How Clinton's Budget Would Be Spent
By The Associated Press
President Clinton's budget by agency and issues:
CLINTON: The Pentagon would get $261 billion in new spending in 2000, including the largest pay raise for military members in
nearly two decades - 4.4 percent in 2000, followed by five consecutive increases of 3.9 percent. Nearly $3 billion would go for
Bosnia peacekeeping and enforcement of no-fly zones over Iraq. Clinton wants $4.25 billion for missile defense in 2000. He asks
Congress for two new rounds of base closings - in 2001 and 2005.
The request for $261 billion is actually lower than the $264 billion the Pentagon received this year, as measured in outlays, or
actual dollars spent in the budget year. But Clinton proposes the budget increase to $269 billion in 2001 and reach $318 billion four
years later.
The administration has said it is increasing defense spending by $12 billion in 2000 and by $112 billion through 2005. The $12
billion, however, represents the difference between what the administration had said a year ago it would spend in 2000 and what it
now proposes. Much of the $12 billion is savings from low inflation, not new money.
GOP: Republican proposals are roughly in line with Clinton's, calling for increased spending to modernize weaponry, improve troop
living conditions and invest in missile defense. But the Senate Armed Services Committee already has proposed pay increases
bigger than Clinton's.
LAST YEAR: Congress approved $264 billion for the Defense Department in the current year, including $4.5 billion in extra
money to improve overall preparedness and pay for Bosnia and Iraq operations.
CLINTON: The budget calls for spending 62 percent of government surpluses expected over the next 15 years - a projected $2.76
trillion - to help bolster Social Security's cash reserves. Without help, the retirement program is expected to run short of cash in
2032, during baby boomers' old age.
Clinton wants the government to invest about $700 billion of the cash in the stock market to try to increase its value - the first time
Social Security reserve money has been invested privately. With the rest, Clinton would use a complicated accounting strategy to
simultaneously pay down the national debt and obligate more of the country's future resources to Social Security. Administration
officials say the plan would keep Social Security from financial crisis until 2055.
Clinton has also proposed using an additional 12 percent of government surpluses over the next 15 years - or $536 billion - to
subsidize new 401(k)-style retirement savings accounts for most working Americans.
GOP: Republican leaders have agreed to set aside 62 percent of expected government surpluses while lawmakers discuss Social
Security's future, but they disagree with the specifics of Clinton's plan. They are strongly opposed to having the government invest
in the stock market, saying free enterprise would inevitably be corrupted by politics. They also have accused the president of using
funny bookkeeping that would compound debts already owed to Social Security by the rest of the government without saying how
they will ultimately be paid.
LAST YEAR: Clinton had asked lawmakers to hold off spending government surpluses during a year of town-hall meetings on
Social Security's future.
CLINTON: From families with young children to the beleaguered steel industry, the budget proposes tax credits and other tax
relief totaling $36.2 billion over five years. Among those aimed at the middle class: a credit of up to $500 for stay-at-home parents
caring for infants under age 1 and a $1,000 credit for people providing long-term care for and/or disabled people. Disabled workers
could take a $1,000 credit for costs associated with their jobs, employers would be encouraged to provide health insurance and the
steel industry would get $300 million in breaks to combat foreign dumping. There are also credits for purchase of certain
fuel-efficient cars, corporate investment in poor areas and preservation of open spaces.
The administration proposes $82 billion in new or increased taxes, led by a 55-cents-a-pack cigarette tax that would $34.5 billion
over five years. Sixteen corporate tax loopholes would be closed, raising $7.1 billion. In total, the package envisions 79 new or
increased taxes, mostly on business.
GOP: Republicans are pushing a broad across-the-board income tax rate cut of at least 10 percent, as well as relief from the
''marriage penalty'' that hits millions of two-earner couples and elimination of the estate tax on inheritance.
LAST YEAR: The president proposed $24.2 billion in tax relief and $106.5 billion in new revenue, again led by tobacco taxes that
never materialized.
CLINTON: Head Start, child care and foster care programs and would get increased spending. The budget calls for $6.3 billion
over five years to expand the tax credit for expenses to families earning up to $59,000 a year and to families in which one parent
stays home to care for children. It seeks $7.5 billion over five years to offer more child care subsidies to working poor families.
For Head Start, Clinton wants a $607 million boost to $5.3 billion, in order to serve an additional 42,000 children. The budget seeks
to help children in foster care who turn 18 by letting them keep their public health insurance.
