Ask the Scholar
Document scope · 1 page
Scholar
Ask about this object, its catalog metadata, its source description, or the page inventory.
For page-specific OCR and visual context, open one of the page chats.
Scholar Source Context
Document identity
localId
118569152
label
Budget Review Board (2)
core
doc
dtoType
document
citationUrl
pageCount
1
Source metadata
id
118569152
contentType
document
title
Budget Review Board (2)
citationUrl
identifierLocal
94
collections
Records of the Office of the Chief of Staff (Reagan Administration)
James Cicconi's Agency Files
thumbnailUrl
largeImageUrl
imageCount
1
hasImages
yes
source
import
hasTranscription
no
Source extras
naId
118569152
coverageEndDate
logicalDate
1985-12-31
year
1985
coverageStartDate
logicalDate
1981-01-01
year
1981
levelOfDescription
fileUnit
recordType
description
ocrSource
nara-archive
Single page context
seq
1
pageIndex
0
type
document
mediaId
cdd3ddfb53a256ea
ocrText
January 31, 1983
THE PRESIDENT'S BUDGET FREEZE AND REFORM PLAN
President Reagan's budget is a 4-point plan to freeze federal
spending -- taken as a whole -- in fiscal 1984 and to reduce
the deficit by $558 billion in the 5 years from fiscal 1984-88.
It provides for a 5% increase in fiscal 1984 spending over
levels for the current year. Since that is the projected
inflation rate -- the result is no increase in real terms:
The President said in his State of the Union Address the budget
must be prudent, fair, bipartisan and realistic:
This budget meets those tests:
It is prudent and based on realistic, even cautious; econ-
omic assumptions;
It has already won bipartisan acceptance on the Hill at
least as the starting point for the give and take that
always accompanies a Presidential budget request. Far from
dismissing it (as some observers predicted), Democrats and
Republicans in Congress see it as the basis for a 1984
budget resolution;
-- The budget is fair. Spending restraint is applied both to
defense and non-defense budgets. Contrary to some reports,
defense is not the only category of spending marked for
increase:
Spending for high priority domestic programs will also
rise, including Head Start (up 15%) displaced worker
programs (380%) law enforcement (10%) ; foster care (11%);
VA medical care (11%) and others.
Defense spending will be sufficient to meet the
President's goal of restoring our deterrent capability,
but Secretary Weinberger did recommend $55 billion in
savings that could be made without putting that goal in
jeopardy and the President accepted that recommendation.
The 4-point plan provides in part for:
A 1-year freeze on federal pay and retirement (civilian and
military) along with a 6-month freeze on Social Security
COLAs (as recommended by the bipartisan SS commission) and
related COLAs.
Needs-tested entitlements reform to continue the effort to
better target federal benefits to the truly needy while
holding down costs in areas like health care;
Defense savings of $55 billion ($47 billion in outlays)
while protecting vital restoration of the U.S. deterrent.
-- A deficit insurance policy through a standby-tax equivalent
to 1% of taxable income to be imposed in fiscal 1986-88 only
if the economy is growing, the budget freeze and reforms
have been adopted and the projected '86 deficit exceeds
2.5% of GNP.
Other items of interest
Clean Air -- EPA will today announce preliminary finding that
113 counties are out of compliance. Not final determinations,
these are subject to comment and review. Only after review
will decision be made whether to apply sanctions (federal funds
cut-off) as provided under the law. EPA plans to work with
affected states to help bring them into compliance and; if
possible, avoid imposition of sanctions.
Truckers strike -- DOT will handle all inquiries; other
agencies should refer questions to Transportation.
WHITE HOUSE TALKING POINTS
February 1, 1983
FAIRNESS OF THE PRESIDENT'S BUDGET REQUEST
(Talking Points)
Though total federal spending is virtually frozen in the
President's budget, it does propose spending increases for high
priority domestic programs -- not just the defense budget.
Spending for the elderly, for example, will increase substan-
tially -- rising to $234 billion in fiscal 1984. This includes
retirement and income support programs, health care, nutrition
and housing assistance, among others.
While some program changes are proposed, the budget requests
increased levels of spending in fiscal 1984 (over fiscal 1983)
for such programs as Medicaid and subsidized housing for the
needy. In addition, spending for other domestic programs
increases in the President's budget. For example:
-- Head Start (up 15%) ;
-- Foster Care (up 11%) ;
-- Veterans Medical care (up 11%) ;
-- Displaced workers (up 380%).
The proposed changes in entitlement programs will have little
or no effect on typical beneficiaries -- but will, as have
previous reforms, be designed to target benefits more precisely
to those in true need.
The fiscal 1984 budget continues to maintain the social safety
net for low-income needy and the jobless. Spending for pro-
grams to assist them will total $92.7 billion in fiscal 1984,
up almost $15 billion -- or almost 20 percent -- from 1981.
Even after adoption of proposed COLA freezes and system
reforms, federal pension spending (for civil servants and
social security) will rise.
For additional information. call the White House Office of Public Affairs:
Mike Baroody, Director: 456-7170.
3
THE SECRETARY OF DEFENSE
OF DIFENSE
WASHINGTON, THE DISTRICT OF COLUMBIA
UNITED STATES OF AMERICA
19 SEP 1983
MEMORANDUM FOR MEMBERS OF THE BUDGET REVIEW BOARD
SUBJECT: Development of Fiscal Year 1985 Budget Proposals
This addresses your memorandum of August 30 requesting
summary budget data for the Department of Defense based on the
FY 1985 budget submission for the years FY 1984 to FY 1989. The
Military Departments and the Defense Agencies are scheduled to
input their respective FY 1985 budget requirements based on my
summer program review decisions to this office on September 15.
This conforms with the OMB approved schedule for the joint budget
review of the FY 1985 submission.
As you know, the OMB staff has for several years partici-
pated jointly with the OSD staff in a comprehensive evaluation
of the defense submission during the fall budget review. This
will, of course, start on September 15 and OMB will be receiving
the necessary budgetary information at the same time as my staff
does.
Since it will take some time thereafter to compile all the
data requested for your analysis, I am transmitting the presiden-
tially approved topline levels presented this past January,
amended to incorporate the Scowcroft Commission recommendations.
As the fall budget review progresses, we will keep the OMB staff
up-to-date with the data you request. The review will continue
through November, resulting in program mix changes, scheduling
and program execution changes, further congressional action,
pricing and any changes in the basic economic assumptions finally
proposed in the President's budget.
It is important in the case of the Defense budget to consider
the distinction between discretionary programs, entitlement and
mandatory programs, and all other budgeted items. This is the
case because of the longstanding practice of the Congress to
employ the concept of full funding when dealing with most defense
investments. This policy governs DoD requests for budget authority
in all procurement and much of the construction program. It
requires us to include in such requests all costs, thus making
the best estimate up-front of what is needed to complete the
program over the several years that it takes to place the program
in our force structure. Once such funding has been appropriated
by the Congress, the policy does not require that all funds be
obligated immediately. The obligation and expenditure of these
funds are based on long leadtimes. These amounts are neither
entitlements nor discretionary programs and therefore are counted
2
in the "all other" category of the required format. At the same
time one must be aware of the need for this funding in order to
meet the President's established national security goals and to
meet the congressionally approved program goals.
