The Committee on Appropriations submits the following report in compliance with Section 301(c) of the Congressional Budget and Impoundment Control Act of 1974. This section requires that each standing Committee of the House shall submit to the Committee on the Budget its views and estimates each year regarding matters within their respective jurisdictions to be included in the concurrent resolution on the budget. COMMITTEE OBJECTIVES AND PERSPECTIVES The Committee approaches the fiscal year 1986 budget with the objectives of providing for essential national needs while addressing the serious and growing deficit problem. The Committee on Appropriations recognizes that the soundness of our defense, including Department of Defense procurement, our military forces, and related programs depend upon a healthy domestic economy and public support. To retain these essentials, it is absolutely necessary to protect and develop our physical resources and protect essential domestic programs that we may retain public support. It is our country and our people on which all else depends. Despite the fact that military spending has virtually doubled in the past five years and despite the fact that the true deficit shows no decline in the near future, the Administration is proposing to eliminate or drastically reduce the following activities: Amtrak Payments to Air Carriers General Revenue Sharing Urban Development Action Grants Low Income Assisted Housing Job Corps Strategic Petroleum Reserve Work Incentive Program Urban Mass Transit programs Community Services Block Grants The Tennessee Valley Authority Appalachian Regional Commission Agricultural conservation programs Farmers Home Administration loan programs Legal Services Corporation Small Business Administration If these and other proposed reductions were to be adopted by the Congress, it would weaken the nation's ability to maintain a strong economy which is essential for public support and a strong defense. It is noteworthy that the reductions in domestic programs will not result in meaningful deficit reduction. The true federal deficit will remain virtually constant under the Administration's proposals. In past years, the Congress has not cut military spending; it has only reduced the rapid rate of increase proposed by the Administration. In the Committee's view, a realignment of domestic and military (1) priorities similar to those the Congress has made in prior years will probably be necessary in connection with the fiscal year 1986 budget. Several factors depicted in the President's budget, certain of which are outside the jurisdiction of the Committee on Appropriations, will greatly affect our efforts. For example: -The Administration's budget proposes cuts of $28,900,000,000 in domestic programs. At the same time the size of the carryover of unspent funds of the Department of Defense will increase by $36,200,000,000 under the President's proposals to a total of $279,600,000,000. In addition, there will be no significant decrease in the true federal deficit. -The revenue loss in 1986 due to the 1981 Tax Act will be $210,800,000,000, or more than the entire estimated unified budget deficit. The net revenue loss in 1986 reflecting all changes in recent years will still be more than $131,400,000,000. -Much has been said and written about deficit reduction in connection with the fiscal year 1986 budget. The Administration often cites a proposed 1986 deficit figure of $179,996,000,000. However, this number assumes a reduction of $50,800,000,000 from current services estimates. Many of the proposed policy changes have been transmitted previously to the Congress and have been rejected. These include several different user fee concepts and other legislative proposals not acceptable to the people's branch of government. -Even more importantly, the $179,996,000,000 deficit estimate ignores trust fund borrowings-which must be included to determine the increase in the public debt. The budget document reveals that trust fund borrowings will increase dramaticallyfrom $32,905,000,000 actually borrowed in fiscal year 1984 to a projected $94,539,000,000 in fiscal year 1988. -The Administration's budget shows the deficit declining from $179,996,000,000 in 1986 to $144,385,000,000 in 1988. If trust fund borrowings are taken into account, however, the true deficit will be $241,397,000,000 in 1986; $234,775,000,000 in 1987; and $238,924,000,000 in 1988-essentially no decline at all. -Another way of looking at the magnitude of the deficit problem is to examine the increase in the total public debt. When the current Administration took office, the debt subject to limit was $932,288,000,000. By 1986 it will more than double to $2,070,714,000,000 and will further increase to $2,543,946,000,000 in 1988. This function includes science and research activites of the Federal Government where the goal is the general advancement of knowledge. In addition, research programs that have diverse goals and cannot readily be classified into one specific function are placed here to avoid detailed splitting of accounts. Included in this function are generel scientific research programs that are not an integral part of the programs conducted under another function. This includes space research and technology, except aeronautical technology of the National Aeronautic and Space Administration; research conducted by the National Science