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Show myrmr-r- v PPWh w Hl ' The Salt Lake Tribune As Congress Adjourns Saturday, November 26, 1983 A7 Budget Process Left in Tatters By Jonathan Fuerbringer New York Times Writer Noon to 7 p.m. Open Sunday W ASHINGTON hen Congress adjourned and slipped off into the night last week, it left its budget process in tatters. Those involved will argue over who was at fault. But no one is arguW onee-vaunt- 'vsnui adadeaeive 'i Ftesent-fclVi- s aTfofeSQidhal Installation on any Qavuo Car Stereo Rustem fljtf(!to$edT)efe MSTFREE Mod-3- 0, 0 SANYO RC 2S .AUT& REVERSEfcMIWI CHASSIS Siz L6CKIJ0& FAST F0eWAW AKJfi REWIND 2763 South State cnTie IHarantg Salt Lake 'JENSEN 485-007- 0 RtJ-- GQb IB L ing that the budget process worked in 1983, The inescapable fact is that Congress went home without meeting its own directive, issued earlier in the year, to reduce federal deficits by raising taxes and cutting spending. Some influential members of Congress are beginning to express serious doubts about the viability of the process for the future, although the current system was put into place less than a decade ago. Most agree that the system is not working because members will not discipline themselves to make it work. They will not vote for what they say needs to be done. Whimpering Considerably I dont think it is dead, said Rep. James R. Jones, the Oklahoma Democrat who is chairman of the House Budget Committee. But it certainly has been severely damaged and is whimpering considerably. The budget process is only going to be as good as the leadership from the White House and the Congress." Sen. Pete V. Domenici, the New Mexico Republican who is chairman of the Senate Budget Committee, was less grim. I think it stirred ev erybody up to understand that it will be difficult to get deficits down, he said. It's just not going to work all the time, just like other things up here don't work all the time. The budget process, which was first used in 1975, set up budget committees in both branches of Congress. They draw up an outline of the not a process problem it was a decision problem and no process will solve that, said Alice M Rivlin, former director of the Congressional Budget Office, now director of the economic studies program at the Brookings Institution here. A lot could be done to improve the budget process, but it would not have This uas the first time Congress uent home without completing the process in even a symbolic fashion. budget, called a budget resolution. The resolution is then sent to the floor of both houses and, once passed, fixes overall spending and revenue targets. Tax Hikes, Spending Cuts These targets, which themselves have been difficult for Congress to agree on, have in recent years established the tax increases and spending cuts needed to reduce Federal budgtt deficits. As designed, the budget process then lays out specific procedures to be followed and sets specific deadlines for action on cutting spending and raising taxes to comply with the targets in the budget resolution. On paper, it looks good. In reality, Congress can ignore the instructions. It is one thing to vote for the budget resolution and set targets. It is another, as was proved this year, to vote for the tax increases and spending reductions to meet the targets. "The failure to act this year was changed the outcome this year. The current budget procedure has run into problems almost every year and has had dramatic impact on the deficit only twice. The most successful use occurred in 1981, when President Reagan won a major package of tax cuts and spending reductions. It was also used to reduce deficits m 1980 and 1982. The failure this year was the most dramatic and worrisome since the process came into being. This was the first time Congress went home without completing the process in even a symbolic fashion. Neither the House nor the Senate voted any of the $73 billion in tax increases over three years that they themselves called for in the budget resolution approved in June. The House voted $10 billion of the $12.3 billion in spending reductions over three years, but the Senate never voted on its slightly larger package of reductions. Reg. $60. Two 49" 8-1- 6, . 6-1- 4. a. women's suits 99" ,179 women's kneehigh socks 99 3 $120 to $265. A terrific collection of suit styles at wonderful savings. Solids, stripes and tweeds. Womens Dresses - all stores. Reg. b. argyles and solids. In beautiful fashion colors. Hosiery in Accessories - all stores. polysilk dresses 59 Reg. $80. Beautiful Winteralls pantyhose holiday dresses that save look and feel absolutely wonderful! Red, fuschia, blue. Womens Dresses - all stores. 20 Reg. $4.50. Warm texured pantyhose in six delightful colors. AB, CD, EF. Now thru Dec. 3rd. Hosiery in Accessories - all stores special group women's dresses 99 women s Sizzle bras 49 to $78. Special holiday values on soft pincord and polysilk dresses.. Womens Dresses - all stores. Reg. $75 saveZU Seamless, front closure underwire bra in a beautiful sheer stretch fabric. BCD. Now thru Dec. 1 1 th. Lingerie - all stores. women s Richard Benay suits womens Christmas panties 89 1 99 Reg. $5 Classic Burlington socks in womens 99 '1 99 that meet the executive style with three unique pinstripe styles! 