[Congressional Record Volume 144, Number 24 (Tuesday, March 10, 1998)]
[House]
[Pages H911-H912]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                      THE PROJECTED BUDGET SURPLUS

  Mr. VISCLOSKY. Madam Speaker, I rise today to address an issue which 
is of great importance to me: the nearly balanced Federal budget and 
what to do with the projected budget surpluses. First, let me say that 
I am extremely pleased at projections which show that the budget is 
nearly balanced. The most recent figures from the Congressional Budget 
Office say that by the year end, the Federal budget will not only come 
into balance but will actually produce an $8 billion surplus.
  While we have certainly made tremendous progress from 1992, when the 
deficit hit a record high of $290 billion, more work needs to be done. 
Even if the deficit does disappear on paper, the budget will not really 
be balanced since the true size of the deficit is masked by borrowing 
from the Federal trust funds.
  It is estimated that for fiscal year 1998, trust fund surpluses from 
programs such as Social Security and the Highway Trust Fund will make 
the deficit appear $155 billion less than it actually is. Therefore, I 
believe we must redouble our efforts to make sure that the budget is 
really balanced without borrowing from the trust funds. If a surplus 
does occur, I am committed to working for the following three goals:
  First, we should take steps to provide for the long-term fiscal 
health of Social Security, Medicare and other Federal retirement 
programs without, I would repeat that, without increasing the payroll 
tax. Under current CBO projections, Medicare is scheduled to run out of 
funds by the year 2010 while Social Security will start to lose money 
in the year 2012 and be unfunded by the year 2029.
  These glum predictions are not the result of gross mismanagement or 
because anyone is guilty of stealing money from the programs. Rather, 
these programs are in trouble because the average American is living 
longer and because health care costs are rising so fast. Therefore, it 
is our responsibility to make the tough choices necessary to ensure 
that these programs can support not only us, but more importantly, our 
children and the generations that come after them.
  Secondly, I believe it is absolutely imperative that we begin paying 
down the massive Federal debt. Since 1980, the gross Federal debt has 
grown more than five times in size to nearly $5.5 trillion. Today, the 
debt is two-thirds the size of our Nation's gross domestic product and 
interest payments on the debt consume 15 cents of every dollar in 
Federal spending. Think about how much better off we would be if this 
money did not have to be spent on interest payments. At today's average 
interest rate of 6.7 percent for every $1 billion in debt we retire, we 
would save $55 million each and every year in interest payments.
  Most economists say that by reducing the debt and thereby shrinking 
interest payments, we would reduce interest rates, increase savings 
rates, keep the tax burden down, and make more money available in both 
the public and private sectors to continue to fuel economic growth. It 
will not happen in the next 10 years, 20 years or even 30 years. But if 
we begin paying off the debt now, eventually we will reduce it to a 
manageable level so it does not eat up such a large portion of our 
national output.
  Finally, we should be investing more in this country's economic 
infrastructure such as roads, bridges, inland waterways, sewage 
treatment plants and airports in order to make American workers and 
businesses more productive and profitable.
  There is little doubt that investing in economic infrastructure has 
positive benefits for all Americans. Improving roads, updating sewer 
systems, modernizing airports and making sure our communications system 
is ready for the 21st century enhances our international 
competitiveness and helps American workers remain the most productive 
in the world.

[[Page H912]]

  Despite the obvious benefits, many infrastructure projects are not 
today receiving adequate funds or are simply being ignored. For 
instance, a 1995 Department of Transportation study found that nearly 
one-third of the roads in this country are in poor or mediocre 
condition.
  The Department of Defense estimates that it will be at least 12 years 
before adequate housing can be built for every soldier in the U.S. 
armed forces.
  And in 1996, the Federal Aviation Administration said it would need 
at least $33 billion over the next 5 years to meet its capital 
improvement needs. Yet last year the Federal Government spent only 
$1.46 billion for airport development projects.
  Madam Speaker, we have a moral responsibility to provide a solid and 
fiscally secure future for the generations that will follow us.

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