[Appendix, Budget of the United States Government, Fiscal Year 1998]
[Page 1147-1149]


                     THE BUDGET FOR FISCAL YEAR 1998

[[Page 1147]]

 
                          RESCISSION PROPOSALS

    This budget contains proposals to reduce 1997 spending by $5.2 
billion. These proposed reductions include $0.4 billion in proposed 
rescissions detailed below and $4.8 billion in reduced limitations and 
other proposed savings detailed in the Supplemental Proposals chapter of 
the Budget.

    Under the provisions of the Impoundment Control Act of 1974 (Public 
Law 93-344), whenever the President proposes a rescission of enacted 
appropriations, a special message must be sent to the Congress giving 
details of the proposals. Included below are related budget schedules 
and narrative explanations of proposals submitted in a special message 
at the time this budget was transmitted.

                        Department of Agriculture


                      FOREIGN AGRICULTURAL SERVICE

              P.L. 480 Grants--Titles I (OFD), II, and III

                          (Rescission proposal)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2278-5-1-151      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Ocean freight differential........                      -4
                                           ---------   ---------  ----------
10.00   Total obligations (object class 
          41.0).........................                      -4
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                      -4
23.95 New obligations...................                       4
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.35 Appropriation rescission proposal 
        (R97-1).........................                      -4
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Appropriation                                  -2
73.10 New obligations...................                      -4
73.20 Total outlays (gross).............                       2           1
74.40 Unpaid obligations, end of year: 
        Obligated balance: Appropriation                      -2
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority                      -2
86.93 Outlays from current balances.....                                  -1
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........                      -2          -1
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                      -4
90.00 Outlays...........................                      -2          -1
---------------------------------------------------------------------------

    The Administration and the Congress agreed to make market 
development the primary purpose of the P.L. 480 direct credit program in 
the 1996 Farm Bill. This streamlined focus allows for a greater 
targeting of program resources on the most promising market development 
opportunities. This $3.5 million rescission of Title I Ocean Freight 
Differential funds, when combined with a proposed rescission of $46.5 
million in subsidy budget authority in the P.L. 480 direct credit 
program account, totals a proposed $50 million reduction that would 
bring the net 1997 budget authority for the program as a whole to $151 
million. Commodity shipments would be reduced by approximately 200,000 
metric tons as a result of this proposed rescission. However, 
allocations of Title I commodity assistance that have already been 
announced for 1997 would not be affected by the proposed rescission 
because the reduction in program funding will be taken from a reserve of 
unallocated funds and from unobligated funds carried over from 1996.

                                <F-dash>

                        P.L. 480 Program Account

                          (Rescission proposal)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2277-5-1-351      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total obligations (object class 
        41.0)...........................                     -46
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                     -46
23.95 New obligations...................                      46
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.35 Appropriation rescission proposal 
        (R97-2).........................                     -46
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Appropriation                                 -20
73.10 New obligations...................                     -46
73.20 Total outlays (gross).............                      26          17
74.40 Unpaid obligations, end of year: 
        Obligated balance: Appropriation                     -20          -3
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority                     -26
86.93 Outlays from current balances.....                                 -17
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........                     -26         -17
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                     -46
90.00 Outlays...........................                     -26         -17
---------------------------------------------------------------------------

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in 
                            millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2277-5-1-351      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
1150  Direct loan levels................                     -46
                                           ---------   ---------  ----------
1159    Total direct loan levels........                     -46
    Direct loan subsidy (in percent):
1320  Subsidy rate......................                   81.79        0.00
                                           ---------   ---------  ----------
1329    Weighted average subsidy rate...                   81.79        0.00
    Direct loan subsidy budget authority:
1330  Subsidy budget authority..........                     -46
1330  Subsidy budget authority--Re-
        estimate........................
                                           ---------   ---------  ----------
1339    Total subsidy budget authority..                     -46
    Direct loan subsidy outlays:
1340  Subsidy outlays...................                     -26         -18
                                           ---------   ---------  ----------
1349    Total subsidy outlays...........                     -26         -18
---------------------------------------------------------------------------

