    [Public Papers of the Presidents of the United States: George H. W. Bush (1991, Book I)]
    [February 4, 1991]
    [Pages 97-99]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Message to the Congress Transmitting the Fiscal Year 1992 Budget
    February 4, 1991

    To the Congress of the United States:
        I am pleased to present the Budget of the United States Government
    for Fiscal Year 1992.
        The budget is consistent with the 5-year deficit reduction law
    enacted last fall. It recommends discretionary spending levels that fall
    within the statutory caps for defense, international, and domestic
    discretionary programs. It implements the entitlement savings and
    reforms enacted in the Budget Agreement. It conforms to the new pay-as-
    you-go requirements.
        By holding the overall rate of growth of Federal Government spending
    to approximately 2.6 percent--below the inflation

    [[Page 98]]

    rate--the budget puts into effect the concept of a ``flexible freeze,''
    which is an essential means of bringing the budget into long-term
    balance.
        The longest period of peacetime economic expansion in history has
    been temporarily interrupted. We can, however, return to growth soon--
    and proceed on the path to a new era of expansion. With that goal in
    mind, the budget places special priority on policies that will enhance
    America's potential for long-term economic growth, and that will give
    individuals the power to take advantage of the opportunity America
    uniquely offers.
        To this end, I am again proposing tax incentives to increase savings
    and long-term investment.
        On the spending side of the budget, the existence of a cap on
    domestic discretionary outlays rightly creates a competition for
    resources. Priorities must be set. This budget proposes that domestic
    investment be increased in the following key areas:
        Education and Human Capital.--The budget proposes investments to
    prepare children better for school, to promote choice and excellence in
    our educational system, to improve math and science education, and to
    increase the access of low-income Americans to higher education.
        Prevention and the Next Generation.--The budget includes proposals
    to help reduce illness and death from preventable diseases, and to
    reverse the long-term trend of underinvestment in children.
        Research and Development and the Human Frontier.--The budget
    recommends an increase of $8.4 billion in the Federal investment in
    research and development, with special emphasis on basic research, high
    performance computing, and energy research and development. It proposes
    to extend permanently the tax credit for research and experimentation to
    encourage private sector R&D investment. In addition, the budget
    reflects the Administration's continued commitment to expanding human
    frontiers in space and biotechnology.
        Transportation Infrastructure.--The budget supports an expansion of
    the Federal Government's investment in highways and bridges to over $20
    billion within 5 years, and proposes substantial increases to improve
    the condition of the Nation's airports, to modernize the air traffic
    control system, and to continue to develop the transportation
    infrastructure for exploration and use of space.
        America's Heritage and Environmental Protection.--The budget
    includes increased funds for the expansion and improvement of America's
    treasury of parks, forests, wildlife refuges, and other public lands;
    for the implementation of the Clean Air Act and other key environmental
    statutes; for the cleanup of pollution at various Federal facilities and
    at Superfund sites; and for protection and enhancement of coastal areas
    and wetlands.
        Choice and Opportunity.--The budget provides: funds to help give
    parents greater choice in child care, health care, education, and
    housing; the resources to allow all Americans, especially those with low
    incomes, to seize the opportunities that such choice provides; and a
    proposal to establish Enterprise Zones to bring hope to our inner cities
    and distressed rural areas.
        Drugs and Crime.--The budget further increases the Administration's
    investment in drug prevention, treatment, and law enforcement. And the
    budget substantially increases the resources available to help the
    Federal Bureau of Investigation fight crime, the Federal prosecutors
    prosecute criminals, and the Federal prison system accommodate those
    convicted of crimes.
        To make such investments possible, the budget includes
    recommendations to terminate or reduce Federal investment in certain
    low-return programs, and proposes reforms to slow the continuing growth
    of mandatory entitlement programs and to increase fairness in the
    distribution of the benefits these programs provide.
        In addition, the budget contains a new proposal to fund various
    programs now carried out by the States through a comprehensive block
    grant. The States are continuing to develop new and innovative ways to
    deliver services more effectively. The budget not only highlights
    several of these innovations; it proposes to reinforce and build upon
    them.
        The budget contains several proposals

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    that reflect my commitment to managing government better. These include
    measures to improve accountability, to reduce waste, to reform
    regulation, to employ risk management budgeting in addressing threats to
    health and safety, and to set clear objectives and measure performance
    in meeting them.
        Finally, consistent with the statutory caps enacted last year, the
    budget provides the resources necessary to maintain national security,
    and to better advance American interests abroad. As the budget goes to
    press, the timing of the resolution of the multinational coalition's
    efforts to reverse the aggression in the Persian Gulf is uncertain. For
    this reason, the budget reflects only a placeholder for Operation Desert
    Shield. A supplemental request for the incremental costs of Desert
    Shield, which includes Desert Storm, will be forwarded to the Congress
    in the coming weeks.
        The priority investments embodied in this budget will help America
    prepare for the requirements and opportunities presented by a rapidly
    changing world. I look forward to working with the Congress in
    developing a budget that lays the groundwork for a brighter future,
    protects our national interests, and helps create the conditions for
    long-term economic growth and prosperity.

    February 4, 1991

                                                                 George Bush

                        Note: The President's message was printed in the
                            report entitled ``Budget of the United States
                            Government, Fiscal Year 1992.'' It was not
                            issued as a White House press release.