Full text of Budget Revisions : Fiscal Year 1981

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FISCAL YEAR

1981

Budget
Revisions

March 1980

For sale by the Superintendent of Documents, U.S. Government Printing Office
Washington, D.C. 20402







GENERAL

NOTES

All years referred to are
unless o t h e r w i s e n o t e d .

fiscal

years,

D e t a i l s in the tables and text of this
d o c u m e n t m a y not add to the totals due
to r o u n d i n g .

- i i i-

TABLE

OF

CONTENTS

Page
MESSAGE OF THE P R E S I D E N T

Part

1.

ON THE BUDGET

1

THE C U R R E N T B U D G E T OUTLOOK

5

Budget T o t a l s
S h o r t - R a n g e Economic Forecast
Budget Receipts
Budget A u t h o r i t y and O u t l a y s . , . .
Summary
C h a n g e s from J a n u a r y to the March
1980 and 1981
Planned R e d u c t i o n s from the March
Current E s t i m a t e , 1980 and 1981
The Credit Budget
O f f - B u d g e t Federal Entities
M u l t i - Y e a r Planning E s t i m a t e s

Part

2.

BUDGET A U T H O R I T Y A N D OUTLAYS

BY

3.

SUMMARY TABLES

Part

A.

THE P R E S I D E N T ' S




„

Base,
13
Base

to

the
15
19
23
23

FUNCTION,

1979-1981

Part

5
6
10
12
12

29

61

BUDGET REDUCTIONS

75

-iv-

LIST

OF

TABLES

Page
Part

1.
1.
2.
3.
4.

6.
7.
8.
9.
10.
11.

Part

Part

2.

3.

THE CURRENT

BUDGET

OUTLOOK

Budget Totals
Short-Range Economic Forecast
C h a n g e in B u d g e t R e c e i p t s
S u m m a r y of O u t l a y R e e s t i m a t e s and P l a n n e d
Reductions
R e e s t i m a t e s from J a n u a r y to the M a r c h B a s e ,
1980 and 1981
P l a n n e d R e d u c t i o n s from the M a r c h Base to the
C u r r e n t E s t i m a t e , 1980
P l a n n e d R e d u c t i o n s from the M a r c h Base to the
C u r r e n t E s t i m a t e , 1981
C h a n g e in the C r e d i t B u d g e t T o t a l s
C h a n g e in O u t l a y s of O f f - B u d g e t F e d e r a l E n t i t i e s . .
Long-Range Economic Assumptions
M a j o r C h a n g e s in E s t i m a t e d B u d g e t A u t h o r i t y and
O u t l a y s , 1982 and 1983

C H A N G E S IN B U D G E T A U T H O R I T Y
EACH FUNCTION, 1979-1981

SUMMARY

AND OUTLAYS

13
14
16
18
22
23
24
27

FOR
29-59

TABLES

12. B u d g e t R e c e i p t s b y M a j o r S o u r c e , 1 9 7 9 - 1 9 8 3
13. E s t i m a t e d E f f e c t of A d m i n i s t r a t i v e A c t i o n s and
P r o p o s e d L e g i s l a t i o n on R e c e i p t s , 1 9 8 0 - 1 9 8 3
14. C o m p o s i t i o n of B u d g e t O u t l a y s , 1 9 7 9 - 1 9 8 3
15. B u d g e t O u t l a y s b y F u n c t i o n , 1 9 7 9 - 1 9 8 3
16. B u d g e t O u t l a y s by A g e n c y , 1 9 7 9 - 1 9 8 3
17. B u d g e t A u t h o r i t y b y F u n c t i o n , 1 9 7 9 - 1 9 8 3
18. B u d g e t A u t h o r i t y b y A g e n c y , 1 9 7 9 - 1 9 8 3
19. D e b t S u b j e c t to L i m i t , 1 9 7 9 - 1 9 8 1
20. The C r e d i t B u d g e t T o t a l s
21. N e w D i r e c t Loan O b l i g a t i o n s by A g e n c y
22. N e w Loan G u a r a n t e e C o m m i t m e n t s b y A g e n c y




5
8
11

62
63
64
66
67
68
69
70
71
72
73

MESSAGE

OF THE P R E S I D E N T ON THE

To the C o n g r e s s of the United

BUDGET

States;

During the first two m o n t h s
of
the
year,
inflation
took
another
sharp upward leap, both in the United States and a b r o a d .
Actual
prices
and
interest
rates
worsened,
along
with
expectations
about
future i n f l a t i o n .
Continued price increases
of the size we have experienced would do g r a v e harm
to
American
society and the A m e r i c a n e c o n o m y .
OPEC's
December
oil
price
discussions
in C a r a c a s proved
i n c o n c l u s i v e , and world
oil
price
increases
were
far
beyond
expectations.
But
inflation
o u t s i d e of the e n e r g y sector also
strong.
rose.
The A m e r i c a n e c o n o m y continued to be u n e x p e c t e d l y
Consumer demand and b u s i n e s s investment remained at higher levels
than
predicted.
Since the Federal Reserve c o n t i n u e d , c o r r e c t l y ,
to restrict
the
growth
of
the
money
supply,
the
surge
in
inflation
and
credit
d e m a n d s produced a s h a r p upward spiral in
interest r a t e s .
To reverse these d a n g e r o u s t r e n d s , I a n n o u n c e d a
five-point
anti-inflation
program.
This program c o n s i s t s of spending cuts
n e c e s s a r y to b a l a n c e the budget for 1981,
additional
restraints
on
credit,
wage
and price a c t i o n s , further e n e r g y c o n s e r v a t i o n
measures,
and
structural
changes
to
enhance
productivity,
s a v i n g s , and research and d e v e l o p m e n t .
These
measures
are interrelated and i n t e r d e p e n d e n t .
Taken
t o g e t h e r , they will be more than the sum of
their
parts.
They
will
not
reduce
inflation
i m m e d i a t e l y , but together they will
produce
a
significant
decline
in
inflation
as
the
year
progresses.
At
the
center of this p o l i c y is m y d e c i s i o n to cut Federal
spending so as
to
balance
the
1981
budget.
In
January,
I
submitted
to
the
Congress
a budget for 1981 that provided for
substantial r e s t r a i n t s on Federal spending and the lowest d e f i c i t
in 7 y e a r s .
After a d j u s t m e n t for i n f l a t i o n ,
the
1981
spending
level
was
virtually
level with that for 1980.
It was a budget
that followed in e v e r y respect the p o l i c i e s of restraint
I
have
set
during
the
past
three
years.
However,
in
v i e w of the
continued high level of economic a c t i v i t y , and what h a s
recently
happened
to inflation and interest rates, I h a v e had to consider
new p o l i c i e s .
I m u s t now
ask
the
Congress
and
the
American
people
to
support a revised budget that is even more restrained
and a u s t e r e .




-2-

REVISED BUDGET
(in b i l l i o n s of

Budget r e c e i p t s
Budget o u t l a y s
S u r p l u s or d e f i c i t

(-)..

Budget authority

OUTLOOK
dollars)

1979

1980

1981

1982

1983

465.9
493.7

532.4
568.9

628.0
611 .5

724.8
683.3

837.8
759,0

-27.7

-36.5

16.5

41.5

78.9

556.7

665.8

691. 3

777.3

849.1

Let m e first explain
the
extraordinary
way
b u d g e t r e d u c t i o n p r o p o s a l s have been d e v e l o p e d .

in

which

my

The
b u d g e t , as it is finally e n a c t e d , is —
as it should be
under our C o n s t i t u t i o n —
the joint product of the
Congress
and
the
executive branch.
Because of the g r e a t i m p o r t a n c e we a t t a c h
to reduced s p e n d i n g , the l e a d e r s h i p of the C o n g r e s s
and
I
have
done
everything within our power to reach g e n e r a l u n d e r s t a n d i n g s
in a d v a n c e on reduction p r o p o s a l s .
I and senior
members
of
my
Administration
met with M e m b e r s of the C o n g r e s s hour after h o u r ,
l i t e r a l l y d a y and
night,
in
order
to
reach
consensus.
The
importance
of
cutting spending to a c h i e v e a balanced budget was
never s e r i o u s l y in
dispute.
But
agreements
on
the
approach
necessary
to
a c h i e v e this b a l a n c e were not easy to r e a c h .
They
could be worked out o n l y through a l e n g t h y and s o m e t i m e s
tedious
p r o c e s s of c o n s u l t a t i o n .
The
revision
of
the
1981
budget
that
a c c o m p a n i e s this
m e s s a g e d e s c r i b e s m y p r o p o s a l s for increased
budget
discipline.
The principal a c t i o n s are:
d e f e r r a l , r e d u c t i o n , or c a n c e l l a t i o n of most
and
expanded
programs
o r i g i n a l l y proposed
budget;
—

a cut in e x p e n d i t u r e s
m a i n t e n a n c e throughout

for
the

personnel,
government;

of the
in the

new
1981

operations,

and

an immediate l i m i t a t i o n on Federal c i v i l i a n
employment,
and
rigid
m a i n t e n a n c e of e m p l o y m e n t c e i l i n g s to ensure
that
there
will
be
at
least
20,000
fewer
Federal
employees
by the end of fiscal year 1980 than there are
now;
a r e d u c t i o n in ongoing
Federal G o v e r n m e n t ;

spending

programs

throughout

the

re-emphasis
of
the
savings
and
revenue
measures
submitted in the J a n u a r y b u d g e t , including hospital cost
containment,
Federal
pay
reform,
and cash m a n a g e m e n t
reforms;



-3-

defense e f f i c i e n c i e s and
savings
that
do
not
affect
military
r e a d i n e s s and are c o n s i s t e n t with m y continued
c o m m i t m e n t to real increases in d e f e n s e spending;
a 15% reduction in the use of c o n s u l t a n t s
Federal e s t a b l i s h m e n t ; and

throughout

the

a freeze on basic salary increases for senior
executive
branch o f f i c i a l s and m e m b e r s of the White House s t a f f .
These b u d g e t a r y d e c r e a s e s are being supplemented by a series
taken
by
the
Federal
Reserve
to achieve g r e a t e r
of
actions
restraint on the e x p a n s i o n of credit in the private s e c t o r .
Some
of these a c t i o n s have been taken under the a u t h o r i t y
granted
by
the
Credit
Control
Act
of
1969.
The
m e a s u r e s taken by the
Federal Reserve will help to
reduce
inflation
by
slowing
the
growth of b u s i n e s s loans and some forms of consumer c r e d i t .
In addition to the a c t i o n s of the Federal Reserve on
credit,
the
Administration
will
increase restraint of
credit p r o g r a m s :
Federal loan g u a r a n t e e s will be cut
fiscal year 1981.

by

$4

private
Federal

billion

in

My n e w system to control Federal credit a c t i v i t i e s
will
be strengthened by expanding s i g n i f i c a n t l y the amount of
Federal
insurance
and
guarantee
activity
s u b j e c t to
l i m i t s within the s y s t e m .
I urge the C o n g r e s s to include Federal credit l i m i t a t i o n s in
the c o n c u r r e n t budget r e s o l u t i o n s .
These
measures
will
enable
the
Federal G o v e r n m e n t to control more e f f e c t i v e l y total lending
and loan g u a r a n t e e a c t i v i t y .
As part of this
anti-inflation
program,
I have
used
my
existing
authorities
to
impose
a g a s o l i n e c o n s e r v a t i o n fee on
imported o i l .
In the budget r e v i s i o n s , I am proposing to replace
this fee with an ad valorem
equivalent
gasoline
tax
that,
at
current
prices,
will
yield
10
cents
per
gallon.
I am also
proposing the v/ithholding
of
taxes
on
interest
and
dividend
payments
at
the source to ensure that Federal income taxes owed
on those p a y m e n t s are in
fact
paid,
and
paid
promptly.
The
resulting
receipts
will not be used to b a l a n c e the 1981 b u d g e t .
They will not be used as
a
substitute
for
necessary
spending
cuts.
R a t h e r , these receipts will g i v e the b u d g e t , w h i c h will be
balanced
independently
of
these sources of income, a m a r g i n of
safety.
This will ensure that the budget will remain in
balance
if e s t i m a t e s c h a n g e in a way that cannot be predicted now.
Success
in
reducing
spending to a c h i e v e a balanced budget
will
require
prompt
action
by
the
Congress.
To
achieve
substantial o u t l a y s a v i n g s for 1981, the C o n g r e s s must act before
the
fiscal
year
begins.
I particularly
urge
prompt
and
c o n s t r u c t i v e a c t i o n on r e s c i s s i o n s of 1980 budget
authority,
so
as
to
produce o u t l a y r e d u c t i o n s at least equal to m y p r o p o s a l s .
I also urge prompt
enactment
of
proposals
to
modify
certain




-4-

p r o g r a m s that n o w have two automatic
so
that
they
conform
to
the
adj u s t m e n t s .

inflation a d j u s t m e n t s
normal
practice
of

a year
annual

I will do everything in m y power to ensure
that
my
budget
proposals
are
realized.
I
repeat
that
I intend to veto any
l e g i s l a t i o n that t h r e a t e n s the spending r e d u c t i o n s required for a
balanced b u d g e t .
I will use the p o w e r s a v a i l a b l e to m e to
defer
spending
or
to
rescind f u n d s .
If a d e q u a t e steps are not being
taken by the C o n g r e s s to a c h i e v e the required fiscal r e s t r a i n t , I
intend
to
seek
from
the
Congress
a
temporary
grant
of
e x t r a o r d i n a r y b u d g e t restraint p o w e r s .

We
are not alone in facing recent rapid inflation at annual
rates nearing 20%.
Wholesale
prices
have
been
increasing
at
annual rates in e x c e s s of 25% in Italy, Great B r i t a i n , and J a p a n .
Even
in
Germany
increases
have
been
over
13%.
M a n y other
c o u n t r i e s are responding as we are, by reevaluating their b u d g e t s
and seeking r e d u c t i o n s .
There are
no
quick
or
easy
answers
to
this
worldwide
inflation.
It is d e e p - r o o t e d , the result of m a n y f o r c e s b u i l t up
over
the
past
decade
and
a
half.
No
single m e a s u r e —
by
itself —
will
stop
inflation.
My
five-point
program
to
strengthen
the
fight
against
inflation
has
as
an e s s e n t i a l
element the
spending
reductions
needed
for
a
balanced
1981
budget.
Those
who
say that we cannot s t o p i n f l a t i o n s i m p l y by
b a l a n c i n g the 1981 budget m i s s the p o i n t .
Balancing
the
budget
is
not
a
cure-all,
but it _is an essential element in the m o r e
comprehensive program.
I b e l i e v e that no overall
anti-inflation
program can work until the Federal G o v e r n m e n t h a s d e m o n s t r a t e d to
the
A m e r i c a n people that it will d i s c i p l i n e its own spending and
its own b o r r o w i n g —
not just for one year or two, but as a longterm p o l i c y .

JIMMY
March

31,

1980




CARTER

-5-

Part 1
THE C U R R E N T BUDGET

Budget

OUTLOOK

Totals

The revised e s t i m a t e s
in
this
estimates
and
recommendations
J a n u a r y . 1/
They r e f l e c t :

document
submitted

supersede
to
the

the
budget
Congress
in

budget r e d u c t i o n s and tax m e a s u r e s proposed as
the A d m i n i s t r a t i o n ' s a n t i - i n f l a t i o n program;
reestimates of receipts and outlays in light of
economic a s s u m p t i o n s and more recent d a t a ;

part

of

revised

policy c h a n g e s enacted by the C o n g r e s s
or
proposed
by
the President since the J a n u a r y budget was issued; and
technical

reestimates.

Table 1 c o m p a r e s the current
January figures.

e s t i m a t e s with

the

Administration's

Table 1 . — B U D G E T TOTALS
(in b i l l i o n s of d o l l a r s )

Receipts

Outlays

Surplus

or

Deficit

(-)

1979 Actual

465.9

493.7

-27.7

1980J a nEusatriym abudget
te:
Current

523.8
532.4

563. 6
568.9

-39.8
-36.5

1981 E s t i m a t e :
J a n u a r y budget
Current

600.0
628.0

615.8
611. 5

-15.8
16.5

1982 E s t i m a t e :
J a n u a r y budget
Current

691.1
724.8

686.3
683.3

4.8
41.5

1983 E s t i m a t e :
J a n u a r y budget
Current

798.8
837.8

774.3
759.0

24.5
78.9

1/

The C o n g r e s s i o n a l Budget
Act
of
1974
requires
that
the
President
submit
to
the
Congress
revisions
of the 1981
budget by April 10.
This d o c u m e n t m e e t s that r e q u i r e m e n t .




-6-

The
1980
deficit
is
now
estimated
to be $36.5 b i l l i o n , $3.2
billion b e l o w the J a n u a r y e s t i m a t e .
The
current
estimate
for
1981
is
for
a
surplus of $15.5 b i l l i o n , rather than the $ 1 5 . 8
billion d e f i c i t estimated in J a n u a r y .
The $ 3 . 2 b i l l i o n d e c r e a s e in the 1980 deficit is the
net
result
of
an
$8.0 b i l l i o n increase in estimated o u t l a y s , p a r t l y o f f s e t
by $2.6 b i l l i o n in
spending
reductions;
and
an
$8.6
billion
increase
in
estimated receipts, including $3.4 b i l l i o n from the
g a s o l i n e c o n s e r v a t i o n fee.
The e l i m i n a t i o n of the
of several f a c t o r s :

1981 deficit

since J a n u a r y

is

the

result

Revised economic c o n d i t i o n s and
technical
reestimates,
taken a l o n e , increase estimated o u t l a y s by $13.0 b i l l i o n
in
1981.
This r e s u l t s in a new March base e s t i m a t e of
$ 6 2 8 . 7 billion for 1981.
R e d u c t i o n s of $ 1 7 . 2 billion b e l o w a m o u n t s in
the
base
are
now
proposed,
resulting in a c u r r e n t
e s t i m a t e of $ 6 1 1 . 5 billion for 1981.
The revised economic o u t l o o k and
the
windfall
profit
tax
are
receipts
by
$12.0
billion.
e s t i m a t e of $ 6 1 2 . 0 b i l l i o n .

March
outlay

c o n g r e s s i o n a l action on
expected
to
increase
This
produces
a
base

Proposed
tax
changes
affecting
gasoline
and
w i t h h o l d i n g of taxes owed on interest and d i v i d e n d s
increase total receipts to $ 6 2 8 . 0 billion*

the
will

The
President
indicated
that
he
would
b a l a n c e the b u d g e t in
additional
tax
increases.
The
proposals
fiscal 1981 w i t h o u t
outlined
above
a c c o m p l i s h that.
With the proposed tax c h a n g e s ,
the budget will be in surplus by $16.5 b i l l i o n .
The s u r p l u s e s projected for
1982
and
1983
increase
to
$23.3
billion
and
$58.7
billion,
respectively,
assuming
the
base
receipt e s t i m a t e s .
The s u r p l u s e s increase to $ 4 1 . 5
billion
and
$78.9
billion
including
estimated
receipts
from
the
tax on
g a s o l i n e and diesel fuel and the w i t h h o l d i n g of t a x e s on interest
and dividend income.