Also, it is a key aspect of this Administration's defense
buildup to invest in defense programs utilizing such concepts as
economic production rates, multiyear procurements and budgeting
to most likely costs. These procedures can add budget authority
initially that will in turn lead to much lower total acquisition
costs and create more savings than would otherwise be achieved.
After congressional action on the FY 1984 Defense budget is
completed and signed into law, we will have the additional informa-
tion to complete deliberations on the FY 1985 budget submission
consistent with meeting the President's goals for our national
defense.
Enclosure
Sm.
&
FY 1984 Amended President's Budget
Department of Defense
(in billions of dollars)
FY
FY
FY
FY
FY
FY
1984
1985
1986
1987
1988
1989
Discretionary Programs
Budget Authority
(Military & Civilian Pay Raises)
-
4.3
8.2
12.5
17.3
N/A
Outlays
(Military & Civilian Pay Raises)
-
4.3
8.2
12.5
17.3
N/A
Entitlement and Mandatory Programs Target Levels
Budget Authority
(Total DoD Pay Base)
82.0
85.1
87.0
88.3
89.9
N/A
Outlays
(Total DoD Pay Base)
82.0
85.1
87.0
88.3
89.9
N/A
(FY 83 & Prior Year Contracts)
84.3
39.1
16.1
8.7
5.3
N/A
All Other
Budget Authority
(Non-pay DoD Programs)
190.0
232.2
261.2
287.5
317.1
N/A
Outlays
(Post FY 83 Prior Year Spending)
-
62.7
109.9
135.4
153.0
N/A
(Current Year Spending)
71.8
85.8
93.5
100.6
111.5
N/A
Total, Department of Defense
Budget Authority
272.0
321.6
356.4
388.3
424.3
N/A
Outlays
238.1
277.0
314.7
345.5
377.0
N/A
Enclosure
THE WHITE HOUSE
Budget Bd
WASHINGTON
CABINET AFFAIRS STAFFING MEMORANDUM
DATE: July 14, 1983
NUMBER:
073491CA
DUE BY:
--
SUBJECT: BUDGET REVIEW BOARD MEETING: Consideration of USDA and Treasury
Requests to Increase FY 1983 Export Credit Guarantee Level
ACTION FYI
ACTION FYI
ALL CABINET MEMBERS
Baker
Vice President
Deaver
State
Clark
Treasury
Darman (For WH Staffing)
Defense
Attorney General
Harper
Interior
Jenkins
Agriculture
Duberstein
Commerce
Labor
Rollins
HHS
HUD
Transportation
Energy
Education
Counsellor
OMB
CIA
UN
USTR
CCCT/Gunn
CCEA/Porter
CCFA/Boggs
CEA
CCHR/Carleson
CEQ
OSTP
CCLP/Uhlmann
CCMA/Bledsoe
CCNRE/Boggs
REMARKS:
Attached are materials for discussion in a Budget Review Board meeting
scheduled for Wednesday, July 20. The meeting will be held in the
Roosevelt Room at 4 pm for 30 minutes. Please contact Karen Hart
at 456-2823 should you have any questions.
Thanks.
RETURN TO:
Craig L. Fuller
Becky Norton Dunlop
Assistant to the President
Director, Office of
for Cabinet Affairs
Cabinet Affairs
456-2823
456-2800
OFFICE WTM PRESIDENT STATES UNITED
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
July 13, 1983
MEMORANDUM FOR: EDWIN MEESE III
JAMES A. BAKER III
DAVID A. STOCKMAN
FROM:
FREDERICK N. KHEDOUR
ALTON G. KEEL, JR.
SUBJECT:
Budget Review Board Consideration of USDA and
Treasury Requests to Increase FY 1983 Export
Credit Guarantee Level
Background:
-- The Department of Agriculture has submitted a request for
an increase in FY 1983 export credit guarantees of $668.7
million.
-- This increase would be used for blended credits to a
tentative list of eleven countries: Iraq, Indonesia,
Algeria, Jordan, Peru, Ecuador, Venezuela, Lebanon, Egypt,
Turkey, and Syria.
-- The Treasury, on behalf of itself and State, has requested
an increase of $500 million in export credit guarantees
for FY 1983 for loans to Mexico that would augument prior
credits in FY 1983 of $1.2 billion from CCC and $300
+ 1
million from Ex-Im.
-- This increase would be characterized as an "advance" on
the FY 1984 commitment made by the U.S. as part of the
current multilateral Mexican debt agreements.
-- With these two requests -- totaling $1168.7 million --
USDA export credit guarantees would reach $6.32 billion
for FY 1983; this represents an increase of 175 percent
over the FY 1982 level of $2.4 billion.
-- We have already increased this authority four times; three
times at USDA request and once at Treasury request to
accommodate special assistance to Mexico.
(millions)
Budget Table:
1983
USDA
Treasury
USDA &
1981 1982 (current) Request Request Treasury
Export Credit
Guarantees
$1,500 $2,400 $5,150
$5,819
$5,650
$6,319
2
Justification for Increase (USDA):
-- Would permit utilization of remaining direct lending
authority for additional blended credit sales.
-- Shortfall is the result of USDA's success at increasing
ratio of guarantees to direct loans (i.e., reducing subsidy
level on each transaction) and it would be unfair to
penalize them.
-- Additional credits would presumably increase U.S. export
sales.
Justification for Increase (Treasury):
-- Government of Mexico believes that additional food and
feedgrain imports are essential before end of this fiscal
year; guarantees will be used for purchases already
tentatively committed.
-- U.S. embassy concurs in evaluation of dangerously low stock
levels for important grains.
-- Mexico will be unable to finance these imports without CCC
guarantees.
OMB Recommendation:
-- We recommend that both requests be denied.
Arguments Against USDA Request:
-- USDA voluntarily elected to dispose of its guarantee
authority for sales other than blended credit; thus the
"shortfall" in guarantees is entirely of their own making
and by itself no justification for an increase.
-- Some of the proposed transactions involve high risk loans
that may well default, ultimately creating huge budget
outlays.
-- USDA appears to operate on the premise that if they spend
all of their guarantees before the end of the fiscal year,
they automatically get an increase; this approach is
antithetical to fundamental notions of budget discipline.
-- None of the proposed blended credit sales represent efforts
to counter EC subsidies, which was the intended purpose for
which the President authorized creation of the program last
year.
3
Arguments Against Treasury Request:
-- Although characterized as an "advance" on the FY 1984
commitment, the provision of these guarantees will
inevitably be followed by an additional amount in FY 1984
above and beyond current commitments.
-- There is no clear evidence that Mexico is unable to
reallocate existing credit resources to cover essential food
imports.
-- Mexico just rejected use of $1.1 billion in private bank
credits; by demanding CCC guarantees, they appear to simply
be "shopping" for the cheapest loan.
