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November 17, 2016
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August 14, 2000
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June 21, 1974
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de(j_e_, )0? 7/34 Tune 2Apkikived For Rel 1M24111610:8011110:38,13P7?00/M000060468,003-% 11257 Th nays Aboure Aiken Allen BaYla Beall. Bible Biden Burdick Byrd, Harry F., J Byrd, Robert Cannon Case Chiles Church Clark grangton Curtis Dole Domenici Eagleton Ervin Fannin Fong Fulbright Goldwater. . . yeas and nays resulted?yeas 75, as follows: Mo. 271 Sal YEAS-75 Baker Bartlett Aellmon Bennett Bentsen Brook Brooke Buckley Cook Hansen klu,skie N.elson artke Nunn Haskell Packwood Hatfield Pastore Hath away Pearson Helms ? Pell Rollinga Percy Ilrusks, PrOxMlre Hughes Randolph lipmphrey Ribicoff .HOth. schweiker Scott, Hugh Scott, William L. Stennis Stevenson Symington Talmadge Thurmond Tower Tunney Williams Young s ennedy pg nuson field as lla,n )40''-e Me a: vern wrci, Mete Aletz QUI Q Q NOT VO G-25 Cotton McClure PQMIZIlek . Moss EaStlarld. Sparkman Gravel Stafford Griffin Stevens Gurney Taft Huddleston Weicker Inouye Jo/ulster/ The P, RESIPING- .6 thirds of the Senators pre lug having voted in t,hq resolution of rat,ifIcACT$ OER, Two- t and vet- t1V0,,_ the ed to. LEGISLATIVE' SESSION The Senate resumed consideration of egislative business, CONGRESSIONAL BUDGET AND IM- POUNDMENT corunor., ACT OF 1974--CONFERENCE REPORT ? The PRZSTPING OrFicER, Under the Previous order, the senate will new Pro- cdect ypte cm, the eo,n,ference report on H.R. /130 the budget reform bill. The yeas and nays have been ordered, and the clerk will call the roll. The second assistant legislative clerk called the roll. Mr. ROBERT C, BYRD, I announce that the Senator from Texas. (Mr. BENT- BN), the Senator from Mississippi (Mr. EASTLAND) , the Senator from Alaska (Mr. GRAVEL), the Senator from Kentucky (Mr. HuooLESTori)? the Senator from Hawaii (Mr. INOUYE) , the Senator from Louisiana (Mr. JOHNSTON), the Senator from Utah (Mr. Moss) , and the Senator from Alabama (Mr. SisiummAN) are nec- essarily absent. I further announce that, if present and voting, the Senator from Alaska (Mr. GRAVEL) would vote "yea." Mr. BUCfli SCOTT. I announce that the Senator from Tennessee (Mr. BAKER) , the Senator from Oklahoma (Mr. BART- LETT) , the Senator from Oklahoma (Mr. BELLMON) , the senator from Utah (Mr. BENNETT) , the Senator from Tennessee (Mr. Baocx), the Senator from Massa- chusetts (Mr. Bitooxe), the Senator from New York (Mr. BUCKLEY) , the Senator from Kentucky (Mr. COOK), the Senator from Colorado (Mr. Dommucx), the Sen- ator from Michigan (Mr. GRIFFIN) , the Senator from Florida (Mr. GURNEY) , the Senator from Idaho (Mr. MCCLURE) , the Senator from Alaska (Mr. STEVENS) , the Senator from Ohio (Mr. TAFT) , and the Senator from Connecticut (Mr. WEICKER) are necessarily absent. I also announce that the Senator from Vermont (Mr. STAFFORD) IS absent on official business. I further annotmce that the Senator from New Hampshire (Mr. COTTON) IS absent due to illness. I further announce that, if present and voting, the Senator from Tennessee (Mr. Bsocx) and the Senator from Kentucky (Mr. COOK) would each vote "yea." The result was announced?yeas 75, nays 0, as follows: [No. 272 Leg.] YE4S-75 Abourezk Hansen Aiken Hart Allen- Bayh Haskell Beall Hatfield Bible Hathaway Biden Helms Burdick Hollings Byrd, Hruska Harry F., Jr. Hughes Byrd, Robert C. Humphrey Cannon Jackson Javits Kennedy Long Magnuson Mansfield Mathias McClellan McGee McGovern McIntyre Metcalf Metzenbaum Mondale Montoya Case Chiles Church Clark Cranston Curtis Dole DoMenicl Eagleton Ervin Fannin Fong Fulbright Goldwater Baker Bartlett Bellmon Bennett Bentsen Brock Brooke Buckley Cook Muskie Nelson Nunn Packwood Pastore Pearson Pell Percy Proxmire Randolph Ribicoff Roth Schweiker Scott, Hugh Scott, William L. Stennis Stevenson Symington Talmadge Thurmond Tower Tunney Williams Young NAYS-0 NOT VOTING-25 Cotton Dominick Eastland Gravel Griffin Gurney Huddleston Inouye Johnston McClure Moss Sparkman Stafford Stevens Taft Wacker So the conference report was agreed to. Mr. MANSFIELD. Mr. President, I move that the vote by which the con- ference report was agreed to be recon- sidered. Mr. ERVIN and Mr. ROBERT C. BYRD moved to lay that motion on the table. The motion to lay on the table was agreed to. The PRESIDING OFFICER (Mr. HELMS) . Under the previous order, the Senate will now proceed to the consid- eration of S. 3679, which the clerk will report. Mr. MANSFIELD. Mr. President, what has happened is understandable, be- cause we have reached third reading now and it was not anticipated that we would. I seek recognition. The PRESIDING OFFICER. The Sen- ator from Montana is recognized. Mr. MANSFIELD. Mr. President, I yield to the distinguished Senator from South Dakota (Mr. ABOUREZK) . ISRAELI BOMBING RAIDS ON LEBANON Mr. ABOUREZK. Mr. President, I rise to take note, first of all, of the disengage- ment agreements negotiated by Secre- tary of State Kissinger with Syria, Israel, itnd Egypt. In spite of the mood resulting from the negotiation, and the feeling of peace that was generated by those disengage- ment agreements, I am extremely sad- dened to note that the government of Israel has seen fit to conduct daily bomb- ing raids on civilians in southern Leb- anon, in the farming areas and, indeed, in the refugee camps where the military communiques which emanate from Israel say that the bombing raids are designed to kill suspected terrorists. Mr. President, in my opinion, if that policy is to be accepted as a rational policy by the people of the world, then we could easily justify the bombing of Los Angeles because there are suspected Symbionese Liberation Army members living in Los Angeles. The same could be true of New York City or San Francisco. My point is this: If we in the United States are to furnish Phantom jets, bombs, napalm, firebombs, and money to fuel the planes when they do the bomb- ing and the killing in southern Lebanon, then we must be held accountable for the deaths that will result from what I consider to be official Israeli government terrorist activities?no less terrorist in nature than an act of three or four in- dividual Arabs who kill civilians in Israel. Mr. President, this raises one impor- tant question: Where are the doves in the United States today who cried and who agonized over the killing in Vietnam, the killing that was carried out in the very same manner as it is being done now in southern Lebanon? Where are these people today who protested that same kind of killing in Indochina? The answer is obvious, Mr. President; they are deathly silent and, in some cases, those very same doves are cheer- ing on the Israelis in their bombing raids that result in the slaughter of so many innocent people. Mr. FULBRIGHT. Mr. President, will the Senator from South Dakota yield? Mr. ABOUREZK. I yield. Mr. FULBRIGHT. I join the Sena- tor. I think these tactics are inexcusable. I deeply regret that they are being done with armaments supplied by this coun- try as a result of a vote in this body. The Senator is well aware?we all are? of the enormous assistance we have given to Israel, in the hope that it would bring about peace. We have all been ap- plauding in recent weeks the activities of Secretary of State Kissinger in trying to bring about peace there. I thought it was almost universally approved. Now this action does, indeed, threaten the main- tenance of that peace. Already, of course, the press reports the reaction in Syria where Secretary of State Kissinger and the President were only a short time ago. One cannot help believing that there may be some ulterior purpose beyond just the announced purpose fattaCIOng Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 Approved For Reiewiaggigaz kgpmEopPlawoolooR00060008000a)44 S 1125817 the terrorists. One wonders whether they do want to bring peace there, whir bi can- not possibly lead to the stopping of the terrorists on both sides, including the Palestinians. There is no doubt, of course?and I do not approve of the raids by Palestinian terrorists on villages in Israel, but this is certainly not tee ap- propriate time to respond to that., not only not appropriate in a humane sense, but it is not designed to achieve the purpose, which is to retaliate against those who perpetrated the original' raids. There is no reason to believe thee those same terrorists who made attacks on Maalot are in these particular places. There is nothing to justify that. Mr. ABOUREZK. If I may interrupt the Senator briefly, it Is ridteulous for the Government of Israel to justify the raids on civilian villages and refugee camps by saying that they are bombing terrorists who committed crimes In Maalot, because the terrorists in Matelot died at Maalot.. Mr. lernefintiGliT. Yes, that is true. Mr. ABOUREZIC. They do not live any more. There is no way to kill them twice. Mr. PULBRIGHle It is qUite an unjus- tifiable way to react to that kind of ter- rorism in that case. It endangers the maintenance of the very tentative peace that has been brought about?now only just for a few days, really. I deeply regret it and I think our. Gov- ernment should protest it in most vigor- ous terms., Mr. ABOUREZK. Our Government should not only protest it, but aloe should shut off any American tax money for military aid to Israel. I opposed that appropriation last year, as the Senator knows, because it was easy to foresee the terrible potential for abuse of power we were providing with those armaments. Mr. FULBRIGIIT. I agree. I do not think it preMotes Peace to contioue pil- ing arms into the Middle East, or into Southeast Asia, for that matter. As the Senator knows, I contested that in both places and, as the Senator knows, I did not vote for it. I think the &ruler re- members that. Mr. ABOUREZIC. I do remember, and I thank the distinguished Senator from Arkansas for his comments. I want to conclude by saying that 2 days before the terrorist incident in the village of Maalot in northern Tentel, the village in southern Lebanon where my Parents were born, the feleir, was bombed by Israeli Phantom jets, fueled by Amer- ican bombs and Amer nan money. There were four civilians killed in that village. One was a 6-month old baby, a 5-year- old child, an 8-year old child, and the mother of one of the children. Now that was 2 days before the inci- dent at Maalot. What that was mediation ?r, I do not know. / do know this, that at the time of the Maaiot incident, the Govern- ment of Israel had 24 hours or longer to negotiate for the lives of those PeoPle who were in the school building at Maalot. They chose not to negotiate or their lives. Theo made the attack rataer than negotiate which resulted M the death of so Many people. The Government of Lebanon had no chance to negotiate for the lives of the people who were killed 2 days before Maalot, nor for the lives of people who have been killed since then. That number has ranged into the hundreds; . 40 civilians were killed yesterday alone in southern Lebanon, in the refugee camps. And there is some- thing to be said for the imbalance of press coverage in the Middle East. Had 40 civilians been killed in Israel, each national network would have been in- dignant with Head news stories, and justifiably so. But as we have seen, when Arab civilians die at the hands of the Israel Government, the majority of the American press reacts by calmly reading Israeli military communiques as though they were impartial eyewitness accounts of the attacks. What does it take to bring the realization that an Arab life is equal to an Israeli life? When our media rep- resentatives realize their responsibility, perhaps the Government of Israel will not feel that it can escape criticism for its inhuman and barbaric actions. I have been through one or two of those camps in Lebanon. The riumber of people In the camps ranges from 15,000 to 20,000, the great majority of them women, chil- dren, and old men. The guerrillas generally do not hang around in the refugee camps, though occasionally they do. But those are guer- rillas. They are not necessarily terrorists. Who the terrorists are. I do not know. I do not think anybody knows until such time as an act of terrorism is committed. It is unfortunate and regrettable that they see fit to resort to that kind of ter- rorism. But it is as unfortunate and as regrettable that a government, the Gov- ernment of Israel, will sit down to make a cold decision to burn crops of the Lebanese farmers with fire bombs, and to bomb villages where neither guerrillas nor terrorists are living; and to bomb refugee camps where, even if there are terrorists, there is certain knowledge of the death of hundreds of women, chil- dren, and old people. I yield back the remainder of my time. Mr. H.ANSEN. Mr. President, will the Senator from South Dakota yield? Mr. ABOUREZIO I yield the floor. Mr. FIANSE'N. Mr. President, I am cer- tain that the distinguished Senator from South Dakota is far more familiar with the situation in the Middle East than I am, but I would just like to say that it does occur to the-Senator from Wyoming that, despite our proteeted evenhanded- ness, America has not been as fair as I think our country should be. I think we have ignored the Pales- tinian refugee problem for all too long. These people have lived in camps over there for more than a generation. My heart goes out to them. . Mr. President, I thine that for reasons that are not clear to me, all to little is said about the more than 1 million per- sons who were uprooted and who have never been permanently settled any- place but just kept 'hostage at camps where they have had no chance to aspire to the traditional role of family life, which ought to be afforded every human being. I am deeply concerned with the seem- ing indifference that all too many el us display toward the plight of these people. I must say that before we can expect that real peace will coroe to the Middle East, that is a problem which leas to be addressed, which has to be faced realis- tically, and a solution roust be brought about. Mr. President, I share the deep dismay which has been expressed by the Sena- tor from South Dakota in connection with the actien that hes been taken. Certainly, there is plenty of blame to go around, whenever terrorism character- izes the activities of ane group of people. Butto think that the action that was taken is an appropriate response for ear- lier acts of violence seems to me to fail completely to understand the plight of these poor Palestinian refugees. I hope we can become aware of neer right to aspirations as humans; that we can become more sensitive to the ways in which their problem.; can be resolved, and that America will take the lead in trying to see that thae problem is dis- posed of in a manner that will ntuare With the conscience of humanity. 1 thank my cone:a...we from South Dakota. Mr. ABOTJREZK. Mr, President, will the Senator yield? 'Mr. HANSEN. I yield Mr. ABOUREZ.K. Mr. President, I thank the Sweeter from Wyoming for his oomments. T. think it is well past time when the United States of America and Its People consider that the way to stop the fighting, to stop the terrorism, and an the other violence in the Micelle East, Is to deal with the Palestinian people as a refugee people. Until such time as they are al- lowed to find some home, following their dispersal by Israel in 1948, there will not be peace in the Middle East, nor in the world. As you know, the United States is in danger of being drawo into that situa- tion with each commitment we make to Involve ourselves in the Middle East con- flict. Mr. President, I would like to say one more thing with regard to the refugees, themselves. Last year, at the same time that this body voted $12 billion in mili- tary aid to Israel, ar other $50 million was added by way of an amendment to resettle Soviet Jews into Israel. They were not even going to stop off ire this country on their way. That was Just a direct contribution to resettle Soviet Jews in Israel. At the same time Oat that happened, I offered an amendment to increase our contribution to the UNRWA Palestinian refugee fund controlled by the United Nations, which was accepted here in the Senate but which was knocked out in the conference committee As a result of the shortage of funds for the United Na- tions Refugee Works egency, the Pales- tinian refugees are going to find some of their schools closet down, and. some of their food rations cut short. With the additionel daily bombings, the daily pounding of American bombs in the refugee camps themselves, the problems will be multiplied many times Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 For Reltfwagigiu am9P7AkoppoR000600080003-? June 24141311:3ved 11259 over?the problems of food, the problems of health care. Their problems are seri- ous enough now, without the addition of this kind of devastation, I thank the Senator for his remarks. Mr. HANSEN. I yield the floor. FOREIGN AsalsrAwcz DISASTER ACT OF 1974--CONFERENCE RE- PORT Mr. S }MAN. Mr. President, I sub- mit a re rt of ,the committee a con- ference on .R. 12412, and ask for its immediate c deration. The PRES Cl 01,10117E1t. The re- port will be sta title. The second assi t legislative clerk read as follows: , The committee of c eencc on the disagreeing votes of the o Houses on the amendments ef the Seri to the bill (H.R. 12412) to amend the eifim. As- sistance Act of 1961 to author an ap- propriation to provide disaster f, re- habilitation, and reconstruction st- ance to Pakistan. Nicaragua, an e Sahelian nations of Africa, having after inn and free conference, hay agreed to recommend and do recommend to their respective 4-lenses this report, signed by a majority of the conferees. The PRES/DZNO 0,1v.rICER. Is there objection to the consideration of the con- ference report? There being no objection, the Senate proceeded to consider the report. (The conference report is printed in the House proceedings of the CONGRES- 5/ONAL RECORD of June 20, 1974, at pp. H5351-H5352.) Mr. SPARKKAN, )(Ir. President, I can summarize very briefly the House-Sen- ate compromise contained in this con- ference report. The ,bill Is intended to authorize appropriations for disaster relief in three areas; Pakistan, Nicara- gua, and drought-stricken Africa. For this purpose, the House had allowed $115 Million And, the Senate $150 million. In conference, `Mr. President, the House receded, allowing the full $150 million It will be spent as follows: $50 milli for Pakistan, $15 million for Nicara and $p million for drought-stri Africa. The only change from the to Version is that the $10 million ear ?? by the Senate for Ethiopia ; been changed from not less than $1.1):t illion to not more than $10 million. , In addition to the authoriz n of ap- ? propriations, Mr. President e confer- ence report contains a p ision from the House-passed Ye3,19 euulring the Secretary of Stateto no Congress 30 days prior to the entry ? force of any proposed modification a debt owed to the United States?by foreign govern- ment by way of th oreign Assistance Act of 1961. The S te conferees found this a useful requi ent, because it will allow Congress t eyiew proposed debt modifications w eh often involve large sums of money Mr, Preside , I believe that conferees from both H es found this a very satis- factory co erence, and I move the adoption of the conference report. ? The PRESIDIN'G 01,10.1.CER. The ques- . tion is on agreeing to the conference report. The conference report was agreed to. TEMPORARY INCREASE IN THE PUBLIC DEBT LIMIT The Senate continued with the con- sideration of the bill (H.R. 14832) to provide for a temporary increase in the public debt limit. Mr. ROBERT C. BYRD. Mr. President, what is the pending question? The PRESIDING OFFICER (Mr. HELMS). The pending question is the amendment of the Senator from Mon- tana to the amendment of the Senator from Alabama. Mr. ROBERT C. BYRD. I thank the Chair. UNANIMOUS-CONSENT AGREEME ON RENEGOTIATION ACT OF 1 H.R. 14833 Mr. ROBERT C. BYRD. Mr. Pr- .ent, at such time as the bill HR. 1 3, an act to extend the Renegotiati Act of 1951 for 18 months, is called u d made he pending business befor e Senate, sk unanimous consent t there be a itation thereon of 3 rs, 1 hour to be er the control s.f r. PROxmIRE, and t remaining ti ? be equally di- vided een Mr. G and Mr. BEN- NETT; th time o ny amendment be , with the exception y Mr. TAFT, on which limitation; that time otion or appeal be tes, and that the usual form, with Taft amend- ot ge ne, will be in limited to of an amen there be a 1- on any deba limited to agreement in the under nding ment, al ugh n order. Th obje is ESIDING OFFI n? The Chair hears rdered. . Is there e, and it ANZVIOUS-CONSENT AGRE ON CONTINUING RESOLUTIO Mr. ROBERT C. BYRD. Mr. Preside I ask unanimous consent that at such time as the continuing resolution is called up and made the pending business before the Senate, there be a limitation thereon of 1 hour, to be divided between Mr. Mc- CLELLAN and Mr. YOUNG, and that there be a limitation on any amendment, de- batable motion, or appeal of 30 minutes, 30 minutes to be divided and controlled In accordance with the usual form, and that the agreement be in the usual form. The PRESIDING OFFICER. Without objection, it is so ordered. The text of the unanimous-consent agreement is as follows: Ordered, That during the consideration of H.J. Res. 1062, making continuing appro- priations for the fiscal year 1075, and for other purposes, debate on any amendment. debatable motion or appeal shall be limited to 30 minutes, to be equally divided,and con- trolled by the mover of such and the man- ager of the resolution: Provided, That in the event the manager of the resolution is in favor of any such amendment or motion, the time in opposition thereto shall be controlled by the Minority Leader or his designee: Ordered further, That on the question of ? the final passage of the said resolu , de- bate shall be limited to 1 hour, to equally divided and controlled, respectiv , by the Senator from Arkansas (Mr. 1VIc0 LLAN) and the Senator from North beta (Mr. YouNo) : Provided, That th d Senators, or either of them, may, f e time under their control on the p of the said reso- lution, allot addition e to any Senator during the considerat of any amendment, debatable motion o ?peal. ORDER FO COGNITION OF SEN- ATOR ERT C. BYRD, PERIOD FOR I SACTION OF ROUTINE MO - G BUSINESS AND FOR CO .-sP katATION OF CONTINUING LUTION ON MONDAY, JUNE 1974 r. ROBERT C. BYRD. Mr. President, k unanimous consent that on Mon- ay, after the two leaders or their des- ignees be recognized under the standing order, the junior Senator from West Vir- ginia (Mr. ROBERT C. BYRD) be recog- nized for not to exceed 15 minutes; that there then be a period for the transac- tion of routine morning business of not to exceed 30 minutes, with statements limited therein to 5 minutes each; and that at the conclusion of such period for the transaction of routine morning busi- ness the Senate proceed to the consid- eration of the continuing resolution. The PRESIDING OFFICLA. Without objection, it is so ordered. Mr. ROBERT C. BYRD. Mr. Presi- dent, I yield the floor, and I suggest the absence of a quorum. The PRESIDING OrtoiCER. The clerk will call the roll. The second assistant legislative clerk proceeded to call the roll. Mr. ROBERT C. BYRD. Mr. Presi- dent, I ask unanimous consent that the order for the quorum call be rescinded. The PRESIDING OFFICER, With- out objection, it is so ordered. ORDER FOR ROLLCALL VOTES TO OCCUR AFTER 3:20 P.M. ON MON- DAY Mr. ROBERT C. BYRD. Mr. President, ask unanimous consent that if any all votes should be ordered on the co uing resolution on Monday, or on any er matter prior to the hour of 3:20 ., that such vote not occur until after t vote on the Allen amendment, which a dy has been scheduled. The P IDING 0.F.toiCER. Without objection, 1 so ordered. Mr. ROB C. BYRD. This would mean no rollc votes would occur prior to the hour of 20 p.m. Monday. ORDER FOR RE ? NITION OF SEN- ATOR HANS AND SENATOR TOWER ON TUDAY, JUNE 25, 1974 Mr. ROBERT C. BYR Mr. President, I ask unanimous consen at on Tues- day, after the two leaderr their des- ignees have been TeCogniZ under the standing order, Mr. HANSEi and Mr. TOWER be recognized in that order, each for not to exceed 15 minutes, - Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 Approved For Release 2000/08/27 : CIA-RDP751300380R000600080003-9 S 11260 CONGRESSIONAL RECORD -- SENATE June 1, 1974 The PRESIDING OFFICER. Without objectio it is so ordered. 0 R OF BUSINESS Mr. ROBER I yield the floor. Mr. LONG addr The PRESIDIN Senator from Louisia . BYRD. Mr. President, ? the Chair. OEFICER. The Is recognized. TEMPORARY INCREA IN THE PUBLIC DEBT The Senate continued with 4ae con- sideration of the bill (H.R. 14832) pro- vide for a temporary increase in th tib- lic debt limit. 4 Mr. LONG. Mr. President, I wish say a few words just to make my posi tion clear with regard to the Kerinedy:r amendment on which the Senate will be voting on Monday. As I said before, and I repeat, I would like to see a tax cut of a nature that would relieve some of the ravages of in- flation among the working poor and the lower income people in particular. These people for the most part are not in a position to defend themselves against the rapid increase in the cost of living. There is one aspect of the Kermedy amendment which was first gene rated by the Committee on Finance, of wlaich I have the honor to be chairman, the so- called low income tax credit, or work bonus, and that is in my judgment a very meritorious piece of legislation. That aspect of it has been passed by the Senate twice. It seeks to as:sure the working poor that some of the taxes being collected on their meager incomes by social security tases, and other taxes, would be reimbursed to them. It tends to increase the income of the working poor by about 10 percent and it phases out at the earning figure of $5,600 for worker who has dependent children his family. That proposal, Mr. President, is a - ter that is not, certainly, my Idea; was the joint thinking of the Comrnifle on Finance when we worked in the elfa,re reform area, and we felt then fnt what we should try to do is make at more attractive to the poor than lf are. Mr. President, I feel th Nation can afford that tax relief, matter how large the deficit is. That m would cost less than $1 billion T latest estimate I saw in that respect I round $700 mil- lion. In times of ri prices and Infla- tion I think that t simple element of tax and social jus is most appropri- ate. I am aware off e fact that there are many peole Iit e low income tax brackets who a have major deficits in their finances While we re indexing the cost of living for .*;",se who are drawing bene- fits in org zed labor, and a great union like the ted Automobile Workers has it writte Into their contract that wages will i ease with the cost of living, while e have provided for automatic cos -living increases for social se- curl beneficiaries, while we try to keep up th hiflation with tensest to our Clov- e ent employees, and generally or- g nized labor and farsighted etriplo:yers try to do as much for their employees, nevertheless, Mr. President, there are just a lot of people who, because of fac- tors beyond their reach, are not in any- wise able to protect themselves from the increase in the cost of living that has been going on. Mr. President, some people benefit from inflation. Not everybody suffers. There are a lot ? of people who benefit very greatly?f or example, those who use large amounts of borrowed money in the course of their business benefit from the fact that they will repay the borrowed money with cheaper dollars which will be easier to come by. Students of eco- nomics know a great number of others who likewise benefit from inflation. But many others suffer, and we should 1 at those who suffer the most from ation and we should try to give e relief. , Mr. President, even tho the Go ment has deficits, I ? nk we vroul justified in providi x relief areas where it i rticularly in ce needed. I am n wedded to as articular tax reduction. jn not we ed to a $6 bil- lion tax cut, any er figure. I just feel it wouldnate at this time to provide some elief for those who are getting the of it with the high degree of inflat ng on. That, how do ot mean I am going to vo for the decreases in the Kenn arnendme In fact, to me, it just the op ite because the am eat provides we will repeal e depletion allowa for oil and annot help but notice t the a4,4aidment would place little, or n si- fonal tax on the fantastic profits e major oil companies in foreign Ian e have heard about the windfall pro set Its. Most of them have come from for- eign oil. The reason the public has suffered from the greatest increase in the cost of living in a 9-month period has been due to the cost of energy. Why is that? It is because this Nation impru- dently, in my judgment, has had policies In effect that made it more profitable for people to find and produce oil overseas than to find and produce it here. It was that economic pOlicy that resulted in our drilling rigs and investment capital being used to drill and produce more oil in foreign countries and in areas border- ing along those foreign lands than in Producing it here, in the Gulf of Mexico, the Atlantic, and the Pacific. The logical. way to overcome that shortsighted policy is to make it more at- tractive to search for energy here, and less attractive to try to find and produce energy overseas. What would the Kennedy amendment do about that ?, The best I can make out, It would make it even less attractive to find the energy here and, relatively speaking, make it more attractive to find it over there. Most of us who have some knowledge about this subject believe that if we re- pealed the depletion allowance complete-. ly for some of these major companies do- ing business in the Near East and else- where, it would not raise their tax liabil- ity at all, because the forei tax credits that they are going to c ulate under the laws of those variou rids and under the Internal Revenue e and its :regu- lations exceed any s that they would owe, quite apart a the depletion al- lowance, even if hod no depletion al- lowance at all. What do e antendmer t do about that? Zero. t absolutely nothing, So, on profits being made ia the foreign ds, the tax advantages would contin ? to be such that there would be no tional taxes. There would be a tre dous tax increase on the person we was trying to produce it here. qr. President, this Nation is still fab- -fficating drilling platforms and drilling si= - rigs to be placed on the bottom of the North Sea to produce oil for England and European nations generally. They are being fabricated here and sent there to be put in place to find oil over there. In time of need, we cannot rely on ono bar- rel of that oil.. It will go to Europe.. 'We are still fabricattag that equipment and even sending highly competent American working people to the Near East and elsewhere to help drill oil wells and find energy for those lands. Why do they do that? Because the economics, in- cluding the tax structures, are such that it is more desirable to produce oil over there than it is to produce it here. That is an utterly ridiculous situation, arid yet the Kennedy amendment would make it worse. Furthermore, it will come as a surprise to some Senators, ar d I presume the sponsors of the Kennedy amendment, to know that in the last 15 years more than half of the 20,000 independent producers of oil in this Nation hsve been driven to the wall. They have been put out of busi- ness, They /1,3 longer produce oil. The testimony before the Senate Fl- ance Committee was that if we adopted amendment, the 10,000 remaining in business will be cut in half again in rs, so that we will then have less 000 independent producers of oil. ht to be striving to bring people the oil business, not drive them ht to be striving to bring back aess some of the 10,000 who e business. because of our policies, rather than re- e number of people who a very unwise thing, o make this Nation foreign oil, rather It would defeat It would upset u elf-sfficient in Reform Act, on that in- e is being 5 tha We back in out. We into the got out o tax and ot duce in half are left in tha usine So it wated and it woud t more dependent than less depende Project Independen. our desire to become,. energy. So did the 1 which also increased tM dustry just as an inc sought in this amendinent:' That is not all. The pro also repeal the ADR, he ase al would precis,- Cm range, saicl mak it less 'active to buy and install modern equiprVent in new plants in this country. The Secretary of the Treasury 'testi- fied on that subject. He pointed- out something that I have felt for a long time?and I have the facts to support it beyond any reasonable doubt?that when Congress passel the -Tax Reform Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 Approved For Release 2000/08/27 June 21, 1974 CONGRESSIONAL la %mai Wheat Agreetnent armed with an printed at the end of expression of iritereet from the Senate proceedings.) the, thiilialnitrtant to the American wli tgrOiier a this resolution would stre tlien the hands of our negotiators wit tlIT.S-wliole question is reopened. Solifficiii-proVides that we will ri,lf die earliest possible moment ate itlfzing the new International -eeifielit,- to takeup and nego- ese'isiiiel.1 believe it will be If -the -Senate endorses the con- roteeting the American wheat- rough these negotiations. lc it also would be worthwhile thisfesolution indicating our ertof the efforts of the Amer- & the International Wheat wx tints boa cePt grower Wet to ain't, moral,idarl e - t-01.11 v;th Wheat calling of is judged- . ble of succ ? I hope Senate Tte-So result In a ranged by Council at t Order to rear relating to Ut rights and ob and exporting The 'United in internation trade in -Wheat tionai 'Wheat ' the U.S. Senafe represeiited ani terriational emit gotia,ting table ra tive of unrestral petition. This cotuttry s continuing this kin derstanding. Appro tion t 40 today Intent of the Sena Mr.' WORE. We quettion. fikke ACTING PR Pore: The question resolution. The resolution was Mr. McGER. I may vote by which the res to. 340 is entirely consistent 21 of the International einefit Which envisions the tiathig sessions when it e,9: _re, eloic/9 opsmoi380R0006otgieroom1221 the Senate MESSAGE FROM THE HOUSE A message from the House of Repre- sentatives by Mr. Berry, one of its read- ing clerks, announced that the House had passed the joint resolution (H.J. Res. 1062) making continuing appropriations for the fiscal year 1975, and for other purposes, in which it requests the con- currence of the Senate. HOUSE JOINT RESOLUTION REFERRED The joint resolution (H.J. Res. 1062) making continuing appropriations for the fiscal year 1975, and for other pur- poses, was read twice by its title and referred to the Committee on Appropria- tions. these matters are caps- ul negotiation. !CONGRESSIONAL BUDGET AND IM- the Senate will approve lk POUNDMENT CONTROL ACT OF on 340 and that this will 1974?CONFERENCE REPORT gotiating conference ar- e International Wheat earliest possible date in -cement on provisions Aces of wheat and the lions of the importing ntries. te,s has been a partner agreements regarding nce the first Interns- ethetit was ratified by 1949. These treaties Milt to establish in- d equity at the ne- er than the alterna- price-cutting a:ga- d take the lead in of international un- of Senate Resolu- clearly show the that this be done. ready for the IDENT pro tem- n agreeing to the eed to. o reconsider the tion was agreed Mr. MANSFIELD. President, I move to table that mo Tit mOtion to lay o the table was ? agree to. ME AGES PROM f - Messages in writing fro of the United States were to the Senate by Mr. Heit secretaries. &President untested one of his ? EXECUTIVE MESSAGES 'ERRED As in executive session, th esiding Officer (Mr. ttAntt) laid befor he Sen- ate messages front the Presides of the United Stites submitting sundi nomi- nations which wete referred to The ap- propriate committees. (The nominations received today are Mr. MANSFIELD. Mr. President, what Is the pending business? The ACTING PRESIDENT pro tem- pore. The Senate will resume the con- sideration of the report of the committee of conference on H.R. 7130 which the clerk will state. The assistant legislative clerk read as follows: The committee of conference on the dis- agreeing votes of the two Houses on the amendments of the Senate to the bill (H.R. '7130) to improve congressional control over budgetary outlay and receipt totals, to provide for a Legislative Budget Office, to establish a procedure providing congressional control over the impoundment of funds bY the executive branch, and for other purposes, having met, after full and free conference, have agreed to recommend and do recom- mend to their respective Houses this report, signed by all the conferees. The ACTING PRESIDENT pro tem- pore. Without objection, the Senate will resume its consideration. There being no objection, the Senate proceeded to consider the report. (The conference report is printed in the House proceedings of the Co/4ms- S(ONAL RECORD of June 11, 1974, at pp. H49'79-H4992.) Mr. ROBERT C. BYRD. Mr. Presi- dent, I ask unanimous consent that the following members of the staff of the Committee on Rules and Administration have the privilege of the floor during the consideration of the budget reform con- ference report: William McWhorter Cochrane, Tony Harvey, and Joseph O'Leary. The ACTING PRESIDENT pro tern- pore. Without objection, it is so ordered. Mr. METCALF. Mr. President, during the consideration of this conference re- port, I ask unanimous consent that Mr. Winslow Turner and Mr. Don Tacheron of my staff be permitted the privilege of the floor. The ACTING PRESIDENT pro tern- pore. Without objection, it is so ordered. Mr. 1/1USKIE. Mr. President, I ask unanimous consent that Alvin From of the staff of the Committee on Govern- ment Operations and Allen Schick of the Congressional Research Service be ac- corded the privilege of the floor during the consideration of this conference re- port. The ACTING PRESIDENT pro tens- pore. Without objection, it is so ordered. Who yields time? Mr. MANSFIELD. Mr. President, I Suggest the absence of a quorum, and ask unanimous consent that the time not be charged to either side. The ACTING PRESIDENT pro tem- pore. Is there objection? Without objec- tion, it is so ordered. The clerk will call the roll. The assistant legislative clerk pro- ceeded to call the roll. Mr. MANSFIELD. Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. The ACTING PRESIDENT pro tem- pore. Without objection, it is so ordered. Who yields time? Mr. ERVIN. Mr. President, I yield my- self such time as I may use from the time at my disposal. I ask unanimous consent that the fol- lowing staff members be allowed to re- main on the floor during consideration of, and votes on, the conference report on HR. 7130: Robert Bland Smith, Jr., W. P. Goodwin, Jr., Alvin From, Herbert Jasper, J. Robert Vastine, and Allen Schick. The ACTING PRESIDENT pro tem- pore. Without objection, it is so ordered. Mr. ERVIN. Mr. President, the con- ferees have reconciled by unanimous vote all differences between the legisla- tion of the two Houses reforming the congressional budget process and insti- tuting controls on the impoundment of appropriated funds?Senate report No. 93-924. I strongly urge the Senate to agree to the conference report. To my mind, this is the most impor- tant piece of legislation that I have worked on during the 20 years that I have served in the Senate. It is the finest example of the legislative process at work that I have ever witnessed. The Joint Study Committee on Budget Control began work in this area before legislation was even introduced, and to a large extent this act is the outgrowth of the Joint Study Committee's endeav- or. By the same token, the Committees on Government Operations and Rules and Administration in the Senate have done outstanding work in the formula- tion of the bill which passed the Senate unanimously on March 22. Many other committees made significant contribu- tions to the development of this meas- ure during the past year and a half. The committee of conference owes its gratitude to a staff drafting group which assisted greatly in resolving the differ- ences between the House and Senate versions and in formulating the compro- mises which the conferees have ac- cepted. The Senate conferees were aided by Robert B. Smith, Jr., chief counsel and staff director of the Government Operations Committee, Herbert N. Jas- per, Alvin From, J. Robert Vastine, and W. P. Goodwin, Jr. The conferees also Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 S 112 proved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 CONGRESSIONAL RECORD ? SENATE June 21, 1974 were assisted most magnificently by Harry Littell, the Senate's, legislative counsel and his a,ssestane, Larry Monaco, and by W. Thomas Emmen, staff editor of the Committee on Government Oper- ations. Special praise must go to Allan Schick of the Congressional Research Service. Dr. Schick's knowledge, advice, and dili- gent endeavors have contributed greatly to the enactment of this complex legis- lation within one Congress, a remark- able feat in itself. Also, I should like to express my personal appreciation to Robert A. Wallace, president of the Ex- change National Bank of Chicago, who served as chief consultant to the Govern- ment Operations Committee during its consideration of the bill. With the help of all these persons, and more from the House staff, the con- ferees were able to work out a very good solution to the differences between the Senate and House versions. The conferees were faced with a host of issues to resolve, the most important of which were the type of congressional budget office to create, the timetable for the congressional budget proem, the manner in which authorization bills are to be handled in the future, the nature of the annual budget resolutions and crosswalks by committee functions, wad the method by which the congressional budget actions are to be reconciled before the start of each fiscal year. These have been resolved in a fashion Which has taken int6 account to a remarkable de- gree the interests of all committees in- volved in the budget process.. The impoundment of appropriated funds by the President--a highly contro- versial issue that has plagued the Con- gress for many years?is dealt with by way of an effective compromise. , I have worked on this issue for the past several years, and, I am extremely pleased that the major concerns of each House have been taken care of in title X of the act, which I believe will provide a sound and workable solution to the problem. The impoundment title is based on the assumption that the President has no power under the Constitution to im- pound lawfully appropriated funds in the absence of a delegation of such author- ity by the Congress. However, it -recog- nizes that there are times when the proper exercise of the executive func- tion might make the deferral or rescis- sion of budget authority the best pub- lic policy. In order to meet these situa- tions, the title deals with three types of executive actions and places restrictions on each of them. First, it retains the Senate's modinea- ton to the Antideficiency Act which pro-- vides for routine reservations of budget authority "solely to provide for contin- gencies, or to effect savings whenever savings are mare possible by or through changes in requirements or greater en. ficiency of operations." The so-called other developments clause of the Anti- deficiency Act?which has been used by the Executive to justify many impound- ments?is deleted, and reservations are restricted to those made under the pro- visions of that act or other laws. Second, it requires the President to re- quest the rescission of all or part of an appropriation which he determines is unnecessary to carry out the full objec- tives and scope of a program or which should not be obligated for fiscal policy or other reasons, including the termina- tion of programs. In other words, both Houses of Congress must pass a rescis- sion bill in order for the President to terminate or cancel a program or to de- lay the obligation of 1-year appropria- tions to the end of the fiscal year in which they are available. Third, it delegates to the President a limited authority to defer the obligation of budget authority for a period not to exceed the expiration of the fiscal year in which they are deferred. Deferrals by the President include any delay or with- holding of budget authority, whether by establishing reserves or otherwise. The President must notify Congress that he proposes to defer budget authority, and the deferral will be subject to the dis- approval of either House of Congress by adoption of an "impoundment resolu- tion." If either House passes a resolution of disapproval at any time, the Presi- dent is thereby required to make the budget authority available for obliga- tion. Proposed rescissions and deferrals will be submitted to Congress by special mes- sage which will be published as a House or Senate document and in the Federal Register. They will be delivered to the Comptroller General and be referred to the appropriate committees. Both rescis- sion bills and impoundment resolutions disapproving Proposed deferrals will be referred to the appropriate committees, with provision for their discharge by pe- tition after 25 days. The Comptroller General will be granted authority to sue in the Fderal District Court for the District of Colum- bia to enforce the provisions of the title, using attorneys of his own choosing, 25 days after he gives notice to Congress. This authority is not intended to infringe upon the right of any other party to ini- tiate litigation. The Comptroller General also will be charged with the responsibil- ity of monitoring the _Executive and re- porting to Congress on any deferrals, reservations, or impoundments which are not reported by a special message. A disclaimer section directs that noth- ing in the impoundment title should be construed as ratifying or approving any past or present impoundment, affecting the claims or defenses of any party to litigation concerning any impoundment, or asserting or conceding the constitu- tional powers or limitations of either the Congress or the President. The disclaim- er also disavows any intention by Con- gress to supercecie any law which requires the mandatory obligation of budget au- thority, since several such statutes have been enacted in response to the wholesale impoundment of funds appropriated for specific programs. The President is required to notify Congress by the 10th of each month the amount of budget authority which is being reserved or deferred, including the amounts which he has proposed to be rescinded or deferred. These monthly re- ports will take the place of the present quarterly reports required by the Fed- eral Impoundment and Information Act of 1972, as amended, which will be re- pealed. The delegation to the President of au- thority to "defer" she obligation of budget authority for definite and limited periods of time is not the slime as a wholesale license to "impound" as that term is commonly understood today. This Is an important distinction because no authority is granted to terminate ore can- cel a program, whether by direct or in- direct action, or by inaction, nor is the authority to defer granted for indefinite Periods of time. Mr. President, I firmly believe that the impoundmene control and congressional budget procedures provided in this act are workable. They constitute the first major reform of the method of author- izing and appropriating funds in more than half a century, and they are neces- sarily complex. However, men of reason and good faith can mace them work effi- ciently so that Congress can gain effec- tive control over the financial resources of the Federal Government. This act will not guarantee fiscal re- sponsibility on the pare of Congress and the Executive, but it will make that goal attainable by those who serve here in the future so that history will record this act as the most lasting achievement of the 93d Congress. Mr.. President, I ask unanimous con- sent to have printed in the RECORD a brief statement which summarizes: the prin- cipal budget control lectures of the con- ference report. There being no objection, the summary was ordered to be printed in the RECORD, as follows: CONGRESSIONAL emcee NO Im PO TINDME NT CONTROL An le' 1974 SUMMARY OF Trmrs .THROUGH TX raleS I through IX of the conference report on H.R. 7190 may be cited as the "Congressional Budget Rot of 1974". They provide the procedures and other reforms which are intended to enable the Congress to enact a onnprehenilve congressional budget each year. Title X, which may be iiited alone as the "Impoundment Control Act of 1974", pro- vides procedures to effectively control the practice of Eirecutive i'.rnpoundment of appropriated funds. It is not discussed herein. Title 1. House and Senate 1,vdget Oommittees Budget Committees are sstablished in the House and the Senate, with parallel jurisdic- tions over the congressional budget process. Membership on the Senate Budget Commit- tee is the same as was provided in the Senate bill. The Senate Budget Committee will be a Category k committee, subject to the limit of tow memberships on such committees begtoning wit the 95th Con- gress in 1977. Ms 15 Members of the Senate Budget Committee are to be appointed in the same manner as members if other standing comnititees. Proceedings of the senate Budget Committee are to be open except when closed for cause by majority vote of the Committee. Title II. Congressional Budget Office A Congressional Budget Office is ,to be established, headed by a Director appointed for a 4-year term by the Speaker of the House and President Pro tem of the Senate upon the recommendation; of the Budget Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 June'ApIPMed For RelemsaffsCIRKi cit-ge75MNR000600080003-9 Cemmittees. The Congressional Budget Office will be responsible for assisting all committees and ;Member? regarding budget matters. Priority Is to be given to the Bndget Committees (whip will have staffs of their own) and to the Appropriations and Tax Committees. Other committees are entitled to obtain available information and other assistanCe to the extent practicable., Members are 'to be , given available budget information. The Congressional Budget Office is to co- ordinate Its activities with other c,pngres- sional agencies?the General Accounting Of- fice, the Library of Congress, and the Office of Technology Assessment. It also is author- ized tto secure information, facilities, and services from the executive branch. The Budget Office Is authorized to hire staff and to obtain computer capability (with approval from the Senate Rules and Administration and House Administration Committees for major equipment). Except for certain ex- cluded categories, information obtained by the Congressional Budget Office is to be avail- able or public copying. Title III. Congressional budget process The. President is to submit a current serv- ices budget by November 10, and the regular budget in January The timetable of the con- gressional process provides for all commit- tees to report their views and estimates to the Budget Committees by March 15 and for the Congressional Budget Office to re- port by April 1. Adoption of the first Budget Resolution is. to IN by May 15, with the same deadline for the reporting of authoriz- ing legislation. After completing action on all regular appropriation bills, Congress adopts a second Budget Resolution by Sep- ? teraber 15, followed by any. reconciliation action necessary to implement the budget. The Budget Resolutions are to set forth total level ot revenues, new budget authority, outlays, public debt, and budget surplus or deficit. The Budget Resolution also is to allow spending among the major functions In the budget, and these allocations are to be subdivided in committee reports to show new and continuing programs, permanent and regular appropriations, and controllable and other expenses. A crosswalk procedure is established for relating the amounts in the Budget Resolution to committee jurisdic- tions and the ve,riolis appropriation bills. No revenue, spending, entitlement, or debt regulation (other than advance reve- nues and advance appropriations) may be considered prior to adoption of the first Budget Resolution. The resolution estab- bashes targets to guide subsequent con- gressional action, but it does not limit the amounts that may be appropriated. Score- keeping procedures are established to pro- vide reports on congressional budget actions and to protect the 5-year impacts of these actions. The second Budget Resolution sets firm levels for revenues and expenditures, and these must, be adhered to IA subsequent leg- islation, A la permissible to adopt additional resolution revising the amounts In the buget.- The second Budget Resolution may direct that changes be made in revenues, expenditures, or debt, and these directions are to be implemented in a reconciliation process before the start of the new fiscal year. Title IV. Procedures for budget Improvement Special procedures are provided for back- door spending and entitlement legislation. Contract and borrowing authority is to be effective only to the extent provided by ap- propriations. Entitleglea bills are to be referred to the Appropriations Committee (under a 15-day limit) if they provide new Spending authority above the relevant alloca- tions in the Budget Resolution. These proce- dures would apply ony to new backdoor spending, not to existing contract, borrowing, or entitlement authority. Nor would they apply to exempt programs such as social security funds, 90 percent self-financed trust funds, or government corporations. The dead- line for the reporting of authorizing legisla- tion is set at May 15, with provisions for a waiver in the House or the Senate. The May 15 deadline does not apply to entitle- ment bills or to omnibus social security leg- islation. The Congressional Budget Office is to make cost analyses of reported bills (other than those of Appropriations Committees). The jurisdiction of the Appropriations Commit- tees is adjusted in accord with this legis- lation. Title V. Change of fiscal year The fiscal year is to be changed to an October 1-September 30 cycle, beginning - with the 1977 fiscal year. The preceding fiscal year will run from July 1, 1975 through June 30, 1976. There will be a 3- month interim period (July 1-September 30, 1976) for which budget estimates will be submitted in accord with arrangements to be made in consultation with the appropri- ations Commitees. Title V has provision for the transition to the new fiscal year, for the conversion of authorizations to the new timetable, and for accounting adjustments. Title VI. Budget and Accounting Act amend- ments The President's budget is to contain esti- mates for each of the items in the Budget Resolution. It also requires reports on vari- ances between estimated and actual revenues and between estimated and actual uncon- trollable expenses. The budget is to be up- dated by April 10 and July 15 and it is to have 5-year cost projections. By November 10 of each year, the Presi- dent is to submit a current services budget based on a continuation of current programs without policy change. The President also is to submit proposed authority legislation one year in advance of the year in which it Is to take effect. Title VII. Program review and evaluation The General Accounting Office Is charged with responsibility for assisting committees in the evaluation of government programs, Including the development Of statements of legislative objectives, methods for review and evaluation of such programs, and the analy- sis of program results. An Office of Program Review and Evaluation is to be set up in the General Accounting Office, Title VIII. Fiscal and budgetary information The Secretary of the Treasury and Direc- tor of the Office of Management and Budget are to cooperate with the Comptroller Gen- eral in developing standardized budget in- formation systems. GAO is to devise standard budget codes, terminology, and classifica- tions for the use of federal agencies in sup- plying fiscal information to Congress. Par- ticular consideration is to be given to the needs of the Budget, Appropriations, and Tax Committees. GAO is to assist committees in identifying their informational needs. Ex- ecutive agencies are to furnish budget in- formation and program evaluations to con- gressional committees. Data inventories with appropriate files and indexes are to be de- veloped, and to the extent practicable, budg- et information is to be supplied to State and local governments. Title IX. Implementing provisions The rules of the House and the Senate are modified as appropriate for the congressional budget process. The various provisions of the bill are enacted as an exercise of the rule- making powers of the House and the Senate and can be change by either. Provisions of Titles III and IV can be waived by majority vote or unanimous consent in the Senate. S 11223 A phased implementation schedule is pro- vided for the various components of the con- gressional budget process and authority is given for a limited application of the budget resolution procedure for fiscal year 1976. Mr. ALLEN. Mr. President, will the distinguished Senator from North Caro- lina yield? Mr. ERVIN. I am happy to yield to the Senator from Alabama. Mr. ALLEN. Mr. President, I thank the distinguished Senator from North Carolina for yielding to me at this time. I rise to commend him for his leadership on the Congressional Budget and Im- poundment Control Act and to commend him also for his outstanding leadership in such a broad range of Government activities and Government policies. The distinguished Senator from North Carolina is crowning a distinguished career in the U.S. Senate with a 2-year period of activity encompassing some of the greatest achievements ever made by a United States Senator in any compar- able period of time. In my opinion, the Senator's record in the last 2 years, with his wide range of interests?in the field of fiscal integ- rity for the Government, in the field of ethical conduct by officials of Govern- ment, in the field of clean political cam- paigns, hi the field of first amendment ? rights, in the great breadth of his knowl- edge, and in the leadership he has dis- played in so many other areas of our Government?is without equal in the history of the U.S. Senate. I would be remiss in my duty if I did not commend the distinguished Senator from North Carolina for his outstanding record. The Senate, which is said to be the greatest deliberative body in the world, is going to lose a great deal of its luster when the distinguished Senator from North Carolina retires from this body. It will be a great loss to the Senate; it will be a great loss to the entire Nation. I want to add my words of apprecia- tion for the outstanding leadership of the distinguished Senator from North Carolina. It is amazing that he is able to cover such a wide range of governmental interests. Any subject before the Senate is of interest to the Senator from North Carolina, and he has a broad background of information that he is able to add to almost any discussion hi the Senate. I also commend the distinguished Senator from Illinois (Mr. PERcY) for the leadership he has displayed; the Senator from Montana (Mr. METCALF), one of the pioneers in this effort to obtain con- gressional budgetary control. the dis- tinguished Senator from New York (Mr. J,Avirs), one of the leaders in this field; the distinguished Senator from Maine (Mr. MusiciE) ; the distinguished Sena- tor from Florida (Mr. CHILES), the dis- tinguished Senator from Georgia (Mr. NuNiv), the distinguished Senator from Tennessee (Mr. Mom) and the distin- guished Senator from Kentucky (Mr. HUDDLESTON). However, marching ahead of the entire group has been the distinguished Sen- ator from North Carolina. We owe him a debt of gratitude, and I commend the Senator. Mr. ERVIN. Mr. President, I am Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 Approved For Release 2000/08/27 CIA-RDP7000380R000600080003-9. S 11224 CONGRESSIONAL RECORD ? SENATE iume 21, 1974 deeply grateful to the distinguished Sen- ator from, Alabama for his Mut greciatts remarks. I had great aadetance in this wort; from the dietinguislied Senator from Maine (Mr. Mermen) ; the distinguished Senator frogueliforttana (Mr. Mennen ; the distinguished Senator from gen- tucker (Mr.-, Aint); the distin- guished Senator from Florida (Mr. Cans); the distinguished Senator from Illinois (Mr. Palter); the destinguietted Senator from New York (Mr. Jents) ; the distinguished Senator front Temiese see (Mr, Beocee) ; and the distinguished Senator from Georgia (Mr. letreMor' Mr. Peesident, every member of the committee worked extremely hard onthts matter. We had great work from great staffs. Then the Rules Committee did a fine job on reviewing our work and In Proposing certain amendments. I think the Nation owes a great debt of gratitude to every member of the Government OP- erations Committee. The development of this bill represents, in my opinion, the legislative process working at its very bast. Mr. JAViefele Mer. Proddent, will thie Senator yield? Mr. ERVIN. I had promited to yield to the Senator from Maine. Mr. JAVITEe Mr. Preddent, will the Senator yield for 1 minute? Mr. ERVIN. Yes. Mr. JAVITS. I beg Senator WENTZ'S Indulgence. Mr. President, I do have one qurstiota but I would first like to join Senetor ALLEN in hailing this as a real milestone, especially in the fight on bafiation, which I am sure Senator Aura would have mentioned. Mr. President, the key to the matt on Inflation is a grip on Expendlturte, which to me is as important as the amount a the budget balanee, and so forth. I have had a long stniggle here to try and Pet Congress on a level with the exereitive, and this is one of the really historic steps in that direction. I, too, would like to joie Ser ator Ettlair In thtieg the members of the com- mittee. V Z May be permitted' to Melee out my be/feted friend and colleague, Senator Peacr, he did something beyond the call of " ridtY. Re ea-alder Weiet ant and sold this peoei am to the businets leaders of America. Their friendship or opposition could have been decisive. So I really think 'we are deeply indebted to him for carrying that part of the load. I also thank Senator Muse= for his collaboration with me ort the bill and especially in the area of tax expendi- tures. I now ask the Senator a question which reates to tax expenditures, that is, the tax indulgences and what they cost us, which is woven through the bill. Because of my continuing ititerest at d concern in the matter of indirect epenct- ing by way Of tax expenditures, I pro- posed amendments to S. 1541. in the Gov- eminent Orations (onernitteer that sought to include the concept of tax ex- penditures in the budget process as spec- ified by that bill. My amendments were accepted by the committee and passed the Senate with only minor changes. The PUrPose of the tax expenditure language in the present bill Is to provide that tax expenditures shall be considered at each step of the budget process to measure their impact on budget author- ity and outlays, their effects on revenue and their general operations in the budget proems. If this information is placed clearly before the Congress, spending decisions will be made on a more informed basis than they have been in the Past. It is essential that any contemplated changes in revenues through tax expend- itures should be brought to the attention of the Congress during the debate on the congressional budget. Therefore, the re- port accompanying the concurrent reso- lution shall contain a list of the estimated levels of tax expenditures by major func- tional categories. Most importantly in the case of legislation proposing new or Increased tax expenditures the revenue committees of each Rouge are charged with the duty of maintaining the appro- priate levels of revenues and tax expend- itures as set forth in the report accom- panying the budget resolution or these committees must explain any deviation from those level. While new or increased tax expendi- tures are not prohibited, the revenue committees will have the burden of ex- plaining any changes and this should lead to a closer examination and more thorough debate of tax expenditures. The provisions of thie conference report re- garding tax expenditures are practically Identical with the provisions of the Sen- ate bal. For purposes c1ear13r a spelling out what is meant by the tax expenditure provisions in the bill, I ask unard.mous consent that the appropriate parts of the report of the Committee im Government Operations accompanying a 1541 be printed in this point in the RECORD. There being no objection, the excerpts from the report 'No. 93-579) were or- dered to be printed in the RECORD, as follows: The bill provides; that ',az expenditures shall be considered at each step of the budget proceseo to measure their impact on budget authority and outlays. their effects on rev- enue arid thetr general operatione in the budget proces& if this information is placed clearly before the Congress, spending deci- sions will be made on a much more informed basis in each particular area than they have been in the past. The committee feels that any contem- plaeed changes in Federal revenues through tax expenditures should be brought to the attention of the Congress when they are de- bating the Congnossional budget. Therefore, the cconcurrent resolution will reflect any enticipated decrensee in Felerel revenue at- tributable to new or expanded tax expendi- tures contemplated by the tax writing com- mittees for the fiscal year in question. The budget resolution will reflect the considered best judgment of the Coneress in regard to appropriate levels of revei use and outlays. In the nue of Legiention proposing new or increased tax expenditures, the revenue com- mittees of each House are charged with the duty of maintaining the appropriate levels of revenues and tea expenditures as set forth in each concurrent resoltition or of justify- ing any deviation from those levels. The Budget Commtttee than review .n(t consider existing tax expenittures This will ensues that arty dectsion or direct; spending priorities will be mad* at consideration of present indirect spending through tax ex- penditures. The Budget Committee will odso determine appropriate changes in the level of revenues inch:ding any decrease col:item- pleten from new tax expen dlnixes to be 'en- acted in the fiscal year in question. The Com- mittee shall also determine the existing Lev- ets tax expenditures and conelder their effects on Indere' revenue; smd 'thetr rela- tionaleip to other matters within the COM- raittee's euriedicollon. Finally. the ?outran- tee shall make oontinuiThe studies of tax ex- nenditureaand rietbeelis of noortifnating tax expendttuxe programs and ditnet budget outlays. 4 * * ASSISI'ANCIS !!