Short-Range

Economic

Forecast

T a b l e 2 shows the current e c o n o m i c forecast
for
calendar
years
1980
and
1981
and c o m p a r e s it to the J a n u a r y f o r e c a s t .
Recent
data
indicate
that
the
inflationary
outlook
has
worsened
significantly
since the P r e s i d e n t ' s b u d g e t was p r e p a r e d .
During
the first two m o n t h s of this y e a r , p r o d u c e r prices
for
finished
goods
increased
at
an
annual rate of 20%, and consumer p r i c e s
increased at an 18% annual rate.
Accordingly,
the
forecast
of
inflation in c o n s u m e r prices has been revised upward by about two
percentage
points
during
1980,
with
much
of
this
increase
c o n c e n t r a t e d in the first half of the y e a r .
In
1981,
inflation



-7-

is
now
projected
to
be about 9%, a s i g n i f i c a n t reduction from
1980 but higher than the J a n u a r y f o r e c a s t .
In the a b s e n c e of the
budget r e s t r a i n t m e a s u r e s
proposed
by
the
Administration
and
discussed
in
m o r e detail in this d o c u m e n t , the upward revisions
in estimated inflation would have been g r e a t e r .
Interest
rates
have
also
been
revised
upward
s u b s t a n t i a l l y in line with the
higher p r o j e c t i o n of i n f l a t i o n .
The A d m i n i s t r a t i o n c o n t i n u e s to forecast a
recession
for
1980,
but
this
recession
is now expected to occur later in the y e a r .
As a r e s u l t , the rise in u n e m p l o y m e n t during 1980 is not expected
to occur as early as forecast in J a n u a r y .
By the end of calendar
year 1981, h o w e v e r , the level of u n e m p l o y m e n t and
real
GNP
are
about the same as forecast in J a n u a r y .




Table 2 • — S H O R T - R A N G E
(calendar years; dollar

ECONOMIC FORECAST
a m o u n t s in b i l l i o n s )

J a n u a r y Forecast
1981
1980
1979
Major e c o n o m i c i n d i c a t o r s :
G r o s s n a t i o n a l p r o d u c t , percent c h a n g e ,
fourth q u a r t e r over fourth q u a r t e r :
Current dollars
C o n s t a n t (1972) d o l l a r s . . . . .
G N P d e f l a t o r (percent c h a n g e , fourth
q u a r t e r over fourth quarter)
C o n s u m e r P r i c e Index (percent c h a n g e ,
fourth q u a r t e r over fourth quarter 1/.
U n e m p l o y m e n t rate (percent, fourth
quarter)
Annual economic a s s u m p t i o n s :
Gross national product:
Current dollars:
Amount
P e r c e n t c h a n g e , year over y e a r . . .
C o n s t a n t (1972) d o l l a r s :
Amount
P e r c e n t c h a n g e , year over y e a r . . .
Incomes:
Personal income
W a g e s and s a l a r i e s
Corporate profits
Pr ice l e v e l :
GNP deflator:
Level (1972=100), annual a v e r a g e .
P e r c e n t c h a n g e , year over y e a r . . .
C o n s u m e r Price Index 1/:
Level (1967=100), annual a v e r a g e .
P e r c e n t c h a n g e , year over y e a r . . .




C u r r e n t Forecast
Actual
1979
1980
1981

10.0
0.8

7.9
-1.0

11.7
2.8

10.0
1.0

10.0
-0.4

11.4
2.2

9.1

9.0

8.6

9.0

10.4

9.1

12.8

10.7

8.7

12.8

12.8

9.0

5.9

7.5

7.3

5.9

7.2

7.3

\

2,369
11.4

2 ,567
8.3

2 ,842
10.7

,369
11.4

2 ,621
10.6

2 ,885
10.1

1,431
2.3

1 ,423
-0.6

1 ,448
1.7

,432
2.3

1 ,442
0.8

1 ,449
0.4

1,923
1,227
238

2 ,109
1 , 342
228

2 , 314
1 ,478
242

,924
,228
237

2 ,131
1 ,353
242

2 ,340
1 ,493
241

165.5
8.9

180.4
8.9

196.3
8.8

165.5
8.8

181.7
9.8

199.2
9.6

217.6
11.4

243.4
11.8

265.8
9.2

217.7
11.4

247.9
13.9

271.5
9.5

Table

2.—SHORT-RANGE

ECONOMIC

FORECAST

(continued)

J a n u a r y Forecast
1979
1980
1981
U n e m p l o y m e n t rates:
T o t a l , annual average
I n s u r e d , annual average 2/
Federal pay raise, October (percent) 3 / • . . .
Interest rate, 91-day T r e a s u r y b i l l s
(percent) 5/

5.8
3.1
7.0
10.0

7.4
7.0
4.0
3.9
6 . 2 4/ 8 . 0
10.5

9.0

C u r r e n t Forecast
Actual
1979
1980
1981

5.8
3.1
7.0
10.0

6.7
7.3
3.7
4.0
6.2 4/ 8.5
13.1

9.5

1/ CPI for urban wage e a r n e r s and clerical w o r k e r s .
Two v e r s i o n s of the
CPI
are
now
published,
one
for
all
urban
consumers
and
one
for urban w a g e e a r n e r s and clerical
workers.
The index shown here is required by law to
be
used
in
calculating
automatic
c o s t - o f - l i v i n g increases for indexed Federal p r o g r a m s .
2/ T h i s indicator m e a s u r e s u n e m p l o y m e n t under State regular u n e m p l o y m e n t insurance as a
percentage
of
covered
e m p l o y m e n t under that p r o g r a m .
It d o e s not include recipients of
extended b e n e f i t s under that p r o g r a m .
2/ G e n e r a l schedule pay r a i s e s b e c o m e e f f e c t i v e in October
month
of
the fiscal year.
T h u s , the October 1980 pay raise
will be in effect during fiscal year 1981.
4./ T h i s
employees.

is the
projected
pay
increase
for
The pay raise for m i l i t a r y p e r s o n n e l

of each year
—
the
first
will set n e w pay s c a l e s that

white
collar
workers
and
is estimated to be 7 . 4 % .

wage

board

5/ A v e r a g e rate on new issues within p e r i o d .
These p r o j e c t i o n s a s s u m e , by
convention,
that
interest rates decline with the rate of i n f l a t i o n .
T h e y do not represent a forecast
of interest rates.




-10-

Budget

Receipts

Summary.—The
current
estimate
of receipts r e f l e c t s the e n e r g y
legislation
adopted
by
the
Congress;
the
revised
economic
forecast; and several policy c h a n g e s since the J a n u a r y b u d g e t was
i s s u e d , including the tax m e a s u r e s that were announced as part of
the
Administration's
anti-inf1 ation
program.
These
anti-inflation initiatives
are
excluded
from
the
March
base
estimate of r e c e i p t s .
M a r c h base e s t i m a t e . — T h e March base e s t i m a t e of 1980 receipts is
$529.0
billion,
$5.2
billion
above
the
January
estimate.
Comparable"' receipts in 1981 are now estimated at $ 6 1 2 . 0
billion,
an
increase
of $ 1 2 . 0 billion from the budget e s t i m a t e of $ 6 0 0 . 0
billion.
E s t i m a t e s of receipts in 1982 and 1983
are
above
the
budget
estimates
by
$15.5
billion
and
$18.8
billion,
respectively.
As shown in Table
3,
substitution
of
the
energy
legislation
adopted
by
the
Congress
for
the
Administration's proposals,
together with c h a n g e s in e n e r g y p r i c e s , increase receipts by $0.7
billion in 1981 and reduce receipts by $1.2 billion in 1980, $0.3
billion in 1982, and $0.8 billion in 1983.




-11-

T a b l e 3 . — C H A N G E IN B U D G E T R E C E I P T S
(in b i l l i o n s of d o l l a r s )

J a n u a r y budget estimate
E n e r g y l e g i s l a t i o n as adopted
by the C o n g r e s s :
Windfall profit tax 1/
Energy tax credits
Interest and dividend
exclusion
Other

1980

1981

523.8

600 .0

691 . 1

798 .8

-1.3
0.1

1 .0

1 .8
0 .1

0 .9
-0 . 1

-2 .3
0 .1

-1 .7
0 .2

-0 . 3
-0 . 2

-0 .8
-0 .2

*

-0 .3
*

1982

1983

S u b t o t a l , Energy
R e d u c t i o n in sugar import fees...
M o d i f i c a t i o n of cash m a n a g e m e n t
initiatives
Increase in passport and visa
fees
Revised economic a s s u m p t i o n s

-1.2
-0.1

6.5

0 .1
11 .6

0.1
15 .9

0. 1
19 .7

March base e s t i m a t e
W i t h h o l d i n g of taxes on
interest and dividend income....
G a s o l i n e c o n s e r v a t i o n fee/motor
fuels tax

529.0

512 .0

706 .6

817 .7

3.4

2. 5

2 .8

12 .6

15 .7

17 .4

Current

532. 4

628 .0

724 .8

837 .8

estimate.. . *

0 .7
-0 . 2
-0 . 2

3.4

*

*

1/ Includes the effect of c h a n g e s from the
Administration's
proposal and revised p r o j e c t i o n s of e n e r g y p r i c e s .
$50 million or l e s s .
*

Other
policy
changes
since
January
reduce
receipts
by $0.1
billion in 1980, $0.3 billion in 1981, and $0.1 billion
in
1982
and
1983.
These
policy
c h a n g e s include a m o d i f i c a t i o n of the
cash m a n a g e m e n t initiative to accelerate the payment
of
customs
duties;
a
proposed
increase
in
passport and visa fees; and a
reduction
in
sugar
import
fees,
which
was
accomplished
by
a d m i n i s t r a t i v e action earlier this y e a r .
R e e s t i m a t e s , reflecting
the
revised economic f o r e c a s t , increase receipts by $6.5 billion
in 1980 and $11.6 billion in 1981.
The
corresponding
increases
in
1982
and
1983
are
$15.9
billion
and
$19.7
billion,
respectively.
Current e s t i m a t e . — A s
President
announced
recei pts:

part of
his
anti-inflation
the
following
initiatives

program,
the
that
affect

on
imported
crude
A t e m p o r a r y fee of $4.62 per barrel
oil.
The
cost of this fee, w h i c h will be e f f e c t i v e as
of March 15, will be shifted e n t i r e l y to the
production



-12-

of
g a s o l i n e and is expected to increase g a s o l i n e p r i c e s
by about
10
cents
per
gallon
effective
May 15.
A
g a s o l i n e and diesel fuels tax is proposed to r e p l a c e the
fee later this y e a r .
A p r o p o s a l to withhold taxes on p a y m e n t s of
d i v i d e n d s to d o m e s t i c t a x p a y e r s .

interest

and

These n e w i n i t i a t i v e s increase receipts by $3.4 b i l l i o n in
1980,
$16.0
billion
in 1981, $18.2 billion in 1982, and $ 2 0 . 2 b i l l i o n
in 1983.
It should be emphasized that these
increases
are
not
proposed
as
a
means
of
achieving
a
balanced
budget.
The
P r e s i d e n t e x p e c t s to m e e t that goal through spending c u t s .

Budget A u t h o r i t y

and

Outlays

Summary.—The
changes
in
budget
authority
and
outlays
from
January
to
the
current
e s t i m a t e reflect two d i f f e r e n t sets of
changes:
r e e s t i m a t e s due to c h a n g e s in economic a s s u m p t i o n s
and
other
reasons,
and
planned
reductions
n e c e s s a r y to a c h i e v e a
budget balance.
Table 4 s u m m a r i z e s the c h a n g e s in o u t l a y s .
For
1981,
r e e s t i m a t e s increase o u t l a y s $ 1 3 . 0 billion to a M a r c h base
e s t i m a t e , excluding the e f f e c t s of planned r e d u c t i o n s , of
$628.7
billion.
Planned
reductions
in
outlays,
including
reduced
interest
costs,
are
$17.2
billion,
resulting
in
a
current
estimate
of
$611.5
billion
for
1981, a net r e d u c t i o n of $ 4 . 2
billion since the J a n u a r y e s t i m a t e .
For 1980, r e e s t i m a t e s have increased o u t l a y s $8.0
billion
since
January.
These
reestimates
are
partially
offset
by planned
r e d u c t i o n s of $2.6 b i l l i o n , for a c u r r e n t 1980 o u t l a y e s t i m a t e of
$568.9 billion.
The major r e e s t i m a t e s and planned r e d u c t i o n s are
described
below.
Additional
detail
by
function
appears
in
Part 2, and a detailed list of planned r e d u c t i o n s is in Part 4.




-13-

Table 4 . — S U M M A R Y OF OUTLAY R E E S T I M A T E S A N D P L A N N E D
(in b i l l i o n s of dollars)

REDUCTIONS

Estimate
1980
1981
J a n u a r y estimate
Reestimates:
D e p a r t m e n t of D e f e n s e - m i l i t a r y
Other a g e n c i e s :
Due to economic a s s u m p t i o n s
Other c h a n g e s
Subtotal
March base
Planned r e d u c t i o n s :
Programs
Net interest
Subtotal
Current

estimate...

563.6

615.8

4.0

5.7

0.7
3.3

5.5
1.8

8.0

13.0

571 . 5

628.7

-2.4
-0.2

-15.0
-2.2

-2.6

-17.2

568.9

611.5

C h a n g e s from J a n u a r y to the March base, 1980 and 1 9 8 1 . — T h e major
r e e s t i m a t e s since J a n u a r y , excluding the e f f e c t s
of
reductions,
are shown in Table 5.
The largest of these is for the D e p a r t m e n t
of
Defense-Military.
This
increase
reflects
higher
than
anticipated fuel and transportat ion costs
and
prices
of
other
purchases,
faster
than
anticipated
spending
in recent m o n t h s
under c o n t r a c t s p r e v i o u s l y let, and increased o p e r a t i o n s
in
the
Persian G u l f / I n d i a n Ocean a r e a .


http://fraser.stlouisfed.org/
316-812 0-80-3
Federal Reserve Bank of St. Louis

-14-

Table

5 . — R E E S T I M A T E S FROM J A N U A R Y TO THE M A R C H
1980 A N D 1981
(in b i l l i o n s of d o l l a r s )
1980 E s t i m a t e
Outlays
BA

January estimate
R e e s t i m a t e s and other c h a n g e s :
DOD-Military
Social s e c u r i t y
Unemployment compensation.
Net interest
Foreign military sales
trust fund
H i g h w a y program
Naval petroleum reserve
recei pts:
Reestimate
W i n d f a l l profit t a x . . . .
M e d i c a r e and medicaid
Multilateral banks
SBA d i s a s t e r l o a n s
E x p o r t - I m p o r t Bank
Federal Home Loan Bank
Board
Farm price s u p p o r t s
O f f s h o r e oil receipts
Other

*

$50 m i l l i o n or

Major

reestimates

1981 E s t i m a t e
BA
Outlays

654.0

563.6

696.1

615.8

3.4
1.2
-0.2
1.0

4.0

4.7
1.4
-0.2
3.1

5.7
1.5
-0.4
3.1

-1.0
1.0

1.0

1.5
1.0

-0.7
0.2
0.2
-0.6
0.4
0.4

-0.7
0.2

—

_

0.4
0.6
0. l'

*

0.4
0.3
*

0.3
0.7

0.3

0.1
0.8

0.2
0.5

0.6
0.4
0.2
1.3

0.5
1 .2

-0.6
0.5
1 .6

7.0

8 .0

13.5

13.0

661.0

571.5

709.6

628.7

Subtotal
March base

BASE,

less.

in n o n d e f e n s e

programs

include:

i n c r e a s e s in social s e c u r i t y
budget
authority
due
higher
than expected tax c o l l e c t i o n s and in o u t l a y s
to
cost-of-living
adjustments,
offset
in
part
r e e s t i m a t e s of o u t l a y s based on recent e x p e r i e n c e ;

—

to
due
by

d e c r e a s e s in u n e m p l o y m e n t c o m p e n s a t i o n due
p r e v i o u s l y projected u n e m p l o y m e n t ;

to lower

than

increases
in
net
p r e v i o u s l y expected

higher

than

interest
interest

because
rates;

of

an increase in the foreign
military
sales
trust
fund
obligations,
w h i c h equate to budget a u t h o r i t y , based on
actual rates during the first half of 1980;




-15-

an increase in 1980 outlay e s t i m a t e s for h i g h w a y s , which
requires
a
supplemental
appropriation
to
liquidate
obligations
that
are
being
realized by States faster
than p r e v i o u s l y expected;
a c o r r e c t e d , higher estimate for
1980
naval
petroleum
reserves
receipts
—
w h i c h reduce outlays —
partially
offset by a d e c l i n e in offsetting receipts
due
to
the
application
of
the
windfall
profit
tax
to
these
receipts.
This
offset
does
not
affect
the
budget
deficit,
since
it
is
also
recorded
as
a
budget
receipt; and
increases for m e d i c a r e and medicaid due
to
higher
tax
collections
resulting
from
inflation, which increases
m e d i c a r e budget a u t h o r i t y , and higher State e s t i m a t e s of
medicaid spending .
Other major c h a n g e s affect m u l t i l a t e r a l b a n k s , the
Export-Import
Bank,
the Federal Home Loan Bank Board, farm price s u p p o r t s , and
offshore oil r e c e i p t s .

Planned r e d u c t i o n s from the March base to the
current
estimate.
1980
and
1981 . — T h e c o n t i n u a t i o n of u n a c c e p t a b l y high inflation
has required a thorough review of spending in order
to
restrain
its
growth
and
to
achieve
a
budget
balance
in 1981.
This
requires
that
many
necessary
existing
programs
be
tightly
restrained,
and
that
proposals
for new p r o g r a m s be w i t h d r a w n .
The planned r e d u c t i o n s have been c a r e f u l l y reviewed
so
that
no
single area is forced to bear s u b s t a n t i a l l y m o r e or less than its
share of the b u r d e n .
V i r t u a l l y every Federal agency is a f f e c t e d .
Budget
restraint
and a b u d g e t b a l a n c e are essential elements of
the P r e s i d e n t ' s program
to
combat
the
current
high
rate
of
inflation.
The
planned r e d u c t i o n s , shown in T a b l e s 6 and 7 and
described on the following pages, are planned in
order
to
help
bring the budget into b a l a n c e .
Table
budget
March
energy
effect

6
shows
the
planned reductions for 1980.
They d e c r e a s e
a u t h o r i t y $5.2 billion and outlays $2.6 billion
from
the
base.
The
largest r e d u c t i o n s of new i n i t i a t i v e s are for
p r o g r a m s and economic d e v e l o p m e n t .
Much
of
the
outlay
of these r e d u c t i o n s o c c u r s in later y e a r s .