GE 7b
7/19/83
Proposed Credit Sales Classified by Country and Purpose
$ M
0 Meet Direct Foreign Subsidized Competition
Algeria
Wheat and dry edible beans
$42.5
Jordan
Wheat and rice
58.0
Lebanon
Barley
1.5
Total
102.0
0 Develop Total Markets
Turkey
Soybeans
11.5
Syria
Rice
34.0
Total
45.5
o Expand Export Markets
Indonesia
Corn, rice and soybeans
108.2
Algeria
Corn
10.0
Peru
Wheat, soybean oil and corn
104.2
Ecuador
Rice, lentils and seeds
9.3
Egypt
Wheat
24.0
Syria
Wheat, corn, and soybean meal and oil
103.7
Unallocated
Unspecified
20.0
Total
379.4
o Maintain Market/Balance of Payments
Indonesia
Cotton and wheat
50.5
Ecuador
Wheat, other
6.4
Venezuela 1/
Corn/sorgum, soybean meal, wheat,
vegetable oils, seed potatoes
308.0
Mexico 1/
Grains and other
500.0
Lebanon
Corn and soybeans
31.0
Total
895.9
Grand Total
1,422.8
17 Guarantees only
GE 7a
5/19/83
BLENDED CREDITS -- PURPOSES
SUMMARY
Extended Thus
USDA
Treasury
Total, including
Far
Request
Request
Requests
Purpose*
$M
%
$M
%
$M
%
$M
%
1. Compete with foreign subsidies
337
21%
102
11%
--
--
439
15%
2. Develop export markets
427
27%
46
5%
:
--
473
16%
3. Expand export markets
533
34%
379
41%
--
--
912
30%
4. Maintain markets/balances of
payments
280
18%
396
43%
500
100%
1,176
39%
Total
1,577
100%
923
100%
500
100%
3,000
100%
* As defined by USDA:
- Compete with foreign subsidies by displacing subsidized sales of foreign competitors.
- Develop export markets by initiating U.S. exports to a foreign country.
- Expand export markets by increasing U.S. exports to a foreign country.
-
Maintain markets/balances of payments by helping a foreign country's financial status or
cash flow.
Attached are:
o
Proposed credits by country and purpose.
o
Blended credits extended thus far by country and purpose.
GE 7c
5/25/83
NRD/DD
Blended Credits Extended Thus Far in FY 83
By Purpose, By Country
($ in millions)
1. Compete with Foreign Subsidies
(country displaced in parentheses)
Egypt
veg. oil (Brazil)
25
Iraq
corn & barley (EC)
28
Jamaica
wheat flour (EC)
1
Morocco
wheat (France)
140
rice (Spain & Italy)
8
Portugal
wheat (EC)
20
Tunisia
wheat (EC)
50
livestock (EC)
5
Yugoslavia
cotton (USSR)
60
Total
337
2. Develop export markets
Brazil
wheat
120
Egypt
wheat
55
lumber
6
Iraq
rice
160
seed corn
5
Phillipines
wheat
18
Yemen
wheat
55
rice
8
Total
427
PAGE 7c (cont)
3. Expand export markets
Brazil
wheat
40
Chile
wheat
109
Egypt
corn
40
tobacco
30
tallow
5
semen
2
Iraq
wheat
197
eggs
30
Jamaica
soybeans
8
lumber
7
rice
1
Pakistan
soy oil & meal
25
Phillipines
corn
18
Portugal
cotton
5
Thailand
soy oil & meal
10
Tunisia
corn
6
Total
533
4. Maintain markets/balances of payments
Bangladesh
wheat
28
Dominican Republic
hogs & wheat
3
Egypt
corn
30
Iraq
soy meal & protein
20
Jamaica
corn
4
Korea
cotton
50
corn
10
wheat
42
soybeans
28
Portugal
grains
30
soybeans
15
Thailand
cotton
20
Total
280
GRAND TOTAL
1,577
4/2
3
NRD
Countries Receiving CCC Export Credit and On Treasury's
PAGES
Watch List of Economically Troubled Countries
Credit Extended in Year:
($ in millions)
Country
1981
1982
1983
Request
Total
A. Costa Rica
4
16
2
--
22
Poland
639
26
--
--
665
Romania
26
24
--
--
50
Sierra Leone
1
--
--
--
1
Sudan
30
--
--
--
30
Zambia
--
--
--
8
8
B. Dominican Republic
28
60
4
10
102
Guatemala
- -
1
--
--
1
Mexico
--
--
1,200
--
1,200
Morocco
51
76
198
--
325
C. Chile
--
--
145
:
145
Egypt
- -
--
310
5
315
Haiti
- -
--
8
--
8
Honduras
1
--
3
--
4
Jamaica
17
34
67
--
118
Nigeria
--
2
--
128
130
Peru
108
44
148
104
404
Yugoslavia
- -
--
235
--
235
D. Bangladesh
--
--
43
:
43
Brazil
198
283
415
30
926
Ecuador
--
--
65
16
81
El Salvador
14
27
24
--
65
Hungary
--
--
42
--
42
Indonesia
--
--
--
160
160
Iraq
--
--
440
90
530
Ivory Coast
--
--
:
8
8
Jordan
--
--
:
58
58
Pakistan
15
51
85
:
151
Panama
--
- -
9
6
15
Philippines
--
--
40
13
If
Venezuela
--
--
11
319
330
Total Principal
1,132
644
3,494
955
6,225
Total Liability
1,200
683
3,750
1,012
6,645
Document No.
WHITE HOUSE STAFFING MEMORANDUM
DATE: March 28
ACTION/CONCURRENCE/COMMENT DUE BY:
BUDGET REVIEW BOARD MEETING RE JOBS BILL OFFSETS
SUBJECT:
ACTION FYI
ACTION FYI
VICE PRESIDENT
GERGEN
MEESE
HARPER
BAKER
JENKINS
DEAVER
MURPHY
STOCKMAN
ROLLINS
CLARK
WHITTLESEY
DARMAN
P
SS
WILLIAMSON
DUBERSTEIN
VON DAMM
FELDSTEIN
BRADY/SPEAKES
FIELDING
ROGERS
FULLER
Remarks:
The attached paper, prepared by OMB, is background for the
10:30 and 4:00 BRB meetings tomorrow, March 29th.
Richard G. Darman
Assistant to the President
(x2702)
Response:
FISCAL YEAR 1984 OFFSETS TO JOBS BILL (H.R. 1718) INCREASES
(Budget Authority in Millions)
DEPARTMENT OF HEALTH AND HUMAN SERVICES
HEALTH BLOCK GRANTS
New FY 1984
Fiscal
Fiscal Year 1983
Fiscal Year 1984
Change
Year
Continuing
New
Pending
Proposed
New
From
1982
Resolution
Jobs Bill
FY 1983
Request
Offset
FY 1984
New FY 1983
OMB PROPOSALS:
Health Block Grants
1,333
1,362*
+205
1,567
1,362
-205
1,157
-410
HHS PROPOSALS:
Health Block Grants:
Primary Care (CHCs, etc.)
449
461
+70
531
461
0
461
-70
Maternal & Child Health
374
374
+105
479
374
0
374
-105
Alcohol, Drug Abuse and
Mental Health
428
440
+30
470
440
0
440
-30
Prevention
82
86
0
86
86
0
86
0
Total, Health Blocks
1,333
1,362*
+205
1,567
1,362
0**
1,362
-205
*
OMB's FY 1983 number of $1,196 million includes only Community Health Centers and excludes categoricals proposed for inclusion in the Primary Care
Block Grant in FY 1984 (Migrant Health - $38. 1m; Family Planning - $124. 1m; Black Lung Clinics - $3.1m).
**
If of fsets must be taken, HHS recommends that they be taken in the Social Services Block Grant.
