The Salina Journal from Salina, Kansas on February 2, 1986 · Page 8
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The Salina Journal from Salina, Kansas · Page 8

Salina, Kansas
Issue Date:
Sunday, February 2, 1986
Page 8
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Reagan's 1987 budget lists $38 billion in cuts The Salina Journal Sunday, February 2,1986 Page 8 WASHINGTON (AP) - The fiscal 1987 budget President Reagan will submit to Congress this week will propose $38 billion in deficit- reduction steps, far less than the staggering $50 billion to $60 billion previously expected, administration sources said Saturday. He will propose roughly $30 billion in spending cuts and $8 billion in new revenues, partly from a plan to sell off federally owned assets, officials said. At the same Reagan time, the budget will call for defense spending in 1987 of $282 billion, an increase of slightly more than 6 percent above current levels, the sources said. A new economic analysis, projecting a lower federal deficit for 1987 than believed even as recently as two weeks ago, is largely responsible for the scaling back of proposed cuts, the officials said. In his radio address Saturday, Reagan said the budget will "propose to reform or eliminate programs and activities that are either too big or that shouldn't exist at all." He said the budget will not reduce Social Security benefits or "essential programs to anyone who needs such assistance" and will maintain "modest growth to sustain the defense program set in motion five years ago." The budget, to be submitted to Congress Wednesday morning, will still comply with the $144 billion deficit target in the new Gramm- Rudman budget-balancing law for fiscal 1987, which begins on Oct. 1, the officials said. Meanwhile, the president ordered Saturday the first round of Gramm- Rudman spending cuts, totaling $11.7 billion. The cuts of 4.3 percent for domestic programs and 4.9 percent for the military will take effect on March 1. Under the Gramm-Rudman law, the president has no choice but to follow the cuts outlined in late January by Comptroller General Charles Bowsher. The Justice Department has challenged the constitutionality of this delegation of authority in a case awaiting a decision by a three- judge federal court. From fiscal 1987 on, automatic cuts will be made if Congress fails to reduce the deficit to targets specified by the Gramm-Rudman law, which would eliminate the deficit by 1991. The president's Saturday order affects spending in fiscal 1986, while the budget he will send to Congress on Wednesday will deal with fiscal 1987 spending. As recently as Jan. 22, Budget Director James C. Miller III testified before the Senate Budget Committee that the 1987 deficit would be $200 billion or more in 1987 if the government did no more than continue to provide the services it does now. Since the Gramm-Rudman target for fiscal 1987 is a deficit of $144 billion, Miller and other budget officials testified that budget reductions totaling between $50 billion and $60 billion would be needed. And Miller has been saying publically since before Christmas that the president's 1987 budget would advocate spending cuts of around $50 billion. But last week, in an economic reassessment by the Office of Man- agement and Budget, the deficit projection for 1987 was lowered from the approximately $200 billion cited by Miller to $182 billion. A similar lowering of the deficit projection was made within the past few days by the Congressional Budget Office, which said that the deficit in 1987 could fall to as low as $178 billion — even in the absence of any further spending cuts by Congress. "It was really a startling revelation. It shows that the deficit is finally headed down on its own. It makes meeting the Gramm-Rudman goals far easier, assuming we don't have another recession," said an administration official. The deficit projection was lowered based on new data suggesting continued moderate growth in the economy, a calculation that cuts made to realize this year's $11.7 billion Gramm-Rudman reduction would save an additional $18 billion in 1987 and 1988, and a slowdown in military spending. Even though the president is following through with his vow to propose a defense spending increase of about 3 percent on top of inflation, actual military spending increases have slowed dramatically in the past few years, officials said. Congress last year voted to allow military spending to rise only with inflation. In going along with such a plan, the president basically abandoned the large military buildup that accompanied his first term in office. This scaling back of programs last year will have a multiplying effect over the next three to four years, dramatically reducing the level of military "current services," and deficit projections along with it. RALPH WEIGEL Bonds - Insurance Phone 827-2906 115 East Iron SUNDAY SPECIALS Roast Turkey and Dressing., Smothered Steak Pried Chipken $350 $350 $£95 Served with mashed potatoes & gravy, vegetable, salad & homemade dinner roll. FREE DESSERT DADDY'S I2O E. DIaniond-Sollnci BASIC