CONGRESSIONAL RECORD — SENATE


September 6, 1978


Page 27974


SECOND CONGRESSIONAL BUDGET RESOLUTION, 1979


The ACTING PRESIDENT pro tempore. Under the previous order, the Senate will now resume the consideration of Senate Concurrent Resolution 104, which the clerk will report.


The legislative clerk read as follows :

A concurrent resolution (Senate Concurrent Resolution 104) revising the congressional budget for the U.S. Government for the fiscal year 1979.


The ACTING PRESIDENT pro tempore. Under the law, the total time for debate on this resolution is limited to 15 hours, with a time limitation on each amendment, which is to come out of the overall total, of 1 hour, by unanimous consent to be controlled by the mover of such and the manager of the resolution.


The Senator from West Virginia.


Mr. ROBERT C. BYRD. Mr. President, I yield the time that is, under the law, allocated to the majority leader or his designee the Senator from Maine (Mr. MUSKIE) , the chairman of the Committee on the Budget.


Mr. GARN. Mr. President, on the minority side, we yield the time to the Senator from Oklahoma (Mr. BELLMON).


Mr. ROBERT C. BYRD. Mr. President, I suggest the absence of a quorum, and I ask that the time be charged against the overall time on the resolution.


The ACTING PRESIDENT pro tempore. Without objection, it is so ordered. The clerk will call the roll.


The second assistant legislative clerk proceeded to call the roll.


Mr. BELLMON. Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.


The ACTING PRESIDENT pro tempore. Without objection, it is so ordered.


Mr. BELLMON. Mr. President, I ask unanimous consent that the following members of the Budget Committee staff be allowed to remain on the floor during the consideration of and all votes on Senate Concurrent Resolution 104: Robert Boyd, Charles McQuillen, William Stringer, Paul Carttar, Becky Davies, Carol Cox, Robert Fulton, Barry Kinsey, Joyce Purcell, and Gail Shelp.


Also, Jack Nutter, of Senator DOLE's staff; Jim Streeter, of Senator McCLURE's staff; Charles Gentry, of Senator DOMENICI's staff; Jan Olson, of Senator HAYAKAWA's staff; Mike Kintner, of Senator HEINZ's staff, and Mike Shorr, of Senator JAVITS's staff.


The ACTING PRESIDENT pro tempore Without objection, it is so ordered.


Mr. MUSKIE. Mr. President, I ask unanimous consent that the following members of the Budget Committee staff be allowed to remain on the floor during consideration of and all votes on Senate Concurrent Resolution 104: John McEvoy, Sid Brown, Karen Williams, Van Ooms, Dan Twomey, George Merrill, Rodger Schlickeisen, Ira Tannenbaum, Liz Tankersley, Jill Scheu, Bob Sneed.


Charles Flickner, Tony Carnevale, Rob Fersh, Gale Picker, Brenda Tremper, Tom Hogarty, Charles Riemenschneider, Don Campbell, Porter Wheeler, Barbara Levering, Anne Lockwood, Lewis Shuster, and Rick Brandon.


The ACTING PRESIDENT pro tempore. Without objection, it is so ordered.


Mr. MUSKIE. I ask unanimous consent that Lynn Boyd, of Senator HODGES's staff, be granted the privileges of the floor during the consideration of the concurrent resolution.


The ACTING PRESIDENT pro tempore Without objection, it is so ordered.


Mr. MUSKIE. As is the usual request, Mr. President, I ask unanimous consent to use small electronic calculators on the floor during the consideration of this concurrent resolution.


The ACTING PRESIDENT pro tempore Without objection, it is so ordered.


Mr. MUSKIE. Mr. President, today the Senate begins consideration of the second concurrent resolution on the budget for fiscal year 1979.


This resolution will bind all further congressional spending and tax decisions for 1979. A point of order will lie against bills which exceed this budget.


This is an anti-inflationary budget.


Its totals are significantly lower than those in either the first resolution or the President's budget.

Compared to the first resolution, it cuts projected Federal spending for 1979 by $9.3 billion. It reduces the projected deficit by $8.6 billion, nearly 17 percent.


