[Congressional Record Volume 144, Number 3 (Thursday, January 29, 1998)]
[Senate]
[Pages S199-S201]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                STOP LOOTING SOCIAL SECURITY TRUST FUND

  Mr. HOLLINGS. Mr. President, the thrust of President Clinton's State 
of the Union address was ``save Social Security first.'' The quickest 
way to save Social Security is to stop looting Social Security. Over 
the years, we have looted the Social Security trust fund with wild 
abandon; we owe it to the tune of some $631 billion right this minute. 
It should be a $631 billion surplus. But actually, since Congress has 
expended it on foreign aid, defense, food stamps, and other programs in 
order to appear fiscally responsible, there is a deficit in Social 
Security.
  I see now from the Congressional Budget Office, and I take it from 
the President's budget to be submitted next Monday, that the CBO, along 
with the Congress and the President, is prepared, again, to go forward 
with this nonsense of a unified budget. The unified budget is a fraud. 
It allows Congress to spend money but get credit for not spending 
money. Only here do fiscally irresponsible people get a good government 
award.
  Let's think back a minute on President Lyndon Johnson, because the 
consensus is, ``President Johnson changed government accounting 
procedures and created the concept and introduced the use of a unified 
budget, and that is how he got a surplus.'' This is false; false. I was 
present during that time; I was there with George Mahon, chairman of 
the Appropriations Committee. We asked if we could cut $5 billion to 
achieve a total budget of $178 billion for the Great Society and the 
Vietnam War. Can you imagine that? We funded the Great Society and the 
War with just $178 billion. And where are we today? Today the budget is 
$1.7 trillion. During LBJ's presidency, we balanced the budget with a 
surplus of $3.2 billion. The Social Security trust fund then only 
amounted to $300 million. So President Johnson balanced the budget 
without trust funds and without a unified deficit.
  What really happened was that Wilbur Mills of the Ways and Means 
Committee, who was running for President up in New Hampshire, said to 
the American people: ``Oh, we have so much money in that Social 
Security fund; I will give you a 10-percent COLA.'' Then along came 
President Nixon and he said, ``If he will give you 10, I will give you 
15 percent.''
  We started draining the fund during the seventies. By 1980-1981--when 
I was chairman of the Budget Committee--we could see we were going to 
have a horrendous deficit in Social Security. So we formed the 
Greenspan commission, and we issued a report that recommended not only 
to impose a higher tax for Social Security to balance the Social 
Security budget, but more particularly to build up a trust fund for the 
Presiding Officer.
  Now, old men like Senator Thurmond and I are going to get our Social 
Security money. But I don't know that younger Americans are going to 
get theirs. The fact of the matter is that according to the Greenspan 
Commission, baby boomers were to be cared for with Social Security 
through the year 2056. To show that, I ask unanimous consent that 
section 21 be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                 Social Security and the Unified Budget

       (21) A majority of the members of the National Commission 
     recommends that the operations of the OASI, DI, HI, and SMI 
     Trust Funds should be removed from the unified budget. Some 
     of those who do not support this recommendation believe that 
     the situation would be adequately handled if the operations 
     of the Social Security program were displayed within the 
     present unified Federal budget as a separate budget function, 
     apart from other income security programs.

  Mr. HOLLINGS. Mr. President, section 21 says take Social Security off 
the unified budget and record it as a separate trust fund.
  I also ask unanimous consent that section 13301 of the Budget Act be 
printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                      Subtitle C--Social Security


           sec. 13301. off-budget status of oasdi trust funds

       (a) Exclusion of Social Security from all budgets.--
     Notwithstanding any other provision of law, the receipts and 
     disbursements of the Federal Old-Age and Survivors Insurance 
     Trust Fund and the Federal Disability Insurance Trust Fund 
     shall not be counted as new budget authority, outlays, 
     receipts, or deficit or surplus for purposes of--
       (1) the budget of the United States Government as submitted 
     by the President,
       (2) the congressional budget, or
       (3) the Balanced Budget and Emergency Deficit Control Act 
     of 1985.
       (b) Exclusions of Social Security from congressional 
     budget.--Section 301(a) of the Congressional Budget Act of 
     1974 is amended by adding at the end the following: ``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 or the related provisions of the Internal 
     Revenue Code of 1986 in the surplus or deficit totals 
     required by this subsection or in any. . . .''

