LEGISLATIVE SESSION THE SENATE RESUMED CONSIDERATION OF LEGISLATIVE BUSINESS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP75B00380R000600080003-9
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 63
• Document Creation Date: November 17, 2016
• Document Release Date: August 14, 2000
• Sequence Number: 3
• Publication Date: June 21, 1974
• Content Type: OPEN

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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
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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
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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,
-
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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
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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
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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
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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
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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
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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
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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-
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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-
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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
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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,
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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.
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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
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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-
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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-
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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).
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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
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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-
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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.
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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,- ,
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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
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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
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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
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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
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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-
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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-
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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-
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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.
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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.
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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-
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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
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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
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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.
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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
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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
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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-
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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
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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.
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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-
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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-
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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
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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-
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'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
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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-
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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
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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
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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
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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-
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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.
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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
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*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
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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-
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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.
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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
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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,
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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
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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
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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
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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-
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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.
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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-
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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.
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