At the same time, it contains room for tax reductions of up to $23.4 billion in the coming fiscal year.


This second budget resolution takes account of the two major changes which have occurred in the economy since the first budget resolution.


These major changes are lower unemployment and higher inflation than were foreseen when the first budget resolution was formulated.


Unemployment, forecast last spring to remain over 6.2 percent until the end of this year, has fallen below that rate, reaching 5.9 percent in August.


Inflation, forecast last spring to average 6.1 percent during the coming year, has increased to an annual rate of 9.9 percent.


So employment has improved more rapidly than could be anticipated last spring. But inflation has worsened.


These changes call for modifications in the budget we adopted last spring. They call for a more restrictive budget, designed to help reduce inflation without increasing unemployment.


This second budget resolution meets those requirements.


We intend it as a signal to our citizens and to the private economy that the Federal Government will lead the way toward reducing inflation without sacrificing jobs.


This second budget resolution reduces Federal outlays in 1979 by $9.3 billion compared to the first resolution, and by $11.5 billion compared to the President's January budget.


The resolution also reduces budget authority for 1979 by $11.1 billion compared to the first resolution, and by $11.4billion compared to the President's January budget.


The level of budget authority enacted this year helps to determine the level of future Federal spending. So this 2 percent cut in budget authority will translate into a very real reduction in the future cost of Government.


REVENUES


This second budget resolution reaffirms the tax cut recommended in the first resolution.

This recommendation to cut taxes by $23.4 billion reflects the committee's determination to provide substantial relief to taxpayers, without raising the risk of higher inflation.


These tax cuts are also needed to sustain economic growth in the coming year. They will help offset the loss of purchasing power which would otherwise occur as inflation drives wages into higher tax brackets.


These tax cuts will also offset the negative effects of the new social security taxes scheduled to take effect January 1, 1979.


DEFICIT


The spending reductions contained in the budget resolution will substantially reduce the 1979 deficit.


The deficit projected in this resolution is $8.6 billion lower than the deficit projected in the first resolution.


It is more than $18 billion lower than the deficit projected in the President's January budget.

Much of this deficit reflects lower revenues from an economy still operating below capacity. The deficit also includes the cost of programs enacted to provide jobs and income support to our citizens during the recession. If unemployment stood at 5 percent today, for example, this deficit would be less than $15 billion, as a result of increased tax collections on higher wages and profits.


But, not Congress, nor the President, nor the public can take any comfort from the fact that after 3 years of economic recovery, the Federal deficit remains over $40 billion.


And the risk of adding to the recent resurgence of inflation will be substantially increased by excessive spending as the economy approaches its capacity.


The present economic situation forces us to resist enactment and enlargement of programs which do not fit within this reasonable and carefully constructed budget.


Such spending will add directly to the deficit and to the risk of further inflation.


THE SECOND RESOLUTION, THE ECONOMY, AND JOBS


Mr. President, this budget is designed to preserve the present economic expansion under the very difficult circumstances we confront.


The revenue and spending levels recommended in this resolution are designed to promote moderate economic growth without increasing inflationary pressures.


The general tax reduction proposed in this budget resolution will offset the negative economic effects of higher payroll taxes and the increased income tax burdens caused by inflation.


These tax cuts will also stimulate much-needed business investment.


The spending proposed in this budget resolution will not increase the present level of Federal stimulus to the economy. In fact, such stimulus would fall slightly from current levels, because that is the prudent course in the present mature stage of our economic recovery.


This budget will support economic growth at an annual rate of 3½ to 4 percent in 1979. This expansion will create about 800,000 new jobs during 1979.It will preserve our gains against unemployment, without generating inflation-causing excess demand.


This growth will support a further decline in unemployment to about 5¾ percent during 1979.

The creation of jobs for American workers during the present economic recovery has been remarkable. From the worst days of the recession in 1975 to July 1978, 9.9 million new jobs were created.


During this 3-year period, the overall unemployment rate fell by more than a third — from 8.9 to 5.9 percent.