`0 MIDGET enseen flees Section 202(a) provide. test 14 shall be the duty and function oi COB to provide the Budget Committees of both Houma with in- formation with respect to the budget, appro- priation bills, other bills authorizing or pro- vidIng budget aethority or tax expenditures. revenues, reeeipta, estimated future revenues and receipts, &longing revenue conditions and such other informatioa es tee commit- tees may request. It farther proeides that at the request of the Budget Committeee, per- sonnel of COB shatl be assigned, on a tem- porery basis, to assist soot. such untimittee. ? or ? ? ? PROXECTION OF REVENUES Al*D MIDGET OUTLAYS SOotiOn 202(e) requires that the Director develop for the Congress Lttformation as to the effect of existing revenue laws, twinning tax expenditures, and exist...lig auteorizaiions and budget authority on ,expenditures during the current &cid year ant for the ensuing 4 liken years. The; is in keeping with the em- pha.sts on long-ringe propene), evaluation and planning required in other sections of the Act. (See titles VI through VIII.) ? ? ? ? e. Sc 307(d). REP )RTS ON LECISLATION PROVID- ING NEA Tax Expzeuirrtnum Committees reporteng leginiation contain- ing new or increased tax oexpendo tures ehall include details of how the tegialation will af- fect existing levels of tae expenditures as contained In the budget neoolution and why evict; action is necessary. The revenue enen- matees of each House are charged with the responsibLlity of fully emeleinine any new or increased tax expenditure and their effect or impact and have the task of,f emotifyine any cleviution from tee level se forth be. the most recent Concurrent Resolution.. This is to in- sure that any new or increased tax expendi- tux? will be approved by the Cougress only after a thorough consideration of all relevant factors. The report win preject resulting tax expenditures for each of the budget yeat and the four following years, and indicate the iropuct, if any, on state enc local sovernment. Mr. JAVITS. The report will accuratelY detail the operation of be tax expendi- ture concept except for the inclusion of tax expenditures in the concurrent res- olution. They sre how in the report ac- companying the resolution. It should aiso. be pointed out that in the discussion of estimated revenues and their sources it is also appropriate to dis- c USS tax expenditures Cie they bear di- rectly on rever ues raised through the tax system and any changes therein may have the result of increasing or decreas- ing estimated revenues. Finally I would like, to reit erste that it is extremely important to consider in- direct outlay 33r way of tax expenditures Lit the general debate ai the budget and Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 Appoved For Relea_se 2000/08/27 : CIA-RDP75B00380R000600080003-9 June 21, iud4 CONGRESSIONAL RECORD ? SENATE S 11225 also at such times as the Congress is considering tax legislation. If we do this, decisions inade In WS area will-be on a More _Wormed basis than ever before and will be coqrdinated to a much greater degree with pig direct spending through the budget process. Mr. President, tus legislation provides a workable Wu:fel' Congress to under- take its exangnatien of the needs and prograni alternatives,, and the allocation Of revenues to diverse human and na- tional needs. It will establish a means for more responsible and disciplined execu- tion by congress to 16 responsibilities in the budget-policymaking fields. It will allow Congress to acquire the means for the gathering of interpretive and analytical data on spending and re- lated Programs; Most Importantly, it will facilitate the use of objective expendi- tures analyses to help it form independ- ent judgments, on appropriations mat- ters. There are no simple solutions or panaceas for this problem. I trust that some of the solutions whcih will begin to resolve these problems may be found in this bill. One other change that should be pointed out is that section 311 which deals with limitations on consideration of new budget authority legislation, en- titlement legislation or revenue reducing legislation also includes consideration of tax expenditure measures. I note that the managers added a statement at page 64 of the report which reads: Although there is no specific mention on the consideration Of tax expenditure meas- ures, the managers note that after comple- tion of the reconciliation process, Congress may not consider tax expenditures legisla- tion that would have .;the efiect of redUcing total revenues below the appropriate level of the most recent concurrent reSolution. I ask the Senator from North Caro- lina whether, therefore, we are right to assume that, basically, the Senate pro- visions regarding tax expenditnreS are Incorporated in this conference report. Mr. Eprvnl, Yes, they are. Mr. President, the Senator from New York made many valuable contributions to the Senate bill and to this report. I think one of the wisest things ever suggested to any committee of the Sen- ate was the suggestion of the Senator from New York that instead. of having controversies in which the President im- pounds funds when he feels that some program ought to be eliminated or some appropriation fer some program should be reduced, we establish the principles incorporated in the conference report? that the President asip Congress tO make a rescission of the programs, to revoke the program or to rescind the appropria- tion, or to rednce the appropriation. This is an orderly way, to solve the problem which the executive branch and the leg- islative- Aril,rAnti. haYe been quarreling about, I suppose, almost since George -Washington took his first oath of office as President. Mr. JAVITS. Mr. President, I thank my colleague very much for noting that. I believe the impoundment issue is one of the most important in the relationship between Congress and the Executive and always thought that the rescission method was the most appropriate way to deal with expenditures that the Presi- dent did not want to undertake. I am very pleased the conference request in- cludes that provision and also tightens use of the antideficiency act in this area. Mr. ERVIN. Mr. President, I yield to Senator Music= as much time as he may require and then I will yield to the Sena- tor from Illinois. Mr. PERCY. Mr. President, may I just have 30 seconds? Mr. MUSKIE. Yes, I yield. Mr. PERCY. While my esteemed friend and colleague, Senator JAVITS, is present, I would like to pay particular tribute to him for writing in the tax expenditure provisions in the bill. Mr. President, I will have some more extensive comments on those provisions when I later make my comments on the bill. While the Senator from New York is on the floor, I want to pay tribute to him for this, and much other, extremely valuable assistance that he provided. The PRESIDING OFFICER. The Sen- ator from Maine is recognized. Mr. MUSKIE. Mr. President, I join in the commendations that have been ex- pressed on the floor of the Senate this morning, and I especially would like to direct my comments to the distinguished Senator from North Carolina. The observations made by Senator ALLEN are most appropriate. I have con- sidered it a privilege to serve under Sen- afor ERVIN'S leadership during the past 2 years. He should be complimented upon the record of that leadership. Mr. President, I join the distinguished Senator from North Carolina and the distinguished Senator from Illinois (Mr. PERCY) in urging adoption of the confer- ence report on H.R. 7130, the Congres- sional Budget and Impoundment Control Act of 1974. Mr. President, this legislation is the best kind of reform measure?self-re- form. It will give Congress the means to deal in an orderly and comprehensive fashion with our most important deci- sions?those of budget policy and na- tional priorities. The Congressional Budget and Im- poundment Control Act of 1974 is per- haps the most important bill Congress will consider this session. It is designed to give Congress the in- formation and staff necessary to deter- mine each year how much money the Government has, how much it should take in, and how much it should spend, before determining what to buy with the taxpayers' dollars. Durii.g the past half century, the Con- gress has witnessed a steady erosion of its control over the budget. In contrast, we have seen a consistent escalation of executive influence over budget and fiscal policies. The Congressional Budget and Im- poundment Control Act of 1974 will give us the means to reverse that erosion. It can reform the most serious shortcom- ings in the system by which Congress currently considers the budget. It will provide the Congress with addi- tional resources it needs, both in terms of staff and information, to make inde- pendent decisions on budget policies. It will establish a realistic timetable for congressional consideration of the budget, enabling Congress to complete its work on the budget before the beginning of each new fiscal year. It will, for the first time, provide Con- gress with the mechanism for overall, comprehensive consideration of budget policies. Mr. President, I think it is appropriate to pay tribute to a staff drafting group which was of great assistance to the conferees in the resolution of the dif- ferences between the House and Senate versions and in the drafting of the con- ference report. That group consisted of Robert Bland Smith, Jr.; Herbert N. Jasper; Alvin From; W. P. Goodwin, Jr.; and J. Robert Vastine; with help from Harry Littell and Larry Monaco of the Legislative Ceunsel's Office and Allen Schick of the Library of Congress. The distinguished Senator from North Carolina (Mr. Eavni) has already ex- plained, in some detail, the anti-im- poundment provision in the conference report. I would like now to discuss the major elements of the budget reform pro- visions of the conference report to which Senator ERVIN has alluded. First, the conference report, as did the Senate bill, calls for the establishment of a Congressional Budget Office?CBO?as an agency of the Congress. In agreeing to a Congressional Budget Office, the con- ferees anticipate that the Budget Com- mittees in both Houses will have their own staff. The CEO will meet our need for a highly competent staff to guide us in fiscal policy and budgetary considera- tions. It will be a full-time, year-round, nonpartisan staff that wilt compare with the General Accounting Office and will provide Congress with the knd of infor- mation and analyses it needs to work on an equal footing with the executive branch. In my view, the creation of the CEO is an essential element of the budget process established in this bill. Second, the conference report includes a workable and realistic timetable for congressional consideration of the budg- et. The cornerstones of this reformed budget process are two budget resolu- tions. The first enacted by May 15 would, in effect, establish the congressional budget for the fiscal year beginning the next October 1. That resolution would establish appropriate overall spending levels and recommended subtargets by functional categories as well as appropri- ate levels for revenues and projected and desirable surpluses or debts. The second budget resolution must be enacted by September 15. This resolution would provide Congress with the oppor- tunity to reassess its Initial budget and priority decisions Just before the begin- ning of the new fiscal year?taking into account the most current economic data and the intervening actions of individual spending measures. If the latest revenue estimates and the Individual spending measures previously enacted differ from Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 Approved For Release 2000/08/27 ? CIA-RDF'75B00380R000600080003-9 S 11226 CONGRESSIONAL 'RECORD -- SENATE June 21: 1974 the appropriate levees established in that second budget resolution, the teseintion will also direct conmlittees of oerintlition to reconunend thelegislative 'ettloaenece essary to rer.oncile those differencen Congress then complete -its ;Lakin on the budgetby September 25 by enact- ing the reconciliation bill mandated by the second concurrent resoltitiOn. While the enactment clateis frir the two budget resolutions are the keys tit the timetable, the conference report inelteles other deadlines that are impoetant be the success of the reformed budget process. It calls for the President to subsnita new "current services" budget to Congress by the previotis NoveMber 10. It require; the President to submit his final budget 15 days after Congress oceekenne the same as in rrent law. And it cans for all spending legislation to be enacted by the 7th day after Labor Dant ,_ Third, an essential part of tile re- formed budget Process ia the oompletion of consideration of authorizateen meas- ures, which must be enacted before Con- gress can act up= aPPrOpliatiew bills. The cenference report, as did theteen- ate version, &Ua for a May 15 dteeteline for comMittee reports on authorization measures, with no enactment deadline. In addo?the conference report re- quires the President to submit his au- thorization request to Cogs a year in advance no that the at,thorization committees can get a hea1 start cal meeting their deadlines. Fourth, the conference rep ere requires that the first budget resolution manta enough detailed data to insure a mean- ingful debate on budget ard program priorities each spring. And it mandates additional laackup information necessary for that debate be included in the com- mittee report. Furehereethe -conference next* in- cludes a meltable procedure for trans- letting the flinctional breakdowns in the budget resolutions into congressional committee and appropriations selecone- inittee allocations. This procedure is nee- essary to insure effective seorekeeping during consideration of spending and revenue measures. Fifth, the conference report insures, a.s did the Senate bill, that all speriding measures be sent to the President as they are completed, though they would not become effective until October 1 or later. This insurance is necessary to prevent the President from u.ndereuttiteg the congressional budget process by vetoes, of spending bills just before the begta- fling of the fiscal year. And the confer- erne report provides, en did the Senate bill, that the scope of the reconciliation, process be broad enough to generate a comprehensive review of the congres- sional budget actions each September. Mr. President, this legisleteon repre- sents a reatiemation oe the determina- tion of mengeers_of both political parties to establish an open, informative and thorough way for Congress to hal ictle the Federal budget. Those of us who have worked with this legislation for more than a year believe it will work. , However, it will not work imiess Sena- tors?and that includes all of us?are willing to change tlaeir style of living in this body. It is going to niesea that we are going to have to keep our iaoses to the grindstone on a year-round bads to meet the dead- lines set out in the bill. It is going to re- quire that our en.tire staffs are attuned to what is happening in the budget proc- ess for many weeks in a row. Mr. President, in drafting this legisla - tion In the Coninaittees on Government Operations and Rules and Administra- tion, as well as on the Senate floor, we have attempted to develop a procedure for congressional consideration of the budget that is both discplined and flexible. * That is a difficult balance to achieve. But I am hopeful we have accomplished it. To be sure, particularly in its first years, the implementation of the process may be erratic and deadlines may be missed. But the :process in this legisla- tion is flexible enough to survive a teeing transition period. And It will not collapse as long as the Members of Congress want It to work. All told, some 36 or 40 Senators con- tributed to the development of this bill. And the best guarantee for the sums of tam process established in this bill is for the Members of Congress to exhibit the same kind a determination to imple- ment it that they did to draft it. Mr. President this legislation is too important for lIS to allow it to fail. Mr. President, in closing I wish to give a special word of personal appreciation to the distinguished Senator from Mon- tana (Mr METCALF), Senator Menceer was elected chairman of the Subcommittee on Budgeting, Man- agement, and Expenditures more than a year ago in the ,ComMittee on Govern- ment Opera,tions, lie proceeded with the work that responsibility Imposed upon him at a time when there WaS a great deal a pessimisra as to whether or not all of the complex problems this legisla- tion posed could be resolved?and re- solved in a meaningful piece of legisla- tion in this Congress. It is because of his persistence and de- termined commitment to that objective more than any other single force that we are now acting on this conference re- port and about to send a bill to the Pres- ident for his signature. I compliment the distinguished Sena- tor. Mr. ERVEN. Mr. President, I will say to the Senator from Arkansas that I promised to yield briefly to the Senator' from Montana, but first I want to say that the Senator from Maine has given an excellent analysis of the major pro- visions of the bill, and it would be impos- sible for me to overmagnify the great work he displayed in making this bill possible. Also, I would like to join in his tribute to the Senator from Montana, who con- ducted the spadework hearings that con- tributed to the bill, and he also made magnificent contributions to the bill. I yield to the Senator from Montana such time as he may use. Mr. METCALF. Mr. President, I am especially grateful to the Senator from Maine for his gracious. remarks_ I am very appreciative a them. He 'gas an the subcommittee ilay after day when it met. We heard from, every tree of goverment and from the academic conerremity. We had the most superb staff that I have ever seen working together. Ws had con- sultants from many areas. Finally, of course, let me my I feel we have come forth with a bill which, as the Senator from North Carolina (Mr. Eaten) has said, is jirobably the inost important bill to be passed in this Con- gms. As far as I am concerned, It is prob- ably the most important hill / have worked on in the more than 20 years I have been in Congress. I want to especially commend my col- league on the Budgeting and Manage- ment Subcommittee, Senator flaxbe, who was the ranking minority mgenber and worked, along with me, to get hearings Raid get quorerns, and get niscussions and work the bill out. I know Senator Saxbe's contributions to this legislation will also be remembered. I would else like to compliment the Senator from Maine for the description of how the bill is going co work, for etmi- marizing the timetables involved, Of course, I agree with tie Senator from North Carolina that the conference 130M- mittee and the staff and the committees of both Houses and all of us have done a great deal of work and have made a con- tribution. But we cannot 'sit back, We cannot say, All rig:hie Her we have Passed this legislation that is so impor- tant and so significant, and now let us relax," because, as a e Senator from Maine has suggested, some of the most important parts of thi.s legislation are the titles providing for constant input of information ta the corunittees of Con- gress and the Congresnional Office of the Budget and the separne staffs ol the committees. Under the proviskirs of he bill as reported by the conference, .we have to select a director of tee Congressional ?ince of the Budget, -eho is appointed by the Speaker of the House of Repre- sentatives anti the President pro tern- pore of the Senate on recontmendation of the Budget Committee; in both "louses. So we cannot wait until next year to establieh the Budget Committees. We need to do it right away, because the most important and significant part ef this bill is the constant flow of informa- tion, the constant preparation of infor- mation, parallel to thae provided by the ?Mee of Management and Budget. Many. and many a time the distin- guished Senator from Bemis (Mr. Peece) has painted out that this prob- ably is the most significant ?eart of the legislation, the operation of the Con- g,ressional Budget Office . This is vitae It will have a significant Impact if all ,ef us will do as the Sena- tor from Mahe has ttuggested?try to make it work, and to st,art woxking now. The leadershie has to meet arid we have to select members of the Budget Com- mittee, so that we can got a Director of the Congressional Budget Office and be- gin to put th:is into operation. Moreover, I want tc than the Sen- Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 June ator from West 'Virginia, for seeing to it that. ter this bill.was written, it went to the, Rules committee, and, I believe with great statesmanship, and with more far(ightedness as to what Would happen to the various Members of the Congress than we realized on the Government Op- erations Committee, he provided that Senators could serve onthe Budget -Com- mittee, initially, without losing their rights on other committees. Later, in the D6th Congress, they could make the im- portant decision aa, to Whether or not they want to serve en the Budget Com- mittee, WhICh' will be a major commit- tee, or whether they want to go back to the Committee on Appropriations? the Committee on Finance, the committee on Armed Services, or whatever other second class A committee they had. In any event, it is imperative that the Senate Committee on the Budget kc cre- ated immediately, so that it can make recoMMehdationS to the President pro tempore immediately, so that it can start work immediately" and we can have - a Director of the Congressional Office of the Budget working in this period, so that we will be prepared to get the nec- essary information in the next Congress. I discussed some of these matters with the Comptreller General In a hearing of the Joint gornmittee ? Cengreasional Operations on the day before yesterday, and he has already appointed Mr. Phillip "Sam" Hughes to head up his_ staff, and start his staff operations in anticipation of this legislation. But we also have to start our operations to provide them the necessary information requirement's. I think this la gmaiiir operation. This Is one of the legislative accomplishments that we will be able to leolt back upon, and I think that we will have {), great deal of pride that we participated in it. But we can only justify that pride if we continue to keep the pressure on, and get the Congressional Budget Oftlge Di- rector appointed and get this informa- tion flowing into the Congress, so we will be ready, when the President sends up his. budget message next year, and the committees will be ready, to act and report. I have the same praise for the Senator from North Carolina, an for the Senator from Illinois who has been lust as persistent as any Senator I can remember, in getting this legislation, who made the compromises that per- mitted us to get legislation to the flocir. But I want to admonish all of ray col- leagues that we have,enly begun to fight, Let us get this bill passed today and underway as a part of the machinery of the Senate tomorrow, or as soon thereafter as possible. Mr. President, now that we have ar- rived at the final stage of the Budget Control bill, perhaps the most important thing we can do is te express gratitude for the legislative process which has pro- duced it. From its beginning with the Joint Study Committee on Budget Con- trol, the bill has widergone intensive in- vestigation and jtegptiation by Members and staff in both Houses, on both sides of the aisle. Indeed, thousands of hours have been spent in testing its political feasibility and its parliamentary work- Approved For Release-2000/08/27 CIA-RDP75600380R000600080003-9 21, 1974 CONGRESSIONAL RECORD - SEINAn S 11227 ability. The basic features and require- ments of this bill are the result of some- times drastic changes, not easily arrived at, or willingly agreed to, but I believe It is the best we could have dene?given the scope of the challenge before us. That challenge?stated plainly?was to find a mechanism by which 535 Mem- bers of Congress could determine an ap- propriate budget for the Nation and con- duct their legislative business within it. Since 1921, attempts have been made by Congress to meet this challenge. All have failed for a variety of reasons, not the least of which were political. The result has been. increasing control over fiscal policy by the executive branch, not pro- vided in, nor even contemplated by, the Constitution. The mechanism created by this legis- lation is more comprehensive, more dy- namic, than anything previously con- sidered. It is framed within the tradi- tions and procedures of Congress, but at the same time it provides a new set of rules which, if followed, will work. The very nature of 'Congress is that it acts bY majority vote. It does What it wants to da based on Its responsibility to the electorate. The budget bill provides the opportunity for-Congress to act in an or- ganized and intelligent manner, to de- velop a fiscal policy and to provide budg- etary control. That is all we can do. But whatever the future of the budget procedure mechanism, there are some very far-reaching and long-needed in- stitutional reforms in this bill, and I think they should be emphasized. First, each House will have a Budget Committee which will look at expendi- tures and revenues in the light of the economy and recommend appropriate budgetary levels?first, in the spring, and then again by September. 'These committees will assert a score- keeping pressure on spending and reve- nue legislation, and will provide Congress with a continuing picture of budgetary requirements. Second, there will be established a new Congressional Budget Office with its own director, personnel, and equipment to analyze budgetary information on a year-round basis, and furnish such in- formation as well as personnel assistance on a priority basis to the budget commit- tees; to the appropriations and revenue committees, on request; and, to the ex- tent practicable, to other committees and Members. The CBO would be nonpar- tisan, and responsible for developing an informational base upon which all Mem- bers of the Congress can make their decisions. Third, the bill provides extensive au- thority to the Congressional Budget Of- fice to obtain budget and fiscal infOrMa- tion, including estimates and statistics from the various agencies and depart- ments in the executive branch, and from congressional agencies. Except for cer- tain necessary constraints as to con- fidentiality, such information and data, shall be made public. In addition, in title VIII, the bill con- tains provisions which, properly imple- mented, will vastly improve the quality of fiscal, budgetary, and program infor- mation in the executive and m,ake such, information readily available to Con- gress. Briefly stated, these are designed to establish a procedure for Congress, acting through the Comptroller General, to specify the format and content of the fiscal, budgetary, and program informa- tion it needs for the executive mandate data classification on a uniform program basis, so the Congress can more readily identify, and select more sensibly among competing program interests and priori- ties .direct the GAO?,and the Congres- sional Budget Office?to create and maintain tiles of fiscal, budgetary, and program data, for congressional use, in a form for computer processing; and direct the Comptroller General, in cooperation with the Congressional Budget Office and the appropriate ex- ecutive agencies, to develop and main- tain an up-to-date inventory and direc- tory of sources of such information in the executive branch. Mr. President, on Wednesday, in hear- ings of the Joint Committee on Con- gressional Operations on research sup- port and information services needed by Congress, I had a dialog with Comp- troller General Staats and Philip S. Hughes of his staff on GAO's plans for Implementation of these vitally im- portant provisions of the bill. I ask unanimous consent that relevant portions of the hearing transcript be included in the RECORD at the conclusion of my statement today. The ACTING PRESIDENT pro tern- pore. -Without objection, it is so ordered. (See exhibit 1.) Mr. METCALF. Mr. President, paran- thetically in developing title VIII, I had the fullest support and assistance of members of the House Appropriations Committee staff. I wish at this time to express my particular appreciation to Keith Mainland Bruce Meredith and Eu- gene Wilhelm, all of whom made valu- able contributions. As I have said many times, informa- tion is the name of the game in budget control. Expenditure levels and revenue estimates and projections must be de- veloped from hard data, most of which Is stored in the executive branch. For the legislative budget control mecha- nism to work effectively, that data must be made available to the Congress, when and as needed. Fourth, the legislation provides for a new fiscal year?beginning October 1. This will provide both the authorizing and spending committees with breathing room to complete their legislative work- loads. More important, it will give Con- gress a reasonable time in which to establish budgetary targets early in the year, and make a final judgment as to appropriate expenditures and revenues before the fiscal year begins. The July 1 fiscal year?which grew out of another era when Congresses went home early in the summer?has increasingly pro- vided a problem for appropriations and other spending measures frequently re- sulting' in continuing resolutions. Con- gressional intent as to this change in the fiscal year is underscored by the fact that both the Senate and the House com- mittees set the October 1 date early in Approved For Release 2000/08/27 : CIA-RDP751300380R000600080003-9 Approved For Release 2000/08/27 : CIA-RDP751300380R000600080003-9- S 11228 CONGRESSIONAL RECORD ?SENATE June 211 1974 the consideration of their respective bills, and it was sustained. Fifth, an InspoUndment control feature, has been added, and the impasse betwem the House adSenate on this important matter has been retrolved. Under the ha the Antidefielency Act has been tight- ened up to permit reserves solely for con- tingencies and to effect savings or efficiencies. Whenever the President seeks to im- pound by terminating programs sr cut- ting spending for fiscal policy reasons, he would be required to send Congress a message requesting the recission of budget authority. Unless both Houses complete aotical on the rescission in 15 days, he may not impound and must con- tinue to spend the money for the objec- tives established by Congress. For all other impoundments, insluding reserves under the AnticiefIcieney Act, the President must notify Congress, and if either Hoe passes an "impoundment resolution" disapproving such impound- ment, he is required to release the funds. In themselves, these five features pro- vide Congress with the tools and time Os' which Congress can educate Itself as to the effect of spending and revenue levels on the economy and on national growth. Forthe first-time In its history, Congress and its relevant committees will have their own informational base for assess- ing alternative budgetary approaches and program priorities. It will be able to look at what it has spent and what it Intends to spend as parts of a total picture, It will be able to keep score on itself. It will have Its own built-in early warning system on the economy. For the first time, it will have the' capability of making fiscal policy without having to rely primarily on Executive expertise. And it will have a check on the President when he seeks to impose MS own fiscal policy through the impoundment process. Mr. President, I am delighted with this "Congressional Budget and Impound merit Control Act of 1974" because it contains many of the features of a sub- stitute amendment which was submitted by the then junior Senator from Ohio (Mr. Saxes) and me very early on in the subcommittee consideration of S. 1541, the basic Senate bill, It was our feeling then that congressional budget reform was the No. 1 priority of the 93d. Congress, but in order to get Congress to support it, there had to be a raechanitau devised which would allow Congress suf- ficient flexibility to arrive at spending and revenue decisions within its own pro- cedural framework, rather than to un- pose rigid rules of restraint. This bill, as finally revised and im- proved, supports that policy of fie sibili ty. I urge adoption of the conference report. I thank the Senator ;for yielding. EXHIBIT 1.---EXCERFTS OF TESTIMONY B r Cow r- TROLLY:1r GENERAL ELMER B. STAATS Mr. STAATS. SeCt10/1 202 of the Legislati ve Reorganization Act of 1970 provided for E6 standard classification of budgetary and fis- cal data. Responsibility Or develop went of that classification was assigned to OMB and Treasury in eoperation with the GAO. H.R. 71$0, as agreed to by the conference committee, would amend Title II of the Leg- islative Reorganization Act of 1970 to place primary responsibility for the development of standard data classificatiOns and congres- sional reporting requirements with the Comptroller General. have testified on many occasions and we have worked closely with the many parties Involved in the development of H.R. 7130. We firmly support the objectives of this leg- islation. We recognize the congressional needs for and the problems involved in de- veloping data classifications that will meet these needs. We will devote the resources required to effectively carry out that respon- sibility. To carry out our responsibilities under sections 201, 202, and 203 as they exist now, we have a full-time 24 person staff. This group has developed and maintains an in- formal but close working relationships with various congressional committees' staffs, es- pecially the appropriations committees. The groups major activities are aimed at Improving the accessibility and usefulness of data currently reported to the Congress or available in the executive agencies. For example, they have been conducting a pilot study with the Subcommittee on HUD, Space, Science, and Veterans of the House Committee on Appropriations to identify its needs for budgetary and program informa- tion about the Department of Housing and Urban Development (HUD) and to specify the classifications to be used in reporting to the Subcommittee. We referred to this effort in a May 1973 report to this Committee. We are pleased to report that we have now developed proposed classifications for each of the 49 Anil ap- propriations accounts and have presented them to the Subcommittee staff. More recently, we have directed our atten- tion to 14 Department of Agriculture ac- counts in a similar effort. With the increase in staff and the experience gained in the HUD pilot study we will be moving into other areas in the near future. We are confident that we have developed the capability and etsablished the working relationship with the Congressional commit- tees and the executive agencies which will enable us to tarry out the reporting re- quirements and classifications work that would be assigned to us under H.R. 7130. Since our prior report to the Joint Com- mittee, the Office or Management and Budget and Treasury have created a team to de- velop a plan for addressing the Congres- sional informatio1 needs identified by the survey of committees and members we con- ducted in 1971 and reported in February and November 1972. We are continuing to serve as the agent of Congress in orking with the Office of Management and Budget and Department of the Treasury team on a day-to-day basis. Their team issued 1t3 plan on March 7, 1974. This plan covers a wide range of the in- formation needs of the Congress Of par- ticular interest at this time when H.R. 7130 Is in focus are the categories which demi with Federal budget and supporting information, budget and fiscal status information, pro- gram oriented infcrraation and tax expendi- ure information. The plan also includes cate- gories of information on fiscal policy, foreign currency, Federal employment, grant pro- grams and social and economic conditions. Several task groups have been created to amass the executive branch capabilities to meet these needs. We are participating in this work, especially in the further identifica- tion of congressional information require- ments. The OMB and Treasury March 7th plan does not propose to address needs which deal with social and economic information on the grounds that these types of data are not within the scope of budget and fiscal data Included in Title II. We do not agree with their position. However, enactment of Title vin a H.R. 7130 will settle that issue?the Congressional requirement is made clear that program-related data anct information, such as ;social and esonornic data, aro within the scope of this title. In addition to efforts directed. at improv- ing the classification sail reporting to the Congress, we believe it essential that Con- gress be given assistance in obtaining the in- formation it neede. The CUB/Treasury team recognizes this problem. /a thee* plan they stale that "it is apparena that many of the information problems are due to difficulies in identifying information sources and in ob- taining and aggregating lieparate date., and are not due to a lack of data." An inventory and directory services ror the Congress to permit it to obtain data from executive branch sources is needed. We are exploring ways swill a service could be esta'olished. H.R. 7130 would amend section 203 to require) such assistance from us. We wee that; it is needed and feasible to develop. The Chairman of the House Cemrnitiee on Appropriations has requeE ted us sio help them develop procedures for asquiring and using 3- to 5-year peojections of Federal outlays and receipts, especially or the major pro- grams that are not subjec to annual congres- sional funding. In addition. the GAO Baff is identifying the resources available in the executive branch for pros iding sue,h forecast or data from which fore as can be made. We are also ccoperating with the Congres- sional Research Service in its work on budget analysis and estimating procedures. * * ;3enator METNIALF. I Ihave said on several occasions the most exc ting and thrilling thing about the Budget .lontrol Act?which I hope will be finally approved by the Con- gress this afternoon?is that, among other areas pertaining to our information :aeeds, it provides an opportunity for gathering and assembling information on the tudget ist the same time as the OMB. As you know, some of nn Senate colleagues felt that you could not, c r would not, do the Job. Those of 'us who supported Title VIII, however, felt that GAO wise the best agency for this. I expect to go to the floor at o'clock this afternoon and speak on the conference re- port. Can you assure me now, so that I can asure members of the fienate that we will see progress in your capacity in making this new budget process, and this new informa- tion process. work? Mr. STAATS. I can give you that assur- ance, and we ate already wen under way with efforts which will fit in vvith the responsibil- ities that we will have under Title VIII. However, we will need E.ome additional re- so eices. Senator METCALF. You need some more manpower, and so forth. to do the job. Mr. STAATS. We are c 1:rental examining our own internal allocations of our staff, with this in mind, but I i hink I can give you the assurance you are seeking here that we will not only be able to do it, but we think we can do it ii a very setisfactory way. Senator METCALF, With the cooperation of the Congress? MT. STAATS. Yes. Senator METCALF. Mr. Heghett may want to add something here. Mr. HUGHES. I am certainly, not surpiris- ingly, supporting the Comptroller General in his statement. We are working very closely with the OMB and the Treasury, particularly OMB, to carry out the provisions of the pres- ent law and the anticipatt d provisions of H.R. 7130. The job is not going to be eaey. We feel? and I think OlVIB and T easury agree--that our efforts should be to develop complex of syetems that will me( t both Executive Branch and Congressional needs rather than duplicating systems. That is not an easy job, as you can imagine, because of inevitable problems on both sides, Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 June ppf9yd For kelewduORMDRACIMRE751MNR000600080003-9 S 11229 but in recent menthe the eoperation be- tween all parties has been very good, and we are hopeful we 911n de what needs to be done o'aQata,or for the most part at leaston a o ,,,ed heats, ? :We have en taking a somewhat more agrive stance with the Executive Branch In this recently, because we think it is neces- tory, and also it helps to move the work along. , Our work with the subcominittees on ap- propriations with respect to classifications has been of great help in convincing the ex- ecutive agencies that it is important they Involve then4lVes In this kind of an effort. There are acme, dIfficik4 problems, for ex- ample, arising out of executive branch re- scrottelbilltty for the President's budget, vis a via congressional responsibilities and con- Fem... tonal needs for data. We need to work Witn the gxectrtive agencies in a `fashion Whieh _is_ consistent, with the Budget and Accounting Act and presidential and OMB responsibilities under that Act, but at the same time , gets the ' Congress the informa- tion.that it needs for budget and program analysts. My personal feeling, and / think the feeling of those Who are working on these problems in GAO, is that we are moving well, and ratIch better thae. We Slid for a Period of time, and. frankly, I think the discussions aroluld RA. 7140 and* progress through the Congress have 'been very important in this. those were , M5013.161= at a staff level. Mr. Tacheron and others participated in them, and organized them. I think they were veil helpful. Senator 14,1srcar.s. We had a magnificent Staff effort, of course, and a magnificent effort on the, part of consultanti and advisers who came in here and offered their expertise to help us work out a very_complex and dif- ficult problem. But ,you have all read the news reports and the COngresSional Record this morning of the discussion of the Con- ference Report onthe floor of the Rouse by Members of Congress, where longtime Mem- bers say it will not work.? I am taking_ this opportunity to, get your assurance that some- thing that I think is the most exciting part of the new, budget bill?this infermation standardization and gathering process?as set forth in Title VIII can and will work. Mr. Swam's, I would like to say to you, Mr. ? Chairman, We Supported Title VII and Title VIII in our discussions with the Valise and with the Conferees. We do think that Title VII and VIII,ar,e both very important pieces of this total legislation. I would like to EU:lone other, thing which We have emphasized- at the times we have made formai testimony on this budget legis- lation before the different committees of the Congress. There will he problems in the first year or the second year. Things will have to be worked out, but the important thing is to give the new organization time to work out those problems. Referring back to my own background in the Boxiget Bureau, where We attempted many years ago to develop overall targets for the Presidential budget along the same con- , ceptual line as this legislation, we had great difficulty, the first two or, three years and we bad to work out those problems. The agen- cies did not understand what we were trying to do. I hope that the Congress does not get discouraged if this does not work smoothly ? the first time aronnd. heeithse I am sure 'there will be problems, just as there were in the executive branch. ?.?? ? zenexer-42gzcau. lam sire there Will be, too. I was pleased that Mr. Hughes assured us that there has been cooperation from the Treasury Department and from the OMB, in trying to work out the initial stages of this, because?even though I like the statement that GAO will take an aggressive attitude-. thereare executive and administrative prob- lems -that are going to be unsurmountahle, if there is not mutual understanding and co- operation. I am glad you have that coopera- tion. Mr. Brimuzs. Cooperation has been good, Mr. Chairman, particularly recently. As you say the problem has to be solved. The data must come out of the executive agencies. They have it by and large. That is why it must originate there, and we must resolve those problems. Senator Msromx. We would like to have it a little earlier, that is all. We would like to have It as part of the preparation of the budget. instead of having it thrown at us on the 21st of January. Mr. auenus. I think that is a reasonable goal, and we should be able to achieve it. The one comment, repeating myself a lit- tle bit with respect to the dialogue that I had with Mr. Cleveland, is that these are complicated problems, and by and large, they are human problems, problems of human in- terrelationships, not solvable by machines. Machines may help, but there remain fundamental difficulties. We had some rather candid dialogue with the Executive Branch people and I think one of them stated the ultimate problem rather well. Be said there may come a point when they would rather take the heat of not providing the informa- tion than take the heat involved in providing It, Those dilemmas need somehow to be faced up to. Senator METCALF. That is inevitable, I think. Mr. Huenza. Ths.t Is the kind of issue we are struggling with. The computers will not help on these human problems. Senator Marom.r. Sometimes you may find that the Congress will pull the rug out from under you, by deciding that some kinds of information you seek should not be provided. But most of the time, I hope, we will be able to give you cooperation in your search for information to make this new congressional budget process work. Mr. &mars. The important thing here Is that the legislation does provide the charter, and it also provides the mechanism for a continuing dialogue on this with the execu- tive branch. This is very important, because without that, we are not really going to make progress. It may be slow in some areas, but even so, I think the tact that there is a charter and the mechanism now for -this dia- logue to take place will be a great step for- ward, Senator METCALF. I think this will be help- ful, and I am going to ask the staff to ex- tract this, and I will put It in the Congres- sional Record as a part of the discussion so that we will make some legislative history. Mr. STAATS. very good. (This terminated the excerpt.) Mr. ERVIN. Mr. President, I yield now to the Senator from Arkansas. Mr. McCLELLAN. Mr. President, I de- sire to have the distinguished chairman of the Government Operations Com- mittee clarify some of the intent of that committee, and of the conferees, in draft- ing the language of title X of the Con- gressional Budget and Impoundment Control Act of 1974, S. 1541. Title X of S. 1541 must be correctly understood and interpreted at the outset by members of the executive branch if that statute is to be fully effective. Therefore, I would like the chairman of the Senate Committee to explain some portions of title X of that legislation so as to more fully explain the interrela- tionships of its provisions, to demon- strate how these various subsections are Intended to operate harmoniously so as to remove any possible ambiguity or con- nide between these provisions. In shorts I believe that the answers to the following questions will be helpful to Members in considering this legislation correctly and in properly reconciling the Intended overall operation of its various sections. Can the President propose the deferral of multiyear funds beyond the end of any fiscal year? Mr. ERVIN. No, he can propose de- ferral only to the end of the fiscal year irf which he proposes the deferral. If the Congress does not disapprove the pro- posed deferral, he must then make all the funds available for obligation in the next fiscal year?unless he proposes de- ferral of part of the remaining funds in a new message in that fiscal year. For example, the President could, un- der section 1013, propose to defer all or part of a 3-year appropriation for pro- curement for the first fiscal year of its availability. At the end of that fiscal year, he would be required to make the budget authority available for obligation or submit another proposal covering the second year. This can go' on until the last year of availability. At that time, if the President proposed further deferral, sec- tion 1012 would apply?since deferral to the end of that year would result in the termination of the procurement pro- gram. This would require a rescission bill. Of course, should such a deferral have, at any time, the effect of termi- nating all or part of a program?even during the first fiscal year?the Presi- dent would be required to comply with section 1012. Mr. McCLELLAN. Can the President, under section 1013 of the bill, propose to "defer" any 1-year budget authority for the entire fiscal year for which that budget authority is provided? Mr. ERVIN. No, that would be a pro- posed reservation of the budget authority under section 1012. Thus, the exception In section 1013(c) would deny the Presi- dent the authority to propose a "de- ferral" for the entire fiscal year. The President would be obliged to proceed under section 1012 if his intent was to defer the obligation of 1-year budget au- thority for the entire fiscal year. Mr. MoCLELLAN. Then, insofar as 1- year money is concerned, section 1013 merely provides a procedure under which the President can propose the deferral of expenditures to a later point in the fiscal year involved but, in no event, can such proposed deferral extend to the end of that year? Mr. ERVIN. Yes, that is correct. Mr. McCLELLAN. Does this mean that where the apportionment process is used so as to cause a deferral of expenditures to a later quarter?other than those ap- portionments which merely allocate ex- penditures on a basis so as to avoid de- ficiency spending?all such apportion- ments will in the future be required to be reported to the Congress? Mr. ERVIN. Yes, that was our intent in drafting these sections and we under- stand that the Appropriations Commit- tee needs to have these reports so as to assure that the apportionment process is not being used for a purpose unintended by the conferees. Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 Approved For Release 2000/08/27 : CIA-RDP751300380R0006000.80003-9. S 11230 CONGRESSIONAL RECORD SENATE dune 21, 1974 Mr. Meet-MILAN What havens if a deferral" a budget authority is pro- posed for single-year funds so that the effect of the deferral would be. to with- hold or delay funds until a point in the ftscal year such that the programs or Projects to which those funds would be applied are effectively stemied or changed? Mr. ERVIN. The situation you describe cannot occur since such action would not be a bona fide proposed "deferral" but in fact a proposed reservation ,vhich must be reported under sectior. 1012. The language of section 1012 "to be reserved from obligation for ,such Iliad year" would apply to that kind of action and thereby require the President to proceed under section 1011 Mr. McCLELLAN. I take it then that the phrase "is to be reserved from obli- gation for such fiscal yew'," az used in section 1012, Is not restricted to a situa- tion when eserve," as specifically au- thorized by lave, is proposed to be (estab- lished? Mr. ERVIN. That is correct. The phrase is not restricted to any propose1 establishment of "'reserves" but covers all procedures or actions whish propose or would result in withholdino of obliga- tion of budget authority for the entire fiscal year. Mr. McCLEILLAN. 'The conference re- port defines 'deferral of budget author- ity" to include the "withholding or de- laying" the obligation of budget author- ity or any other action which precludes the obligation of budget a,uthority. Could the definition be interpreted to include withholding Or ether action which per- manently Prevents the obligation of budget authority? If so, the President might then proceed under section 1013 rather than _oection 1012, if he wishes. Is that the intention of the conferees or of the language of this legislation? Mr. ERVIN. Definitely not. Any action or proposal which results in a pennanent withholding of budget authority must be proposed under section 1012. Section 1013(c) specifically provides that section 1013 does not apply to cases to which section 1012 applies. Only temporary withholding May be propo.seei under sec- tion 1013?and any such deferrals must be proposed under this section only. The conferees have included. both "withholding" and "delaying" in the defi- nition of "deferral of budget authority"' In order to insure that all actions which have the effect of preventing the oblige- tion of budget authority for any length of time shall be subject to the terms of the impoundment control title. Such ac- tions which result in a temporary delay in obligation are included in section 1013; thoge which result in the termina- tion of a program or the reservation a 1-year funds to the end of tie fiscal year In Which they are available are included In section 1012 and precluded from fte- tion under section 1013. Mr. ERVIN. Mr. Presidert, the ques- tions the Senator has asked call for answers; land the questions and enswe,rs together, I think, clarify completely the essential questions that might arise tin- der the impoundment and deferral pro- visions of the bill. The Senator has rendered a great service to the Senate in propounding these questions and in giving me an opportunity to answer them. Mr. McCLELLAN. Mr. President, will the Senator yield now for one or two other quesitons that are not covered in the prepared statements? Am I correct in understanding that section 1012 means that the President may send to Congress a message request- ing a rescission of certain appropria- tions, either in part or in full, of what- ever Congress may have appropriated for any particular item of function of Government? Mr. NEVIN. That is the purpose of the section. It Is to provide an orderly method by which differences of opinion may be reconciled between the Presi- dent and Congress in respect to the amounts of appropriations sought. It is a sound and sensible method, without going to a confrontation. Mr. McCLELLAN. But that message has no legal effect. What it amounts to, does it not, is simply the President's rec- ommendation to Congress to enact a bill to rescind those items of appropriations that he desires to have rescinded? Mr. ERVIN. The Senator is absolutely correct. The recorrmiendation of the President that an appropriation be eliminated or reduced in and of itself would have no legal effect whatsoever. In other words, for it to become effective, both Houses of Congress, by a majority vote, would have to take action ? either eliminating the appropriation or reduc- ing the appropriation. Mr. McCLELLAN. In other words, the message has no effect until and unless, within the prescribed period of time- 45 days?Congress has completed action on a rescission bill rescinding all or a part of the amennit proposed to be re- scinded, or is that to be reserved? Mr. ERVIN. The Senator is correct. Mr. McCLELLAN. What would be the effect if, by the end of the 45 days, Con- gress had not completed action on the bill, but within a few days thereafter it did complete action? It would be legis- lation, the President could sign the bill, and the rescission would then become law. Mr. ERVIN. Oh yes, I think so, be- cause under the legislative authority given to the Congress by article I of the Constitution ar,d also by the necessary- and-proper clause, even though Con- gress does not act in the 45 days it could act thereafter. Mr. McCLELLAN. It could. There is nothing to keep Congress from acting upon it. Mr. ERVIN, No. Mr. McCLELLAN. That does not pre- vent or preclude Congress from rescind- ing thereafter. Mr. ERVIN. I might say that the 45- day provision is placed in the bill for the purpose of spurring speedy congres- sional action, but with recognition of the fact that Congress cannot deprive itself of any other power it has under the Conetitution. Mr. McCLELLAN. That is right. In a rescission message, rescission requires the enactment of a bill, whereas a defer- eral does not require the enactment a a bill. I turn now to section 1013. As I inter- pret it, this section provides that the President can send a message requesting a deferral, but the deferral snail be made available for obligation if either House of Congress passes an impoundment resolution disapproving each proposed deferral. Mr. ERVIN. Yes. Mr. McCLELLAN It takes only one House to act on a deferral, whereas a rescission takes a bill, an action of both Houses. Mr. ERVIN. That is right. In other words, section 1013 applies to w eat might be called the multiyear appropriation. It would authorize the Resident to defer any particular year's app ropriation to the end of that year. But either House of Congress could veto his deferral, and in that case it would become necessary for him to carry out the project as author- ized and funded by COnireSS. Mr. McCLELLAN. This language can- not be corrected if it :needs to be. I am not sure whether additienal language is needed in section 1013 in order to avoid a possible ambiguity regarding the limi- tation of the applicability of that section to multiyear appropriations. However, the needed clarifying language :may already be implicit h the present text of section 1013(a) which red: Whenever the Presiderr:, the Director of the Office of Management and Budget, the head of any department or agency of the United States, cr any ?Mar or employe of the United States proposes to defer any budget authority providec.... It seems to me that this language would be necessary to read: "Provided," and I then necessarily read this to mean that it applies to "appropriation acts with availability of 2 or more years." Is the omission of the above nine words inadvertent, or does -nee Senator think these words are not needed since they are necessarily implied in the conferees Intent as to the operation of Bastion 1013? Mr. ERVIN. It is inineed. Section 1013 Is intended to apply to multiyear appro- priations because Congress in effect ex- presses its intent that Iiingle-year funds be obligated during the year of their availability by making them 3ing1e-year funds in the first place, The conferees intend that every execu- tive action or inaction whit h has the effect of preventing the obligation of budget authority for any length of; time be reported to Congress by special .mes- sage, either under section 1012 or 1013. Mr. McCLELLAN. U the Senator had the bill back on the drafting board, I think maybe that language E hould have been inserted. Mr. ERVIN. It might; have been better to put it in, tut I think it is implied. Mr. McCLELLAN. it probably is. It just occurred to me, though that while that language is necessarily implied, it is better to make this intent explicit now so that there will be no future misunder- standing of the inter.ded operation of these sections. I therefore thank the Senator. I did want this observaton in con- cluding my remarks, Mr. President. At Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 June' N:::pir9y4ed For Reletvagefa7AykINE75t3MR000600080003-9 the time the bill was before the Senate, I think on the day of final passage, I made some remarks, and I reiterate those re- marks today by reference. They appear at page 4314 of the CONGRESSIONAL REC- ORD of March 22, 1974. I May say that I today express the sante concern regarding this bill? whether it is going to be workable or not?and I also express the same hopes for the ultimate good that will come out of the very strenuous and dedicated ef- forts that have been made by those who have worked_ on the bill in an effort to find a solution to a tremendous problem that confronts us in budgetary matters arid in trying to handle the fiscal policies of the Nation. I have sometimes said?and I think with some Justification and with factual Information to sustain it?that the Gov- ernment today has simply become so 1?ig, Its financial obligations arc so great and so varied, that it is almost impossible to manage it efficiently under the democrat- ic processes. In view of that, it is compelling upon us to search for, to grope for, to experi- ment with, and to make every effort within our capacity and ingenuity to find a way to master this terriffc prob- lem; and if we do not, I fear we are in for even greater trouble than the strain we now feel. thank the distinguished Senator for yielding to me. / compliment those who have worked so hard on this measure, and I still express the hope and the as- piration that good will come from it, and that this is a step, a definite measure of progress in this field, and in the proper direction. , Mr. ERVIN. The Senator from Arkan- sas, whose mother came from North -Carolina, has always been one of the -strongest advocates in Congress efflscal responsibility on the part of the Federal Government and, of course, fiscal re- sponsibility on the part of the Federal Government requires fiscal responsibil- ity on the part of Congress. While we do not know how this bin will operate, we do know that it will op- erate successfully only if an effort is made by the Senate to make, it operate successfully; and I think that this bill Is the best proposal that has thus far been made to make effective what the Senator from Arkansas and the Senator from North Carolina have been fighting for for the last 20 years, and that is financial responsibility on the part of Congress as well as on the part of the executive. Mr. MoCIJELLAN. I thank the distin- guished Senator for yielding to me. Mr. PROXMIRE. Mr. President, will the Senator yield? Mr. ERVIN, I had promised to yield first to tile distinguished Senator from Illinois (Mr. PERCY), who is one of the Senators who have done yeomen work In bringing this proposal to its present State. Mr, PERCY. Mr. President, I thank my distinguished colleague. I know the dis- tinguished Senator from Wisconsin is anxious to clear up some points that may be amlaiguotts. So, before I begin my own comments, in the interest of the time of the Senator from Wisconsin, I am happy to yield to him for the purpose of clari- fying any questions he may have. Mr. PROXMIRE. Mr. President, I thank the Senator from Illinois. That is most helpful. I shall not take more than _a couple of minutes, but I would like some clarification of the intent of the commit- tee of conference with respect to those agencies which are now excluded from the President's budget under provisions of law. There are six such agencies, of which the largest in terms of outlays is the Export-Import Bank. The Senate voted to repeal those exemptions, that Is, to put those agencies back under the budget. The conference committee did not adopt the Senate position but rather provided that the budget committees would study these exemptions on a con- tinuing basis and report to their respec- tive Houses any recommendations for changes. In the Senate Banking Committee the other day, we had considerable debate as to whether or not we should put the Ex- port-Import Bank back in the budget. I had an amendment to do that. We had a close vote on it, and my amend- ment lost. The only argument, really, that was made against my amendment was that the conference had agreed that there would be a study made, and that under those circumstances, the author- izing committees would act improperly and in contradiction of what the confer- ence intended. So I would like to ask the distinguished Senator from Illinois and the distin- guished Senator from North Carolina, first, did the conference committee in- tend by this to preclude any action by the relevant authorising committees to put exempt agencies like the Export-Im- port Bank back in the budget? Mr. PERCY. In answer to the question of the Senator from Wisconsin, abso- lutely not. There was no intention to preclude any attempt to put exempt agencies like the Export-Import Bank back in the budget by the relevant au- thorizing committees, in this instance the banking committees. Mr. PROXMIRE. In the second place, was it the intention of the conference committee to assign to the budget com- mittees definitive responsibility for the resolution of this issue? Mr. PERCY. Absolutely not. In none of the discussions we have had or in none of the language of the report or the language of the law as I read it, did we attempt in any way to assign to the budget committees exclusive responsi- bility for decisions on this issue. The budget committees are merely asked to keep the issue under study. They cannot report legislation to change the law, nor was it ever our intention that they do so. Mr. PROXMIRE. There is a question of timing here that is of considerable significance, and I think is really the heart of the objection to our acting on the Export-Import Bank now. The argu- ment was made that since a study had been authorized, and the study would recommend a change, the Banking and Currency Committee should await the study by the budget committees before taking any action; that that might not S 11231 be until some time next year or the year after, but whatever time it was, the budget committees should be given the courtesy' of an opportunity to make such a study and make recommendations one way or the other. Is it the view of the Senator from Illinois that the authoriz- ing committee, in this case the Banking Committee, should wait on the study by the budget committees before it acts? Mr. PERCY. I would think?and this is a personal view?that if there is a reasonable expectation that the budget committees will get these studies under way, in this case the budget committee of the Senate, recognizing the fact that this is a controversial matter in which there are arguments on both sides by very responsible Members of this body, and if there is a reasonable expectation that those studies can be completed in time, then it would be well for the au- thorizing committees, perhaps, to wait. However, if It does not appear as though, after a reasonable period of time, such study can be quickly accom- plished, then I would say the authorizing committees should go right ahead and make their own decisions, based on their own expertise, because after all, they have been involved in these matters for a longtime. The Senator from Illinois is really quite sympathetic with the argument that the Export-Import Bank should be included in the President's budget. But the Senator from Illinois determined that we really did not have enough facts, as of this time. There was a presumption on my part that It would be a good idea, but there was strenuous objection from respected sources, and for that reason the committee of conference decided that a study would be desirable before deci- sions were made. - Mr. PROXMIRE. That answer gives me some trouble, because my notion was that we could act within the next couple of weeks when the Export-Import Bank bill comes before the Senate. It is sched- uled to do that?the time might be ex- tended, but sometime in the next month or so, and I had hoped that at that time we could put an amendment in to have It covered in the budget. It seems to me that the presumption should be, on the part of those who would exclude anything from the budget, that it should stay out. I would hope we would not have to wait until the budget committees could be organized and staffed, and spend some time making a study. It might be a year before we could get a conclusion under those circum- stances. I would hope the Senator would indicate, at least, that the Senate could act without doing any serious violence to the intention of the conferees. Mr. PERCY. I should not think any authorizing committees would feel that they are duty bound to wait until these studies have been completed. The work ?of the Senate must go on. It is the understanding of the Senator from Illinois, however, that there are ob- jections other than the fact that studies are being made. There is deep concern on the 15art of some Members of the Sen- ate that proper lending activities might be curtailed as a result of the Export- Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 Approved For Release 2000/08/27 : CIA-RDP75B00380R0006000,80003-9. S 11232 CONGRESSIONAL RECORD SENATE 4111W 21, 197.4 Import Bank being placed in the Presi- dent's budget process. But I should tiaink the authorizing conunittees should mako their own decigions in this respect, taking into acceunt that a very high pziorikr would be placed by the budget commit- tees, and certainly, if the Senator from Illinois Would have anything 'to say about it?I believe I would do so on behalf of the distingi 'gibed Senator from North Carolina. I know that this is a highly controversial matter of great Minor- tance and I would liege we use caw influ- ence to Serge the Budget Comnaittes te undertake the studies at the earliest pos- sible moment. Mr. PRO/OW:RE It was in the budget until 19'71. No arguments were made that n inhibited Proper lending acjenitlen. The Chainnan of the Federal Reserve Board, the Comptroller Omen], and others recommended that It be put in the budget. I simply ask a couple of other quee tions briefly. Is it in font the case thet the congressional coneareeet resolutions provided for in this act could taclude outlays for the %Merles now exempt from the Federal budget--In other words, it would be Proper? I do not say mandatory but it would be proper for the resolutions on the budget to include the Export-Import Bank. My point is, If this is done and the inedget that comes from. the President doer net include the Ex- port-Import Sant then we, would have a discrepancy and it 'Would &Omar that Congress was asking for a bigger budget than the executive. That would not be fair or accurate. It would be untrue. The only way we Could prevent that is by put- tine the Export-Import Bank into the budget. Mr. PERCY,. I think that would be a very imfortunate occurrence if the eon- gressional budget would appear to be larger than the President's budget as a result ef these exeltrions. We should have a mutual agreement between the executive and oongressional brancbes as to what Is to be ineluded. Mr. PR,OXMIRE. I thank the Senator. Would the Senator from North Caro- lina Indicate whether he would agree with the statements just made by the distinguished Senator from Illinois (Mr, PRC), for the record? Mr. ERVIN. I would like to say tat the agencies which are exempted from the President's budget number en; namely, the Export-Import Bank, the Rural Electrification Telephone Eleven- ing Fund; the Rural Telephone Bank; the Federal Financing Batik; the En- vironmental Financing Authority; and the II.S. Railway Assoc lotion. My personal conviction ti that every item of expenditure which in going to be made by the Federal Gavernment should be dealt with in the President's bidet as well as in the congressional budget. Frankly, the provision in this stud:, STEIS a compromise between two contending groups, one felt, they should be exempted and the other felt they should not be exempted on these particultir items, The Senator from North Caroliria would like to see them all included in the budget of the President. I think that they should be there. I think that the Senator from Wiscon- sin would be Nile within his rights as a Member of the Senate to propose that at any time in a bill or an amendment to a relevant WI, to put the Export-Import Bank in. It would be entirely 'within the rights of the Senator from Wisconsin. Frankly, I would tell the Senator, I would vote for such a provision. Mr. PROXMIRE. I thank the Senator from North Carolina very much. That is a great help. Mr. ERVIN. The analysis of the Sen- ator from Illinois?his views and mine so far as the matter of powers is con- cerned?Is entirelyIn accord. We made this agreement as to what it should be In this particular instance, but so far as the authority of the Senator from Wisconsin to take such action with re- spect to the Expoet-Import Bank is con- oerrted, we agree that he has it. Mr. PROXMIRE. I thank the Senator very much. I would conclude by saying that I agree with what has been said this morning about the very* great importance a this legislation. It has been said that this Is the most important bill that will be han- dled by the Seniete in this session. Others say it is the 'mint important bill we have had in a very long time. I should like to point out that I have been making a seiles of speeches on what is right with the Federal Government. Many people think there are many things wrong with Congress?and, indeed, there are. No one will deny that our actions seem weak sometime. But in taking this action today, when the House has already passed this conference report and the Senate passed the earlier version by a re- sounding vote, the Senate is improving signifIcant S.Ild substantial ways. which should give the American people some encouragement and hope that we are progressing in provtiing better gov- ernment. With all kinds of problems and weaknesses and difficulties still, this will be a better Congress, a better operating Congress, and a more fiscally responsible Congress. It wilt mean that Congress hae determined its eriorities, and that it will have more clout in the future because cif the action that the conference has taken and I hope tine the Senate is about to take today. Mr. PERCY. Mr. President, I thank the distinguished Senator from Wiscon- sin for his comments. He serves as the chairman of the Subcommittee on Econ- omy in Government on the Joint Eco- nomic Committee. It is a great pleasure for me to serve as the ranking Republican on that commit ten, The Senator from Illinois, when he first came to the Senate, set as one of his objectives that every single day in the year he would try to find a way to reduce Federal expenditures by the amount of his annual salary. The record will show that we have exceeded that amount many times over. I would hope that that objective could be shared with many other colleagues. It certainly has been in the case of the distinguished Senator from Wisconsin who, ever since he came to Congress, has tried to make our dol- lars go farther, and has tried to work them harder. This is the whole purpose, really, of budget reform.. The passage of this conference report is rightly hailed as an historic moment for Congress. I do not know what the vete today will be- We will have a rollcan vote on it but I do feel that it will probably be ananimouse The vote of the House the other day was 401 to 6 which, considering the diverse views and ideologies of Howie Members, is vir- tually unanintaus. The Senate, voted unanimously to pass S 1541 80 te 0, even, after it had been broaecast that we could not possibly pan such a bill be- cause of the conflicting views of our Members, because of the way it would in- vade the partkaaar turf er territories of a particular Senator or 2 particular 'corn- mittee. This testimony to the fact that when we set our studs to do something, we really can accemplish something that is in the nationel interiest and that cer- tainly will serve the irtereste a every taxpayer and citizen in this country. It Is probably the achievement 3f reform. urged on us for many &lades, and which represents thousands in: hours of dedi- cated work by Members of Congress and their staffs for all the cansideratiou of the questions of comnettee eirisdictIon entailed, and or all tho compleadtien of the issues which were :revolved, the bill was passed in an extritorclinarlle short period of time. For such 's. bill te be passed within a single Congren is a tribute to the dedication. to which Senators and Representatives have approinhed this very difficult task. It also demonstaates that the Amer- ican people demand better performance by Congress. The makeup a the Govern- ment Operations Corruniteee tin the Re- Publican minority side .,s dive rse, dieerse in territorial distribution, diverse in the constituencies they reeresent, and di- verse in their various peliticed philosoph- ies. But certainly the distingeished Sen- ator from New York 'Mr. Jams} has rendered valuable service. Dem down in his heart he knows, ane has known from the outset of this dobete. that the best way to keep a sound got ernment, a sound country, a soand people, is *with sound risco,' procedures. He hes eonteibuted im- mensely, as has the nstinguished Sen- pear from Florida (Mr. Cimusee) who has worked so tirelessly wit ii us in this effort, as has the distinguideed Senator from Delaware (Me. ROTH) end the distin- guiehed Senator from Tennessee (Mr. Bronx) both se whorr eerved not only in the conference but presented many Ideas, amendments, are suggestione, and who participated with particularly, good effect in the menthe of dei ate on the bill in the sutcommitte e and in the com- mittee. To them I art deeply grateful Indeed. Mr. Presidinit, I est uns,rimou.s con- sen t that Al fl uckberg nci Thome White of the Joint Committee on Internal Rev- erme and Tas:etion be even i he privilege of the floor during this diecussion. The PRESIDING OFFICER (Mr. CLARK). Without objestion, it is eo or- dered. Mr. TUNNEY. Mr, ?resident, the Senator from Minois y icicle Mr. PERCY. I yield. Mr. TUNNEY. I at ould like to con- Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 ? June 21fo:naved For Relempa0/08/274,? CIA-RDP75B00380R000600080003-9 SIONAL RECORD ? SENATE S 11233 gratiliate the committee on the very fine work it has done. As one Senator who Introduced a bin on the Same subject over a year 0,0;1 think that the commit- tee is to be commended for the hard work it has done in making it possible to achieve' the results that we are _going to have today when this bill passes?preb- ably unanimously?the Senate. I do not think there is any WAY in which we can deterfaine Our social Pri- orities more clearly than through the mechanism of the ,Federal budget. For Congress not to have- the Minty to estab- lish, at the very beginning of each ses- sion, a ceiling, and then to relate each appropriation bill to that overall ceiling, does not make any sense at all. I believe that this represents one of the major systemic reforms that have been desperately needed for a long time. The fact that the committee Waa able to take so many divergent views and fashion them into a package, a whole, demon- strates that our system can work, and it will work much more effectively in the future. I thank my distinguished colleague for yielding. Mr. PERCY. Mr. President, I thank my distinguished colleague not only for his comments, but also for his very active cooperation. I also point out that another distin- guished Senator from California, Sen- ator CRANSTON, joined the Senator from Illinois and the Senator from Virginia (Mr. HARRY F. BYRD, JR.) in introducing S. 846, at the beginning of this Congress. This was one of the bills on which the Senate budget reform bIlls, S. 1541, was based, because it embodied many of the concepts that we believed In deeply at the time. We were almost pioneering at that time. I am deeply grateful for the assistance and encouragement offered to me by the distinguished Senator from California (Mr. Caittrsrox). Mr, CRADATON. Mr. President, will the Senator yield? Mr. PERCY. I yield . Mr. CRANSTON. 