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FOIA Number: 2006-0467-F
FOIA
MARKER
This is not a textual record. This is used as an
administrative marker by the William J. Clinton
Presidential Library Staff.
Collection/Record Group:
Clinton Presidential Records
Subgroup/Office of Origin:
Speechwriting
Series/Staff Member:
Jeff Shesol
Subseries:
OA/ID Number:
19944
FolderID:
Folder Title:
FY 2000 Budget 2/1/99
Stack:
Row:
Section:
Shelf:
Position:
S
91
6
9
2
Withdrawal/Redaction Sheet
Clinton Library
DOCUMENT NO.
SUBJECT/TITLE
DATE
RESTRICTION
AND TYPE
001. list
Personal. [partial] (1 page)
02/01/1999
P6/b(6)
COLLECTION:
Clinton Presidential Records
Speechwriting
Jeff Shesol
OA/Box Number: 19944
FOLDER TITLE:
FY 2000 Budget 2/1/99
2006-0467-F
vz211
RESTRICTION CODES
Presidential Records Act - |44 U.S.C. 2204(a)]
Frecdom of Information Act - |5 U.S.C. 552(b)]
P1 National Security Classified Information [(a)(1) of the PRA]
b(1) National security classified information |(b)(1) of the FOIA]
P2 Relating to the appointment to Federal office [(a)(2) of the PRA]
b(2) Release would disclose internal personnel rules and practices of
P3 Release would violate a Federal statute [(a)(3) of the PRAJ
an agency [(b)(2) of the FOIA]
P4 Release would disclose trade secrets or confidential commercial or
b(3) Release would violate a Federal statute |(b)(3) of the FOIA]
financial information [(a)(4) of the PRA]
b(4) Release would disclose trade secrets or confidential or financial
P5 Release would disclose confidential advice between the President
information [(b)(4) of the FOIA]
and his advisors, or between such advisors |a)(5) of the PRA]
b(6) Release would constitute a clearly unwarranted invasion of
P6 Release would constitute a clearly unwarranted invasion of
personal privacy |(b)(6) of the FOIA]
personal privacy [(a)(6) of the PRA]
b(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed
b(8) Release would disclose information concerning the regulation of
of gift.
financial institutions |(b)(8) of the FOIA]
PRM. Personal record misfile defined in accordance with 44 U.S.C.
b(9) Release would disclose geological or geophysical information
2201(3).
concerning wells [(b)(9) of the FOIA]
RR. Document will be reviewed upon request.
REVISED
Revised Final 02/01/99 8:30am
'99 FEB 1 AM9:18
Jeff Shesol
PRESIDENT WILLIAM J. CLINTON
REMARKS ON SUBMISSION OF
THE 2000 BUDGET
THE WHITE HOUSE
February 1, 1999
2-1-99
Acknowledgments: VP; Secs. Albright, Cuomo,
Glickman, Richardson, Riley, Rubin, Shalala, Slater,
^
BABBITT
West; Dep. Treasury Sec. Larry Summers; Soc. Sec.
Commissioner Ken Apfel; SBA Dir. Aida Alvarez; GSA
Adm. David Barram; OPM Dir. Janice LaChance; FEMA
Dir. James Lee Witt; John Podesta; Gene Sperling; Jack
Lew; Sylvia Mathews; Larry Stein; Janet Yellen; and all
the members of Congress who are with us today
Today I am submitting my budget for the year 2000 -
- the first budget of the 21st Century. It is abudget that
charts a prudent, progressive/path for America's future.
#
that
is a balanced budget; it is fiseally responsible; and it
x our fature.
makes vital investments in the people of our nation.
1
2-1-99
cite to
Seven years ago, when I ran for President, I said that
we had to put our fiscal house in order. More and more
Americans were coming to agree with that -- with the idea
that our government had to return to living within its
means. But, as the Vice President just told us, few were
confident it would ever do so again. Irresponsible
policies in Washington had quadrupled the national debt
w/
over the previous 12 years, The budget deficit was $290
That
,low
billion in 1992 alone.1 Interest rates were high, growth
a
wable
was low. And the government, it seemed, was failing to
meet its most basic obligations, or to bedour viuage to 21stac
When I took office we charted a new, fiscally
responsible course for a new economy. fiscal befloce
Succes IS
more trade
2
2-1-99
And
Today, following that path, Americans have created
the longest peacetime expansion in our history -- with
nearly 18 million new jobs, wages rising at twice the rate
of inflation, the highest home ownership in history, the
smallest welfare rolls in history, and the lowest peacetime
unemployment since 1957.
Last year, for the first time in three decades, we
turned red ink into black: our surplus of nearly $70 billion
is the largest in history. And it is projected to be only the
first of many: as I said in my State of the Union Address,
America is on course for budget surpluses for the next
quarter century. And our estimates, optimistic as they
sound, are even more conservative than those of the
Congress.
3
2-1-99
Indeed, America's economic house is in order, and it
stands strong. If we manage the surplus right, we can
uphold our responsibility to future generations. We can
swring
do it by dedicating the lion's share of the surplus toj Social
Security,\ Medicare, and paying down the debt. We can --
and therefore we must -- do it now.