-16-

T a b l e 6 . — P L A N N E D R E D U C T I O N S FROM THE M A R C H BASE TO
C U R R E N T E S T I M A T E , 1980
(in b i l l i o n s of d o l l a r s )

THE

1980 E s t i m a t e
Budget
Authority
Outlays
January estimate
Reestimates

654.0
7.0

563.6
8.0

March base
Planned r e d u c t i o n s due to:
D e f e r r a l or reduction of n e w
initiatives:
E n e r g y initiative
Economic d e v e l o p m e n t
D e l e t e a n t i r e c e s s i o n fiscal
assistance
Aid to Pakistan
Other

661.0

571.5

-0.8
-0.4

-0.2
-0.1

-0.1
-0.1
-0.1

-0.1
-0.1
-0.1

-1.6

-0.6

-0.2

-0.2

-1.1
-0.4
-0.3
-0.3
-0.3
-*

-0.3
-*
-0.1
-*
-0.1
-0.4

-0.8

-0.2
-0.5

-3.2

-1.6

-5.0
-0.2

-2.4
-0.2

655.8

568.9

Subtotal
Shift from semi-annual to annual
indexing
Other c h a n g e s :
D e p a r t m e n t of D e f e n s e - m i l i t a r y
Education programs
Health and human s e r v i c e s p r o g r a m s . .
E x p o r t - I m p o r t Bank l o a n s
Land and water c o n s e r v a t i o n f u n d . . . .
D e p a r t m e n t of Labor
D e l a y oil p u r c h a s e s for the
strategic petroleum reserve
Other
Subtotal

Net
Current

*

S u b t o t a l , planned
reductions
interest

estimate

$50 m i l l i o n or

program

less.

A
proposal
to
shift
to
annual
indexing for Federal e m p l o y e e
r e t i r e m e n t , including m i l i t a r y , and for
food
stamps
and
child
nutrition
programs
—
rather
than
having
two
i n c r e a s e s per
year —
will result in s a v i n g s estimated at $ 0 . 2 b i l l i o n in
1980
outlays,
and
will make c o s t - o f - l i v i n g a d j u s t m e n t p r o c e d u r e s for
Federal p r o g r a m s m o r e uniform and e q u i t a b l e .




-17-

Other

changes

include:

reductions

in d e f e n s e

reductions
in
budget
education prog rams;

programs;
authority

reductions in
health
professions
d i s c r e t i o n a r y health p r o g r a m s ;

for

forward-funded

training

and

other

reductions in the public service e m p l o y m e n t program
phase out of welfare reform d e m o n s t r a t i o n projects;
a lower

level

of l o a n s for

the E x p o r t - I m p o r t

Bank;

and

and

reduced recreation g r a n t s and less Federal p u r c h a s e s
land from the land and water c o n s e r v a t i o n fund.

of

In a d d i t i o n to these program reductions, a lower deficit for 1980
than
is
projected
in
the
March
base
reduces
borrowing
requirements and therefore reduces net interest by $0.2 b i l l i o n .
Table
7
shows
the
planned
reductions
for
1981.
Program
reductions of $ 1 5 . 0 billion in 1981, and c o n s e q u e n t r e d u c t i o n s in
net
interest,
result
in
the current o u t l a y e s t i m a t e of $ 6 1 1 . 5
billion in 1981, $4.2 billion b e l o w the J a n u a r y e s t i m a t e .




-18-

T a b l e 7 . — P L A N N E D R E D U C T I O N S FROM THE M A R C H BASE TO
C U R R E N T E S T I M A T E , 1981
(in b i l l i o n s of d o l l a r s )

THE

1981 E s t i m a t e
Budget
Authority
Outlays
January estimate.
Reestimates

696. 1
13.5

615.8
13.0

March base
Planned r e d u c t i o n s due to:
Deferral or reduction of new
initiatives:
Energy initiative
Economic development
D e l a y child health a s s u r a n c e program
A n t i r e c e s s i o n fiscal a s s i s t a n c e
D e l a y w e l f a r e reform
Defer new water r e s o u r c e s s t a r t s . . . .
Other

709.6

628.7

-0.8
-0.4
-0.4
-1.0
-0.9
-0.6
-0.2

-1.1
-0.2
-0.4
-1.0
-0.9
-*
-0.4

Subtotal
Shift from semi-annual to annual
indexing
Other r e d u c t i o n s :
E l i m i n a t i o n of State portion of
g e n e r a l revenue sharing
Proposed local g o v e r n m e n t
transitional assistance program....
D e p a r t m e n t of D e f e n s e - m i l i t a r y
D e l a y oil p u r c h a s e s for s t r a t e g i c
petroleum reserve
E x p o r t - I m p o r t Bank loans
D e p a r t m e n t of Interior p r o g r a m s
D e p a r t m e n t of Labor p r o g r a m s
Transportation programs
Education programs
H e a l t h and human s e r v i c e s p r o g r a m s . .
Other

-4.2

-4.0

-1.4

-1.5

-2.3

-1.7

0.5
-1.5

0.5
-1.0

-0.5
-0.7
-1.5
-0.2
-0.6
-0.6
-3.0

-0.8
-0.3
-0.4
-1.0
-0.7
-0.6
-0.4
-3.1

-10.4

-9.5

-16.1
-2.2

-15.0
-2.2

691.3

611.5

Subtotal

Net
Current

*

S u b t o t a l , planned
reductions
interest

estimate

$50 m i l l i o n




or

less.

program

-19-

Among d e f e r r a l s or r e d u c t i o n s of new i n i t i a t i v e s is a d e c r e a s e in
outlays of $1.1 billion for the energy i n i t i a t i v e .
This decrease
includes a later e f f e c t i v e date for the
solar
and
conservation
bank,
deferrals
of
transportation
energy
initiatives,
and
reductions in the p r e v i o u s l y proposed
increases
for
low-income
energy a s s i s t a n c e p a y m e n t s .
The d e l e t i o n of a n t i r e c e s s i o n fiscal
assistance saves $1.0 b i l l i o n , and the delaying of v/elfare reform
saves $0.9 b i l l i o n .
The proposal to shift from semi-annual
1981 outlays $1.4 b i l l i o n .
Other major

program

reductions

to annual

indexing

reduces

include:

elimination
of
the
State
share
of
general
revenue
sharing;
the
local
g o v e r n m e n t transitional a s s i s t a n c e
program is proposed to offset these r e d u c t i o n s p a r t i a l l y
by assisting
those
local
governments
most
adversely
affected by c o n s e q u e n t reduced State aid;
program r e d u c t i o n s and
operating
efficiencies
D e p a r t m e n t of D e f e n s e - m i l i t a r y f u n c t i o n s ;
reductions
in
employment
phase-out of w e l f a r e reform
delays
in
the
purchase
petroleum reserve;

in

the

and
training
programs
demonstration;

and

of

oil

for

the

reductions
in
some
education
programs,
higher
education
student
assistance
and
e l e m e n t a r y and secondary e d u c a t i o n ; and

strategic

particularly
support for

reductions
in
health
and
human
services
programs,
including
delaying
the
start
of
the
child
health
assurance
program
and
other
medicare
and
medicaid
benefit
expansions,
cancelling
new
or
expanded
d i s c r e t i o n a r y health and
social
services
grants,
and
reducing v a r i o u s t r a i n i n g , research and d e v e l o p m e n t , and
evaluation activities.
Included
in
these
r e d u c t i o n s is a G o v e r n m e n t - w i d e reduction in
a g e n c y operating e x p e n s e s .
In addition to these planned
program
reductions,
the
budget
surplus
now estimated for 1981 r e d u c e s
Federal
borrowing
requirements
and
therefore
decreases
net
interest by $2.2 billion in 1981.

The C r e d i t

Budget

The
1981
budget
proposed,
for
the
first
time,
a system to
restrain the g r o w t h of Federal credit
activities.
This
system
provides,
where
appropriate,
for specific annual a p p r o p r i a t i o n
bill l i m i t a t i o n s on new o b l i g a t i o n s
for
direct
loans
and
new
commitments
for
loan
guarantees.
The
Administration
is n o w
proposing that the l i m i t a t i o n s amounts for
loan
guarantees
and




-20-

direct l o a n s be reduced and that their
major p r o g r a m s p r e v i o u s l y e x e m p t .

a p p l i c a t i o n be extended

to

R e e s t i m a t e s . — T o t a l r e e s t i m a t e s of d i r e c t
loan
obligations
and
loan
guarantee
commitments
in
1980
are
expected
to be $1.4
billion
and
$0.8
billion
in
1981.
Significant
reestimates
include:
a $0.4 billion increase
in
1980
and
a
$0.6
billion
increase
in
1981 of C o m m o d i t y Credit C o r p o r a t i o n price
support d i r e c t loan o b l i g a t i o n s ;
a $ 0 . 2 billion increase in
loan
for student a s s i s t a n c e in 1980;

guarantee

commitments

a $0.9 billion increase in d i r e c t loan o b l i g a t i o n s and a
$1.0 billion d e c r e a s e of loan g u a r a n t e e
commitments
in
the E x p o r t - I m p o r t Bank in 1980; and
a $0.6 billion increase
in
Insurance C o r p o r a t i o n d i r e c t

Federal
Savings
and
Loan
loan o b l i g a t i o n s in 1980.

Proposed
reductions.—Proposed
reductions
in total d i r e c t loan
o b l i g a t i o n s and loan g u a r a n t e e c o m m i t m e n t s
are
expected
to
be
$1.9
billion
in
1980
and
$4.3
b i l l i o n in 1981.
Major items
include:
r e d u c t i o n s of $0.3 billion
in
1981
A d m i n i s t r a t i o n water and sewer d i r e c t

for
loan

Farmers
Home
obligations;

reductions
of
$0.5
billion
in
1981
in
business
development
and
medium-income
housing
loan g u a r a n t e e
c o m m i t m e n t s by the F a r m e r s Home A d m i n i s t r a t i o n ;
r e d u c t i o n s of $ 0 . 5 billion in 1980 and $0.8
1981
in economic d e v e l o p m e n t loan g u a r a n t e e
in the Economic D e v e l o p m e n t A d m i n i s t r a t i o n ;

billion
in
commitments

r e d u c t i o n s of $0.3 billion in 1981 in shipbuilding
loan
g u a r a n t e e c o m m i t m e n t s in the M a r i t i m e A d m i n i s t r a t i o n ;
reductions
of
$0.9
billion
in
1980
direct
loan
obligations
and
$1.3
billion
in
1981 loan g u a r a n t e e
c o m m i t m e n t s for s h o r t - and m e d i u m - t e r m export s u p p o r t by
the E x p o r t - I m p o r t Bank; and
reductions
of
$0.5
billion
in
1981
guarantee
commitments
in
the
Administration.

small
Small

business
Business

In the 1981 budget there were a number
of
credit
programs
for
which
specific
limitations
in
appropriation
bills
were
not
proposed.
Among them were the basic insuring a c t i v i t i e s
of
the
Federal
Housing
Administration
and
the
Government
National
Mortgage
Association's
mortgage-backed
securities.
The




-21-

Administration
will
now propose l i m i t a t i o n s a p p l i c a b l e to these
programs in the a m o u n t s estimated in the J a n u a r y b u d g e t in
order
to ensure a p p r o p r i a t e oversight over the g r o w t h of these programs
in
future
years.
No
new
reductions
in
these
p r o g r a m s are
proposed b e c a u s e of c o n d i t i o n s in the housing i n d u s t r y .
However,
the amounts for new g u a r a n t e e c o m m i t m e n t s will now be l i m i t a t i o n s
rather than e s t i m a t e s .
This action will increase the
amount
of
loan
guarantee
commitments
subject
to
appropriation
bill
l i m i t a t i o n s from $29 billion to $63 b i l l i o n , or from 38% of total
c o m m i t m e n t s to 82%.


http://fraser.stlouisfed.org/
316-812 0-80-4
Federal Reserve Bank of St. Louis

-22-

T a b l e 8 . — C H A N G E IN T H E C R E D I T B U D G E T T O T A L S ,
(in b i l l i o n s of d o l l a r s )

January budget totals
Reestimates:
N e w d i r e c t loan o b l i g a t i o n s :
On-budget:
C o m m o d i t y Credit C o r p o r a t i o n price
support
E x p o r t - I m p o r t Bank
Federal S a v i n g s and Loan Insurance
Corporation
Other
Off-budget:
Federal Financing Bank
N e w loan g u a r a n t e e c o m m i t m e n t s :
Education:
student a s s i s t a n c e
E x p o r t - I m p o r t Bank
Other
G u a r a n t e e d l o a n s held as d i r e c t l o a n s b y
Federal Financing Bank
Subtotal,

Reestimates

Current

*

Planned

totals

$50 m i l l i o n or




less.

reductions

1980

1981

134.9

142.1

0.4
0.9

0.6

0.6
0.2

*

-0.5

0.6

0.2
-1.0
0.1

0.2

0.5

-0.6

1.4

0.8

the

Planned r e d u c t i o n s :
New d i r e c t loan o b l i g a t i o n s :
On-budget:
F a r m e r s Home A d m i n i s t r a t i o n :
water
and sewer loans
E x p o r t - I m p o r t Bank
Other
N e w loan g u a r a n t e e c o m m i t m e n t s :
F a r m e r s Home A d m i n i s t r a t i o n :
business
d e v e l o p m e n t and income housing s u p p o r t . .
Economic Development Administration:
development assistance
Maritime Administration:
shipbuilding
support
E x p o r t - I m p o r t Bank:
s h o r t - and
m e d i u m - t e r m export a s s i s t a n c e
Small B u s i n e s s A d m i n i s t r a t i o n :
business
d e v e l o p m e n t and surety bond g u a r a n t e e s . .
Other
Subtotal,

1980-1981

-0.3
-0.9
-0.4

-0.3

-0.5
-0.5

-0.8
-0.3
-1.3

-0.1

-0.5
-0.3

-1.9

-4.3

134.4

138.6

-23-

Off-Budget

Federal

Entities

Since the J a n u a r y b u d g e t , o u t l a y e s t i m a t e s have been changed
for
the
off-budget
Federal
entities.
Outlays
of
the
Federal
Financing Bank (FFB) decline by $1.7 billion
in
1980,
rise
by
$0.6
billion
in 1981 and by $1.3 billion in 1982, and fall $0.4
billion in 1983.
C h a n g e s in FFB o u t l a y s are due to c h a n g e s in
a
wide number of p r o g r a m s that are authorized to use its f i n a n c i n g .
In
1980, s i g n i f i c a n t c h a n g e s include a $0.9 billion reduction in
acquisitions
of
Rural
Electrification
Administration
(REA)
originations,
and
a
$0.3
billion
d e c r e a s e in a c q u i s i t i o n s of
Tennessee V a l l e y A u t h o r i t y e n e r g y c o n s e r v a t i o n o r i g i n a t i o n s .
In
1981,
significant
increases
include a $ 0 . 4 billion increase in
a c q u i s i t i o n s of REA o r i g i n a t i o n s .
The reduction of the o n - b u d g e t
p a y m e n t s to the Postal Service is o f f s e t by planned reductions in
Postal Service o p e r a t i o n s , leaving the o f f - b u d g e t o u t l a y s of
the
Postal Service u n c h a n g e d .

Table 9 . — C H A N G E

IN OUTLAYS OF O F F - B U D G E T F E D E R A L
(in b i l l i o n s of d o l l a r s )
1980

January estimate
Changes:
Federal Financing
Current

Bank

estimate

Multi-Year

Planning

ENTITIES

1981

1982

1983

18.1

15.1

12.9

0.6

1 .3

-0.4

18.7

16.3

12.5

Estimates

Long-range
economic a s s u m p t i o n s . — I n contrast to the s h o r t - r a n g e
economic forecast, the l o n g e r - r a n g e a s s u m p t i o n s for 1982 and 1983
shown
in
Table 10
are
not
forecasts
of
probable
economic
conditions.
Instead,
they are p r o j e c t i o n s that a s s u m e p r o g r e s s
in moving toward the g o a l s of a more fully e m p l o y e d
economy
and
greater
price
level
stability.
These
assumptions
have
not
changed g r e a t l y since J a n u a r y .




Table 1 0 . — L O N G - R A N G E ECONOMIC
(calendar years; dollar a m o u n t s

ASSUMPTIONS
in b i l l i o n s )

Major e c o n o m i c i n d i c a t o r s :
G r o s s national p r o d u c t , percent c h a n g e , f o u r t h quarter
over fourth q u a r t e r :
Current dollars
C o n s t a n t (1972) d o l l a r s
G N P d e f l a t o r (percent c h a n g e , fourth q u a r t e r over
fourth q u a r t e r )
C o n s u m e r Price Index (percent c h a n g e , fourth quarter
over fourth quarter) 1/
U n e m p l o y m e n t rate (percent, fourth q u a r t e r )
Annual e c o n o m i c a s s u m p t i o n s :
Gross national product:
Current dollars:
Amount
P e r c e n t c h a n g e , year over year
C o n s t a n t (1972) d o l l a r s :
Amount
P e r c e n t c h a n g e , year over year
Incomes:
Personal income
W a g e s and s a l a r i e s
Corporate profits
Price level:
GNP deflator:
Level (1972=100), annual average
P e r c e n t c h a n g e , year over year
C o n s u m e r Price Index 1/:
Level (1967=100), annual average
P e r c e n t c h a n g e , year over year




January
Assumptions
1982
1983

Current
Assumptions
1982
1983

13.3
5.0

12.6
5.0

13.6
5.0

12.8
5.0

7.9

7.2

8.2

7.4

7.9
6.5

7.2
5.6

8.2
6.5

7.4
5.6

,206
12.8

3 ,619
12.9

3 ,267
13.2

3 ,695
13.1

,510
4.3

1 ,586
5.0

1 , 512
4.4

1 ,589
5.0

,591
,663
277

2 ,914
1 ,874
324

2 ,628
1 ,688
283

2 ,962
1 ,905
331

212. 3
8.2

228.1
7.4

216.0
8.5

232.6
7.7

287.4
8.2

308.8
7.4

294.7
8.6

317.3
7.7

Table

10•--LONG-RANGE

ECONOMIC

ASSUMPTIONS

(continued)
January
Assumptions
1982
1983

U n e m p l o y m e n t rates:
T o t a l , annual average
I n s u r e d , annual average 2/
Federal pay raise, October (percent) 3/
Interest rate, 91-day T r e a s u r y b i l l s (percent)

4/

5. 9
3. 0
7. 5
7. 7

Current
Assumptions
1982
1983

6.8
3.5
8.4
8.7

5.9
2.9
7.7
7.9

1/ CPI for urban wage e a r n e r s and clerical w o r k e r s .
Two v e r s i o n s of the
CPI
are
now
published,
one
for
all
urban
consumers
and
one
for urban wage e a r n e r s and clerical
workers.
The index shown here is required by law to
be
used
in
calculating
automatic
c o s t - o f - l i v i n g increases for indexed Federal p r o g r a m s .
2/ T h i s indicator m e a s u r e s u n e m p l o y m e n t under State regular u n e m p l o y m e n t
It d o e s not
include
p e r c e n t a g e of covered e m p l o y m e n t under that p r o g r a m .
extended b e n e f i t s under that p r o g r a m .

insurance as a
recipients
of

3/ G e n e r a l schedule pay raises b e c o m e e f f e c t i v e in October of each year
—
the
first
month
of
the fiscal year.
T h u s , the October 1982 p a y raise will set n e w pay scales that
will be in effect during fiscal year 1983.
j4/ A v e r a g e rate on new issues within p e r i o d .
These p r o j e c t i o n s a s s u m e , by
convention,
that
interest rates decline with the rate of i n f l a t i o n .
They do not r e p r e s e n t a forecast
of interest r a t e s .