PHOTOGRAPHY CLASSES NOW BEING FORMED ...Learn From A Professional 823-6077 - >ait*' _ S^SaK^SaMSvagB^^g^^ Kemp Bush, Kemp claim victories at convention WASHINGTON (AP) - As conservative activists wound up their annual convention Saturday, supporters of Vice President George Bush and Rep. Jack Kemp could point to conflicting surveys of how much support each has on the political right for the 1988 Republican presidential nomination. A poll of members of conservative organizations said 36.3 percent named Bush as their first choice to succeed President Reagan. Kemp was named by 16.9 percent. But a straw poll of delegates to the 13th annual Conservative Political Action Conference found 151 named Kemp, while only 25 picked Bush. The competing surveys generated the only controversy at the meeting after its chairman said backers of the New York congressman had orchestrated the straw poll and made an extra effort to get Kemp backers to participate. By the time David Keene, chairman of the American Conservative Union, released both surveys at a Saturday news conference, he was trying to avoid reviving the flap he had touched off the day before. "I'm not in the business anymore of making charges," he said. Keene said that most of the potential candidates for the GOP presidential nomination could find some good news in the survey C-PAC commissioned from pollster Arthur J. Finkelstein and Associates. At the same time, he said, the figures indicated that "today there is no candidate, or potential candidate, who can stand up and say he has a lock on conservative support.'' Keene pointed out that this was the first time in the history of C-PAC that the conservative movement was not totally committed, first to Sen. Barry Goldwater, R-Ariz., and then to Reagan. For that reason, the three-day conference attracted appearances from six potential presidential candidates — Bush, Kemp, the Rev. Pat Robertson, Senate Majority Leader Bob Dole, R-Kan., former U.N. Ambassador Jeane Kirkpatrick and former Gov. Pete du Pont of Delware. Du Pont, the last of the potential candidates to appear, extolled the marketplace as the answer to problems at home and abroad. "For most of the world's problems, we can — and should — send the creators of opportunity, the entrepreneurs of the American marketplace," he said. The former governor added that "the marketplace and only the marketplace can eliminate poverty in America." "Government institutionalizes poverty; government subsidizes it. Its bureaucrats live off of poverty. Government has to get out of the business of attempting to cure poverty ; only jobs can do that.'' Keene said the Finkelstein survey was conducted between Jan. 24 and 26, of a sample of 402 conservative activists. The margin of error was 5 percent. SALINA AUTO SALVAGE ' /;(• don ihflvr ' .ve i ,n qt'i' ' pif-phonf Ser / >< c ID 6*> < >' ies 1 Vj Miles North on Highway 81 827-5666 At the F.A.C.T.S. Financial Seminars you get the facts to steer by W hich route should you take on the financial highway. Will it be the fast lane of highest interest rates and the attendant risks? Or will you proceed at a more conservative pace? There are plenty of good banking alternatives to consider for your investments this year. But what about next year or five, even ten years from now? Will you be ready for the detours along the way? What about retirement or financing a college education? You can begin answering these questions at the 1986 FACTS (Financial Advisory Council To Salina) seminars. Each year we get out from behind our desks to share our knowledge with you at the FACTS seminars. You're familiar with our format. We present the same session twice in the same week — once on Monday mornings 9:30-11:30 and once on Tuesday evenings 7:30-9:30. All sessions will be in the community room of the Handibank South (at the Mid-State mall). There is no charge. February 10, 11 Monday 9:30-11:30 a.m. Tuesday 7:30-9:30 p.m. Find out where the economy is going and what the investment trends are. Speakers are Gerald February 17, 18 Monday 9:30-11:30 a.m. Tuesday 7:30-9:30 p.m. Investing your money doesn't necessarily mean putting all your eggs in one basket. You'll learn all about the many ways and places to invest. Find out the specifics on government securities, zero-coupon bonds and tax free investments. Speakers are Ted Haggart and Deanna Morgan. February 24, 25 Monday 9:30-11:30 a.m. Tuesday 7:30-9:30 p.m. Find out more specifics on investments. With CD rates below the double digits there are still plenty of good banking alternatives. Unit trusts, self-directed IRAs and mutual funds. Speaker is Bill Brelsford. March 3, 4 Monday 9:30-11:30 a.m. Tuesday 7:30-9:30 p.m. With the cost of a college education what it is today, you'll want to know all your financing options. Speaker is Margaret Frank, director of student financial aid at Marymount College. Shadwick, Ted Haggart and Bill Brelsford. MOfe fOr YOUr ITlOneV Information is the best financial service we offer. FIRST NATIONAL BANK AND TRUST COMPANY OF SAUNA ««, Handibank m A Service Company

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