1 am grateful for the generous remarks of the Senator from Illinois (Mr. PERCY) and for the oppor- tunity to join with him and the Senator from Virginia (Mr. HARRY F. BYRD, Jr.) to do some of the pioneering work on this legislation. I believe that this Is probably the most important bill that has been passed or considered by Congress during the time I have been in the Senate. Its long-range consequences will be tremendous in terms of easing the pains of taxpayers and enabling Congress to examine the wisdom of spending priorities and the effect of these on the operations of the Government and the whole economy. I congratulate the Senator from Illi- nois and all those who have worked on this matter, Senators ERVIN, CANNON, ana %Wars, and others. for their tremen- dous work. = ? I know that Senator METCALF and Senator MUSKIE have done great work, and I congratulate them. The Senate owes their leadership a great debt. Last winter, when many students of Congress began to express serious doubts that any congressional budget control legislation could ever be reduced to workable practical form, Senator ROBERT C. BYRD truly distinguished himself and earned a place as one of the masters of the science of the legislative process by the painstaking revisions of S. 1541 un- dertaken by his Subcommittee on Rules and Procedures. There is no doubt in my mind that this master of procedure deserves the lion's share of the credit for making the substantive proposals of the Congressional Budget and Impoundment Control Act of 1974 workable. Mr. President, today the Senate will complete final action by Congress on a most important piece of legislation. From the standpoint of the fiscal well- being of the Nation, the Congressional Budget and Impoundment Control Act of 1974 is a most significant achieve- ment of Congress. The Budget Control Act represents years of very hard work. I commend the members of the Senate Government Operations Committee and the Senate Rules Committee?and the able staffs of both committees?for the months of un- tiring effort they have put into bringing us to the point where congressional budget control can be realized. I have long advocated a limit on Gov- ernment spending. I have thought that this issue never has been one of liberals versus conservatives. The debate, in- stead, is about what spending is really necessary within predetermined limits. The Congressional Budget Control Act, I believe separates this traditional debate between different political philos- ophies into two major debates. One is over the spending limit itself. How much shall we spend? What revenues. will be coming in to meet expenditures? Should we aim for a surplus? A deficit? Or a balanced budget? Will we need more revenues to meet anticipated needs? These questions relate to the larger economic aspects of the budget which Congress in the past pieced together in some 13 separate appropriations bills, and in any number of supplemental ap- propriations bills. The other debate will?and should? take place over priorities for spending. Unquestionably, this will promote a new and far healthier form of competition for funds. Some fear this competition will mean the end of programs for those without powerful political voices to speak for them. This need not be the result. Congress in the past has con- scientiously exercised its role as Federal guardian of those who lack the numer- ical and financial strength to prevail by sheer political force. There is no rea- son why Congress should abandon this obligation and duty. I and others will work to see that it does not. Competition can produce very bene- ficial results. It can best take place in the context of the procedures of the Congres- sional Budget Control Act. Old programs which have accomplished their original goals will be subjected to closer scrutiny as to their current usefulness. Resources still being spent on objectives long ago attained can be shifted to areas of great- er need. Competition with leaner and better programs will either improve out- moded programs or eliminate them alto- gether. I think this is all to the good, and it certainly constitutes an overdue reform. - As important as the budget control features of this legislation are to Con- gress and the Nation, the impoundment provisions are worthy of special mention. For many years, Presidents have ex- ercised their prerogative uder the Anti- Deficiency Act to withhold appropriated funds for contingencies, to effect savings and enhance efficiency, or to respond to other developments which occur sub- sequent to Congress appropriating the funds. In recent years, this authority has been greatly expanded by President Nixon, far beyond what I believe was the original intent of Congress. The Presi- dent ignored the legislative will of Con- gress by selectively withholding billions of dollars from vital programs through the impoundment mechanism. I cosponsored legislation in the 92d Congress to require congressional ap- proval of impoundments. Later, I was an original cosponsor of Senator ERV/N'S bill in the 93d Congress. It prohibited im- poundments for any reason, without a formal rescission resolution by both Houses of Congress within 60 days after notification by the President of his desire to withhold funds. I am very pleased that the conferees on budget control have put the antiim- poundment measure in final form. It is an excellent provision. It requires the President to submit to Congress in writ- ing his request to withhold funds from any appropriation. A rescission bill must be passed by both Houses within 45 days to approve the President's request. With- out both rescission bills, the budget au- thority must be released for obligation. One other feature of this historic legis- lation which I would like to call for the attention of my colleagues are provisions concerning entitlements?something of particular importance to veterans and others. I introduced the original amend- ment of this matter, and I am delighted with the final version that has been worked out in conference. Finally, let me say that I know of the tremendous contribution made by Herb Jaspers of the Labor Committee staff to this legislation. He performed one of the ablest pieces of staff work I have witnessed on Capitol Hill. His work in coordinating the efforts of an unusually large number of staffers was magnificent, and I congratulate him?and them. Mr. President, after this vital piece of legislation passes the Senate today and is sent to the President, I hope he will sign it and pledge to cooperate with Con- gress in a new effort to combat inflation by controlling Federal spending. Mr. PERCY. Mr. President, I thank my distinguished colleague. Mr. President, looking at the majority side of the Government Operations Com- mittee, I have read any number of edi- torials recently that this particular piece of legislation or that particular piece of legislation is going to be the crowning jewel in the legislative career of the dis- tinguished chairman of the Government Operations Committee, the Senator from North Carolina (Mr. Eavn,r). Approved For Release 2000/08/27: CIA-RDP75B00380R000600080003-9 Approved For Release 2000/08/27 : CIA-RDP751300380R000600080003-9. S 11234 WNGR.ESSIONAL RECORD ?SENATE June '21, 19 74 I have participated with him in cer- tain legislation that we have introduced this year to repeal the no- knock legh- lation, the rights of privacy legIslatIon now in the process of hearings 1 the Government Operations Committee, a field in which the distingulohed Sens,thr has worked for =reel() years. The lead editorial in last right's Wash- ington Star Indicated that WE may be the crowning jewel in the iistinguislaed career of the Senator from North Caro- lina. I feel very strongle. Indeed, nue the budget reform bM and the Work -done by the distinguished Senator will, for many, many decades to conte, be one of the fin- est aehieVeMents of his :political arid public career.. We are Me grceeful to him, and to Senator McClain/et, the chairman of the Approve ations Com- mittee andl past chairman of the Govern- ment Operathms Committee, for his very constinctive help, without which we simply coued not have made the progress we did make. The distinguished Senator from Wash- ington (Mr. JACKSON) maintained ft deep interest throughout the course of our deliberations, and his expertise in many areas was of immense help. Mr. President, I had the greet pleas- ure a working with the distinguished Senator fee= Cmmecticut (Mr. Ban- coee), and particularly with the dis- tinguished Senator from Maine :Mr. Masers) on many, many aspects of this bill. We had many areas ehere we agreed; we had certain areas where we disagreed. But always through an ex- change a views and an understanaing of eath other's point of view, we were able to repent:11e our differenees. This bill is the result. I have said many times that the un- sung hero?and he wM not be uniting muci longer, bectiann we are all singing his praises?the distinguished Senator from Montana (Mr. Mzeceer), provided a tremendous degree of assistance as the chairman of the subcommittee which dealt with this particular iiiece of legis- lation. It was his persieterice, his spirit of compromise, his resilierce, and his tenacity which made posofele the pro- posed legislation. I think we should make note of the fact that the present Atternee General of the. United States, former Senator Saxbe, served as the ranking mincerity member of that subtomndttee. W itre grateful for his paaticipetiou and his help. Senator ALLEN, with hi; useal eeper- tise and knowledge, has been of great assistance. The Senator frort Florida (Mr. Crimes) provided many new in- sights to us on the legislation. His pelt- trating questions were always helpful. We immensely enjoyed working with the Senator from Georgia (Mr. Nu) End the Senator from Kentucky (Mr, Hun- DLESTON) , who, in spite a thcer having been on the Gov-el-rune it Operations Committee for not quite as long a period as many others, actively '3articipated in the consideration of this legislation. In their own right, they provided a tre- mendous insight into the nature of some of the problems Be we dealt with them. Our achievement is great, mid we are rightly proud of it. But the implementa- tion a this vell be even tame dif- ficult. It will require even more determi- nation than it enactment. Even though we are feeling extraordi- narily good about the work we have ac- complished to ,date, tlae ascdstaut ma- jority leader, the distinguished Senator from West Virginia (Mr. BOEERT C. BYRD), who is a realist, always brought us back to the point of realism in the hearings that were held before the Com- mittee on Ralm and Administration. which he cheteed. The disthiguialusd Sen- ator from Mitihigan, Senator Gement, who is ranking minority member of the Subcommittee on Standing Rules of the Senate, deserves great credit for assist- ing consideration of the bill by the Rules Connnittee. I point out, once agaln, that during the year-end Christmas holidays the Senator from West Virginia was here, busy at week de this legisdation, so that we might, when we returned from that recess immediately implement many of the fine ideas that be elicided. Mr. ROBERT C. BYRD. Mr. President, I thank the distinguished Senator. Mr. PERCY. Mr. President, the imple- mentation of tile; legislation will be im- portant, for, tmlike the vast majority of bills which we pass, we must imple- ment this lee:dation ourselves. This Is nothing that we an pass on to the execu- tive branch and say, We have passed the laws; you implement theme' Tins implementation must be done by ourselves. The executive branch cannot be blamed for failure this time If we fa11. only we can be blamed. There is a skeleton hidhig in our col- lective closet, :reminding us that in the late 1940s an effort to reform the budget process gave up the ghost. That skeleton of failure is rattling its bones today, re-. minding us that we cannot afford to fail again. Mr. President, certainly the critical Period that we are facing today, with two-digit inflation, with a failure of con- fidence by the American people in the future value of their dollar and of their wages and earnings, is an indication that it would be absolutely a catastrophe if we failed to implement the spirit and intent of this legislation. This institution cannot survive much more of the "I told you so" cynicism that prevails in public opinion. We must make budget reform work, and we will rightly be blamed if it does not work. Mr. President, this task will not be easy. We me,y already be behind sche- dule. The bill protides that the new con- gressional budget organization, the Budget Committee ind the Congres- sional Budget Once, be created immedi- ately upon enactment, and that we begin the trial run of some of the key processes next spring. The bill makes these trial run procedures optional, but I believe they are absolutely critical to the surcess of reform. If we do not make maximum use of the trial run, we could fat ally cripple the im- plementation of the mandatory processes that come into force ie 1976. This ig be- cause the bill creates procedures that will make new demands on virtually all the oommitems. Congress must become aecustoined to the new procedures in the course of time. To attempt' to impinnent them without a tried 'Period could result In outright omgressional rejection of the entire reform. By April le, 1975, It ss then 10 months from today, the Budget Committee should repor; the first concuerent resolu- tion?the first truly congerssional budget. By April 1, 1976, the C130 13hou1d make its mejor report on :fiscal Policy. These two key events will require the creation, as soon an possible, of the Budget Committees, the appointment of tee Director of the C30, and the build- ing of very competent stairs. The CBO must be funded. preferably by the legia- Ls.tive Appropriat.ben ?ect, though during the interim period until =eh appropri- ation can be made the contingent fund of the Senate will be used for this purpose. At this point, I wish to ask the dis- tinguished chairman of the Committee on Government Or erations an.d the chairman of the Suecommittee on the Budgeting, :Management, and Expendi- tures whether or not It would be well right now to once again establisle as I seed in our discussions in subcorrimittee and committee, and sie I believe we have tried to establish in, 1 he letter and spirit of the law, as well FiS. the report itself, that the budget committees truly de- mand, if any committees deniand it, ex- pertise on the part re the merneers of those committees, and that the seniority system certsdnly shout(' be abandoned in this particular area; that it would be a reed disservice to the peemle if this country, to the taxpayers ,A this coun- try, and the whole ken of songressional reform if seniority were the only basis for deciding which Republicans and which Democrats we e to be assigned by the respective caucuses or Committee on Committees, to the 3udget, Committee; that there should be a, degree of expertise, find a degree of knoweeige: and that we want on those corerattteas, the best, broadest representation we can have of expert thought in the Senate. This is a human judgment, obviously, that will be made, bit I think the spirit of what we tried to a ecemp ash should be implemented. I am very happy te yield to the dis- tinguished Senator from Montana (Mr. METCALF', the chairman of the subcom- mittee, for any ccanmento he cares to in ake. Mr. METCALF. Mr. President, with permission of the elenman of the com- mittee, may I be permitted to respond first? Mr. ERVIN. I wend be delighted if the Senator weed. Mr. eiTICALF. 'Ine Semler from Ill- inois Veil recall that e hen we organized the subcommittee aid started hearings on this matter we hal oefore us the Joint eludy Committee on Butte-et Control's hal and we had the report from that com- mittee providing that the Committee on Appropriatons had to hive so many members, with so many members from Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 S 11235 June 21, 1974 CWGItESSIONAL, Ma= ?SENATE finance, and so many members from ways and means, and so forth. Then there wera suggestions, and I had one of them._ that we have limited terms so that we, Vveted. have not only experi- enced seniormembers, but also we would have some of the new, interested, and in- volved junior members. Finally, the Senator from Illinois him- self came UP with the idea, to appoint this committee in the same way as all the Other committees, by the caucuses, but With the understanding that we need some input from the Appropriations Oommittee, we need some of the expertise from the Finance Committee, and at the same time we need the young and the new ideas that are generated by the Jun- ior Members of this Congress. The Senator from Illinois has men- tioned the Senator from Kentucky (Mr. HUDDLESTON) and the Senator from Georgia (Mr. NUNN) who are new mem- bers, who made a tremendous input on the Democratic side; the Senator from Tennessee (Mr. Beocx) and the Senator from Delaware (Mr. Rom), who made a tremendous- input on the Republican side. Members ma, as those Senators should certainly have an opportunity, should certainly be considered in the selection of Senators who are to serve on this impor- tant committee. hope that in the caucus we will review the recommendation we started with 2 years ago and provide that we are not Just going to have senior members; but give an opportunity to all members to demonstrate their interest and their con- cern in the budget process. Some of the best speeches in the Senate to bring this bill up over the years have been by such members as the Senator from Georgia (Mr, Main) and the Senator from New Mexico (Mr. Donseanci) who made a splendid speech. They should also be con- sidered, along with, of course, theexperi- encecl and the knowledgeable members of the Appropriations Committee, the Finance Committee, the Armed Services Committee, and other committees di- rectly Involved in budgetary decisions. As the Senator from Illinois knows, we went over this entire matter, and the Senator from Montana suggested that perhaps we should have limited terms. I believe the way the Senator from Illinois worked it out, and the way it was worked out in the Committee on Rules and Ad- ministration, is that we have the prospect of a better committee if our respective caucuses are not confined only to those ? persons of seniority. Mr. PERCY. I think the distinguished Senator from Montana, and I do feel that the Senator from Illinois is going to have sme degree of impartiality because his seniority in the Senate as of, I would anticipate, the first of next year, will be under the 50 mark, so I would be about midway. That Is not a self-serving com- ment. The Senator from Illinois had in mind the outstanding work of the Senator from Delaware (Mr. ROTH) and the Sen- ator from Tennessee (Mr. laaock), who are lower in seniority, but who are very high in their performarece; and certainly the work of the distinguished Senator from Alabama whose seniority is not as great as other Members, but who would take second place to virtually no one in the U.S. Senate for his parliamentary skills and abilities and knowledge, and certainly in the field of budget and budget reform. He has been a tower of strength, as has the Senator from Florida (Mr. Climes) , the Senator from Georgia (Mr. Nene'), the Senator from Ken- tucky (Mr. HUDDLESTON), who are lower in the seniority ranks, but their contri- butions have been immense. I would hope that all of them would have an eligibility for membership on the Budget Committee and would be given consideration by the caucuses even though on a straight seniority basis they would not have that position. For that reason, we tried in every way we could to indicate that representation of a number of committees including au- thorizing committees as well as the tax and spending committees, knowledge, and deep interest rather than seniority should be the guiding rule. Mr. President, we have much to do and we will need full cooperation. The public and private groups that have pressed us for enactment of this reform must keep up their pressure. They must demand a high standard of perform- ance. The congressional agencies?the Library of Congress, the General Ac- counting Office and the Office of Tech- nology Assessment?must assist their new sister organization in every way. The administration?most notably the Office of Management and Budget?I hope will abandon whatever cynicism it has about the capacities of Congress to implement this reform, and do everything possible to work cooperatively with our new budget processes and our new congres- sional budget organizations. But the best way to have cynicism removed is by the performance of the Congress in implementing and carrying out the intent and purpose of budget re- form. This is too important a reform to be encumbered by any jealousies or ri- valries between the branches. It is, after all, the vitality and balance of our two major constitutional institutions that is at stake. Their cooperation to date has been excellent. We must sustain it. Mr. President, for purposes of legisla- tive history I would like to discuss the provision of the conference report re- lating to the content of the first concur- rent resolution on the budget. The bill as passed by the Senate re- quired a somewhat detailed subdivision or breakdown of the 14 major functional categories contained in the first concur- rent resolution on the budget. The division consisted of the fol- lowing. Within each functional category, the allocation would be divided between total funds for existing programs, and the total for proposed programs. It would thus have enabled Congress to determine explicitly the amounts it anticipated for program initiatives and new priorities. The allocations for existing programs would have been further divided between permanent and current appropriations and, within the latter, between control- able amounts and other amounts. Thus, in summary form, the budget resolution would have indicated the amounts that would become available without any cur- rent action of Congress and the amounts estimated to be made available through the appropriations process for that year. The budget resolution would also have disclosed which appropriations were within the effective control of Congress and the amounts not controllable under existing law. An example of this breakdown is con- tained on page 15 of the Rules Commit- tee's report on S. 1541 (S. Rept. 93-688) . There were two important purposes of this division. First, it was intended to provide a more accurate basis for the crosswalk exercise. This is the procedure in section 302 of the bill which provides that the budget committees (with the Appropriations Committees) shall trans- late the targets established in the con- current resolution for the 14 major func- tional categories into targets for each spending bill to be considered by the Sen- ate and House after the concurrent res- olution is adopted. The effective opera- tion of the crosswalk is critical to the success of the budget reform. It will be on the basis of the targets derived from the crosswalk that the scorekeeping process will occur. Each committee and subcommittee reporting budget authority bills must know what its target is, as must the Congress. If, for example, the Senate is about to vote an increase in the funding contained in the bill above the target, it should know that it is about to breach that target. Without the disci- pline of the targets and the scorekeeping process, the total of the budget authority bills actually voted by Congress may very substantially succeed the spending level in the first concurrent resolution, and jeopardize the effectiveness of the recon- ciliation process. The second purpose of the division re- quired by the Senate bill was to force a more realistic debate on spending and priorities. Too few members understand the extent to which spending for a great many programs is uncontrollable. It is easy, but extremely misleading, to pro- pose substantial budget cuts when it is almost literally impossible to cut back spending without taking the cuts en- tirely out of the ever-smaller portion of the budget which is really controllable. Were the concurrent resolution to con- tain the divisions required by the Senate bill, the debates on priorities for spending would be better informed. The committee of conference agreed to delete the requirement that the first concurrent resolution contain the fur- ther division. Instead, this division is re- quired in the budget committees' re- ports on the resolution. However, in section 301(a) (6) the conference re- port provides that the budget commit- tees may, at their discretion, include in the concurrent resolution? Such other matters relating to the budget as may be appropriate to carry out the pur- poses of this Act. Under this provision, it is clear that the budget committees may include the further division, or some variation or modification of it, if they determine that It is necessary to make the essential crosswalk and scorekeeping procedures of the bill effective. In short, the dele- Approved For Release 2000/08/27 : CIA-RDp751300380R000600080003-9 Approved For Release 2000/08/27 : CIA-RDP751300380R0006000801M11, S 11236 CONGRESSIONAL RECORD ? SENATE tion of the requirement that the conear- rent resolution contain the further divi- sion of the 14 maiot functional categor- ies was not intended to limit the ability of the budget committees to incite:le that breakdown in the first concurrent rego- letion itself. Zn Mr. President, a variety of funding de- vices are used in the budget and the status of some of these is lo be modified by this legislation. For purposes of clerity and legislative history, therefore, I will review the main types of spending and their treatment in HR. 7130. Budget authority: This is authority provided by Congress to enter into c?bli- gations. Budget authority usually is fur- nished in annual appropriations, but it also may be provided in permanent ap- propriations and through backdoor pm- cedures such as contract or borrowing authority. It is important to note that budget authority relates to authority to obli- gate?not to spend---Government funds. Through its enactments, Congress has control over the obligations but not the outlays of Federal agencies. Once the budget authority has been granted, Con- gress traditionally has had no control over the timing of the expenditure. One of the purposes of the congressional budget process is to give Congress a measure of control over outlays Section 3 of the legislation excludes guaranteed and insured loans from the definition of budget authority. These loans are contingent liabilities of the United letates and are riot direct obli- gations. The appropriate level of nee, budget authority is to be set it. the first con- current resolution on the budget, section 301, to guide Congress in its subsequent consideration of appropriations and other spending bills. The appropriate level of new budget authority in the second required budget resolution, sec- tion 310, is a firm ceilirg ar,d may not be exceeded in later congressional ac- tions, unless Congress were to retese the ceiling during the fiscal year by means of a new concurrent rescaution. Outlays: This term refers to the amount a expenditures arid net lending made (hiring a iiscal year. Net leeding is the excess of borrowings over loan re- payments. Budget authoeity is the source of all outlays for under the Constitution money may be drawn from tee Treasury only pursuant to an appropriation. The amount of outlays in a particular fiscal year is determined by the current and past actions of Congress in provid- ing new budget authority. More than $100 billion in fiscal 1975 :outlays derives from past enactments and at the end of the fiscal year the unspent budget au- thority available for outlay in future years will exceed $3,00 billion. This. pipe- line is one of the main reasons why 75 percent of the outlays in the 1975 budget are uncontrollable. The appropriate level of outlays is to be set forth in the first said second, and any additional budget. .resolution. Al- though appropriation tills only indicate the amounts of new budget authority that arc to be provided, committee re- ports accompanying such bills are to project the 5-year outlays resulting from them, and the Congressional Budget Of- fice is to furnish various status and score- keeping reports relating to the effects of congressional actions on budget outlays, section 308. Functional allocations of budget authority and outlays The total budget authority and total outlays set forth in a budget resolution are to be allocated among major functional categories. As I discussed above, at the present time there are 14 such major functions in the President's budget and under the bill, these may be changed only after con- sultation with Congress, section 802. The major functions are: national defense, international affairs 3nd finance, space research and technology, agriculture and rural development, natural re- sources and environment, commerce and transportation., community development and housing, education and manpower, health, income security, veterans benefits and services, interest, general govern- ment, and general revenue sharing. A special, crosscutting energy category was introduced in the 1975 budget. The functional categories overlap the appropriations categories used by Con- gress. Accordingly, the congressional budget reform legislation provides two crosswalk procedures before and after adoption of the budget resolution. The committee report accompanying a budget resolution is to indicate how the amounts were derived and the relationship of the functional allocations to other budget categories, section 301 (d) (8) . In addition, the joint explanatory statement of the managers accompanying a conference report on a budget resolution is to pro- vide an estimated allocation among vari- ous c,ongreasional committees. The House arid Senate Appropriations Committees, after consulting one another, are to sub- divide their allocations among subcom- mittees, thereby providing a concrete basis for iiu.bsequent scorekeeping re- ports. Tax expenditures: These are credits, deductions, Und exemptions which have the effect of reducing the amount of Fed- eral income tax paid by an individual or corporation. They are named tax expend- itures because they have the same sub- sidy effect for the recipient as a direct expenditure. In recent years, awareness of the scope and magnitude a tax expenditures has expanded, and are estimated to be in excess of $50 billion per year. The budget reform bill prOvidei for inclusion a tax expenditures estimates in the Presidents budget, the tax expenditure budget, sec- tion 601, ,sommittee reports on budget resolutions, section 301(d) (6), committee reports on tax expenditure measures, sec- tion 308(a), and Congressional Budget Office scorekeephig reports, section 308(b). In addition, the Budget Commit- tees are charged with the responsibility of requesting and evaluating tax ex- penditure studies, section 101 and 102. The result of these provisions should be a new congressional awareness and public knowledge of the costs of epecial tax exclusions, exemptions, deductions, or credits. 1974 No special controls are imposed cin tax expenditure legislation. However, after adoption of he second budget resolution. Congress would not be permitted to con- sider an increase in tax expenditures that would have the effect of reducing reve- nues below the level specified in the latest resolution. I wish to call particular attention to the contribution of my dietinguislied col- league from. New York thin JAVITS) in writing these tax expenditure provisions into the bill. Off-budget agencies: With adoption of the unified budget in 1968, all Gov- xnent funds and agencies were included in the budget. However, fence 1971 at least six sgencies have been isranted off-budget etatus, that is, their financial transactions are not inc:iuded in the President's budget, though they are annexed to it in the budget Appendix. The sit agencies are the Environmental Financing Authority, the Export-Import :Bank, the Federal Financing Bank, the Rural Electrification and . Telephone Revolving Fund, the Rural Telephone Bank, and the U.S. Railway Association. The off-budget status of some ,nf these agencies also includes exemption from any statutory ceiling on total budget authority and outlays. In fiscal 1975, the outlays of the off-budget agencies will be above $3 billion. Section 606 of the budget reform bill calls for a study of off-budget agencies by the House and Senate Budget Com- mittees. The statement of managers on the conference report indicates that off- budget funds need not be included in the budget authority and outlay amounts in the congressional budget resolution. Contract and borrowing authority: The budget reform bill makes a sub- stantial change in I he status of contract and borrowing authority. Contract au- thority is the authority enacted by Con- gress for an agency to enter into a con- tract in advance of appropriations. Borrowing authorty is the authority given to an agency to borrow from the Treasury, public debt receipts, or directly from the public, agency debt receipts. In the case of contract authority, an appro- priation is made after an obligation has occurred when funds 1,sre needed to liquidate the obligation. En this circum- stance, the appropriation is an uncon- trollable actefor Congress has no alterna- tive but 10 fulfill the obligation. In the case of borrowing authority, the bor- rowed funds have the same impact on the Treasury and on fiscal policy as a direct expenditure. Often, borrowing au- thority es used for commercial-type operations and ie in the form of a revolving fund. As a loan is repaid to the agency, its borrowing authority ? is restored by an equivalent amount. Contract and borrowing authority are two of the main forms of backdoor spending. The teem used for them in the bill is spending authority. Backdoor spending does not go through the regular appropriations process, and there is a tendency lor Congress to increase backdoor authority above the amounts requested by the President while reducing regular appropriations below the President's budget. Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 lune 2i) 'roved For Reivaya,98?1A2itiaUDFaIng380R00060008000gt237 Under the budget reform legislation, new contract wad 1)04(414 anthority no longer would have the statil,S Pf budget anther*. That is, it no longer would 1?e. permitted tO enter into obli- gations or to borrow pursuant to such an,thoritY. Rather, the authority Would have to be, prov1c 1i ppropriations acts. The net effect, therefore, wonidd, be to change new contrac't and hOrrowing authority into conventional authOrizing legislation, with funds available only to the extent provided hi, subsequent appro- priations (sectiOn , This new.procedgre would net apply to existing contract K borrowing au- thority. Nor Would It apply to certain exempted programs such as social sec- urity trusts, 90-percent self-financed trust flinds, or Government corporations. Entitlement author*: This is an- other type of backdoor wending in which Congress entitles a ,person or a govern- ment to certain benefits and, the MolleY must be provided either in subsequent aPprOpriatiens or in pernianent appro- priations, that iibndget anthority which becomes aVailable withont =Tent aCtign by Congress. Even whenentitlements are funded through the appropriations prop- ess, Congress znuSt" provide, the money required for the entitlement Thus, the last point at which,an,entitlenient can be effectively centrelled is before the entitlement is enaeted. Well over $100 billion of uncontrollable, wending in the 1975 budget derives :rem mandatory en- titlements. _ The budget Ontrpi, lill establishes variety of procedures for newsntitleMent First giqkjegislation may not be conSidered Prior te adqption of the first budget iesolutim, section 303. The purpose is to enable cOrigress to deter- mine entitlements in, ght_ of is overall budget policy. Second, a new en- titlement cannot take effect before the start of the next fiscal year, _section 401 (b) (1), The objective is to enable con- gress to reconsider tno_leyel of .entitle- ments in its second budget resolution and in a subseqUent reconciliation process, section 310. Third, entitlement bilis as well as om- nibus social security legislation may be considered even if they have been re- ported after the May 15 deadline for the reporting of authorizing legislation, sec- tion 402(e). Inasmuch as they may not be considered on the floor prior to May 15, it would be inappropriate to apply the May 15 reporting deadline to them. In the case of social security programs, the deadline is waived to allow consid- eration in the same omnibus bill of close- ly related programs. _ Fourth, if it exceeds the relevant al- location in the budget resolution, an entitlement bill is to be referred to the Appropriations Committee, with a 15- day limit. The Appropriations Committee can report the entitlement with an amendment limiting the arnMillt of new authority provided by it. Thus, unless it is within the budget resolution figure, an entitlement bill will be subject to Appropriations review. This referral pro- cedure does not apply to social security and 90-percent self-financed trusts or to Government corporations. The status of general revenue sharing is to be deter- mined in subsequent legislation. vs The final bill contains important pro- visions of interest to State and local gov- ernments. Most of these provisions were written by the Government Operations Committee, in coordination with orga- nizations representing these govern- ments, and they have been retained in- tact in conference. In addition, the bill contains the potential exemption for rev- enue sharing which was included in the bill by the Rules Committee. These pro- visions are: First. Section 301(d) (7). This section provides that the report on the first con- current resoltition include "a statement of any significant changes in the pro- posed levels of Federal assistance to State and local governments." This provision was section 301(c) (5) of the Senate- passed bill. Second. Section 303(b) (1). This sec- tion provides that bills providing "new budget authority which first becomes available in a fiscal year following the fiscal year to which the concurrent resol- ution applies" may be considered by both Houses before the concurrent resolution Is adopted on May 15 each year. Juris- diction over such bills is retained by the Appropriations Committees. This was section 303(b) (3) of the Senate-passed bill. Third. Section 308(a) (1) (C). This section provides that whenever a commit- tee of either House reports a bill provid- ing new budget authority, but not con- tinuing appropriations, the committee's report shall contain a statement, pre- pared after consultation with the CBO Director, detailing "the new budget au- thority, and budget outlays resulting therefrom, provided by that bill or resol- ution for financial assistance to State and local governments." This was section 308 (a) (3) of the Senate-passed bill. Fourth. Section 401(d) (2). This sec- tion provides that Congress, when reau- thorizing the general revenue sharing program in 1976, may provide that the authorization bill need not be subject to funding through the Appropriations Committees. However, the provision does not exempt the revenue sharing act from coverage under title III: revenue sharing must be included in the first concurrent resolution and it is subject as well to the reconciliation process. Same section as in the Senate-passed bill. Fifth. Title VIII, amendment to Sec- tion 203(d) of the Legislative Reorga- nization Act of 1970, page 37. This section provides that the OMB, cooperating with the CBO, GAO, and representatives of State and local governments, shall pro- vide to such governments fiscal and pro- gram data necessary to help them deter- mine accurately and timely the impact of Federal assistance on their budgets. Same section as in the Senate-passed bill. Finally, Mr. President, I would like to call attention to the bill's provisions for openness. A very important element of this reform is to bring out into full pub- lic view congressional budget procedures that, by their complexity, tend to con- fuse and obscure them from public un- derstanding. The bill contains at least three explicit provisions that will add measurably to public understanding. I have already al- luded to one of them, that is the new visibility given to tax expenditures. The second openness provision requires open operation of the Budget Committees themselves. Under the bill, the Senate Budget Committee must conduct all of Its business in public unless it votes to close its meetings for one or several spe- cific reasons. This is the first commit- tee of the Senate to be under such a re- Ouirement. It is a forerunner, I am sure, of the procedures that we will soon apply to all Senate committees. Our own ex- perience in the Government Operations Committee, which adopted an openness rule at the beginning of this Congress, has unquestionably shown that openness works. The third provision is that the Con- gressional Budget Office make available to the public budget information that it obtains from the executive branch and other congressional agencies. These lat- ter provisions were included in the bill at the suggestion of common cause. However, there will be an even greater public information value in the budget bill as a result of the operation of the new procedures. The bill provides a new vote, or series of votes, on budget aggre- gates. For the first time the public can hold us accountable for our fiscal actions by monitoring out votes on the concur- rent resolutions and the reconciliation measures. Will we set targets for our- selves only to exceed them? Or will we act with self-discipline and apply our self-created budgets to our actual spend- ing actions. By creating a congressional budget process we enable the public to relate our spending and revenue-raising actions to their own family budget prac- tices. In conclusion, Mr. President, I should like to mention also the great contribu- tion that the chairman of the Rules Committee, the Senator from Nevada (Mr. CANNON) has made. Without his help and the help of the ranking minor- ity member on the Rules Committee, the Senator from Kentucky (Mr. Coox), we simply could not possibly have moved this legislation forward. Although Senator Coox is necessarily absent today, I would like very much for the record to show that he has played an important role in the drafting of this most important legislation. As the rank- ing minority member of the Senate Rules and Administration Committee, he was a member of the House-Senate conference which drafted the report we are now considering, and he has approved and signed the report. Although he will be unable to vote today, he has asked to be positioned in favor of the bill. His contribution has been invaluable, and he deserves our thanks. I want to mention just a few members of our professional staffs for commenda- tion. Allan Shick, senior specialist of the Library of Congress Congressional Re- search Service has made a crucial con- tribution to this bill. Our Senate legis,- , Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 Approved For Release 2000/08/27: CIA-RDP751300380R000600080003-9 S 11238 CONGRESSIONAL RECORD ? SENATE June 21 1974 lative counsel, Harry Littell, also merits special eornmpndation for the skill and acuity with which he has, again and again, prepared the drafts of the hill in all the stages through which it has gone. Other members of our staff deserve our appreciation. Alvin From, staff direc- tor of the Intergovernmental Relations Subcommittee, has played a very ime portant role in fashioning this bill, as has Herbert Jasper, the general counsel of the CoMmittee on Labor and Public Wel- fare, and Robert Smith, chief counsel of our own Government Operations Com- mittee, and Bill Goodwin of the com- mittee professional staff, with whom n we have worked Very closely The staff of the Comraittee on Rules and Administration, headed by its dis- tinguished staff director, William Mc- Whorter Cochrane, deserves special thanks. Under his direction and that of Joseph O'Leary, the committee minority counsel, and With the particular assist- ance of James Medille Anthony Horsley, John Coder, and Jack Sapp, the Rules Committee held hearings, redrafted, and reported S. 1541 in what must surely be considered record time for such an im- portant and clemplex bill. I want also to thank 'Robert Vastine, Minority Counsel of the Government Op- erations, Committee, for his dedication to the objective of passing this extraor- dinarily important legislation. He has shown, through his tenacity, through his perseverance, through his sacrifice of personal life, really, this past year, a de- dication which I think is symbolic of the staff, and many staffs of the U.S. Sen- ate, and to him I am personally indebted, as are all members of the committee. I aleo wish to thank Robert Wallace, who has served as consultant to the Ceovernment Operations Committee throughout our work on this bill. Mr. Wallace has just been made president of the Exchange National Bank of Chi- cago, and I know our chairman joins me, as he has commended Mr. Wallace on a number of occasions, in congratulating him on this very important new assign- ment and extending to him our best wishes. Certainly, no person out of pri- vate life cottld have contributed more substance on a more important piece of legislation of lasting value than in the present budget reform bill that is before the Senate. I thank my distinguished colleague for yielding. Mr. ERVIN. Mr. President, in addition to the Senators whom I have heretofore mentioned in connectior with their con- tributions to this legislation, I would like to mention Senators JecNeon, Remorse and Mama of the Government Opera- tions Committee, and Senators CANNON, ROBERT C. BYRD, and COOK, a the Com- mittee on Rules acid Administration. The Senator from Alabama (Mr. AL- LEN( made a great contribution because he happened to have been a member of both the Government Operations Com- mittee and the Committee on Rules and Administration, and he deserves the thanks of us all for his efforts. CONTROLLING IMPOUNDMENTS Mr. HUMPHREY. Mr. President, the Senate is indebted to the work performed by the senior Senator from North Caro- lina and his colleagues. Their efforts on the budget reform bill are to be com- mended. I am particularly interested in the provisions of title X dealing with im- poundment control. Does the Senator be- lieve that -the information submitted by the President, In the form of special mes- sages and monthly reports, will be ade- quate for congressional review and ac- tion? Mr. ERVIN. The Senator from Minne- sota puts his finger on an essential as- pect of impoundment control: the quality of reporting by the executive branch. He is author of the Federal Impoundment and Information Act of 1972. Ever since the Passage of that act he has been ac- tive in mo:nitciring the timeliness and substance of OMB impoundment reports. He has been disappointed with their quality. So have I, and criticism has come from many other quarters. When the Senate Committee on Government Operations reported out S. 373, the im- poundment control bill, it raised a num- ber of objections as to the Incomplete- ness and lack of clarity on OMB im- poundment reports. I think I can assure the Senator that the budget reform bill contains incen- tives for better reporting. If the President wants our support for it proposed rescis- sion or deferral, he will have to document his ease and thoroughly set forth the rea- sons. If his reports are inadequate, he simply will not have the support of Con- gress. Mr. HUMPHREY. To the extent that he needs our support, I .agree that this bill contains incentives for better report- ing. But there are three types of reports: two special raessages--one for rescission and one for deferral?and a monthly re- port. I think the incentives are different for each. The incentive would be highest for a rescission special message, became there he needs the support of both Houses within 45 days. It is probably a little lower for a deferral special mes- sage, which allows an impoundment to continue unless disapproved by one House. There the burden is on Congress to overturn a proposaL I think the incen- tive is at its lowest ebb on the monthly reports. I am particularly concerned that those reports may come to resemble what we now receive on a quarterly basis. But let me first ask a general question. Does the Senator agree that reporting must be of the highest quality when im- poundments are of the policy variety, whether they appear in a rescission spe- cial message, a deferral special message, Or a monthly report? Mr. ERVIN. The Senator is correct. If funds are held in reserve for routine pur- poses?pursuant to the Antideficiency Act or in response to some other specific legislative authority?extensive report- ing is not necessary. But the quality of reports for police impoundments must be of the highest order. Mr. HUMPHREY. Does the Senator agree that while no precise definition exists for policy impoundment, we can agree upon. certain general under- standings? Mr. ERVIN. The Senator is absolutely correct. When OMB first suppliedies with voluntary impoundments reports, back in 1971 and 1972, they distinguished be- tween routine and nonroutine impound- ments. But that distinctio:a was not used in implementing the Federal Impound- ment and Information Act. Every action, whether routine or policy, was mixed to- gether in one report,. I think the concept of a pclicy im- poundment is reasonably clear. If the President proposed to terminate a pro- gram, that is certainly a policy action. He seeks to undo through impoundment what we have achieved through legisla- tion. Policy is also involved when the President seeks to curtail a program as part of his anti-inflation efforts. Why did he single out that program among all others? That, too, is a policy action. Mr. HUMPHREY. There is no doubt about either of those categories, I think Policy impoundments also include situa- tions vhere the a.drninistra,tion seeks to restrict a program to the level requested in the President's budget. He then im- pounds any additional amounts provided by Congress. For example, in fiscal 1971 the President impeanded all of the add- on money for public works. He proceeded to administer only public works projects that had been included in he; budget, completely ignoring all of the extra funds and projects voted on by Congress. Moreover, in fiscal 19'73 we had prob- lems with continuing resolutions cover- ing Labor-HEW programs. The President restricted health and education programs to the levels of his budget request, even though higher levels had been .voted on by the House or Senate. Many of those Impoundment actions reached the Fed- eral courts, and- in every single instance the courts held thee the Preside:at should have administered the programs at the higher congressio:ase levels. So this is an- other area, of policy Impoundment. Mr. ERVIN. Those examples help to illustrate what we mean by policy im- poundment. I think we can generalize by saying that a policy impoundment is an instrument used to pursue the admin- istration's goals at the expense of those enacted by Congrees. Mr. HTJMPHRIEY. That is it in a nut- shell. A policy impoundment occurs when the administration opposes the scope or design of a program enacted arid funded by Congress. Under those types of situa- tions, and the ones we have described, the monthly reports and special mes- sages must delineate with considerable detail the reasons for withholding budget authority, Mr. ERVIN. The Senator is correct. We expect a full and complete disclosure of the administration's_ position for pro- posing a policy irnpoundraent. No gener- alized codes will do, That is not an un- rea.sonable request. I doubt if there are more tha:a a few dozen policy :impound- ment actions a year. The reports and special messages should give them special treatment. Mr. HUMPHREY-. It makes no sense to have a Member plow through a report containing hundreds and hundreds of routine impoundments in order to locate a few significant items. Mr. ERVIN. No ; we should not have Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 Aporoved For R_ele.a_s_e 20QQ/08/27 ? C1ATRDP75W0380R000600080003-9 ' '?June 21: 7.4. CON LiKESNIUN AL KE.CUltli -- NEN NIE 11239 to do 'that. TJnIess policy actions are highlighted and given individual_atten- ton, perhaps by being set aside' in a separate sectiOn, reporting becomes de- ceptive and confusing. Mr. 1-1111VIPHREY. A mediocre and in- complete handling of policy impound- ments Can be disguised or obscured by adding a multitude of detail on routine, insignificant actions. That type of puffed-Up report is not useful to us. Mr. ERVIN. I have found that to be the case. The quarterly impoundment re- ports now submitted :t9: Congress have not been helpful or congressional action. The body of the report is limited to the technical concept of budgetary reserves, which is not what you requested in the Federal Impoundment and Information Act. The reports appear to be organized and structured for the convenience Of executive officials rather than for the convenience a Caugress. Commonsense and good-faith efforts w0111c. have pro- duced a inerenaeful report for Us. Mr. PIUMPHRZY. And for the public also. Impoundment reports must be com- prehensible to them as well. Mr. ERVIN. That, is right. It is their money. The programs are being enacted and implemented for the pUblic. ? Mr. HUMPHREY, ain _glid to hear that from the senior Senator frOinisTorth Carolina. We are setting up a structure of decisionniaking on impoundment, to be shared by both branches. Good-faith efforts and openness are crucial for that kind of structure. If the gxemtiyp,t115 funds should be rescinded or deferred, let him state the caSe Publicly and openly. Let him ,argue his case and give reasons. If they are sound and persuasive, I am confident that Congress will support hitt?. We do not want to waste public funds. But a full justification is his reaPetiSi- bility. We should not have to cllg around, make calls to a,gencies, hold hearings, and wade through Unfocused, and etc- fusing impoundment reports to find out why a program or activity is scheduled to be curtailed or terminated.. Let me ask a final question ahoUt the reports required by this budget reform bill. For either special meSsage, the Presi- dent must report?to the irialdnillni ex- tent practicable?the eStimated Anal, economic, and budgetary effect of the proposed rescission or deferral, The same requirement appears bathe Federal Im- poundment and Information Act. Is the Senator satisfied. with the way that OMB has implemented that portion of the act? Mr. ER17/11. Do you mean by the use of codes? . Mr. HUMPHREY. That is correct. Mr. ERVIN. I do not think that the codes are responsive to the act. They are too generalized and obscure. For example, the most frequently used code, which is code I, reads as follows: Same effect as set ferth in the most re- cently submitted budget document, of which this item is 411 integral part. What is dongress or the public sup- posed to make of that? ,It. sp,ys, in es- sence: "Go to the_buciget and try to find it there." No of the other. codes used for estimated fiscal, economic, and budgetary effects are ,sufficiently useful or comprehensive to include in an IM- poundment report. Particularly when it comes to the policy impoundments, we expect specialized treatment for each ac- tion. They should state, with narrative and statistics, the estimated fiscal, eco- nomic, and budgetary effects for pro- posed recessions and deferrals. Mr. HU1VIPHREY. I thank the Senator for that clarification. Mr. ERVIN. Mr. President, I would like to add one further word. I had hoped this bill would contain a provision providing for the salary of the Director of the Congressional Budget Office equally between the Senate and the House. Representative RICHARD Houma, who has done yeoman work on this leg- islation in the House, had agreed on that being done, but, unfortunately, under the House rules, after the conference report had been approved by the confer- ence, it was not possible to get that done. The provision in this bill would pro- vide that appropriation _reports for this new Budget Commission and also for the Congressional Budget Office shall be made in the legislative appropriation. The present bill provides, in section 201, subsection (f), that until an appropria- tion is made, the operating funds be paid out of the Contingency Fund of the Sen- ate. The Senator from Maine (Mr. Mt:B- ios) yesterday engaged in a coloquy with the Senator from South Carolina (Mr. Hourmos), who always handles for the Appropriations Committee the Legisla- tive Appropriation bill, in which the Senator from South Carolina promised that this matter would be handled in a supplemental bill. For that reason, we can look forward to the time when the matter of finances can be satisfactorily adjusted between the Senate and the House, and at that time we can get an appropriation pro- viding for this particular salary as be- tween the two Houses. One other member of the committee who did a great deal of work on this bill Is the Senator from Georgia (Mr. ?Num?r) , and I think he would like to make a few remarks at this time. Mr. NUNN. Mr. President, I thank the distinguished Senator from North Caro- lina for allowing me time for a few brief comments on what I think is a very significant development in the presenta- tion of this final Conference report in the Senate. First, I want to compliment the staff of the committees for their excellent work, both of the Government Opera- tions Committee and the Rules Commit- tee, which also considered this legisla- tion atter the Government Operations Committee approved this bill. I want to thank a young man who did a lot for me, on my personal staff, as we worked on tbis,,bjll. He has been a member of the Government Operations Committee for some time, Mr. Nick Bizony, who was one of the most , knowledgeable staff mem- bers, and certainly rendered considerable service to me on the committee. Also, I want to commend the director of the staff of the Government Opera- tions Committee, Mr. Bob Smith, who did so much to guide the efforts on the bill. He not only directed the staff generally in the Government Operations Commit- tee, but also made it a top priority item and helped guide it through the Senate and the conference. Mr. President, I am most gratified that today, after some 15 months or more of major efforts in bath Houses, we will be casting the final vote on what I believe is one of the most significant pieces of legislation to come out of Congress in a good many years. The efforts of the Subcommittee on Budget and Accounting in the Senate really, I do not think, can be overem- phasized. The Senator from Montana (Mr. METCALF) did a yeoman's job in coordinating, in pushing, in reconciling the varying views so that the subcom- mittee could finally present its bill to the full Committee on Government Op- erations. There were many strong dis- agreements within the subcommittee, and the Senator from Montana (Mr. METCALF) himself took very strong posi- tions, as did I and other Members. How- ever, after the decision was made, he, as chairman of the subcommittee, was pri- marily responsible for reconciling the views and getting us back on track, keep- ing in mind that the overall objective was budget reform. The Senator from Maine (Mr. MusiciE) did outstanding work. I do not know of anyone who contributed more of his time, effort, and substance. A great deal of this legislation is the result of those efforts. Also, I would like to say exactly the same thing regarding the Senator from Illinois (Mr. PERCY) . He spent hundreds of long hours?he and his staff?in their efforts, and the overall goal was never lost sight of. So much of the substance of this legislation is directly a result of his input. Also, the Senator from North Caro- lina's part in this endeavor cannot be overemphasized. Once the bill reached the full committee, we would never have been able to get it passed here on the floor, without his continuing leadership nd effort. Without the lending of his great prestige, and his making it a top priority item for Congress, werwould not have this historic legislation before us today. So his role will certainly be re- membered. Senator Ellyn% I contend, will be re- membered for years to come not alone for his efforts in the investigation that has taken place in t his country for the last 18 months, but I predict that, histori- cally, this bill, which he has guided through the Senate, which he has com- manded through conference, will go down as one of his foremost contribu- tions to the United States of America and to this body. I do not think it will be forgotten in the annals of history, nor will his efforts in this regard. The Senator from Kentucky (Mr. HUDDLESTON) also made great contribu- tions, as did Senators 13aocx, Rom, and CHILES. We have before us the conference re- port on H.R. 7130, perhaps better known here as S. 1541, now called the Congres- sional Budget and Impoundment Con- trol Act of 1974. I feel that the conferees have done an excellent job, combining, in Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 Approved For Release 2000/08/27 : CIA-RDP751300380R000600080003-9 ' S 11240 CONGRESSIONAL RECORD ? SENATE June 211 1974 most instances, the best features of the this, as a possible option as we proceed, resolving them and then, with the quail- measures Paned in each House, and pre- as we experiment, and as we try to de- ties of character and personality that seating us with a illeanbagful, prattical, velop a final process which- will indeed enabled him to work amicably ',with those and realistic mechanism% for responsible be satisfactory in the overall fiscal tits- of us who disagreed with him. I think exercise of the most basic congreseional cipline. It was a very interesting exercise. power: the power of the purse. Despite one or two misgivings, how- I was especially pleased on a personal I am particularly pleased that the ever, I am generally optimistic about the basis with the column that appeared in measure recommended by the conferees product. It embodies a SYSteM which will this morning's Wa,shiugton Post by retains the prohibition which I proposed spotlight our fiscal and economic actions Stephen S. Rosenfeld entitled "Senator on the floor against spending, savenue and which cleszly delineates our priority Nunn 's NATO Maneuver' . and debt action until after adoptloia of choices. I think that Mr nosenfeld did an ex- the first concurrent budget resolution One thing that we have done through- eelient job in capturing the issence of each year. We must have a comprehen- out this entire bill and its development, the distinguished :Senator's abilities that sive Plan before we take action that those on ie liberal side, those on the he has demonstrated in the Committee would affect either the debt, the revenue conservative ekie, and those in between on Armed Services and on the floor of or the spending of ?lir Nation. Having have tried to create a neutral mechanism the Senate. this overall plan fast Li absolutely vital that does not reflect the political prefer- I ask unanimous consent, Mr. Presi- to the very concepts of bielgetary control. ences toward spending of any particular dent, that this article be, included in the I am also pleased that the conferees philosophy, whether it be liberal or con- RECORD Sit this point with my tearaments. retained the basic structere a the meas- servative. We have sought to develop a There being ne objection, the news- ure as passed by this Chamber with re- neutral mechanism on which this body paper article was ordened to lase printed sPect to conteol el what are often loosely can work Ile will each year. I am sure in the RECORD, as follows: catled "trust !mid" or "self-financing" that the reflection and the final product SENA TOR NUNN 'S NATO MANZI:71ER programs. The report recoil-one:eels, as of the spending each year will vary, de- (Ely Stephen S. Rosenfeld) the Senate bill provided, than certain pending on what the Senate chooses, Sam Nunn (D-Oa ), 85 years old, not 20 safeguards of the budget control system whether it be a program geared more to months a United States &miter, saved shall be relaxed only wilt. re pct to pro- domestic ispending., to 101 fl spending NATO the other day. Ms vzas as solid and e grams that are truly 90 percent or more or to military spending. deft a arliamentery performance in the ea self-supporting. Some earlier versions of We have the best possible example of national security ar as the Congress has y, e this legislation left a loophole in this a neutral mechanism that we could pres- seen in ears belying th common notion eeniority or area that L for one, found most danger- ently devise here before us today, and that a legialator ?raust have "power" to get something imtant done. ous. My Senate colleagues agreed with hope, the Senate will give final approval What erun did was to block?porand rechan- me amt adopted my floor araendinent to to this measeve. nel?a campaign fed by I3enate Majority close this loophole. I believe that people of every persua- Leader Mike Mansfield (t-out.) to demobi- e I do feel constrained not to leave the sion who worked on this legislation, all. nee 125,000 men ta of American ground subject without pointing out a petential Senators particularly with whom I am forces overseas. ms was the 1974 Model of Pitfall or two because I do not think that familiar tgree that it should be a neu-. the now-traditionel 'Man :field Areendment" ,o even this bill today which has, think to enact unilateral troop uta in Europe. , tral mechaninn. No one here today con- Antienating the campaign. Armed the very very best efforts of what we are able tends it is going to in any way insure ices Chairman John c. steams 03-Miss.) to put together now as the final product, Mending in one arena or another,. last February sent ":11e member he has called is going to be omega to Teeny come to whether it be in the iaattonal security nest but not leaSt" on his committee, on a grips 'with fiscal responsibility In this area or whether it be in our domestic study mission to Europe. Nuna, a great- needs, nephew and once a staff aids of the litU, CM1118177. House Ars I believe that this is the beginning. I The Arnericaaa people who are eon-- med Sertreie Chairmen Carl tensor. , believe. that this 1.s the foundation, a very cemed with continuing deficits, with (D-0a.) occuplee '.1.1e Sexist? seat?and the Armed Services Seat?of the let. Richard good Anindation; but I believe in t/ie fu- rampant inflate:a and with fiscal irres Russell (D-Oa.). "We have military bases in ture e will have to build on this (otmda- sponsibility will now have a focal point Georgia," Nunn explains,. "Peeple in the MOIL In my estimation, we will have to on which they can make their voices be south are much more ttmed to a military s tighten to some degree some of the pro- heard and on which their philosophy can and patriotic spira than ome of the other cedures as we move along to insure that be reflected. secAtiolnsaw er and four-yeer tat legislator..; se our overall purposes are compltici with. I believe the system is workable. That Nunn I do think the conferees diluted to is not to say that I believe it will work reealls putting in 190 hours preparing for his European trim?"getting through the some extent several of the requirements automatically. Like any rule or procee first layer of propaganda." His report, "Policy, that we had here in tte acne te relating dure that we impose on ourselves it ts we Troops and the NATO Alliance?' though coy to the comprehensive 'nature of the here in the Senate and also in the House ering an oft-plowed field nonetheless star - budget resolution, But, I sin glad that who must make it work. tied specialists with is ireehnees and they did put in -a provision which allows Our task is far from complete, but I command. the budget committee to make the first am conftdent that we will carry it Ntum thinks tie Mansfield Amendment approach. could pro nee re 3111tS --Lowering the concurrent resolution more eomprehen- through. 