[Congressional Record Volume 144, Number 10 (Wednesday, February 11, 1998)]
[Senate]
[Pages S608-S609]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                    THE PRESIDENT'S PROPOSED BUDGET

  Mr. FEINGOLD. Mr. President, I rise today to offer some initial 
comments on the President's proposed budget for fiscal year 1999. As 
with any budget, there will be occasion to discuss and debate the many 
individual provisions it contains. I have already heard some legitimate 
concerns voiced about some of the provisions from both sides of the 
aisle, and I very much look forward to working with my colleagues on 
the Budget Committee to fashion what I hope will be the second 
consecutive bipartisan budget agreement.
  Despite the many issues surrounding individual provisions, though, we 
have to acknowledge what a historic moment this is. The President's 
budget is historic. For the first time in 30 years, a President has 
submitted a unified budget that actually balances. That is an 
achievement worth noting and noting again. While many of us believe we 
have a way to go before we can talk about having a genuine balance, it 
is fitting to pause for a moment to acknowledge the tremendous progress 
that has been made.
  The President's proposal also marks the end of one budget era and, I 
think, really the beginning of a transition period that may require 
changing some of our budget rules, and I will have more to say on that 
subject in the coming weeks. It is also worth remembering how far we 
have come and how we reached this important benchmark. First and 
foremost was the 1993 deficit reduction package. That was one of the 
toughest votes I think many of us have ever taken in this legislative 
body. It wasn't pleasant and it wasn't supposed to be pleasant. As we 
have found, there just is no painless solution to the deficit, and we 
had to take a different kind of step. In fact, Mr. President, it was 
the very toughness of that 1993 package that told me it was worth 
supporting. Let me also say that last year's bipartisan budget 
agreement also contributed to the effort. I repeat my admiration for 
the work done by the chairman of the Budget Committee, the Senator from 
New Mexico, Mr. Domenici, and also the ranking member, the Senator from 
New Jersey, Mr. Lautenberg, who worked so hard to make that agreement 
possible.
  Mr. President, I wish that agreement had gone further. As I have 
noted on other occasions, I really wish we had refrained from enacting 
that fiscally irresponsible tax package last year. If we had, the 
unified budget would have actually reach balance earlier. Nevertheless, 
both of those efforts helped bring us to where we are today and all 
concerned deserve praise.

[[Page S609]]

  Mr. President, in addition to the notable accomplishment of 
submitting a balanced unified budget, the President also cautioned 
Congress not to spend the unified budget surplus that is projected, but 
instead to use those funds to protect Social Security. I think this is 
one of the better statements we have had in a long time with regard to 
not only fiscal responsibility, but also our responsibility to future 
generations that hope to obtain the benefits of the Social Security for 
which they have already been paying.
  The President's admonition in this regard may have been just as 
important as his achievement in proposing a balanced unified budget. 
The President is absolutely right in urging that any unified budget 
surpluses not be spent. But while I strongly agree with his sentiment, 
I approach this issue from a little different perspective. Again, there 
are many of us who do not view the unified budget as the appropriate 
measure of our Nation's budget. In particular, I want to acknowledge 
two of my colleagues on the Budget Committee, the Senator from South 
Carolina, Mr. Hollings and the Senator from North Dakota, Mr. Conrad, 
for their consistent warnings on this issue of how we calculate and 
determine and speak about what is really a balanced budget.
  Mr. President, the unified budget is not the budget which should 
guide our policy decisions. The projected surpluses in the unified 
budget are not real. In fact, far from surpluses, what we really have 
are continuing on-budget deficits masked, in part, by Social Security 
revenues. Now, this distinction is absolutely critical. The very word 
``surplus'' connotes that there is some extra amount of money or bonus 
around. One definition of the word surplus is, ``something more than, 
or in excess of, what is needed or required.''
  Mr. President, the projected unified budget is not more than or in 
excess of what is needed or required. Those funds are required. Those 
funds are spoken for. In this regard, I take just slight exception to 
the President's characterization that we should use the surplus to 
protect Social Security. Some could infer from his comments that the 
President has chosen, from various alternatives, the best or most 
prudent option for using surplus funds. I am afraid people will look at 
it that way and, certainly, from the perspective of the unified budget, 
it is arguably the best and most prudent option, if we really had 
surpluses. But, Mr. President, those of us who see the unified budget 
as merely an accounting convenience do not believe this is an 
alternative or an option. To repeat, Mr. President, those revenues are 
already spoken for. They were raised by Social Security for future use.
  Mr. President, we have various trust funds in our budget, but Social 
Security is unlike most other trust funds, and it is unlike the others 
in this respect: It is by law ``off budget.''
  It was taken off budget for this very reason; namely, the decision by 
Congress to forward fund Social Security by raising additional revenues 
in the near term to ensure the long-term solvency of the program.
  Mr. President, I urge all of my colleagues to choose their use of the 
word ``surplus'' very carefully. The problem with the use of the word, 
or the overuse of the word, is that it encourages a way of thinking 
which may jeopardize not only the work that we have accomplished over 
the past 5 years but also the additional work that must be done to put 
our Nation on a firm financial footing.
  The use of this term improperly encourages the kind of ``business as 
usual'' policies that promise immediate gratification while putting off 
tough budget-cutting decisions until later.
  Mr. President, it is kind of like buying an expensive Valentine's Day 
gift for your sweetheart and then charging it to her credit card.
  That is not the way to do business. That is hardly an honest approach 
to budgeting either.
  Mr. President, the challenge before us now is to move quickly toward 
eliminating the on-budget deficit, balancing the budget without using 
Social Security trust funds, and in so doing to begin the very 
important process of bringing down and paying down our national debt.
  Mr. President, we have to play it straight with the American people. 
We need to give them an honest balanced budget.
  I very much hope this body will act to put us on that path this year, 
and I very much look forward to working with other members of the 
Budget Committee to ensure that we really do reach an honest balanced 
budget.
  Mr. President, I yield the floor.
  Ms. SNOWE addressed the Chair.
  The PRESIDING OFFICER. The Senator from Maine is recognized.
  Ms. SNOWE. Thank you, Mr. President.

                          ____________________