-26-

Revised o u t l a y e s t i m a t e s for 1982 and 1983 . — O u t l a y e s t i m a t e s for
1982 and 1983 h a v e been revised downward
since
January.
These
r e v i s i o n s r e f l e c t the net impact of revised economic a s s u m p t i o n s ,
technical
reestimates,
and
the
longer-range
effects
of
c o n g r e s s i o n a l action and the budget r e d u c t i o n p r o p o s a l s .
On n e t ,
e s t i m a t e d o u t l a y s for 1982 and 1983 h a v e
been
reduced
by
$3.0
billion
and
$15.4
b i l l i o n , r e s p e c t i v e l y , to $ 5 8 3 . 3 b i l l i o n and
$759.0 billion.
Revised economic a s s u m p t i o n s for
inflation
and
interest
rates
during
1980-1983
have
increased 1 9 8 2 - 1 9 8 3 o u t l a y e s t i m a t e s for
net i n t e r e s t , d e f e n s e , and
indexed
benefit
programs,
such
as
social
security.
Other
increases
in
1982-83 o u t l a y s are due
l a r g e l y to technical r e e s t i m a t e s .
The i n c r e a s e s in estimated o u t l a y s for 1 9 8 2 - 1 9 8 3
resulting
from
revised
economic a s s u m p t i o n s and other r e e s t i m a t e s are m o r e than
o f f s e t by the l o n g e r - r a n g e e f f e c t s of the 1980
and
1981
budget
reductions.
Program areas having s i g n i f i c a n t outyear r e d u c t i o n s
include g e n e r a l revenue s h a r i n g ,
training
and
employment,
and
countercyclical
and
targeted
fiscal
assistance.
The
budget
r e d u c t i o n s also account for s u b s t a n t i a l s a v i n g s in interest c o s t s
due to reduced T r e a s u r y b o r r o w i n g r e q u i r e m e n t s during
1980-1983.
The
substantial
reduction
in
the
allowance
for the n a t i o n a l
health plan reflects a s i x - m o n t h d e l a y in the
proposed
start-up
date
of the p r o g r a m .
The revised cost e s t i m a t e s a s s u m e that the
plan is f u l l y implemented on the new e f f e c t i v e d a t e .




Table

11.--MAJOR C H A N G E S IN E S T I M A T E D O U T L A Y S FOR
(in b i l l i o n s of d o l l a r s )

J a n u a r y o u t l a y estimate
Major changes:
D e p a r t m e n t of D e f e n s e - M i l i t a r y
E x p o r t - I m p o r t Bank
Naval petroleum reserve (offsetting receipts)
Energy security initiative.
R e c r e a t i o n a l resources
Postal Service
Federal-aid highways
Economic d e v e l o p m e n t a s s i s t a n c e
E l e m e n t a r y , s e c o n d a r y , and v o c a t i o n a l e d u c a t i o n
Training and employment p r o g r a m s
Medicare
Other health programs
Social security and railroad r e t i r e m e n t
Federal employee retirement and d i s a b i l i t y
Food stamps
Veterans benefits
C r i m i n a l justice a s s i s t a n c e
G e n e r a l revenue sharing
C o u n t e r c y c l i c a l and targeted fiscal a s s i s t a n c e
Net interest
A l l o w a n c e for national health plan
All other c h a n g e s (net)
Total
Current outlay




changes

estimate

1982 A N D

1983

1982

1983

686.3

774.3

3.5
0.5
0.6
-0.3
-0.4
-0.6
-0.4
-0.4
-0.4
-0.8
0.4
-0.7
3.0
-0.2
-0.3
-0.2
-0.3
-2.3
-1.0
-2.4
- 0 .3

4.0
-0.2
0.6
-0.3
-0.4
-0.6
0.2
-0.3
-0.4
-0.7
0.6
-0.5
2.7
-0.2
-0.3
-0.3
-0.3
-2.3
-0.5
-5.0
-11.2
-0 .2

- 3 .0

- 1 5 .4

683.3

759.0

^
^




-29-

Part

2

BUDGET A U T H O R I T Y A N D OUTLAYS BY F U N C T I O N ,

1979-1981

The budget
resources
devoted
to
meeting
national
needs
are
classified
by
budget
functions
so
that
budget a u t h o r i t y and
outlays can be grouped together according
to
purpose.
To
the
extent
feasible,
these
groupings
are
made
without regard to
agency or other o r g a n i z a t i o n a l
distinctions.
These
categories
are used by the C o n g r e s s in d e v e l o p i n g the c o n c u r r e n t r e s o l u t i o n s
on
the
budget.
This part c o n t a i n s s e p a r a t e s e c t i o n s on each of
the budget f u n c t i o n s .


316-812 0-80-5


-30-

050:

NATIONAL

DEFENSE
($
Actual
1979

Budget

billions)
Estimate
1980
1981

Authority

January estimate
Changes:
R e e s t i m a t e s and o t h e r :
D e p a r t m e n t of D e f e n s e
Other
Planned reductions:
D e p a r t m e n t of D e f e n s e :
M i l i t a r y retired pay
P r o g r a m r e d u c t i o n s and
operating efficiencies
Other

127.8

141.6

161.8

3.4
0.1

4.7
*

-0.1

-0.4

-1.1
-*

-1.5
^

Current

127.8

144. 0

164 .5

January estimate
Changes:
R e e s t i m a t e s and o t h e r :
D e p a r t m e n t of D e f e n s e
Other
Planned reductions:
D e p a r t m e n t of D e f e n s e :
M i l i t a r y r e t i r e d pay
P r o g r a m r e d u c t i o n s and
operating efficiencies
Other

117.7

130. 4

146.2

4.0
0.1

5.7
*

-0.1

-0.4

-0.3
-*

-1.0
-*

Current

117.7

134.0

150.5

estimate

Outlays

*

estimate

$50 m i l l i o n

or

less.

O u t l a y s e s t i m a t e d for the n a t i o n a l d e f e n s e f u n c t i o n for 1981 h a v e
i n c r e a s e d b y $ 4 . 3 b i l l i o n from the J a n u a r y b u d g e t .
This
is
due
to
reestimates
and
program
increases
totalling $5.7 billion,
partly offset by planned reductions totalling $1.4 b i l l i o n .

Department

of

Defense-Military

Reestimates.—The
current
estimates
for
Department
of
Defense-military
functions
h a v e b e e n c h a n g e d to r e f l e c t p r o g r a m
a d d i t i o n s for i n c r e a s e d o p e r a t i o n s
in
the
Persian
Gulf/Indian
Ocean
area,
h i g h e r fuel and t r a n s p o r t a t i o n c o s t s , and i n c r e a s e d



-31-

prices for other p u r c h a s e s .
In a d d i t i o n , o u t l a y
estimates
have
been
revised
to
reflect
higher
than
anticipated spending in
recent m o n t h s under c o n t r a c t s p r e v i o u s l y m a d e .
Planned r e d u c t i o n s . — T h e s e increases are partly offset by s a v i n g s
from a proposal to shift from twice-a-year to
once-a-year
costof-living a d j u s t m e n t s for m i l i t a r y retired pay b e n e f i t s , and from
program reductions and operating e f f i c i e n c i e s .
After
these
revisions,
the
budget
continues
to
meet
the
P r e s i d e n t ' s c o m m i t m e n t to sustain real
growth
in
defense.
On
net,
Department
of
D e f e n s e - m i l i t a r y o u t l a y s , at $131.0 billion
for 1980, are estimated
to
be
$3.6
billion
higher
than
the
January
estimate
of
$127.4
b i l l i o n ; and the 1981 e s t i m a t e , at
$147.0 b i l l i o n , is $4.3 billion higher than the J a n u a r y
estimate
of $ 1 4 2 . 7 b i l l i o n .

Other N a t i o n a l

Defense

Reestimates.—Estimates
for
sales
from
the
General
Services
A d m i n i s t r a t i o n ' s s t o c k p i l e of strategic
and
critical
materials
have
been
revised
to
reflect
recent
congressional
action.
A m o u n t s for the S e l e c t i v e Service System have been increased
due
to the proposed reinstatement of draft r e g i s t r a t i o n .
Planned r e d u c t i o n s . — G S A s t o c k p i l e p u r c h a s e s have been d e c r e a s e d .
Estimates
for
the
atomic
energy
defense
activities
of
the
D e p a r t m e n t of
Energy
have
also
been
reduced
by
cost-saving
proposals.




-32-

150:

INTERNATIONAL

AFFAIRS
($ b i l l i o n s )
Actual
Estimate
1979
1980
1981

Budget

Authority

January estimate
Changes:
R e e s t i m a t e s and o t h e r :
M i l i t a r y s a l e s trust fund
E x p o r t - I m p o r t Bank
Multilateral development banks....
P . L . 480 —
Food aid
Other
Planned reductions:
E x p o r t - I m p o r t Bank
Aid to P a k i s t a n
O t h e r (mainly f o r e i g n aid)

8.7

Current

estimate

13.0

16.9

1.0
0.3
-0.6
0.1
-0.1

1.5
0.3
0.1
0.1
0.1

-0.3
-0.1
-*

-0.5
-0.2

8.7

13.4

18.2

6.1

10.4

9.6

0.7
0.1
-*

0.8
0.1
0.1

-*
-0.1
-*

-0.3

11.1

10.1

Outlays
January estimate
Changes:
R e e s t i m a t e s and o t h e r :
E x p o r t - I m p o r t Bank
P . L . 480 —
Food aid
Other
Planned reductions:
E x p o r t - I m p o r t Bank
Aid to P a k i s t a n
Other (mainly foreign
Current

*

estimate

$50 million

or

aid)
6.1

-0.2

less.

The c u r r e n t e s t i m a t e s for i n t e r n a t i o n a l a f f a i r s r e f l e c t i n c r e a s e s
a b o v e the J a n u a r y b u d g e t due to a
variety
of
reestimates,
the
congressional
conference
agreement
on
the
1980
foreign
aid
appropriations,
and
Administration
requests.
The
planned
reductions
do
not
fully offset these increases.
These changes
h a v e i n c r e a s e d b u d g e t a u t h o r i t y and o u t l a y s
for
both
1980
and
1981 from the l e v e l s in the J a n u a r y b u d g e t .




-33-

Reestimates.—Major

r e e s t i m a t e s are

in the

following

areas:

A
reestimate
of
obligations
has
increased
budget
authority
for
the
military
sales
trust fund by $1.0
billion in 1980 and $ 1 . 5 billion in 1981.
Budget a u t h o r i t y and o u t l a y s of the
Export-Import
Bank
have
been
revised
upwards
by
$0.3
billion and $0.7
billion for 1980, and by $0.3 and $0.8 billion for 1981.
These i n c r e a s e s are due to c o n g r e s s i o n a l action
on
the
1980
foreign
aid
appropriation
and
reestimates
of
o u t l a y s resulting
from
a
shift
in
the
Bank's
loan
program from s l o w - s p e n d i n g to faster-spending p r o j e c t s .
Budget a u t h o r i t y in 1980
for
multilateral
development
banks
is
$0.6
billion
lower than the J a n u a r y request
because of c o n g r e s s i o n a l action on the 1980 f o r e i g n
aid
appropriation.
Smaller
increases
in budget a u t h o r i t y
are proposed for 1981 to offset
this
action.
Outlays
for
payments
to
the
World Bank are being deferred to
later y e a r s .
Budget a u t h o r i t y and outlays for P.L. 480 (food aid) are
requests
for
1980
and
$0.1 b i l l i o n a b o v e the J a n u a r y
1981
due
to
requests
for supplemental a p p r o p r i a t i o n s
that were transmitted to C o n g r e s s in F e b r u a r y .
Planned

reductions.—The

other

planned

reductions

include:

reducing loan a u t h o r i z a t i o n s for the E x p o r t - I m p o r t
Bank
for 1980 w h i c h l o w e r s o u t l a y s by $45 m i l l i o n in 1980 and
$270 m i l l i o n in 1981;
w i t h d r a w i n g the 1980 s u p p l e m e n t a l
Pakistan
($0.1
billion
in
outlays); and

request
for
aid
budget
authority

reducing 1981 budget a u t h o r i t y
and
outlays
foreign aid p r o g r a m s by $0.1 b i l l i o n .




for

to
and

other

-34-

250:

GENERAL SCIENCE,

SPACE, AND

TECHNOLOGY

($
Actual
1979
Budget

Authority

January estimate
Changes:
Reestimates
Planned r e d u c t i o n s :
NASA
N a t i o n a l Science F o u n d a t i o n
other
Current

bill ions)
Estimate
1980
1981

5. A

6.2

6.9

,
-0.2
and

estimate

-*

-0.1

5.4

6.2

6.6

5.0

5.9

6.4

-*

-0.2

-*

-0.1

5. 9

6.2

Outlays
January estimate
Changes:
Reestimates
Planned r e d u c t i o n s :
NASA
•
N a t i o n a l Science F o u n d a t i o n
other
Current

*

estimate

$50 m i l l i o n

or

and

5.0

less.

Budget
authority
and
outlays
for
general s c i e n c e , s p a c e , and
t e c h n o l o g y for 1981 are lower than estimated in
January
because
of planned r e d u c t i o n s .
Planned r e d u c t i o n s . — S m a l l
reductions
in
budget
a u t h o r i t y and
o u t l a y s since the J a n u a r y b u d g e t are planned in 1980, with larger
r e d u c t i o n s planned in
1981.
The
revised
request
reduces
or
delays
a
n u m b e r of NASA p r o j e c t s , including e x p e r i m e n t s planned
for Spacelab and the international solar
polar
mission.
There
are
also
r e d u c t i o n s recommended for National Science F o u n d a t i o n
e d u c a t i o n and research p r o g r a m s .




-35-

270:

ENERGY
($ b i l l i o n s )
Actual
Estimate
1979
1980
1981

Budget

Authority

January estimate
Changes:
Reestimates:
Petroleum reserve receipts:
Reestimates
W i n d f a l l p r o f i t tax
Economic Regulatory Administration
Planned reductions:
Energy initiatives
Uranium enrichment
Other

7.4

41.5

7.4

-0.7
0.2
0.1

0.4

-0.2
-*
-*

-0.6
-0.2
-0.2

Current

7. 4

40.7

6.9

January estimate
Changes:
Reestimates:
Petroleum reserve receipts:
Reestimates
W i n d f a l l p r o f i t tax
Economic Regulatory Administration
Strategic petroleum reserve
Planned reductions:
Strategic petroleum reserve
Energy initiatives
Uranium enrichment
Other

6.9

7.8

8.1

Current

6.9

estimate

Outlays

*

estimate

$50 million

or

-0.7
0.2
-*

0.4
0.1
0.1

-0.2
-0.1
-*
-*

-0.8
-0.6
-0.2
-0.2

6.8

6.9

less.

B u d g e t a u t h o r i t y and o u t l a y s
1981 due to a c o m b i n a t i o n of

for e n e r g y d e c l i n e in both 1980
and
r e e s t i m a t e s and planned r e d u c t i o n s .

Reestimates.—Estimated
budget
authority
d e c l i n e s in b o t h 1980
and 1981 as c o m p a r e d to the J a n u a r y e s t i m a t e .
The a p p l i c a t i o n of
the w i n d f a l l p r o f i t tax to
petroleum
reserve
receipts
reduces
offsetting
receipts
b y $210 m i l l i o n in 1980 and $444 m i l l i o n in
1981.
O f f s e t t i n g r e c e i p t s h a v e b e e n a d j u s t e d for 1980 to c o r r e c t
an a c c o u n t i n g error in the J a n u a r y b u d g e t .
I n c r e a s e d oil
prices
raise
the
estimated
cost
of
oil
p u r c h a s e s for the s t r a t e g i c



-36-

petroleum reserve by $66 m i l l i o n in 1981.
The e s t i m a t e s
include
a s u p p l e m e n t a l request for the Economic R e g u l a t o r y A d m i n i s t r a t i o n
for the s t a n d b y g a s o l i n e rationing plan c u r r e n t l y under r e v i e w by
the A d m i n i s t r a t i o n .
Planned r e d u c t i o n s . — E s t i m a t e s
in
the revised budget n o w a s s u m e
that oil p u r c h a s e s for the strategic petroleum
reserve
will
be
until
June
of
1981,
reducing estimated o u t l a y s $230
deferred
m i l l i o n in 1980 and $850 m i l l i o n in 1981.
Existing
balances
of
budget
authority
are
a d e q u a t e for future oil p u r c h a s e s for the
reserve.
Budget a u t h o r i t y and outlays for the e n e r g y i n i t i a t i v e s announced
by the P r e s i d e n t
last
April
and
July
have
been
reduced
or
deferred,
with
resulting
reductions
of $237 million in b u d g e t
a u t h o r i t y and of $130
million
in
outlays
in
1980,
and
$583
million
in budget a u t h o r i t y and $568 m i l l i o n in o u t l a y s in 1981.
Budget
authority
for
other
energy
research,
development,
demonstration
and
regulation
programs
has been reduced by $51
m i l l i o n in 1980 and $195 m i l l i o n in 1981, w h i l e o u t l a y s
for
the
same
programs
have been reduced by $32 m i l l i o n in 1980 and $ 2 4 7
million
in
1981.
Planned
reductions
in
uranium
enrichment
activities
reduce
budget
authority
and
o u t l a y s by r e l a t i v e l y
small a m o u n t s in 1980 and by $243 m i l l i o n in budget a u t h o r i t y and
$166 m i l l i o n in outlays
in
1981
as
compared
to
the
January
budget.




-37-

300:

NATURAL RESOURCES

AND

ENVIRONMENT
($
Actual
1979

Budget

Authority

January estimate
Changes:
Reestimates:
Offsetting receipts
Planned reductions:
Recreational resources
Agriculture Department
C o r p s of E n g i n e e r s
Water Resources Council
Current

billions)
Estimate
1980
1981

13.2

12.7

13.3

-0.1
-0.4
-*
and

-*

-0.5
-0.1
-0.2
-*

13.2

12.2

12.5

12.1

12.8

12.8

0.4
-0.1

0.3

-*
-0.1
-*
-*

-0.1
-0.3
-0.1
-0.2
-*

]2.8

12.5

other.

estimate

Outlays
January estimate
Changes:
Reestimates:
EPA c o n s t r u c t i o n g r a n t s
Offsetting receipts
Planned reductions:
EPA c o n s t r u c t i o n g r a n t s
Recreational resources
Agriculture Department
C o r p s of E n g i n e e r s
Water Resources Council
Current

*

estimate

$50 m i l l i o n

or

and

other.
12.1

less.

