[Budget of the U.S. Government ]
[From the U.S. Government Printing Office, www.gpo.gov]
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BUDGET OF THE UNITED STATES GOVERNMENT
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Fiscal Year 1997
THE BUDGET DOCUMENTS
Budget of the United States Government, Fiscal Year 1997 contains a
summary of the President's budget proposals.
The following additional budget documents should be available the week
of March 18, 1996.
Budget of the United States Government, Fiscal Year 1997--Supplement
contains the Budget Message of the President and information on the
President's FY 1997 budget proposals.
Analytical Perspectives, Budget of the United States Government,
Fiscal Year 1997 contains analyses that are designed to highlight
specified subject areas or provide other significant presentations of
budget data that place the budget in perspective.
It includes economic and accounting analyses; information on Federal
receipts and collections; analyses of Federal spending; detailed
information on Federal borrowing and debt; the Budget Enforcement Act
preview report; current services estimates; and other technical
presentations. It also includes information on the budget system and
concepts and a listing of the Federal programs by agency and account.
Historical Tables, Budget of the United States Government, Fiscal
Year 1997 provides data on budget receipts, outlays, surpluses or
deficits, Federal debt, and Federal employment covering an extended time
period--in most cases beginning in fiscal year 1940 or earlier and
ending in fiscal year 2002. These are much longer time periods than
those covered by similar tables in other budget documents. As much as
possible, the data in this volume and all other historical data in the
budget documents have been made consistent with the concepts and
presentation used in the 1997 Budget, so the data series are comparable
over time.
Budget of the United States Government, Fiscal Year 1997--Appendix
contains detailed information on the various appropriations and funds
that constitute the budget designed primarily for the use of the
Appropriations Committee. The Appendix contains more detailed financial
information on individual programs and appropriation accounts than any
of the other budget documents. It includes for each agency: the proposed
text of appropriation language, budget schedules for each account, new
legislative proposals, explanations of the work to be performed and the
funds needed, and proposed general provisions applicable to the
appropriations of entire agencies or group of agencies. Supplemental and
rescission proposals for the current year are presented separately.
Information is also provided on certain activities whose outlays are not
part of the budget totals.
A Citizen's Guide to the Federal Budget, Budget of the United States
Government, Fiscal Year 1997 is an Office of Management and Budget
publication that provides general information about the Budget and the
budget process for the general public.
Budget System and Concepts, Fiscal Year 1997 contains an explanation
of the system and concepts used to formulate the President's budget
proposal.
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GENERAL NOTES
1. All years referred to are fiscal years, unless otherwise noted.
2. Detail in this document may not add to the totals due to rounding.
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For sale by the U.S. Government Printing Office
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ISBN 0-16-048495-2
THE WHITE HOUSE
WASHINGTON
February 5, 1996
To the Congress of the United States:
In accordance with 31 U.S.C. Sec. 1105(a), I am transmitting my 1997
Budget to Congress.
This budget provides a thematic overview of my priorities as we
continue to discuss how to balance the budget over the next seven years.
It also includes the Administration's new economic assumptions.
Because of the uncertainty over 1996 appropriations as well as
possible changes in mandatory programs and tax policy, the Office of
Management and Budget was not able to provide, by today, all of the
material normally contained in the President's budget submission.
I anticipate transmitting that material to Congress the week of
March 18, 1996.
William J. Clinton
TABLE OF CONTENTS
Page
AN AGE OF POSSIBILITY......................................... 1
AMERICA AND THE WORLD......................................... 5
A STRONGER NATION AT HOME
Strengthening Medicare................................ 8
Strengthening Medicaid and Expanding Health Coverage.. 9
Reforming Welfare..................................... 10
Making Work Pay....................................... 11
Meeting America's Challenges.......................... 12
Providing Tax Relief.................................. 13
Closing Corporate Loopholes and Other Tax Measures.... 14
SUMMARY TABLES................................................ 15
AN AGE OF POSSIBILITY
The President's 1997 Budget achieves two basic objectives:
It reaches balance in seven years, making real cuts in
entitlements and discretionary spending while providing modest
tax relief; and
It maintains our commitments to economic growth and to
protecting the most vulnerable Americans, including senior
citizens, working families, and children.
The budget strengthens Medicare and Medicaid; invests in education
and training, the environment, science and technology, and other
priorities; reforms the welfare system; provides for a strong defense;
and provides tax relief to help families raise their children, send
their children to college, and save for the future.
Reaching Balance
The budget reflects the President's most recent proposal in his
budget negotiations with the bipartisan congressional leadership.
Because it reaches balance in 2002 by basically using the economic and
technical assumptions of the Congressional Budget Office (CBO), it
fulfills a goal that the President shares with Congress. Using the
economic and technical assumptions of the Office of Management and
Budget, this budget projects a surplus of $40 billion in 2002.
The President believes that Congress should quickly enact the
savings that he and congressional leaders have in common in their budget
proposals--savings that are sufficient not only to balance the budget in
seven years, but to provide a modest tax cut. As the President said in
his State of the Union address, we should make permanent deficits a part
of yesterday's legacy.
To reach balance, this budget saves $596 billion over seven years by
reforming Federal entitlement programs, cutting deeply in discretionary
spending, and limiting corporate subsidies. It saves $124 billion in
Medicare, $59 billion in Medicaid, $40 billion in welfare programs, $56
billion in other mandatory programs, $297 billion in discretionary
spending, and $59 billion in corporate subsidies and other revenue
provisions.
The budget also includes a mechanism, known as a ``trigger,'' to
ensure that the budget reaches balance under either CBO or OMB
assumptions. Under this trigger, most of the tax cuts end after 2000 if
the deficit is not at least $20 billion below CBO's initial estimate for
that year. If, on the other hand, the deficit is at least $20 billion
below estimates, then (1) the tax cuts remain in place, and (2) the
amount that exceeds $20 billion is applied, first, to reduce the
discretionary spending cuts and, then, to a larger tax cut and more
deficit reduction.
Spurring Economic Growth
From the start, the President's economic program has emphasized one
primary concern--to raise the standard of living for average Americans
now and in the future. His budget policy has played a central role.
By cutting the deficit nearly in half in the last three years, we
have reduced Federal borrowing, making more funds available in the
private markets so that businesses can invest, grow more productive,
expand, and create jobs. We also have shifted resources to education and
training, science and technology, and other priorities, not only to make
businesses more competitive but to give Americans the skills they need
to compete in the new economy.
Like the President's previous budgets, this budget maintains his
investments in education and training, science and technology,
environmental protection, law enforcement, and other key priorities.
