White House, Congress promise not to raid Social Security

October 19, 1999
Web posted at: 11:29 p.m. EDT (0329 GMT)

WASHINGTON (CNN) -- While the White House and congressional Republicans are warming up for their annual bare-knuckle brawl over the budget, they paused Tuesday evening to take a bow for promising not to touch Social Security surpluses to pay for the next round of federal spending.

"The president accepted our parameters -- not touching Social Security, not raising taxes," announced House Majority Leader Dick Armey (R-Texas).

"The only thing taken off the table -- I think on a bipartisan basis -- is the utilization of the Social Security trust fund," said Senate Minority Leader Tom Daschle (D-South Dakota).

The funding of old-age benefits by the Social Security Administration is a hot issue for voters that politicians on Capitol Hill are pushing in advance of the 2000 elections.

Promises vs. realities

Each side is trying to woo older voters by promising they won't be the party to rob the Social Security trust fund, implying the fund may run dry for the massive pension program if the other side gets elected.

But all those surplus payroll taxes that have mounted up over the years have regularly been loaned by Social Security to the Treasury to cover the government's debts.

And should there come a time when the Social Security Administration finds itself a bit short, it will be up to the government to "find" the needed funds -- either by raising taxes or by running up the red ink again.

Besides, while both sides were declaring victory over protecting Social Security, Congressional Budget Office analyses showed lawmakers are well on their way to spending those funds through their spending bills.

"We're still troubled by the CBO analysis that we're using Social Security trust funds, at least $19 billion," admitted Daschle.

Clinton sets new budget deadline

The claim of protecting Social Security funds can also be used by lawmakers to defend themselves from critics should parts of the government be forced to shut down because, once again, President Clinton and Congress are in budget overtime after missing the October 1 deadline.

Even after Tuesday's summit, significant differences remained.

Republicans said Clinton dropped his idea of raising cigarette taxes by 55 cents a pack. But Democrats said a smaller increase is still possible.

GOP lawmakers are wary of any grand budget compromises with the White House and they stress they will pass government spending bills one at a time.

But the president wants to add up all the numbers before he signs the measures and he set a one-week deadline for resolving all the major issues.

"I think there's a sense of urgency about getting this done and getting it done by next Tuesday when the president would have to start vetoing bills if it's not done," said Rep. Richard Gephardt (D-Missouri) after the bipartisan meeting at the White House.

Clinton told lawmakers he would sign one appropriations bill -- covering veterans, housing and environmental programs -- on Wednesday. But he has either vetoed or threatened to veto five other bills, and White House officials said that to increase his leverage, he might veto the $268 billion defense bill next Tuesday if the talks on the other measures are not going well.

The two sides have to agree on 13 appropriations measures in all.

Clinton's proposals

Clinton brought his own expensive wish list to the budget talks:

$1 billion to hire community police officers

$1.4 billion to hire new teachers and reduce class sizes

$600 million for federal park land purchases

$2 billion more than Republicans are offering for overseas spending -- $800 million of that earmarked for the Middle East peace process

Republican lawmakers said the president can't pay for his expensive proposals without dipping into the Social Security surplus.

But the White House said Republicans are pointing the finger of blame in the wrong direction.

"The bills that they have written, under no duress from anyone, would spend the Social Security surplus," said White House spokesman Joe Lockhart.

A new temporary measure will keep the government running through the end of October -- buying time to search for a deal.

Those negotiations will test the goodwill both sides voiced after the initial White House meeting that left everyone talking of compromise -- but still far apart on how to reach that middle ground.

Correspondent John King, The Associated Press and Reuters contributed to this report.

RELATED STORIES

Congress averts shutdown while budget battle rages (9-28-99) Clinton touts higher-than-expected $115 billion budget surplus (9-27-99) Clinton vetoes tax bill; Republicans vow to press for cut (9-23-99) GOP revs up tax cut campaign (8-17-99) Republicans plan to avoid another government shutdown (8-9-99)

RELATED SITES
U.S. House of Representatives Web site U.S. Senate Web site

QUICKVOTE
Who will appear victorious when the budget dispute is resolved? Congressional Republicans President Clinton and the Democrats The American people View Results