May 19, 1977
Page 15558
Mr. MUSKIE. Mr. President, the Senate has before it S. 1442, the Small Business Administration Authorization Act for fiscal year 1978. This is a sizable bill, involving new budget authority of over $900 million, and I feel it is important the Senate be aware of the impact it could have on the fiscal 1978 first budget resolution. However, before I get into the details, let me assure the distinguished floor manager and the other members of the authorizing committee that I support the bill.
According to an analysis provided by the Congressional Budget Office, full funding of S. 1442 would result in budget authority of $906 million and outlays of $573 million for SBA's fiscal 1978 budget. These impacts would be felt in two functional categories, function 400 — commerce and transportation, and function 450 — community and regional development.
For function 400, the fiscal 1978 first budget resolution set targets of $20.0 billion in budget authority and $19.4 billion in outlays. Full funding of S. 1442 would utilize roughly $873 million of the budget authority target, and $426 million of the outlay target. For function 450, the budget resolution set targets of $8.2 billion in budget authority, and $10.8 billion in outlays. If S. 1442 is fully funded, the SBA programs involved would utilize only about $33 million of the budget authority target and $147 million of the outlay target.
As the Senate knows, the budget resolution does not specify spending targets for individual agencies or programs. That breakdown is determined through the work of the authorizing and appropriations committees. However, it is possible at this time to add up the numerous authorizations that have been reported in the Senate, and thereby to get an estimate of the competition for funding in particular budget functions. From this we can get an estimate of how easy or difficult it will be to accommodate the funding for authorization bills such as S. 1442 within the overall budget totals.
Taking this perspective, I believe it is possible to say that although the authorizations in S. 1442 are above those requested in the President's budget, they do appear to be consistent with the function 400 and 450 targets established in the fiscal year 1978 first budget resolution. Those targets were selected to accommodate a general continuation of current policy in most programs in the two functions, plus a small additional allowance for increases in program areas to be selected by the Congress during the authorization and appropriations processes. Programs of assistance to small business represented one such area of potential increase, and now that May 15 has passed and it is possible to see the total authorization which the Senate has in mind, I believe it is safe to conclude that funding of S. 1442 can be accommodated within the function 400 and 450 targets.
Having said this, however, let me add that at least with regard to the programs in function 400, commerce and transportation, it appears that the House could have more grandiose fiscal 1978 spending plans than does the Senate. If we are not careful, this could lead to trouble. For example, I notice that the House version of the SBA. legislation before us authorizes appropriations roughly $300 million above those provided by S. 1442. Similarly, it is expected that there will be other House bills which likewise authorize more for commerce and transportation programs than is provided in Senate legislation. Clearly the cumulative effect of this could be to breach the function 400 targets. I therefore urge the floor manager and the other Senate Members who will be conferees on this legislation to help us protect the budget resolution targets by being firm in their support for the Senate authorization levels.
Finally, I would like to take this opportunity to congratulate the chairman of the Select Committee on Small Business, Senator NELSON, the distinguished floor manager, Senator HATHAWAY, and the other members of the select committee for reporting legislation that should significantly enhance the Senate's ability to exercise proper legislative and budgetary oversight of the SBA. In the past, SBA authorization legislation established only overall ceilings for SBA's various revolving funds. Decisions regarding the proper level of operation for specific programs were left largely to administrative discretion. S. 1442 shifts to line item authorizations for individual programs, and thereby enhances immensely the possibility for the authorizing committee to exercise effective agency oversight. Equally important, the new format also facilitates more accurate budget scorekeeping. The congressional budget process will be stronger and more credible because of it.
Mr. President, the distinguished floor manager and I have long been strong supporters of SBA programs to assist the small businessman. Such programs are of vital importance to our home State of Maine. I am pleased to be able to vote in favor of S. 1442, and I urge my Senate colleagues to do likewise.