18

1 (c)), 403, and 502 of this Act are enacted by the Con

2 gress

15

(1) as an exercise of the rulemaking powers of the Senate and the House of Representatives, respectively,

and as such they shall be considered as part of the rules of each House, respectively, or of that House to which they specifically apply; and such rules shall supersede

other rules only to the extent that they are inconsistent therewith; and

(2) with full recognition of the constitutional right of either House to change such rules (so far as relating to the procedure in such House) at any time, in the

same manner and to the same extent as in the case of

any other rule of such House.

(b) For purposes of such sections, the members of the 16 Joint Committee on Atomic Energy who are Members of 17 the House of Representatives shall be deemed to be a com18 mittee of the House, and the members of such Joint Com19 mittee who are Members of the Senate shall be deemed to 20 be a committee of the Senate.

NEWS RELEASE OF SENATOR BILL BROCK

OF TENNESSEE

(Tuesday, Jan. 9, 1973)

WASHINGTON, D.C.-Senator Bill Brock (R-Tenn) said here today his legislation to curb excess federal spending offers a way to avoid an almost certain fiscal crisis in this nation.

Speaking in the U.S. Senate, Brock said, "Congress has lost control over its budgetary process and, as a result, is spending this nation into a financial disaster or a tax increase.

"Federal spending has increased over 100% in the past 10 years and federal deficits from fiscal 1970 through 1973 are estimated to be over $104 billion. This is almost one-fifth of our entire national debt. "This fiscal crisis affects every American," he added. "An average family's annual share of the federal budget has risen from $2,000 ten years ago to $3,700 today, an increase of over 80%.

"Excessive spending continues to push the cost of food so high that even meat is almost out of reach of the average family.

"In addition, cost of housing has escalated to the point that a family finds it almost impossible to own its own home without a public subsidy."

Brock said his legislation would designate a joint congressional committee to evaluate the federal budget in terms of priorities, project all major spending over a five-year period, evaluate all spending programs at least once every three years, pilot test every proposed major federal program and require all federal expenditure programs to be appropriated annually by Congress.

"To date, huge deficits are funding the new federal programs, but the day of reckoning is near. The country can no longer afford to engage in the buy now, pay later syndrome for federal spending because the bills are coming due now," Brock said.

The Senator warned that unless excessive spending were curtailed, there inevitably would be the need for a tax increase to avoid spiralling inflation. He said that the answer does not lie with a tax increase but rather regaining control over federal spending. The following is a speech given by Senator Bill Brock (R-Tenn.) on January 9, 1973, in conjunction with his introduction of a major piece of legislation to reform congressional spending procedures:

Mr. BROCK. Mr. President. Our Nation is faced with a national crisis brought about by uncontrolled and misdirected spending.

First, take a look at Federal expenditures from an historical perspective. Would you believe that the Federal Government will spend more in the first 10 months of this fiscal year than it did between 1789 and 1942, the first 153 years of the Republic since the adoption of the Constitution?

It is estimated that the Federal Government will spend over $250 billion this fiscal year-that's a lot of money.

Now, we think nothing of talking in terms of millions and billions of dollars, but think just what is a billion of anything. If you started your clock way back there in the year

one, it would not even have ticked off a billion minutes if you stopped it today.

Let's face it, the Feedral Government has a quarter of a trillion dollars a year spending problem-on the average it spends $28 million every hour of the day and night-or almost one-half million per minute.

The fiscal crisis affects every American.

The cost of running the Federal Government has increased by two-thirds from 1958 to 1971. And it still is increasing. An average family's annual share of the federal budget has risen from $2,000 ten years ago to $3,700 today-an increase of over 80%.

Excessive spending continues to push the cost of food so high that even meat is almost out of reach of the average family.

And now we are faced with a new kind of inflation. There are pressures to clean up the air and water, foster consumerism and other social goals.

Social programs already account for about half of Federal spending for the 1973 fiscal year which started July 1.

At present, however, Congress lacks procedures for determining spending goals and priorities. To remedy this I have introduced S. 40 which will reform Congressional procedure to:

First.-Designate a Joint Congressional Committee to formulate a Legislative Budget to evaluate the Federal Budget in terms of national priorities;

Second. Require the projection of all major expenditures over a five-year period;

Third. Require all major spending programs to be evaluated at least once every three years-zero based budgeting;

Fourth.-Require consideration of pilot testing of proposed major federal programs; and,

Fifth-Require all federal expenditure programs to be appropriated annually by Congress.

THE FISCAL CRISIS TODAY

Today, the country is in a fiscal crisis because of skyrocketing Federal expenditures. Federal spending is literally out of control.

