[Congressional Record Volume 145, Number 47 (Wednesday, March 24, 1999)]
[Senate]
[Pages S3229-S3240]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




        CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL YEAR 2000

  The Senate continued with the consideration of the concurrent 
resolution.


                           Amendment No. 157

  The PRESIDING OFFICER. The Senator from Iowa.
  Mr. HARKIN. Mr. President, I yield myself 10 minutes.
  I am pleased to join my chairman, Senator Specter, in offering this 
amendment. Two years ago, the Senate went on record, 98 to 0, 
committing to double the NIH budget over 5 years.
  Last year, Senator Specter and I were able to make good on that 
pledge by providing the biggest increase ever for medical research. We 
worked hard to make it happen. I thank all my Senate colleagues for 
working with us on that historic accomplishment.
  The omnibus appropriations bill for this year contains a $2 billion, 
or a 15-percent, increase for the National Institutes of Health. That 
15 percent puts us on track to meet our commitment to double the NIH 
budget for 5 years, which, I repeat, was voted on here 98 to 0.
  Unfortunately, if we pass this budget resolution as it is, we will 
fall far short of the 15-percent increase necessary to maintain that 
commitment.
  This budget resolution shortchanges Americans' health and 
shortchanges our efforts to control health care costs and keep Medicare 
solvent in the long run.
  At the same time that this budget shortchanges basic investments in 
health care, the budget before us increases the Pentagon budget by $18 
billion--$8.3 billion more than the President's request--to defend 
America against some ill-defined international threat.
  What this budget should do is spend at least $2 billion more to 
defend us against the very real threats here at home every day --the 
threat of cancer, the threat of Alzheimer's, the threat of diabetes, 
the threat of osteoporosis.
  Recently, under the leadership of Senator Specter, we had a hearing, 
and one of our witnesses was Gen. Norman Schwarzkopf. He was in town to 
urge Congress to increase its investment in medical research. He 
understands better than most that we cannot mount a strong defense 
without adequate resources. While we made some progress last year, we 
still have a long way to go.
  Under the budget before us, NIH will only be able to fund about one 
in four meritorious research proposals. Those are research proposals 
that have gone through the peer review process deemed worthy of 
investigation. Only one in four will be funded.
  In the next 30 years, the number of Americans over age 65 will 
double. Medical research is essential to help reduce the enormous 
economic and social burdens posed by chronic diseases that impact our 
elderly from Alzheimer's and arthritis to cancer and Parkinson's and 
stroke.
  Take Alzheimer's disease. It alone costs the Nation over $100 billion 
a year. We know that simply delaying the onset by 5 years could save us 
over $50 billion a year. Delaying the onset of heart disease by 5 years 
would save over $69 billion a year. That is why I often say to my 
colleagues and others, if you really want to save Medicare, invest in 
medical research. That will take care of the looming deficit in 
Medicare. We are on the verge of breakthroughs in these and other 
areas. Now is the time to boost our investment to make sure that our 
Nation's top scientists can turn these opportunities into realities.
  In addition to funding more research grants, another area that is 
critical to making the breakthroughs we know are possible is making 
sure we have state-of-the-art laboratories and equipment. However, most 
of the research is currently being done in laboratories built in the 
1950s and 1960s.
  According to the most recent National Science Foundation study, 47 
percent of all biomedical research performing institutions classified 
the amount of biological science research space as inadequate, and 51 
percent indicated they had an inadequate amount of medical research 
space. So the need is great.
  Our amendment is very simple. It ensures that the budget resolution 
will provide a $2 billion increase to the National Institutes of Health 
for fiscal year 2000, and it is fully paid for. It is paid for by the 
very industry that has caused most of the death and disease in this 
country.
  As I said before, Mr. President, tobacco kills more Americans each 
year than alcohol, car accidents, suicides, AIDS, homicides, illegal 
drugs, and fires all put together.
  Simply put, our amendment turns tobacco profits toward the cure for 
the cancer, emphysema, and heart disease that it causes.
  During the dealings that led to the tobacco settlements, the tobacco 
lawyers made sure that all the payments they made to the States would 
be considered ``normal and necessary business expenses.'' But there is 
nothing ordinary about this settlement. The tobacco industry has 
peddled a product that has killed millions of Americans through their 
deceptive advertising and sales practices. As a result of that loophole 
in the settlement, the tobacco industry can write off 35 percent of 
their entire settlement payment. That means American taxpayers, not big 
tobacco, will have to cough up as much as 35 percent of the cost, $2 
billion this year alone, and continuing the next 25 years of the 
tobacco settlement.
  In effect, the tobacco settlement is a $70 billion tax on the 
American people. What our amendment says is that basically the tobacco 
companies will not be able to deduct from their Federal taxes the 
amount of money that they pay to the States for this settlement. The 
American people have paid enough. To make them pay an additional $70 
billion to cover up for the tobacco companies' tax deductions for their 
settlements is adding insult to death and injury.
  Let me add one other thing, Mr. President. I have heard there is some 
misinformation floating out there about our amendment. Let me be clear. 
Our amendment would have absolutely no impact on the amount of 
settlement funds going to the States. The settlement has a clause that 
requires a dollar-for-dollar reduction in payments to the States if 
additional taxes are raised on tobacco and spent by the States, if the 
money is remitted to the States. Not one penny of the Specter amendment 
would go to the States but would all go to the National Institutes of 
Health. Therefore, it in no way violates that provision of the 
settlement.
  Mr. President, I have a letter dated today from the Congressional 
Research

[[Page S3230]]

Service that makes it very clear that our amendment does not violate 
the master settlement agreement made between the States and tobacco 
companies. I ask unanimous consent that the letter be printed in the 
Record.
  There being no objection, the letter was ordered to be printed in the 
Record, as follows:

                               memorandum

     To: Senate Committee on Appropriations, Attention: Mary 
           Dietrich.
     From: Stephen Redhead, Specialist in Public Health, Domestic 
         Science Policy Division.
     Subject: MSA Federal Legislation Offset.
       Under Section X of the Master Settlement Agreement (MSA), 
     annual payments to states are subject to a federal tobacco-
     legislation offset: If new federal legislation that requires 
     tobacco companies to make payments (``settlement payments, 
     taxes, or any other means'') to the federal government is 
     enacted on or before November 30, 2002, and some portion of 
     that money is made available to the states as (i) 
     unrestricted funds, or (ii) earmarked for health care 
     (including tobacco-related health care), those payments may 
     be offset, dollar for dollar, from the annual payments to 
     states.
       S. Con. Res. 20 proposes federal legislation that would 
     disallow the tobacco companies' federal income tax deduction 
     for the MSA payments and use $1.4 billion of the resulting 
     revenues to fund biomedical research at the National 
     Institutes of Health (NIH). There is some concern that such 
     legislation might lead to a reduction in the MSA payments to 
     states by triggering the federal tobacco-legislation offset.
       Although legislation disallowing a federal income tax 
     deduction for tobacco settlement payments meets the Section X 
     definition above, earmarking a portion of the funds for NIH 
     research would not appear, by itself, to satisfy the 
     criterion that money be ``made available'' to the states. NIH 
     awards grants to individual researchers and research 
     institutions under a variety of grant programs, but not to 
     states.
       S. Con. Res. 20 might very possibly lead to a reduction in 
     state settlement payments because of the MSA's volume-of-
     sales adjustment, which links the payments to the number of 
     packs of cigarettes sold. If the companies are disallowed the 
     federal tax deduction, then they will have to increase prices 
     to raise the necessary revenue to pay the taxes. The 
     companies have already increased prices by 75 cents a pack 
     over the past 2 years, which appears to have reduced 
     consumption. If the additional price increase further 
     depresses consumption, then under the volume-of-sales 
     adjustment the states' payments will be reduced 
     proportionately.

