Bush Proposes 36% Funds Hike for Head Start

President Bush, in a surprise announcement, disclosed Friday that he will seek a $500-million increase in government funding next year for Head Start, a 25-year-old program intended to help disadvantaged youngsters prepare for elementary school.

Bush said the proposed 36% jump in federal spending is intended to expand the program--one of the few remaining elements of Lyndon B. Johnson’s War on Poverty--so it can reach 70% of the disadvantaged 4-year-olds in the nation.

Elsewhere in the draft $1.23-trillion federal budget for the fiscal year that begins next Oct. 1, Bush is expected to propose $37 billion in spending cuts and revenue increases to meet a congressionally mandated deficit-reduction target of $64 billion next year.

The budget--Bush’s first full-scale statement of his priorities for the federal government--will include a renewed call for a lower capital gains tax rate, tax credits for adoptions and for child care, and a proposed “family savings account” that would allow people to accumulate tax-free earnings on up to $5,000 put away each year.

Although the package contains no general tax hikes, it is expected to include as much as $12 billion in various revenue increases that would take money out of people’s pockets, including $5 billion in proposed user fees.

The plan calls for further cuts in Pentagon spending after adjusting for inflation, but Congress is expected to demand even deeper savings. Bush’s spending blueprint will call for modest savings of about $3.8 billion from holding defense outlays to $292 billion next year, compared to the $286 billion total for this fiscal year.

Deputy Defense Secretary Donald J. Atwood, who briefed congressional staff members Friday, called the Pentagon’s budget request “realistic” and said its efforts to scale back its budget in the next five years deserve support.

In tentative spending plans for the next five years, the Pentagon has proposed to reduce its budget by 2% annually after accounting for inflation, which would allow only a gradual rise from $292 billion next year to $311.8 billion in fiscal 1995.

Congressional sources said that Defense Secretary Dick Cheney had slated a long list of relatively small weapons and ordnance programs for termination. None of the Pentagon’s most costly programs, including the B-2 Stealth bomber--for which $5.5 billion will be sought in 1991--were killed or scaled back significantly.

Cheney is certain to raise hackles on Capitol Hill with decisions not to seek additional funds for production or development of the Marine Corps’ V-22 Osprey tilt-rotor aircraft and the Navy F-14 fighter jet. The Pentagon last year proposed to terminate both programs, prompting angry lawmakers to restore some funds to keep the programs alive.

The budget also contains about $5 billion in proposed Medicare savings, along with another $2.5 billion from yet another Administration attempt to require state and local workers to pay for Medicare coverage.

Altogether, about 18 or 19 programs would be terminated.

On the other side of the ledger, Bush is expected to call for increased spending on the environment, particularly a stepped-up program to combat global warming, and a boost in spending on space, drug enforcement and treatment, and AIDS research and prevention.

The overall education budget would rise by $500 million, but not enough to keep up with inflation. As a result, some college students would lose their eligibility for Pell Grants, and others would be required to accept smaller stipends.

The 1,592-page budget document was in its final press run on Friday, said Donna Alexander, a spokeswoman for the Government Printing Office. Some 24,000 of the blue-jacketed documents are being printed, and they will go on sale Monday at government book shops for $38 each.

Bush, his aides, and other government officials have carefully disclosed most of the key elements on his agenda this year. He will be free in the State of the Union address Wednesday evening to focus on the overall direction he would like to see the country take this year, rather than having to present a “laundry list” of problems and programs.

In disclosing the Head Start funding proposal to an audience of adopted children and parents taking part in a White House program on adoption, Bush said he would seek “the largest increase ever--half a billion additional dollars--for Head Start.”

“This new funding will increase the Head Start enrollment to 667,000 children and bring us to the point where we can reach 70% of this nation’s disadvantaged 4-year-olds through Head Start,” he said.

Bush said “every American child with special needs, whether physical, emotional, or material, deserves the opportunity for a full and happy life.”

The increase is approximately 10 times as big as the additional amount sought for the program by the Department of Health and Human Services, White House Press Secretary Marlin Fitzwater said.

The President’s announcement surprised advocates of assistance for children and Democratic politicians, with one Democratic political adviser remarking: “That’s smart politics.”

Bush, who said frequently during the 1988 political campaign that he wanted to become the “education” President, had come under increasing pressure to move toward that goal by increasing federal funding for a variety of education programs.

Such pressure emerged at the meeting Bush led at the University of Virginia last September, where he conferred with the nation’s governors on education needs across the country. Fitzwater said the Head Start proposal stemmed directly from that conference.

The Head Start program grew steadily during the Ronald Reagan Administration from about $800 million in 1981 to about $1.2 billion when he left office. In 1990, the Head Start program is receiving $1.386 billion. It provides early educational skills, health care and social counseling for preschool children from families living at or below the poverty level. Staff writer Melissa Healy contributed to this story.