




  Insert chart: feddol



             INTRODUCTION: AN OVERVIEW OF THE 1995 BUDGET

  The 1995 budget proposes outlays of $1,518.3 billion, receipts of
$1,342.2 billion, and a deficit of $176.1 billion (Table I-1).  If
this outcome is realized, and the deficit for  1994 (already four
months old) is as expected, it will mark the third consecutive year
the deficit will have decreased (1992, $290.4 billion; 1993, $254.7
billion; 1994, an estimated $234.8 billion)--the first such sequence
since the Administration of President Harry S Truman.  If the
President's health care reform bill is enacted, the 1995 deficit will
be even lower: $165.1 billion.  (Furthermore, these estimates were
made on the basis of economic assumptions as of December 1993.  If
subsequent developments could have been incorporated into the economic
assumptions, the projected deficits over the forecast period--with or
without health reform--would have been about $5 billion to $6 billion
per year lower.)


                     Table I-1. OUTLAYS, RECEIPTS AND DEFICIT SUMMARY


                               (Dollar amounts in billions)

------------------------------------------------------------------------------------------
                                1993     1994     1995     1996     1997     1998     1999
------------------------------------------------------------------------------------------
Outlays:
 Discretionary.............    542.5    550.1    542.4    543.9    544.3    548.1    554.4
 Mandatory:
  Deposit insurance........    -28.0     -3.3    -11.1    -11.3     -6.1     -4.9     -3.3
  Other mandatory..........    694.9    733.7    774.0    826.1    887.5    949.9  1,023.8
                             -------------------------------------------------------------
   Subtotal, mandatory.....    666.9    730.4    762.9    814.9    881.4    945.0  1,020.5
 Net interest..............    198.8    203.4    213.1    224.8    234.6    245.0    255.2
                             -------------------------------------------------------------
Total outlays..............  1,408.2  1,484.0  1,518.3  1,583.5  1,660.3  1,738.2  1,830.2
Receipts...................  1,153.5  1,249.2  1,342.2  1,410.4  1,479.5  1,550.8  1,629.0
                             -------------------------------------------------------------
Deficit....................    254.7    234.8    176.1    173.1    180.8    187.4    201.2


Totals as a percent of GDP:
 Outlays...................    22.4%    22.3%    21.6%    21.3%    21.2%    21.0%    20.9%
 Receipts..................    18.3%    18.8%    19.1%    19.0%    18.9%    18.7%    18.6%
                             -------------------------------------------------------------
  Deficit..................     4.0%     3.5%     2.5%     2.3%     2.3%     2.3%     2.3%


Memorandum--Totals with health reform:
 Deficit...................    254.7    234.8    165.1    169.6    186.4    190.5    181.1
 Deficit as a percent of
  GDP......................     4.0%     3.5%     2.4%     2.3%     2.4%     2.3%     2.1%
------------------------------------------------------------------------------------------

  The deficit is cut more than 40 percent from the level projected one
year ago. As a percentage of GDP, it is projected to be cut in
half--from the 5.2 percent that was projected one year ago for 1993
under the policies of the previous Administration, to 2.5 percent in
1995.  It is projected to fall to 2.3 percent and remain there for
1996-99, unless the President's health care reform is enacted.  With
health reform, the deficit is projected to fall to 2.1 percent of GDP
in 1999.  As the President made clear last year, the difference
between a deficit that is falling as a percentage of GDP and one that
is merely stable is fundamental health reform.

  This budget achieves sustained deficit reduction by breaking the bad
fiscal habits of the 1980s.

 o After years of budgets based on  borrow and spend  economics, this
   budget maintains fiscal discipline--the discipline established in
   the President's economic program last year.  The tight
   discretionary spending caps negotiated by the Administration and
   the Congress--which impose a five-year freeze at about the fiscal
   year 1993 level, with no allowance for inflation--are obeyed.
   There are no deficit-increasing changes in entitlement spending or
   revenues.  This budget discipline has already paid enormous
   dividends:  interest rates have declined; business investment in
   equipment, and household investment in new homes, automobiles, and
   other consumer durables have increased; and employment growth has
   returned to the United States.  The economy produced almost twice
   as many jobs in the last year than under the entire preceding
   Administration.

 o Where past budgets have practiced  trickle-down economics,  in the
   vain hope that tax relief for the most well-off would cause
   economic growth for the rest, this budget maintains tax fairness.
   The economic record of the past year demonstrates that growth and
   fairness need not conflict.  The Administration's increases in the
   Earned Income Tax Credit (EITC) to reward work--a first step toward
   welfare reform--provide sorely needed tax relief for low-income
   working families with children.  At the same time, the necessary
   additional taxes to reduce the deficit are being borne by those
   most able to pay: households with incomes over $200,000 will pay 80
   percent of the tax increases enacted in the President's budget
   package last year. Only the best-off 1.2 percent of households face
   higher income tax rates.

 o Where past budgets lacked a long-term view, this budget invests for
   the future--in the physical infrastructure, scientific and
   technological knowledge, and worker skills that the private sector
   needs to be an engine of job creation and productivity growth.  The
   budget also encourages private business investment--through
   continued deficit reduction and the resulting low interest rates,
   and through the investment incentives (especially for small
   business) enacted in the President's economic program last year.
   These incentives help business to play its role as the ultimate
   source of long-term prosperity.

 o In contrast to past budgets, which lacked credibility and were
   routinely characterized as  dead on arrival,  this budget dispenses
   with smoke and mirrors.  Its economic assumptions are prudent, and
   its budget projections are solid.  It will be a sound basis for the
   Congressional budget process and the public debate as well.

  This introduction identifies and describes the major components of
the 1995 budget.  It identifies the ways in which budget discipline is
attained, and the initiatives that are proposed.  The remainder of the
budget describes in more detail the economic backdrop for the
President's economic plan, the success that the plan has met thus far,
and the President's agenda for the future.

                         ECONOMIC ASSUMPTIONS

  A year ago, the recovery from the 1990-91 recession was still very
fragile; now it is more secure.  This transformation was the result of
corrective actions taken by the private and public sectors.
Households and businesses improved their balance sheets by reducing
debt.  But most importantly, the Federal Government seriously
addressed its own deficit problem.  Congress enacted the
Administration's deficit reduction plan and refocused spending
priorities on productivity-enhancing investment.

  The return to fiscal responsibility contributed to a fall of one
percentage point in long-term interest rates between the election in
November 1992 and the end of 1993.  Falling rates stimulated key
interest-sensitive sectors, pushed the stock market to record highs
and reduced the debt servicing costs of governments, households and
businesses.  By the second half of 1993, households and businesses
were willing and able to undertake the investment spending that
produces self-sustaining growth. Business and consumer confidence
improved as sales picked up, orders increased, payrolls expanded and
incomes rose.  And even though the economy accelerated during 1993 and
the unemployment rate declined, inflation remained well under control.
Thus, as 1994 begins, the essential elements for sustained,
noninflationary growth are in place.

  The Administration's economic assumptions through 1999 project a
continuation of the trends evident in 1993: real economic growth
sufficiently strong to lower unemployment gradually without reigniting
inflation (Table I-2).


                            Table I-2. ECONOMIC ASSUMPTIONS\1\


                                     (Calendar years)

------------------------------------------------------------------------------------------
                                                             Projections
                              1992  ------------------------------------------------------
                            Actual    1993    1994    1995    1996    1997    1998    1999
------------------------------------------------------------------------------------------
Gross Domestic Product (GDP):
 Percent change, fourth quarter over fourth quarter:
  Current dollars.........     6.7     5.0     5.8     5.6     5.7     5.7     5.7     5.6
  Constant (1987) dollars.     3.9     2.3     3.0     2.7     2.7     2.6     2.6     2.5
  Implicit price deflator
   (1987=100).............     2.8     2.6     2.7     2.8     2.9     3.0     3.0     3.0

Consumer Price Index (all urban):\2\
  Percent change, fourth
   quarter over fourth
   quarter................     3.1     2.8     3.0     3.2     3.3     3.4     3.4     3.4

Unemployment rate, civilian, percent:\3\
  Fourth quarter level....     7.3     6.7     6.4     6.0     5.8     5.6     5.5     5.5

Interest rates, percent:
  91-day Treasury bills\4\     3.5     3.0     3.4     3.8     4.1     4.4     4.4     4.4
  10-year Treasury notes..     7.0     5.9     5.8     5.8     5.8     5.8     5.8     5.8

------------------------------------------------------------------------------------------

  \1\Based on information available as of December 1993.

  \2\CPI for all urban consumers.

  \3\Pre-1994 basis.  A February 1994 change in survey methodology is expected to add
about 0.5 percentage points to the measured unemployment rate.

  \4\Average rate (bank discount basis) on new issues within period.
------------------------------------------------------------------------------------------

 o Between the fourth quarter of 1993 and the fourth quarter of 1994,
   real GDP is projected to increase 3.0 percent.  From 1995 through
   1999, the growth rate slows progressively to 2.5 percent.

 o The unemployment rate is projected to decline 0.3 percentage point
   in 1994.  (The current employment outlook is even more favorable
   than when these economic assumptions were finalized in December of
   1993.)  Further decreases of about this magnitude are projected
   each year through 1998.

 o Inflation, as measured by the Consumer Price Index, is projected to
   be 3.0 percent during 1994, compared with 2.8 percent during 1993.
   As the economy grows further, the inflation rate is assumed to edge
   up slightly, leveling off at 3.4 percent per year during 1997-1999.

 o Short-term interest rates are projected to rise moderately from
   their exceptionally low current levels as the economy expands,
   while long-term rates are projected to remain unchanged at their
   levels at the end of 1993--in keeping with sustained low inflation
   and continued budget discipline.

  The economic assumptions presume enactment of the Administration's
budget proposals.

                               OUTLAYS

  1995 outlays are projected at $1,518.3 billion without the
Administration's health reform proposal, an increase of $34.3 billion,
or 2.3 percent, from 1994 estimates.  Later years show continued slow
outlay growth.  Between 1993 and 1999, total outlays are projected to
grow by an average of only 4.5 percent per year, or about one percent
in real terms.  In contrast, between 1981 and 1993, total outlays grew
by an average of 6.3 percent per year.  In 1999, projected outlays
equal 20.9 percent of the gross domestic product (GDP); in 1993,
outlays equaled 22.4 percent of GDP.  The Administration's health
reform would add a projected $0.6 billion to 1995 outlays.