OFFSETTING OUTYEAR REDUCTIONS TO JOBS BILL ADD-ONS
(in millions of dollars)
Agency: HHS
Program: Health Block Grants
1983
1984
1985
1986
1987
1988
1983-88
1) President's Budget
Budget authority
1,196
1,362
1,362
1,362
1,362
1,362
8,006.0
Outlays
1,119
1,303
1,362
1,362
1,362
13,62
7,870.0
2) Jobs bill add-on
Budget authority
+205.0
---
---
---
---
---
+205.0
Outlays
+104.5 +100.5
---
---
----
----
+205.0
3) OMB recommendation
Budget authority
---
-205.0
---
---
---
---
-205.0
Outlays
--- -122.6 -82.4
----
---
---
-205.0
4) Agency recommendation
Budget authority
No offsets recommended.
Outlays
OMB Position
Agency Position
o Implements President's offset policy.
O No offsets recommended. If offsets
must be taken, however, HHS recommends
o President's FY 1984 Budget combines 4 block
that offsets be taken in the Social
grants -- Primary Care; Maternal and Child
Services Block Grant account.
Health; Alcohol Drug Abuse and Mental Health;
and Preventive Health and Health Services --
which are separate accounts in FY 1983.
The latter 3 block grants are included in the
President's New Federalism package.
o As a practical matter, increased FY 83 budget
authority will largely be spent in FY 84 and a
stronger economy will reduce the need for
continuing high budget authority in FY 1984
March 29, 1983
275:115,78
OFFSETTING OUTYEAR REDUCTIONS TO JOBS BILL ADD-ONS
(in millions of dollars)
Agency:
HHS
Program: Social Services Block Grant and Community Services Block Grant
1983
1984
1985
1986
1987
1988
1983-88
1) President's Budget
Budget authority
2,804
2,503
2,600
2,700
2,700
2,700
16,007
Outlays
2,930
2,599
2,600
2,900
2,700
2,700
16,229
2) Jobs bill add-on
Budget authority
225.0
---
---
-----
-----
---
225.0
Outlays
170.0
55.0
---
---
---
---
225.0
3) OMB recommendation
Budget authority
---
-250.0
---
-------
---
---
-250.0
Outlays
---
-173.8
-76.3
---
---
---
-250.0
4)
Agency recommendation
Budget authority
---
-212.0
-212.0
----
----
-----
-424.0
Outlays
---
-147.0
-212.0
-65.0
---
---
-424.0
OMB Position
Agency Position
O Implements President's offset policy.
O No offsets recommended. If offsets must
be taken, HHS recommends offsets against
O Includes $25 million for the Community
the Social Services Block Grant.
Services Block Grant.
O These programs are low priority and a
stronger economy will reduce the need for
continuing high budget authority in FY 84.
March 29, 1983
89:115,78
FISCAL YEAR 1984 OFFSETS TO JOBS BILL (H.R. 1718) INCREASES
(Budget Authority in Millions)
DEPARTMENT OF HEALTH AND HUMAN SERVICES
HEALTH BLOCK GRANTS
New FY 1984
Fiscal
Fiscal Year 1983
Fiscal Year 1984
Change
Year
Continuing
New
Pending
Proposed
New
From
1982
Resolution
Jobs Bill
FY 1983
Request
Offset
FY 1984
New FY 1983
OMB PROPOSALS:
Health Block Grants
1,333
1,362*
+205
1,567
1,362
-205
1,157
-410
HHS PROPOSALS:
Health Block Grants:
Primary Care (CHCs, etc.
)
449
461
+70
531
461
0
461
-70
Maternal & Child Health
374
374
+105
479
374
0
374
-105
Alcohol, Drug Abuse and
Mental Health
428
440
+30
470
440
0
440
-30
Prevention
82
86
0
86
86
0
86
0
Total, Health Blocks
1,333
1,362*
+205
1,567
1,362
0**
1,362
-205
*
OMB's FY 1983 number of $1,196 million includes only Community Health Centers and excludes categoricals proposed for inclusion in the Primary Care
Block Grant in FY 1984 (Migrant Health - $38. 1m; Family Planning - $124.1m; Black Lung Clinics - $3.1m).
** If offsets must be taken, HHS recommends that they be taken in the Social Services Block Grant.
OFFSETTING OUTYEAR REDUCTIONS
TO JOBS BILL ADD-ONS
I TABLE
SUMMARY
AND
SUMMAR TABLE 1
OFFSETTING OUTYEAR REDUCTIONS TO JOBS BILL ADD-ONS 1/
(in millions of dollars)
1983
1984
1985
1986
1987
1988
1983-88
1) Total in Title I:
Budget authority
4,598.9
---
---
---
---
---
4,598.8
Outlays
1,781.5
2,355.5
1,293.5
414.0
208.0
41.0
6,093.5
2) No offsets possible:
Budget authority
583.5
---
---
---
---
---
583.5
Outlays
208.4
208.7
78.5
53.7
28.2
6.0
583.5
3) OMB and agencies agree:
Amount in bill:
Budget authority
2,134.4
----
----
---
---
----
2,134.3
Outlays
1,158.6
1,266.0
443.5
161.6
101.1
-49.0
3,081.6
Amount offset:
Budget authority
---
-665.6
-346.9
-84.9
-93.0
-21.0 -1,211.4
Outlays
---
-158.4
-322.1
-361.1
-335.9
-290.1 -1,467.6
4) OMB and agencies differ:
Amount in bill:
Budget authority
+1,881.0
---
---
---
---
--- +1,881.0
Outlays
414.5
880.8
771.5
198.7
78.7
84.0
2,428.4
OMB recommendation:
Budget authority
----
-1,686.6
+32.7
-66.7
-59.7
-37.0 -1,817.3
Outlays
-62.0
-369.9
-673.9
-733.0
-271.5
-209.5 -2,319.8
Agency recommendation:
Budget authority
-50.0
+1.5
-258.5
-38.0
-33.0
-10.0
-388.0
Outlays
---
-151.3
-220.8
-77.6
-21.0
+41.0
-387.7
1/ Includes budget authority resulting from overturn of subsidized housing deferral.
March 28, 1983
500:115,78
II TABLE
SUMMARY
SUMMARY
OFFSETTING OUTYEAR REDUCTIONS TO JOBS BILL ADD-ONS 1/
(in millions of dollars)
1983
1984
1985
1986
1987
1988
TOTAL
Total in bill:
Budget authority
4,598.9
---
--
---
---
---
4,598.8
Outlays
1,781.5
2,355.5
1,293.5
414.0
208.0
41.0
6,093.5
Proposed offsets:
OMB:
Budget authority
-----
-2,319.9
-452.9
-154.4
-154.5
-68.0
-3,149.7
Outlays
---
-717.9
-1,141.5
-1,207.5
-602.2
-460.9
-4,130.0
Agencies:
Budget authority
-55.0
-498.3
-565.4
-132.9
-136.0
-41.0
-1,428.6
Outlays
-0.2
-377.4
-591.2
-496.4
-370.0
-277.3
-2,112.5
Net amounts added:
OMB recommendation:
Budget authority
4,598.9
-2,319.9
-452.9
-154.4
-154.5
-68.0
-1,449.1
Outlays
1,781.5
1,637.6
152.0
-793.5
-394.2
-419.9
1,963.5
Agencies:
Budget authority
4,543.9
-498.3
-565.4
-132.9
-136.0
-41.0
3,170.2
Outlays
1,781.3
1,978.1
702.3
-82.4
-162.0
-236.3
3,981.0
1/ Excludes subsidized housing.
