[Congressional Record Volume 140, Number 67 (Wednesday, May 25, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]
[Congressional Record: May 25, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]
THE EXON-GRASSLEY BUDGET AMENDMENT
Mr. EXON. Mr. President, a few days ago, our colleague from Iowa,
Senator Grassley, my good friend from the neighboring State, took the
floor and stated that the smoke had begun to clear from the recent
budget battle that was fought over the Exon-Grassley spending cut,
included in our 1995 budget resolution. The smoke has entirely cleared
now, and it is clear that the dire predictions that were made about the
Exon-Grassley amendment by many sources on both sides of the aisle
simply have not come to pass.
The clamor in opposition by the President, the Joint Chiefs of Staff,
the entire Cabinet, and special interest groups were proven unfounded.
As Senators will recall, the Exon-Grassley amendment cut a mere $26
billion from our discretionary spending over the next 5 years, spending
that will total over $2.7 trillion over the same period of time. Yet,
despite the modest goal, the Exon-Grassley amendment was also opposed
by the White House, the congressional leadership on both sides of the
aisle, and by the chairman of the Senate Budget Committee and the
ranking member of that committee.
The chairman argued that the Exon-Grassley cuts were general and not
specific and, therefore, the Exon-Grassley cuts were improper. That
argument was repeated, primarily by Members on my side of the aisle,
throughout the debate. At that time, I pointed out that we do not make
in the Budget Committee, and never have made, specific cuts in our
budget resolution. That authority is carefully guarded and carefully
protected as a prerogative of the Appropriations Committee.
Well, the 1995 budget resolution has now been passed by both the
House of Representatives and the Senate and, as I and Senator Grassley
predicted, I cannot find a single specific cut in that bill. In fact,
there are clearly not any and never have been. Our budget resolution
provides one number, a 602(b) allocation to the Senate Appropriations
Committee, and that committee has jurisdiction over how that number is
divided between the various subcommittees. That is frankly the way that
our budget process was designed to work, with the budget providing
broad parameters and the appropriations process determining the
specifics of how spending fits within those parameters.
The Exon-Grassley amendment did reduce the overall spending
allocation for the coming year and included enforcement language to
reduce that allocation in the coming years. By taking that action, we
reduced the overall amount that Congress can spend, and I have no doubt
that those reductions will indeed result in specific cuts.
But where were those specific cuts and where will they fall? The
ranking member of the Senate Budget Committee claimed that these cuts
would fall primarily on defense spending. That was not the case, as the
figures have shown so far and will be further substantiated when the
Appropriations Committee makes its suggestions to the floor.
I simply say that all of that debate, all of the charges that were
made back and forth was not anything that we have not gone through
before. But I suggest that we cannot continue to do business as usual.
When we were talking about that situation a few weeks ago, the
suggested solution to what was brought up by the Exon-Grassley
amendment was the same solution that has been used for far too many
years. I would call it a Devil's bargain that has got us nowhere. Those
who wanted to cut domestic programs, but not defense, cut a deal with
those who wanted to cut defense, but not domestic programs. Neither
side would cut anything, and both sides would get what they wanted. In
that way, no one had to risk that his or her favorite program would be
cut any further and, just as importantly, everyone had an excuse for
not reducing our deficit spending this year or the next. The old phrase
``the Devil made me do it'' was assumed to be a logical answer.
My view all along has been that the defense spending has been cut
enough and that we should listen to our President who pointedly stated
that defense should be cut no further than planned. The Exon-Grassley
cuts did not mandate further cuts and, in fact, could easily have been
taken from domestic programs that are scheduled for increases in the
coming years.
Senator Grassley and I suggested a whole series of places where the
cuts could be made without taking one penny from national defense. I
wish that that had been the outcome, but unfortunately we do not always
get our way.
I also believe that a sufficient and strong majority of the Senate
agrees that defense spending has been cut enough, that we are reaching
the point where further defense reductions cannot be made without
seriously reducing our defense capabilities. As such, I understand the
legitimate concerns of the ranking member of the Senate Budget
Committee, but I disagree that our hands are so tied, that in these
struggles we must be ever vigilant, that we have a big job to do in
making further cuts.
In the end, as I will describe in a moment, the decision was made to
take a minor cut in national defense. While I wish that were not the
case, we all do our best here to carry out what we think are the wishes
of our constituents, and I have no basic quarrel with what was
accomplished.
But I simply say, Mr. President, that at some point we must be
willing to agree to spending cuts and to let our Democratic process
determine where those cuts will fall. Everyone in this body knows that
we are over $4\1/2\ trillion in debt and that interest payments on that
debt are threatening to strangle our Federal Government, if they have
not already done so. Those problems are surely too large to be ignored,
even for 1 year.
Last week, the Appropriations Committee announced its 602(b) spending
allocations. As I have said previously, I do not think that they were
exactly perfect from my perspective, but I am one Member and one Member
only of this body. That committee had to contend not only with the $500
million in cuts required by the Exon-Grassley amendment for the next
year but also with a $3 billion cut required by reestimates of the
President's budget submission. As defense is about a half of our
discretionary spending, opponents made the wrong assumption that
defense would receive about half the cuts. I told them that that would
not be the case, and I am pleased to say that I was correct. In fact,
defense took only about 15 percent of the overall cuts, or about $530
million, which were necessary to stay within the caps.
It is difficult, if not impossible, to determine exactly how the
Exon-Grassley cuts impacted the total figure on the 602(b) allocation
to the defense subcommittee. That is up to the Appropriations
Committee. But it seems clear that the impact was very minimal,
particularly when you consider that the allocation to that subcommittee
totals over $250 billion.
So, Mr. President, the approach taken by the Exon-Grassley amendment
was not only proper, it worked. It did not call for any specific cuts,
but it most certainly will result in specific cuts being made over the
next few months and next few years. Those cuts will not fall primarily
on defense spending. The sky is still above us despite the predictions
that that would not be the case if the Exon-Grassley amendment passed.
Mr. President, I want to thank my colleagues in this Senate on both
sides of the aisle who supported this further reduction this year.
Primarily, I also want to again thank the Senator from Iowa, Senator
Grassley, for his strong leadership and cooperation. I sought his
assistance on this issue because I knew that he was a Member who knows
what we need to do and would be willing to work hard in a bipartisan
fashion to get the job done. I knew that I could trust the Senator from
Iowa to be a strong advocate for change. The Senator from Iowa did
indeed have to take on some of the senior Members of his own party who
were all too comfortable with the status quo. Yet, he stood strong, and
he delivered. His tireless efforts were greatly appreciated by me and,
I hope, the citizens of Iowa that he so ably represents.
Mr. President, I yield the floor.
The PRESIDING OFFICER. The Senator from Texas.
Mrs. HUTCHISON. Thank you, Mr. President.
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