Discretionary Spending

  Total discretionary outlays decline in 1995, from $550.1 billion in
1994 to $542.4 billion.  Defense discretionary outlays decline from an
estimated $280.6 billion in 1994 to $271.1 billion in 1995.
Non-defense discretionary outlays decrease by almost three percent in
real terms--increasing slightly in nominal terms, from an estimated
$269.5 billion to $271.3 billion, a rise of $1.8 billion, or 0.7
percent.

  The reduction in discretionary spending is not a mindless
across-the-board cut.  Every department and agency was examined to
find potential savings that would have the least possible adverse
effect on the economy and on delivery of public services.  In
addition, the President maintained his commitment to investment in
physical capital, ideas, and people to strengthen the economy,
increase living standards, and create jobs.

  As a result, although total discretionary spending declines from
1994 to 1995, the change varies from department to department.  Seven
of the 14 major departments face a budget cut in nominal terms (ten in
real terms); and the increases in the others, which implement most of
the President's investment, still leave total outlays on the decline
in 1995 (Table I-3).

  Spending cuts. Not surprisingly, given that total discretionary
spending is cut, the 1995 budget reduces budget authority in dollar
terms--without any increase for inflation--in at least 300 programs,
including at least 115 terminations (some listed in Table I-4), and in
228 of 636 programmatic budget accounts. Another 51 of the 636 budget
accounts are frozen at the 1994 level, with no increase for inflation;
and another 100 receive dollar increases that are less than would be
needed to keep up with inflation.  Thus, 379 of 636 budget accounts
are cut in real terms.

  The reductions are spread throughout the Government. Low-priority
and less-efficient programs are cut or eliminated, to reduce the
deficit and to finance investments that strengthen the economy,
safeguard the environment, and fight crime.  However, even some
programs in the President's general investment areas are cut--to free
funds for more-efficient programs that pursue the same high-priority
objectives better.  These include 33 separate program terminations in
the Department of Education; some low-income housing reductions in the
Department of Housing and Urban Development; the youth training grants
under the Job Training Partnership Act in the Department of Labor;
mass transit operating subsidies; and three program terminations and
numerous reductions in the National Aeronautics and Space
Administration.

  Budget savings are also obtained through the President's Executive
Order requiring Federal personnel reductions of 100,000 by 1995, and
the National Performance Review recommendation for an additional
152,000 reduction by 1999; and the President's Executive Order
requiring administrative expense reductions of 3 percent in 1994,
increasing to 14 percent in 1997.


                        Table I-3. DISCRETIONARY SPENDING BY AGENCY


                                 (In billions of dollars)

------------------------------------------------------------------------------------------
                                                              Projections
      Agency                          1993  ----------------------------------------------
                                    Actual    1994    1995    1996    1997    1998    1999
------------------------------------------------------------------------------------------
Cabinet Agencies:
 Agriculture..............      BA    15.6    16.4    15.4    15.5    15.7    15.7    15.8
                                OL    14.6    16.2    15.7    15.5    15.6    15.7    15.9

 Commerce.................      BA     3.2     3.6     4.2     4.5     4.7     5.0     6.0
                                OL     2.9     3.4     3.6     4.3     4.7     4.9     5.5

 Defense..................      BA   262.6   250.0   252.9   244.2   241.0   247.5   253.8
                                OL   280.1   268.4   259.9   249.9   245.4   245.5   246.3

 Education................      BA    23.7    24.4    26.1    26.3    26.5    23.7    26.9
                                OL    23.0    24.5    24.0    25.8    26.3    26.5    26.7

 Energy...................      BA    19.3    18.6    18.0    18.3    18.3    18.6    19.0
                                OL    18.0    19.0    17.9    18.6    18.4    18.6    18.9

 Health and Human Services      BA    31.6    34.3    35.4    36.2    38.0    39.3    41.2
                                OL    32.0    36.6    36.8    38.8    40.4    42.3    44.0

 Housing and Urban
  Development.............      BA    25.5    25.1    26.1    33.5    35.2    37.5    38.8
                                OL    25.0    27.5    29.5    30.5    31.2    31.2    31.9

 Interior.................      BA     7.1     7.5     7.2     7.3     7.4     7.4     7.5
                                OL     7.1     7.3     7.4     7.4     7.5     7.5     7.5

 Justice..................      BA     9.3     9.4    12.1    14.3    15.2    16.0    17.3
                                OL     9.2     9.7    10.6    12.9    14.3    15.5    17.1

 Labor....................      BA     9.9    10.6    11.7    12.0    12.5    12.5    12.6
                                OL     9.5    10.0    10.4    11.3    11.8    12.3    12.4

 State....................      BA     4.9     5.3     4.9     4.7     4.8     4.8     5.0
                                OL     4.9     5.4     5.0     4.8     4.9     4.9     5.0

 Transportation...........      BA    13.5    11.2    13.5    13.2    12.4    13.2    13.2
                                OL    34.1    36.2    36.8    38.0    38.2    38.4    38.6

 Treasury.................      BA    10.1    10.3    10.4    10.8    10.6    10.4    10.1
                                OL     9.9    10.4    10.3    10.7    10.6    10.3    10.2

 Veterans Affairs.........      BA    16.7    17.6    17.8    18.3    18.9    18.9    18.9
                                OL    16.3    17.4    18.0    18.4    18.8    18.9    18.9

Major Agencies:
 Environmental Protection
  Agency..................      BA     6.9     6.7     7.2     7.4     7.7     7.9     8.2
                                OL     6.1     6.8     6.9     7.1     7.4     7.6     7.8

 National Aeronautics and
  Space Administration....      BA    14.3    14.5    14.3    14.4    14.5    14.6    14.6
                                OL    14.3    14.2    14.4    14.4    14.4    14.5    14.6

 National Science
  Foundation..............      BA     2.7     3.0     3.2     3.2     3.3     3.4     3.5
                                OL     2.4     2.8     2.9     3.0     3.2     3.3     3.4

 All Other Agencies.......      BA    27.9    25.5    26.5    27.9    28.0    23.7    17.6
                                OL    28.2    29.4    26.9    29.1    29.1    20.9    17.9

Judicial Branch...........      BA     2.4     2.6     2.9     2.9     2.9     2.9     2.9
                                OL     2.4     2.6     2.8     2.8     2.8     2.8     2.8

Legislative Branch........      BA     2.3     2.3     2.5     2.7     2.8     2.9     3.0
                                OL     2.3     2.4     2.5     2.7     2.8     2.9     3.0

Total, Discretionary......      BA   509.6   498.8   512.2   517.7   520.3   526.0   535.8
                                OL   542.5   550.1   542.4   546.1   547.8   544.4   548.3
------------------------------------------------------------------------------------------


                             Table I-4. ILLUSTRATIVE LISTING OF PROGRAMMATIC TERMINATIONS AND REDUCTIONS


                                                      (In millions of dollars)

------------------------------------------------------------------------------------------------------------------------------------
                                                                                                             Change:         Number
                                       1993 Enacted          1994 Estimate         1995 Estimate          1994 to 1995       Change
                                   --------------------  --------------------  --------------------  --------------------  ---------
                                       BA          O         BA          O         BA          O         BA          O
------------------------------------------------------------------------------------------------------------------------------------


    PROGRAMMATIC TERMINATIONS

Non-Defense Discretionary
 Programs........................    2,947.8    3,024.4    1,777.0    1,962.5       12.5    1,055.8   -1,764.5     -906.7        106
Defense Discretionary Programs...    2,099.0      371.8    1,736.1      973.8      259.1    1,205.6   -1,477.0      231.8          9
                                   -------------------------------------------------------------------------------------------------
 Total Programmatic Terminations.    5,046.8    3,396.2    3,513.1    2,936.3      271.6    2,261.4   -3,241.5     -674.9        115


     PROGRAMMATIC REDUCTIONS

Non-Defense Discretionary
 Programs........................   38,343.1   30,977.2   39,081.7   35,978.5   30,510.9   33,330.1   -8,570.8   -2,648.4         71
Defense Discretionary Programs...  122,386.4  108,346.8  118,404.8  112,664.1  107,987.0  110,490.6  -10,417.8   -2,173.5         35
                                   -------------------------------------------------------------------------------------------------
 Total Programmatic Reductions...  160,729.5  139,324.0  157,486.5  148,642.6  138,497.9  143,820.7  -18,988.6   -4,821.9        106
Total............................  165,776.3  142,720.1  160,999.7  151,578.9  138,769.5  146,082.1  -22,230.2   -5,496.8        221


