[Congressional Record Volume 141, Number 154 (Friday, September 29, 1995)]
[Senate]
[Page S14609]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           A BALANCED BUDGET

  Mr. DOMENICI. Mr. President, I want to talk a little bit about the 
balanced budget that we have put forth and that we all worked so hard 
for--at least on this side of the aisle. I am going to put it into the 
framework of the Secretary of Treasury, Mr. Rubin, talking to the 
American people and us about that day sometime after October 20, 
perhaps before November 15, in that timeframe, when the debt limit that 
we have imposed upon ourselves expires, and in order to borrow 
additional money, Congress has to act to raise that debt limit. 
Essentially, that is being discussed with the American people. I am not 
sure they all quite understand what that means.
  I want to, in a sense, respond as I see it to the fear that the 
Secretary of the Treasury is pushing across this land in terms of that 
debt limit day.
  First of all, Congress has never given up the power to tell the 
President and those who work for him, like the Secretary of Treasury 
how much they can borrow. Occasionally, it seemed kind of strange to me 
because Congress passes all these laws to spend money, and everybody 
votes on those, and then when it comes time to extend the debt, people 
say, ``We will not extend the debt.'' But I am beginning to understand 
that power to control the debt limit is very important, especially in 
this year and years like this one.
  The Secretary of the Treasury is saying to us, ``You'd better agree 
to extend that debt limit because if you do not, something very ominous 
might happen.'' Then he talks about such things as default and we will 
not be able to pay interest on some bonds.
  First of all, let me make it very clear from the standpoint of the 
Senator from New Mexico, who put this budget resolution together, and 
look at it from my vantage point as to the seriousness of that 
contention on the part of the Secretary that we had better be prepared 
to let that go up.
  Now, I see it this way. I think there are two major events that are 
coming together in the month of November. One is described by the 
Secretary of the Treasury with all of those ominous tones about what 
will happen; the other is whether we are going to get a balanced 
budget--no smoke and mirrors--and entitlement reform.
  Frankly, many people are now experts on this Federal budget. Interest 
rates out there on bonds affect our standard of living because it 
affects interest rates on many things. Those who look at that know 
precisely what is a balanced budget and what is not a balanced budget.
  Mr. President, we know precisely what the big ingredient in a 
balanced budget is. The big one is reforming the entitlement programs 
that are out of control--Medicare, Medicaid. I did not say cut them, I 
said reform them. In addition, we must look at commodity price supports 
and a whole list of programs that are on automatic pilot.
  If we do not stop them and change them, they just spin, some at a 10-
percent increase a year, some 12. We had Medicaid in some States, 
increasing as much as 19 percent a year. I think we had as high as a 
28-percent increase in one year in Medicaid--28 percent, automatic. 
Experts on the Federal budget know if you do not fix those and if your 
assumptions are not honest, then you have a budget that is smoke and 
mirrors, and ineffective.
  Now, what I am saying to Members on the other side and others who 
will listen is do not jump to the conclusion that the most serious 
event is the day that we do not extend the debt limit when it needs to 
be extended.
  Actually, an equally important day is coming when the President of 
the United States has to decide whether he wants to help us get a 
real--no smoke and mirrors--entitlement reform budget. Both of them are 
important events.
  I will not place one above the other because I believe we must do 
everything we can this year--not next year, that is an election year; 
not 2 years from now; right now, this year. We have to get a balanced 
budget, with no assumptions that are too optimistic, and one that 
changes entitlement programs to reduce their ever dramatic increases.
  Now, I cannot put it any better than that. I am not suggesting I am 
for a default. I am suggesting that is an important event. I believe we 
have to put the other event right up there alongside it. We have to 
serve notice on the Secretary of the Treasury and the President that we 
are not just going to run out on this balanced budget. We think we have 
done a job. We think it is positive. We think it is right.
  Let me close by saying the reason that this is a big event is because 
for the first time in 31 years, elected officials are saying, ``We care 
about the future. It is not about today only. It is about the future. 
And we care about our children, not ourselves. We care about those yet 
unborn as much as ourselves.'' If we really believe that, we cannot 
continue to spend at what is currently, believe it or not, $482 million 
a day--a day. That is the amount we are adding to the debt every day--
$482 million. That is a lot.
  Who will pay it? If we are standing up saying we do not care, well, 
somebody is going to pay it. Do you know who is going to? The next 
generation, with a lost standard of living, because too much of the 
income has to come back up here and pay for our profligacy.
  That is not right. That is a big event for adult leaders. It is just 
as big an event as the event that is closing upon us on whether we 
increase the debt limit, to let us borrow more or not.
  I do not think the Secretary or the President should read anything 
more into my statement than what I have said. It is pretty clear that I 
am not running off in some kind of trepidation because we are being 
told about this need to extend the debt limit. For those who wonder 
about that debt limit extension, let me suggest--none of which I 
advocate--but there are a number of ways the Secretary of the Treasury 
can pay some bills out there after that debt limit is extended, without 
extending it. They know it. The Secretary knows it.

  There are at least four. A couple of them have serious political 
ramifications. A couple of them they could use. It may be they do not 
want to do that, even when push comess to shove. But we do not want to 
abandon our balanced budget. And I am repeating, the kind of balanced 
budget we are talking about involves no optimistic economic 
assumptions, no smoke and mirrors. It is entitlement reform that is 
consistent with what is happening to the budget under current 
entitlement programs which, run unabated, have no relationship to what 
we can afford, just merrily run along, causing the debt to increase at 
$428 million a day.
  I yield the floor and I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The assistant legislative clerk proceeded to call the roll.
  Mr. HOLLINGS. Mr. President, I ask unanimous consent that the order 
for the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.

                          ____________________