
withdrawal of several new initiatives that were included
in
the
January budget will save $0.3 billion in outlays in 1982.
Some cancellations and delays in the Veterans Administration (VA)
hospital construction program are proposed.
These changes, which
can be
accomplished
without significant short-run detriment to
the VA medical system, reduce proposed budget authority
by
$0.2
billion
in
1981
and $0.1 billion in 1982. Outlays in 1981 and
1982 are estimated to be reduced by $28 million and $0.1 billion,
respectively.
Proposals in the January
budget
to end
payments
for
general
flight
training
and
correspondence
courses
and
to terminate
outpatient dental benefits for certain non-service-related dental
problems are included in the revised budget.
The
Administration
also proposes to reduce travel reimbursements for veterans being
treated for non-service-connected disabilities by requiring a
$5
deductible payment.
-84-
750:
ADMINISTRATION OF JUSTICE
($ billions)
Actual
Estimate
1980
1981
1982
Budget Authority
January budget
Policy reductions:
Legal Services Corporation
Office of Juvenile Justice and
Delinquency Prevention
Personnel and other reductions
4.4
Revised budget
4.5
4.8
-0.3
-0.1
-0.1
-0.2
4.4
4.4
4.2
January budget
Policy reductions:
Legal Services Corporation
Office of Juvenile Justice and
Delinquency Prevention
Personnel and other reductions
4.6
4.8
4.9
Revised budget
4.6
Outlays
-0.3
-0.1
-*
-0.2
4.7
4.4
$50 million or less.
The Administration proposes to reduce budget
authority
by
$0.1
billion
in 1981 and $0.6 billion in 1982, and to reduce outlays
by $0.1 billion in 1981 and $0.5 billion in
1982
compared
with
the January budget request.
Policy r e d u c t i o n s . — T h e
authorization
for
the Legal
Services
Corporation has expired.
In lieu of proposing funding
for
this
program
in 1982, the President has proposed a consolidated block
grant to States for social services.
Legal
services would
be
authorized
activities
within
the programs
encompassed by the
block grant.
Increased pro bono efforts by private attorneys, as
part of their professional responsibility, are a major way
of
augmenting legal services activities financed by the block grant.
The Administration believes that services currently authorized in
programs
of the Office
of Juvenile
Justice
and Delinquency
Prevention can be provided
under
the broader
authorities
of
programs proposed for consolidation into a social services block
grant.
The Administration
therefore
proposes
that
these
activities
be
carried
out by the States in the context of the
-85-
block grant, which
is discussed
in the
employment, and social services function.
education,
training,
The Administration is proposing significant travel, procurement,
and personnel reductions in this function.
These
measures
will
reduce estimated outlays by $0.1 billion in 1981 and $0.2 billion
in 1982.
-86-
800:
GENERAL GOVERNMENT
($ billions)
Actual
Estimate
1980
1981
1982
Budget Authority
January budget
Policy reductions:
Central fiscal operations
Federal buildings fund
Other
4.6
5.4
5.4
-*
-0.1
-0.1
-0.1
Revised budget
4.6
5.4
5.1
January budget
Policy reductions:
Central fiscal operations
Other
4.5
5.2
5.2
-*
-0.1
-0.1
Revised budget
4.5
5.1
5.0
Outlays
$50 million or less.
Several small proposed
policy
reductions would
reduce
budget
authority and outlays for the general government function by $0.1
billion
in
1981 and by
$0.3 billion in 1982 from the January
budget levels.
Policy r e d u c t i o n s . — T h e President has signed an Executive
Order
terminating
the Council
on Wage and Price Stability's wage and
price standards program.
Outlays for the Council
on Wage
and
Price
Stability
are estimated to be $5.2 million lower in 1981
than the January estimates and $4.4 million lower in 1982.
Proposed budget authority for central fiscal operations is
lower
than the January levels by $32 million in 1981 and $116 in 1982.
Outlays are estimated to be $47 million lower in
1981
and
$126
million
lower
in 1982.
Because the Administration's proposed
reduction in marginal rax rates is expected to enhance
voluntary
compliance,
the
level of
increase in Internal Revenue Service
enforcement staff proposed in the January
budget
will
not
be
necessary.
The Administration does, however, support the January
budget
request
to
increase IRS personnel for the collection of
unpaid taxes.
The Administration is also proposing a broad
reform
of
Federal
Financing
Bank operations that will affect its major users, such
-87-
as the Rural Electrification
Administration
and
the
Tennessee
Valley Authority,
and will
affect other, non-Federal entities
that borrow from the FFB under Federal
guarantees.
This
is
discussed in more detail in Part 2 of this document.
Reductions in the amount of new construction of Federal buildings
and
in the amount of space leased by the Federal Government are
proposed
in conjunction with
expected
decreases
in
Federal
personnel
levels.
New obligational authority for construction
would decrease from the $196 million previously proposed for 1982
to $28 million.
This would decrease budget
authority
for
the
Federal buildings
fund by
$121 million in 1982. The two new
projects that the Administration
proposes
to
fund
are
border
stations
in California
and Maine. The amount of leased office
space would also be
reduced
by
1%
from
levels budgeted
in
January, and may decrease further as the need for office space is
reassessed.
The Administration supports the proposal included in the January
budget to increase funds for the purchase of new vehicles in 1981
by
$100 million.
The original proposal,
which would
have
replaced
all motor pool vehicles over five years of age, will be
changed to
include
replacing
some
leased
vehicles with
new
vehicles.
This will
reduce Federal Government costs over the
life of the vehicles.
These purchases
of new vehicles
will
assist
the automobile
industry during a particularly difficult
period
of high
unemployment
and will
contribute
to
energy
conservation
and
cleaner
air by replacing older vehicles with
cleaner, more fuel-efficient vehicles.
Consistent with its overall
effort
to reduce
the number
of
categorical
grant programs, the Administration will not request
funding for the Intergovernmental Personnel
Act
grant
program.
This would
reduce
1982 outlays by $13 million from the January
level.
-88850:
GENERAL PURPOSE FISCAL ASSISTANCE
($ billions)
Actual
Estimate
1981
1980
1982
Budget Authority
January budget
Reestimates
Policy reductions:
Withdrawal of proposed tax credit for
State and local governments
Loans to the District of Columbia for
capital improvements
Policy increases:
Withdrawal of the proposal to
eliminate payments in lieu of taxes.
8.7
Revised budget
8.7
6.2
6.5
January budget
Reestimates
Policy reductions:
Withdrawal of proposed tax credit for
State and local governments
Loans to the District of Columbia for
capital improvements
Policy increases:
Withdrawal of the proposal to
eliminate payments in lieu of taxes.
8.6
6.9
-*
6.9
0.1
Revised budget
8.6
6.2
6.9
0.1
-0.5
•
Outlays
-0.5
-0.1
*
6.8
6.4
§50 million or less
The Administration's budget revisions for general purpose
fiscal
assistance
result
in a net decrease
in budget authority and
outlays of $0.5 billion for 1982 from the January budget.
R e e s t i m a t e s . — O u t l a y s are expected to increase by $70 million
in
1982
for Federal land management receipt sharing programs due to
higher estimates for receipts.
Repayments for advances
to
the
District
of Columbia
general fund are estimated to increase by
$60 million in 1981, thus reducing outlays by that amount.
Proposed r e d u c t i o n s . — T h e Administration proposes
reductions
of
$570 million
in outlays in 1982 for two programs.
Withdrawing
the proposal made in the January budget for tax
credit
payments
-89-
to State and local governments accounts for $495 million of this
reduction.
Another $75 million will be saved by limiting Federal
loans to the District of Columbia for
its
capital
improvements
program.
It is proposed that outlays for this program be capped
at $145 million in 1982 and that it be phased out by 1984.
It is
anticipated that the District of Columbia government
will
enter
the municipal bond market and, thus, will have no further need to
borrow from the U.S. Treasury after 1983.
Proposed i n c r e a s e s . — T h e
Administration
is
withdrawing
the
January budget proposal to eliminate
the payments
in
lieu
of
taxes
program
to
State and local governments.
Restoring funds
for this program will increase outlays by
$45 million
in
1982
over
the
January
budget
level.
Funds for resumption of this
program are contingent upon the passage of new
legislation
that
will revise the payment formula.
-90900:
INTEREST
($ billions)
Actual
Estimate
1980
1981
1982
Budget Authority
January budget
Reestimates and revised economic
assumptions:
Interest on the public debt
Other interest
64.5
80.4
89.9
-3.5
0.3
-8.4
1.0
Revised budget
64.5
77.2
82.5
January budget
Reestimates and revised economic
assumptions:
Interest on the public debt
Other interest
64.5
80.4
89.9
-3.5
0.3
-8.4
1.0
Revised budget
64.5
77.2
82.5
Outlays
Budget authority and outlay estimates for the
interest
function
have
decreased
since January due
to lower projected interest
rates, partially offset in 1982 by higher borrowing requirements.
These changes have decreased
estimated
budget
authority
and
outlays
for
interest
on the public debt by $3.5 billion to a
level of $90.6 billion in 1981, and $8.4 billion to $98.1 billion
in 1982. These large decreases in interest on the public
debt
are partially
offset by decreases in interest received on loans
made to the Federal Financing Bank.
-91920:
ALLOWANCES
($ billions)
Actual
Estimate
1980
1981
1982
Budget Authority
January budget
Policy reductions:
Civilian agency pay raises
Contingency allowance
Revised budget
3.0
-0.2
-0.5
2.3
Outlays
January budget
Policy reductions:
Civilian agency pay raises
Revised budget
1.9
-0.1
1.8
The allowance function
includes
amounts
for Federal
civilian
agency
employee pay
raises, future initiatives, and unforeseen
requirements.
The Administration proposes to reduce 1982
budget
authority
and
outlays
for allowances
from the January budget
levels by $0.7 billion and $0.1 billion, respectively.
Proposed r e d u c t i o n s . — A s part of its general
effort
to
reduce
Federal
overhead,
personnel,
and
regulatory
costs,
the
Administration will recommend comprehensive
legislative
changes
in the way
that
Federal
civilian pay
rates
are set. When
enacted, these proposals will reduce
outlays
from the
current
services base by $2.5 billion in 1982.
The Administration supports the principle of comparability as the
best basis
for adjusting Federal civilian pay, but will propose
major changes
in the way
comparability
is calculated.
The
following major
components are among those being considered for
inclusion in proposed legislative changes:
1.
Broadening the principle of comparability by:
establishing total compensation comparability—including
both pay and benefits,
rather
than
just p a y — a s
the
basis for calculating comparability; and
—
including State and local government pay and
benefits,
rather
than only those of private industry, in the data
on which compensation scales will be based.
-92-
2.
Bringing
Federal
compensation
rates
and
practices
more
closely in line with those of the non-Federal sector by:
—
setting white-collar pay on a locality basis?
—
changing certain features of the Federal wage system for
blue-collar
workers
to provide
much
more
accurate
comparability with locally prevailing rates?
—
changing Federal premium pay
laws
to make
them
more
consistent with the Fair Labor Standards Act and private
sector practices; and
—
providing
the
executive
branch
with
additional
pay
flexibility
to recruit
and manage a high-quality work
force.
The above components are included in legislation proposed by
the
previous
administration.
In addition, this Administration will
propose
establishing
the
Federal
compensation
comparability
standard
at
94% of average non-Federal compensation (including
benefits),
thereby
recognizing
those
aspects
of
Federal
employment that make it more attractive than many comparably-paid
jobs in the private sector.
Enactment
of
these
proposals is expected to result in a whitecollar pay increase in October 1981
of
approximately
4.8%.
A
final
decision
on the level of the October 1981 pay increase is
late
summer
after
Presidential
review
of
the
made
in the
recommendations
of
the
President's
Compensation Agent and the
Federal Employees Compensation Council and after a review of
the
prevailing economic conditions.
The
President
has
concluded
that
the
increases
in
Federal
executive salaries proposed
in the
January
budget
should
be
deferred
because
current
economic
conditions
require
that
substantial
budget
reductions
be
achieved.
However,
the
President
is deeply
concerned about the diminishing ability of
the
Federal
Government
to attract
and
retain
high
caliber
executives.
The Administration
will, therefore, work with the
Congress in developing other ways to address
this
issue
before
the
next
report
of the
quadrennial
Commission on Executive,
Legislative, and Judical Salaries, which is due in 1984.
The allowance for civilian agency pay
raises was
estimated
in
January with the assumption that agencies would absorb 30% of the
cost
of these raises.
The absorption rate has been increased to
40%.
These changes would reduce 1982 allowances by $0.2
billion
in budget authority and $0.1 billion in outlays from the January
levels.
The contingency allowance for unforeseen
requirements
has
been
reduced
to
$1.5 billion in budget authority and $1.0 billion in
outlays for 1982 through 1986.
It is expected that these levels,
in addition to the anticipated savings discussed below,
will
be
adequate to fund any unforeseen requirements.
-93-
The Administration
is committed to improving the management of
Federal Government activities.
This is already
underway.
The
President
has placed a complete freeze on Federal hiring and has
ordered limits on procurement
of office
equipment,
consulting
services,
and
Government
travel.
For
1982 and beyond, every
aspect of Federal management and administrative practice will
be
evaluated.
In particular, the Administration expects substantial
savings from improvements in administrative practices designed to
increase
the level of competition in the procurement process and
to collect money owed to the Federal Government on a more
timely
basis.
It
is the general policy of the Administration to rely, whenever
possible,
on
the
competitive private
sector
to
supply
the
products
and
services the Federal Government needs.
The Office
of Federal
Procurement
Policy
is,
therefore,
working
with
agencies to:
—
increase competition in the procurement
services and in the acquisition of major
of goods
systems?
and
—
increase agency compliance with OMB circular A-76, which
requires agencies
to determine
which
commercial
and
industrial
type
activities
could
be performed
more
efficiently through contracts with private firms?
—
curtail the use of consulting services?
and
improve other acquisition programs such as
commercial distribution systems.
the
use
of
The Administration
is developing ways to improve the collection
of tax and loan payments owed to the Government
and
overpayment
of benefits.
The
accounting
and
servicing,
collection, and
liquidation functions related to debt management can be
handled
more
efficiently
through
private
contractors
who have
the
necessary training and expertise than through hiring or
training
additional
Federal
personnel.
The use of contractors for these
services would increase collections and decrease
the
number
of
Federal employees needed for debt management and collection.
The Administration also plans to review administrative practices
under the Davis-Bacon and Service Contract Acts.
The
principal
objective
is to ensure that prevailing wage determinations made
by the Department of Labor under these Acts reflect actual
wages
paid
in the
localities
where Federal contracts are performed.
Previous studies have indicated that substantial savings could be
achieved by revising
current
administrative
practices.
These
savings
and
the anticipated savings due to changes in the black
lung disability trust fund, which are discussed
in
the
income
security
function,
are
estimated to reduce the contingency for
other requirements by $30 million in 1981 and by $528 million
in
1982.
-94950:
UNDISTRIBUTED OFFSETTING
RECEIPTS
($ billions)
Actual
Estimate
1980
1981
1982
Budget Authority and Outlays
January budget
Reestimates and revised economic
assumptions:
Employer share, employee retirement.