    PROGRAMMATIC TERMINATIONS

Department of Agriculture:
 Section 32--oilseed export
  subsidies......................       50.0       50.0       50.0       50.0  .........  .........      -50.0      -50.0
 Cooperative State Research
  Service, Earmarked Buildings
  and Facilities.................       52.0       45.0       23.0       51.0  .........       54.0      -23.0        3.0
 Rural Development Administration
  (RDA)/Emergency Community Water
  Assistance Grants..............       30.0        7.0       10.0       11.0  .........       18.0      -10.0        7.0
 Farmers Home Administration
  (FmHA): State Mediation Grants.        3.0        3.0        3.0        3.0  .........        2.0       -3.0       -1.0
                                   -------------------------------------------------------------------------------------------------
  Agriculture Total..............      135.0      105.0       86.0      115.0  .........       74.0      -86.0      -41.0          4
Department of Commerce:
 National Oceanic and Atmospheric Administration (NOAA):
  Operations, Research and Facilities:
   Cooperative Geodetic Survey...        0.6        0.6        0.6        0.6  .........        0.2       -0.6       -0.3
   Land Information System.......        1.7        1.7        1.2        1.4  .........        0.6       -1.2       -0.8
   Marine Observation Buoys......        0.1        0.1        0.1        0.1  .........        0.1       -0.1       -0.1
   Chesapeake Bay Observation
    Buoys........................        0.4        0.2        0.4        0.3  .........        0.1       -0.4       -0.2
   Wetlands Management
    Demonstration................        1.8        1.0        0.5        0.8  .........        0.3       -0.5       -0.5
   Algal Bloom Crisis............        0.5        0.3        0.4        0.4  .........        0.1       -0.4       -0.2
   Stuttgart Aquaculture.........        0.6        0.6        0.6        0.6  .........        0.2       -0.6       -0.3
   Stock Management Plan.........        0.5        0.6        0.5        0.5  .........        0.2       -0.5       -0.3
   Atlantic Bluefin Tuna Research        0.3        0.3        0.3        0.3  .........        0.1       -0.3       -0.2
   U.S./Canada Lobster Study.....  .........  .........        0.3        0.2  .........        0.1       -0.3       -0.1
   Center for Shark Research.....        0.1        0.1        0.1        0.1  .........        0.1       -0.1       -0.1
   Columbia River Hatcheries.....       10.3       11.7       10.3       10.9  .........        4.5      -10.3       -6.4
   Columbia River Smolt..........        0.1        0.1        0.1        0.1  .........  .........       -0.1       -0.1
   Beluga Whale Committee........        0.2        0.2        0.2        0.2  .........        0.1       -0.2       -0.1
   Fishery Observer Training.....        0.1        0.1        0.2        0.1  .........        0.1       -0.2       -0.1
   Export Strategies/Mahi-Mahi...        0.8        0.7        0.8        0.7  .........        0.3       -0.8       -0.4
   National Acid Precipitation
    Assessment...................        1.4        1.4        1.4        1.4  .........        0.6       -1.4       -0.8
   Wind Profiler Demonstration
    Network......................        4.4        4.4        4.4        4.4  .........        1.9       -4.4       -2.5
   Fed/State Weather Mod. Grants.        2.6        2.6        3.0        2.8  .........        1.2       -3.0       -1.6
   Southeastern Storm Research...        0.4        0.3        0.4        0.3  .........        0.2       -0.4       -0.2
   VENTS.........................        2.5        2.5        2.5        2.5  .........        1.1       -2.5       -1.4
   SE US/Caribbean FOCI Program..        1.0        1.0        0.5        0.7  .........        0.3       -0.5       -0.4
   GLERL Zebra Mussel............        0.9        0.9        0.9        0.9  .........        0.4       -0.9       -0.5
   Lake Champlain Study..........        0.2        0.2        0.3        0.2  .........        0.1       -0.3       -0.1
   Pacific Island Technical
    Assistance...................        0.2        0.2        0.2        0.2  .........        0.1       -0.2       -0.1
   Sea Grant--Zebra Mussel.......        2.8        2.6        2.8        2.7  .........        1.2       -2.8       -1.5
   National Coastal R&D Institute        1.3        1.2        1.1        1.1  .........        0.5       -1.1       -0.7
   National Undersea Research
    Program......................       16.0       15.6       18.1       17.1  .........        7.3      -18.1       -9.8
   Samoa Weather Office..........        0.2        0.2        0.2        0.2  .........        0.1       -0.2       -0.1
   Regional Climate Centers......        3.0        3.0        3.0        3.0  .........        1.3       -3.0       -1.7
  Construction:
   Charleston Fisheries Lab
    Repairs......................        0.7        0.5        0.7        0.7  .........        0.6       -0.7       -0.1
   Boston Biotechnology
    Innovation Center............        1.0        0.2        1.0        0.8  .........        0.8       -1.0        0.1
   Mystic Maritime Education and
    Research Center..............        1.0        0.2        1.0        0.8  .........        0.8       -1.0        0.1
   Alaska Fisheries Center.......        0.1        0.6        0.5        0.4  .........        0.3       -0.5       -0.0
   Beaufort Laboratory...........        0.2        0.2        0.2        0.2  .........        0.1       -0.2       -0.0
   Columbia River Facilities.....        7.9        6.1        8.2        7.9  .........        6.8       -8.2       -1.1
   Multispecies Aquaculture
    Center.......................        0.4        0.1        1.0        0.4  .........        0.7       -1.0        0.3
   Oxford Fisheries Lab..........  .........  .........        0.8        0.1  .........        0.5       -0.8        0.3
   Lafayette Fisheries Lab.......  .........        0.8        2.0        0.6  .........        1.2       -2.0        0.6
   National Estuarine Research
    Reserves.....................  .........  .........        5.0        0.8  .........        3.1       -5.0        2.3
   Monitor Marine Sanctuary
    Museum.......................  .........  .........        0.8        0.1  .........        0.5       -0.8        0.4
   Indiana State University......  .........  .........        1.4        0.2  .........        0.9       -1.4        0.6
   Ruth Patrick Science Center...  .........  .........        1.0        0.2  .........        0.6       -1.0        0.5
   Newport Marine Science Center.        1.7        0.3        1.8        1.4  .........        1.5       -1.8        0.1
 Fishing Vessel Obligation
  Guarantees.....................        0.5        0.3        0.5        0.9  .........  .........       -0.5       -0.9
 Aircraft Procurement and
  Modernization..................  .........  .........       43.0        6.0  .........       13.8      -43.0        7.7
                                   -------------------------------------------------------------------------------------------------
  Commerce Total.................       68.2       63.5      124.0       76.3  .........       55.5     -124.0      -20.8         46
Department of Defense:
 Begin closure of Uniformed
  Services University of Health
  Sciences.......................       84.0       69.0       86.0       82.0       70.0       73.0      -16.0       -9.0
 Navy CH-53 Heavy Cargo
  Helicopter Procurement.........      494.6       65.8      291.1      194.1       41.1      254.1     -250.0       60.0
 Navy SH-60B Ship-Based
  Anti-Submarine Warfare
  Helicopter.....................      234.5       31.2      188.0       98.5  .........      133.7     -188.0       35.2
 Navy SH-60F Carrier-Based
  Anti-Submarine Warfare
  Helicopter.....................      172.2       22.9       42.0       59.9        7.6       68.8      -34.4        8.9
 Navy HH-60H Combat Search and
  Rescue Helicopter..............      116.5       15.5      256.3       70.1       39.9      123.1     -216.4       53.0
 Air Force F-16 Fighter Aircraft.      676.5       29.1      400.0      175.7      100.5      349.4     -299.5      173.7
 LANDSAT 7 Satellite Acquisition.       84.1       18.6      204.0       75.9  .........       88.3     -204.0       12.4
 Follow On Early Warning System
  Development....................      236.6      119.7      214.8      190.3  .........       96.6     -214.8      -93.7
 Spacelifter Launch System
  Development....................  .........  .........       53.9       27.3  .........       18.6      -53.9       -8.7
                                   -------------------------------------------------------------------------------------------------
  Defense Total..................    2,099.0      371.8    1,736.1      973.8      259.1    1,205.6   -1,477.0      231.8          9
Department of Education:
 Elementary and Secondary Education:
  Impact Aid 3(b): payments for
   military dependents...........      123.6      100.1      123.1      145.6  .........       31.8     -123.1     -113.8
  Impact Aid Section 2: payments
   for Federal property..........       16.3       13.2       16.3       19.2  .........        4.2      -16.3      -15.0
  Education for Native Hawaiians.        6.4        6.1        8.2        7.7  .........        7.1       -8.2       -0.6
  Foreign Languages Assistance
   (school improvement)..........       10.9       15.1       10.9       11.5  .........        9.6      -10.9       -1.9
  Territorial Teacher Training...        1.7        1.8        1.7        1.7  .........        1.4       -1.7       -0.2
  Ellender Fellowships (Close-up
   Foundation)...................        4.2        6.0        4.2        4.5  .........        3.7       -4.2       -0.8
  Fund for the Improvement and
   Reform of schools.............        9.1        9.9        9.1        9.6  .........        7.9       -9.1       -1.7
  Civic Education................        4.3        4.2        4.5        4.2  .........        3.9       -4.5       -0.3
  Follow-through.................        8.5        8.0        8.5        9.9  .........        7.7       -8.5       -2.2
  Dropout Prevention
   Demonstrations................       37.5       35.5       37.7       43.8  .........       34.4      -37.7       -9.4
  Law-related Education
   (Educational Improvement).....        6.0        5.6        6.0        6.9  .........        5.4       -6.0       -1.5
  Immigrant Education formula
   grant.........................       29.5       16.3       39.0       34.5  .........       33.7      -39.0       -0.8
  General Assistance to the
   Virgin Islands................        2.5        2.3        1.2        2.7  .........        1.4       -1.2       -1.3
  National writing project (U.C.
   Berkeley grant)...............        3.2        2.8        3.2        3.1  .........        2.8       -3.2       -0.2
  National Board for Professional
   Teaching Standards............        4.8        5.1        4.8        8.1  .........        3.2       -4.8       -4.9
 Library Programs:
  Library Demonstration..........        2.8        3.5        2.8        3.1  .........        1.7       -2.8       -1.4
  Library Literacy...............        8.1       10.3        8.1        8.9  .........        4.8       -8.1       -4.1
  Public Library Construction....       16.6       16.9       17.8       23.4  .........       24.9      -17.8        1.5
  College Library Technology.....        3.9        4.9        3.9        4.3  .........        2.3       -3.9       -2.0
  Research Libraries.............        5.8        7.4        5.8        6.4  .........        3.5       -5.8       -3.0
  Library Education and Training.        5.0        6.3        5.0        5.5  .........        2.9       -5.0       -2.5
 Higher Education/Student Financial Aid:
  Assistance to Guam.............  .........  .........  .........  .........  .........  .........  .........  .........
  State Student Incentive grants
   (student aid).................       72.0       89.0       72.0       72.0  .........       36.0      -72.0      -36.0
  Cooperative Education..........       14.0       16.0       14.0       14.0  .........       12.0      -14.0       -2.0
  Eisenhower Leadership program..        3.0  .........        4.0        3.0  .........        3.0       -4.0  .........
  Law school clinical experience.       10.0       12.0       15.0       11.0  .........       12.0      -15.0        1.0
  Federal Perkins Loans Capital
   contributions.................      166.0      158.0      158.0      183.0  .........      142.0     -158.0      -41.0
  National Early Intervention
   Scholarships..................  .........  .........        2.0  .........  .........        1.0       -2.0        1.0
  Teacher corps..................  .........  .........        2.0  .........  .........        1.0       -2.0        1.0
  Gallaudet University
   construction..................        2.0        3.0        1.0        1.0  .........        1.0       -1.0  .........
 Vocational Education:
  Bilingual Vocational Training..        3.0        2.0        3.0        3.0  .........        2.0       -3.0       -1.0
  Vocational Education Community
   based organizations...........       12.0        9.0       12.0       10.0  .........        9.0      -12.0       -1.0
  Consumer and Homemaking
   Education.....................       35.0       26.0       35.0       30.0  .........       28.0      -35.0       -2.0
                                   -------------------------------------------------------------------------------------------------
  Education Total................      627.7      596.2      639.8      691.8  .........      445.5     -639.8     -246.3         34
Department of Energy:
 Oil shale, fossil energy
  research and development.......        6.0        6.0  .........        3.0  .........        1.0  .........       -2.0
 Magnetohydrodynamics, fossil
  energy research and development       30.0       36.0        5.0       22.0        5.0       14.0  .........       -8.0
 Atomic vapor laser isotope
  separation program, uranium
  supply and enrichment..........    1,243.0    1,400.0      177.0      246.0  .........  .........     -177.0     -246.0
                                   -------------------------------------------------------------------------------------------------
  Energy Total...................    1,279.0    1,442.0      182.0      271.0        5.0       15.0     -177.0     -256.0          3
Environmental Protection Agency:
 Clean Lakes Demonstration
  Program........................        4.0        4.0        5.0        5.0  .........        3.0       -5.0       -2.0
 Rural Water Assistance..........        5.0        5.0        8.0        6.0  .........        3.0       -8.0       -3.0
                                   -------------------------------------------------------------------------------------------------
  EPA Total......................        9.0        9.0       13.0       11.0  .........        6.0      -13.0       -5.0          2
Department of Interior:
 USGS Water Resources Research
  Institutes.....................        6.0        6.0        6.0        6.0  .........        0.6       -6.0       -5.4
 BOM Minerals Institutes.........       11.6       11.6        8.1        8.2        6.5        7.3       -1.6       -0.9
 BIA Community
  Development--Business
  Enterprise Development Program
  (Grants).......................        5.2        5.2        4.0        4.3  .........        1.2       -4.0       -3.1
 BIA Direct Loan Program.........        2.5        2.5        2.5        2.5  .........  .........       -2.5       -2.5
 BIA Technical Assistance Grants.        4.3        4.3        4.3        4.3  .........        1.3       -4.3       -3.0
 Office of Surface Mining Rural
  Abandoned Mine Program.........       13.4       13.4       13.3       13.3  .........        5.6      -13.3       -7.7
                                   -------------------------------------------------------------------------------------------------
  Interior Total.................       43.0       43.0       38.2       38.6        6.5       16.0      -31.7      -22.6          6
Department of Justice:
 Office of Justice
  Programs--Byrne Anti-Drug Abuse
  Formual Grant Program..........      423.0      413.7      358.0      408.7  .........      307.2     -358.0     -101.5          1
National Aeronautics and Space Administration (NASA):
 Long Duration Orbiter...........        7.0        4.0       43.0       27.0  .........       17.0      -43.0      -10.0
 Commercial Experiment
  Transporter....................       23.0       23.0       15.0       18.0  .........        6.0      -15.0      -12.0
 Advanced Solid Rocket Motor.....      195.0      206.0      178.0      186.0  .........       77.0     -178.0     -109.0
                                   -------------------------------------------------------------------------------------------------
  NASA Total.....................      225.0      233.0      236.0      231.0  .........      100.0     -236.0     -131.0          3
Small Business Administration:
 SBA grants for tree planting....       30.0       30.0       18.0       18.0  .........  .........      -18.0      -18.0
 SBA earmarked grants............       19.8       19.8       13.1       13.1  .........  .........      -13.1      -13.1
                                   -------------------------------------------------------------------------------------------------
  SBA Total......................       49.8       49.8       31.1       31.1  .........  .........      -31.1      -31.1          2
Department of State:
 Bilateral Science and Technology        4.5        4.5        4.3        4.3  .........        0.6       -4.3       -3.7          1
State Justice Institute..........       14.0       14.0        7.0        7.0        1.0        1.0       -6.0       -6.0          1
Department of Transportation:
 Coast Guard: Boating Safety
  Grants.........................       32.0       35.0       32.0       33.0  .........       18.0      -32.0      -15.0
 FRA: Local Rail Freight
  Assistance.....................       29.0        7.0       17.0       35.0  .........       17.0      -17.0      -18.0
                                   -------------------------------------------------------------------------------------------------
  Transportation Total...........       61.0       42.0       49.0       68.0  .........       35.0      -49.0      -33.0          2
United States Information Agency:
 North South Center..............        8.7        8.7        8.7        8.7  .........  .........       -8.7       -8.7          1
                                   =================================================================================================
Total Programmatic Terminations..    5,046.8    3,396.2    3,513.1    2,936.3      271.6    2,261.4   -3,241.5     -674.9        115