This jobs expansion would not have occurred without the support of the anti-recessionary congressional fiscal policy we have pursued.


This improvement, however, has not been uniform across demographic groups. For example, the unemployment rate for men 25 years of age and older, a "prime" segment of the labor force, fell from 8.5 to 3.3 percent. But among minority teenagers, unemployment was 36.9 percent in the second quarter of 1978, essentially unchanged from 3 years ago.


This severe unemployment which burdens many of our citizens, especially minority youth, has not been reduced by the general economic recovery which has benefitted most of our citizens. Surely, these disadvantaged job seekers would be worse off without continued economic expansion. But economic growth, by itself, cannot solve their problem.


To reduce this intolerable rate of unemployment among large segments of our population, so-called structural employment programs, effectively targeted to serve those most in need, must be designed and adequately funded.


INFLATION


But even as we act — and act we must — to deal with structural unemployment, we must recognize that inflation is the overriding problem we face today. The recent acceleration of inflation to an annual rate of nearly 10 percent threatens the morale and standard of living of every American.


This new inflationary surge results primarily from higher food prices, higher import prices, higher interest rates, and higher wage settlements.


It does not appear to be the result of either excess demand for goods and services or shortages of labor and capital.


Fiscal restraint by Government at all levels is vital to limit spending which could result in excess demand and further inflation in the economy.


AN ANTI-INFLATION BUDGET


The Budget Committee urges the adoption of this pared-down budget as a public symbol of our intention to reduce inflation and to reduce deficit spending.


For, if the Federal Government, representing all the people, does not clearly signal restraint, who else will?


This budget is intended as a clear signal that inflation control requires cooperation from all sectors and participants in the economy.


This budget will signal our citizens and the private economy that Congress is prepared to reduce Government growth as part of the fight against inflation, both this year and in the years ahead.


BALANCING THE BUDGET


The policies recommended in this second budget resolution are designed to achieve a balanced budget and full employment within the next 5 years.


Although the economic outlook now is less favorable than it was in the spring,the committee still believes that spending restraint during the next 5-year period will permit budget balance to be reached by 1983, with no greater than 4½ percent unemployment at that time.


At the same time, noninflationary tax reductions can be enacted and the size of Federal spending as a percentage of the gross national product can be reduced.


With spending restraint, outlays will fall to slightly less than 20 percent of GNP by 1983.

Attempts to balance the budget at an earlier date will be paid for by American workers through higher unemployment.


But, if we are ever to balance the budget, spending on most new programs must be financed through savings or reduction of spending levels in current programs which have lower social value.


As the report accompanying the first budget resolution made clear, presently identifiable new spending programs could add another $416 billion to the Federal budget within the next 5 years.

And that may be just the tip of the iceberg.


Congress cannot balance the budget if it continues to enact new programs without appropriate reduction and elimination of those programs which are inefficient, obsolete, or of lower priority.

A balanced budget will be imperiled by congressional actions which exceed the narrow margin available for future year tax and spending decisions.


The exact mix of future tax reductions and spending increases cannot and need not be determined now. Congress can and should make such determinations as the events of future years unfold. The budget process provides Congress with an appropriate and flexible mechanism for making those determinations annually.


Under any foreseeable circumstances, however, Congress will face substantial pressure in this and future years to increase deficit-deepening expenditures which will threaten the balanced budget this second resolution is designed to reach.


Such increases will also kindle higher inflation in future years, as increased Federal spending competes for resources with a stronger private economy.


THE 5-YEAR BUDGET


Mr. President, the second budget resolution continues the multiyear budgeting approach the Budget Committee installed in its first budget resolution last spring.


This system is unparalleled in the Federal Government. It allows Congress to set the coming year's budget with a clear set of goals and a reasonable estimate of costs for an entire 5-year period.


Deciding the budget in a 5-year context helps us to control the budget in those future years.

Through the congressional budget process, Congress develops its own fiscal policy, shapes Federal efforts to address major national needs, and controls the budget.


But none of these goals can be achieved if budgeting is pursued 1 year at a time.