6 to 16. Womens Dresses all stores. Reg. $120. Tailored suits -- and hipsters decked with holly, bells, snowflakes, dots or stripes. SML. Lingerie - all stores. Reg. $2.75. Festive bikinis c. milipro- grams that were to match the reductions passed earlier this year for Social Security recipients. Higher Deficit Looms The failure to act this year has left the government facing a higher deficit for the fiscal year 1984, w hich began Oct. 1, than originally expect ed. And, more important, the breakdown of the process leaves in doubt whether Congress and the administration will be able to deal with future deficits that are projected to stay in the $200 billion range unless there is action. Jones is not optimistic about the fate of the process for next year Short of an international financial crisis or the collapse of the economic recovery "it looks fairly dismal, he said. I don't see the recovery being damaged enough in 1984 to force action before 1985." Domenici and Jones would like to change the process. Among the ideas budbeing discussed are a two-yeget and combination of the and appropriating -authorizing committees into program committees so that a single committee would be responsible for the spending decisions in its assigned area. "Changes need to be made, yes,' said Jones. "But I don't know of any particular changes that would force political responsibility. ar program- WASHINGTON beautiful dresses that work from office to evening! Misses Women's Dresses - all stores. petite reductions for tary and government pension Hefty Deficit Launches Fiscal Year (AP) ernment started out the fiscal womens georgette dresses SAVINGS Also lost in the inaction were the cost-of-livi- colorful jewelry save 1(196 Reg. $4 to $35. Bright and pastel jewelry adds a special glow to the holidays! Necklaces, earrings and bracelets. Accessories - all stores. The govnew year last month spending $25.07 billion more than it took in, officials said Thursday. The Treasury Department monthly statement said federal spending for the first month of fiscal 1984 totaled $70.23 billion while receipts only amounted to $45.16 billion. The October shortfall was $1 1 billion less than the $26.17 billion registered during same month last year, which was a record at the time. In the year since, monthly deficits have surpassed $20 billion six times and a new high of $29.3 billion was set last May. 83 Deficit a Record Last month's red ink comes on top of a fiscal 1983 shortfall of $195 4 billion, the biggest budget deficit in the nation's history and $85 billion higher than the previous record, 1982 s $110.7 billion. The Reagan administration's latest official prediction, made in July, is for gradually declining deficits after fiscal 1983. That mid-yea- r projection has this years shortfall, for example, at about $180 billion, 1985's at about $170 billion and 1986's at $129 billion. But officials have said since then that deficits more likely will stay at about the $200 billion mark for the next few years. Interest Cost High Friday's report showed that interest payments alone on the public debt accounted for more than 40 percent of last month's shortfall. That illustrates a key point officials have made in calling for action to control deficit spending. That is, that the longer action is put off, the more difficult any solution will be because as the national debt accumulates over the years, so does the amount of money it takes just to finance the debt. Last month's receipts included $23.2 billion in individual income taxes, $14.3 billion in taxes and contributions to Social Security, $460 million in corporate income taxes and $3.1 billion in excise taxes. one-mon- S15 Million Set As Grenada Aid - WASHINGTON (UPI) The administration announced Friday a $15 million military training program for Grenada that could involve the presence on the island of as many as 100 U.S. trainers. The program for the military training and equipment for the Caribbean Peace-keepin- g Force on Grenada brings to $34 47 million the amount of U.S. financial assistance for Grenada in the current year. Programs of $15 million in development funds and $3 47 million in emergency aid for Grenada already had been announced. According to the announcement, the military program is urgently required to train, equip, supply and provide logistical support" for the g Caribbean operation so that it can take over security responsibility as the U.S. forces withdraw from Grenada. So far, the governments of Jamaica, Barbados, Antigua. Dominica. Si. Lucia and St. Vincent have contributed to the force on the ispeace-keepin- . . a Christmas tradition S Castletons stores will be open 16 a m. til 9:30 p m 24th. Fashion Place open Sundays 12 to 5 p.m. thru December thru Saturday Monday HOLIDAY STORE HOURS: All 400-ma- n land. The decision, said the State De- partment. "follows extensive prior consultation witn Congress" and could involve the use of as many as 100 U.S. training personnel on the island. I |