BUDGET SUPPLEMENT BUDGET OF THE UNITED STATES GOVERNMENT Fiscal Year 1997 S| PREX fF 77 a BUDGET SUPPLEMENT BUDGET OF THE UNITED STATES GOVERNMENT Fiscal Year 1997 THE BUDGET DOCUMENTS Budget of the United States Government, Fiscal Year 1997 A Citizen’s Guide to the Federal Budget, Budget of the contains a summary of the President’s budget proposals. This docu- United States Government, Fiscal Year 1997 is an Office of Man- ment was released on February 5, 1996 agement and Budget publication that provides general information about the budget and the budget process for the general public Budget of the United States Government, Fiscal Year 1997—Supplement contains the Budget Message of the President Budget System and Concepts, Fiscal Year 1997 contains an and information on the President’s 1997 budget proposals. explanation of the system and concepts used to formulate the Presi- dent’s budget proposals. 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Information is also provided on certain activities whose For more information on access to STAT-USA information outlays are not part of the budget totals. services, call 1-800-—STAT-—USA. GENERAL NOTES All years referred to are fiscal years, unless otherwise noted. Detail in this document may not add to the totals due to rounding. At the time of this writing, five of the 13 appropriations bills were not enacted, and the programs covered by them were operating under a continuing resolution. For these programs, references to 1996 spending levels in the text and tables incorporate the Administration’s proposed adjustments to the continuing resolution levels. U.S. GOVERNMENT PRINTING OFFICE WASHINGTON 1996 For sale by the U.S. Government Printing Office Superintendent of Documents, Mail Stop: SSOP, Washington, DC 20402-9328 ISBN 0-16-048513-4 TABLE OF CONTENTS The Budget Message of the President Creating an Age of Possibility E.., Ae Visions fore tiie Fb ir ooo ve ccececcceccakateriniecscitsesew 2. Three Years of Progress ............. Projecting American Leadership 3. Advancing United States Leadership in the World 4. Supporting the World’s Strongest Military Force Creating Opportunity and Encouraging Responsibility Restoring the American Community on 6. Strengthening Health Care Making Work Pay ~ Investing in Education and Training Protecting the Environment 10. Promoting Science and Technology 11. Enforcing the Law 12. Promoting Tax Fairness Making Government Work 13. Improving Government Performance 121 14. Building on Success 131 Summary Tables ND iid sais tcscncdenininsdadcvecnsbumnnnantisetuadbddinlic 139 Re MI FI csi ci icccecienssscennindessenreriaieenss 145 Summaries by Agency/Function 161 Other Summary Tables 169 List of Charts and Tables OMB Contributors to the 1997 Budget THE BUDGET MESSAGE OF THE PRESIDENT THE BUDGET FOR FISCAL YEAR 1997 THE FEDERAL GOVERNMENT DOLLAR FISCAL YEAR 1997 ESTIMATES WHERE IT COMES FROM... CORPORATE INCOME SOCIAL “ . XES INSURANCE RECEIPTS 33 % OTHER 4% EXCISE “+— TAXES 4% INDIVIDUAL INCOME TAXES 39 % WHERE IT GOES... DIRECT BENEFIT OTHER PAYSMeE NTS FOR: FEDERAL . NDaIV e JAiLS OPERATIONS i 5 % NATIONAL GRANTS TO DEFENSE STATES NET 16 % & LOCALITIES INTEREST 15 % b 15 % RECEIPTS, OUTLAYS, AND SURPLUS OR DEFICIT (In billions of dollars) 1995 Estimate Actual 1996 1997 1998 1999 2000 2001 Receipts 1,495 1,578 1,653 1,734 1,820 Outlays 1,635 1,676 1 TLY 1,761 1,812 Surplus/Deficit (—) —140 —98 —64 —28 8 THE BUDGET MESSAGE OF THE PRESIDENT To the Congress of the United States: than half in three years, bringing the deficit to its lowest level since 1979. The 1997 Budget, which I am transmitting to you with this message, builds on our While cutting overall discretionary spending, strong economic record by balancing the budg- we also shifted resources to investments in et in seven years while continuing to invest our future. With wages increasingly linked in the American people. to skills, we invested wisely in education and training to help Americans acquire the The budget cuts unnecessary and lower tools they need for the high-wage jobs of priority spending while protecting senior citi- tomorrow. We also invested heavily in science zens, working families, and children. It re- and technology, which has been a_ strong forms welfare to make work pay and provides engine of economic growth throughout the tax relief to middle-income Americans and Nation’s history. small business. For Americans struggling to raise their Three years ago, we inherited an economy children and make ends meet, we have that was suffering from short- and _ long- sought to make work pay. We _ expanded term problems—problems that were created the Earned Income Tax Credit, providing or exacerbated by the economic and budgetary tax relief for 15 million working families. policies of the previous 12 years. And we have given 37 States the freedom to test ways to move people from welfare In the short term, economic growth was to work while protecting children. slow and job creation was weak. The budget deficit, which had_ first exploded in_ size As the economy has become increasingly global, prosperity at home depends heavily in the early 1980s, was rising to unsustainable on opening foreign markets to American goods levels. and services. With this in mind, we secured Over the longer term, the growth in produc- legislation to implement the General Agree- tivity had slowed since the early 1970s and, ment on Tariffs and Trade and the North as a result, living standards had stagnated American Free Trade Agreement, and we or fallen for most