July 12, 1977
Page 22346
Mr. MUSKIE. Mr. President, the Senate Budget Committee will conduct public hearings on the second concurrent resolution on the budget for fiscal year 1978 on Tuesday, July 19, Wednesday, July 20, and Thursday, July 21.
These hearings will provide valuable information to the Budget Committee for reviewing the first concurrent resolution on the budget and deciding what changes, if any, are necessary for the second concurrent resolution which must be adopted by both Houses of Congress by September 15. The second concurrent resolution on the budget will establish minimum limits for revenues and maximum limits for spending, including limits for spending in each major functional category of the budget for fiscal year 1978.
The committee will discuss with witnesses from the administration and from the Congressional Budget Office, the relationship between the administration's revised budgetary recommendations and the requirements for maintaining vigorous economic expansion into fiscal year 1978 and beyond. The committee also expects to explore the problem of the low growth of business investment in the economy. Stronger investment is required to provide jobs and to expand industrial capacity in order to eliminate potential inflationary bottlenecks and to raise productivity and incomes in the future. The committee will explore with the administration the policies it is considering in tax reform or other programs which are expected to facilitate this vigorous investment activity. The committee will also explore the administration's assumptions about monetary policy in fiscal year 1978 and plans for reducing inflation.
In the energy area, the committee has a special need for information on the budgetary and economic impact of the President's energy program now being acted upon by the Congress. The committee is especially interested in examining the cumulative net revenue impact of the plan, the impact on inflation of the President's plan and its revisions by Congress, and the appropriate level of funding for the strategic oil reserve.
Other areas which will be highlighted during the hearings include a review of the President's proposals for financing social security, for program expansion and job creation in Federal youth employment and training programs, and for termination of the B-1 bomber production. In discussing these topics, the committee expects to review all factors which would lead to changes in estimated revenues or spending for fiscal year 1978.
On Tuesday, July 19, at 10 a.m., the witness will be W. Michael Blumenthal, Secretary of the Treasury.
On Wednesday, July 20, at 10 a.m., the witness will be Dr. Alice Rivlin, Director, Congressional Budget Office.
On Thursday, July 21, at 9:30 a.m., the witness will be Thomas B. Lance, Director of the Office of Management and Budget, and at 11 a.m., the witness will be Charles D. Schultze, Chairman of the Council of Economic Advisers.
All hearings will be held in room 357, Russell Senate Office Building.
For further information regarding these hearings, please contact Kim Baldwin of the Budget Committee staff at 4-0853.