Viewed in a 1-year context, three-fourths of the budget is "uncontrollable," unless existing laws are repealed and existing commitments are terminated.


In a 1-year time frame, future directions and costs of new programs are nearly impossible to determine. A single year's budget may, in fact, include many new commitments which will expand unforeseeably in the future.


Our new 5-year budgeting system will help us to meet the shortcomings of single-year budgets.


THE BUDGET BY FUNCTION


Now, Mr. President, let me describe more fully some priorities set by this second budget resolution.


FUNCTION 050:NATIONAL DEFENSE


Mr. President, the priority this second budget resolution assigns to defense reflects our continuing concern that we maintain an effective deterrent against war and the means to defeat an enemy who would risk war.


The spending ceilings for defense recommended in this resolution are based on the same three congressional perceptions underlying the first resolution.


First, Congress supports a level of defense spending adequate to maintain and modernize our strategic forces.


Second, Congress endorses an increase in our tactical arms strength to improve our capacity to participate in the defense of Western Europe.


Third, Congress believes the Federal Government should assume leadership against inflation by restraining the size of Federal pay increases through a 5.5-percent pay cap and substantial absorption within existing agency budgets of the costs of any pay increases.


The second budget resolution does reflect reductions from the first resolution of $1.7 billion in budget authority and $3.2 billion in outlays due to technical reestimates of program requirements and savings identified in the appropriations process.


FUNCTION 150:INTERNATIONAL AFFAIRS


The first budget resolution targets for international affairs were sufficient to fund two congressional objectives. These two objectives are the provision of adequate long-term capital flows for economic development in order to sustain world economic growth, and economic and military assistance for some of our allies and other friends abroad.


Much of this assistance will be used to purchase American goods and services.


The second budget resolution ceilings reaffirm these objectives. In particular, they reaffirm the expected full appropriation to cover the United States' participation in the International Monetary Fund's proposed Witteveen Facility.


They also reflect an upward reestimate of outlays which results from the recently announced acceleration of previously enacted economic support assistance for Israel.


FUNCTION 250:GENERAL SCIENCE, SPACE, AND TECHNOLOGY


For general science, space, and technology, both the first and second budget resolutions support current levels of activity as reflected in the Senate-passed appropriation bills.


For future years, the committee assumes less than a full allowance for inflation, requiring increased efficiency in order to maintain current program levels. In the civilian space program, for example, real reductions will be required over the next 5 years in some programs, if a fifth Space Shuttle orbiter is required.


FUNCTION 270:ENERGY


The second budget resolution continues the priority the first resolution gave to energy.


The first budget resolution reflected a high priority for energy funding. Significant increases over fiscal year 1978 were assumed for energy supply, energy conservation, and the strategic petroleum reserve.


The committee recommends continuation of significant Federal efforts to stimulate the supply of energy through support for new technologies.


For energy conservation, the recommended ceilings would allow for appropriations that have passed the Senate as well as funding for further initiatives expected under the National Energy Act.


The level of Federal support for energy conservation is projected to trend downward over the next 5 years as national conservation goals are achieved over that time period.


For emergency energy preparedness, the committee's recommendations would continue full support over the next 5 years for a 750-million-barrel strategic petroleum reserve. Both budget authority and outlays for fiscal year 1979 are reduced from the first budget resolution as a result of delays in achieving the planned fill rate, although these delays are expected to be made up over the next 5 years.


Other activities in this function are sustained at current policy levels in fiscal year 1979 and over the next 5 years.


FUNCTION 300:NATURAL RESOURCES AND ENVIRONMENT


For Natural Resources and Environment, both the first and second budget resolutions reflect increases over previous years' spending based on the importance the Congress attaches to the preservation and utilization of the Nation's natural resources and the improvement of the environment.


For water resources, the committee recommendations will support ongoing planning and construction activities as well as new starts approved in the appropriations process.


For conservation and land management, current programs are assumed to continue and there is some room for additional initiatives in fiscal year 1979. But no significant increases are assumed in future years.


