Congress approves $1.8 trillion 2001 budget plan

Congress Thursday passed the conference report on the fiscal 2001 budget resolution-making this the second year in a row since Republicans assumed the majority in both chambers that Congress has adopted the annual budget plan by the statutory deadline of April 15.

The $1.82 trillion resolution provides for total fiscal 2001 discretionary spending of $600.3 billion in budget authority and $625.1 billion in total outlays, or an increase of roughly $14 billion over the Congressional Budget Office's $586 billion estimate of an fiscal 2001 spending freeze. It sets the fiscal 2001 defense discretionary spending level at $310.8 billion in budget authority and $297.7 billion in outlays, and non- defense discretionary spending at $289.5 billion in budget authority and $327.4 billion in outlays.

The House passed the resolution by a largely party line vote of 220-208, and the Senate later followed suit, approving next year's budget by a 50-48 margin.

The resolution includes $150 billion over five years for either tax cuts or paying down the publicly held debt, and directs the House Ways and Means and Senate Finance committees to report out two reconciliation bills by July 14 and September 13.

In addition, it contains a reserve fund of $25 billion for additional tax cuts and debt reduction, with $1 billion available in fiscal 2001, as well as a second reserve fund to allow for a higher CBO estimate of the fiscal 2001 on-budget surplus to be used for more tax cuts or, in the House, more debt reduction. For Medicare reform and prescription drug benefit legislation in the House, the budget sets aside $40 billion over five years; for the Senate only, it also provides a $20 billion reserve fund specifically for the drug benefit, should the Senate Finance Committee report out prescription drug-only legislation. Dropped from the conference report was Senate language assuming $1.2 billion in revenue from new oil drilling in Alaska.

Meanwhile, saying the GOP strategy "defies common sense," President Clinton Thursday blasted the Republican budget, panning it as an irresponsible proposal that would either force cuts in critical programs or return the country to the days of deficit spending. Speaking to the American Society of Newspaper Editors, Clinton recited a familiar list of objections to Republican fiscal policy, arguing that the fiscal 2001 budget resolution contains tax cuts that are too high and assumes "untenable" reductions in non-defense programs.

The GOP, Clinton charged, would put "Social Security and Medicare on the back burner" in favor of tax cutting. But in attacking the plan, Clinton invoked the fall election, a tactic that may become increasingly familiar as the year continues. "They're out there in the election season telling us they want to spend more on education, health care and the environment," Clinton said, adding: "The choices Congress will make this spring are fundamentally the choices Americans will make this fall: What are our priorities? Will we maintain our commitment to fiscal discipline?"

Congress wrapped up its legislative work for the week Thursday, giving both chambers a jump start on the spring recess. The House is expected to be in recess for two weeks, returning Tuesday, May 2. The Senate will be out for one week, returning Tuesday, April 25.