Mr. Brown's Investment Budget

•(May 20, 1997) Floor Action

•(May 15, 1997) House Concurrent Resolution 82

•(April 8, 1997) House Concurrent Resolution 58

•(March 25, 1997) The 1997 Investment Budget

•(September 25, 1996) The 1996 Investment Budget

Press Releases

•(May 21, 1997) Brown Garners House Support for Investment Budget

•(May 19, 1997) GAO Finds Federal Investments Declining

•(April 9, 1997) Brown Introduces Investment Budget

•(March 26, 1997) Brown to Introduce Investment Budget Plan

•(March 20, 1997) Brown Lauds Sensenbrenner Budget, Calls for Stronger National Investment

•(January 22, 1997) Brown Announces Investment Budget

•(September 25, 1996) Brown Releases National Investment Plan

Views and Estimates

• Fiscal Year 1997

• Fiscal Year 1996

Staff Analysis

•(May 21, 1996) The Fiscal Year 1997 Budget Resolution

•(March 28, 1996) President Clinton's FY 1997 R&D Budget

GAO Report

•(May 21, 1997) BUDGET TRENDS: Federal Investment Outlays, Fiscal Years 1981-2002

Brown Takes Investment Budget to House Floor

On May 21, the House passed House Concurrent Resolution 84, the Congressional Budget Resolution for fiscal years 1998-2002. That bill, which does not require signature by the President, sets specific spending targets and legislative goals for other implementing policy such as tax cuts and entitlement reform. The Budget Resolution embodied the agreement reached by the President and the Republican leadership to reduce Federal spending until the budget achieved balance in fiscal year 2002.

During Floor consideration, the House considered an amendment offered by Rep. George E. Brown, Jr., to substitute the policies and priorities of his Investment Budget for those in the Budget Agreement. Under House rules and precedents, the only amendments that may be considered to the Budget Resolution are complete substitutes. Mr. Brown's amendment incorporated the text of House Concurrent Resolution 82, which he had introduced on May 15.

Key Provisions of the Investment Budget

The Investment Budget was developed earlier this year as a potential alternative budget resolution. It provides for increases in investments including R&D, transportation, and education and training. It offsets these increases by limiting defense spending, incorporating the Medicare reform proposals from the Budget Agreement, and including the reductions in unwarranted benefits proposed by the President.

Balanced Budget

Using CBO scoring, the proposal provides a surplus by the year 2002. In addition, the proposal meets the previously established discretionary cap in Fiscal Year 1998. In sum, this proposal cuts spending by $220 billion over the next five years.

Non-Defense Discretionary Spending

The proposal increases non-defense discretionary spending from $282 billion in Fiscal Year 1998 to $306 billion by 2002. Total expenditures over the next five years exceed the Budget Agreement by over $30 billion in order to provide for domestic investment initiatives.

Research and Development

An overall increase in R&D, including basic research, energy research, health, space, agricultural research, and defense research of $30 billion over the President's request over the next five years.

Transportation

An increase in physical capital investment spending of $40 billion over five years above the President's request including an increase in highway spending up to $26 billion per year, the maximum spending level that leaves stable trust fund balances.

Education and Training

The proposal adopts the President's discretionary spending proposals for education and training including increased funding for Pell grants, education technology and school to work programs.

Energy Conservation

Increased spending of 5% per year for energy supply R&D and energy conservation will create a more robust relationship between energy policy and other emerging environmental and economic influences that will affect future energy consumption patterns.

Environment

The proposal increases spending for Superfund cleanup, an expansion of the Brownfields Initiative, and Clean and Safe Drinking Water Act state revolving funds. This will enhance the economic development and use of natural resources in an environmentally sustainable manner.

Technology Development

Increased funding for the National Institute of Standards will enable NIST to maintain its core scientific research programs and to expand its technology and manufacturing partnership programs. Steady growth in the Advanced Technology Program will promote industrial alliances and lead to the direct creation of new, high tech jobs in the future. Sustaining funding for the Manufacturing Extension Program will provide technical and business assistance to improve the competitiveness of U.S. manufacturers.

Enforcing Investment Spending Targets

Overall investment spending targets exceed the President's budget by over $70 billion over the five year period and will begin to halt the decline in investment spending. The proposal includes an enforcement mechanism through the Section 602 budgetary allocations which protects investment spending from consumption spending during the appropriations process.

Future Investment Spending

Establishment of a trust fund from the proceeds of FCC spectrum auctioning that may be used to fund future investments.

Medicare

The proposal incorporates the Medicare reform package included in the Budget Agreement. This extends the 25% Part B premium payments, reforms provider payments, and extends Medicare solvency through 2007.

Medicaid

Medicaid savings are offset by Medicaid expansion to restore benefits for disabled legal immigrants, legal child immigrants, to finance children's health insurance. No net change in Medicaid is assumed.

Consumer Price Index

No legislative change in the CPI is included.

Tax Cuts

No tax cuts are assumed in this proposal until the budget is balanced.

Welfare Reform Restorations

The proposal restores both Medicaid and SSI benefits for most of the legal immigrants that would have been affected by last year's law.