    [Appendix]
    [Other Materials]
    [Recession Proposals]
    [From the U.S. Government Printing Office, www.gpo.gov]

                         THE BUDGET FOR FISCAL YEAR 1998

    [[Page 1147]]

                              RESCISSION PROPOSALS

        This budget contains proposals to reduce 1997 spending by $5.2
    billion. These proposed reductions include $0.4 billion in proposed
    rescissions detailed below and $4.8 billion in reduced limitations and
    other proposed savings detailed in the Supplemental Proposals chapter of
    the Budget.

        Under the provisions of the Impoundment Control Act of 1974 (Public
    Law 93-344), whenever the President proposes a rescission of enacted
    appropriations, a special message must be sent to the Congress giving
    details of the proposals. Included below are related budget schedules
    and narrative explanations of proposals submitted in a special message
    at the time this budget was transmitted.

                            Department of Agriculture

                          FOREIGN AGRICULTURAL SERVICE

                  P.L. 480 Grants--Titles I (OFD), II, and III

                              (Rescission proposal)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2278-5-1-151      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Ocean freight differential........                      -4
                                               ---------   ---------  ----------
    10.00   Total obligations (object class
              41.0).........................                      -4
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                      -4
    23.95 New obligations...................                       4
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.35 Appropriation rescission proposal
            (R97-1).........................                      -4
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation                                  -2
    73.10 New obligations...................                      -4
    73.20 Total outlays (gross).............                       2           1
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation                      -2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority                      -2
    86.93 Outlays from current balances.....                                  -1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........                      -2          -1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                      -4
    90.00 Outlays...........................                      -2          -1
    ---------------------------------------------------------------------------

        The Administration and the Congress agreed to make market
    development the primary purpose of the P.L. 480 direct credit program in
    the 1996 Farm Bill. This streamlined focus allows for a greater
    targeting of program resources on the most promising market development
    opportunities. This $3.5 million rescission of Title I Ocean Freight
    Differential funds, when combined with a proposed rescission of $46.5
    million in subsidy budget authority in the P.L. 480 direct credit
    program account, totals a proposed $50 million reduction that would
    bring the net 1997 budget authority for the program as a whole to $151
    million. Commodity shipments would be reduced by approximately 200,000
    metric tons as a result of this proposed rescission. However,
    allocations of Title I commodity assistance that have already been
    announced for 1997 would not be affected by the proposed rescission
    because the reduction in program funding will be taken from a reserve of
    unallocated funds and from unobligated funds carried over from 1996.

                            P.L. 480 Program Account

                              (Rescission proposal)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2277-5-1-351      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            41.0)...........................                     -46
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                     -46
    23.95 New obligations...................                      46
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.35 Appropriation rescission proposal
            (R97-2).........................                     -46
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation                                 -20
    73.10 New obligations...................                     -46
    73.20 Total outlays (gross).............                      26          17
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation                     -20          -3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority                     -26
    86.93 Outlays from current balances.....                                 -17
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........                     -26         -17
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                     -46
    90.00 Outlays...........................                     -26         -17
    ---------------------------------------------------------------------------

    Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
                                millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2277-5-1-351      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    1150  Direct loan levels................                     -46
                                               ---------   ---------  ----------
    1159    Total direct loan levels........                     -46
        Direct loan subsidy (in percent):
    1320  Subsidy rate......................                   81.79        0.00
                                               ---------   ---------  ----------
    1329    Weighted average subsidy rate...                   81.79        0.00
        Direct loan subsidy budget authority:
    1330  Subsidy budget authority..........                     -46
    1330  Subsidy budget authority--Re-
            estimate........................
                                               ---------   ---------  ----------
    1339    Total subsidy budget authority..                     -46
        Direct loan subsidy outlays:
    1340  Subsidy outlays...................                     -26         -18
                                               ---------   ---------  ----------
    1349    Total subsidy outlays...........                     -26         -18
    ---------------------------------------------------------------------------

        The Administration and the Congress agreed to make market
    development the primary purpose of the P.L. 480 Title I direct credit
    program in the 1996 Farm Bill. This streamlined focus allows for a
    greater targeting of program resources on the most promising market
    development opportunities. This $46.5 million proposed rescission in
    subsidy budget authority, when combined with a rescission of $3.5
    million Title I Ocean Freight Differential funds in the P.L. 480 Grant
    account totals a proposed $50 million reduction that would bring the net
    1997 budget authority for the program as a

    [[Page 1148]]

    whole to $151 million. Commodity shipments would be reduced by
    approximately 200,000 metric tons as a result of this proposed
    rescission. However, allocations of Title I commodity assistance that
    have already been announced for 1997 would not be affected by the
    proposed rescission because the reduction in program funding will be
    taken from a reserve of unallocated funds and from unobligated funds
    carried over from 1996.

                         Department of Defense--Military

                               MILITARY PERSONNEL

                             Reserve Personnel, Army

                              (Rescission proposal)

                             Program and Financing (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   21-2070-5-1-051    1996 actual      1997 est.     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------

        Obligations by program activity:

    10.00 Total obligations (object class
            11.7)...........................                        -20
    --------------------------------------------------------------------------------------------------
        Budgetary resources available for
            obligation:

    22.00 New budget authority (gross)......                        -20
    23.95 New obligations...................                         20
    --------------------------------------------------------------------------------------------------
        New budget authority (gross),
            detail:

    40.35 Appropriation rescission proposal
            (R97-3).........................                        -20
    --------------------------------------------------------------------------------------------------
        Change in unpaid obligations:

    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation                                       -2             -1
    73.10 New obligations...................                        -20
    73.20 Total outlays (gross).............                         18             1
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation                         -2            -1
    --------------------------------------------------------------------------------------------------
        Outlays (gross), detail:

    86.90 Outlays from new current authority                        -18
    86.93 Outlays from current balances.....                                       -1
                                            ------------ --------------  ------------  -------------
    87.00   Total outlays (gross)...........                        -18            -1
    --------------------------------------------------------------------------------------------------
        Net budget authority and outlays:

    89.00 Budget authority..................                        -20
    90.00 Outlays...........................                        -18            -1
    -----------------------------------------------------------------------------------------------

        Due to a change in training schedules, the funds proposed for
    rescission are in excess of requirements and are not needed for pay and
    allowances of reserve personnel in 1997.

