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Remarks on Signing Into Law the Omnibus Reconciliation Act of 1980

December 05, 1980

THE PRESIDENT. This is the kind of legislation that's very gratifying for me to sign. This is an unprecedented act on the part of the Congress to pursue even further than it has been in the past the advantages of the budget procedure. There have been times this year, because of the strict discipline that we've placed on the budget process, when we were doubtful about whether the budget procedure itself could be preserved. But the Reconciliation Act of 1980, which I am going to sign in a few minutes, is a vivid demonstration of the courage of the Congress in dealing with very difficult questions in exercising budget restraint.

Many of the items that contribute to a budget deficit are not covered automatically each year when the Congress considers the appropriations bills and other related processes. For instance, the tax code, the major entitlement programs, are not ordinarily reviewed. But this year, beginning in March, when the congressional leadership in both Houses, both parties, and I, worked together to see what could be done to reduce the Federal deficit and restrain the inflationary pressures, the Congress in its first budget resolution directed all the committees to give a list, aided by us in the administration, of things that could be done to increase revenues by expedited and more equitable collection of taxes of all kinds, and also to reduce expenditures which were above and beyond the normal legislative process. This has resulted in substantial savings. And I would estimate that this bill here, when I sign it into law, will result in a decrease in the budget deficit in excess of 8 billions of dollars, roughly $5 billion in reduced spending, roughly $3 billion or more in expedited or increased revenue collections.

I'm very much indebted to the Congress, which in an election year, when it's very difficult to exercise this sort of discipline, has done so, so superbly. Bob Giaimo, the Budget Committee leader in the House, Fritz Hollings and his predecessor Ed Muskie in the Senate, working with Leon Panetta and with Senator Bellmon, with Senator Long and others-I need not name the whole list have done a superb job. It's with a great deal of pleasure that I sign this bill into law.

In addition to that, we have tried through every possible process to restrict the expenditure of unnecessary funds and to control inflation. We have had a personnel freeze in effect since March, and when I go out of office next month we will have between 55 and 60,000 fewer fulltime employees than we had when I was sworn into office in January of 1977. But the combined total of the exercising of fiscal discipline, I think, is paying rich dividends for our Nation in restraining an already too high inflation rate and a budget deficit that is of concern to all of us.

I would like to sign this bill into law, and then call on, first, Congressman Bob Giaimo, representing the House Budget Committee, and then Senator Fritz Hollings, representing the Senate Budget Committee to make remarks.

[At this point, the President signed the bill.]

Gentlemen, I thank you very much. Everybody assembled here, on this side of the table at least, knows that this was not an easy task. [Laughter] It was one of the most difficult legislative processes I've ever witnessed, and Bob Giaimo and Fritz Hollings and all those who worked with them deserve credit and a great deal of thanks from all the people of our Nation.

Bob Giaimo.

REPRESENTATIVE GIAIMO. Thank you.

Mr. President, this is really a historic event in the legislative process which you initiated back in the early spring or the late winter, in fact in March, when you and your people met with the congressional leadership, both House and Senate, and you hammered out certain economic measures which had to be taken in order to try to correct this terrible economy and this high inflation rate. And one of these suggested remedies was a new legislative vehicle which we all call reconciliation, but which in simple terms is a savings package in reducing Federal expenditures.

Now, Presidents have traditionally sent up legislative reform packages to the Congress, and usually, as you know, Mr. President, nothing much ever happens to them. Until this year, I think, the highest amount of legislative reform that was ever enacted on a President's suggested package of reforms was $200 million. This bill this year took your legislative reform suggestions and effected about $4.6 billion of them in direct spending, plus the revenue savings, as you know, of about $3.5 billion. But more than that, it's $4.6 billion for this year; it's over $21 billion over the next 5-year period.

And what we've done here with your direction and drive and help and with the help of the leadership in the Congress, I think, is to fashion a new legislative tool for the future years, to begin to look at the entitlement programs, where 75 percent of the Federal dollars are spent, and we have a tool and a vehicle for ,beginning to look at them, change them, correct them, modify them, and begin to make some effective savings. And I think this has happened through your leadership, and I thank you.