Interest received by trust funds 1/,
Rents and royalities on the Outer
Continental Shelf
Policy reductions:
Rents and royalities on the Outer
Continental Shelf
-21.9
Revised budget
-21.9
1/
Includes
decreases
due
by
increases
assumptions
offset
balances.
*50 million or less
to
due
-27.8
*
0.3
-1.6
-31.9
0.1
0.8
-0.4
-0.2
-0.7
-29.3
-32.0
lower
interest
to higher
trust
rate
fund
The estimates of undistributed offsetting receipts for
1981
and
1982 have increased since January.
These increases reduce budget
authority and outlays by $1.5 billion in 1981 and $0.2 billion in
1982.
Interest received by trust f u n d s . — R e v i s e d
interest
rate
assumptions have lowered the estimates of
interest
received
by
trust funds in both 1981 and 1982. These decreases are partially
offset
by the effects of higher trust fund balances, resulting
from the Administration's policy
reductions
for
certain
trust
fund
outlays.
These
outlay
reductions
increase
trust
fund
balances and thereby increase trust fund investment
in
Treasury
securities.
Rents and royalties on the Outer Continental S h e l f . — T h e
Outer
Continental Shelf oil and gas leasing schedule will be revised as
quickly as is possible in accordance with the requirements of the
OCS Lands Act. A major objective is to shorten the time
needed
to start exploratory drilling in all OCS areas.
Efforts will be
made to streamline and shorten the OCS sale preparation
process
while
preserving adequate protection of environmental values and
the public's proprietary
interest.
The
schedule
revision
is
expected
to
increase OCS
receipts by $0.2 billion in 1981 and
$0.7 billion in•1982.
In addition, rents and royalities
on
the
Outer
Continental Shelf are expected to increase by $1.6 billion
in 1981 and $0.4 billion in 1982 due to technical reestimates and
revised oil price projections.
-95Part 4
BUDGET AUTHORITY AND OUTLAYS BY FUNCTION:
1983-1986
The longer-range budget outlook is the result of past and present
budget decisions as well as projected
economic
and
demographic
trends.
The longer-range numbers are by their nature preliminary
because they include substantial budget authority and outlays for
existing
programs
that
the Administration intends to reduce or
eliminate in order
to meet
its
spending
and
deficit/surplus
targets.
The economic assumptions that are used for the budget projections
are presented
in
Part 2.
They project
downward
trends for
inflation, interest rates, and unemployment, which will all
help
restrain
the growth in budget outlays.
However, the demographic
trends — especially the aging of the population in the
next
10
years
—
will
help
increase budget
costs,
especially
for
retirement
and health
programs.
Moreover,
essential
tax
reductions
are planned
for three
consecutive years.
The net
result of these trends is that excess outlays of $30 billion
for
1983, $44 billion for 1984, $44 billion for 1985, and $43 billion
for
1986
are being
temporarily carried in the out-year budget
projections pending the presentation of specific policy
measures
to eliminate them.
These
savings
measures are now being developed and planned, and
will be transmitted to the Congress at the earliest possible date
and
on a
continual
basis.
Illustrative
options
under
consideration include:
—
development of fundamental and comprehensive health
financing
reforms,
which would
reduce
health
inflation;
—
more efficient delivery of veterans health
—
development of alternative ways of
petroleum reserves;
—
improved
efficiency
programs;
—
reduction in error rates in income transfer
in
the
many
care
care
services;
financing
Defense
strategic
Department
programs;
reevaluation of the housing subsidy programs;
better coordination of programs
that
benefit
specific
groups of people such as Indians and miqrant workers;
reform of military and
civilian
retired
pay
so
that
people
who have been
retired
for
a while would not
receive substantially more than people
at
their
same
grade level who have just retired;
-96-
—
reconsideration of how Federal annuities are
determined
in order
not
to reward disproportionately people who
worked for a few years at high salary levels?
—
review of the Federal credit and loan guarantee programs
with particular attention on
improved
debt
collection
and forebearance policies;
—
change in the structure of the Northeast rail system
ensure a private sector solution;
—
imposition of further user charges
where
a
restricted
group
of people
benefit
disproportionately
from the
Government
service,
such
as
specialized
weather
services;
—
examination of the present Federal stockpiles to see
if
further
disposals
of
non-critical
commodities can be
made;
—
elimination of overlapping or
benefits;
—
deletion of programs
that have
objectives
which
the
private
sector
can meet
if disincentives
caused by
Government regulations or actions are removed;
—
termination of programs
which
the
private
sector
or
State
or
local
governments
can perform better or at
lower cost;
—
exploration
of ways
to
reduce
or minimize
certain
interest
subsidies
by
recovering their value from the
beneficiaries; and
—
examination of the relative changes in the size
of
the
Federal
and
State and local sectors, and how growth in
the public sector in general can be
efficiently
shared
among the three levels of government.
redundant
subsidies
to
and
The combined effects of the revised economic outlook, substantial
upward
technical
reestimates, and the President's budget reform
plan are shown in Table 14.
In comparison to the January
budget
estimates, the revised budget outlay estimates are lower by $55.5
billion
in
1983
and
$95.6 billion
by
1986.
Despite
the
substantial
reductions
underlying
the
revised
long-range
estimates,
the Administration will propose additional savings in
future budgets. When combined with the projected
receipts
and
spending
levels
resulting
from the proposals in this document,
these further proposals would produce a balanced budget by 1984.
-97-
Table 1 4 . — C H A N G E S FROM JANUARY BUDGET
TO REVISED BUDGET, 1983-1986
(in billions of dollars)
1983
1984
1985
1986
Budget Authority
January budget
Change
892.0
-51.3
962.7 1047.2 1139.1
-62.2 -72.0 -78.9
Revised budget
840.7
900.5
975.2 1060.2
January budget
Change
817.3
-55.5
890.3
-75.8
967.9 1050.3
-80.2
-95.6
Revised budget
Additional savings to be
proposed
761.8
814.4
887.7
954.7
-29.8
-44.2
-43.7
-42.7
Target outlay ceiling
732.0
770.2
844.0
912.0
Outlays
Receipts
January budget
Change
Revised budget
809.2
922.3 1052.6 1188.5
-100.1 -151.6 -202.7 -248.3
709.1
770.7
849.9
940.2
-22.9
0.5
5.9
28.2
Memorandum
Surplus or deficit under target
outlay ceiling
The spending targets provide sufficient funds to continue support
for the well established programs developed over the years
that
provide an essential social safety net. Under the Administration
targets,
the
share
of budget
resources devoted to the social
safety net would increase from an estimated 37% in 1981 to 39% by
1986.
At
the
same
time,
our Nation's
defenses would
be
modernized
and
fortified.
The budget share devoted to national
defense would increase from 25% in 1981 to 38% by 1986.
-98-
Table 1 5 . — B U D G E T OUTLAY TARGET SHARES, 1981 AND 1986
(percent)
1981
1986
National defense
24.7
37.6
Nondefense:
Social safety net
Net interest
All other
36.8
9.8
28.6
39.0
6.9
16.6
Subtotal, Nondef ense
75 . 3
62 . 4
Target outlay ceiling
100.0%
100.0%
The projections also include the Administration's initiatives
to
redefine the role of the Federal Government in relation to States
and localities.
The major proposals in this area are the several
grant
consolidations,
described
in
Part 3.
Additional
information on grants to State and local governments is
provided
in Appendix A.
In addition
to the
savings
resulting
from
specific program
reductions described in Part 3, the
revised
budget
projections
for
discretionary
nondefense
programs
provide no funds during
1983-1986 to cover future inflation.
This results in across-theboard reductions in real resources for these programs,
and
will
provide
an
incentive
to
increase
efficiency
and
costconsciousness .
Summary tables of long-range projections
by
various
categories
appear
in Part 5. Appendix B and Appendix C provide projections
of proposed increases
and
decreases
in budget
authority
and
outlays for 1981-1986.
-99-
050:
NATIONAL DEFENSE
(in billions of dollars)
1983
1984
1985
1986
Budget Authority
January budget
228.6
258.0
289.7
324.1
31.0
36.9
43.3
50.2
259.6
294.9
333.0
374.3
January
budget
Change
210.4
15.7
237.8
17.8
267.8
36.1
299.5
43.2
Revised budget
226.0
255.6
303.9
342.7
Change
Revised budget
Outlays
In comparison to the January budget projections, budget authority
for national defense is now projected to be $31.0 billion
higher
in 1983 and $50.2 billion higher by 1986. Outlays are projected
to be higher by $15.7 billion in 1983 and $43.2 billion by
1986.
These
increases
are the net differences between substantial
increases
in funding
necessary
to
improve
our
defense
capabilities,
lower
costs due to lower projected
rates
of
inflation, and reductions and economies in civilian pay and other
areas noted in Part 3.
-100-
150:
INTERNATIONAL AFFAIRS
(in billions of dollars)
1983
1984
1985
1986
Budget Authority
January budget
18.4
-0.7
20.1
-3.8
21.3
-5.2
22.4
-6.3
17.7
16.3
16.1
16.1
January
budget
Change
12.9
-1.1
13.6
-1.4
14.5
-2.3
15.3
-3.1
Revised budget
11.8
12.2
12.2
12.3
Change
Revised budget
Outlays
In comparison to the January budget projections, budget authority
for international affairs is now projected
to be
$0.7
billion
lower
in
1983
and
$6.3 billion
lower by 1986. Outlays are
projected to be $1.1 billion lower in 1983 and $3.1 billion lower
by 1986. These reductions are the net
result
of
reestimates,
proposed
reductions,
and a policy
increase for international
security assistance discussed above in Part 3.
The decisions to reduce foreign development assistance
programs,
payments
of
international organization assessments, and ExportImport Bank lending authority result
in significant
reductions
from
the January projections,
and make
room
for
critical
increases for security assistance.
-101250:
GENERAL SCIENCE, SPACE, AND TECHNOLOGY
(in billions of dollars)
1983
1984
1985
1986
Budget Authority
January budget
8.8
8.4
8.0
7.7
-1.1
-1.3
-1.1
-1.0
7.7
7.1
6.9
6.8
January
budget
Change
8.30
-1.
8.32
-1.
8.0 2
-1.
7.8
-1.1
Revised budget
7.3
7.2
6.8
6.7
Change
Revised budget
Outlays
In comparison to the January budget projections, budget authority
for general science, space and technology is now projected to
be
$1.1 billion
lower
in
1983
and
$1.0 billion lower by 1986.
Outlays are projected to be $1.0 billion lower in 1983
and
$1.1
billion
lower by
1986.
These
reductions
are
the result of
reestimates and proposed reductions and deferrals discussed above
in Part 3.
Proposed changes in the
scope
of National
Science
Foundation
activities
reduce
outlays
by
$324 million in 1983 and by $462
million in 1986.
Deferral of construction in the
Department
of
Energy's
general
science programs results in outlays savings of
$42 million in 1982, rising to $83 million by 1986.
Deferral
of
previously
planned National Aeronautics and Space Administration
space and general support activities reduces estimated outlays by
$631 million in 1983, and $592 million by 1986.
-102-
270:
ENERGY
(in billions of dollars)
1983
1984
1985
1986
Budget Authority
January budget
12.7
10.8
11.5
15.7
-3.6
-2.9
-2.9
-3.2
9.1
8.0
8.6
12.5
January
budget
Change
12.4
-3
.2
11.1
-3 .4
10.9
-2 . 9
Revised budget
9.2
7.7
8.0
Change
Revised budget
Outlays
13.0
-3 .0
10.0
In comparison to the January budget projections, budget authority
for energy is now projected to be $3.6 billion lower in 1983
and
$3.2 billion
lower by
1986. Outlays are projected to be $3.2
billion lower in 1983 and $3.0 billion
lower by
1986.
These
reductions
are
the net
result
of reestimates
and
proposed
reductions discussed above in Part
3.
These
include
reduced
subsidies
for
synthetic and alcohol fuels and demonstration and
development programs for fossil and solar energy, termination
of
the Solar Energy and Energy Conservation Bank, and elimination of
many
information
and
regulatory
programs of the Department of
Energy.
-103300:
NATURAL RESOURCES AND ENVIRONMENT
(in billions of dollars)
1983
1984
1985
1986
Budget Authority
January estimate
Change
15.3
-4.7
16.2
-5.9
16.4
-6.6
16.4
-6.9
Revised budget
10.6
10.3
9.8
9.5
January estimate
Change
15.0
-4.0
15.5
-5.7
15.4
-6.2
15.3
-6.1
Revised budget
11.0
9.7
9.2
9.1
Outlays
In contrast to the January budget projections,
budget
authority
for the natural
resources
and
environment
function
is now
projected to be $4.7 billion lower in 1983 and $6.9 billion lower
by 1986. Outlays are projected to be $4.0 billion lower in
1983
and
$6.1 billion
lower by 1986. These reductions are the net
result of reestimates and proposed reductions discussed above
in
Part
3.
The major reductions in 1983-1986 include continuation
of the moratorium on Federal
recreation
and
conservation
land
acquisition
begun
in 1981 and termination of funding for State
and urban recreation and historic preservation
grants.
Changes
also
include
increased
receipts
and
increased
resources for
existing
national
parks
to provide
necessary
facilities
to
protect
the health
and safety of visitors and to preserve park
areas from damage.
The Administration will propose legislation for two major
user
charge programs
in the water
resources area. The first will
sufficiently increase inland waterways fees to provide
recovery,
starting in 1982, of the entire cost of operating and maintaining
existing
waterways
(discussed
in
Parts 2 and
3).
This
legislation will also provide for new waterway cost
recovery
in
the
future.
The
second
user
charge will
recover,
through
proprietary receipts, the cost of dredging and maintaining
deep
water
channels
leading to our seaports, except for that portion
allocated to Government
use.
Together,
these proposals
will
increase
revenues by
$2.1 billion
over
the
1983-86 period,
offsetting costs otherwise borne by the general taxpayer.
Increased shared revenue payments
to States,
as a result
of
mineral leasing acceleration, are included in the general purpose
fiscal assistance function.
-104-
350:
AGRICULTURE
(in billions of dollars)
1984
1985
1983
1986
Budget Authority
January estimate
Change
5.6
4.9
-0.3
5.3
-0.4
5.6
-0.6
Revised budget
5.7
4.6
4.9
5.1
4.8
-0.8
5.2
-1.0
5.5
-1.1
4.0
4.2
4.4
Outlays
January estimate
Change
Revised budget
3.9
In comparison to the January budget projections, budget authority
for the agriculture function is now projected to be $0.2
billion
higher
in
1983 and
$0.6 billion
lower by 1986. Outlays are
projected to be $0.5 billion lower in 1983 and $1.1 billion lower
by 1986. These reductions are the result of proposed
reductions
in the dairy
price
support
and other commodity price support
programs discussed above in Part 3.
The reductions in price support programs in 1983-1986 reflect the
continued impact of the 1981-1982 proposed reductions as well
as
anticipated
revisions to price support operations as part of the
Administration's 4-year farm program to be
transmitted
to
the
Congress later this year.
