[Congressional Record Volume 146, Number 1 (Monday, January 24, 2000)]
[Senate]
[Pages S10-S11]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




            PROTECT THE SOCIAL SECURITY AND MEDICARE SURPLUS

  Mr. GRAMS. Mr. President, tonight at the very beginning of the second 
session of the 106th Congress, I rise to talk about legislation that I 
introduced earlier today--on a vitally important issue: protection of 
the Social Security and Medicare surplus.
  My legislation reassures the American people that Congress and the 
Administration will not spend a penny of their Social Security and 
Medicare money and it creates a mechanism to enforce our commitment to 
protecting these surpluses.
  This ``look-back'' enforcement mechanism is simple and 
straightforward. It basically says if Congress and the Administration 
indeed spend any of the Social Security and Medicare surplus in the 
previous fiscal year, an automatic reduction in Government 
discretionary spending, including congressional Members' pay, will be 
triggered. The money will be returned to the Social Security and 
Medicare trust funds. It would work similarly to the sequester of 
Gramm-Rudman-Hollings, but applies to spending of Social Security and 
Medicare surplus funds. I stress the sequester could not cut any 
Medicare or other entitlement programs.
  Unlike similar legislation I introduced last year, this bill adds the 
Medicare surplus into the protection. The Medicare part A surplus will 
be about $20 billion this year. This surplus should also be preserved 
for senior's medical expenses only, not for any general Government 
spending.
  My legislation would in effect prevent anyone, whether it is the 
Congress or the administration, from raiding the Social Security and 
Medicare surplus.
  I believe this is a crucial step to truly protect the Social Security 
and Medicare surplus and save it exclusively for Americans' retirement 
and medical needs, not for tax relief, and not for government spending.
  Let me explain why we need this legislation.
  First and foremost, the American people do not understand why budget 
rules do not protect the Social Security and Medicare surplus. I have 
traveled intensively throughout Minnesota during this congressional 
recess. Everywhere I went, Minnesotans told me that the Federal 
Government's practice of so-called ``borrowing'' from the Social 
Security and Medicare trust funds must be stopped, and Americans' 
retirement funds must be secured.
  They are very worried that the retirement funds will not be there for 
them, and they are concerned that the Government will not be able to 
return the over $750 billion already ``borrowed'' and spent by the 
Government. They want me to take every measure possible to protect 
their retirement security and their future health care needs.
  Last December, the Congressional Budget Office's end of the session 
summary estimated that Congress spent $17 billion of the Social 
Security surplus and exceeded the spending caps by $7 billion in budget 
authority and $17 billion in outlays.
  In addition, Congress spent every penny of the $14 billion non-Social 
Security surplus which we promised to return to working Americans as 
tax relief.
  The Congressional Budget Office also reported that increased revenue 
would present a more favorable picture. On Wednesday, the CBO is 
expected to issue its new estimates and it appears likely that 
Americans' tax overpayments will enable us to avoid spending any of the 
Social Security surplus.
  However, my concerns are, first, the CBO December estimate gives the 
general public the impression that we failed to keep our promise to 
protect the Social Security surplus and that we are now covering it up 
with budgetary smoke and mirrors.
  Second, as a result, we have to use additional tax overpayments to 
fund the increased government spending, even if the new CBO estimate 
shows we did not spend the Social Security surplus.
  Already, lawmakers are talking about how to spend the rest of the 
non-Social Security surplus in an Supplemental emergency early this 
year.
  Because of this propensity to spend, I believe the look-back proposal 
is essential to protect us now and in the future from the temptation to 
spend ``just a little'' the Social Security and Medicare surpluses.
  Further, I have argued repeatedly before the Senate that economic 
forecasting is more of an art than a science. Many uncertainties, 
risks, and factors are involved. We have a budget of over $1.8 trillion 
based on a variety of assumptions, estimates, forecasts and 
projections, with people using both Congressional Budget Office numbers 
and Office of Management and Budget. It is highly likely that there are 
errors in this budget. If the error occurs in Social Security spending, 
we must have a mechanism to correct it.
  Another compelling reason for this legislation is that we are facing 
even more severe budget constraints and spending pressures this year 
because according to the CBO, the discretionary budget authority for 
fiscal year 2001 is about $542 billion, which is $18 billion less than 
the amount appropriated for 2000.
  What's worse, $23 billion out of the $542 billion cap has already 
been appropriated as advance funding in the 2000 appropriations bills. 
President Clinton has already talked about breaking the caps which he 
agreed to, by the way, in 1997.
  Although we may have more on-budget surplus this year, which is 
supposed to be returned to the taxpayers in the form of tax relief and 
debt reduction, there is no guarantee Congress and the administration 
will not touch the Social Security and Medicare surplus.
  Since we all have agreed that saving Social Security should be our 
top priority and have committed to not spending the Social Security 
surplus for Government programs, we must do everything we can to 
prevent the Government from spending the Social Security and Medicare 
surpluses. We need to find a better way to keep our promise to the 
American people.
  Senators on my side of the aisle have made a number of attempts to 
create a

[[Page S11]]

lockbox to lock in every penny of the Social Security surplus 
exclusively for Americans' retirement. Unfortunately, opposition by the 
other side has blocked the establishment of this safe lockbox. Some 
opposed because Medicare was not included. My proposal does protect 
Medicare.
  The ``look-back'' mechanism in my legislation is our best option. It 
will force the Government to live up to our pledge that not a penny of 
the Social Security and Medicare surpluses will be spent to fund either 
last year's or this year's appropriations.
  If our spending plans do pass and we would again, unintentionally 
wind up spending Social Security, we must be able to keep our 
commitment to the American people, by scaling back other spending to 
save Social Security. Without this mechanism Congress and the President 
may spend some of the Social Security surplus by using inaccurate 
estimates.
  The remedy in my bill is a simple one and it should be passed early 
before we face a problem, so we cannot play the blame game if a re-
estimate shows spending of Social Security or Medicare surpluses.
  In an era of budget surplus, extra prudence and effort is needed to 
keep ourselves from spending more than we can afford. On principle, we 
must do everything we can to ensure Washington will not touch any 
Social Security money.
  Protecting the Social Security and Medicare surpluses from funding 
government operations is the last defense of fiscal discipline. I 
cannot emphasize how vitally important this line of defense is for both 
political parties because if we lose this defense, our credibility and 
accountability with the American people will be gone.
  I strongly believe we should continue to stress our promise to the 
American people. We must make protection of the Social Security and 
Medicare surpluses our top priority and ensure that not a penny of 
Americans' retirement needs is used for Government spending.
  Again, I believe this can be easily achieved by passing my ``look-
back'' legislation which will allow us to enforce that commitment.
  I thank the Chair and I yield the floor.
  The PRESIDING OFFICER. The Senator from Nevada.

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