C u r r e n t t o t a l s in 1981 are lower for b o t h
budget
authority
outlays
than
the
January
totals.
These
c h a n g e s are the
e f f e c t of r e e s t i m a t e s and p l a n n e d r e d u c t i o n s .

and
net

Reestimates.—Outlays
in
1980
and
1981
for
Environmental
P r o t e c t i o n A g e n c y (EPA) s e w a g e t r e a t m e n t c o n s t r u c t i o n g r a n t s h a v e
been
reestimated
upward
by
$0.3 b i l l i o n b e c a u s e p r e v i o u s year
obligations
are
being
spent
faster
than
anticipated.
This
increase
is
partially
offset
in
1980
by
reestimates
for
o f f s e t t i n g r e c e i p t s for the A g r i c u l t u r e D e p a r t m e n t .


316-812 0 - 8 0 - 6


-38-

Planned

reductions.—Planned

reductions

include:

the d e f e r r a l of $3.6 billion
in
EPA
sewage
construction
grants
beginning in 1980, w h i c h
1981 o u t l a y s by $0.1 b i l l i o n ;

treatment
decreases

in r e c r e a t i o n a l r e s o u r c e s , the
reduction
of
purchases
from
the
land
and
water
conservation
fund,
the
e l i m i n a t i o n of funding for n e w urban
park
grants,
the
r e d u c t i o n of National Park Service and Fish and W i l d l i f e
Service
construction,
and
other
reductions,
which
d e c r e a s e budget a u t h o r i t y by $0.4 and
$0.5
billion
in
1980
and
1981
and d e c r e a s e o u t l a y s by $0.3 billion in
1981;
the d e l a y of c o n s t r u c t i o n
projects
and
reductions
in
conservation
and
other
programs
in
the
Agriculture
d e p a r t m e n t , w h i c h d e c r e a s e budget a u t h o r i t y and
outlays
by $0.1 billion in 1981; and
p l a n n i n g , c o n s t r u c t i o n , and operating cost r e d u c t i o n s in
reduce
budget
authority
the C o r p s of E n g i n e e r s , w h i c h
and o u t l a y s by $0.2 billion in 1981.
Recommendations
for
new
water
resource
construction
starts,
originally
budgeted
for
1981
contingent
on
enactment
of
l e g i s l a t i o n authorizing independent review b y the Water R e s o u r c e s
Council,
will
be
postponed until 1982.
If the C o n g r e s s should
enact l e g i s l a t i o n permitting an i n d e p e n d e n t review of
new
water
resource s t a r t s , the A d m i n i s t r a t i o n will propose new c o n s t r u c t i o n
starts.
Budget a u t h o r i t y for the c o n t i n g e n c y a l l o w a n c e (shown in
the
a l l o w a n c e function) has been reduced by $0.6 billion in 1981
to reflect the p o s t p o n e m e n t of these new s t a r t s .




-39-

350:

AGRICULTURE
($
Actual
1979

Budget

billions)
Estimate
1980
1981

Authority

January estimate
Changes:
Planned r e d u c t i o n s

5.0

5.5

9.4

5.0

5.5

January estimate
Changes:
Reestimates:
Farm p r i c e s u p p o r t s . . .
Planned reductions

6.2

4. 6

2.8

0.4

-0.6
-0.2

Current

6. 2

5.0

2.0

Current

estimate

Outlays

estimate

$50 m i l l i o n

or

less.

Since
January,
outlays
for
the
agriculture
function
have
increased
b y $ 0 . 4 b i l l i o n for 1980 and d e c r e a s e d b y $ 1 . 0 b i l l i o n
for 1 9 8 1 .
M o s t of the c h a n g e in b o t h y e a r s is d u e to r e e s t i m a t e s
r a t h e r than p r o p o s e d p o l i c y c h a n g e s .

R e e s t i m a t e s . — T h e c u r r e n t r e e s t i m a t e of o u t l a y s
for
farm
price
s u p p o r t s r e f l e c t s a shift in planned w h e a t p u r c h a s e s from 1981 to
1980.
The
shift
adds
to the s u b s t a n t i a l year to year d r o p in
o u t l a y s , w h i c h d e c l i n e from $ 5 . 0 b i l l i o n in 1980 to $ 1 . 9
billion
in 1 9 8 1 .
T h i s a c t i o n is p a r t of the plan to o f f s e t the i m p a c t of
the
s u s p e n s i o n of g r a i n s h i p m e n t s to the S o v i e t U n i o n a n d , a l o n g
with other technical reestimates, creates a $0.4 billion increase
in 1 9 8 0 .
A $0.6 b i l l i o n d e c r e a s e o c c u r s in 1981 b e c a u s e of
this
shift
and
because
of
expectations
of
more
favorable export
markets.
Planned r e d u c t i o n s . — P l a n n e d
program
reductions
result
from
increases
in
i n t e r e s t r a t e s on loan p r o g r a m s , i n c l u d i n g raising
commodity loan
interest
to
13%.
This
results
in
increased
offsetting receipts, which reduce outlays.




-40-

370:

COMMERCE AND HOUSING

CREDIT
($
Actual
1979

Budget

Authority

January estimate
Changes:
Reestimates
Planned reductions:
P a y m e n t s to the P o s t a l
Other
Current

billions)
Estimate
1980
1981

5.9

10.2

-0.2
-0.1

Service.

estimate

5.9

5.9

10.2

5.6

2.6

5. 5

0.7

Outlays
January estimate
Changes:
Reestimates:
FHLBB
GNMA
SBA supplemental
Planned reductions:
P a y m e n t s to the P o s t a l
Other
Current

estimate

$50 million

0.6
0.1
*
Service....

2.6

or

-*

-0.3
-0.1

6.2

0.4

less.

C u r r e n t e s t i m a t e s for 1980 for the c o m m e r c e
and
housing
credit
function
are
higher
for
outlays
in 1980 and l o w e r for b u d g e t
a u t h o r i t y and o u t l a y s in 1 9 8 1 .
As a n t i c i p a t e d
in
January,
the
s u b s t a n t i a l d e c r e a s e b e t w e e n 1980 and 1981 in o u t l a y s r e f l e c t s an
e s t i m a t e that a s s e t s a l e s in m o r t g a g e c r e d i t and t h r i f t i n s u r a n c e
p r o g r a m s will be g r e a t e r than a s s e t p u r c h a s e s .
Reestimates.—The
increase
in
outlays
in 1980 r e s u l t s from an
upward r e e s t i m a t e for e m e r g e n c y
loans
to
financially
troubled
savings
and l o a n a s s o c i a t i o n s of $ 0 . 6 b i l l i o n and an i n c r e a s e of
$ 0 . 1 b i l l i o n in G o v e r n m e n t N a t i o n a l M o r t g a g e
Association
(GNMA)
o u t l a y s d u e to m a r k e t c o n d i t i o n s .
Planned r e d u c t i o n s . — T h e
largest
planned
reduction
is for the
p a y m e n t to the P o s t a l S e r v i c e
in
1981,
which
is
expected
to
reduce
normal
delivery
of m a i l to five d a y s per w e e k .
Smaller
r e d u c t i o n s a f f e c t p r o g r a m s in s e v e r a l o t h e r
agencies,
including
the
elimination
of
loan
authority
for
the
Department
of
A g r i c u l t u r e ' s a b o v e - m o d e r a t e income loan guarantee p r o g r a m .




-41-

400:

TRANSPORTATION
($ b i l l i o n s )
Actual
Estimate
1979
1980
1981

Budget

Authority

January estimate
Changes:
Planned reductions:
Transportation energy
Other

21.0

23.6

-0.6
-*

-*
-0.2

19.2

20.4

23.4

January estimate
Changes:
Reestimates:
F e d e r a l aid to h i g h w a y s
Planned reductions:
Transportation energy initiative..
Highways
A i d s to r a i l r o a d s
Other

17.5

19.6

20.2

Current

17.5

Current

19.2

initiative..

estimate

Outlays

*

estimate

$50 m i l l i o n

or

1.0
-0.1
-*
-*

-0.4
-0.4
-0.1
-0.2

20.5

19.0

less.

B u d g e t a u t h o r i t y and o u t l a y s for the t r a n s p o r t a t i o n f u n c t i o n
for
1981
are
below
the
J a n u a r y a m o u n t s b e c a u s e of p l a n n e d p r o g r a m
reductions.
C h a n g e s in 1980 are due to r e d u c t i o n s
in
requested
b u d g e t a u t h o r i t y and a r e e s t i m a t e of o u t l a y s .
R e e s t i m a t e s . — T h e o n l y r e e s t i m a t e for the t r a n s p o r t a t i o n f u n c t i o n
involves
1980
o u t l a y s for F e d e r a l aid to h i g h w a y s .
This change
r e q u i r e s a s u p p l e m e n t a l a p p r o p r i a t i o n for l i q u i d a t i n g cash n e e d e d
to c o v e r o b l i g a t i o n s , w h i c h a r e b e i n g d r a w n d o w n b y S t a t e s
at
a
h i g h e r rate than a n t i c i p a t e d in J a n u a r y .
Planned r e d u c t i o n s . — T h e
major
planned
reduction
for
1980
i n v o l v e s r e d u c i n g b u d g e t a u t h o r i t y and
outlays
for
the
public
transporation
capital
i n v e s t m e n t c o m p o n e n t of the t r a n s p o r a t i o n
e n e r g y i n i t i a t i v e and d e f e r r i n g the a u t o - u s e m a n a g e m e n t c o m p o n e n t
of the i n i t i a t i v e until
1981.
The
combined
effect
of
these
changes
red u c e s
1980
budget
authority
by
$0.6
b i l l i o n , and
outlays by $0.1 billion.
Other

planned




reductions

include:

-42-

Reducing the other two p r o g r a m s
in
the
transportation
energy initiative.
This involves p o s t p o n i n g s t a r t - u p of
the fuel economy s t a n d a r d s program from 1981 to 1982 ($8
m i l l i o n in budget a u t h o r i t y and $4 m i l l i o n in o u t l a y s in
1981),
and
reducing
budget a u t h o r i t y ($8 m i l l i o n ) for
basic a u t o m o t i v e r e s e a r c h .
Lowering highway o b l i g a t i o n s from $8.85 billion in
1980
and
1981
to
$7.7
billion in 1980 and $ 8 . 5 billion in
1981, w h i c h r e d u c e s h i g h w a y o u t l a y s by
$20
million
in
1980 and by $0.4 billion in 1981.
D e f e r r i n g $370
million
of
non-safety-related
airport
grant
obligations
until
late
1981
and
lowering the
o b l i g a t i o n l i m i t a t i o n by $50 m i l l i o n
to
$650
million,
w h i c h r e d u c e s 1981 o u t l a y s by $70 m i l l i o n .
Reducing
or
improvements,
1981.

deferring
various
which
reduces
outlays

rail
$105

passenger
m i l l i o n in

Other r e d u c t i o n s for the D e p a r t m e n t s
of
Transportation
and
Commerce
($45
million
in
1980 o u t l a y s , and $205
m i l l i o n in budget a u t h o r i t y and $165 m i l l i o n in
outlays
in 1981) .




-43-

450:

COMMUNITY AND REGIONAL

DEVELOPMENT
($ b i l l i o n s )
Actual
Estimate
1979
1980
1981

Budget

Authority

January estimate
Changes:
Reestimates:
S B A d i s a s t e r loan s u p p l e m e n t a l . . . .
Planned reductions:
EDA
B l o c k g r a n t s and o t h e r H U D
Other

10.0

9.0

9.8

0.4
-0.4
-0.2
-0.1

-0.5
-0.1
-0.1

9.4

8.6

9.0

January estimate
Changes:
Reestimates:
Block grants
S B A d i s a s t e r loan s u p p l e m e n t a l . . . .
Planned reductions:
EDA and o t h e r C o m m e r c e
B l o c k g r a n t s and o t h e r H U D
Other

9. 5

8. 5

8.8

0.3
0.3

0.2
0.1

-0.1
-*
-*

-0.3
-0.2
-0.2

Current

9.5

9.0

8.5

Current

estimate

Outlays

*

$50

estimate

million

or

less.

Estimated budget authority
is l o w e r than the
January
Outlays
are
$0.5 billion
in 1 9 8 1 .
Reestimates.—Two
outlays:

for c o m m u n i t y and r e g i o n a l d e v e l o p m e n t
estimate
for
both
1980
and
1981.
h i g h e r in 1980, but $ 0 . 3 b i l l i o n l o w e r

reestimates

increase

both

budget

authority

and

The Small B u s i n e s s A d m i n i s t r a t i o n h a s revised upward its
e s t i m a t e of loan r e q u i r e m e n t s as a r e s u l t of s t o r m s
and
mudslides
in
California
and
Arizona
and
for
farm
disaster loans.
T h i s r e s u l t s in a $ 0 . 4 b i l l i o n i n c r e a s e
in 1980 b u d g e t a u t h o r i t y and o u t l a y
increases
of
$0.3
b i l l i o n in 1980 and $ 0 . 1 b i l l i o n in 1 9 8 1 .
The
current
development




estimates
for
outlays
for
block
grants
in
1980
and 1981

community
are a b o v e

-44-

earlier e s t i m a t e s b e c a u s e local g o v e r n m e n t s
these funds faster than a n t i c i p a t e d .
Planned r e d u c t i o n s . — P l a n n e d r e d u c t i o n s
a u t h o r i t y are p r i m a r i l y in two a r e a s :

in

outlays

are

and

spending

budget

a r e d u c t i o n in the Economic
Development
Administration
development
financing
initiative
results
in
a
$0.4
b i l l i o n reduction in budget a u t h o r i t y in 1980 and
1981,
and
in
outlay
reductions
of
$0.1
billion
and $ 0 . 2
b i l l i o n , r e s p e c t i v e l y , in the two years; and
—

r e d u c t i o n s in
the
community
development
block
grant
program
result in d e c r e a s e s in budget a u t h o r i t y of $ 0 . 2
b i l l i o n in 1980 and $0.1 b i l l i o n in 1981.
Decreases
in
o u t l a y s are offset by the i n c r e a s e s noted a b o v e .




-45-

500:

EDUCATION,

TRAINING,

EMPLOYMENT, AND SOCIAL
($
Actual
1979

Budget

SERVICES
billions)
Estimate
1980
1981

Authority

January estimate
Changes:
Reestimates:
S t u d e n t loan insurance
Other
Planned r e d u c t i o n s :
E l e m e n t a r y , s e c o n d a r y and
v o c a t i o n a l education
Higher e d u c a t i o n
Training and e m p l o y m e n t
Other

32. 6

Current

estimate

31. 2

34.8

0.1
-0.1

0.3

-0.3
-0.2
*
-0.2

-0.5
-0.1
-1.4
-0.1

32. 6

30. 7

33.0

29.7

30.7

32.0

0.1
-0.1

0.2

_*

-0.3
-0.2

-0.3
-0.3
-0.8
-0.1

30.1

30.6

Outlays
January estimate
Changes:
Reestimates:
Student loan insurance
Other
Planned r e d u c t i o n s :
E l e m e n t a r y , s e c o n d a r y and
vocational education.
Higher e d u c a t i o n
Training and e m p l o y m e n t
Other
Current

*

estimate

$50 m i l l i o n

or

,, .
, ,

less.

Budget a u t h o r i t y and outlays
and
social s e r v i c e s decline
January budget.

for e d u c a t i o n , t r a i n i n g , e m p l o y m e n t ,
for 1980 and 1981 as compared to the

Reestimates.—Budget
authority
and
outlays
for
student
loan
insurance
have
been
increased
primarily
because
of
higher
interest c o s t s in both 1980 and 1981.
Social s e r v i c e s g r a n t s
to
States
are estimated to require $120 m i l l i o n less in both budget
authority
and
outlays
in
1980
as
compared
to
the
January
estimate.




Planned r e d u c t i o n s , — R e d u c t i o n s
budget a u t h o r i t y for the function
revisions include:

affect
estimated
for both 1980 and

outlays
and
1981.
Major

Reductions
in
elementary,
secondary,
and
vocational
education
programs
of $266 million in b u d g e t a u t h o r i t y
for 1980, and $511 m i l l i o n in budget a u t h o r i t y and
$337
million
in outlays in 1981.
Outlays for these p r o g r a m s
are reduced by r e l a t i v e l y small amounts in 1980.
R e d u c t i o n s in higher e d u c a t i o n p r o g r a m s of $153
million
in
b u d g e t a u t h o r i t y in 1980, and $150 m i l l i o n in b u d g e t
a u t h o r i t y and $251 m i l l i o n in o u t l a y s in 1981.
R e d u c t i o n s in training and e m p l o y m e n t p r o g r a m s including
a
reduced
level
of
operation
for
the
Young
Adult
Conservation
Corps,
a
phase-out of the w e l f a r e reform
demonstration
projects,
and
a
reduction
in
countercyclical
public
service
employment
under CETA
from the J a n u a r y e s t i m a t e of 200,000 to 1 4 9 , 0 0 0
in
the
revised
budget.
These
result
in
r e d u c t i o n s of $349
m i l l i o n in outlays in 1980, and $ 1 , 3 5 0 m i l l i o n in budget
a u t h o r i t y and $841 m i l l i o n in o u t l a y s in 1981.
Small
reductions
in
programs,
operations,
and
m a i n t e n a n c e for the D e p a r t m e n t s of E d u c a t i o n , Health and
Human
Services,
and
Labor;
and
for
the
Community
S e r v i c e s A d m i n i s t r a t i o n , the national e n d o w m e n t s for the
arts and the h u m a n i t i e s , and A C T I O N .
The following information
is
provided
in
fulfillment
of
the
requirement
of
Section 602
of the C o m p r e h e n s i v e E m p l o y m e n t and
Training
Act
(Public
Law 9 5 - 5 2 4 ) ,
and
revises
information
supplied
in
the
Budget
Appendix
for
1981
in
the t e m p o r a r y
employment assistance account.
The u n e m p l o y m e n t
7.3%.

rate

for 1981

is now

estimated

The n u m b e r of unemployed in e x c e s s of 4%
of
the
force is estimated to be 3.5 m i l l i o n in 1981.

to

be

labor

The a v e r a g e cost per year of a Title VI
public
service
e m p l o y m e n t o p p o r t u n i t y is estimated to be $ 1 0 , 1 9 4 .
The amount that would need to be a p p r o p r i a t e d to p r o v i d e
public service j o b s for 25% of the number of
unemployed
in
e x c e s s of 4%, taking into account anticipated budget
r e s o u r c e s at
the
beginning
of
the
year,
is
$9,430
mill ion.