-105370:
COMMERCE AND HOUSING CREDIT
(in billions of dollars)
1983
1984
1985
1986
Budget Authority
January budget
12.3
13.4
14.1
15.1
-6.9
-7.6
-7.8
-8.7
5.4
5.8
6.3
6.4
January
budget
Change
7.9
-4.5
9.2
-6.1
9.8
-7.6
10.5
-8.4
Revised budget
3.4
3.1
2.2
2.1
Change
Revised budget
Outlays
In comparison with
the January budget
projections,
budget
authority
for commerce and housing credit is now projected to be
$6.9 billion lower in
1983 and
$8.7 billion
lower by
1986.
Outlays
are projected to be $4.5 billion lower in 1983 and $8.4
billion lower in 1986. These reductions are the net
result
of
reestimates,
revised
economic
assumptions,
and
proposed
reductions discussed above in Part 3.
The major reductions
—
include:
discontinuation of the tandem mortgage purchase
of GNMA;
a reduction in the limitation for FHA mortgage
and loan guarantee commitments;
a reduction in direct loan
housing insurance fund;
—
a reduction in subsidies to the U.S. Postal Service;
—
withdrawal of the previous administration's proposal
make 30% of the investment tax credit refundable;
for
the
for
insurance
—
elimination
of
funding
Cooperative Bank; and
obligations
program
National
substantial reductions
in funding
and
Federal
Trade
Commission's
Bureaus
Protection and Competition.
the
rural
to
Consumer
staff
in the
of
Consumer
-106400:
TRANSPORTATION
(in billions of dollars)
1983
1984
1985
1986
Budget Authority
January estimate
Change
27.2
-6.0
28.3
-7.0
29.4
-8.0
30.5
-8.1
Revised budget
21.2
21.3
21.4
22.4
January estimate
Change
24.9
-4.5
26.6
-5.6
27.7
-6.9
29.1
-7.5
Revised budget
20.4
21.0
20.9
21.7
Outlays
In comparison to the January budget projections, budget authority
for the transportation function
is now projected
to be
$6.0
billion
lower
in 1983 and $8.1 billion lower by 1986.
Outlays
$7.5
billion
are projected to be $4.5 billion lower in 1983 and
lower
by
1986.
These
reductions
are the net
result
of
reestimates and proposed reductions discussed above in Part 3 as
well as additional policy changes occurring in 1983-1986.
The major reductions in 1983-1986 would eliminate or stretch out
lower priority Federal highway projects and would refocus Federal
highway program resources on the interstate and primary
systems.
A reduction
in mass
transit capital grants, starting in 1982,
reflects a moratorium on new Federal
commitments
for
building
transit
rail
lines or
systems, whereas
the phaseout of mass
transit operating subsidies by 1985 is part of a general
effort
to reduce dependency on government subsidy.
While Coast
Guard
funding
continues
at real rates of growth
comparable to those projected in the Carter budget, a major study
of Coast Guard roles and missions being
conducted
in
1981
may
reveal ways
to achieve
future
savings in the methods used to
provide the types of
services
and defense preparedness
now
furnished by the Coast Guard.
-107-
450:
COMMUNITY AND REGIONAL DEVELOPMENT
(in billions of dollars)
1983
1984
1985
1986
Budget Authority
January budget
9.3
9.4
9.7
-1. 9
-2 . 0
-2 .1
-2 .1
7.4
7.4
7.6
7.8
January
budget
Change
8.9
-1.3
9.2
-1.8
9.5
-2.4
9.6
-2.5
Revised budget
7.6
7.3
7.2
7.1
Change
Revised budget
10.0
Outlays
In comparison to the January budget projections, budget authority
for the
community
and
regional
development
function
is
now
projected to be $1.9 billion lower in 1983 and $2.1 billion lower
by
1986.
Outlays are projected to be $1.3 billion lower in 1983
and $2.5 billion lower by 1986. These reductions are the
result
of
reestimates and proposed reductions discussed in Part 3.
The
major reductions include:
integration of the community development block grant and
the urban development action grant programs into a
more
efficient and flexible grant mechanism;
—
termination of the rehabilitation loan fund;
—
a reduction in direct loan obligations
Home Administration;
—
termination of the Economic
Development
Administration
and
the
Regional
Development
Commissions
of
the
Department of Commerce, and the non-highway programs
of
the Appalachian Regional Commission;
termination of the
programs; and
—
coastal
and
reductions in funding for disaster
inland
of
the
energy
assistance.
Farmers
impact
-108-
500:
EDUCATION, TRAINING, EMPLOYMENT, AND SOCIAL SERVICES
(in billions of dollars)
1983
1984
1985
1986
Budget
Authority
January budget
38.0
39.7
41.3
42.7
-13.3
-14.9
-16.6
-17.9
24.8
24.8
24.7
24.8
January
budget
Change
36.5
-11.7
38.6
-14.6
40.3
-16.2
41.7
-17.6
Revised budget
24.7
24.0
24.0
24.1
Change
Revised budget
Outlays
In comparison to the January budget projections, budget authority
for education, training, employment, and social services
is
now
$13.3
billion lower in 1983 and $17.9 billion
projected
to be
lower by 1986.
Outlays are projected to be $11.7 billion
lower
in
1983
and
$17.6 billion lower by 1986. These reductions are
the net result of reestimates, revised economic assumptions,
and
proposed reductions discussed in Part 3.
The major reductions involve:
elimination of the two CETA public
service
employment
programs
by
the
end
of fiscal year 1981;
consolidation of 44 categorical education grant programs into two
block grants; consolidation of CETA youth programs
with
general
purpose
CETA training grants; and funding of numerous social and
community
services
activities
under
one block
grant.
In
addition,
the Administration
proposes
improved
targeting
of
student financial assistance provided by the Pell
grant
program
on the truly needy.
For
education
programs,
the
current
long-range estimates are
significantly below
the January
estimates.
In
1983,
budget
authority
for education programs is estimated to be $4.5 billion
below the January estimates, and $3.6 billion lower
in
outlays.
By
1986,
the
differences
from
the January estimates are $6.2
billion and $5.9 billion, respectively.
For
training
and
employment
programs,
the
Administration
proposals
reduce
1983 budget
authority
by
$6.1
billion and
outlays by $5.8 billion below the January
estimates.
By
1986,
the
savings
from
these proposals
are
$8.3 billion and $7.9
billion, respectively.
For social and community services programs, the
Administration's
block
grant
proposal would reduce 1983 budget authority by $1.7
-109-
billion and outlays by $2.0 billion below the January
estimates
for programs
in this function.
By 1986, the savings from this
proposal are $2.2 billion in budget authority and $2.5 billion in
outlays. Additional savings result
from
consolidating
Federal
management,
research
and
demonstration,
and
administrative
activities
previously
undertaken
along
categorical
lines.
Withdrawal
of support for the previous administration's proposed
tax credit for non-profit institutions reduces
budget
authority
and outlays by $0.3 billion in 1983 and by $0.5 billion in 1986.
-110-
550:
HEALTH
(in billions of dollars)
1983
1984
1985
1986
Budget Authority
January budget
96.1
107.5
121.7
139.0
-5.2
-8.5
-12.4
-17.0
90.9
99.0
109.3
122.0
January
budget
Change
84.5
-2.9
95.4
-5.1
107.1
-8.4
119.9
-13.2
Revised budget
81.6
90.3
98.7
106.7
Change
Revised budget
Outlays
In comparison to the January budget projections, budget authority
for the health function is now projected to be $5.2 billion lower
in 1983 and $17.0 billion lower by 1986. Outlays
are
projected
to be $2.9 billion lower in 1983 and $13.2 billion lower by 1986.
These changes are the net result of reestimates, revised economic
assumptions,
proposed
reduction,
and
reforms
that
the
Administration
expects
to institute
to
establish
a
more
competitive market
in the health
care industry.
The interim
reform of medicaid achieves sizeable outlay savings in all years,
rising from $2 billion in 1983 to $5 billion in 1986.
The health
service
and prevention
grant
consolidations
are
described
in Part
3.
By allowing
States the flexibility to
design comprehensive services programs
according
to their
own
priorities,
publicly funded services would become more effective
and less costly.
-111-
600:
INCOME SECURITY
(in billions of dollars)
1983
1984
1985
1986
Budget Authority
January budget
Change
310.4
-26.3
332.4
-28.9
362.8
-32.6
389.8
-33.5
Revised budget
285.2
303.5
330.2
356.3
January budget
Change
284.0
-23.7
309.1
-32.0
337.5
-41.7
364.8
-51.5
Revised budget
260.2
277.1
295.7
313.3
Outlays 1/
1/ Estimated OASI benefit outlays for 1983 through 1986 are
contained
in these
amounts
although
under
current
law
and
economic
assumptions, the OASI trust fund will be unable to make
timely benefit
payments.
The Administration
is
currently
developing
a plan
for
this and
longer-range social security
financing issues, which will be submitted to Congress in the near
future.
The benefit
outlays
are displayed
here
under
the
assumption
firmly held by this Administration that neither the
Congress nor the Administration will allow any
interruption
in
the timely payment of social security benefits.
Budget
authority
and
outlays
for income security programs are
estimated
to be
substantially
lower
during
1983-1986
than
estimated
in January.
The
net effect
of
revised
economic
assumptions, reestimates and proposed
reductions
reduce
budget
authority by
$26.3 billion
in 1983 and $33.5 billion by 1986.
Outlay estimates are reduced by $23.7 billion in 1983
and
$51.5
billion by 1986. As discussed in Part 3, the Administration has
proposed reductions in the
following program
areas:
general
retirement
and disability insurance, Federal employee retirement
and disability, unemployment
compensation, housing
assistance,
food
and
nutrition
assistance,
and other
income
security
programs.
However, the proposed reductions in income security do not affect
the programs that comprise an essential
social
safety
net
of
income support.
For example, the basic retirement and disability
benefits
under
the social security program are not affected but
many of the ancilliary benefits that have been added
in
recent
years are either eliminated or reduced.
-112-
Th e Administration is also proposing a hardship assistance block
grant,
consolidating
energy
and
related
assistance,
to
aid
families experiencing emergencies.
In addition, changes in the areas of Federal employee retirement
housing
assistance,
and
food
and
nutrition
and
disability,
assistance
have
rather
small changes in 1981 and 1982 compared
with the substantial changes through 1983-86.
-113-
700:
VETERANS BENEFITS AND SERVICES
(in billions of dollars)
1983
1984
1985
1986
Budget
Authority
January budget
27.0
29.2
30.7
31.7
-1.2
-1.9
-2.6
-3.4
25.7
27.3
28.1
28.3
January
budget
Change
26.2
-1.4
28.0
-2.0
30.3
-2.6
31.2
-3.3
Revised budget
24.8
26.0
27.6
27.9
Change
Revised budget
Outlays
In comparison to the January budget projections, budget authority
for veterans benefits and services is now projected
to be
$1.2
billion
lower
in
1983 and $3.4 billion lower by 1986.
Outlays
are projected to be $1.4 billion lower in 1983 and
$3.3
billion
lower
by
1986.
These
reductions
are
the
result of revised
economic assumptions and proposed reductions discussed in Part 3.
Lower proposed cost of living adjustments
for
service-connected
compensation, reflecting lower projected inflation, reduce budget
authority and outlays by $0.3 billion in 1983 and $1.2 billion by
1986.
Proposed restrictions on the growth of the V A medical care
program reduce budget authority and outlays by an additional $0.6
billion in 1983 and $1.3 billion by 1986. Other major reductions
include
a decrease in the interest subsidy now given to veterans
receiving insurance loans, the withdrawal of a proposal
by
the
previous
administration
to extend
for
2 years the period of
eligibility for
certain
readjustment
benefits
for
needy
and
educationally
disadvantaged
Vietnam-era
veterans,
and
some
cancellations
and
delays
in the VA
hospital
construction
programs.
-114750:
ADMINISTRATION OF JUSTICE
(in billions of dollars)
1983
1984
1985
1986
Budget Authority
January estimate
4.9
5.1
5.3
5.5
-0.8
-1.0
-1.2
-1.4
4.1
4.1
4.1
4.0
January
Changeestimate
4.9
-0.8
5.10
-1.
5.22
-1.
5.4 5
-1.
Current estimate
4.1
4.0
4.0
3.9
Change
Current estimate
Outlays
In comparison
with
the
January
budget
projections,
budget
authority
for
the
administration
of
justice
function is now
projected to be $0.8 billion lower in 1983 and $1.4 billion lower
by 1986.
Outlays are projected to be $0.8 billion lower in
1983
and
$1.5
billion
lower
in 1986. These reductions are the net
result of reestimates and proposed reductions discussed above
in
Part 3.
The Administration
will
propose
to make
services
currently
provided by the Legal Services
Corporation
and
the
Office
of
Juvenile
Justice
and Delinquency Prevention eligible activities
under a social services block grant.
This is discussed
in
the
education,
training,
employment, and social services section of
Part 3. The Administration also proposes
to make
significant
personnel reductions in the agencies in this function.
-115-
800:
GENERAL GOVERNMENT
(in billions of dollars)
1986
1983
1984
1985
Budget Authority
January budget
Change
5.6
5.5
-0.5
5.6
-0.6
5.6
-0.8
Revised budget
5.3
5.0
5.0
4.8
January budget
Change
5.2
5.4
-0.6
5.3
-0.8
5.2
-0.8
Revised budget
4.9
4.8
4.5
4.3
Outlays
Budget authority and outlays for the general government
function
are
$0.3 billion lower than the levels in the January budget for
1983 and $0.8 billion
lower by
1986.
These
reductions
are
primarily
due
to the reductions
in Internal Revenue Service
personnel discussed in Part 3.
-116-
850:
GENERAL PURPOSE FISCAL ASSISTANCE
(in billions of dollars)
1983
1984
1985
1986
Budget Authority
January estimate
Change
7.4
-0.7
7.6
-0.8
7.8
-0.8
8.0
-0.9
6.8
6.9
7.0
7.1
January estimate
Change
7.5
-0.7
7.6
-0.9
7.8
-1.0
8.0
-1.1
Current estimate
6.8
6.7
6.8
6.9
Current estimate
;
Outlays
In comparison to the January budget projections, budget authority
for general purpose fiscal assistance is now projected to be $0.7
billion lower in 1983 and $0.9 billion lower by
1986.
Outlays
are projected
to be $0.7 billion lower in 1983 and $1.1 billion
lower by
1986.
These
reductions
are the
net
result
of
reestimates, proposed reductions, and a policy increase discussed
above in Part 3.
The major
reductions
are the withdrawal
of the proposed tax
credit payments to State and local governments and
the
proposed
phasing
out by 1984 of capital improvement loans to the District
of Columbia.
-117-
900:
INTEREST
(in billions of dollars)
1983
1984
1985
1986
Budget Authority
January budget
91.7
89.0
87.5
88.2
-7.0
-4.2
-4.1
-4.5
84.7
84.9
83.4
83.7
January
budget
Change
91.7
-7.0
89.1
-4.2
87.5
-4.1
88.2
-4.5
Revised budget
84.7
84.9
83.4
83.7
Change
Revised budget
Outlays
Budget authority
and outlays
for
the interest
function
are
estimated to be $7.0 billion lower in 1983 and $4.5 billion lower
in 1986 than estimated in the January budget. These lower budget
authority
and outlay levels for the interest function in 1983-86
are due to lower projected interest
rates
and
lower
borrowing
requirements.
