President Clinton today sent Capitol Hill a $1.73 trillion proposed budget that reaches balance in fiscal 1999, but which contains a myriad of proposals certain to set up huge battles with the Republican-controlled Congress.
From national service to family planning, the administration's FY99 spending plan calls for focusing on programs Republicans intensely dislike and have targeted for cuts or elimination. As a prime example, the administration proposes spending $16 million for national education testing, while the House later this week is expected to consider legislation imposing a ban on spending on education testing.
In addition, the administration did not include various tax cuts Republicans want, but proposes to pay for a variety of legislative initiatives by assuming a federal share of $65.5 billion from a tobacco settlement--an agreement Republicans have said they are not at all sure will occur.
Clinton today hailed his proposed budget as one that marks "the end of an era" of deficits that have "shackled our economy, paralyzed our politics, and held our people back." Speaking in the White House's East Room, Clinton paid tribute to the bipartisan group of members of Congress who forged last year's Balanced Budget Act - while eulogizing those members of Congress who were defeated in 1994 after voting for Clinton's 1993 tax package.
Clinton repeated his call to use surpluses to "save Social Security first," and asserted that each of the new programs he proposed are paid for and would not "add a dime" to the deficit.
Clinton's proposed budget includes a variety of initiatives administration officials have floated in recent weeks, including child care tax credits and the expansion of health insurance options for people between the ages of 55 and 65.
As expected, education remains a prime focus. The administration calls for spending some $7.3 billion over five years to help states reduce class size, $5 billion in tax incentives for school construction and $350 million for teacher preparation programs.
For national service, the administration proposes $781 million, a 14 percent increase over FY98. The budget includes the establishment of an Environmental Resources Fund, which would involve a 14 percent boost for environmental programs--partially funded through the renewal of taxes that support the Superfund program.
In addition, the Clinton budget calls for a $1.5 billion increase for the National Institutes of Health--the largest boost in history--as well as a $15 million increase in family planning programs, and a $100 million boost for the low income home energy program--particular targets of conservative Republicans.
The administration also proposes restoring food stamp benefits to legal immigrants. And the White House plans to ask for both parts of the additional International Monetary Fund replenishment in a supplemental spending bill, according to the budget. There has been discussion of taking up the requests for the $14.5 billion quota increase and the $3.4 billion for the New Arrangements to Borrow separately.
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