    The Administration and the Congress agreed to make market 
development the primary purpose of the P.L. 480 Title I direct credit 
program in the 1996 Farm Bill. This streamlined focus allows for a 
greater targeting of program resources on the most promising market 
development opportunities. This $46.5 million proposed rescission in 
subsidy budget authority, when combined with a rescission of $3.5 
million Title I Ocean Freight Differential funds in the P.L. 480 Grant 
account totals a proposed $50 million reduction that would bring the net 
1997 budget authority for the program as a

[[Page 1148]]

whole to $151 million. Commodity shipments would be reduced by 
approximately 200,000 metric tons as a result of this proposed 
rescission. However, allocations of Title I commodity assistance that 
have already been announced for 1997 would not be affected by the 
proposed rescission because the reduction in program funding will be 
taken from a reserve of unallocated funds and from unobligated funds 
carried over from 1996.

                                <F-dash>

                     Department of Defense--Military


                           MILITARY PERSONNEL

                         Reserve Personnel, Army

                          (Rescission proposal)

                         Program and Financing (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   21-2070-5-1-051    1996 actual      1997 est.     1998 est.      1999 est.
-----------------------------------------------------------------------------------------------

    Obligations by program activity:

10.00 Total obligations (object class 
        11.7)...........................                        -20
--------------------------------------------------------------------------------------------------
    Budgetary resources available for 
        obligation:

22.00 New budget authority (gross)......                        -20
23.95 New obligations...................                         20
--------------------------------------------------------------------------------------------------
    New budget authority (gross), 
        detail:

40.35 Appropriation rescission proposal 
        (R97-3).........................                        -20
--------------------------------------------------------------------------------------------------
    Change in unpaid obligations:

72.40 Unpaid obligations, start of year: 
        Obligated balance: Appropriation                                       -2             -1
73.10 New obligations...................                        -20
73.20 Total outlays (gross).............                         18             1
74.40 Unpaid obligations, end of year: 
        Obligated balance: Appropriation                         -2            -1
--------------------------------------------------------------------------------------------------
    Outlays (gross), detail:

86.90 Outlays from new current authority                        -18
86.93 Outlays from current balances.....                                       -1
                                        ------------ --------------  ------------  -------------
87.00   Total outlays (gross)...........                        -18            -1
--------------------------------------------------------------------------------------------------
    Net budget authority and outlays:

89.00 Budget authority..................                        -20
90.00 Outlays...........................                        -18            -1
-----------------------------------------------------------------------------------------------

    Due to a change in training schedules, the funds proposed for 
rescission are in excess of requirements and are not needed for pay and 
allowances of reserve personnel in 1997.

                                <F-dash>


                        OPERATION AND MAINTENANCE

                 Operation and Maintenance, Defense-Wide

                          (Rescission proposal)

                         Program and Financing (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   97-0100-5-1-051    1996 actual      1997 est.     1998 est.      1999 est.
-----------------------------------------------------------------------------------------------

    Obligations by program activity:

10.00 Total obligations (object class 
        25.2)...........................                        -10
--------------------------------------------------------------------------------------------------
    Budgetary resources available for 
        obligation:

22.00 New budget authority (gross)......                        -10
23.95 New obligations...................                         10
--------------------------------------------------------------------------------------------------
    New budget authority (gross), 
        detail:

40.35 Appropriation rescission proposal 
        (R97-4).........................                        -10
--------------------------------------------------------------------------------------------------
    Change in unpaid obligations:

72.40 Unpaid obligations, start of year: 
        Obligated balance: Appropriation                                       -3             -1
73.10 New obligations...................                        -10
73.20 Total outlays (gross).............                          7             2
74.40 Unpaid obligations, end of year: 
        Obligated balance: Appropriation                         -3            -1             -1
--------------------------------------------------------------------------------------------------
    Outlays (gross), detail:

86.90 Outlays from new current authority                         -7
86.93 Outlays from current balances.....                                       -2
                                        ------------ --------------  ------------  -------------
87.00   Total outlays (gross)...........                         -7            -2
--------------------------------------------------------------------------------------------------
    Net budget authority and outlays:

89.00 Budget authority..................                        -10
90.00 Outlays...........................                         -7            -2
-----------------------------------------------------------------------------------------------

    Due to slight variations in force structure and training schedules, 
the funds proposed for rescission are in excess of requirements and are 
not needed for training and other activities funded by this account. 
Funds would be rescinded from low-priority Reserve programs.