These include the Head Start program for disadvantaged children; the
Safe and Drug-Free Schools and Communities program to create safe
learning environments; Goals 2000, which helps States and school systems
extend high academic standards, better teaching, and better learning to
all students; AmeriCorps, through which 25,000 Americans a year serve
their communities and earn money for college; lower cost student loans
with greatly increased flexibility for repayment; Pell grant
scholarships for needy students; and Skill Grants (or job training
vouchers) for dislocated workers and low-income adults.
The budget also protects environmental enforcement through the
Environmental Protection Agency's operating program; programs to protect
national parks and other sensitive resources; and basic and applied
research and technology development. It funds the Community Oriented
Policing Services (COPS) initiative to put 100,000 more police on the
street by 2000; more border patrols to prevent illegal immigration and
more inspections to prevent the hiring of illegal immigrants; and the
Community Development Financial Institutions fund to spur growth and
create jobs in communities that have been left behind.
In addition, the budget includes funds to launch the important
initiatives that the President outlined in his State of the Union
address. In education, the budget funds an educational technology
initiative to connect every classroom to the information superhighway by
2000; expanded work-study to help one million students work their way
through college by 2000; a $1,000 merit scholarship for the top five
percent of graduates in every high school; and charter schools to let
parents, teachers, and communities create public schools to meet their
own children's needs.
For workers, the budget funds an initiative, which the White House
Conference on Small Business recommended, to make it easier for small
businesses and farmers to establish their own pension plans. For the
environment, it funds tax incentives to encourage companies to clean up
abandoned, contaminated industrial properties in distressed areas. And
for law enforcement, it provides funds with which the FBI and other law
enforcement agencies will launch a war on juvenile crime and gangs that
involve juveniles.
A Period of Change
The Nation has entered a period of profound change--from an economy
based on traditional manufacturing to one based on information--the most
profound change since the transformation from agriculture to
manufacturing a century ago. It is a period of great opportunity and
great uncertainty, a period that demands new thinking and new responses.
In this age of possibility, the United States must continue to
provide leadership across the globe and cooperate in the community of
nations, not retreat from it. At home, the public and private sectors
must work together; we cannot rely on just one or the other. Americans
of all generations must come together in the interests of all.
For this new era, we need the right kind of Government and the right
kind of policies. We need a Government that creates opportunity, not
bureaucracy, one that works with State and local governments,
businesses, and religious, charitable, and civic associations. We need
policies that grow the middle class and shrink the underclass. And we
need to invest in our future, both by balancing the budget and by
finding additional resources for education and training, the
environment, science and technology, and other priorities.
Government should not do for individuals what they can do for
themselves. We must ask more of ourselves, expect more of one another,
and meet the challenges that confront us together. We must strive to
enable all of our people to make the most of their lives with stronger
families, more educational opportunity, economic security, safer
streets, a cleaner environment, and a safer world.
The Record to Date
Three years into this Administration, the Nation is stronger and
moving in the right direction. The economy continues to grow, with the
lowest combined rates of unemployment and inflation in nearly three
decades. We have created nearly eight million new jobs--over seven
million of them in the private sector, and a million of those in basic
industries like construction and automobiles. Exports are at an all-time
high. And we have cut the budget deficit nearly in half, bringing down
interest rates and, in turn, the costs of home mortgages, car payments,
and credit card rates.
We are also cutting the size of Government. We have reduced the
Federal workforce by more than 200,000 employees in less than three
years, and we will continue to reduce the workforce in the years ahead.
Already, we have the smallest Federal workforce in 30 years; as a share
of the Nation's civilian workforce, it is the smallest since 1933.
With the help of Vice President Gore's National Performance Review,
we are streamlining the bureaucracy, overhauling the procurement system,
and delivering better service--that is, creating a Government that
``works better and costs less.'' And to ease the burden on small
businesses and average Americans, we are cutting 16,000 pages of Federal
regulations.
Meanwhile, communities across America are coming together. Crime is
down in most major cities and, across America, the poverty rate is down,
the welfare rolls are down, the Food Stamp rolls are down, the teen
pregnancy rate is down, and the divorce rate is down.
In the world at large, American leadership is strong, bringing new
hope for peace. Today, more people than ever live free and, with our
help, peace is taking root in Haiti, in Northern Ireland, in the Middle
East, and even in Bosnia, where U.S. soldiers are enforcing an historic
settlement. We are safer at home as well; today, not a single Russian
nuclear missile is aimed at America's children.
Honoring Our Commitments
To remain strong, we must do more than play a leading role on the
military and diplomatic front. We also must honor our financial
obligations. The President urges Congress to send him a straightforward,
full-year extension of the Nation's debt limit, ensuring that the United
States can honor our obligations, make timely payments to Social
Security, veterans, and other beneficiaries, and meet other commitments.
AMERICA AND THE WORLD
The President's budget provides the resources to sustain the
leadership role of the United States in the struggle for freedom and
peace throughout the world.
While some voices call for a U.S. retreat into isolationism, we have
chosen to engage. Our diplomatic leadership continues to be critical to
keeping the peace and defending our interests in major regions of the
world.
We have stimulated and led the peace process in the Middle East,
helping achieve peace between Israel and Jordan and an interim agreement
between Israel and the Palestinians and fostering continuing discussions
between Israel and Syria. In Eurasia, we have strengthened our
relationship with Russia and the other New Independent States and worked
to secure free markets and democracy in that critical region. In Europe,
we have crafted a comprehensive peace agreement among the warring
factions in Bosnia and led a cooperative NATO effort to enforce that
agreement. We also lent critical support to efforts to achieve a
settlement of the long-running conflict in Northern Ireland. In Asia, we
negotiated an agreement with North Korea that halted, and will
eliminate, its nuclear weapons program and created an international
coalition to carry out that agreement. Throughout the globe, we lead in
the struggle to strengthen democracy and free markets, with singular
successes in central Europe, Asia, Latin America, and South Africa.
Not only does our leadership secure our interests and promote our
values, it is a key ingredient in dealing with the new threats of the
post-Cold War era. Leading the global effort for arms reductions and
nonproliferation continues to be an integral element of our diplomacy
and national security strategy. Our efforts support a broad range of
programs to reduce the threat of nuclear and chemical weapons. We are
making our children's future safer by reducing existing arsenals and
ensuring that rogue states and terrorist groups do not acquire these
terrible weapons or the materials and technologies needed to make them.
Other threats know no national borders; America must lead in
confronting such problems as ethnic and national conflicts which
threaten regional stability; terrorism, international crime, and drug
trafficking, which directly threaten our free and open society; and
large-scale environmental degradation.