Our fiscal discipline has given us this rare and hard-
won opportunity. We can see now that balancing the
budget -- an idea that once might have seemed almost
abstract or academic -- has made a real difference in
people's lives. Fiscal discipline has transformed the
vicious cycle of budget deficits and high interest rates into
a virtuous cycle of budget surpluses and low interest rates.
treference
When interest rates fall, more Americans can buy homes,
by cart
pay mortgages, retire student loans, start new businesses.
4
2-1-99
And when deficits disappear, capital -- more than $1
trillion so far -- is liberated to create wealth, create jobs,
and create opportunity at every level of our economy.
Simply put, the less money we tie up in publicly held
debt, the more money we free up for private sector
investment. In an age of worldwide capital markets, this
is the way a nation prospers -- by saving and investing,
not by running big deficits. That is one reason why this
year's budget is even smaller than last year's as a share of
the economy.
The budget I submit today keeps America on that
prudent path toward a more prosperous future. It has
taken hard work and tough choices to get this far. It will
take more of the same to move ahead.
5
2-1-99
But with our economy expanding and our budget surplus
growing, we can walk that path with confidence rising.
,\ We must seize this opportunity to meet America's long-
21ste
term challenges, to fulfill our obligations tojAmericans
young and old.
Recently, in my State of the Union Address, I spoke
about the aging of America. The Baby Boom will soon
become the Senior Boom and This first budget of the next
century is our first step toward meeting that challenge. I
have proposed committing 62 percent of the surplus for
15 years to save Social Security -- and investing a small
portion in the private sector, just as any private or state
pension would, to earn higher returns. This will keep
Social Security sound for 55 years.
6
2-199
And if we work together and make tough choices, we can
save Social Security for the next 75 years, lift cause Wast
treatmen povertyawing alriguromen
My balanced budget also takes steps to strengthen
Medicare. Already, we have extended the life of the
Medicare trust fund by 10 years -- but we can save it for
at least another decade. I have proposed that we use one
out of every six dollars in the surplus for the next 15 years
to guarantee the soundness of Medicare. This budget
makes a down payment toward that goal. It also commits
scort
12 percent of the surplus/for tax relief to establish
universal savings accounts -- U.S.A. Accounts -- that will
help Americans to invest, to save for retirement, and to
share more fully in our nation's wealth.
7
This is the economically sound and fiscally
responsible course for the new century. If we do this, if
we lock in the surplus to save Social Security and
strengthen Medicare, we can fulfill our obligation to older
Americans.
But the reform of Social Security and Medicare is
equally important to younger Americans. It achieves
something for our children that, at first glance, seems far
removed from their lives, but is in fact essential to their
future -- it pays down the debt.
8
[Point to chart] If we set aside 62 percent of the
surplus for Social Security and 15 percent for Medicare,
over the next 15 years, we will cut the debt by two thirds.
As a share of our economy, we will cut it by 84 percent
achieving the lowest level of publicly held debt since
America entered the First World War, in 1917.
Let me explain why this is so important to our
children. We have already made deficit spending a thing
of the past, but a big debt remains -- an unfortunate legacy
of living beyond our means. America is still paying for
the irresponsibility of those 12 years -- for all those past
budget deficits. That's what the debt is -- it's the sum
total of all those deficits, accruing interest, waiting to be
paid down. Today, as a share of the economy, the debt is
44 percent.
9
2-1-99
Now, that is down considerably, as you can see, since
1993; but it is still too high. As I said earlier, it consumes
capital that would be better invested by the private sector.
troublinabod -
The question at hand is really very simple. Will we
squander our surplus in the short term? Or will we use it
to pay down the debt for the long term, and lift the
crushing burden of debt from our children's shoulders?
Because the fact of the matter is equally simple. Either
we are going to pay it down, or they are. I think it is
responsible -- and right -- that we do it ourselves.
Beginning now. My plan will pay down the massive debt
accumulated during the 12 years before I took office.
And that's the right thing to do for our children.
10
2-1-99
There is more we must do for our children. My
budget also makes historic investments in our younger
Americans -- from quality teaching to school
classis and
modernization, from{the afterschool programs that keep
kids safe to the summer school programs that keep kids
learning, \ safe.
But by saving Social Security
strengthening
Medicare. and paying down the debt, my budget meets
the critical first tests of the 21st Century. And these are
the same challenges that Americans, over the coming
months and years, should meet together -- across lines of
party and generation. Because none of us wants the
choices we made yesterday -- or defer today -- to burden
our children tomorrow.
11
Instead, the decisions we make here and now should
empower our children, should give them the strength and
freedom to make their time even better than our own.
Thank you.
12
Withdrawal/Redaction Marker
Clinton Library
DOCUMENT NO.