  Mr. HARKIN. Mr. President, let me close by saying that we went on 
record 98-0 to double the NIH budget over the next 5 years. Last year, 
Senator Specter and I and others were able to put that 15-percent 
increase in there to get us on that road. This budget this year pulls 
the rug out from under that.
  The people of America want us to invest in medical research. They 
want us to double the NIH budget. They believe it is important.
  In a recent poll taken of the American people, more than 67 percent 
support doubling the research budget at NIH; 85 percent said it is 
important for us to maintain our leadership in medical research; 61 
percent of the American people polled said they would be willing to pay 
$1 more a week in taxes to increase health research. The support is 
there.
  There is no reason why the tobacco companies ought to be able to 
deduct from their Federal taxes the money that they are giving to the 
States in that settlement. They wrote it in that agreement, but that 
does not bind us.
  This amendment does not violate the agreement. What it does is it 
saves the American taxpayers over $70 billion that they will have to 
pay to save the tobacco companies their money.
  This amendment also saves Medicare--by putting this money into 
medical research to help solve the diseases of Alzheimer's, 
osteoporosis, arthritis, and diabetes. If you want to save Medicare, 
adopt the Specter amendment. If you want to save the taxpayers money, 
adopt the Specter amendment. If you want to save peoples' lives, adopt 
the Specter amendment.
  Mr. President, how much time do we have remaining on our side?
  The PRESIDING OFFICER. Five minutes 22 seconds.
  Mrs. FEINSTEIN. Mr. President, today I am pleased to sponsor the 
amendment to increase funding for health research by $2 billion. I do 
so because we must confront disease as seriously as we confront war. 
This means we must support our brightest minds, we must have a clear 
battle plan and we must find the resolve to win the war against 
disease.
  This amendment comes on the heels of several previous efforts. First, 
in 1997, the Senate adopted the Mack-Feinstein amendment 98 to 0, 
urging Congress to double the budget of the National Institutes of 
Health over 5 years. Second, last year, Congress gave the National 
Institutes of Health an increase of 15 percent, funding NIH at $16 
billion, the first step toward doubling. Third, on February 2, when we 
learned that the President's FY 2000 budget proposed only a 2 percent 
increase, not even enough to keep up with inflation, I wrote the 
President and urging instead that NIH funding be doubled by 2004.
  It is a sad comment on our nation that the National Institutes of 
Health in FY 1999 can only fund 31 percent of grant applications. 
grants. The National Cancer Institute can only fund 31 percent. This is 
less than one-third of applications worthy of funding. This low funding 
rate leaves a vast wealth of knowledge unobtained, unexplored, diseases 
not cured and not treated.
  There are many scientifically promising areas of research to which 
these funds could be devoted. They include gaining a clearer 
understanding of neural development; improving identification of 
inherited mutations which contribute to cancer risk; better 
understanding the interplay between genetics and environmental risk 
factors; uncovering the causes of over 5,000 known rare diseases 
affecting over 20 million Americans.
  In cancer, a special interest of mine, the President requests only a 
2 percent increase in FY 2000. NCI Director Dr. Richard Klausner has 
said that with this minimal increase, NCI would fund 10 percent fewer 
grants, according to the February 12 Cancer Letter. The National Cancer 
Advisory Board said this budget will ``seriously damage the National 
Cancer Program.''
  Last September, the Senate Cancer Coalition which I cochair, held a 
hearing for the Cancer March who said that cancer has reached epidemic 
proportions and if current rates continue, one quarter of our 
population will die from cancer. Because of the aging of the 
population, the incidence of cancer will reaching ``staggering 
proportions'' by 2010, with increase of 29 percent in incidence and 25 
percent in deaths, at a cost of over $200 billion per year. They argued 
that these compelling statistics call for raising funding for cancer 
research to $10 billion by 2003, a 20 percent increase each year.
  The National Cancer Institute has identified 5 promising areas of 
research in its FY 2000 ``bypass budget.'' They are as follows: (1) 
Cancer genetics, identify and characterize every major human gene 
predisposing to cancer. (2) Preclinical models of cancer, study genes 
and effects of alterations of them in animals ; (3) Diagnostic 
technologies, to improve the sensitivity of technologies to detect 
smaller numbers of tumor cells; (4) Better understanding the unique 
characteristics of cells and why it turns into a cancerous cell.
  There are still many--too many--diseases for which we have no cure. 
This year, 1.2 million cases will be diagnosed this year and 563,100 
Americans will die. But we spend one-tenth of one cent of every federal 
dollar on cancer research. The mortality rates for many cancers, like 
prostate, liver, skin and kidney, continue to increase. AIDS has 
surpassed accidents as the leading killer of young adults; it is now 
the leading cause of death among Americans ages 25 to 44. Diabetes and 
asthma are rising. 40,000 infants die each year from devastating 
diseases. Seven to 10 percent of children are learning disabled. Birth 
defects affecting function occur in 7% of deliveries or 250,000 of 
births.
  The baby boom generation is getting older. Over the 30 years, the 
number of Americans over age 65 will double. As our population ages, we 
are seeing an increase in chronic and degenerative diseases like 
arthritis, cancer, osteoporosis, Parkinson's and Alzheimer's. For 
example, the 4 million people with Alzheimer's Disease today will more 
than triple, to 14 million, by the middle of the next century--unless 
we find a way to prevent or cure it. Health care costs will grow 
exponentially and we see that in part reflected in our budget debates 
over Medicare and Medicaid expenditures. The total annual cost of 
Alzheimer's today is $100 billion. By delaying the onset by 5 years, we 
can save $50 billion annually.

[[Page S3231]]

  In January, we learned from the Institute of Medicine's study, The 
Unequal Burden of Cancer, that not all segments of our population 
benefit fully from our advances in understanding cancer. African-
American males develop cancer 15 percent more frequently than white 
males. Stomach and liver cancers are more prevalent among Asian 
Americans. Cervical cancer strikes Hispanic and Vietnamese American 
women more than others. Many ethnic minorities experience poorer cancer 
survival rates than whites. American Indians have the lowest cancer 
survival rates of any U.S. ethnic group. This study reported that by 
2050 there will be no majority population in the U.S. And our hearings 
of the Cancer Coalition have revealed that minorities are 
underrepresented in cancer clinical trials.
  Discoveries from health research can reduce health care costs. Cancer 
costs the economy $104 annually; heart disease, $128 billion; diabetes, 
$138 billion. Research can cuts costs.. A delay in the onset of stroke 
could save $15 billion and a delay in the onset of Parkinson's disease 
could save $3 billion annually. For every $1.00 spent on measles/mumps/
rubella vaccine, $21.00 is saved. For the diphtheria/tetanus/pertussis 
vaccine, $29 is saved. Reducing hip fractures, the cause of one in five 
nursing home admissions can cut nursing home costs by $333 million in 
one year alone. Delaying the onset of hearing impairment by 5 years in 
the 30 percent of adults age 65 to 75 who have impairment, can save $15 
billion annually.
  The United States is the world's leader in developing sophisticated 
treatments for illnesses and diseases, in making important medical 
discoveries and in improving human life expectancy. Yet, we are 
spending only three cents of every health care dollar spent in this 
country on health research. NIH's budget is less than one percent of 
the federal budget.
  Funding NIH like a yoyo discourages the medical community from 
pursuing research. It is like a damper on ideas, on promising lines of 
scientific pursuit, that get snuffed out while being born. The National 
Academy of Sciences has said that we are not producing enough research 
scientists. That is in part due to the lack of assurance that health 
research has the priority it deserves.
  We can do better.
  The public is with us. A 1998 Research America poll found that most 
Americans support doubling funding for medical research in 5 years and 
over 60 percent of people in 25 states said they are willing to 
contribute another $1.00 per week in taxes for health research.
  Mr. President, when President Franklin Roosevelt dedicated the new 
National Institutes of Health research facility on October 31, 1940 in 
the middle of World War II, he said, ``We cannot be a strong nation 
unless we are a healthy nation. And so we must recruit not only men and 
materials but also knowledge and science in the service of national 
strength . . . I dedicate [this Institute] to the underlying philosophy 
of public health; to the conservation of life; to the wise use of the 
vital resources of the nation.'' That challenge is no less important 
today as it was in 1940.
  I believe the public wants us to launch a war on disease and that the 
public sees medical research as an important priority of their federal 
government. I urge passage of this amendment.
  Mr. HARKIN. Mr. President, I reserve the remainder of the time for 
Senator Specter in the morning, and I yield the floor.
  The PRESIDING OFFICER. Who seeks time?


                           Amendment No. 159

(Purpose: To express the sense of the Senate on TEA-21 funding and the 
                                States)

  Ms. COLLINS. I ask unanimous consent that the pending amendment be 
set aside and send an amendment to the desk.
  The PRESIDING OFFICER. Without objection, it is so ordered. The clerk 
will report.
  The assistant legislative clerk read as follows:

       The Senator from Maine [Ms. Collins] proposes an amendment 
     numbered 159.

  Ms. COLLINS. Mr. President, I ask unanimous consent that reading of 
the amendment be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment is as follows:

       At the end of title III, insert the following:

     SEC.  . SENSE OF THE SENATE ON TEA-21 FUNDING AND THE STATES.

       (a) Findings.--The Senate finds that--
       (1) on May 22, 1998, the Senate overwhelmingly approved the 
     conference committee report on H.R. 2400, the Transportation 
     Equity Act for the 21st Century, in a 88-5 roll call vote;
       (2) also on May 22, 1998, the House of Representatives 
     approved the conference committee report on this bill in a 
     297-86 recorded vote;
       (3) on June 9, 1998, President Clinton signed this bill 
     into law, thereby making it Public Law 105-178;
       (4) the TEA-21 legislation was a comprehensive 
     reauthorization of Federal highway and mass transit programs, 
     which authorized approximately $216,000,000,000 in Federal 
     transportation spending over the next 6 fiscal years;
       (5) section 1105 of this legislation called for any excess 
     Federal gasoline tax revenues to be provided to the States 
     under the formulas established by the final version of TEA-
     21; and
       (6) the President's fiscal year 2000 budget request 
     contained a proposal to distribute approximately 
     $1,000,000,000 in excess Federal gasoline tax revenues that 
     was not consistent with the provisions of section 1105 of 
     TEA-21 and would deprive States of needed revenues.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that the levels in this resolution and any legislation 
     enacted pursuant to this resolution assume that the 
     President's fiscal year 2000 budget proposal to change the 
     manner in which any excess Federal gasoline tax revenues are 
     distributed to the States will not be implemented, but rather 
     any of these funds will be distributed to the States pursuant 
     to section 1105 of TEA-21.

  Ms. COLLINS. Mr. President, I rise to offer a sense-of-the-Senate 
resolution to give the Senate the opportunity to express its clear 
commitment to ensuring that Federal gasoline tax revenues in fiscal 
year 2000 be distributed to the 50 States in accordance with the 
formula in the 1998 highway bill, the Transportation Equity Act for the 
21st Century--or TEA-21 bill, as it is frequently called.
  Mr. President, let me explain the action that has prompted my 
amendment and my concern. President Clinton's fiscal year 2000 budget 
contains a proposal which essentially changes the gas tax rules in the 
middle of the game. The President would distribute approximately $1 
billion in higher-than-expected Federal gas tax revenues to a variety 
of transportation projects, rather than following the formula in the 
current law. Instead of distributing these extra moneys to the States, 
as required by the 1998 highway bill, enacted only 9 months ago, the 
President would divert these funds to other projects.
  To be precise, section 1105 of last year's highway bill expressly 
provides that any additional Federal gas tax revenues above the levels 
envisioned in the act should be distributed to 50 States under the 
highway bill's formulas. These funds are extremely important to the 
States. They support a variety of important transportation programs 
authorized by the TEA-21 bill.
  It now appears that the Federal Government will receive roughly $1.5 
billion in extra Federal gasoline tax revenues next year. The 
President, however, proposes to take $1 billion of these extra revenues 
and spend them on a variety of Federal transportation programs, 
contravening current Federal law.
  Mr. President, if the full $1.5 billion were allocated to the States 
under existing law, the State of Maine would receive roughly $7 million 
in much needed additional highway funds in fiscal year 2000. Under the 
President's proposal, however, which diverts $1 billion of these 
gasoline tax funds, the State of Maine would receive only $3.4 million 
in extra highway funds. This is a reduction of more than 50 percent in 
the funds that would otherwise be allocated to the State of Maine.
  In short, if President Clinton's proposal were implemented, the State 
of Maine would lose approximately $3.6 million in critically needed 
Federal highway funds next year. The President's plan is unfair to 
Maine, it is unfair to the other States, and it should not be 
implemented. It changes course midstream in a way that harms our 
States' ability to meet their transportation needs. States should be 
able to rely on the Federal Government to abide by the commitment that 
it made only last May.
  Mr. President, I am very pleased that the Budget Committee's report 
accompanying the budget resolution states as follows:


[[Page S3232]]


       The committee-reported resolution does not assume the 
     President's proposal to change the distribution of additional 
     Highway Trust Fund revenues under TEA-21.