                            OPERATION AND MAINTENANCE

                     Operation and Maintenance, Defense-Wide

                              (Rescission proposal)

                             Program and Financing (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   97-0100-5-1-051    1996 actual      1997 est.     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------

        Obligations by program activity:

    10.00 Total obligations (object class
            25.2)...........................                        -10
    --------------------------------------------------------------------------------------------------
        Budgetary resources available for
            obligation:

    22.00 New budget authority (gross)......                        -10
    23.95 New obligations...................                         10
    --------------------------------------------------------------------------------------------------
        New budget authority (gross),
            detail:

    40.35 Appropriation rescission proposal
            (R97-4).........................                        -10
    --------------------------------------------------------------------------------------------------
        Change in unpaid obligations:

    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation                                       -3             -1
    73.10 New obligations...................                        -10
    73.20 Total outlays (gross).............                          7             2
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation                         -3            -1             -1
    --------------------------------------------------------------------------------------------------
        Outlays (gross), detail:

    86.90 Outlays from new current authority                         -7
    86.93 Outlays from current balances.....                                       -2
                                            ------------ --------------  ------------  -------------
    87.00   Total outlays (gross)...........                         -7            -2
    --------------------------------------------------------------------------------------------------
        Net budget authority and outlays:

    89.00 Budget authority..................                        -10
    90.00 Outlays...........................                         -7            -2
    -----------------------------------------------------------------------------------------------

        Due to slight variations in force structure and training schedules,
    the funds proposed for rescission are in excess of requirements and are
    not needed for training and other activities funded by this account.
    Funds would be rescinded from low-priority Reserve programs.

                                   PROCUREMENT

                      National Guard and Reserve Equipment

                              (Rescission proposal)

                             Program and Financing (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   97-0350-5-1-051    1996 actual      1997 est.     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------

        Obligations by program activity:

    10.00 Total obligations (object class
            31.0)...........................                        -21           -13             -8
    --------------------------------------------------------------------------------------------------
        Budgetary resources available for
            obligation:

    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................                                      -21             -8
    22.00 New budget authority (gross)......                        -42
                                            ------------ --------------  ------------  -------------
    23.90   Total budgetary resources
              available for obligation......                        -42           -21             -8
    23.95 New obligations...................                         21            13              8
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....                        -21            -8
    --------------------------------------------------------------------------------------------------
        New budget authority (gross),
            detail:

    40.35 Appropriation rescission proposal
            (R97-5).........................                        -42
    --------------------------------------------------------------------------------------------------
        Change in unpaid obligations:

    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation                                      -14            -12
    73.10 New obligations...................                        -21           -13             -8
    73.20 Total outlays (gross).............                          7            15             10
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation                        -14           -12            -11
    --------------------------------------------------------------------------------------------------
        Outlays (gross), detail:

    86.90 Outlays from new current authority                         -7
    86.93 Outlays from current balances.....                                      -15            -10
                                            ------------ --------------  ------------  -------------
    87.00   Total outlays (gross)...........                         -7           -15            -10
    --------------------------------------------------------------------------------------------------
        Net budget authority and outlays:

    89.00 Budget authority..................                        -42
    90.00 Outlays...........................                         -7           -15            -10
    -----------------------------------------------------------------------------------------------

                                  Budget Plan (in millions of dollars)

                                     Outlays
    -----------------------------------------------------------------------------------------------
    Identification code   97-0350-5-1-051    1996 actual      1997 est.     1998 est.      1999 est.
    -----------------------------------------------------------------------------------------------
    0702  Equipment.........................                        -42
    -----------------------------------------------------------------------------------------------

        The funds proposed for rescission are in excess of amounts necessary
    to meet all required equipment needs. Rescission of these funds would
    not affect military readiness.

    [[Page 1149]]

                   Department of Housing and Urban Development

                       PUBLIC AND INDIAN HOUSING PROGRAMS

                    Annual Contributions for Assisted Housing

                              (Rescission proposal)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0164-5-1-604      1996 actual   1997 est.   1998 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            41.0)...........................                    -250
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                    -250
    23.95 New obligations...................                     250
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.35 Appropriation rescission proposal
            (R97-6).........................                    -250
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation                                -240
    73.10 New obligations...................                    -250
    73.20 Total outlays (gross).............                      10          25
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation                    -240        -215
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority                     -10
    86.93 Outlays from current balances.....                                 -25
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........                     -10         -25
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                    -250
    90.00 Outlays...........................                     -10         -25
    ---------------------------------------------------------------------------

        This proposal would rescind approximately $250 million of obligated
    balances estimated to be recaptured during 1997. These recaptures will
    result from the elimination of excess funds available on some long-term
    section 8 contracts, the cancellation of reservations for public housing
    development projects that are unable to proceed to construction, and the
    recapture of funds from inactive programs. It is anticipated that $325
    million in recaptures will be realized during 1997. Pursuant to section
    214 of P.L. 104-204, $25 million of these recaptures will be transferred
    to the Housing Opportunities for Persons with AIDS (HOPWA) program and
    $50 million will be used for the Preservation program. The remaining
    amount, approximately $250 million, is proposed for rescission.