SUBJECT/TITLE
DATE
RESTRICTION
AND TYPE
001. list
Personal. [partial] (1 page)
02/01/1999
P6/b(6)
COLLECTION:
Clinton Presidential Records
Speechwriting
Jeff Shesol
OA/Box Number: 19944
FOLDER TITLE:
FY 2000 Budget 2/1/99
2006-0467-F
vz211
RESTRICTION CODES
Presidential Records Act - [44 U.S.C. 2204(a)]
Freedom of Information Act - [5 U.S.C. 552(b)]
P1 National Security Classified Information [(a)(1) of the PRA]
b(1) National security classified information [(b)(1) of the FOIA]
P2 Relating to the appointment to Federal office |(a)(2) of the PRA]
b(2) Release would disclose internal personnel rules and practices of
P3 Release would violate a Federal statute [(a)(3) of the PRA]
an agency [(b)(2) of the FOIA]
P4 Release would disclose trade secrets or confidential commercial or
b(3) Release would violate a Federal statute [(b)(3) of the FOIA]
financial information [(a)(4) of the PRAJ
b(4) Release would disclose trade secrets or confidential or financial
P5 Release would disclose confidential advice between the President
information ((b)(4) of the FOIA]
and his advisors, or between such advisors [a)(5) of the PRA]
b(6) Release would constitute a clearly unwarranted invasion of
P6 Release would constitute a clearly unwarranted invasion of
personal privacy |(b)(6) of the FOIA]
personal privacy [(a)(6) of the PRA]
b(7) Release would disclose information compiled for law enforcement
purposes |(b)(7) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed
b(8) Release would disclose information concerning the regulation of
of gift.
financial institutions [(b)(8) of the FOIA]
PRM. Personal record misfile defined in accordance with 44 U.S.C.
b(9) Release would disclose geological or geophysical information
2201(3).
concerning wells [(b)(9) of the FOIA]
RR. Document will be reviewed upon request.
EVENT:
Budget Submission Event
DATE:
Monday, February 1, 1999
TIME:
10:05am-11:00am
LOCATION:
The East Room
MEMBERS CONFIRMED TO ATTEND(32):
Sen. Chuck Robb (D-VA)
Rep. Xavier Becerra (D-CA)
Rep. Ken Bentsen (D-TX)
Rep. Shelley Berkley (D-NV)
Rep. Earl Blumenauer (D-OR)
Rep. Donna Christian-Christensen (D-VI)
Rep. Bob Clement (D-TN)
Rap Calvin Dooley (D OA)
Rep. Em Fahreona (D AS)
Rep. Sam Farr (D-CA)
Rep. Martin Frost (D-TX)
Rep. Burt Cordon @ (D TN)
Rep. Rubin Hinojosa (D-TX)
Rep. Joseph Hoeffel (D-PA)
Rep. Steny Hoyer (D-MD)
Rep. Eddie Bernice Johnson (D-TX)
Rep. Stephanie Tubbs Jones (D-OH)
Rep. Paul Kanjorski (D-PA)
Rep. John Larson (D-CT)
Rep. Sandy Levin (D-MI)
Rep. Jim Moran (D-VA)
Rep. Grace Napolitano (D-CA)
Rep. David Obey (D-WI)
Rep. Solomon Oritz (D-TX)
Rep. Nancy Polosi (b CA)
Rep. Tim Roemer (D-IN)
Rep. Lucille Roybal-Allard (D-CA)
Rep. Lorotta Suncher (D SA)
Rep. John Spratt (D-SC)
Rep. Pete Stark (D-CA)
Dep. Ellen Tauselver (D C.A)
Rep. Jim Turner (D-TX)
Rep. Robert underward (D.GU) JAY INSLEE (D)
CONGRESSIONAL GUESTS:
Nathan Winslow
[001]
P6/(b)(6)
Investing The Surplus For Our Future:
Cutting the Debt By More Than Two-Thirds
Ratio of Debt Held by Public to GDP
(End of Fiscal Year)
80
Without Clinton-Gore
Deficit Reduction
60
Reagan-Bush
Years
40
Clinton-Gore
Years
Clinton-Gore
Proposal
20
0
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014
SUNTUM M @ A1
02/01/99 11:43:00 AM
Record Type: Record
To:
See the distribution list at the bottom of this message
CC:
Subject: 1999-2-1 remarks of the President on budget submission
THE WHITE HOUSE
Office of the Press Secretary
For Immediate Release
February 1, 1999
REMARKS BY THE PRESIDENT
ON SUBMISSION OF THE FY 2000 BUDGET
The East Room
10:50 A.M. EST
THE PRESIDENT: Thank you very much. Mr. Podesta, Mr.
Vice President, members of the Cabinet, the economic team, members of
the Congress. I would like to, first of all, thank the Vice
President for his invaluable partnership these last six years, and
for the remarkable address he gave in Davos, Switzerland, just a
couple of days ago on the global economy and our responsibilities
there. I will say more about that in a moment. But all of you know
how much our long-term prosperity is tied to that.
I'd like to thank the large number of members of
Congress who are here. There are so many, we haven't introduced them
all, but in view of the Vice President's remarks, I would like to
point out that there is one person here in whom I take particular
satisfaction - Congressman Jay Inslee from Washington is one of the
people who lost his seat in 1994, in no small measure because he
voted for the economic plan of 1993. And in 1998, the voters in
Washington returned him to the House of Representatives --
(applause.) Thank you.
