Senate Budget Committee Chairman Pete Domenici, R-N.M., Friday called for additional spending beyond the fiscal 2000 discretionary cap of $537.2 billion to meet defense readiness and personnel needs, and for reinstating the "firewall" between defense and non-defense spending, which the 1997 balanced budget act will phase out in 2000.
Domenici made it clear to the National Conference of State Legislatures he wants to increase spending beyond the fiscal 2000 cap expressly for defense, saying, "I'm not interested in raising the caps substantially for domestic spending," where he said money should instead be redirected to higher priority programs.
Domenici said he does not yet know by how much he would increase the fiscal 2000 cap, which represents a steep reduction from the fiscal 1999 limit of $565 billion.
Domenici also reiterated the GOP's commitment to "dramatically increasing the amount of money" for primary and secondary education, adding, "I'm thinking in the neighborhood of a 40 percent increase." According to a panel aide, that would amount to an additional $40 billion over five years and $110 billion more over 10 years; current education spending is $20 billion per year.
Although he is confident there is "huge support in the Senate" for re-establishing separate appropriations caps for defense and non-defense programs, Domenici said he does not know the administration's view.
Office of Management and Budget Director Jacob Lew, who spoke to the group after Domenici, later told reporters he would have to see the particulars of what Domenici is proposing before commenting-but did say he thinks the President's budget already "has proper balance" between defense and non-defense spending. As for whether the caps should be raised, Lew would say only the administration does not want to spend any of the projected surplus until the White House and Congress hammer out a plan to save Social Security.
But Clinton's fiscal 2000 budget itself breaches the cap by proposing $555 billion in discretionary spending-by items such as an $8 billion tobacco tax that Congress is unlikely to adopt. Asked whether the administration would cut back on new programs it proposed if the offsets do not materialize, Lew said only, "We've just put forward a full budget and we look forward to working with Congress on the full budget."
In his address to state lawmakers, Lew said the administration "wants to enter into a discussion with the states" about its budget proposal to recoup some of the funds from the tobacco settlement between state attorneys general and cigarette companies.