'the measure before us today nuclear threshold, undermining the force- gives us a long wieder' tool to help ea- sive in the sound discretion. of the corn- reduction talks--that the, country wouldn't mittee. I believe that the committee, per- complish this budgetary discipline which like. He concluded his report with a call for haps not the first year but as ive move is so important to our Nation. the administration and Congress to find to along, will use that sound discretion in - Mr. MUSICLE. Mr. President. would gether "a, long-ran tar ice NATO stace that we making that resolution even more corn- the Senator yield? are willing to live with, politically, economi- prehensive than is abeolutely mandated Mr. NUNN. I will be glad to yield to the cally and militarily.' under the inal reeiort. Senator from Mahle. In pm suit of just such a joint long-term f stance, I also continue to believe, Mr. Presi- Mr. MUSKIE. Mr. President, I would Nunn then wrote three amendment-, to the basic military procurement bill. dent, that at some pot at we are going to like to take this opportunity to commend Nunn had alrirady, last year, joined wite have to come to grips with the (ice-called the distinguished junior Senator from Sen. Henry Jackson (D-le ash.), an acknowl- triggering provision. I do not guar- Georgia :for his contribution in the de- edged expert at leMslating policy by amend- rel with those who feel that it is a step velopment of the bill that is before we ments, to sponsor an amendment requiring that goes beyond what we should do at He was a member of Senator METCALFe the NATO allies to pick up a greater share of . this time. L perhaps, am also of that subcommittee. / was privileged to be a the cost of maintaining S troops in Europe or to face a reduction opinion now, although I have consistent- member as well. The distinguished Sena In US. troop commit- ments. 'That ameadment, almost everyone ly maintained that at some point we are tor and I did not always agree in our agrees, has beeii. extremely effective, where going to have to have a triggering votes on thie measure as it developed hi years of state Department entreaties had not, process which is necessary for full con- the subconunittee. But I must say that I The three new amendments were designed trol. Hopefully, we will not lose sight of was impressed with his ability to grasp to provide a constructive alternative to this and, particularly, I hope That the the complexities of the problem, to de& teanseeis.. one answering to the same world- Budget Committee does riot lose sight of with them, to develop viable ideas for weariness and the A ame ben fleece to update Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 Approved For Rqlease 2000/08/27 ? CIA-RDP75B00380R000600080003-9 S11241 June .?1, 1974 CONGRESSIONAL RECORD ? SENATE Amerieran policy but doing so in a way that would hot upset 'negotiations with the Rus- sians or unduly alarm the Allies. One amendment Makes it the sense of Congress that NATO support units (the Al- liance's notoriously long "tail") be cut by Mr) per cent in two Years, the men to be re- placed?if the administration chooses?by combat soldiers, ('teeth"). The second requires the-Pentagon for the first time to justify the numbers and pur- poaes of the outsized and unplanned U.S. force of 7000 "tactical" nuclear warheads in Europe. Sen. Stuart Symington (D-Mo.) had investigated this matter during the year but it took Nunn. with - his non-threatening Southern Mannei- tO move into it legisla- tively.. - The ;third amendment compels the Penta- gon to report on what it's doing to reduce the costs and the loss of combat effectiveness stemming from failure to standardize NATO equipment. Politically, these amendments have a broad appeal, promising more military efficiency to defense conservatives and greater civilian control and lower costa to defense liberals. Xdeologically, they are neutral. The Armed Services Com.mitteb endorsed them unani- mously, though House conferees' approval re- pains uncertain. In the 8enate debate on the Mansfield Amendment the other day, Nunn, who is a pleasant-looking soft-spoken fellow with a drawl, stood right up to the Majority Leader. He was well prepared. He had a folksy Georgia story about a preacher ready for a change of pace. Quite firmly, he managed to steer the whole debate away from the con- troversial ground of whether in general the United States should be doing more or less, into the smoother area of how specifically we ought to proceed. And, In a word, he Won. When / talked with Nunn about this a few days later he was sure, but self-effacing, pleased with his success while intent on saying nothing that could give umbrage to his Senate brethren. He is not one for de- bates on great issues. He thinks national security debates can and should be waged On the basis of what Is "effective and sen- sible." You must be armed with a good bit of background to get down to the quick," he added. ? What will Nunn be looking into next? Ills chairman Stennis wants him to get into per- sonnel, he said?it' takes 57 per Cent, by some counts 67 per cent, of the military budget. I found myself thinking: Go, Sam, We're watching. 1 Mr. MUSKIE. Mr. PreSideritjhe Sen- ator has now impressed: me With' respect to his work on the budget bill and with respect to his work in the Armed Serv- ices Committee, and / predict a promising future for him in the Senate. - Mr. NUNN. Mr. President, I tharik my colleague and friend from Maine. I will say many times during the course of this budgetary hearing, Which took hundreds and hundreds of hours, and which received very little attention froth either the public or the Media for a long time, the Senator from Maine and I did disagree on occasion. Many times, how- ever, I was persuaded by the fundament- ally sound logic that my colleague from Maine displayed. - I will have to confess that sometimes I kept arguing even after I was convinced he was probably correct. Mr. MUSKIE. It is a typical senatorial trait, I might say. The PRESIDING OFFICER. Who yields time? Mr. MANSHELD. Mr. President, may I say to the distinguished Senator from Maine and the distinguished Senator from Georgia that I had also intended to ask that the commentary which appeared in this morning's Washington Post en- titled "Senator Nunn's NATO Maneuver," written by Stephen S. Rosenfeld, be printed in the RECORD, because I think it is a commendatory and worthwhile article, and I wish to join the distin- guished Senator from Maine in all the kind words?and well deserved they were?which he had to say about the Senator from Georgia. I ask the Senator from Maine if he will allow me to have the privilege of 'joining with him in in- serting this commentary in the rtECORD. Mr. MUSKIE. I am proud to have the Senator join me in that request. Mr. NUNN. Mr. President, I think the majority leader, and I really would like to say in reply that I believe the major- ity leader has done as much as anyone I know to point out many of the real, le- gitimate frustrations that we in America have with our NATO allies. I believe the majority leader's work in this regard has contributed significantly to real move- ment within the alliance to address many of these legitimate grievances. I believe the alliance is moving now, and I believe much of that movement can be attrib- uted to the efforts of the majority leader In pointing these problems out. Although we did not agree on the conclusion, we did agree on many of the frustrations. I look forward to the opportunity to con- tinue to work with the majority leader, the Senator from Maine, and many oth- ers to move toward correcting many of these frustrations we do have in dealing with our NATO allies, because I think NATO remains an important part of our national security as well as the security of the NATO countries. Mr. MANSFIELD. There will be a con- tinuing effort, I assure the Senator. Mr. President, I ask unanimous con- sent that the vote on the conference re- port occur immediately after the vote on the Wheat Convention. THE PRESIDING OFFICER. Without objection, it is so ordered. M.r. MANSFIELD. Have the yeas and nays been ordered? THE PRESIDING OFFICER. The yeas and nays have been ordered. Who yields time? Mr. ROBERT C. BYRD. Mr. President, on behalf of the Senator from South Dakota (Mr. McGovEim), I yield 3 min- utes to the Senator from Maine. Mr. MUSKIE. Mr. President, I under- stand that while I was temporarily off the floor, there was some discussion about the makeup of the budget committees. I would like to endorse the view that the budget committees be as broadly based and representative as possible, and that we do not resort to the rule of seniority automatically to exclude from the committees younger members who have shown an interest in this legisla- tion and who offer the qualities of character and ability to carry that re- sponsibility. I know that this was the sense of much of trip discussion in :tile Committee on Government Operations as we considered the budget Committees, and I simply wanted to make this point on the Senate ? floor as we come to the closing moments of deliberation on this measure so that the record may be clear. I thank the distinguished majority whip for yielding to me. Mr. PACKWOOD. Mr. President, to- day, by joining in the House of Repre- sentative's overwhelming approval of the conference report on the Congres- sional Budget and Impoundment Control Act of 1974, the Senate will finally take the long-awaited step to inject con- gressional clisicpline into the budget- making process. Finally, the Congress of the United States will have shown long-overdue initiative in fiscal respon- sibility. At last we are not merely react- ing to intrusion or presidential encroach- ment, though lessons of the past have provided a compelling spur; instead we are methodically planning for the future. Congress is not delegating to the execu- tive; we are not farntically parrying off advances from the White House. Rather, the legislative branch of the Government is constructively and positively reorga- nizing to deal with the hard decisions of fiscal policy that we as a body have shirked and shunted for too long. Little more than 20 months ago the situation was reversed; then, the Sen- ate was considering an increase in the public debt ceiling and placing a limita- tion on expenditures. More importantly, the bill also carried a provision which would have in effect granted the Presi- tdieonnt. an item veto over any appropria- Above and beyond any past vote, had this measure passed with its grant of fis- cal discretion to the President it would have crippled Congress and given the Presidency unassailable power. Worse than the Tonkin Gulf Resolution, such a Provision would have enabled the Presi- dent to rule supreme, across-the-board, in foreign and domestic affairs. Thankfully, this extraordinary power was not granted to the President. The time has come when Congress must seize the reigns of leadership and place this Nation back on the path of fiscal re- sponsibility. Congress will never lead the Nation if it casts only a negative, defen- sive shadow, preventing Executive dic- tatorship but at the same time avoiding legislative leadership. It is a limbo of avoidance detrimental to this country's best interests. For if the Congress has lost its responsibility and sense of direc- tion, the public will eventually lose, too. The Congressional Budget and Im- poundment Control Act of 1974 reconsti- tutes Congress proper role in budget formulation By establishing a tight con- gressional budget timetable, by realining the fiscal year, by creating House and Senate budget committees, and by creat- ing a specialized Congressional Budget Office, we are providing the essential means for an effective legislative budget. Such action removes Congress from the budget policy dark ages, where we have softened from disuse over the years, and quite possibly might edge the budget nearer the black, which we have not wit- nessed in many a year of hardened def- icit spending. And so, Mr. President, I enthusiasti- cally support the conference report with Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 S 11242 CONGRESSIONAL RECORD ? SENATE Tulre only one cautionary thought. This legis- lation provides the necessaiy tools for reassertion of Congressional budget for- mulaticue, and as I said earner the first step is open to us, but the avenue ahead Is long and steep. We have bemoaned the abdication of congressional prerogatives to the Executive in the past, and now with the promise of budget reform we must Stick to our guns and we must have the resolve to follow through. It is high time we stopped the nacre mouthing of outrage at fiscal irresponsibility. We must bite the fiscal bullet and forge ahead. Mr. TOWER. Mr. President, I want to express my support for the conference report en the leidget reform bill. 'This legislation establishes some rational, mechanisms for the consideration of per- forming our constitutional duty with re- spect to the apwopriations process. BY enactimen definite time frame to consider overall vending limitations, the Con- gress velt be achieving the first step on the road back to respecto.bility. Our greatest fault in the eyes of the America people has been the haphazard way in which we Implement and modify the budget requests of the r'resident. I firmly believe that the low standing given to the Congress in the opinion palls is due primarily to this inability to act re- sponsibly on the Federal budget. The Conference report establishes a May 15 deadline for the consideration of authorization legislation. Consideration of authorizing legislation after that date could Mete occur upon the approval by the Senate of a waive from the rule, and in the Holise after the Rules Com- mittee adopted an emergency waiver. On February 5, I introduced Senate Resolu- tion 275 Which would have eeeablished a May 31 cutoff date f or the, consideration of authorization legislation. This resolu- tion was a product of stiong interest by the Republican Policy Committee in budget reform. Title X establishes a mechanism to deal with the question of impoundment. While I believe the President was forced to initiate impoundments due to oue in- ability to recognize our responsibility in keeping spending down, the procedure in the conference report is a reasonable one and in Iight of the questionable legality of the Impoundment action up to this time, title X should result in a more bal- anced and rational resolution of these problems. Mr. President, I applaud the work of those committees and their members who have worked so diligently on this legislation. The bill will prove to be of immense value to the Appropriations Committees which have been forced to fulfill their responsibilities under the most difficult Circumstances. As a co- sponsor of the Senate version of this budget reform bill, I want to record my strong endorsement of this legislation. At the same time, we should, all note that the legislation only establishes a proce- dural means to carry out our respon- sibilities. It will be up to each and every Member to work in a positive fashion to secure a policy of fiscal responsibility in the Congress. Mr. HATFIELD. Mr. President, this legislation Is a cornerstone in efforts to restore public trust and confidence in Congress. It Probably is the most impor- tant bill we have passed (lure:4 this Con- gress. The low estimation of Congress by the public stems in large Part from a recog- nition by People that Congress is too haphazard la its taxing and spending policies. Meaningful budget reform legis- tenon should instill greater responsibil- ity on Congress as a body to face up to our fiscal duties. Provisions of the bill controlling the President's ability to impound appropri- ated funds also should help restore a bet- ter balance between the executive and legislative branches of Government. I also want to pay tribute to the lead- ership role played by Oregon Congress- man AL ULLMAN in shaping this legisla- tion in the House of Representatives. I recall he was the chairman Of the com- mittee that studied this hydra headed problem, and he really gave a push to the final direction to the bill now before us. As a member of the Senate Rules Com- mittee, I was involved in our commit- tee's deliberations on this bill. I want to Pay tribute to the Senators who worked hard at this difficult task of Shaping the bill, andewlepse work helps Congress to- day take such au important step as we are doing in passing the budget reform bill. Mr. CANNON. Mr. President, the Sen- ate considers today the conference re- port on H.R. 7130, the Congressional Budget and Impoundment Control Act of 1974. The conference bill before you represents a compromise between the Senate's Congressional Budget Act of 1974, which. passed the Senate unani- mously on March 22, 1974, and the House of Representatives Budget and Im- poundment Act of 1073, which over- whelmingly Passed the House on Decem- ber 5, 1973. 1 am pleased to report to you that this compromise conference bill re- tains the flexible and workable frame- work for a eengressional budget process which was hammered out during the Rules and .Administration Committee's deliberations with the other standing committees of the Senate, under the able leadership of Senator ROBERT C. 13YRD, chairman of the Rules Committee's Sub- committee an Standard Rules of the Sen- ate. The conference bill further, provides a redrafted anti-Impoundment title which is acceptable to both the Senate and House managers of the conference. Senator Sete :ERVIN, who as chairman of the Senate Committee on Government Operations, has labored long and fruit- fully on the whole issue of congressional budget referm,, is to be commended again for his eloquent articulation of the sense of the Senate concerning the troublesome issue of Presidential im- poundment funds for statutorily author- ized Federal, State, and local programs. Mr. President, I urge support on the part of all Members of the Senate for the passage of this important act. The people of the United States are presently looking to their elected representatives in the Congress for national direction and for more effective control of the Fed- eral budget and the programs funded be 197;?, that budget?programs that ailed every aspect of 'their, and our, daily lives. Upon passage of this voinerenee bin, and -its Implementation over the next 2 years, the Congress will have a new opportun- ity to more effectively aenrt its vital con- stitutional role in eirecting the exPendi- tures of oar national resources toward a sound national economy, in providing a healthy and controlled rate of national growth, in curbing the inflation which robs us all of our h ird-earned resources. in insurirg a resteration of good. em- ployment 'etas, and. of great concern during the past several years, in the formulation of a Federal budget, bal- anced both to the needs of the people of this country, and to the proper level of Federal revenues. accomplishment of these tasks will require the sincere committment of each of us to the budget control report being considered today. Mr. President, as chairman of the Sen- ate Committee on Rules and Administra- tion, I take great elide in the role played by that committee and its staff in the legislative development of this crucial bill. In addition, the Senators, Repre- sentatives, and stiffs throughout the committees of both Rouse; are to be con- gratulated for the diligent and coopera- tive efforts which they displayed in bringing this measure to the point of en- actment. This has been a fine example of the Congress working at its hest: and to be a successful step forward in the congres- sional control of the Fderal budget proc- ess, more cooperative efforts of this magnitude will be required during the working out of the provisions in the con- gressional Budget and Impoundment Control Act of 19'14. Mr. PERCY. Mr. President, the senior Senator from Ohio (Mr. TAFT), Who Is necessarily absent, hes contributed im- portantly to the buiget reform bill now before us. He has reeuested that I submit. a statement for him. Accordingly, I ask unanimous consent to have his state- ment printed in the RECORD. The PRESIDING OFFICER. Without objection, it is so ordered. STATEBEENT w SAMATOR TAIT It gives me great rleasure to have before he for debete the co iference report on the Congressional Budget and Impdundment Control act of 1014. I believe that this legis- lation conceivably could become the 11108t significant bill to be debated and passed by the 98d Coe gress. It is potentially one of the most important bills to corae before us in years. At this point I we- rid Illw to empress my appreciation to the conferees for carrying out their promise to reconsider section 606 of the Senate bill, in eonneotion with my amendment to retain the off- audget status of the Federal Financing Bank. I note that this amendment in effect it,?s been accepted. This assures that the Bank will carry out its desig- nated function which will save the taxpayers many millicns of dollars of interest expense, The need fOr budget control legislation has long been obvious No properly run busi- ness in the Nation considers each proposed expenditure piecemea , independently of a careful assessment of total expenditure de- mands and revenues available. No properly rum business with verb g inveetment concerns fails to assess whether Its Lnvostment In each concern relative to the rest reflects the pri- orities it deems most beneficial for Its in- Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 'June 2pp4'oved For REt149ArglitiMpNg7REgaiRDFORE111380R00060008000%-?1243 terests..Yet, Congress has continued to op- erate our Ooyernnt, ine in Which our tax- payers have fel' more money invested than in any corporation, in a Manner which allows expenditures to be agreed-up:4n without con- sideration,Of either...their effect upon the total budget picture Or their relationship to Con- gress -settle Of national priorities. , The Iegisletion before -us Would provide a structure or elleVietini,theeeprObleme. loor the first time, ft would provide a reg-61er con- gressional frainetvork fefri debating national priorities, rather than only the merits of individual proposals. It Would also provide a procedure for consideration of overall reve- nue and expenditure and to some ex- , . . tent, the relationship of individual proposals to these levels and. the priorities agreed upon. / welcome in particular the bill's new controls on 'backdoor spending," such as contract authority and "mandatory entitle- ment" bills. //mini the past 5 fiscal years. Congress has cut the adininistration's appro- priations requests by about $30 billion. pidw- eve.1', during this same period.. Congress ap- proved In bills' other then appropriation bills?Or 'cbackdoor. Spending"'?amounte in excess of $30 billion inorithen the adminis- tration's budget estimates. I would be remisa?if I did net mention my doubts about theMechs441 01 this bilL,T,Iie proposed timetable for considering the budg- et is strict and I rei.414 cop corned the early deadline for reporting of all legisla- tion contining authorizations, as well as. the expectation that all revenue, entitlement and "controllable" appropriations bills could be enacted in even the lengthened time period agreed upon by the conferees. The time periods between receipt by the Congressional Office on the audget, of information from all authorizing coinrnittees; its report ta Con- gress on the budget; and reporting of a reso- lution proposing appropriate 'budget levels by the budget committees, remain very short, while the period allowed near the end of the fiscal year for budget reconciliation measures may prove so short that it IS unrealistic._ This bill is nevertheless. a major firet step toward more responsible congressional aetlem 101 on the budget. We must keep in mind, how- evet-that it Is only a first step. The intended effect af any procedures we set up, including these procedures, can be nullified or com- promised, on any issue if the will Is there to do So. Effective budget reform will follow this procedural reform only to the extent it is accompanied by increased "budget con- sclotisne,ss" by individual Congressmen and Senators, ftg reflected in the specific actions of future Congresses. The PRESIDING OFFICER. On Whose time? Mr. ROBERT C. BYRD. Mr. President, ask unanimous consent that the time for the quorum call not be charged to either side. The PRESIDING OFFICER. Without objection, it is so ordered. The clerk will call the roll, e third assistant legislative clerk p ceded to call the rolL CURTIS. Mr. President, / ask una ous consent that the order for the q rum call be rescinded. The PRESIDING OFFICER (Mr. Ci?sars). Without objection, it Is so or- dered. How m himself? Mr. C utes. The PP. Senator fr for 10 minutes. Mr. CTJRTIS. the bill that will for our farmers losses in the catt said, let me say t support the bill now As the Washingto June 19 editorial: The fundamental equill um of American agriculture has been destr and the busi- ness of breeding and rals cattle for the market, never a safe ente has sud- denly become spectacularly ky. , . h time does the Senator yield IS. I yield myself 10 min- Dr: oc, D ING OFFICER. The Nebraska is recognized r. President, President, I support vide some financing have suffered great ndustry. As I have I wholeheartedly fore the Senate. oat stated in a Mr. President, I have ne tho the editorial writers of that ws ? to be particularly perceptive, o er, this sentence I have just read esses very succinctly the plight of stock producers today. The editorial points out t th d swings in prices the p year ve turned the cattle busin nd, I ii add, the entire livestoc d poultry dustry, "into an into bly dangero speculation." The bill now pe ng, Mr. President, will allow the mo fficient producers of livestock to re in business until the upply-deman. situation comes back nto line an Ices stabilize, The lea arantee program provided In this bi ill allow private lenders to make lo term loans to livestock pro- ducer order to allow them to recover from disastrous losses sustained dur- ing ent months. These loans will be SI at the market rate of interest and to individuals who depend Primar- upon the receipts from agricultural roduction for their livelihood. Mr. President, I understand the con- cerns of those who fear that adoption of this legislation will set a precedent. I would share their concern were it not for the fact that Government actions pre- cipitated the destruction of fundamental equilibrium of the livestock industry. haposition of the 90-day freeze On meat prices last summer was the be- ginning of the end for many producers and will mean the bankruptcy of many others unless the pending bill is adopted. The biological cycle has been discussed previously and the effect that any reduc- tion in the number of breeding animals will have on the long-range supply of EMERGENCY FINANCING FOR LIVESTOCK PRODUCERS Mr. MANSFIELD. Mr. President, I ask unanimous consent that the Senate pro- ceed to the consideration of Calendar No. 920, S. 3679, that it be made the pend- ing business until the hour of 1:30 Pin today, and that following the two votes the Senate return. to the consideratio of S. 3679 if necessary. -1 The PRESIDING OFFICER. Th will be stated by title. The assistant legislative clerk follows ? A bill (a- 3679) to Prov.Icle e naming ft' livestock produce 8.8 gency fi? The PRESIDING OPTICR. Is there objection to the request the Senator from Montana? There being no ob tion. the Senate prodeeded to conside he bill. of ? Mr. MANS Mr, President, I suggest the absence of a quorum., 0 beef, pork, poultry, milk and eggs. Credit must be available to allow producers to remain in business if we are to prevent shortages and higher prices in coming months. Mr. President, I have always been an advocate. if the free enterprise system and minimum Government interference in our economy. However, the Govern- ment did become involved in the econ- omy in the form of price and wage con- trols. Under this circumstance, I do not believe it unreasonable for the Govern- ment to provide loan guarantees to th producers who have been driven to wall as a result of this Governme tion. Anyone who reads the new rs Or listens to radio and televisio i. as heard about the $100 to $200 pe cad losses on beef cattle sold in rece ? onths. Tes- timony before the Corn. ttee on Agri- culture and Forestry - revealed losses of more than $60 in the past 6 months on one fa farming operation in Nebraska. As one prod rs has stated: To sum it up, it seems to me that as a result of in adverse publicity and public misunde ding of the economic problems of the e industry, the people who have taken required risks will end up losing their vestments as will the banks that I. us far so generously backed them. In nd the public will be the losers because one will be willing to risk their monetary ? d personal effort resources against such high odds. Would you? Mr. President, S. 3679 is one way that the Government can assist producers and consumers with very little risk that the taxpayer will be required to pay a dime for some assurance that a plentiful sup- ply of- beef, pork, dairy products, poultry and eggs will remain available. Mr. President, let me stress again that the primary factor in creating the dis- astrous situation in the cattle Industry was the placing of price ceilings on beef. It was a mistake to put the ceilings on. t was a greater mistake for the Cost Living Council to stubbornly hang on hang on and refuse to remove those gs at a time when everyone knowl- ble about agriculture had told is one of the basic problems. e other factors which: ave con- o the losses sustained by our ed the t was a mistake. Th There tribute cattlem The pe so written people wh agriculture culture for t to bail out th any other In' cattle feeding proposal intended of fact, there is a amount of the loan. loan is geared to past not exceed that. The limit of $1 million. The proposed had a limit of $2 have no objection if this duced to $500,000. It is not in will not bail out the nonfarm in a feeding operation. And tha ng bill, as I have stated, is t its benefits will go to the re primarily engaged in who depend upon agri- living. It is not a bill Wall Street farmer or who has invested in a rprise. It is not a o that. As a matter ofold limit on the e amount of the rations. It can- also a dollar I originally 000. I would were re- nded and investor right. A report has come to me that one feed- Approved For Release 2000/08/27 : CIA-RDP75)300380R000600080003-9 Approved For Release 2000/08/27 : CIA-RDP751300380R000600080003-9 S 11244 CONGRESSIONAL RECORD SENATE _htne .2'1, 1974 ing operation in a State other than mine lost $44 million. That operation was fl- nanc by sophisticated and knowl- edge people of. no doubt, great wealth it is in the interest of evei y- one, co tiers, cattle feeders, ranchers everywhe that. the ordinarily stable agriculture oduction of cattle will go on. Is it in t interests of banks and all businesses on in Street thee this bill be passed. Mr. President, ask unanimous con- sent that the foil i ing staff mem be:s of the Committee on riculture and Por- estry be permitted i privilege of the floor during debate d any vote; on S. 3679: Forest W. e, Jr., C. M. Mouser, Henry Casso, CarL P. Rose. The PRESIDING 0 Without objection, it is so ordered. Mr. YOUNG. Mr. Presi will the Senator yield? Mr. Cu rt,TLS. I am hapne to 4d. How much time does the Senator do e? Mr. YOUNG. Three minutes o nin- utes. Mr. CURTIS. Mr. President, I yiel( Senator 5 minutes. Mr. YOUNG. Mr. President, this very important piece of legislation to the cattle producers as well as the con- sumers. Cattlemen, especially the feed- ers, are in deep financial troulae, to the extent that many of them will be going out of business unless they tan get some financial assistance suet. as this bill would provide. Many will cut down their operations, anyway. They will have to, because they have lost so much inorme. These loans will tend to keep more of them in busi- ness and give some assurance to con- sumers that they will have better sureell available to them in the fueure would otherwise be possible without legislation at all. These loans are at ular commercial rates. Mr. President, I commend the itor from Nebraska for a very fine s nent. I join him in what he has said 1; this bill. It is a very important piec f The PRESIDING 0 Who yields time? Mr. MANSFIELD. Mr. P kin, on. be- half of the distingutshe enator from South Daicota (Mr. toy see), the chairman of the su it tee which held hearings, I yiel minutes to the Senator from So Dakota (Mr. Asotraezie), Mr. Al3OUltEZ Mr. President, first, I congratulate i ollea,gue from South Dakota, the s Senator (Mr. Mc- GoveeN) , for t eadersh p he has taken on this issue, ich is so critical not only to the peopl f South Dakota but also to all peopl roughout the country. If we can do ything to preserve the do- mestic liv ck industry bsr way of pro- viding or so that they do not g o under in this serious time, we will have done a vice not only for the livestock Peopl t only for the people of South Dako hernselves, but also for all con- sum i throughout the United States of ca. . President, the reason why that cular statement is applicable, and rtantly so, is that if the livestock Industry is allowed to go under because of a manipulation of prices, because a the serious defects in the market situa- Um, in a year or two there may be a tre- mendous shortage of beef. If consumers think the prices of beef are high now, wait until there is a tremendous short- age, when people have culled their herds and have stopped producing beef. There will be a shortage. There will be a near monopoly situation, with just a few large feeders- and packers controlling the situa- tion, who will then charge as much as the traffic will bear, to say nothing of the in crease in prices because of a shor created as a result of what is ha lathe livestock industry this year Mr. President, the majority ese people are small farmers a small ranchers. They do not dese e eco- nomic treatment they are g Therefore, I congratul i senior colleague from South D , the other members of the commi and the peo- ple from agricultur tes who have worked in this reg try to preserve the livestock Indus The PRESID OFFICER (Mr. MANSFIELD). senior Senator from South Dakota enized. (At this pc Mr. ABOUREZR assumed Chair.) . Mc ERN. Mr. President, I yield f5 utes. g time now, those of us who have p interest in agriculture have been e of the fact that the great live k ctor of our agricultural plant dly rt economically. think t beginning roughly at ober the lapse of livestock prices ecting cattl ogs. poultry, and non- dairy products, been one of the most painful and Ira tic exeriences that the livetock Indust). ,has known in many years. The normal stabilit sappeared from this complex producti and marketing operation due to a host o asOns. These have been stated e and time again on the floor of this ate. Suffice it to say, however, that the s es a jolts hitting the livestock sector ve pre- vented a return to normalcy. As a result, producers of lives k are faced with imminent disaster. I had the privilege of chairing', he hearings on the legislation that is Pending before us. Hearings were held during January b the comimttee in Iowa. In March, addi- tional hearings were held in Washington. And finally on Monday, June 17, 1974, my subcommittee held an emergency hearing on a loan guarantee program for the hard-hit livestock sector of our agri- cultural economy. Pour bills were before the committee. all with the same objective. S. 3597 in- troduced by Senator CURTIS and others; S. 3605 introduced by Senator MONTOYA and others; S. 3606 introduced by my- self, Senator ADOURL:aC, and others; and S. 3624 by Senator DOLE. During the course of our subcommittee hearings we listened to the reactions with respect to these four proposals, and to other suggestions that were made by knowledgeable people in the field. Then the committee drafted a composite bill g. I think, represents the best of these four measur to which I have re- "erred. During the e committee sibout the by all ? dairy ? Th tha Jo, of the hearings, the eramatic testimony ting lossen experienced ed in producing livestock, cts, poultry, and eggs. committee, therefore, resolved ediate action be taken on the guarantee legielaeion pending be- lt. Arid on Wednesday, June 19, 74, the full conunittee approved a bill, 3679; which is now before the Senate. The bill being reported by the coim- in Eseablishes a temporary guar- anteed loan program to,a.ssist bona fide farmers and ranchers--ineluding oper- ators of feedlots?who are primarily en- gaged in agricultural production for the purpose of breeding, raising, fattening, or marketing beef cattle, dairy cattle, swine, chickens, turkeys, or the products thereof. Second. Requires the Secretary of Agriculture to guarantee up to 90 Per- cent of loans made by any Federal or State chartered lending agency or other approved lender. The guarantee would be applicable to new loans and loans made to refinance existing indebtedness where absolutely essential in order for the farmer or rancher to remain in busi- ness. Third. Provides that the borrower must be unable to obtain financing in lthe absence of the guarantee authorized by the bill. Fourth. Provides that, guaranteed loans must be repayable in not more than 7 years, but may be renewed for not more than 5 ad.ditional years. Fifth. Provides that the Interest rate under guaranteed loans shall be a rate to be agreed upon by the lender and borrower. There is no subsidized interest rate M. this legislation. One witness after an- other who testified said that they were not interested in a subsidy; they were simply interested in a formula being es- tablished, under which they could get emergency credit. They tire willing to pay the going interest rate to pay off their loans I think this legislation is ab- solutely essential toward that end. The authority to goerantee loans would expire 1 year from the date of enactment of the bet However, the pro- m could be extended for an addi- al 6 months if .he Secretary deter- d that continued guarantees were nec ry. It particularly important to note that t 'oill conteins no subsidies of ny kin It is a ight gauranteed loan pro- gram with rest charges set at com- petitive open kct rate;. Guarantees ap to 90 perceot of the total loan and re,t charges.' are at such rates as ag to by lenders and borrowers. Loans are to be e to bona fide farmers ar.d ranchers, uding the op- erators of feed lots, w re primarily engaged in the productioi livestock, poultry and the products eof. It is not the Intent of the commi ee to tiro- Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 6/24/74 Following buckslip was sent to IC, Compt, OF, DDM&S, DDS&T, DDI House passed conference report on H.R. 7130, Congressional Budget Reform Act, by overruling vote. Similar Senate action should follow, clearing the measure for signing into law. Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 Approved For Release 2000/08/27 : CIA-RbP75B00380R000600080003-9 June 18, 1974 CONGRESSIONAL RECORD HOUSE gust adjournmerit;The conference agree- ment, ? ecause of other changes in the timetae ? dates, set the deadline on the seventh y after Labor Day, with pro- visions fo waiver of that deadline if necessary. ce the date finally agreed upon is not etwetn the dates in the House and Se te passed versions, it can be argued that is new date is beyond the scope of c Terence. In order to avoid a problem, waiver is recom- mended for this pro ion. The third provisio ecnfiring a waiver Is section 607 of the nference report which deals with year a requests for an authorization of new dget author- ity. No Similar provision in either the House or Senate bills. The fourth proVision requi a waiv- er is title X. This title deals ith the subject Of impoundment. The nfer- ence agreement provides a specific oce- dure for the handling of rescissli of budget authority. Such a procedure s contemplated under the Senate b however, it was not spelled out. The con ference agreement specifies the proce- dure, and therefore, in order to be on the safe side, a waiver is recommended for this provision. Mr. Speaker, I support the rule, so that the House may proceed to consider the conference report on the Congres- sional Budget and Impoundment Con- trol Act, which in my judgment is one of the most important pieces of legislation that this body has considered in the last 50 years. , Mr. BOLLING. Mr. 'Speaker, I yield =h time as hemay consume to the gen- tleman from Mississippi (Mr. -WHITTEN) . (Mr. WHITTEN asked and was given perniission to revise and extend his re- marks.) Mr. WHITTEN. Mr. Speaker, when this Mea of having a congressional budget atnitrul first came up, and When it wa anthorized In legislation offered by Mend and colleague, the Igentleman fr Oregon Mr. theautia) and even when we created the Joint study co it- tee, few believed we would ever re the stage at which we arrive today. VVe are ready to pass the Con ssional and Impoundment Control A antici- pate that the vote Will be radically im an im ous. Mr. speaker, I take ime to con- gratulate the Committee in Rules, and articu1arl3r the gentle an from -Mis- souri,"Hon. Dime Bow, , and our friend, the gentleman from N raska, lion. DAVE MARTIN for the won rful job they have done in seeing thr h to a finish the views and viewpo of the entire mem- bership of theS gress. I recall very idly the first organiza- tional meetin f the joint study com- mittee of wh I had the honor later to be named hairman, along with my friend and league, the gentleman from Oregon ( theeeAri). From at time down to today there have b many, many meetings, and many fferences of opinion expressed, but I k that the course we have fel- lowe , and the many general agreements rea ed at each successive stage is unique in e history of the Congress. I do not b leve that there has been any sUbStan- tial disagreement on the necessity to get together for affirmative action, to set up a system to better provide for stability. On the joint study committee all 32 merebers were in agreement on the re- port. 'We were unanimous in introducing the first bill. The bill, somewhat modified, came out of the Committee on Rules unanimously. This is particularly impressive consider- ing the many diverse points of view, lib- eral, conservative, members from North and South, from East and West. Now we fine these efforts brought together in the bill before us which I understand was re- ported back by the conferees unani- mously. To me this means that the conditions we face are so very apparent that eve one agrees we must take action. The before us is not all I would like it e. I wish I could say it would get d of the $500 billion debt that we ave. I wish I could say it would do ay with deficit spending. I wish th it would result in cutting back a nu er of pro- ams?and it may or it not?but I lieve that when ther is this much nimity in trying to ach our objec- ti and that much eement to bring us ? ill that we ye now, that this carte y speaks w for the general un- dente ng of financial condition and fisc prob s. It also speaks well for this c m ee in ironing out the dif- ferences the other body, and in providing age that we all under- stand, la that will let us, as the Congres the American people, Who ju e us sngressmen, be aware each d every r of the money we ha oming in an the money that is goi out, so that we n vote with both wen, -and attem o hold the line. vlsh that we could ke this retro- ctive, but we cannot unr many of the actions That have occurre n. the past but every step provided fo this bill is a step in the right directi It is true that time may s w that we need to improve this, or chan that, but at least we are off to a goo art. I want to thank my colleagues, r- ticularly those on the Committee Rules, for ironing out the final d ' with the other body, because Mr. Speaker we end up with about DO percent of wha we started out with, and that is quite a large degree of success. Whatever its defect, I think that this action today marks the beginning of a new day. Later in the discussion on the bill I shall go into more detail about the bill's provisions. I take this time again to thank all who have contributed. I believe we are going to find Congress itself is going to be practically unanimous in recognizing that we must take? this step foi ward. Mr. MARTIN of Nebraska. Mr. Speak- er, I yield 1 minute to the gentleman from New York (Mr. Cosnome). (Mr. CONABLE asked and was given permission to revise a,nd extend his re- marks.) Mr. CONABLE. Mr. Speaker, I rise in strong support of this conference report and the rule that brings it to the floor. I do not expect this measure to be either the millennium or a panaceabuit a needed 11 5175 discipline that will help us face to our responsibilities as fisc/ man of the Government. I hope that t 11 to gov- ern will follow the adopti of this meas- ure and will be great l anced by the discipline it provides less we are will- ing to make these gh, priority-setting decisions of go nment from which we have shrun the past, no procedure of this sort avail us. I am confident that its a tion today, however, will signal provement of our fiscal in- tentio Mr er, ARTIN of Nebraska.. Mr. Speak- ield such time as he may consume e gentleman from California (Mr. Tres). (Mr. PETTIS asked and was given per- mission to revise and extend his re- marks.) Mr. PETTIS. Mr. Speaker, contro- versy over a budget-spending ceiling and Presidential impoundments during 1972 led to the creation of a Joint Committee on Budget Control to devise a mechanism for improving congressional controls over budget outlays and receipts. The rec- ommendations of that committee were considered and modified by the House Rules Committee in the course of draft- ing H.R. 7130. The House bill created a 23-member Budget Committee to recom- mend annual budget outlays, revenue levels and other spending policies, and established a step-by-step procedure for consideration of the budget. The fiscal year was also moved up to October 1 and certain controls were placed on the use of impoundments. H.R. 71-30 passed the House by a vote of 386 to 23 on December 5, 1973, with one amendment extending by 10 days the lay- over period before a budget resolution could be considered on the floor. An amended version, passed the Senate on March 22 and conference meetings were held on April 9 and June 5. The measure agreed to by conferees retains many of the provisions of the House bill. The budget consideration procedures in the two versions were similar in many respects, but differed with respect to deadlines for completion of certain actions. The impoundment- control provisions are a synthesis of House and Senate bills. I support this legislation because I eve it is our only hope for a balanced b et. GENERAL LEAVE ()LUNG. Mr. Speaker, I ask unani us consent that all Members Mity ha 5 legislative days in which to revise an tend their remarks on House Resolution 71. I also ask unanimous consent tha U Members may have 5 legislative da in which to revise and extend their r rks on the conference report on the bi .R. 7130. The SPEAKER. there objection to the request of the itleman from Mis- souri? There was no object Mr. BOLLING. Mr. ker, I move the previous question on resolution. The previous question wa dered. The resolution was agreed A motion to reconsider was 1 on the table. Approved For Release 2000/08/27 : 'CIA-RDP751300380R000600080003-9 Approved For Release 2000/08/27 :-CIA-RDP751300380R0 11 5180 CONGRESSIONAL RECORD ? HOUSE PERMISSION FOR COMMITTEE C)N RULES TO FILE PRIVILEGED RE- PORTS Mr. BOILING. Mr. Speaker. I ask unanimotie consent that the Committee on Rules May have until midnight to- night to file certain privileged reports. The SPEAKER. Is there objection to the request of the gentleman from Mis- souri? There was no objection. CONFERENCE REPORT ON H.R. 7130, CONGRESSIONAL BUDGET AND IMPOUNDMENT CONTROL ACT OF 1974 Mr. BOLLING. Mr. Speaker, I ask unanimous consent for the immediate consideration of the conference report on the bill (H.R. 7130) to improve con- gressional control over budgetary outlay and receipt totals, to provide for a Legis- lative Budget Office, to est eblisla a pro- cedure providing congressional control over the impoundment of funds by the executive branch, and for other purposes. The Clerk read the title of the bill. The SPEAKER. Is' ehere objection to the request of the gentleman from Mis- souri? There was no objection. Mr. BOILING. Mr. Speaker, I ask unanimous consent that the statement of the managers be read in lieu of the report. The SPEAKER. Is there objection to the request of the gentleman from Mis- souri? There was no objection. The Clerk read the statement. (For conference report and statement see proceedings of the House of June n, 1974.) Mr. BOLLING (during the reading). Mr. Speaker, I ask unanimous consent that further reading of the statement of the managers be dispensed with and that it be printed in the Recoite. The SPEAKER. Is there objection to the request of the gentleman from Mis- souri? There was no objection. The SPEAKER. 'The gentleman from Missouri (Mr. Boaanie) will be recog- nized for 30 minutes, and the gentleman from Nebraska (Mr. MARTIN t Will be recognized for 30 minutes. The Chair recognizes the gentleman from Missouri. Mr. BOILING. Mr. Speaker, rather than go into a lengthy, detailed explana- tion of this matter, I am going to do the same thing that I did when we first con- sidered budget and impoundment control in December of last year in. the House. I got unanimous consent for all Members to revise and extend their remarks. Under that general leave I am going to put in an outline of the salient features as the first item of my insertion, and then a statement which describes thene in greater detail than does the outline. in effect, this gives to the Members an outline, a relatively brief statement, and then the statement of the managers, which is rather detailed. Mr. Speaker, the outline and my sta te- inent croeteee I. BUDGET COMMITTEES AND CONGRESSION A L BUDGET OI FICE 23-member Rouse Budget Committee, exactly as in House bill. Rotating member- ship with 5 each from Appropriations and Ways & Means; 2 from leaderships; and 11 at large. congressional Budget Office with Director appointed by Speaker and President pro tern with recommendations ''rom Budget Com- mittees. Director has 4-year term and can be removed by House or Semite. Congressional. Budget Office main respon- sibility to Budget Committees. Also to give very high priority to Appropriations and tax Committees. Assistance to all other com- mittees and Members also provided. 2 TIMETA BLE, OF BUDGET PROCESS Congress has to move to advance author- izations for process to work most effectively. Section 607 requires President to propose advance authorizations. Current services budget by November 10 each year; no change in date for January submission of regular budget. Each standing committee to give Budget Committee its view and recommendations on budget matters by March 15; CBO report to Budget Committees by April 1; first budget resolution reported by April 15. May 15 adoption date for first budget resolution. Also deadline for committee re- porting of authorizing legislation. Regular consideration of appropriation bills completed by early September. Then second budget resolution and reconciliation actions. Si BUDGET atsonensores AND RECONCILIATION PROCESS Spring budget :resolution is a target; Fall budget resolution is a ceiling. Congress can adopt additional budget resolutions, but all revenue andspe tiding must be in accord with latest resolution. Budget resolutions deal with macro- economic matters and broad functional al- locations. More detailed spending informa- tion in conunittee reports. Procedure in bile for relating functional allocations to jurisdic- tions of committees and subcommittees. Revenue, spending, debt, and entitlement legislation cannot be considered before first budget resolution. Doesn't apply to advance revenues and advance appropriations. 4. ENTTELEME NMI AND BACKDOOR SPENDING Special procedures apply only to new back- doors. Do not apply to social security or to 90 percent self-financed trust funds. Status of general revenue sharing deferred to future legislation. Contract and borrowing authority to be effective only as funding is provided in ap- propriations. Entitlements to be referred to Appropria- tions Committee with opportunity for amendment (le-day time Limit) prior to floor consideration. Applies only if entitle- ment is in excess of level in budget resolu- tion. Entitlements cannot be considered before adoption of first budget resolution and (ex- cept exempt ones) cannot become effective before start of next fiscal year. a. IMPOUNDMENT CONTROL Combines features of House and Senate bills to provide more effective and compre- hensive controls. Amends Antideficiency Act to eliminate its use for policy impoundments. Recissfons propesed by President must ter- minate unless approved by both Rouses of Congress within 45 days. Deferrals proposed by President must cease if disapproved by either the House or Senate. Monthly reports by President on Rescis- sions, Reserves and Deferrals plus reports by 80003-9 June 18, 1974 Comptroller General if President has failed to leptu I. action. Comptroller General Suits to enfon3e con- gressional widen, but with 25-day 'waiting pealed and notification of Spe titer of House and President of the Serrate. Sersereasetsr For more than a year, a succession of com- mittees has worked to devise a Congressional budget process that can restore meaningful spending control to the legislative branch. The effort began with the Joint Study Com- mittee on Budget Control whish was estab- lished in 1972 and issued its final report in April 1973. Although the Joins Study Com- mittee set the overall framework for budget reform legislation, it provided a rigid an d probably unworkable set of procedures. The Study Committee's plan did net contain any provision for taming the prootivities of the President to impound funds sightfully ap- propriated by Congress. Following extensive beatings by the Rules Committee, tee House passed an anti-im- poundment bill in July 1973, and comprehen- sive budget and impoundment control legis- lation in December. After Senate action or) companion legislation in March of this year, Rouse and senate conferees formulated an agreement which combines balanced sand re- alistic budget reform anti impoundment con- trol into a cohesive and consistent budget process. I hope that this measure will be enacted and that its niplementation still begin during this seseio a of Congress. These first steps have been difficult enough, but the hard part of budget reorre is yet to begin. This legislation is only the beginning for it will not be an easy or painless task to weld the fragmentary spoticling procedures of Congress into a comprehensive and .eoordis netted budget process. It will not be easy to adhere to the carefully tuned timetable fixed in this legislation. It will not be easy to re- sist the temptation for new forms of back- door spending which evade osie own appro- priations machinery. It will not be easy to reconcile individual spending decisions with our overall budget determinations. Yet I am ea/winced that the methods in- corporated in this conference report can be made to work. They car return to Congress the power and responsibility of the purse. They can put end to illicit Impoundments of appropriated funds without crippling the capability of the President to manage the federal bureaucracy. They can provide a mechanism for the determination of macro- economic policy by Congress and for the set- ting of appropriate budget levels in the light of current economic conditions No one can foretell exactly low the new congressional budget process w.0 operate. It will require discipline and toughness to change the comfortable practices of the past. The pending enactment of this legislation offers encouragement that Congress is will- ing to make the effort. U this is true, effective congressional budget control soon will be a reality. do not consider It necessary to review every detail of thie legislation. There is an ample legislative record and the conference agreement adheres it its important features to the legislation approved by the House last December. I will conceritrete on the more salient and difficult portions of the bill and explain the major decisions mule in confer- ence. BUDGET COMMTFFEE S AND STAFFS Throughout the period that this legisla- tion has been under coneideratim, there has been recognition of the need for new budget committees and for a congrtssional budget staff. The main issues have related to the composition of the committees and Vim re- sponsibilities of the budget stall. The conference agreement strictly adheres to the decisions voted by the House last De- Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 Approved For Release 2000108/21: CIA-RDP751300380R000600080003-9 June 18, 1974 CONGRESSIONAL RECORD ?HOUSE H 5181 comber concerning the composition of the House Conamittee on the Budget. This 23- member committee will draw (in accord with prescribed quotas) from the Appropriations and the Ways and 'Means Committees, the membership at large, and the majority and minority leaderships. My initial preference was that the Budget Committees have no staff of their own but -that they utilize the new budget office which would be chartered to serve both of these committees and to assist other committees and Members. The Senate conferees took the position that the Senate Budget Committee must be given the status of a regular stand- ing committee in matters of staffing. Accord- ingly, it is appropriate that the House Budg- et Committee have a staff of its own. The bill establishes a Congressional Budg- et Office with a Director appointed by the SPealcer and the President pro tempore after considering the recommendations of the House and Senate Budget. Committee. The conference agreements sets forth the prior- ities which are to guide the Budget Office in its assistance to Committees and Mem- bers. The priority responsibility of the Budg- et Office must be to the two new Budget Committees whose function it will be to superintend the congressional budget proc- ess. Assistance to the Budget Committees shall include the development of budgetary information, analytic studies, assignment of personnel, and annual reports by'the Budget Office to the Committees on fiscal policy and national budget priorities. The Managers' statement expresses the clear intent of this legislation that the Budget Committees have first claim on the resources of the new Budg- et Office. Very high priority must be given to the two Appropriations Committees and to the House Ways and Means and Senate Finance Committees. The jurisdictions of these com- mittees are closely related to the congres- sional budget process, and at the request of these committees, the Budget Office is to furnish information and staff assistance. Assistance also is .to be rendered to other congressional committees, primarily in the form of available information and Budget Office discretion to provide staff on a tem- porary basis. Finally, assistance may be given to Members with respect to available budget information. The House conferees have been very deter- mined to avoid the creatiort., of a large and duplicate agency within Congress. Accord- ingly, the bill provides and the Managers' statement emphasizes that the Congressional Budget Office is to utilize the resources and capabilities of existing congressional agen- Mes. It is anticipated that the Budget Office will coordinate its work with the GAO, the Library of Congress, and the Office of Tech- nology Assessment. TIMETABLE OF THE CONGRESSIONAL BUDGET PROCESS Extended and careful consideration has been given to the formulation of a budget timetable that harmonizes the many differ- ent phases of the budget process. Questions of timing have proven to be among the most difficult and sensitive and it is with con- siderable satisfaction. that I report an accom- Modation which will allow an adequate amount of time for each stage as well as completion of the proeess before the fiscal year starts. Simply stated, the problem is that even with a shift in the start of the fiscal year to October 1, there Is only a limited amount of time within which to complete the sev- eral stages of the budget process. Programs must be authorized; an initial budget reso- lution adopted; funds appropriated; and the final budget re:conciliation aproved. The var- ious parts a the process are interdepen- dent: appropriations cannot be voted until all relevant programs have been authorized; the budget reconciliation cannot be com- pleted until the spending bills have been approved. A delay at one stage of the process can prevent the successful completion of ensuing parts of the process. I am convinced that the most sensible? and in the long run, necessary?solution would be the enactment of authorizing leg- islation in the year before the appropriations are made. If this were done, Congress would be able to proceed to early consideration of appropriation bills and the dismal practice of continuing resolutions would be ended. The conference bill moves in the direction of advance authorizations by requiring the President to submit requests for new au- thorizations in the calendar year prior to the one in which they are to take effect. The bill also calls for a study of the desirability and feasibility of advance appropriations. To encourage the early commencement of the annual congressional budget process, the bill provides that by November 10 of each year, ihe President shall submit a current services budget to Congress?an estimate of the costs of continuing government programs during the next fiscal year without any pol- icy changes. This "preliminary" estimate would be followed by submission of the reg- ular budget in January, shortly after Con- gress convenes. Standing committees of the House and Senate would have approximately two months?until March 15?to prepare their views and estimates on budget matters with- in their jurisdiction and to transmit these to the Budget Committees. The conference bill mandates these reports by standing com- mittees in the expectation that the budget process will function more effectively if all relevant factors are known prior to adoption of the first budget resolution. May 15 is set as the deadline for approval of this budget resolution. Prior to this date, Congress may not consider any spending, revenue, debt, or entitlement legislation (ex- cept for advance revenues and expenditures.) The ban against prior consideration of these bills will enhance the status and meaning of the first budget resolution. As it takes up individual entitlement, spending, or tax bills, Congress will be able to compare them to the targets fixed in its initial budget resolution. May 15 also is the deadline for the re- porting of authorizing legislation by com- mittees. Beyond, this date, authorizations may be considered only through special waiv- er procedures in the House and the Senate. The House bill provided a March 31 dead- line for the enactment of authorizations. Be- cause the lack of necessary authorizations is the leadeing cause of bottlenecks in the ap- propriations process, it would be best to im- pose a cutoff date on enactments. The Sen- ate conferees, however, took the position that they could accept only a late deadline on the enactment of authorizations, perhaps one as late as June 30. I was concerned that a late date would be worse than no date at all. First, it would be logistically impossible to clear all appropriation bills? in time if au- thorizations were deferred until a late date. Second, there is the real danger that a late deadline Would become the norm and that Congress would slip into the tendency of con- sidering major authorizations only shortly before the deadline. A prudent course, therefore, was to set a reasonable deadline on the reporting of au- thorizations by committees in the expecta- tion that floor consideration would be sched- uled shortly after the committees had re- ported. Although the May 15 deadline is a compromise between those who would prefer an early completion of authorizations and those who would give the authorizing com- mittee more time for their work, I believe It represents a workable solution to one of the most sensitive issues in this legislation. Moreover, the cutoff date for the reporting of authorizations must be viewed in the light of my previous remarks that the preferred procedures would be advance authorization in the preceding year. In the months following adoption of the first budget resolution and the authoriza- tions, Congress will take up the various spending bills in the manner that it now does. The conference bill atuhorizes Congress to adopt optional procedures for appropria- tion bills, but this is a matter to be decided after the congressional budget process is in operation. If all authorizations have been en- acted on a timely basis, it is contemplated that Congress will complete action on ap- propriations shortly after it returns from the Labor Day recess. This will allow approxi- mately three weeks for adoption of a second budget resolution plus reconcilation meas- ures to implement the congressional budget. Obviously, this is a tight timetable and all parties will have to do their utmost to avert the fallback on continuing resolutions. But if the process is working properly, we can anticipate that the second budget resolu- tion will be reported during the summer re- cess and that Congress will be in a position to wrap up the budget process before the start of the hew fiscal year. THE BUDGET RESOLUTIONS AND RECONCILIATION PROCESS I am happy to report that the conference bill maintains the House concept of a budget resolution that is addressed primarily to broad issues of fiscal policy and budget pri- orities. Throughout the period that I have been involved with this legislation, I have advanced the proposition that the foremost responsibility of Congress must be the de- termination of macro-economic budget pol- icy. Toward this end, the budget resolution deals primarily with overall budget aggre- gates: the total amounts of revenue, spend- ing, and surplus or deficit. Within these to- tals, it is appropriate for Congress to give attention to broad spending issues, using the familiar functional categories in the budget. However, the budget resolution does not get into particular programs, agencies, appro- priations, or projects. To do so would destroy the utility of the congressional budget pros- - ess as an instrument for making national - economic policy. Yet I am sympathetic to the argument that Congress should be able to relate its overall budget decisions to its subsequent appropri- ations actions and to more specialized mat- ters. The conference bill sensibly allows the amplification of background information in the committee reports accompanying the budget resolution. Thus while the resolution will be a concise and straightforward state- ment of the principal budget amounts, the committee reports will furnish information on new and continuing programs, permanent and regular appropriations, and controllable and other expenses. The bill also establishes a procedure for relating the functional allo- cations in the budget resolution to the spend- ing legislation handled by congressional com- mittees and subcommittees. /In brief, then., the budget reform legisla- tion provides for a substantial amount of in- formation in committee reports without di- verting Congress from its central concern with overall budget levels and functional al- locations. The first budget resolution which (as pre- viously noted) is to be adopted by May 15, will be in the form of a target. I am con- vinced that the ultimate effectiveness of the new budget process will depend in good on the extent to which Congress utilizes these guidelines in considering subsequent spend- ing and revenue legislation. Built into the new process will be various scorekeeping procedures to enable Congress to compare its spending decisions with the levels speci- fied in the targeting resolution. Firm budget decisions will be made in the Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 H 5182 CONGRESSIONAI RECORD ? HOUSE J'Ive 18, 1914 meond budget resolution to be adopted be- fore the start of the next fiscal year. lin con- eteering this ceiling resolution, Congress Will lays the benefit of uprieted budget figures end most importantly, concrete kitowledge of its previous actions on entitlement, and spending measures. Congress Will be in it position to affirm these decisions or to set ;Ito motion a recoricMatlon process where.. by spending, revenue, and debt legislation ere adjusted in conformity with the second resolution. The reconciliation process thus will be able to reach any or all components of the budget and it will provide the eontext for establishment of a comprehensive and consistent budget policy. After the second budget resolution and any required reconciliation have been adopted, all subsequent revenue and spending actions would not be able to violate the levels fixed in the resolution. Congress would have the option to adopt additioral budget resolu- tions any time during the fiscal year, but it would not be able to violate the levels fixed In its latest budget decisions. By combining flexibility and ermnrss in its new budget process', Congress strengthens the prospects that the process will work. As I stated when the House considered the lima- lotion last December, the Overrie ing objective of budget reform must be to make Cloogress informed about and responsible for It;; budget decisions, not to prevent Congress from len- plementing its will. The conference bill fully upholds this ,ebjecttve. ENTITLEMENTS AND EACIi..-DOOR SPENDING Backdoor spending long has been the nem- esis of effective spending control. By c cumventing the appropriations ,prOcees. Con- gress has debilitated Its traditional and time tested procedure for maintaining ite power of the puma. All of us are familiar with the statistics neat show that year after year Co.a- gress appropriates less money than was re- quested by the President. But year slier year, also, Congress authorizes backdoor spending above the amounts in the President's budget. The time has come to close the backdoor. This simple imperative has been recognized by all who hive been invelved in the devel- opment of the budget control legislation. Ideally, we would close the backdoor to all programs which now benefit from special procedures outside of the appropriations process. The House bill would have ended all backdoors as of October, 1978, thereby allow- ing a transition period during which all pro- grams would be returned to the appropria- tions process. The conference bill stops short of this absolute requirement and ii recog- nizes that the new procedures ran be most realistically emptied to new programs. The procedures theinseaves have been re- fined .to distinguish between the various forms of backdoor spending. The House bell imposed the same requirement OD C011tratt, borrowing, and entitlement authority?the three types of backdoor spending. All such authority would have been effective only to the extent subsequently provided in appro- priations. The conference bill retains Man proce- dure for contract and borrowing authority. In the future, both of these types of enact- ment would have the same status as ordinary authorizing legislation. The amount of fund- ing will be determined through the regular appropriations process. The situation is somewhat different for entitlement legisla- tion. As provided in the conference report, new entitlement legislation would be re- lerred to the Approprietious Committee for it; review prior to floor consideration. This procedure which would apply on'y to entitle- ments in excess of the allocations provided in the budget resolution would give the Ap- propriations Committee an opportunity to evaluate the fiscal impact of the entitlement end to report amendments scallieg down the amount of entitlement authority. Certain types of programs would be ex- empted from the new procedures for back- door spending and entitlements. These in- clude all social security trust funds and other funds which are 90 percent self fi- nanced. However, these latter types of funds would also be subject to the same controls In the new budget system as are applied to the appropriation bills. The transactions of government corporations would be excluded from the procedures while the status of revenue sharing would be left for future determination. I consider the changes made in the treat- ing:let of entitlements an improvement over the original version. By their very character, entitlements care be controlled only before they are enacted. Even when entitlements are funded through the regular appropriations process?as they are for a number, of pro- grams?it is virtually impossible to control them at that stage. Once the entitlement has been tendered, the appropriation becomes a perfunctory act. Accordingly, the procedure adopted In the conference bill to subject en- titlements to review by the Appropriations Coeninittees before,' they have been enacted offers a more realistic opportunity for con- trolling them. IMPOUNDMENT CONTROL From the start I have held to the position that impoundment control is an essential component of budget reform. It makes no sense for Congress to establish new proced- ures for the appropriation of funds if the President can override the will of Congress by means of impoundment. At the seine time, the methods used to control Presideutial im- poundments must be reasonable and appro- priate. They should neither deny the Presi- dent the capability to manage the executive branch nor impose upon Congress the burden of redoing its previous decisions, In line with this potation, the House last year passed H.R. 8480 to provde for the veto of any Impoundment by either the House or Senate and a similar provision was incorporated into H.R. 7130 when it was approved by the House last December. I can report that the conference bill both upholds the position of the House and makes some worthwhile elaborations in the pro- cedures of expenditure control. The bill ad- dresses the various types of impoundments and provides appropriate procedures for each. First, it provides for disapproval by either the House or the Senate of Presidential pro- posals to defer the expenditure of funds. Analysts has shown that deferrals constitute he lion's share of impoundment actions and many of these are for routine financial pur- poses and involve neither questions of policy nor attempts to negate the will of Congress. In the case of deferrals, disapproval can be expressed by resolution of either the House or the Senate. Such disapproval will clearly instigate the view of Congress that the defer- ral is not merely a routine financial matter. When disapproved by either House or Senate, a deferral must cease at once. A different situation is presented when the President proposes to rescind budget author- ity previously voted by Congress. In such Instances, the President must submit a re- mission mesage and unles approved by both the House and the Senate within 45 days, the rescission must cease and any withheld funds released. Inasmuch as a rescission represents the undoing of what Congress previously enacted, it is entirely appropriate that no rescission be authorized except by effirmative vote of both Reuses. The conference bill also amends the Anti- deficiency Act to clarify and limit the pur- poses for which funds may be reserved from apportionment. Such reserves may be estab- Inhed only to provide for contingencies, or because of savings secured through efficient operations or changes in requirements. Wheel the President wishes to withhold funds for policy purposes. he must propose a rescission rather than 11103 the authority under the Antildenciency to establish be dgetary re- series. The conference bill also improves the pro- cedures for special and cumulstive reports on budgetary reserves, deferrals, and rescis- sions, and it antigns to the Comptroller Gen- erne the reale of reportiiag to Congress when the President has failed to submit a required inipoundMent message. In addition., the Comptroller General would be able to bring court action, after a 25 day waiting period and notification of the Speaker of the House and the President of the Senate, to enforce the new impoundment Controls. The budget legislation is a lengthy and complex matter. I have reviewed only its most salient features. Et has taken a long time to bring this legislotion to the brink of enactment. Improvernedts have been made at every stage. I commeod this bill to the House as a practical and workable app.roach to budget reform. Having inserted that matter, I propose to rather briefly outlin e the events that took place since the matter was before the House of llepresentatives in Decem- ber. I have already gotten unanimous consent for all Members to revise and extend their remarks on the conference report asavell as on the rule so that any lVierabcr who wishes to do so may use that privilege, but what I would like to do now is tale about what really hap- pened. The other body passed a rather sub- stantially different vers on, at least as to length and as to variety of relatively minor matters on budget control. When we contemplated going to conference with that bill, which had passed the Senate unanimously, we ret lized that the great danger of failure, probably would not come on the budget control items. There were a great many differ- ences that hal to be reconciled and of course they successfully were, but the dilemma that confronted us was a Sen- ate position on impoundment which was virtually the exact Opposite of the House position. We recognissei that we must come to grips with that matter or We probably would lose the whole matter. both budget control and impoundment control. Curiously enough we discovered the way in which to resolve 'hat was a rather unusual way. We found at the first con- ference that we had 7 Members of the Eouse as conferees and 14 Members of the other body as conferees. We realized there were a great many other Senators as well as other Members of the House who had a great interest, so what we tried do to in the initial conference was to make very clear what the conflicts were and then, in subsequent conversa- tions make very clear what kind of reconciliations seemed essential. This is where the conference proceeded in a very unusual fashien and I think it is important that the House understand it. It is not too much to ;ay that literally dozens of Members of the House, not only those who serited,Oii the Joint Study Committee but also many others were involved in every step of the nay. I have. never seen anything Lire the interest that Members expressed in this particu- lar proposition. There -Vas almost uni- versal support. The leadership of both aides was raost Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 June 18, 1974 CONGRESSIONAL RECORD - HOUSE H 5183 helpful to those of us who worked on this Matter at every stage. As the gentleman from Oregon (Mr. ULLMAN) has already pointed out there was a tremendous input before it came to the Rules Committee. When it came to the Rules Committee there was great cooperation on both sides In resolving the problem in the initial stage as we tried to prepare legislation to bring to the floor in December, which 'we did, and to pass it, and there was a great deal of cooperation from all Mem- bers, including the cochairmen of the Joint Study Committee and the Commit- tee on Ways and Means, including its chairman and the ranking minority member, and ths same was true of the Committee on Appropriations. Many other committees and Members partici- pated. The staff of the Joint Study Com- mittee were most helpful. Certainly the ? staff of the Rules Committee on both sides, Democrat and Republican, were most helpful. The committee staff's job under the supervision of the Members was to work out a reconciliation, and it was enor- mously difficult. I know that the people I had the privilege of working with in that latter stage, in the period from March until now, prefer anonymity but I think this bill is so important that I would like to mention the five people whom I, as the manager of the House side of the confer- ence, in addition to the members of the conference from the House, and in ad- dition to all members of the Rules Corn- ' mittee, and in addition to members of the Joint Study Committee, I thought did such a remarkable job. Now, each of them told me separately that they wished I would keep my moui,n shut, that they preferred to be anony- mous; but I am going to name five peo- ple without whom this matter would not be complete. They are all members of staffs of the House or of groups that sup- port the House: Eugene Wilhelm was our chief negotiator. Many of us know him. Bruce Meredith was of enormous as- sistance to us. Laurence Filson from the legislative counsel's office was invaluable, as was Allen Schick from the Congressional Research. Last, but by no means least, John Bar- riere of the Speaker's staff, the Demo- cratic Steering Committee staff, was very helpful. I think this matter is important enough so that Members should know that we could not have accomplished what we did without the hundreds of hours?not dozens of hours?that loyal staff members put in with careful super- vision, with careful checking with mem- bers of the conference, to achieve this result. I cannot say enough, either for the Members of the House or for the staff that worked with the 1-Ipuse Mem- bers primarily involved in a cooperative endeavor which resulted in a very re- markable experience for me. Just after the second, conference?the conference only met twice?just after the second conference in which there was unani- mous agreement between the House con- ferees and the Senate conferees, Sena- tor ERVIN, who was the chief Senate con- feree, said in effect that he thought we had improved upon the bills, both the House bill and the Senate bill. I feel that this bill, which follows the original version proposed by the Joint Study Committee, which is very like the version passed by the House, is an excel- lent bill, a bill that can work. I would emphasize that it is only the beginning. The 20 months of work that bring us to this point is only the begin- ning. The effort that will have to go into making this design work, and it es- sentially follows the House approach with relatively minor modifications, to make this design work is going to be just as onerous, perhaps more onerous and more difficult, than coming up with the design; but we feel this is a workable product, one that can succeed. Whether it does succeed will depend almost en- tirely on the will of the Members of this House and of the other body in this Congress and in the next two Congresses. This can be a worthless endeavor unless we understand that it is the beginning, that this structure is one that can work and can be modified to work better; but unless we are determined to make it work, this will all turn out to be empty rhetoric, as was the rhetoric on this same subject back when the Reorgani- zation Act of 1946 was passed. I will be delighted to yield to Members if they wish later; but I reserve the bal- ance of my time. (Mr. MARTIN of Nebraska asked and was given permission to revise and extend his remarks.) Mr. MARTIN of Nebraska. Mr. Speak- er, I yield myself such time as I may consume. Mr. Speaker, I support this conference report, even though I do not agree with all the provisions in it. I support it be- cause it will provide an improvement over the present congressional budget proce- dure. Under our present procedure, each spending bill is considered by Congress as a separate entity and there is little as- sessment of relative priorities, One re- sult is that by the time we add up the totals, the Congress has usually spent far more than it has taken in. The Nation is left with a large deficit which contributes to inflation, and leaves future genera- tions of Americans with an ever-increas- ing debt burden. This conference report establishes mechanisms to allow Congress to vote on the overall level of spending, the overall level of revenues, the overall level of defi- cit or surplus, and the overall level of debt. In summary form, the procedures will operate as follows. Two new committees on the budget will be established, one in the House and one in the Senate. The Senate committee will have 15 members, the House committee, 23 members. A new Congressional Budget Office is estab- lished to provide a central point for co- ordinating the legislative budget. The Di- rector of the Congressional Budget Of- fice will be appointed for a 4-year term by the Speaker of the House and Presi- dent pro tempore of the Senate, after recommendations by the Budget com- mittees. The Director may be removed by either House. Under this conference agreement, the fiscal year will begin on October 1. In addition, a number of dates are speci- fied for completion of various stages in the budget process. The President will continue to submit his budget at the same time that he does under present law, that Is, 15 days after Congress meets. By March 15 other committees are to submit reports to the Budget Committees on budget matters within their jurisdic- tions. By April 1, the Congressional Budget Office is to report to Congress on national budget priorities. By April 15 the Budget Committees are to report an Initial concurrent resolution on the budget, setting target levels for spend- ing, revenues, deficit, or surplus, and debt. By May 15 all authorizing legis- lation is to be reported from committees and on the same date, Congress is to complete action on the intial budget re- solution. By the seventh day after Labor Day, all appropriations bills are to be enacted into law. By September 15, ac- tion is to be completed on a second re- quired concurrent budget resolution which will reaffirm or revise levels of spending, revenues, surplus or deficit, and debt established in earlier budget resolutions. This second required concur- rent resolution may direct the appropri- ate committees to either raise taxes or the debt, or cut spending. By September 25, action on a reconciliation bill is to be completed. And, by October 1, the new fiscal year begins. Mr. Speaker, I have several reserva- tions about the workability of this budg- et timetable. First, this timetable does not even require authorizations to be re- ported from committee until May 15, and sets no specific deadline by which au- thorizations must be enacted. By way of comparison, the House-passed version of this bill provided that all authorizing legislation had to be enacted by March 31, with provisions for a waiver of this deadline if necessary. The Senate version had no deadline by which authorizing legislation had to be enacted. The con- ference agreement should have retained the House passed March 31 deadline for enactment of authorizations. By moving the deadline date for reporting author- izing legislation to May 15, and com- pletely removing the deadline for enact- ing authorizations, the danger is that au- thorizations will be enacted too late to allow time for the appropriations pro- cess. The result could be that the end of the fiscal year will arrive without all the necessary authorizations and appro- priations -having been enacted. Such a situation will make it almost impossible to do the kind of reconciliation process that is supposed to occur before the be- ginning of the new fiscal year. Mr. Speaker, during consideration of this bill on the House floor, an amendment was offered to move the deadline for au- thorizations from March 31 to July 1. This amendment was defeated by 106 to 300. The conference agreement should have reflected this House position. Mr. Speaker, a second reservation which I have about this conference re- port concerns the date by which the President is required to submit his budget to the Congress. Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 Approved For Release 2000/08/27 : CIA-RDP751300380R000600080003-9 1-1 5184 CONGRESSIONAL RECORD ?HOUSE June 18, 1974 Present law requires that the budget be submitted 15 days after Congress con- venes, and this was the House position. However, the Senate version allowed the President to submit his budget im to February 15. This extra time is necessary because under this conference report, the previous fiscal year will end on Septein- ber 30, instead of June 30. So the admin- istration will have 3 nionths less to as- semble the final figure e from the preced- ing fiscal year and prepare careful bueg- et estimates for the next fiscal year. This time squeeze will affect any administra- tion?Democratic or Republican. In or- der to allow any administration time to prepare its new budget, the date for sub- mitting the President's budget should have been moaed to February 15. In the conference meeting, I raised Ude problem, and there seemed to be agree- ment, that if the administration oand it impossible to meet the current deadline for submitiarg the budget TA:3 Congre some flexibility would be provided. Mr. Speaker, in order to make legis- lative history, I would like to ask the chairman, the manager of the bill, as to his understanding on this point. Mr. BOILING. My understanding i9 precisely as stated by the gentleman from Nebraska as to what his under- standing is. Several Senators made it clear, and I think some Members on our side, that any President making a re- quest for additional time Nvoulcl surely be granted that additional time. This is a matter that came up before in connection with some of the messages in the beginning of the Year and I think it would be inconceivable that there would be any serious difficulty in that :re- spect. Mr. MARTIN of Nebraska. Mr. Speaker, I thank the E;entlernan for ads reply to my inquiry. Mr. Speaker, the third item about which I have reservations is in section 309 of the conference report. This sec- tion includes a provision that the Con- gress complete action on all appropria- tion bills no later than the seventh day after Labor Day. However, this deadline does not armly to any a Pnroariation bills whose consideration has been delayed bedause necessary authorization has not been timely enacted. Mr. Speaker, it is a mistake to exempt appropriation bills from this deadline, just because author- izing legislation has not been enected. This is another place where the achedule is too loose. The deadane on appropria- tions should apply to on aporopaations, with no exception. In surtunary, Mr. Speaker, ,aci have reservations about this conic/vitae agree- ment, but I support A because it pro- vides a mechanism by which Corgress can play a more respensiblc nee in he budget pracess. If It is _going_ to be succesta ta how- ever?and I want to make this ixent very strongly?if this vehicle is going to be successful, it will require the walk of the chairman and the complete cooperation of all the Membersof the House and be other body, if this to work Mr. Speaker, I sincerely hope and trust that It will work as the committee laas intended. Mr. ROBISON of New York. Mr. Speaker, will the gentleman yield? Mr. MARTIN of Nebraska. I yield to the gentleman from New York. M. ROBISON of New York. Mr. Speaker, I rise in strong support of this legislation. Although I have certain res- ervations about it, which are either com- parable to those the gentleman has men- tioned or of some other nature, I agree ? with him that this is, at least po- tentially, landmark legislation. I would like to congratulate the gentle- man from Nebraska (Mr. Almeria), the gentleman from Missouri (Mr. Bounce), and all the other Members who have worked on this truly necessary piece of legislation in order to bring it to us today. Mr. Speaker, I have one question that perhaps the gattleman from Nebraska could help me Mad the answer to: What will the impact of this legislation, or of this procedure once it is in place, be on the present Office of Management and Budget? Is it the gentleman's judgment that the Office of Management and Budget win continue to carry a substantial workload, comparable to the workload it now has. or will that workload be reduced as a Tesult of this new congressional pro- cedure? Mr. MARTIN of Nebraska. Mr. Speak- er, in my judgment, I would say to the gentleman that OMB would still con- tinue to carry the same workload that they carry at the preeent time. On the other hand, we would have a virile com- mittee and an organization and staff up here in the legislative branch of the Gov- ernment that would receive a great deal of information from OMB, as well as assistance and help, in the compiling of the legislative budget. I feel it would be necessary for both to continue to cooperate. Mr. CEDERBERG, Mit Speaker, will the gentleman yield? Mr. MARTIN of Nebraska. I yield to the gentleman from Michigan. Mr. CEDERBERG. Mr. Speaker, it would seem to me that this legislation, at least initially, has to place an extra bur- den on the Office of Management and Budget, first, because of the change of the fiscal year. That is going to place some real problems before them initially. Once they get over that point, I can see that it will level out. On the other hand, it Is my under- standing that all impoundments will have to be reported; is that correct? Mr. MARTIN of Nebraska. The gentle- man is correct. Mr. CEDER:a:ERG. So any impound- ment would be reported, and the defini- tion of "impoundment" can be very broad. So those reporting requirements are obviously going to put additional bur- dens on the Office of Management and Budget as long as that requiremert exists. Mr. MARTIN of Nebraska. The gentle- man is exactly correct. Mr. ROBISON of New York. Mr. Speaker, will the gentleman yield fur- ther? Mr. MARTIN of Nebraska. I yield to the gentleman from New York. Mr. ROBISON of New York. Mr. Speaker, the reason I brought this point up this afternoon is that, next week, if the schedule is not changed, the House will be considering the annual appropria- tion for the Office of Management and Budget. While we are acting here today in an objective and regoonsible fashion. I would hope--i will sae to my friend, the gentleman in the welit?that next week, when the House considers an amendment to drasticalle reduce the budget level and, therefore, the personnel level of the W- ACO, of Management ani Budget, it would consider the Impact of any :ruch action on the workability ano the effectiveness of these new ciongressicatal procedures. Mr. Speaker, I thank the gentleman for yielding. Mr. /411ART121 of Nebraska. Mr. Speak- er. I share the gentleman's views. Mr. ROGERS. Mr. Speaker, will the gentleman yield? Mr. MARTEN of Nearaska. I yield to the gentleman from Florida. iMr. ROGERS asked and was given permission to revise and extend his re- nal rks.1 Mr. ROGERS. Mr. Speaket, I wish to commend the gentleman from Missouri (Mr. BOLLING) and all the other Mem- bers who haw contributed to bringing us to this stage; Mr. MART:ne of Nebraska. Mr. Speak- er, I thank the gentleman. I wish to ex- press my strong support for the bill H.R. 7130, the Congressional Budget and Im- poundment Control Act of 1974, as re- ported from conference. I would only observe that this legislation, which would work fundamental changes in the proc- eat by which Congress makes its spend- ing decisions, could riot come at a better time. The world is afflicted ulna double- digit inflation of which the United States has also been a victim. This inflation is causing dislocations in our er onomy and hardship far csach American. Particularly hard hit have been those tvho depend on fixed or low incomes. This bill would be helpful in the n ght against inflation, because it provides hope for brining Federal spending under control. The impact of Federal deficit spending on inflation eliould not be un- derestimated. In recent years, $15 and $20 billion deficits have become common- place. The President's budget request for the coming fiscal year for the first time exceeds $300 billion :auci, protects a uni- fied budget deficit of $1.4 billion. A Fed- eral deficit has become so lot ilt into our economy that even thir budget is con- sidered economically restrictive, with many advocating a tax cut to stimulate - production. The national debt is fast a pproaehing billion--half a trillion?and one- fOurth of this amount has "seen accumu- lated during the past I years. This debt would be increased by another $19.9 bil- lion under the President's budget request. I submit, Mr. Speaker, that there is gittve danger in pursuing a nalaonal spending politw under which the Federal Government consistently speeds $15 bil- lion more than it earns, an mortgages future generations in the amount of $20 . billion per year just in interest on this ever growing debt. 'The ificgic of this Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 Approved For Release 2000/08/27: CIA-RDP75600380R000600080003-9 lune 18, 1974 CONGRESSIONAL RECORD ?HOUSE Miley is obvious; the inflationary inipact unt,St he recOgnIzed. Reversing this trend is difficult?there has been little that any one Member of Congress or even any one committee could do alone. We have .passed, and I have introdUeed and sUpported, legisla- tion which WOUld place a ceiling on total Federal expenditures, and on the na- tional debt. But these have proved inade- quate tools?the fU7S1 leaves basic spend- ing decisions with the President through the impolMailaent .process, and the sec- ond is an idle threat to shut down the entire 'Government. The trend has also proved difficult to reverse because, while the appropria- tions process has served Congress well? appropriations have at least been below the budget request for the past 30 years? the mandatory and back door forms of spending outside the appropriations process have proved relatively uncon- trollable. In this bill, we attempt to bring this spending, too, under control. Congress is forced to, make the basic wending and taxation decisions which have not been adequately dealt with in the past. The new process will probably prove difficult to implement as old ways give way to new. But I would ask each Mem- ber of the House to bend every effort to make this process work. I submit that excercising firm control over the spend- ing decisions of the Federal Government should be the No. 1 priority of the 93d and 94th Congresses. These are diffi- cult economic times. I support this leg- islation in the spirit of providing for better times to come. Mr. VEYSEY. Mr. Speaker, will the gentleman yield? Mr. MARTIN of Nebraska. I yield to the gentleman from California. (Mr. VEYSEY asked and was given permission to revise and extend his re- marks.) Mr. VEYSEY. Mr. Speaker, I wish to congratulate the gentleman in the well for his role in this legislation, and I wish to congratulate all of those Members who have participated in the development of this landmark legislation. It seems to me it is the most significant legislation, with Its long-range impact, that has come be- fore the House during my several years here. Mr. Speaker, the 93d Congress is mak- ing important legislative history in what I hope will be final passage of the Con- gressional Budget and Impoundment Control Act. I urge my distinguished colleagues to support this conference report. However, before we vote on this report, I would like to address myself to a few important underlying issues that spawned this measure. The controversy surrounding Presi- dential impoundment during 1972 jarred the Congress into positive action. But I believe that the real issue is that we, the Congress, for years ha-se buried ourselves and the country in a mountain of deficits, broken budgets, and runaway spending on ill -conceived programs. We do not.Presently have the capacity to study the oYerall inapart of spending in any single area, much less all Fed- eral programs collectively. The proposed Congressional Budget Mee, 1437 ProVid- ins special assistance to budget commit- tees, House and Senate appropriations and tax committees, will give us the broader scope we require. Additionally, we have never had ade - (Mate time to complete the appropriation process and more often than not, have operated on continuing resohitions. The changing of the fiscal year from July 1- June 30 to October 1-September 30, will give us the necessary time to enact more responsible appropriations. When the Congress has a more ef- fective and responsible budgetary proc- ess, there will be no need for Presidents to use impoundment authority. If this bill accomplishes what it is designed to do, anti-impoundment amendments will generally be superfluous. The people are demanding that Congress assert leader- ship in budgetary matters, and the time has passed when we can pass that re- sponsibility to the White House and ex- pect the President to balance the budget. In conclusion, one of the key issues in the Nation is inflation and the general state of the economy. Mr. Chairman, if we fail to pass this measure we will be failing in our responsibility to the Amer- ican people. We must demonstrate that we are willing to support sound fiscal policies. Mr. CRONIN. Mr. Speaker, will the gentleman yield? Mr. MARTIN of Nebraska. I yield to the gentleman from Massachusetts. (Mr. CRONIN asked and was given permission to revise and extend his re- marks.) Mr. CRONIN. Mr. Speaker, I rise in support of the position taken by the gen- tleman in the well. Mr. Speaker, the time has long since passed for the Congress to enact budget reform legislation, and I rise once again In support of the Budget Reforrh Act, this time in the form of the conference report the long-awaited final stage of congressional activity on the matter. I urge its passage by the House as a demonstration of the desire of the Con- gress to take the lead against inflation and irresponsibility in fiscal activity that has so long shackled the Federal Gov- ernment and the American economy. The conference report that we con- sider today will for the first time begin to eliminate the haphazard preparation of the budget and spending procedures that has resulted in mismanagement of the overall economic picture. It will organize the budgetary policies emphasizing structure and will recognize the Federal budget as it really is?not a forum for partisan differences of opinion, but a major component of the Government which deserves fair, rational, and care- fully coordinated consideration. Today, by passing this budget confer- ence report we will together tell the American public that we understand the overwhelming aspects of the shrinking American dollar and rising prices. But, moreover, we will tell the American pub- lic that the U.S. Congress is going to do something about the high cost of living. We will show that through a cooperative effort on the part of every Member of 11 5185 Congress that our spending can be regu- lated and our economy healthy. I urge our unanimous vote today. Mr. HILLIS. Mr. Speaker, will the gen- tleman yield? Mr. MARTIN of Nebraska. I yield to the gentleman from Indiana. (Mr. HILLIS asked and was given Per- mission to revise and extend his re- marks.) Mr. HILLIS. Mr. Speaker, I, too, would like to commend the gentleman for his remarks and associate myself with his position on this important piece of legis- lation. Mr. Speaker, as I did last December when the Congressional Budget and Ln- poundment Control Act came before the House for a vote, I once again rise in support of this legislation. I urge ap- proval of this critically important measure. No one can deny that the need for congressional action in the area of budg- etary reform has existed for far too long. In order for the Congress to re- establish the ability to exert responsible control over the Nation's purse strings, steps must be taken to update the budg- etary process of the Congress. Reform is needed to insure responsible budget- ary programing and accounting on the Part of the Congress. Today's prolifera- tion of authorizing committees, issues, spending needs, and complicated built- in backdoor spending programs require the closer scrutiny and expertise of an overseeing body as recommended in the Budget and Impoundment Control Act. The Congress must accept responsi- bility for having followed a policy of def- icit spending?a policy which must be marked as one of the basic and leading causes of inflation. Our constituents are tired of coping with continually rising prices. They -are not only asking the Congress to take the appropriate actions toward solving the complicated problem of inflation, they are demanding these actions be taken. One of the least painful yet necessary steps the Congress can take to curb in- flation is to set its own house in order by following the steps recommended in the legislation before us. This bill needs to be enacted, but most important of all, the provisions contained within this measure must be implemented and made to work. This can only be done by each Member of Congress accepting the need for fiscal responsibility and acting ac- cordingly. This course of action must be taken. Mr. FRENZEL. Mr. Speaker, will the gentleman yield? Mr. MARTIN of Nebraska. I yield to the gentleman. (Mr. FRENZEL asked and was given permission to revise and extend his remarks.) Mr. FRENZEL. Mr. Speaker, I strongly support the gentleman's position. Mr. Speaker, I heartily endorse and enthusiastically support the conference report on H.R. 7130, the bill to establish improved budget procedures for Con- gress. I think it is one of the most sig- nificant pieces of legislation I have ever voted on. The bill will set up procedures that Approved For Release 2000/08/27 : CIA-RDF'751300380R000600080003-9 Approved For Release 2000/08/27 : CIA-RDP75B00380R000600080003-9 H 5186 CONGRESSIONAL RECORD ? HOUSE Jvve )8, 1974 will tend to force us to establish our own spending priorities, to control our corresponding more giensibly, and to strike a better balance between our in- come and our expenses, H.R. 7130 will enhance the congressional rate in the budget process. All of those are desirable objectives, and ones we have elfficulty echieving in post. In fact, we have not even come close. But as extremely desirable -as the ob- jectives of HR. 7130 are, we should not be declared into thinking that this 'oil will do for us what we are unw Ming to do for ourselves. The bill will help us, but it wont make spending prioritY choices for us. It won't guarantee a bal- anced budget, even though it make a balanced budget more attainable. The best inflation fighter the Congress has?and one we have not used yet--is budget control. Reduced Federal over- spending reduces inflationary forces, and It sets the best kind of example for .Dur inflation?saturated economy and our inflation?oriented society. It about time we Used our fiscal Weapon against inflation. This bill will help us, but we still have to stand up and be counted. I applaud the bill and I urge the Con- gress to use it and its own will power to achieve the bills lofty purposee. Mr. GROSS. Will the gentlenem yield? Mr. MARTIN of Nebraska. I yield to the gentleman from Iowa. Mr. GROSS. I thank the gentleman for yielding. ' Perhaps up to this point I have not been listening attentively enougla. I have not heard anything about cost tag that can be put on this wonderful new nece of legislation Has the gentleman any idea as to what this is going to oceet? Mr. MARTIN of Nebraska. I do not recall that we have any estimate of the cost of setting up this lionse end Sen- ate Budget and Impoundment Control Act. Mr. GROSS, There will be two com- mittees created, one of 22 members and one of 15? . Mr. MARTIN of Nebraska. The mem- bers will not add to the east, but at is the staff and the work of the etaff that will. Mr. GROSS. That hi exaetly the point. What will the staffs cost and all that goes with them? Mr. ANDERSON of Illinoie. Will the gentleman yield? Mr. MARTIN of Nebraska. I yield to the gentleman from Illinois. (Mr. ANDERSON of Illinois asked and was given permission to revise and extend his remarks.) Mr. AN:GERSON of Illinois. I thank the gentleman for yielding. Mr. Speaker, I rise in Eupport of the conferenc:e report. The gentleman now in the well, ati the gentleman from Missouri (Mr. Bourse) has been very generous in Praising oth- ers this afternoon for contributing to the work product which brings us to the con- sideration of this conference report. I think they, too, deserve special praise for their fidelity in the cause of budget re- form. I could not help but think in reading the RECORD again for yesterday when we debated the national school lunch amendments of 1974 that we had a rather clear example of why this partic- ular piece a legislation before us today in the form of a conference report is needed. That particular conference report passed by a vote of 345 to 15; Yet I was not without some sympathy for those who felt obliged to oppose it because of their concern over the fact that it was $135 million, I believe, over the amount that had been In the House bill when it left the House. There was an interesting colloquy on Yesterday between the gentleman from Idaho (Mr. Symms) when he asked a question as to how long it would take at the present rate of adding to our Fed- eral debt before we would totally debase our currency, and the gentleman from Minnesota (Mr. Qum) who in answering that question referred to the fact that under this particular legislation we were in effect increasing from '7 cents to 10 cents the minimum assistance by the Federal Government to each school lunch and the gentleman from Minnesota, doubted that that relatively small amount would be the thing that would push us over the precipice; but he also made the very valid point that no one really knows how far we can go down this road of piling deficit upon deficit. Especially he said, that if we could only find a way where Congress could take - into consideration these matters and re- duce expenditures someplace else it would be extremely helpful. He made the Point, in other words, that while we were adding justifiably to the appropriations in this area there ought to be some means for the Congress to reconcile this action by reducing expenditures else- where. It seems to me that is the great hope and the great promise of this legislation. Even though, as others have said, it is not a panacea, much will depend on how willing we are to submit to the discipline of the budget committees in the House and the Senate and utilize the other pro- cedures that the conference report re- fers to, but at least we have established a mechanism whereby it ought to be pos- sible to balance the kinds of increases that were made in the legislation that I just talked about, which we voted on yes- terday, with expenditure reductions in other areas eo that we could hope to bring the Federal budget into balance. Therefore I think this is indeed a red letter day in the history of this body, and I hope we wilt in the future look back on the 18th of June, 1974, as the date when we began this very important task of re- storing a measure of fiscal discipline to the deliberations of this body so that in turn we can recover some of the prestige that I think we have lost in recent years because of the :irresponsible way in which we have acted in this particular area. Mr. Speaker, I ask the Members of this body to look at this budget reform con- ference report from the perspective of the average American wage earner. He is concerned, to be sure, with the need for Congress to put its fiscal house in order and to assert its rightful authority Vis-a- vis the President in the determination of budget priorities. But these are urely subsidiary considerations to the over- whelming issue of how we in Congrees can bring the budget process under con- trol in the fight to stem inflation. Per the average Am.erican family eaen- ing approximately $12,000 per year, and who had to spend an additional $1,200 last year to maintain its standard of liv- ing?including $400 m.are for food, $1.70 more for housing and $60 more for cloth- ing?the issue is inflation. With the prime rate of interest having reached the highest levels since the Civil War, and with the cansuiner in some areas having to pay 14 percent for .'auto- mobile and home impn?vement loans, the issue is also inflation. In recent months experts have noticed that despite high interest rates con- sumers are beginning to stretch their credit more than ever in anticipation of further price increases. At the same time mortgage and installment loan delin- quencies have reached their highest level since the end of the Korean war. Mr. Speaker, it is no coincidence that this acceleraeing spiral of inflation that we have experienced in the past 4: years has been accompaniel by ekyrocketing Federal expenditures. In 1970 the Presi- dent proposed the first $200 billion budg- et in the Naleon's history, and this year he presented to Congress the firs: $300 billion budget. Durins the :erne period, we enacted a number of tax cuts. The effect has been to run up an esti- mated deficit of nearly $80 billion from 1970 through fiscal 1975. To allow the fi- nancing of this growing debt. the admin- istration came before the Way .s and Means Committee lent month and re- quested an increase in the nationtd debt ceiling to $500 billion--a half a trillion dollar national debt ceiling. We are all aware that priming the pump through deficit tnending can play a constructive role in stimulating en- paoyment and income during tirn,es of nermal business cycle contraction. But such has not been the me of :deficit spending in the last few years. During the Vietnam war, when the econoray was running at :lull tilt, we stilt ran budget deficits. In part because of that practice we created pressures that by 1970 led to the unprecedented consemence now known as "stagflation"?an economy characterized by high rates of unemploy- ment and inflation. M. far as the eionomy is concerned, inflation has become public. enemy No. 1 in the minds of the people. And the budget, insofar as it is a source in inflation, must be tamed. . That is the most important issue be- fore us today. With. the adoption of this budget reform conference report we would be aeopting a truly revolutionary new procedure that for the first time would allow Congress to assess the budget and its inflationary impact on the Ameri- can people. We would be saying to the American people thet the Congress is willing to assume responsibility, really for the first time, in eetting the priorities of the budget within limits that will not bury the American people under an avalanche of price increases. In a very real sense whether we will make that pledge to the American people, or wheth- Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 Approved For Release 2000/08/27.: CIA-RDP75600380R000600080003-9 ? June 18, 1974. CONGRESSIONAL RECORD ? HOUSE H 5187 er we will atquiesce to the status quo of runaway/Y/41ms 'is What we are vciting on today. Mr. LA,GOMARSINO. Mr, Speaker, will the gentleman yield? Mr. MARTMo Nebroc.a. I yield to -the gentlemanTromtaiffornia. (Mr. LAOOMARSINO asked and was given permission to revise and extend his remarks:) Mr. LAGOIVIARSINO. Mr. ;Speaker, I thank the gentleman for yielding, and I 'wish -to commend :ow gentleman from Nebraska (Mr. WARM') for his leader- Ship in -this very important' matter, and with to associate myself with the re- marks made by the _gentleman. Mr. Speaker, the other day my wife 'went Shopping. She saw a sweater she liked and, asked the clerk If she had something more expensive along ?the same lines. "No," the clerk said, "but I can put this one aside and you could come haCk for it in a few days." 'Now, Mr. Speaker, inflation is no joke. But when salesclerks can see it coming on a day-by-day basis, then matters are serious. Inliation is robbing American 'consumers' df Millicms of dollars every day. And America's taxpayers are the ones Who are 'footing the bill, in terms of lost , purchasing power, higher income taxes, andlither interest rates. Inflation is the direet result of uncontrolled Gov- ,ernment spending, especially deficit *pending. And uncontrolled spending, gentlemen, starts right here, on this Crne way we can control inflation is to adopt this conference report. Every da' we passhills which only contribute to the problem. Today we can pass a bill which ,contrtbxitei to the solution. The ,people are demanding responsibility on the part -crI Congress. -Let's act responsibly. Let's not make our rate of inflation a laughing matter. Because to the people, it is no oke. Mr. EEIVIP;Mr. Speaker, will the gen- tleman yield? Mfr. MARTIN of Nebraska. I yield to the gentleman from New York. Mr. ICEIVIP. Mr. Speaker, I appreciate the gentleman yielding to me. I strongly urge passage cif this legislation. I want to congratulate the gentleman from Nebraska on his leadership, as well as the gentleman from Missouri (Mr. BOLLING) and all those Members who have had such a major role in bringing this historic legislation ?to fruition. The gentleman from Illinois (Mr. ANDERSON) has made some very impor- tant remarks With Which I would like to be associated. I believe that fiscal responsibility and the fight against inflation in this country begins and ends right here in the Con- gress of the United States. I believe this effort we are making today will be a large and constructive step forward in bringing to this body and the other body, the type of fiscal restraint and respon- sibility to our budget deliberations that are so long overdue.. This is not a pana- cea at all, but it does provide vital guide- lines and procedural machinery neces- sary to deVeloping.a congressional budget and spending ceiling. I am also glad to note that the Presi- dent is talking 'about submitting a bal- anced budget in 1976 to the emigres.% and I welcome that as a step certainly in the right direction. I support legislation to mandate a balanced budget. Now if we can get the Federal Reserve to match their rhetoric of monetary restraint the reality of sound monetary practices by slowing down the irresponsible growth and the expansion of the money supply, which is not matched by a con- current growth in productivity, we will have made a positive contribution toward solving the very difficult problem of in- flation in our country. Mr. Speaker, again I thank the gentle- man for yielding. (Mr. KEMP asked and was given per- mission to revise and extend his re- marks.) Mr. 'WHALEN. Mr. Speaker, would the gentleman yield? Mr. MARTIN of Nebraska. I yield to the gentleman from Ohio. (Mr. 'WFIALEN asked and was given Permission to revise and extend his remarks.) Mr. WHALEN. Mr. Speaker, I rise in support of the conference report. I would like to take this opportunity to congratu- late the gentleman from Nebraska (Mr. MARTIN) and the gentleman from Mis- souri '(Mr. BoLtrNc) on the outstand- ing work they have done in bringing this legislation to the floor. The gentleman from Illinois (Mr. AN- )ERSON) referred to this as a red letter day in the history of the Congress. I think it might well be termed a black letter day in the history of the Congress. Mr. Speaker, I rise in support of the conference report on H.R. 7130, the Con- gressional Budget and Impoundment Control Act of 1974. When I became a Member of the House in 1967, I discovered that the theory ef fiscal policy, which I and hundreds of other economic professors ,had described to our students for years, deviates tre- mendously from fiscal practice. Indeed, I concluded that there is not now, and perhaps never has been, a congressional "fiscal policy." Instead, I found, as one noted economist has observed, that the economy shapes fiscal policy rather than fiscal policy shaping the economy. Therefore, over 2 years ago I proposed that Congress establish new budgetary procedures. My approach, which I titled the "Speaker's Budget," was designed to overcome what I, consider to be the five major weaknesses in the present congres- sional process. They are: First, there can be no cohesive policy when 14 appropriations bills are con-. Sidered as separate entities unrelated to any total spending goal. Second, there is little coordination be- tween expenditure programs and con- gressional revenue-producing efforts. In fact, taxation and appropriations meas- ures emerge from different committees after little or no cross-consultation. Third, failure to relate individual parts to the whole inhibits the establishment of spending priorities. In a sense, each bill is pitted against itself. It can be in- creased or decreased at the whim of Con- gress with little consideration given to specific total budgetary objectives. Fourth, under the present System, pressure groups have an undue eppor- tunity to influence Congressional deci- sions. Rather than competing against each other, they can focus on individual bills. To use basketball terminology, a "one on one" situation.prevailst As a re- sult, Congressmen are exposed to pres- sures from 14 separate groups rather than from 14 competing groups. This situation helps to distort priorities in the allocation process. Fifth, the process now is so drawn out that it interfers with departmental plan- ning. Thus, many executive agencies do not know until well into the fiscal year what their total budgetary obligations will be. - The procedures recommended in the cenference agreement which is before us this afternoon are more detailed than those contained in my proposal. However, the significant benefits which I believe will accrue to our economy through the implementation of my plan also will re- Suit from the adoption of this report. First, by integrating the Government's spending and taxing programs, it rep- resents a cohesive approach to our Na- tion's economic needs. Second, by considering each depart- ment's needs within the context of the whole budget, this approach permits a more precise delineation ,of spending priorities. , Third, this process also will diminish the impact of pressure groups. Fourth, departmental effectiveness will be increased since each agency will know its total expenditure level at the begin- ning of the fiscal year. Mr. Speaker, I urge my colleague to join me in voting affirmatively on this conference report. Mr. MARTIN of Nebraska. Mr. Speak- er, I would simply like to conclude by pointing out that in my mind this is only 50 percent of the package which the House of Representatives should adopt this year to improve the operation of the Congress itself. The second half is the Reorganization Act that is now held up by the democratic causus. I trust that we will soon have that on the floor of the House for consideration. Mr. su PONT. Mr. Speaker, will the gentleman yield? Mr. MARTIN of Nebraska. I yield to the gentleman from Delaware. (Mr. DU PONT asked and was given permission to revise and extend his remarks.) Mr. DU PONT. Mr. Speaker, I rise in strong support of this legislation. ' When I first came to the Congress, I sponsored legislation that would require the Congress to reform its budgetary process. Since that time we have seen ample evidence why this reform is so im- portant if the Congress is to hold the line against excess deficit financing and to help control our spiraling inflation. Unlike any other institution with which I am familiar, the Congress has had no procedure to adopt an overall budget, and has had no requirements for living within that budget. We have sim- ply considered each spending bill as it came up, voting increases along the way in a merry fashion, with no overall view Approved For Release 2000/08/27 : CIA-RDP75B00380R00060008000379 Approved For Release 2000/08/27 : CrA-RDP751300380R000600080003-9 H 5188 CONGRESSIONAL RECORD ? HOUSE June 18, of the fiscal Implications. Congress evi- dently thought it could please everyone and disappoint no one. For a while, it appeared that was right, but the cumu- lative effect of this political expediency and budgetary neglect has been rampant inflation. In 1971 and 1972 we had defi- cits of $24 billion. This has not only cre- ated excess Government demand for products and services, but it has also contributed to escalating interest rates. The Government has had to complete in the money markets to pay for its bills, and has driven up the interest rates. If we remove some of this excess demand for money, products and services, we will then be able to take some of the steam out of inflation. But if we are to use the appropriations.. process as an effective fiscal tool for curb- ing inflation, we must have an effective budgetary process which forces us to make some tough policy choices and live within the stated ceiling. Without such discipline Congress will continue to be one of the instruments of inflation. I think the Budget Reform and Im- poundment Control Act is the vehicle for exercising responsible fiscal restraint, and urge my colleagues to join me in supporting it. Mr. ROXISSKLOT. Mr. Speaker, will the gentleman yield? Mr. MARTIN of Nebraska. I yield to the gentleman from California. (Mr. ROUSSELOT asked and was given permission to revise and extend his remarks.e Mr. ROITSSELOT. Mr. Speaker, I rise in support of the conference report on H.R. 7130, the Congressional Budget and Impoundment Control Act of 1974. I have consistently supported action on legislation Which will establish the basic framework to allow Congress to grasp control of the budgetary process, and I believe that H.R. 7130 Is basically a step in the right direction. However, I would have preferred a bill that more closely followed the recommendations of the Joint Study Committee on Budget Control with regards to providing that Congress set overall limitations on budg- et outlays and on new budget authority before beginning the appropriations process, as well as safeguards to insure that Congress worked within the limiest- dons it established. Although I will vote for this confer- ence report, two of the provisions are especially of concern to me: First. The Congressional Budget of- fice: In its House report on H.R. 7130, the House Rules Committee warned that: If a new budget office were separa bed from the committee process, the Budget Commit- tees of the Rouse and Senate would be im- pelled to create their own staffs. , Although I can appreciate the need for an independent office, I am concerned that the Congressional Budget Office as provided by this legislation will develop into Just another bureaucratic entity, and rather than facilitating the work of the Budget Committees, it could actually hinder their objectives. I Would have pre- ferred the House approach of combining the features of a committee staff and an independent legislative office. Second. Impoundment Control Proce- dures: The conference agreement would provide that in the case of a Presidential message requesting a rescission of budget authority that unless both Houses of Congress complete action approving a rescission bill 'within 45 days, the budget authority shall be made available for obligation. In the case of a Presidential message requesting deferral of budget authority, the President would be re- quired to make the budget authority available if either House of Congress passes an impoundment resolution dis- approving of the proposed deferral at any time after receipt of the special message. I would have preferred that Congress be required to take action in order to disapprove either a rescission bill or an impoundment resolution, and that in both cases, this action be required within a specific time period. The con- ference agreement does, however, pro- vide procedures for congressional action if the committee fails to report a rescis- sion bill or an impoundment resolution.. In conclusion, Mr. Speaker, I was pleased that the conference agreement does establish timetables for essential elements in the budget process, and it does prohibit the floor consideration of budget authority, entitlement authority, or changes in revenues or in the public debt limit before the adoption of the first concurrent resolution. I fully con- cur with the point stressed by the man- agers of the conference that the success of this legislation is going to depend on the complete cooperation of the Congress, and I for one will do all in my power to make it work. Congressional control of the budget is essential for our fight against inflation. Mr. BOTeirseG. Mr. Speaker, I yield such time as he may consume to the gentleman from Florida (Mr. Sixes) . (Mr. SIKES asked and was given Per- mission to revise and extend his re- marks.) Mr. SIKES. Mr. Speaker, I support this meritorious and much-needed legisla- tion. Mr. Speaker, virtually everyone will agree there is need for a Congressional Budget Control Act. H.R. 7130 is in- tended to meet that need. It has been a long time coming. It grew out of the work of a Joint Study Committee on Budget Control which began early in this Con- gress; a committee of senior House and Senate commit teee members and staffers who worked closely and in harmony toward an objective which was clearly recognized. - The report of the Joint Committee was made in April 18, 1973. The bill which is now before us was reported by the Rules Committee on November 20, 1973, and passed the House December 5 of that year. Now it is mid-June. The con- tents of the bill have been carefully and fully thought out and I feel that the new Congressional Budget Control Com- mittee which it authorizes will offer the best opportunity yet for Congress to ex- ercise sound and professional manage- ment of budget procedures. The bill can help to stop budget busting which has been the bane of those who have so long desired sounder budget procedures, both in Congress and in the administrailon. The bill is not going to 'venire Con- gress to do a better job. It is going to give the Congress an opportunity to do a bet- ter job. It cart help to halt deficit spend- ing, but we have to live up to the. responsibilities which it provides and do so in a forthright manner. The bill does a number of things that I think are important. For instance, we have long deplored "backdoor" spend- ing. This bill provides a beginning for the control of "backdoor" seerlding. The bill changes the date of the fiscal year to begin October 1. We have long real- ized that we cannot complete today's cumbersome budget processes by July L The budget is too big. The problem is too difficult. The bill tightens Anti-De- ? ficiency Act language. Importantly, it provides procedures for veto of impound- ment. It regoires the President to sub- mit a request for rescission when a pro- posed Presidential impoundment or re- serve involves cancellation of a program The bill will provide a review of the Presidet's budget at specified times. It provides that a target be see by May 15 for budget totals and functional cate- gories. The budget resolution must be adopted before appropriations, entitle- ment, and tax bills are considered. An Important new procedure is the re- quirement that all appropriations bills be submitted to Congress et one time rather than piecemeal. This, in itself. will require that Congress take a more careful look at its budget procedures than at present. We will be looking at totals, not at pieces of the year's pro- gram. The bill establishes a Congressional Budget Office to strengthen congres- sional resources for fiscal and budget in- formation. This can be a very useful of- fice for all of the Congress. The bill looks good. Obviously great care must be exercised that people with good judgment, good background, and proper attitudes are placed in staff posi- tions. They will be very important to the sound administration of the new system. This is particularly true in view of the fact that Members of Congress who are named to the Budget Committee will also have other important committee respon- sibilities and will have to rely to a con- siderable extent on the recommendations of staff members. This wil be no differ- ent than the procedure which was used by the Joint Committee on Eudget Con- trol, and I can state unqualifiedly that I have never seen better staff work or known more able and dedicaled individ- uals than those who assisted in the prep- aration of the initial phases of the bill now before us. feel that this bill is a mai or step for- ward and a big plus for Congress. It is landmark legislation. Mr. BOILING. Mr. Speaker, I yield such time as he may consume to the gentleman from Oregon (Mr. ULLMAN ) (Mr. ULLMAN asked and was given permission to revise and extend his re- marks.) Mr. ULLMAN. Mr. Speaker, I. thank the gentleman for yielding me this time. Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 Approved For Release 2000/08/27 : CIA-RDP751300380R0006000800037,9 June 18, 1974 CONGRESSIONAL RECORD ?HOUSE ti 5189 I would like to ask the gentleman from Missouri a couple of clarifying questions. This is landmarlL legislation?far- reaching, important -legislation that is going to change drastically the proce- dures for every Member of the House, for every committee of the House, as well as for the Office of Management and Budget, and the whole executive branch as well. It is certainly going to involve some drastic revisions in the way we do business. I would like to have the Members of the House understand this, because it is not going to be easy to implement, as the gentleman from Missouri has indicated. Would the gentleman from Missouri (Mr. BOLLING) clarify for me first the impact upon the reporting of the budget from the executive branch? Mr. BOILING. If the gentleman from Oregon would permit me to answer him In this fashion: The first thing that is done is to change the fiscal year from its Current year of July 1 to June 30 to Oc- tober 1 and September 30. That, of course, is a drastic change. All the other Changes that are proposed relate to that. The first one is the one for which we required a waiver of points of order, and that is to require the President to come in with advance authorizations. Then we require that the President provide us With a current services budget on No- vember 1 of each year. Mr. ULLMAN. By November 1? Mr. BOLLING. Of the preceding year. Mr. ULLMAN. Yes. of the pleceding year. Mr. BOLLING. And no change in date for the January submission of the regu- lar budget. The gentleman heard the colloquy I had with the gentleman from Nebraska about the leniency that might be re- quired on that. Mr. ULLMAN. What about the legisla- tive committee? Mr. BOLLING. Each standing commit- tee shall give the budget committee its Views and recommendations on budget matters by the 15th of March. Then the Congressional Budget Office reports to the budget committees, both of them, by April 1, and the first budget resolution Is reported by April 15. That, of course, Is the target resolution. Then ray 15 is the adoption date for the first budget resolution. Mr, ULLMAN. If the gentleman would yield further, let me clarify that issue. Will the House and the Senate proceed independently, or does this originate hi the House? Mr. BOLLING. They proceed inde- pendently. Mr. ULLMAN. They proceed independ- ently as of that date? Mr. BOLLING, Yes. Mr. ULLMAN. Then will come out their different points, and there will be a con- ference to iron out the differences in the concurrent resolution; is that right? Mr. BOLLING. That is correct. Then May 15 is also the deadline for commit- tee reporting of authorizing legislation. Mr. MARTIN referred to that in his orig- inal statement. The regular considera- tion of appropriation bills was to be com- pleted by early September. Then the sec- ond budget resolution and reconciliation occurs, concluding on the 25th of September. Mr. TJLLMAN. If the gentleman will yield further to clarify the issue on ap- propriation bills, is it my understanding that all of the appropriation bills will be referred back immediately to committee arid held, and that none of them will be sent down for White House signature until the final wrapup bill? Mr. BOLLING. The final version in- cludes that as a possibility, and all kinds of other possibilities, because the differ- ence between the House and Senate was so substantial that there is an optional feature there which in effect would have It done that way or a variety of other ways, as determined by each House. Mr. 'ULLMAN. In other words, we could adopt a procedure whereby if we stayed within the limitations imposed by the first concurrent resolution, budgets for appropriation bills could go down and be signed? Mr. BOLLING. That is correct. Mr. 'ULLMAN. I see. But, if the House chose, they could hold them. off until the final wrapup bill. As I understand it, however, if we ex- ceed the initial limitations of the initial concurrent resolution, if we exceed those In the appropriation process, then there must be a second concurrent resolution out of the budget committee, taking into consideration these divergencies from the first concurrent resolution, and meet- ing them either by directing additional revenue or cutting in the appropriations, or reestablishing new goals on spending. Mr. BOLLING. There is no attempt to say that the Congress cannot have as many budget resolutions as they want. Actually, the process that the gentleman has described is that which will likely take place in conforming to reality with regard to the second concurrent resolu- tion. The first concurrent resolution deals with targets, and the second one deals with firm ceilings. Mr. ULLMAN. I thank the gentleman. Finally, and I think this is the real crux of the whole problem, do we have as- surances that prior to the end of the fis- cal year and the beginning of a new fis- cal year the Congress shall have had to comply with the objectives of this bill in holding to our limitations and in pass- ing on appropriation bills prior to the end of the fiscal year? Mr. BOLLING. All I can say to the gentleman on that is that we have gone just as far as we can go in trying with one Congress to bind another Congress. We simply are not in a position to say dogmatically that that is done, because the current Congress could modify the situation. There is no way to make it binding, but surely the intent of the whole process is to see to it that we have a rationalized situation in which we have balanced things out and made all our decisions by the 25th of Septem- ber, which is 5 days before the beginning of the new fiscal year. Mr. ULLMAN. Cf course, any Congress can act to change it, but the bill is de- signed to have all appropriation meas- ures passed before the end of the fiscal year. It aims to eliminate the present system of having to operate under con- tinued resolutions, because we fail to get appropriate measures presented before the-end of the fiscal year. Mr. BOLLING. That is certainly the whole intent. Mr. MAHON. Mr. Speaker, will the gentleman yield? Mr. BOLLING. I yield to the gentle- man from Texas. (Mr. MAHON asked and was given Permission to revise and extend his re- marks.) Mr. MAHON. Mr. Speaker, I feel that this is a landmark bill today in the House of Representatives. This is not to say we have found the perfect answer on how to control the budget and how to ride herd on spending. We have not foimd the per- fect answer and much improvement is required in this direction. One of the main improvements is a determination on the part of the Con- gress to do a better job as far as legisla- tive enactment, but I think this bill be- fore us is an important first step. I want to salute the Rules Commit- tee and I want to salute the gentleman from Missouri (Mr. BOLLING) the gentle- man from Nebraska (Mr. MARTIN), the gentleman from Mississippi (Mr. WHIT- TEN), the gentleman from Oregon (Mr. ULLMAN), and all who have worked to- ward the accomplishment of this goal. It hardly seemed possible a short time ago that we would finally be at the point of enacting this legislation, so I think the Congress is to be applauded and I think the country will applaud the Congress for this effort?not because the bill is a perfect solution, but because it is an im- portant first step toward that end. Mr. BOLLING. Mr. Speaker, I thank the gentleman from Texas for his state- ment and I point out to the House that the gentleman has made an invaluable contribution in this process both by his work on the budget matter and also and in particular on the impoundment con- trol matter. Mr. FINDLEY. Mr. Speaker, will the ,gentleman yield? Mr. BOLLING. I yield to the gentle- man from Illinois. Mr. FINDLEY. Mr. Speaker, I was struck by the gentleman's comment earlier that the legislative budget under the rules reform we set in 1947 had not worked. Am I correct that in this new proce- dure which we hopefully will approve to- day that it will be necessary for the ini- tial budget resolution to be adopted by both Houses before ,an appropriation bill can ever be considered? Mr. BOLLING. That is correct. Mr. FINDLEY. I am gratified at that and I want to congratulate the gentle- man from Missouri and congratulate him especially for the comment he made about the need for the will to accomplish the procedure itself. Arthur Burns, Chair- man of the Federal Reserve System, took very favorable note of this bill in a com- mencement speech a couple of weeks ago, but he also added this: Procedural changes, however, will mean little unless the political will exists to ex- ploit the changes fully. And this can happen only if the American people understand bet- Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 H 5190 CONGRESSION AL RECORD HOUSE Juni 18, 19 ter the nerve or the flotation we have been experiencing and demand appropeate action by their (anted representenves. Mr. Speaker,' tberik the gentnan for Mr. QUIE. Mr. Speaker, will the ,mn- tleman yield? Mr. ROLLING.. I yield to the gentle- man from Miiinesoto. Mr. GIME. Mr. Speaker, first 1 com- mend the. gentleman and all taose who did such great work in putting this pxo- posal together and bringing it to us. My question is this: While we are moving to a new budget year, which will be from October 1 to September 3e, is there any requirement that oteer trats of Government shift to a different budget year, for instance, the school district or a State or any other unit of a government outside the Federal Government? Mr. BOILING. There is an. assumption that will happen and also a. pruviwarlIn the proposed bill that wooed proVide for very cereal study of the Procese of the shift. We are root proposing to shift next year in this. We are propoging to shift for fiscal. year 1977, which begins October 1, 1976, so we are fully cognizant of the dilemma and we hope this can be worked out in a coordinated &mitten., Mir. QUM. I thank the gentleman. Mr. MARTIN of Nebraska. Mr. Sneaker, I find inyself in the very em- barrassing posithen that I have II min- utes requested of me and I have ore y 6 minutes nanalriftg. I yied to the gentleman from Michi- gan. (Mr. CIEDERBERG asked and was given, permission to revise and extend his remarks.) - Mr. CMIXERI3ERG. Mr. Speaker, I rise In. support of this conference report arid commend the committee for the actions they have taken. However, I think that while we are here today as sort of a mutual admiration society thinking that we have done some great thine; on be- half of budget control, mid I hope we have, we have to recognize that we have yet to see the product of our efforts. Whether or not this is going to wore is going to be determined by the will of the people in this House. It strikes me as a little Incongruous, but when we are talking about budget control here I notice over In the other body they are talking about tax reduc- tion in the debt ceiling bill. That hardly looks like budget or fiscal control. Mr. Speaker, this conference report is a classic product of the lenslative proc- ess. It has been some 20 months In the making; first in the Joint Study Com- mittee-on Budget Control, where I served under the able leadership of the gentle- man from Mississippi (Me Witerree) the gentleman from Oregon (Mr. ULL- MAN) and the gentleman from Pennsyl- vania (Mr. Settivreszer). It has been led throught the legislative precess by the gentleman from Missouri (Mr. Eneemo) arid the gentleman from Nebraska, (Mr. MARTIN). It has been considered by two Senate committees, and was in confer- ence between the House and the Senate for over 2 months. House. There are features in the report that Individual Members may differ with. For example, I had hoped that the bill would set a deadline fbr enactment of authorization legislation, instead of the reporting deadline proposed by the Sen- ate and accepted by the conferees. I would prefer that the Congressional Bud- get Office be :Inited to direct support of the budget control process-. And I think that impoundment control is an issue whose. time has come and gone. Vet there is a critical need for a mech- anti= through which the Congress can establish and review budget totals, and relate its appropriations for individual programs to those totals. This conference report does provide such a mechanism, and I support it for that reason. It does not, and can not, ensure that this mech- anism will be used in a responsible man- ner. That will be determined by the con- gressional leadership, working with in- dividual committee chairmen and Mem- bers. I would like, to direct an inquiry to the gentleman from Missouri, who, with the - gentleman from Nebraska, and the other members of the Committee on Rules, has worked so hard to reach a compromise which is technically and politically ac- ceptable to all who have a vital interest in budget control. r think those efforts have been. successful, and the commit- tee has my compliments and arimiration. Now we must tum our attention to the future, and M the operation of this budgetcontrol mechanism. We are estab- lishing prroceclures which are new, and in many cases untested. In spite of our best efforts, some will not work, and come will work ifs ways we do not intend. I think it Is extremely important that we establish responsibility for the oversight of these procedures, so that problems can be promptly identified, and administrative or legislative remedies implemented. I think that the new House Committee on the Budget should have an important role in this oversight, because that com- mittee has the key legislative role in budget control, and its membership has been specifically defined to represent the Interests of the House. Would the gentleman from Missouri respond to this concern?' Mr. BOLT eNCS Mr. Speaker, in the first place, I have to say to the gentleman from Michigan, who has done so much on this matter on the floor, that I do not know. I do not know what the intentions are, because I would think that would largely be in the hands of the leadership on both sides and the members of the Budget Committee on both sides. I wculd envisage this would be a very careftd, continuing examination of the process, because I cannot conceive that this process, although it is the best that we can figure out, would be the best for all circumstances. I would think 'One of the first charges in that. Budget Committee and the staff of the Budget Committee and of the lead- ership would be to see if this is a prac- ticable outline of the plan. It really is no more than that. The gentleman Made very clear and very accurately, as a number of others The conference report should, and I have that it is going to take a tremen- Revenues are limitee., and we must O& le/C0/013I27,431A-PDP1751300380R00061000800034nY be- believe wel PeifRefea?e r think the oversight should come from the committee and from the leader- ship. Mr. CEDIERBERei I wented to get some of the legislative history. It is the gentlemen's- opinion tnat the Budget Committee of the House she aid have the primar' creasight in cooperation with the leadership? thMourghh373132C(I. 'Flat wuld be 1" Mr. BOLAND. Mr. Speaker will the gentleman yield? Me. BOLLING. lyfeld 2 minutes to the gentleman from Massachtisetts (Mr, noLAND.), (Mr. BOLAND' asked an wag given permission to revise end extend his re- marks.) Mr. BOLAND. Mr. Speaker, I rise in sueliort of tile conference report on the Budget and Impoundment Control Act of 1975. We are on the threshold of accom- plishing whet some felt was not possible only a. kw short morehs ago. I want to congratulate the, Members ,if the Rules Committee. and particularly Mr. BOLLING and Mr. Mettrier on. an excellent confer- ence agreement. I ales want to offer my thanks to the Joint Study Committee on Budget Control %here much of the early work on tackling this tough prob- lem was completed. And fleetly, want to pay special tribute to Gene Wilhelm and Bruce Meredith cI the Appropria- tions Committee Steil, and Larry :Filson. Allan Schick, John :Barriere?all have worked to pull together the scattered parts of the budget orocese into a co- hesive document. Mr. Speaker, this Meese is about to put Is-to place, the last :Anne. in the long effort to build a framework for effective budget tontrol. Each rear, Congress acts on a wide variety of bees. But this could be the single most enportent piece of legislation adopted in reeeni; times. Fis- cal peaky in the Congress has not been etimulated by choke_ Rather, it has been the victim of ccerfusio.a. Year aftet year, the amordpriations eteacied have totalled less than the executit e branch request- ed_ But legislation reported by other committees him gradually inereased out- lays through "backdocr- and other man- datory- spending. It is shocking when you realize, that the 13 major appropria- tion bills we act. on each year, represent only 40 percent of the Government's ex- penditures. The fact is that the deci- sions that determine. the ultmate shape of the budget are made?riot just in 13 major appropriation hels?but in more than 150 separate measures that have budget impact. This fragmented and uncoordinated messes denies :Mem- bers a vote on the most vital issues? what total expenditures should be--how they should be financed?and what pri- orities should be, assigned among com- peting programs. The conference agreement before us today provides us with the tools to gain control over all the budget, It provides us with the tools. to- determine effective priorities?to determine what old pro- grams should be &scar led, and what new programs should be no opted. desir- Approved For Release 2000/08/27 : CIA-RDP751300380R000600080003-9 June 18, 1974 CONGRESSIONAL RECORD ?HOUSE 115191 able objectives and concentrate our re- souroes on those areas that matter the most. This is an historic day in the House, but after all the work is finished, and after all the speeches are made, the only question remaining is will it work? Of course, I can not answer that question today?but I do know, that whether it works or not, depends largely on the will of each Member to make it work, The budget process is by definition complicated. The nuances of budget con- trol are complex. In many ways, this bug- et reform exercise is most useful because it helps educate each of us about what we have been doing out here. Let me cite two statistics. Only 28 percent of the 1975 budget is controllable. The balance goes to interest on the debt, revenue- sharing, farm price supports, and fixed payments to individuals. Payments to in- dividuals alone now comprises 44 per- / cent of the Government's total outlays. These payments are for social security, military and civilian retirement, unem- ployment assistance, veteran's benefits, medicare, housing payments, and public assistance. Seven years ago the same payments to individuals represented only 26 percent of total Government outlays. This is the heart of budget control and budget reform. We cannot continue ap- proving new payments for this group and new programs to solve that problem. But in a sense, that is,what we have been doing. The problem is that new programs have a way of developing powerful con- stituencies, and payments to individuals have a way of being made to voters. So In the last analysis, we come back to the question of Will. Do we have the will to make this new tool work? I hope we do because the alternative is a budget com- pletely out of control, and a nation which Is rapidly outspending its resources. When we vote to adopt this confer- ence report our work is only just begin- ning. This bill will provide us with an opportunity. I do not think we can miss this opportunity and I urge the adoption of the conference report. Mr. BOLLING, Mr. Speaker, I yield such time as he may consume to the gen- tleman from Mississippi (Mr. WHITTEN) . (Mr. WHITTEN asked and was given permission to revise and extend his re- marks.) Mr. WHITTEN. Mr. Speaker, as I said earlier, it has been a great pleasure to work with this committee. I do commend the members of the Rules Committee for the fine job they have done. Mr. Speaker, first, may I say I wish I could claim that the pending Congres- sional Budget and Impoundment Control Act would or could result in paying off the national debt of nearly $500,000,000,- 000; or possibly take up the extra U.S. dollar in the amount of $100,000,000,000 that each Japan and Western Europe has with which they bid up U.S. prices on lumber, coal, other raw materials and commodities, as well as land, causing much of our inflation. I wish I could say this measure would pull foreign aid back to assistance, for foreign aid is almost one hundred per cent inflationary. We sell our goods and commodities_to get our own money back; therefore, we have more money at a depreciated value and less goods which means higher prices in terms of U.S. dollars for everything. / cannot claim that this measure will ac- complish all that. The measure before us, however, will bring before the Congress and the Amer- ican people the whole story each year and each step provided herein is a step toward fiscal responsibility, determined on an annual basis. OUR JOINT COMMITTEE It was almost 18 months ago that the Joint Study Committee on Budget Con- trol had its first organization meeting and undertook its study of the inadequa- cies of our present legislative budget control system. I was pleased to serve as cochairman of the joint study commit- tee along with my colleague AL ULLMAN as well as the other 30 members of the committee. I am highly gratified that all 32 of us were able to agree upon a report and that the 32 of us joined in introducing the original bill H.R. 7130. Although it was not intended that we have agreement on many of the details of that original bill, we felt, nevertheless, that it was valuable in establishing cer- tain fundamental principals of budget control which are still incorporated in the final bill now before us for approval. H.R. 10961 Based on my experience with the Joint Study Committee, 1 was asked to study and examine the provisions of many other excellent bills, which had been prepared by the members of the Rules Committee and various of our colleagues. I did this and thought the best way to comment was to introduce a bill which in my judgment brought together the best parts of various bills that were before us. Thus, I introduced H.R. 10961 on October 16. I am glad that H.R. 7130, as finally agreed upon in the conference action, generally incorporates these revisions, all of which had the basic objective of sim- plifying to the greatest extent possible the new budgetary control organization and procedures. Very briefly, I would like to emphasize certain basic principles incorporated in the approval plan which I believe, based on our extensive study and deliberations, will assure the establishment of an effec- tive system of legislative budget control. CHANGE IN FISCAL YEAR The change in the fiscal year, which I had embodied in my bill, to the period of October 1 to September 30 will provide adequate time for consideration of the Budget and avoid the necessity of pass- ing continuing resolutions for the opera- tion of Government agencies pending passage of the appropriations bills. MEMBERSHIP OF COMMITTEE-ROTATION The establishment of budget commit- tees in both the House, and the Senate will provide the essential mechanism for coordinating revenue and expenditure actions and recommending a legislative budget. The bill properly provides that the membership of this coordinating committee in the House will give rep- resentation to the Appropriations, Ways and Means, and the Legislative Commit- tees, and the leadership of the majority and minority parties. The plan also pro- vides, as I proposed in H.R. 10961, that the members shall be rotated among the members of their parent committees to assure that the Budget Committee does not become a "super-duper" committee. The Budget Committee will have only the power to make recommendations in reference to the legislative budget, and all of its action will be subject to the majority will of the House. FLEXIBLE TARGETS-CONGRESSIONAL EXAMINATION The bill provides that Congress shall have an adequate opportunity to examine the budget from an overall point of view together with a congressional system of deciding program priorities. The mech- anism for providing this opportunity is the budget resolution. The first resolu- tion will set tentative total levels for new budget authority and outlays, the appro- priate spending level for each functional category in the budget, and overall levels of Federal revenues, debt, and surplus or deficit. Most important, and we learned this in our earlier unsuccessful attempts to establish a legislative budget, it is not feasible to establish a rigid, fixed ceiling on the budget at the outset of each ses- sion. The plan provides, therefore, as I proposed in H.R. 10961, that overall fig- ures and breakdowns in the initial reso- lution shall be targets, serving as guide- lines to the subsequent passage of ap- propriation bills. The complex and de- tailed compliance requirements and pro- cedures of the original joint study com- mittee plan have been dropped to permit Congress to work its will in consideration of individual bills, but with understand- ing of their impact in relationship to the targets. FINAL RESOLUTION The final budget resolution, to be en- acted after passage of the appropriation bills, will provide a final determination of the legislative budget totals with direc- tion to the Appropriations Committees and the Ways and Means Finance Com- mittees to take such actions in the form of a budget reconcilliation bill as may be necessary to conform to the revised budget total. This is a most important element of the budget control plan, for it assures that before adjourning, Congress will take responsible action to either re- duce its spending actions to conform to the target figures or pass such levenue measures as may be necessary to finance a higher spending figure. Finally, incorporated in the bill is the new procedure for processing the appro- priation bills, which I proposed to H.R. 10961. Prior to the reporting of the first appropriation bill, the Committee on Ap- propriations must complete its subcom- mittee mark-ups and full committee ac- tion On all the annual appropriation bills and report to the House a summary of its recommendation in comparison with the target figures contained in the first budget resolution. The conference agree- ment properly contains an exception to the procedure in the instance of those appropriation bills which must be de- layed pendin authorizations. This re- vised procedure for the handling of ap- propriation bills has the advantages of a Approved For Release '2000/08/27 : CIA-RDP75600380R000600080003-9 Approved For Release 2000/08/27 : CIA-RD-P75B00380R000600080003-9 11 5192 CONGRESSIONAL RECORD ? HOUSE dune 18, 1974 single package appropriation bill with- out its disadvantages. It will aseare that the Congress in its action on the indi- vidual appropriation bills willbe fully in- formed as of the over ali impact on the budget targets of the committee's recom- mendations as Well as the added impaet of any floor amendments that might be considered. In summary, I believe that the confer- ence agreement on H.R. 7130 prevides for a practical and woreable solution end will make possible more reponsible ac- tion by the Congress in its exercise of Its power of the purse. As is true of any sys- tem, however, it will not achieve this ob- jective unless it has the full sup-port of all of us. CONGRATULATE coztrEREEs Mr. Speaker, I conoeatulate Mr. BOL- LING, Mr. MARTIN and the other members of the Rules Committee w m served as conferees for the excellen: conference report on the budget control bill which they have brought back to the House for our approval. They have been able to keep intact the basic principals. organi- zation and procedure of the budget. con- trol bill passed by the House? last Decem- ber 4. They are to be cortmended for bringing back a conference bill, which I believe, will permit us to establish arid maintain a, legislative budget control sys- tem and yet avoid the many complexities that might frustrate a majority of Cori- gress in working its will on f seal minters. In the final analysis, eveay procedure and every action provided xi the bill, is subject to the approval of a majority of the Deembius Mr.13canntic,1%/fx.MARTIN and the other House conihrees have done a tremendous lob in bringing back to us such cm excel- lent conference agreement on this most complicated subject and I otrongly urge its adoption by the Notts?. Mr. BozaNci. Mr. St:eat:en 1 yield I minute to, the gentleman frora Texas (Mr. Pie). (Mr. PICK-hal asked and was_ given permis.sion to revise and ettend Ins re- marks.) Mr. PICKLE. Mr. Speaker, amt ex- actly 2 years ago I was joined by s4V- eral of our colleagetes particularly Mr. BARRANES, Kr. FORD, and Mr. Hariserieron here in a special order to diecuss the very problem we are addressing here today in final legislation. We were concerned that the ,Congress and the House of Represeatatives were losing control of the most precious and important power and eleced body can have: The eight to appropriate funds, that is, the power of the purse string. Throughoist history, who car:trolled the Goverranesat's purse strings beta man- dated whet really controllec the Govern- ment. Throughout historr, the power over the pause has meant; for elected bodies the difference betwee n wielding an equal role in Government or coneigninn oneself to the role of a were figurehead. Two years ago, when we addressed the House, the Congress was headed dawn the eguretreed road. We hod lost cor trot of the budget, arid the new administra- tive practice of policy impoundments was cementing the path. I tried to make the point that the choice of what would happen next was up to us in the Congress. We could either allow things to contiriue on that course or we could address the problem and reclaim our constitutional duty to control the Federal pursestrings. The situation as not the fault of in- dividual men or individual committees, for none are more dedicated than our able colleagues who have charge in their committees of the comings and going of Federal revenues. It was the system itself as it had evolved which was at fault. For several :vetoes, even before the im- poundment debate reached its peak, I had introduced legislation to restore fis- cal responsibility to our congressional budget system, and I had introduced legislation to change the fiscal year to allow the Congress a more reasonable and practical time to do its business. Those bills were somewhat along the same lines as the one we consider today. I am pleased to see this great new effort being made in these directions today. Shortly after the address to the House 2 years ago, I um joined by over a hundred colleagues in sponsorship of an anti-impoundment bill. That bill went through long and hard and vigor- ous debates, getting into the most basic of constitutional questions. Along the way, the anthirapoundment measures was wedded to the broader approach, an effort totally to reform the congressional handling of the budget and to increase greatly the oversight efforts of all con- gressional committees. I welcomed this marriage; I think the bill is the stronger for it. I commend Mr. latarera and Mr. BOLLING for this dedi- cated work in ,presenting this measure, and I commend Mr. MARTIN for his lead- ership and cooperation. My early preposals and the sugges- (ions of others. have been changed great- ly. Parts a the loill are hard to recognize. Other parts, however, seem very familiar to me the changing of the fiscal year, provision of spending targets and of a resolution of later developments with those targets, a recognition of the vast role Played by the so-called "uncontrol- lable" budget items in our outlay totals, and a serious lei:tint to equip the Con- gress with the maneower needed to handle today's huge Federal budget. Yet while changes have been made, all of the bin before us is obviously, to me. the outcome cif the serious and carefully weighed constitutional questions which were raised and remised, hashed about and rehashed about, until I think we have found a solution which will be not only constitutional but practical, not only practical but sound. r applaud the conference committee for its able work in oetting difficult is- sues, and I apPlaud all those who have labored so hard over the past years to bring this bill to fruition. This Is a good bill, and I urge each of my colleagues here today to vote for it? and to vote fcr a restonition to the Con- gress of our constitutional duties over the purse. This bill may riot be a cure-all. It may be only a bednnhan Its success will de Pend on the coaperallen of the Merelters. While most of us feel teat we might have finally at lorg last agreed t3 a budget- control proc.ess, and with it an anti- Impoundment provision, it really h basi- cally a new approacla e new start on fiscal responsibility. Mr. BOLIANG. Mr. Steaker, I yield 2 minutes- to the gentleman from New York (het Breieneet). (Mr. BINGHA1VI est:el and was given. permission to revise and exend his re- marks.). Mr. BING1UAM. M. Speaker, I am tempted to join those of my colleagues Who have hailed the nudget and Im- poundment Control net le "his boric," "monumental," and 'natal" legislation. but I am going to reset that temptation. I do so because no one can accurately predict how this bill. at ith all its com- plexities, Is going to wink out, and I con- fess to real trepidation on that sciore. However, I am impeessed by all the thought and hard work that has gone into this bill. Morectv tr it is clear that the final. version before us today repre- sents a marked impi ovement over the Initial drafts and the bills considered be the House ard the Senate originally. For example, I am please I to nate that the conference committee has incorporated provisions similar to an amendment I of- fered to the :louse bill 7-hict will tend to Insure that all apprcpriations bills are treated equally. The original House bill, 13.R, 7130, expressly rrevided that those appropriations bills which conformed to the targets in the first concurrent reso- lution en the budget woulc be enacted luta law, without awaiting: final con- gressional aetion on rill arpropriations bins, thus giving them a Lind of pre- ferred status. The con rei eriat report pro- vides in section 301(b) that the first con- current resclution on the budget can specify that all appropriations bfls not be sent to the President ur.til Congrese has completed a Septernbee reconcilia- tion of its ir.itial budget targets with its separate spending measures. This, then, appears to be the pi eferrel procedure, evert though the bir also allows "any other procedure which is considered ap- propriate to carry out the purposes of this act." There are many ot hie such improve- ments which together make this bill as tightly knit as ere could hope. The 1.3uctget Committee- and the Legislative Budget Office should give the Congrms o much firmer grip on the raising and ?.spending of tax dollare and replace the present piecemeal-, uneoordiriated proc- ess with a coordinated, comprehensive haProach to the Federal budget. It ehould also allow met itingful debates on national priorities al, the eginning of etch Congress which will le a welcome development. The impouncir lent controls In title X should eel the executive branch's abuse of power in this area. But, Mr. Speaker, the procedure is. necessarily I suppose, curabersorne. A great amount of adertaional work will have to be squeeeed into an already crowded co ngression al eacdar. The l'aGe between atttleneireation bills and ap- propriations bills in such areas :as for- Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 'June 18, 1974 CONGRESSIONAL RECORD ?HOUSE eign aid will become even more frantic. I cannot see how the expectation of the managers of this bill that future pro- grams will be authorized ak least a year in advance will be realized in MAW areas. However, there is no contesting the fact that we must try to make this pro- posed system work. I will join with what I know will be the overwheinling ma- jority of my colleagues in supporting the enactinent of this Legislation. , Mr. Speaker, / would now like to ad- dress a ceUple of questions to the chair- man., a,s he will recall, I proposed an amendment en the floor of the House which would delay the consideration of all appropriation bills until after the sec- ond concurrent resplution. Would It be a fair statement that sec- tion 301(b) if the bill reported by the Conference, which states that the origi- nal concurrent resolution can provide for that process, moves at least some of the way in the direction of treating all ap- propriation bills equally? Mr. BOLLING. That is correct. Mr. BINGHAM. Mr. Speaker, I thank the gentleman for his reply. With regard to the effective date tim- ing the bill, I notice a number of provi- sions. Is it the contemplation of the Com- mittee that the Committees will be ap- pointed promptly in this Congress so as to appoint the Director of the Budget Office and to proceed in the preparation for the coming year? Mr. BOLLING. I think it is safe to say it is the hope of tile committee, and all the committees which worked on this, that the matter would proceed very quickly, because it will take all the time they can possibly have for the people who are designated on the Budget Com- mittee and other committees to even meet the rather generous time schedule provided. Mr. 13INGHAM. Mr. Speaker, I thank the gentleman. Mr. MARTIN of Nebraska. Mr. Speak- er, I yield 2 minutes to the gentleman from Iowa (Mr. Gaoss). (Mr. GROSS asked and was given per- mission to revise and extend his re- marks.) Mr. GROSS. Mr. Speaker, a great day Is about to dawn in the House of Rep- resentatives. There has been a lack, we are told today, of will, discipline, and re- straint, and this budget control bill is going to cure all things. Bless your hearts and souls, you have had for years an antideficiency act, a perfectly good act, but what do you do with it? You come here each year with two or three and up to four deficiency appro- priation bills. You make the regular ap- propriations, and then come in later with deficiency bills which bear the sugar- coated titles Of supplemental appropria- tions. They are deficiency appropriations nevertheless and for the purpose of spending above the regular appropria- tions. They demonstrate the lack of dis- cipline and will to take the measures that are necessary to establish sound, respon- sible fiscal policy. _ Mr. Speaker, we also have a perfectly good act which provides that Congress shall adjourn each year on July 31. So what do we do? We pass a concurrent resolution setting that act aside and Con- gress gleefully goes its way for the rest of the year, almost celebrating Christmas Eve in session. Yes, Mr. Speaker, with this bill, every- thing, and everybody is going to be re- formed. Everything is going to be hunky- dory, and the goose is going to hang high. If we just pass this bill, we will have brought into play all the will, all of the restraint, and all of the discipline that is necessary to balance the budget, stop Inflation, and restore fiscal sanity. Do not believe it for 1 minute. I will not be here when this alleged reform goes into operation, but I predict Members of this House and the Members of the other body will quickly find ways to warp and bend the reform rules laid down here today and, at least, some of the Members present on the floor will be a part of it. Mr. Speaker, this legislation is another resort to gimmickry. The issue of budget and spending control can be met here today, tomorrow, and the next day if the Members of Congress will but exercise the courage and determination. This is again misleading the public and I predict again that time and events will prove it. Mr. BAUMAN. Mr. Speaker, I wish to endorse the remarks just made by the gentleman from Iowa (Mr. GROSS). I think I shall have those remarks en- - graved in stone, and present them next year at this time, after the gentleman has retired from his many years of dedi- cated service to his country, to the many who have made glowing speeches here today about budget control, but who will probably end up voting for more back- door spending and bigger budget levels the moment we approve this bill. Make no mistake: this bill is a step forward, and it will help. But it is not a panacea, and it will only be as effective in enforcing budget control as the col- lective will of the Members of this Con- gress. While it will lead to a more orga- nized method of approaching the budg- etary responsibility, it contains no guar- antee that the overall level of Federal spending will be held to a reasonable limit; only firm resolve on the part of Congress can insure that. It does not guarantee an end to red ink in the Gov- ernment's books; only a balanced budget amendment to the Constitution, of the sort which I have introduced in this House, or similar action, will assure an end to the practice of spending more than we take in each year. And it certainly will not assure a rational approach to the expenditure of the taxpayers' money?we will still be free to. spend that money on as many foolish and ill- advised programs as a majority of us like. In addition, the final conference ver- sion of this bill does not contain several key elements which were included in the original House bill. The measure does not include present programs under the limi- tations placed on backdoor spending, which represents a significant weaken- ing of the bill. The provisions requiring committee oversight and review of exist- ing programs, an essential part of any H 5193 effort to weed out programs which are unproductive, or which have outlived their usefulness, have also been watered down. In short, the Budget and Impound- ment Control Act will give us the tools we need to approach the budgetmaking process in a responsible and organized fashion. But we must use these tools effectively. If we approach them as troublesome annoyances and work around them, then budget control will be a sham. If we employ them intelligently, and combine them with a willingness to hold down the overall level of spending, then we may succeed in bringing fiscal responsibility to the Federal Government for the first time in my memory. I pledge to work toward this goal, and I hope that the other Members who have praised this bill so eloquently today will do so as well. I only wish that we could look for- ward to the wise counsel of the gentle- man from Iowa as we implement its pro- visions. Mr. BOLLING. Mr. Speaker, I would like to yield 1 minute to the gentleman from New York (Mr. BADILLO) . (Mr. BADILLO asked and was given permission to revise and extend his re- marks.) Mr. BADILLO. Mr. Speaker, I rise in support of this legislation. The legislation before us this after- noon is a corn signed to end in which the prehensive measure de- the haphazard manner Co has dealt with mgress, for far too long, the Federal budget. Not only will this measure be one of the most vital and urgently needed to be acted upon by this Congress but its passage will mark a siguificant reform in both congressional procedures and in legisla- tive-executive relationships. As the New York Times very appro- priately observed editorially earlier this month? Until now a lapse and fragnm nted budget process has often caused spen ling to veer out of control, with serious lnflE tionary con- sequences. Further, in view of the abs nce of any substantive coordination 131 tween the appropriations and revenue r using com- mittees of both Houses, fisca policy has been a major cause of insta bility. By providing a mechank al for the Congress to regain control ov uo. the Fed- eral budget?through the cr.!ation of a procedure for viewing the budget as a whole and determining the desired levels of spending, revenues, deficit or surplus and debt in a manner affecting the over- all economy in the most advantageous fashion?H.R. 7130 will bring some order out of chaos. By restoring the Congress to its proper role in the budget process this measure will correct the serious im- balance of power which for many years has rendered the legislative branch in- effective when faced with a better orga- nized and more purposeful Executive. The annual budget battles which have ensued have been terribly damaging to the democratic process and to economic stability and have frequently jeopardized programs which have sought to provide remedies for many of the domestic ills confronting our people. Further, the Con- gress has been in a difficult position to Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 11 5194 CONGRESSIONAL RECORD ?HOUSE June 18 .197 achieve a meaningful reorderinZ of na- tional priorities because of our unwilling- ness to take the initiative to rationally manage the budget. 'MS legislation contains a number of progressive and useful features which will not only stitainline the whole budget process but will make it Mcre funetional and respOrtisive to the needs, of the coun- try. Thrones the istablishrr exit of budget committees in each house--aided by the Congressional Budget Office?the Con- gress will be able to effectively match the executive's fiscal expertise and will certainly better equip us to determine spending priorities. Further, E.R. 7130 will set a procedure to prcvide for con- gressional control over the enpoundmerit of funds by the President, a device whose necessity has been highlighted by the ir- responsible and detrimental impotnd- ments of the Past several years,. As the distinguished gentleman from Oregon (Mr. thermal) is quoted as hav- ing declared, the Congress acannot con- tinue our present course of fiecal irre- sponsibility without destroying the Na- tion. Congressional budgeting has to be the first step." The reform measure we are now considering cant be delayed further and we Must Move affirMatively to correct present deficieneies and enact this conference report to enable us to properly meet national economic needs and overall budget priorities. Further, this legislation Will aid in placing the interests of the people above narrovv spe- cial interests in shaping the Federal budget min, hopefully, will -assist in re- storing eolblic confidence in governraen- tal preceaes. Mr. MARTIN of Nebrail, 6?. Mr. Speak- er, I yieki Myself the balance of my time. BROTZMAX Mr. Sc eaker, will the gentlenlatt Yield? Mr; MARTIN of Nebraelta. t yield to the gentlem.an froth Colorado. (Mr. BROTZMAN asked and was Oven permission to revise and extend hie re- marks.) Mr. BROTZMAN. Mr. Speaker, I rise in suppert of this particular confer ence report, as did the bill I rise ia support of the conference re- Port on I.R. 7130, the Congressional Budget 'and Impolindnient Centro] Act of 1971. T congratulate the members of the conference cornmittee for their good work in reportifigThis 'agreement to the floor; an agreement that is nonpartisan and protects the best irterests of the American people. This legislation represents a big step forward in dealing with the catastrophe of inflation that has been 4o damaging to the well-being of this Nation. It e; no ex- aggeration to say that inflation is the most severe economic problem now con- fronting this country. Consumer prices have risen to exorbitant highs, end pur- chasing power has eroded to record lows. The Zchief cause of this insidious growth of inflation has been irresponsible and uncontrolled Govereenent spending. Until now, the President'; impoundment of funds has been the only thing keeping this spending under control. I beheve that impoundment of funds ultimately works to the detriment of every Ameri- can citizen by weakening the separation of powers between the executive and leg- islative branches. However, if the Congress were to de- stroy this power to 'impound funds, with- out first providing the machinery to re- sponsibly handle the Federal budget, the result would be bankruptcy for the American people. There must be a mechanism in the Congress to effectively limit congres- sional spending and this bill accom- plishes the goal It sets up budget com- mittees within both bodies of Congress to coordinate and monitor budget out- lays and authority. The committees are responsible foe reporting resolutions that will set a statutory spending ceiling for the Federal Government and also deter- mine the overall levels of Federal rev- enues and public debt, and the result- ing surplus or deficit levels. The bill permits the President to im- pound funds solely for contingencies or to affect certain savings. The President is required to report any impoundment action to the Congress by means of a deferral message, and the Congress is given the right to pass an impoundment resolution disapproving the deferral, thereby making the funds available for their intended purpose. Mr. Chairman, by setting a limit for expenditures, this bill reaffirms, in Con- gress, the constitutional prerogative for controlling the Nation's pursestrings. Fis- cal responsibiliey and constitutional Power must go hand in hand if the Con- gress is to deal wip the rampant rise in inflation. Mr. MARTIN of Nebraska. Mr. Speaker, in the 1 Minute which I have remaining, I would again like to point out that this legislation will work only if the Members of Congress, of both the House and the other body, have the will and the determination to carry through and make it work. That is extremely important. Mr. Speaker, as I pointed out in earlier remarks, the bill is very, very flexible. There are options in the House for not making it work if the Congress and the committees do not have the will to carry through. But I hope, Mr. Speaker, that we: de have the will in future years and that it will work and will improve the operation of the Congress and be of great benefit to the entire Nation. Again. I want to point out that this is only one-half the package. The other half of the package is the Reorganiza- tion Act, which I hope we can have be- fore us on the floor of the House in the very near future. Mr. BOLLING. Mr. Speaker, I yield myself the balance of my time. Mr. RANDALL Mr. Speaker, will the gentleman yield? Mr. BOLLING. I Nield to the gentle- man from Missouri. Mr. RANDALL. Mr. Speaker, for all of the Missouri delegation let me say we are proud today of the elean of our delega- tion for his leadership in the Congres- sional Budget and Impoundment Control Act. Let me quickly add the view that I am not as pessemistic as some Members who have just taken the well?that this legislation may be meaningless. On the contrary I ara almost certain this legis- lation will help the Congress do a better job in making expenditures?equal? rather than exceed revenues. Mr. Speaker, I rise in enthusiastic sup- port of HR. 7130. There are so many meritorious provisions in th.s important piece of legislation that it will not be pos- sible to mention, even briefly, all of them. In just a 'Very few words the legisla- tion which we refer to as the Congres- sional Budget and Impouridraent Control Act of 1974 establishes two 'oudget com- mittees consl,sting of 23 Members on the House side and 15 Members on the. Sen- ate side. It illso provides for the estab- lishment of a Congressional Budget Of flee, changes the fiscal year and provides impoundment review procedures. A casual glance at some of the action that was taken in order to arrive .at this stage of the conference report will show that nearly idl of the activity in the early stages have been by either unanimous vote or by such a substantial vote as to be virtually unanimous_ For example, the report of the Joint Study Committee on Budget Control was adopted on April 18, 1:)73. Thereafter this report was approved by our Rules Com- mittee on Novernber 20. 1973. Thereafter this legislation passed the House on De- cember 5, 1973 by a vste of 286 to 23. On March 22, 1.974 very similar legislation, if not identical, passed the i5enate unan- imously. Then, when the conferees got together fox their deliberations the con- ference report was agreed to unani- mously on June 17, 1974. All of the foregoing should speak elo- quently of the fact that this legislation before us today must be of such great tonsequence and of such merit and ex- cellence as to be almost unanimously ac- cepted throughout it legislative history. Perhaps it should be emphasized that what we have before us today is the de- sign for promdure that will aid and assist the Congress to arrive et better in- formed and better prepared decisions and conclusions to see to it that the fund- ing which :s appropriated does not ex- ceed the revenues which are available. During some of the debate several months ago in the House one Member who said that action on the congres- sional budget measure made the date a red letter day was promptly challenged and corrected to say it would be more appropriate to refer so it as a black letter day because a legislation of this kind should go a long way in the future to keeping our Government in the black rather than having to use more Ted ink. Some have been eereedingly pessimis- tic that the Control Act will not work. The best way to look at this new measure, however, is with an atetitide of optimism. Whether it will work or not will depend on whethe;:* Congress wants to make it work. It can be a worthless effoet today and all of our action today can be an exercise of rhetoric unless we are deter- mined to make this new machinery work. For my part I hope and pray that the membership of thin Congress and the membership of the next Congress will share the determination to make this new Control Act workable and effective. There is little value in discussing the dates when authorization must be corn- Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 Approved For Release 2000/08/27: CIA-RDP75600380R000600080003-9 June 18, 1974 CONGRESSIONAL RECORD ? HOUSE plete ancl when the committees must act. All of these timetables are spelled out In the bill and in the report. Some have described this legislation as historic; others have said that it is land- mark legislation. It is my hope that it will Serve as an effective tool that will enable us to set some priorities in our expenditures, Also there must be a will and a determination in setting these priorities to exercise some self-restraint. Mr. Speaker, the action on this con- ference report today is essentially a re- affirmation of the congressional power of the purse. This is indeed a historic day. The need for this legislation has been Clear for a long while. The end result of what we do here today may not be fully foreseen at thia moment but I predict it very well could or might product a pro- found result in the not too distant future because this should enable the Congress through its congressional budget com- mittees to zero in on budget totals and thus arrive at more carefully appraised appropriation legislation that comes within the revenues available. To assist the budget committees, of.. course, is the Congressional Budget Office whose staff would serve both the Senate and House committees. This office will have the advantage of computers which are now available only to the executive branch,. This office would submit annual reports to the two Budget Committees to assist them in preparing their own Congressional budget. Please note we are ? speaking of a budget prepared by the Congress not one that comes up from downtown and is handed to us on a take It or leave it basis and which we always seem to swallow no matter how unpalat- able it may be. 'What we do here today may not be the perfect answer but it certainly is an im- portant step. It is even hard to believe we have come this far. Perhaps the Congress should take time to congratulate itself. In my judgment, the country will ap- plaud what the Congress is doing today. This conference report is the last stone In the structure that started way back in the fall of 1972 when the House imposed a limit of expenditures of $250 million on itself for the first time ever. The legislation today gives us the tools for budget control. Certainly our reve- nues are limited and always will be. Cer- tainly there are many meritorious de- mands on these revenues. The procedures we establish today will simply enable the Congress to cut the pie and divide the portions according to the highest priori- ties. Mr. Speaker, budget control is only part of the tools provided by H.R. 7130; the other part, impoundment control. The President may now withhold funds under the Anti-Deficiency Act but under the terms of this new bill he must notify Congress of his actions, then the Con- gress has 45 days in which to act by way of disapproving resolutions. Put differ- ently, when the President believes a pro- gram should be rescinded for fiscal policy reasons he must submit to Congress a recision. message, explaining his action. Thereafter, both Houses are given 45 days to pass a recision bill which rescinds the amount proposed by the President. Otherwise, the funds will be made availa- ble as appropriated. If the President only wishes to tem- porarily defer an expenditure but not terminate the program under this bill, he must submit a deferral message ex- plaining his action. This procedure differs from a recision message because under deferrals the President must make the impoundment available if either House passes an impoundment resolution disapproving the deferral. This act con- tains the authority for the Comptroller General, with congressional approval, to bring suit after the recision and deferral decisions are complete. While H.R. 7130 is important as a budget control tool it is also important as a tool to fight the impoundment proc- ess of funds appropriated needed to carry out authorized programs so urgently needed by our people. We have seen in the immediate past of impound- ments of agricultural, educational, and House programs that have suffered by ill-advised and unwise impoundments of this administration. Mr. Speaker, the legislation before us today will give us the opportunity to do what we have always said we should and ought to do and that is exercise better control of expenditures. Once again, let me say it is more than an opportunity, it is an effective tool. I predict that the Congress will make good use of this tool. The legislation em- bodied in this conference report today may very well be the means to achieve fiscal commonsense in the future. If we are not determined to make these proce- dures work, those who fail will find that the people will not long tolerate such failure. Mr. GILMAN. Mr. Speaker, will the gentleman yield? Mr. BOLLING. I yield to the gentleman from New York. (Mr. GILMAN asked and was given permission to revise and extend his re- marks.) Mr. GILMAN. Mr. Speaker, I rise in support of the Congressional Budget and Impoundment Control Act. We have been awaiting the conference report on this measure for some time now and it is gratifying that the con- ferees have finally come forward with a viable proposal. As a freshman Congressman, it was dismaying to discover the haphazard method by which the Congress spends the taxpayers money?authorizing and appropriating billions of dollars without setting any spending ceiling or without considering the inflationary conse- quences of responsible spending. Passage of this legislation is a land- mark achievement of the 93d Congress. For the first time, we will be working with a unified budgetary process and there will be one central committee recommending levels of budgetary out- lays, as well as setting overall levels of Federal revenues and public debt. This will start Congress on its way toward seeing both the forest and the trees of fiscal policy. It is especially important to pass this legislation because we probably will not have the opportunity of voting on the II 5195 committee reform measure which was carefully prepared and presented by the bipartisan Committee on Committees which was formed to restructure the an- tiquated House committee structure. That worthy proposal has apparently been sidetracked by a handful of the members who are reluctant to consider any reform which may weaken their own powerful positions. Accordingly, I urge my colleagues to wholeheartedly support this worthy fis- cal reform measure which may well be our only opportunity this session for put- ting the lid on massive Federal spending which has become such a tradition over the past few years in Congress. Mr. BURKE of Massachusetts. Mr. Speaker, I rise in support of the legisla- tion before us, H.R. 15124, which will extend for 1 year the current author- ity for SSI recipients to participate in the food stamp program. In my own home State of Massachu- setts, as well as in four other "cash-out" States, the impact of this legislation will be the continuation of a cash supple- ment in lieu of food stamps/commodity distribution program. Without the ex- tension, the State would have to evaluate each SSI case to determine the effect of the State's food stamp/commodity dis- tribution cash out on each of the aged, blind, and disabled recipients, at great administrative expense and burden to the State. Under recent Federal law, effective July 1 of this year, SSI recipients would be eligible to receive food stamps only if their current income level is lower than the combination of welfare payments and the cash value of the food stamp bonus to which they were entitled back in Decem- ber 1973. Congress, subsequently, enacted a temporary suspension of this law. Un- der the 6-month suspension, which will expire on June 30, five States were per- mitted to completely cash out the food stamp benefits for SSI recipients. Massa- chusetts, California, Hawaii, New York, and Wisconsin now provide an additional cash supplement to all recipients of the SSI program to replace the bonus por- tion of the food stamp or surplus com- modity distribution program benefits. In the remaining States, eligibility for food stamps is automatic for SSI recipients regardless of their income level. The bill also remedies an unusual sit- uation that has developed in the five cash-out States. Those SSI recipients who had been receiving more under the old welfare program?at a rate higher than the States average SSI payment level?when they were converted to SSI, did not receive the cash-out bonus value of food stamps/commodity distribution program. They were converted at the rate of public assistance they had pre- viously received, with a total disregard for the benefits they had received through participation in the food stamp/ commodity distribution program. The value of the lost income is estimated at abount $10 per person a month. For this special category of SSI recipients in cash-out States, the bill requires that States include in their mandatory sup- plementation payments an amount equal Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 H 5196 CONGRESSIONAL RECORD --HOUSE June 18, .1974 to the bonus value of the food stamps/ commodity distribution program. Mr. Speaker, we cannot afford to delay passage of this legislation which will ex- tend the current food stamp eligibilits rules, and cash-outieprovisicrna for the five States, for 1 year, or we will saddle the States with the mammoth task o costly eligibility determinations. The ex- tension will, allow us the titre to work toward a permanent solution to the knotty question of eligibility wider the SSI program. Mr. HOGAN. Mr. Speaker, I rise to state that I am fully in support of the efforts being made here today to get the Congress' fiscal house in order Fit long last. Ever since I was elected to Congress in 1968, I have been among those urging a commitment to greater fiscal mspon- sibility. Unfortunately, that commitment has not been strong enough with enough Members of this House, and the result has been a national economy suffering under the heavy burden of rampant fn - flation. At the heart of our economic problems, in my opinion, is the policy which the Federal Government has followed with alarming consistency over the past 10 years--tha policy of spending more money than it takes in, This policy of deficit spending has brought about fin increase of $148 billion in the national debt over the last decade. Since 1964, the national efebt has gone from $317 billion to $490 billion, and Yee are now paying nearly $30 billion a year Just for interest on the national debt, This re:Presents almost 10 percent of the entire Federal budget that we are spending lust to pay for past economic mistakea When we talk of reordering priorities, we need look no further than this inter- est payment on the national debt to see one major area that could stand some reform. We cannot expect inflation to be -really slowed, or the dollar to be really sound, until we decide to stop spending money as if it grew on trees inatead of coming out of the taxpayer's pocket, I belheve the legislation we are consid- ering today represents a giant step for- ward in the process of regaining some sense of fiscal responsibility as well as budgetary authority. In setting an overall target ceiling for congressional spendoig, this legisla- tion for the first time says "No" to the spending sprees the Congress has em- barked on so many times in the past, with no regard for the means to pay our bills, and no thought given to the pos- sible effects of such wanton spending on the Nation's economy. If this spending limitation is set in conjunction with anticipated revenues for a given fiseal year, and if we do not exceed that limitation then we will be exercising fiscal responsibility. And any ProPosal whose cost would exceed that limitation should be made to provide for a system of taxation to pay for the ex- cessive cost. I believe this is the key to staying at a responsible level of GoVernment spend- ing, and I am committed to keeping a close watch ovee the Nation's purse strings so that American people can keep more of their own money in their own pockets. The bill would create a 23-member Budget Committee in the House and a 15-member committee in the Senate, with a joint professional staff to serve both committees. These committees would recommend. annual budget outlays, revenue levels, and other spending policies, and follow a step-by-step procedure for considera- tion of the budget that would greatly im- prove the efficiency and the overview ca- pabilities of the Congress. We have not had the benefit of such a centralized ar,d comprehensive budget supervision in a very long time, and the results of this incohesive approach speak for themselves?a national economy too long plagued with the curse of inflation, a curse that has brought on higher and higher prices or consumer goods, de- mands for higher and higher wages, seri- ous deficits in our international balance of payments, and a lessening of con- fidence in the American dollar within the world financial community. We have the opportunity before us to- day to remedy these economic ills and to prevent them from recurring in the fu- ture. Let us seize the opportunity; let us enact this much-needed legislation. Mr. SISK. Mr. Speaker, perhaps as never before, this Congress has the op- portunity to strengthen and make mean- ing out of the separation of powers clause, one of the most fundamental pro- visions of our Government. During the first session, the 93d Con- gress made a significant stride in regain- ing its rightful authority with enactment of the War Powers Act, and now it cean take another step by passing the budget control bill. Never before has one branch so effec- tively become the dominant force in American polities as has the executive branch. For the last four decades, the Congress has been playing subaltern to the President, watching as undeclared wars were fought, international agree- ments were entered into without benefit of treaty, and the Nation's priorities were set by the White House. The Preside-ncy has reached such a stature of political power and personal prestige that some believe it impossible for Congress to contest the executive branch on equal terms. But in what could be one of the most significant reasser- tions of congressional prerogatives, the Congress has the opportunity to stop the arrogation of power of the Nation's purse strings. There are several significant provisions in the budget control bill, but none are as important as the prohibition against impoundment by executive fiat and the requirement that Congress, for the first time, estanlisai national priorities and fix a spending ceiling for each year. For the public, the legislation means two things: No longer will a President he able to arbitrarily withhold legally ap- propriated. funds for programs, such as housing, education, arid community de- velopment. Second, Congress cannot be a free-spending body, refusing to treat the $300 billion FeCeral budget as a total document but merely as a cumulation of figures for splintered programs 'which have no relationship to pie another. It is generally agreed, I believe, that budget reform would not be on Congress' docket had President Nixon not, resorted to executive impoundments to eliminate domestic programs he did not favor. Surely, no President in this country's history has ever used impoundments to the extent Mr. Nixon has. But the President is cot rect. when he charges Congress historically as failed to control the budget. The Federal budget has steadily grown withcit Cot gress con- cerning itself too much with the totals, and clearly Congress his never made a concerted effort to identify the priority needs of the Nation. It has simply been too easy for both Chambers to pass sup- plemental appropriations bills when it became apparent that the programs they had approvea demanOcal a far higher budget than was initials- approved. Congress must eome to grips with the realization that it cannot continue to be the free wheeler any longer and that by establishing priorities, It must also be willing to eliminate oi cut back on pro- grams which are not mccessful or have basically only special interest appeal. It will not be sufficient, however, for Congress me:rely to iina.ct budget control legislation. We must make it work, we must be willing to hold to a spending ceiling, we must decide what are the Na- tion's most pressing needs. Without such corrunitment, then the legislation will only be paper and words 'aithout sub- stance. I know that the two men most instru- mental for the budget control bill, the Honorable At, ULLMAN of Oregon and JAMIE WH/7TEN of Mississippi, who co- chaired the Joint Study Committee on Budget Control, want and expect this legislation eo work ao intended. . I think this Congress owes Mr. ULLMAN and Mr. Wreflazer its thanks, and it clearly would be a diegrace to those gen- tlemen and to the Congress as a whole if we do not fully irriplerneit budget con- trol and adhere to its prpvisions. After long and arduous hearings, which con- tinued over several months, this legisla- tion may :have vers well died had it not been for the perseveniance of Mr. T.JramaN and his repeated pleas to ;he Rules Com- mittee to aeep working to make this pro- posal a reality. I am sure no one knows more than Mr. ULLMAN of the strong ainount of opposition that eaosted at one time over budget control legislation. But now, thankfully, that has been overcome, to large degree, and much of the reason is a result of the work that Mr. Uterimer gave to this ver e important piece of legislation. Mr. Speaker, ah,o would like to com- mend the Rules Cortuniteee and the Hon- orable RICHARD ROLLING of Missouri, who chaired the House conference committee from -sivnich the final budget control leg- islation emerged A great deal of time and effort has been spent for us to reach this point, and we shoold not forget to acknow:adge thoee who designed the leg- islation and gave us the opportunity to Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 Approved For Release 2000/08/27,: CIA-RDP75600380R000600080003-9 June 18, 1974 CONGRESSIONAL RECORD HOUSE regain the authority that the Constitu- tion gave us, but which we allowed to slip from our hands. Mr. BROYHILL of North Carolina. Mr. Speaker, I rise in support of H.R. 7130, the Budget and Impoundement Control Act. As an original member of the Joint Study Committee on Budget Control. I believe the bill reported by the conference committee is a very good piece of legislation, one worthy of favor- able consideration by my colleagues. As we ;111 know, the Constitution dele- gates control of the purse to the Con- gress. In this legislation, we are reaffirm- ing the position of Congress as the guardian of the Treasury by establishing a legislative budget process for deter- mining national policies and priorities and by providing for congressional re- view of any impoundment of funds by the executive branch. In our Govern- ment of shared powers, the spending of money is a two-stage process: First, the money is appropriated by Congress as a method of determining national policy; then, these funds are spent by the exec- utive branch as a means of carrying out that policy. Unfortunately, this has not always been the case, eSpeeially in recent years. In my 12 years in Congress, I have be- come increasingly concerned with the appropriations and budgetary process in Congress. The source of my concern lies in the procedural mechanics of the ap- propriations process. While these me- chanics make it possible to reach legis- latively wise and prudent decisions on Individual programs, they also make it exceedingly difficult to frame our deci- sions In terms of the larger and equally important context of the budget?and the direction of the Federal Govern- ment?as a whole. One of the leading faCtors in the breakdown of the appropriations process Is the rapidly increasing size of the Fed- eral budget. During the past 25 years, the budget has increased annually by $15 to $20 billion. At the same time, the size pf the Federal deficit has grown, from $1 billion in 1900 te $500 billion in 1974. The United States is in the vise of a budget gone out of control. And yet, the Congress makes little, if any, effort to review the total budget and its implica- tions for the American economy and the direction of general government policy. A second major factor is the increasing number of programs funded by the Fed- eral Government. Within the last decade, poverty, the envirbnment, energy, and health care, have all become significant focuses of national concern. In response, the Congress has directed the Federal Government to implement programs to meet these concerns and, as a result, America is confronted with a complexity of national priorities. However, there is no institutional arrangement in the budget process of the Congress to facili- tate the hard spending decisions which must be made between competing pri- orities and programs. This lack of an Institutional procedure for crucial pri- ority decisions leads to the partial fund- ing of many programs, rather than the selective or full funding of the most critical programs. The end result is a wasted taxpayer's dollar. I firmly believe H.R. 7130 will correct these problems. First, the bill changes the fiscal year to an October 1 to Sep- tember 30 cycle, giving Congress 3 extra months for budget work. Second, it cre- ates new budget committees. Comprised of 23 members, the House Budget Com- mittee, with the assistance of the Legis- lative Budget Office, would offer an initial budget resolution to be adopted by the Congress by May 1. This concurrent reso- lution would establish guidelines for the processing of appropriations measures through Congress: It would set tentative total levels for new budget authority and outlays, the appropriate spending level for each functional category in the budget, and the overall levels of Federal revenues, debt, and surplus or deficit. The second budget resolution, to be adopted by September 15, would estab- lish the appropriate level of budget au- thority and outlays and, if necessary, call for implementing legislation to be reported out by the appropriating or revenue committees of Congress. The im- plementing legislation would be in the form of a budget reconciliation bill, pro- viding for the rescission or amendment of appropriations or for adjustments in the tax rates. Following completion of this process, the appropriation bills would be sent to the President. Title II contains the basic impound- ment control features provided by H.R. 8480, which passed the House last July. I voted against H.R. 8480 because I be- lieved that passing anti-impoundment legislation alone was not the answer; rather, the Congress must first exercise its responsibilities to set and to live with- in reasonable spending levels. This is ac- complished in H.R. 7130, and congres- sional control over impoundments can be viewed from an entirely different stand- point. First, there probably will not be any need for impoundments and, second, if impoundments do occur, they can be reviewed under the procedures estab- lished by this legislation. Briefly, if funds are impounded, the President has 10 days in which to transmit to Congress a spe- cial message setting forth the details of the impoundment. Impoundment of funds must cease immediately if either the House or Senate disapproves the ac- tion within 60 days of continuous session of Congress. If the President fails to transmit the impoundment message to Congress, the Comptroller General is to report the impoundment to Congress. Additionally, the Comptroller General is empowered to sue any department, agency, officer, or employee of the U.S. Government in a civil action to enforce these provisions. Mr. Speaker, as I said at the outset, H.R. 7130 reaffirms congressional control over our Nation's budget and its pro- grams and priorities. It is necessary leg- islation. As the conference report so aptly stated: Congress must not permit its own vital and constitutional role in deciding spending priorities to lapse by default. It will surely do so if Congress does not provide a suitable and equitable institutional mechanism to preserve its legitimate prerogatives. H5197 I urge the passage of this most worth- while bill. Mr. ALEXANDER. Mr. Speaker, the Congressional Budget and Impoundment Control Act of 1974 is the most significant piece of legislation to come under con- sideration by the 93d Congress. Indeed, putting a congressional halter on the Fed- eral budget may very well be the most important legislation of this century. The Inability of Congress to control spending has eroded public confidence in the people's branch of our Government. People deserve a dependable level of fiscal responsibility. Under the present system Congress is fiscally irresponsible. The American people demand and deserve re- lief from the undermining forces of the spiralling inflationary trend that per- meates our economy today. Trust and confidence in democratic Institutions is maintained by a proven ability to get the job done. And, if trust in the Congress is lost, the electorate will begin to depend totally on an unelected, unconfirmed, and undemocratic bureau- cracy. Such is the case in our Nation. Executive impoundment is nothing less than an assertion of the legislative power to spend by the President and his ad- visers, because the congressional mech- anism for handling the budget does not adequately protect the people's interest in a sound economy. Through this landmark legislation, Congress for the first time will have a vehicle to commit itself not only to the stopping of debt creation, but also to the budgeting of a definite amount each year as a payment on the national debt. Inflation is undoubtedly the most criti- cal problem confronting this Nation to- day. Some economic advisers have taken the view that, if left alone, the disease will run its course and disappear. That may be fine for a common cold, but it Is no good for pneumonia?and the pres- ent rate of inflation is clearly assuming the symptoms of the latter. At present we afre drifting toward the double danger of inflation and recession. But there is a way back to economic health and sanity. The Congressional Budget and Impoundment Control Act is the road to a sound economy. I urge my colleagues to support this legislation and restore the power of the purse to the branch of Government which our Found- ing Fathers intended. Mr. O'NEILL. Mr. Speaker, I rise in strong support of this conference re- port and want to heartily commend Dim BoLLING and all the House conferees for their diligence and responsible efforts in giving us legislation which will restore to the Congress its rightful role in deter- mining the spending priorities of ths Nation. This conference report is a balanced and workable compromise incorporating the outstanding merits of both House and Senate versions. It promises meaningful and attainable improvements in the congressional budg- et process and will give to the Congress a stronger hand hi deciding budget to- tals, and thus, in controlling runaway in- flation. It preserves and strengthens the au- thorization and appropriation machinery Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 Approved For Release 2000/08/27 : CIA-RDP751300380R000600080003-9 11 5198 CONGRESSIONAL RECORD ? HOUSE of Congress, while at the Sainta time en- abling Congress to review and ternathate the impouncimertt of ftnads by the execu- tive branch. The Constitution gives to the Congress the power to empropriate money find ttlti- mately to control how that money is spent. The inaneamdment provision re- quires the President to come to Congress when he decides to impound. This is as it should be. For it is the rightful pre- rogative of the Congress, the branch of Government which controls the purse strings, to determbae whether the recorn- mended itupoundments are Justifiable and necessary. This conference report provides a cum- Prehensive approach to budget refit/roe It is the top priority of the Home Demo- cratic leadership and has the Support and endontem.ent of the Nixon adminis- tration. The time for Congress to reform its handling or the budget has come. I urge immediate adoption a this conferenev renarte - Mr.-BENNETT. Mr. Speaker, I rise in strong stlePort of the oanferenew report on an. 7130. This legislation has more potential far good for our counery than any memo* that has been before Con- gre,ss in the last 28 years, the period a time that I have served here. This is true because the legislatioa will establish a workable procedure by which tlongnas can achieve effective command in the selection of priorities; and can take needed action to reduce -and eliminate deficit spending and thus importantly stem the tides of inflation. Teere is noth- ing more destructive to our country to- day and netting /wire burtfui. to the citi- zens of Our =MS.0 today than the high and rising costs of living, the alneest un- controlled inflation that we are experi- encing, filtration. hurts the people in their efforts_ to live normal lives within their available wages. It also hurts the efforts of the country to survive in a costly climate of bat:easing domestie and defense nee. Hopefully, this legisletion will give Congress a handle on a way to bring all of this under control. The legislation, when law, will still re- quire a persistent will on the part of a majority of the House and a maJarite of the Senate to make the law work. I have confidence that the law will. work. It is a good start. We must make it work. Mr. FASCELL. Mr. Speaker, I rise in strong support of the conferen.ce report on H.R. 7130, the Congressional Budget and Impoundment Control Act of 1971. It is imperative that the Congress strengthea its procedures for deelneg - fectively with its appropriations respon- sibilities. We must be able to review the overall spending picture?where the revenue is coming from and how it should be allocated?and tighteu the congressional reins on the Federal budget. In the past, I have sponsored legisla- tion similar to this bill which would have required the House to make fundamental decisions on how much, aggregate send- ing should occur and where the eaeney would come from before it started to ap- prove separate spending bills. Under that legislation, as under H.R. 7130, this House could not consider any appropriations bill until it had first approved a resolu- tion containing a legislative budget which Me/tided an eetimate of tax revenues, ex- penditure ceilings for each appropriation bill and recommendations for handling differences between revenues and ex- penditures. " H.R. 7130 rrovicles not only the machinery and procedure for developing a Congressional Budget, but also pro- vides urgently needed technical assist- anee by establishing the Congressional Budget Office. One of the major problems has always been the difficulty of inter- preting the budget documents submitted to the Congress by the administration. With the added expertise of the new Congressional Iludget Office, we should be able to better assess the recommenda- tions made by the executive branch. Runaway inflation centinues to plague every American family. One solution to that problem and the critical state of our economy as a whose is greater emigres- siormi control over Federal expenditures. Passage of the Congressional Budget and Impoundment Control Act will give us that control. Mrs. SCHROIDDER. Mr. Speaker, Con- gress as an institution is held in low esteem by the American people, and not without cause. Two of the most fre- quently voiced criticisms are of anti- quated procedures which prevent the Congress froni dealing realistically with the problems of our fast moving society. and of fiscal irreeponsibility. In voting for passage a the Congressional Budget and Impotinclinent Control Act today, we have an opportunity to meet these cri- ticisms and recapture for Congress con- trol of the Federal budget. More importantly. at a time when in- flation is so serious that, in the words of Federal Reserve Board Chairman Arthur Burns, "the future of our country is in jeopardy," we will be able to establish spending limitations in an overall, co- ordinated fashion. Although economic experts, disagree on exactly what should be done to cope with inflation and the additional threat of a serious recession, almost all are agreed that one element a any program must be a reduction in gov- ernment spending and a balancing of the Federal budget. Our difficulty up to this point has been that we have had no pro- cedure for revievving the Federal budg- et?tax receipts as well as expenditures? as an integrated whole. The resources and procedures for review set up in the budget control act will allow us to re- strain the level of Federal spending in light of receipts and at the same time exercise greater control in establishing budget priorities. In arranging these priorities, we will need to be flexible, and see some ofe our favored programs be cut back in the in- terest ,of overall scal soundness. This includes flexibility in reviewing the mili- tary budget as it comes to us from the Defense Department. We must not, as we have done in the past, treat it as a fixed weight in the balancing oroness. Secre- tary Schlesinger has admitted that more than $1 billion a the fiscal year 1975 budget request was for "pump prim- ine?an oddly timed and in-conceived military solution for our economic trou- ht-ne 18, 1974 bleS. Even so, the new economic czar Kenneth Rush has stated that adminis- tration ?Medals, in their new seareh to cut the Federal butt, 1ll no; touch defense spending. This, in spite of the admitted padding and in spite of the fact that several former high Deferse De- partment officials have recently testified that an $11 billion cut could be made in the Defense budget without impairing our military capebilitien The second prong of the at, which sets up procedures for countering the abuse of executive impoundments, will further enable us to control spending and priori- ties. The arrogant treatment of Con- gress?and he people it represen.ts?by tae present aximinietration, most re- cently exemplified by Mr. Rush's refusal to testify on Mr. Nisores plans feir the economy before the Joint Economic Corrunittee, :mist be stopped. At this critical time in our Nation's history, Congress mat act to regain its constitutional power aver spending and to fell the void in economic leadership left by our distracted Executive. Mr. ANNUNZIO. Mr Speaker, fiscal re- sponsibility can be established or de- stroyed, recaptured or further banished from our public ethic, by ewo institu- tions: The President and the Congress. To this point in time, both institutions have contributed to our budgetary quag- mire. However, it is too late for charges of fault We must take positive steps to correct current ina.deettecies. We in Congress have a heavy respon- sibiltty to bear in our authority to alo- prove the spending of publie funds. In order to exercise this einhority with in- tegrity arid a real sensitivity to national needs, we need to consider rr.ore adequ- ately the overall impacts a each of our financial moves. We need to have a more complete vision of wbere we are, and where we are going. We must be seriously wining to recognize that we simply can no longer affoed to do whatever we want In the way of spending And we must be willing to compromise the des. res of, spe- cial groups or constituencies when the national interest will be more beneficially served through such denial. We must devote ourselves to finding and implementing measures which will assure that finial responsibility will mice again be a national hallmark. It is time that we restored the public' trust in its Government. . It was for these reasotne Mr. Speaker, that I favored the creation of the Joint Study Committee on Budget BE form, and applauded its Ane report when it came out last year. It was also for ehese rea- eons that I voted iast December for 11.R. 7130, the Congressional Budge: and :Im- poundment Control Mt of 1974. Mr. Speaker, this is one of the most far-reaching pieces of legislation it has ever been my pleasure to support. The amount of effort and commitment that went into this bill is unprecedented hi my experience in Congress, and even?' Person who emtributed deserves the appreciation of this body and the entire Nation. I ealled this bill far-reaching, and indeed it covers; a wide variety of sub- jects, as it should. Practically every re- Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 June 18, 197:4 CONGRESSIONAL RECORD -- HOUSE H 5199 form given life in this bill? has merit-- time and experience may reveal a few flaws, since nothing made by man is perfect?but it is my belief that the careful integration of many reforms in one bill is the keystone in the successful construction of a new budget-making process, just as the careful integration of many and diverse programs is the essence of making a budget. It is for this reason that the require- ment of annual congressional budget? a concurrent resolution which sets the size of the Federal budget and divides the whole among many parts?is such an Important reform. Rather than hav- ing the budget be the result of haphazard and unrelated decisions On a mind-bog- gling array of choices, the concurrent resolution will allow the Congress of the United States to examine the entire budget in one piece, and then decide in a straight-forward manner how much to allot to competing priorities. The concur- rent resolutions, and the mechanisms to make sure that they will be enforced, are really the heart of this budget reform bill, as far as I am concerned. There are many other useful, even vital, features, however. To begin with, a Congressional Budget Office will be created, which will aid in redressing the imbalance of information which the executive branch commonly uses to its 'advantage and our embarrassment. The establishment of a professional and non- partisan Congressional Budget Office should be significant in helping each of us more fully to understand the budget and more effectively serve the people. Another important, though contro- versial, aspect of the budget reform effort has been the attempt to bring "back- door" spending within the purview of the congressional budget, and allow the Appropriations Committees a greater role in Controlling spending. By limiting the fragmentation of the budgetmaking process, this budget reform bill allows Congress to maintain a comprehensive ,and rational view of the Federal budget, and surely we can ask little more. This bill also encourages the periodic evaluation of major Federal Programs, and the pilot testing of new programs, to enhance the role of Congress in making sure that the American public gets full value for its tax dollar. And, speaking of taxes, the bill requires that the Budget Committees and the Congressional Budget Office spotlight the "tax expendi- tures budget." In other words, the loop- holes, exemptions, and deductions which are really hidden subsidies will be brought into the light so that Congress will have a more detailed and accurate picture of how the bUdget laws?both spending and taxing?really affect the country. Yet another advantage to this budget reform bill is the ambitious timetable for the transaction of each year's budget business. It is certainly true that the May 15 deadline for reporting authoriza- tions puts pressure on the legislative committees, and that the September deadlines for appropriations, the second concurrent resolution, and the reconcil- iation process may place a strain on the Budget and Appropriations Committees, and Congress as a whole. But it is hardly too much to ask that we apply ourselves to the most important aspect of the Na- tion's business?surely with good will and hard work we can meet the deadlines. I, for one, have every expectation that the same spirit which has brought the budget reform bill this far will also bring about its final enactment as well asits success- ful implementation by the Congress. Finally, I have always supported, and will continue to support, attempts to limit the impoundment of funds. Nobody wants public funds to be wasted and, if, through intelligent management, bits and pieces can be saved here and there, I will always applaud. But the "eco- nomical management" should never be used as an excuse to gut vital national programs. It seems most appropriate that provisions tying the reform of our budgetmaking process be tied to provi- sions which reform the budget execution process, as this bill does. In conclusion, Mr. Speaker, I want to point out that this landmark legislation will enable the Congress to be respon- sible for devising the budget and for meeting our obligations, with no deficit spending, and in the event that we col- lect more money than we spend, this money will be used to pay off our na- tional debt which has reached astronom- ical proportions. For America to survive, It is absolutely necessary for the Congress to insist on fiscal responsibility and to restore fiscal and monetary sanity. The public has a right to expect a gov- ernment which will go into debt only when absolutely necessary, and which will repay its debts during periods of national prosperity. To this end, I urge my colleagues to support the conference report on the Congressional Budget and Impoundment Control Act. We need fiscal responsibility now. Mr. McCLORY. Mr. Speaker, I con- gratulate our conferees, and I rise in enthusiastic support of this conference report on HR. 7130?the Congressional Budget and Impoundment Control Act of 1974. I urge my colleagues to join me in voting for this conference report. With an affirmative vote this afternoon, we can travel the final mile down the long legislative road to fiscal responsibility in Federal spending. Let us pass this con- ference report and move the financial procedures of the Congress into the 20th century. Mr. Speaker, excessive deficit spend- ing by the Federal Government is one of the principal causes of the rampant inflation that has been afflicting our na- tional economy and causing extreme hardships for Americans at all economic levels. Now, for the first time in the his- tory of the Federal Government, the Congress will have a method of recon- ciling competing claims for Federal funds within an overall scheme of na- tional spending priorities. Under the pro- cedures established by this legislation, the Congress will be able to develop a comprehensive spending policy that pro- vides for the wisest allocation of the Government's resources while assuring a reasonable balance between Federal revenues and expenditures. For the first time, we in the Congress will be able to put Federal dollars where they are most needed without risking the deficit spend- ing that has fanned the fires of high in- flation in recent years. Mr. Speaker, enactment of budget con- trol legislation such as H.R. 7130 has been one of my major goals since com- ing to Congress almost 12 years ago. In each Congress, I have watched the fran- tic rush of the committees to enact leg- islation within their jurisdictions with little regard for the overall fiscal in- tegrity of the Government. Under this haphazard system, it has been impossible to formulate any sort of coherent con- gressional policy with respect to national priorities. Mr. Speaker, we all know that the credibility of the Congress has suffered greatly for the lack of a reasonable budget control system. The trust of the American people has been abused. Pass- age of legislation with unrealistically high authorizations has raised false hopes on the part of the people. Expec- tations have been dashed when the ap- propriation bills go through. I look to this legislation to curb this damaging tendency of the Congress to overpromise results. It is certainly better for all con- cerned if the Congress will stop prom- ising what it can't possibly deliver; and under the procedures of this act, the Congress will begin to deliver only on the basis of what it promises the Ameri- can people. Mr. Speaker, without denigrating the Importance of tax reform, I want to re- mind my colleagues that passage of this legislation is unquestionably the most important step that this House can take in the fight against inflation in this ses- sion. With the national debt rapidly ap- proaching one half trillion dollars, this budget control legislation is an absolute necessity. Today, let us vote to put a stop to deficit spending; let us vote for fiscal responsibility in the Federal Govern- ment; let us vote for this conference report. Mr. ROBISON of New York. Mr. Speaker, I rise in support of this confer- ence report and of this legislation, which?creature of compromise though it may be?is an extremely important step forward, in my judgment, in giving the Congress a realistic chance at re- couping some of its power and proper control over the "public purse" that it has lost, by attrition, in recent times. If that "power-of-the-purse" is a ba- rometer of legislative vigor and purpose, then it is understandable, Mr. Speaker, why both we who serve in that legislature and those who are our constituents have been less than satisfied, of late, with our capacity and performance. It was, so I am told, over the spending power that Parliament and Crown, long ago, waged an historic struggle out of which emerged the concept?later adopted on these shores?of the national legislature serving as a check on Execu- tive discretion. Hence, when our Repub- lic was formed, that issue was?if words could do it?decided conclusively in favor of Congress inasmuch as article I, section 9 of our Constitution declares: No money shall be drawn from the Treas- ury except in consequence of appropriations made by law. Approved For Release 2000/08/27 : CIA-RDP751300380R000600080003-9 Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 11 5200 CONGRESSIONAL RECORD? HOUSE As a 10-year meneber a the House AppropriaLions Committee, while I are well aware of the fact that those wads still reside in our Constitution exactly as they were written 200 years er so ago, 1 also believe it true that?as Allen Schick, of the Congressional Research Eervice has written: Bit by bit the spending powe- has gram - tated from the legislative chamber to excer - tire suites, and the power .hat cnce was the hallmark of legislative iedeperidence _s pale shadow ot its original design. The villain of the piece?ie there 13, Indeed, one---would seem, however, to be less a series of Presidents greedy for power and authority, than the fact of the growth of American Government, it- self, in which phenomenon the old queen ton of "Who shall decide how math will be spent, and for what?" gradually shifted, in any search for an answer, from Congress ta President or, as is the case with "big government" eday. to a sprawling and seemingly uncontrollable Federal bureaucracy with which even the 'strongest'. of recent Presidents have hardly known how to cope. Was It not, In fact, Czar Nicholas I. of Runde-- en ab- solute monarch, if ever there was one-- who bitterly complained: "Not I, but 10,000 clerks, rule Russia!" Hence, if Congieee has been hi trou- ble when it comes to trying to control and direct a Federal Government con- stantly increasing in size?and I think we all admit it has?then recent Presi- dents have also encountered similar, if not precisely the same sort of, trouble. The source a that coramor, trouble is the site of our National Government-- spending somettitng like one dollar in every four of our gross natienal prod- uct?which has simply become too big and too intricate to be run firmly, and I reiterate the word "firmly" for emphasis, by either the President or the people's representatives, so-called, no matter how well organized or pure they rimy be. Hence, Congress has delegated---abdi- cated, if you wish?its power over the, purse increasingly to the Pneddent which may seem like a sensible thing for anybody to do that finds itself with too big a job on its hands. The initial recipient of that delegation of power has been the Preeidert?rsot, necessarily this President, but the Pred- dency, as an institution. But, then, he in turn?being only one perean no met- ter all the current furor over what one author has termed "The Imperiai Prod- dency"?has had to delegan, or abdi- cate, again if you wish, much of leis sun- posed powers, however enhanced, to that, self-same bureaucracy. So, I deem it al- together possible that not only the Con- gress, but often the President cannot get accurate infermation, and teat the Pres- ident?any President--must have every bit as much trouble as do we here on Capitol Hill when it comes to determin- ing competing spending priorities and that same question of "How much will be spent and for what?". And, so, Mr. Speaker, as I muse on these things. I recall President Trumann words on President Eisenhower's taking office?an Army man used to having 'his orders obeyed: He'll sit there . . and he'll say, "Do this! Do that!" And nothing will happen . . . Poor Ike?it won: be a bit Ike the Army. Hell and it very frustrating. As, Mr. Speaker, 3' have to assume Mr. Nixon has?and Mn. Johnson before him, and even Mr. Reameedy before him, it having been an unidentified Kennedy aide who was quoted in Thomas Cronin's "Papers on the Institutionalized Presi- dency" to this effect: Everybody believes in democracy until he gets to the White House and then you begin to believe in dictatorship, because it's so harti to get things done. . Everytime you turn around, people resist you and even re- sist their own job. Thus, I have to wonder, Mr. Speaker, why some in this present Congress seem as bent as they are on taking things out on Roy Ashes hide?or through him, as a symbol of what may well have been, for now, a necessary concentration of au- thority in the White House, on the hide of the Office of Management and Budg- et that he heads. For, clearly, soraeone?I repeat, some- one?around he:re has to try to coordi- nate and manage things at the White House level; at least unless and until the Congress, and: hopefully this legisla- tion will be a vehicle in that direction, can reassnme the kind of responsibility for control, and management, that the Founders of our Republic envisioned it should have. Equally clearly, in that regard, it is time?way past time?to seek to redress the balance; as this legislation attempts to do. Whether it works out that way, or not, depends, I suppose, on the faith and will we put into it in future fiscal years. At the very least, if It does not prove up to the task we have set our- selves, out of it may evelve a still better system that will work as its authors hope this one will. But I would like to conclude these re- marks, Mr. Specker, wttli the sugges- tione-notraine, but one proffered by Ar- thur S. Schlesinger, Jr., in, his book on "The Imperial Presidency"-Lthat: The answer to the runaway presidency is not the messenger-boy presidency. The Amer- ican democracy, :Ichiesinger argues, must discover a middle ground between making the President a Mar, and making him a puppet. I find those very wise words, Mr. Speaker, even in this emotion-laden time when Watergate--with all its broad im- pact and our preodeupation with it--may often tend to distort our thinking. As I said a few months ago, in my brief col- loquy with the distinguished gentleman from Nebraska (Mr. Ifeeene)?to which the distinguished gentleman from Michi- gan (Mr. CEDERIIT:RG) made a helpful con- tribution?it is already apparent that, next week, when the Treasury-Postal Service and general Government appro- priation bill comes to this floor, an effort will be made to drastically cut the ap- prapriation item as voted, therein by a majority of our subcommittee for the Of- fice of Management and Budget. I can understand the xnotivation of those who will offer such an amendment, and of those who may then be inclined to sup- port it, for OMB?and Roy Ash, as its ? June .18, 1974 present Director?is no more popular than any disciplinaria.n r watchnioe, in ay other field of hernan endeavor. And when one adds on oi that fact, Mr. Speaker, the fallout froir. "Water- gate" and a the felt need her? on Capi- tol Hill to redress the balance as between President and Congrees, net week? when we are not operating in the genial and objective and ressionsikee atmos- poere that prevails here thIS afternoon? it may seem to be an appropriate thing to do to knock Roy Azh and 01\433 back a little bit; after all, some wile then ask themselves., what harm could that do? Well, the clear and ?below harm it could do, Mr. Speaker, Le to the poten- tial effectiveness of the action we take, here today. For, as I read and under- stand the thrust of that action, OMB's duties and respansibilitees will, in elflike- lilueoci, be enhanced and incressed, rath- er than lightened and reduced, once the rather complemted congressional ma- chinery contemplated under teat action is io pl.ace---perticularlv in its first year of operation, What with the proposed shifting of the beginning of the fiscal year to October 1st, the new reporting duties laid upon OMB in nee attempt at limiting Presidentiaa impoundments as set forth in title X of the final draft of this legislation_ and so forth. I understanel that most of teis?eecept for "dry-runs" with regard to fiscal year 1976?is not required to be in place un- til new fiscal year 19.77 but, even so, I strongly argue that you do not build up the Congressional capacity to deal more effectively with budgetary challenges by tearing down the Exemative Branch's ex- isting capacity to seek to deal, as best it can, with those challenges if we fail in our initial efforts. Perhaps OMB, under the concept therefor ses developed by the current administration and under. Mr. Ash's personal style, has veatured. too far into the so-called amanageir.ient" fiekl?tha,t is a matter for debate. But, even if so I submit that you cannot. cure that problem by gutting an Agency?as we may be tempted to cons icier doing next week?that had, as the .ald Bureau of the Budget, 45 authorized personnel in fiscal year 1959, when 1 first came here and wherl the total Federal budget was only $92 billion, and that now has, as the Office of Management aad Budget, still only 660 authorned personnel .itriv- ing to handle the current fiscal year 1974 budget of over $2'14 billion, and has re- quested 691 people to try La deal with the challenges of the projected over $304 bil- lion budget in fiscal year 1915. Mr. Speaker, I fully realize that I have strayed rathee far from the point of my earlier comments on this legislation. Yet, the point I have here been seeking to make in I feel., an important one?to be summed up, 3 suppose, tri the hope that this House will not be responsible one week, as I believe we are in approving this conference report, only to be amost equally as irresponsible next week. Mr. HARRINGTON Mr. Speaker. I rise in opposition to the conference re- port on H.R. 7130, the Budget and Im- poundment Control Act of :.973. While it is difficult ta argue with the concept of improved congressional control over the Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 *J1171.0 18, .1974 CONGRESSIONAL RECORD HOUSE massive Federal budget, it is unfortunate that this bill accomplishes these goals in Little but name. Too often in the past I have found my- self in the position of voting for legis- lation with which I, had serious reserva- tions and bec,ause in far too many cases such bills came before the House on a take-itenr-leave-it basis, Taday, however, we consider a budget control bill which Is so totally unworkable that even the valid need for fiscal responsibility should stampede none of us to its support. U.R. WO la a hill whose time has cone?and gone. Without intending to disparage the good faith efforts of the authors of this legislation, it is hard to avoid the conclusion that this legislation is a reaction to a, political climate that ceased to be a reality months ago. It does not seem to me that the answer to the need for better budget control Is to be found in. the rigorously structured system proposed in H.R. '7130, a system which would make the budget process in the House more unresponsive to the needs and conditions of our country than it already is, We cannot hope to impose an arbitrary formula, upon a very complex system and expect it to work, for it will not. The first question about any adminis- trative reform has to be: Will it work? However?good the intention of any pro- posal, if it will not work when imple- mented, it will be a failure. But, how would the budget formulation process work under the legislation we are con- sidering today? By January 15, the President would have to zubmit his proposed budget to Congress. By March 15, the Appropriations, Ways and Means, Joint Economic and other committees would have to submit budget recommendations to the Budget Committees. By April 1, all authorizing legislation to be funded during the up- coming fiscal year must be approved. BY May 15 Congress must approve the first concurrent resolution establishing a ten- tative congressional budget. Congress then has May, June and July to act on all appropriations bills, none of which can be considered on the floor unless all are complete and a summary report is available. By early September, Congress must complete action on all 13 appropri- ations bills, holding any bill in excess of the targeted subceiling set out in the first concurrent resolution. By Septem- ber 15, Congress must approve a second concurrent resolution revising or reaf- firming the budget set out by the May 1 resolution, and if necessary directing the Ways and Means and/or Appropria- tions Committees to report out legisla- tion reducing appropriations bills and/or raising additional revenues, and/or rais- ing or lowering the national debt ceiling. By adjournment, Congress would be re- quired to complete action on the final resolution and legislation necessary to bring about compliance with total reve- nue, debt, deficit, and spending totals and subtotals. Now I ask you, Mr. Speaker, can any Member of this body really believe that such a schedule of events is at all realis- tic given the way in which this body works? It is not, and H.R. '7130, for all its good intentions, will not work. This fault alone should be enough to defeat the proposal, but it is not all. When I compare my own sense of what the goals and means of budget control should be to what would actually be accomplished by this legislation, I find that H.R. 7130 may be a step in the wrong direction. For example, one a the more disturbing facets of the current bud- getary process is that it is, in many ways, unrepresentative as a handful of Mem- bers now exercise authority over bud- getary matters that is well in excess of their numerical proportions. Would HR. 7130 make the budget process more representative? The answer is, unfortunately, that it would not. In effect HR. 7130 would in- crease the control of a few Members of Congress over the budgetary functions of the legislative branch, both in terms of the composition of the Budget Commit- tee that is to be created, and in terms of the procedures that will be used. The net effect of these shortcomings will be to worsen the ability of the Congress to control the Federal budget vis-a-vis the executive branch. HR. 7130 effectively reproduces the existing situation of excessively cen- tralized, undemocratic input into the budgetary process in two ways. First, it requires that a majority of the Budget Committee be comprised of members of the Ways and Means and Appropriations Committees and the party leaderships. In this way, the traditional authority of the party caucus system over committee membership would be dangerously eroded, raising the danger of a situation in which a minority of the majority party and a majority of the minority party could combine forces and dominate the entire committee system of the House. Second, by instituting such a rigid time- table, the legislation promotes a rela- tively homogeneous committee composi- tion?for without a consensus of opinion on budget priorities, the proposed dead- lines cannot be met. This situation, of course, is anything but conducive to a redirecting of misdirected budget priorities. The procedures of H.R. 7130 will make it increasingly difficult for the Congress to be responsive to the changing needs of the country, as well as having the ef- fect of frustrating congressional efforts to reorder the budget priorities laid down in the administration budget re- quest. By locking the Congress into an ill-defined set of target ceilings, deny- ing, in most instances, the opportunity to fund new authorizing legislation after the first few months of each session, and by cramming Congress into a rig- orously paced budgetary structure, it is reasonable to expect that the Congress, for want of ample time and opportunity to do otherwise, will increasingly stick to the budgetary proposals already formulated by the executive branch. The fact that the target ceilings are based on the functional categories of ex- ecutive budget requests while the appro- priations subcommittees correspond to these categories only in coincidental ways, means that only members of the H 5201 Appropriations Committee--if even these individuals?and possibly the Director a the Legislative Budget Office, will have any idea of whether the target ceiling figures are in fact being met. To make matters worse, the requirement that all appropriations measures be held up for floor consideration until all are com- pleted and a summary report is available, raises the likely prospect that all 13 appropriations bills, involving billions of dollars of public funds, will come in a mass to the House floor late in July, so that the House will have its back to the wall as far as meeting the August 1 dead- line for completion of appropriations ac- tions. I think it a matter of critical im- portance that the Congress have ample time to consider appropriations legisla- tion?which even under our loose con- temporary system we rarely have?but under HR. 7130 the situation would be further exacerbated. We have all witnessed the decline in the authority of Congress over critical governmental functions. HR. 7130 would, in a sense, make matters worse, not better. During the consideration of the first concurrent resolution that sets target ceilings, the political pressure upon the Congress to "underbid" the executive branch would probably be irresistible. This pressure, a result of the desire of most Members to avoid the tag of being "fiscally irresponsible" would make the possibility of a budget ceiling set higher than that proposed by the President most unlikely. This would enable a Presi- dent to set an unreasonably low Federal budget?with most of the loss coming, as it almost always seems, to social pro- grams?without any real fear of being challenged by Congress. What is more, at each step in the process Congress would again be exposed to a politically vulnerable situation. What would hap- pen, I feel I should ask, if something analogous to the energy crisis happens 10 years hence, under the budget control system proposed by H.R. 7130? Would Congress be able to respond by passing urgently needed multibillion-dollar en- ergy research and development legisla- tion? It would be very difficult. What about meeting a sudden drastic need for greater unemployment compensation?a need that might not be foreseen and that could not wait. How would we able to deal with this sort of need that would throw all of the carefully constructed, Intricate budget tables out of whack? So much for being "responsive." More than likely, the reality of our situation under these procedures would be to follow the lead of the Executive like placid and obeying lambs. Time and time again I have taken the floor of this House to oppose what I view to be the remarkable deference of Con- gress to other parts of our Government? be it the President, or the Pentagon, or some other figure or institution wrongly held to be something akin to inviolate. To some degree now this deference is voluntary, but under the system of H.R. 7130 it would become a structured fact of life, probably inescapable. How could we, trapped in a lock-step budgetary process, reasonably hope to be able to substitute our judgment for that of the Executive Approved For Release 2000/08/27 : CIA-RDP751300380R000600080003-9 Approved For Release 2000/08/27 : CIA-RDP751300380R000600080003-9 H 5202 CONGRESSIONAL RECORD ? HOUSE dune 18, 1974 when it comes to budgetary priorities? We will be far too obsessed with meeting the deadlines, timetaieeS and schedules to be able to take time out to give hard, critical thought to what the realities Df the country's needs are. My essential point is that while we need budget reform, while we need to better monitor "backdoor" spending and tax expenditures, these needs should not force us te rush into ill-considered and hasty action, however good the motiva- tions. Our actions today take only a mat- ter of hours, but we will have to live with their repercussions for years to come. H.R. 7130 also provides for impound- ment control. The conference report out- lines two types of requests. by the Pres- ident for impoundment cf funds: Re- scisions concern the termination of ob- ligations of budget authority, while de- ferrals concern the delay:rig of obliga- tions. To prohibit a deferral, either House must pass_ an impoundment resialution at any time after receipt of the deferral re- quest. It is conceivable, therefore, that without such positive action from either House, deferrals could tend to become Permanent impoundments of funds. By permitting the President to suspend the allocation of funds previously* author- ized by the Congress, this procedure re- quiring congressional action to disales Prove deferrals implicitly accepts the le- gitimacy of the principle of impound- ment. Ratifying such a procedure, through the adoption of F.E.R. 7130. would, I believe, further dissipate right- ful congressional authority over appro- priations. A great deal of genuine reform is needed within the Congress, but change for the sake of change is not reform by another name. We need to democratize our budgetary process. And we do need to make our budgetary process more re- sponsive. But meeting a stiff timetable cannot be equated with fiscal respon- sibility. The actual result of H.R. 7130 will be an undermining ,af the interests of the country?an appearance of budet- ary reform without real substance. Mr. FOUNTAIN. Mr. Speaker, the spectre of inflation overshadow .s our land today, making neceRsary the redis- covery of a sense of fiscal responsibility at all levels of government, especiaUy the Federal, as well ae in the hearts and minds of Americans everywhere. With these facts before us, it is great to anticipate that H.R. 7130 will soon be- come law. The Budget and Impoundment Control Act of 1974 is an extremely important first step toward getting national .spend- ing under contrail find insuring that the Congress will examine sll future spend- ing plans in the light cf what is avail- able to spend. Regrettably, that has not bem the case in the past?one reason why deficit spending has become elmost a j2erma- nent fixture in our country throughout the lives of the majority of our citizens. In my opinion, :Mr. Speaker, the leg- islation embodied in the conference re- port'being considered today ,contsens ap- propriate legislative machinery to enable the Congress to get the job done?to move us toward the promised land of fiscal responsibility. The provisions of this legislation are extremely sensible. Establishing a Budget Committee to concentrate on budget totals and make appropriate de- cisions makes sense?good sense. Setting up a Congressional Budget Of- fice to search out the facts for the Con- gress, so that we can make decisions on the basis of more accurate, unbiased in- formation, makes sense, too. The budget procedine called loels also something long needed. The same is true for other major provisions of the act, such as the impoundment control section. Though kinks have a way of showing up in every new undertaking?doubt- lessly we will have to make some minor corrections after the new system gets un- derway?what we are considering today bids fair to be an effective instrument for responsive and responsible action. One thing we Must keep in mind, how- ever, is the continuing requirement for a strong will and determination on the part of each Member of Congress to make the new machinery achieve the de- sired goal of fiscal responsibility. Remember, too, that it will not work well nor accomplish much unless the majority of the American people also have a strong will and determination to make it work, In short, there must be wide public support for control of spend- ing before it will be controlled. U we pass an effective bill here today? one that sets forth good legislative pro- cedures for budget control and there- fore for responsible expenditures?and ultimately proceed to legislate beyond those controls, then what we do here to- day will mean little. Following that course would mean the negation of all that we are hopefully accomplishing by the passage of this act. But, I do not believe this body?the House of Representatives?will make such a mistake. To do so could be fatal to America's future by allowing inflation to rage unchecked, gnawing away at the vitals of our society. I feel that this House has at long last waked up to the necessity for setting up the right kind of legislative machinery and for making it work. The present rate of inflation is a good "waker upper." There is an imperative need for every- body to work cooperatively together to beat inflation. It is time for labor and management, for the Congress and the President, for State and local govern- ments likewise, and even more essential- ly for large segments of the American people?however meritorious their needs?to Stop demanding that govern- ment, especially the Federal, continue spending more than we have and much more than we are earning. Summing up my attitude toward H.R. 7130: By passing it we will be taking the first step of a first step. We will be taking the first step toward a fiscally respon- sible Federal budget, which will be in itself the fast step toward controlling inflation. America's tomorrow will be bleak if we do not thoose to act responsibly today. Mr. FINDLEY. Mr. Speaker, at long last Congress has estaillished businesslike control over the purse etrings of govern- ment. It has been no :small task. When I first began my own intensive study of the problem in the fall of 1971,I was astounded al; how little attention .it had received over the year:. No doubt much was done in the past which escaped my attention, but inquiries I made of long- time professionals in the appropriations and tax-writing field disclosed almost no literature on the problem. Ken Sp:rankle, the former clerk of the House Appropria- tions Committee, was most helpful to me in my search and led me to what little information there was. Almost everyone familiar with con- gressional procedures ias recognized the existence of the prolaimem for many years, but few are those who sat down, studied the problem and put the results of that study on paper. Rasse indeed has been the person in mblic office willing to venture into he ft eel of actual draft- ing. The power of the Congress ha e waned substantially and, I thnik, dangerously in this field. All of us must share the blame. We have tended to take the easy way out. It is easier not to set priorities than to set them. It is easier to author- ize expenditures without deciding at the same time how the awenue will be pro- vided. It is easier tc appropriate money piecemeal from the Presdient's budget requests than to adopt a budget our- selves. Fifty years ago, lie Congress; estab- lished the present appropriations sys- tem. The purpose was to brin.g under a single committee'; discipline manage- ment of the expenditure process. Today, however?at least on the House side?the Appropriations Committee functions not as a single entity, but as 13 separate ones. The wailing of congressional control of the purse stringe has been one of the main factors causing public con- fidence in the Congress itself to wane. For the: reason, late in 1971 I began an intensive study of the problem and ways to meet it. The resolution I finally drafted, House Resolution 1020, speci- fied that the House could not consider any appropriation bills until it first ap- proved a resolutioa containing a com- prehensive Federal budget for the en- suing fiscid year. The budget resolution would include an estimate of tax revenues, expenditure ceilings for each main appropriation bill, and recommendations on handling differences between revenues and ex- penditures. If expenditures exceeded revenues, for example, the :resolution would have included a recommendation to raise taxes or ;ncreese th.e Federal debt, or a combirmeion of both. Once the budget resolution was ap- proved, ;appropriation measures would be handled in customary fashion, with one important exception. Two-thirds af- firmative vote would have been required for the House k approve any appro- priation bill which exceeded the provi- sions of .the budget resolution. House Resolutiou 1010 was cospon- Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 Approved For'Release 2000/08/27 : CIA-RDP75600380R000600080003-9 June 18, 1974 CONGRESSIONAL RECORD ? HOUSE 115203 sored by more than 25 Members of the House. On the first day of the 03d Congress, I reintroduced my proposal with several important changes. House HeSoIution 17 required two preliminary steps before the House could consider an appropria- tion bill: First, the adoption of a resolution from the Appropriations Committee contain- ing a comprehensive budget for the en- suing fiscal year. The budget would re- quire for each appropriation bill category and for each nonappropriation action, a celling?on obligational authority and a celing on outlays. It would relate these figures to estimated revenues from all sources for the year. Second, the adoption of a resolution /from Ways and Means Committee con- taining recommendations as to the lev- els of public debt and aggregate Federal revenues necessitated by figures on out- lays and receipts contained in the first resolution. Then and only then could the appro- priation process begin. Then and only then could nonappropriation measures be considered Which had the effect of au- thorizing outlays and/or obligations. And each such measure would have to be tested against the budget as adopted by the House. First, it would have to be tested against the budget provision for obligational authority, and second, it would have to be tested against the budget provision for outlays. If it ex- ceeded the budget provision on either point, the Measure could pass the House only by the approval of two-thirds of those present and voting. Conference reports would also have to pass the mine double test. This aPproach was strikingly simple. It relied upon the existing institutional structure of the Congress. Writing for the Reader's Digest, for- mer Budget Director Caspar Weinberger described House Resolution 17 as a pro- posal which "would enable Congress for the first time to approach the budget question sensibly." The new Congress was determined to enact budget reform. A joint study com- mittee was appointed and lengthy hear- ings were held. When I appeared before the committee to explain the various provisions of my bill, I pointed out the =businesslike character of our national finances. Al- most every business firm and munici- pality in the country?even the small- est?adopts a budget befpre it starts spending money for the coining business year. Ironically, the institution charged by the Constitution with controlling the largest business in the country, the Fed- eral Government, does not adopt a budg- et. To be sure, the President proposes one, but at no time does the House of Repre- sentatives adopt the President's budget or one of its own, ? The bill which emerged from the com- mittee was quite similar to my own. The committee recognized the need to estab- lish limits on obligational authority and kept the provision requiring a two-thirds vote to exceed budgeted limits. ? The work of the study committee, and the House Rules Committee, will stand as a monument to the determination of which passed, and House conferees who the, 93d congress to bring inflation under retained, language incorporating control control. With double-digit inflation now over tax expenditures in the reformed a fact, their work comes none too soon, congressional budget process. The House As Chairman Arthur Burns stated re- bill, excellent in most respects, contained cently at Illinois College: a serious flaw. While direct expendi- If past experience is any guide, the future tures?outlays, new budget authority? of Our country is in jeopardy. No country that were made subject to congressional con- I know of has been able to maintain wide- trol, tax expenditures?tax forgiveness spread economic prosperity once inflation Of various kinds?were not. got out of hand. And the unhappy conse- quences are by no means solely of an eco- Yet tax expenditures are estimated to nomic character. If long continued, inflation cost the Treasury some $77 billion in at anything like the present rate would fiscal 1975?about one-fourth as much threaten the very foundations of our society, as total direct expenditures. Clearly, to leave a gap of that magnitude in the Dr. Burns continued: congressional budget procedure would I cannot emphasize too strongly that have undermined severely the effective- Monetary policy alone cannot solve our stubborn inflationary problem. neSs of budget reform. We must work simultaneously at lessening What are tax expenditures? They are the powerful underlying bias toward tuft- special provisions in the tax code giving tion that stems from excessive total demands financial assistance to specific persons, on our limited resources. This means, among or activities. Tax expenditures include other things, that the Federal budget has to credits, deductions, lowered tax rates, be handled more responsibly than it has been deferred taxes, all of which result in re- in the past. Incredible though it may seem, the Con- duced tax liability. There are many ex- gress has been operating over the years with- amples: investment tax credit, pollution out any semblance of a rational budget control facilities amortization, sick pay plan. The committees that consider spending exclusion, dividend exclusion. Some tax operate independently of the committees expenditures are good, others not so good; that consider taxes, and appropriations some began as experiments, and have themselves are treated iu more than a dozen never been reevaluated; some have been different bills annually. All of this means that the Federal budget never really gets con- made obsolete by events. Whatever their sidered as a whole?a fact which helps ex- individual merits, tax expenditures must plain why it is so often in deficit, certainly be included with direct ex- Fortunately, after many years of advocacy penditures to give Congress a compre- by concerned citizens and legislators, this hensive look at real spending priorities glaring deficiency in the Congressional and the different ways in which national budget process is about to be remedied. Bills goals may be accomplished. that would integrate spending and taxing decisions have passed both the House and According to the Senate-passed bill, the Senate. Ths is a most encouraging de- as revised slightly by the conference velOpment, and we may confidently expect committee, a list of current tax expendi- final action soon by the Congress on this tures must be included in the report ac- landmark legislation. companying the concurrent budget res- Procedural charges, however, will mean olution. This resolution must be adopted little unless the political will exists to ex- before any bill affecting revenues may ploit the changes fully. And this can hap- be passed. After the first resolution, any pen only if the American people understand better the nature of the inflation we have bill or amendment providing new or in- been experiencing and demand appropriate creased tax expenditures must contain, action by their elected representatives, in the accompanying report, a statement prepared by the Congressional Budget In the final analysis, the only way to Office, setting forth: First the impact of successfully fight inflation is to demon- the proposed legislation on tax expendi- strate the political will to master it. The ture levels in the most recent concurrent conference report before the House to- day is the first step in that fight. I be- budget resolution report, and second the projected impact of the proposed tax lieve that it is an important step, and expenditure over the 5 years. Finally, the I believe that we will be successful. conference bill specifies that once the Mr. REUSS. Mr. Speaker, I rise in sup- second required concurrent budget res- 7130, the Congressional Budget and Im- port of the conference report on H.R. olution and bill of reconciliation?if poundment Control Act of 1974. needed?are passed, any measure reduc- As a member of the Joint Study Corn- ing revenues below specified levels is mittee on Budget Control, upon whose subject to a point of order. recommendations the legislation now be- The conference committee, then, has fore us is based, I have been involved improved upon the House-passed version with the issue of congressional budget of the budget bill by integrating tax ex- reform for some time. Budget reform was penditures into congressional considera- badly needed 18 months ago, when the tion of the budget. Joint Committee started meeting. It is I urge my colleagues to support the even more urgent today. With a fiscal conference report on H.R. 7130, and to 1975 Federal budget of more than $300 make possible more effective congres- billion. Congress must regain effective sional control over Federal spending and control over the increasingly technical revenues. and complex process of setting national Mr. TAYLOR of North Carolina. Mr. priorit:es and spending levels. H.R. 7130 Speaker, I rise in support of this confer- would provide the tools, to do so. I corn- ence report which establishes a budget mend my colleagues of both parties who committee and enables Congress to focus have worked long and hard to bring this on budget totals and establishes a con- legislation to the floor today. gressional budget office to increase con- In particular, I commend the Senate gressional sources of budget information. Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 11 5204 Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 CONGRESSIONAL RECORD ? HOUSE June 18, 1974, The Budget Committee would be charged with the responsibility of deter- mining a spending limitation at the beginning of each session of Congress. Congress would then have the authority to increase the spending limitation in certain categories only by reducing it in others. We all know that deficit spending has been one of the causes of inflation and of many of our national problems. It is lin- Perative that Congress faze up to the responsibility of fiscal integrity, and this legislation should become a useful tool in securing this result. In the past we have not '3een able to look at the budget as a unit, but heve made piecemeal appropriations. Too often one hand has not known what the other was doing. This legislation by itself will not assure fiscal integrity, but it i3 a step in that direction. It is important that a budget rest:nu- ion be adopted by both Houses of Con- gress before appropriations bills itre ace- ed upon and the Members of Congress re- solve to exercise discipline and restraint and to make certain that this lesislation is used to improve fiscal procedures, with a view of Etopping deficit seending. Mr. PEPPER. Mr. Speaker, we f tal) today enacting a measure which is mo- mentous in its significance. By the adope tion of this conference report COngress will undertake the heavy responsibility of discharging its duties as defined hor the Constitution of makiag its own budget and. taking the responsibility :for the revenue received by the Government of the United States and the expendi- tures made by it. Many years age the Congress set up the Bureau ef the Budget which later became the Offiee of Budget and Management, both Under the dime- tion of the President. The Budget Bureau of the Office of Budget and Management, with the President's approval, prepared the budget which was submitted to the Congress by the President. This was a great task requiring the participation of many people and long and tedious periods of labor by those involved. Then Congress acted upon that budget.-4p- proving, disapproving, modifying items on the total. We will henceforth, after the enactment of this conference repart and the approval which we hope The Pre,sident will give it, continue to receive the budget from the President but it will simply be information for us. We will proceed to make our own- budget. The making of our own budget will involve difficult tasks, long and tedious labor, and an able staff assisting the Ccmgress through the Budget Office created by this bill We shall have difficult decisions to make in determining that we are going to be responsible in the expenditures that we make and we are going to make conscious decisions re; to whether we have a deficit between receipts and ex- penditures and, if so, how much that deficit shall be. We are going to have to determine not only the amount of money we spend on behalf of the Government but what the order of priorities of those expenditures shall be. We shall deter- mine not only what we spen l'but to what purpose we spend. duties in making its own budget by the Congress must be set. It will be difficult to keep that timetable. We shall have to impose stern discipline upon ourselves as Members of Congress if we are to make this bill work. We not only take responsibility for expenditures but we undertake to relate expenditures and revenue to keep them in proper relation- ship one to the other. If we carry out this measure we will make our budget and pass the necessery appropriation bills by the end of the fiscal year?and I think we wisely changed the fiscal year from ending June 30 to ending October 31. The Congress is to be commended upon undertaking this great responsibility and committing itself to discharging it com- petently and creditably. One of the most significant features of this bill is to forbid the Executive to im- pound funds that Congress authorizes and appropriates pursuant to our own budget. The Constitution says that the President shall see to it that the laws are faithfully executed. The Constitution never contemplated that the Executive would hold up the expenditure of funds authorized and appropriated by the Congress. Yet, many Presidents have done that. This administration has done It more than any other. We must clarify the constitutional responsibility of the Congress and of the President. This bill makes it clear that it is the responsibility of the Congress to authorize and appro- priate expenditures. It is the duty of the President to see to it that the laws au- thorizing and appropriating the funds for such expenditures are faithfully ex- ecuted like other laws. This too is a most significant step forward by the Congress. Mr. Speaker, we have enacted many reforms in the last few years in the Con- gress. This, I believe, is our greatest. It is indicative of the fact that Congress Is not moribund, incapable of acting, un- willing to meet e.nd to measure up to the challenge of its responsibilities. We are passing this bill with the spirit of deter- mination to make it work. If we do we will have vindicated the faith the fore- fathers put in us that we would do it and also the confidence of the people of this country who have been wanting us to do it and are going to trust us to per- form these great duties. Mr. HOGAN. Mr. Speaker, I rise to state that I am fully in support of the efforts being made here today to get the Congress' fiscal house in order at long last. Ever since I was elected to Congress in 1968, I have been urging my colleagues to join me in a commitment to greater fiscal responsibility. Unfortunately, that commitment has not been strong enough with enough Members of this House, and the result has been a national economy suffering under the heavy burden of rampant inflation. At the heart of our economic prob- lems, in my opinion, is the policy the Federal Government has followed with alarming consistency over the past 10 years?the policy of spending more money than it takes in. This policy of deficit spending has brought about an increase of $148 bil- gone from $317 billion to $490 billion, and we are now paying nearly $30 billion a year just for interi; on the national debt. This represents almost 10 percent of the entire Federal budget that we are spending just to pay for past ecotomic mtstakes. When we tEak of reordering priorities, we need look no farther than this in- terest payment on the national debt to see one major area that could stand some reform. We cannot expect inflation to be really slowed, or the dollar to be really sound, until we decide to stop spending money as if it grew ,en trees instead, of coming out of the taxpayer's pocket. I believe the legislation we are consid- ering today represents a giant step for- ward in the process of regaining some sense of fiscal responsibility as well as budgetary authority. In setting sm overall target; ceiling for congressional spending, this legislation for the first time says "no" to the spend- ing sprees we have embarked on so inany times in the past, with no regard for the means to pay our bills, and no thought given to the possible effects of such wanton spending on the lsraeion's econ- omy. If this spending limitation is pet in conjunction with anticipated revenues for a given fiscal year, and if we do not exceed that limitation, then we will be exercising fisial responsibility. And any proposal whose 'cost would exceed that limitation should be made to provide for a system of taxation to pay for the ex- cessive cost. I believe this is the key to itaying at a responsible level of government spend- ing, and I am committed to keeping a close watch over the Natien's ,purse- strings so the, American people can keep more of theie own money in their own pockets. The bill would create a 23-member Budget Committee in the Bouse and a 15-member committee in the Senate, with a joint professional stsff to serve both committees. These committees would recommend annual budget outlays, revenue levels and other spending policies, and follow a step-by-step :procedure! for consideration of the budget that would greatle im- prove the efficiency and the overview ca- pabilities of the Congress. We have not had the benefit of such a centralized and comprehensive budget supervision in a very long time, and the results of this incohesive approach speak for themselves?a national economy too long plagued with the curse of inflation, a curse that has brought on higher and higher price; for consumer goods, de- mands for higher and 1.:tigher wages, seri- ous deficits ta our internatienal balance of payments, and a lessening of !confi- dence in the American dollar within the world financial community. We have the opportunity before us today to remedy these economic ills and to prevent them from recurring in the future. Let us seize the opportunity; let us enact this good legislation. Mr. DRINAN. Mr. Speals en today I Under this measure a rigid timetable lion in the national debt over the last will join with a majority of my colleagues for the AOMOWdfFedrtiReleiNge Niklititett64tieR115?egigtb Rio fic-e9 report on Approved For Release 2000/08/27 :,CIA-RDP751300380R0006_00080003-9 June .18, 1974 CONGRESSIONAL RECORD HOUSE 11 5205 H.R. 7130, the Congressional Budget and Impoundrnent Control Act of,1974. I cast my affirmative vote with great reluctance for I do not believe that this legislation will fully restore effective control over the budgetary process to Congress. The decline of congressional authority in this area coupled with the Nixon administra- tion's unprecedented and illegal im- poundment of appropriated funds have threatened to make a mockery of our system of government. The shortcomings of the bill which has emergid from the conference are vir- tually the same as those which I enum- erated when this bill came before the House last December. First, the stipula- tion that 10 of the 23 members of the House Budget Committee shall come from tWo standing committees represents a backward step away from congressional reform. Second, the tight schedule of budgetary formulation and approval es- tablished in the bill will further decrease the extent to which most Members can participate substantively in the budget- ary process. When appropriations bills funneled through the process established in H.R. 7130 come to the floor for a few hours of consideration, the House can legitimately add little more than its rub- ber stamp approval. Third, by placing all "backdoor spending" under the jurisdic- tion Of the Appropriations Committee, the bill grants this one committee in- creased power over the Federal budget at the expense of the House Membership as a whole. Finally, the bill would recognize the validity. of Presidential impoundment unless Congress acted specifically to ne- gate the President's action within 60 days. I am wary of any legislative provi- sion which accepts, under any circum- stances, actions by the Executive which Impinge upon the constitutional author- ity of Congress to appropriate funds from the Federal Treasury. Despite all of these shortcomings in the bill before us, I believe A is imperative for the House to act immediately to cur- tail further acts of impoundment by the Nixon administration. Continued inac- tion on this front will demonstrate con- gressional acquiescence to this flagrant abuse of power by the executive branch. Thus, I believe that the budgetary con- trol meohanism and anti-inipoundment provisions of HR. 7130 are better than no legislation at all. Mr. MATSUNAGA, Mr. Speaker, as a cosponsor of the bill and one who has been intimately involved with this legis- lation for some time, I am pleased to rise In support of the conference report ac- compaying the bill H.R. 7130, the pro- .posed Congressional Budget and Im- poundment Control Act of 1974. Not only Clots this bill reassert the con- stitutional role of the Congress in the Federal budgetary procc,ess, it also pro- vides a procedure for effective con- gressional review of impoundment ac- tions by the executive branch. Each year the country endures the in- efficiencies Inherent in continuing res- olutions. This is a cumbersome proce- dure at best, taxing the schedules and resources of the Congress, executive agencies, and beneficiaries involved. Hopefully, the process called for under H.R,, 7130 will eliminate the need for such stop-gap remedies. Initially, the bill changes the fiscal Year to a new date, beginning October 1 and ending on September 30, from the present fiscal year which begin on July 1 and ends on June 30. This will allow more time for the preparation of the budget by all the departments of Gov- ernment concerned. Then a timetable is envisioned for passage of the various bills and resolutions needed before the fiscal year begins. The bill will also establish Budget Committees in-both Houses of Congress, and a separate Budget Office. This new Budget Office will greatly enhance Con- gress' ability to obtain data it needs to evaluate Executive budget requests. One of the most important features of the bill, Mr. Speaker, is the impound- ment title, which tightens the language of the Anti-Deficiency Act, thereby pro- hibiting "reserves" for fiscal purposes. This provision is key to maintaining the balance of power among the three branches of Government. Mr. Speaker, if Congress is to resume its rightful place as the shaper of policy in the United States, it must come to grips with the problems presented by the current fragmented proccess by which it considers the Federal budget. I be- lieve that the enactment of H.R. 7130 would be a necessary, even historic step toward that important goal. I urge the adoption of the conference report. Mr. CLEVELAND. Mr. Speaker, I rise In support of the conference report on H.R. 7130, the Budget and Impoundment Control Act, with great satisfaction and the hope that the reform process it rep- resents will be maintained and indeed intensified. This is truly landmark legislation. At long last we have created the mechan- ism indispensable to meeting our respon- sibilities to determine national priorities, control spending and avoid the disrup- tion of impoundments of funds by the executive branch. At last we have a means of looking in a comprehensive way at all the needs we seek to meet, balancing the competing demands for limited resources and gag- ing them against total spending levels. At last we can assess squarely the ques- tion of overall spending in terms of its relation to the tax burden, the impact of spending on deficits or budgetary sur- pluses, the state of the economy and the effect of our actions on inflation and un- employment. This, alone, is a major accomplishment in its own right. But there are benefits of magnitude far transcending the proced- ural?and policy?implications of this legislation. At last, we are taking a gen- uinely gigantic step toward strengthen- ing the Congress as a coequal branch of the Federal Government. At last, with Watergate being cited as a symptom of excessive power in the executive, we are strengthening our position and taking steps to curb that concentration. And fi- nally, our action today represents the most important initiative against infla- tion. To be sure, no single piece of legisla- tion is any cure-all, and much will de- pend on the spirit in which we put its provisions to work. The overwhelming vote on initial House passage is most promising in this respect. Yet for all the infusion of responsibil- ity and discipline this bill offers, it can- not alone meet our total need for reform. The system it establishes can work only as well as the individual committees functioning within the system. Therefore, the reforms recommended .by the Select Committee on Committees remain indispensable. As 'a matter of fact, the discipline imposed by this bill, the tight deadlines our committees must meet, the total focus of the entire Con- gress this bill brings to bear on the work of our individual committees, will only make the deficiencies of the existing com- mittee system more glaringly apparent. And finally, the public is entitled to no less than equally prompt progress in the area of election reform. We are making a good beginning with this legislation before us today. I would urge my colleagues to move forward with the momentum this bill has generated, seize the opportunities represented by the congressional reform and campaign reform measures pending before us, and make a clean sweep, writing a record that will legitimately entitle the 93d Congress to be known as the reform Congress. Mr. VANIK. Mr. Speaker, I supported the passage of the Congressional Budget and Impoundment Control Act when it was before the House on December 5. Earlier last year, I testified before the House Rules Committee on the need for budget reform legislation?and, in par- ticular, the need for congressional budget controls over guaranteed and insured loans. I am very disappointed that the bill does not place some controls on guaran- teed and insured loans. As the confer- ence report notes, the Senate amend- ment "excluded insured or guaranteed loans from the definition of budget au- thority." In addition, The managers intend that the definition of "budget outlays" and "budget authority" for purposes of the congressional budget process be the same as that used for the executive budget and that any item which is excluded by law from the executive budget may be excluded from any specification of budget outlays or budget authority in the congressional budget process. Further, sections 606 and 607 of the conference bill also weaken efforts to control "off-budget agencies." According to the conference report, the Senate- passed bill included an amendment to terminate the off-budget status of six designated agencies. "The conference substitute provides for continuing studies of off-budget agencies by the House and Senate Budget Committees." Mr. Speaker, I do not believe that we need any more studies. We know there is an explosion of backdoor spending. We know that dozens of agencies are avoiding budget control by guarantee- ing and insuring loans. We know that major Government agencies have been able to defy the will of Congress because they are excluded from the budget and from budget considerations. We know that these guarantees and insurances, Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 Approved For Release 2000/08/27 : CIA-RDP751300380R000600080003-9 H 5206 CONGRESSIONAL RECORD ? HOUSE June 13, 11)74 these Goverinnent corporations, do pro- vide enormous public interest subsidies and contribute to inflation, a vita-tett adequate eongeessional saiegueuels er review. GUARANLEED AND WSLRED LOANS The growth of this form of bac,x-eloor spending has been staggering?and hes played a large role in the growth of in- flation. For el/ample, between 19e8 and 174, the keine 4:4( direct loans is esti- mated to leave 'increased by a little less than $6 billion. But the 1eve,1 of garner- teed loans outstanding has spiraled nearly 100 pereent?frora $108.1 to $196.6 billion. In fiscal year 1975, the ad- ministration has requested some $7 lion in new direct loan authority. But new commitments for guaranteed and Insured loans in fiscal year 19/5 will le $39.3 billion--approxhnately $0.3 billion more than in fiseal year 1974. In addi- tion, net credit advanced and net credit raised by Major credit agencies outskle the budget will be nearly $3.6 laillion. Neither the guaranteed and inured loans or the loans by "off-budget agen- cies" will receive any adequate congres- sional supervision or review. They are Government programs that are outside of effective. Yearly cong-essional (mistr)l and oversight. ocarrnexcar .LLABILITT In addition, there has been no exami- nation by anyone in the Federal Govern- ment of the irnplica,tions of our growir g contingent liability. It is my understand- ing that we Will soon be coneldering a 10-year extension of the Price-Anderson nuclear reattor heiurance prograre There is already about $10 billion in con- tingent liability insurance involved in this program. By the end of this dec- ade?within the next 5 or 6 years--the liability under this program will rise 1,o approximatelY $98 billion. Is this wise-- when we already have a total Federal contingent liability of approximately a trillion dollars? tio we want to under- take another enormous insurance pro- gram without adequate reserves? A Fed- eral court has recently ruled that nu- clear powerplants shOuld not be built :n highly poptdated areas. Is there a higher risk in this insurance program than we have imagined? If not, why have not the private insurance companies taken over this prograta? I am disappointed, Mr. Speaker, that the final version of this legislation fails to provide any controls or review of the continually growing level of contingent liabilities. THE COST TO THE TAXPAYER OF GITARANTE ED AND INSURED LOANS AND O}!-BUDGET AGENCIES It is generally believed that there is "no cost" to the Government and to the taxpayers in guaranteed and insured loans. It is often contended that the off- budget agencies make a "prcfit" and do not "cost" the taxpayer anything. But there is a very definite cost from al thee) loan subsidies and insurance pregettir e. The growth of these "backdoor" loen programs stretches the caphal markets and drives up the rate of interest for Sill borrowers. To the extent that a lower rate of interest is offered, the subsidy has to be made up by ethers. The amount of these interest subsidies is calculated In a little-noticed section of the Special Analysis of the Fiscal Year 1975 Budget. a document prepared by the Office of Management and :Budget: GUARANTEED LOAN EUBSIDIES In recent years, an inereasing number of guaranteed loan programs have provided sig- nificant subsidies in order to help meet the needs of their borrowers. Fees or premiums to cover part or most of administrative ex- penses and probable losses ltre customary in guarantee programa But absence of such charges in some .programs is an additional form of subsidy. Long-term contracts to provide debt serv- ice payments are the most frequently used subsidy device. 'These commitments some- times cover both interest end principal amounts, but more often cover some desig- nated share of the interest cost. This ap- proach is being used for a gnawing variety of loan programs, inclading those for law- and moderate-income ha-using, atudent expenses Io r higher eduactian, academic facilities, and medical facilities. In some programs, the guaranteed loan be- gins as a direct loan made at interest rates below the market, which is resold with the Government ageney's guarantee, either at a discount (which provides a marketable yield) or with a commitneet to pay additional in- terest in periodic installments to the private purchaser of the lean. Jest as for direct Isans, the costs of sub- sidies for guaranteed loahs include those arising from both new and outstanding loans. New subsidies add to net budget out- lays in future years; and nom? meaningful measure of their ultimate net cost is needed to lend perspective to budget tie1/41011S. SUBSIDY NIEASISSIMEENT One way that the impact of future subsi- dies could be viewed would be simply to total all future payments. However, becatese of interest, a dollar payable at some future date is worth leia thap. a dollar paid out today. Said differently, a dollar payable in the future "costa" less, because some =eller amount invested today at interest would grow sufficiently to meet the obligation when due. Therefore, a simple total of future ob- ligations would e-learly overstate the -true value of the subsidy etream. A bettor way to measure the ultimata value of the successive annual subsidy payments is in "present value" terms, in accordance with the rec- ommendations of the President's Commis- sion. on Budget Corcepte. This is accom- plished by capitaladrig (or discounting) fu- ture subsidies at an appropriate interest (or discount) rate. The selection of. an appropriate interest rate might vary with analytical objectives. The choice for discounting both direct and guaranteed Inans in this analysis is 91/2%, rate approximately equivalent to the private market yield on long-term gtuaranteed hous- ing loan commitments in December 1978, if an allowance for guarantee costs is added. Although private market interest rates would vary significantly according to pro- gram, borrower, mad loan characteristics, the use of a single market rate as a "proxy" for all loans facilitates analysis. 'Likewise, year- to-year comparisoes axe facilitated when the same rate is used far all 3 years of the table (despite the significant changes in market rates that have occurred over the past year). The selection of a private market rate basis (over a Treasury bornawiee rate for instance) has the advantage of valuing direct loan as- sets near the price which they should bring if sold to private Invests)) s, and also more nearly approaches the benefit provided to borrowers. Table E-6 provides estimates or subsidy values that will result from loan commit- ments made or to be made in the years L973 through 1975. Both the enamel subsidy rates and the discounted present value of all fu- ture subsidies are provided. However, the subaiciles provided turrenily--on behalf of guaranteed or direct loans aireacli outstand- ing- are not cosered in this analysis. While the estimates are primarily illustrative rather than exact or compiehensiye, they do facilitate year-ts-year comparisons a new sub.sidy commitments. LOAN STJESIDLES, ANIMAL BA as The annual sabsiely rale for direct loart commitments made in 1S73 was apprexi- mately $400 million. The rate for 19'74 corn- mitmertts rises to $447 11111)10A, followed by a decline to $484 million for 1915 commit- ments. This tread is lareelv inf uenced by a 1074 bulge in commitar ems for interna- tional security .a.s;sistance loans. For guar- anteed loan commitments, the annual rate was $472 million for 1973 and 13 projected to decline to $477 and $2e1 million in 1974 and 1975, respectively. This trend largely reflects the slowing of commitment activity for subsidized housing. 1,0AN SUBSIDCES, PRESENT-VALVE BASIS. WhcHl extended to the a respeetive 'ma- turities, the amounts ci the annual sub- sidies cited above total al9.2, $21.9, and $15.0 billion for 1973 thro 'eh 19'15 commit- ments, respectively. But siac,e these sub- sidies occur over time, rather than at once, their present value is determined by dis- t:4.'11111411g (at ?tea in tint year's analials), using the procedure previously discussed. The present values of the 1973 to 1975 com- mitments are thus estinitited at $6.4, .$7.1, and $5.1 billion. As the above analyas indicates, the cost to the public of these programs ultimately runs into the lens of billions of dollars on a Present-value basis. Mr. Speaker, because of the failure of this legislation to provide some method of control, some method of oversight and review of these "backdoor" and "off budget prograres." I predict that the use of these programs will grow by leaps and bounds. Future Pre,sideute, congres- sional committees, line gencies, will all seek. to obtain. their own inured loan prewara so that they make com:nit- merits without having to go through the new Budget Committees and the AP- propriations Committees. Additional agencies of the Governirent will come up with arguments on why they eleould be dropped out of the regular budget. The back door spending problem, already serious, will grow worse. Back door spending, loans, and ineirance commit- ments may defeat our efforts to shape the direction (if the American economy through better control of the Federal budget. I deeply regret that tl i legielatiOn has missed this golden oppertintily to (lose thee back door to the budget. Mr. BOLLING. Mr. Speaker, I leave asked that all Members be permitted to revise and extend 'their remarks. . Mr. Speaker, I would like ta conclude today, before move ti e previous ques- tion, by saying' that the gentleman from Iowa is, as is often the case. precisely correct. He is a studeet of legislatien, and he known that under certain eir- ceunstances legislation 3zist8 that ceuld work to accomplish the same purpoee. We will miss him because we need more students of legislation. The fact is, however, that this represents anew Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 Approved For Release 2000/08/27: CIA-RDP751300380R000600080003-9 June 18, :1974 start. It gives us an opportunity to do what we say tre are going to do, and that is all it gives us. It is a start, a frame of reference, a framework. I happen to believe that the House ,and its IVIembers are ready to face up to this responsibil- ity. I believe it in part because I think increasingly Members understand that if the House cannot be fiscally responsi- ble, the people will not long tolerate it. Mr. Speaker, I believe this will work. I believe that we can make it work, and r urge the support of the Members for this gOnference report. ? Mr. Speaker, I move the previous ques- tion on the _conference report. The previous question was ordered. The SPEAKER. The question is on the conference rePort. The question was taken; and the Speaker announced that the ayes ap- peared to have it. Mr. MARTIN of Nebraska. Mr. speak- er, I object to the vote on the ground that a quorum is not present and make the point of order that a quorum is not present. The SPEAKER. Evidently a quorum is not present. The Sergeant at Arms will notify ab- sent Members. The vote was taken by electronic de- vice, and there were?yeas 401, nays 6, not voting 26, as follows: [Ron No. 800] 'rES 101 Abdnor Byron Abzug Camp Adams Carey, N.Y. Addabbo Carney, Ohio Alexander Carter Anderson, Casey, Tex. Calif. Cederberg Anderson, Dl. Chamberlain Andrews, N.C. Chappell Andrews, Chisholm N. D43g. Clancy Annunffib Clark Archer Clausen, Arends Don H. Armstrong Clawson, Del Ashbrook Clay Ashley Cleveland Aspin Cochran Be.dillo Cohen Bafalis Collier Baker Collins, m. Barrett Collins, Tex. Bauman ' Conable Ben Conlan Beard Conte Bennett Conyers Bergland Corman Bevill Cotter Biaggi Coughlin Biester Crane Bingham Cronin Blackburn Culver BI atnlk Daniel, Dan Boggs Daniel, Robert Boland W., Jr. Bolling Dan Lelson Bowen Davis, S.C. Brademas Davis, Wis. Bray de la Garza Breaux Delaney Breckinridge Dellenback Brinkley Dellums Brooks Denholm Broomfield Dennis Brotzman Dent Brown, Calif. Derwinski Brown, Ohio Devine Broyhill, N.C. Dickinson Broyhill, Va. Dingell Buchanan Donohue Burgener Downing Burke, Calif. Drinan Burke, Fla. Dulski Burke, Mass. Duncan Burleson, Tex. du Pont Burlison, Mo. Eckhardt Butler Edwards, Ala. CONGRESSIONAL RECORD ?HOUSE H 5207 ? Edwards, Calif. Eilberg Erlenborn Esch Eshleman Evans, Colo. Evins, Tenn. Fascell Findley Fish Fisher Flood Flowers Flynt Foley Ford Forsythe Fountain Fraser Frelinghuysen Frenzel Froehlich Fulton Fuqua Gaydos Gettys Giaimo Gibbons Gilman Ginn Goldwater Gonzalez Goodling Grasso Green, Oreg. Green, Pa. Griffiths Grover Gubser Gude Gunter Guyer Haley Hamilton Hammer- schmidt Hanley Hanna Hanrahan Hansen, Idaho Hansen, Wash. Harsha Hawkins Hays Hechler, W. Va. Heckler, Mass. Heinz Helstoski Henderson Hicks Hillis Hinshaw Hogan Holifield Holt Holtzman Horton Hosmer Huber Hudnut Hungate Hunt Nix Hutchinson Obey Ichord O'Brien Jarman O'Hara Johnson, Calif. O'Neill Johnson, Colo. Owens Johnson, Pa. Parris Jones, Ala. Jones, N.C. Jones, Okla. Jordan Karth Karen Kemp Ketchum king Kluczynski Koch Kuykendall Kyros Lagomezsino Landrum Latta Leggett Lehman Lent Litton Long, La. Long, Md. Lott Lujan Luken McClory McCloskey McCollister McCormack McDade McEwen McFall McKay McKinney McSpadden Madigan Mahon Mallary Mann Maraziti Martin, Nebr. Martin, N.C. ? Mathis, Ga. Matsunaga Mayne Mazzoli Meeds Melcher Meztinsky Michel Milford Miller Mills Minish Mink Mitchell, Md. Mitchell, N.Y. Mizell Moakley Mollohan Montgomery Skubitz Moorhead. Slack Calif. Smith, Iowa Moorhead, Pa. Smith, N.Y. Morgan Snyder Mosher Spence Murphy, Ill. Staggers Murphy, N.Y. Stanton, Murtha J. William Myers Stanton, Natcher James V. Nedzi Stark Nelsen Steed Nichols Steele Steelman Steiger, Ariz. Steiger, Wis. Stephens Stokes Stratton Stubblefield Passman Stuckey Patman Studds Patten Sullivan Pepper Symington. Perkins Symms Pettis Taylor, Mo. Peyser Taylor, N.C. Pickle Teague Pike Thomson, Wis. Poage Thone Podell Thornton Powell, Ohio Tiernan Preyer Towell, Nev. Price, Ill. Traxler Price, Tex. Treen Pritchard Udall ,Quie Unman Quillen. Van Deerlin Railsback Vander Veen Randall Vanik Rangel Veysey Rarick. Vigorito Rees Waggonner Regula Waldie Reuss Walsh Rhodes Wampler Rinaldo Ware Roberts Whalen Robinson, Va. White Robison, N.Y. Whitehurst Rodin? Whitten Roe Widnall Rogers Wiggins Roncalio, Wyo. Williams Roncallo, N.Y. Wilson, Bob Burton Gross Rooney, Pa. Rose Rosenthal Rostenkowski Roush Rousselot Roy Roybal Runnels Ruth Ryan St Germain Sandman Sarasin Sarbanes Satterfield Scherle Schneebeli Schroeder Sebelius Seiberling Shoup Shriver Shuster Sikes NAYS-6 Harrington Kastenmeier Wilson, Charles H., Calif. Wilson, Charles, Tex. Winn Wolff Wright Wyatt Wydler Wylie Wyman Yates Yatron Young, Alaska Young, Fla. Young, Ga. Young, Ill. Young, S.C. Young, Tex. Zablocki Zion Zwach Landgrebe Moss NOT VOTING-26 Brasco Hastings Reid Brown, Mich. Hebert Riegle Daniels, Howard Rooney, N.Y. Dominick V. Jones, Tenn, Ruppe Davis, Ga. Macdonald Shipley Diggs Madden Sisk Dorn, Mathias, Calif. Talcott Frey Metcalfe Thompson, N.J. Gray Minshall, Ohio Vander Jagt So the conference report was agreed to. The Clerk announced the following pairs: Mr. Thompson of New Jersey with Madden. Mr. Haert with Mr. Dorn. Mr. Mr. Rooney of New York with Mr. Davis of Georgia. Mr. Brasco with Mr. Mathias of California. Mr. Howard with Mr. Frey. Mr. Macdonald with Mr. Brown of Michigan. Mr. Shipley with Mr. Hastings. Mr. Reid with Mr. Minshall of Ohio. Mr. Diggs with Mr. Gray. Mr. Riegle with Mr. Metcalfe. Mr. Dominick V. Daniels with Mr. Ruppe. Mr. Sisk with Mr. Vander Jagt. Mr. Jones of Tennessee with Mr. Talcott. The result of the vote was announced as above recorded. A motion to reconsider was laid on the table. PROVIDING FOR CONSIDERATION OF R. 15405, DEPARTMENT OF TR SPORTATION AND RELATED AG i4 CIES APPROPRIATIONS FOR FISC YEAR 1975 Mr. Y UNG of Texas, from the Com- mittee o Miles, reported the following privilege resolution (H. Res. 1183, Re- Port No. 1117), which was referred to the House alendar and ordered to be printed: H. RES. 1183 Resolved, at during the consideration of the bill ( 15405) making appropria- tions for the partment of Transportation and related a cies for the fiscal year end- ing June 30, 1 5, and for other purposes, all points of o er against the following provisions in sal bill for failure to comply with the provisio of clauses 2 and 5, Rule XXI are hereby ved: In title I?"Coast Guard"?beginnin n page 3, line 2 through page 4, line 14, a beginning on page 4, line 20 through pa 5, line 12; "National Highway Traffic S ty Administration"? beginning on page lines 3 through 18: and "Federal Rallr. d Administration"? beginning on page 15 es 1 through 8. PROVIDING FOR NSIDERATION OF H.R. 14715, CLA FYING EXIST- ING AUTHORITY R EMPLOY- MENT OF WHITE ?USE OFFICE AND EXECUTIVE R L, IDENCE PER- SONNEL Mr. PEPPER, from the'. ommittee on Rules, reported the folio g privileged resolution (H. Res. 1184, port No. 93- 1118) , which was referred the House Calendar ahd ordered to printed: H. RES. 1184 Resolved, That upon the ad ion of this resolution it shall be in order move that the House resolve itself into th ommittee of the Whole House on the State the Union for the consideration of the bill R. 14715) to clarify existing authority for e loyment of White House Office and Exec ve Resi- dence personnel, and employment person- nel by the President in emergenc involv- ing the national security and def e, and for other purposes. After general ebate, which shall be confined to the bill a shall continue not to exceed one hour, to b ual- ly divided and controlled by the ch man and ranking minority member of the om- mittee on Post Office and Civil Servic the bill shall be read for amendment und the five-minute rule. It shall be in order to'n- skier the amendment in the nature of a b- stitute recommended by the Committe n Post Office and Civil, Service now printed the bill as an original bill for the purp of amendment under the five-minute ru At the conclusion of such consideration, t Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 II 3208 CONGRESSIONAL RECORD -HOUSE June 16, 1974 Cpumiittee shall rise and report the bill to the lb use with such amendments ais Mae, have b !nand a amendme the Whole amendment The previous erciered on the to final passage except one magma out instructielne, adopted and etuy Umber ratty de- arate vote in the Route on any adopted in .the Oce se tenittee ! The bill or to the Coma:thee? the na.ture of a Meastitute. ? tion ehall be considered aa ante erlmerds theteto out Intervening tuition ommit vrth or with. PROVIDING FOR CO IDERATION OF H.R. 15361, CO DE.. VELOPMENT BLOCH G Mr. PEPPER, from the Conitstee on Rules, reported the following p ileged resolution (H. Res. 1182, Report N 93.- 1116), which was referred to the Calendar and ordered to be printed; re aim Ilse Resolved, That upon the adoption of fees resolution it shall be in order to reeve, clause 27(d) (4) of Rule XI to the contrary netivith- standing, that the Ilouse resolve itself int, the Committee of the Whole House on the State of the U111011 for the consideration of the, bill (All. 15361) to establish a pit:41'am of community development block grants, to amend and extend laws relating to housing and urban development, and for other pur- poses, and all pinata of order against sections 108(f), 116, 411., 414, 415(s.), and 505 of 3a1i bill for failure to comply with the provis:ons of clause 4, Rule 'MCI are hereby waived. After general debate, which shall be confinel to the bill and shall contireue 110t to exceed three haws, to be equally divided and on- trolled by the chairman and ranking minor- ity member of the Committee an Banking and Currency, the bill shall be read fcr amendment under the five-minute rule by titles instead of by sections. At the con- clusion of the consideration of the bib fee amendment. the Cemetlittee shall rise and report the bial to the House with such amendments as may have been adopted, and the previous question shall be considered es ordered on the bill and amendments there- to to final passage Without intervening mc- tion except one motion to recommit. After the passage of IIR. 15361. the Commi Mee o Banking and Currency shall be 'Mechem from the further consideration of the S. 3066, and it shall then be in ,aider It House to move to strike out all after en- acting clause of the said Senate bill d in- sert in lieu thereof the previsions c Maned In H.R. 16361 as passed by the e. DEPARTMENTS OF STAT AND COMMERCE, TII AND RELATED AGE PRIATIONS BILL, 1975 Mr. YOUNG of T by direction of the I call up House R for its immedlat The Clerk re lows: Resolved, of the bill tions for t and Co agencies 1975, a order said b visio waiv be Li lie JUSTICE, IJDICIARY, IES APPRO- Al.. YEAR as. Mr. Speaker, mmittee on Rules, lution 1176 and ask onsideratien. the reSolution, as fol- . Res. 1116 t during the consideration 15404) making appropria- Departments of state, Justice, ce, the Judiciary, and related r the fiscal year ending Jerrie 30, for other purposes, ell points of ainst the followng provisions !as for failure to comply with the pre- of clause 2, rule XXI are hereby d: In title I-"Department of Staie"-- ning on page 2, line 2 through pe 3, 24, and beginning on page 5, line 1 through page 12. line 21; in title II-"De- partment of Justice"-begenning ou page 20, line 8 through page 21, line 5; in title fli- Departrnent of ennunerce"-beginning on page 23, flue 8 through page 25. line, 21, be- ginning on page 26, line 13 through page 27, line 11, beginning on page 28, lines 1 through 5, and beginning ma page 28, line 20 through page 30, line 16; and ie title V-"Itelated Agenciet"-beginning on page 40, lines 2 through 12, and beginning on page 46, line 3 through page 49, line 2. The S'PEAKER. The gentleman is rec- ognized for 1 hour. Mr. YOUNG of Texas. Mr. Speaker, / yield 30 minutes to the distinguished gentleman from Ohio (Mr. LATTA) Pend- ing which time I: yield myself such time as I may require. (Mr. YOUNG ,af Texas asked and was given permission to revise and extend his remarks.) Mr. YOUNG of Texas. Mr. Sp owe Resolution 1176 permits the ttee on Appropriations to s 1 appropriatien bill for the nte of State, Justice, Corn e, and the ciary and other rela agencies for ac on the floor of House of Repres House lution 117 4rovides that all points der aged the provisions of clause 2, XXI the Rules of the Rouse of Re tives, prohibiting unauthorized api atlases, are waived with respect to c items for the De- partments of tice, Commerce, and other re I age The total want ended in the bill in n oblige, uthority is $5,304,97 which is a uction of $106,837 u from the total punt of the b t estimates. It is an e of $586 4,800 above the total ate r the current fiscal year. opriationa are also made in J: for the Arms Control and Disa t Agency, the Commission on CM ights. the Equal Employment Oppor- tunity Commission, and the Small Busi- ness Administration. Mr. Speaker, I urge the adoption of House Resolution 1176 in order that we may discuss and debate H.R. 15404. Mr. GROSS. Mr. Speaker, will the gen- tleman yield? Mr. YOUNG of Texas. I yield to the gentleman from Iowa. Mr. GROSS. Mr. Speaker, I thank the gentleman for yielding. I commend the committee for its selectiveness in per- mitting waivers of points of order. Does the Rules Committee provide the staff to tell us just what lines in the bill, if we are unable to decipher and apply all of these lines the committee has set forth. to tell us where we can make valid Points of order and where we cannot make them? Mr. MAHON. Mr. Speaker, will the gentleman yield.? Mr. YOUNG af Texas. I yield to the gentleman from Texas. Mr. MAHON. Mr. Speaker, I will be glad to see to it that the gentleman from Iowa gets all the information on this matter. I will be glad to yield to the gen- tleman my copy (yf the bill with certain notation. Mr. GROSS. The gentleman will yield his copy? The exemptions are all eon- F ? the -e tamed in the rule, I will ray to the tinguished chairman of the AP tons Committee Por insemee, Pro- vided there are 'waivers o' "Begbming on page 2, 1 Page 3, line 24, and beg ? 5, line 1 through page II-"Devartment of on page 20, line 8 s Mr. MAHON Vezina will g to tell the the di propr of order through g on page 16 21; in title ce"--beginning ? Or 21, lir e 6:" and O on and so cm so on and so on. $pa ker. if the gen- further, I wouid he glad lernan. Mr. G S. I will be glad to invite sh,d chairman ol are &P- ons Committee to sit eight over her d help me wher we get to the ? deration Of the bill and tell me re I can rns,ke a poir t of order. Mr. MAHON. I will sny to the distin- guished gentleman from Iowa, we are asking for the waiver; generally on Points of order because the State De- partment authorization has not been ap- proved and because certaba portions of the Justice title and the Contmeme have not yet received legisls tive euthorsza- tion for the new fiscal year which be- gins in a couple of week,. Mr GROSS. Does the gentleman sup- pose this new Reform At t the House Just approved by an overwhelming vote will take care of the situatiens of this I Ind so we will not be confronted with rales waiving points of order in this. fashion? Mr. MAHON. Much will depend on. a four-letter word spelled "w-1-1-L" If we have the will to make this legislaeion work and the will to hrumess spending, T think great improvemeats can be made. Without the will the new legis; ation will not help much. Mr. GROSS. We can ering that up to date right now, I will say to tile gentle- man from Texas: If we have the to do it, we can defeat this rule and stop his kind of nonsense right now. . MAHON. But if we do that we ? ot pass the legislation without de- ? g the substance ,ef mueh that is The problem is tie achieve tmerit of lei islative bilis. G of Texas. Mr. Speaker, I of House Resolution 1176. to the gentleman from requ timely Mr. urge ado I yield Ohio (Mr. LA (Mr. LATA inission. to rev marks.) Mr. LATTA. Mr. to say to the members to my friend, the gent If he wishes to take a coO bill I will be glad to go page and give him the not yet been authorized. Mr. GROSS. Mr. Speaker, evi tlernan yield? Mr. LATTA. I yield to the gen from Iowa. Mr. GROSS. I would like to line a day when it is snowine heavily out and we have nothing else to do so we ea sit down in a corner arid do just that. It -44 would be helpful. Mr. LATTA. Mr. Speeker, House Res- olution 1176 provides sleet during the consideration of HR. 15404, the 1975 Ap- propriation for the Departments of State. Justice, and Commerce, the Judiciary ed said was elven per - 1 exteni his re- er, I would like and specific:ally n from Iowa. the printed ;It page by hich have e gen- an Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 ki-k 7/3o July 16, fkproved For RtImrteRgyWilia@p_Fs'MCI4380R00060008000H2585 mitted to the :Cyprus Government for ap- proval a list of candidates for cadet reserve officers who would' attend a special school and then serve as officers during their Mili- tary service. Fifty seven of the candidates on the list submitted were not approved by the Council of Ministers. The General Staff was informed of this in. .writing. Despite this, following instructions from Athens, the Gen- eral Staff did not take at all into account the decision of the Council of Ministers, which under the law has the absolute right to ap- point National Guard officers, Acting arbi- trarily, the General Staff trampled upon laws, showed Contempt for the decision Of the Cyprus 'Government and enrolled the candidates who had not been approved in the Officers Training School.' I regard this atti- tude of the National Guard General Staff, which is controlled by the Greek Govern- ment, as absolutely inadmissible. The Na- tional Guard is an organ of the Cyprus state and should be controlled by it and not from Athens. The theory about a Common area of defence between Greece and Cyprus has its emotional Aspect. In reality, however, the po- sition is different. The National Guard, with its present composition and staffing, has de- viated from its aim and has become a hatch- ing place of illegality, a centre of conspira- cies against the state and a source of supply of EOKA B'. It suffices to say that during the recently stepped up terrorist activity of EOICA B', National Guard vehicles trans- ported arms and moved to safety members of the organisation who were about to be ar- rested. The absolute responsibility for this improper conduct of the National Guard rests with Greek officers, some of whom are involved heads over ears and participants in the activity of EOKA B'. And the National Centre is not free from responsibility in this connection. The Greek Government could by a mere beckon put an end to this regret- table situation. The National. Centre could order the termination of violence and ter- rorism by EOKA B' because it is from Athens that the organisation derives the means for its maintenance and its strength, as con- firmed by written evidence and proof, The Greek Government, however, has failed to do so. As an indication of an inadmissible situation I note here in passing that in Ath- ens also slogans were recently written against me and in favour of EOKA B' on the walls of churches and other buildings, including the building of the Cyprus Embassy. The Greek Government, even though it knew the culprits, did not seek to arrest and pun- ish anybody, thus tolerating propaganda in favour of EOKA 13`. . I have a lot to say, Mr. President, but I do not think that I should say any more. In conclusion I convey that the Greek officered National Guard, the plight of which has shaken the Cypriot people's confidence in it, I will be restructured on a new basis. I have reduced military service so that the National Guard ceiling may be reduced and the extent of the evil may he limited. It may be observed that the reduction a the strength of the National Guard due to the shortening of the military service, does not render it capable of carrying out its mission in case of na- tional danger. For reasons which I do not wish to set out here I do not share this view. And I mould ask that the officers from Greece. staffing the National Guard be recalled. Their remaining in the National Guard and commanding the force would be ?.harraul tp relations between Athena and Nicosia, I would, however, be happy if you were to send to Cyprus about one hundred officers as instructors and military advisers to help in the reorganisation and restruc- turing of the armed forces of Cyprus. I hope, in the meantime, that instructions have been given to EOKA B' to end its activities, even though, as long as this organisation is not definitely dissolved, a new wave of violence and murders cannot be ruled out. I am sorry, Mr. President, that I have found it necessary to say many unpleasant things in order to give a broad outline with the language of open frankness of the long existing deplorable situation in Cyprus. This is, however, necessitated by the national interest which has always guided all my actions. I, do not desire interruption of my co-operation with the Greek Government. But it should be borne in mind that I am not an appointed prefect or locum tenens of the Greek Government in Cyprus, but an elected leader of a large section of Hellenism and I demand an appropriate conduct by the National Centre towards. me. The content of this letter is not confidential. With cordial wishes, lVfaxamos of Cyprus. PRESIDENT SIGNS CONGRESSIONAL BXJDGET REFORM Mr. PERCY. Mr. President, on Friday, the President in the presence of a large number of the Senators and Representa- tives who took an active role in this legis- lation, signed the Congressional Budget and Impoundment Control Act of 1974. This was an historic occasion, the cul- mination of months of very hard work by the Congress, the enactment of one of the most important congressional reforms of this century. The President in his remarks also rec- ognized the importance of the budget legislation, and at the same time made clear that it is the Congress, not the Executive, that must implement it. I ask unanimous consent that the President's remarks, and a fact sheet prepared by the Office of the White House Press Sec- retary, be printed in the RECORD. There being no objection, the material was ordered to be printed in the RECORD, as follows: STATEMENT BY THE PRESIDENT I take special pleasure today in signing HR. 7130, the "Congressional Budget and Impoundment Control Act of 1974." I com- mend the Congress for this landmark legisla- tion and I pledge the full support of the exec- utive branch in helping fulfill the great promise of this bill. In each of my five Budget Messages I have urged the Congress to review and reform its procedures for considering the Federal budget and pledged the support and coopera- tion of this Administration in achieving this vital national goal. During the past year, the Congressional COmmittees concerned worked energetically and effectively with this in mind. H.R. 7139 is the result. Under this legislation, the Congress will, for the first time, focus on overall budget to- tals early in the legislative process and then relate individual appropriation items to each other within a general set of spending prior- ities. Budget Committees in the House and Sen- ate, assisted by a new Congressional Budget Office, will be established to develop overall spending levels and priorities. A tight timetable is established for Con- gressional action on authorizing legislation and appropriation bills, and a reconciliation process Is provided to bring appropriation bills into line with prescribed overall budget totals. In short, this bill will allow the Congress to step up to full and equal responsibility for controlling Federal expenditures. Prior to the enactment of this bill, the Congress has had to consider a large number of separate measures with no system for es- tablishing priorities relating to an overall spending goals. This system did not impose sufficient disciplines on the Congress to stop the passage of pork-barrel legislation or to resist the pressure of special interest groups seeking a disproportionate share of the tax dollar. Costly programs could be enacted without adequate consideration of their added burden to the taxpayer. This lack of discpline in Congressional procedures has been one of the major factors behind the sizable increases in Federal spending over the past decade. The Congress has wisely recognized these weaknesses and taken steps to correct them through the passage of this legislation. There are provisions in this bill I hope will be simplified if the requirements imposed by them prove to be restrictive. The impound- ment control provisions, in particular, may well limit the ability of the Federal Govern- ment to respond promptly and effectively to rapid changes in economic conditions. Nevertheless, this bill represents a major step toward reform of the Congressional budgetary system. Its enactment is especially timely because an excessive rate of inflation makes the need for careful consideration and control over Government spending more crucial than ever. Already the Congress has enacted, or has pending, programs which could add some $4 billion dollars to our 1975 budget proposals of $305 billion. I will have no choice but to veto bills which substan- tially exceed my budget. The 1976 budget also gives us the opportu- nity to work together to face our fiscal re- sponsibilities. In the near future, I will send to each department and agency their preli- minary budget guidance for 1976. It will re- flect a balanced budget in 1976. To achieve this balance, I plan to propose a broad range of legislation which will be needed to cut back individual programs. I am confident that the Congress will assist me in this effort to keep spending from ex- ceeding my proposed budget levels. H.R. 7130 will permit the high level of cooperation which will be required to achieve this critical goal. FACT SHEET?.CONGRESSIONAL BUDGET AND IMPOUNDMENT CONTROL ACT OF 1974 The President today signed into law the Congressional Budget and Impoundment Control Act of 1974, which will remedy many of the major shortcomings of the Congres- sional budgetary process and strengthen the ability of Congress to exercise responsible control over that process. BACKGROUND In all five of his Budget Messages, the Presi- dent has encouraged the Congress to review and reform its procedures for consideration of the Federal budget. This bill, which has been in development for more than a year and has involved fruitful collaboration be- tween the Congress and the Administration, is tangible evidence of the Congress' move toward genuine budgetary reform. The bill passed both Houses by overwhelm- ing votes: ?401 to 6 in the House of Representatives, on June 18, and ?75 to 0 in. the Senate, on June 21. MAJOR PROVISIONS This legislation will: ?require the Congress to focus on overall budget totals, as well as individual items In appropriation bills; ?establish House and Senate Budget Com- mittees and a Congressional Budget Office to coordinate this overall focus; --establish a tight timetable for Congres- Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 S125APProved For ReleanaEgfigbaCAINE7_5_MMR00060008099P79./ eioxial action on autleaizing legislation and aepropeiation bills; ?change the fiscal year start from July 1 to Octcber 1 beginning in line vele e transi- tional 3-month pericel front July 1, 1076 through September 30, 1976; _provide for a Congressionel reeimeillatlen process to breig apprepriatioe bals into con- formance with ewers" budget totalie ?bring certain types of neer advaxiee bud- get authorite i"backdoer speeding") within the discipline of the appropriatIon process:- -result in a substaneial increase in the Cow of fiscal and budep, ery information from the Exestuttve Branch re, she Conartes: and --require Congressional agreement on de- r arals in the use of fields and reductions in nding levels .LFFECTIV/-' DATE:. Most change; pertaining te the, Coneres- :seined budge/ process, iiad thretitele will first apply ti the iladget for fiscal seas 197e, which begins October 1, 1976 and ends :Siee.itenilier 30, 1977. Most change; affe eting tt a sub- seance ,ef the Firesidentie bud ;et will beeome effective with the budget for firscal year 1976, which begins July 1, 1975, and ertas June 30, 1976. The requirereant Celia] iisa onal agreement on withholeing funds is effeetive ernmediately. NEW EARTH RESO1JRCI LTILTLIE'S Mr. MOSS. Mr. Presider t, last Friday NASA announeed the selection of 93 re- search teams in Federal, State and for- eign governments, international organi- zations, universities, and private industry to study the earth's resources and our use of them over the next year. These studies, basted on luta reeurned to earth from the first two Earth Re- sources Technology i3atenites. will in- volve the natural resource> of .34 States and 48 foreign countries. Foreign gov- ernments will provide the funding for the investigations in. their respective countries. Although we heard sometime ago that there isilltitle interest in BETS data, and that earth resources satellite eystems may not be cost effecieve, it is clear that this view is not widely shared. I say that with the following facts is. mind: First, the 93 investigatirg teams were chosen after review of 669 propoeals. Second, the investigations will inehale work in agrieultureeforstry, range land, in the environment, in land use, in marine resources, in meteorology. in mineral resources, oil, civil work, haz- ards, and in water resources. Third. Data products used by the ha- vestigators will flow from NASA 'ti satel- lite through Federal Data Centers oper- ated by three Departneentii, of the Fed- era1 Government?In terror, Agric ail tu and Commerce. Fourth. Data, from the first aatellite, E1.TS-1, is already being mud for such diverse purposes as: Monitoring urban development and planning future land use; Locating air and Water pollutioa; Mapping strip-mire and foretst-fire scars; Locating geologic formations that :nay Indicate the presence of minerals and petroleum; Uledating maps and coastal and navi- gation charts; EtithniatIng crop acreages; Surveying the breeding grounds of mi- gratory waterfowl; Monitoring the advance of glaciers: Studying flood hazards and managing water resources; and Helping to locate underground water supplies. Fifth. While ERIS data may not seem important to the Office of Management and Budget, it apparently is to the gov- ernments of Nicaragua, and Yemen, of England and Bolivia, of Botswana and Korea, of Libya and Australia, of Finland and France, of Brazil and Japan, of Can- ada and Lesotho, of Gabon and Mexico, of New Zealand and Malaysia, of Paki- stan, Peru, Switzerlend and Thailand, and of Turkey, Upper Volta and Zaire to name a few. Ser. President, l ask unanimous con- sent that the NASA announcement and the list of investigations being under- taken be printed in I lee RECORD for the information of my col !leagues. There being no objeetion, the material was ordered to be printed in the Recent), as follows: New ERTS INVESTV:ATIONS SIMECTED Space satellite pictures will be used in a broad range of new stile ies of Earth's natural resources and inanis use of them, NASA an- lei:weed today (July le). Investigations in the United States and 48 other countries will be conducted by 93 re- search teams in Federal, state, and foreign governments, international organizations, universities, ar.d private companies. The investigators wilt analyze remately sensed data in the loan; of imagery or on magnetic tape from NaSee's first Earth Re- sources Technology l3atellite (ERTS-1), launched two years ago this month: July 2a, 1072, and from .SRTS-B. carrying the same sensors, which is eepe led to be launched early next year. The studies, selected rrom 659 proposaLe, Include work in eight elealplines or cate- gories: Agriculture, forestry, range land; Environment; Interpretive techntquee; Land use; Marine resources; Meteorology; kfinerai resourees, oil, civil works, hazards and Water resources. More than ealt the aomestic and three- fourths of the foreign investigations will demonstrate potential applications for oper- ational use of Earth resources monitoring from space. Data products will lie furnished to he investigators threugh tae Federal Data Cen- ters operated by the Departments of In- terior, Agriculture, and Commerce, NASA will funct the dm:nestle Investigations at a cost of approxirnale4 $5.9 million. For- eign Investigators will be supported by their own countries. The new statelletea called ERTS Follow-on Investigations, replace or extend approxi- mately 200 domestic and 100 foreign investi- gations conducted with data front ERTS-1. ERTS circles the glielie 14 times a day, scanning a swath of Earth's aurface 185 kilometers (115 miles) wide in green, red. and two near-infrared spectral bands. From a 912-kilometer (567-mile) circular, near-polar, sunasynchrouous orbit, the satel- lite passes over armost the entire globe every 18 days and can view each cloud-free area repetitively at the same local time of day and thus at the same Sun angle. In its two years, ERTS-1 has returnee. tone) 100,000 pictures, including imagery' with less than 80 per cent cloud eover of all the United States and three-for rths of the world's land manes and coastal areas. The Imagery Is provided to inveatiee tors and to several 115, government agencies and put on public sale tbrceigh Federal Da: a Centers, the repetitive multaspectril imagery Gt Earth taken by niers -1 has been used for each wide-reale-Mg practical purposee as: Monitoring urban development and plan- ning future rand use; Locating air and water par, ution: MaPPilig striPemine and forest-fire sears: Locating geologic formatiens that may indicate the presence of minerals and pe- troleum; Updating maps and emest al end navigation a: ;arts; Estimating crop scree ee- larveying else breedeig groi nds of micra- ywatcrlosl: Monitoring the adveree of glaciers- Studying flood hazards and merle-lug water resources; and treiping to locate underground water eo rise ERTS project If, memeged for NASA -s Office of App:leatione lie the Goddard Space Flight Center, Greenbelt. Mel. The space- enaft prime contractcir ie the General Face- ea 8 Company. DOMESTIC Mrs POLLOV. -ON IN ,rtsTictriTioNs 'fest Site * princi poi i veal i gator, and Ira veetigation : Alaska, Larry D. Godley, University of Alaska, Fair eanket, Technic structure-of Alaska as evidenced by ERTa imagery and ongoing seismicity. 'William J. Stringer, tinivereity of Alaska. ERTS survey of near-snore ice conditions along the Arctic Coast of Alaska. Peter C. Lent, Univer eity of Alaska, Use cif ERTS imagery for wildlife habitant mappeig In northeast :end easteevetral Alaska. Arizona, G. Russel Bentley, Bureau of Land Management, Denver Feasibility of monitoring growth of cpeerneeal and peren- nial range forage plane; end effects of gree- 11; g management. Larry K. Lepley, tialversite of Arizona, Tycoon, ELFSIS--B and supporting data for technology transfer to local agerieles. Arkansas, :ffarold C. MacDonald, Deliver- Feta of Arkansas, Feeeetteville, Land use caange detection with ER115-B. data for monitoring and predieting regional \velar quality degradation. California, Robert N c ulWtll. University of California, Berkeley, a statewide inveneory of California's die gatea leids based o ERTS-B and Slipportinr eire-aft data. A. Earl Davis, State en California, Sacra- mento, water resources eontrol investiea- ei on in California. Douglas M. Pirie, U.S. A;lay Corps of Engi- neers, San Francisco, California coast near- shore processes study 'using EILTS-B data. Donald It. Wiesnet, National Oceanic ee Atmospheric Administration. Weskit/learn. I) C,, evaluatim of ERTS 13 data for selected hydrologic applicationz. Colorado, Kenneth I, teiok. University ii Utah, Salt lake City, remote sensing in Mineral exploration from ERIS imageny. Paula V. Krebs, the varsity of Colorano. Boulder, mu:Adele resaurees evaluation of liegion 2 U.S Clorest leervice lands utilizing ERTS multtspectral ;seamier _ Claude D. :Peters, State of Colorado, Den- ver, application of eRire data to delimitation of avalanche and landslide hamlets in Colo- r:vita Connecticut, Saul Clever; U.S. Army Corps of Engineene, Waltham, MA, Use of ERTS Where investigations nave multiple te-t sites, they are included uncie,r mole than one state. Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 112,-7130 W10 8000600080003-9 S 20361 DecembelAPPf9Yfd For Rennitg9RAFRIMP-Pala. development purposes would effectively destroy Its future plans for improving the Edison Historic Site. . / hope that this matter can be han- dled expeditiously and completely by the of adjournment. r By Mr. TAFT : S. 420k. A bill to amend the Congres- sional Budget Act of 1974 to require the Congressional Budget Office to prepare Inflation impact statements in connec- tion with legislation reported by Senate and House committees, Referred to the Committee on Government Operations. Mr. TAFT. Mr. President, today I am introducing the "Inflation Impact State- ment Act of 1974." The basic purpose of this legislation Is to require the new. Congressional Budget Office to supply the Congress with an estimate of the impact on the aggregate rate of inflation and the cost of particular goods and services, for 5 fiscal years, of any legislation which is reported by congressional committees for further congressional consideration. In view of the tremendous impact which the Government's programs can have both directly and indirectly on inflation, I believe that prompt enaetmeat of this legislatien is essential. It would be a great advante over the important step forward thk' Congress took when it im- posed a similar requirement relating to Projected actual Federal budget costs of legislative proposals, in the Congressional Budget Act of 1974. In the recent economic summits and debate on the inflation problem, it has been emphasized that Government pro- grams are often considerably more costly to consumers than their direct cost in terms of Government funding. For ex- ample, the expense of just completing required paperwork for the Government has been estimated to be $50 billion pr year. Government safety and antipollu- tion standards have added $320 to the cost of anew car over the last 4 years; Mileage requirements which would bring about 30 to 40 percent improvement in miles per gallon would add another $200 to $400 to the price of anew car by 1980. The use of tariffs and import quotas to protect domestic industries costs con- sumers $10 billion per year in higher prices. When the medicare, and medicaid programs were put into effect, the addi- tional pressure on hospital services helped increase the inflation rate from about 8 percent per year to around 12 to 15 percent. All too often, these types of Govern- ment-induced inflation escape adequate legislative attention because they do not show up in the Federal budget. However, It is clear that Congress has an obliga- tion to race up to the total costs and In- flation impact, not just the budget im- pact of the proposals it must evaluate. My bill would help Congress fulfill that obligation. In recognition of this problem, Presi- dent Ford took a major step forward when he announced that future new Oovernment regulations would carry an Inflation impact statement. However, the imposition of that requirement at the regulation stage is only part of the battle. It is probably even more important that overall impact on inflation be considered fully at the time Congress shapes the basic legislation which determines the structure of the Government's programs. Thus, I feel that President Ford was on target when he urged Congress to Pass legislation such as this bill promptly. My legislation offers possible improve- ments upon the work of others who have been interested in this type of initiative. In particular, the Senator from Kansas (Mr. DOLE) has been a leader in this ef- fort and has introduced other legislation with the same purpose in mind. I ask unanimous consent that a copy of my bill be printed in the RECORD at this point. There being no objection, the bill was ordered to be printed in the RECORD, as follows: S. 4202 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. That this Act may be cited as the "Infla- tion Impact Statement Act of 1974". SEC. 2. FINDINGS. The Congress finds that-- (1) inflation is a grave problem facing Americans; (2) Federal programs and expenditures which Congress authorize have a significant Impact on inflation; (3) Congress has a particular responsibil- ity to consider whether any legislative pro- posal which comes before it for possible ac- tion would augment or reduce inflation; and (4) it is imperative that Congress be in- formed in advance of the impact on inflation of any such legislative proposal so that such impact can be considered fully as Congress evaluates the proposal. SEC. 3. INFLATION IMPACT STATEMENTS. (a) Section 403 of the Congressional Budget Act of 1974 is amended? (1) by striking out "and" at the end of paragraph (1) , (2) by striking out the period at the end of paragraph (2) and inserting in lieu there- of"; and", (3) by inserting after paragraph (2) the following new paragraph: "(3) an inflation impact statement with respect to such bill or resolution. As used in this paragraph, the term "inflation im- pact statement" means an estimate, to the extent practicable, of the probable impact of such bill or resolution on the aggregate rate of inflation and the cost of particular goods and services in the fiscal year in which It is to become effective and in each of the four fiscal years following such fiscal year, together with the basis for such estimate. Such estimate Shall be based on the amount of new budget authority authorized by such bill or resolution and amounts of new budget authority at specified projected levels as- sumed to be authorized by subsequent leg- islation, unless, with respect to any fiscal year for which such estimate is required, the Director determines that it is improbable that outlays will occur", and (4) by striking out "estimate and compari- son" in the last sentence and inserting In lieu thereof "estimate, comparison, and statement". (b) The provisions of subsection (a) are enacted by the Congress as an exercise of its rulemaking power as provided by section 904(a) of the Congressional Budget Act of 1974. By Mr. BROOKE: S. 4203. A bill to repeal exemptions in the antitrust laws relating to fair trade laws. Referred to the Committee on the Judiciary. Mr. BROOKE. Mr. President, double digit inflation is now haunting the American consumer. In the past 6 months the Consumer Price Index has risen an average of 13/2 percent a month; in the past 7 years the cost of living has spiraled by almost 50 percent. Dollar' wages have increased at a brisk 7 per- cent rate over the past 2 years, but prices have increased even more. We are ex- periencing the sharpest decline of con- sumer buying power since the removal of World War U price controls. It is now time for the Congress of the United States to seize the initiative and attack our No. 1 enemy?inflation. President Ford has held a summit con- ference on inflation out of which have come many ideas for fighting inflation. In his economic address to the Congress following the conference, the President presented his legislative proposals. The Congress showed itself capable of acting ? with speed and incisiveness in at least one instance. On September 10, 1974, Senator CRANSTON and I introduced the Home Purchase Assistance Act of 1974 to provide needed mortgage funds for the suffering home buyer and housing in- dustry. Just 35 days later, on October 15, the final version of the bill had been reported to the floor of both Houses, debated, differences resolved, and passed by the Congress. On October 18, Presi- dent Ford signed the bill into law. Con- gress had perceived a need, found a solu- tion, and acted. Today, I am introducing another anti- inflationary measure that I hope will command the same cooperation and re- sult in the same incisive and affirmation action. This legislation repeals resale price maintenance laws. It ends fair trade. Fair trade laws, also known as resale price maintenance or quality stabiliza- tion laws, have been in effect since the depression. In simple terms, they allow a manufacturer to enter into an agree- ment with a retailer setting the mini- mum price at which his identifiable product may be sold. California passed the first State law In 1931 and most States followed soon after. It became apparent, however, that these State laws when applied to interstate commerce, violated Federal antitrust laws. Thus, in 1937, Congress passed the Miller-Tyd- ings Act granting State fair trade laws an exemption from the Sherman Anti- trust Act. In 1952, the McGuire Act granted State fair trade laws exemption from the Federal Trade Commission Act, thus legalizing nonsigner provisions. These provisions, which had been en- act., by some States, permit a manu- fac rer to sign a single fair trade agree- me t with one retailer, and then en- for the agreement against all other ret lers in the State, even though they we not parties to the contract. the present time, 13 States have val nonsigner provisions?Arizona, Cal ornia, Connecticut, Delaware, 1111- Approved For Release 2000/08/27 : CIA-RDP75600380R000600080003-9 Approved For Release 2000/08/27 : CIA-RDP75B00380R000600Q800043-9 S 20362 CONGRESSIONAL RECORD?SENATE December 8 1974. nois, Maryland, Nee Han4shire, New Jersey, sw York, Ohio, Tennessee, Vir- ginia, az1 Wisconsin. In adeetion, 23 other Sta have fair trade laws with nonsigner p isions---Ariransaa Colo- rado, Florida, orgies, Idaho, Indiana, Iowa, Kentucky, siana, Maine, Mas- sachusetts, Mb c Minnesota,. Ne w Mexico, North a, North Dakota, Oklahoma, Oregnrr, F Weida, South Carolina, South Dako Washington, and West Vira. In 6 States '..at?ve some form of fair trade s currently In being. The IVIiller-Tydings Act an the Mc- Guire Actrarc perminave statu. 'rheY allow States to enact laws th auld otherwise be in violation of Fra1 statutes. In effect, they permit S to regulate goods that are in inter commerce. They provide a Federal um brella for restrictive Stets laws-. Today, I propose we remove that umbrella and thus nullify the State laws as they apply to interstate commerce. I propose that we gets the Federal Gove *nmcnt out of the marireitplace and permit competition rather than restrictive private aeree- merits to fix prices. It is important to note t eat r.either the Federal nor the State goverranern ac- tually enforce any fair trade agreements. Should a manufacturer discover that a valid fair trade agreement, into which he has entered is being violated, he must go to court and sue for damages. The Gov- ernment plays no role in this action. Exponents of fair trade agreements base their arguments on the economic and social conditions that prevailed al- most a half century ago. ln the first part of the 20th century, this soun try under- went its gravest and most prolonged de- pression during which real income fell by more than 30 percent, mien-mime-tient rose from 3 to 25 percent and more than 200,000 efusiness flans fa-led. Tne soun- try was desperate for a remedy so when resale price maintenance WaS proposed as a panacea to the count .7's preve prob- lems, and argued with logic that ap- peared to be valid, it was quickly em- braced. Resale price maintenance has long been touted as our savior from the evils of predatory price outtir g as a form of competition in which a -'?'etail firm low- ers its prices in order th draw business away from its competitors and eliminate them from the market. Once the Preda- tory firna establishes control over the market and somehow prevents any new firms from entering, it then raises prices in order to gain monepolistic profits. Thus, it is argued, that while in the short run the consumer will obtain goods at low prices, in the leng run prices will be higher and the number of stores selling and servicing these goods will be lower. Exponents of resale price maintenance often argue that fair trade acts as a calinterValling force to the market power of Olean and discount stores. These out- lets are often uniustiflibly accused of bait merchandising- and plottipg to ,de- stroy independent retail outlets. How- ever, exponents always fall to note that there are already State and Inderal laws prohibiting false and misleadirig adver- tising, fricludIng the use of -bait and switch" and other discredited ruses. It is true that chain stores give retailers a run for their money by instituting more ef- ficient marketing techniques and offer- ing less frills. But this should be seen as a challenge to the less efficient retail- ers to develop new merchandising tech- niques, rather than tis a threat to their existence. However, the evidence, includ- ing Justice Department and ether stud- ies, amply document the fact that more business failures occur in fair trade States than in non-fair trade States? proVing that fair trade does not prevent business failures. The most persuasive study supporting this assertion was dor.e by Prof. Stewart Munro Lee of Geneva College and re- ported in the spring, 1965, volume of the Journal of Retailing, Professor Lee wrote; Data show no perceptible effect of fair de laws on the total number of retail s ?es, the number of drug stores, or on the ra of failure in retailing in general or in the g trade. Indeed, when one examines the de Ls a this table closely, it appears that, if ything. the fair trade laws have opposite ects on those claimed. This syst p. of State resale price main- tenance whitil is permitted by Federal law reduces petition and restricts our system of fr enterprise at all levels of product distrib on. The U.S. Depart- ment of Justice h estimated that re- sale price rr.aintena e increases prices on fair traded goods b 8 to 27 Percent? many economists feel this increases the consumer price inde by nearly 20 percent. Conservatively, s costs the American consumer over $2 lion a year in higher peices. For examp a set of golf clubs that lists for $220 ca e pur- chased in nonfair trade areas fo 136; a $49 electric shaver sells for $32; a 1,360 component stereo system can be ob ed for $915 and a $560 19-inch color t vision sells fer $483. The marketing te niques that have been established b chain and discount stores reduces the markup on consumer goods to 10 or 20 percent rather than the standard 40 to 60 percent. This is, of course, important to all consumers, but particularly to the 23 million low income people in the United States. In the January 1969, Economic Report of the President, it was estimated that fair trade then cost consumers $1.5 bil- lion annually. When that figure is up- dated by the consumer index, it reveals that American consumers are now pay- ing a hidden :subsidy of $2.1 billion a year for fair trade. To remove that $2.1 bil- lion unnecessary burden from our eco- nomy would be one of the most im- mediate anti-inflationary steps we could take. Prof. Hendrik S. liouthakker of Har- vard, a former member of the President's Council of Economic Advisors, wrote an article entitled, "A Positive Strategy Against Inflation" in the Wall Street Journal of July 30, 1974. Professor Bout- hakker wrote: . Our economy has to be made less prone to inflation and more responslVe to anti-in- flationary policies. This means, in particular, that institutional barriers to price declines have to be removed... . Specifiralle, 1rc4escgr. Houthakker wrote that we cased curb inflation We among other actions, rhe1- s/11m resale price malnemancee - At the same the; the respected publi- cation of 'the Consumers Union, "Con- sumer Reports" ran an article in its November issue entitled "Good-Bye to Good Buys in Audio Equipment?" Fol- lowing the article was an editorial en- titled "Wliat's Fair about Fair. Trade Laws?" The article observed that fair trade "confers price fixing power on pri- vate individuals without any recourse for public review of these prim ng decisions. While the Governor at New York, Vice- Presidential designee Nelso:a Rockefeller described leer trade ass 'an affront to the American system of competitive free en- terprise'. Rockefeller advocates repeal of existing fair trade laws. So coes CU." Aside fro:n its inflationary effect, one of the most persuasive arguments against resale price maintenance is that it tends to freeze this channels of distribution and retard the advancement of technology. Fair trade helps pratect those retail out- lets that are unwilling or unable to im- prove their methods of operation. By re- stricting competitior in pnce, fair trade provides for competition on the .easis of advertising, salesmanship, and nones- sential services. A Canadian committee eet up to 3tudy the problem of resale price maintenance stated that: The crux of the problem of resale mainte- nance, Is whether the consumer should reap the benefits of the most elf ?lent forms of retailing or . should be forced to pay more In order to make retailing . . a more corn- fortable occupation.... In the pE,st, the raest vocal support for fair trade legislation has 'eeen from the small business community. It is this sec- tor of our economy. it has been argued. that 'would Ise most injured by weakening or repealir.g fair trade. Yet, one of the most active and highly respected small business organizations in the countrY, ? he Smaller Business Assoeiation of New gland--SBANE, vigorously ;supports repeal of fair trade laws. Ella state- issued on November S4, 1974, Oliver , president of SBANE, called fair ws anticompetitive and obsolete. animous consent that the full SBANE stately ent be printed RD immediately following the e text of the bill. making transactions freedom to change their e or decrease sales as price of the goods to consumers react. We eller to establish the xtrae neat he wants roduct along with ne price. To per- ht right of price in of distribu- me 0. trade I ask text of in the R printing Busines,.. must have Prices; to inc they see fie. It i which suppliers must permit the level of senrice and to include with the the right tO set the se mit the manufacturer fixing places the entire tion in a straitjacket. Resale price meintenan vation and forces produ wrong direction. It is amply that resale price maintenance stifles inno- on in the umented aces en- trepreneurs to engage in ine tt pro- motional sampaigns in order to evelop volume?that is costly for both the busi- nessman and the consumer. Approved For Release 2000/08/27: CIA-RDP75600380R000600080003-9