I'd also like to point out that after the first couple
of years, when we passed our economic plan in a highly partisan
manner, we achieved a bipartisan consensus on a balanced budget which
enabled us to continue our progress. And I think I speak for every
member of my party in this room -- we would like to return to that to
pass this budget and keep going in the right direction.
This is our budget for the year 2000. It is the first
budget of the 21st century. It charts a progressive but prudent path
to our future; a balanced budget that makes vital investments.
Seven years ago when I ran for President I committed to
put our fiscal house in order. Irresponsible policies had quadrupled
our national debt in the 12 previous years. The deficit was $290
billion in 1992 alone. That brought us high interest rates, low
growth, and a government unable to meet it's most basic. obligations
or to build our bridge to the 21st century.
When I took office we charted a new course, as the Vice
President said: fiscal responsibility, smart investments, more
trade. Today, following that path, Americans have created the
longest peacetime expansion in our history -- nearly 18 million new
jobs, wages rising at twice the rate of inflation, the highest home
ownership in history, the lowest welfare rolls, the lowest peacetime
unemployment since 1957.
Last year, for the first time in three decades, as all
of you know, we had turned red ink to black with a $70 billion
surplus. It is projected to be only the first of many. As I
said in the State of the Union, America is on course for surpluses
over the next quarter century. And our estimates, optimistic as they
sound, are more conservative than those of Congress.
Our economic house is in order and strong. If we manage
the surplus right we can uphold our responsibility to future
generations. We can do so by dedicating the lion's share of the
surplus to saving Social Security and Medicare and paying down the
national debt. We can, and because we can, we must do it now.
We have a rare opportunity that comes along once in a
blue moon to any group of Americans. We see now that balancing the
budget, an idea that once seemed abstract, arcane or impossible, has
made a real difference in the lives of our citizens. Fiscal
discipline has transformed the vicious cycle of budget deficits and
high interest rates into a virtuous cycle of budget surpluses and low
interest rates.
When interest rates fall, more Americans can buy and
refinance homes, as over 20 million of them have. They can buy cars,
retire student loans, start new businesses. When deficits disappear,
capital, more than $1 trillion so far, is liberated to create wealth
and jobs and opportunity at every level all over America.
The less money we tie up in publicly held debt, the more
money we free up for private sector investment. In an age of
worldwide capital markets, this is the way a nation prospers
-- by saving and investing, not by running big deficits. This is one
reason why this year's budget, as a percentage of our economy, is
even smaller than last year's.
Now, the budget I present today keeps us on this path
-- a progressive, but prudent path to a positive future. It has
taken hard work and tough choices. I want to thank the members of
the Cabinet for the whole array of difficult, long meetings we had.
But with our economy expanding and our surplus rising, we have
confidence that we can now look to the long-term challenges of our
country to fulfill our obligations to 21st century Americans, both
young and old.
The baby boom, as we all know, will soon become a senior
boom. The first budget of the next century is our first big step
toward meeting that challenge. I have proposed committing 62 percent
of the surplus for the next 15 years to Social Security, and
investing a small portion of that in the private sector, just as any
private or state government pension would do, so that we can earn
higher returns and keep Social Security sound for 55 years.
If we work together across partisan lines and make some
tough, but fully achievable choices, we can also save Social Security
for the next 75 years, lift the earnings limitation on what seniors
on Social Security can earn, and do something to alleviate poverty
among elderly women.
Our balanced budget also takes steps to strengthen
Medicare. Already we have extended the life of the trust fund by 10
years. We can save it for another decade if we use one out of every
six dollars of the surplus for the next 15 years to guarantee the
soundness of Medicare. This budget makes a down payment on that
goal. It also commits 12 percent of the surplus -- about $500
billion, more if the Congress turns out to be right -- for tax relief
to establish Universal Savings Accounts -- USA accounts to help
Americans to invest, to save for retirement, to
share more fully in our nation's wealth.
This is the economically sound and fiscally prudent
course for our country. If we do it -- if we lock in the surplus to
save Social Security and Medicare -- we can fulfill our obligations
to older Americans.
But as I said the State of the Union -- and I want to
emphasize this in particular today -- reform of Social Security and
Medicare is equally important to younger Americans for two reasons:
First of all, if we take care of this, then when the baby boom
retires, our children will have their incomes to invest in their
lives and the lives of our grandchildren. Secondly, although this,
at first glance, may seem far removed from our lives, it is essential
to their future -- because if we do this, we will pay down the
national debt.
Now, look at this chart. If we set aside 62 percent of
the surplus for 15 years for Social Security, and we set aside 15
percent for Medicare, we will cut the debt by two-thirds. As a share
of our economy, we will cut it by 84 percent. Look, when I took
office it was about 50 percent; we've got it down now to about 44
percent. In 15 years, we will have it down to seven percent, a third
of what it was in 1981 before we started exploding the debt with the
deficits. That will give us the lowest share of publicly held debt
since 1917, before the United States entered World War I.
(Applause.)
