Wednesday, February 5, 1986
Page 2
Daily Nebraskan
DO fl
isesic
: '.- -"-"-'-" "
By The Associated Press
N
J CJ
Reagan':
'87 b
0-2
apps'oacnes
$1 trillion
WASHINGTON President
Reagan's budget will propose govern
ment spending of just under $1 tril
lion next year, including a 12-percent
boost for the military but
sweeping cutbacks in health, hous
ing and other civilian programs,
administration and congressional
sources said Tuesday.
At the same time, the budget will
meet the target of the new Gramm-Rudman-Hollings
budget -balancing
law of reducing the federal deficit
to $144 billion in fiscal 1987, which
begins Oct. 1, said officials who
spoke only on the condition of ano
nymity. This year's deficit is ex
pected to be-about $208 billion.
And the president's budget will
meet this target .not only with spend
ing cuts but with money earned
through the sale of federal proper
ties and assets, called "privatiza
tion" by administration officials.
The president will formally sub
mit his budget to Congress this
morning.
During the past three years, Con
gress has largely disregarded the
president's budget, and it has often
been pronounced "dead on arrival"
by congressional leaders.
However, with the Gramm-Rudman
law, Congress this year must either
accept the president's package or
come up with its own deScit-reduc-tion
plan of an equal magnitude, or
risk Inhering some $40 billion in
automatic, across-the-board spend
ing cuts next October.
Administration and congressional
sources said the budget would pro
pose total federal spending of $994
billion in fiscal 1987. To reach the
NelSSkan
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win
WASHINGTON - President Reagan told Congress on Tuesday the breakdown W? bv
America's welfare recipients has reached crisis proportions and ordered his administration to devise a strategy oy
December to break "the spider's web of dependency." . n a-.moA pw attpntion
While proclaiming "a Great American Comeback" from a land of broken dreams, Reagan d "tl0n
to social concerns, pledging to work with private insurers to develop affordable insurance against the costs 01
'In aState ?f tSunion address delayed a week by the explosion of the shuttle Challenger, Rea ga n. asked Con
gress to pause with him to "mourn and honor the valor of our seven Challenger heroes. He then aeliverea, as
expected, a relatively brief and upbeat report on a nation that he said is "growing stronger every W-
The president suggested few initiatives in his fifth such address, boosting again his tax reform 1 proposal 1 and
extolling Congress to cut the federal deficit by reducing spending. His remarks included an emphatic thumbs
down on tax increases. , . . L . . BM.
Reagan also suggested that in his proposed budget for fiscal 1987, which he will send to Congress today, sev
eral programs and agencies will be pegged for sharp funding cuts.
Saying heavy federal deficits cloud the future, Reagan said: "In the welfare culture the breakdown of the fam
ily, the most basic support system, has reached crisis proportions - in female and child poverty, child aoanaon
ment, horrible crimes and deteriorating schools," Reagan said. , .
In a prepared response, the Democratic Party said Reagan's view of the condition of America is too rosy, mat
under Reagan's leadership, the nation has been faced with devastating budget deficits, a floundering larm econ
omy and a staggering trade deficit. , .
The Democrats, echoing the words of Republican Senate leaders earlier this week, said that any proposals to
increase taxes to reduce the budget deficit would have to come from Reagan. (
Reagan set no specific guidelines for reform other than to acknowledge government's responsibility to provide
shelter and nourishment for those who cannot provide for themselves."
But he said, "We must revise or replace programs enacted in the name of compassion that degrade the moral
worth of work, encourage family breakups and drive communities into a bleak and heartless dependency.
A long-time opponent of comprehensive national health insurance, Reagan urged creation of a new program to
protect people who are vulnerable to being wiped out financially by the costs of serious illness.
Reagan said he wanted to "redefine government's role: not to control, not to command, not to contain us; but
to help in times of need; above all, to create a ladder of opportunity to full employment so all Americans can
climb toward economic power and justice on their own."
$144 billion deficit target of Gramm
Rudman, the budget will propose
deficit-reduction steps of $38 bil
lion, the sources said.
This will be made up of about $26
billion in spending cuts, freezes and
program eliminations, and $12 bil
lion in new revenues partly from
the plan to sell off government
properties and assets.
Despite widespread freezes and
program cuts in civilian agencies,
the National Aeronautics and Space
Administration is one of the few civ
ilian agencies slated for an increase
under the president's budget. Con
gressional sources said Monday that
Reagan would propose $7.7 billion
in spending for the space agency
next year, up $400 million from the
current level.
The president's budget calls for
A P$ P$
Open: Mon. thru Sat. 7:30 5:15
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A 138 N. 12thv
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actual defense outlays of $282 bil
lion in 1987, up from the current
level of $266 billion.
However, the budget also calls for
giving the military authority to con
tract to spend even more in 1987, for
a total of $320.3 billion, a boost of
nearly 12 percent from the current
level of $288.1 billion and roughly 8
percent above the level of inflation.
The new budget is expected to
tecycle many of the proposals sub
mitted by Reagan last year but
ignored by Congress, including end
ing federal support for Amtrak rail
passenger service, terminating mass
transit and urban development
grants and abolishing the Small
Business Administration.
Also expected to be renewed are
proposals to abolish the Economic
Development Administration, the
Matt Guitar Murphy
The electrifying Blues Brothers
guitarist with appearances on Sat
urday Night Live and the Blues
Brothers Movie, now tours with his
own six piece bluesrock band.
Matt has performed with Muddy
Waters, Memphis Slim, Chuck Berry,
James Cotton and countless others.
men: s
Monday thru Saturday
February 3 thru 8
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Appalachian Regional Commission
and the direct loan program of the
Export-Import Bank.
One program slated for abolition
in last year's budget, the Job Corps,
would be spared under the new
budget, although it would face dras
tic cuts.
In addition, the budget calls for
the sale of about $4 billion in fed
eral assets, a pet project of budget
director James C. Miller, who wants
to get government out of enterprises
he claims can be handled better by
private business.
A number of loans owed to the
federal government also would be
put up for sale in the budget prop
osal including a variety of hous
ing loans and much of the portfolio
of outstanding loans now held by
the Small Business Administration.
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:Nenansvjers
' WASHINGTON The Democ-atic
Party on Tuesday portrayed Presi
dent Reagan as presiding over a pol
icy of "spend, spend, spend; borrow,
borrow, borrow."
Reagan, the Democrats said, is
responsible for a devastating budget
deficit and a floundering farm
economy.
To present the party's response
to Reagan's State of the Union
address, the Democrats turned to
former Virginia Gov. Charles S. Robb,
and to Sen. George Mitchell of
Maine, Harriett Woods, the lieuten
ant governor of Missouri, and Reps.
Tom Daschle of South Dakota and
William Gray of Pennsylvania.
In a briefing for reporters, they
outlined the themes of that re
sponse, making clear, in Mitchell's
words, they believe the post-Reagan
era is approaching and that "the
Democratic Party is back, looking
to the future, confident about what
America can do if we do the right
things now."
"We don't underestimate the presi
dent," said Mitchell, chairman of
' the Democratic Senatorial Steering
Committee.
Paul Kirk, chairman of the Demo
cratic National Committee, who was
at the briefing but who was not to
take part in the nationally televised
response, said the presentations
will underscore the belief of Demo
crats that Reagan, in his five years
in office, "has dono more to add to
the national debt and budget defic
its of this country than all the pres
idents from George Washington to
Jimmy Carter in the previous 205
years."
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