THE PRESIDENT. Let me say one word. When Ed Muskie came to join me in the administration as Secretary of State, his successor, Fritz Hollings, took over this project in a very difficult time. And no one can imagine the tremendous pressure from lobbying groups and others to protect unwarranted expenditure programs better than those that have been involved in the infighting that has taken place to protect the interest of our country. And in a very courageous fashion, Fritz Hollings has not only been able to bring together a harmonious group of Senate leaders but also has been able, under difficult circumstances and working harmoniously with Bob Giaimo and the House leadership and my own administration—and Fritz, I want to congratulate you on the ability that you have exhibited in leadership in making this possible.

SENATOR HOLLINGS. Well, thank you, Mr. President.

We really are, in the Senate, very grateful to you, because had you not led the way here in the early spring, we wouldn't be here today signing any kind of reconciliation measure.

I think the significance of this particular occasion is, on the one hand, that discipline had to be worked out between the executive and the legislative branches. Our friends sometimes always think government is a true-false quiz and whether or not we have a balanced budget is going to depend on the constitutional provision. You're looking at a gentleman who took the oath of office back in 1959, where in its constitution, the State had provided for a balanced budget back in 1895, and they gave it to me in the absolute red. So, I know better than any about constitutional provisions. It's going to happen only by working together, particularly developing the discipline within the legislative branch. And significantly, in other words, rather that just balancing the budget, we have aimed it in the right direction.

Adlai Stevenson, once asked whether he was a conservative or a liberal, said, "That's not the important question. The important question is, am I headed in the right direction?" [Laughter] So, today we've headed the Government's finances in the right direction. You've cut back on the employees, and we have proved that you can get us back in the black in a disciplined, deliberate manner. You can't do it overnight, but to come from a $60 billion deficit down in the realm of, what would it be, 18 without a tax cut and 27 with a tax cut, is quite an accomplishment.

It has been a magnificent pleasure working with Bob Giaimo and the House colleagues, and particularly now we've woven in even Russell Long, who's right in behind here— [laughter] —and the chairmen of the substantive committees in the Congress. We get nowhere unless the Congress themselves appreciates this as their process and their accomplishment.

REPRESENTATIVE GIAIMO. And Mr. President, we have here the man who I think's going to be the next chairman of the Ways and Means Committee. [Laughter]

THE PRESIDENT. I would like to say in closing that as Fritz and Bob pointed out, there is an inherent competition between the Appropriations Committees, the Budget Committees, the Ways and Means Committee, and the Finance Committee in the Congress, and this is a healthy competition. In this particular respect, though, we have seen a remarkable degree of cooperation. Had that not been obvious this year, I would not be signing this bill today.

We made additional recommendations for savings. I believe that they changed to an annualized indexing of entitlement programs—needs to extend further, for instance. It's not a politically attractive concept. It's been a good step forward already taken. And I hope and trust that under the leadership of Fritz Hollings and Bob Giaimo's successor and others that we'll see this process continued and even expanded in the future. It's a good step in the right direction, and I'd like to express not only my thanks to Henry Bellmon—I wish he was here—but also to Congressman Panetta and of course to Russell Long, to Danny Rostenkowski, and others in the Congress who've worked on this, and also, of course, to the leadership—Tip O'Neill, Bob Byrd, and the Republican leadership as well, have been so good.

Thank you all very much.

My omission of the House Rules Committee chairman was inadvertent- [laughter] —because as all of us know, the strong leadership of Dick Bolling in a crucial time is what made the difference. And I thank you all from the bottom of my heart.

Note: The President spoke at 9:34 a.m. at the signing ceremony in the Cabinet Room at the White House.

As enacted, H.R. 7765 is Public Law 96499, approved December 5.

Jimmy Carter, Remarks on Signing Into Law the Omnibus Reconciliation Act of 1980 Online by Gerhard Peters and John T. Woolley, The American Presidency Project https://www.presidency.ucsb.edu/node/251254

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