[Congressional Record Volume 145, Number 152 (Tuesday, November 2, 1999)]
[House]
[Pages H11352-H11358]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                            SOCIAL SECURITY

  The SPEAKER pro tempore (Mr. Hayes). Under the Speaker's announced 
policy of January 6, 1999, the gentleman from North Dakota (Mr. 
Pomeroy) is recognized for 60 minutes as the designee of the minority 
leader.
  Mr. POMEROY. Mr. Speaker, I commend my colleagues, good men, good men 
all, and certainly articulate advocates for their position. I am 
pleased to be able to represent a different view because, quite 
frankly, there is more to this story than we have just heard, and I 
want to represent it in the next hour.
  What I will do in the course of this hour is spend most of the time 
talking actually about the Social Security program, its vital 
importance to America's families, the need for addressing and 
strengthening Social Security, and also putting in perspective the 
absolute baseless attacks being waged by the majority on the minority 
relative to this important program.
  At the outset, however, having sat patiently while the preceding side 
was making their points, there are some things that, frankly, must be 
said to put their presentation in perspective.
  I want to start by saying that here on November 2, we are now more 
than 1 month into the new fiscal year. That fiscal year, of course, 
starts October 1. That is the time when Congress and the President are 
to have all the new spending bills in place, funding the Government for 
the new fiscal year. It is a 12-month fiscal year. We are 1 month into 
it.
  We do not have all the spending bills in place. In fact, a very 
substantial portion of the Federal budget has not been put in place.
  Why is this? Well, frankly, the responsibility falls on the majority 
party to pass the budget and to get the appropriations bill out. We 
saw, even as late, as late last week the fumbling around, the frantic 
scratching for votes, the efforts to get the majority behind the 
appropriations bills. They have done this, taken us well into the new 
fiscal year without meaningful negotiations with the White House. There 
have been talks beginning very recently.

                              {time}  2030

  But for the most part it is one side setting down their side, the 
other side setting down their side; and at least to some of us, it 
looks like never the twain shall meet. We know it will be broken sooner 
or later. But rather than have these bills passed in a timely measure 
last summer, so that the differences with the White House could be 
ironed out in September, putting the bills in place by the new fiscal 
year, we are now well into the new fiscal year and no end in sight.
  That is why it concerned me deeply to hear a member of the majority 
say in the preceding presentation that during the two Government 
shutdowns of 1995 nobody noticed, nobody cared. I will give him this. 
The gentleman that said that is a freshman. He was not here at the 
time, and so maybe he was not simply paying attention. But every Member 
of Congress knows that shutting the Government down was a failure of 
Congress.
  At that time, Speaker Gingrich was the leader of this chamber, and it 
was a distinct failure of Speaker Gingrich and the Republican majority, 
one that will live in infamy in the days of this chamber; the House of 
Representatives unable to get its work done causing the Federal 
Government to shut down. Taxpaying Americans unable to even enjoy the 
national parks or, for that matter, to go up in the Washington Monument 
down on the Mall because of the political gamesmanship and the 
abdication of responsibility to get the spending packages put in place.
  So here we are, once again under a Republican majority, once again 
deeply into the fiscal year without the new spending bills in place, 
and now we have Members of the Republican majority saying this 
government shutdown is not such a bad idea. It really leaves me 
concerned about where this outfit is heading. Because I would hope, as 
long as I am in this chamber representing the State of North Dakota, we 
never, ever see such a pathetic time when this body shuts the 
Government down because it cannot get its work done.
  The failure of this outfit, the majority, to fund the government is 
only part of their failure up to this point. Let us look at the 
legislative record. What do the American people want? I

[[Page H11353]]

have a good notion they want a patients' bill of rights. They want 
protections when within an HMO they are not sure who they are getting 
care from, their physician or an insurance executive somewhere across 
the country at some call center.
  This Congress, the majority leadership, did everything possible to 
delay and frustrate efforts to get a patients' bill of rights passed. 
And, frankly, they lost. Months later than it should have happened, we 
passed, the majority and joined by a few courageous Members of the 
majority, a patients' bill of rights law, or a proposal, that now 
languishes at the end of the session because, having passed it out of 
this chamber, they continue to frustrate efforts to get the enactment 
completed and get it hastened on.
  I have a feeling that the American public wants basic gun safety 
legislation, something as basic as trigger locks, so that we do not 
have children shooting children with their dad's gun accidentally in 
the homes anymore. Something as basic as closing the loopholes for gun 
sales that would have a registered gun dealer having to run background 
checks, but an unregistered gun dealer at a gun show not having a 
similar requirement. It does not make sense. The American people want 
it addressed. This group has done everything possible to keep that 
legislation off the floor and to keep this bill from becoming law.
  Prescription drug coverage within Medicare. I represent in North 
Dakota maybe more seniors than a lot of people, but there is a crying 
need for prescription drug coverage in Medicare. We have seen since the 
Medicare program was created more than 30 years ago an evolution in how 
the program works. More and more outpatient. Not so much those long 
hospital stays of days gone by, but more and more reliance upon 
prescription drugs. And there are wonderful breakthroughs in medicine 
that have allowed prescription drugs to play a bigger and bigger role 
in terms of health maintenance.
  The ironic thing is many of us believe if seniors have the ability to 
pay for the prescription drugs they need, many of them will stay out of 
the hospitals and we will ultimately save the Medicare money while 
preserving lives, while enhancing quality of life. Prescription drugs 
in Medicare ought to have been on this floor for debate and 
consideration, but the majority has stopped it.
  We have a Social Security program, and I am going to talk about this 
in some detail, that needs additional finances. We are at the critical 
point in our Nation's history where we have surplus dollars to apply to 
the shortfall that will be coming in Social Security. But the majority 
has kept off this floor a proposal, any proposal, to strengthen the 
life of that trust fund a single day. They have done nothing to prolong 
Social Security, to strengthen Social Security. That is the record 
aside from the appropriations.