More than ever, our domestic and foreign economic interests are
closely intertwined, and mutually reinforcing. Economic and trade issues
are increasingly at the forefront of our diplomacy. We need a strong
economy to sustain our military forces and diplomatic strategy. And we
must be global leaders in trade and investment if we are to open foreign
markets and create the high-wage jobs that will raise the living
standards of our people.
With regard to trade, we have created new markets across the world
for our exports, which have reached an all-time high. Along with
securing legislation to implement the General Agreement on Tariffs and
Trade and the North American Free Trade Agreement, we have completed
over 80 other trade agreements.
Our defense capability is the bulwark which sustains and supports
our diplomacy. This budget continues our critical support for the
world's strongest and most ready military force--a force designed to
fight successfully two nearly simultaneous regional conflicts. Our
weapons are state-of-the-art, and our military is the best equipped,
best trained, and best prepared in the world.
When necessary, we have sent the men and women of our military into
action. Only when U.S. forces were about to land could our negotiators
convince the unwelcome dictators to leave Haiti; we then reinstalled the
democratically-elected leader and, in the process, stemmed the large-
scale migration from Haiti to our borders. We worked with NATO forces to
bring a cease-fire to Bosnia. With Iraq once again threatening Kuwait,
we moved quickly to send additional forces to the region. And we saved
hundreds of thousands of lives by employing our military forces in
humanitarian efforts in Rwanda.
America cannot be everywhere, nor can we do everything. But where
our interests and values are sufficiently at stake and our action can
make a difference, the United States must act. In this age of
possibility, it is clear that this Nation must continue to lead; our
leadership has not only helped to bring peace to long-warring nations,
but it also builds on a half-century of security and prosperity that
Americans continue to enjoy.
A STRONGER NATION AT HOME
This budget reaches balance in seven years in the right way--by
cutting wasteful spending while upholding our commitments to senior
citizens, to children, to working families, and to the needy.
It achieves a balanced budget in 2002, a goal to which the President
is committed, by basically using the economic and technical assumptions
of the Congressional Budget Office; and it achieves a surplus of $40
billion under economic and technical assumptions of the Office of
Management and Budget. But it also protects our fundamental values as
Americans.
The President and congressional leaders have worked hard to find
agreement on a plan to balance the budget over seven years. While they
have not finished the job, the President believes strongly that their
negotiations have been productive and have brought the two sides closer
together. He is committed to doing whatever he can to complete the task.
In their talks, the President and the leaders have outlined a
variety of proposals. The minimum amounts of savings which the plans
have in common in the major budget categories (e.g., $124 billion in
Medicare, $297 billion in discretionary spending) add to some $700
billion--enough to balance the budget and also provide a modest tax cut.
To be sure, significant policy differences remain in the
negotiations--over the size and distribution of a tax cut; whether
Medicaid continues to guarantee health coverage to senior citizens, the
poor, and people with disabilities; and so on. But the President
believes the Administration and Congress should balance the budget now,
setting aside the remaining policy differences for another day. He has
proposed that the two sides quickly enact the savings that they have in
common and give the American people a balanced budget.
The President's budget saves $596 billion over seven years. Among
its major elements, the budget:
saves $124 billion in Medicare, strengthening and improving
the program and guaranteeing the solvency of the Part A trust
fund for over a decade;
saves $59 billion in Medicaid, reforming the program but
continuing the guarantee of meaningful health and long-term
care coverage for the most vulnerable Americans;
saves $40 billion through real welfare reform, moving
recipients to work while protecting children;
saves $297 billion in discretionary spending, cutting
wasteful and lower priority spending but investing in
education and training, the environment, science and
technology, law enforcement, and other priorities that will
raise living standards and improve the quality of American
life;
cuts taxes by $99 billion, providing tax relief to tens of
millions of middle-income Americans and to small businesses;
and
saves $59 billion by ending corporate subsidies and other tax
loopholes.
These major elements of the President's budget are described in more
detail below.
STRENGTHENING MEDICARE
The President's Medicare plan strengthens and improves the program,
reducing spending by a net $124 billion over seven years and
guaranteeing the solvency of the trust fund for more than a decade.
Specific reforms give seniors more choices among private health plans,
make Medicare more efficient and responsive to beneficiary needs, attack
fraud and abuse through programs praised by law enforcement officials,
cut the growth rate of provider payments, and hold the Part B Premium at
25 percent of program costs.
Provider Payment Reforms and Program Savings
Hospitals. The budget reduces the annual inflation increase or
``update'' for hospitals and payments for capital; reforms
payments for Disproportionate Share Hospitals; and reforms the
payment method for outpatient departments while protecting
beneficiaries from increasing charges for those services.
Managed Care. The budget reforms payments by using reasonable
rate-of-growth limits on updates for managed care payments and
reducing the current geographic variation in payments.
Physicians. The budget reforms physician payments by paying a
single update for all physicians and replaces current ``volume
performance standards'' with a sustainable growth rate.
Home Health Care/Skilled Nursing Facilities. The budget
implements a series of interim payment reforms before the
establishment of separate prospective payment systems for home
health care and skilled nursing facilities.
Fraud and Abuse. The budget introduces aggressive and
comprehensive policies to stamp out Medicare waste, fraud, and
abuse, and extends and enhances Medicare secondary payor
policy to ensure that Medicare pays only when it should.
Other Providers. The budget freezes or reduces payments for
durable medical equipment and ambulatory surgical centers.
Beneficiaries. The budget continues, but does not increase,
the requirement that beneficiaries pay 25 percent of Part B
costs.
Provisions to Improve Rural Health Care
The President's plan enhances access to, and the quality of, health
care in rural areas. To do so, it extends the Rural Referral Center
program, directs Medicare reimbursement for nurse practitioners and
physician assistants, improves the Sole Community Hospital program, and
expands the Rural Primary Care Hospital program.
Program Improvements That Expand Choices and Add Preventive Benefits
The President's plan transforms the traditional fee-for-service
program from a bill-paying insurance program into a responsive health
plan by giving Medicare the authority to adopt many of the purchasing
and quality techniques pioneered by private sector payors.
The budget also expands and improves Medicare managed care by:
ensuring beneficiary protections while increasing the types
of plans--including Preferred Provider Options (PPOs) and
Provider Service Networks (PSNs)--available to seniors; and
instituting a coordinated annual open enrollment process--
similar to that used by the Federal Employees Health Benefits
Plan (FEHBP)--during which beneficiaries use comparative
information to choose among managed care and supplemental
insurance options.