       PROGRAM REDUCTIONS

Department of Agriculture:
 Cooperative State Research
  Service, Earmarked Special
  Research Grants................      430.0      397.0      424.0      446.0      419.0      432.0       -5.0      -14.0
 Soil Conservation Service:
  Resource Conservation and
   Development...................       33.0       35.0       33.0       32.0       26.0       28.0       -7.0       -4.0
  Watershed & Flood Prevention
   Operations....................      279.0      236.0      267.0      301.0       25.0      105.0     -242.0     -196.0
 Great Plains Conservation
  Program........................       25.0       23.0       26.0       26.0       11.0       21.0      -15.0       -5.0
 Agriculture Stabilization & Conservation Service:
  Agricultural Conservation
   Program.......................      194.0      182.0      195.0      216.0      100.0      164.0      -95.0      -52.0
  Colorado River Basin Salinity
   Control Program...............       14.0       16.0       14.0       15.0        8.0       12.0       -6.0       -3.0
  Forestry Incentive Program.....       12.0       13.0       13.0       14.0        7.0       10.0       -6.0       -4.0
 Commodity Credit Corporation:
  Market Promotion Program.......      147.0      147.0      100.0      100.0       75.0       75.0      -25.0      -25.0
 Rural Electrification Administration:
  Electric and Telephone Loan
   Subsidies.....................      210.0       87.0       70.0      135.0       19.0      110.0      -51.0      -25.0
 Farmers Home Administration:
  Multi-family Housing Loans.....      288.0      179.0      298.0      273.0      116.0      290.0     -182.0       17.0
 Food and Nutrition Service:
  The Emergency Food Assistance
   Program.......................      165.0      163.4      120.2      123.7       40.2       40.0      -80.0      -83.7
  Commodity Supplemental Food
   Program.......................       94.5       77.3      104.5      106.9       94.5       94.9      -10.0      -12.0
  PL 480 (Titles I, II, III).....    1,533.4    1,444.5    1,412.0    1,683.7    1,245.4    1,341.2     -166.6     -342.5
                                   -------------------------------------------------------------------------------------------------
   Agriculture Total.............    3,424.9    3,000.2    3,076.7    3,472.3    2,186.1    2,723.1     -890.6     -749.2         14
Appalachian Regional Commission..      190.0      145.0      249.0      149.0      187.0      180.0      -62.0       31.0          1
Army Corps of Engineers:
 Construction, General...........    1,358.0    1,074.0    1,304.0    1,448.0      959.0    1,100.0     -345.0     -348.0
 Flood Control and Coastal
  Emergencies....................      130.0       53.1       80.0      139.9       15.0       82.5      -65.0      -57.4
 General Investigations..........      172.0      168.0      183.0      205.0      148.0      162.0      -35.0      -43.0
                                   -------------------------------------------------------------------------------------------------
  Corps of Engineers Total.......    1,660.0    1,295.1    1,567.0    1,792.9    1,122.0    1,344.5     -445.0     -448.4          3
Department of Commerce:
 National Oceanic and Atmospheric Administration (NOAA):
  Operations, Research and Facilities:
   NEXRAD Doppler Weather Radars.       84.5       81.6      120.0      103.6       79.6       90.0      -40.4      -13.6
  Construction: NEXRAD WFO
   Construction..................       48.4       22.4       62.8       45.2       18.3       52.5      -44.5        7.3
  Fleet Modernization,
   Shipbuilding and Conversion...       28.5       20.6       77.1       18.1       23.0       27.1      -54.0        9.0
 National Telecommunications and Information Administration (NTIA):
  Public Broadcasting Facilities,
   Planning and Construction.....       20.3       19.0       24.0       20.2       10.7       26.2      -13.3        6.0
                                   -------------------------------------------------------------------------------------------------
  Commerce Total.................      181.7      143.6      283.8      187.2      131.7      195.8     -152.1        8.6          4
Consumer Product Safety
 Commission......................       48.0       42.0       42.0       44.0       40.0       41.0       -2.0       -3.0          1
Department of Defense:
 Personnel:
  Reduce Active Military
   Personnel to 1.526 Million and
   Reserve Military Personnel to
   0.979 Million in 1995.........   65,215.0   61,954.0   62,614.0   62,418.0   60,199.0   60,007.0   -2,415.0   -2,411.0
  Reduce Civilian Personnel to
   873,000 in 1995...............     44,360   43,340.0   43,325.0   43,349.0   41,736.0   41,773.0   -1,589.0   -1,576.0
 Procurement:
  Army AH-64 Apache Attack
   Helicopter....................      139.6       20.9      167.6       68.3        5.6      100.6     -162.0       32.3
  Army Guardrail Electronic
   Intelligence Aircraft
   Modifications.................       92.5       13.9      111.3       45.3       26.9       70.1      -84.4       24.8
  Army Kiowa Warrior Armed
   Reconnaissance Helicopter.....      319.2       47.9      226.2      133.2      111.8      195.4     -114.4       62.2
  Army Avenger Air Defense
   Missile/Gun system............      146.9       13.7      135.2       53.6       13.8      103.9     -121.4       50.3
  Army Javelin Anti-Armor Missile
   System........................       18.3        1.7      207.3       23.8      131.1       78.3      -76.2       54.5
  Army Multiple-Launch Rocket
   System........................      253.4       23.6      253.6       94.3       60.1      188.2     -193.5       93.9
  Bradley Fighting Vehicle Family       93.5        1.9       71.1       40.2       14.1       64.4      -57.0       24.2
  Army High Mobility
   Multi-Purpose Wheeled Vehicle.      218.4       35.6      242.9      113.1      108.1      154.5     -134.8       41.4
  Army Family of Heavy Tactical
   Vehicle.......................      309.5       50.4      403.0      169.7       16.5      217.0     -386.5       47.3
  Army Reserve Component Computer
   Automation System.............      187.7       30.6      162.0       89.7      101.5      118.2      -60.5       28.5
  Navy F/A-18C/D Fighter Aircraft    1,134.8      150.9    1,520.4      556.2    1,032.4      974.4     -488.0      418.2
  Navy Trident II Submarine
   Launched Ballistic Missile....      980.3      150.0    1,098.6      458.9      696.0      786.9     -402.6      328.0
  LHD-1 Amphibious Assault Ship
   Conversion....................  .........  .........      888.6       45.3  .........      118.2     -888.6       72.9
  Mine Warfare Command Ship
   Conversion....................  .........  .........      123.6        6.3  .........       16.4     -123.6       10.1
  Oceanographic Ship.............  .........  .........      109.5        5.6  .........       14.6     -109.5        9.0
  Air Force B-2 Bomber...........    3,831.3      164.7    1,543.4      965.9      800.1    1,817.7     -743.3      851.8
  Air Force Advanced Medium-Range
   Air-to-Air Missile............      605.8      180.1      487.2      310.6      309.5      357.0     -177.7       46.4
  Air Force Space Boosters.......      380.0      112.5      463.2      241.5      381.8      322.7      -81.4       81.2
  Air Force Military Satellite
   Communications Equipment......       48.6       23.1       70.8       47.6        3.8       26.6      -67.0      -21.0
  Defense Support Project Office
   Major Equipment...............      183.3       37.2      331.4      121.3       11.7      156.8     -319.7       35.5
 Research and Development:
  Army Medical Advanced
   Technology....................      248.4      136.6      115.0      147.7       41.0       79.8      -74.0      -67.9
  Army Apache Longbow Anti-Armor
   Missile.......................      290.9      160.0      277.8      251.7      191.3      220.9      -86.5      -30.8
  Navy Advanced Submarine Systems      128.1       70.5      140.4      120.0       86.0      104.2      -54.4      -15.8
  Navy Ship Self-Defense.........      216.4      119.0      285.8      229.5      192.3      218.1      -93.5      -11.4
  Navy Standard Anti-Air Warfare
   Missile.......................       50.1       27.6       62.3       51.0       11.8       31.2      -50.5      -19.8
  Air Force B-2 Bomber...........    1,189.3      601.8      785.8      807.9      408.5      590.8     -377.3     -217.1
  Air Force Milstar Satellite....    1,107.3      560.3      918.4      846.7      625.4      738.5     -293.0     -108.2
  Air Force Joint Surveillance
   Target Attack Radar System....      313.5      158.6      283.1      251.4      190.4      223.8      -92.7      -27.6
  Air Force Tri-Service Stand-off
   Attack Missile................  .........  .........      265.4      134.3       81.1      132.6     -184.3       -1.7
  Air Force Medium Launch Vehicle       46.6       23.6       71.2       52.1       21.0       39.6      -50.2      -12.5
  Air Force Titan Space Launch
   Vehicles......................      147.2       74.5      270.1      187.5      161.1      188.7     -109.0        1.2
  Special Operations Tactical
   Systems.......................      121.0       57.1      218.0      149.8      167.4      175.6      -50.6       25.8
  Foreign Material Acquisition
   and Exploitation..............        9.5        4.5      155.6       77.1       49.9       84.9     -105.7        7.8