GOP: Head start has found considerable support among Republicans, as well as Democrats, in Congress. GOP leaders have
preferred across-the-board tax cuts to more child care spending.
LAST YEAR: Clinton proposed a $22 billion child care program, which went nowhere in Congress, though there was GOP
interest in aiding stay-at-home parents. After some skirmishes, Congress approved bipartisan legislation renewing the Head Start
program, though its budget must be approved annually.
CLINTON: The budget tries to get health insurance to people who work for small business, those with disabilities returning to
work and legal immigrants.
It asks for $44 million in tax credits to encourage small businesses to join coalitions to offer health insurance to workers. It seeks
$2 billion over five years to help people with disabilities keep Medicare and Medicaid when they return to work and a new $1,000
tax credit to pay for needed adaptive technology and other special expenses.
The budget allows $1.1 billion over five years for states to offer Medicaid and the new children's health insurance program to
many immigrants, including children, pregnant women and those with disabilities. Immigrants would be eligible even if they arrived
in the country after enactment of the 1996 welfare bill. The money would also restore disability and food stamp eligibility for these
immigrants. States would be able to extend Medicaid for three years to foster children who turn 18.
GOP: Republicans also want to encourage small businesses to join in health insurance purchasing groups. And bipartisan legislation
to aid people with disabilities who want to return to work is pending in the Senate. But the GOP has been cool to restoration of
benefits for immigrants, saying people should not come to the United States expecting public aid.
LAST YEAR: The House approved legislation aiding people with disabilities, though it did not include the centerpiece - letting
them keep health benefits. It died in the Senate. Some food stamp benefits were restored for legal immigrants.
CLINTON: The administration wants to spend $45.5 billion on transportation, an increase of about 8.6 percent. Once again,
there's more money for highway and aviation safety and more to reduce traffic congestion and improve air quality. There's also
spending aimed at triggering economic growth, including about $180 million in loan guarantees for U.S. shipyards.
A big gainer is the Office of the Transportation Secretary, where the budget would jump from $89 million to $132 million. Two big
losers are the Maritime Administration, whose budget would fall from $204 million to $111 million, and the Surface Transportation
Board, whose $15 million would be cut to $1 million. The Coast Guard, which is overseen by the transportation secretary, would
get $4.297 billion, up about 6.7 percent.
GOP: Republicans are also talking about similarly isolating money for aviation improvements. But there could be a fight over an
administration proposal to raise the Passenger Facility Charge, an airline ticket tax that is used for airport construction.
LAST YEAR: The administration and the GOP found themselves in agreement on transportation. Not only did they join to approve
the nation's largest highway spending bill, $203 billion, but they agreed that all money collected by the gas tax would be spent on
road, bridge and mass transit improvements.
CLINTON: The National Institutes of Health would get a $320 million boost to its $15.6 billion budget. That's a 2 percent increase
for NIH, the nation's biggest financer of medical research. It includes an additional $35 million for AIDS-related research, totaling
$1.8 billion, and a new $50 million National Center for Complementary and Alternative Medicine.
The Food and Drug Administration, the nation's top consumer protection agency, would get a massive 17 percent increase, or an
additional $190 million. It would be the agency's first raise after six years of flat-lined budgets that have left it millions in the hole.
The money is to help the FDA approve new medical therapies faster, better inspect drug and food manufacturing plants to ensure
their products are clean and safe, and better track side effects.
The FDA also would get doubled funding, to $68 million, to ensure that stores enforce the law that customers must be 21 to
purchase tobacco. But the increase also includes $17 million in proposed fees charged to the makers of foods and medical devices,
which those industries have successfully opposed in past years.
Health agencies also will receive $230 million, an increase of $71 million, to prepare a response to potential biological terrorism.
The money will go toward research on smallpox and anthrax vaccines, a stockpile of drug treatments and to support 25 ''local
response teams.''
The Centers for Disease Control and Prevention would receive an extra $213 million, bringing its budget to $2.6 billion. That
includes a 19 percent increase for CDC to track and prevent emerging infectious diseases, like the threat of a new flu pandemic.
GOP: For the NIH, Republicans have outspent Clinton for several years as part of their goal to double its funding by 2003, and the
GOP is expected to pass a much larger increase again this year. The FDA has never fared as well, as Republicans oppose its
attempts to regulate tobacco. However, some Republican leaders have signaled support for some increased funds to speed up new
products.