  Let us talk about what they have said in the appropriations, and let 
us start with a few charts that I have with me. The budget bill they 
were talking about, the great big one with that 1 percent across-the-
board cut, does nothing to protect Social Security. It does nothing to 
lengthen the trust fund by a single day. That bill does nothing to 
provide prescription drug coverage in the Medicare program. And that 
bill hurts every American family in some way.
  My colleagues might ask how can a bill hurt every American family in 
some way. For one thing, it does not provide the funding for the 
President's Police on the Beat program. This COPS on the Beat program, 
which has been responsible for putting 100,000 law enforcement 
personnel out on the beat needs continuation and it needs to be 
improved. And our side believes that ought to be achieved in this bill 
they have just been talking about. They do nothing about COPS on the 
Beat, and they would let this program simply expire quietly, and this 
enhanced law enforcement protection for American citizens that many of 
us believe has had such an important role in reducing the crime rates 
would go away.
  So that is what was not in their plan. What was in their plan was an 
awful lot of phony accounting. They have talked, and I have just sat 
here and if I heard it once, I heard it at least 30 times, how they are 
not touching the Social Security revenues to fund their budget. I guess 
they operate, and they are good men, do not get me wrong, they are 
friends of mine; but I am afraid they are either operating under denial 
or the old adage that if we say something long enough, no matter how 
untrue, we begin to believe it ourselves and we hope others begin to 
believe it as well. Well, something like whether or not they are 
telling the truth and whether they are spending the Social Security 
Trust Fund money has to be more than what we might stand up and say by 
way of empty words.
  Let us look at what the Congressional Budget Office says. Because 
this is the outfit that Congress charges to do the scorekeeping on the 
spending bills that pass this chamber. Clearly, it is not enough for 
any individual legislator to pass a bill and say, well, that is not 
going to cost very much, and that is why Congress has established this 
nonpartisan central office, the Congressional Budget Office, to keep a 
score on the bells.
  This says it all. CBO makes it clear. They spend $17 billion of 
Social Security surplus. And the report from CBO states, and I quote, 
``Outlays from congressional action on appropriation legislation, 
including the latest action on all 13 regular appropriations bills, 
would also exceed the discretionary caps by more than the CBO estimate 
of the on-budget surplus. After taking that surplus into account, CBO 
projects an on-budget deficit of about $17 billion.'' An on-budget 
deficit of $17 billion.
  Well, what does that mean? That means they are into the Social 
Security Trust Fund for $17 billion. Now, if my colleagues think this 
is some kind of accounting gobbledygook, let me quote from a Wall 
Street Journal story which puts it in slightly more user-friendly 
language. This is a story that ran in the Wall Street Journal on 
Friday, October 29. Under the headline, ``CBO Estimates That GOP 
Exceeds Spending Targets by Over $31 Billion,'' the story reads: 
``Congressional Budget Office estimates show that Republicans are more 
than $31 billion over their initial spending targets for this year, 
risking the Government having to borrow again from Social Security.''
  Now, those are not my words; that is the analysis of the Wall Street 
Journal. ``Prior appropriations bills have exceeded Mr. Clinton's 
request for funding everything from veterans' medical care and the 
Pentagon to the Environmental Protection Agency. Even with the 1 
percent quote, the Labor-Education and Health bill,'' which is expected 
to be passed by the Senate on Monday, ``includes major spending 
increases over last year.''
  Anyone listening to the prior hour heard ad nauseam about the 1 
percent across-the-board cut. What is the cumulative effect of that 1 
percent cut? ``Even with the 1 percent cut, the Labor-Education and 
Health bill includes major spending increases over last year.'' Those 
are not my words; those are the Wall Street Journal's words.
  The final paragraph of this story sets out what I think is the most 
egregious of the gimmicks used in trying to patch together a budget to 
camouflage their raiding of the Social Security fund. The GOP continues 
to work from what amounts to two sets of books, one based on the CBO, 
the Congressional Budget Office, and the other on spending estimates by 
the Office of Management and Budget. When OMB's numbers are favorable, 
the House and Senate Committee on the Budget members simply direct CBO 
to adjust its estimates accordingly. These changes add up to billions 
of dollars over the years.

  I might say that as a former Committee on the Budget member, this is 
without precedent. The Congressional Budget Office is the scoring 
entity established under the Budget Act to evaluate what Congress is 
spending. But here we have the majority using two sets of books. If OMB 
gives a better number, they use the OMB number, and they do it in their 
appropriations. They direct CBO not to use its own scoring methodology 
but just to accept the higher number, the one that benefits them.
  By using two sets of books, they have destroyed the validity of CBO's 
accounting and damaged very much the budget integrity of the 
Congressional Budget Act.
  Mr. MINGE. Will the gentleman yield for a moment?
  Mr. POMEROY. Mr. Speaker, I will yield to the gentleman from 
Minnesota

[[Page H11354]]

