REDUCING THE DEFICIT:
SPENDING AND REVENUE OPTIONS

The Congress of the United States
Congressional Budget Office
March 1997

Unless otherwise indicated, all years referred to in this report are fiscal years.
Numbers in the text and tables of this report may not add to totals because of rounding.

Preface

TWO DEFENSE AND INTERNATIONAL DISCRETIONARY SPENDING

Strategic Systems

DEF-01 Reduce Nuclear Delivery Systems Within Overall Limits of Start II
DEF-02 Terminate Production of D5 Missiles After 1997
DEF-03 Reduce the Scope of DOE's Stockpile Stewardship and Management Program
DEF-04 Focus Theater Missile Defense Efforts on Core Systems

Navy/Marine Corps Programs

DEF-05 Cancel the New Attack Submarine
DEF-06 Reduce the Number of Aircraft Carriers and Air Wings to 10
DEF-07 Reduce Procurement of DDG-51 Destroyers
DEF-08 Terminate the Arsenal Ship Program
DEF-09 Cancel the Upgrade of the Navy's F/A-18 Fighter and Buy the Current Model
DEF-10 Cancel the Marine Corps's V-22 Aircraft Program and Buy CH-53E Helicopters

Air Force Programs

DEF-11 Reduce Air Force Tactical Forces
DEF-12 Cancel the Air Force's F-22 Aircraft Program
DEF-13 Buy No More Than 72 C-17s and Preposition Equipment Instead
DEF-14 Defer Modernization of Tactical Airlift
DEF-15 Retire Excess KC-135 Tankers
DEF-16 Make the Army Responsible for Close Air Support

Army Programs

DEF-17 Reduce the Number of Army Light Divisions
DEF-18 Eliminate Four Guard Divisions
DEF-19 Cancel the Army's Comanche Helicopter Program

Other Investment

DEF-20 Cut Spending for Dual-Use Technology Programs to Historical Levels

Military Personnel

DEF-21 Assign a Wartime Function to Military Personnel in Training or Transit
DEF-22 Restructure Military Housing Allowances
DEF-23 Reduce the Basic Allowance for Subsistence of Enlisted Personnel
DEF-24 Restructure Officer Accession Programs
DEF-25 Restructure the Bonus Program for Nuclear Officers
DEF-26 Deny Unemployment Compensation to Service Members Who Voluntarily Leave Military Service
DEF-27 Merge the Army National Guard and the Army Reserve

Military Health Care

DEF-28 Adopt HMO Staffing Patterns in Military Medical Facilities
DEF-29 Revise Cost Sharing for Military Health Care Benefits
DEF-30 Downsize the Military Medical System
DEF-31 Close the Uniformed Services University of the Health Sciences

Operation and Maintenance

DEF-32 Close and Realign Additional Military Bases
DEF-33 Reduce Professional Development Education
DEF-34 Reduce Funding for DOE's Cleanup Program
DEF-35 Increase Competition Between Private-Sector and Department of Defense Housing
DEF-36 Reduce Subsidies for Military Commissaries
DEF-37 Consolidate the Military Exchanges and Include Them in the Federal Budget

International Programs

DEF-38 Reduce State Department Funding and Eliminate Miscellaneous Foreign Affairs Activities
DEF-39 Eliminate Overseas Broadcasting
DEF-40 Recover the Full Cost of Military Exports
DEF-41 Reduce Security Assistance
DEF-42 Eliminate the Export-Import Bank, Overseas Private Investment Corporation, and Trade and Development Agency
DEF-43 Cease Supporting Multilateral Development Banks

THREE DOMESTIC DISCRETIONARY SPENDING

DOM-01 Cancel the International Space Station Program
DOM-02 Cancel NASA's Earth Observation System
DOM-03 Eliminate the Experimental Program to Stimulate Competitive Research

APPENDIXES