LAST YEAR: Congress passed a 14 percent increase, giving the NIH $15.6 billion to spend in 1999. That was above Clinton's
request for a 9 percent increase. Congress left the FDA's budget flat after rejecting attempts to impose user fees on the food and
medical devices industries, and approved small increases for the CDC.
CLINTON: Education spending would be $31.8 billion in 2000, increasing last year's estimated $28.6 billion. The increases would
go to about $34.9 billion in 2001, continuing along those lines through 2004. Clinton called for $1.4 billion for the second year of
funding for the so-called 100,000 new teachers initiative and for $22 billion in bonds for school construction and modernization. The
White House lost a similar construction plan last year.
The president proposes tripling an after-school and summer program aimed at ending social promotion and boosting teacher
training. But he also proposes budget cuts to a program negotiated in last year's renewal of the higher education laws. He sparred
with Republicans over subsidizing private banks' lending to students.
GOP: Republicans say they're disappointed that the president did not fund local education blocks grants designed to give states and
district local flexibility and did not increase special education funding significantly. The GOP is looking at its own school
construction proposals and wants to see results before doling out another round of funds for new teachers.
LAST YEAR: Congress approved a $33.11 billion plan for education programs, a 12.6 percent increase in which favored projects
won big. Charter schools got a hefty 25 percent boost to $100 million.
CLINTON: The government would raise $8 billion by imposing a new 55-cent-a-pack cigarette tax and by tacking on a 5-cent tax
that wasn't supposed to kick in until 2002. Even without new legislation, the 24-cent cigarette tax is set to jump by 10 cents per
pack next year. Under Clinton's plan, the tax would rise to 94 cents per pack in 2000.
Over five years, these new tobacco taxes would raise an additional $34.5 billion - a substantial chunk of the total $82 billion in new
taxes and fees.
Beginning in 2001, Clinton also counts on $18.9 billion over four years by recouping money gained by the states under settlements
with tobacco companies. Many of these state lawsuits sought reimbursement for the costs of treating sick smokers in Medicaid.
Because the federal government pays 57 percent of Medicaid, the Clinton budget assumes that the federal government will be
able to recoup its share of the settlement money.
GOP: Republicans oppose all new taxes, including cigarette taxes. As for recouping of state tobacco money, Republicans and
Democrats in Congress are backing legislation to bar the federal government from seizing these dollars.
LAST YEAR: Clinton proposed new cigarette taxes as part of his comprehensive tobacco legislation, which died in Congress.
CLINTON: The Agriculture Department would get $55.2 billion in 2000 to fund a range of programs from food stamps to food aid
and rural water programs. One major omission from the budget, however, is money to reform crop insurance for farmers. Both
Republicans and Democrats have expressed interest in revamping the program this year so that farmers are more protected and
not as reliant on emergency aid programs, like the $7 billion deal passed last year to help farmers. Clinton talked of revamping the
program in his State of the Union address but in the end was unable to find the money.
Clinton has also proposed $72 million, or a 24 percent increase, to boost food safety efforts within the USDA and Food and Drug
Administration, including money for increased inspections and better research. Nearly $22 billion would fund the food stamp
program, a $300,000 increase over the current level. The administration has proposed restoring food stamp eligibility to 15,000 legal
immigrants who entered the United States before Aug. 22, 1996, and have reached the age of 65. A pilot project that would
provide school breakfasts to all children regardless of income is funded with $13 million.
GOP: Republican leaders are mostly unhappy with Clinton's lack of a plan to reform crop insurance. They are also likely to be
fiercely opposed to a proposal that would require meat and poultry companies to pay ''user fees'' for government inspection
services. That plan has been rejected six years in a row.
LAST YEAR: The current year's budget is actually about $8.2 billion higher than Clinton's 2000 proposal, mainly because of large
aid packages last year for U.S. farmers and Russia.
CLINTON: The president wants 15 percent of government surpluses expected over the next 15 years - a projected $686 billion -
to bolster Medicare. With that cash infusion, the health insurance program for the elderly and disabled, now expected to run short
of money in 2008, could hold on until 2020.
Clinton also wants to further curb Medicare payments to hospitals and other health care providers and spend $4 million more in
2000 to fight fraud. But the program's yearly costs are still expected to rise by more than $60 billion over the next five years.