March 28, 1983
165:115,78
LABOR
OFFSETTING OUTYEAR REDUCTIONS TO JOBS BILL ADD-ONS
(in millions of dollars)
Agency:
Labor
Program:
Dislocated workers
1983
1984
1985
1986
1987
1988
1983-88
1.
President's Budget
Budget authority
25.0
240.0
240.0
240.0
240.0
240.0 1,225.0
Outlays
6.2
198.8
240.0
240.0
240.0
240.0 1,165.0
2.
Jobs bill add-on
Budget authority
85.0
---
----
---
----
85.0
Outlays
21.3
63.8
---
---
---
---
85.0
3.
OMB recommendation
Budget authority
I
22.5
---
---
---
---
-22.5
Outlays
---
22.5
---
---
---
---
-22.5
4.
Agency recommendation
Budget authority
Outlays
No offset recommended.
OMB Position
Agency Position
Implements President's offset policy.
Public commitment to $240 level.
Maintains President's announced program
level for 1984, since outlays reflect
The dislocated worker problem will not
actual services provided.
disappear and may get worse as technology
Avoids 1984 outlay bulge and maintenance of
advances; commitment should be maintained.
steady state $240M program level proposed for
1985-88.
Congressional priority.
1983 addition should be viewed as a form of
advance funding since the extra resources
cannot be spent in this year.
Even with offset, 1983-88 spending will be
$63M more than originally proposed.
OFFSETTING OUTYEAR REDUCTIONS TO JOBS BILL ADD-ONS
(in millions of dollars)
Agency:
Labor
Program: Job Corps
1983
1984
1985
1986
1987
1988
1983-88
1.
President's Budget
Budget authority
585.6
585.6
585.6
585.6
585.6
585.6 3,513.6
Outlays
605.4
588.6
585.6
585.6
585.6
585.6 3,536.4
2. Jobs bill add-on
Budget authority
32.4
------
----
----
---
---
32.4
Outlays
6.0
26.4
----
----
---
---
32.4
3.
OMB recommendation
Budget authority
----
32.4
----
----
---
-32.4
Outlays
----
26.9
5.5
---
---
-32.4
4. Agency recommendation
Budget authority
Outlays
No offset recommended.
OMB Position
Agency Position
Implements President's offset policy.
Add-on was intended to support increased
Addition would create few new enrollments
slot levels. DOL had supplied Congress
in 1983; Job Corps is now at 105% of capacity.
estimates of how slot levels could be
Expansion would not be completed until
increased with the add-on.
next year and would create a permanent
increase in budget costs.
Actual construction budgeted for 1984 is
1984 capital budget is $32.2M. DOL has a
limited and cannot be accelerated; a full
5-year capital plan from which it can choose
offset will result in a reduction of slot
projects that can be accelerated. If for
levels below 1983.
some reason some 1984 projects cannot be
accelerated into 1983, we could consider
putting part of the offset into 1985 or
1986.
OFFSETTING OUTYEAR REDUCTIONS TO JOBS BILL ADD-ONS
(in millions of dollars)
Agency:
Labor
Program: Community Service Employment for Older Americans
1983
1984
1985
1986
1987
1988
1983-88
1. President's Budget
Budget authority
282
consolidated grant in HHS
282.0
Outlays
278
211.5
489.5
2. Jobs bill add-on
Budget authority
37.5
---
---
----
---
---
37.5
Outlays
9.4
28.1
----
-----
---
---
37.5
3. OMB recommendation
Budget authority
The added 1983 BA will be offset completely from the recommended
Outlays
appropriation for Human Development Services Administration on
Aging.
4. Agency recommendation
Budget authority
Outlays
No offset recommended.
OMB Position
Agency Position
Implements President's offset policy.
DOL states offset in conflict with
assurances OMB gave to Secretary of Labor
States will have the flexibility to use
that the consolidation would not result
resources in the consolidated program
in a program decrease.
to finance these programs according to
local needs and on varying financing
HHS objects to the offset but would accept
schedules; an offset to the total does not
it as a fall-back position.
necessarily mean a reduction in program
level.
See sheet on HHS, Human Development
Services, Administration on Aging.
AGRICULTURE
OFFSETTING OUTYEAR REDUCT NS TO JOBS BILL ADD-ONS
(in millions of dollars)
Agency:
Agriculture
Program: Rural water and waste disposal grants
1983
1984
1985
1986
1987
1988
1983-88
1) President's Budget
Budget authority
125.0
90.0
90.0
90.0
90.0
90.0
575.0
Outlays
207.5
165.0
144.6
108.0
99.3
93.0
817.4
2) Jobs bill add-on
Budget authority
150.0
150.0
Outlays
6.0
48.0
49.0
22.5
13.5
6.0
145.0
3) OMB recommendation
Budget authority
-30.0
-30.0
-30.0
-30.0
-30.0
-150.0
Outlays
-1.2
-10.8
-20.0
-25.1
-27.8
-84.9
4) Agency recommendation
Budget authority
No offset recommended.
Outlays
OMB Position
Agency Position
Implements President's offset policy.
Offsets for 84 and outyears are
inconsistent with levels recommended for
Assures rural communities of the same total
this program in the New Federalism
level of assistance over the 83-88 period as
initiative for FY 84-88.
provided in the New Federalism initiative.
Contravenes commitments to rural
The rural passthrough for this program under
communities on funding levels thereby
the New Federalism proposal continues to treat
risking a loss of support for the New
program like a categorical program.
Federalism initiative.
Consequently, States don't really lose any
funding flexibility as a result of this action.
March 28, 1983
27:115,78
OFFSETTING OUTYEAR REDUCTIONS TO JOBS BILL ADD-ONS
(in millions of dollars)
Agency: Agriculture
Program: Rural development insurance fund (water and sewer loans)
1983
1984
1985
1986
1987
1988
1983-88
1) President's Budget
Budget authority
(350.0) (350.0) (350.0) (350.0) (350.0)
Outlays
2) Jobs bill add-on
Budget authority
450.0
---
---
---
---
---
450.0
Outlays
45.0
135.0
135.0
67.5
45.0
18.0
445.5
3) OMB recommendation
Budget authority
---
(-90.0)
(-90.0)
(-90.0)
(-90.0)
(-90.0)
(-450.0)
Outlays
----
-9.0
-36.0
-63.0
-76.5
-85.5
-270.0
4) Agency recommendation
Budget authority
No offset recommended.
Outlays
OMB Position
Agency Position
o Implements President's offset policy.
o Offsets for 84 and outyears are
inconsistent with levels recommended for
o Assures rural communities of the same total
this program in the New Federalism
level of assistance over the 83-88 period as
initiative for FY 84-88.
provided in the New Federalism initiative.
o Contravenes commitments to rural
o The rural passthrough for this program under
communities on funding levels thereby
the New Federalism proposal continues to
risking a loss of support for the New
treat program like a categorical program.
Federalism initiative.
Consequently, States don't really lose any
funding flexibility as a result of this action.