The large decreases in interest on the public debt
are partially
offset by decreases in interest received on loans
made to the Federal Financing Bank.
-118-
920:
ALLOWANCES
(in billions of dollars)
1983
1984
1985
1986
Budget Authority
January estimate
6.8
10.3
12.8
15.4
-2.1
-3.6
-4.0
-4.5
4.6
6.6
8.7
10.8
January
Changeestimate
5.7
-1.6
9.2
-3.2
11.7
-3.6
14.3
-4.1
Current estimate
4.0
6.0
8.1
10.1
Change
Current estimate
Outlays
Budget authority and outlays for the allowance function are lower
than the January budget levels by $2.1 billion and
$1.6
billion
respectively
in
1983. By 1986 budget authority is $4.5 billion
lower than the January budget projections and
outlays
are
$4.1
bi11ion lower.
The
changes in Federal employee compensation discussed in Part 3
would decrease the allowance
for civilian
agency
pay
raises
included
in
this
function.
The
contingency
for
other
requirements has been reduced to $1.5 billion in budget authority
and $1.0 billion in outlays in 1983-1986 to reflect
anticipated
savings due
to the improvements in contracting and procurement
practices and in debt collection discussed in Part 3.
-119950:
UNDISTRIBUTED OFFSETTING
RECEIPTS
(in billions of dollars)
1983
1984
1985
1986
Budget Authority and Outlays
January estimate
Change
-34.1
-0.8
-33.2
-4.2
-33.5
-6.2
-34.1
-8.2
Current estimate
-34.8
-37.4
-39.7
-42.3
Undistributed offsetting receipts are $0.8 billion higher in 1983
than the January estimates
and
$8.2 billion higher by
1986.
These increases in receipts reduce budget authority and outlays.
The
revision
of offshore oil and gas leasing schedules that the
President is seeking would increase rents and royalities
on
the
Outer Continental Shelf and therefore reduce budget authority and
outlays.
Lower projected interest rates reduce interest received
by trust funds. This decrease is offset by increased investment
in Treasury securities resulting from higher trust fund balances.
-121-
Part 5
SUMMARY TABLES
Table 1 6 . — B U D G E T RECEIPTS BY MAJOR SOURCE
(in billions of dollars)
Individual income taxes
Corporation income taxes
Social insurance taxes and
Estate and gift taxes
Customs duties
Miscellaneous receipts
Total budget receipts
Actual
1980
1981
Revised Budget Estimates
1982
1983
1984
1985
.1
64 .6
277 .4
64 .7
288 .2
62 .4
311 .0
68 .5
339 .6
71 .4
383 .4
71 .4
439.5
72.8
.7
.3
.4
.2
12 .7
186 .4
43 .6
6 .9
7 .4
13 .8
214 .5
55 .7
7 .6
7 .8
14 .2
239 .9
56 .9
8 .5
8 .2
16 . 1
263 .7
58 .4
9 .4
8 .7
19 .6
295 .9
59 .9
10 .4
9 .0
19 .8
327.4
520 .0
600 .3
650 .3
709 .1
770 .7
849 .9
940.2
1986
60.0
11.3
9.2
20.0
Table 1 7 . — E S T I M A T E D EFFECT OF ADMINISTRATIVE ACTIONS A N D
PROPOSED LEGISLATION ON RECEIPTS, 1981-1986
(in billions of dollars)
1981
Revised Budget Estimates
1982
1983
1984
1985
1986
Receipts under current law
Extension of highway trust fund taxes
schedule to expire September 30, 1984
608.8
Receipts on a current services basis
Proposed legislation and administrative
actions other than extensions:
Individual income tax reductions
Depreciation reform
Taxation of Federal employee injury
compensation
User charges
Other proposals 1/
608.8
701.6
806.2
-6.4
-2.5
-44.2
-9.7
- 8 1 . 4 -118.1 -141.5 -162.4
-18.6
-30.0 -44.2 -59.3
*
0.2
*
Total budget receipts
*
$50 million or less.
806.2
in
915.5 1028.1 1153.9
— — —
———
Total, Proposed legislation and
administrative actions other than
extensions
1/ These proposals include
an
increase
increases in passport and visa fees.
701.6
0.1
2.1
0.4
0.1
2.4
0.5
3.9
4.0
915.5 1032.0 1157 .9
0.1
2.7
0.5
0.1
3.1
0.5
0.1
3.4
0.5
-8.6
-51.3
-97.1 - 1 4 4 . 8 -182.1 -217.7
600.3
650.3
709.1
railroad
retirement
770.7
payroll
849.9
taxes
940.2
and
Table 18.--COMPOSITION OF BUDGET OUTLAYS,
(dollar amounts in billions)
1980-1986
Actual
1980
1981
National defenses
Direct Federal payments
for individuals
Grants to States and localities
Other
11.9
0.1
123.8
13.8
0.1
148.3
15 .3
0 .1
173 .4
17 .1
0 .1
208 .9
18.7
0.1
236.9
20. 2
0. 1
283. 7
21 .6
0 .1
321 .1
Subtotal, National defense
135.9
162.1
188 .8
226 .0
255.6
303. 9
342 .7
237.0
278.0
298 .2
323 .8
348.3
374. 6
398 .4
34.2
39.4
39 .1
41 .5
43.5
45. 5
47 .3
57.2
52.5
63.0
54.9
64.1
56.6
47 • 2
68 .2
53 .7
45 .7
68 .9
55 .8
44.3
67.8
54.9
44. 2
64. 9
54. 8
45 .1
62 .8
58 .4
443.8
493.1
506.5
535.7
558.8
583.9
612.0
579.6
655.2
695.3
761.8
-29.8
814.4
-44.2
887.7
-43.7
954.7
-42.7
579.6
655.2
695.3
732.0
770.2
844.0
912.0
Nondefense:
Direct Federal payments
for individuals
Payments for individuals through
States and localities
All other grants to States
and localities
Net interest
Other
Subtotal, Nondef ense
Total, Revised budget
Additional savings to be proposed...
Target outlay ceiling
Revised Budget Estimates
1982
1983
1984
1985
1986
Table 18
(continued)
Revised Budget Estimates
1982
1983
1984
1985
Actual
1980
1981
National defense:
Direct Federal payments
for individuals
Grants to States and localities
Other
2.1
*
21.4
2.1
*
22.6
2.2*
2.3*
2.4
*
2.4
2.4
*
24.9
28.5
30.8
33.6
35.2
Subtotal, National defense
23.4
24.7
27.2
30.9
33 .2
36.0
37.6
1986
Percent of Total Outlays
Nondefense:
Direct Federal payments
for individuals
Payments for individuals through
States and localities
All other grants to States
and localities
Net interest
Other
Subtotal, Nondef ense
Total, Revised budget
Additional savings to be proposed...
Target outlay ceiling
* 0.05% or less.
to
ui
l
40.9
42.4
42.9
44.2
45 .2
44.4
43.7
5.9
6.0
5.6
5.7
5 .6
5.4
5.2
9.9
9.1
10.9
8.4
9.8
8.6
6.8
9.8
7.7
6.2
9.4
7.6
5 .7
8 .8
7 .1
5.2
7.7
6.5
4.9
6.9
6.4
76.6
75.3
72.8
73.2
72 .6
69.2
67.1
100.0
100.0
100.0
104.1
-4.1
105 .7
-5 .7
105 .2
-5.2
104.7
-4.7
100.0
100.0
100.0
100.0
100 .0
100.0
100.0
Table 19.---BUDGET AUTHORITY BY FUNCTION
(in billions of dollars)
Function
National defense
International affairs
General science, space, and technology..
Energy
Natural resources and environment
Commerce and housing credit
Transportation
Community and regional development
Education, training, employment, and
and social services
Health
Income security
Social security (OASDI)
Other
Veterans benefits and services
Administration of justice
General government
General purpose fiscal assistance
Interest
Allowances
Undistributed offsetting receipts
Total budget
authority
Actual
1980
1981
145 .8
15 .5
6 .1
36 .4
13 .1
4 .9
10 .5
20 .2
10 .1
180 .7
23 .7
6 .5
5 .8
10 .4
5 .6
6 .4
25 .5
8 .2
Revised Budget Estimates
1984
1985
1982
1983
226 .3
17 .9
7 .2
9 .0
7 .9
5 .5
8 .2
20 .5
7 .3
259.6
17.7
7.7
9.1
10.6
5.7
5.4
21.2
7.4
294 .9
16 .3
7 .1
8 .0
10 .3
4 .6
5 .8
21 .3
7 .4
333 .0
16 .1
6 .9
8 .6
9 .8
4 .9
6 .3
21 .4
7 .6
1986
374.3
16.1
6.8
12.5
9.5
5.1
6.4
22.4
7.8
24 .6
24.8
24.8
24 .8
24 .7
30 .6
29 .4
59 .8
71 .3
83 .5
90.9
99 .0 109 .3
122.0
224 .2 249 .9
261 .8 284.2
303 .5
330 .2 356.3
(116 .0)(132 .4)(151 .0) (168.2)(185 .0)(210 .6)(234.2
(108 .2)(117 .5)(110 • 8)(116.0)(118 .5)(119 .6)(122.0
24 .2
25.7
27 .3
21 .2
22 .9
28 .1
28.3
4 .4
4 .4
4 .2
4.1
4 .1
4 .1
4.0
4.8
4 .6
5 .4
5 .1
5.3
5 .0
5 .0
7 .0
7.1
8 .7
6 .2
6 .5
6.8
6 .9
77 .2
83.7
64 .5
82 .5
84.7
8 4 .9
83 .4
— —
— —
10.8
6 .6
8 .7
2 .3
4.6
-37 .4 -39 .7 -42.3
-21 .9 -29 .3 -32 .0 -34.8
658.8
710.1
772.4
840.7
900.5
975.2
1060.2
Table 2 0 . — B U D G E T OUTLAYS BY FUNCTION
(in billions of dollars)
Function
National defense
International affairs
General science, space, and technology..
Energy
Natural resources and environment
Agriculture
Commerce and housing credit
Transportation
Community and regional development
Education, training, employment, and
social services
Health
Income security
Social security (OASDI)
Other
Veterans benefits and services
Administration of justice
General government
General purpose fiscal assistance
Interest
Allowances
Undistributed offsetting receipts
Total revised budget outlays
Additional savings to be proposed
Target outlay ceiling
Actual
1980
1981
135 .9
10 .7
5 .7
6 .3
13 .8
4 .8
7 .8
21 .1
10 .0
162 .1
11 .3
6 .2
9 .3
13 .7
1 .2
3 .2
24 .0
10 .3
Revised Budget Estimates
1983
1984
1985
1982
188 .8
11 .2
6 .9
8 .7
11 .9
4 .4
3 .1
19 .9
8 .1
226 .0
11 .8
7 .3
9 .2
11 .0
3 .9
3 .4
20 .4
7 .6
255 .6
12 .2
7 .2
7 .7
9 .7
4 .0
3 .1
21 .0
7 .3
303 .9
12 .2
6 .8
8 .0
9 .2
4•2
2 .2
20 .9
7 .2
1986
342 .7
12 .3
6 .7
10 .0
9 .1
4 .4
2 .1
21 .7
7 .1
24 .0
24 .0
24 .1
25 .8
24 .7
30 .8
30 .6
.3
98
.7
106
.7
66 .7
81 .6
90
58 .2
73 .4
.1
295
.7
277
313 .3
193 .1
229 .7
241 .4 260 .2
(117 .1) (137 .8) (154 • 8)(170 .1) (184 .4) (198 .8) (212 .9)
(76 • 0) (91 • 9) (86 .6) (90 • 2) (92 .8) (97 .0) (100 .4)
27 .6
27 .9
24 .8
26 .0
23 .6
21 .2
22 .4
4 .1
4 .0
4 .0
3 .9
4 .6
4 .7
4 .4
4
.8
4
4
.3
4 .9
.5
4 .5
5 .1
5 .0
.7
6 .8
6
6 .8
6 .9
8 .6
6 .8
6 .4
.9
84 .7
84
83 .4
83 .7
64 .5
77 .2
82 .5
— —
- —
.0
4 .0
6
8 .1
10 .1
1 .8
-21 .9 -29 .3 -32 .0 -34 .8 -37 .4 -39 . 7 -42 .3
579 .6
-
—
579 .6
655 .2
-
—
655 .2
695 .3
-
—
695 .3
761 .8
-29 .8
814 .4
-44 . 2
887 .7
-43 . 7
954 .7
-42 . 7
732 .0
770 .2
844 • 0
912 .0
Table 2 1 . — B U D G E T AUTHORITY BY AGENCY
(in billions of dollars)
Agency
Legislative branch
The Judiciary
Executive Office of the President
Funds appropriated to the President....
Agriculture
Commerce
Defense—Military
Defense—Civil
Actual
1980
1981
Revised Budget Estimates
1983
1984
1985
1982
1.3
0.6
0.1
12.5
24.9
3.1
142.6
3.3
13.8
10.0
195.9
35.7
4.6
2.5
28.8
2.1
18.2
90.6
4.7
1.3
0.7
0.1
14.0
26.3
2.4
177.1
3.1
13.5
10.5
226.2
32.8
3.9
2.3
32.2
2.3
23.4
86.2
3.0
1.5
0.7
0.1
9.8
25.9
2.1
221.8
3.1
12 .3
11.9
255.3
29.0
3.4
2.3
27.9
2.8
19.2
92.9
1.4
1.6
0.7
0.1
10.2
25.9
2.3
254.5
3.1
12.1
12.7
283.0
25.7
4.0
2.3
28.5
2.6
19.8
95.0
3.9
1.5
0.8
0.1
8.6
25.3
2.3
288.9
3.0
12.3
12.0
307.6
25.7
4.0
2.3
28.9
2.6
19.9
95.0
4.0
1.5
0.8
0.1
8.2
26.0
2.2
326.2
2.8
12.3
13 .1
344.1
25.1
4.1
2.2
27.6
2.6
19.9
93.3
4.0
1.5
0.8
0.1
7.8
26.3
2.4
367.2
2.9
12.6
17.6
380.8
25.0
3.9
2.2
27.8
2.8
20.8
93.5
3.8
6.5
25.7
32.9
17.8
4.6
-34.8
5.9
27.3
34.9
18.5
6.6
-37.4
5.6
28.0
36.8
19.4
8.7
-39.7
5.4
28.2
38.4
19.8
10.8
-42.3
840.7
900.5
975.2 1060.2
Health and Human Services
Housing and Urban Development
Interior
Justice
Labor
State
Transportation
Treasury
Environmental Protection Agency
National Aeronautics and Space
Administration
Veterans Administration
Office of Personnel Management
Other agencies
Allowances
Undistributed offsetting receipts
5.2
21.2
24.9
34.3
5.5
22.9
28.5
21.1
-21.9
-29.3
6.1
24.2
30.4
17.9
2.3
-32.0
Total budget authority
658.8
710.1
772.4
1986
Table 2 2 . — B U D G E T OUTLAYS BY AGENCY
(in billions of dollars)
Agency
Legislative branch
Executive Office of the President
Funds appropriated to the President....