  My sense-of-the-Senate resolution simply clarifies this language and 
reiterates the intent behind it. That is, that we should follow the 
dictates of the 1998 highway bill and allow any and all extra Federal 
gas tax moneys to go to the States under the terms and the conditions 
of the highway law.
  Approving the sense-of-the-Senate resolution would allow the Senate 
to clearly express its disapproval of the President's plan. We should 
not change the rules. We should follow the allocation in the highway 
bill. We should keep the promise that we made just last May.
  I yield the floor.
  Mr. DODD. I am listening to the argument the Senator has made, and I 
am curious. Is there a chart or list that would inform us how our 
States would be doing under this different formula of which we ought to 
be aware?
  Ms. COLLINS. I am happy to attempt to produce that information for 
the Senator from Connecticut.
  It is a concern of many States that they would receive less money 
under the President's budget than they would receive if the highway 
bill were allowed to just work under current law.
  Mr. DODD. Mr. President, if my colleague would yield further, coming 
from the Northeast and New England, we have recently seen stories in 
newspapers of gas prices going up in the peak travel season for our 
States. I think it may be national in scope, but we feel it 
particularly in the Northeast.
  I commend my colleague from Maine for making this proposal. I think 
it can be a great help, particularly when we find the battle over some 
of the formulas, and where need exists. Certainly the Senator from 
Maine has a great need with a lot of roads, a lot of highways, and a 
relatively small population.
  It is an important amendment. I commend her for that. I might join 
her as a cosponsor in it.
  Ms. COLLINS. I very much welcome the support of the Senator from 
Connecticut.
  Mr. LAUTENBERG. Mr. President, it is my understanding that in terms 
of the manager, the chairman of the Budget Committee, this is 
acceptable. As far as I am concerned, it would be acceptable on our 
side. Therefore, it is fair to say we will accept it.
  Ms. COLLINS. I urge adoption of the amendment.
  The PRESIDING OFFICER (Mr. Hutchinson). The question is on agreeing 
to the amendment.
  The amendment (No. 159) was agreed to.
  Mr. LAUTENBERG. I move to reconsider the vote.
  Ms. COLLINS. I move to lay that motion on the table.
  The motion to lay on the table was agreed to.
  Ms. COLLINS. I thank the chairman and the ranking minority member of 
the Budget Committee for their cooperation.
  Mr. DODD. I want to take note. I think it was my persuasive arguments 
that persuaded the ranking Democrat to support the amendment.


                           Amendment No. 160

  (Purpose: To increase the mandatory spending in the Child Care and 
Development Block Grant by $7.5 billion over five years, the amendment 
   reduces the resolution's tax cut and leaves adequate room in the 
revenue instructions for targeted tax cuts that help families with the 
 costs of caring for their children, and that such relief would assist 
 all working families with employment related child care expenses, as 
 well as families in which one parent stays home to care for an infant)

  Mr. DODD. Mr. President, I ask unanimous consent that the pending 
amendment be set aside, and I send an amendment to the desk and ask for 
its immediate consideration.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The clerk will report.
  The assistant legislative clerk read as follows:

       The Senator from Connecticut [Mr. Dodd], for himself, and 
     Mr. Jeffords, Mr. Kennedy, Mr. Wellstone, Mrs. Murray, Mr. 
     Bingaman, Mr. Johnson, Mr. Kohl, and Mr. Kerry, proposes an 
     amendment numbered 160.

  Mr. DODD. Mr. President, I ask unanimous consent reading of the 
amendment be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment is as follows:

       On page 3, strike beginning with line 5 through page 5, 
     line 14, and insert the following:
       (1) Federal revenues.--For purposes of the enforcement of 
     this resolution--
       (A) The recommended levels of Federal revenues are as 
     follows:
       Fiscal year 2000: $1,401,979,000,000.
       Fiscal year 2001: $1,435,931,000,000.
       Fiscal year 2002: $1,455,992,000,000.
       Fiscal year 2003: $1,532,513,000,000.
       Fiscal year 2004: $1,586,965,000,000.
       Fiscal year 2005: $1,650,257,000,000.
       Fiscal year 2006: $1,683,438,000,000.
       Fiscal year 2007: $1,737,646,000,000.
       Fiscal year 2008: $1,807,517,000,000.
       Fiscal year 2009: $1,870,515,000,000.
       (B) The amounts by which the aggregate levels of Federal 
     revenues should be changed are as follows:
       Fiscal year 2000: $0.
       Fiscal year 2001: -$6,716,000,000.
       Fiscal year 2002: -$52,284,000,000.
       Fiscal year 2003: -$30,805,000,000.
       Fiscal year 2004: -$47,184,000,000.
       Fiscal year 2005: -$60,639,000,000.
       Fiscal year 2006: -$107,275,000,000.
       Fiscal year 2007: -$133,754,000,000.
       Fiscal year 2008: -$148,692,000,000.
       Fiscal year 2009: -$175,195,000,000.
       (2) New budget authority.--For purposes of the enforcement 
     of this resolution, the appropriate levels of total new 
     budget authority are as follows:
       Fiscal year 2000: $1,426,931,000,000.
       Fiscal year 2001: $1,457,294,000,000.
       Fiscal year 2002: $1,488,477,000,000.
       Fiscal year 2003: $1,562,013,000,000.
       Fiscal year 2004: $1,614,278,000,000.
       Fiscal year 2005: $1,667,843,000,000.
       Fiscal year 2006: $1,699,402,000,000.
       Fiscal year 2007: $1,754,567,000,000.
       Fiscal year 2008: $1,815,739,000,000.
       Fiscal year 2009: $1,875,969,000,000.
       (3) Budget outlays.--For purposes of the enforcement of 
     this resolution, the appropriate levels of total budget 
     outlays are as follows:
       Fiscal year 2000: $1,408,292,000,000.
       Fiscal year 2001: $1,435,931,000,000.
       Fiscal year 2002: $1,455,992,000,000.
       Fiscal year 2003: $1,532,513,000,000.
       Fiscal year 2004: $1,584,066,000,000.
       Fiscal year 2005: $1,640,426,000,000.
       Fiscal year 2006: $1,668,608,000,000.
       Fiscal year 2007: $1,717,883,000,000.
       Fiscal year 2008: $1,782,697,000,000.
       Fiscal year 2009: $1,842,699,000,000.
       On page 28, strike beginning with line 13 through page 31, 
     line 19, and insert the following:
       Fiscal year 2000:
       (A) New budget authority, $244,390,000,000.
       (B) Outlays, $248,088,000,000.
       Fiscal year 2001:
       (A) New budget authority, $251,873,000,000.
       (B) Outlays, $257,750,000,000.
       Fiscal year 2002:
       (A) New budget authority, $264,620,000,000.
       (B) Outlays, $267,411,000,000.
       Fiscal year 2003:
       (A) New budget authority, $277,886,000,000.
       (B) Outlays, $277,674,000,000.
       Fiscal year 2004:
       (A) New budget authority, $287,576,000,000.
       (B) Outlays, $287,384,000,000.
       Fiscal year 2005:
       (A) New budget authority, $299,942,000,000.
       (B) Outlays, $300,126,000,000.
       Fiscal year 2006:
       (A) New budget authority, $306,155,000,000.
       (B) Outlays, $306,593,000,000.
       Fiscal year 2007:
       (A) New budget authority, $312,047,000,000.
       (B) Outlays, $312,948,000,000.
       Fiscal year 2008:
       (A) New budget authority, $325,315,000,000.
       (B) Outlays, $326,766,000,000.
       Fiscal year 2009:
       (A) New budget authority, $335,562,000,000.
       (B) Outlays, $337,104,000,000.
       On page 42, strike lines 1 through 5 and insert the 
     following:
       (1) to reduce revenues by not more than $0 in fiscal year 
     2000, $136,989,000,000 for the period of fiscal years 2000 
     through 2004, and $762,544,000,000 for the period of fiscal 
     years 2000 through 2009; and


                         Privilege Of The Floor

  Mr. DODD. Mr. President, I ask unanimous consent that Amy Sussman, a 
fellow in my office, be allowed privileges of the floor.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. DODD. I ask unanimous consent that my colleagues Senator Jeffords 
of Vermont, Senator Kennedy, Senator Kohl, Senator Wellstone, Senator 
Murray, Senator Bingaman, Senator Johnson, and Senator Kerry of 
Massachusetts be added as cosponsors to this amendment.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. DODD. Mr. President, many of my colleagues may know that 9 years 
ago my colleague from Utah and I offered and authored the Child Care 
and Development Block Grant Act of 1990.
  Year after year, we have talked about this important program and 
about what a difference we think it has made in the lives of working 
families.
  Any Member of this body who has spent time in his or her State over 
the

[[Page S3233]]