For recreational resources, the committee recommendations will permit some real growth in fiscal year 1979, including an allowance for new initiatives such as urban parks. Over the next 5 years any real increases would have to come from greater efficiencies or reductions in existing programs.


For pollution control and abatement, the committee recommendation continues support at approximately constant real levels for fiscal year 1979 and future years.


The committee recommendation can accommodate a new oil spill pollution liability fund.


FUNCTION 350:AGRICULTURE


The committee recommendations for the second budget resolution reflect continued strong Federal support for the agricultural sector, but recognize the improvement in agricultural economic conditions that has occurred since the first budget resolution.


For farm income stabilization, the resolution allows for the first CCC borrowing authority increase in many years.


It limits the allowance for new initiatives to agricultural trade legislation that is now pending.


For the next 5 years, the resolution assumes continuation of these agricultural policies, with an additional allowance for international emergency wheat reserve acquisition in fiscal year 1980.


For agricultural research and services, the resolution reflects a lower allowance for new initiatives than contained in the first budget resolution, reflecting Senate appropriations action.


FUNCTION 370:COMMERCE AND HOUSING CREDIT


For commerce and housing credit, both the first and second budget resolutions provide the financial support necessary to insure an adequate supply of mortgage credit.


Funding for GNMA's mortgage purchase activities is assumed at the level of the President's request.


The Federal payment to the Postal Service is continued in accordance with existing law, which anticipates that the Postal Service will make steady progress toward financial self-sufficiency.


For Small Business Administration programs, this budget is designed to accommodate the recommendation of the President and the Senate Select Committee on Small Business that in the future more emphasis should be placed on the use of loan guarantees.


This second budget resolution does reflect reductions from the first resolution as a result of projected increases in loan sales by the Farmers Home Administration, and the expected transfer of Federal Financing Bank surpluses to the Treasury.


FUNCTION 400:TRANSPORTATION


Both the first and second budget resolutions reflect continued high levels of assistance for transportation activities.


For highways, the second resolution increases funding to allow for accelerated interstate construction and to permit a significant expansion in assistance for highway bridge repair and replacement as recommended by the Senate Environment and Public Works Committee.


This budget supports the current program levels of the Federal Railroad Administration. It accommodates additional investment in ConRail equal to the minimum needs estimate of $1.3 billion, including $600 million in fiscal year 1979.


This budget contemplates funding significantly in excess of the President's request in most categories of Federal activity, including mass transit construction, bus purchases, and operating subsidies.


An allowance is included for establishment of a new "second tier" mass transitoperating subsidy program.


Mass transit spending totals in the second resolution have been adjusted downward since it no longer appears that prior-year contract authority will be replaced with appropriated budget authority this year.


In air transportation, both resolutions assume an allowance to support initial funding for a new program of airport and aircraft noise reduction. For water and other transportation, both resolutions continue assistance at current program levels.


FUNCTION 450:COMMUNITY AND REGIONAL DEVELOPMENT


For community and regional development programs, the first budget resolution accommodated funding for several new initiatives in addition to current programs.


This second resolution differs significantly.


Budget authority has been reduced to reflect the committee's judgment that changed conditions since the first resolution warrant the removal of funding in fiscal year 1979 for National Development Bank grants, State incentive grants, Round 3 of local public works, and a major "soft public works" initiative.


Outlays are higher, primarily because of upward reestimates caused by unexpectedly high lending and slow disbursements in fiscal 1978 for SBA disaster loans.


Other activities in this function remain at the levels assumed in the first resolution.


FUNCTION 500:EDUCATION, TRAINING, EMPLOYMENT, AND SOCIAL SERVICES


For education, training, employment, and social services programs, the first budget resolution accommodated the President's proposal for increased funding under title I of the Elementary and Secondary Education Act, increased Federal funding for handicapped education, and an allowance for middle income tuition assistance.


The first resolution also assumed continuation of 725,000 public service jobs, with increased targeting of such jobs in the structurally unemployed. It also assumed funding for the President's private sector jobs initiative. An expansion of social services and child welfare services programs was also assumed.


