[Congressional Record Volume 142, Number 3 (Friday, January 5, 1996)]
[Senate]
[Pages S96-S97]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




           USING SOCIAL SECURITY FUNDS TO BALANCE THE BUDGET

  Mr. FORD. Every once in a while you worry about whether you remember 
things right or not, and so you have to go back and check on it to be 
sure.
  The distinguished Senator from Idaho and I were debating. I was 
speaking, and I said something about this budget that the Republicans 
had offered was not balanced in the year 2002 by $108 billion unless 
you used Social Security. And he asked me, had not Democrats used that 
before, and I told him I had not known that, but for 12 years we had 
Republicans who were President and they signed or vetoed legislation.
  So now I have a little information I wish to put into the Record, or 
at least read into the Record, Mr. President. In response to Senator 
Craig on the use of Social Security trust funds, and more importantly 
for future reference I think, the following points I think are 
relevant.
  It is the law--and let me underscore that now--it is the law. Both 
the Social Security law--it is attached to title XLII, section 911--and 
the Budget Act, title II, section 3631, mandate--and I underscore 
mandate--that ``the social security surplus shall not be counted in 
budget deficit calculations by the Congress.''
  That is why the budget resolution passed earlier this year showed a 
deficit. You talk about honest figures. I have heard honest figures 
held out in front of me until it dripped. That meant my figures were 
dishonest. I do not particularly like that. But it showed a deficit of 
more than $100 billion under the Republican plan.
  The Senate Democrats did--and I want to underscore did--offer a 
budget plan to balance the budget without using the Social Security 
Trust Funds, and not one that the Republicans supported. It was a 9-
year budget, Mr. President, but we did not use the Social Security 
funds.
  Just take a look at the budgets submitted by Presidents Bush and 
Reagan, 

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all calculated with on-budget and off-budget deficits. We will not have 
an honest balanced budget until the on-budget deficit is zero. So the 
budget that we are being told about here tonight is not an on-budget 
deficit, so therefore it is not a balanced budget in the year 2002 
without using $108 billion of Social Security surplus.
  Let me read the Budgetary treatment of trust fund operations. That is 
under Section 911(a)(1).

       The receipts and disbursements of the Federal Old-Age and 
     Survivors Insurance Trust Fund, the Federal Disability 
     Insurance Trust Fund, and the Federal Hospital Insurance 
     Trust Fund and the taxes imposed under section 1401, 3101, 
     and 3111 of Title 26 shall not be included in the totals of 
     the budget of the United States Government as submitted by 
     the President or of the congressional budget and shall be 
     exempt from any general budget limitation imposed by statute 
     on expenditures and net lending (Budget outlays) of the 
     United States Government.

  Under our budget act--I want to read that. I will just read one 
paragraph into the Record.

       The concurrent resolution shall not include the outlays and 
     revenue totals of the old age survivors, and disability 
     insurance program established under title II of the Social 
     Security Act [42 U.S.C.A. Sec. 401 et seq.] or the related 
     provisions of the Internal Revenue Code of 1986 in the 
     surplus or deficit totals required by this subsection or any 
     other surplus or deficit totals required by this subchapter.

  Let me make one more point. The conference report on the budget that 
people have been beating their chest about around here tonight that is 
a balanced budget, the concurrent resolution on the budget for fiscal 
year 1996 and the conference report--all my colleagues have to do is 
just look on page 3.
  Look on page 3 and see how you get a balanced budget. In the year 
2002, the year it is supposed to be balanced, you are using 
$108,400,000,000 out of Social Security Trust Funds in order to balance 
that budget. I have heard enough about ``honest figures, honest 
figures.''

  The CBO is just as honest as they can be, I am sure. But OMB is too. 
I think about the private people out there that give industry an 
analysis of the future. Are those dishonest figures? I do not think so. 
I think they are honest people giving their honest best projection.
  So, Mr. President, I wanted in the Record tonight that we have been 
hearing a lot about the balanced budget, but on budget the Republican 
budget is not balanced. The on-budget deficit must be zero to have a 
balanced budget, and not use $108,400,000,000 out of the Social 
Security Trust Funds to balance the budget in the year 2002.
  I yield the floor.
  Mr. WARNER addressed the Chair.
  The PRESIDING OFFICER. The Senator from Virginia.

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