past 2 months enters this debate about budget priorities knowing with 
absolute certainty that very few issues weigh as heavily on the minds 
of parents across this country than how their children are being cared 
for. Parents worry they can't afford to take time away from work to be 
with their children. When they must work, they worry that the child 
care they need will be unavailable, unaffordable, or unsafe. It is a 
constant daily struggle for parents with young children in this 
country. It is a constant source of concern for parents all across the 
Nation.
  Helping these families does not require inventing a slew of new 
programs. We already have the Child Care and Development Block grant, a 
program that works and that enjoys strong bipartisan support.
  This block grant is a model of flexibility. It provides direct 
financial assistance to help families pay for child care. It does not 
dictate where that child care must be provided. Parents can choose a 
child care center, they can have a home-based provider, a neighbor, a 
church, a relative, whatever they think is best for their child.
  In our opinion, this is an excellent program. In fact, its only 
downside is that the level that it is currently funded at reaches far 
too few families in this country. As a result of underfunding, the 
child care block grant--now almost a decade old--can only serve 1 out 
of every 10 children. This graph highlights that: Out of every 10 
children who are eligible, only 1 today can actually take advantage of 
the child care block grant.
  Consequently, States have had to employ various strategies to ration 
the subsidies that these block grants provide.
  Almost all States without exception have lowered their income-
eligibility requirements far below the federally allowed level--85 
percent of the State's median family income, or approximately $35,000.
  I notice the presence of our colleague from Ohio, and I know as a 
former Governor how he wrestled with these issues. I think he knows 
very graphically what I am about to describe for other colleagues. The 
Presiding Officer was a Governor and he can appreciate this as well.
  Because of underfunding, over 20 states have cut off all assistance 
to families of three earning over $25,000. Fourteen States have cut 
assistance for families earning over $20,000. Seven States are even 
more stringent: Wyoming, Alabama, Missouri, Kentucky, Iowa, South 
Carolina, and West Virginia cut off subsidies for families earning more 
than $17,000 a year--half the income level that is allowed for under 
Federal law.
  What is the effect of this? What happens? In some States, subsidies 
are only provided to parents on or moving off welfare. Working families 
out there living on the margin can't get any help. This is not what I 
think any of us intended to have happen.
  This graph shows that 52 percent of the child care needs of working 
families cannot be met with current funding schemes. They are either 
locked out by strict State income eligibility requirements, they are 
locked out by long waiting lists, or they are locked out by subsidies 
that are too low to pay for the child care they need.
  Even with these strict income eligibility requirements, as I 
mentioned, many States have long waiting lists. How bad are the waiting 
lists? In California, 200,000 children are on waiting lists for child 
care slots. In the State of Texas, it is 36,000; Massachusetts, 16,000; 
Pennsylvania, almost 13,000; Alabama, 19,000; Georgia, 44,500.
  Other States ration their limited child care dollars by paying child 
care providers far below the market rate--again, trying hard to guard 
these dollars carefully.
  For example, my own State of Connecticut has been unable to raise the 
payment rates for child care providers for 7 years. Even during a 
robust economy, we have not been able to increase the pay of child care 
providers because of the lack of funding in the child block grant 
program. It isn't hard to see that paying unrealistically low rates 
makes providers reluctant to accept subsidized children. It also isn't 
hard to see that this practice jeopardizes the ability of families who 
do get assistance to find good quality child care.
  When you look at the astronomical costs of child care, you can see 
how all of these rationing practices put families in a crisis.
  Let me draw the attention of my colleagues to this last chart here. 
These are annual child care fees across the country for children of 
selected ages. I have picked a cross section, with some of the highest 
and some of the less costly States, to give examples. I have broken it 
down by the cost of an infant, which is the highest child care cost, a 
3-year-old, and a 6-year-old. The highest-cost State is Massachusetts. 
In Massachusetts, to take care of a 1-year-old child, the annual cost 
is $11,860; for a 3-year-old, it is $8,840; for a 6-year-old, it is 
$6,660. If you go down the list, I have done North Carolina, Florida, 
Minnesota, Texas, Colorado, and California.
  Consider these numbers for a minute and recall what I showed you 
about how States have lowered the financial eligibility criteria down 
to as low as $17,000. It means that if you live in one of the states 
with strict income eligibility, you might earn $21,000 and not qualify 
for the subsidy, but still be paying $8,580 for the care of an infant. 
If you make $21,000 and have an $8,500 yearly child care bill--you are 
getting close to paying 50 percent of your gross income to care for one 
child.
  If my colleagues would like, I will have this information before the 
vote tomorrow for each State to give Members some idea on what the 
waiting lists are like, to get some sense of how important an issue 
this is for the families living in your States.
  Without help in paying the $4,000 to $11,000 a year that child care 
can cost, low-income working families are forced into the untenable 
position of placing their children in an unsafe, makeshift child care 
arrangement or forgoing employment.
  Unfortunately, what we have before us is a budget that chooses to 
ignore this problem. I say, with all due respect, to those who have to 
draft these budgets, what we have before us is a budget that disregards 
these needs.
  We are being asked to endorse a budget that doesn't just fail to 
provide for an increase in child care funding but in fact would cut 
discretionary child care spending by $122 million in fiscal year 2000--
cutting off assistance to some 34,000 children in the first year, and 
up to 79,000 by the fifth year of the program--in order to pay for tax 
cuts for the more affluent citizens in our society.
  I have heard my colleagues all across this Chamber repeatedly say 
that they only want to return the surplus to working families. That is 
hard to argue. But that is what this amendment does. Working people 
need this.
  This amendment provides an additional $7.5 billion over 5 years for 
the Child Care and Development Block Grant, which goes directly to 
families to help them pay for child care--by a church, by neighbors, by 
family members, We pay for this funding increase by reducing the 
proposed $800 billion tax cut by the same $7.5 billion over 5 years. I 
don't think that is too big a chunk out of that for a very serious 
program which needs help.
  We also make a non-binding statement that if there is a tax cut, we 
want a tax credit for child care that helps all working families as 
well as all parents who stay home to care for an infant.
  That is a critically important issue if you are in the working poor 
category. If you are down at the $15,000 to $25,000 income level, a 
non-refundable tax credit is not very valuable to you because you 
probably have little or no tax bill. Without making the credit 
refundable, you don't get much benefit.

  I hope, Mr. President, that my colleagues will seriously consider 
this amendment. Too often these amendments come up and people sort of 
blow by them, and just march in lockstep.
  If we don't adopt this amendment, we will be very limited in the type 
of child care funding increases we can seek this year. If it is not in 
the budget as part of a mandatory spending, I'm essentially closed out 
for the year.
  Others have said in the past, ``Don't make it mandatory. Take your 
best shot in the discretionary spending and fight over appropriations 
that.'' I have tried that over the years, I say to my colleagues. You 
just don't win. And this year will be harder than ever because, as you 
know, we have about a 12 percent across-the-board cut in nondefense 
discretionary programs. For

[[Page S3234]]

me to get $7.5 billion over 5 years in a discretionary nondefense 
appropriations battle, is not going to happen.
  You have to ask yourself a tough question: Regarding that $800 
billion tax cut, as important as it is to many of you, would you mind 
reducing it by $7.5 billion over 5 years to try to make a difference 
here for working families who need child care?
  You also have to ask if tax credits should go to all working families 
and stay-at-home parents. Low-income families in both these situations 
make tough choices and they ought to have the backing of their 
representatives in Congress, in my view.
  I ask my colleagues who are here this evening, or others who may be 
watching the debate, before the vote tomorrow, to please take a hard 
look at this amendment and see if you can find a way to be supportive 
of it. This is the only opportunity we will have to really deal with 
this issue, and unless it is included in this budget resolution, it is 
essentially off the table. That is it for the 106th Congress. This is 
our one opportunity to do something to help these families.
  Mr. KENNEDY. Mr. President, Senator Dodd and I offer this amendment 
to do more to help working families secure quality child care.
  Child care is one of the most important challenges facing the Nation. 
The need to improve the affordability, accessibility, and quality of 
child care is indisputable. Every day, millions of parents go to work 
and entrust their children to the care of others. An estimated 13 
million children under 6 years old are regularly in child care.
  Every working parent wants to be sure that their children are safe 
and well cared for. Yet child care can be a staggering financial 
burden, consuming up to a quarter of the income of low-income families. 
Child care can easily cost between $4,000 and $10,000 for one child. 
But about half of all young children live in families with incomes 
below $35,000. And two parents working full-time at the minimum wage 
earn only $21,400. These parents--working parents--constantly must 
choose between paying their rent or mortgage, buying food, and being 
able to afford the quality care their children need.
  Existing child care investments fall far short of meeting the needs 
of these parents and their children. Today, 10 million low-income 
children theoretically qualify for services under current Federal child 
care programs. But because of lack of funding, only one in ten of these 
children actually receive it. The need is great and a ratio like that 
is unacceptable.
  Making sure that all children receive quality care especially in the 
early years, is one of the best possible investments in America's 
future. We know the enormous human potential that can be fulfilled by 
ensuring that all children get adequate attention and stimulation 
during the first three years of life. Quality child development 
increases creativity and productivity in our workforce. There is less 
need for remedial education and less delinquency. Safe, reliable care 
offers stable relationships and intellectually stimulating activities. 
Child care that fulfills these goals can make all the difference in 
enabling children to learn, grow, and reach their potential. If we are 
serious about putting parents to work and protecting children, we must 
invest more in child care help for families.
  President Clinton has put families first by giving child care the 
high priority it deserves. Senate Democrats have proposed an increase 
in our commitment to child care by at least $7.5 billion in mandatory 
spending over the next 5 years, almost doubling the number of children 
served from 1 million to 2 million in 2005.
  The benefits from investing in children are substantial and many. A 
lifetime of health costs are lower when children are supervised, 
educated about their health, and taught to develop healthy habits. 
Parents' productivity improves when they know that their children are 
well cared for. Education costs decrease when children enter school 
ready to learn. By expanding child care and child development programs, 
we invest in children, their future, and the country's future.
  Yet this budget resolution allots no funds for increased child care 
and development programs. In fact, the Republican budget slashes funds 
for critical programs for children. It denies 100,000 children the Head 
Start services that help them come to school ready to learn. It makes 
it impossible to reach the goal of serving a million children in Head 
Start by 2002. The message contained in the budget resolution is 
clear--children are not a priority.
  The Nation's children and families deserve a budget that invests in 
the right priorities--not the priorities of the right wing. This 
Republican budget makes children a non-priority--and gives high 
priority to an $800 billion tax cut for the wealthy. Those priorities 
are wrong for children, wrong for Congress, and wrong for the Nation.
  Now, when we have a large national surplus and a strong economy, it 
is time to invest in our most valuable resource--our children. I urge 
my colleagues to support this amendment.
  Mr. VOINOVICH addressed the Chair.
  Mr. REED. Mr. President, parliamentary inquiry: Are we going back and 
forth to each side?
  The PRESIDING OFFICER. There is no order. However, there is an 
amendment pending.
  Mr. REED. I ask unanimous consent to lay the amendment aside. My 
amendment is at the desk.
  The PRESIDING OFFICER. I think it is informal to go back and forth.
  Mr. REED. I withdraw my unanimous consent request.
  The PRESIDING OFFICER. The Chair thanks the Senator.
  The Senator from Ohio.
  Mr. VOINOVICH. Mr. President, I ask unanimous consent that the 
pending amendment be set aside.
  The PRESIDING OFFICER. Without objection, it is so ordered.


                           Amendment No. 161

       (Purpose: Use on-budget surplus to repay the debt instead 
     of tax cuts.)

  Mr. VOINOVICH. Mr. President, I send an amendment to the desk.
  The PRESIDING OFFICER. The clerk will report.
  The assistant legislative clerk read as follows:

       The Senator from Ohio [Mr. Voinovich] proposes an amendment 
     numbered 161.

