President Announces Formation of Capital Budget Commission
Today, President Clinton announced the formation of a Capital Budget Commission to
report to the President on how best to reflect and encourage public investment while maintaining
strict fiscal discipline in the federal budget. This bipartisan Commission will review the
appropriate role of capital investments in both current and future federal budgeting. As part of
this review, it will examine capital budgeting practices in the private sector, in state and local
governments, and in other countries.
The President named Jon S. Corzine, Managing Director and Chairman of the Executive
Committee at Goldman, Sachs & Co., and Kathleen Brown, Senior Vice President and National
Sales Marketing Director of the Investment Management Services Group at the Bank of
America, as Co-Chairs of the Capital Budget Commission. Following consultation with the Co-
Chairs and the congressional leadership, the President will make nine other bipartisan
appointments to the Commission. The appointed members will include experts in public and
private finance, government officials, and representatives of the labor and business communities.
The Commission will adopt its report through majority vote of its full membership. It will
submit its report to the National Economic Council by March 15, 1998, or within one year from
its first meeting.
President Clinton welcomed the Co-Chairs: "Making smart public investments while
maintaining the fiscal discipline and good budgeting practices that encourage private investment
is one of the critical challenges facing this nation. I am delighted that Jon S. Corzine and
Kathleen Brown have agreed to serve their country and confront that challenge by chairing this
bipartisan Commission. The American people will be well served by the leadership of two such
distinguished Americans on this Commission."
Jon S. Corzine has served as Chairman of the Executive Committee of the investment
banking firm of Goldman, Sachs & Co. since 1994. From 1988 to 1994, Mr. Corzine was
co-head of the Fixed Income division at Goldman, Sachs and had joint responsibility for the
firm's finance and treasury functions. He joined Goldman Sachs in 1975, becoming a Vice
President in 1977 and a General Partner in 1980.
Mr. Corzine is a member of the Public Securities Association and served as its Chairman in
1986. He also serves on the Federal Reserve Bank of New York's International Capital Markets
Advisory Committee. He received his M.B.A. from the University of Chicago in 1973 and his
B.A. from the University of Illinois, where he was Phi Beta Kappa in 1969. Mr. Corzine served
in the United States Marine Corps reserve in 1969-1970.
Kathleen Brown has served as Senior Vice President and National Sales Marketing Director
of the Investment Management Services Group at the Bank of America since 1994. From 1991
until 1994, she served as California's 28th Treasurer, responsible for managing the state's
investment portfolio, and administering bond sales to finance schools, parks, prisons, housing,
health facilities, and environmental programs.
Ms. Brown's election as California Treasurer followed a career as a financial manager and
public policy-maker. She was elected in 1975 and reelected in 1979 to the Los Angeles City
Board of Education, the governing body of the nation's second-largest school district. In 1987,
she was appointed to the Los Angeles Board of Public Works, which oversees the city's vital
infrastructure. Brown is a graduate of Stanford University and Fordham University School of
Law. She is married to Van Gordon Sauter, with whom she shares five grown children and three
Fact Sheet on Capital Budget Commission
The President has announced today that he will establish by Executive Order the formation
of a Capital Budget Commission to report to the President on recommended practices for capital
The Commission will be bipartisan, composed of 11 members including the two Co-Chairs, Jon
S. Corzine and Kathleen Brown, designated today by the President. The nine other members of
the Commission will be chosen by the President from among individuals with expertise in public
and private finance, government officials, and leaders in the labor and business communities.
The Commission will report on the following:
- Capital budgeting practices in the private sector, in state and local governments, and
in other countries; the differences and similarities of their concepts and processes,
and their pertinence for budget decision-making and accounting for actual budget
outcomes at the federal government level;
- The appropriate definition of capital for federal budgeting, including use of capital
for the federal government itself or the economy at large; ownership by the federal
government or some other entity; defense and nondefense capital; physical capital
and intangible or human capital; distinctions among investments in and for current,
future and retired workers, capital to increase productivity, and capital to enhance the
quality of life; and existing definitions of capital for budgeting;
- The role of depreciation in capital budgeting, and the concept and measurement of
depreciation for purposes of a federal capital budget; and
- The effect of a federal capital budget on budgetary choices between capital and
non-capital means of achieving public objectives; implications for macroeconomic
stability, and mechanisms for budgetary discipline.
The Commission will act and adopt its report through majority vote of its full membership. The
Commission will send its report to the National Economic Council by March 15, 1998, or within
one year from its first meeting. The National Economic Council will then forward it to the
The Commission will be an entity governed by the Federal Advisory Committee Act. Members
of the Commission will not be compensated but will receive travel expenses. The Commission
may have a paid staff, including detailees from federal agencies.
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