Prospect of Benefit Cuts Raised

Congress has started drafting a budget blueprint for the fiscal year that starts October 1 that could require spending cuts in numerous areas, including potentially the federal health insurance and retirement programs. Both the House and Senate likely soon will call up budget “resolutions,” which are not binding but which provide guidance on how much other committees that have actual control over programs will have available to spend. Although the two versions being drafted differ significantly, they both would require holding down spending in certain accounts, including those under the key committees handling civil service matters, the House Government Reform Committee and Senate Governmental Affairs Committee. For example, the plan drafted by the House Budget Committee would require Government Reform to find $1.1 billion in savings in fiscal 2004, $10.7 billion over five years and $39.5 billion over 10 years.