Ehrlich on Washington column, October 19, 1998

NEWS FROM Robert L. Ehrlich, Jr. Second Congressional District of Maryland 1407 York Road, Suite 304 Lutherville, Maryland 2 1 093 315 Cannon House Office Building Washington, D.C. 20515 EHRLICH ON WASHINGTON Week of October 19, 1998 By Congressman Robert L. Ehrlich, Jr. BUDGETING IN AN ERA OF SURPLUSES The concept of “surplus politics” is ushering in a sea change in our federal budget process. In 1974, the United States had a $6 billion budget deficit. That same year, Congress and the President enacted the Congressional Budget Act of 1974 to establish a timetable for the completion of the annual budget process. When we closed the books on the 1998 fiscal year, the federal budget showed a $70 billion surplus, the first surplus since 1969. I am finding now that surpluses pose as many challenges as did deficits. In 1994, the new Republican majority in Congress looked back at an era of large, peace¬ time deficits and runaway spending. We achieved a balanced budget and provided additional tax relief by imposing strict spending limits on our spending for items other than Social Security and interest payments. This earlier-than-expected surplus was one of the benefits of the Balanced Budget Agreement of 1997. At the beginning of this year, I warned readers, however, that a liberal-leaning Democratic President and a conservative-leaning Republican-led Congress would have great differences over how to best use the surplus. My Republican colleagues and I strongly believe the surplus should be dedicated to paying down the national debt, saving Social Security, and providing broad-based middle class tax relief. These priorities clashed with the President’s own budget. He asked Congress to create