Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-01-06
$40 Billion Cut
From Proposed Budget

$40 Billion Cut
From Proposed Budget
Government efficiency and
economy remain essential to
steady progress toward q ball
anced budget. More than SO
billion were cut from the SPEND
ing program proposed In the
budget of January 8, 1858. Ex-
penditures of that year were
$61a billion below those Of the
previous year. In the current
fiscal year. Government spend
ing will be nearly $4h billion
less than in the Ascal year
which ended last June 80. New
spending authority has been
held below expenditures, reduce
ing Government obligations ac-
cumulated over the years.
Last year we had q large tax
cut and, for the first time in
rs years. a basic revision of
Federal tax laws. It is now
clear that defense and other
essential Government costs
must remain at a level pre-
Guiding further tax reductions
this year. Although excise and
corporation income taxes must,
therefore, be continued at their
present rates, further tax cuts
will be possible when justified
by lower expenditures and by
revenue increases arising from
the Nations economic growth.
! am hopeful that such reduce
tions can be made next year.
At the foundation Of our
economic growth are the raw
materials and energy produced
from our minerals and fuels,
lands and forests. and water
resources. With respect to them.
! believe that the Nation must
adhere to three fundamental
policies: First. to develop. wisely
use and conserve basic resources
from generation to generation;
second, to follow the historic
pattern Of developing these re-
sources primarily by private
citizens under fair provisions
Of law, including restraints for
proper conservation; and, third.
to treat resource development
as a partnership undertaking
a partnership In which the par
ticipatiOn OF private citizens
and State and local govern
nlents Is as necessary as Fed
eral participation.
This policy Of partnership and
cooperation is producing good
results, most Immediately no.
ticeable in respect to water re-
sources. First, it has encouraged
local public bodies and private
citizens to plan their own power
sources. Increasing numbers Of
applications to the Federal
Power Commission to conduct
surveys and prepare plans for
power development, notably in
the Columbia River Basin, are
evidence Of local response.
Second. the Federal Govern
ment and local and private or
CARNATIONS have been encour-
aged to coordinate their devel-
opments. This is important
because Federal hydroelectric
developments supply but q small
fraction Of the Nations power
needs. Such partnership projects
as Priest Rapids in Washington,
the Coosa River development in
Alabama, and Markham Ferry
in Oklahom already have the
approval Of the Congress. This
year justifiable projects Of a
similar nature win again have
administration support.
Third, the Federal Govern
ment must shoulder Its own
partnership obligations by un-
dertaking projects Of such COM
plexity and size that their sue
cess requires Federal Develop
ment. In keeping with this prin-
ciple. / again urge the Congress
TO approve the development OF
the Upper Colorado River Basin
TO conserve and assure better use
of precious water essential to
the future Of the West.
In addition. the 1855 budget
will recommend appropriations
to start six new reclamation and
more than 80 new Corps Of En-
gineers projects Of varying size.
Going projects and investiga-
tions Of potential new resource
developments win be continued.
Although this partnership APP
proach Is producing encouraging
results. its fun success requires
. Nationwide comprehensive
water resources policy firmly
based in law. Such q policy Is
under preparation and when
completed win be submitted to
the Congress.
Special Message
On Highwoy Progr0ms
In the interest or their proper
conservation, development and