Agriculture
Commerce
Defense—Military
Defense—Civil
Education
Energy
Health and Human Services
Housing and Urban Development
Interior
Justice
Labor
State
Transportation
Treasury
Environmental Protection Agency
National Aeronautics and Space
Administration
Veterans Administration
Office of Personnel Management
Other agencies
Allowances
Undistributed offsetting receipts
Total revised budget outlays
Additional savings to be proposed
Target outlay ceiling
Actual
1980
1981
Revised Budget Estimates
1983
1984
1985
1982
1986
1.2
0.6
0.1
7.5
24.6
3.8
132.8
3.2
13.1
6.5
194.7
12 .6
4.4
2.6
29 .7
1.9
19.0
76.7
5.6
1.5
0.7
0.1
6.1
20.7
2.9
158.6
3.3
14.3
10.5
227.6
13 .5
4.4
2.6
35.5
2.2
22 .0
87.7
5.5
1.4
0.7
0.1
6.1
23 .7
2.5
184.8
3.2
12 .4
11.1
250.7
14.3
3.3
2.5
26.7
2.4
18.3
92.6
5.2
1.5
0.7
0.1
6.8
24.0
2.4
221.1
2.9
12.2
12.5
275 .4
15.7
3.9
2.3
23 .8
2.4
19.1
94.7
4.4
1.5
0.7
0.1
7.1
24.2
2.3
249.8
2.8
11 .7
11 .6
297 .6
16.5
3.9
2.2
23 .4
2.4
19.7
94.8
3.7
1 .5
0 .8
0 .1
7 .1
24 .8
2 .2
297 .3
2 .6
12 .0
12 .4
321 .6
16 .4
3 .9
2 .2
22 .7
2 .6
19 .5
93 .0
3 .6
1.6
0.8
0.1
6.9
25 .0
2.2
336.0
2.8
12 .2
14.7
344.1
17.4
3.7
2.1
22.4
2.7
20.2
93.2
3.6
4.8
21.1
15 .1
20.0
5.3
22.3
17.9
19.4
-21.9
-29.3
5.9
23.6
19.9
14.1
1.8
-32.0
6.3
24.8
22.3
13 .4
4.0
-34.8
6.0
26 .0
24.5
13.4
6.0
-37.4
5 .5
27 .6
26 .6
13 .6
8 .1
-39 .7
5.3
27.9
28.5
13.7
10.1
-42.3
579.6
655.2
695.3
761.8
-29.8
814.4
-44.2
887 .7
-43 .7
954.7
-42.7
579.6
655.2
695.3
732.0
770.2
844.0
912.0
Table 2 3 . — N E W DIRECT LOAN OBLIGATIONS BY AGENCY
(in billions of dollars)
1980
Actual
On-budget agencies s
Funds appropriated to the President:
International security assistance
International development assistance....
Agriculture
Commerce
Education
Energy
Health and Human Services
Housing and Urban Development
Interior
Labor
State
Transportation
Treasury
Veterans Administration
Other independent agencies:
Export-Import Bank
National Credit Union Administration....
Small Business Administration
All other independent agencies
*
0.1
5.0
1.4
0.4
21.8
0.2
0.6
*
0.1
3.5
0.9
0.4
21 .0
0.1
0.6
*
0.1
3.4
1982 Estimate
January
Revised
2.0
0.5
16.9
0.1
0.8
2.7
0.4
13 .3
*
*
0.1
2.0
0.1
5.0
*
0.9
*
*
*
*
*
*
*
*
*
*
*
*
*
0.2
0.1
0.6
0.1
0.1
0.7
0.6
0.2
0.1
0.7
4.4
0.3
2.0
1.1
5.9
2.2
3.6
1.4
5.1
2.1
2.8
1.3
5.0
3.7
1.4
0.6
' 4.4
3.7
1.2
0.4
37 .8
42 .1
38 .6
34 .1
32 .9
1 .2
22 .2
0 .2
1 .1
30 .9
0. 2
0 .9
31 .5
0. 2
1 .1
24 .8
0. 2
0 .7
21 .8
0 .2
Subtotal, Off-budget entities
23 .6
32 . 2
32 .6
26 . 1
22 . 7
Total
Less loan assets acquired by
the Federal Financing Bank
61 .4
74 .2
71 .2
60 .2
55 .6
-12 .1
-16 .6
-16 .2
-8 . 2
-6 .2
49 .3
57 .6
55 .0
52 .0
49 .4
Subtotal, On-budget agencies
Off-budget entities:
Rural Electrification Administration
Federal Financing Bank
All other off-budget entities
Grand total
§50 million or less.
1.3
0.4
21.5
0.2
0.7
1981 Estimate
January
Revised
*
*
0.1
*
0.6
Table 2 4 . — N E W LOAN GUARANTEE COMMITMENTS BY AGENCY
(in billions of dollars)
1980
Actual
Funds appropriated to the President:
International security assistance
International development assistance
Agriculture 1/
Commerce
Defense
Education
Energy
Health and Human Services
Housing and Urban Development
Interior
Transportation
Treasury
Veterans Administration
Other independent agencies:
Export-Import Bank
Small Business Administration
Synthetic Fuels Corporation 2/
Tennessee Valley Authority
All other independent agencies
Less: Secondary guarantees of loans that
are already guaranteed
Less: Guaranteed loans held as direct loans..
Total
1.4
0.4
19.2
1.3
*
1981 Estimate
January Revised
2.5
0.3
24.4
1.7
*
1982 Estimate
January
Revised
2.5
0.3
24.0
1.2
2.9
0.4
15.6
1.9
2.6
0.2
13 .6
1.1
*
*
*
9.3
4.5
0.1
116.2
6.2
0.2
116.9
0.1
0.5
0.8
7.4
8.2
4.4
2.0
4.5
0.5
1.1
6.3
0.7
1.1
7.4
0.7
1.0
7.4
7.6
0.2
0.2
136.7
0.1
0.7
0.8
7.4
8.0
4.8
8.6
5.9
1.5
3.4
0.1
7.6
4.9
1.5
3.4
9.4
5.9
2.0
4.5
5.8
0.1
0.1
109.4
*
0.1
-64.4
-24.4
69.8
8.3
6.4
0.1
129 .7
*
-73.2
-32. 7
96.2 3/
*
*
-66.2
-33.3
85.2
*
-74.3
-25.2
96.9 3/
*
-64.7
-25.4
78.5
1/ Includes Rural Electrification Administration
off-budget
activities
as
follows:
1980,
$5.7 billion;
1981,
$5.1 billion in the January estimate and $5.1 billion in the
revised estimate; and 1982, $5.1 billion in the January estimate and $5.2 billion in the
revised estimate.
2/ This is an off-budget Federal entity.
3/ The January estimates
include a correction of $1.7 billion in 1981 for biomass
energy development and $3.4 billion in 1981 and $4.5 billion in 1982 for Tennessee Valley
Authority fund.
* $50 million or less.
Table 2 5 . — B U D G E T FINANCING AND OUTSTANDING DEBT
(in billions of dollars)
Actual
1980
Budget Financing
Budget surplus or deficit (-)
Deficit (-), off-budget Federal entities
Total deficit (-)
Means of financing other than borrowing from the
publics
Decrease or increase (-) in cash and other
monetary assets
Increase or decrease (-) in liabilities for:
Checks outstanding, etc
Deposit fund balances
Seigniorage on coins
Total, means of financing other than
borrowing from the public
Total requirements for borrowing from
the public
Change in debt held by the public
Outstanding Debt, End of Year
Gross Federal debt:
Debt issued by Treasury
Debt issued by other agencies
Total gross Federal debt
Held by:
Government agencies
The public
Debt Subject to Limit, End of Year
Debt issued by Treasury
Treasury debt not subject to limit
Agency debt subject to limit
Total debt subject to limit 1/
1981 Estimate
January
Revised
1982 Estimate
January
Revised
-59.6
-14.2
-55.2
-23.2
-54.9
-23.6
-27.5
-18.3
-45.0
-16.7
-73.8
-78.4
-78.5
-45.8
-61.7
0.6
5.1
6.0
-0.5
2.5
0.7
0.2
0.6
0.4
1.0
0.1
0.4
0.2
0.6
0.9
0.2
0.6
3.3
6.4
7.5
0.8
1.7
-70.5
-72.0
-71.0
-45.0
-60.0
70.5
72.0
71.0
45.0
60.0
907.7
6. 6
986.3
6 .1
986.4
6. 2
1052.7
1070.2
5. 0
5.2
914.3
992.4
992.6
1057.7
1075.4
199.2
715.1
205.3
787.1
206.5
786.1
225.6
832.1
229.3
846.1
907.7
-0.6
1. 7
986.3
-0.6
1. 6
986.4
-0.6
1. 6
1052.7
-0.6
1. 5
1070.2
-0.6
1. 5
908.7
987.3
987.4
1053.6
1071.2
1/ The statutory debt limit
Is permanently
established
at
$400 billion.
Public Law
temporarily increased the statutory debt limit to $985 billion through September 30, 1981.
97-2
Table 2 6 . — S U M M A R Y OF THE FULL-TIME EQUIVALENT OF FULL-TIME
PERMANENT CIVILIAN EMPLOYMENT IN THE EXECUTIVE BRANCH 1/
(Excluding the Postal Service. Full-Time Equivalent Basis)
Actual
1980
Defense-military functions 2/
Defense-civil functions
Energy
Health and Human Services
Housing and Urban Development
Justice
Labor
State
Transportation
Treasury
Environmental Protection Agency
National Aeronautics and Space
Administration
Veterans Administration
Other:
General Services Administration....
International Communication Agency.
International Development
Cooperation Agency
Nuclear Regulatory Commission
Office of Personnel Management
Panama Canal Commission
Small Business Administration
Tennessee Valley Authority
Miscellaneous
Subtotal
Contingencies 3/
Total
1981 Estimate
January
Revised
1982 Estimate
Revised
January
85,400
29,300
880,000
27,700
6,400
19,600
136,400
15,600
53,800
53,400
22,100
21,800
68,800
109,400
10,700
86,500
32,300
865,000
27,800
6,100
19,700
135,700
16,000
53,600
54,200
22,300
22,000
68,800
110,400
11,200
83,800
32,100
869,600
27,800
6,000
19,100
134,900
15,700
53,100
53,600
21,800
22,000
68,000
107,900
10,600
87,000
32,700
865,000
27,600
6,100
20,200
136,100
16,300
55,000
54,400
22,600
22,000
69,100
113,600
11,700
84,800
30,900
878,700
25,400
5,800
17,400
129,800
15,200
52,800
52,800
21,000
21,900
65,800
108,000
10,400
22,600
193,100
22,300
195,600
22,000
194,000
22,300
195,800
21,600
188,900
32,300
8,000
32,200
7,900
31,600
7,900
32,200
7,900
30,100
7,500
5,700
2,800
6,400
7,700
4,400
16,500
42,400
5,700
3,200
6,200
8,300
4,700
16,600
43,300
5,600
3,200
5,900
8,300
4,500
16,200
42,100
5,700
3,400
6,200
8,400
4,700
16,600
44,000
5,400
3,300
5,700
8,300
4,300
15,500
41,800
1,882,300 1,877,600 1,867,300 1,886,600 1,853,100
1,000
2,000
1,000
2, 000
1,882,300 1,879,600 1,868,300 1,888,600 1,854,100
1/ Excludes developmental positions under the worker-trainee opportunity program (WTOP)
as well as certain statutory exemptions.
2/ Entries for Department of Defense, military functions reflect a technical change in
conversion to the FTE system that results in a decrease of 25,000.
3/ Subject to later distribution.
-135-
APPENDIX A
FEDERAL AID TO STATE AND LOCAL GOVERNMENTS
The
Federal
Government's
greatest
influence
on
States
and
localities
is through
its management — or mismanagement — of
the overall economy.
In recent
years
the
relatively
minimal
benefits
of
increased grants have been more than offset by high
unemployment,
high
interest
rates, high
inflation,
and
low
productivity
in the
economy.
The major responsibility of the
Federal Government as a partner in federalism
is
to promote
a
stable and growing economy so that States and localities can plan
and
use their
own resources effectively.
The Administration's
economic program — described in more detail in the February 18
report:
A Program
for
Economic Recovery — provides for this
stability and growth.
In the regulatory reform area, the Administration's proposals and
actions already taken will significantly ease the burden on State
and local governments and relieve them of thousands of hours
of
administrative requirements.
In addition,
a substantial portion of the budget changes under
the President's economic recovery program would affect
both
the
form
and
the
structure
of
Federal
aid
to
State
and local
governments.
The table below shows current estimates of grants to States
and
localities.
Budget authority for grants is estimated to be $86.2
billion
in
1982,
$14.8 billion below the 1981 estimate.
Grant
outlays for 1982 are estimated to be $86.4 billion, $8.0
billion
below the 1981 estimate.
Table A - l . — G R A N T S TO STATE AND LOCAL GOVERNMENTS
(in billions of dollars)
Actual
1980
Budget authority
Outlays
105.0
91.5
Estimates
1981
1982
January
Revised January
Revised
Budget
Budget
Budget
Budget
110.6
95.3
101.1
94.4
116.9
99.8
86.2
86.4
The distribution of Federal grants by budget function is shown in
two tables at the end of this Appendix.
-136The
revised budget focuses on the usefulness of the dollars sent
to States and
localities.
Not
so surprisingly,
all
Federal
dollars
are
not
equal.
Those provided
through
broad-based
grants, such as the social services program, are far more
useful
than
the
small categorical grants that are highly regulated and
require excessive administrative attention.
The Administration also believes
that
too much
authority
now
rests with the Federal Government, and that more decisions on the
usefulness
and
funding
of
domestic programs should be made by
State and local governments.
The
Federal
Government
does
not
know more than our partners in the federal system about State and
local needs,
and should not be regulating and controlling State
and local activities.
Consistent
with
delegating
more
authority
and
making
grant
dollars
more
useful,
the Administration
is proposing several
major grant consolidations that would return
more
authority
to
States
and
localities.
The block grants would also generally
that
recipients
maintain
a
level
of
eliminate
requirements
expenditures from their own funds, or that they match the Federal
funds with
their
own.
Burdensome
planning,
reporting,
and
recordkeeping requirements
under
various
categorical
programs
would also be eliminated.
The Administration
proposes to consolidate all or part of about
44 separate elementary and secondary education programs into
two
block
grant
programs
—
one
to the
States and one to local
education
agencies
(LEA's).
These block
grants will
shift
control
over
education
policy away from the Federal Government
and back
to
State
and
local
authorities
—
where
it
constitutionally and historically belongs.
The
LEA block grant will include about 10 programs that are now
targeted on students judged to have
special
educational
needs:
the
economically
disadvantaged,
the physically
or
mentally
handicapped,
children
in
school
districts
undergoing
racial
desegregation, and illiterate adults.
