[Congressional Record (Bound Edition), Volume 153 (2007), Part 3]
[Senate]
[Pages 3056-3057]
[From the U.S. Government Publishing Office, www.gpo.gov]




   BUDGET OF THE UNITED STATES GOVERNMENT FOR FISCAL YEAR 2008--PM 5

  The PRESIDING OFFICER laid before the Senate the following message 
from the President of the United States, together with an accompanying 
report; which was referred jointly, pursuant to the order of January 
30, 1975 as modified by the order of April 11, 1986; to the Committees 
on the Budget; and Appropriations:

To the Congress of the United States:
  America is a country of opportunity. Throughout our history, we have 
overcome great challenges by drawing on the strength, creativity, and 
resolve of the American people. We have adapted to change--while 
maintaining our commitment to freedom and an open economy.
  Our economy is strong and growing, Federal revenues are robust, and 
we have made significant progress in reducing the deficit. The Budget I 
am presenting achieves balance by 2012. My formula for a balanced 
budget reflects the priorities of our country at this moment in its 
history: protecting the homeland and fighting terrorism, keeping the 
economy strong with low taxes, and keeping spending under control while 
making Federal programs more effective.
  As Commander in Chief, my highest priority is the security of our 
Nation. My Budget invests substantial resources to fight the Global War 
on Terror, and ensure our homeland is protected from those who would do 
us harm. We will transform our military to meet the new threats of the 
21st Century and provide the brave men and women on the front lines 
with the resources they need to be successful in this decisive 
ideological struggle. The Budget will support a new strategy in Iraq 
that demands more from Iraq's elected government, and gives American 
forces in Iraq the reinforcements they need to complete their mission. 
And it will continue to provide the tools necessary to keep America 
safe by detecting, disrupting, and dismantling terrorist plots.
  The U.S. economy is strong. Since August 2003, 7.2 million jobs have 
been created. Unemployment is low. Wages are growing. Productivity is 
strong. Inflation and interest rates are low. And we have seen 
tremendous progress despite a series of challenges, including 
recession, the terrorist attacks of 2001, corporate scandals, the 
costliest natural disaster in our Nation's history, energy price 
spikes, and a temporary slowdown in the housing sector. The resilience 
of our economy is a tribute

[[Page 3057]]

to America's workers and entrepreneurs. And well-timed, pro-growth tax 
policies helped create the right climate for innovation and 
entrepreneurship.
  The Federal deficit is declining and on a path to elimination. Last 
year, we successfully met our goal of cutting the deficit in half, 
three years ahead of schedule. This occurred because tax relief helped 
the economy to recover and grow, resulting in record-high revenues 
while we restrained non-security discretionary spending. With continued 
strong economic growth and spending discipline, we are now positioned 
to balance the budget by 2012, while providing for our national 
security and making tax relief permanent.
  My Budget proposes to keep non-
security discretionary spending below inflation for the next five 
years. My Budget also reforms projects and spending that don't get the 
job done. We need lawmakers' support to help us accomplish this goal--
including reforms that will improve the Congressional budget process.
  To bolster public confidence in the Government's ability to manage 
taxpayers' money successfully, Congress should adopt earmark reform. 
The earmark process should be made more transparent, ending the 
practice of concealing earmarks in so-called report language never 
included in legislation. The number and cost of earmarks should be cut 
by at least half by the end of this session. I have also called on 
Congress to adopt the legislative line-item veto, which gives the 
Legislative and Executive Branches a tool to help eliminate wasteful 
spending. These common-sense reforms will help prevent billions of 
taxpayers' dollars from being spent on unnecessary and unjustified 
projects.
  To keep this economy strong we must take on the challenge of 
entitlements. Social Security, Medicare, and Medicaid are commitments 
of conscience, and so it is our duty to keep them permanently sound. If 
we do not address this challenge, we will one day leave our children 
with three bad options: huge tax increases, huge deficits, or huge and 
immediate cuts in benefits.
  In the short term, my Budget works to slow the rate of growth of 
these programs, saving $96 billion over five years. This Administration 
is also actively working with Congress to comprehensively reform and 
improve these vital programs so they will be strong for the next 
generations of Americans.
  I am optimistic about the future of our country. We are an 
entrepreneurial and hard-working Nation. And while we face great 
challenges, we enjoy great opportunities. This Budget reflects our 
highest priorities while reducing the deficit and achieving a balanced 
budget by 2012. I am confident that this approach will help make our 
country more secure and more prosperous.
                                                      George W. Bush.  
The White House, February 5, 2007.

                          ____________________