[Congressional Record Volume 145, Number 8 (Tuesday, January 19, 1999)]
[Senate]
[Pages S428-S430]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. FEINGOLD (for himself and Mr. Hollings):
  S. 27. A bill to amend the Balanced Budget and Emergency Deficit 
Control Act of 1985 to extend and clarify the pay-as-you-go 
requirements regarding the Social Security trust funds; to the 
Committee on the Budget and the Committee on Governmental Affairs, 
jointly, pursuant to the order of August 4, 1977, with instructions 
that if one Committee reports, the other Committee have thirty days to 
report or be discharged.

[[Page S430]]

         THE SOCIAL SECURITY TRUST FUND PROTECTION ACT OF 1999

  Mr. FEINGOLD. Mr. President, I am pleased to join my good friend, the 
Senator from South Carolina (Mr. Hollings), in offering the Social 
Security Trust Fund Protection Act of 1999, legislation extending our 
current PAYGO budget rules, and clarifying that Congress may not use 
so-called budget surpluses to pay for tax cuts or new spending when 
those surpluses are really Social Security Trust Fund balances.
  Mr. President, as I noted last year when I first offered this 
measure, it gives me particular pleasure to join with Senator Hollings 
in introducing this bill.
  Both in this body and in the Budget Committee, he has been a leading 
voice for fiscal prudence.
  While popular in theory, fiscal prudence is often less attractive in 
practice, but Senator Hollings has taken tough positions, even when 
those positions may not have been politically attractive.
  That is the true measure of commitment to honest and prudent 
budgeting, and I am proud to join him in this effort today.
  Mr. President, the bill we are introducing today ensures that the 
PAYGO rule will continue to require that any new entitlement spending 
or tax cuts be fully paid for.
  Our bill clarifies current PAYGO procedures to remove any doubt that 
tax cuts or increased spending must continue to be offset.
  It extends the PAYGO rule, which currently covers legislation enacted 
through 2002, until we are no longer using Social Security to mask the 
deficit.
  Under our bill, Congress could not use a so-called surplus until it 
is real, namely when the budget runs a surplus without using Social 
Security Trust Funds.
  Mr. President, we have entered an era of transition with regard to 
the Federal budget.
  For decades, Congress and the White House ran up huge deficits, 
producing a mounting national debt.
  Over the past few years, we have worked to bring down those deficits.
  Those efforts have been successful, in large part, and we are now 
witnessing something Congress has not seen in 30 years--actually 
achieving balance in the so-called unified budget.
  But, Mr. President, while achieving a balanced unified budget is a 
significant and encouraging accomplishment, it is not a final victory.
  We still have a way to go.
  Unfortunately, Mr. President, some do want to declare a final 
victory, and use any projected unified budget surpluses for increased 
spending or tax cuts.
  But as many have noted on this floor, projected surpluses based on a 
so-called unified budget are not real.
  In fact, far from surpluses, what we really have are continuing on-
budget deficits, masked by Social Security revenues.
  The distinction is absolutely fundamental.
  As I have noted before, the very word ``surplus'' connotes some extra 
amount or bonus in addition to the funds we need to meet our expenses 
and obligations.
  One dictionary defines ``surplus'' as: ``something more than or in 
excess of what is needed or required.''
  Mr. President, the projected unified budget surplus is not ``more 
than or in excess of what is needed or required.''
  Those funds are needed.
  They were raised by the Social Security system, specifically in 
anticipation of commitments to future Social Security beneficiaries.
  Mr. President, let me just note that the problem of using Social 
Security trust fund balances to mask the real budget deficit is not a 
partisan issue.
  Both political parties have used this accounting gimmick--here in 
Congress and in the White House.
  But it must stop, and this legislation can help us stop it.
  Mr. President, budget rules cannot by themselves reduce the deficit, 
but they can protect what has been achieved and guard against further 
abuse.
  The PAYGO rule governing entitlements and taxes, along with the 
discretionary spending caps, have kept Congress disciplined and on 
track.
  Mr. President, earlier I said we are in an era of budget transition.
  With some hard work this year, we can leave the years of unified 
budget deficits behind us.
  And with some more work, we can move toward real budget balances 
without using Social Security revenues.
  Mr. President, that must be our highest priority.
  If Congress does not begin to rid itself of its addiction to Social 
Security trust fund balances, we will put the benefits of future 
retirees at serious risk.
  Fortunately, Mr. President, we are within reach of the goal of 
balancing the budget without using the Social Security trust funds.
  If we stay the course, and continue the tough, sometimes unpopular 
work of reducing the deficit, we can give this Nation an honest budget, 
one that is truly balanced.
  And the time to act is now.
  Mr. President, I ask unanimous consent that the bill be printed in 
the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 27

       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 ``Social Security Trust Fund 
     Protection Act of 1999''.

     SEC. 2. EXTENSION AND MODIFICATION OF PAY-AS-YOU-GO 
                   REQUIREMENT.

       (a) Extension.--
       (1) In general.--Section 252(a) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985 is amended by striking 
     ``enacted before October 1, 2002,'' both places it appears.
       (2) Points of order.--Section 275(b) of the Balanced Budget 
     and Emergency Deficit Control Act of 1985 is amended by 
     striking the last sentence.
       (b) Modification.--
       (1) Definition.--Section 250(c) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985 is amended by adding at 
     the end the following new paragraph:
       ``(20) The term `budget increase' means, for purposes of 
     section 252, an increase in direct spending outlays or a 
     decrease in receipts relative to the baseline, and the term 
     `budget decrease' means, for purposes of section 252, a 
     decrease in direct spending outlays or an increase in 
     receipts relative to the baseline.''.
       (2) Purpose.--Section 252(a) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985 is amended--
       (A) by striking ``increases the deficit'' and inserting 
     ``results in a net budget increase''; and
       (B) by inserting before the period the following: ``except 
     to the extent that the total budget surplus exceeds the 
     social security surplus''.
       (3) Timing.--Section 252(b)(1) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985 is amended--
       (A) in its side heading by inserting ``and amount'' after 
     ``Timing''; and
       (B) by striking ``net deficit increase'' and inserting 
     ``net budget increase'' and by adding at the end the 
     following new sentence: ``The requirement of the preceding 
     sentence shall apply for any fiscal year only to the extent 
     that the surplus, if any, before the sequestration required 
     by this section in the total budget (which, notwithstanding 
     section 710 of the Social Security Act, includes both on-
     budget and off-budget Government accounts) is less than the 
     combined surplus for that year in the Federal Old-Age and 
     Survivors Insurance Trust Fund and the Federal Disability 
     Insurance Trust Fund.''.
       (4) Calculating.--Section 252(b)(2) of the Balanced Budget 
     and Emergency Deficit Control Act of 1985 is amended--
       (A) in its side heading by striking ``deficit increase'' 
     and inserting ``net budget increase'';
       (B) by striking ``deficit increase or decrease'' the first 
     place it appears and inserting ``any net budget increase''; 
     and
       (C) by striking ``any net deficit increase or decrease in 
     the current year resulting from''.
       (5) Eliminating.--The side heading of section 252(c) of the 
     Balanced Budget and Emergency Deficit Control Act of 1985 is 
     amended by striking ``Deficit Increase'' and inserting ``Net 
     Budget Increase''.
                                 ______