                                   -------------------------------------------------------------------------------------------------
  Defense Total..................  122,386.4  108,346.8  118,404.8  112,664.1  107,987.0  110,490.6  -10,417.8   -2,173.5         35
Department of Energy:
 Lease Elk Hills, Naval Petroleum
  Reserves.......................     -220.0     -255.0     -211.0     -199.0     -412.0     -398.0     -201.0     -199.0
 Nuclear reactor programs, energy
  supply research and development      319.0      341.0      245.0      365.0      261.0      268.0       16.0      -97.0
 Nuclear weapons stockpile
  support........................    2,186.0    2,088.0    2,121.0    2,140.0    1,616.0    1,768.0     -505.0     -372.0
 Nuclear weapons materials
  support........................    1,300.0    1,180.0    1,024.0    1,162.0      878.0      922.0     -146.0     -240.0
                                   -------------------------------------------------------------------------------------------------
  Energy Total...................    3,585.0    3,354.0    3,179.0    3,468.0    2,343.0    2,560.0     -836.0     -908.0          4
Environmental Protection Agency:
 Targeted Wastewater Assistance..      556.0      117.0      558.0      283.0      250.0      397.0     -308.0      114.0          1
Funds Appropriated to the President:
 Assistance to Central and
  Eastern Europe.................      400.0      277.6      390.0      346.5      380.0      384.7      -10.0       38.2          1
Department of Health And Human Services:
 Health Care Financing Administration:
  Research and Demonstrations....       68.3       69.5       86.0       69.6       68.6       74.0      -17.4        4.4
  Medicare Contractors...........    1,555.6    1,502.8    1,615.3    1,549.6    1,610.3    1,566.0       -5.0       16.4
  Health Professions Curriculum
   Assistance Program............      265.0      245.0      281.0      265.0      266.0      279.0      -15.0       14.0
  Maternal and Child Health Block
   Grant.........................      665.0      622.0      687.0      653.0      679.0      665.0       -8.0       12.0
  Indian Health Services.........    1,863.0    1,742.0    1,947.0    1,949.0    1,700.0    1,804.0     -247.0     -145.0
  Low Income Home Energy
   Assistance Program............    1,346.0    1,067.9    1,437.4    2,075.7      730.0      790.9     -707.4   -1,284.8
  Community Services Block Grant.      440.9      422.8      464.2      474.9      434.6      465.0      -29.6       -9.9
                                   -------------------------------------------------------------------------------------------------
  Health and Human Services Total    6,203.8    5,672.0    6,517.9    7,036.8    5,488.5    5,643.9   -1,029.4   -1,392.9          7
Department of Housing and Urban Development:
 Public Housing Development......      402.0      537.0      598.0      552.0      150.0      529.0     -448.0      -23.0
 Public Housing Modernization....    3,193.0    1,647.0    3,230.0    2,164.0    2,786.0    2,501.0     -444.0      337.0
 Severely Distressed Public
  Housing........................      300.0  .........      778.0       30.0      500.0      146.0     -278.0      116.0
 Elderly Housing New Construction    1,132.0      372.0    1,158.0      381.0      150.0      667.0   -1,008.0      286.0
 Low Income Housing Preservation.      600.0        3.0      541.0       44.0  .........       94.0     -541.0       50.0
 Congregate Services.............       21.0        5.0       25.0       11.0        6.0       16.0      -19.0        5.0
 Lead-Based Paint Grant Program..      100.0        1.0      150.0       45.0      100.0       75.0      -50.0       30.0
 HOME............................    1,173.0      212.0    1,275.0      876.0    1,000.0    1,196.0     -275.0      320.0
                                   -------------------------------------------------------------------------------------------------
  HUD Total......................    6,921.0    2,777.0    7,755.0    4,103.0    4,692.0    5,224.0   -3,063.0    1,121.0          8
Department of Interior:
 Bureau of
  Reclamation--Construction......      501.0      470.0      448.0      640.0      381.0      392.0      -67.0     -248.0
 Fish and Wildlife Service
  Construction...................      110.0       73.0       74.0      113.0       35.0       73.0      -39.0      -40.0
 National Park Service
  Construction...................      225.0      257.0      202.0      272.0      149.0      235.0      -53.0      -37.0
 Bureau of Indian Affairs
  Construction...................      150.0      124.0      167.0      138.0      114.0      114.0      -53.0      -24.0
 Bureau of Reclamation Loan
  Program........................        4.0        4.0       14.0        9.0        4.0        7.0      -10.0       -2.0
                                   -------------------------------------------------------------------------------------------------
  Interior Total.................      990.0      928.0      905.0    1,172.0      683.0      821.0     -222.0     -351.0          5
Department of Labor:
 Job Training Partnership Act:
  Training grants for low-income
   youth.........................      676.7      699.0      658.7      547.5      598.7      609.8      -60.0       62.3
  Migrant and seasonal farm
   workers.......................       78.3       78.0       85.6       74.5       78.3       81.7       -7.3        7.2
  Job Training for the homeless
   demonstration.................       12.5        9.2       12.5       10.0        5.1       11.7       -7.4        1.7
  Community Service Employment
   for Older Americans...........      396.1      389.0      410.5      386.0      396.1      406.3      -14.4       20.3
  Unemployment Trust Fund: State
   UI Administrative costs.......    2,380.1    2,318.6    2,485.3    2,450.9    2,459.7    2,391.8      -25.6      -59.1
                                   -------------------------------------------------------------------------------------------------
  Labor Total....................    3,543.7    3,493.8    3,652.6    3,468.9    3,537.9    3,501.3     -114.7       32.4          5
National Aeronautics and Space Administration (NASA):
 Space Shuttle & related.........    4,430.0    4,025.0    3,961.0    4,144.0    3,680.0    4,095.0     -281.0      -49.0
 Spacelab........................      112.0      133.0      126.0      125.0       92.0      106.0      -34.0      -19.0
 Facilities Construction (Mission
  Support).......................      189.0      202.0      222.0      198.0      135.0      201.0      -87.0        3.0
 Near Earth Asteroid Rendezvous..  .........  .........       66.0       39.0       52.0       50.0      -14.0       11.0
 Life & Microgravity Sciences....      408.0      399.0      515.0      459.0      471.0      481.0      -44.0       22.0
 Aeronautical Research &
  Technology.....................      769.0      713.0    1,102.0      960.0      899.0      957.0     -203.0       -3.0
 Space Transportation Technology.      115.0      124.0      122.0      120.0      103.0      110.0      -19.0      -10.0
 Spacecraft & Remote Sensing
  Technology.....................      141.0      152.0      156.0      151.0      143.0      147.0      -13.0       -4.0
 Mission Communication Services..      547.0      549.0      589.0      575.0      481.0      516.0     -108.0      -59.0
                                   -------------------------------------------------------------------------------------------------
  NASA Total.....................    6,711.0    6,297.0    6,859.0    6,771.0    6,056.0    6,663.0     -803.0     -108.0          9
National Science Foundation:
 Academic research infrastructure       50.0       18.0      100.0       94.0       55.0       84.0      -45.0      -10.0          1
Department of State:
 Migration and Refugee Affairs...      620.7      628.0      670.7      592.6      632.9      639.8      -37.8       47.2          1
Department of Transportation:
 Coast Guard: Alteration of
  Bridges........................       13.0        7.0       13.0       24.0  .........       13.0      -13.0      -11.0
 Transit Discretionary Grants....    1,725.0    1,298.0    1,734.0    1,450.0    1,517.0    1,608.1     -217.0      158.1
 Transit Operating Subsidies.....      802.0      802.0      802.0      802.0      600.0      681.0     -202.0     -121.0
                                   -------------------------------------------------------------------------------------------------
  Transportation Total...........    2,540.0    2,107.0    2,549.0    2,276.0    2,117.0    2,302.1     -432.0       26.1          3
Department of the Treasury:
 United States Customs Service:
  Air and Marine Interdiction
   Program.......................      243.0      238.0      233.0      232.0      176.0      182.0      -57.0      -50.0          1
United States Information Agency:
 Educational and Cultural
  Exchange Programs..............      242.3      211.9      242.0      237.3      221.8      231.9      -20.2       -5.4          1
Department of Veterans Affairs:
 Medical and Prosthetic Research.      232.0      232.0      252.0      252.0      211.0      211.0      -41.0      -41.0          1
                                   =================================================================================================
Total Programmatic Reductions....  160,729.5  139,324.0  157,486.5  148,642.6  138,497.9  143,820.7  -18,988.6   -4,821.9        106
------------------------------------------------------------------------------------------------------------------------------------