                                <F-dash>


                               PROCUREMENT

                  National Guard and Reserve Equipment

                          (Rescission proposal)

                         Program and Financing (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   97-0350-5-1-051    1996 actual      1997 est.     1998 est.      1999 est.
-----------------------------------------------------------------------------------------------

    Obligations by program activity:

10.00 Total obligations (object class 
        31.0)...........................                        -21           -13             -8
--------------------------------------------------------------------------------------------------
    Budgetary resources available for 
        obligation:

21.40 Unobligated balance available, 
        start of year: Uninvested 
        balance.........................                                      -21             -8
22.00 New budget authority (gross)......                        -42
                                        ------------ --------------  ------------  -------------
23.90   Total budgetary resources 
          available for obligation......                        -42           -21             -8
23.95 New obligations...................                         21            13              8
24.40 Unobligated balance available, end 
        of year: Uninvested balance.....                        -21            -8
--------------------------------------------------------------------------------------------------
    New budget authority (gross), 
        detail:

40.35 Appropriation rescission proposal 
        (R97-5).........................                        -42
--------------------------------------------------------------------------------------------------
    Change in unpaid obligations:

72.40 Unpaid obligations, start of year: 
        Obligated balance: Appropriation                                      -14            -12
73.10 New obligations...................                        -21           -13             -8
73.20 Total outlays (gross).............                          7            15             10
74.40 Unpaid obligations, end of year: 
        Obligated balance: Appropriation                        -14           -12            -11
--------------------------------------------------------------------------------------------------
    Outlays (gross), detail:

86.90 Outlays from new current authority                         -7
86.93 Outlays from current balances.....                                      -15            -10
                                        ------------ --------------  ------------  -------------
87.00   Total outlays (gross)...........                         -7           -15            -10
--------------------------------------------------------------------------------------------------
    Net budget authority and outlays:

89.00 Budget authority..................                        -42
90.00 Outlays...........................                         -7           -15            -10
-----------------------------------------------------------------------------------------------

                              Budget Plan (in millions of dollars)

                                 Outlays
-----------------------------------------------------------------------------------------------
Identification code   97-0350-5-1-051    1996 actual      1997 est.     1998 est.      1999 est.
-----------------------------------------------------------------------------------------------
0702  Equipment.........................                        -42
-----------------------------------------------------------------------------------------------

    The funds proposed for rescission are in excess of amounts necessary 
to meet all required equipment needs. Rescission of these funds would 
not affect military readiness.

                                <F-dash>

[[Page 1149]]

               Department of Housing and Urban Development


                   PUBLIC AND INDIAN HOUSING PROGRAMS

                Annual Contributions for Assisted Housing

                          (Rescission proposal)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 86-0164-5-1-604      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total obligations (object class 
        41.0)...........................                    -250
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                    -250
23.95 New obligations...................                     250
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.35 Appropriation rescission proposal 
        (R97-6).........................                    -250
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Appropriation                                -240
73.10 New obligations...................                    -250
73.20 Total outlays (gross).............                      10          25
74.40 Unpaid obligations, end of year: 
        Obligated balance: Appropriation                    -240        -215
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority                     -10
86.93 Outlays from current balances.....                                 -25
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........                     -10         -25
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                    -250
90.00 Outlays...........................                     -10         -25
---------------------------------------------------------------------------

    This proposal would rescind approximately $250 million of obligated 
balances estimated to be recaptured during 1997. These recaptures will 
result from the elimination of excess funds available on some long-term 
section 8 contracts, the cancellation of reservations for public housing 
development projects that are unable to proceed to construction, and the 
recapture of funds from inactive programs. It is anticipated that $325 
million in recaptures will be realized during 1997. Pursuant to section 
214 of P.L. 104-204, $25 million of these recaptures will be transferred 
to the Housing Opportunities for Persons with AIDS (HOPWA) program and 
$50 million will be used for the Preservation program. The remaining 
amount, approximately $250 million, is proposed for rescission.