Separately, Clinton is proposing a new $1000-a-year tax credit to help families pay for long-term care for elderly or disabled
relatives - something not covered by Medicare. The administration estimates 2 million Americans would benefit, at a cost to the
government of $5.5 billion.
Clinton has also reintroduced a proposal to let some people as young as age 55 buy Medicare coverage from the government,
saying it would help about 300,000 older Americans now lacking adequate health insurance.
GOP: Republicans leaders, who want some of the budget surplus for income tax cuts, have not said whether their plans would
leave money for Medicare. Before making any decisions about the program, they say they will await recommendations from a
bipartisan advisory commission due to report March 1. Most GOP lawmakers don't like the idea of opening the already
overburdened Medicare program up to younger Americans. But many support tax credits for long-term care expenses.
LAST YEAR: After trimming billions from Medicare payments in 1997, lawmakers were besieged by complaints from health care
providers who say they're stretched too thin. Congress mostly stood its ground, but further spending curbs proposed by Clinton this
year are sure to be controversial.
CLINTON: The administration wants increases for most environmental programs, especially a series of new initiatives to protect
America's natural heritage lands, combat urban sprawl by preserving open space, and ''common sense'' programs to address
climate change.
The budget proposed a $1 billion ''land legacy initiative'' that includes $900 million, about half funneled through states, to buy land
so it can't be developed.
To help cities combat sprawl, the budget proposes new ''Better America Bonds'' - financed by $700 million in federal tax credits -
to be used by communities to set aside ''green spaces'' and promote better urban planning. It's part of a $1.2 billion ''livability''
initiative aimed at preserving open space while reducing traffic congestion and air pollution.
The budget calls for a $730 million increase in spending on research to address addresses global warming, including sharp
increases in energy efficiency and renewable energy programs. In addition, the administration proposes a $200 million ''clean air
partnership fund'' for early investment in climate change programs.
It also would calls for earmarking $100 million Pacific salmon recovery program; a 40 percent boost, to $181 million, for the
Endangered Species Act; and $312 million, a 35 percent increase, in spending on the Florida Everglades. Spending by the
Environmental Protection Agency would total $7.4 billion, a 7 percent boost over this year.
GOP: Congress rejected many of the same climate initiative last year, accusing the administration of trying to implement the Kyoto
climate treaty without Senate ratification. The $200 million ''clean air fund'' will be viewed by some Republicans as trying to
impose the climate agreement. While much of the proposed $900 million in spending for new land purchases may get a warm
welcome in Congress, there likely will be arguments over where the money should be spend. Some Republicans favor using the
money to improve existing parks, not to buy new land.
LAST YEAR: The administration won more money for energy efficiency programs and as part of a last-minute budget agreement
and got an additional $200 million for climate change technology. Federal land purchases for conservation were about $320 million,
a third of what the administration is proposing for fiscal 2000. Last year, after declining budgets, the EPA's funding was increased
by $300 million to $6.9 billion.
CLINTON: Commercial TV stations - for the first time - would be required to pay a fee on their existing analog TV channels that
would raise at least $200 million annually under legislation being proposed in the budget. Proceeds from the so-called lease fee
would help federal, state and local governments upgrade communications systems used by fire, police, emergency rescue and
other public safety agencies. Broadcasters in the past have managed to kill legislative efforts to impose any new fees on stations.
Broadcasters have been given a second TV channel to convert to higher-quality digital television. When the switch is complete in
2006, broadcasters are required to return their analog channels back to the government. When a broadcaster does that, it will no
longer be required to pay the fee.
Overall, the administration proposed giving the Federal Communications Commission around $230 million for fiscal year 2000. The
agency's current budget is $192 million.
GOP: Republicans in Congress, with a few exceptions, have opposed imposing new fees on broadcasters. On the bankruptcy
issue, Republicans generally oppose such a measure. Republicans for the most part oppose increasing the FCC's budget.
LAST YEAR: The administration and the FCC did get a bankruptcy provision into a massive year-end spending bill, but the
language was taken out.
CLINTON: The Department of Veterans Affairs would get $44 billion in spending in 2000, a $200 million increase in a
hold-the-line budget that's essentially been frozen since 1997's budget-balancing plan.
