WASHINGTON-With the federal government projected to run $137 billion in
deficits without counting the Social Security surplus over the next five
years, so-called "unified" budget surpluses should not be used for either
tax cuts or spending increases. That was the message of a letter sent to
members of Congress today by the Concord Coalition, a nonpartisan budget
watchdog group.
WASHINGTON-With the federal government projected to run $137 billion in
deficits without counting the Social Security surplus over the next five
years, so-called "unified" budget surpluses should not be used for either
tax cuts or spending increases. That was the message of a letter sent to
members of Congress today by the Concord Coalition, a nonpartisan budget
watchdog group.
"As you consider how to cast your vote on various fiscal year-end
proposals to spend the surplus, Concord cannot state often enough or with too much
emphasis that this year’s unified surplus-and the projected surpluses over
the next ten years-consists entirely of Social Security’s annual trust fund
surpluses. Without dipping into funds earmarked for Social Security, there
is no budget surplus to spend," writes Concord Coalition Executive Director
Martha Phillips in the letter.
According to the Congressional Budget Office, from this year through the
end of 2008 both the unified budget surplus and the Social Security
system’s surplus are projected to be nearly $1.6 trillion. In addition, the
discretionary appropriations caps enacted in the 1997 balanced budget
agreement call for reducing discretionary appropriations by nearly 10
percent after accounting for inflation between now and 2002.
"Concord is increasingly concerned that the election year temptation to
use Social Security surpluses for other purposes will lead to a dangerous
breakdown in fiscal discipline. The pay-as-you-go rules and discretionary
spending caps have worked well for nearly a decade. They should not be
suspended, eliminated, or violated on the mistaken assumption that they are
no longer needed," writes Phillips.
The Concord Coalition is a nonpartisan, grassroots organization seeking to
eliminate federal budget deficits and ensure Social Security, Medicare, and
Medicaid are secure for all generations. Concord was founded in 1992 by the
late former Senator Paul Tsongas (D-Mass.), former Senator Warren Rudman
(R-N.H.), and former Secretary of Commerce Peter Peterson. Former Senator
Sam Nunn (D-Ga.) was named a co-chair of the Coalition in 1997.