In addition, the budget expands coverage of preventive benefits to
include annual mammograms and the elimination of mammography
coinsurance, colorectal cancer screening, and increased payments for flu
shots. Finally, the budget introduces a respite care benefit to provide
some relief for families caring for relatives with Alzheimer's disease.
STRENGTHENING MEDICAID AND EXPANDING HEALTH COVERAGE
The President's plan for Medicaid reforms the program but preserves
the guarantee of health and long-term coverage for the most vulnerable
Americans. It saves $59 billion over seven years responsibly, by
limiting spending on a per-person basis (a ``per capita cap'') and
reducing Disproportionate Share Hospital payments and retargeting them
to hospitals that serve large numbers of Medicaid and uninsured
patients.
The plan provides special payments for States to transition into the
new system, and to meet the most pressing needs. It also gives States
unprecedented flexibility to administer their programs more efficiently.
Finally, this plan retains current nursing home quality standards and
continues to protect the spouses of nursing home residents from
impoverishment.
Program Savings
Per capita cap. Under the budget, a per capita cap limits
Federal spending growth per person while retaining current
eligibility and benefit guidelines. This approach guarantees
that the elderly, people with disabilities, and pregnant women
and children who depend on Medicaid will remain eligible for
health benefits while it cuts the rate of increase in spending
to a level that States and the Federal Government can support.
In contrast to a block grant, the Administration's plan
protects States facing population growth or economic
downturns.
Disproportionate Share Hospital Payments (DSH). The budget
reduces DSH payments and retargets them to hospitals that
serve a large proportion of Medicaid and uninsured patients,
including children's and public hospitals. It provides special
payments for Federally Qualified Health Centers, Rural Health
Clinics, and States with large numbers of undocumented
immigrants.
Provisions to Increase State Flexibility
The budget includes a number of policies to give States more
flexibility in managing their Medicaid programs, such as:
Boren amendment. The plan repeals the so-called ``Boren
amendment,'' eliminating Federal provider payment requirements
for hospitals and nursing homes.
Managed care. The plan allows States to enroll beneficiaries
in managed care without Federal waivers.
Home- and community-based care. The plan allows States to move
populations who need long-term care from nursing homes to
home- and community-based settings, without having to seek
Federal waivers.
Coverage expansions without waivers. The plan enables States,
without waivers, to expand coverage to any person whose income
is less than 150 percent of the poverty line.
Protections for Low-income Seniors and Native Americans
The President's plan retains the policy of helping low-income
seniors through the shared Federal-State responsibility for their
Medicare premiums, copayments, and deductibles. It also retains payment
protections for Medicaid-eligible Native Americans treated in Indian
Health Service facilities. These protections are not subject to the per
capita cap.
Reforms to Make Health Coverage More Accessible and Affordable
In his State of the Union address, the President challenged Congress
to enact insurance reforms that would enable more Americans to maintain
health insurance coverage when they change jobs, and stop insurance
companies from denying coverage for pre-existing conditions. This budget
requires that plans make coverage available to all groups of businesses,
regardless of the health status of any group members. Insurers would
have to provide an open enrollment period of at least 30 days for all
new employees (whether or not they were previously insured), and
insurers could not individually underwrite new enrollees--i.e., their
premiums would have to match other enrollees' with similar demographic
characteristics.
To increase affordability, the President's insurance reforms phase
out the use of claims experience, duration of coverage, and health
status in determining rates for small businesses. To put the self-
employed on a more equal footing with other businesses, the reforms
gradually raise the self-employed tax deduction from 30 to 50 percent.
And to help give small businesses the purchasing clout that larger
businesses have, the budget gives technical assistance and $25 million a
year in grants with which States can set up voluntary purchasing
cooperatives.
Health Insurance for the Temporarily Unemployed
The budget gives individuals who lose their health insurance when
they lose their jobs premium subsidies to pay for private insurance
coverage for up to six months. States would receive funding to design
and administer the program, which would provide coverage for about 3.8
million Americans a year. During the four-year period for which this
program is authorized, a Commission would study and provide
recommendations to the Administration and Congress as to making it
permanent.
REFORMING WELFARE
For too long the welfare system has undermined the values of work
and family, not strengthened them. The Administration has made steady
progress in reforming welfare. In 1993, the President's economic plan
gave tax cuts to 15 million working families through the Earned Income
Tax Credit, which rewards work over welfare. The Federal Government
collected a record $10 billion in child support in 1994. The
Administration has given 35 States the freedom to experiment with
welfare initiatives to move people from welfare to work and protect
children.
The President is determined to keep working with Congress to enact a
bipartisan welfare reform bill that moves people from welfare to work
and protects children. The President's plan repeals the existing system,
replacing it with one that requires work and provides child care so
people can leave welfare for work. It saves $40 billion over seven years
while promoting sweeping work-based reform and protecting children.
Time-Limited Employment Assistance and Child Protection
Everyone who can work should go to work, and no one who can work
should be able to stay on welfare forever. The budget repeals Aid to
Families with Dependent Children (AFDC) and replaces it with a new,
time-limited, conditional entitlement in return for work. Within two
years, parents must go to work or lose their benefits, and after five
years, benefits end. The budget gives States new flexibility to design
their own approach to welfare reform. At the same time, the plan
provides vouchers for children whose parents reach the time limit, and
protects States in the event of economic downturn or population growth.
The budget authorizes $3.8 billion above current law for child care
to move recipients from welfare to work, and to help the working poor.
It also includes an $800 million performance bonus fund to reward States
that move people from welfare to work. It has tough new child support
enforcement measures and a new Work First program to make welfare a
transitional work-based system. And it preserves the national commitment
to foster care and adoption assistance programs, preserving States'
ability to respond to growing caseloads.
Supplemental Security Income (SSI) For Disabled Children and Others
The budget tightens eligibility standards for childhood disability
benefits; retains full cash benefits for all eligible children; tightens
eligibility for children now on the rolls, but provides that children
found ineligible would not lose benefits until January 1998; trims cash
benefits of children in families with relatively higher incomes;
eliminates eligibility for SSI on the basis of drug addiction or
alcoholism; adds resources for more continuing disability reviews; and
provides new tools to collect SSI overpayments.
Food Stamps and Child Nutrition
The budget maintains the national nutrition safety net for the Food
Stamp and Child Nutrition programs, enabling them to respond to the
changing circumstances of families and children they serve.
Under the budget, the Food Stamp program continues to index basic
benefits to inflation; all energy assistance counts as income; a work
requirement makes adults aged 18 to 50 with no dependents ineligible for
Food Stamps after six months of each year unless they work 20 hours a
week or participate in workfare or training (although eligibility
continues if a State fails to supply a training or workfare slot); and
new integrity measures crack down on fraudulent Food Stamp trafficking
and reduce program waste.