Why is this important? Well, we've already made deficit
spending a thing of the past, but this huge debt remains. We
quadrupled the debt in four years. When I took office we were
looking at a future where we would be spending 20-25 cents on the tax
dollar just to pay interest on the debt -- not to pay it down, just
to pay interest. We've now got it down to a little over 13 cents on
the dollar today. And we can take it, as you see, way, way down. If
we take it down to seven percent, our successors, 15 years from now,
will only have to allocate 2 cents of every dollar the American
people pay in taxes to pay interest on the debt -- 2 cents.
(Applause.)
Now, this is especially important now, with all this
financial turmoil around the world. We're doing everything we can --
and again I want to thank the Vice President, Secretary Rubin, Deputy
Secretary Summers; they went to Switzerland, we've been working hard
for a year to try to stabilize the global economy, get growth going
again. But we know that if things go haywire in other parts of the
world it can have an adverse effect here. This is an enormous
insurance policy if we pay down the debt; that no matter what happens
elsewhere, we'll be able to keep interest rates low, we'll be able to
keep investing.
And I want to point out, if I could put in one plug for
another part of our budget, it's also why our whole "invest in
America strategy," to go into the poorest neighborhoods in our
cities, and Appalachia, and the Mississippi Delta, and South Texas,
and in rural areas, including Native American communities -- why
that's so important, because these underinvested areas of American
have to be seen as new markets -- to go along with keeping the
interest rates down, and freeing up the money. If the waters are
troubled overseas, we have to be able to generate more growth here as
well.
So I say to all of you, this is something we're doing
for our kids. Yes, we're saving Social Security and Medicare; and,
yes, that will prepare for the retirement of the baby boomers; and,
yes, it will save money for our children and our grandchildren; but
it will also guarantee them an economy of continuing, enduring
stability, and a hedge against the storms that may happen beyond our
borders.
So that's why this is so important. This is not just
about saving Social Security and Medicare, although that is terribly
important. It is also about knowing that, when we leave this century
and enter the next, we have given our children 20 years or so in
which they can worry about the challenges of the future, and they can
meet their challenges of their times -- things we may not even be
able to foresee -- unburdened by the unfinished business of the 20th
century; unshackled by our profligacy in the latter part of this
century.
It is profoundly important, therefore, that all across
America people see this budget not just as a budget that saves Social
Security and Medicare, but the budget that ensures for young
Americans the same chance that those of us in the baby boom
generation enjoyed in the years after World War II; the same chance
to meet the challenges that they will have to face that we don't know
yet.
Now, it also invests, as I said. It invests in new
markets in America; it invests in the education of our young people;
it makes historic investments from quality education and teaching to
school modernization, from smaller classes to summer school and
after-school programs.
But by saving Social Security and strengthening Medicare
and paying down the debt, it meets the critical first test of our
obligation to the new century. These are the same challenges that
Americans over the coming months and years will have to meet
together. It is what we must do in Washington this year.
All over America, most of what happens to Americans are
being done by people that don't have anything to do with the
government. They're making their decisions for their families, for
their businesses, for their education, for their future.
But we can prevent them from making the most of their
lives if we do not lift these burdens from them. And if we do, we
will dramatically increase the number of Americans that will be able
to live out their dreams and, therefore, keep the American Dream
going forever.
The decisions we make here and now are going to have a
huge impact for a long, long time. We have a special obligation
because our predecessors for the last several years never had this
opportunity. They never had the option to do what we can now do. It
is now here before us, thanks to the hard work of the people of this
country, and we had better fulfill our duty. I believe we will.
Thank you very much. (Applause.)
END
11:08 A.M. EST
Revised Final 02/01/99 8:30am
Jeff Shesol
PRESIDENT WILLIAM J. CLINTON
REMARKS ON SUBMISSION OF
THE 2000 BUDGET
THE WHITE HOUSE
February 1, 1999
Acknowledgments: VP; Secs. Albright, Cuomo,
Glickman, Richardson, Riley, Rubin, Shalala, Slater,
West; Dep. Treasury Sec. Larry Summers; Soc. Sec.
Commissioner Ken Apfel; SBA Dir. Aida Alvarez; GSA
Adm. David Barram; OPM Dir. Janice LaChance; FEMA
Dir. James Lee Witt; John Podesta; Gene Sperling; Jack
Lew; Sylvia Mathews; Larry Stein; Janet Yellen; and all
the members of Congress who are with us today
Today I am submitting my budget for the year 2000 -
- the first budget of the 21st Century. It is a budget that
charts a prudent, progressive path for America's future. It
is a balanced budget; it is fiscally responsible; and it
makes vital investments in the people of our nation.
1
Seven years ago, when I ran for President, I said that
we had to put our fiscal house in order. More and more
Americans were coming to agree with that -- with the idea
that our government had to return to living within its
means. But, as the Vice President just told us, few were
confident it would ever do so again. Irresponsible
policies in Washington had quadrupled the national debt
over the previous 12 years. The budget deficit was $290
billion in 1992 alone. Interest rates were high, growth
was low. And the government, it seemed, was failing to
meet its most basic obligations.
When I took office we charted a new, fiscally
responsible course for a new economy.