March 28, 1983
139:115,78
OFFSETTING OUTYEAR REDUC IONS TO JOBS BILL ADD-ONS
(in millid
of dollars)
Agency: Agriculture
Program: Watershed and flood prevention
1983
1984
1985
1986
1987
1988
1983-88
1) President's Budget
Budget authority
96.6
101.6
101.6
101.6
101.6
Outlays
2) Jobs bill add-on
Budget authority
107.5
---
---
---
----
---
107.5
Outlays
28.8
53.8
25.0
---
---
---
107.5
3) OMB recommendation
Budget authority
---
-50.0
-19.2
-19.2
-19.2
---
-107.5
Outlays
---
-13.4
-30.1
-26.3
-19.2
-14.0
-103.0
4) Agency recommendation
Budget authority
---
-15.0
-20.0
-20.0
-20.0
---
-75.0
Outlays
---
-7.5
-17.5
-20.0
-20.0
-10.0
-75.0
OMB Position
Agency Position
o Implements President's offset policy.
Limit offset to new construction. Don't
offset rehabilitation of existing
o Concur with no offset for emergency
facilities ($25M), and emergency work
restoration ($7.5M).
restoring flood damage ($7.5M).
o Oppose using any funds for rehabilitation of
O Phaseout construction offset evenly
existing projects - not currently authorized
thereby avoiding a construction dip in
and could set a costly precedent for the
FY 84.
future; use the $25M instead for authorized
new construction.
o Only about one-half of the $100M increase
for FY 83 will likely be obligated in 83.
Consequently the FY 84 recommended offset
should not cut the $96M budgeted level.
March 28, 1983
73:115,78
1
OFFSETTING OUTYEAR REDUCTIONS TO JOBS BILL ADD-ONS
(in millions of dollars)
Agency: Agriculture
Program:
WIC
"Whip Inflation Completely
1983
1984
1985
1986
1987
1988
1983-88
1) President's Budget
Budget authority
1,092.6 1,092.6 1,092.6 1,092.6 1,092.6 1,092.6
Outlays
1,117.7 1,093.2 1,092.6 1,092.6 1,092.6 1,092.6
2) Jobs bill add-on
Budget authority
100.0
-----
------
-------------------------
------
---
100.0
Outlays
91.8
8.2
---
---
---
---
100.0
3) OMB recommendation
Budget authority
---- -100.0
---
---
---
---
-100.0
Outlays
---
-91.8
-8.2
----
---
---
-100.0
4)
Agency recommendation
Budget authority
No offset recommended.
Outlays
OMB Position
Agency Position
O Implements President's offset policy.
O No offset recommended. An 84 offset
would further reduce participation levels.
The FY 83 add-on was intended to
supplement WIC funds, not accelerate
scheduled 84 spending.
March 28, 1983
66:115,78
HUD
OFFSETTING OUTYEAR REDUCTIONS TO JOBS BILL ADD-ONS
(in millions of dollars)
Agency Department of Housing and Urban Development
Program: Community Development Block Grants
1983
1984
1985
1986
1987
1988
1983-88
(1) President's Budget:
Budget authority
4,456.0
3,500.0
3,500.0
3,500.0
3,500.0
3,500.0
21,956.0
Outlays
3,545.0
3,906.0
4,004.0
3,567.0
3,500.0
3,500.0
22,022.0
(2) Jobs Bill Add-On:
2
250
250
250
Budget authority
1,000.0
--
1,000.0
Outlays
20.0
380.0
530.0
70.0
--
I
1,000.0
(3) OMB Recommendation:
Budget authority
--
-1,000.0
--
|
--
--
-1,000.0
Outlays
--
-20.0
-380.0
-530.0
-70.0
--
-1,000.0
(4) Agency Recommendation:
Budget authority
No offset recommended.
Outlays
OMB Position
Agency Position
Implements President's offset policy.
A $1 billion cut undermines President's New
Federalism initiatives because the proposed
Offset does not undermine commitment to States
legislation would freeze CDBG funding at 1984
and localities; merely provides part of 1984
levels.
funding one year ahead of time.
Also undermines 1984 budget proposals for CDBG
Current deficits need to be reduced -- not
that:
augmented by $1 billion. This is key to
long-term recovery.
a) make housing construction a new eligible
activity, and
b) mandate State assumption of State position of
CDBG program (this is currently voluntary).
Mayors and Governors will be outraged and accuse
Administration of betraying commitment to cities
and States.
OFFSETTING OUTYEAR REDUCTIONS TO JOBS BILL ADD-ONS
(in mill
of dollars)
Agency: Department of Housing and Urban Development
Program: Urban Development Action Grants
1983
1984
1985
1986
1987
1988
1983-88
(1) President's Budget:
Budget authority
440.0
196.0
440.0
440.0
440.0
440.0
2,396.0
Outlays
500.2
548.6
491.2
439.0
414.0
379.0
2,772.0
(2) Jobs Bill Add-On:
Budget authority
(244.0)
--
--
--
--
--
.....
(244.0)
Outlays
12.2
36.6
12.2
--
--
-61.0
---
(3) OMB Recommendation:
Budget authority
.....
No offset recommended.
Outlays
(4) Agency Recommendation:
Budget authority
---
244.0
--
--
--
--
244.0
Outlays
--
12.2
48.8
61.0
61.0
61.0
244.0
OMB Position
Agency Position
Implements President's offset policy.
An additional $244 million is needed in 1984 to
avoid 55% program cut.
The $810 million 1983 program for UDAG is a
massive (almost 2-1/2 times) expansion of the
Cutting UDAG funds during recovery will reduce
1982 level of $337 million. HUD cannot prudently
private investment by an estimated $1.5 billion
and effectively manage this enormous program
in many of our most distressed urban areas.
increase.
UDAG cut will be perceived as another anti-urban
A substantial carryover of 1983 funds is likely.
action.
Obligations thus far for 1983 are running at
1982's low levels. With $680 million available
for the last 7 months of this year, HUD will have
With pending demand of over $1.2 billion for
to obligate these funds at more than 3 times
1983 UDAG funds, there is no shortage of need
their current rate.
for Federal aid among distressed communities.
With the probable carryover of 1983 funds, adding
$244 million now to the President's 1984 request
of $196 million will increase the 1984 UDAG
program above the $440 million level planned for
the next 5 years.
TRANSPORTATION
OFFSETTING OUTYEAR REDUCTIONS TO JOBS BILL ADD-ONS
(in millions of dollars)
Agency:
DOT/UMTA
Program: Urban Mass Transportation Fund - Formula Capital Funding (1984-88)
1983
1984
1985
1986
1987
1988
1983-88
1) President's Budget
Budget authority
1692
1680
1735
1725
1620
1620
10,072
Outlays 1/
N/A
N/A
N/A
N/A
N/A
N/A
N/A
2) Jobs bill add-on
Budget authority
85.7
--
--
----
--
--
85.7
Outlays
4.3
17.2
25.8
17.2
17.2
4.0
85.7
3) OMB recommendation
Budget authority
-- -85.7
--
--
--
--
-85.7
Outlays
-- - 4.3 -17.2 -25.8 - -17.2 -17.2 -81.7
4 ) Agency recommendation
Budget authority
No offset recommended.
Outlays
1/ Outlays are not available because these funds are a subset of a larger account
from which the outlays can't be readily separated.
OMB Position
Agency Position
Implements President's offset policy.
Congress would be strongly opposed
In 1984 DOT is offering to offset only 1% of
to more offsets because current
total 1983 jobs increases (+$1, 400M in 1983
1984 proposed levels are already
obligation increases; -$20M in 1984 offsets).
much lower than levels authorized
1983 jobs bill add-on for all UMTA is $362M
in gas tax legislation.
