16 —The Daily Collegian Friday, June 27, 1986
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°1985 Washington Post Co.
AY
28
Congress passes budget
By STEVEN KOMAROW
Associated Press Writer
WASHINGTON, D.C. The Senate gave final Congres
sional approval late last night to a nearly $1 trillion fiscal
1987 budget that would sharply curtail President Rea
gan’s military spending plans but soften that cutback if
Reagan found an acceptable way to raise more money.
Senate passage, by voice vote, quickly followed House
approval last night on a lopsided 333-43 vote. Less than an
hour earlier, the final compromise was struck by a House-
Senate conference committee.
The $995 billion plan was designed to keep next year’s
deficit $1.4 billion below the $144 billion target of the
Gramm-Rudman balanced-budget law. It would also
bring Congress closer to meeting future year targets,
which get gradually stricter with the goal of a balanced
budget by fiscal 1991.
“As we adjourn tonight to take the break of the Fourth
of July, we will be able to tell America that we have not
only seen historic action in terms of tax reform. . .but
also that the budget for 1987 has passed, and we have met
the deficit (target) of Gramm-Rudman,” said Rep. Wil
liam H. Gray 111, chairman of the House Budget Commit
tee.
The budget would limit military spending authority to
$292.15 billion next year unless the president and Con
gress agree to raise money for a contingency fund of
“unmet critical needs.” Even with the fund, the military
budget would fall $2l billion shy of Reagan’s request for
$320 billion.
Up to $3 billion of the $4.8 billion contingency fund could
be used to increase military outlays. That.would allow
Pentagon budget authority, which includes programs that
are paid for over several years, to increase to $299 billion..
The contingency plan was an indirect challenge to the
president to soften his opposition to new taxes. The Senate
had approved a $10.7 billion tax boost, but House Demo
crats refused to go along, fearing the political fallout.
As a result, the compromise would allow the additional
spending if Reagan proposed, and Congress approved,
new taxes, sales of government assets beyond those
already in the budget or some other way of raising the
revenue.
Congressional leaders said they thought the compro
mise would pass.
“I think we have a majority in the House who are
prepared to sign off on it,” said House Majority Leader
Jim Wright, D-Texas, who called the plan “a true com
promise.” He noted the Senate-passed budget had $3Ol
billion for the Pentagon and the House had approved $285
billion.
“I think we ought to do it before we leave,” Senate
Majority Leader Bob Dole, R-Kan., said of adoption of the
blueprint
Tentative agreement came early yesterday after two
days of marathon closed-door sessions by senior mem
bers of the House and Senate Budget committees. Howev-
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‘. we will be able to tell America
that we have not only seen historic
action in terms of tax reform.. .but
also that the budget for 1987 has
passed, and we have met the
deficit (target) of Gramm-Rudman.’
Rep. William H. Gray 111, chairman of
. the House Budget Committee.
er, the plan required ratification by the full House-Senate
conference committee on the budget before final action
by both chambers.
According to preliminary estimates, the plan would:
• Give military and civilian federal employees a 3
percent pay raise.
® Cover a cost-of-living increase for Social Security,
retired civil servants and veterans, estimated at 2 per
cent.
® Cut foreign aid programs 10 percent below current
• Freeze a wide range of domestic programs, includ
ing the National Aeronautics and Space Administration,
with no money provided for replacing the space shuttle
Challenger, pending further review by the administration
and Congress.
• Raise various user fees for federal services, but
reject proposed fees for agricultural inspections and
related activities.
® Trim the federal highway program by 7>/ 2 percent
and federal mass transit assistance by about 10 percent.
® Cut several development programs by 10 percent,
including Urban Development Action Grants, the Eco
nomic Development Administration, Appalachian Re
gional Commission, and subsidized rental housing.
• Sell government assets including the Small Business
Administration Disaster Loan portfolio.
® Increase spending for education and training pro
grams by about $1.7 billion.
o Phase out the $4 billion a year revenue sharing with
local governments.
The budget, a congressional resolution that is an overall
guide for Congress’ spending and tax decisions, does not
require Reagan’s signature. However, he could veto the
individual bills the result from the budget decisions as
he promised to veto the tax boost in the Senate budget.
Sen. Pete V. Domenici, R-N.M., chairman of the Senate
Budget Committee, said White House chief of staff
Donald Regan had indicated the president would not
actively oppose the spending plan, although Reagan could
not support it because of the military cut.
Reagan has said the Senate-passed $3Ol billion for the
Pentagon was the absolute minimum he could support.
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