The reconciliation bill sent to the president yesterday makes more than $35 billion in budget cuts starting Oct. 1. Category by category, the main ones: Jobs
In the largest cut in the bill, in immediate terms, the once-huge public service employment program that provided jobs for 300,000 people earlier this year was killed. The $200 million Young Adult Conservation Corps also was killed, but a threatened training program for jobless youth was preserved, although funded at a reduced level. Overall savings from programs under the Comprehensive Employment and Training Act (CETA): $5.7 billion, including $3.8 billion from ending public service jobs.
Trade adjustment assistance for workers who lose jobs because of imports was cut by $1.3 billion, eliminating most of the program.
The number of jobless workers who will qualify in the future for extended unemployment benefits beyond the basic 26 weeks was reduced by eliminating the national "trigger" for extended benefits and by requiring higher unemployment rates before any state can extend them. States also will be charged interest on loans when borrowing them.States also will be charged interest on loans when borrowing from the Treasury to cover their unemployment costs. Education
About 30 small education programs were merged into block grants with fewer federal controls and less money, but all the big programs including $3.5 billion for aid to disadvantaged children, were kept separate, giving President Reagan a block grant of less than $600 million instead of the $4 billion he wanted.
Guaranteed loans for college students were reduced, but not by as much as Reagan proposed, with a means test imposed only for families with annual incomes exceeding $30,000, instead of all families. Families with less income still would be able to get loans of up to $2,500 as a matter of right. This means saving $450 million instead of the nearly $750 million sought by Reagan. A 5 percent origination fee will be required for loans. For loans to parents of college students, the interest rate will be raised from 9 to 14 percent, unless the Treasury bill rate falls below 14 percent. Grants to poorer college students were also reduced.
Impact aid to school districts with large numbers of federal workers was cut by nearly half, and aid to districts like those in this area where most federal workers do not live on federal property will be phased down, in a manner still to be decided.
Money for the Head Start program for preschoolers was restored after being dropped, apparently inadvertently. Funding of $950 million was provided, as Reagan wanted. Health
About 20 health programs were merged into block grants. But funds for some, like metanl health and alcohol and drug abuse, were earmarked within the grants and others, like family planning and services for migrant workers, were kept seperate. Programs within the block grant will be cut by about 25 percent, for $1 billion in savings over three years.
To counterbalance the family-planning decision and satisfy conservatives, an existing teen-age pregnancy program was expanded to include funds to deter adolescent promiscuity, including what critics called "storefront chastity centers." The $16.6 million add-on will be used for research and counseling. Medicare-Medicaid
Medicaid payments to states for care of the poor will be reduced by about $1 billion a year over the next three years, but not through imposition of the strict "cap" on outlays that Reagan proposed in hopes of locking in big savings for the future. Anticipated spending will be cut 3 percent next year, 4 percent in 1983 and 4.5 percent in 1984 through a variety of cost-saving devices, some of which give states more flexibility in cutting costs.
Among many cost-saving steps in the Medicare program for the elderly was an increase from $228 to $256 (rising to $328 in 1984) in the amount recipients must pay for hospital care before the government starts picking up the tab.
Professional standards review organizations (PSROs), created to police medical practices and reduce costs under Medicare and Medicaid, would be trimmed in number but not eliminated, as Reagan wanted. Social Security
About $1 billion was saved for next year by eliminating the $122-a-month minimum benefit under Social Security for new retirees in December and for current recipients next March. This would produce a long-term saving of $7 billion over the next five years. But Reagan proposals to cut back Social Security in other ways for future retirees helped sensitize Congress on this issue, and there is now a move to restore the $122-a-month floor for the 3 million people who are benefiting from it. Legislation to restore the benefit, at least for some recipients, is expected to be considered in September.
Student benefits are also phased out for adult dependents of Social Security recipients. Disability provisions were tightened to avoid duplication of benefits, althouth deeper disability cuts were dropped. The age at which a Social Security recipient can receive full benefits while still earning income from work was kept at 72 until 1983; Reagan wanted it lowered to 70 in 1982, which would have happened under current law. Pay, Jobs, Pensions
Pay raises for federal workers will be limited to 4.8 percent next year (instead of the 13 percent they might have had under current law), saving up to $3.7 billion.
And, $1 billion will be savied by giving government retirees, including the military, one instead of two cost-of-living increases a year in their pensions.A proposal to end "double-dipping" by military retirees who take civilian government jobs was dropped.
Some agencies, such as the Department of Agriculture, were forced to cut back their payrolls to match program reductions. Subsidized Housing
The number of new federally subsidized units of rental and public housing will be restricted to about 153,000, a cut of 40 percent from former president Carter's recommendation of 260,000 units and fewer even that the 175,000 units that Reagan proposed.
Rents will rise from 25 percent of a tenant's income to 30 percent over five years. Income eligibility was not changed, but the very poor would be favored as new tenants.