-47-

550:

HEALTH
($ b i l l i o n s )
Actual
Estimate
1979
1980
1981

Budget

Authority

January estimate
Changes-:
Reestimates:
M e d i c a r e and m e d i c a i d
Planned reductions:
Child h e a l t h a s s u r a n c e p r o g r a m . . . .
O t h e r m e d i c a r e and m e d i c a i d
benefit expansions
O t h e r (mainly g r a n t p r o g r a m s )

53.9

60. 0

71.5

0.2

0.6

-*

-0.4

-0.3

-0.1
-0.6

Current

53.9

59.9

71 .1

January estimate
Changes:
Reestimates:
M e d i c a r e and m e d i c a i d
Planned reductions:
Child h e a l t h a s s u r a n c e programO t h e r m e d i c a r e and m e d i c a i d
benefit expansions
O t h e r (mainly g r a n t p r o g r a m s ) . ,

49.6

56.6

62.4

Current

49.6

estimate

Outlays

*

estimate

$50 m i l l i o n

or

0.3
-0.4

-0.1
-0.1

-0.4

56.5

61.9

less.

The
current
request
for
total b u d g e t a u t h o r i t y for the h e a l t h
f u n c t i o n is a l m o s t the s a m e as the J a n u a r y e s t i m a t e for 1 9 8 0
and
1 9 8 1 , t h o u g h for b o t h y e a r s there are l a r g e l y o f f s e t t i n g c h a n g e s .
Outlays
are
n o w e s t i m a t e d to be $ 0 . 1 b i l l i o n lower for 1980 and
$ 0 . 6 b i l l i o n l o w e r for 1 9 8 1 .
In
addition
to
these
changes,
the
Administration
strongly
supports
the e n a c t m e n t of h o s p i t a l cost c o n t a i n m e n t l e g i s l a t i o n ,
w h i c h w o u l d s a v e an e s t i m a t e d $ 0 . 8 b i l l i o n in F e d e r a l o u t l a y s
in
1981 and h e l p to s l o w the rate of i n c r e a s e in h o s p i t a l c o s t s .
Reestimates.—The
only
n o t e w o r t h y reestimates since January are
in the 1981 f i g u r e s for m e d i c a r e and m e d i c a i d w h i c h are d u e t o :




-48-

the effect of higher inflation on the
medicare
program
($0.3
billion
in
b u d g e t a u t h o r i t y and $0.1 b i l l i o n in
o u t l a y s ) ; and
changed economic c o n d i t i o n s and F e b r u a r y State
medicaid
estimates,
which
show h i g h e r spending than a n t i c i p a t e d
for 1981 ($0.3 b i l l i o n
in
budget
authority
and
$0.2
b i l l i o n in o u t l a y s ) .
Planned

reductions.—The

major

planned

reductions

include:

delaying e n a c t m e n t of the child health a s s u r a n c e
(a part of m e d i c a i d ) until S e p t e m b e r 1981, w h i c h
b u d g e t a u t h o r i t y and o u t l a y s s l i g h t l y for
1980
$0.4 b i l l i o n for 1981;

program
reduces
and
by

delaying the e f f e c t i v e d a t e s of m o s t
proposed
medicare
and
medicaid
benefit
expansions
until
1982,
which
r e d u c e s 1981 outlays by $0.1 b i l l i o n ;
rescinding 1980 a p p r o p r i a t i o n s totaling $0.3 b i l l i o n
in
budget
a u t h o r i t y and $0.1 b i l l i o n in o u t l a y s for health
p r o f e s s i o n s training and d i s c r e t i o n a r y
health
services
programs,
and
eliminating
a
request
for
a
1980
s u p p l e m e n t a l a p p r o p r i a t i o n for
new
mental
health
and
a l c o h o l i s m p r o g r a m s ; and
cancelling v a r i o u s new or
expanded
health
grants
and
reducing
program support for the National I n s t i t u t e s of
budget
authority
Health for s a v i n g s of $0.6 billion in
and $0.4 billion in o u t l a y s for 1981.




-49-

600:

INCOME

SECURITY
($
Actual
1979

Budget

billions)
Estimate
1980
1981

Authority

January estimate
Changes:
R e e s t i m a t e s and o t h e r :
Social security
Federal employee retirement
Unemployment compensation
Food s t a m p s
Child nutrition
Other
Planned reductions:
Annual indexation:
Food s t a m p s and c h i l d
nutrition
Federal employee retirement
and d i s a b i l i t y
Low-income energy assistance
Unemployment compensation
Food s t a m p e l i g i b i l i t y r e f o r m s . . . .
Other

191 .9

222. 1

251.5

1.2
-0.2
0.2
-*
*

1.4
0.2
-0.2
0.2
-0.1
0.3

-0.1

-0.5

-*

-0.6
-0.2
-0.2
-0.1
-0.1

Current

191.9

223. 3

251.6

January estimate
Changes:
Reestimates:
Social security
Federal employee retirement
Unemployment compensation
Food s t a m p s
Child nutrition
Other
Planned reductions:
Annual indexation:
Food s t a m p s and c h i l d
nutrition
Federal employee retirement
and d i s a b i l i t y
Low-income energy assistance
Unemployment compensation
Food s t a m p e l i g i b i l i t y r e f o r m s . . . .
Other

160. 2

190. 9

220.0

-*
-*
-1.0
0.1
-*
0.1

1.5
0.3
-0.4
0.2
-0.1
0.3

-0.1

-0.5

*

-0.7
-0.2
-0.2
-0.1
-0.2

Current

160.2

190.0

220.1

estimate

Outlays

*

estimate

$50 m i l l i o n




or

less.

-50-

Most
of
the
changes
in
1980
are
due
to
revised
assumptions, while
the
1981
changes
stem
from
both
economic a s s u m p t i o n s and planned r e d u c t i o n s .

economic
revised

Reestimates.—Compared
with
the
January
estimates,
estimating c h a n g e s have been m a d e in the following a r e a s :

major

Social security budget a u t h o r i t y e s t i m a t e s
increase
by
$1.2
billion
in
1980 and $1.4 billion in 1981, due to
higher receipt e s t i m a t e s resulting largely
from
higher
estimated
inflation.
Outlays d e c r e a s e by $0.1 billion
in 1980 and increase by $1.5
billion
in
1981.
These
changes
are
due
to
higher
inflation offset by lower
e s t i m a t e s of c a s e l o a d s for d i s a b i l i t y i n s u r a n c e .
Outlay
estimates
for
unemployment
compensation
have
decreased
by
$1.0
billion in 1980 and $0.4 billion in
1981 p r i m a r i l y b e c a u s e of lower
estimated
unemployment
rates.
Planned r e d u c t i o n s . — O n e
of
the
major
planned r e d u c t i o n s is a
switch to an annual c o s t - o f - l i v i n g a d j u s t m e n t for food s t a m p s and
child n u t r i t i o n programs
and
Federal
employee
retirement
and
workers'
compensation
benefits.
These
p r o g r a m s are c u r r e n t l y
adjusted twice a y e a r .
A
change
to
annual
adjustments
will
decrease
both
budget
authority
and
outlays
in
1981 by $1.0
bill ion.
As
part
of
the
current
budget
reduction
effort,
the
Administration
considered recommending c h a n g e s in c o s t - o f - l i v i n g
a d j u s t m e n t s for those p r o g r a m s tied to the Consumer
Price
Index
(CPI).
These
a d j u s t m e n t s have a large impact on the budget and
there is a c o n c e r n that
the
CPI
may
sometimes
overstate
the
actual
effect
of
inflation on benefit l e v e l s .
No c h a n g e s were
recommended b e c a u s e of the c o m p l e x nature of the
issue
and
the
short time a v a i l a b l e to r e v i e w it.
H o w e v e r , in v i e w of the m a j o r
impact
indexing
has
on
the Federal budget and the w i d e l y held
b e l i e f that the CPI
may
at
times
exaggerate
the
adjustments
needed
to m a i n t a i n the purchasing power of b e n e f i t p a y m e n t s , the
A d m i n i s t r a t i o n proposes to undertake a thorough
review
of
this
issue.
This s t u d y , which will be carried out in c o o p e r a t i o n with
the
Congress,
will
consider a l t e r n a t i v e s to the p r e s e n t use of
the CPI that would protect b e n e f i c i a r i e s from i n f l a t i o n .
This
review
will
also
consider
the
broader
issue
of
the
desirability
of
protecting
beneficiaries
completely
from
inflation during periods like the present when p r i c e s are
rising
m u c h more rapidly than w a g e s .
For
low-income
energy
assistance,
the 1981 budget proposed an
increase over the 1980 level of $0.8 billion in
1981.
However,
the increase is n o w being limited to $0.6 b i l l i o n .
Other planned
reductions
are
for
unemployment
compensation
under
proposed
legislation
to
eliminate
the
requirement
and
Federal
reimbursement
for
u n e m p l o y m e n t c o m p e n s a t i o n based on subsidized
public service e m p l o y m e n t .
In
addition,
legislation
will
be
proposed
to c h a n g e food s t a m p e l i g i b i l i t y rules, w h i c h will save
$0.1 b i l l i o n in 1981 budget a u t h o r i t y and o u t l a y s .



-51-

700:

VETERANS BENEFITS AND

SERVICES
($
Actual
1979

Budget

billions)
Estimate
1980
1981

Authority

January estimate
Changes:
Reestimates:
Service-connected compensation....
Non-service-connected
pensions....
Other
Planned reductions:
D e p a r t m e n t of M e d i c i n e and S u r g e r y
Other

20.5

Current

20. 5

21. 2

22.5

January estimate
Changes:
Reestimates:
Service-connected compensation....
Non-service-connected
pensions....
Other
Planned reductions:
Housing loans
D e p a r t m e n t of M e d i c i n e and S u r g e r y
Other

19.9

20.8

21.7

-0.1
0.1

0.1
-0.2
0.1

Current

19.9

estimate

21.2

22.7

-0.1
0.1

0.1
-0.2
0.1
-0.2
-0.1

Outlays

*

estimate

$50 m i l l i o n

or

_*

-0.1
-0.2
-0.1

20.7

21.4

less.

B u d g e t a u t h o r i t y and o u t l a y s for v e t e r a n s b e n e f i t s
and
services
are
about
the
same
as
estimated
in J a n u a r y for 1980 and are
s l i g h t l y b e l o w the J a n u a r y level for 1 9 8 1 .
R e e s t i m a t e s . — R e e s t i m a t e s of o u t l a y s
and
budget
authority
for
veterans
benefits
and s e r v i c e s a r e v i r t u a l l y o f f s e t t i n g in b o t h
1980 and 1 9 8 1 .
An i n c r e a s e in o u t l a y s and b u d g e t
authority
for
service-connected
compensation
of $ 0 . 1 b i l l i o n in 1981 r e f l e c t s
higher proposed cost-of-living adjustments
than
anticipated
in
January.
A
decline
in
outlays
and b u d g e t a u t h o r i t y for n o n service-connected pensions of
$0.1
billion
in
1980
and
$0.2
billion
in
1981
is in l a r g e part d u e to lower e s t i m a t e s of the
n u m b e r of b e n e f i c i a r i e s and the a v e r a g e c o s t per b e n e f i c i a r y .




-52-

Planned r e d u c t i o n s . — P r o g r a m r e d u c t i o n s totaling $0.3 b i l l i o n
in
outlays
in
1981
include
a
$155
m i l l i o n reduction in c a p i t a l
investment
in
the
Veterans
Administration's
Department
of
Medicine
and
Surgery
and
a
$59
million
reduction in d i r e c t
housing l o a n s due to a r e s t r i c t i o n of n e w
lending
to
specially
adapted housing l o a n s .




-53-

750:

ADMINISTRATION

OF

JUSTICE
($ b i l l i o n s )
Actual
Estimate
1979
1980
1981

Budget

Authority

January estimate
Changes:
Reestimates
Planned reductions:
Law e n f o r c e m e n t a s s i s t a n c e
Other
Current

4.2

4.4

grants.

estimate

4.7

-0.4
-*
4. 2

4. 4

4.3

4. 2

4. 5

4.7

Outlays
January estimate
Changes:
Reestimates
Planned reductions:
Law e n f o r c e m e n t a s s i s t a n c e
Other
Current

*

estimate

$50 m i l l i o n

or

*
grants.

4. 2

-*

-0.1
-*

4.6

4.6

less.

Estimated
b u d g e t a u t h o r i t y and o u t l a y s for the a d m i n i s t r a t i o n of
justice
function
are
virtually
unchanged
from
the
January
e s t i m a t e s for 1 9 8 0 , w i t h l a r g e r r e d u c t i o n s p l a n n e d for 1 9 8 1 .
Planned r e d u c t i o n s . — L a w
e n f o r c e m e n t a s s i s t a n c e g r a n t s to S t a t e s
and l o c a l i t i e s are p r o p o s e d to be phased o u t , and some r e d u c t i o n s
are planned in o p e r a t i o n s and
maintenance
for x e n f o r c e m e n t
and
o t h e r p r o g r a m s in the D e p a r t m e n t s of J u s t i c e and T r e a s u r y .




-54-

800:

GENERAL

GOVERNMENT
($
Actual
1979

Budget

billions)
Estimate
1980
1981

Authority

January estimate
Changes:
Reestimates
Planned reductions.

4. 4

Current

4.4

estimate

4. 9

4 .9

-*
-*

*
-0.1

4.9

4.9

Outlays
January estimate
Changes:
Reestimates
Planned reductions

4. 2

Current

4. 2

*

estimate

$50 million

or

4. 9
-*
-0.1

4 .9
*
-0.1

4. 8

4 .8

function

have

less.

The current e s t i m a t e s
changed only slightly

for the g e n e r a l
since January.

government

Planned r e d u c t i o n s . — T h e
reductions
are
primarily
due
to
d e c r e a s e s in the o p e r a t i n g b u d g e t s of the
agencies
included
in
the
general
government
f u n c t i o n as p a r t of the G o v e r n m e n t - w i d e
r e d u c t i o n in a g e n c y o p e r a t i n g b u d g e t s .




-5 5 -

GENERAL

PURPOSE

FISCAL

ASSISTANCE
($
Actual
1979

Budget

billions)
Estimate
1980
1981

Authority
•CO

850:

January estimate
Changes:
Reestimates:
P a y m e n t s to the V i r g i n I s l a n d s . • .
Planned reductions:
General revenue sharing
Local g o v e r n m e n t t r a n s i t i o n a l
assistance program
A n t i r e c e s s i o n fiscal a s s i s t a n c e . . .
P a y m e n t s to Guam and the V i r g i n
Islands
P a y m e n t s in lieu of t a x e s

8.3

Current

8.3

8.8

6.8

January estimate
Changes:
Reestimates:
P a y m e n t s to the V i r g i n I s l a n d s . . . .
Planned reductions:
General revenue sharing
Local g o v e r n m e n t t r a n s i t i o n a l
assistance program
A n t i r e c e s s i o n fiscal a s s i s t a n c e . . .
P a y m e n t s to Guam and the V i r g i n
Islands
P a y m e n t s in l i e u of t a x e s

8.4

8.7

9.6

Current

8. 4

estimate

9.6

0.2
-2.3

-0.1

0.5
-1.0
_*
_*

OutIays

*

estimate

$50 m i l l i o n

or

The current totals
January
estimates
in 1 9 8 1 .

0.2
-1.7

-0.1

0.5
-1.0
-*
-*

8.8

7.4

less.

for
in

this
function
are
slightly
above
the
1980 but s i g n i f i c a n t l y b e l o w the e s t i m a t e s

R e e s t i m a t e s . — B u d g e t a u t h o r i t y and o u t l a y s in 1980 h a v e i n c r e a s e d
by $ 0 . 2 b i l l i o n b e c a u s e of a t e c h n i c a l a c c o u n t i n g c h a n g e r e l a t i n g
to
payments
to
the
Virgin
Islands.
This
reestimate
also
increases
receipts
in 1980 a n d , t h e r e f o r e , h a s no e f f e c t on the
deficit.




-56-

P] annecl r e d u c t i o n s . — T h e
largest
planned
reduction
is
the
elimination
of the State share of general revenue s h a r i n g , w h i c h
reduces 1981 budget a u t h o r i t y by $2.3 billion and o u t l a y s by $1.7
billion.
This d e c r e a s e is p a r t i a l l y offset by the proposed local
g o v e r n m e n t transitional a s s i s t a n c e p r o g r a m , w h i c h will assist the
most d i s t r e s s e d local g o v e r n m e n t s in adjusting to
the
reduction
in
State
assistance
that
will
result with the e l i m i n a t i o n of
general revenue sharing p a y m e n t s to the S t a t e s .
Other

changes




include:

withdrawal
of
support
for
antirecession
fiscal
assistance,
which
decreases
1980 budget a u t h o r i t y and
outlays
by
$0.1
billion
and
decreases
1981
budget
a u t h o r i t y and o u t l a y s by $1.0 billion; and
the d e l a y of
tax
matching
for
Guam
and
the
Islands
and a $30 m i l l i o n reduction of p a y m e n t s
of t a x e s .

Virgin
in lieu

-57-

900:

INTEREST
($ b i l l i o n s )
Actual
Estimate
1979
1980
1981

Budget

Authority

January estimate
Changes:
I n t e r e s t on the p u b l i c d e b t :
Reestimates
I m p a c t of p l a n n e d r e d u c t i o n s
Other interest:
Reestimates

52.6

Current

52. 6

64 . 3

68.4

January estimate
Changes:
I n t e r e s t on the p u b l i c d e b t :
Reestimates
I m p a c t of p l a n n e d r e d u c t i o n s
Other interest:
Reestimates

52.6

63 . 3

67.2

Current

52.6

estimate

63. 3

67.2

1.6
-0.2

3.8
-2.2

-0.4

-0.4

Outlays

estimate/.

1.6
-0.2

3.8
-2.2

-0.4

-0.4

64. 3

68.4

B u d g e t a u t h o r i t y and o u t l a y e s t i m a t e s for the
interest
function
have
increased
since
January
due
to
h i g h e r than a n t i c i p a t e d
i n t e r e s t r a t e s p a r t i a l l y o f f s e t b y lower b o r r o w i n g r e q u i r e m e n t s .
R e e s t i m a t e s . — R e v i s e d economic assumptions,
particularly
higher
interest
rates,
have
increased
e s t i m a t e d b u d g e t a u t h o r i t y and
o u t l a y s for the i n t e r e s t f u n c t i o n by $ 1 . 2
billion
in
1980
and
$ 3 . 4 b i l l i o n in 1 9 8 1 .
Planned r e d u c t i o n s . — T h e
increases
are
p a r t i a l l y o f f s e t by the
reduced
borrowing
requirements
that
result
from
the
Administration's
anti-inf1 ation
p r o g r a m , w h i c h are e s t i m a t e d to
r e d u c e i n t e r e s t o u t l a y s b y $ 0 . 2 b i l l i o n in 1980 and $ 2 . 2
billion
in 1 9 8 1 .