  Mr. HOLLINGS. Mr. President, I got that reported out of the Budget 
Committee, and President George Walker Herbert Bush signed it into law 
on November 5, 1990: ``Thou shalt not use the Social Security trust 
fund.'' But, Mr. President, Congress today totally ignores it. Here is 
the economic budget outlook for fiscal year 1999. I ask unanimous 
consent that this table 2 be printed in the Record.
  There being no objection, the table was ordered to be printed in the 
Record, as follows:

[[Page S200]]



                                                                    SUMMARY TABLE 2. CBO BUDGET PROJECTIONS (BY FISCAL YEAR)
 
                                                                 1997       1998       1999       2000       2001       2002       2003       2004       2005       2006       2007       2008
 
                                                                                     IN BILLIONS OF DOLLARS
Revenues:
    Individual income.......................................        737        768        782        805        840        886        922        974      1,027      1,083      1,143      1,207
    Corporate income........................................        182        197        200        200        200        203        209        216        224        232        241        250
    Social insurance........................................        539        573        600        625        651        679        710        743        781        817        856        892
    Other...................................................        120        127        147        149        155        162        167        173        177        181        187        191
                                                             -----------------------------------------------------------------------------------------------------------------------------------
            Total...........................................      1,579      1,665      1,729      1,779      1,847      1,930      2,008      2,105      2,208      2,314      2,426      2,540
Outlays:
    Discretionary \1\.......................................        549        557        561        565        564        560        576        592        609        626        643        661
    Mandatory:
        Social Security.....................................        362        376        391        409        428        449        471        495        522        551        582        614
        Medicare............................................        208        218        231        244        268        277        306        330        367        377        417        448
        Medicaid............................................         96        101        108        115        123        131        141        152        165        179        194        210
        Other...............................................        229        256        272        290        303        316        330        342        360        369        378        399
                                                             -----------------------------------------------------------------------------------------------------------------------------------
            Subtotal........................................        895        950      1,003      1,058      1,121      1,173      1,247      1,320      1,415      1,476      1,570      1,672
    Net interest............................................        244        244        248        244        238        231        226        222        216        209        202        194
    Offsetting receipts.....................................        -86        -81        -81        -84        -90       -104        -96       -100       -106       -112       -119       -126
                                                             -----------------------------------------------------------------------------------------------------------------------------------
            Total...........................................      1,601      1,670      1,731      1,782      1,833      1,860      1,954      2,034      2,133      2,199      2,297      2,403
Deficit (-) or Surplus......................................        -22  .........         -2         -3         14         69         54         71         75        115        129        138
Memorandum:
    On-budget Deficit (-) or Surplus........................       -103       -105       -115       -125       -116        -69        -94        -87        -95        -64        -60        -60
    Debt Held by the Public.................................      3,771      3,790      3,806      3,821      3,821      3,765      3,725      3,668      3,606      3,503      3,386      3,259
 