The second budget resolution continues the policies of the first resolution except as follows:


No provision is made for a middle income tuition assistance program.


A reduction is assumed in funding for public service jobs for the cyclically unemployed in view of the anticipated continued improvement in the employment outlook. This reduction would reduce by 60,000 theaverage number of public service jobs funded in fiscal year 1979.


Only half the funding requested by the President for a private sector jobs initiative is assumed, due to likely slippage in establishing that program.


FUNCTION 550: HEALTH


For health programs, the first budget resolution provided for medicaid program expansions proposed by the President, the cost of which would be more than offset by savings in medicare and medicaid as a result of the hospital industry's voluntary cost containment efforts, and by savings in medicaid from the administration's quality control program.


The first resolution also assumed increases over current law for discretionary health services programs, and reductions below current law in funding for health professions education assistance.


The second budget resolution differs from the first resolution primarily due to downward CBO reestimates of the cost of both the medicare and medicaid programs.


FUNCTION 600:INCOME SECURITY


In the income security function, the second budget resolution adjusts the first budget resolution in three ways:


First, it makes room for increased costs associated with the Senate-passed child nutrition bill.


Second, it assumes a higher level of funds for an expanded earned income credit, while making no provision for fiscal relief to States to offset public assistance costs.


And third, it provides for a lower level of budget authority for housing programs consistent with Senate appropriations action.


FUNCTION 700: VETERANS BENEFITS AND SERVICES


For veterans programs, the second resolution basically continues the policies assumed in the first resolution.


The second budget resolution does provide for increased costs for veterans' pension and compensation legislation as passed by the Senate. These increases are partially offset by downward CBO reestimates of the current low cost of these programs.


Legislative initiatives assumed in the first budget resolution pertaining to veterans' readjustment benefits are no longer assumed. Lower funding for the VA medical system reflects Senate appropriations action.


FUNCTION 750:ADMINISTRATION OF JUSTICE


In the area of law enforcement, the first and second budget resolutions generally support current levels of program activity by the Department of Justice and other agencies to control organized crime, public corruption, drug trafficking, and illegal immigration, and to prevent racial and ethnic discrimination.


This budget also assumes continued aid to State and local governments through LEAA at about present activity, levels, with a small allowance for a number of limited new program initiatives.


FUNCTION 800:GENERAL GOVERNMENT


For general government, the first budget resolution supported current levels of program activity for the legislative and executive branches, with partial allowance for inflation in future years.

The second budget resolution recommendations are the same as those in the first resolution, with the single exception that outlays have been reduced to reflect a CBO reestimate of activity under GSA's Federal buildings fund.


FUNCTION 850:GENERAL PURPOSE FISCAL ASSISTANCE


For general purpose fiscal assistance, the first budget resolution assumed continued funding of general revenue sharing at current levels, and continued assistance to distressed localities under a supplementary fiscal assistance program at levels requested in the President's urban initiative.

The second budget resolution recommendations are the same as the first resolution with regard to general revenue sharing.


In light of significant improvements in the national unemployment rate, supplementary fiscal assistance in the second resolution has been reduced to about $0.5 billion, one-half the amount assumed in the first resolution.


FUNCTION 900:INTEREST


In function 900, interest, both budget authority and outlays have increased by $1.1 billion since the first budget resolution, largely to reflect increased interest rates on the public debt.


FUNCTION 920:ALLOWANCES


Function 920, allowances, continues the anti-inflationary assumptions of the first resolution regarding the upcoming comparability pay increase for Federal employees.


As with the first budget resolution, this resolution assumes that these raises will be limited to 5.5 percent, and that employing agencies will be required to absorb 20 percent of the costs of the pay raise through savings in other activities.


Function 920 in this second resolution also includes an estimation of savings expected to result from the across-the-board cuts which Congress has adopted in several appropriations bills. We would have attributed these savings to the priority functions to which they belong if anyone could now predict where these across-the-board cuts will actually occur, but no one can.