The
education
block
grant
to the
States
combines
about 34
separate programs that provide direct
educational
services
for
handicapped,
neglected,
and
delinquent
children?
improve the
staffing and services of
the
State
educational
agencies?
and
support
improved
school services in a variety of ways including
assistance
to
school
libraries,
curriculum
development,
and
technical assistance.
In the areas
of health and social services the Administration
proposes to consolidate the
authorities
for
about
40
Federal
categorical
grants into four block grants to States.
Currently,
an uncoordinated array of programs
provides
services
based
on
varying
criteria
including age, income, health status, disease,
occupation, and residence.
Most of the programs duplicate others
serving the same type of beneficiary.
Each program generally has
its own
separate
planning
process
and
other
administrative
requirements.
The
four
block
grants will be in the areas of
-137health services, preventive health services,
hardship assistance.
social services, and
The Administration's proposal will
enable
States
to plan
and
coordinate
their
own
service
programs,
establish
their
own
priorities, and exercise effective program control over resources
provided to
localities
and
non-profit
organizations.
States
would
thus have
greater
flexibility
in — as well as greater
responsibility for the results of — providing needed services to
their populations.
The overall effect would
be
to
strengthen
State
governments
and
provide
publicly-financed services more
effectively and at lower cost to those who need them.
In addition to these
major
block
grants,
the
Administration
supports smaller consolidations of Indian programs, environmental
grants,
employment
and
training programs, nutrition assistance
for Puerto Rico, and airport programs.
Because the new block grants and grant consolidations will
allow
for
significant
savings
in administration
and result in more
efficient management, the reductions in funding need not cause a
comparable reduction in services to the public.
Table A - 2 . — G R A N T S TO
STATE AND LOCAL GOVERNMENTS BY FUNCTION:
(in billions of dollars)
Actual
1980
National defense
Energy
Natural resources and environment
Agriculture
Commerce and housing credit
Transportation
Community and regional development
Education, training, employment, and
social services
Health
Income security
Veterans benefits and services
Administration of justice
General government
General purpose fiscal assistance
Total
1/ Excludes $9.4 billion for housing programs
State and local governments.
$50 million or less.
BUDGET AUTHORITY
1981
January
Revised
Budget
Budget
1982
January
Revised
Budget
Budget
0.5
4.6
0.1
0.5
4.3
0.8
0.1
0.4
2.4
0.8
*
*
*
14.9
5.8
14.3
5.2
16.4
5.8
12.7
4.5
21.4
19.2
37.3 1/
0.1
0.1
0.2
6.1
19.6
18.5
33.4
0.1
0.1
0.2
6.1
25.0
20.9
35.6
0.2
0.2
0.2
6.7
15.2
19.2
26.7
0.1
110.6 1/ 101.1
116.9
86.2
21.5
16.5
*
8.5
0.1
0.6
4.8
0.6
0.1
0.1
0.6
0.6
*
*
*
0.1
6.3
erroneously classified as grants to
Table A - 3 . — G R A N T S TO STATE AND LOCAL GOVERNMENTS BY FUNCTION:
(in billions of dollars)
Actual
1980
National defense
Energy
Natural resources and environment
Agriculture
Commerce and housing credit
Transportation
Community and regional development
Education, training, employment, and
social services
Health
Income security
Veterans benefits and services
Administration of justice
General government
General purpose fiscal assistance
Total
$50 million or less.
0.5
5.4
0.6
*
6.5
15.8
18.5
0.1
0.2
8.5
1981
January
Revised
Budget
Budget
OUTLAYS
1982
January
Revised
Budget
Budget
0.1
0.8
5.3
0.6
0.1
0.4
4.7
0.6
0.1
0.6
5.3
0.8
0.1
0.6
5.2
0.8
*
*
12.9
6.2
13 .2
6.2
12.8
6.4
12.0
6.0
21.7
18.6
21.8
0.1
0.4
0.2
6.7
21.0
18.2
21.7
0.1
0.4
0.2
6.8
23.5
20.2
22.9
0.1
0.3
0.2
6.7
16.4
18.9
20.5
0.1
0.2
0.2
6.3
95.3
94.4
99.8
86.4
*
*
APPENDIX B
SUMMARY OF PROGRAMMATIC INCREASES TO THE JANUARY BUDGET
(in millions of dollars)
B
1981
A
O
B
1982
A
O
B
1983
A
O
B
1984
A
O
B
A
1985
O
1986
BA
0
Funds Appropriated
to the President
International
Security
Assistance
Military
Assistance
105
40
100
65
100
95
100
100
100
100
12
6
12
11
12
11
12
12
12
12
Foreign Military
Sales Credit
632
309
632
551
632
713
632
713
632
713
Economic Support
Fund
150
52
150
150
150
150
150
150
150
150
899
407
894
777
894
969
894
975
894
975
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
International
Military
Education and
Training
Subtotal
Department of
Agriculture
Agricultural
Research
and Extension...
Commodity Credit
Corporation:
Polish debt
rescheduling....
Subtotal
88
88
—
20
—_
20
20
20
1981
1982
BA
BA
1984
1983
BA
0
BA
0
1985
1986
BA
0
BA
Department of
Energy
Clinch River
Breeder
Reactor
50
50
269
222
271
1,305
1,334
24 8
269
296
148
Three mile island
activities
27
27
Commercial waste.
42
277
304
306
332
239
387
389
-114
10
-126
-42
-194
-114
-662
-279
391
366
473
398
488
391
445
288
42
42
42
42
42
42
42
42
42
882
708
590
695
693
704
668
558
212
440
Payment in Lieu
of Taxes
45
45
45
45
45
45
45
45
45
45
Mineral Leasing
Acceleration....
-7
-7
138
138
86
86
110
110
106
106
Park Restoration
and Improvement
105
60
105
114
105
114
105
111
105
108
3
2
2
2
2
2
2
2
2
2
146
100
290
299
238
247
262
268
258
261
Strategic
Petroleum
Reserve
Defense
activities
Subtotal
15
1,355
1,399
Department of
the Interior
Office of Water
Policy
Subtotal
1981
BA
1982
0
BA
1983
BA
0
1984
0
BA
1985
0
BA
1986
0
BA
0
Department of
Commerce
Tourism
program
Secretary's
Special Initiatives Fund
4
4
4
4
4
4
4
4
4
4
1
1
1
1
1
1
1
1
1
1
5
5
5
5
5
5
5
5
5
5
1,857
1,857
1,988
1,988
1,924
1,924
1,658
1,658
1,287
1,287
7,731
3,518 28,644
7,620
37,007
19,743 47,100
25,271
58,552
48,041
71,650
60,703
8,151
3,938 30,501
9,477
38,995
21,731
49,024
27,195
60,210
49,699
72,937
61,990
Subtotal
Department of
Defense-Military
Military pay
Other programs...
Subtotal
420
420
Corps of Engineers-Civil
Emergency
supplemental
for Mt. St.
Helens and
Hurricane
Allen
i
M
ro
I
64
64
82
73
Department of
Education
School Assistance in
Federally
affected
Areas
7
1
B
1981
A
O
B
1982
A
O
1983
A
O
B
B
A
1984
O
B
A
1985
O
1986
BA
Board for International Broadcasting
Increased grants
to Radio Free
Europe/Radio
Liberty, Inc....
Total
9,653
5,563 32,464
10,721
40,798
23,531
50,878
29,144
62,063
51,529
74,330
8,151
3,938 30,501
9,477
38,995
21 ,731
49,024
27,195
60,210
49,699
72,937
63,695
Memorandum
Department of
Defense
Other
1 ,502
1 ,625
1,963
1 ,244
1 ,803
1 ,800
1 ,854
1 ,949
1 ,853
1 ,830
61 ,990
1 ,393
1 ,705
u>
I
APPENDIX C
SUMMARY TABLE OF PROGRAMMATIC DECREASES TO THE JANUARY BUDGET
FY 1981 - 1986
(In millions of dollars)
Budget Authority and Outlay Savings
1981
BA
Executive Office of the President
Staffing levels
6
Funds Appropriated to the President
Appalachian Regional
• Development programs.
110
International development assistance
(including Peace
Corps and InterAmerican Foundation).
542
International commodity agreements....
Special Defense
Acquisition Fund*....
Administrative reductions not included
above
6
Subtotal
Department of Agriculture
P.L. 480 Food aid
Conservation costsharing
Commodity Credit
Corporation
-Storage Facility
loans*
-CCC loan Interest
rates
-Grain Reserve
Interest waivers*...
-Target prices*
Rural Electrlcation
Administration
Farmers Home Admin....
-Direct Loan Programs
(Direct loan
obligations)
-Grant and Homeownership Assistance
1982
0
BA
1983
0
BA
1984
0
BA
1985
0
BA
1986
0
BA
0
7
6
7
5
7
8
9
11
9
13
12
6
125
100
129
77
134
99
144
102
157
162
10
1,511
147
-7
383
2,070
713
2,433
1,095
2,810
1,569
119
20
-39
-15
-15
321
254
-20
213
252
203
I
6
7
7
658
22
1,762
595
83
699
2,189
1,025
2,557
1,449
2,967
1,934
76
76
100
100
110
110
266
266
358
358
369
369
56
16
56
30
56
39
56
47
56
55
16
(565)
5
25
100
110
120
130
150
4
45
49
54
59
66
80
167
180
200
58
225
108
250
119
6
10
30
105
(2,354)
111
30
179
(2,354)
10
112
105
255
(2,354)
14
112
179
331
(2,354)
15
114
255
407
(2,354)
18
144
20
SUMMARY TABLE (con't)
(in millions of dollars)
1981
-Alcohol Fuels/
Biomass Loans 1/
(non-add)
Soil Conservation
1983
1982
BA
0
(505)
(46)
0
BA
BA
1984
0
BA
1985
BA
0
1986
0
BA
0
(94)
10
5
16
13
17
16
19
18
16
18
5
2,328
95
1,336
5
2 ,304
90
1 ,243
5
2,179
98
1,475
5
2 ,167
92
1 ,394
5
2,810
102
1,637
5
2 ,795
96
1 ,547
5
3,175
108
1,760
5
3,157
101
1,663
5
3,391
113
1,898
5
3 ,373
107
1 ,793
343
287
344
270
344
270
344
270
344
270
25
60
25
50
25
60
25
60
25
60
25
60
25
60
25
60
25
60
25
60
Food Program
Food Stamps* 2/
Special Milk*
Child Nutrition* 2/...
Special supplemental
Food Program* (WIC)2/
Increased user charges
for grain inspection.*
Forest Service
Employment freezes
travel, equipment,
consultant and other
administrative
Subtotal
Department of Commerce
Economic Development
Administration
Regional Development
Programs.............
National Oceanic and
Atmospheric Admin....
(Regulatory reduction)
National Telecommunications and
Information Admin....
Maritime Admin
Administrative/program
reductions not
4
150
35
61
67
66
66
66
66
66
66
66
66
66
66
347
440
4,535
4 ,628
4,576
4 ,764
5,605
5 ,887
6,269
6,641
6,742
7 ,153
345
11
624
374
694
532
759
621
823
754
889
844
21
8
302
(1)
300
(1)
7
60
(1)
16
(1)
236
(1)
22
2
21
18
466
Department of Defense-Military
Civilian pay and
withdrawal of retired
pay legislation*
Program redactions....
319
Administrative
reductions not
included above
220
Subtotal
4
148
539
4
1
1
208
(1)
303
(1)
292
(1)
334
(1)
339
(1)
334
(1)
338
(1)
22
107
10
40
23
29
14
53
23
55
23
44
23
86
23
54
23
124
23
59
18
12
25
24
27
37
38
49
49
59
59
76
1,001
664
1,073
922
1,208
1,,066
1,315
1,219
1,397
1 ,285
60
131
1,735
154
792
1,214
1,646
1,653
2,498
1,653
2,018
2,010
3,209
2,010
2,749
2,384
3,939
2,384
3,379
220
120
120
120
120
120
120
120
120
120
120
280
1 ,986
1,066
2,980
2,670
4,271
3,791
5,339
4,879
6,443
5,883
1 ,214
1,336
CJ1
I
SUMMARY TABLE (con't)
(in millions of dollars)
1981
BA
epartment of Defense-Civil
Corps of Engineers****
Cemeterlal Expenses,
**
epartment of Education
Local education block
grants*........«...«•.
Title I basic local
concentration,
migrant*••••••••••••
Education for the
handicapped
Adult education
Emergency school aid*
Basic skills Improve-
Subtotal, savings..
1982
0
198 4
1983
0
BA
BA
BA
0
1985
1986
0
0
BA
0
1,28 4
1,039
1,488
1,283
1,380
1,290
1
1
1
1
1
1
BA
- —
230
230
1,017
**
2
2
1
-3,647
-255
-3,829
-2,815
-4,021
-3,589
-4,222
-3,927
-4,433
-4,163
782
**
814
57
3,562
824
3,858
3,241
4,139
3,519
4,404
3,787
4,686
4,030
237
30
53
5
14
5
1,060
122
224
238
28
55
1,161
132
242
715
126
174
1,247
142
260
1,182
134
228
1,326
150
277
1,266
143
254
1,410
160
294
1,349
153
272
9
9
18
14
20
15
21
17
23
18
24
19
90
1,339
904
1,584
1,456
1,788
1,491
1,958
1,541
2,141
1,660
-715
-50
-750
-551
-788
-703
-827
-769
-869
-816
1 • 143
State education block
Title I Handicapped,
neglected and
delinquent
Special programs
and populat ions••••
Education for the
handicapped
Emergency school
aid
School Improvement••
School libraries*•••
Other
••••
25
78
43
1
Subtotal, savings••
Rehabilitation
services and handicapped, research 3/**
Student financial
Student loan insurance (savings)
Vocational and adult
education
*
National Institute of
Education* *•.••«*.•••
Institute of Museum
66
5
268
66
290
241
311
262
331
285
352
306
11
2
120
31
130
126
139
131
148
139
156
147
117
12
122
107
131
122
138
131
148
137
**
81
123
171
23
22
89
47
1
88
134
186
23
64
107
152
24
94
143
202
24
83
116
198
24
100
156
216
24
93
124
214
24
107
166
230
24
100
132
228
24
255
23
188
218
223
270
256
233
286
241
iU
258
23
4
150
50
296
205
323
224
350
242
376
260
400
277
25
24
25
25
27
27
30
30
32
32
34
34
195
59
156
174
164
188
172
164
174
234
185
302
5
3
23
22
22
20
23
20
25
21
27
22
17
21
8
7
18
22
16
17
20
24
17
18
21
26
19
22
22
20
20
24
49
15
46
43
50
47
53
50
57
54
31
2
6
8
12
Indian Education.••••*
Higher and continuing
education*
**
8
**
3
(1,011)
(842)
(1,102) (1,031)
(1,192) (1,174)
(1,279) (1,262)
(1,361) (1,344)
SUMMARY TABLE (con't)
(in millions of dollars)
1981
BA
College housing loans
Fund for improvement
of postsecondary
education
Libraries and learning technologies
Office of Civil
BA
0
BA
198 4
1983
1982
0
0
1985
BA
1986
BA
0
0
BA
0
15
18
13
4
12
30
12
75
12
86
12
85
3
2
7
4
8
4
8
5
9
5
9
6
31
3
33
10
40
33
48
43
50
52
2
1
2
2
2
2
2
2
2
2
900
50
900
900
900
900
900
900
900
900
65
3
70
64
75
69
80
72
85
76
13
3
14
10
16
13
17
15
18
18
1
1
Youth education and
Bilingual and minority
language education...