                                                                            AS A PERCENTAGE OF GROSS DOMESTIC PRODUCT
Revenues:
    Individual income.......................................        9.3        9.2        9.0        8.8        8.8        8.9        8.9        8.9        9.0        9.0        9.1        9.2
    Corporate income........................................        2.3        2.4        2.3        2.2        2.1        2.0        2.0        2.0        2.0        1.9        1.9        1.9
    Social insurance........................................        6.8        6.8        6.9        6.9        6.9        6.8        6.8        6.8        6.8        6.8        6.8        6.8
    Other...................................................        1.5        1.5        1.7        1.6        1.6        1.6        1.6        1.6        1.5        1.5        1.5        1.5
                                                             -----------------------------------------------------------------------------------------------------------------------------------
            Total...........................................       19.8       19.9       19.8       19.6       19.4       19.4       19.3       19.3       19.3       19.3       19.3       19.3
Outlays:
    Discretionary \1\.......................................        6.9        6.7        6.4        6.2        5.9        5.6        5.5        5.4        5.3        5.2        5.1        5.0
    Mandatory:
        Social Security.....................................        4.5        4.5        4.5        4.5        4.5        4.5        4.5        4.5        4.6        4.6        4.6        4.7
        Medicare............................................        2.6        2.6        2.6        2.7        2.8        2.8        2.9        3.0        3.2        3.1        3.3        3.4
        Medicaid............................................        1.2        1.2        1.2        1.3        1.3        1.3        1.4        1.4        1.4        1.5        1.5        1.6
        Other...............................................        2.9        3.1        3.1        3.2        3.2        3.2        3.2        3.1        3.2        3.1        3.0        3.0
                                                             -----------------------------------------------------------------------------------------------------------------------------------
            Subtotal........................................       11.2       11.3       11.5       11.6       11.8       11.8       12.0       12.1       12.4       12.3       12.5       12.7
    Net interest............................................        3.1        2.9        2.8        2.7        2.5        2.3        2.2        2.0        1.9        1.7        1.6        1.5
    Offsetting receipts.....................................       -1.1       -1.0       -0.9       -0.9       -0.9       -1.0       -0.9       -0.9       -0.9       -0.9       -0.9       -1.0
                                                             -----------------------------------------------------------------------------------------------------------------------------------
            Total...........................................       20.1       20.0       19.8       19.6       19.3       18.7       18.8       18.6       18.7       18.4       18.3       18.3
Deficit (-) or Surplus......................................       -0.3       -0.1      (\2\)      (\2\)        0.1        0.7        0.5        0.7        0.7        1.0        1.0        1.0
Memorandum:
    On-budget Deficit (-) or Surplus........................       -1.3       -1.3       -1.3       -1.4       -1.2       -0.7       -0.9       -0.8       -0.8       -0.5       -0.5       -0.5
    Debt Held by the Public.................................       47.3       45.3       43.6       42.0       40.2       37.9       35.8       33.6       31.5       29.3       27.0      24.8
 
\1\ The baseline assumes that discretionary spending will equal the statutory caps on discretionary spending in 1999 through 2002 and will increase at the rate of inflation in succeeding
  years.
\2\ Less than 0.05 percent.
 
Source: Congressional Budget Office.

  Mr. HOLLINGS. Table 2, instead of showing that trust funds are not 
used, shows that Congress uses over $165 billion of trust funds--$165 
billion. That is $101 billion from Social Security and $64 billion from 
the military retirement trust fund, Civil Service retirement trust 
fund, highway trust fund, airport trust fund; and the surplus crowd is 
trying to report just a $5 billion deficit. Come on.
  You have to go all the way back, Mr. President, to page 42 of the 
CBO's report. If you look at page 42, you can find the real deficit, 
because down there they have the gross Federal debt. Of course, they 
don't put it in red. I wish I had a chart here so everybody could see 
it.
  This is not how a family budgets. Families ask themselves if they 
spend more than they take in? They don't employ this unified budget 
nonsense, or economic flows or the Wholesale Price Index or the 
Consumer Price Index or any of this economic gobbledygook. If you spend 
more than you take in, you have a deficit, and that adds to your debt.
  Page 42 of the Congressional Budget Office's report shows that we go 
from a $5.5 trillion debt in 10 years to over $7.5 trillion. In the 
next 5 years, according to this chart, we are going to spend $957 
billion more than we take in--under this so-called balanced budget 
plan. Yet everyone is running around, patting each other on the back 
and complimenting each other on fiscal responsibility and discipline. 
``A balanced budget as far as the eye can see,'' says the President. 
Dr. June O'Neill said the same thing yesterday before the Budget 
Committee. Mr. President, they are talking out of the whole cloth.
  Their claims are false. They continue to use these trust funds to 
obscure the debt and deceive the people. We already have used Social 
Security, military, civilian, unemployment, highway, airport, railroad 
of $1.5 trillion we owe now, and under the 1998 projected current 
policy, CBO reports it will be $1.652 trillion. So we are using all of 
these trust funds, and President Clinton said all trust funds. I read 
from that particular report where he said any trust funds. I want to 
make sure everybody gets that because I am not being technical at all.
  I quote President Clinton: ``Tonight I propose we reserve 100 percent 
of the surplus. That's every penny of any surplus.''
  Mr. President, I have two bills that do just that. Boy, are we going 
to put them to the task of truth in budgeting. I ask unanimous consent 
that these bills be printed in the Record.
  There being no objection, the bills were ordered to be printed in the 
Record, as follows:

