The House Budget Committee voted late yesterday to spend twice as much as President Carter has proposed on job creation programs over the next eight months.
The Budget Committee followed the recommendations of its chairman, Rep. Robert N. Giaimo (D-Conn.), and voted to spend nearly $3.5 billion on a variety of job creation measures, compared with Carter's recommended $1.8 billion.
But the committee approved a tax reduction package of $13.8 billion, identical to the size proposed by Carter as part of his two-pronged program to stimulate the economy.
Carter's tax program - which the Ways and Means Committee, not the Budget Committee, must pass on - calls for an increase in the standard deduction increases in business tax credits, a $50-a-head rebate to taxpayers, and special $50 payouts to Social Security recipients.
While the program approved the the House Budget Committee would spend substantially more than the one put forth by the President, committee economists said they could not say precisely how many more jobs their package would create because the President has not released details on all the programs he proposed.
Testifying before the House Ways and Means Committee Wednesday, Treasury Secretary W. Michael Blumenthal said the adminitration's programs will create 760,000 public service jobs by fiscal 1978.
"The Labor Department does not believe that it can efficiently manage any larger expansion in so short a time," Blumenthal said. Carter's stimulus proposals were for two years.
In fiscal 1978, which starts next October, the administration will substantially increase its jobs spending to $7.6 billion. Blumenthal said the administration will spend $1.7 billion this year under Carter's proposals, while the Budget Committee calculated it would be $1.8 billion.
The committee said its jobs programs would create the equivalent of more than a million jobs this fiscal year.
Giaimo said Congress thinks that jobs can be created much faster than the administration does and that the committee proposals hold "greater promise for achieving the President's own economic goals - 6.7 to 6.9 per cent unemployment level at the end of this year - than his own package." The December jobless rate was 7.8 per cent.
Rep. Omar Burleson (D-Tex.) sought to hold the jobs spending level to the one proposed by Carter, but his motion was defeated 14 to 11. All eight Republican members of the committee joined three - Burleson, Otis Pike of New York and Jim Mattox of Texas - in an attempt to hold spending down.
The final budget resolution was approved on a straight party vote, 15 to 8. It will now go to the House floor. The Senate Budget Committee will hold hearings today and formally take up the Carter stimulus package next week.
Both houses plan to complete action on the federal budget amendments by the end of the month. Most appropriations or tax changes proposed by Carter cannot be acted on until Congress makes changes in the budget resolution it approved last fall.
Besides the Carter package, the budget committees must also deal with changes in revenue and spending estimates that have happened since September. Most of the changes have come about because the economy was weaker in the fall and winter than expected.
Giaimo said that the higher spending that he proposed and the committee approved would be directed at those hardest hit by the recession - youth and minorities, states and local communities and the construction industry.
Rep. Parren Mitchell (D-Md.) criticized the package, although he voted for it over the smaller Carter package. Mitchell charged that even the Giaimo package makes no "dent" in the unemployment problem.
Nancy Teeters, chief economist for the House committee, said the combination of tax cuts, rebates and the jobs programs would create 2-million more jobs by the end of the current fiscal year. One million would come from the general stimulus package and 1 million would come from public service proposals, she said. Current law provides about 300,000 public service jobs.
Under the House Budget Committee program, the government would spend nearly $200 million more on counter-cyclical revenue sharing than Carter proposed, $300 million more on accelerated public works and $300 million more on employment and training programs.
The committee also proposed spending another $850 million in several programs - such as reimbursing localities for environmental construction, highway and railroad construction, and an older citizens employment program - which were not in Carter's package.
The committee will take up the second year of the Carter economic package when it begins to work on the fiscal 1978 budget next month.