The budget better targets food subsidies for Family Day Care Homes,
and makes other minor changes in Child Nutrition programs.
Title XX
The President's plan cuts the Social Services Block Grant by 10
percent, beginning in 1996.
Benefits for Legal Immigrants
The budget tightens sponsorship and eligibility rules for SSI, Food
Stamps, and AFDC for non-citizens, forcing sponsors to bear greater
responsibility for those they encourage to come to the United States. It
counts (or ``deems'') sponsors' income in determining whether immigrants
are eligible for benefits--until immigrants become citizens.
It also preserves eligibility for Medicaid; maintains the exemption
for the disabled and the very elderly from deeming; and establishes a
uniform definition of eligibility across the AFDC, Food Stamps, SSI, and
Medicaid programs.
MAKING WORK PAY
Reward should follow responsibility. Those who play by the rules--
who work hard, especially to support a family--should see the benefit of
their efforts. With wages at the low end of the income scale often
lagging, and with the task of parenting only getting harder, the budget
provides support to make that hard work pay.
The Earned Income Tax Credit (EITC)
The budget ensures that low- and moderate-income taxpayers are
rewarded for work and helped in meeting their family responsibilities
through the EITC. The budget protects the EITC's dramatic expansion of
1993 that helped reward work for over 15 million families and
households. Consistent with the Administration's multi-faceted efforts
to improve compliance, the budget saves $5 billion by improving both the
targeting of the EITC and compliance while continuing to ensure that
eligible and deserving workers can claim and receive the EITC.
The Minimum Wage
In terms of purchasing power, the minimum wage is near a 40-year
low. It is well below the minimum needed for a full-time, full-year
worker to support a family. The best economic evidence suggests that a
moderate increase in the minimum wage would improve the standard of
living of millions of workers at little or no economic cost. The
President proposes to increase the minimum wage from $4.25 to $5.15 per
hour, in two equal steps.
MEETING AMERICA'S CHALLENGES
The budget cuts discretionary spending by $297 billion over seven
years, while investing in education and training; the environment;
science and technology; law enforcement; and other priorities to help
raise living standards and the quality of life for average Americans.
While shifting available resources to high-priority investments, the
budget also makes choices among non-investment programs. It limits cuts
in the most important of those non-investments by eliminating others and
applying recommendations of the National Performance Review on cutting
red tape and bureaucracy.
Nothing is more important to future living standards than education
and training. The workers of today and tomorrow will need the best
education and skills they can get to acquire high-wage jobs in the new
global economy. The budget funds a broad agenda of life-long learning by
investing in Head Start for disadvantaged children; the Safe and Drug-
Free Schools and Communities program to create safe learning
environments; Goals 2000 to help States and school systems extend high
academic standards, better teaching, and better learning to all
students; AmeriCorps to help young Americans serve their communities and
earn money for college; expanded college scholarships to cover more
recipients and increase the maximum grants; and, finally, expanded
School-to-Work opportunities and improved job training for dislocated
workers and low-income adults. It also funds an educational technology
initiative to make children technologically literate and connect every
classroom to the information superhighway by 2000; expanded work-study
to help one million students work their way through college by 2000; a
$1,000 merit scholarship for the top five percent of graduates in every
high school; and charter schools to let parents, teachers, and
communities create public schools to meet their own children's needs.
The budget protects the environment and public health, placing a
priority on environmental enforcement and increasing funds for the
Environmental Protection Agency's operating program--the backbone of our
efforts to protect the environment. It continues the President's
commitment to protect the national parks and forests, wildlife refuges,
other public lands, sensitive ecosystems (such as the Northwest Forests
and South Florida Everglades), and marine sanctuaries. The budget funds
Superfund to protect residents near toxic waste sites, and gives States
more flexibility to ensure water quality by consolidating the Clean
Water and Safe Drinking Water revolving funds. In addition, the budget
supports the Agriculture Department's Water 2000 initiative to bring
clean water to rural areas. It also promotes energy efficiency in
Government-owned and operated buildings and in privately-owned buildings
through voluntary partnerships, and promotes the use of alternative
energy sources. It provides funds to address a wide range of research
and international environmental challenges, including global climate
change, ozone depletion, and commitments under the North American Free
Trade Agreement. It also funds tax incentives to encourage companies to
clean up ``brownfields''--abandoned, contaminated industrial properties
in distressed areas.
The budget also invests in science and technology, through a
balanced mix of basic research, applied research, and technology
development, including through cooperative projects with private
industry and universities. It adds funds for biomedical and behavioral
research at the National Institutes of Health, for basic research and
education at the National Science Foundation, for basic research at NASA
(including Mission to Planet Earth) and other agencies, and for such
important initiatives as the Advanced Technology Program and the
Technology Reinvestment Project.
Finally, the budget continues the President's aggressive efforts to
combat crime, which have helped to dramatically reduce violent crime in
major cities. The budget fully funds the President's Community Oriented
Policing Services (COPS) initiative, adding 23,000 more police in local
communities across the country, bringing the total additional police
under COPS to 100,000 by 2000. Also, it funds the Violent Crime
Reduction Trust Fund that, among other things, will expand support for
State and local crime-fighting activities and prisons. It provides funds
with which the FBI and other law enforcement agencies will launch a war
on juvenile crime and gangs that involve juveniles. And it funds more
border patrols to prevent illegal immigration and more inspections to
prevent the hiring of illegal immigrants.
PROVIDING TAX RELIEF
The President's plan targets tax relief to middle-income Americans
through his Middle Class Bill of Rights, which he originally proposed in
last year's budget. This new plan also includes estate tax relief for
small businesses and family farms, expanded expensing for small
businesses, pension simplification, and the ``brownfields'' initiative
cited in the previous section.
Middle Class Bill of Rights
The President again proposes the three features of his Middle Class
Bill of Rights, and enhances the proposed child credit.
(1) The budget phases in a $500 tax credit for dependent children.
The full credit is available for families with incomes of under $60,000,
and the credit is phased out at incomes of $75,000. The taxpayer will
first calculate the effect of the child credit (and all other credits)
and then calculate the EITC; this makes the EITC more valuable to
moderate-income working families with children.
(2) The budget phases in a $10,000 tax deduction for education and
training expenses, including college tuition.
(3) The budget expands Individual Retirement Accounts (IRAs), such
as by doubling over time the income limits for tax-deductible IRAs and
allowing families to make tax-free withdrawals for a range of
educational, housing, and medical needs.