(Mr. Minge), and I am very pleased the gentleman has joined me, a 
distinguished member of the Committee on the Budget.
  Mr. MINGE. Well, I thank my colleague, and I would just like to 
comment for the benefit of our colleagues on this problem with CBO 
scoring.
  I think that it is sort of easy to forget that we established the 
Congressional Budget Office, or CBO, in order to get away from 
inaccurate projections that were being developed back in the 1980s. 
There were always these rosy scenarios that we were going to have the 
deficit problem licked, it was just around the corner, that the deficit 
was going to decline. And I still remember sitting home there in 
Minnesota as a citizen in the community and thinking, gee, this is 
positive. And then at the end of the year, it was a big disappointment. 
It was a letdown.
  And it was because the White House and Congress were using all sorts 
of different projections and coming up with these rosy scenarios. So 
the Congressional Budget Office was really directed to be nonpartisan, 
to be objective, and it was to be beyond the influence of parties in 
Congress and it was to be independent of the White House, because the 
White House and the Office of Management and Budget had become 
notorious for these rosy scenarios.
  So in the late 1980s and the early 1990s, we had a Congressional 
Budget Office with some rigor, and everybody, I think even the folks at 
the White House, Republican or Democrat, were respecting the 
projections from the Congressional Budget Office, or its estimates, its 
so-called scoring, as being the most accurate.
  And the gentleman has raised an excellent point, because I think one 
of the things that troubles me most about what we have seen here in the 
last few months is the abuse of the Congressional Budget Office; 
instead of relying on its objective estimates, picking and choosing 
when the Congressional Budget Office estimates will be used and when 
the Office of Management and Budget's estimates will be used. And, of 
course, if we pick the most favorable from the two different entities, 
we can develop a much more positive projection as to what is going to 
happen. The so-called rosy scenario.

                              {time}  2045

  And that is back to the smoke and mirrors problems that we had in the 
1980s and the beginning of the 1990s.
  Mr. POMEROY. Mr. Speaker, reclaiming my time, and I ask the gentleman 
to please stay and participate in this dialogue, but I think we got 
into serious deficit trouble in the 1980s because we had phony numbers, 
and what this outfit is doing is using once again phony numbers.
  Let us just put it in a family context. Let us say, for example, I 
make a living on commission sales. I sell and I get a percentage of 
what I sell. That is my income. Well, let us say I want to really spend 
money. And so, I just go ahead and figure, well, this year I am 
suddenly going to make a great deal more than I ever had before and, in 
fact, I spend the money.
  But then the income does not come in as I have projected, I pretty 
much earned what I always earned and I am in a big financial hole. 
Well, applying to the Nation, that is what happened to us in the 1980s. 
And now this outfit, the majority, that parades around on the floor 
beating their chests about how they are saving Social Security, are 
doing it with cooked books.
  Would not we all like to have two sets of books? Let us just play 
with this idea for a minute. Think about applying for an equity loan on 
your mortgage and someone is going to say, well, how much is your home 
worth? Well, on the one hand, you can have an appraiser go out and do 
an estimate, or on the other hand, you could have your brother-in-law 
give his idea of what the home is worth; and, by the way, you pick the 
higher one.
  Take the instance of a checkbook. Which is the real value of the 
amount in the checkbook, the present value of the cash on hand or that 
cash-on-hand figure reduced by the number of checks you have already 
written?
  Well, if you could just kind of automatically pick whichever figure 
you wanted, you would pick the higher one and forget about those checks 
outstanding. And so it goes.
  Let us say you are applying for a loan and you say, well, how much do 
you make? And you say, well, do you want to take the employer's 
estimate, your employer's verification of what you are paid, or do you 
want to take my idea of what I am worth? Pick your figure.
  When you use two books, you could do anything and it leads you to an 
absolutely absurd result.
  Mr. MINGE. Mr. Speaker, if the gentleman will continue to yield, I 
worked with certified public accountants, and you always look to an 
independent accountant for the best analysis of your financial 
condition.
  One thing that is just absolutely fundamental in the accounting 
profession is that you use standards and you apply them consistently. 
And when you are picking and choosing how you are going to apply your 
standards, you are setting yourself up for a very unfortunate 
accounting surprise.
  And for those folks in our body, those among our colleagues that are 
familiar with accounting, you know, number one, you need to have 
standards which make accounting sense. Secondly, you have to apply them 
consistently. And the third thing, which relates to what my colleague 
was just talking about, is, again speaking in accounting principles, to 
use an accrual basis of accounting.
  If you are keeping track of your obligations as they accrue, it is a 
whole lot harder to take an arbitrary cut-off like the end of a fiscal 
year and say, well, just ignore what the obligations might be as they 
come due just after the end of the fiscal year because that is another 
year. You cannot do that with the accountants. CPAs or the independent 
accountant say, no, we are not that easily fooled.
  But what has happened here with the Republican bills that have been 
passed is they are trying to fool us, they are saying we will put it 
off into the next year, do not worry about it. And one thing I noticed 
is that, with the National Institutes of Health, NIH, and medical 
research, that they are trying to take the money instead of regular pay 
for our research scientists and the universities as their bills are 
incurred, they are putting it off until the last month of the year. And 
it is nuts. It takes us away from the objective type of accounting that 
is so important to the integrity of this institution.
  I think it is tragic that we have struggled for the last 7 years to 
try to bring this type of discipline into this institution and here in 
1999 it is being destroyed.
  The previous chart that my colleague had up refers to the Committee 
on the Budget directing the CBO to adjust its estimates.
  I am on the Committee on the Budget. We had no committee meeting. The 
Committee on the Budget has not participated in this. This has come 
directly from the leadership in the House of Representatives and the 
Senate, the Republican leadership. And that, too, I think is very 
disappointing.
  If we are going to do this in an objective and bipartisan fashion 
like we should in dealing with the Office of Management and Budget or 
CBO, it ought to be committee action. There ought to be discussion. 
There ought to be debate. We ought to know what is happening.
  If my colleague would just indulge me for a moment, I would like to 
also mention some legislation which I introduced on Thursday as this 
final appropriations bill passed.
  I could see that our leadership here in Congress had done exactly 
what the Wall Street Journal article indicated. The Congressional 
Budget Office Director had written to me, saying we are $17 billion 
into the Social Security trust fund by our analysis, our independent 
analysis of the bills that have passed. And I said, if that is the 
case, then the leadership in this Congress has the responsibility to 
assure not just the other Members of Congress, not just the Social 
Security retirees, but all the American people that we are not going to 
be invading the Social Security trust fund by some type of enforcement 
mechanism.
  Unfortunately, there is not an enforcement mechanism to be seen in 
these series of appropriations bills, just a lot of empty promises 
about how they are protecting the Social Security trust fund, as my 
colleague said, beating their chest.
  So what I placed in this bill is essentially an obligation that we 
would have

