Possible Cabinet Position for Hillary?

WASHINGTON --- Nearly doubling the size of the budget battlefield this election year, the Congressional Budget Office said Tuesday that it now expects federal surpluses over the next decade to total as much as $1.9 trillion.

With the soaring economy pouring billions in unforeseen revenue into federal coffers, President Clinton said he will propose paying off the government's entire $3.6 trillion federally held debt by 2013. That would be two years earlier than he previously has aimed for and puts him a step ahead of House Republicans, who are working on a plan to pay off that portion of the debt by 2015.

"We got here by making hard choices and sticking to a strategy that works, that builds opportunity and reinforces responsibility," Clinton said at the White House.

In a written statement, House Speaker Dennis Hastert, R-Ill., said, "We have this surplus because of the hard work of the American people, because of the healthy American economy and because of prudent fiscal policies championed by the Republican Congress."

The ballooning surplus estimates by CBO, Congress' nonpartisan budget analyst, mean there will be even more money at stake this election year as both parties battle over how much of it to use for possible tax cuts, spending increases and debt reduction.

Many analysts expect most of the surplus for fiscal 2001 --- which begins next Oct. 1 --- to go for debt reduction. CBO projected next year's surplus at up to $69 billion, plus $166 billion in Social Security surpluses.

Clinton provided no details about how he would eliminate the publicly held debt, which is money the government owes investors who hold Treasury bonds, bills and notes. The remaining $2 trillion of the $5.7 trillion national debt is money held by Social Security and other trust funds.

Clinton said his plan, to be included in the fiscal 2001 budget he releases Feb. 7, will devote interest savings to Social Security, extending its solvency beyond 2050. It also will seek to ensure Medicare's survival until at least 2025, he said.

But GOP lawmakers scoffed at his plan, noting he already has revealed dozens of budget proposals that will cost tens of billions of dollars.

Congressional Democrats said CBO's $1.9 trillion, 10-year surplus estimates were unrealistic because they assume spending will be far lower than is likely to actually occur.