  Mr. VOINOVICH. Mr. President, I ask unanimous consent that reading of 
the amendment be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  (The text of the amendment is printed in today's Record under 
``Amendments Submitted.'')
  Mr. VOINOVICH. Mr. President, we are debating a budget resolution in 
the Senate that will provide an outline for our Nation's spending for 
the next fiscal year. With the assurances of the Republican leadership, 
we will be sticking to our guns on the spending caps that we agreed to 
in the 1997 balanced budget agreement. And we will lock away the Social 
Security trust funds in a lockbox.
  Earlier today, the Senate reaffirmed its commitment to Social 
Security, voting unanimously 99 to 0 that current and future Social 
Security trust funds should remain only for Social Security. It was the 
right thing to do. But incredibly, President Clinton has threatened to 
veto a similar measure, the Abraham-Domenici Social Security lockbox 
bill. It is unconscionable for the President to undermine the efforts 
of Congress to save Social Security just so he can use the Social 
Security surplus to pay for his pet projects.
  As cosponsor of the lockbox legislation, I believe it represents a 
golden opportunity to show that Washington is serious about keeping its 
word to our seniors and future retirees. Since the Senate voted 99 to 0 
this afternoon, I expect that all of my Democratic colleagues will vote 
for the Social Security lockbox bill when it comes to the floor and 
urge the President not to veto this legislation.
  The Senate meanwhile will have to make some tough budget choices in 
fiscal year 2000, and we will have to do more with less. It is not 
going to be easy, because we have so many competing demands chasing so 
few dollars--demands such as military pay and readiness, education, and 
perhaps Medicare. And, yes; now that the President has started to bomb 
Kosovo we may need a lot more money to pay for a brand new war.
  I would like to remind my colleagues this evening that the cost of 
that war is coming out of the Social Security surplus. The money to pay 
for that war is being paid for out of the Social Security surplus.

[[Page S3235]]

  I also recognize that we may have to deal with emergencies as they 
occur. I applaud the chairman of the Budget Committee for drafting a 
resolution that addresses those needs. Under his leadership, Senator 
Domenici has acknowledged that we must reserve $131 billion, or what I 
would like to call a rainy day fund, that may only be used--let me 
stress--may only be used for Medicare, agriculture, Federal 
emergencies, or debt reduction.
  While the chairman and I agree on that point, I do respectfully have 
a difference of opinion on using the onbudget surplus for tax cuts.
  The amendment that I am offering is a simple one. It takes the tax 
cuts proposed in the budget resolution and uses the money to pay down 
the debt. Let me say again, under my amendment, we would take the $778 
billion in tax cuts and use the money to pay down the debt. If my 
amendment is adopted and we use the onbudget surplus for debt 
reduction, then publicly held debt will drop from $3.68 trillion today 
to $960 billion by the year 2009.
  Mr. President, we can't let this opportunity pass by, because if we 
look at this chart, we can see how vital it is to bring down our debt. 
This is what our debt was back in 1940. As you will notice, at the end 
of the Vietnam war, this debt skyrocketed, like Senator Glenn going up 
in the STS-95. Once we commingled the Social Security surplus with the 
general funds of this country, we started to use that surplus and 
borrow money to pay for tax reductions and spending increases. We now 
have increased that debt. When I was mayor of the city of Cleveland 
back in 1979, it was $750 billion at that time. It is $5.6 trillion 
today, almost a 600-percent increase in the national debt.
  Why should we do this rather than use this money to reduce taxes?
  First of all, if we pay down the debt, we are going to decrease our 
massive interest payments on the national debt.
  No. 2, we will expand the economy.
  No. 3, we will lower interest rates for families.
  No. 4, we are going to have less need for future tax hikes. It will 
decrease the overall interest paid on the debt.
  Right now, this is hard to believe, but we are spending over $600 
million per day--do you hear me--per day, just to service the interest 
on the national debt.
  Let's look at what that means. Most of the American people are not 
aware of what is going on here. Here are the entitlements, 54 percent; 
net interest, look at this, 14 percent of the money going for net 
interest; national defense, 15 percent; and nondefense discretionary, 
17 percent.
  Look at what has happened. When Janet, my wife, and I got married 
back in 1962, we were spending 6 cents per dollar on the interest. 
Today it is 14 cents.
  The next chart, let's look at what that interest is doing. The 
interest on the national debt, as you can see, is a little bit below 
defense. But look at Medicare. We are spending more money today in the 
United States of America on the interest on national debt than we are 
on Medicare. And for education, we are spending five times more money 
on interest than we are on education. And for medical research, we are 
spending 15 times more money on interest than on the National 
Institutes of Health. That is what is going on today.
  No. 2, it will expand the economy.
  No. 3, it will lower the interest rate for individual families.
  As Alan Greenspan attests, a decreasing national debt will bolster a 
strong economy and allow individual interest rates to fall.
  Everybody who is an expert--talk to Dan Crippen, of the Congressional 
Budget Office, or David Walker, who is the new Comptroller General at 
GAO. Ask them: If you have a surplus, what should you do with it? They 
will come back and say, ``Reduce the national debt.''
  These lower interest rates give middle-class Americans the ability to 
purchase homes. That is what keeps interest rates down. They are able 
to refinance mortgages and buy automobiles. The savings gives them some 
real money to either save, invest, or put it back into the economy.
  With the low-interest rates that we have enjoyed, over 17 million 
Americans have refinanced their homes since 1993. Just think of the 
people that you know who have refinanced their homes because we have 
kept interest rates down. If we pay off or reduce the national debt, 
those rates will continue to come down. These homeowners have saved 
millions of dollars in mortgage payments per year. In fact, one of my 
staff members refinanced his modest duplex home in 1998. By 
refinancing, his yearly savings will be $2,160 a year. That is more 
than $50,000 he is going to save over the 25 years left on his 
mortgage.
  If we could lower interest rates by 1 percentage point, an average 
family buying a home could save over $25,000 on a typical mortgage. Mr. 
President, that is a win-win for the American people. We will have less 
debt over our heads, and Americans will have more of their own money in 
their pockets in order to be able to buy things that they need for 
their families.
  Finally, the fourth reason is that if we reduce the national debt, it 
will lower the amount of taxes necessary to run the Government. As the 
debt decreases, so does the overall cost of running the Government. 
This would allow us to maintain the current level of Government 
services and accommodate an increase in the use of those services by 
the baby boomers. It would also lessen the demand for future tax hikes 
that would result in a de facto tax cut for American people. Just think 
if we could bring the amount of the net interest payments down, that 
money would be available for other things we need to spend money on. 
Or, in the alternative, the opportunity to reduce taxes.

  From a public policy point of view, let's be serious in terms of our 
debt. You have a 10-year projection on an $800 billion reduction in 
taxes. We are going to have a tough time balancing the budget this 
year. We may not have a surplus. Next year we will be lucky to have a 
surplus. One thing we do know is if we use the money to reduce the debt 
and we do not spend it on more programs, or we do not use it to reduce 
taxes, we will not be in the position, if the economy doesn't go the 
way we expect it to, to have to go back to the American people and say: 
Folks, we gave you a tax cut, but we are going to have to take it back 
because our projections were wrong. Folks, we are spending money on 
programs, and by the way, we are going to have to cut those programs 
because these 10-year projections we have are not working out.
  I want to say one thing and I think it is important. Mr. President, 
5-year projections may be reasonable; 10-year projections, if you talk 
to CBO, they would tell you they could swing $300 billion over this 
period of time. I think what we need to do is understand we have a 
tough budget situation that, if we lock up Social Security and do not 
touch it as we have in the past, we are going to have a couple of tough 
years ahead of us. Rather than projecting out 10 years and talking 
about what we are going to be doing with the money, I think if we do 
have that additional money, let's pay down the national debt.
  The last thing I would like to say is this: I just had a new 
granddaughter last week, Veronica Kay Voinovich. While I was 
campaigning in Ohio last year I talked about my first grandchild, Mary 
Faith. Her gift, when she was born on December 26, 1996, from this 
Government, was a bill for $187,000, interest on a debt that was racked 
up before her life, on something that she had nothing to do with. And 
we are asking her to pay for it. I think it is criminal. I think it is 
criminal that we have not been willing to pay for the things that we 
wanted, that we borrowed the money, and we have had an attitude: We 
have ours, let them worry about theirs.
  That is not the legacy that was left to me and I do not want that 
legacy for my granddaughters or for the other grandchildren here in the 
United States of America.
  We have a wonderful opportunity. For the first time, we can see the 
light to really do something that is responsible in dealing with this 
budget to get ourselves back on track, so going into the next century, 
the next 10 years are going to be good years for our country.
  The PRESIDING OFFICER. Who yields time?
  Mr. LAUTENBERG. Mr. President, I take time from what would normally 
be the opposition. I want to take this

[[Page S3236]]

opportunity to say to the Senator from Ohio that we think that is 
pretty clear thinking. Paying down the debt--he is right. I heard his 
remarks. He recounts what we have heard from the economists, Greenspan 
included, about the most important way to get our fiscal house in order 
and that is to pay down the debt. If we keep going like things are 
projected, we could be through with public debt in about 15 years.
  We would be, within 15 years, at the debt level in 1917. And no, I 
don't remember it; I have read about it.
  But within a couple of years thereafter we could be out of public 
debt, which would be such a bonus for all of our succeeding 
generations, including our grandchildren. I congratulate the Senator. 
Is this his second grandchild? The second. One of mine, my 3-year-old 
grandchild, was watching television tonight and he said to his mother, 
``Papa looks mad.'' And then he said, ``No, I think papa is happy.''
  Anyway, we do it for them. I think the amendment of the Senator is a 
very positive amendment and I hope it will get full support.
  The PRESIDING OFFICER. The Senator from Rhode Island.
  Mr. REED. Mr. President, I ask unanimous consent to lay aside the 
pending amendment to consider my amendment which is at the desk.
  The PRESIDING OFFICER. Without objection, it is so ordered.


                           Amendment No. 162

  Mr. REED. I have an amendment at the desk and ask it be called up.
  The PRESIDING OFFICER. The clerk will report.
  The legislative clerk read as follows:

       The Senator from Rhode Island [Mr. Reed], proposes an 
     amendment numbered 162.