-58-

920:

ALLOWANCES
($ b i l l i o n s )
Actual
Estimate
1979
1980
1981

Budget

Authority

January estimate
Changes:
Reestimates
Planned reductions:
Civilian agency pay raises
Contingency allowance
Current

0.2.

3.1
0.2

-0.2

estimate

-0.2
-1.4
1.7

Outlays
January estimate
Changes:
Planned reductions:
Civilian agency pay raises
Contingency allowance
Current

*

estimate

$50 m i l l i o n

or

0.1

2.6

-0.1

-0.2
-1.0
1.4

less.

The
allowance
function
includes
amounts
for F e d e r a l c i v i l i a n
a g e n c y e m p l o y e e pay r a i s e s , f u t u r e
initiatives,
and
unforeseen
requirements.
Estimates
for
b o t h b u d g e t a u t h o r i t y and o u t l a y s
have changed since January.
Planned r e d u c t i o n s . — F o r 1981, there
are
substantial
decreases
from
January
estimates
for
both b u d g e t a u t h o r i t y and o u t l a y s .
The A d m i n i s t r a t i o n ' s w e l f a r e reform p r o p o s a l , w h i c h
was
covered
by
the
c o n t i n g e n c y a l l o w a n c e in 1981, w i l l b e d e l a y e d one y e a r .
This reduces outlays
and
budget
authority
for
1981
by
$0.9
billion
from the J a n u a r y e s t i m a t e .
R e d u c t i o n s in n e w s t a r t s for
w a t e r r e s o u r c e p r o j e c t s , c o v e r e d b y the c o n t i n g e n c y a l l o w a n c e for
1 9 8 1 , w i l l r e d u c e o u t l a y s by $40 m i l l i o n and b u d g e t a u t h o r i t y
by
$0.6
billion
in
1981.
The
a l l o w a n c e for c i v i l i a n a g e n c y p a y
r a i s e s w a s e s t i m a t e d in J a n u a r y w i t h the a s s u m p t i o n that a g e n c i e s
would a b s o r b 21% of the c o s t of
these
raises.
The
absorption
rate
h a s b e e n i n c r e a s e d to 35% to r e f l e c t the P r e s i d e n t ' s f r e e z e
on e x e c u t i v e s a l a r i e s , the e f f e c t s of the l i m i t s on
new
hiring,
and o t h e r r e d u c t i o n s in o p e r a t i n g c o s t s .
This reduces allowances
for 1981 by $ 0 . 2 b i l l i o n .




-59-

950:

UNDISTRIBUTED

OFFSETTING

RECEIPTS
($
Actual
1979

Budget

/authority and

Outlays

January estimate
Changes:
Reestimates:
Employer share, employee
retirement
I n t e r e s t r e c e i v e d by trust f u n d s . .
R e n t s and r o y a l t i e s on the
Outer C o n t i n e n t a l S h e l f

-18. 5

Current

-18.5

*

estimate

$50 m i l l i o n

All
of
the
reestimates.

or

billions)
Estimate
1980
1981

-22. 3

-25.1

*
-0.2

-*
-0.3

0.2

0.5

-22.2

-24.9

less.

changes

in

this

function

are

the

result

of

R e e s t i m a t e s . — T h e e s t i m a t e s of u n d i s t r i b u t e d o f f s e t t i n g
receipts
have
increased
for
both
1980
and 1981 s i n c e J a n u a r y .
Higher
i n t e r e s t r a t e s i n c r e a s e d the a m o u n t of i n t e r e s t r e c e i v e d b y t r u s t
funds.
R e n t s and r o y a l t i e s on the Outer C o n t i n e n t a l
Shelf
were
reestimated
due to a r e a s s e s s m e n t of f u t u r e s a l e s in the G u l f of
Mexico.
T h e s e i n c r e a s e s in
offsetting
receipts
reduce
budget
a u t h o r i t y and o u t l a y s .










Part 3
SUMMARY TABLES

Table

1 2 . — B U D G E T RECEIPTS BY MAJOR
(in b i l l i o n s of d o l l a r s )

Actual
1979

Individual income taxes
C o r p o r a t i o n income taxes
Social insurance taxes and
contr ibutions
Excise t a x e s
Estate and g i f t t a x e s
Customs duties
Miscellaneous receipts
March base estimate
W i t h h o l d i n g of taxes on interest
and dividend income
G a s o l i n e c o n s e r v a t i o n fee/motor
fuels tax
Total




budget

receipts

SOURCE

J a n u a r y Budget Estimate
1980
1982
1981
1983

1980

Current
1981

Estimate
1982
1983

217.8
65.7

238.7
72.3

274 .4
71.6

318.7
80.6

381.4
91.8

241.5
74.2

279.9
74.1

326.1
81.6

391.2
94.0

141.6
18.7
5.4
7.4
9 .2

162.2
26.3
5.8
7.6
10.9

187.4
40.2
5.9
8.4
12 .1

215.9
48.0
6.4
8.6
13.0

243.4
51.7
7.1
9.2
14 .2

163.5
25.2
5.8
7.3
11 .5

188.9
42.2
6.0
7.8
13.1

218.3
51.9
6.5
8.2
14 .0

246.4
54.8
7.3
8.7
15.2

465.9

523.8

600.0

691.1

798.8

529.0

612.0

706.6

817.7

3.4

2.5

2.8

3.4

12.6

15.7

17 .4

532.4

628.0

724.8

837.8

___
465.9

523.8

600.0

691.1

798.8

Table

1 3 . — E S T I M A T E D E F F E C T OF A D M I N I S T R A T I V E A C T I O N S
P R O P O S E D L E G I S L A T I O N ON R E C E I P T S , 1980-1983
(in b i l l i o n s of d o l l a r s )

R e c e i p t s under current law
E x t e n s i o n of airport and

airways

trust

fund

taxes

R e c e i p t s on a current s e r v i c e s b a s i s
P r o p o s e d l e g i s l a t i o n and a d m i n i s t r a t i v e a c t i o n s o t h e r
than e x t e n s i o n s :
E n e r g y l e g i s l a t i o n as adopted by the C o n g r e s s :
W i n d f a l l profit tax
E n e r g y tax credits
Interest and dividend e x c l u s i o n . .
Other
Subtotal, Energy
C a s h m a n a g e m e n t initiatives
R a i l r o a d retirement tax increase
Oil and hazardous s u b s t a n c e c l e a n u p
Tax treatment of independent c o n t r a c t o r s
F o r e i g n tax credit..
Tax-exempt mortgage bonds
Other
T o t a l , Proposed l e g i s l a t i o n and
actions other than e x t e n s i o n s

*

budget

receipts

$50 m i l l i o n or




less.

1980

Current
1981

523.7
0.1

589.2
0.9

677.5
0.9

788.2
1.0

523.8

590.1

678.5

789.2

4.2
-0.1

15.0
-0.3
-0.3
_*

20.0
-0.3
-2.3
0.1

20.3
-0.6
-1.7
0.2

*

14.4
4.3
0.3
0.2
0.6
0.7
1.1
0.4

17.5
5.6
0.3
0.3
0.6
0.7
2.9
0.4

18.1
2.2
0.3
0.4
0.7
0.7
5.5
0.5

5.2

21 .9

28.2

28 .4

529.0
3.4

612.0
3.4
12.6

706.6
2.5
15.7

817.7
2.8
17.4

532.4

628.0

724.8

837.8

4.1

0.9
0.2

Estimate
1982
1983

administrative

March base estimate
W i t h h o l d i n g of taxes on interest and dividend
G a s o l i n e c o n s e r v a t i o n fee/motor fuels tax
Total

AND

income

Table 1 4 . — C O M P O S I T I O N OF B U D G E T O U T L A Y S ,
(dollar a m o u n t s in b i l l i o n s )

National d e f e n s e :
Direct Federal p a y m e n t s for i n d i v i d u a l s , . . .
G r a n t s to S t a t e s and l o c a l i t i e s
Other
S u b t o t a l , National d e f e n s e
Nondefense:
D i r e c t Federal payments for i n d i v i d u a l s
P a y m e n t s for individuals through States
and l o c a l i t i e s
All other g r a n t s to States and l o c a l i t i e s
Net interest
Other
Subtotal,
Total




Nondefense

1979-1983

Actual
1979

1980

Current
1981

Estimate
1982

10.3
0.1
107 .3

11.9
0 .1
122 .0

13.6
0 .1
136 .9

16.1
0 .1
152 .7

18.0
0 .1
171 .8

117.7

134 .0

150 .5

168 .9

189 .9

198.7

231 .7

264 .9

294 .3

335 .9

28.8
54.0
42.6
51 >9

34 .1
55 .6
52 .6
60 .9

37 .1
53 .9
55 .2
50 .1

41 .3
57 .8
51 .5
69 .5

45 .9
61 .8
47 .9
77 .6

376 .0

434 .9

461 .1

514 .4

569 .1

493.7

568 .9

611 .5

683 .3

759 .0

1983

Table

14

(continued)

Actual
1979

Percent

of Total

National

defense

Nondefense:
D i r e c t F e d e r a l p a y m e n t s for i n d i v i d u a l s
P a y m e n t s for i n d i v i d u a l s t h r o u g h S t a t e s
and l o c a l i t i e s
All o t h e r g r a n t s to States and l o c a l i t i e s
Net i n t e r e s t
Other
Subtotal,
Total

* 0.05%

or




less.

Nondefense

Current
1981

2.1

Estimate
1982

1983

Outlays

National defense:
D i r e c t F e d e r a l p a y m e n t s for i n d i v i d u a l s
G r a n t s to S t a t e s and l o c a l i t i e s
Other
Subtotal,

1980

2.1
*
21.7

2.2

2.4

2.4

*

*

*

*

21.4

22.4

22.4

22.6

23.8

23.6

24.6

24.7

25.0

40.3

40.7

43.3

43.1

44.3

5.8
10.9
8.6
10.5

6.0
9.8
9.2
10.7

6.1
8.8
9.0
8 .2

6.0
8.5
7.5
10.2

6.0
8.1
6.3
10.2

76.2

76.4

75.4

75.3

75.0

100.0

100.0

100.0

100.0

100.0

Table

1 5 . — B U D G E T O U T L A Y S BY F U N C T I O N
(in b i l l i o n s of d o l l a r s )

Actual
1979
National d e f e n s e
International affairs
G e n e r a l s c i e n c e , s p a c e , and
technology
Energy
Natural r e s o u r c e s and e n v i r o n m e n t . . .
Agriculture
C o m m e r c e and housing credit
Transportation
C o m m u n i t y and regional d e v e l o p m e n t . .
Education, training, employment,
and social s e r v i c e s
Health
Income s e c u r i t y
V e t e r a n s b e n e f i t s and s e r v i c e s
A d m i n i s t r a t i o n of j u s t i c e
General g o v e r n m e n t
G e n e r a l p u r p o s e fiscal a s s i s t a n c e . . .
Interest
Allowances
Undistributed offsetting receipts...
Total

budget outlays




J a n u a r y Budget E s t i m a t e
1982
1983
1980
1981

1980

Current
1981

Estimate
1982
1983

117.7
6.1

130.4
10.4

146.2
9.6

165.5
10.2

185.9
11.2

134.0
11.1

150.5
10.1

168.9
10.5

5.0
6.9
12.1
6.2
2.6
17.5
9.5

5.9
7.8
12.8
4.6
5.5
19.6
8.5

6.4
8.1
12.8
2.8
0.7
20.2
8.8

6.9
11.0
13.7
3.0
3.2
21.6
9.4

7.0
13.5
14.1
3.9
3.1
23.2
9.9

5.9
6.8
12.8
5.1
6.2
20.5
9.0

6.2
6.9
12.5
2.0
0.4
19.0
8.5

6.9
11.8
13.3
2.8
2.5
21.1
8.9

6.9
14.5
13.8
3.6
2.4
23. 3
9.5

29.7
49.6
160. 2
19.9
4.2
4.2
8.4
52.6

32.0
62.4
220.0
21.7
4.7
4.9
9.6
67.2
2.6
-25.1

35.0
70.8
241.7
23. 2
4.9
5.1
9.7
68.0
9.8
-26.4

37.7
79.9
264.0
24.6
5.0
5.1
9.3
68. 3
36.5
-27.9

30.1
56.5
190.0
20.7
4.6
4.8
8.8
64.3

-18.5

30.7
56.6
190.9
20.8
4.5
4.9
8.7
63.3
0.1
-22.3

-22.2

30.6
61.9
220.1
21.4
4.6
4.8
7.4
68.4
1.4
-24.9

34.1
70.5
243.7
22.9
4.6
5.1
6.9
65.8
9.8
-26.6

37.1
80.1
266.0
24.3
4.6
5.0
6.4
63.3
25.3
-27.9

493.7

563.6

615.8

686.3

774. 3

568.9

611.5

683.3

759.0

189.9
10.8

i
£
i

Table

1 6 . — B U D G E T OUTLAYS BY A G E N C Y
(in b i l l i o n s of d o l l a r s )

Actual
1979
Legislative branch
The J u d i c i a r y
E x e c u t i v e O f f i c e of the P r e s i d e n t . . .
Funds a p p r o p r i a t e d to the P r e s i d e n t .
Agriculture
Commerce
Defense—Military
Defense—Civil
Education
Energy
Health and Human S e r v i c e s
Housing and Urban D e v e l o p m e n t
Interior
Justice
Labor
State
Transportation
Treasury
E n v i r o n m e n t a l P r o t e c t i o n Agency
N a t i o n a l A e r o n a u t i c s and Space
Administration
Veterans Administration
O f f i c e of P e r s o n n e l Management
Other a g e n c i e s
Allowances
U n d i s t r i b u t e d o f f s e t t i n g receipts...
Total

outlays




J a n u a r y Budget Estimate
1980
1981
1982
1983

1980

Current
1981

Estimate
1982
1983

1.1
0.5
0.1
2.6
20.6
4.1
115.0
2.9
10.9
7.9
170.3
9.2
4.1
2.5
22.6
1.5
15.5
65.0
4.8

1.3
0.6
0.1
9.5
23.6
3.6
127.4
3.2
12.9
7.7
193.7
11.6
4.2
2.6
27.5
2.0
17.3
75.8
5.0

1.3
0.6
0.1
9.3
20.1
3.4
142.7
3.1
13.5
8.7
219.3
11.8
4.2
2.7
31.8
2.2
17.9
80.3
5.2

1.4
0.7
0.1
11.1
23.8
3.5
161.6
3.4
15.3
10.8
246.1
13.8
4.5
2.8
30.9
2.4
19.1
81.3
5.5

1.4
0.7
0.1
13.4
25.7
3.7
181.7
3.4
16.8
12.2
274.2
15.3
4.9
2.8
29.6
2.5
20.3
81.1
5.7

1.3
0.6
0.1
9.2
24.0
3.5
131.0
3.2
12.9
6.9
193.4
12.0
4.1
2.6
26.2
2.0
18.3
76.9
5.3

1.3
0.6
0.1
8.0
18.7
3.1
147.0
2.9
13.1
7.9
220.3
11.8
3.9
2.6
30.4
2.2
17.2
79.2
5.4

1.4
0.7
0.1
10.6
22.9
3.1
165.1
3.4
15.3
11.6
248.3
13.8
4.1
2.5
29.8
2.4
18.8
76.3
5.6

1.4
0.7
0.1
12.9
24.7
3.4
185.7
3.4
16.8
13.2
277. 5
15.3
4.5
2.5
28.7
2.5
20.6
73.1
5.8

4.2
19.9
12.7
14.1

5.4
21.7
17.4
15.6
2.6
-25.1

5.9
23.1
19.7
15.8
9.8
-26.4

5.9
24.6
22.1
17.0
36.5
-27.9

5.0
20.6
14.9
17.0

-18.5

5.0
20.7
14.9
15.4
0.1
-22.3

-22.2

5.2
21.4
17.1
15.8
1.4
-24.9

5.9
22.9
19.5
16.0
10.0
-26.6

5.9
24.3
21.9
16.2
26.0
-27.9

493.7

563.6

615.8

686. 3

774.3

568.9

611.5

683.3

759.0

Table 1 7 . — B U D G E T A U T H O R I T Y BY F U N C T I O N
(in b i l l i o n s of d o l l a r s )

Actual
1979
National defense
International affairs
G e n e r a l s c i e n c e , s p a c e , and
technology
Energy
N a t u r a l r e s o u r c e s and e n v i r o n m e n t . . .
Agriculture
C o m m e r c e and housing c r e d i t
Transportation
C o m m u n i t y and regional d e v e l o p m e n t . .
Education, training, employment,
and social s e r v i c e s
Health
Income s e c u r i t y
V e t e r a n s b e n e f i t s and s e r v i c e s
A d m i n i s t r a t i o n of j u s t i c e
General government
G e n e r a l p u r p o s e fiscal a s s i s t a n c e . . .
Interest
Allowances
Undistributed offsetting receipts...
Total

budget




authority

J a n u a r y Budget Estimate
1982
1980
1981
1983

1980

Current
1981

Estimate
1982
1983

127.8
8.7

141.6
13.1

161.8
16.9

183.4
14.2

205.3
14.2

144.0
13.4

164.5
18.2

186.9
14.2

209.3
14.2

5.4
7.4
13.2
9.3
5.9
19.2
10.0

6.2
41.5
12.7
5.0
10.2
21.0
8.9

6.9
7.4
13.3
5.5
5.9
23.6
9.8

6.9
9.2
14.7
4.2
6.6
23.2
9.7

7.0
12.4
15.4
4.5
6.8
25.5
10.2

6.2
40.7
12.2
5.0
10.2
20.4
8.6

6.6
6.9
12.5
5.4
5.6
23.4
9.0

6.9
17.9
14.2
4.2
5.9
23.3
9.5

6.9
10.6
14.9
4.4
6.3
25.5
10.1

32.6
53.9
191.9
20.5
4.2
4.4
8.3
52.6

34.8
71.5
251. 5
22.7
4.7
4.9
9.6
67.2
3.1
-25.1

37.4
83.2
285.7
23.8
4.9
5.3
9.7
68.0
11.2
- 2 6 .4

39.4
94.5
310.5
24.9
5.0
5.0
9.3
68.3
38.0
-27.9

30.7
59.9
223. 3
21.2
4.4
4.9
8.8
64.3

-18 .5

31.2
60.0
222.1
21.2
4.4
4.9
8.7
63.3
0.2
-22.3

-22.2

33.0
71.1
251.6
22.5
4.3
4.9
6.8
68.4
1.7
-24.9

36.2
83.5
284.1
23.7
4.4
5.2
6.9
65.8
11.2
-26.6

38.5
95.3
310.1
24.8
4.6
5.0
6.4
63.3
26.8
-27.9

556.7

654.0

696.1

775.1

868.5

655.8

691.3

777.3

849.1

Table

1 8 . — B U D G E T A U T H O R I T Y BY A G E N C Y
(in b i l l i o n s of d o l l a r s )

