Congress Gets Down to Business on FY 1996 Budget

The new fiscal year starts five months from now. During this time, Congress will go through an intensely controversial period as it writes budget legislation. It is almost a certainty that science and technology funding will be cut, the only question being by how much.

Senate Budget Committee Chairman Pete Domenici (R-NM) is going to take the first stab at coming up with more than $1 trillion in savings by the year 2002 with a budget resolution next week. This resolution sets the general outlines of federal revenue and spending. He is expected to call for a freeze in domestic discretionary program spending through 2002, and, in addition, $200 billion in cuts through program terminations. This resolution will indicate how much sentiment there is in the Senate to eliminate the Departments of Energy and Commerce, and to establish a new Department of Science. This resolution will also give a target for aggregate science and technology spending. Domenici had planned to have his resolution in hand by now, but postponed it. His explanation: “There’s just too much strain to do it under the gun....There’s a lot of queasiness here -- I’m queasy myself.” House Budget Committee Chairman John Kasich (R-OH) will produce his own budget resolution in mid-May, with a House vote on May 17 and 18. A final, compromise budget resolution is optimistically scheduled for the end of May.

There will be immediate and enormous controversy surrounding these budget resolutions. During the last 32 years, spending on domestic programs has fallen only three times. Under the Domenici plan it would likely decline every year for seven years. The Senate Appropriations Committee has already gone on record as being very wary of a spending freeze, much less further cuts. One policy group estimates that non-defense discretionary appropriations would be reduced by one-third or more below once projected levels (which allowed for growth) by the year 2002 under this scenario.

The numbers in the budget resolution are going to then be used, according to House Science Committee Chairman Bob Walker (R-PA) as targets for various science and technology authorization bills (see FYI #53.) Maximum spending caps and program direction would be set by the science committee in these bills, which may be rolled into one omnibus science authorization bill. This is where programs which are out-of-favor with House Republicans may get the ax, such as the Advanced Technology Program. This is also where the momentum for a new Department of Science could gather. This authorization legislation would serve as a guide for the appropriations committees.

Around this time the various appropriations committees will write their own bills. All thirteen bills are supposed to go to the full House by June 10, for final House action by June 30. A vital consideration for the VA, HUD, Independent Agencies appropriations subcommittees (which have jurisdiction over NSF and NASA), the energy and water development appropriations subcommittees (DOE) and the Commerce, Justice, State appropriations subcommittees (Commerce, including NIST) are their 602(b) allocations. This is the amount of money which each subcommittee will be given to “spend” for FY 1996, and is determined by the full appropriations committee in each house. A large part of the VA, HUD bill funds veterans medical care. An attempt to reduce this spending ran into real opposition earlier this year, so this program is not likely to see significant cuts. NASA’s space station also seems to be relatively insulated from spending reductions on the committee level, although anything could happen on the floor. Pressure on other program budgets is likely to increase.

Senate appropriations action will follow, with final legislation to reach the president’s desk by September 30. Congress usually finds this schedule difficult to meet under the best of times; this year the process is going to be far more difficult. Much of the bipartisan approach to appropriations legislation on the committee level disappeared during the first 100 days of this session. President Clinton can, of course, veto any bill.

The House of Representatives returns from its three-week spring recess today to begin this process. Members of Congress will hear from their constituents during the coming months about what the budget should look like. A forthcoming FYI will provide guidance on constituent communication with Congress.