[From the Congressional Record, Jan. 26, 1973]

INTRODUCTION OF S. 565 BY SENATOR NUNN
OF GEORGIA

BUDGET AND EXPENDITURE CEILING

Mr. NUNN. Mr. President, the most crucial domestic problem facing our Nation today is the uncontrolled and seemingly uncontrollable Federal budget. The people of this Nation are fed up with wild Government spending and priorities which are determined many times by the pressures of the moment.

Appropriations and expenditures now appear to have little or no relevancy to sound fiscal planning. If we are to curb inflation and control the national debt, Congress must fulfill its duty. We must begin to control the appropriations and the expenditures of the Government, in practice as well as theory.

I am convinced that the people of this Nation want a budget which is not inflationary and which requires no tax increase, and I am certain that my colleagues share that opinion. I am also convinced that the vast majority of Americans agree with the constitutional principle requiring that priorities of expenditure be set by the legislative branch. However, the people of this Nation recognize that Congress has in reality lost control of the budget, and I believe that most Americans prefer Executive control of expenditures rather than no control at all.

While this public mood may be dangerous from a constitutional point of view, I believe that it is a reality. Mr. President, the time has come for Congress to reassert its proper constitutional responsibility of controlling the budget and setting priorities of expenditures that will not be altered by Executive whim, which is the case today. All of us have recently seen that the President has stepped forward and filled the vacuum left by our own inaction. The executive branch has impounded funds and set its own priorities, completely independent of legislative intent. America's budgetary affairs and priorities of expenditures are now being decided by faceless bureacrats who are not elected or even known by the American people.

Most Members of the Senate agree that the tilt of power has shifted too far toward the executive branch. We hear every day many cries for Congress to again assert its constitutional powers. Mr. President, we have two clear choices, as I see them. We can place sole blame on the Executive and ignore our own failings, or we can reassert our own constitutional prerogatives by adopting methods and procedures leading to a rational budgetary process which will enjoy the confidence of the American people. The shift in the exercise of constitutional authority back to Congress can only take place with a renewed assertion by Congress of its constitutional responsibility over the budget.

Mr. President, toward these ends, I am today introducing a resolution which establishes a new rule of the Senate to make bills containing new obligational authority not in order until we in the Senate establish a limit on the amount of new obligational authority which the Senate will approve for the fiscal year. This resolution requires that the Committee on Appropriations and the Committee on Finance, acting jointly, report to the Senate for its approval a resolution setting forth an appropriation ceiling for the fiscal year.

We can by the adoption of this rule show to all concerned that the U.S. Senate will be responsible in the management of the fiscal affairs of our Nation. By taking this step, we will clearly demonstrate that we are capable of self-discipline, and the Senate can then, with a more creditable voice, call for others to follow our lead. By the passage of this resolution the Senate will clearly require a ceiling on new obligational authority.

Recognizing that the Congress must also establish an expenditure ceiling if there is to be any meaningful attempt by the Congress to regulate Government spending, I have also introduced today a bill to be cited as the "Expenditure Control Act of 1973." This bill creates a rule in both Houses of Congress requiring Congress, after the submission of the budget by the President each fiscal year, to prescribe a limit on the total amount of outlays to be made by the Government during such fiscal year. The consideration of any bill or joint resolution providing new obligational authority would not be in order until the Congress has prescribed by law the limit on total outlays to be made in the fiscal year.

In order to regulate expenditures, the Expenditure Control Act of 1973 also requires the President to regulate outlays in accordance with congressional priorities. If any expenditures would exceed the limit set by Congress, the President, in carrying out the provisions of this act, would be required to reserve amounts proportionately in each functional category of the budget. This bill would assure that the legislative priorities be adhered to by preventing the arbitrary impoundment of funds by the President and by requiring pro rata reductions by the executive branch.

Mr. President, I submit that the resolution and bill being introduced today would have the following positive and practical results:

First. The people of this Nation will know how each and every Senator votes each year on the most crucial of all domestic legislative decisions the total dollars to be spent by the U.S. Government in each fiscal year.

Second. More meaningful priorities will necessarily result from an overall limit on appropriations. The proponents of various appropriation measures will have the burden not only of justifying the particular request for obligational authority, but also of presenting a case of its treatment as a budgetary priority when weighed against other requests.

Third. The Appropriations Committee and the Finance Committee will each contribute their expertise in recommending the limit to the Senate.

Fourth. The overall appropriations measures will by necessity have to be presented together rather than piecemeal, which is now the case, because of practical considerations. We will have in effect one appropriation bill which will be presented to this body.

Fifth. The legislative branch, rather than the executive branch, will be setting priorities for obligational authority as well as expenditure outlays, thus fulfilling the intent of the Consitution.

Mr. President, I ask my colleagues to favorably consider these two companion proposals which will result in a more responsible and responsive legislative branch.

Mr. ROBERT C. BYRD. Mr. President, I wish to congratulate the distinguished junior Senator from Georgia (Mr. Nunn) on the splendid speech he has just made. I think it reflects a great deal of consideration, thought, and preparation. I think that he has touched on a very important matter, one which is of great interest not only to those of us who serve here in the Senate, but also to all of the American people. I commend him for his foresight, vision, and for his constructive proposals.

Mr. NUNN. Mr. President, I ask unanimous consent that a summary of the bill and the resolution, as well as the measures themselves, be printed in the Record immediately following my remarks.

There being no objection, the bill and summary were ordered to be printed in the Record, as follows:

93D CONGRESS 18T SESSION

S. 703

IN THE SENATE OF THE UNITED STATES

FEBRUARY 1, 1973

Mr. BELLMON introduced the following bill; which was read twice and referred to the Committee on Government Operations

A BILL

To control Federal spending by requiring an annual ceiling on expenditures and new obligational authority.

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Be it enacted by the Senate and House of Representa

2 tives of the United States of America in Congress assembled,

3 That this Act may be cited as the "Fiscal Responsibility 4 Act".

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ANNUAL CEILINGS ON EXPENDITURES AND NEW

OBLIGATIONAL AUTHORITY

SEC. 2. (a) After the submission of the Budget of 8 the United States Government and upon recommendation 9 of the President for each fiscal year (beginning with the

10 fiscal year ending June 30, 1974), the Congress shall, by 11 law, prescribe a limit on

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(1) the total amount of expenditures and net lending to be made by the United States Government during

such fiscal year, and

(2) the total amount of new obligational authority and loan authority to be made available for such fiscal

year.

7 Provided, That no change in a limitation once established 8 for the fiscal year by the provisions of this subsection shall 9 be made except by an affirmative vote of two-thirds of the 10 membership of the House of Representatives and the Senate 11 present and voting.

12 (b) (1) Notwithstanding the provisions of any other 13 law, the President shall, in accordance with paragraph (2), 14 reserve from expenditure and net lending during each fiscal 15 year, from appropriations or other obligational authority 16 otherwise made available, such amounts as may be necessary 17 to keep expenditures and net lending during the fiscal year 18 within the limit on the total amount prescribed for the fiscal 19 year pursuant to subsection (a) (1).

20 (2) In carrying out the provisions of paragraph (1) 21 for any fiscal year, the President shall reserve amounts 22 proportionately from appropriations or other obligational 23 authority available for such fiscal year for all programs and 24 activities of the Government (other than expenditures for 25 interest, veterans' benefits and services, payment from social

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