[[Page H11355]]

with the American people that, if indeed CBO is right and we are into 
the Social Security trust fund, that we will restore to that trust fund 
out of the surpluses in fiscal year 2001 all the money that we have 
taken before we start talking about tax cuts in 2001 or before we start 
talking about expanding programs and new programs.
  I have had an unwillingness on the part of my colleagues on the other 
side of the aisle to join me in this legislation. I think it is 
critical if we are going to keep the faith of the American people. We 
cannot cut ourselves any slack. That would be a mistake. But, at a 
minimum, if we are going to pass this kind of legislation, which I 
think is irresponsible, we ought to be willing to be forthright and we 
ought to have enforcement mechanisms in that legislation so that we are 
protecting the Social Security surplus from the continued raids on the 
Social Security trust fund.
  Mr. POMEROY. Reclaiming my time, Mr. Speaker, the gentleman has 
established a reputation in this body as being a very serious-minded 
budgeteer for fiscal restraint, fiscal discipline, and functioning 
under due order.
  The issues in terms of if we were having a genuine debate between the 
parties, which party, the minority or the majority, might do a better 
job of protecting Social Security, what a wonderful debate it would be. 
It would be a competition between the parties that would be healthy, 
that would bring out our best, that would strengthen Social Security, 
our most vital program.
  But a debate like that will only be possible if each side levels with 
the American people. For one party to simply say they are protecting 
Social Security when indeed they are spending $17 billion of the 
surplus and denying every penny of it, that puts us on a track where 
this will not be a real debate, it will be about who can sell their 
lie. And that is not the way the American people deserve to have 
congressional debate unfold about the Social Security program.
  Mr. Speaker, I yield to my friend, the distinguished gentleman from 
Ohio (Mr. Strickland).
  Mr. STRICKLAND. Mr. Speaker, sitting here listening to my colleague, 
I was thinking what the American people must wonder about us as they 
sit at home and they watch us argue this matter and supposedly well-
meaning and intellectually honest individuals differing so sharply on 
what the real situation is.
  That is the benefit of having the Congressional Budget Office, 
because the Congressional Budget Office is not beholden to either 
political party, it is not beholden to any particular position. It was 
established to give us accurate and valid information. The American 
people, I believe, need to know that the leadership in this House has 
corrupted the Congressional Budget Office.
  It is a sad day, I think, for us. Because if we cannot have some 
clear standard that we can all look to and that the American people can 
look to, then the American people are left out there to wonder who can 
they believe, which ones of us can they trust.
  I think it is important for us to get this word out that the 
Congressional Budget Office, which is supposed to serve all of us who 
represent constituents across this country, was established to give us 
accurate, valid information and then we can take that information and 
use it to make decisions. But if that information is corrupted by 
directions from the leadership of this House, then where do we go for 
valid information? And we are left to flounder and then we end up, as I 
think we are experiencing during this end game with the budget process, 
with simply trading accusations back and forth.
  It is not our side that has corrupted the Congressional Budget 
Office. It is the leadership. It is the Republican leadership in this 
House. And the American people, I believe, need to hold them 
responsible.
  What they have done, I think, transcends this current crisis that we 
are experiencing up here, but it has the potential for a long time in 
the future to prevent us from making the kinds of wise and thoughtful 
decisions that the CBO enables us to make if they can do their job 
without unnecessary and unwarranted interference.
  Mr. POMEROY. Mr. Speaker, reclaiming my time, the Wall Street Journal 
article says it very directly: ``GOP continues to work from what 
amounts to two sets of books.''
  Now, it was not always that way. The gentleman was part of that 
historic bipartisan Balanced Budget Act that passed in 1997. At that 
time, Republicans and Democrats alike agreed that Congressional Budget 
Office numbers would prevail, that the budgets would be scored not by 
the White House OMB estimates but by the Congressional Budget Office 
numbers.
  How unfortunate now that, while the minority is staying with the 
Congressional Budget Office numbers as part of the Budget Enforcement 
Act of Congress, the majority wants to use, and I quote from the Wall 
Street Journal, ``two sets of books'' to basically cover what amounts 
to spending to the tune of $17 billion of Social Security surplus.
  We are very pleased to note the presence on the floor of the senior 
Democrat on the Committee on the Budget, a key negotiator that brought 
that Balanced Budget Act together in 1997, the gentleman from South 
Carolina (Mr. Spratt).
  Mr. Speaker, I yield to the gentleman from South Carolina (Mr. 
Spratt).
  Mr. SPRATT. Mr. Speaker, I think it is in order just to take a minute 
to say we have every reason to be celebrating our success. Three times 
in the 1990s we stood up to the problem of the deficit which had 
plagued fiscally the 1980s: In 1990, when we passed the Bush Budget 
Summit Agreement; in 1993, Democrats only, just our side of the aisle, 
one vote would have made the difference, we put on the board the votes 
to pass the Clinton Deficit Reduction Act. And then, in 1997, we came 
around to finish the job.
  As it turned out, the deficit was already down below $25 billion that 
year. But we wiped that out and went on to put the Government on a 
fiscally even keel for the next 5 years. And now we are enjoying the 
fruits of that and we ought to celebrate it.
  Last year, for the first time in 30 years, we had a surplus of $70 
billion. This year, when we closed the books on fiscal year 1999, we 
had a surplus of $125 billion. Now, that is using the yardstick that we 
have used since 1969, including all expenditures, all revenues of the 
Federal Government, and so-called unified or consolidated budget. If 
you back out Social Security, the biggest account in the budget, this 
year, for the first time in eons, we are just about in balance without 
including Social Security, a billion dollars in a budget of a trillion, 
800 billion dollars.

