[Congressional Record Volume 140, Number 16 (Wednesday, February 23, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: February 23, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                               THE BUDGET

  Mr. GRASSLEY. Mr. President, the administration has recently released 
its fiscal year 1995 budget which shows a very rosy scenario regarding 
the deficit.
  Unfortunately, just like a rose, the bloom has faded quickly and the 
petals are falling on the administration's projections regarding 
deficit reduction.
  In the past few days since the release of the budget, several events 
have taken place that will substantially increase the deficit beyond 
the administration's projections.
  These include:
  CBO has estimated that the administration's health proposal will cost 
$73 billion over the next 5 years, not save $50 billion as the 
administration suggested. So that is a $123 billion increase in the 
deficit;
  There is a gap of over $20 billion between the administration's 
defense budget and the Pentagon's plans;
  GATT is projected to cost $11 billion over 5 years in lost tariff 
revenue;
  The emergency supplemental added nearly $8 billion to the deficit;
  Superfund restructuring is estimated to cost $3 billion.
  Interest rates on Treasury bills have increased markedly from the 
administration's estimates. The administration estimated 10-year T-
bills to be at 5.8 percent for the next 5 years. The 10-year T-bill is 
already over 6 percent and climbing. On top of this we still have not 
gotten the bill for the Department of Labor's Workforce Security Act or 
welfare reform.
  It seems that the administration that told us to ``don't stop 
thinking about tomorrow'' abandons tomorrow when it comes to a debt 
that will be $6 trillion within 10 years. It is clear that we need to 
make greater efforts now to reduce the deficit.
  I would like to take a moment and particularly focus on the gap 
between the administration's defense budget and what the Pentagon plans 
to spend.
  This problem of overprogramming at the Defense Department is where 
spending under the 5-year defense plan [FYDP] exceeds the 
administration's own guidance for defense. This was a problem that I 
along with Senator Sasser raised often during the Reagan and Bush 
administration.
  Now we see the Clinton administration facing the same issue. 
Assistant Secretary of Defense, Mr. Warner, testified before the House 
Armed Services Committee a couple of weeks ago that DOD's future years 
defense plan will not be consistent with the President's top line 
guidance for defense through 1999.
  The DOD official stated that the defense program currently exceeds 
the administration's estimates by $20 billion.

  During hearings of the Budget Committee, the administration has tried 
to portray the problem as one due to estimating inflation. I do not 
understand why the administration can estimate inflation for every 
other program in the budget, but not defense.
  These defense budget blanks mask the true picture of defense 
spending, and the future of our Armed Forces.
  I am concerned that inflation is not the only answer to this $20 
billion gap. Questions have been raised whether the administration has 
underestimated the growth in weapon systems costs and overestimated the 
savings from procurement reform.
  To help provide Congress the answer to these questions, I have asked 
Mr. Panetta to provide Congress by February 28, 1994 the estimates for 
the major defense appropriation accounts for the next 5 years as well 
as the top line of the FYDP so we will know the real answers.
  The problems of reality and plans mismatch for the defense budget are 
just part of a deficit problem that has increased by nearly $200 
billion since the administration released its budget just a few days 
ago.
  With children born today facing an 81-percent lifetime tax rate, we 
must take steps now to address the deficit. Today we decide tomorrow 
for our children and grandchildren. We must reduce the deficit.
  The ACTING PRESIDENT pro tempore. The time of the Senator has 
expired. The Senator from Washington [Mr. Gorton] is recognized.

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