May 2, 1986
The President believes it is essential that a budget resolution be passed by the U.S. Congress. If we are to maintain a strong economic recovery and sustained growth it will require a clear signal that the deficit targets required by Gramm-Rudman-Hollings be met. The Senate has developed a budget package that falls short of the President's requested levels for providing a strong defense. It calls for additional revenues above the levels he believes appropriate. And the domestic spending reductions envisioned in the resolution are more modest than what the President feels is appropriate. In addition, while the proposal covers a 3-year timeframe, he believes a 1-year focus is more appropriate.
Nonetheless, the Senate has struggled to meet its obligations under Gramm-Rudman-Hollings and send a positive signal to working men and women of the country and the rest of the world that we are staying on a path to a balanced budget. While the President has serious reservations about individual aspects of the Senate budget resolution, he believes it is important that the Senate passes a budget for 1987 and recognizes their effort. The consequences of failure to act under Gramm-Rudman-Hollings are too great. Therefore, given the Senate's action, he looks forward to working with the Congress to ensure more acceptable levels are reached for defense, taxes, and spending reductions.