A Senate provision to curtail housing aid to cities like New York and the District of Columbia that practice rent control was dropped. Food Stamps
Cuts of $1.7 billion in the nearly $12 billion food stamp program serving 22 million Americans will strike about 1 million recipients from the rolls and mean reduced benefits for another million. Cuts were about $200 million deeper than Reagan recommended. Eligibility is restricted to families earning 130 percent of the poverty level. Striking workers will be made ineligible for food stamps.
Puerto Rico's big food stamp program was put into a $825 million block grant, thereby curbing its growth. Child Nutrition
The current $4.4 billion in subsidies for school lunches, breakfast feeding and day care, summer meals, mothers' and infants' nutrition and related programs was cut by $1.5 billion.
For the huge school-lunch program, this will mean fewer free meals and higher costs for those who pay. Critics say the cuts may end school lunch programs in some financially strapped school districts. Subsidies for full-price lunches were reduced by about 40 percent, and free lunches will be provided only for children of families with incomes no higher than 130 percent of the federal poverty level. The price of reduced-price lunches is expected to double. Welfare
Savings of $1 billion were made by reducing benefits and tightening eligibility under the aid to families with dependent children (AFDC), and states will be permitted to adopt "workfare" programs requiring people to take jobs in exchange for benefits. Reagan had wanted mandatory "workfare." Benefits will be denied to striking workers. Commerce
Congress rejected Reagan's proposal to kill the Economic Development Administration and non-highway programs of the Appalachian Regional Commission, but funded both programs at significantly reduced levels. EDA will get $290 million next year, the ARC $215 million.
The Export-Import Bank, which helps exporting industries sell abroad, also came out a winner, getting about $700 million more than Reagan proposed.
Federal controls over business were loosened in a number of ways. Licensing periods for radio and television stations were stretched out, although more far-reaching telecommunications deregulation was dropped. Funds for the Consumer Product Safety Commission were cut and some of its activities were curtailed. The administration lost an attempt to curb the Federal Trade Commission's antitrust activities.
Urban development action grants (UDAG) that promote commercial development in deteriorating city neighborhoods were continued as a separate program, contrary to Reagan's wishes. But funding was reduced. Transportation
In addition to extensive cuts in mass transit aid that Reagan requested, Congress provided for sale of the heavily subsidized Conrail freight system, preferably as an entity but in pieces after Oct. 30, 1983, if it remains unprofitable as an entire system. Amtrak, the subsidized rail passenger service, is expected to retain most of its service, instead of confining service to the Northeast corridor, as Amtrak officials said would happen under Reagan's proposed cuts. Energy
To help poor people with rising energy costs, Congress kept $1.88 billion for low-income fuel assistance along with funds for home weatherization, more than Reagan wanted on both counts.
It cut back heavily on planned synthetic fuel development projects, saving about $4 billion over the long run. It also claimed another nearly $4 billion in savings for next year alone from simply not counting in the budget the expected costs of filling the strategic petroleum reserve.
The Clinch River breeder reactor lives on, and so do some energy conservation programs that Reagan wanted to cut. Environment
Reagan won his plan to curtail water clean-up projects until Congress comes up with new funding criteria, presumably to concentrate on major polluters.
The president didn't get all the curbs he wanted on parkland acquisition, but new water projects were put on hold. Environmentalists, profiting from the austerity drive, got controls on commercial exploitation of coastal barrier islands when federal flood insurance for them was dropped. Miscellaneous
Veterans programs were cut by $110 million, a relatively modest rfeduction reflecting their political popularity.
The Legal Services Corp., a program for the poor that Reagan wanted to turn over to the states, was left untouched by the reconciliation bill, and both houses are expected to continue it at a rteduced level, although a presidential veto of a separate funding bill is still possible.
The endowments for the arts and humanities came out worse than before but better than Reagan wanted, with $119.3 million for arts and $113.7 million for humanities.
Over administration objections, dairy price supports were retained at 75 percent of parity instead of the 70 percent level that the Reagan wanted. But the issue won't be resolved until broader commodity price support legislation is considered later in the session.
Community action programs, a vestige of the old war on poverty, were cut back but kept alive.
Foster care and child adoption, which Reagan wanted folded into a social services block grant, would be kept separate. The social services grant program was cut from $3 billion to about $2.5 billion.
Postal subsidies were cut, although Congress flinched at ordering the closing of up to 10,000 smaller post offices, as a House committee once suggested. The Postal Service would be barred from imposing its proposed 9-digit zip code until October, 1983, although it could start cranking up the machinery for it before then.
Proposed fees for ocean dumping and uranium enrichment were dropped, as was an increased fee per ton on coal operators to help finance black lung benefits to disabled coal miners. Black lung benefits were not cut, meaning appropriations will have to fill any gaps.
A proposed boat users' fee, to offset costs of Coast Guard services, was also dropped.
Under advance funding requirements for public broadcasting, the Corporation for Public Broadcasting was cut from its current funding level of $172 million to $130 million a year for 1984 through 1986.
The secretaries of Transportation and Commerce, once threatened with loss of their chefs, can continue to enjoy the cuisine.