Maintained for Historical Purposes

This resource is being maintained for historical purposes only and is not currently applicable.

PublicationDate: 1/11/96
Author: CSB - SFA Customer Support Branch

January 11, 1996


After the longest federal government shutdown
in U.S. history (21 days) & the third worst blizzard this
century, we return to work under a CR (continuing
resolution) that runs until January 26. The current CR sets
forth exactly the same conditions as the previous one (which
ended December 15). In addition to providing funds for
operating the Department until January 26, the CR allows
spending on education programs to continue at the level of
the House-passed appropriations bill *or* last year's
appropriation (fiscal year 1995), whichever is lower. If
this produces an amount less than 75 percent of the fiscal
year 1995 level for a particular program, that program would
instead be funded at 75 percent of last year's

Since the Department's annual appropriations bill for fiscal
year 1996 (HR 2127) is still stalled in the Senate, it is
not clear when -- or if -- that bill will be finalized.
Funding for the Education Department could end up in an
extended (perhaps for the rest of the year) Continuing
Resolution negotiated at new levels.

OVER THE PAST WEEKEND, the President responded to the
Republicans' proposal to balance the budget with his own
balanced-budget plan. His plan would continue to protect
Medicare, Medicaid, education, & the environment. On Monday,
Republicans presented their revised proposal in response to
the President's. While the two sides have made progress in
negotiations, they are still a considerable distance apart,
not only on budget figures but in terms of policy approaches.
Negotiations are expected to resume some time next week.
Highlights of SAVINGS that would result from each proposal (to
balance the budget in 7 years) are shown in the chart below.

SAVINGS (in billions) Clinton GOP (Jan.6 proposal)
Total 7-Year Savings: $602 billion (not available)

Medicare: $102 billion $168 billion

Medicaid: $ 52 billion $ 85 billion

Student Loans: $ 0 (not available)

Annually Approved General
Gov't Spending, Including
Defense: $295 billion $349 billion

Welfare, Including Earned
Income Tax Credit for the
Working Poor: $38 billion $60 billion

Closing Corporate
Tax Breaks: $60 billion (not available)

Farm Programs: $0 (not available)

Savings from Lower Interest
Payments as Federal Deficits
Go Down: $57 billion (not available)

Tax Cuts (cost to't): $17 billion* $177 billion

* The President's $87 billion tax cut would
grow to $147 billion if the economy performs
as well as the White House believes it will.

Last Modified: 08/16/1999