Small Business Estate Tax Relief Act of 1996
To address the liquidity problems that may arise upon the death of a
farmer or small business owner, the budget increases the amount of
property eligible for a favorable four percent interest rate on deferred
estate tax from $1,000,000 to $2,500,000. It also extends the
eligibility for deferral to additional entities, and it extends the
five-year interest-free deferral period and four percent interest rate
provision to certain entities that cannot now take advantage of them.
Small Business Expensing
As the President advocated in 1993, and as Congress has now agreed
by including it in the Balanced Budget Act, the budget increases the
amount of tangible depreciable property that small businesses can
expense each year from $17,500 to $25,000. (The increase will be phased
in by annual increments.)
Pension Simplification
Building on bipartisan efforts in Congress, the President proposes
to simplify rules (and expand coverage) for pension plans sponsored by
businesses of all sizes, nonprofit organizations, and State and local
governments, as well as for multiemployer plans. The budget includes a
new, simple retirement savings plan (the National Employee Savings Trust
or the NEST) for small businesses that combines the most attractive
features of the IRA and the 401(k) plan, minimizes administrative and
compliance costs, and eliminates the need for employer involvement with
the Government.
CLOSING CORPORATE LOOPHOLES AND OTHER TAX MEASURES
The budget saves $59 billion by cutting corporate tax subsidies,
closing loopholes, and improving tax compliance. It includes provisions
that the President proposed in December and others.
For example, the budget prevents corporations from achieving tax
arbitrage by deducting interest on borrowings against life insurance
policies on their employees or where the corporation owns tax-exempt
obligations; addresses recent developments in tax-motivated financial
products; curtails manipulation of the tax accounting rules; and
tightens existing rules that are designed to prevent tax avoidance
through expatriation and the use of foreign trusts.
The Administration continues to support revenue neutral initiatives
to promote sensible and equitable administration of the tax laws. These
include tax simplification initiatives and technical corrections.
In addition, the Administration supports, and wants to work with
Congress to provide, revenue neutral extension of various tax provisions
that have expired.
SUMMARY TABLES
The Congressional Budget Office has not estimated all of the proposals in the President's budget. Therefore,
the following tables that use CBO December economic and technical assumptions include: (1) CBO estimates of
proposals where available and (2) OMB estimates based on CBO's December baseline where specific CBO estimates
are not available.
The remaining tables use OMB's July technical assumptions because OMB and the agencies have not completed
their revisions. The budget documents to be released in March will contain estimates using the economic
assumptions contained in this budget and updated technical assumptions.
Table 1. The President's Budget Proposals Under CBO Assumptions
(Uses CBO December economic and technical assumptions, in billions of dollars)
----------------------------------------------------------------------------------------------------------------
1996 1997 1998 1999 2000 2001 2002 7 Year
----------------------------------------------------------------------------------------------------------------
Baseline deficit \1\........................ 172.8 180.7 179.9 192.2 199.9 204.3 221.1 1,350.8
Savings:
Discretionary............................. -12.5 -10.4 -18.6 -34.5 -50.9 -73.9 -96.6 -297.4
Mandatory:
Medicare................................ -2.6 -5.7 -9.1 -16.6 -22.9 -27.3 -40.1 -124.2
Medicaid................................ ...... -2.0 -3.1 -8.2 -10.3 -16.0 -19.4 -59.0
Welfare reform.......................... -* -4.9 -6.0 -6.4 -6.9 -7.1 -8.4 -39.8
EITC \2\................................ -* -0.7 -0.8 -0.8 -0.8 -0.9 -0.9 -5.0
Other mandatory......................... -4.4 -1.9 -1.5 -3.6 -5.4 -8.1 -26.0 -51.0
-------------------------------------------------------------------
Total, mandatory...................... -7.0 -15.3 -20.6 -35.6 -46.3 -59.4 -94.9 -279.0
Tax cuts.................................. 3.3 14.2 16.1 18.5 24.8 19.5 2.1 98.5
Corporate loopholes and other............. -1.7 -7.1 -8.7 -9.5 -10.2 -10.4 -11.9 -59.4
-------------------------------------------------------------------
Total, policy proposals................... -18.0 -18.5 -31.9 -61.2 -82.5 -124.2 -201.2 -537.4
Debt service.............................. -0.5 -1.6 -3.0 -5.5 -9.2 -14.7 -23.6 -58.1
-------------------------------------------------------------------
Total savings............................... -18.5 -20.1 -34.9 -66.7 -91.7 -138.9 -224.8 -595.5
Deficit/surplus............................. 154.4 160.6 145.0 125.5 108.1 65.4 -3.7 755.3
----------------------------------------------------------------------------------------------------------------
* Less than $50 million.
\1\ OMB has adjusted CBO's December baseline to remove the directed scorekeeping of student loan administrative
costs and to reflect the pending Supreme Court review of a lower court decision on accounting for
``goodwill''.
\2\ Includes EITC revenues.
Table 2. The President's Budget Proposals Under OMB Assumptions--Excluding Effects of ``Fiscal Dividend''
(Uses OMB July economic and technical assumptions, in billions of dollars)
----------------------------------------------------------------------------------------------------------------
1996 1997 1998 1999 2000 2001 2002 7 Year
----------------------------------------------------------------------------------------------------------------
Baseline deficit............................ 185.4 196.8 194.5 202.2 208.4 206.5 215.5 1,409.3
Adjustments:
BLS adjustments......................... ...... -* -1.0 -3.4 -6.4 -9.5 -13.6 -33.8
Fiscal bonus............................ -1.6 -8.6 -17.5 -26.7 -36.4 -46.8 -56.0 -193.6
Subtotal, adjustments..................... -1.6 -8.6 -18.5 -30.0 -42.7 -56.2 -69.6 -227.4
December base............................... 183.8 188.1 176.0 172.2 165.6 150.2 145.9 1,181.9
Savings:
Discretionary............................. -12.5 -10.4 -18.3 -35.3 -52.8 -77.1 -100.5 -306.9
Mandatory:
Medicare \1\............................ -2.6 -5.7 -9.1 -16.6 -22.9 -27.3 -40.1 -124.2
Medicaid \1\............................ ...... -2.0 -3.1 -8.2 -10.3 -16.0 -19.4 -59.0
Welfare reform.......................... -0.3 -5.1 -5.7 -6.1 -6.8 -7.1 -8.5 -39.5
EITC \2\................................ -0.0 -0.9 -1.1 -1.1 -1.0 -1.0 -1.0 -6.1
Other mandatory......................... -6.8 -0.8 -4.8 -5.1 -7.3 -11.8 -30.5 -67.1
-------------------------------------------------------------------
Total, mandatory...................... -9.6 -14.5 -23.8 -37.1 -48.4 -63.2 -99.4 -295.9
Tax cuts.................................. 4.6 13.5 14.5 17.7 22.8 14.8 0.8 88.6
Corporate loopholes and other............. -1.9 -6.3 -7.7 -9.1 -9.8 -10.1 -11.7 -56.6
-------------------------------------------------------------------
Total, policy proposals................... -19.5 -17.7 -35.3 -63.7 -88.2 -135.6 -210.8 -570.9
Debt service.............................. -0.6 -1.7 -3.2 -5.9 -10.0 -16.2 -25.3 -62.7
-------------------------------------------------------------------
Total savings............................... -20.1 -19.4 -38.5 -69.6 -98.2 -151.8 -236.1 -633.6
Deficit/surplus............................. 163.7 168.8 137.5 102.6 67.5 -1.5 -90.3 548.3
MEMORANDUM:
Deficit/surplus with February economic
assumptions \3\............................ 152.0 148.7 113.3 80.0 50.8 -9.9 -91.6 443.3
----------------------------------------------------------------------------------------------------------------
* Less than $50 million.