Let me emphasize that in reflecting these assumed savings in its recommended ceilings, the Budget Committee does not intend any endorsement of meat ax reductions of this type as a responsible way to control Federal spending. The committee believes that congressional spending should reflect congressional priorities, and that Congress should make the hard choices among programs to be cut. To buck that responsibility "upstream" to the President is to revert to the kind of Government by Presidential impoundment which led to the creation of the budget process in the first place. The committee will seek to allocate these reductions to the appropriate functions in the conference with the House, in order to preserve the congressional control of the budget, the budget process is intended to provide.


FUNCTION 950: UNDISTRIBUTED OFFSETTING RECEIPTS


For function 950, undistributed offsetting receipts, the recommended ceilings are the same as the first budget resolution targets and reflect no policy changes.


1978 — A YEAR OF TESTING


Mr. President, this second budget resolution comes before the Senate in a climate of support for the budget process which has significantly improved since last spring.


Our first budget resolution for 1979 was debated just a month after the Budget Act had been purposefully trampled upon during consideration of the so-called emergency agriculture bill.


This second resolution comes to the floor just a month after the Senate overwhelmingly upheld the Budget Act against an attempt to suspend it during the tuition tax credit debate.


Last spring, we warned the Senate that on the record of excess and impulsive spending in the energy tax bill and the agriculture bills that Congress faced a clear resurgence of the free spending mentality.


Last spring I warned that—


This year's budget resolution presents a critical test case of the Senate's willingness to accept budget reform as more than political propaganda.


I am pleased and proud to be able to report that, so far this year, the Senate has passed that test.

The budget process, which seemed to be clearly on the ropes last spring, has received a strong infusion of Senate support this summer.


Major landmarks in budget control have been set. Let me mention just a few.


In July, the Senate voted 67 to 0 — in connection with the Witteveen bill — to assure full appropriations process review of future U.S. commitments to international financial organizations, such as the International Monetary Fund.


The Senate also voted 60 to 21 to eliminate housing assistance funding that was $5 billion in excess of the congressional budget resolution and the President's budget request.


And, in August, the Senate voted to provide much greater flexibility for the appropriations process to control funding under the Elementary and Secondary Education Act.


Prominent and important Senate precedents to control back door spending have been set by rulings from the Chair and sustained by Senate votes.


After a very bad beginning, it has been a good year.


The Senate has not only lived within the budget we adopted last spring, but also, through a prudent pruning of new programs and appropriations, actually allowed us to reduce it substantially in this resolution.


The appropriations process is completing its work nearly on schedule, despite two major filibusters which brought the legislative process to a standstill for more than 2 months.


The Budget Committee has pioneered mission and multiyear budgeting to make the budget more comprehensible and more controllable.


The Budget and Appropriations Committees have worked more closely than ever to limit Federal expenditures and to eliminate back door spending.


And the Senate has supported our efforts.


Credit for this success belongs to every Senator who has voted to support us this year.


Particular credit belongs to Senator WARREN MAGNUSON, chairman of the Appropriations Committee, whose tight-fisted approach to Federal spending this year has shaved hundreds of millions of dollars off Federal spending and the deficit.


The majority leader has continued his constant support for the budget process and fiscal responsibility in both his budget votes and his meticulous observance of Budget Act procedures.

The constant cooperation of the leadership staff, exemplified in the efforts of our good friend Tom Hart, have made our budget work and that of the Senate much easier to conduct.


And what more can I say — that I have not previously said — about my friend and partner in this budget process, Senator HENRY BELLMON. He has been accurately described as the Vandenberg of the budget process.


His determination to make the budget process work and his courageous votes for fiscal responsibility should be a matter of great pride to the people of his State. They are a credit to him and to the Senate.


We are encouraged by the progress toward budget control so far this year. But the year is not over.


Further tests remain — on the mass transit bill for example — before a final appraisal can be made.


The temptation to backslide into irresponsibility is always present.


But I am much more hopeful now — than I thought I could be last spring — that the budget process is really taking hold in this Congress.


And that when we adjourn in October, we can say, "well done."

 

Mr. President, I yield the floor to my good friend from Oklahoma.