Other program
54
5
4
Administrative
reductions (not
Department of Energy
Uranium enrichment....
Synthetic Fuels
Fossil Energy
Solar Energy
Other Energy Supply.••
Energy Conservation...
Regional Storage.
Energy Information....
Energy Regulation
Alcohol Fuels
Subsidy \J (non-add).
General Science
Department Admin.•••••
Administrative
reductions not
included above
Naval Petroleum
Reserve Receipts
Energy Sciences.•••••.
Magnetic Fusion
3
1
11
10
11
11
13
11
13
13
13
13
1,896
283
3,156
1 ,656
3,479
3 ,292
"37779
3,370
47032
3,556
4728?
3,803
843
547
50
99
147
207
15
840
404
443
215
645
5
61
145
9
356
661
403
209
461
51
730
503
437
206
623
-1
614
362
197
408
46
214
595
362
198
467
5
517
309
194
407
35
241
519
309
204
407
12
68
393
789
321
380
196
442
10
49
179
-69
1,060
498
457
211
631
14
111
405
772
360
390
223
677
15
47
159
75
263
121
79
69
42
67
136
67
138
73
133
73
129
78
123
78
123
(741)
(103)
(—:
(28)
24
107
61
143
(
)
(—:
(
44
118
42
85
60
127
)
(
128
)
(
)
(
)
(
)
(
)
60
122
76
139
72
134
83
142
83
145
20
2
40
129
269
-239
-59
390
222
208
197
353
456
415
663
1,321
245
2
11
245
1
8
264
54
46
264
54
84
182
60
86
182
60
65
137
64
155
137
64
105
113
68
216
113
68
136
80
71
253
80
71
168
2,565
671
3,522
3,682
3,704
3,415
3,042
3,596
3,058
3,022
2,924
3,78 4
Department of Health and Human Services
Health and Social
Services grant
consolidation* V . . . .
National Health Service
Corps Scholarships...
23
6
Health Professions
Education
41
8
2,315
1,836
2,619
3,129
2,847
3,330
3,031
3,316
3,112
3,397
56
38
87
100
121
110
158
130
198
150
44
20
44
50
44
50
44
50
44
48
Subtotal
SUMMARY TABLE (con't)
(in millions of dollars)
Merchant Seamen
(PUS)* 5/
PHS Commissioned Corps
Physician Bonuses*...
Centers for Disease
Control (excluding
grant consolidation)•
National Institutes of
Health 6/
National Research
Service Awards*
(ADAMHA) 6/
Regulation of Health
Care Industry
-Health Planning.....
— PSRO' s* .....«••..«••
(PSRO obligations)..
Health Maintenance
Organizations*
Indian health programs
Alcohol, Drug Abuse
and Mental Health
programs (excluding
grant consolidation)•
Office of the
Assistant Secretary
for Health (excluding
grant consolidation)•
Food and Drug
Administration
Medicaid*
Health Care Financing
Administration program
management*
Medicare payments
timing*••••••••••••••
Medicare reimbursements
changes*•••••••••••••
Supplemental Security
Income*
Aid to Families with
Dependent Children
and Child Support
Enforcement*
Refugee Assistance....
Cuban/Haitians
education assistance.
Immigrants Welfare
Eligibility*
Social Security 7/....
-Minimum benefits*.••
-Disability insurance*
-Student benefits*.••
0
39
BA
39
1984
1983
1982
1981
BA
BA
0
BA
0
1985
0
BA
1986
0
BA
0
82
82
150
150
160
160
160
160
160
160
3
3
3
3
3
3
3
3
3
3
29
10
76
62
76
66
76
70
76
76
76
76
81
36
86
73
91
83
97
92
102
98
107
103
1
5
4
24
6
(38)
9
38
89 .
13
(104)
28
10
33
3
77
21
5
3
589
339
2
3
4
50
45
102
145
15
(107)
107
106
145
22
(174)
120
171
145
22
(174)
145
171
145
22
(174)
145
171
40
137
22
53
48
166
32
68
48
196
42
165
48
228
48
196
48
262
48
229
48
65
167
116
187
148
208
142
230
164
5
23
10
23
20
23
23
23
23
32
1,185
19
944
17
2,608
17
2,365
17
3,969
18
3,682
17
5,164
18
4,,898
17
6,535
20
6,206
16
16
16
16
16
16
16
16
16
16
13
-518
522
20
105
31
4
130
110
110
110
110
110
110
110
110
110
110
636
69
636
54
802
57
802
53
884
24
884
39
975
14
975
22
1,003
14
1,003
15
15
15
15
15
15
15
15
15
15
50
60
35
205
180
155
15
15
15
1,000
1,100
370
1,000
925
1,625
1,100
1,430
2,000
1,,100
1,,975
2,, 125
1 ,100
2,470
2,250
SUMMARY TABLE (con't)
(in millions of dollars)
1981
BA
-OASDI Lump Sum Death
Payment*
Administration on
Aging
Administration for
Native Americans
Administrative reductions not included
above
Subtotal
1982
0
BA
BA
1985
1984
0
150
BA
0
BA
BA
0
200
200
175
1986
0
200
55
52
72
70
92
90
113
111
135
132
6
3
6
3
6
3
6
3
6
3
17
17
42
18
45
41
48
44
51
47
53
50
1,046
221
5,188
7,424
7,382
11,486
9,150
14,267
10,729
16,353
12,334
18,512
19
119
9,421
132
76
304
10,143
213
215
530
10,838
302
483
792
11,510
402
825
1,088
5
163
744
10
180
784
15
3
198
824
21
19
217
865
28
45
2,235
2
3,755
16
5,233
62
6,620
143
258
142
305
285
175
234
239
211
800
7
800
27
800
60
800
100
apartment of Housing anc Urban Development
Subsidized Housing:
-program level
8,688
3
4,632
-rent contribution...
60
-rental assistance
payments
149
-Indian housing
161
703
-eliminate outyear
inflation
Payments for the
operation of low
income housing
projects (public
housing operating
subsidies)
100
43
Public Housing
Modernization
300
500
FHA-Credit Limita(4,845)8/
5
(9,000)8/
Cash sales••••••••
8
Rent contributions
GNMA Mortgage-Backed
Securities
••••• (8,000)8/
(8,000)8/
-1
GNMA Special Assistance Functions
-2,627
-3
196
GNMA Mortgage Assistance Grants.*...««•••
490
Solar Energy and
Conservation Bank...,.
47
121
125
Community Development
Support Assistance...
469
Planning Assistance...
35
3
35
Rehabilitation Loan
134
39
111
Neighborhood Self-Help
Development
8
4
9
Research and
Technology
2
15
Administrative reductions not Included
4
4
18
1983
0
57
-36
18
3
-15
20
2
-100
-63
16
3
-149
14
6
15
4
-2
N/A
-3
N/A
-5
N/A
-6
N/A
-7
4
0
-258
0
-201
360
400
514
654
490
490
490
490
490
490
490
134
125
125
125
125
125
125
125
125
-5
24
339
35
-16
35
359
35
118
35
257
35
369
35
92
35
317
35
199
138
214
142
215
144
217
146
218
6
9
9
9
9
9
9
9
9
5
17
15
17
17
17
17
17
17
18
18
18
18
18
18
18
18
18
SUMMARY TABLE (con't)
(In millions of dollars)
1982
1981
BA
Housing Counseling
Assistance
Subtotal
Department of the Interior
Water and Power
Resources Service.....
Office of Water Research
and Technology
Fish and Wildlife
Service
Improved targeting of
conservation expenditures
Surface mining
Youth Conservation
Corps
Indian Affairs
Territorial Affairs*...
Bureau of Land
Management•..»••••.•••
Geological Survey
Other program reductions
On-shore mineral
leasing
Other offsetting
receipts
Administrative
reductions not
included above
Subtotal
Department of Justice
Legal Division*........
FBI
Drug Enforcement Admin.
Federal Prison System..
Juvenile Justice and
Dellquency
Prevention 9/
Administrative reductions not included
above
Subtotal
1984
1983
0
BA
0
0
BA
1985
0
BA
1986
0
BA
BA
0
6
3
6
5
6
6
6
6
6
6
6
6
5,674
1*57
8,775
595
14,930
671
17,381
1,874
19,831
3,270
22,16$
4,1*4
64
60
43
41
204
202
201
201
111
111
35
7
32
26
37
43
38
40
41
40
42
40
6
3
60
53
60
60
60
60
60
60
60
60
309
98
577
64
270
21
512
57
239
25
454
76
428
45
468
97
496
41
624
118
564
66
38
33
60
56
46
60
49
46
60
56
22
60
49
4
60
56
28
60
49
27
60
56
28
60
49
28
60
56
28
60
49
28
1
1
48
34
7
48
34
7
48
34
8
48
34
8
48
34
8
48
34
8
48
34
8
48
34
8
48
34
8
48
34
8
200
200
80
80
150
150
135
135
145
145
154
154
90
90
163
163
150
150
162
162
30
30
37
37
56
57
76
80
95
99
115
119
Jl?
171
1,439
1,065
1,163
838
1,455
1,394
1,481
1,449
1,611
1,494
1
**
8
9
6
4
8
8
6
4
8
7
8
6
10
6
8
6
10
6
13
17
18
10
13
17
18
10
19
28
28
15
19
28
27
15
24
39
37
19
24
39
36
19
138
19
133
98
146
187
156
186
167
198
6
9
5^
25
17
67
77
57
57
87
87
138
137
150
149
45
35
231
121
220
185
291
332
384
412
436
465
SUMMARY TABLE (con't)
(in millions of dollars)
1981
BA
Department of Labor
CETA:
Eliminate Public
Service Employment
programs•••••••••••
Withdraw Youth
Legislation
Consolidate youth
programs into
general employment
and training
grants••••••*•*•••»
Reduce Job Corps
capital improvements .»*«..«.......
Reduce CETA National
Programs
...
Eliminate Welfare
Reform Demos.
Eliminate Positive
Adjustment Initiative ...».*.«..*•«..
All Other CETA
Reductions
Reduce WIN to current
services ••..•»•••....
Trade Adjustment
Legislation*
Unemployment Benefits
to Ex-Servicemen
Unemployment Insurance:*
Eliminate National
EB Trigger/State
Rate Change
Enforce EB work test
strictly
Strengthen regular
work test
Extended benefits 20week work base
Reduction in State
UI administrative
expenses
-increase productivity.
-related to UTF
legislation.••••••
Reform Federal
Employees Injury
Compensation*
•
Reduce Employment
Service state
personnel
149
1983
1982
0
535
38
1
60
60
400
505
1984
1985
1986
0
BA
0
BA
0
BA
0
4,558
3,545
4,222
4,073
4,561
4,408
4,931
4,762
5,341
5,143
250
80
250
232
250
250
250
250
250
250
856
670
1,074
892
1,263
1,094
1,452
1,290
1,640
1,487
15
15
48
48
48
48
48
48
48
48
108
100
110
110
110
110
110
110
110
216
155
61
50
31
19
16
12
15
15
16
16
16
16
16
16
20
20
20
20
20
20
20
20
20
20
1,150
1,150
760
760
380
380
380
380
380
380
225
225
237
237
245
245
247
247
248
248
200
92
72
100
270
200
284
5
4
4
3
285
285
272
264
11
10
4
2
46
43
43
42
42
68
39
22
22
20
BA
18
13
BA
0
110
50
50
54
54
59
59
63
63
69
69
4
150
4
150
4
150
4
150
4
150
SUMMARY TABLE (con't)
(In millions of dollars)
1981
BA
1982
0
BA
1983
0
BA
1981 1984
1985
BA
0
1986
BA
BA
Other policy changes
in salaries and
Department of State
Assessed contributions
to international
organizations
Foreign buildings and
narcotics assistance..
Administrative reductions, Including
employment, travel,
etc...................
Subtotal
4
4
45
105
104
133
135
162
167
190
197
7,591
6,406
7,103
7,254
7,093
7,355
7,787
8,121
8,520
8,737
18
160
42
4
160
38
4
138
19
5
137
24
5
187
14
5
182
15
5
200
15
5
34
15
5
15
6
15
6
3
2
17
8
15
17
3
9
3
3
3
3
3
3
15
14
17
17
17
17
17
17
19
19
28
23
238
224
194
200
226
228
240
74
43
43
49
6
300
99
50
67
350
40
215
66
400
40
381
25
450
40
458
32
525
46
363
42
1
1
13
13
4
4
9
9
3
2
7
7
2
2
2
2
15
16
42
634
1,192
22
Travel reductions
(not included above).
Consulting services
(not Included above).
Procurement reductions
(not Included above).
Personnel compensation
(not included above).
—
Department of Transportation
Airport Construction*••
272
Other FAA reductions.••
™
FAA regulatory
reductions••••••••••
—
Federal Highway
Construction*
-Non-Interstate
Highways.....
-Interstate Transfers
-Other, Federal
Highway Admin
Highway Safety Grants*
NHTSA regulatory
reduction. • ••••
(**)
Cooperative Automotive
Research program....•.
12
Railroad Restructuring
Assistance.••••••••••
(2)
(**)
6
(2)
(2)
(2)
(2)
(2)
(2)
(2)
(2)
(2)
1,900
100
388
16
2,100
200
1,344
154
100
165
1,732
187
2,100
285
1,837
158
1,800
405
1,945
185
7
167
17
47
7
125
22
112
7
138
22
138
7
162
15
150
7
178
6
163
(1)
(1)
(1)
(1)
(1)
(1)
(1)
(1)
(1)
(1)
17
12
34
17
50
25
50
35
50
45
40
5
54
30
68
55
81
70
204
90
SUMMARY TABLE (con't)
(in millions of dollars)
1981
BA
Low Volume Railroad
Branch Lines
80
Federal Railroad
Admin, regulatory
reduction.••••..•••.
(**)
Northeast Corridor
Improvement Program*..
AMTRAK. subsidies
25
Urban Mass Transportation250
Capital Grants*
Operating Subsidies*.
25
Other UMTA programs..
Administrative
reductions not
included above.
25
Boat and Yacht Fees
(Increases to
proprietary receipts)
Subtotal
689
Department of the Treasury
Biomass Energy
Development
1,246
Payment in excess of
business tax
liabilities
227
Payment to non-profit
institutions related
to the 8X social
security tax credit..
Payments to State and
local governments
related to the 8X
social security tax
credit
Payments where credit
exceeds liability....
Internal Revenue
Service
-Personnel
23
Administrative
reductions not
Included above
25
Subtotal
1,521
8
(**)
BA
0
BA
1984
1983
1982
0
BA
0
1985
0
80
32
87
57
94
75
(1)
(1)
(1)
(I!
