[Congressional Record (Bound Edition), Volume 146 (2000), Part 2]
[Senate]
[Pages 2014-2015]
[From the U.S. Government Publishing Office, www.gpo.gov]



                            SAVE OUR SURPLUS

  Mr. GRAMS. Mr. President, I rise to speak about a very important bill 
I introduced yesterday. My Save Our Surplus, or S.O.S. legislation 
would lock in every penny of the $23 billion non-Social Security 
surplus which materialized in FY 2000 and return it to working 
Americans in the form of debt reduction, tax relief and structural 
Social Security and Medicare reform.
  The reason for this legislation is simple: Last year the Congress 
adopted my amendment in the budget resolution to set up a reserve fund 
for any non-Social Security surplus for tax relief.
  Unfortunately, this provision in the budget resolution was completely 
ignored in the appropriation process. As a result, we ended up spending 
every penny of the projected $14 billion on-budget surplus.
  The Congressional Budget Office estimated early this year that, 
Thanks to our strong economy, we would have an even higher $23 billion 
on-budget surplus in the current fiscal year despite that spending 
spree.
  Mr. President, this $23 billion non-Social Security surplus does not 
fall from the sky. It is working Americans who generated the surplus--
not Congress, not the President, but Americans' hard work.
  In fact, hard working Americans have created a strong economy that 
has turned the ink in Washington's accounting book black for the first 
time in 40 years. The budget surplus above and beyond Social Security 
will top $1.9 trillion over the next 10 years.
  Clearly, the reason we have a surplus is the result of the hard work 
of working men and women of this country. Washington should not be the 
first in the line to spend this surplus.
  Mr. President, the budget surplus above and beyond the Social 
Security surplus is tax overpayments and should be returned to 
taxpayers in the form of tax relief, debt reduction and Social Security 
reform.
  If we don't return the tax overcharges to the taxpayers in these 
ways, Washington will spend it all, leaving nothing for tax relief, 
debt reduction or the vitally important task of preserving Social 
Security. Last year's appropriations spending has proven my fears are 
well founded.
  President Clinton has already proposed spending nearly all of this 
surplus, and both Chambers of the Congress are preparing to add even 
more to the President's request in this year's supplemental spending 
bill.
  This is not right. Last year's discretionary spending was already 
increased by over 5 percent, twice the rate of inflation. If Congress 
spends this additional $23 billion surplus, discretionary

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spending will increase by over 9 percent. If there is a Supplemental, 
it should be fully offset by spending reduction.
  President Clinton also proposes to ``correct the gimmicks'' in the FY 
2000 Appropriations bills by shifting payment dates from FY 2001 back 
to FY 2000, lifting restrictions on obligations, and reversing advance 
funding.
  Mr. President, I was the one that spoke repeatedly on the Senate 
floor last year in strong opposition to budget gimmickry. However, 
changing the gimmicks now would have the effect of increasing 
discretionary and mandatory spending in FY 2000 by $10 billion while 
also allowing for spending to increase in FY 2001 by a corresponding 
amount.
  Mr. President, two wrongs don't make a right. Let's leave FY 2000 
spending the way it is and pledge to stop the gimmicks this year.
  The last thing we should do is to spend tax overpayments to enlarge 
the government. If we cannot give working Americans a tax refund this 
year due to President Clinton's veto of our tax relief bill, we at 
least should dedicate this on-budget surplus to reduction of the 
national debt.
  It is true that our short-term fiscal situation has improved greatly 
due to the continued growth of our economy. However, our long-term 
financial imbalance still poses a major threat to the health of our 
future economic security.
  We must also recall that Americans have long been overtaxed, and 
millions of middle-class families cannot even make ends meet due to the 
growing tax burden. They still call for major relief. That's why we 
passed nearly $800 billion in tax relief for them. But President 
Clinton denied them the tax refund they deserve.
  FY 2000's spending is the worst example of fiscal irresponsibility. 
Washington spent far more than it should have. But what concerns me is 
that if we continue this dangerous trend by spending this $23 billion 
additional surplus for FY 2000, we will push the spending baseline even 
higher, leaving an even smaller on-budget surplus for our 5-year or 10-
years tax relief or for debt reduction.
  I understand that we do have emergency spending needs each year. I 
support true emergency spending, such as disaster relief or 
agricultural crisis relief. But I believe we should, and can, meet 
these challenges by prioritizing and streamlining government programs 
to offset this new spending while maintaining fiscal discipline.
  Again, my point is, Mr. President, that this non-Social Security 
surplus is nothing but tax over-payments. It is the American taxpayers' 
money and it should be returned in the form of debt reduction, tax 
relief or Social Security reform.
  If we don't give the non-Social Security surplus back to the 
taxpayers in these ways, Washington will soon spend it all. Such 
spending will only expand the government, making it even more expensive 
to support in the future, creating an even higher tax burden than 
working Americans bear today and a higher federal budget.
  I join Chairman Alan Greenspan who has been advocating using surplus 
for debt reduction and tax relief rather than increasing government 
spending.
  My S.O.S. legislation would achieve this goal by creating a new point 
of order against any legislation reducing the FY 2000 non-Social 
Security surplus if it is not used for debt reduction, tax relief or 
structural Social Security and Medicare reform.
  The S.O.S. legislation is a fiscally responsible bill. I urge my 
colleagues to support it.

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