The budget includes $18.1 billion for medical care, including a fresh $50 million to help homeless veterans, $250 million to combat
hepatitis C, $106 million for long-term care programs for American's aging veteran's population of 26 million and $56 million to pay
for a nationwide smoking cessation program for veterans who began smoking while in the military.
Proposed legislation also would authorize the VA to cover the cost of veterans seeking emergency care outside of VA hospitals
and clinics because there's no local VA facility, but at no extra overall cost.
GOP: Republicans believe the administration's budget is based on faulty assumptions, including that the VA administration will be
able to shave $1.1 billion in costs through management efficiencies. Critics also question the VA's ability to collect up to $750
million from insurance and co-payment programs to off set veterans' medical costs.
LAST YEAR: Congress approved more than $43 billion.
Clinton: The centerpiece of the law enforcement plan is a 21st century police initiative to spend $1.28 billion over five years on
local police, prosecutors and prevention programs. But the biggest surprise was a $20 million request to pay for a civil lawsuit
against tobacco companies to recover money spent on tobacco-related health care. A tobacco suit has been authorized, but
drafting hasn't begun. The money would pay for 40 lawyers and their support and $5 million in expert witnesses.
The new police initiative will follow Clinton's program to put 100,000 more local police officers on the street, that will reach its goal
this year. About $600 million of it would pay for hiring or retaining 30,000 to 50,000 officers. New officers would be put in crime
hot spots and some distressed cities would get help retaining officers from the previous program. The rest would pay for hi-tech
equipment, new community-based local prosecutors and prevention programs aimed at school violence.
The budget would add 60 FBI agents and 55 prosecutors to fight computer crime. After adding 1,000 Border Patrol agents each of
the last three years, Clinton calls for no increase and no additional drug enforcement agents.
Clinton would reduce other aid to state and local government by $1.4 billion, eliminating a $750 million in state prison grants, a $523
million local law enforcement block grant and a $250 million juvenile justice block grant program.
One of only two Cabinet agencies to increase in employees - by 30 percent - during the administration, the Justice Department
would rise to 129,000 employees, adding 4,000 mostly at new prisons.
GOP: Though annoyed that Clinton's cops program drew him support from law enforcement groups long loyal to the GOP,
Republicans have never voted against the money. They are expected to fight elimination of the prison grant program they devised
and might take money for it from prevention proposals they scorn.
LAST YEAR: Congress added 1,000 Border Patrol agents and might do so again this year. A major juvenile justice bill failed
because Democrats wanted prevention programs and Republicans wanted incentives for trying more juveniles as adults and to end
building separate juvenile cells. The administration got $95 million in youth crime prevention and is seeking the same amount.
CLINTON: Foreign affairs programs would receive $21.3 billion in 2000. This compares with $40.8 billion estimated for 1999, but
that figure takes into account an $18.4 billion appropriation for the International Monetary Fund.
The request for 2000 includes $500 million to support the Wye River agreement negotiated in October between Israel and the
Palestinians. It also includes $726 million for embassy security, a high priority issue since the bombings of two U.S. embassies in
East Africa last year. Also included is a request for $921 million in back dues payments to the United Nations and $295 million for
counternarcotics activities.
GOP: Perhaps the most contentious issue concerning Republicans has been repayment of U.N. arrears. An effort to achieve a
compromise settlement last year fell through when Republicans agreed to go along with back dues repayments in exchange for an
anti-abortion amendment. Clinton vetoed the legislation.
LAST YEAR: Excluding the IMF appropriation, this fiscal 1999 estimate is $22.4 billion. It includes a $1.8 billion supplemental
appropriation for embassy security.
CLINTON: Since the regular national head count takes place in 2000, the administration's proposed Census budget for that effort
skyrockets to $2.9 billion, more than double the current spending.
Funding is included to collect a large national sample for use in double checking the accuracy of the count.
GOP: That plan to use sampling is anathema to Republicans, who insist on sticking to the traditional counting methods. Congress is
likely to try to block any money earmarked for that statistical effort, but that could be complicated by the fact that statisticians say
using only traditional methods would make the count even more expensive than using sampling. Watch for long political battles
over this agency.
LAST YEAR: Republicans filed suit seeking to block the Census Bureau's plans to use sampling and won a 5-4 Supreme Court
ruling that numbers derived by that method can't be used to apportion seats in the House. The administration, however, still wants
to use sampling to check accuracy and improve the totals for other uses.
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