Expenditures at all levels of government-Federal, State, and Local-in the United States will exceed $370 billion this year. This is an increase from about 18 percent to over 33 percent of the gross national product in the last twenty-five years. These statistics demonstrate that the governmental sector is growing more than twice as fast as the private sector of the American economy.

All too often Congress only will increase rather than prune the Executive budget.

As a consequence, the Federal spending has increased over 100% in the past 10 years from $111 billion in fiscal year 1963 to an estimate in excess of $250 billion in fiscal year 1973.

During the same 10 year span, Federal spending for defense, space and foreign activities are up 47% from $58.9 billion in fiscal year 1963 to an estimated $86.3 billion for fiscal year 1973.

In comparison, Federal spending for all civilian programs are up 224% from $52.4 billion in fiscal year 1963 to an estimated $159.7 billion for fiscal year 1973.

This past January 1, 1973, Federal employees received a three and one-half billion dollar pay boost as required by law.

The number of employees in all levels of government becomes meaningful if you realize that in 1900, government employed less than one million people. Today, almost 13 million persons are government employees. One out of every five workers is a government employee.

To date, huge deficits are funding the new Federal programs-but the day of reckoning is near.

The country can no longer afford to engage in the "buy now-pay later" syndrome for Federal spending because the bills are coming due now.

Federal deficits from fiscal 1970 through 1973 are estimated to be over $104 billion. This is almost one-fifth of our entire national debt.

It is hard to imagine that behind HEW and defense appropriations, the Federal Government's third largest expenditure is the $21 billion interest price tag on the national debtwhich is approaching one-half trillion dollars.

It is quite apparent that the growth of federal expenditures in the past 10 years has brought us to a crisis stage. This fantastic growth of government also has resulted in skyrocketing inflation.

This inflation has caused the cost of housing to escalate to the point that the average family finds it almost impossible to own its own home without a public subsidy.

There is one solution to this fiscal crisis-bring Federal spending under control. Only if this is done will we be able to provide essential services without an increase in taxes or inflation.

WHY IS FEDERAL SPENDING OUT OF CONTROL-PRESENT CONGRESSIONAL BUDGETARY PROCESS

The first reason why spending is out of control is because the present congressional budgetary process is uncontrollable. It is amazing that the Federal Government's legislative branch, the largest single spender in the world, never adopts a budget of its own.

Almost every business, city, or municipality adopts some sort of budget before it starts making expenditures for that

year.

Of course, the President with the help of the Executive's Office of Management and Budget, proposes a budget. Congress takes a good look at it but never completely accepts it or proposes an alternative budget of its own.

92-496 O-73-3

Congress uses one resemblance to fiscal responsibility. It at least keeps track of the money it spends-but hopes the deficit will not get too much publicity at the end of the year.

Under present budgetary procedure, the Administration submits a detailed budget in January, but no single committee chairman or congressional committee ever looks at receipts and expenditures at one time.

At no point will any Congressional committee say: "Here's how much we want to spend. Here's what it's for. Here's how we'll get the money to pay for it."

Or, better still: "Here's all that we have to spend. And here's how we'll stretch it to cover our priority needs."

Instead, Congress will vote on expenditures for everything from pensions for retired military personnel to aid to local school districts in more than a dozen separate appropriation bills.

At no point will the Appropriations Committees of either House coordinate its actions with the tax writing committees who are responsible for raising the revenue to pay the bills.

Added to this, over 70 percent or $180 billion of the budget for this fiscal year consists of "relatively uncontrollable" expenditures. There is no real congressional control over these expenditures.

Over $46 billion of this amount will go for contracts and obligations made in prior years. These were voted on by some Congressmen no longer in Congress. Some of these obligations won't be paid off until the year 2010.

Over $128 billion of this "relatively uncontrollable" spending will go for open-ended programs and those with fixed

costs.

Let's take a closer look at this procedure of open-ended programs.

For example, take the Federal matching programs for social services. One dollar of state money can get $3 of Federal

money.

Without any congressional scrutiny, the $73 million expended in fiscal year 1962 jumped from $1.5 billion expended last year to applications for over $4.7 billion in the current fiscal year, and with estimates of $6 to $10 billion for the 1974 fiscal year.

Funding was automatic-whether or not the program was getting any results. This practice will not last forever because an amendment to the Revenue Sharing Act placed a $2.5 billion limitation on its funding.

Congress should avoid setting up such permanent and uncontrollable mechanisms. All expenditures should come under the normal appropriation process.

Congress refuses to consider Federal expenditures as an important instrument of economic policy. It merely sets up programs without any meaningful legislative review. We need a systematic budgeting process to coordinate Federal expenditures.