Actual
1979
Legislative branch
The J u d i c i a r y
E x e c u t i v e Office of the President...
F u n d s a p p r o p r i a t e d to the President.
Agriculture
Commerce
Defense—Military
Defense—Civil
Education
Energy
H e a l t h and Human S e r v i c e s
Housing and Urban D e v e l o p m e n t
Inter ior
Justice
Labor
State
Transportation
Treasury
Environmental Protection Agency
N a t i o n a l A e r o n a u t i c s and Space
Administration
Veterans Administration
O f f i c e of P e r s o n n e l M a n a g e m e n t
Other a g e n c i e s
Allowances
U n d i s t r i b u t e d o f f s e t t i n g receipts...
Total

budget




authority

J a n u a r y Budget Estimate
1981
1982
1983
1980

1980

Current
1981

Estimate
1982
1983

1.1
0.5
0.1
5.9
24.5
2.6
125.0
2.8
12.6
10.3
172.8
31.1
4.7
2.5
28.6
1.7
17.2
64.7
5.4

1.3
0.6
0.1
13.0
24.7
3.7
138.6
2.9
13.9
10.5
195.4
35.7
4.6
2.5
28.1
2.1
17.8
94.1
4.7

1.3
0.7
0.1
11.4
24.6
3.4
158.2
3.0
15.5
10.2
222.9
40.4
4.7
2.7
33.0
2.3
20.5
80.9
5.3

1.5
0.7
0.1
13.0
25.6
3.7
179.4
3.9
16.6
11.0
254.8
47.6
5.0
2.7
37.0
2.5
20.0
81.8
5.8

1.3
0.7
0.1
14.8
27.0
3.9
201.0
3.8
17.9
12.9
286.5
48.8
5.3
2.8
38.2
2.6
22.1
81.5
6.4

1.3
0.6
0.1
12.4
24.6
3.2
140.9
2.9
13.6
9.9
196.4
35.5
4.3
2.4
27.8
2.1
17.8
95.1
4.7

1.3
0.7
0.1
12.0
23.9
2.9
160.9
2.9
15.1
10.1
224.0
40.3
4.1
2.2
31.3
2.3
20.3
79.2
5.3

1.5
0.7
0.1
21.3
25.1
3.3
182.9
3.9
16.2
11.0
257.4
45.7
4.4
2.3
34.9
2.5
20.1
76.8
5.8

1.3
0.7
0.1
12.0
26.5
3.7
205.0
3.8
17.6
13.7
290.2
47.2
4.7
2.4
36.8
2.6
22.1
73.6
6.4

4.5
20. 5
21.0
14.8

5.7
22.7
26.7
21.9
3.1
-25.1

5.8
23.8
28.5
19.0
11.2
-26.4

5.8
24.9
30.2
19.1
38.0
-27.9

5.3
21.2
24.5
31.3

-18.5

5.3
21.2
24.5
30.8
0.2
-22.3

-22.2

5.5
22.4
26.3
21.2
1.7
-24.9

5.8
23.7
28.2
18.3
12.0
-26.6

5.8
24.8
29.9
18.6
27.6
-27.9

556.7

654.0

696.1

775.1

868.5

655.8

691.3

777.3

849.1

Table

1 9 . — D E B T S U B J E C T TO LIMIT, 1979-1981
(in b i l l i o n s of d o l l a r s )

1979
Actual

Budget d e f i c i t or surplus (-)
P o r t i o n of b u d g e t d e f i c i t a t t r i b u t a b l e
to trust funds s u r p l u s or deficit ( - ) 1/
Federal

funds deficit or s u r p l u s

D e f i c i t of o f f - b u d g e t
Total

to be

Federal

Debt s u b j e c t
Debt subject

entities

financed

M e a n s of financing other than
and other a d j u s t m e n t s 1/
Change

(-)..

in debt subject

1980 E s t i m a t e
January
Current

1981 E s t i m a t e
January
Current

27 .7

39 .8

36 . 5

15 .8

- 1 6 .5

18 .3

18 .1

13 .6

30 .8

14 .1

46 .1

57 .8

50 .1

46 .5

- 2 .4

12 .4

16 .8

15 .0

18 .1

18 .7

58 .5

74 .6

65 .1

64 .6

16 .3

- 3 .6

- 1 5 .0

-11 .8

- 1 7 .6

- 0 .2

54 .9

59 .6

53 .4

47 .1

16 . 1

772 .7
827 .6

827 .6
887 .2

827 .6
881 .0

887 .2
934 .2

881 .0
897 . 1

borrowing,

to limit

to limit, beginning of year
to limit, end of year 2/

2/...

1/ The c h a n g e s from the January e s t i m a t e to the current e s t i m a t e are l a r g e l y due to the
r e c l a s s i f i c a t i o n of the energy s e c u r i t y p r o g r a m from a trust fund
to
Federal
funds,
in
accordance
with
the
legislation
adopted
by
the C o n g r e s s on the energy p r o g r a m .
This
d i r e c t l y r e d u c e s the estimated trust fund s u r p l u s and raises the Federal fund
surplus
by
an
equal
amount.
Since the budget assumed that the trust fund b a l a n c e s for this program
would not be invested in Federal s e c u r i t i e s , a c h a n g e in the a d j u s t m e n t for the
means
of
financing
other
than
borrowing
also
reflects
this
reclassification.
Thus,
the
r e c l a s s i f i c a t i o n had no effect on the c h a n g e in debt subject to l i m i t .
2/ The s t a t u t o r y debt limit is p e r m a n e n t l y established at
$400
billion.
Public
Law
96-78 t e m p o r a r i l y increased the s t a t u t o r y debt limit to $879 b i l l i o n through May 31, 1980.



Table

2 0 . — T H E C R E D I T B U D G E T TOTALS
(in b i l l i o n s of d o l l a r s )

1979
Actual
New d i r e c t loan
On-budget
Off-budget
Total,
New loan

New direct

loan o b i i g a t i o n s . . . .

33.9
17 .5

36.4
23.3

37.2
22 .8

35.4
25.3

35.4
25.8

51.4

59.7

60. 0

60.7

61.2

74 .7

75.2

74 .4

81.4

77 .4

126.1

134.9

134.4

142.1

138.6

1/ To avoid double c o u n t i n g , e x c l u d e s c o m m i t m e n t s for
guarantee
guaranteed
and
for
guarantee
by one G o v e r n m e n t account of direct
Government account.




1981 Estimate
Janua ry
Current

obligations:

g u a r a n t e e commi tments 1/
Total

1980 E s t i m a t e
January
Cur rent

of
loans
previously
loans made by another

Table

2 1 . — N E W D I R E C T LOAN O B L I G A T I O N S
(in b i l l i o n s of d o l l a r s )

1979
Actual
budget a g e n c i e s :
Funds appropriated

to the President

BY A G E N C Y

1980 E s t i m a t e
January
Current

1981 Estimate
January
Current

1.7
20.8
0.3

1.7
21.2
0.1

2.0
18.2
0.5

2.0
18.4
0.4

0.7

0.6

1.3

1.3

*

*

*

*

0.1
3.6

0.1
3.8

0.1
3.7

*

*

*

0.2
3.4
0.1

0. 2
3.4
0.1

1.3
21.3
0.1
*

0.7
Energy
H e a l t h and Human Services
Housing and Urban Development

*

Justice

*

*

*

*

*

0.1

0.2

0.2

0.3

0.3

0.6

0.7

0.7

0.8

0.7

4.1
1.8
0.2

4.5
1.8
1.4
0.3

4.5
1.8
1.6
1.0

4.8
2.2
1.4
0.4

4.8
2.2
1.4
0.4

S u b t o t a l , On-budget a g e n c i e s

33.9

36.4

37.2

35.4

35.4

-budget entities:
Rural E l e c t r i f i c a t i o n A d m i n i s t r a t i o n
Federal Financing Bank
All other o f f - b u d g e t e n t i t i e s

1.4
16.0
0.1

1.3
22.0

1.3
21.5

1.3
23.9

1.3
24.5

*

*

*

*

S u b t o t a l , Off-budget

17 .5

23.3

22.8

25.3

25.8

51.4

59.7

60.0

60.7

61.2

*

Treasury
Other i n d e p e n d e n t a g e n c i e s :
E x p o r t - I m p o r t Bank
N a t i o n a l Credit Union A d m i n i s t r a t i o n . . . .
Small B u s i n e s s A d m i n i s t r a t i o n
A l l other independent a g e n c i e s

Total

*

$50 m i l l i o n or




less.

entities

*

Table 2 2 . — N E W

LOAN G U A R A N T E E C O M M I T M E N T S BY
(in b i l l i o n s of d o l l a r s )

1979
Actual
Funds appropriated
A g r i c u l t u r e 1/

to the President

1980 E s t i m a t e
January
Current

*

*

*

*

3.3

4.6
1.9
0.2
90.3

4.9
1.9
0.2
90.3

2.2
0.2
0.3
102.1

2.2
0.2
0.2
102.1

*

88.8

Total

2.8
21.0
2.1

*

*

0.2
0.5
0.2
8.1

1.0
1.8

1.0
1.8

0.8
0.3

0.8
0.3

10.3

10.3

10.4

10.4

5.0
4.2

0.8
7.8
5.3

0.8
6.8
5.4

2.0
8.9
5.8

2.0
7.6
5.3

*

*

*

*

*

-42.4
-18 .1

-48. 0
-24.1

-48.0
- 2 3 .6

-53. 1
-25.8

-53.1
-26 .3

74.7

75. 2

74.4

81 .4

77.4

*

Transportation
Treasury
N a t i o n a l A e r o n a u t i c s and Space A d m i n i s t r a t i o n .
Veterans Administration
Other i n d e p e n d e n t a g e n c i e s :
E n e r g y S e c u r i t y Corporation 2/
E x p o r t - I m p o r t Bank
Small B u s i n e s s A d m i n i s t r a t i o n
All other independent a g e n c i e s
Less:
S e c o n d a r y g u a r a n t e e s of l o a n s that
are a l r e a d y guaranteed
Less:
G u a r a n t e e d loans held as d i r e c t l o a n s . .

2.7
21.4
3.2

2.2
19.1
2.0

*

2.1
19.1
1.5

1981 Estimate
January
Current

5.4
17.8
1.7

Defense

Health and Human Services
Housing and Urban Development

AGENCY

1/ I n c l u d e s Rural E l e c t r i f i c a t i o n
Administration
off-budget
activities
as
follows:
1979,
$6.0
billion;
1980,
$5.9 b i l l i o n in the J a n u a r y e s t i m a t e and $5.9 b i l l i o n in the
c u r r e n t e s t i m a t e ; and 1981, $6.0 billion in the J a n u a r y e s t i m a t e and $6.0 b i l l i o n
in
the
current estimate.
2/ T h i s
*

is an off-budget

$50 m i l l i o n or




less.

Federal

entity.







Part 4
THE P R E S I D E N T ' S

BUDGET

REDUCTIONS

THE PRESIDENT1S BUDGET REDUCTIONS
(In millions of dollars)

1980
Budget
Authority Outlays

198JL
Budget
Authority Outlays

Deferral or Reduction of New Initiatives
-125

-70

-601
-100
-135

-100
-89
-41

-430

-39
-110
-53

-1,000
-859

-1,000
-859

-200
-16
-143
-402

-200
-391
-110
-446

-63

-389
-575

-221
-40

-39
-100
-53

-388

-388

-2

-221

-350

-557

-4,193

-4,005

-77
(-77)
(
)
-133

-77
(-77)
(
)
-133

-1 ,045
(-417)
(-628)
-378

-1,069
(-417)
(-652)
-37b

-210

-210

-1,423

-1,447

Energy initiative:
Hold increase for low-income energy assistance to $600 million.
Biomass credit, coal research, regional storage, etc
Reduce new EDA development financing program by 75% in 1980
and 50% in 1981
Delay initiation of child health assurance program until

Delay child welfare reform
Other, including deferral of crop insurance proposal and medicaid/
medicare and social security reforms and benefit increases
Total, Deferral or reduction of new initiatives

Shift From Semi-Annual to Annual Indexing
Federal personnel retirement
Department of Defense
Civilian agencies
Food and nutrition programs




Total, Shift to annual indexing

-1,593

THE PRESIDENT'S BUDGET REDUCTIONS (continued)

General Reductions Across the Government
Higher pay raise absorption for civilian agencies
Freeze in executive salaries
Other
Allowance for contingencies
Total, General reductions across the Government.

Memorandum:
Reduction in operating expenses (equal to 2% of personnel
compensation) including effects of a personnel freeze ana a
15% reduction in consultants. Most of these decreases are
included in other listed reductions:
Department of Defense
Other
Pay raise absorption for civilian agencies, included in other
listed reductions

Other Program Eliminations, Reductions, Deferrals, and Reforms
Department of Agriculture:
Increase interest on loan programs (reduces net outlays)
Reduce water and sewer grants
Propose reform for food stamp programs
Other, including reductions in watershed construction grants,
grants to land grant colleges, and operating expenses
Department of Commerce:
Eliminate EDA section 304 program (public works grants
to States)
Other, including rescission of balances in the coastal
energy impact fund




Budget
Authority

Outlays

(
(

(
(

)
)

)
)

-150

-100

-150

-100

(
(

)
)

1981
Budget
Authority Outlays

(
(

)
)

(-60)

(-58)

-75

-D
-4

-30

-12

-63

-15

-200
(-57)
(-143)

-200
(-56)
(-144)
-101

-200

-301

(-360)
(-506)

(-360)
(-50o)

(

)

(

)

-184
-130

-127
-55
-130

-173

-130

-20

-20

-69

-7 5

l
l

THE PRESIDENT'S BUDGET REDUCTIONS (continued)
1980
Budget
Authority Outlays
Other Program Eliminations, Reductions, Deferrals, and Reforms (cont'd)
Department of Defense-Military:
Reduce aircraft and other procurement..
Reducc Navy Reserve destroyer overhauls and other
operation and maintenance costs including personnel
Other, including research, development test and evaluation.....
Corps of Engineers:
Reduce operation and maintenance on existing public works
Other, including small construction projects and
procurement and operating expenses

Department of Energy:
Defer strategic petroleum reserve purchases from June 1980
to June 1981
Reduce uranium enrichment program, including delay of gas
centrifuge plant in Portsmouth, Ohio
Other reductions in research and development, conservation,
supply, construction, and grant assistance

-714

-178

-316

-351

-114
-230

-90
-64

-593
-581

-469
-183

-68

-68

-97

-97

-150

113
-88
-128

-149

••••

Department of Education:
Reduce higher education student assistance
Reduce assistance to schools in federally affected areas
(impact aid)
Reduce elementary and secondary education
Other, including reductions in general services and assistance
programs and educational quality and reform programs

1981
Budget
Authority Outlays

-10b

-21

I
-138

-10

-105
-269

-185

-15

-124

-230

-850
-233

-63

-41

-154

-233
-282

Department of Health and Human Services:
Reduce health services grants........
Other, including local health planning and other grant
programs, and withdrawal of proposed mental health and
alcohol services supplemental




-35

-7

-89
-66

-301

-64

-553
-381

oo
I

THE PRESIDENT'S BUDGET REDUCTIONS (continued)
19b0
Budget
Authority Outlays
Other Program Eliminations, Reductions, Deferrals, and Reforms (cont'd)
Department of Housing and Urban Development:
Reduce community development block grant program
Other, including reductions in homeownership assistance
(Sec. 235), operating subsidies for troubled housing
projects, and neighborhood self-help development grants
Department of the Interior:
Reduce land purchases by the land and water conservation fund..

1981
Budget
Authority Outlays

-153
-38

-21
-14

-64

-92
-72

-1

-4

-19

-29

-251
-85

-61
-57

-347
-125

-181
-46

-28

-22

-165

-127

Other, including reductions in wildlife refugee purchases,

Department of Justice:
Eliminate law enforcement assistance grants
Other, including operating expenses

-4

Department of Labor:
Reduce countercyclical public service employment (Title VI)
irom 200,000 (proposed in January) to 149,000 service years...

-2

-394
-27

-89
-28

-182
-144

-751
-456

-500
-239

-23
-4

-150
-141
-14

-150
-100
-14

-35

-29

-28

-20

Stop paying unemployment compensation based on public service
Phase down Young Adult Conservation Corps
-4
Department of State:
Other, including deferring embassy construction and




-5

-5

I
vo
I

THE PRESIDENT'S BUDGET REDUCTIONS (continued)

Other Program Eliminations, Reductions, Deferrals, and Reforms (cont'd)
Department of Transportation:
Reduce highway obligations to $7.7 billion in 1980 and
$8.5 billion in 1981 (from $8.85 billion in both years)..
Defer certain Northeast Corridor improvements until 1981..
Defer initial delivery of low-level AMTRAK cars until 1982
Other, including reductions in operating expenses and
research and demonstration projects....

1980
Budget
Authority Outlays

1981
Budget
Authority Outlays

-20

-400
-50

-50

-135

-200

-2,285
+500

-1,714
+500

-1,785

-1,214

-80

-70

-7

-95
-7

-219

-224

-196

-196

-39

-40

-126

-8

-44

-94

-15

Department of the Treasury:
Fiscal assistance to State and local governments:
Elimination of State share of general revenue sharing.,
Proposal for transitional assistance payments
Net reduction, fiscal assistance
Other, including reductions in Treasury investment in the
National Consumer Cooperative Bank and operating expenses.
Environmental Protection Agency:
Defer most remaining 1980 funds for waste treatment plant
construction
Reduce personnel costs

-8

-6

-9

National Aeronautics and Space Administration:
Reschedule science experiments planned to fly on Spacelab
missions and reduce other programs

-10

Veterans Administration:
Reduce capital investment in VA's Department of Medicine
and Surgery and other medical program costs....
Other, including suspension of direct housing loans and
research programs
Foreign assistance and Peace Corps




-9

-6

I
oo
0
1

THE PRESIDENT'S BUDGET REDUCTIONS (continued)
1980
Budget
Authority Outlays
Other Program Eliminations, Reductions, Deferrals, and Reforms (cont'd)
Other agencies:
Reduce Export-Import Bank direct loan programs

1981
Budget
Authority Outlays

-342

-45

-513
-250

-270
-250

-1

-39

-26

-95

-5
-60

-8
-52

-74
-117

-50
-133

Total, Other program eliminations, reductions,
deferrals, and reforms...

-3,071

-1,539

-10,239

-9,246

TOTAL, ALL PROGRAM REDUCTIONS

-5,024

-2,406

-16,055

-15,000

Reduce GSA procurement and maintenance of facilities
Reduce NSF research and science activities and operating
Other reductions in smaller agencies and programs

NOTE:




This table excludes the reduced costs of interest on the public debt that result
levels.

from

lower

deficit