                              {time}  2100

  We are just about in balance with our Social Security. So we 
developed a new objective. Just as we were crossing the goal line, we 
moved the goal post back. We said, ``It's not good enough to balance 
the budget using Social Security. Let's balance the budget without 
using the surpluses in Social Security and let's not borrow from the 
Social Security trust account in the future.''
  The President was the first to propose that we use the Social 
Security surpluses to buy down debt held by the public, outstanding 
Treasury debt. The benefit of that would be if we dedicate ourselves 
completely to it over the next 10 years, we would retire $1.8 trillion 
in debt, half the outstanding debt held by the public of this country. 
And then over the next 15 years, we could retire nearly all of it, more 
than $3 trillion of publicly held debt. Then in 2020, 2024 when the 
Administrator of Social Security has to take those bonds which he holds 
as trustee and liquidate them, cash them in so he can meet benefit 
payments, the Treasury will be in better shape fiscally than ever to 
roll the bonds and pay the debt because it will have very little debt 
held by the public at that point in time. This is a fundamentally 
important thing, and basically both parties are coming together on 
trying to do that as one of the legs in the stool that will keep Social 
Security up.
  So this year we said we would like to stay out of the Social Security 
surplus. My colleagues on the other side said they were going to do 
that. The problem is they really have not shot squarely with the budget 
that they presented on the floor.
  And so I wrote Mr. Crippen, Dr. Crippen, a Republican appointee, a 
good man, he has a Republican partisan background, he is their 
appointee to head the Congressional Budget Office, CBO, supposed to be 
neutral and

[[Page H11356]]