(obligations), while total multi-year offset
Proposed offsets do not meet
being asked by OMB is only $133M (37% of total
Administration estimates of transit
increase).
capital needs ($50B over 10 years).
Congress is not interested in phasing out
Further cuts contradict
operating subsidies; Administration proposal
Administration commitment to
will not be further damaged by cutting capital
rebuild transit infrastructure.
budget in 1984.
Weakens Administration's position
Even with proposed cut, UMTA capital budget
on orderly phase out of operating
increases 46% between 1982 and 1984.
assistance, because phase out was
Transit is local responsibility; much Federal
justified on the basis of
transit funding is spent inefficiently because
maintaining capital assistance.
it is "free".
OFFSETTING OUTYEAR REDUCTIONS TO JOBS BILL ADD-ONS
(in millions of dollars)
Agency:
HHS
Program: Social Services Block Grant
1983
1984
1985
1986
1987
1988
1983-88
1)
President's Budget
Budget authority
2,804
2,503
2,600
2,700
2,700
2,700
16,007
Outlays
2,930
2,599
2,600
2,900
2,700
2,700
16,229
2)
Jobs bill add-on
Budget authority
225.0
---
---
---
---
---
225.0
Outlays
170.0
55.0
---
---
---
---
225.0
3)
OMB recommendation
Budget authority
--- -250.0
---
---
---
---
-250.0
Outlays
--- -173.8 -76.3
---
---
---
-250.0
4) Agency recommendation
Budget authority
---
-227.5
-227.5
---
---
---
-455.0
Outlays
---
-151.0
-227.5
-76.5
---
---
-455.0
OMB Position
Agency Position
O Implements President's offset policy.
o No offsets recommended because the
Congressional FY 1983 add-on does not
represent an acceleration of funds
included in the FY 1984 budget.
o If offsets must be taken, HHS recommends
offset be taken against the Social
Services Block Grant given the high
priority of health programs.
March 28. 1000
OFFSETTING OUTYEAR REDUCTIONS TO JOBS BILL ADD-ONS
(in millions of dollars)
Agency:
HHS
-
Program: Health Block Grants
1983
.
1984
1985
1986
1987
1988
1983-88
1) President's Budget
Budget authority
1,196
1,362
1,362
1,362
1,362
1,362
8,006.0
Outlays
1,119
1,303
1,362
1,362
1,362
13,62
7,870.0
2) Jobs bill add-on
Budget authority
+205.0
---
---
----
---
---
+205.0
Outlays
+104.5 +100.5
---
---
---
---
+205.0
3) OMB recommendation
Budget authority
--- -205.0
---
---
----
---
-205.0
Outlays
i
-122.6
-82.4
--
---
---
-205.0
4) Agency recommendation
Budget authority
No offsets recommended.
Outlays
OMB Position
Agency Position
o Implements President's offset policy.
O No offsets recommended because the
Congressional FY 1983 add-on does not
O President's FY 1984 Budget combines 4 block
represent an acceleration of funds
grants -- Primary Care (Community and Home
included in the FY 1984 budget.
Health); Maternal and Child Health; Alcohol
Drug Abuse and Mental Health; and
O If offsets must be taken, however, HHS
Preventive Health and Health Services --
recommends that offsets be taken in
which are separate accounts in FY 1983.
the Social Services Block Grant account.
March 28, 1983
OFFSETTING OUTYEAR REDUCTIONS TO JOBS BILL ADD-ONS
(in millions of dollars)
gency: HHS
rogram: Food and Drug Administration
1983
1984
1985
1986
1987
1988
1983-88
)
President's Budget
Budget authority
355
386
386
386
386
386
2,285.0
Outlays
365
391
398
394
388
387
2,323.2
) Jobs bill add-on
Budget authority
.9
---
---
-
---
--
+.9
Outlays
.1
.8
---
---
---
---
+.9
) OMB recommendation
Budget authority
- -.9
---
---
---
---
-.9 -
Outlays
-.1
-.8
---
---
---
- -.9
) Agency recommendation
Budget authority
No offset recommended.
Outlays
OMB Position
Agency Position
O Implements President's offset policy.
O No offset recommended because the FY 1984
budget does not include funds for the same
purpose as that included in the jobs bill;
i.e., design of FDA facilities. We would
be willing to accept the offset if the HHS
fallback position is accepted in general.
March 28, 1983
ACTIVITIES
EDUCATION
OFFSETTING OUTYEAR REDUCTIONS TO JOBS BILL ADD-ONS
(in millions of dollars)
Agency:
Education
Program:
College Work Study
1983
1984
1985
1986
1987
1988
1983-88
1. President's Budget
Budget authority
540.0
850.0
850.0
850.0
850.0
850.0
4,790.0
Outlays
568.0
545.0
842.0
850.0
850.0
850.0
4,505.0
2. Jobs bill add-on
Budyet authority
50.0
-
---
I
---
50.0
Outlays
2.5
46.0
1.5
-
-
-
50.0
3. OMB recommendation
Budget authority
-
-50.0
-
-
-
-50.0
Outlays
-
-2.5
-46.0
-1.5
-
-----
-50.0
4. Agency recommendation
Budget authority
No offset recommended.
Outlays
OMB Position
Agency Position
°Implements President's offset policy.
°Undermines student aid budget and legislative strategy of
°Reduction does not harm student aid proposals:
level funding while program changes are sought.
Even with reduction, 1984 BA is $800M, $260M over 1983
°Detracts from overall self-help approach, of which work study
enacted and $210M over 1983 + Jobs Bill. $260M = 325,000
is a critical component.
additional jobs.
°Direct reduction of employment funds at a time when
Other self-help aspects of program maintained (loans,
unemployment is still projected to be high.
family and student contributions, etc.).
$50M reduction in $3.6B student aid account is only 1.4%
reduction - level funding essentially maintained.
Outyear funding not affected.
°Reduction will meet congressional criticism (and earlier
ED fears) that work-study increase was too much for
colleges to absorb.
OFFSETTING OUTYEAR REDUCTIONS TO JOBS BILL ADD-ONS
(in millions of dollars)
Agency: Education
Program: Library construction
1983
1984
1985
1986
1987
1988
1983-88
1. President's Budget
Budyet authority
---
-
--
-
--------
---
----
Outlays
-----
----
-
--
-
----
----
2. Jobs bill add-on
Budget authority
50.0
-
-
--
---
----
50.0
Outlays
5.0
13.5
24.5
7.0
/
50.0
3. OMB recommendation
Budget authority
No offset recommended.
Outlays
4. Agency recommendation
Budget authority
-50.0
-
------
-
-
---
-50.0
Outlays
-
-5.0
-13.5
-24.5
-7.0
-
-50.0
OMB Position
Agency Position
°Rescission would never be adopted; pending rescissions of
°Increase is "excessive".
$1.2B in ED are not being adopted now.
"Rescission is the most direct response".
This offset is in lieu of OMB proposed reductions in college
work study and rehabilitation services.
OFFSETTING OUTYEAR REDUCTIONS TO JOBS BILL ADD-ONS
(in millions of dollars)
Agency:
Education
Program:
Impact Aid Construction
1983
1984
1985
1986
1987
1988
1983-88
1.