                                S. 1587

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Pay-as-you-go Extension 
     Act''.

     SEC. 2. AMENDMENT TO THE BALANCED BUDGET ACT.

       Section 252(a) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985 is amended by adding at the end the 
     following: ``This section shall be effective until the 
     Federal budget excluding the receipts and disbursements of 
     the social security trust funds, the Federal military retiree 
     trust fund, the highway trust funds, and any other Federal 
     trust fund included in the gross Federal debt is in balance 
     or surplus.''.
                                  ____


                                S. 1588

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Deficit Integrity Act''.

     SEC. 2. TRUST FUND PROTECTION.

       The receipts and disbursements of the social security trust 
     funds, the Federal military retiree trust fund, the highway 
     trust funds, the medicare trust fund, the civil service 
     retirement trust fund, the unemployment trust fund, the 
     airports trust fund, and any other Federal trust fund 
     included in the gross Federal debt shall not be--
       (1) included in the Federal budget baseline for any fiscal 
     year; and
       (2) counted as new budget authority, outlays, receipts, or 
     deficit or surplus for purposes of--

[[Page S201]]

       (A) offsetting any tax decrease; and
       (B) offsetting any spending increase.

  Mr. HOLLINGS. This is a short, one-paragraph bill. It says that 
Congress cannot use any of these surpluses and trust funds for any tax 
cut or any spending increase where we have caps.
  Maybe, Mr. President, they will get the money from the tobacco 
settlement. I don't know where they will get the money from.
  You are looking at a Senator who voted against spending increases and 
against tax cuts last year in order to try to bring about fiscal 
responsibility. We enjoy a good economy, Mr. President. And we want to 
stay the course. But let us practice truth in budgeting, and let us 
mean it. I have provided all the facts and figures here.
  There is a chart that everybody in America ought to see: the gross 
Federal debt. In the past year, 1997, we ran a deficit not of $22 
billion but of $188 billion. The Congressional Budget Office projects 
an actual deficit of $170 billion. And, Mr. President, in 1999, the 
deficit will increase from $170 billion to $200 billion. Why? Because 
rather than heading in the right direction, Congress and the President 
last year increased spending and cut out revenues. Under current 
policy, the deficit will continue to soar, right on up and away to $205 
billion by the year 2000.
  So everybody ought to understand that Congress and the White House 
can make all the wonderful talks they like; and everyone can say, 
``Well, the President wants to use those funds for spending, and I want 
to use it for tax cuts.'' That suits me, whatever you all want to do, 
but let us have truth in budgeting and let us not use any of the trust 
funds as an offset.
  The bills I introduce today will achieve both of these goals; they 
will ensure an honest budget and protect Social Security and other 
trust funds.
  I thank the distinguished Chair and yield the floor.
  Mr. BUMPERS addressed the Chair.
  The PRESIDING OFFICER. The Senator from Arkansas.
  Mr. BUMPERS. Mr. President, what is the parliamentary situation?
  The PRESIDING OFFICER. Morning business has just concluded.

                          ____________________