(1)
(1)
1986
0
BA
101
(1)
BA
98
(1)
0
108
(1)
106
(1)
25
25
288
380
155
304
-13
550
114
497
20
700
1
689
15
900
15
858
987
1,037
54
1,340
420
3
35
5
1,635
370
45
805
208
26
1,795
740
55
1,153
512
46
1,845
1,105
60
1,535
899
41
1,860
1,105
70
1,649
1,088
55
27
124
105
144
134
158
155
173
167
184
185
100
100
200
200
300
300
400
400
500
500
4,977
1,723
5,928
4,001
6,830
5,496
7,774
6,>68
8,029
>,459
4,704
4,704
5,390
5,390
6,030
6,030
6,657
6,657
210
148
227
122
3,493
3,493
237
237
349
349
389
389
446
446
500
500
495
495
812
812
897
897
1,020
1,020
1,146
1,146
572
572
526
526
484
484
446
446
39
84
94
148
163
240
288
329
373
414
457
26
79
78
134
141
200
205
261
265
318
322
4,51$
6,719
4,74l
7,642
7,6*5
4*0
4,570
6,616
9,526
SUMMARY TABLE (con't)
(in millions of dollars)
1984
BA
0
Environmental Protection Agency
Wastewater Treatment
Grants
1,700
Superfund
10
Other Programmatic
Reudctions
(Reductions related to
Regulatory Programs)..
(21)
Administrative
reductions not
Included above
21
Subtotal
1,731
BA
20
5
(21)
0
Veterans Administration
Interest rates on
insurance loans
GI bill extension
GI bill flight and
correspondence*.......
Consolidation of
Benefit Processing
Functions....
Major construction
projects
Minor construction
projects
Physician and Dentist
Bonuses*
Personnel adjustments
excluding regional
offices
Administrative reductions not included
above
Subtotal
Other Independent Agencies
ACTION
Administrative Conference of the United
state8
Architectural and
Transportation Barriers
Compliance Board
15
154
1985
0
BA
1986
0
BA
0
290
30
1,600
49
1,450
50
2,000
28
2,270
38
2,300
-42
2,270
-7
2,600
-277
2,275
-69
181
102
210
157
236
195
262
230
285
251
(194)
(142)
(228)
(184)
(263)
(230)
(294)
(259)
(150)
(90)
21
4
4
9
9
17
17
26
26
34
34
46
3,935
426
1,868
1,666
2,281
2,520
2,546
2,519
2,642
2,491
447
765
686
913
795
645
804
419
664
22
20
20
20
20
20
20
20
20
60?
569
785
706
933
815
665
824
439
684
63
96
63
67
65
67
16
41
16
14
13
14
13
13
36
36
73
73
74
74
75
75
78
78
71
91
-52
74
-11
55
32
8
34
25
36
36
39
39
40
40
40
40
40
40
12
91
14
BA
0
3,700
50
National Aeronautics and Space Administration
Program reductions
5
2
580
Administrative
reductions
10
10
24
Subtotal
BA
Ln
I
14
28
3
-36
10
10
40
40
40
40
40
40
41
41
146
146
253
253
329
329
408
408
501
501
40
34
208
211
373
376
573
573
759
768
939
939
259
218
596
691
788
973
1,057
1,164
1,335
1,360
1,611
1,575
9
3
40
36
56
55
73
69
80
76
86
82
**
**
**
**
**
**
1
1
3
2
3
3
—
2
2
3
3
3
3
SUMMARY TABLE (con't)
(in millions of dollars)
1981
BA
Arms Control and
Disarmament Agency....
Civil Aeronautics
Board
Administrative
reduction.••••••••••
CAB regulatory
reduction
Commission of Fine Arts
Commission on Civil
Rights
Committee for Purchase
from the Blind and
Other Severely
Handicapped...........
Commodity Futures
Trading Commission....
Community Services
Administration 3J •••••
Consumer Product Safety
Commission...••••..•••
Corporation for Public
Broadcasting
Federal loans to the
District of Columbia..
Equal Employment
Opportunity Commission
Export-Import Bank of
the United States
Federal Communications
1982
0
2
1
1
1
(1)
(1)
**
**
**
**
—
2
198 5
0
1986
0
BA
BA
0
2
3
3
3
3
3
3
4
4
56
51
64
64
54
54
34
34
2
2
1
1
2
2
2
2
2
2
3
3
(1)
(1)
(2)
(2)
(2)
(2)
(2)
(2)
(3)
(3)
**
**
**
**
**
**
**
**
**
**
1
**
(542)
2
BA
0
BA
3
1
—
1984
1983
0
BA
1
**
1
(299)
1
**
2
(542)
1
* *
2
(542)
2
* *
2
1
**
2
2
**
2
2
**
2
3
**
3
(542)
(542)
(542)
(542)
(542)
3
**
3
(542)
12
14
12
12
12
12
12
12
12
12
43
43
52
52
73
73
98
98
110
110
39
74
84
99
-14
141
-71
84
-85
70
4
4
20
20
32
32
44
44
52
52
59
59
748
70
571
236
891
523
1,266
782
1,690
1 ,026
2,117
1 ,248
1
1
5
5
15
11
22
18
30
27
39
35
**
**
1
1
1
1
1
1
1
1
1
1
8
8
1
31
97
4
31
111
5
31
115
5
31
121
7
31
125
7
31
129
8
31
132
8
31
135
1
31
99
4
31
137
9
Federal Election
Federal Emergency
Management Agency
-Flood Insurance
Federal Home Loan
Bank Board....».....•«
Federal Labor Relations
Federal Maritime Commission (Regulatory
restraint)
Federal Mediation and
Conciliation Service*.
Federal Mine Safety
and Health Review
Commission
Federal Trade Commission
186
130
130
130
9
130
1
1
1
1
1
1
2
2
2
2
2
2
*
*
1
1
1
1
1
1
1
1
2
2
1
1
4
4
5
5
6
6
7
7
7
7
**
4
**
4
**
8
**
8
**
**
**
**
**
**
**
**
15
16
20
20
22
22
25
24
SUMMARY TABLE (con't)
(in millions of dollars)
1981
BA
BA
General Services
Administration
-Federal Buildings
Construction
-Grants to the National
Historical Publication
and Records Commission
-National Defense
Stockpile*
-Administrative reductions not included
9
Intelligence Community
Staff
**
Advisory Commission on
Intergovernmental
Relations*••••••••••••
Appalachian Regional
Commission*•••••••••••
International Communication Agency
Interstate Commerce
Commission* *••••••••••
ICC regulatory reduction
Legal Services
Corporation 9/
Marine Mammal~
Commission
Merit Systems
National Consumer
Cooperative Bank*
National Foundation on
the Arts and the
Humanities
*
*
National Labor Relations
16
**
**
**
**
**
**
A
A
3
(3)
3
(3)
**
**
**
**
89
86
— -
—
3
1983
1982
0
3
198 A
0
BA
0
BA
1985
0
7
BA
1986
0
BA
0
121
12
3
3
3
3
3
3
3
3
3
3
507
507
507
507
75
75
-206
-206
-206
-206
28
A2
38
5A
A7
70
55
86
63
96
**
**
**
**
**
**
**
**
**
**
27
79
—
26
—
A
A
A
A
A
A
A
A
A
A
29
2A
39
AO
AA
AA
A9
A9
A9
A9
6
(6)
6
(6)
11
(11)
11
(11)
12
(12)
12
(12)
13
(13)
13
(13)
1A
(1A)
1A
(1A)
3A7
312
36 A
36 A
382
382
A01
A01
A21
A21
**
**
**
**
**
**
**
**
**
**
1
1
1
1
2
2
2
2
2
2
136
136
160
159
185
180
185
177
200
192
172
87
183
1A6
199
187
216
207
232
221
A
A
9
8
16
15
2A
22
32
30
National Mediation
National Science
Foundation* *•••••••••••
National Transportation
Safety Board
Nuclear Regulatory
Commission* *•«•••••••••
Occupational Safety and
Health Review Commission
Office of the Federal
Inspector for the
Alaska Natural Gas
Transportation System.
**
**
**
**
**
**
**
**
**
**
83
36
320
209
360
32A
AO 6
369
A5A
A17
A96
A62
**
**
1
1
1
1
1
1
1
1
2
2
1
1
1
1
1
1
1
1
2
**
1
1
**
2
**
1
**
**
SUMMARY TABLE (con't)
(in millions of dollars)
1981
BA
Office of Personnel
Management
-Administrative early
retirement
-Disability criteria*.
-Intergovernmental
Personnel Act*..
-Administrative reductions not included
above
Panama Canal Commission
Pennsylvania Avenue
Development Corporation
Postal Service (payment
to the Postal Service
Fund)
Railroad Retirement
Board
-Ad hoc June 1981
Rail Pension Increase*
-Admlnls t ra t ive
reductions
Renegotiation Board....
Securities and Exchange
Commission.•••••••••••
Selective Service
System
Small Business Admin,.
-Business loans
-Disaster relief
-Technical assistance.
-Administrative reductions not included
above
Smithsonian Institution
(includes National
Gallery and Wilson
Center)
President's Commission
for the Study of
Ethical Problems in
Medicine..•*.•........
Tennessee Valley
Authority.
United States Metric
Board....
United States Railway
Association*
Water Resources Council
1
2
1
**
BA
0
30
150
30
150
30
150
30
150
30
150
30
150
30
150
30
150
30
150
**
20
13
20
20
20
20
20
20
20
20
2
10
10
1
**
4
4
14
5
14
5
18
6
18
6
22
6
22
6
25
7
25
7
12
14
25
6
17
13
10
22
17
26
250
250
150
150
237
237
226
226
258
258
40
40
40
40
40
2
3
4
5
6
1
6
6
3
3
2
2
49
780
8
149
81
780
4
20
16
3
3
1
1
9
26
9
5
.**
_**
10
10
1
25
5
1986
BA
BA
30
150
1
**
198 5
BA
0
30
150
10
Subtotal, Other
Independent Agencies. 1,803
BA
1984
1983
1982
0
I
**
125
1,272
15
19
19
21
21
25
25
1
1
1
1
1
1
1
60
16
240
-24
16
82
16
226
-11
16
75
16
197
2
16
16
248
-36
16
12
-22
12
11
15
2
15
-1
16
2
16
-6
18
3
18
3
1
1
1
1
1
1
1
15
1
22
-8
1
1
_**
1
5
39
-95
33
102
42
102
43
43
43
44
45
45
47
3,365
2,740
3,651
3,611
»743
3,726
3,980
3,842
4,581
4,180
SUMMARY TABLE (con't)
(In millions of dollars)
1981
Allowance for effect of
changes In Davis-Bacon
Act and Service Contract
Act administrative
procedures and Black
iung Trust fund
Reform
30
Effects on civilian
agency pay coats of
revising the Federal
Pay Comparability
Standard* «.«••.••.....
———
Mineral Leasing on
Outer Continental
Shelf
250
TOTAL, On-Budget,
Budget Authority
and Outlay Savings 20,621
Off-budget Items
Federal Financing Bank
-Foreign Military
Sales Credit
(Loan guarantee
commitments)
-Rural Electrification
and Telephone*
(Loan guarantee
commitments)
-Farmers Home Admin...
(Direct loan obligations)
-Small Business
Administration 10/...
(Loan guarantee
commitments) •
-HUD Community Development loans 11/• • • ••
(Loan guarantee
commitments)••••
-Student Loan Marketing
Association.
(Loan guarantee
commitments)••••••
30
1984
1983
1982
BA
BA
BA
1985
BA
1986
BA
BA
528
528
624
624
753
753
932
932
1,119
1,119
159
149
635
616
1,132
1,161
1,540
1,597
2,022
2,131
250
700
700
2,000
2,000
3,000
3,000
3,500
3,500
3,500
3,500
6,057
58,914
40,310
70,908
58,123
84,354
71,564
95,363
81,698
104,627
91,256
I
M
Ln
CO
I
300
300
(300)
350
350
350
350
350
350
350
(350)
(350)
(350)
(350)
350
38
38
1,152
1,152
2,360
2,360
3,670
3,670
5,091
5,091
6,630
6,630
(187)
361
360
(5,545)
1,699
1,698
(6,045)
1,505
1,705
(6,580)
1,572
1,571
(7,170)
4,773
1,585
(7,800)
2,707
1,910
67
64
(67)
143
(250)
65
59
90
90
(250)
1,423
(1,423)
35
182
183
2,211
(2,211)
15
250
2,211
2,543
(2,543)
65
20
286
2,543
(2,543)
20
77
107
(250)
2,543
65
(65)
(65)
(250)
(250)
1,423
65
(65)
(65)
(65)
133
65
(2,354)
(2,354)
(2,354)
(2,354)
(2,354)
(565)
(250)
2,543
2,543
(2,543)
2,543
SUMMARY TABLE (con't)
(in millions of dollars)
1981
BA
-Health Maintenance
Organizations
(Loan guarantee
commitments)
Subtotal, FFB
reductions
Total, Budget
Authority and
Outlay Savings
*
**
\J
7/
3/
F
^
6
|
|
^
$
%
|
o
3
§
*J
5/
6/
7/
~
8/
?/
10/
TT/
g
BA
1983
0
BA
(
609
)
(
595
—
609
59 5
21,230
6,652
)
4,729
63,666
BA
10
(10)
4,722
23
4,7 5 2
198 4
0
10
Other off-budget
entitles:
Rural Telephone Bank.
Subtotal, off-budget
savings
1982
0
6,683
45,032
6,7 0 6
77,614
15
BA
15
6,854
64,977
8,465
8,450
12,912
8 , 450
NOTE:
90
90
(90)
9,786
80,014
12,9 3 5
108,298
12,385
11,620
9,786
91,484
12 , 385
11,620
117,012 102,876
Involves proposed legislation to be submitted
Less than $500 thousand.
The appropriations for the Alcohol Fuels and Biomass programs are in the Department of the Treasury.
Savings partially offset by Nutrition Block Grant for Puerto Rico funded at $.9 billion in each year 1982-86.
Funding will be available beginning in 1982 for the purposes served by this program from the Health and Human Services,
Social Services Block Grant. Displayed as a non-add entry because these savings are reflected in the HHS Social
Services Block grant entry.
Inclusive of savings derived from agencies other than the Department of Health and Human Services, including
the Rehabilitation Services Administration (Department of Education) and the Community Services Administration.
These savings to the Public Health Service will be partially offset by additional costs to the U.S. Coast Guard, the Merchant
Marine and several other agencies.
Elimination of National Research Service Awards is also Included in National Institutes of Health reduction.
The outlay savings would increase trust fund interest receipts (BA) by $100 million in 1982, $400 million in 1983,
$800 million in 1984, $1,100 million in 19&5 and $1,400 million in 1986. Increased trust fund receipts decrease the
deficit.
Represents reduction In limitation on commitments.
Authorized activities in programs encompassed In the proposed Social Services Block Grant.
Includes Small Business Investment Companies and Development Company debentures.
While loan guarantee commitments financed through FFB will be reduced by these amounts, losn guarantees will
still be made, though not financed by the FFB.
0
1
w
90
0
23
8 , 488
92,842
BA
(90)
23
6,8 5 4
1986
0
90
(15)
23
4,7 2 2
198 5
0
Administrative reductions Involve decreases in personnel costs, consultants, travel, etc.
h-4
Oi
^
@FedFRASER