  Mr. REED. Mr. President, I ask unanimous consent that reading of the 
amendment be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment is as follows:

       On page 3, strike beginning with line 5 through page 5, 
     line 14, and insert the following:
       (1) Federal revenues.--For purposes of the enforcement of 
     this resolution--
       (A) The recommended levels of Federal revenues are as 
     follows:
       Fiscal year 2000: $1,401,979,000,000.
       Fiscal year 2001: $1,438,628,000,000.
       Fiscal year 2002: $1,461,410,000,000.
       Fiscal year 2003: $1,538,283,000,000.
       Fiscal year 2004: $1,592,543,000,000.
       Fiscal year 2005: $1,656,146,000,000.
       Fiscal year 2006: $1,689,262,000,000.
       Fiscal year 2007: $1,743,602,000,000.
       Fiscal year 2008: $1,813,532,000,000.
       Fiscal year 2009: $1,876,549,000,000.
       (B) The amounts by which the aggregate levels of Federal 
     revenues should be changed are as follows:
       Fiscal year 2000: $0.
       Fiscal year 2001: -$4,019,000,000.
       Fiscal year 2002: -$46,866,000,000.
       Fiscal year 2003: -$25,035,000,000.
       Fiscal year 2004: -$41,606,000,000.
       Fiscal year 2005: -$54,750,000,000.
       Fiscal year 2006: -$101,451,000,000.
       Fiscal year 2007: -$127,798,000,000.
       Fiscal year 2008: -$142,677,000,000.
       Fiscal year 2009: -$169,161,000,000.
       (2) New budget authority.--For purposes of the enforcement 
     of this resolution, the appropriate levels of total new 
     budget authority are as follows:
       Fiscal year 2000: $1,433,486,000,000.
       Fiscal year 2001: $1,462,731,000,000.
       Fiscal year 2002: $1,494,665,000,000.
       Fiscal year 2003: $1,567,714,000,000.
       Fiscal year 2004: $1,619,458,000,000.
       Fiscal year 2005: $1,673,026,000,000.
       Fiscal year 2006: $1,704,594,000,000.
       Fiscal year 2007: $1,759,769,000,000.
       Fiscal year 2008: $1,820,952,000,000.
       Fiscal year 2009: $1,881,193,000,000.
       (3) Budget outlays.--For purposes of the enforcement of 
     this resolution, the appropriate levels of total budget 
     outlays are as follows:
       Fiscal year 2000: $1,408,292,000,000.
       Fiscal year 2001: $1,438,628,000,000.
       Fiscal year 2002: $1,461,410,000,000.
       Fiscal year 2003: $1,538,283,000,000.
       Fiscal year 2004: $1,589,644,000,000.
       Fiscal year 2005: $1,646,315,000,000.
       Fiscal year 2006: $1,674,432,000,000.
       Fiscal year 2007: $1,723,839,000,000.
       Fiscal year 2008: $1,788,712,000,000.
       Fiscal year 2009: $1,848,733,000,000.
       On page 21, strike beginning with line 20 through page 23, 
     line 11, and insert the following:
       (9) Community and Regional Development (450):
       Fiscal year 2000:
       (A) New budget authority, $11,898,000,000.
       (B) Outlays, $10,273,000,000.
       Fiscal year 2001:
       (A) New budget authority, $9,141,000,000.
       (B) Outlays, $10,931,000,000.
       Fiscal year 2002:
       (A) New budget authority, $9,077,000,000.
       (B) Outlays, $10,919,000,000.
       Fiscal year 2003:
       (A) New budget authority, $9,243,000,000.
       (B) Outlays, $10,232,000,000.
       Fiscal year 2004:
       (A) New budget authority, $9,217,000,000.
       (B) Outlays, $9,694,000,000.
       Fiscal year 2005:
       (A) New budget authority, $9,213,000,000.
       (B) Outlays, $9,121,000,000.
       Fiscal year 2006:
       (A) New budget authority, $9,219,000,000.
       (B) Outlays, $8,755,000,000.
       Fiscal year 2007:
       (A) New budget authority, $9,223,000,000.
       (B) Outlays, $8,751,000,000.
       Fiscal year 2008:
       (A) New budget authority, $9,232,000,000.
       (B) Outlays, $8,739,000,000.
       Fiscal year 2009:
       (A) New budget authority, $9,237,000,000.
       (B) Outlays, $8,722,000,000.
       On page 42, strike lines 1 through 5.
       Change $142,034,000,000 to $117,526,000,000.
       Change $777,587,000,000 to $713,363,000,000.
  Mr. REED. Mr. President, this evening I rise to offer an amendment 
along with Senator Sarbanes, Senator Kerry of Massachusetts, and 
Senator Murray, to restore funding for regional development programs to 
the levels that are set forth in the President's budget. Unfortunately, 
the budget resolution which we are considering today would reduce the 
funding for community and regional development programs by $88.7 
billion over 10 years. This is compared to the President's budget 
request.
  For example, in fiscal year 2000, spending for community and regional 
development programs would be reduced from $11.9 billion to $5.3 
billion, a cut of 55 percent. In fiscal year 2001, spending for these 
programs would be reduced from $9.1 billion to $2.7 billion, a cut of 
70 percent.
  Then, between the years 2002 and 2009, spending reductions each year 
are approximately 78 percent below the President's request. In effect, 
this budget before us would eviscerate community and regional 
development programs. These programs are at the heart of our efforts to 
invest in America, in our cities, in our rural areas, and to do so in a 
way that gives maximum flexibility to local mayors, Governors, and 
community officials.
  My amendment would increase spending for community development 
programs by $88.7 billion over these 10 years to essentially meet the 
President's projections. It would be offset by reducing the amount of 
tax cuts, currently $778 billion, contained in this budget resolution. 
My amendment not only restores funding for community and regional 
development, it will still leave approximately $700 billion for tax 
cuts.
  I am deeply troubled by these cuts in community development programs 
because they will undermine the progress that our cities and rural 
areas have been making over the last several years. In fact, in many 
cities there is an urban renaissance. Where they are beginning to clean 
up blighted areas, they are beginning to attract new investment in the 
center cities. They are beginning to develop and sustain a mature 
culture and the arts. All of this is a result of investments through 
many of these programs which stand to lose out tremendously in this 
proposed budget resolution.
  One of the indications of a reviving urban area in the United States 
is the fact that crime, violent crime particularly, has fallen more 
than 21 percent since 1993, and property crimes have dropped to the 
lowest point since 1973. I argue this is not simply the result of 
better police activity. This is because the cities are now able to 
reinvest and reinvigorate their communities, their neighbors. In so 
doing, they give positive incentives and positive hope for people.
  All this is happening. And all of this will stop happening quite 
dramatically if we make such a devastating cut in community development 
and regional development programs.
  Let me suggest the particular programs that would be affected by 
these massive cuts. First is the Community Development Block Grant 
Program; then there is the section 108 program loans for cities and 
communities; there is the Economic Development Administration and their 
grants to States and communities; there is FEMA disaster assistance, 
which is part of this program; then there is brownfield redevelopment 
programs, which help aid the remediation of environmentally troubled 
areas so they can be redeveloped for use by cities and communities; and 
then there is the lead hazard reduction grants, which are a critical 
problem in

[[Page S3237]]

many parts of this country, particularly urban areas; then there is the 
community development financial institutions fund; the Neighborhood 
Reinvestment Corporation; and the Rural Community Advancement Program. 
All of these programs would see devastating cuts.
  Let me for a moment talk about some of the particular programs that 
are subject to this very threatening budget resolution. First is the 
Community Development Block Grant Program. We are all familiar with 
this program. It provides grants to States and to communities on a 
formula basis, the type of programmatic initiatives for new housing and 
community development.
  One of the virtues of this program, one of the reasons it is embraced 
by both sides of the aisle, conceptually, is the fact that it gives 
flexibility to the States and to the cities to decide how they want to 
use these funds. It is not a mandate from Washington. It is not a 
categorical program that makes them jump through all sorts of hoops. It 
gives them the flexibility to meet the demands that they deem most 
critical.
  These funds have been used to reconstruct and rehabilitate housing 
and provide homeownership assistance and opportunity. In fact, between 
1994 and 1996, over 640,000 housing units have been rehabilitated or 
constructed with CDBG funds--over 640,000 housing units. These are 
housing units typically for low-income Americans, for seniors, for 
people with disabilities. Without this type of investment, I daresay 
there would not be a lot of construction, particularly in some of the 
older neighborhoods in our cities and in rural areas. With these funds, 
we have been able to stimulate the kinds of construction and renovation 
and renewal that are so essential to the fabric of our communities.
  These funds were also used to provide services related to the 
Welfare-to-Work Program. They are used to help assist in terms of drug 
suppression, to aid people with drug problems; child care monies are 
used and involved here; crime prevention and education--all of these 
programs would be subject to severe cuts.
  They also assist tremendously community-based organizations, those 
organizations in rural areas and urban neighborhoods that are doing the 
job of trying to give people hope and opportunity and also leveraging 
private dollars to make sure that what we do has effect, not just here 
in Washington but on the streets of every city and every rural area of 
this country.
  This program has many manifestations. In my home State of Rhode 
Island, in Bristol, they used CDBG money to fund the acquisition of 
basic medical examination equipment, to set up a clinic and a senior 
housing facility, providing better health care and doing it in a way 
which adds to the quality of life for these seniors.
  In the State of New Mexico, they boast a new state-of-the-art 
facility to train students for jobs in high tech. This facility was 
funded with $600,000 in CDBG money. Again, it illustrates how flexible 
and useful these funds are, because they have been used by local 
communities to assist local training programs to meet local demands for 
certain types of employees. It is a very, very valuable program.
  In South Carolina, CDBG funds were used for 27 economic development 
projects in rural areas, including such things as bringing water and 
sewer systems to communities that desperately needed them. Last year, 
approximately 4,000 communities throughout this country benefited from 
$4.6 billion in CDBG funding. Indeed, this funding alone leverages 
additional private investment. In fact, it has been estimated that for 
every $1 of CDBG money, there is $3 of private investment. As a result, 
last year, reasonably and, I think, conservatively, we estimate that 
the CDBG Program leveraged an additional $18.4 billion in private 
funds.
  It also creates jobs, because when you invest in cities, when you 
invest in rural areas, when you do it in conjunction with other Federal 
programs, other State programs, you can create jobs. In fact, it has 
been estimated that in 1996, CDBG was responsible for creating about 
133,000 jobs.
  In view of all of this tremendous productivity, efficiency, and 
effectiveness, it seems to me remarkable and counterintuitive, indeed, 
that we would be cutting this program by about 78 percent, effectively 
rendering it useless.
  There is another program that should be considered, too. That is the 
section 108 program. The section 108 program has been very critical to 
many urban areas in this country because what it does is, it allows 
cities to leverage their annual CDBG funds to borrow additional monies 
to increase the amount of investment dollars they have on hand for 
housing rehabilitation, for economic development, for public works 
projects. Indeed, it allows specifically a city or a community to take 
their CDBG allotment and leverage that for five times more dollars 
through this loan program. Securing their borrowing are the annual 
proceeds of their CDBG allocation.