2
And today, following that path, Americans have created
the longest peacetime expansion in our history -- with
nearly 18 million new jobs, wages rising at twice the rate
of inflation, the highest home ownership in history, the
smallest welfare rolls in history, and the lowest peacetime
unemployment since 1957.
Last year, for the first time in three decades, we
turned red ink into black: our surplus of nearly $70 billion
is the largest in history. And it is projected to be only the
first of many: as I said in my State of the Union Address,
America is on course for budget surpluses for the next
quarter century. And our estimates, optimistic as they
sound, are even more conservative than those of the
Congress.
3
Indeed, America's economic house is in order, and it
stands strong. If we manage the surplus right, we can
uphold our responsibility to future generations. We can
do it by dedicating the lion's share of the surplus to Social
Security, Medicare, and paying down the debt. We can --
and therefore we must -- do it now.
Our fiscal discipline has given us this rare and hard-
won opportunity. We can see now that balancing the
budget -- an idea that once might have seemed almost
abstract or academic -- has made a real difference in
people's lives. Fiscal discipline has transformed the
vicious cycle of budget deficits and high interest rates into
a virtuous cycle of budget surpluses and low interest rates.
When interest rates fall, more Americans can buy homes,
pay mortgages, retire student loans, start new businesses.
4
And when deficits disappear, capital -- more than $1
trillion so far -- is liberated to create wealth, create jobs,
and create opportunity at every level of our economy.
Simply put, the less money we tie up in publicly held
debt, the more money we free up for private sector
investment. In an age of worldwide capital markets, this
is the way a nation prospers -- by saving and investing,
not by running big deficits. That is one reason why this
year's budget is even smaller than last year's as a share of
the economy.
The budget I submit today keeps America on that
prudent path toward a more prosperous future. It has
taken hard work and tough choices to get this far. It will
take more of the same to move ahead.
5
But with our economy expanding and our budget surplus
growing, we can walk that path with confidence rising.
We must seize this opportunity to meet America's long-
term challenges, to fulfill our obligations to Americans
young and old.
Recently, in my State of the Union Address, I spoke
about the aging of America. The Baby Boom will soon
become the Senior Boom; and this first budget of the next
century is our first step toward meeting that challenge. I
have proposed committing 62 percent of the surplus for
15 years to save Social Security -- and investing a small
portion in the private sector, just as any private or state
pension would, to earn higher returns. This will keep
Social Security sound for 55 years.
6
And if we work together and make tough choices, we can
save Social Security for the next 75 years.
My balanced budget also takes steps to strengthen
Medicare. Already, we have extended the life of the
Medicare trust fund by 10 years -- but we can save it for
at least another decade. I have proposed that we use one
out of every six dollars in the surplus for the next 15 years
to guarantee the soundness of Medicare. This budget
makes a down payment toward that goal. It also commits
12 percent of the surplus for tax relief to establish
universal savings accounts -- U.S.A. Accounts -- that will
help Americans to invest, to save for retirement, and to
share more fully in our nation's wealth.
7
This is the economically sound and fiscally
responsible course for the new century. If we do this, if
we lock in the surplus to save Social Security and
strengthen Medicare, we can fulfill our obligation to older
Americans.
But the reform of Social Security and Medicare is
equally important to younger Americans. It achieves
something for our children that, at first glance, seems far
removed from their lives, but is in fact essential to their
future -- it pays down the debt.
8
[Point to chart] If we set aside 62 percent of the
surplus for Social Security and 15 percent for Medicare,
over the next 15 years, we will cut the debt by two thirds.
As a share of our economy, we will cut it by 84 percent --
achieving the lowest level of publicly held debt since
America entered the First World War, in 1917.
Let me explain why this is so important to our
children. We have already made deficit spending a thing
of the past, but a big debt remains -- an unfortunate legacy
of living beyond our means. America is still paying for
the irresponsibility of those 12 years -- for all those past
budget deficits. That's what the debt is -- it's the sum
total of all those deficits, accruing interest, waiting to be
paid down. Today, as a share of the economy, the debt is
44 percent.
9
Now, that is down considerably, as you can see, since
1993; but it is still too high. As I said earlier, it consumes
capital that would be better invested by the private sector.
The question at hand is really very simple. Will we
squander our surplus in the short term? Or will we use it
to pay down the debt for the long term, and lift the
crushing burden of debt from our children's shoulders?
Because the fact of the matter is equally simple. Either
we are going to pay it down, or they are. I think it is
responsible -- and right -- that we do it ourselves.
Beginning now. My plan will pay down the massive debt
accumulated during the 12 years before I took office.
And that's the right thing to do for our children.
10
There is more we must do for our children. My
budget also makes historic investments in our younger
Americans -- from quality teaching to school
modernization, from the afterschool programs that keep
kids safe to the summer school programs that keep kids
learning.
But by saving Social Security
strengthening
Medicare.
and paying down the debt, my budget meets
the critical first tests of the 21st Century. And these are
the same challenges that Americans, over the coming
months and years, should meet together -- across lines of
party and generation. Because none of us wants the
choices we made yesterday -- or defer today -- to burden
our children tomorrow.
