House budget chair calls for deep cuts in non-defense spending

Calling for controversial reductions in mandatory spending and putting a squeeze on nondefense-related discretionary programs, House Budget Committee Chairman Jim Nussle, R-Iowa, revealed the details of his fiscal 2004 budget resolution Wednesday.

Nussle's resolution differs substantially from President Bush's 2004 budget submission in several respects, calling for nearly an $11 billion cut below the president's discretionary total, as well as steep cuts in mandatory programs. And while the budget still makes room for a $726 billion economic stimulus/tax cut plan, the resolution would not accommodate the entire Bush tax cut proposal over 10 years.

"I don't like deficits. I don't want deficits, and I won't pretend that deficits don't matter," said Nussle. "We can't get back on track" without tough choices.

Altogether, Nussle's budget would reach a unified balance in fiscal 2010, although the deficit over the 10-year period would still total nearly $760 billion, or $3.327 trillion not counting Social Security surpluses.

As for discretionary spending, the resolution would set a 2004 level of $775.4 billion in budget authority, which is $9.6 billion higher than the 2003 enacted level, but about $11.2 billion below the president's $786.6 billion 2004 proposal as scored by the Congressional Budget Office.

Of the specific budget functions, defense is one of the few that would get an increase over 2003, moving from $392.1 billion to a bit more than $400 billion. International affairs also would receive about a $2.4 billion increase over last year, while education would see about a $2.3 billion increase. But other government services would see actual cuts below the 2003 levels, including natural resources and environment spending (about $2.2 billion) and health (about $1.4 billion).

Appropriators are not the only ones pained by the Nussle resolution. Breaking from budgets of recent years, it also would order under reconciliation nearly $470 billion in mandatory savings from various committees. The resolution does not specify where the committees should find such cuts, but it would force a reconciliation savings package to come together by July 18.

The Ways and Means Committee would be the biggest lifter, required to find about $262 billion in savings over 10 years. The Energy and Commerce panel would be forced to save about $110 billion, followed by Government Reform at $39.5 billion, Agriculture at $19.1 billion, Veterans' Affairs at $15.1 billion and Education and the Workforce at $9.7 billion.

In addition, the resolution orders a tax reconciliation package of about $725 billion, as the president requested, to be completed by April 11. The plan makes room for $1.403 trillion in tax cuts, which is below the $1.57 trillion tax cut plan proposed by the administration. GOP staff said the resolution fully accommodates the growth package and makes the 2001 tax cut permanent, but that lower-priority items would not be allowed.

Also, the resolution includes a reserve fund for a $400 billion Medicare prescription drug proposal, as well as reserve funds for a $9 billion Medicaid modernization plan and a $3.4 billion plan to reduce biomedical threats.