  *Less than $500 thousand.
------------------------------------------------------------------------------------------------------------------------------------


                                   Table I-5. PROPOSED INVESTMENTS


                           (Budget authority; dollar amounts in millions)

----------------------------------------------------------------------------------------------------
                                                                Dollar   Percent    Dollar   Percent
                                             1994              Change:   Change:   Change:   Change:
                                   1993     Esti-      1995    1993 to   1993 to   1994 to   1994 to
                                 Enacted   mate\2\  Proposed     1995      1995      1995      1995
----------------------------------------------------------------------------------------------------

      ECONOMIC SECURITY
Infrastructure:
 Department of Agriculture:
  Rural Development Initiative:
   Grant levels...............       878     1,039     1,148       270        31       109        10
   (Loan levels)..............   (3,119)   (4,046)   (5,728)   (2,609)        84   (1,682)        42
 Department of Transportation:
  Highways (obligations)\2\...  (18,043)  (19,978)  (20,301)   (2,258)        13     (323)         2
   Intelligent vehicle highway
    system (obligations)\2\...      (30)      (90)     (165)     (135)       450      (75)        83
  Mass transit formula capital
   grants.....................        54       659     1,115     1,061         #       456        69
   (limitation on
    obligations)\2\...........     (844)     (954)   (1,150)     (306)        36     (196)        21
   (total budgetary resources)     (898)   (1,613)   (2,265)   (1,367)       152     (652)        40
  Next generation high speed
   rail.......................        --        --        28        28       N/A        28       N/A
  Penn Station redevelopment..        --        10        90        90       N/A        80       800
                                --------------------------------------------------------------------
 Subtotal, Infrastructure.....    19,849    22,730    23,997     4,148        21     1,267         6
  Loan levels.................   (3,119)   (4,046)   (5,728)   (2,609)        84   (1,682)        42
Education and Training:
 Department of Education:
  School-to-work (Education
   Department share)..........        --        50       150       150       N/A       100       200
  Goals 2000..................        --       105       700       700       N/A       595       567
  Title I, education for the
   disadvantaged..............     6,696     6,912     7,579       883        13       667        10
  Safe and drug-free schools..       582       472       660        78        13       188        40
 Department of Halth and Human Services:
  Head Start..................     2,776     3,326     4,026     1,250        45       700        21
 Department of Labor:
  Dislocated Worker Assistance
   Act........................       602     1,118     1,465       863       143       347        31
  School-to-work (DOL share)..        --        50       150       150       N/A       100       200
  One-stop career shopping....        --        50       250       250       N/A       200       400
  Worker profiling............        --         9         9         9       N/A        --        --
  Job Corps...................       966     1,040     1,157       191        20       117        11
 National Service:
  National Service
   Initiative\3\..............       279       575       850       571       205       275        48
                                --------------------------------------------------------------------
 Subtotal, Education and
  Training....................    11,901    13,707    16,996     5,095        43     3,289        24
Technology:
 Department of Agriculture:
  USDA-National Science and
   Technology Council (NSTC)..       161       171       189        28        17        18        11
 Department of Commerce:
  Economic Development
   Administration, defense
   conversion.................        --        80       140       140       N/A        60        75
  National Institute of
   Standards and Technology
   (NIST) growth, NIST high
   performance computing, and
   NIST NSTC..................       381       520       935       554       145       415        80
  Information highways........        --        26       100       100       N/A        74       285
  NOAA NSTC...................        47        64       106        59       126        42        66
 Department of Defense:
  ARPA technology reinvestment
   project....................       472       554       625       153        32        71        13
 Department of Energy:
  Conservation R&D/EPAct......       349       436       654       305        87       218        50
  Cooperative R&D agreements..       151       262       275       124        82        13         5
  Advanced neutron source.....        12        17        40        28       233        23       135
  Linear accelerator
   "B-Factory"..............          --        36        44        44       N/A         8        22
 Department of Health and Human Services:
  High performance computing..        47        58        82        35        74        24        41
 National Aeronautics and Space Administration:
  Mission to Planet Earth.....       932     1,023     1,236       304        33       213        21
  Aeronautics initiatives.....       129       289       347       218       169        58        20
  High performance computing..        30        66        76        46       153        10        15
  New technology investments..        --        60        67        67       N/A         7        12
 National Science Foundation:
  NSF research and education..     2,619     2,891     3,060       441        17       169         6
                                --------------------------------------------------------------------
 Subtotal, Technology.........     5,330     6,553     7,976     2,646        50     1,423        22
Environment:
 Department of Agriculture:
  Natural resource protection
   and environmental
   infrastructure.............       749       735       782        33         4        47         6
  National research initiative        98       112       130        32        33        18        16
  Climate change action plan..        --         2        12        12       N/A        10       500
  Pacific Northwest Forest
   Plan implementation........        --        60        97        97       N/A        37        62
 Department of Commerce:
  NOAA: rebuild U.S. fisheries       232       231       280        48        21        49        21
 Department of Energy:
  Alternative fuels vehicles..        28        44        69        41       146        25        57
  Federal Facility Energy
   Efficiency (FFEE)..........         5        16        37        32       640        21       131
  Renewable energy programs...       251       341       393       142        57        52        15
  Climate change action plan..        --        17       208       208       N/A       191         #
 Department of the Interior:
  Natural resource protection
   and environmental
   infrastructure (includes
   NAFTA environmental
   activities)................     1,783     1,813     1,964       181        10       151         8
  Pacific Northwest Forest
   Plan.......................        --        27        71        71       N/A        44       163
  South Florida ecosystem
   restoration................        26        17        45        19        73        28       165
  National Biological Survey..        --       167       177       177       N/A        10         6
  National Spatial Data
   Infrastructure Initiative..        --         1         7         7       N/A         6       600
  BuRec wastewater reclamation
   and reuse pilot program
   (So. Cal.).................        --        10        10        10       N/A        --        --
  Climate change action plan..        --        --        --        --       N/A        --        --
 Corps of Engineers:
  President's August 1993
   wetlands plan..............        86        92       110        24        28        18        20
  Climate change action plan..        --         1         1         1       N/A        --        --
 Environmental Protection Agency:
  Clean water and safe
   drinking water State
   revolving funds............     1,944     1,839     2,300       356        18       461        25
  Watershed restoration grants        50        80       100        50       100        20        25
  Environmental Technology....        92       128       172        80        87        44        34
  Green Programs..............         8        26        35        27       338         9        35
  Climate change action
   plan\4\....................        --        26        76        76       N/A        50       192
  Montreal protocol...........        10        10        24        14       140        14       140
  NAFTA environmental support.       154        74       179        25        16       105       142
  Needy cities\5\.............       100       100       100        --        --        --        --
  Wetlands initiative.........        --        31        36        36       N/A         5        16
                                --------------------------------------------------------------------
 Subtotal, Environment........     5,616     6,000     7,415     1,799        32     1,415        24
Other Economic Security:
 Department of Agriculture:
  WIC (Special supplemental
   food program for women,
   infants and children)......     2,860     3,210     3,564       704        25       354        11
  Food safety\6\..............       494       517       534        40         8        17         3
  Food safety research........        16        16        41        25       156        25       156
 Department of Defense:
  Office of Economic
   Adjustment.................        30        39        39         9        30        --        --
 Department of Energy:
  Conservation: weatherization
   assistance grants..........       185       207       250        65        35        43        21
 Department of Health and Human Services:
  Social Security: disability
   processing and automation
   investments (budget
   authority and limitations
   on obligations)\2\.........     4,823     5,498     5,825     1,002        21       327         6
 Department of Housing and Urban Development:
  Multifamily property
   disposition\7\.............        93       555       733       640       688       178        32
  Incremental housing vouchers     1,307     1,404     2,743     1,436       110     1,339        95
  Homeless programs: homeless
   assistance grants and
   innovative homeless
   initiatives program\8\.....       572       823     1,250       678       119       427        52
  Moving to independence......        --        --       149       149       N/A       149       N/A
 Department of the Treasury:
  IRS: Tax system
   modernization..............       572       694       989       417        73       295        43
 Community Development Financial Institutions:
  Community development
   financial institutions.....        --        --       144       144       N/A       144       N/A
 Small Business Administration:
  Section 7(a) loan guarantees
   (loan levels)..............   (6,410)   (7,000)   (8,995)   (2,585)        40   (1,995)        29
  Empowerment zones...........        --        --        27        27       N/A        27       N/A
   (Loan levels)..............        --        --     (375)     (375)       N/A     (375)       N/A
  Small Business Investment
   Company guarantees.........        13        40        91        78       600        51       128
   (Loan levels)..............      (74)     (326)     (730)     (656)       886     (404)       124
 Legal Services Corporation:
  Payment to the Legal
   Services Corporation.......       357       400       500       143        40       100        25
                                --------------------------------------------------------------------
 Subtotal, Other Economic
  Security....................    11,322    13,403    16,879     5,557        49     3,476        26
  (Loan levels)...............   (6,484)   (7,326)  (10,100)   (3,616)        56   (2,774)        38
                                ====================================================================
Total, Economic Security......    54,018    62,393    73,263    19,245        36    10,870        17
  (Loan levels)...............   (9,603)  (11,372)  (15,828)   (6,225)        65   (4,456)        39


