[Congressional Record Volume 145, Number 127 (Monday, September 27, 1999)]
[Senate]
[Pages S11462-S11463]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                             BUDGET SURPLUS

  Mr. CONRAD. Today the Office of Management and Budget announced the 
unified budget is in surplus for fiscal year 1999 by at least $115 
billion. That is significantly higher than the unified surplus of $70 
billion for fiscal year 1998 and, in fact, is the largest dollar 
surplus in the history of the United States.
  This is a good day. This is a good day for the country, and this is a 
good day for the Congress. It is certainly a good day for the President 
and the administration.
  In 1992, the budget deficit was $290 billion. The forecast then was 
that the deficit for this year would be over $400 billion. That was the 
forecast in 1992 for where we were headed if we didn't change course. 
We did change course. The President proposed, and the Congress passed, 
a plan in 1993, a 5-year plan, that has worked splendidly. In each and 
every year of that 5-year plan, the deficit came down. In 1997, we 
passed a bipartisan addition to that plan. That addition closed the 
gap, made the difference, and finished the job. Now we can report we 
have budget surpluses.

[[Page S11463]]

  The job is not fully complete because while we are reporting a $115 
billion surplus this year, the Social Security surplus is $124 billion. 
In this year, we are still using $9 billion of that $124 billion Social 
Security surplus for other things. We shouldn't do that. It ought to 
stop.
  But what dramatic progress we have made. We have gone from budget 
deficits of $290 billion just 7 years ago to a $115 billion budget 
surplus this year, and we are within hailing distance of stopping the 
raid on the Social Security trust fund. The Social Security trust fund 
is a $124 billion surplus in fiscal year 1999, and we are running a 
surplus of $115 billion. So we are very close to stopping the raid on 
the Social Security trust fund.
  I hope very much we are able to stay on that course. We know that is 
in real jeopardy for fiscal year 2000. We know that if everything plays 
out as is currently contemplated in the Appropriations Committees, we 
will be using between $30 billion and $40 billion of the Social 
Security surplus next year. We will be going backwards. Let's not do 
that. Let's not go backwards. Let's keep moving forward. Next year, 
let's be able to report that we are not using any of the Social 
Security surplus for any other purpose. That ought to be our goal.
  We are now in this remarkable position of being able to say that if 
we stay the course, if we don't go out on some big, new spending binge, 
if we don't have some radical, reckless tax scheme, we will be able to 
balance the budget without counting Social Security and we will be able 
to eliminate the publicly held debt of the country in the next 15 
years.
  Every economist who has come before the Senate Budget Committee and 
every economist who has come before the Senate Finance Committee has 
said the highest and best use of these surpluses is to reduce the debt. 
What we did in 1993 confirms that view.
  Remember that in 1993 we took action on a 5-year budget plan to 
reduce the deficit each and every year. The idea was, that would take 
pressure off interest rates and that would give the greatest lift to 
the economy, that by reducing deficits and debt, we would reduce 
pressure on interest rates, that lower interest rates would help our 
economy perform more strongly, and we would improve our competitive 
position in the world.

  How well that strategy and plan have served this country. Each and 
every year of that 5-year budget plan passed in 1993 we reduced the 
budget deficit. Each and every year we were moving towards lower 
spending as a percentage of our gross domestic product. Every year of 
that 5-year budget plan we were moving towards the point at which we 
could start reducing the national debt. That plan worked.
  Now we are able to see the longest economic expansion in our history, 
the lowest inflation in 30 years, the lowest unemployment in 30 years, 
and the lowest welfare rates in 30 years, with total spending of the 
Federal Government being reduced. We have gone from 22.7 percent of our 
national income, our gross domestic product, going to the Federal 
Government to this year it being down to 19 percent. We are headed in 
the right direction. Let's keep that up.
  Let's move to a circumstance in which we will be able to report next 
year that we have stopped raiding the Social Security trust fund. Let's 
be able to report that we are on schedule to eliminate the publicly 
held debt of the United States in 15 years. What a great thing that 
would be for our country. How well that would position us for the baby-
boom generation, because pretty soon we baby boomers are going to start 
to retire. We are going to add dramatically to the burden on the 
Federal Government from Social Security and Medicare, and the single 
best way to prepare for that eventuality is to reduce publicly held 
debt. We can do it. It is within our grasp. But we have to avoid new 
spending schemes and we have to avoid risky tax schemes if we are going 
to deliver on that promise.
  I hope very much that together we will stay the course and put 
America in a circumstance in which it is able to announce in 15 years 
that there is no publicly held debt in America. What a great 
circumstance that would be for our Nation. I can't think of anything 
that would be a better present to our children and our grandchildren 
than to be able to eliminate the publicly held debt in the next 15 
years.
  I thank the Chair. I yield the floor.
  The PRESIDING OFFICER. The Senator from North Dakota.

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