Friday, 25 Nov 94 Washington, DC

1. NEWTONIAN CONGRESS ISN'T LIKELY TO WAIT FOR A CLINTON BUDGET!
Republican leaders in the House, having promised action on the 10 major legislative initiatives in "The Contract" in just 100 days, are not expected to wait around for the President to complete his budget request in late January. By that time, the House Budget Committee hopes to have its own budget resolution. The starting point will be the FY 95 Republican budget alternative drafted by John Kasich (R-OH), who will chair the Budget Committee. Among the provisions in the FY 95 alternative: limit the growth of NSF to one percent LESS than inflation; freeze the overhead rate on federally sponsored university research to 90% of current rate.

2. THE CONTRACT: ARE THEY REALLY GOING TO BRING BACK "STAR WARS"?
The first item on the list, the "Fiscal Responsibility Act," is free. It calls for a balanced budget amendment and a line-item veto. To balance the cost of the other nine bills, offsetting cost cuts must be found. The Republicans estimate the offset at $178B; the Democrats say it's more like $743B, raising fears of a return to Stockman economics. The disagreement is due mostly to bill number six, the "National Security Restoration Act," which calls for "increased defense spending to maintain our credibility around the world." Credibility, it seems, includes "deployment at the earliest possible date of a cost-effective anti-ballistic missile defense system." (Perhaps to guard against Scud attacks from Canada.) The emphasis must be on "cost-effective"; there is no breakdown, but the National Security Restoration Act is listed as a "NO COST" initiative in the "Contract" cost estimate. Sen. Phil Gramm (R-TX) explained that "if we stop raiding the defense budget for non-defense items, we can fund the military we need with roughly the same amount of money we have." He has in mind the Technology Reinvestment Program and environmental cleanup.

3. THERE IS ALSO TALK OF CONSOLIDATING DEPARTMENTS TO SAVE MONEY!
And it's not just the Republicans doing the talking. The Clinton Administration is thinking of a few bold moves of its own to try and regain the initiative in "reinventing government" (WN 10 Sep 93). The Department of Energy seems to top everyone's hit list.

4. 100 DAYS TO TRANSFORM SOCIETY -- JUST ONE TO REFORM THE HOUSE!
"The Contract" promises that congressional reforms will be passed on the first day of the 104th Congress. The first of the eight reforms would require laws that apply to the rest of the country to apply equally to Congress. Congress has justified exemptions on constitutional grounds of separation of powers, contending its members would otherwise be subject to pressure from the judicial and executive branches. The reforms would also limit terms of committee chairs, ban proxy votes on committees and require all committee meetings to be open. The Republicans also promise to cut the number of committees and reduce the staffs by one-third.



Bob Park can be reached via email at whatsnew@bobpark.org
THE UNIVERSITY OF MARYLAND
Opinions are the author's and are not necessarily shared by the University, but they should be.