\1\ Administration estimates have not been completed for Medicaid and Medicare proposals; therefore, these
estimates use CBO December economic and technical assumptions.
\2\ Includes EITC revenues.
\3\ Includes preliminary estimate based on the Administration's February economic assumptions and July technical
assumptions.
Table 3. Application of the ``Fiscal Dividend'' to the President's Budget Proposals
(In billions of dollars)
----------------------------------------------------------------------------------------------------------------
1996 1997 1998 1999 2000 2001 2002
----------------------------------------------------------------------------------------------------------------
Deficit or surplus assuming tax cuts expire on December 31, 2000:
CBO December economics.................. -154.4 -160.6 -145.0 -125.5 -108.1 -65.4 3.7
OMB February economics.................. -152.0 -148.7 -113.3 -80.0 -50.8 9.9 91.6
---------------------------------------------------------------------
Difference............................ 2.4 11.9 31.8 45.4 57.3 75.3 87.9
Trigger impact on OMB estimates:
Step 1--Continue tax cut................ (20.0) -9.3 -23.7
Step 2--Increase discretionary spending. (20.0) -20.0 -20.0
Step 3:
(3)Not applicable
Further discretionary increases....... (5.8) -5.8 -5.8
Reserved for additional tax cuts...... (5.8) (-5.8) (-5.8)
Reserved for deficit reduction........ (5.8) 0.0 0.0
Debt service.......................... -0.8 -2.7
---------------------------------------------------------------------
Total trigger............................. (57.3) -35.9 -52.1
OMB February deficit or surplus........... -152.0 -148.7 -113.3 -80.0 -50.8 -26.0 39.5
----------------------------------------------------------------------------------------------------------------
Table 4. The President's Budget Proposals Under OMB Assumptions--Including Effects of ``Fiscal Dividend''
(Uses OMB July economic and technical assumptions, in billions of dollars)
----------------------------------------------------------------------------------------------------------------
1996 1997 1998 1999 2000 2001 2002 7 Year
----------------------------------------------------------------------------------------------------------------
Baseline deficit........................ 185.4 196.8 194.5 202.2 208.4 206.5 215.5 1,409.3
Adjustments:
BLS adjustments..................... ....... -* -1.0 -3.4 -6.4 -9.5 -13.6 -33.8
Fiscal bonus........................ -1.6 -8.6 -17.5 -26.7 -36.4 -46.8 -56.0 -193.6
-----------------------------------------------------------------------
Subtotal, adjustments................. -1.6 -8.6 -18.5 -30.0 -42.7 -56.2 -69.6 -227.4
-----------------------------------------------------------------------
December base........................... 183.8 188.1 176.0 172.2 165.6 150.2 145.9 1,181.9
Savings:
Discretionary......................... -12.5 -10.4 -18.3 -35.3 -52.8 -51.3 -74.7 -255.3
Mandatory:
Medicare \1\........................ -2.6 -5.7 -9.1 -16.6 -22.9 -27.3 -40.1 -124.2
Medicaid \1\........................ ....... -2.0 -3.1 -8.2 -10.3 -16.0 -19.4 -59.0
Welfare reform...................... -0.3 -5.1 -5.7 -6.1 -6.8 -7.1 -8.5 -39.5
EITC \2\............................ -0.0 -0.9 -1.1 -1.1 -1.0 -1.0 -1.0 -6.1
Other mandatory..................... -6.8 -0.8 -4.8 -5.1 -7.3 -11.8 -30.5 -67.1
-----------------------------------------------------------------------
Total, mandatory.................. -9.6 -14.5 -23.8 -37.1 -48.4 -63.2 -99.4 -295.9
Tax cuts.............................. 4.6 13.5 14.5 17.7 22.8 24.1 24.5 121.6
Corporate loopholes and other......... -1.9 -6.3 -7.7 -9.1 -9.8 -10.1 -11.7 -56.6
-----------------------------------------------------------------------
Total, policy proposals............... -19.5 -17.7 -35.3 -63.7 -88.2 -100.5 -161.4 -486.3
Debt service.......................... -0.6 -1.7 -3.2 -5.9 -10.0 -15.4 -22.6 -59.3
-----------------------------------------------------------------------
Total savings........................... -20.1 -19.4 -38.5 -69.6 -98.2 -115.9 -184.0 -545.5
Effect of February economic assumptions. -11.7 -20.1 -24.3 -22.6 -16.6 -8.4 -1.4 -105.0
Deficit/surplus with February economic
assumptions \3\........................ 152.0 148.7 113.3 80.0 50.8 26.0 -39.5 531.3
----------------------------------------------------------------------------------------------------------------
* Less than $50 million.
\1\ Administration estimates have not been completed for Medicaid and Medicare proposals; therefore, these
estimates use CBO December economic and technical assumptions.
\2\ Includes EITC revenues.
\3\ Includes preliminary estimate based on the Administration's February economic assumptions and July technical
assumptions.
