Clinton Says $115 Billion Surplus Biggest
Ever
WASHINGTON (Reuters) - President Clinton said that taxpayers will produce a
record $115 billion budget surplus this year and urged Republicans to help him decide what
to do with it. ``We have to come together and work together to get anything done, and we
can do that,'' Clinton said. The president's call to set partisanship aside was unlikely
to play well with Republicans in Congress. He vetoed their $792 billion tax cut measure,
effectively dooming chances for a major tax reduction this year.
The surplus for the 1999 fiscal year -- which ends with no agreement near
between the White House and congressional Republicans on a spending plan for 2000 -- had
been projected over the summer at $99 billion.
But the U.S. economic boom produced an even larger surge of tax revenues for the
government and the surplus now is projected at $115 billion, Clinton said in a Rose Garden
statement before departing for New Orleans.
``I'm going to write this in -- enjoy it,'' Clinton told reporters as he
scribbled in the surplus figure onto a chart.
After last year's $69 billion surplus, it means the United States had produced a
surplus for two years in a row, the first time that has happened since 1956-57.
Clinton was quick to boast that the surplus was a remarkable turnaround from
1992, when the budget was $290 billion in the red.
PARTISAN SHOWDOWN LOOMING
The new, bigger surplus seemed likely to intensify the budget showdown between
Democrats and Republicans on Capitol Hill.
Clinton wants to use $2.9 trillion in projected surpluses over 10 years to
strengthen the Social Security retirement program and the Medicare health program for the
elderly and add a prescription drug benefit for seniors.
He also wants to boost spending on education and environmental protection, start
paying down the national debt and give tax breaks of $250-300 billion to middle-class
Americans.
``I will work with members of both parties to fulfill these fundamental
obligations to our people and to our future. I hope they will work with me,'' Clinton
said.
Republicans said the larger surplus made clear the need to give some back to
taxpayers.
``More surplus money for Washington means less money for families and workers
across our country, and tax relief is the only way to balance the scales,'' said Rep. Bill
Archer, a Texas Republican who chairs the House of Representatives Ways and Means
Committee.
He said Republicans will guard the money to protect Social Security and Medicare
and pay down the national debt ``and stop Washington from spending them on a smorgasbord
of government programs.''
STOPGAP MEASURE EXPECTED
With the fiscal year ending, the White House is threatening to veto more than
half of the 13 spending measures needed to fund the government for the 2000 fiscal year.
Congress has passed only four bills so far.
Republicans say it is likely they will pass a stopgap spending bill that will
last for three weeks, during which the two sides will try to hash out an agreement on the
spending measures.
Administration officials said Clinton would still resist a big tax cut despite
the larger-than-expected budget surplus.
``After years and years of deficits, having a good year or two isn't enough to
make us reverse the policies that got us here in the first place,'' White House spokesman
Jake Siewert said.
Despite the distance between Democrats and Republicans on the budget, Clinton
said he was not pessimistic about eventually getting a deal.
``We've still got plenty of time,'' Clinton said.
