# Presentation: 436486

## S.Con.Res. 23,The SenateMajorityBudget

- Senate Budget Committee - Don Nickles, Chairman

## The Senate Republican Majority...

- Must _grow the_ _economy_
- Must _win the war against terrorism_
- Must  _protect the homeland_
- Must _modernize Medicare_
- Must _maintain spending discipline_

**We can’t accomplish****these goals unless we**_**pass a budget**_**.**

- Senate Budget Committee - Don Nickles, Chairman

## A recession, a war, andan attack on America

- Deficits have returned due to a dramatic and _unforeseen_ deterioration in revenues and large spending increases.
- Revenues have fallen by 9 percent and spending has grown by 12 percent over the last two years.
- CBO says we would have recorded a budget deficit in 2002 if the 107th Congress had never enacted a single spending increase or tax cut.
- These trends are neither acceptable nor sustainable.

- Senate Budget Committee - Don Nickles, Chairman

## Revenues Down...Spending Up

- Senate Budget Committee - Don Nickles, Chairman

## The Senate Majority Budget

- Consistent with President Bush’s priorities
- Addresses critical national priorities now
- Reduces budget deficits over time as the economy grows stronger and threats abroad are addressed

- Senate Budget Committee - Don Nickles, Chairman

## The Senate Majority Budget Declining Deficits(% of GDP)

- Senate Budget Committee - Don Nickles, Chairman

## The Senate Majority Budget

- Total spending growth in 2004 = 4.4% (outlays)
- 	Average of last 5 years = 5.4% (outlays)
- Defense spending growth in 2004 = 2.0% (BA)
- 	Average of last 5 years = 7.6% (BA)
- Non-defense spending growth in 2004 = 2.9% (BA)
- 	Average of last 5 years = 7.9% (BA)

- Senate Budget Committee - Don Nickles, Chairman

## The Senate Majority Budget

- Senate Budget Committee - Don Nickles, Chairman

## The Senate Majority BudgetInvests in National Priorities

- $725 billion for an economic growth & job creation reconciliation bill,
- $400 billion for Medicare modernization,
- Highest spending ever for...
- Homeland security (18.4% increase)
- IDEA & Title 1 education ($2.2 billion increase)
- Veterans health (14.7% increase)
- Global AIDS relief ($450 million in 2004)
- Help for the uninsured ($50 billion reserve fund)

- Senate Budget Committee - Don Nickles, Chairman

## The Senate Majority BudgetCreates Growth & Jobs

- The Majority Budget provides _up to_ $725 billion to create and sustain economic growth.  Benefits of the President’s growth plan, based on an analysis by the Heritage Foundation, include:
- _JOBS:_  997,000 new jobs in 2004, and the total employment level would be 837,000 jobs higher on average from 2004 through 2013;
- _GROWTH:_  $84 billion higher GDP in 2004, and an annual average of $69 billion in additional GDP from 2004 through 2013;
- _INCOME:_  $178 billion in additional disposable income in 2004, and an annual average of $120 billion in additional disposable income from 2004 through 2013; and
- _DEFICITS:_  The net “cost” of the President’s plan on a dynamic basis falls by nearly 57% versus a static estimate, which could result in a substantially smaller deficits.

- Senate Budget Committee - Don Nickles, Chairman

## The Senate Majority BudgetPresident’s Dividend Policy

- Senate Budget Committee - Don Nickles, Chairman

## The Senate Majority BudgetModernizes Medicare

- S.Con.Res. 23 provides
- $400 billion for legislation that...
- strengthens and enhances the Medicare program,
- improves the access of beneficiaries to prescription drugs, and
- promotes geographic equity in Medicare payments.

- Senate Budget Committee - Don Nickles, Chairman

## The Senate Majority BudgetRestores Spending Discipline

- Temporary budget enforcement expires on  April 15, 2003.
- S.Con.Res. 23 restores and strengthens budget discipline by establishing...
- Enforceable caps on discretionary spending for 2003, 2004, and 2005 at levels consistent with the President’s request,
- Limits on advance appropriations and non-defense, non-homeland security emergency appropriations.
- A pay-as-you-go point of order to limit any mandatory spending increases or revenue decreases in excess of those provided for in the budget.

- Senate Budget Committee - Don Nickles, Chairman

## The Senate Majority Budget18.4% Increase in Homeland Security

- Senate Budget Committee - Don Nickles, Chairman

## The Senate Majority BudgetEducation Investments

- Senate Budget Committee - Don Nickles, Chairman

## The Senate Majority BudgetHighway Spending10% increase over President’s request

- Senate Budget Committee - Don Nickles, Chairman

## The Senate Majority BudgetRejects Tax Increases

- $602 billion of the “tax cuts” in the Senate Majority Budget are due to an assumption that the major elements of the 2001 bipartisan tax relief bill are not allowed to expire in 2010.
- CBO says allowing these tax cuts to expire would lower economic growth by about half a percent by 2013.
- Taxpayers would lose the 10% bracket, higher child credit, marriage penalty relief, death tax repeal, and education & IRA incentives.

- Senate Budget Committee - Don Nickles, Chairman

## The Senate Majority BudgetDoes not “raid” Social Security

- Senate Budget Committee - Don Nickles, Chairman