       HEALTH SECURITY

Department of Health and Human Services:
 Public Health Service:
  NIH.........................    10,326    10,956    11,473     1,147        11       517         5
  Ryan White Act AIDS
   treatment..................       348       579       672       324        93        93        16
  Immunizations\9\............       341       528       888       547       160       360        68
  Drug Treatment..............       717       755     1,040       323        45       285        38
                                --------------------------------------------------------------------
Total, Health Security........    11,732    12,818    14,073     2,341        20     1,255        10


      PERSONAL SECURITY

Department of Housing and Urban Development:
 Community partnerships
  against crime...............        --        --       265       265       N/A       265       N/A
Department of Justice:
 Community policing...........       150        25     1,720     1,570         #     1,695         #
 Brady Bill/Criminal records
  upgrade.....................        --        --       100       100       N/A       100       N/A
 Border security and illegal
  immigration initiative......        --        --       300       300       N/A       300       N/A
 Other Crime bill
  (miscellaneous bureaus).....        --        --       303       303       N/A       303       N/A
 Employer sanctions and
  naturalization initiatives..        --        --        68        68       N/A        68       N/A
                                --------------------------------------------------------------------
Total, Personal Security......       150        25     2,756     2,606         #     2,731         #
                                ====================================================================
Total, Proposed Investments...    65,900    75,236    90,092    24,192        37    14,856        20
 (Loan levels)................   (9,603)  (11,372)  (15,828)   (6,225)        65   (4,456)        39

Memorandum:
 Discretionary investments....    65,900    75,236    88,935    23,035        35    13,699        18
 Mandatory investments........        --        --     1,157     1,157       N/A     1,157       N/A

----------------------------------------------------------------------------------------------------

  *$500 thousand or less.

  N/A = Not applicable.

  # = Percentage change of greater than 1,000 percent.

  \1\Estimates for 1994 include proposed supplementals and rescissions.

  \2\Budget authority totals include obligation limitations in the Departments of Health and Human
Services and Transportation.

  \3\The 1993 enacted column includes funding for ACTION and the Commission on National and
Community Service. All other columns include funding for ACTION and the Corporation for National and
Community Service.

  \4\EPA Climate change action plan estimates are incremental investment estimates.

  \5\EPA Needy Cities funding for 1994 is a contingent appropriation subject to Congressional
authorization.

  \6\The investment proposal for food safety is the total program level. The 1995 budget proposes to
partially offset this program level by a new user fee of $103 million to cover the cost of overtime
meat and poultry inspection.

  \7\Proposal assumes passage of property disposition (PD) reform legislation. Budget authority for
1995 represents a new mandatory spending program whose costs are offset by proposed mandatory
program reforms.

  \8\Estimates for HUD homeless programs for 1995 include funds for the Homeless food and shelter
program formerly in the Federal Emergency Management Agency.

  \9\Immunizations includes $424 million in budget authority in 1995 for mandatory vaccine purchase.
----------------------------------------------------------------------------------------------------

  Investments. While total discretionary spending declines, budget
discipline and spending cuts in every department and agency make room
for targeted increases in programs important to the economy and the
society.  The President requests a total increase of $13.7 billion in
budgetary resources, or 18 percent ($7.7 billion in outlays, or 11
percent), in the discretionary spending that embodies much of his
investment program (Table I-5).  Over the past two budget years, these
programs have been increased by a total of $23.0 billion in budgetary
resources,  or 35 percent ($15.3 billion of outlays, or 23 percent),
while total discretionary outlays have decreased by $0.1 billion.

  These figures demonstrate clearly that this Administration has been
making tough choices--maintaining budget discipline and reducing
spending, but shifting the limited budget dollars into investment
programs that invest in people and contribute to a strong economy.

  The discretionary investment programs in the 1995 budget include:

 o Economic growth: investing in people. Substantial investments are
   proposed in education, ranging from Head Start through title I for
   disadvantaged elementary students and GOALS 2000 for elementary and
   secondary school reform, through school-to-work transition
   assistance for non-college-bound secondary-school students.
   Training investments include the Workforce Security initiative to
   provide a new reemployment system, and a significant expansion of
   the Job Corps.  The national service program is expanded, allowing
   more young people to serve their communities and earn money towards
   college.  Other investments for people include WIC, to nourish
   pregnant and post-partum women, infants, and children; new
   resources for dealing with the backlog of Social Security
   Disability Insurance claims; increases in grants for assistance to
   the homeless; and food safety inspections and research. Overall
   investments increase by over 8 percent next year and 23 percent
   over the next five years. Investments for children increase 10
   percent in 1995 and 25 percent in the next five years.

 o Economic growth: investing in science and technology. The budget
   strengthens programs that promote growth, job creation, and
   environmental quality in U.S. businesses through cost-shared,
   applied research.  It provides major increases for the Advanced
   Technology Program in the National Institute of Standards and
   Technology of the Department of Commerce; the Technology
   Reinvestment Project and other dual-use programs in the Department
   of Defense; and development of the National Information
   Infrastructure.  Support for fundamental science is bolstered
   through increases in funding for the National Science Foundation
   and the National Institutes of Health.

 o Economic growth: investing in infrastructure. The largest
   investments include full funding of the Intermodal Surface
   Transportation Efficiency Act (ISTEA) core highways program; a
   substantial increase of the mass transit formula capital grants;
   and the Department of Agriculture's rural development initiative.

 o Economic growth: investing in the environment. Natural resource and
   environment initiatives in the Departments of Agriculture,
   Commerce, Energy, Interior, the Corps of Engineers, and the
   Environmental Protection Agency focus on international issues, such
   as global climate change; particular U.S. ecosystems, such as the
   Pacific Northwest Forest; cleanup of Defense, Energy, and Superfund
   sites; energy conservation; stewardship for safe and clean water
   and land management; and enforcement of the nation's environmental
   protection laws. Overall, these investments increase by 4 percent
   in 1995--and 7 percent over the next five years from spending
   levels in the previous Administration.

 o Health investments. Substantial funding increases are provided to
   the National Institutes of Health, Ryan White Act AIDS treatment
   program, the President's immunization program, and for drug
   treatment.  Still further investments are included in the
   President's comprehensive health reform. The increases come to 40
   percent over the next five years.

 o Crime and drug abuse. The Crime Bill currently in the Congress
   provides a substantial increase for a broad range of activities
   within the Department of Justice.  The President's initiative to
   put an additional 100,000 police on the streets is one part of the
   budget plan. Drug treatment--especially for hard-core users--is
   another important part of the Administration's new strategy. It
   concentrates resources at the local level and shifts international
   resources from transit interdiction to in-country efforts against
   drug production. The increases reach 18 percent in 1995, and 45
   percent over the next five years.

 o National security. The Administration funds--and the President
   supports as an irreducible minimum--a military that is ready,
   technologically superior, and oriented to the new threats in our
   changing world, in keeping with the Bottom-Up Review undertaken
   last year by the Department of Defense.

  All of these investments are undertaken within a declining overall
level of discretionary spending--made possible through the President's
Executive Orders reducing Federal personnel and overhead expenses, and
through hard choices among competing priorities.

Mandatory Spending

  Mandatory, or entitlement, spending is projected to increase from
$730.4 billion in 1994 to $762.9 billion in 1995, an increase of $32.5
billion, or 4.4 percent, in the absence of the President's health
reform.

  Though projected mandatory outlays grow more rapidly in 1995 than
discretionary spending (outlays other than debt service grow by 4.4
percent from 1994, and debt service costs grow by 4.8 percent),
mandatory spending growth is significantly below its recent pace.  For
example, from 1981 to 1993, mandatory outlays other than debt service
and deposit insurance grew by 7.2 percent per year; debt service grew
by 9.2 percent per year.  The slower projected growth for this budget
year is due in part to the improving economy, which reduces the
Federal Government's unemployment and income-support costs, as well as
the costs of deposit insurance; and in part to strict compliance with
the pay-as-you-go restrictions on mandatory spending increases in the
Budget Enforcement Act.

  Projected outlay growth in 1995 is distributed unevenly across
entitlement categories.  Medicare and Medicaid grow 8.9 and 10.6
percent, respectively--much faster than any other category of spending
(Table I-6).  Other entitlements--Social Security, the other non-means
tested entitlements (including Federal employee civilian and military
retirement programs, veterans programs, unemployment compensation, and
other programs), and the other means-tested entitlements for
low-income persons (food stamps, family support assistance, and other
programs)--all grow at below or very little more than the average rate
of growth of spending, and below the rate of growth of revenues.


                         Table I-6. MANDATORY SPENDING


                         (Dollar amounts in billions)

-------------------------------------------------------------------------------
                                   1994    1995    1996    1997    1998    1999
-------------------------------------------------------------------------------
Social security benefits.......   317.7   334.5   353.7   369.5   389.6   410.8
Federal retirement benefits\1\.    63.0    65.2    67.9    71.3    74.6    78.9
Medicare (pre-reform)..........   141.0   155.4   174.2   192.7   211.8   234.7
Medicaid (pre-reform)..........    87.2    96.4   108.2   121.5   136.3   152.2
Unemployment benefits..........    26.7    23.0    23.5    23.9    24.0    25.1
Means-tested benefits\2\.......    89.4    96.7   102.4   109.9   116.6   124.0
Deposit insurance..............    -3.3   -11.1   -11.3    -6.1    -4.9    -3.3
Other, including undistributed
 offsetting receipts...........     8.8     2.7    -3.7    -1.3    -3.1    -1.8
                                 ----------------------------------------------
Mandatory, excluding health
 reform........................   730.4   762.9   814.9   881.4   945.0  1020.5


Mandatory without health care
 reform as a percent of GDP....   11.0%   10.9%   11.0%   11.2%   11.4%   11.7%


Memorandum:
 Effects on mandatory outlays of the health care reform proposal:
 Net effect....................    -0.2     0.9    11.7    28.3    43.3    30.8
                                 ----------------------------------------------
  Total mandatory with health
   reform......................   730.3   763.7   826.6   909.7   988.3  1051.3


 Total mandatory with health
  care reform as a percent of
  GDP..........................   11.0%   10.9%   11.1%   11.6%   11.9%   12.0%

-------------------------------------------------------------------------------

  \1\Civil service and military retirement.

