Subject: Revisions of the 1982 Budget

The comprehensive economic program that I will present to the Congress on February 18, 1981, will describe spending reductions, tax reductions and actions to remove unnecessary regulatory burdens.

For the past several weeks, members of the Cabinet and I have been identifying major policy and program changes that must be made to begin bringing spending under control. These major changes will be outlined in my February 18th address.

In addition to these major items, reductions will have to made in virtually every agency for fiscal year 1981, 1982 and the future. This memorandum is to ask your cooperation in this second phase of our review and to outline the process and schedule that we must follow in order to submit a fully revised 1982 budget -- including the details of the major changes I announce on February 18th and all other revisions of the budget submitted by President Carter on January 15th -- to the Congress by March 10, 1981.

At my direction, the full review of the remainder of the Carter budget is already underway in the Office of Management and Budget. The remaining steps in the revision process will of necessity be much more compressed than would normally be possible and the procedure will be very demanding for all of us. More specifically:

During the next 9 days, OMB will complete its review, consult with my senior advisers and me as appropriate, and at my direction, will advise each agency of additional reductions that are needed from the Carter budget to achieve our spending and employement reduction goals.

If you believe there are better ways of achieving the reductions, I ask that you convey your views to the Director of OMB in writing within 48 hours after receiving the revised budget and employment limits.

I will look to you and the Office of Management and Budget to resolve any differences promptly and, in those few cases where they cannot be resolved, to bring those differences to me jointly for final decision. Of necessity, I need to receive such items within 4 days of the time that you receive the initial notification from OMB.

Some agencies will begin receiving the initial notification by February 9th. The entire process must be completed promptly for all departments and agencies to allow time for your preparation of supporting materials and for compiling and printing the revised budget. Your cooperation in this effort is appreciated.

Ronald Reagan