nonpartisan. It is our budget shop. I asked him since he is the 
scorekeeper, he is the umpire, he is the arbiter in these matters and 
they are the experts with a good track record of predicting the effects 
of legislation that we pass around here that we call the budget, the 13 
appropriations bills that make up the annual budget, give me the 
latest, give us the latest update. When you have passed the 13th of 
these 13 bills, tell us where we stand.
  He wrote me back a letter telling it like it is. He said, Dear Mr. 
Spratt, look at table 1. Total spending in these 13 different 
appropriation bills by our calculation, and that is outlays, that is 
dollars actually spent in fiscal year 2000, the year that we are in 
right now, will come to $614.1 billion. He said if you apply an across-
the-board cut of 1 percent to that, you will whittle off about $3.5 
billion of it, leaving a net of $610 billion. He said in 1997 when you 
did the balanced budget agreement of 1997 and you capped discretionary 
spending, the cap or ceiling that you put on discretionary spending 
this year was $579.8, $580 billion. If you spend $610 billion which is 
what these 13 bills did, according to Dr. Crippen, you are $30.7 
billion over and above those discretionary caps. That is the first 
violation.
  Secondly, more importantly, when you go $30 billion over, you have 
got a $14 billion surplus out there that we project for fiscal year 
2000. That surplus would obtain if you hit the target of $580 billion 
in total spending. But if you are $30 billion over it, then you will 
use up the $14 billion surplus and be $17 billion in deficit. That 
deficit will have to come out of Social Security. That means that you 
will be $17 billion into the Social Security account. That is the 
straightforward accounting of the matter. No way you can cover that up. 
They tried to dispense with it with what we call scorekeeping gimmicks, 
delayed obligations, advance funding, all of these different things, 
there is a lengthy list of them provided, and they are all shams. The 
truth of the matter is right here. Dr. Crippen told it the way it is. 
They are $17.1 billion into the Social Security trust fund as a result 
of bills that this Congress passed under the majority leadership of the 
Congress in the House and the Senate.
  Mr. POMEROY. I want to ask the gentleman a question if he would be so 
kind.
  Two very distinctly different versions of this 1 percent cut have 
been presented on the floor tonight. I have quoted the Wall Street 
Journal that says even with the 1 percent cut, the Labor, Education, 
Health bill expected to be passed by the Senate on Monday includes 
major spending increases over the last year. That is what I believe 
that 1 percent cut does. The other side has said that 1 percent cut 
eliminates any spending into the Social Security revenues, so if you 
voted against that 1 percent cut, then you are voting to spend Social 
Security. That is their argument and they repeat it again and again and 
again.
  Would you discuss whether there is any basis to their argument.
  Mr. SPRATT. Dr. Crippen sent me two tables in response to my request. 
Under his letter of October 28, he said, CBO has also calculated the 
across-the-board cut that would be necessary to eliminate the estimated 
on-budget deficit, the deficit without Social Security, for this year 
under two scenarios. Table 2 presents their estimate of what would be 
necessary in the way of across-the-board cuts to wipe out this deficit 
of $17.1 billion that otherwise will come out of Social Security.
  He said, if you cut completely across the board, defense, veterans, 
everything, it will take a 4.8 percent across-the-board cut, not a .97 
percent cut but a 4.8 percent. Now, he said if you cut 4.8 percent, you 
are going to wipe out the pay raise and everything that you have 
provided for personnel this year, important initiatives in the defense 
bill. Your initiative to get $1.7 billion of additional funding for 
veterans health care will be largely wiped out. So if you exclude 
veterans health care and if you exclude defense programs, the across-
the-board cut would have to be 10.8 percent, not 1 percent or .97 
percent. It would have to be 10.8 percent. So the whole 1 percent 
across-the-board cut is a ruse. According to the Director of the 
Congressional Budget Office, Dr. Dan Crippen, the minimal cut would be 
4.8 percent in order to rectify these books and stay out of Social 
Security.
  Mr. MINGE. I have worked with the gentleman on the Committee on the 
Budget for the past 3 years. I have never worked with another committee 
member who has delved into the subject matter of the committee as 
thoroughly as he has. I was very interested in the comment that the 
gentleman made at the outset. That is, it has been historic. For the 
first time in decades we have balanced the budget using Social Security 
and now we have come within just a fraction of an inch of balancing the 
budget with Social Security off the budget, and so really it is a 
historic time. We ought to be rejoicing and we ought to be facing up to 
any problems that we have, having come this close to this 
accomplishment. But instead, what troubles me is that we are corrupting 
the integrity of the budget process to be able to boast that we have 
done something we have not quite done yet. I think that the damage that 
this does to the integrity of this institution is tragic.
  Mr. SPRATT. If the gentleman will yield, to the discipline of the 
budget rules that have brought us from a $290 billion deficit 7 short 
years ago to a surplus this year, measured by the same technique, of 
$125 billion. Rules, processes, procedures have helped us travel that 
far in this period of time. If you undercut and trash those rules, we 
will soon lose what we have accomplished.
  Mr. MINGE. That is exactly my point. We are corrupting the process 
here to be able to boast that we have done something that has not quite 
been achieved. I think that is one tragedy. The second is, we have not 
even talked here in our discussion about Social Security about the 
enormous and really it was a phony tax cut proposal that was passed 
through these bodies this fall. There was an effort to I think pander 
to the American people about a tax cut that many of our colleagues 
would never have voted for if they had expected the President to sign 
it, and that would have destroyed our opportunity to say that we were 
indeed balancing the budget without using Social Security. There was no 
really effective enforcement mechanism there, there is no effective 
enforcement mechanism now, and the consequence is that what we are 
doing is we are sowing the seeds of disillusionment of the American 
people of this institution. I think that we ought to be forthright, we 
ought to have the integrity to stand up and say, it might be next year 
if that is really what we are doing, and the leadership in this body is 
taking us down this sort of rosy scenario path. What I really resent 
about this path is that we again are attempting to mislead our 
citizens. This Wall Street Journal article lays it out factually. I 
think that if the Wall Street Journal is taking a critical eye of this, 
this claim by the Republicans in this body, the entire Nation should 
know that we have to really sit up and watch what is happening. We 
cannot let the leadership fool us or fool the American people in what 
is happening.
  Mr. POMEROY. Reclaiming my time, the parties have agreed on some 
fundamental principles of budgeting. Going to use real numbers, 
commonly agreed to, as scored by the Congressional Budget Office, an 
office established for that very purpose. Secondly, we are going to 
operate under budget caps, caps that limited the amount of money that 
could be spent. Thirdly, we were going to have pay-as-you-go, so if 
you, operating within those caps, were adding spending, you had to cut 
spending somewhere else. Those are the three core elements the parties 
have agreed to in terms of budget discipline that got us out of this 
god-awful deficit and into the situation where the surplus is today. I 
think the gentleman from Minnesota makes such a great point in 
expressing his real alarm at now the Republican majority tearing apart 
those agreed principles of budget discipline.

  I think of it kind of like a dam holding back a wall of water. Just 
think about it being these budget discipline principles holding back a 
flood of Federal spending. If one party starts to say, ``We're not 
going to use real numbers anymore, we're not going to use the 
Congressional Budget Office anymore, we'll use them some but when it is 
to our advantage, we'll use something else, we're going to keep two 
sets of books,'' when the budget number integrity starts to go, look 
out, because