  I raise the question: What is going to happen to these communities if 
we slash this funding dramatically? I suggest that their financing 
situation would be critical. They would either have to find some other 
way to secure these loans, or they would have to immediately pay off 
these loans or they would be in default. This would be a staggering 
blow to many communities. Ultimately, what it would do, together with 
the cuts in the overall CDBG Program, it would drive up property taxes 
in many cities and rural areas.
  The irony here is that we are using billions of dollars to cut 
Federal taxes, with the idea of providing tax relief, which, I think, 
in a way could drive up taxes in certain communities. In fact, we all 
know the property tax is much more regressive than income tax, than the 
Federal tax. We could have the unintended consequences, for many people 
throughout this country, of making their tax situation worse, depriving 
the cities of the opportunity to maintain a tax base, to stabilize it, 
and to attract new business, to attract new investment because of a 
stable tax base. This is absolutely bad policy, and it should be 
rejected.
  Let us talk about another program that is subject to these draconian 
cuts. That is the Economic Development Administration. This agency 
provides valuable assistance, again, to States and communities so they 
can do projects which will accelerate their economic growth and create 
more jobs. In my home State of Rhode Island, we work closely with the 
EDA to provide funds to help us make the final cleanup and transition 
of a former Navy base, Quonset Point, Davisville, on Narragansett Bay, 
so they can be developed for industrial expansion. Without EDA grants 
to do things like extending sewer lines, taking down an obsolete water 
tower, the State would not be in a position, as it is today, to offer 
that property for economic development.
  Again, this is a program which goes right to the direct needs of 
cities to create jobs and to invest in their communities and States and 
to do these types of investments. It would be reduced dramatically.
  Brownfield redevelopment: We have brownfield redevelopment that is 
absolutely necessary for the urban areas of this country. It is 
necessary because we have areas that need environmental remediation, 
not only to make them more aesthetically pleasing but also to provide 
the opportunity for reinvestment, redevelopment for jobs; again, to 
strengthen the urban tax base and to do so in a way that creates jobs, 
increases the tax base, and also counteracts what is a growing problem 
everywhere, increasing urban sprawl. If we can revitalize and make 
attractive again parcels in center cities for commercial expansion, we 
will lessen the pressure on suburban areas. This, too, can be done and 
has to be done in conjunction with many things. One of them is the 
Brownfield Grant Program. That, too, is on the chopping block.
  Lead hazard reduction grants: In my home State of Rhode Island, we 
have a major hazard with lead paint and children, a major public health 
problem, a public health problem that is one I think we are embarrassed 
to admit, but it is there. It is there particularly in older 
communities, not just in urban areas but older rural communities.
  Most of the paint that was created years ago had a lead base. It was 
put up everywhere. Kids now are exposed to that paint and exposed to 
other sources of lead. It has been estimated that nearly 5 percent of 
American children, age 1 to 5, approximately 1 million

[[Page S3238]]

children, suffer from lead paint poisoning. That is an outrage in this 
country.
  Our programs to combat it, to reduce it, would be subject to severe 
limitations, because HUD's Office of Lead Hazard Control would not have 
the resources--the meager resources, I might add--today that they are 
using to try to help communities reduce the lead hazard throughout this 
country.
  Now, these are just a sample of the programs that would be 
eviscerated by this proposed budget resolution, that would be reduced 
over the next 10 years, dramatically, would be rendered perhaps 
ineffectual and totally without purpose in many instances. That is why 
I think we have to restore these funds and do so by taking funds away 
from the proposed tax cuts that are embedded within this budget 
resolution.
  There will be some procedural arguments, I am sure, raised about my 
amendment, perhaps budget points of order, but really I think what we 
have to consider here is the substance. We cannot afford to stop 
investing in our cities and our rural areas. This budget does precisely 
that. It says to America's cities and America's rural areas: We are no 
longer going to invest in you; you are on your own; good luck; but what 
we are going to do is reduce taxes, Federal taxes.
  I don't think we should abandon our cities and our rural areas. 
Certainly my amendment could accommodate both--a tax cut, together with 
the continued investment in the rural areas of America and also in our 
urban centers.
  I feel compelled to restore these cuts. I feel that the substance of 
this amendment should triumph over procedural rules that might be 
imposed against it. As we go forward, I hope that others will feel the 
same way, too, because, frankly, we are charting a course with this 
budget resolution that would, I think, lead to, if not the ruin of our 
cities and rural areas, certainly it would lead to the lack of progress 
that we have seen over the last several years.
  I hope when this amendment is considered that it will be supported as 
a way in which we can send clearly a signal to all of our cities and to 
our rural areas: We will not abandon you; we will continue to support 
you; we will continue to share with you resources that you may use in 
your wisdom to improve the quality of life of your cities, of your 
rural areas and, in so doing, improve the quality of life of this great 
country.
  I yield the floor.
  Mr. CRAPO addressed the Chair.
  The PRESIDING OFFICER. The Senator from Idaho.
  Mr. CRAPO. Mr. President, I ask unanimous consent that we lay aside 
the pending amendment.
  The PRESIDING OFFICER. Without objection, it is so ordered.


                           Amendment No. 163

       (Purpose: To create a reserve fund to lock in additional 
     non-Social Security surplus in the outyears for tax relief 
     and/or debt reduction.)

  Mr. CRAPO. Mr. President, I send an amendment to the desk and ask for 
its immediate consideration.
  The PRESIDING OFFICER. The clerk will report.
  The legislative clerk read as follows:

       The Senator from Idaho [Mr. Crapo], for himself and Mr. 
     Grams, proposes an amendment numbered 163.

  Mr. CRAPO. Mr. President, I ask unanimous consent that the reading of 
the amendment be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment is as follows:

       At the appropriate place, insert the following:

     SEC. ____. RESERVE FUND FOR INCREASED ON-BUDGET SURPLUS IN 
                   THE OUTYEARS.

       (a) In General.--Any additional on-budget surplus exceeding 
     the level assumed in this resolution during the period of 
     fiscal years 2001 through 2009 as reestimated by the 
     Congressional Budget Office shall be reserved exclusively for 
     tax relief or debt reduction.
       (b) Adjustments.--The Chairman of the Committee on the 
     Budget of the Senate may reduce the spending and revenue 
     aggregates and may revise committee allocations by taking the 
     additional amount of the on-budget surplus referred to in 
     subsection (a) for tax relief or debt reduction in the period 
     of fiscal year 2001 through 2009.
       (c) Point of Order.--
       (1) In general.--When the Senate is considering a bill, 
     resolution, amendment, motion, or conference report that uses 
     the additional on-budget surplus reserved in subsection (a) 
     for additional Government spending other than tax relief or 
     debt reduction, a point of order may be made by a Senator 
     against the measure, and if the Presiding Officer sustains 
     that point of order, it may not be offered as an amendment 
     from the floor.
       (2) Supermajority.--This point of order may be waived or 
     suspended in the Senate only by an affirmative vote of three-
     fifths of the members, duly chosen and sworn.
       (d) Budgetary Enforcement.--Revised allocations and 
     aggregates under subsection (a) shall be considered for the 
     purposes of the Congressional Budget Act of 1974 as 
     allocations and aggregates contained in this resolution.

  Mr. CRAPO. I thank the Chair.
  Mr. President, I am pleased tonight to join with my good friend, 
Senator Grams of Minnesota, in offering an amendment that will help 
provide taxpayers relief from their tax obligations, as well as debt 
reduction for the American people.
  Back when Senator Grams and I both served in the House of 
Representatives together and, I might add, at the same time we served 
with you, Mr. President, in the House of Representatives, we noticed a 
very interesting peculiarity in the budget process: When the House or 
the Senate reduced spending or adjusted spending downward in the 
budget, all that really happened was those particular projects or 
programs were eliminated or reduced, but the spending never was reduced 
and the deficits that we were dealing with at that time never really 
was reduced.
  The deficit spending did not end. All that happened was that through 
some very intricate budget processes, those reductions in spending got 
reallocated to other spending proposals.
  So we came up with an idea back then called the lockbox. We passed it 
four times in the House of Representatives as an effort to try to make 
sure that when the House or the Senate reduced spending, that reduced 
spending went to reduce the deficit and was not slid over into or moved 
over into other spending.
  Now we have reached a point at which we have actually ended the 
deficits that we were working on 4 or 5 years ago, and we are dealing 
with surpluses. But the lockbox concept has gained significant support 
and is now proving to be a very valuable tool in dealing with the 
budget in a surplus climate.
  Today, we have already adopted a very important lockbox amendment 
relating to Social Security. It was offered by a number of Senators. 
The primary sponsor was Senator Abraham. That amendment provided that 
Social Security surpluses would be locked away in a lockbox and would 
not be allowed to be spent by Congress on other spending, in essence. 
That was an important first step.
  We are now debating many different aspects of a very important 
budget. There is a debate as to what to do with the Social Security 
surplus and, as I indicated, we made a big step today in locking up 
that surplus so that it does not get squandered by Congress in other 
areas. That will stabilize and strengthen the Social Security trust 
funds.
  As you know, the debate today, tomorrow, and probably the rest of the 
week, will show there is a debate underway on whether to reduce the 
national debt or to engage in significant tax relief for the American 
people or whether to allocate some of the surplus to those needed and 
important areas, such as our national defense or education or Medicare 
and other areas of needed concern.
  But among that debate, Senator Grams and I believe that it is very 
important that we focus on what is going to happen with the surpluses 
in the future.
  Senator Domenici has shown courage in producing a budget that is 
going to protect Social Security, it is going to pay down the public 
debt, it is going to stay within the budget caps, and it is going to 
provide an opportunity for needed critical tax relief. But on July 15, 
1999, the Congressional Budget Office is going to update its economic 
and budget forecast for the fiscal year 2000 and beyond.
  It is our expectation that this report will forecast an onbudget 
surplus that is even in excess of the current CBO estimates. If this is 
true and if that develops and we see even larger surpluses than we are 
now expecting, and after we have now put together a budget that 
allocates it as we think proper among tax relief, debt retirement,

