European Stars and Stripes (Newspaper) - February 8, 1994, Darmstadt, Hesse Page 4 the stars and stripes 1995 Federal budget l tuesday february 8.1994 $1.52 trillion proposal unveiled slew of programs facing cuts As Clinton seeks to Dent deficit Washington a president Clinton presented a $1.52 trillion budget for 1995 to Congress on monday that would pare hundreds of programs and drive Federal deficits to their lowest level in six years. As promised he would raise tobacco taxes to help finance his plan to revamp the nations health care system. Unlike his first budget a year ago Clinton unveiled no sweeping policy overhauls for the fiscal year that begins oct. 1. Instead he proposed savings required by the deficit reduction plan he outlined a year ago and congressional democrats passed last summer. That plan is designed to shrink the Federal deficit by nearly $500 billion Over five years. Clinton would use some of the savings for Highway construction the head Start program for poor preschool children and dozens of other programs he says will help the Economy grow. However because of the snug spending ceilings imposed by last years deficit reduction package Clinton would pay for those increases by eliminating a weather office in Samoa and 114 other Small programs and by holding hundreds of other programs at or below this year spending. Thanks to a robust Economy and last Summers deficit cutting package the president projects next years shortfall at $176.1 billion the Best showing since the $152.5 billion Gap of 1989. That is also $126 billion less than Clinton had expected for 1995 just one year ago. The government would spend $1,518.3 trillion next year while collecting $1,342.2 trillion in revenues. But the red Ink swings upward again at the decades end hitting $201.2 billion in 1999, without the enactment of Clinton a no. 1 priority for this year a revamping of the country a health care system. If that initiative is enacted Clinton projects next years deficit would sink to $165.1 billion and the 1999 shortfall would be $181.1 billion. A enactment of health care Reform with its focus on controlling health care costs is the key to making even greater Progress on deficits a a Clinton said. To finance his health care plan Clinton would boost the 24-Ccnt-a-pack tax on cigarettes to 99 cents bringing in $67 billion Over the next six years. He also would save $118 billion from medicare by slicing reimbursements to hospitals and making benefits More expensive for Many of its elderly beneficiaries. Medicaid payments to states would be trimmed by $61 billion. But the spending plan does riot include one of the biggest chunks of the Clinton plan the payments individuals would make to the new regional alliances that would Adri minister most of the health care system. Critics say these payments should be included in the budget As history a biggest tax increase. Despite the improving deficit picture and Clinton a impressive budget successes of last year a Rocky Road awaits the proposal on Capitol Hill. A conservatives believe it leaves spending and deficits at unacceptably High Levels. Liberals say it is too rough on social programs such As Public housing. Beyond the higher tobacco tax Clinton a package imposes no new general tax increases. However it does increase government revenues by $1.52 billion in 1995 by increasing More than 30 user fees ranging from higher Entrance fees at National Parks to increased fees for meat and poultry inspections. Defense spending would Rise slightly to $263.7 billion about $3 billion More than this year. Since some of the funds Are for Long term projects such As weapons development some of it will be spent Over the next several years. Clinton would pare 181,000 service members and civilian personnel from the defense department while continuing development of the air forces f-22 stealth fighter a new attack submarine and the new Comanche attack helicopter for the army. The budget does not reflect the costs of the changes Clinton wants to make in welfare. Administration officials have said that legislation is not ready yet. But the budget does seek $8.2 billion Worth of increases next year for about 90 programs Clinton considers of the highest priority. His budget would boost Job corps and four other labor department Job training initiatives from $1.6 billion this year to $2.1 billion in 1995. Spending for the National Institute of standards and technology which supports private technological research would grow from $370 million to $527 million. Head starts coffers would grow from $3.1 billion to $3.5 billion. Funds for Highway construction now $18.2 billion Ihian Hinna in uts pics of president Clinton a fiscal 1995 budget on display at the government printing office in Washington on monday. Would hit $18.8 billion. Recognizing increasing Public concern about crime and a migration the budget for hiring police officers and other Justice department initiatives would grow nearly tenfold from $83 million this year to about $810 million. But nearly every Agency had its share of losers As Well. For example 33 education department programs that Cost $692 million this by Chuck Vinch Washington Bureau Washington a the fiscal 1995 defense budget request unveiled monday is a mixed Blessing for service members looking for a pay raise. The Good news the budget provides for a raise of 1.6 percent next january. The bad news that a the lowest increase since 1983. The relatively Small raise is a reflection of the Clinton administration s multiyear budget plan passed by Congress last year which Calls for capping pay increases of All Federal workers As part of the broader deficit reduction Effort. President Clinton a plan originally called for freezing the pay of All Federal workers including service members for fiscal 1994. That failed when lawmakers pushed through a military raise of 2.2 percent by shifting funds from other defense spending accounts. That raise took effect last month. But Clinton a original proposal also called for Cap pay raise is As important to readiness As weapons a a senior defense department official Ping raises Over the subsequent four years at 1 5 percent below the rate of inflation. Fiscal 1995 would be the firs of those four years. The inflation rate is expected to Rise about 3 percent next fiscal year. _ a a Widd we like to have a raise that fully matches the inflation rate of course a said a senior defense department official. A a pay raise is As important to readiness As weapons modernization. But we re Happy we could get any raise at still its a bitter Pill for the Pentagon to Swallow particularly at a time when Many officials feel readiness has eroded and the services Are beginning to have problems attracting sufficient numbers of High year would be eliminated along with $409 million in Justice department Grants for fighting drug abuse. Aid to the poor for Utility Bills would shrink from $2.1 billion to $791 million next year. Assistance that helps cities operate mass transit systems would drop from $802 million to $681 million and funds 4o support the nuclear weapons stockpile would drop from $3.3 billion to $2.7 raise Quality recruits. The purported Gap Between military and private Selt a a was est which has hovered Between 11 percent and 12 percent Over the past few years is expected to Rise As High As 15 percent in the next few years according to service officials. But the senior defense department official said a be uncover heard a service member say he was leaving the military because he did no to get a big enough raise. People done to join the military because they re motivated by a even so other officials said that undercutting the annual military pay raise the foundation of personnel compensation a sends the wrong message at the wrong time. By itself it May not have that much of an Impact on recruiting and retention a an army official said. A rightly or wrongly it fuels the perception that is administration is not really committed to taking Are of the military personnel who Are asked to serve m such places As Somalia and the Balkans. A in the Long run that a got to
