The Budget of the United States Government for Fiscal Year 1974

APPROPRIATIONS CEILING FOR FISCAL YEAR 1974

CLERKS NOTE.-Subsequent to the hearing, the subcommittee chairmen of the Committee on Appropriations, U.S. Senate, at the request of Chairman McClellan established a ceiling for appropriations on each bill for fiscal year 1974.

A statement by Chairman McClellan made on the floor of the Senate and a chart showing estimates of new budget authority proposed by the administration together with subcommittee budget recommendations for fiscal year 1974 follow:

APPROPRIATIONS CEILING FOR FISCAL 1974

Mr. MCCLELLAN. Mr. President, in my remarks to the Senate on February 6, I proposed that the Appropriations Committee set a tentative appropriations ceiling-a spending ceiling-that it would undertake to observe in the processing of appropriations bills for fiscal 1974. In an effort to establish such an overall ceiling for the full Appropriations Committee, I requested-by letter-that each subcommittee chairman review his respective portion of the Federal budget and recommend the minimum amount which his subcommittee felt would be required to economically carry out for fiscal year 1974 the essential programs and functions of Government over which his subcommittee has jurisdiction.

Mr. President, I am pleased to report that each Appropriations Subcommittee chairman has responded to my request, and I wish to express to each my appreciation for his helpful cooperation. I am now glad to present to the Senate the results of this undertaking.

Five subcommittees projected cuts in administration appropriation requests by $5.4 billion. They are:

Housing and Urban Development, Military Construction, $151 million;

Space, Science, and Veterans, $1 billion;

Foreign Operations, $1.3 billion;

Legislative, $12 million; and

Defense, $3 billion.

Six subcommittees advised that they would endeavor to hold their appropriations within the budget-that they would not exceed budget requests. They are: Treasury, U.S. Postal Service, and General Government;

State, Justice, Commerce, and the Judiciary;

Public Works, Atomic Energy Commission;

Transportation;

Interior; and

District of Columbia.

Two subcommittees anticipate making increases over and above budgetary requests by some $3 billion. They are:

Agriculture, Environmental and Consumer Protection by $801 million; and Labor; Health, Education, and Welfare by $2.2 billion.

Mr. President, the aggregate of these goals set by each respective subcommittee chairman establishes an overall ceiling for appropriations for fiscal 1974 that would result in a cut of new obligational authority from the budget request of $288 to $285.6 billion—a decrease of $2.4 billion, or 0.8 percent. In terms or actual budget outlays, these reductions would cut Federal spending in fiscal 1974 from the budget request of $268.7 to $267.1 billion-a decrease of approximately $1.6 billion, or 0.6 percent.

I realize that these reductions appear to be minimal-and they are-but if achieved, we will at least, in slight measure, be "holding the line" on spending. Incidentally, it may be of some interest to note that the $267.1 billion spending ceiling fixed by the subcommittee chairmen of the Appropriations Committee is $9 million less than the $268 billion ceiling fixed by the Senate in the amendment which it adopted on April 5 to S. 929-the Par Value Modification Act. Mr. President, it is my hope-particularly in the two instances where the proposed subcommittee ceilings considerably exceed the budget estimates—that after more thorough examination and consideration, substantial reductions can be made in these areas. I am also hopeful that the Appropriations Committee will find it feasible to make some reductions in other areas where subcommittee chairmen have reported a ceiling at budget level.

It must be kept in mind, however, that the Appropriations Committee will have under consideration only $171.7 billion, or about 60 percent of the total budget

submitted by the President for fiscal 1974. The remaining $116 billion, or about 40 percent of budget authority requested by the President, requires no current action by Congress-no appropriation this year since this amount is comprised of permanent appropriations and trust fund authorizations.

As Members of this body know, not all the money is spent in the same year that it is appropriated. Some of the money that Congress appropriates this year will be spent in subsequent years. For example, only $167 billion of the $171.7 billion that the Appropriations Committee will consider is earmarked for expenditure in fiscal 1974. Thus, the budget recommendations of the 13 Appropriation Subcommittees, translated into actual 1974 spending authority, would mean a spending decrease of $1.6 billion-1 percent-below the President's budget.

Mr. President, as we know, this tentative ceiling that we have established is neither binding nor final. However, it does set an overall limitation goal which we shall faithfully undertake to observe and not exceed. And, Mr. President, I personally believe that the distressing inflationary pressures on our economy and the deplorable state of our fiscal affairs dictate that we should make even further reductions wherever possible and practical in Federal expenditures for fiscal 1974.

Mr. President, I ask unanimous consent to have printed in the RECORD at this point as a part of my remarks a chart prepared by staff members of the Appropriations Committee, showing estimates of the new budget authority proposed by the administration, together with subcommittee budget recommendations for fiscal 1974.

There being no objection, the chart was ordered to be printed in the RECORD, as follows: