SENATE UNIT REJECTS MOST CIVIL SERVICE CUTS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP86B00338R000400620030-9
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 21, 2016
• Document Release Date: September 12, 2008
• Sequence Number: 30
• Publication Date: April 14, 1983
• Content Type: OPEN SOURCE

Approved For Release 2008/09/16: CIA-RDP86B00338R000400620030-9
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44
Senate Unit Rejects Most Civil Service Cuts
By Helen Dewar
Washington Post Staff Writer
The Republican-controlled Senate
Budget Committee yesterday le,
'ec~ ted _ most of President Reagan's
proposed cost-cutting for the Civil
Service next year, including his year-
long freeze on federal pay.
It also brushed aside many of
Reagan's proposals for new savings
from Medicare, the health care pro-
gram for the elderly, as it continued
to shield domestic spending pro-
grams-including food stamps, wel-
tare and other benefits for the
poor-from sweeping new cutbacks
in the fiscal 1984 budget.
While approving some reductions
in Medicare and other basic benefit
programs, the committee shied away
from many others recommended by
the president.
By late afternoon, when it had
tentatively completed its actin on
spending, the cutvmittee ha added
more than 811.3 billion to Reagan's
proposals for all domestic spending.
is was more than three times
the $3.3 billion savings in defense
that it approved last week in reduc-
ing Reagan's proposed military
spending buildup from 10 percent to
5 percent after accounting for infla-
tion.
The committee's actions left a
tentatively projected deficit of
$192.3 billion before a vote on a pos-
sible tax increase today, and Com-
mittee Chairman Pete V. Domenici
(R-N.M.) vowed to take his col-
leagues back through their spending
decisions in hopes of curtailing
spending and reducing anticipated
deficits over the next five years.
Domenici is pushing for no signif-
icant, tax increases before 1986. But
Democrats want about $30 billion in
additional taxes, which is what the
House has approved, for fiscal 1984. ' While accommodating about $10
And conservative Republicans were billion worth of Medicare savings
circulating an omnibus budget alter- through 1988 that were part of the
native that would freeze taxes while Social Security rescue plan approved
bringing down deficits by seeking by Congress last month, the commit-
new spending cuts. tee approved only $13.6 billion of
For the Civil Service, the commit- the $31 billion in additional Medi-
tee left room in the bu get fora 4 care savings that Reagan recom-
erp cent pay raise in Aril. 1984. six mended for the-five-year period.
months lats___ er than it normally would It approved a freeze on fees for -iii ome_The House, its budget, has doctors-who charge more than fed-
approved a percent raise amine erally approved rates. But it rejected
this October.
Reagan had recommended no pay
raises through October, 1984.
The 'committee approved the de-
layed 4 percent raise after rejecting,
7 to 4, a proposal by Sen. Daniel
Patrick Moynihan (D-N.Y.) for a
raise of 5.25 percent this October,
followed by 4 percent raises in later
years.
The committee's action does not
guarantee a pay raise; it merely al-,
lows room in the budget for one that
would cost the equivalent of 4 per-
cent for 6 months. However, the ac-
tion considerably improves chances
of at least some federal pay raise
during the year.
The pay raise approved by the
committee was just.for Civil Service
employes, although committee aides
said they expected raises to be ap-
proved for the military as well.
On Civil Service retirement, the
committe re'ecte ea an's propos-
al fnr a 12-month rl .lay m co tf-
living increases for pensions, and in-
stead anticipated congress,nnal an _
proval of a six-month delay, the
same as Congress has approved for
Social Security.
It also implicitly rejected R agan's
proposal to increase federal worke'rs'
contributions to their retirement sys~s-
tefn and to reduce ene 1 ss or work-
ers who retire before age 65.
a proposed increase in beneficiaries'
share of hospitalization costs.
"That proposal was right up there
with defense in taking a good idea
and blowing it," a committee aide
said.
The committee's spending projec-
tions anticipated an increase in
Medicare premiums for individuals
who earn more than $25,000 a year.
For them, monthly premiums would
be raised from an average $14.30 to
$22.20,- according to committee
aides.
for Medicaid for the poor, it ap-
proved an extension of existing curbs
on.cost growth approved two years
ago. - .
For health as a whole, the com-
mittee approved $1.6 billion more
than Reagan wanted, including a
permanent expansion of several
health care programs that had re-
ceived a one-shot infusion of new
funds in the jobs and recession-
relief bill that Congress passed last
month.
For income security, including
Civil Service pensions, it approved
$2.5 billion more than Reagan re-
quested. It also brushed aside most
of his recommendations for cuts in
programs aimed at helping the poor.
It'a0ded $300 million for child nu-
trition and related programs.
Still at issue as the committee fin-
ished its first round of votes on do-
mestic spending was whether it
would raise taxes significantly or go
back and make spending cuts to help
bring down the deficit.
"We've been spending money as
though we had it to spend." Sen.
Slade Gorton (R-Wash.) complained
at one point. Taxes were the main
item still left on the agenda last
night.
On education, employment and
social services, the committee broke
again with Reagan in ignoring rec-
ommended surgery, including a con-
troversial proposal to consolidate
student loan programs.
Instead, the committee approved
a continuation of current programs,
augmented by increases for activities
such as education for deprived chil-
dren and job training for dislocated
workers. Overall, it added $1.7 bil-
lion to Reagan's budget for educa-
tion and jobs, or about 7 percent
more than he wanted.
Shortly before the committee was
to take up taxes, 19 Republican sen-
ators announced that they will vote
against any budget' that anticipates
repeal of the 10 percent income tax
cut due in July or cancellation of au-
tomatic inflation adjustments in tax
rates for future years.
They were attempting to counter
a move by five moderate' Republi-
cans to repeal both tax provisions, a
move that is supported by many
Democrats. Y
"We cannot he party to efforts to
raise taxes on working men and
women any further than has already
been clone in the last two years," the
senators said in a letter to Majority
Leader Howard H. Baker Jr. (R-
Tenn.). "Enough is enough."
Approved For Release 2008/09/16: CIA-RDP86B00338R000400620030-9