[[Page H11357]]

 there is going to be a wall of spending trying to hustle through that 
very opening.
  Mr. SPRATT. If the gentleman will yield again, I would like to pick 
up on what the gentleman from Minnesota said, and that is that this is 
a pretty special time. For the first time in the 17 years that I have 
been here, we are literally able, fiscally able to do something about 
Social Security's long-run future and Medicare's long-run future. 
Heretofore, we have had to struggle year to year with the deficits that 
have beset our budgets. We simply did not have the wherewithal to 
muster the energy and do something about Social Security. Now we can do 
something, if we will. The question before us is, do we have the will 
to do it?
  Last August, just as soon as CBO and OMB had both projected large 
accumulations of surpluses over the next 10 to 15 years, the first 
action we got from our colleagues on the other side was a large tax 
bill. And I think some of the surplus should be given back to the 
American people in the form of tax reduction, no question about it. But 
I think the American people want us to fix Social Security for the long 
run and we have got the opportunity now.
  If we had voted for that tax bill last summer, and the President 
signed it, the wherewithal to deal with Social Security would have been 
gone and the problem we have right now, closing the budget this year, 
we are 1 month into a new fiscal year, do not have a budget, only 
foreshadows the problems we would have had in 2001, 2002, on past 2010, 
as far as the eye can see, if that tax bill had been passed. It would 
have left us strapped and unable to do anything about Social Security, 
much less Medicare.
  Mr. POMEROY. Reclaiming my time and on that point, there are three 
ways you shore up Social Security for the long haul. One way to do it 
is cut benefits. We are going to run out of the Social Security trust 
fund in the year 2034, so what are we going to do to prop it up for the 
long haul? With the average Social Security check in this country being 
somewhere around $700 and one-third of all recipients depending almost 
entirely on that check to live, two-thirds depending on that $700 check 
for more than half their income, I do not think cutting benefits is 
what we want to do. I do not think we ought to raise the retirement 
age. Americans are looking forward to their promised Social Security 
check. What do you want to take the retirement age to? 70? 72? 75? We 
do not want to go that way. So cutting benefits, I do not think, is the 
way to go.

                              {time}  2115

  The second thing you could do is raise taxes. Well, the tax already 
is 12.4 percent to support Social Security, the payroll tax. More 
Americans in this country pay higher FICA taxes supporting Social 
Security than they pay income tax. So I surely do not think you want to 
do any more on raising taxes.
  That gets us to the third and only other alternative, and that is to 
take some of the general fund money and put it into Social Security so 
you prolong the life of Social Security and have it there, guaranteed, 
so those benefits will be there as we baby-boomers move into retirement 
and as our children move into retirement after us.
  Now the tax cut passed by the majority, vetoed thankfully by the 
President, would have taken all the general fund revenues and basically 
sent them out the door in a tax cut that disproportionately benefited 
the wealthiest people in this country. The general fund revenues are 
gone. That means Social Security faces being balanced by benefit cuts 
or tax increases as the only other alternatives. So, thankfully, while 
this majority has not been very good about getting the spending bills 
put in order, they did get that tax cut bill passed, but, fortunately, 
it was stopped.
  We are joined tonight by a very distinguished Member of this body, 
the gentleman from North Carolina (Mr. Price).
  Mr. PRICE of North Carolina. Mr. Speaker, I thank the gentleman. I 
was intrigued with the gentleman's suggestion about the various paths 
open to us to strengthen Social Security. I think it is worth 
mentioning that in 1983, when the Social Security Trust Fund was 
rescued and put on a path to solvency, we started deliberately running 
surpluses in Social Security, and we are enjoying those surpluses 
today. But we were running those surpluses for a purpose, so that the 
assets will be there when the baby-boomers retire and when the strains 
on the fund become much greater. Those surpluses are being invested by 
law in Treasury bonds at market rates of interest.
  But is it not true that when the time comes to make good on those 
obligations, we would have a terrible time doing that were we to be 
saddled with a publicly held national debt of the dimensions that we 
now are, $3.5 trillion, costing this country something like $230 
billion annually in interest costs?
  So is it not prudent, is it not just common sense, to use our 
surpluses now to get that publicly held debt down, to get that interest 
cost off of our back? Ten years from now, 15 years from now, when the 
strains on the Social Security Trust Fund are much greater, then we 
will be in a much stronger position to make good on those obligations.
  Mr. POMEROY. Reclaiming my time, the gentleman has laid out, I think, 
the construct of what is emerging as the single best way to shore up 
Social Security for the long haul: take the surplus dollars and pay 
down debt held by the public. Fifteen cents out of every taxpayer 
dollar today goes to pay interest. It is unavailable for tax relief, it 
is unavailable for any positive function, it simply pays interest, 
fifteen cents out of every dollar.
  We take that debt held by the public down and bring it down 
dramatically as these surpluses would allow. There is going to be a 
huge budget savings. We are not going to have to pay that interest 
anymore. Anyone who has ever retired a credit card debt or pays off a 
home mortgage knows how that one works. You do not pay the debt; you do 
not have the interest cost.
  Well, if we take the general fund savings that we are not paying in 
interest and put it into the Social Security Trust Fund to shore up 
Social Security, we can move the life of the trust fund from 2034 to 
2050. Now, that takes us as a country well past the period of time when 
most of us baby-boomers are going to be drawing upon the Social 
Security program. It is a major boost to the solvency of the program.

  I think especially as the ending days of this session grind on, it is 
the clear difference between how the parties would treat Social 
Security. The proposals of the majority would not extend the life of 
Social Security by a single day, not a single day. On the other hand, 
you pay down the debt, you take the interest savings, you put it into 
the trust fund, you can push the life of the trust fund to 2050 and, at 
the same time, leave this country in the strongest financial position 
it has been relative to debt since 1917, bringing that 15 cents on the 
dollar of interest cost down to 2 cents on the dollar in interest 
costs.
  If we could be part of that, working together with the majority to 
actually lengthen the life of the trust fund, we would really be doing 
something for the American people.
  But contrast that plan with the plan that essentially purports to do 
something about Social Security, but uses every budget gimmick, 
including double bookkeeping, to try and mask a raid on Social 
Security, and, in any event, does not add a single day to the life of 
the trust fund. That really is the alternative offered by the 
respective parties late in this going.
  I yield to the ranking member of the Committee on the Budget.
  Mr. SPRATT. Mr. Speaker, I would like to make a point that is a 
little different from the one the gentleman has been on, and that is we 
achieve these budget surpluses with real budget discipline. Among other 
things, we impose cost curbs and controls, discretionary spending 
ceilings, for example, that have held spending down for the last 10 
years. As a consequence, we have reduced spending in the Federal budget 
to where today it is about 19 percent of the total economy. In other 
words, out of every dollar this economy produces, the Government takes 
a bite of about 19 cents.
  As recently as the mid-1980s, in the peak pinnacle of the Reagan 
years, we were spending, the Federal Government, as a percentage of 
GDP, 23.6 percent, as opposed to 19 percent going to 18 percent in a 
few years under the