[[Page S3239]]

needed spending on the items that I have indicated and protection of 
the Social Security and Medicare trust funds, and if we still see a 
growing surplus, we believe that this unanticipated surplus should be 
set aside, should be put into another lockbox and be authorized to be 
used for only further tax relief or further debt retirement.
  Our amendment will create a lockbox, a reserve fund in addition to 
the non-Social Security surpluses so that we lock in the additional 
non-Social Security surpluses, and in the outyears 2001 through 2009, 
those additional unexpected surpluses that are non-Social Security 
surpluses would then be made available to be taken from this lockbox 
only for tax relief or debt retirement.
  These excess surpluses could then benefit the American people in the 
best way possible and would then be protected from further raiding by 
Congress for big spending. These unanticipated surpluses could not be 
used for other types of proposals, and it would guarantee the American 
people that we would see the retirement of debt or the increase of tax 
relief as they have been asking for. We have had some other speeches 
recently on the floor tonight about the critical importance of 
recognizing the national debt that has grown over the last little 
while.
  The Senator from Ohio talked about his grandchildren, and all of us 
have talked about the fact that our children and our grandchildren are 
today being expected to pay the debt that we have grown over the last 
few decades. That is wrong. This bill will help assure that these 
unanticipated surpluses, if they develop, will be utilized for that 
debt retirement.
  What about the current quality of life? With the tax rates now the 
highest they have been in a peacetime circumstance in America, the only 
time tax rates have ever been higher in America is during war. We are 
now siphoning off from the economy so much for the excessive Federal 
spending that we are jeopardizing the current quality of life of our 
children and our grandchildren because their families have to pay such 
heavy and excessive tax burdens.
  It is these two key problems--the excessive taxes and the excessive 
debt rate that we have in this country--to which we should dedicate 
these unanticipated surpluses. Taxes are still too high and still too 
cumbersome and still impact America's working families too heavily. I 
urge all our colleagues to support this needed and valuable amendment. 
It would utilize the critical lockbox concept to put into place one 
more parameter on our budget negotiations this year to assure if our 
economy does stay strong and we see those surpluses in the future we do 
not now anticipate, that we can set them aside for retirement of our 
national debt and reduction of the tax burden on all Americans.
  I yield the floor at this time to my good colleague from Minnesota, 
because I know he is here and would like to speak further on this 
issue.
  The PRESIDING OFFICER. The Senator from Minnesota is recognized.
  Mr. GRAMS. Mr. President, I rise to strongly support the tax relief 
and debt reduction lockbox amendment offered by my good friend, Senator 
Crapo of Idaho. We have worked a long time together, as he mentioned, 
both in the House and now in the Senate. We need to continue to push 
these efforts to reduce the tax burdens on Americans.
  This amendment would lock in any additional non-Social Security 
surplus into the outyears for tax relief and/or for debt reduction.
  Before I speak on this amendment, I would like to take this 
opportunity to commend Chairman Domenici for his leadership in crafting 
and delivering this well-balanced budget. I believe this budget 
blueprint is a great achievement of this Congress and it will ensure 
our continued economic growth and prosperity as we move into the next 
century.
  Mr. President, protecting Social Security, reducing the national debt 
and reducing taxes are imperative for our economic security and growth. 
Our strong economy has offered us an historic opportunity to achieve 
this three-pronged goal.
  Chairman Domenici has ably showed us in his budget how we can provide 
major tax relief while still preserving Social Security and 
dramatically reducing the national debt.
  President Clinton has proposed to spend over $158 billion of the 
Social Security surplus in his budget over the next 5 years for 
unrelated Government programs, instead of protecting Social Security.
  This budget includes a safe-deposit box to lock in every penny of the 
$1.8 trillion Social Security surplus earned in the next 10 years to be 
used exclusively for Social Security.
  Stopping the Government from raiding the Social Security Trust Fund 
is an essential first step to ensure that Social Security will be there 
for current beneficiaries, baby boomers and our children and 
grandchildren. I am pleased that this is the No. 1 priority under this 
budget.
  It is also notable, Mr. President, that under this budget, the debt 
held by the public will be reduced dramatically, much more than what 
President Clinton has proposed in his budget.
  This budget also reserves nearly $800 billion of the projected non-
Social Security surplus--the tax overpayments of working Americans--for 
tax relief. This is the largest tax relief that has been enacted since 
the leadership of President Ronald Reagan.
  As one who has long championed major tax relief, I am pleased that we 
have finally achieved some meaningful proposal in reducing our tax 
burden again.
  Not only does this budget fund all the functions of the Government, 
but it also significantly increases funding for our budget priorities, 
such as defense, for education, for Medicare, for agriculture, and 
others.
  In addition, Mr. President, unlike President Clinton's budget, which 
has broken the spending caps by over $22 billion, this budget maintains 
the fiscal discipline by retaining the spending caps.
  There are those who claim we cannot avoid breaking the caps as we 
proceed to reconcile this budget. But I say if we do our job to oversee 
Government programs, we will know which areas can be streamlined and 
which program funding can be better shifted to new priorities. Let's 
make sure we do our job to justify all Government funds are wisely 
spent.
  I am particularly pleased, Mr. President, that this budget has 
included one of my proposals which would allow us to lock in for 
immediate tax relief any additional on-budget surplus as re-estimated 
in July by the Congressional Budget Office of fiscal year 2000.
  I believe this amendment offered by Senator Crapo and myself is solid 
protection for the American taxpayers. I thank Chairman Domenici also 
for including my proposal in his budget as well.
  As the economy continues to be strong, we may have more revenue 
windfalls to come in the outyears that are above and beyond what this 
budget resolution has assumed. We also need to lock in these windfalls 
and we also need to return these tax overpayments to hard-working 
Americans.
  The logic for this amendment is fairly simple. Despite a shrinking 
Federal deficit and a predicted on-budget surplus, the total tax burden 
on working Americans is at an all-time high. It is still imperative to 
provide major tax relief for working Americans and address our long-
term fiscal imbalances.
  We need to give back any additional on-budget surplus generated by 
economic growth to working Americans, and we need to do it in the form 
of tax relief and debt reduction.
  That is exactly what our amendment intends to achieve. This amendment 
would lock in any additional non-Social Security surplus--again, not 
Social Security surplus, but income tax surplus--that may be generated 
in the outyears which exceed the levels assumed under this budget.
  All we are saying is, if our economic growth produces more increased 
revenues than we expect, these revenues should be reserved and 
protected for the taxpayers in the form of tax relief and/or debt 
reduction. It should not be there for the Government to spend it as it 
pleases.
  One question we should ask ourselves before we decide how to spend 
any non-Social Security surplus is where the budget surplus comes from. 
The CBO has showed us precisely where we will get our revenues in the 
next 10 years.
  The data indicates that the greatest share of the projected budget 
surplus comes directly from income taxes paid

[[Page S3240]]

by the taxpayers. Again, this is their money. There is no excuse not to 
reserve it and then return it to the people who paid it.
  If we don't lock in this surplus to the taxpayers, we all know that 
Washington will soon spend it all, leaving nothing for tax relief or 
the vitally important task of maintaining our long-term fiscal health.
  Such spending will only enlarge the Government. It will only make it 
even more expensive to support in the future. And it will create an 
even higher tax burden than working Americans bear today.
  Mr. President, I applaud the creation of the safe-deposit box for 
future Social Security surpluses to protect retirement security for our 
Nation's retirees.
  But I also believe we need to create a safe-deposit box of a similar 
mechanism to lock in any additional on-budget surplus for tax relief 
and/or debt reduction beyond the fiscal year 2000 re-estimate that is 
in the resolution.
  The Congressional Budget Office reports that by 2012, we will have 
eliminated all the debt held by the public and we will begin to 
accumulate assets. By 2020, the share of net assets to GDP is expected 
to reach 12 percent. This is great news.
  However, I believe we should use some of the on-budget surplus from 
the general fund to accelerate debt reduction. Currently we pay about 
$220 billion a year in interest. We saw from Senator Voinovich, in his 
charts, tonight how much we are spending every year just to pay the 
interest on the debt.
  The sooner we eliminate the debt, the more revenue we will have in 
hand to reform Social Security, to reduce our tax burden and to finance 
our priority programs. This amendment will help us to achieve that 
goal.
  We have also heard some say that Americans do not want tax relief. I 
hear that often: ``Americans don't want tax relief.'' Clearly they are 
completely out of touch with working Americans, and this is not what I 
hear when I listen to Minnesotans when I am at home.
  A poll conducted by Pew Research Center shows that 53 percent of the 
American people say that the budget surplus should be used for a tax 
cut. Fifty-three percent want a tax cut. Only 34 percent say that it 
should be used for additional Government programs.
  An Associated Press poll taken by ICR is even more specific. The 
following question was asked:

       President Clinton and Congress have predicted big budget 
     surpluses in the next few years. Both sides want to set aside 
     more than half of the surplus to bolster Social Security, but 
     they disagree on how to spend the rest.

  The question goes on:

       Which one of the following uses of the remainder of the 
     surplus do you favor most: paying down the national debt, 
     cutting taxes, or spending more on government programs?

  The results of that survey: 49 percent said cutting taxes, 35 percent 
said to pay down the debt, and only 13 percent said that they wanted to 
spend more on Government programs.
  There was another question that was also asked. And the question was:

       Some Republicans want a 10% tax cut for everyone. President 
     Clinton prefers tax credits for specific things like child 
     care or taking care of disabled parents. Which approach do 
     you like better?

  And the answer: 50 percent said they want a 10-percent cut for 
everyone, 44 percent want tax credits for specific things.
  Mr. President, Americans' message is loud and clear. They want--and 
deserve--major tax relief.
  Again, my biggest fear is that without the lockbox, the Government 
will spend the entire additional on-budget surplus generated by working 
Americans. Last year's omnibus appropriations legislation was a prime 
example of how the Social Security surplus was spent by Congress.
  This year's supplemental threatens to be equally abusive if we cannot 
agree on any offsets.
  Mr. President, as I conclude tonight, we must protect the interests 
of our taxpayers. We must secure the future for our children's 
prosperity. This amendment would allow families, again, the opportunity 
to keep just a little more of their own money and to provide a good 
downpayment on debt relief. I urge my colleagues strongly to support 
this amendment.
  Thank you very much. I yield the floor.
  Mr. CRAPO addressed the Chair.
  The PRESIDING OFFICER. The Senate from Idaho.

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