Table 5. The President's Budget Under CBO Assumptions
(Uses CBO December economic and technical assumptions, in billions of dollars)
----------------------------------------------------------------------------------------------------------------
1996 1997 1998 1999 2000 2001 2002 7 Year
----------------------------------------------------------------------------------------------------------------
Outlays:
Discretionary...................... 539.0 543.5 537.4 537.6 537.9 531.9 527.4 3,754.8
Mandatory:
Medicare......................... 173.9 189.2 203.9 216.7 231.9 250.9 263.5 1,529.9
Medicaid......................... 97.2 105.2 115.0 121.5 132.2 140.8 153.2 865.1
Other............................ 522.1 554.3 585.7 617.1 649.0 671.5 688.5 4,288.2
------------------------------------------------------------------------
Subtotal, mandatory................ 793.2 848.7 904.6 955.2 1,013.0 1,063.2 1,105.2 6,683.2
Net interest....................... 243.0 247.4 249.3 248.9 246.1 246.3 246.3 1,727.3
------------------------------------------------------------------------
Total outlays........................ 1,575.1 1,639.6 1,691.3 1,741.8 1,797.0 1,841.4 1,878.9 12,165.2
Revenues............................. 1,420.8 1,479.0 1,546.3 1,616.3 1,688.9 1,776.0 1,882.6 11,409.9
------------------------------------------------------------------------
Deficit/surplus........................ -154.4 -160.6 -145.0 -125.5 -108.1 -65.4 3.7 -755.3
----------------------------------------------------------------------------------------------------------------
Table 6. The President's Budget Under OMB Assumptions--Excluding Effects of ``Fiscal Dividend''
(Uses OMB July economic and technical assumptions, in billions of dollars)
----------------------------------------------------------------------------------------------------------------
1996 1997 1998 1999 2000 2001 2002 7 Year
----------------------------------------------------------------------------------------------------------------
Outlays:
Discretionary..................... 539.0 543.5 537.4 537.6 537.9 531.9 527.4 3,754.8
Mandatory:
Medicare........................ 174.2 188.5 202.7 213.1 228.2 247.3 259.9 1,513.8
Medicaid........................ 96.1 102.5 111.3 116.3 126.1 132.8 143.0 828.1
Other........................... 524.8 561.3 586.1 612.9 642.9 659.3 673.6 4,260.9
-------------------------------------------------------------------------
Subtotal, mandatory............... 795.0 852.4 900.1 942.3 997.2 1,039.4 1,076.5 6,602.9
Net interest...................... 244.6 249.3 252.2 255.1 254.4 251.0 242.9 1,749.4
-------------------------------------------------------------------------
Total outlays....................... 1,578.6 1,645.2 1,689.7 1,735.0 1,789.5 1,822.4 1,846.8 12,107.1
Revenues............................ 1,414.9 1,476.4 1,552.2 1,632.4 1,722.0 1,823.9 1,937.0 11,558.8
-------------------------------------------------------------------------
Deficit/surplus....................... -163.7 -168.8 -137.5 -102.6 -67.5 1.5 90.3 -548.3
----------------------------------------------------------------------------------------------------------------
Table 7. COMPARISON OF ECONOMIC ASSUMPTIONS
(Calendar years)
----------------------------------------------------------------------------------------------------------------
1995 1996 1997 1998 1999 2000 2001 2002
----------------------------------------------------------------------------------------------------------------
Nominal GDP \1\:
Level, billions of dollars:
1996 Mid-Session Review................... 7,091 7,470 7,879 8,310 8,765 9,245 9,745 10,268
CBO December baseline..................... 7,079 7,418 7,788 8,173 8,577 9,002 9,447 9,915
1997 Budget............................... 7,078 7,428 7,805 8,203 8,623 9,058 9,523 10,005
Percent change, fourth quarter over fourth
quarter:
1996 Mid-Session Review.................. 4.7 5.5 5.5 5.5 5.5 5.5 5.4 5.4
CBO December baseline.................... 4.3 5.0 5.0 4.9 5.0 4.9 5.0 5.0
1997 Budget.............................. 4.2 5.1 5.1 5.1 5.1 5.1 5.1 5.1
CPI-U, percent change, fourth quarter over
fourth quarter:
1996 Mid-Session Review..................... 3.2 3.2 3.2 3.2 3.1 3.1 3.1 3.1
CBO December baseline...................... 2.9 3.2 3.1 2.9 2.9 2.9 2.9 3.0
CBO December adjusted \2\.................. 2.9 3.2 2.9 2.8 2.8 2.8 2.8 2.9
1997 Budget................................ 2.7 3.1 2.9 2.8 2.8 2.8 2.8 2.8
Unemployment rate, percent:
1996 Mid-Session Review.................... 5.8 5.9 5.8 5.8 5.8 5.8 5.8 5.8
CBO December baseline...................... 5.6 5.9 6.0 6.0 6.0 6.0 6.0 6.0
1997 Budget................................ 5.6 5.7 5.7 5.7 5.7 5.7 5.7 5.7
Interest rates, percent:
91-day Treasury bills:
1996 Mid-Session Review.................. 5.7 5.4 5.2 5.0 4.8 4.6 4.6 4.4
CBO December baseline.................... 5.5 5.3 5.0 4.7 4.2 3.9 3.9 3.9
1997 Budget.............................. 5.5 4.9 4.5 4.3 4.2 4.0 4.0 4.0
10-year Treasury notes:
1996 Mid-Session Review.................. 6.6 6.5 6.6 6.4 6.2 6.0 5.8 5.6
CBO December baseline.................... 6.6 5.8 5.6 5.5 5.5 5.5 5.5 5.5
1997 Budget.............................. 6.6 5.6 5.3 5.0 5.0 5.0 5.0 5.0
----------------------------------------------------------------------------------------------------------------
\1\ Assumptions do not reflect NIPA revisions announced on January 19, 1996.
\2\ Reflects assumption that January 1997 correction for formula bias will reduce CPI growth by 0.3 percentage
points per year, as incorporated in CBO scoring of the Administration's January 6, 1996, offer.
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Information Desk at (202) 512-1800 to verify prices. To fax your orders
and inquiries--(202) 512-2250.
Price Total
Qty. Stock Number Title Each Price
041-001-00464-5 Budget of the United States Government, $1.75
Fiscal Year 1997
041-001-00465-3 Budget of the United States Government, 15.00
Fiscal Year 1997--Supplement
041-001-00466-1 Budget of the United States Government, 44.00
Fiscal Year 1997--Appendix
041-001-00467-0 Analytical Perspectives, Fiscal Year 29.00
1997
041-001-00468-8 Historical Tables, Fiscal Year 1997 16.00
041-001-00469-6 A Citizen's Guide to the Federal 1.25
Budget, Fiscal Year 1997
041-001-00470-0 The Budget System and Concepts, Fiscal 1.50
Year 1997
041-001-00471-8 The Budget on CD-ROM, Fiscal Year 1997 19.00
1st release
041-001-00472-6 The Budget on CD-ROM, Fiscal Year 1997 19.00
2nd release
(International customers--please add Total for Publications
an additional 25%.)
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