Capital hill looking to spend budget surplus [CNN]

[Jim Choate]

Forwarded message:

> Capitol Hill Looks Ahead To Budget Surpluses
> 
>   Lawmakers are already talking about what to do with dollars that haven't
>   materialized yet
>   
>     [INLINE]
>    
>    WASHINGTON (AllPolitics, Oct. 24) -- With the economy cooking along
>    and government analysts forecasting budget surpluses, lawmakers on
>    Capitol Hill have begun debating what to do with the windfall: cut
>    taxes, pay down the nation's $5.4 trillion national debt, or boost
>    spending.
>    
>    House Speaker Newt Gingrich has a proposal that may please everyone:
>    Do some of each.
>    
>    Gingrich, who appeared before the House Budget Committee on Thursday,
>    said he favors a budget policy that produces surpluses and tax cuts
>    every year, even during the next recession.
>    
>     "We should sustain ... the commitment to get to a balancedbudget and
>    to stay balanced every year," Gingrich said. He addedlater, "It ought
>    to be a surplus large enough that a reasonablerecession won't stop
>    it."
>    
>    Gingrich also favors targeted spending increases, for transportation,
>    science and defense. gingrich
>    
>    Of course, no surpluses have actually materialized yet, so it may be a
>    case of premature giddiness. This year, officials expect a fiscal 1997
>    year-end deficit of $20 billion, the smallest since 1974.
>    
>    White House budget chief Franklin Raines has urged a cautious
>    approach, with no new spending until projected surpluses actually
>    become real. Gingrich, in contrast, said he is willing to put new
>    dollars into defense and science earlier than that, if the economy
>    produces enough tax revenue to accelerate the schedule in the
>    balanced-budget agreement for reducing the deficit.
>    
>    Rep. John Kasich, the Ohio Republican who heads the House Budget
>    Committee, also has said lawmakers should hold off on any new tax cuts
>    or new spending until the budget is actually balanced.
>    
>    In a related development, President Bill Clinton has signed
>    legislation to keep the federal government running until Nov. 7, while
>    Congress finishes work on remaining spending bills for the 1998 fiscal
>    year.