President's Budget
Budget authority
20.0
10.0
10.0
10.0
10.0
10.0
70.0
Outlays
58.4
24.6
18.6
12.2
10.0
10.0
133.7
2. Jobs bill add-on
Budget authority
60.0
----
-----
--
-
60.0
Outlays
6.0
16.2
29.4
8.4
-
I
60.0
3. OMB recommendation
Budget authority
-
-10.0
-10.0
-10.0
-10.0
-10.0
-50.0
Outlays
-
-1.0
-3.7
-8.6
-10.0
-10.0
-33.3
4. Agency recommendation
Budget authority
-5.0
-10.0
-10.0
-10.0
-10.0
-10.0
-55.0
Outlays
-0.3
-11.6
-12.5
-10.7
-10.0
-10.0
-55.0
OMB Position
Agency Position
°Implements President's offset policy.
°Agree with OMB offsets in 1984-1988.
°Rescission would never be adopted; pending rescissions of
°In addition, rescind $5M in 1983 in lieu of OMB proposed
$1.2B in ED are not being adopted now.
reductions in college work study and rehabilitation services.
Still leaves $55M of add-on available; rescission might be
adopted.
OFFSETTING OUTYEAR REDUCTIONS TO JOBS BILL ADD-ONS
(in millions of dollars)
Agency: Education
Program: Rehabilitation Services and Handicapped Research/Projects with Industry 1/
1983
1984
1985
1986
1987
1988
1983-88
1. President's Budget
Budyet authority (estimates)
8.0
10.9
10.9
10.9
10.9
10.9
62.5
Outlays (estimates)
7.6
8.5
10.4
10.9
10.9
10.9
59.2
2. Jobs bill add-on
Budget authority
5.0
-
---
-
5.0
Outlays
0.5
4.0
0.5
-
-
-
5.0
3. OMB recommendation
Budget authority
--
-5.0
-
--
--
|
-5.0
Outlays
-0.8
-3.4
-0.8
-
------
-5.0
4. Agency recommendation
Budget authority
No offset recommended.
Outlays
1/ One sub-activity discretionary project in $1.0B account.
OMB Position
Agency Position
°Implements President's offset policy.
°Offset means reduction in this politically sensitive area of
°Offset still allows $5.9M BA for 1984.
education for the handicapped.
°Offset of $5M out of $2.1B total (with handicapped
°Offset upsets "credible case" ED has made, by level funding
education account) in level-funded BA serving
from 1983, that 1984 budget gives priority to handicapped.
handicapped--only 1/4 of 1%--will not disrupt budget
°Program has been "particularly effective" in placing disabled
strategy of priority to the disabled.
in jobs; is proposed for increase in 1984, implying more
°First evaluation of this program is only now underway;
placements in private sector employment. This increase
effectiveness is unknown.
should be maintained.
AGENCIES
OTHER INDEPENDENT
OFFSETTING OUTYEAR REDU
ONS TO JOBS BILL ADD-ONS
(in millio
f dollars)
Agency: Small Business Administration (SBA)
Program: Business Loan and Investment Fund
1983
1984
1985
1986
1987
1988
1983-88
1) President's Budget
Budget authority
590.7*
241.0
291.0
185.0
128.0
67.0
1,502.7
Outlays
496.2
286.5
174.0
142.0
90.0
35.0
1,223.7
2) Jobs bill add-on
Budget authority
52.0
---
---
---
---
---
52.0
Outlays
26.0
24.0
-1.0
-3.0
-4.0
-5.0
37.0
3) OMB recommendation
Budget authority
-----
-3.5
-14.0
-17.5
-10.5
-7.0
-52.5
Outlays
----
-3.5
-14.0
-17.5
-10.5
-7.0
-52.5
4) Agency recommendation
Budget authority
---
----
-11.0
-18.0
-13.0
-10.0
-52.0
Outlays
---
---
-11.0
-18.0
-13.0
-10.0
-52.0
* Includes one-time additional $200 million for increased loan default repurchases.
OMB Position
Agency Position
Implements President's offset policy by reducing
Opposes credit level reductions
1984 loan guarantees from $2.65 billion to
and argues that an offset can be
$2.3 billion thus reducing outyear costs for
obtained by re-estimating
defaults on SBA guaranteed loans.
guaranteed loan default repurchase
rates downward for 1985-1988.
SBA's proposed offset is a technical re-estimate,
not a real offset. It is unreasonable to lower
Through the Quality Lending Program,
the default purchase rates 50% below current
SBA believes the purchase rate can be
levels (1982 rate was 33%) and 11% below
reduced from 18.6% (1984 Budget) to
historical rates (18.6%). Furthermore, current
16.5% in each of the years 1985-1988.
projected default rates already have taken SBA's
Banks will assume more responsibility
quality lending initiative into consideration.
for loans.
The Administration's policy is not to set credit
The OMB offset will reduce SBA's
assistance to meet the demand. The guaranteed
ability to meet credit demand, may
program is still being maintained at a level to
jeopardize the President's commit-
meet the President's annual $500 million credit
ment to minority business, may add to
assistance for minorities.
the perception that the Administra-
tion is anti-small business, and will
not be agreed to in Congress.
ATTACHMENT
Small Business Administration (SBA)
Credit Levels -- Jobs Bill Impact and Offset Alternatives
(in millions of dollars)
Program: Business Loan and Investment Fund
1983
1984
1985
1986
1987
1988
1983-88
1) President's Budget
Direct Loans
260
41
41
41
41
41
465
Guaranteed Loans
3,350
2,650
2,300
1,700
1,000
1,000
12,000
TOTAL
3,610*
2,691
2,341
1,741
1,041
1,041
12,465
2)
Jobs bill add-on
Direct Loans
50
---
----
----
---
-----
50
Guaranteed Loans
100
---
-----
----
---
----
100
3)
OMB recommendation
Direct Loans
---
----
---
---
---
---
---
Guaranteed Loans
----
-350
-----
-----
---
----
-350
4) Agency recommendation
Direct Loans
---
---
---
---
---
---
Guaranteed Loans
---
---
---
---
----
----
*
President's January Budget requested $2.72 billion -- $2.65 billion for loan guarantees
and $73 million for direct loans -- but Congress denied request in March.
OFFSETTING OUTYEAR REDUCTIONS TO JOBS BILL ADD-ONS
(in millions of dollars)
Agency:
TVA
Program:
1983
1984
1985
1986
1987
1988
1983-88
1)
President's Budget
Budget authority
1,166.0
883.5
810.3
761.5
666.3
820.9
5,108.5
Outlays
1,350.0
1,010.0
725.0
687.5
592.5
747.5
5,113.0
2)
Jobs bill add-on
Budget authority
40.0
----
----
---
40.0
Outlays
31.0
9.0
---
40.0
3)
OMB recommendation
Budget authority
-40.0
---
-40.0
Outlays
-40.0
-40.0
4)
Agency recommendation
Budget authority
No offset recommended.
Outlays
OMB Position
Agency Position
TVA should use the $40 million in a manner
Activities performed with Jobs Bill funding
which accelerates higher priority activities which
are activities which have a lower priority
are currently planned under the President's 1984
than ongoing TVA programs funded from
budget. Examples include: $10 million for
appropriations. These funds will do
accelerated construction of the new lock at Pick-
maintenance that would not be done under
wick Dam, construction of new chemical fertilizer
TVA's limited appropriation financing.
facilities, accelerated replacement of fertilizer
tank cars, development of recreational facilities
at the Land-between-the-Lakes and other sites,
and acceleration of other programs, etc.