11
Instead, the decisions we make here and now should
empower our children, should give them the strength and
freedom to make their time even better than our own.
Thank you.
12
Revised Final 02/01/99 8:30am
Jeff Shesol
PRESIDENT WILLIAM J. CLINTON
REMARKS ON SUBMISSION OF THE 2000 BUDGET
THE WHITE HOUSE
February 1, 1999
Acknowledgments: VP; Secs. Albright, Cuomo, Glickman, Richardson, Riley, Rubin,
Shalala, Slater, West; Dep. Treasury Sec. Larry Summers; Soc. Sec. Commissioner Ken Apfel;
SBA Dir. Aida Alvarez; GSA Adm. Barram; OPM Dir. Janice LaChance; FEMA Dir. James Lee
Witt; John Podesta; Gene Sperling; Jack Lew; Sylvia Mathews; Larry Stein; Janet Yellen; and all
the members of Congress who are with us today
Today I am submitting my budget for the year 2000 -- the first budget of the 21st
Century. It is a budget that charts a prudent, progressive path for America's future. It is a
balanced budget; it is fiscally responsible; and it makes vital investments in the people of our
nation.
Seven years ago, when I ran for President, I said that we had to put our fiscal house in
order. More and more Americans were coming to agree with that -- with the idea that our
government had to return to living within its means. But, as the Vice President just told us, few
were confident it would ever do so again. Irresponsible policies in Washington had quadrupled
the national debt over the previous 12 years. The budget deficit was $290 billion in 1992 alone.
Interest rates were high, growth was low. And the government, it seemed, was failing to meet its
most basic obligations.
When I took office we charted a new, fiscally responsible course for a new economy.
And today, following that path, Americans have created the longest peacetime expansion in our
history -- with nearly 18 million new jobs, wages rising at twice the rate of inflation, the highest
home ownership in history, the smallest welfare rolls in history, and the lowest peacetime
unemployment since 1957.
Last year, for the first time in three decades, we turned red ink into black: our surplus of
nearly $70 billion is the largest in history. And it is projected to be only the first of many: as I
said in my State of the Union Address, America is on course for budget surpluses for the next
quarter century. And our estimates, optimistic as they sound, are even more conservative than
those of the Congress.
Indeed, America's economic house is in order, and it stands strong. If we manage the
surplus right, we can uphold our responsibility to future generations. We can do it by dedicating
the lion's share of the surplus to Social Security, Medicare, and paying down the debt. We can --
and therefore we must -- do it now.
1
Our fiscal discipline has given us this rare and hard-won opportunity. We can see now
that balancing the budget -- an idea that once might have seemed almost abstract or academic --
has made a real difference in people's lives. Fiscal discipline has transformed the vicious cycle
of budget deficits and high interest rates into a virtuous cycle of budget surpluses and low
interest rates. When interest rates fall, more Americans can buy homes, pay mortgages, retire
student loans, start new businesses. And when deficits disappear, capital -- more than $1 trillion
so far -- is liberated to create wealth, create jobs, and create opportunity at every level of our
economy. Simply put, the less money we tie up in publicly held debt, the more money we free
up for private sector investment. In an age of worldwide capital markets, this is the way a nation
prospers -- by saving and investing, not by running big deficits. That is one reason why this
year's budget is even smaller than last year's as a share of the economy.
The budget I submit today keeps America on that prudent path toward a more prosperous
future. It has taken hard work and tough choices to get this far. It will take more of the same to
move ahead. But with our economy expanding and our budget surplus growing, we can walk
that path with confidence rising. We must seize this opportunity to meet America's long-term
challenges, to fulfill our obligations to Americans young and old.
Recently, in my State of the Union Address, I spoke about the aging of America. The
Baby Boom will soon become the Senior Boom; and this first budget of the next century is our
first step toward meeting that challenge. I have proposed committing 62 percent of the surplus
for 15 years to save Social Security -- and investing a small portion in the private sector, just as
any private or state pension would, to earn higher returns. This will keep Social Security sound
for 55 years. And if we work together and make tough choices, we can save Social Security for
the next 75 years.
My balanced budget also takes steps to strengthen Medicare. Already, we have extended
the life of the Medicare trust fund by 10 years -- but we can save it for at least another decade. I
have proposed that we use one out of every six dollars in the surplus for the next 15 years to
guarantee the soundness of Medicare. This budget makes a down payment toward that goal. It
also commits 12 percent of the surplus for tax relief to establish universal savings accounts --
U.S.A. Accounts that will help Americans to invest, to save for retirement, and to share more
fully in our nation's wealth.
This is the economically sound and fiscally responsible course for the new century. If we
do this, if we lock in the surplus to save Social Security and strengthen Medicare, we can fulfill
our obligation to older Americans.
But the reform of Social Security and Medicare is equally important to younger
Americans. It achieves something for our children that, at first glance, seems far removed from
their lives, but is in fact essential to their future -- it pays down the debt.
2
[Point to chart] If we set aside 62 percent of the surplus for Social Security and 15
percent for Medicare, over the next 15 years, we will cut the debt by two thirds. As a share of
our economy, we will cut it by 84 percent -- achieving the lowest level of publicly held debt
since America entered the First World War, in 1917.