  \2\Food stamps and food aid to Puerto Rico, family support payments, SSI,
child nutrition, EITC and veterans pensions.
-------------------------------------------------------------------------------

  This pattern demonstrates again the crucial role of health care
costs in the Federal budget.  Of all the categories of spending,
discretionary or mandatory, health care is far and away the fastest
growing.  As the President has pointed out on numerous occasions, we
will not control our deficit until we achieve fundamental health
reform.  The President's proposal would reach both of these
objectives--as the alternative deficit paths in this budget, with and
without health care reform, illustrate.

  Initiatives. The Administration contemplates several major
initiatives in the mandatory spending arena:

 o Health reform, as discussed above, is essential to long-term
   control of the Federal budget deficit--and to the health security
   of all Americans.  The President's proposal, presented last year,
   will provide guaranteed private insurance with a comprehensive
   package of benefits, and enhance competition among providers and
   insurers to keep costs down.

 o Welfare reform will fundamentally revamp a system that encourages
   dependency rather than independence, and fails to reward work.  It
   will provide the training and services that parents need to support
   their families--including health coverage--but require
   responsibility in return.  It will simplify what is now an
   excessively complex system, and give States greater flexibility.

 o Workforce security--a reemployment system, rather than our outmoded
   unemployment system--will focus resources on workers who must make
   the inevitable adjustments in a changing economy.  It will screen
   new job-losers to provide the needed combination of counseling,
   training, and job-search assistance, in a more accessible, unified
   system to replace the current patchwork of categorical programs.

 o The recently negotiated Uruguay Round agreements under the General
   Agreement on Tariffs and Trade (GATT) will open foreign markets to
   a broader range of competitive U.S. producers of goods and services
   than ever before, and thereby increase U.S. incomes and contribute
   to long-term deficit control.

  All of these initiatives will be deficit-neutral, in keeping with
the pay-as-you-go requirements of the Budget Enforcement Act.

                               RECEIPTS

  1995 receipts are projected at $1,342.2 billion, an increase of
$93.0 billion, or 7.4 percent, in the absence of the proposed health
reform. All new receipts raised by OBRA-93 are deposited in the
Deficit Reduction Fund created by an Executive Order of the President.
The health reform proposal would add $11.6 billion in receipts, all to
pay for health care.

  Receipts increases in 1995--as did those in 1994--reflect the
President's deficit-reduction plan of last year, and the affected
receipts sources grow the most rapidly as a result (Table I-7).  The
budget contains no tax increase proposals.


                              Table I-7. RECEIPTS


                          (Dollar amount in billions)

-------------------------------------------------------------------------------
                              1994     1995     1996     1997     1998     1999
-------------------------------------------------------------------------------
Individual income taxes..    550.0    597.2    630.6    663.9    698.6    739.4
Corporation income taxes.    130.7    141.0    146.3    150.3    152.9    157.5
Social insurance taxes
 and contributions.......    461.9    492.1    518.5    546.1    576.0    604.7
Excise taxes.............     54.6     55.8     56.7     57.8     58.9     60.3
Other receipts...........     52.0     56.0     58.2     61.3     64.4     67.2
                           ----------------------------------------------------
 Total receipts..........  1,249.2  1,342.2  1,410.4  1,479.5  1,550.8  1,629.0


 Total receipts without
  health care reform as a
  percent of GDP.........    18.8%    19.1%    19.0%    18.9%    18.7%    18.6%


Memorandum:
 Effect of health care
  reform proposal on
  receipts...............     -0.1     11.6     16.9     25.6     36.2     44.0
                           ----------------------------------------------------
 Total receipts with
  health care reform.....  1,249.1  1,353.8  1,427.3  1,505.1  1,586.9  1,672.9
 Total receipts with
  health care reform as a
  percent of GDP.........    18.8%    19.3%    19.2%    19.2%    19.2%    19.1%
-------------------------------------------------------------------------------

                               DEFICIT

  As a result of this budget discipline, the deficit is projected to
decline in 1995 to $176.1 billion, from the 1994 level of $234.8
billion.  If this projection is realized, it will be the first
sub-$200 billion deficit since 1989.

  More reflective of the impact of the deficit, however, is its size
relative to the economy.  The 1995 deficit is a projected 2.5 percent
of the GDP, down from an estimated 3.5 percent for 1994, and an actual
4.9 percent for 1992.  At 2.5 percent of GDP, the 1995 deficit is the
lowest since 1979.  Thus end the economic policies of the 1980s.

  Without health reform, the deficit is projected to fall to 2.3
percent of GDP for the remainder of the decade.  With health reform,
the deficit as a percentage of GDP fluctuates in a narrow range as
costs and savings from the plan phase in; but by 1999, the deficit
falls to 2.1 percent of GDP.

  This much-improved deficit outlook is confirmed by the projections
of the Congressional Budget Office (CBO). On average over the history
of five-year budget projections under the two preceding
Administrations, CBO projected deficits that were higher by $47
billion per year. In this budget, CBO projects deficits that are lower
by an average of $3 billion per year.

  These figures reflect the major impacts of the President's economic
plan--both the first installment enacted last year, and the agenda
remaining.  The economic plan thus far has contained the deficit, and
thereby restored the economy to healthy growth--with rising
investment, productivity, and employment.  The next stage of the
economic plan--centered around health reform, continued budget
discipline, and the President's investment program--will put the
deficit on a continuing downward path, provide health security to all
Americans, and remove further barriers to competitiveness and economic
growth.  The President is committed to this program of continued
deficit reduction and higher investment to achieve long-term economic
growth and prosperity for all Americans.

  This budget begins the second stage of President Clinton's program
of economic renewal.


        THE PRESIDENT'S 1995 BUDGET: THE "NEW DIRECTION" INDEX



Economic Growth
 o Unemployment rate, December 1993..................  6.4%
 o Unemployment rate, December 1992..................  7.3%
 o Number of private sector jobs created, February
    1993-December 1993...............................  1.6 million
 o Number of private sector jobs created, January
    1989-January 1993................................  1.0 million
 o Mortgage rate, January 1994.......................  7.09%
 o Mortgage rate, January 1993.......................  8.22%
 o Number of Americans who saved money by refinancing
    their mortgages, 1993............................  5.4 million
 o Rate of business investment growth, first three
    quarters 1993....................................  16.5%
 o Rate of business investment growth, 4th quarter
    1988-4th quarter 1992............................  2.2%

Fiscal Responsibility
 o Number of programs terminated in 1995 budget
    proposal.........................................  More than 115
 o Number of programs cut below last year's dollar
    level............................................  More than 300
 o Annual spending growth (nominal), 1994 to 1999....  4.6%
 o Annual spending growth (nominal), 1981 to 1993....  6.3%
 o Annual spending growth (real), 1994 to 1999.......  1.4%
 o Annual spending growth (real), 1981 to 1993.......  2.2%
 o Federal spending as share of GDP, average 1994 to
    1999.............................................  21.6%
 o Federal spending as share of GDP, average 1981 to
    1993.............................................  23.1%
 o Deficit as share of GDP, 1997.....................  2.4%
 o Deficit as share of GDP, 1992.....................  4.9%
 o Annual discretionary spending growth (nominal),
    1994 to 1999.....................................  -0.1%
 o Annual discretionary spending growth (nominal),
    1981 to 1993.....................................  4.8%
 o Annual discretionary spending growth (real), 1994
    to 1999..........................................  -2.9%
 o Annual discretionary spending growth (real), 1981
    to 1993..........................................  1.0%
 o Annual non-defense domestic discretionary spending
    growth (nominal), 1994 to 1999...................  1.7%
 o Annual non-defense domestic discretionary spending
    growth (nominal), 1981 to 1993...................  4.4%
 o Annual non-defense domestic discretionary spending
    growth (real), 1994 to 1999......................  -1.2%
 o Annual non-defense domestic discretionary spending
    growth (real), 1981 to 1993......................  0.6%
 o Change in public debt as share of GDP, 1994 to
    1999.............................................  52.3% to 50.7%
 o Change in public debt as share of GDP, 1981 to
    1993.............................................  26.5% to 51.6%
 o Number of years of projected consecutive deficit
    declines, 1993 to 1995...........................  3
 o Last President with 3 years of consecutive deficit
    declines.........................................  Truman
 o Number of Federal employees added, 1981 to 1993...  44,000
 o Number of Federal employees cut, 1993 to 1995.....  -118,000
 o Number of Federal employees cut, 1993 to 1999.....  -252,000
 o Number of new police officers on the street by
    1998.............................................  100,000
 o Projected number of Federal employees, 1999.......  1.9 million
 o Last year Federal employment was below 2 million..  1966

Investing in People
 o Increase in Head Start funding by 1995 (over 1993)  45%
 o Additional children enrolled in Head Start by 1995
    (over 1993)......................................  126,000
 o Percent of students able to make income-contingent
    college loan repayments, 1993....................  Less than 1%
 o Percent of students able to make income-contingent
    college loan repayments, 1995....................  100%
 o Typical student's savings from lower fees and
    interest under phased-in loan reforms............  $1,250
 o Number of young Americans providing community
    service for partial loan repayment, 1995.........  33,000
 o Increase in Chapter 1 education dollars going to
    schools in poorest districts by 1998.............  40%
 o Number of working families getting tax cut to
    reward work, 1994................................  15 million
 o Number of dislocated workers receiving help
    finding a new job, 1993..........................  350,000
 o Number of dislocated workers receiving help under
    Workforce Security program.......................  1.3 million
 o Number of small businesses getting SBA-backed loan
    guarantees in 1995...............................  35,000
 o Average number of small businesses getting such
    loans yearly in the late 1980s...................  15,000

Keeping America Strong
 o Average defense budget, Eisenhower Administration
    (1995 dollars)...................................  $243.3 billion
 o Average defense budget, Ford Administration (1995
    dollars).........................................  $249.8 billion
 o Average defense budget, Nixon Administration (1995
    dollars).........................................  $254.8 billion
 o Proposed defense budget, 1995.....................  $252.2 billion


---------------------------------------------------------------------
  Note: Projected fiscal estimates include health care reform.
---------------------------------------------------------------------

.
