Senate Rejects Proposal to Cut $94 Billion in Spending to Reduce Deficit

Strategic Insights -

The Senate made a critical decision yesterday, voting 65-31 to kill a proposal to cut $94 billion in spending to reduce the growing $4 trillion deficit. The proposal, introduced by Sen. Bob Kerrey, D-Neb., would have implemented significant cuts across various programs and agencies, including lawmakers' salaries and retirement benefits, honey subsidies, and federal building construction. Despite the proposal's appeal for those pushing for a balanced budget, the Senate rejected the amendment, citing concerns over the effectiveness of the proposed cuts.

Key Takeaways:

  • The Senate rejected a proposal to cut $94 billion in spending to reduce the deficit, with Sen. Bob Kerrey, D-Neb., attempting to lock 57 cuts onto the disaster relief bill.
  • The proposal included cuts to lawmakers' salaries and retirement benefits, honey subsidies, tree planting grants, travel costs, federal building construction, and Strategic Petroleum Reserve purchases.
  • Sen. Robert Byrd, D-W.Va., rejected Kerrey's cuts, stating that the majority of the proposed savings were "non-existent."
  • The Senate had already accounted for $78 billion of the proposed $94 billion in savings through existing budget cuts and reallocations.
  • Kerrey's proposal included reducing the federal work force by 252,000, which is already earmarked in a popular anti-crime bill.
  • The bill includes $9.7 billion in supplemental disaster assistance for California, the Midwest floods of 1993, and various humanitarian and international peacekeeping operations.

Statistics:

  • The proposed budget cuts would have reduced the deficit by $94 billion.
  • The majority of the proposed savings ($78 billion) are already accounted for through existing budget cuts and reallocations.
  • The federal work force would have been reduced by 252,000.
  • The disaster relief bill includes $9.7 billion in appropriations.
  • The Senate has already approved $78 billion in budget cuts in other areas.

Sources:

  • "Senate brushes aside $94 billion cut in spending bill," _The Washington Post_, no date listed
  • "Kerrey Seeks To Cut Budget; Disaster Relief Likely," _The New York Times_, no date listed