Foundation; and the broad-based scientific activities of the Department of Energy. Research programs that are an integral part of the achievement of other major functions-e.g., health, national defense, energy-are excluded from this function. Only if a research program cannot readily be included in other functions is it classified in this function. COMMITTEE VIEWS NATIONAL AERONAUTICS AND SPACE ADMINISTRATION AND NATIONAL SCIENCE FOUNDATION The fiscal year 1986 request for NASA is a 5.5 percent increase above the fiscal year 1985 level. The NSF request is a 4.5 percent increase. The Committee is recommending that funding be provided at roughly a "current services" level of 4.3 percent above the fiscal year 1985 appropriation. This recommendation is consistent with the level recommended for the other operating programs funded under agencies within the jurisdiction of the HUD-Independent Agencies Subcommittee. This function includes those programs whose primary purpose is to promote the conservation and development of energy resources through research and applications of nuclear power, fossil fuels, solar, synthetic fuels and other energy resources. It encompasses development of additional energy resources and technologies that will increase production from domestic energy resources; energy conservation programs involving energy saving technology and grants to promote conservation practices; emergency energy preparedness; and energy information and regulation. Agencies that carry out these activities include the Department of Energy, Nuclear Regulatory Commission, Tennessee Valley Authority, and the Department of Agriculture. COMMITTEE VIEWS ENERGY RESEARCH PROGRAMS The nuclear waste fund is budgeted at $571,460,000. However, this request is offset by projected revenues from fees collected from the civilian nuclear utilities. The budget request for Energy Supply, Research and Development Activities is a net increase of $21,000,000 over the fiscal year 1985 appropriation. The $196,704,000 requested for solar and renewables is $46,837,000 less than was appropriated in fiscal year 1985. The nuclear request is $16,510,000 greater than the fiscal year 1985 appropriation, principally resulting from increases in the decommissioning of nuclear waste sites. The Uranium Enrichment budget assumes that program will equal the expected revenues of approximately $1.6 billion. NUCLEAR REGULATORY COMMISSION The NRC budget request for fiscal year 1986 is $429 million which is $19 million less than the fiscal year 1985 appropriation of $448 million. The reduction is primarily applied to the NRC research and development programs recognizing a decrease in the number of nuclear reactors being constructed. FOSSIL AND OTHER ENERGY PROGRAMS Fossil energy research and development.-The fossil energy request for fiscal year 1986 is for a total program of $242,671,000. Of this amount $15,000,000 has already been appropriated for a TVA demonstration plant generating electricity from coal using atmospheric fluidized bed combustion. $6,000,000 of the total is from anticipated savings from management initiatives, $8,940,000 is from transfers from other accounts, and $55,822,000 is from use of funds proposed for deferral from fiscal year 1985. Thus, the new budget authority request is only $156,909,000 compared to a fiscal year 1985 total of $274,947,000 and a fiscal year 1985 program total of $347,060,000. The Committee will be examining the impact of these proposed decreases and deferrals on fossil programs, particularly magnetohydrodynamics, fuel cells and coal liquefaction in determining the adequacy of the budget request. Naval petroleum and oil shale reserve.-The program request of $169,316,000 is a decrease of $26,427,000 from the fiscal year 1985 level of $195,743,000. Development drilling on NPR 1 and 3 will remain about level with fiscal year 1985, and government share of production is estimated at approximately 100,000 barrels per day. New budget authority of only $13,649,000 is requested since $155,667,000 of unobligated prior year balances are anticipated to be available. Gross Federal revenues from the Reserves are estimated to be $1.3 billion. Energy conservation.-The request of $145,075,000 for research and development is $30,955,000 below the fiscal year 1985 program of $176,030,000. With two major exceptions the programs are at levels comparable to fiscal year 1985: the Stirling engine program is terminated which is a reduction of $13,701,000; and no funds are provided for the basic industrial research facility, a reduction of $15,681,000. As with the fossil energy program, the Administration is requesting decreases in significant research areas which must be assessed to determine a budget which will allow for a viable program. The proposed program level of $225,579,000 for state and local programs is $57,570,000 below the fiscal year 1985 level of $283,149,000. $190,524,000 of the request is contingent on the passage of legislation allowing the use of petroleum overcharge funds for state and local conservation program grants. Economic regulation.-This account includes the Economic Regulatory Administration and the Office of Hearings and Appeals. The request for the Economic Regulatory Administration is $17,692,000, a decrease of $4,307,000 under the fiscal year 1985 appropriation, and reflects further completion of oil overcharge cases. No change |