Americans. At the same have completed over 80 other trade agree- time, the gap between rich and poor had ments. Under our leadership, U.S. exports widened. have grown to an all-time high. Over the last three years, we have put With these policies, we have helped pave in place budgetary and other economic policies the way for a future of sustained economic that have fundamentally changed the direction growth, low interest rates, stable prices, and of the economy—for the better. We have more opportunity for Americans of all incomes. produced stronger growth, lower interest rates, 3ut our work is not done. stable prices, millions of new jobs, record Looking ahead, as I said recently in my exports, lower personal and corporate debt State of the Union address, we must answer burdens, and higher living standards. three fundamental questions: First, how do we make the American dream of opportunity Working with the last Congress in 1993, for all a reality for all Americans who we enacted an economic program that has are willing to work for it? Second, how worked better than even we projected in do we preserve our old and enduring values spurring growth and reducing the deficit. We have cut the deficit nearly in half, as we move into the future? And, third, how do we meet these challenges together, from $290 billion in 1992 to $164 billion as one America? in 1995. As a share of the Gross Domestic Product, we have cut the deficit by more This budget addresses those questions. THE BUDGET FOR FISCAL YEAR 1997 Creating an Age of Possibility tional conflicts; the proliferation of weapons of mass destruction; international terrorism I am committed to finishing the job that and crime; narcotics trading; and environ- we began in 1993 and finally bringing the mental degradation. budget into balance. In our negotiations with congressional leaders, we have made great On the diplomatic front, our successes have progress toward reaching an agreement. We been numerous and heartening, and they have simply come too far to let this oppor- have made the world a safer and more tunity slip away. stable place. Through our leadership, we are helping to bring peace to Bosnia and A balanced budget would reduce interest the Middle East, and we have spurred progress rates for all Americans, including the young in Northern Ireland. We also encouraged families across the land who are struggling the movement toward democracy and free to buy their first homes. It also would markets in Russia and Central Europe, and free up funds in the private markets with we led a successful international effort to which businesses could invest in factories defuse the nuclear threat from North Korea. and equipment, or in training their workers. On the military front, we have deployed But we have to balance the budget the our forces where we could be effective and right way—by cutting unnecessary and lower where it was in our interest to promote priority spending; investing in the future; stability by ending bloodshed (such as in protecting senior citizens, working families, Bosnia) and suffering (such as in Rwanda). children, and other vulnerable Americans; We also have used the threat of force to and providing tax relief for middle-income ease tensions, such as to unseat an unwelcome Americans and small businesses. dictatorship in Haiti and to stare down My budget does that. It strengthens Medi- Iraq when it threatened again to move against care and Medicaid, on which millions of Kuwait. senior citizens, people with disabilities, and This budget provides the funds to sustain low-income Americans rely. It reforms welfare. and modernize the world’s strongest, best- It cuts other entitlements. And it cuts deeply trained, best-equipped, and most ready mili- into discretionary spending. tary force. Through it, we continue to support But while cutting overall discretionary service members and their families with qual- spending, my budget invests in education ity-of-life improvements in the short term, and training, the environment, science and while planning to acquire the new technologies technology, law enforcement, and other prior- that will become available at the turn of ities to help build a brighter future for this decade. all Americans. We should spend more on Creating Opportunity and Encouraging what we need, less on what we don’t. Responsibility Projecting American Leadership The Federal Government cannot—by itself— solve most of the problems and address Across the globe, we live in a time of most of the challenges that we face as great opportunity and great challenge. With a people. In some cases, it must play a the end of the Cold War, the world looks lead role—whether to ensure the guarantee to the United States for leadership. Providing of health care for vulnerable Americans, ex- it is clearly in our best interest. We must pand access to education and training, invest not turn away. in science and technology, protect the environ- My budget provides the necessary resources ment, or make the tax code fairer. In other to advance America’s strategic interests, carry cases, it must play more of a partnership out our foreign policy, open markets abroad, role—working with States, localities, non- and support U.S. exports. It also provides profit groups, churches and synagogues, fami- the resources to confront the emerging global lies, and individuals to strengthen commu- threats that have replaced the Cold War nities, make work pay, protect public safety, as major concerns—regional, ethnic, and na- and improve the quality of education.