March 25, 1999

MEMORANDUM TO: OPINION LEADERS

FROM: GARY SCHMITT

SUBJECT: Defense

The Senate and House Budget Committees have completed work on their respective budget resolutions for fiscal 2000. Both resolutions supposedly call for an increase in defense spending. However, like the President's budget proposal, the increase is one in name only.

According to the Congressional Budget Office, defense outlays under the Clinton Administration budget proposal for FY 2000 total $284.5 billion. Under the GOP-written budget plans, authorized outlays will total only $275.8 billion — almost $9 billion less than what the president has proposed.

The House and the Senate Budget Committees have obscured what they have done by adding some $8 billion in budget authority for this coming year for defense over and above the president's budget request. But, under the current law governing the federal budget, the key figure is total outlays. Without an increase in authorized outlays to match an increase in budget authority, the defense department cannot actually spend that additional money. In short, congressional increases in budget authority are empty promises until they are accompanied by an increase in authorized outlays.

President's Budget (CBO Est.) 2000 2000 to 2004
Budget Authority $281.7 b $1,521.8 b
Outlays $284.5 b $1,485.0 b

Congressional Budget Resolution 2000 2000 to 2004
Budget Authority $290.0 b $1,551.5 b
Outlays $275.8 b $1,474.8 b

Congressional Proposal vs President's 2000 2000 to 2004
Budget Authority + $8.3 b + $29.8 b
Outlays - $8.7 b - $10.2 b

The Senate is now debating its budget resolution. Conservatives should not accept this phony increase and should insist on a program of real, sustained growth in defense spending.