[[Page H11358]]

budget we have now in place, 3 to 4 percentage points less than we were 
spending just 15 years ago.
  Now, why is that significant for Social Security? In order to pay for 
the long-run cost of Social Security, once the ratio of those working 
to those retired drops to about 2.2 to 1, we will need to shift 
resources out of our GDP into the Social Security program, because we 
have lowered spending. We will need to shift about 2.7 percent maximum 
of our total economy in order to fund the peak demands of the Social 
Security system after the baby-boomers fully retire.
  Because we have adjusted spending, we have laid the basis, the 
foundation, for making that adjustment in the future, another way that 
we position ourselves to finally stand up to this problem, address the 
problem, rise to the opportunity, and it will be a shame if we blow 
this opportunity and do something else before we have saved and made 
Social Security solvent for the long run, because it is bedrock for 40 
million Americans, and it will be bedrock for millions more before our 
work is done.
  Mr. POMEROY. Reclaiming my time, and I want to direct a question to 
the gentleman from North Carolina (Mr. Price), particularly given his 
expertise on the Committee on Appropriations, the other side maintains 
that their 1 percent across-the-board cut takes no spending out of the 
Social Security Trust Fund. Now, the Congressional Budget Office has 
said that is not true. In fact, it shows that they are into the Social 
Security Trust Fund to the tune of $17 billion.
  It says if they wanted to actually get that money down so it was not 
in the Social Security Trust Fund, rather than a 1 percent cut, it 
would be almost a 5 percent cut, and that is across the board.
  Now, that would include wiping out the pay raise that we gave the men 
and women in our military. It would include wiping out the important 
additions we have made in veterans health, so that this Nation can 
continue its health commitment to its veterans.
  If you take the Defense Department and you take veterans health off 
the table, you say well, we cannot cut that 4.8 percent, take that off 
the table, then you are talking almost an 11 percent, 10.8 percent 
across the board, in order to get Congress out of the Social Security 
surplus.
  Would the gentleman on the Committee on Appropriations have any 
opinions in terms of whether or not this would be any way to run a 
country?
  Mr. PRICE of North Carolina. Mr. Speaker, the gentleman is exactly 
right. We can look back and say how much better it would have been, how 
much better off we all would be, had we had a realistic budget 
resolution 8 months ago, had we agreed not to engage in this budget 
gimmickry and this budget gamesmanship and had simply met our 
obligations.

  Other speakers have said tonight there was the potential there, and I 
hope there still is, for considerable bipartisan agreement. We, after 
all, in 1997 came together on a Balanced Budget Act, and both parties 
are largely agreed or at least profess agreement that we ought to be 
using the Social Security surplus to buy down debt and to ensure the 
future of Social Security.
  But what we have now at the end of this session is a confusing and 
convoluted process. The gentleman from South Carolina (Mr. Spratt) has 
referred to this directed scoring. All in the world that means is the 
Congress tells people who are supposed to be neutral, fair 
scorekeepers, tells them how to cook the books. Surely that is not what 
this budget process had in mind, the architects of this process.
  Then all this emergency spending that is not really emergencies, and 
then this 1 percent across-the-board cut, which is out there I suppose 
for show, but, as the gentleman says, does not even come close to doing 
what the Republican majority has said that they intend to do.
  So I do not know quite how we are going to resolve this congressional 
session; but I do know that we need to come together, we need to be 
honest with one another and with the American people, and we need 
heretofore to abide by the rules of the budget process and never again 
go through this kind of deceptive and convoluted end-of-session budget 
game.
  Mr. POMEROY. Mr. Speaker, reclaiming my time, I would like to see us 
start as we push toward conclusion by at least being honest with the 
American people. Maybe they will agree with our side; maybe they will 
agree with that side, but we owe it to the people we are here to 
represent to at least be square with them, tell it like it is, and that 
is why I believe these budget gimmicks, two sets of books, emergency 
funding declarations, claiming you have not spent Social Security when 
you have spent Social Security, does such a terrible injustice to our 
efforts to try and resolve the differences and end this session.
  Clearly, it is in nobody's interest to be lurching along from 
continuing resolution to continuing resolution. I think as we do that, 
we even raise the prospects of another Federal shutdown, something one 
of the speakers from the majority alleged tonight was not all that bad 
a result. Well, I surely would hope we would not go there and we would 
end this on budget numbers.
  As we conclude this special order, I yield to the gentleman from 
South Carolina for any concluding remarks he might have.
  Mr. SPRATT. Mr. Speaker, I thank the gentleman for calling this 
special order.
  Mr. POMEROY. Mr. Speaker, I very much appreciate the gentleman 
bringing his expertise to the floor. It is a late hour here on the 
floor of the House of Representatives. I thank both gentlemen so much 
for the contributions each has made.

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