Let me explain why this is so important to our children. We have already made deficit
spending a thing of the past, but a big debt remains -- an unfortunate legacy of living beyond our
means. America is still paying for the irresponsibility of those 12 years -- for all those past
budget deficits. That's what the debt is -- it's the sum total of all those deficits, accruing interest,
waiting to be paid down. Today, as a share of the economy, the debt is 44 percent. Now, that is
down considerably, as you can see, since 1993; but it is still too high. As I said earlier, it
consumes capital that would be better invested by the private sector.
The question at hand is really very simple. Will we squander our surplus in the short
term? Or will we use it to pay down the debt for the long term, and lift the crushing burden of
debt from our children's shoulders? Because the fact of the matter is equally simple. Either we
are going to pay it down, or they are. I think it is responsible -- and right -- that we do it
ourselves. Beginning now. My plan will pay down the massive debt accumulated during the 12
years before I took office. And that's the right thing to do for our children.
There is more we must do for our children. My budget also makes historic investments in
our younger Americans -- from quality teaching to school modernization, from the afterschool
programs that keep kids safe to the summer school programs that keep kids learning.
But by saving Social Security strengthening Medicare. and paying down the debt,
my budget meets the critical first tests of the 21st Century. And these are the same challenges
that Americans, over the coming months and years, should meet together -- across lines of party
and generation. Because none of us wants the choices we made yesterday -- or defer today -- to
burden our children tomorrow. Instead, the decisions we make here and now should empower
our children, should give them the strength and freedom to make their time even better than our
own. Thank you.
3
Changes to pages:
Final 01/29/99 6:30pm
2) # h
5) add sent.
Jeff Shesol
7) #s
10) add sent.
PRESIDENT WILLIAM J. CLINTON
REMARKS ON SUBMISSION OF
THE 2000 BUDGET
THE WHITE HOUSE
February 1, 1999
Acknowledgments: VP; John Podesta; Jack Lew;
Gene Sperling; rest of budget team TBD; Cabinet
members TBD; and all the members of Congress who are
with us today.
Today I am submitting my budget for the year 2000 -
- the first budget of the 21 st Century. It is a budget that
charts a prudent, progressive path for America's future. It
is a balanced budget; it is fiscally responsible; and it
makes vital investments in the people of our nation.
Seven years ago, when I ran for President, I said that
we had to put our fiscal house in order. More and more
Americans were coming to agree with that -- with the idea
that our government had to return to living within its
means.
1
But, as the Vice President just told us, few were confident
it would ever do so again. Irresponsible policies in
Washington had quadrupled the national debt over the
previous 12 years. The budget deficit was projected at
$290 290
in 1992
about $300 billion for 1993 alone. Interest rates were
HIGH
LOW
rising, growth was slowing. And the government, it
seemed, was failing to meet its most basic obligations.
When I took office we charted a new, fiscally
responsible course for a new economy. And today,
following that path, Americans have created the longest
peacetime expansion in our history -- with nearly 18
million new jobs, wages rising at twice the rate of
inflation, the highest home ownership in history, the
smallest welfare rolls in history, and the lowest peacetime
unemployment since 1957.
2
Last year, for the first time in three decades, we
turned red ink into black: our surplus of nearly $70 billion
is the largest in history. And it is projected to be only the
first of many: as I said in my State of the Union Address,
America is on course for budget surpluses for the next
quarter century. And our estimates, optimistic as they
sound, are even more conservative than those of the
Congress.
Indeed, America's economic house is in order, and
it stands strong. If we manage the surplus right, we
can uphold our responsibility to future generations.
We can do it by dedicating the lion's share of the
surplus to Social Security, Medicare, and paying down
the debt. We can -- and therefore we must -- do it
now.
3
Our fiscal discipline has given us this rare and hard-
won opportunity. We can see now that balancing the
budget -- an idea that once might have seemed almost
abstract or academic -- has made a real difference in
people's lives. Fiscal discipline has transformed the
vicious cycle of budget deficits and high interest rates into
a virtuous cycle of budget surpluses and low interest rates.
When interest rates fall, more Americans can buy homes,
pay mortgages, retire student loans, start new businesses.
And when deficits disappear, capital -- more than $1
trillion so far -- is liberated. to create wealth, create jobs,
and create opportunity at every level of our economy.
Simply put, the less money we tie up in publicly held
debt, the more money we free up for private sector
investment.
4
1388
In an age of worldwide capital markets, this is the way a
nation prospers -- by saving and investing, not by running
big deficits. THAT IS ONE REASON WHY THIS YEAR'S BUDGET
1s EVEN SMALLER THAN LAST YEAR'S AS A SHARE DF THE
ECONOMY.
The budget I submit today keeps America on that
prudent path toward a more prosperous future. It has
taken hard work and tough choices to get this far. It will
take more of the same to move ahead. But with our
economy expanding and our budget surplus growing, we
can walk that path with confidence rising. We must seize
this opportunity to meet America's long-term challenges,
to fulfill our obligations to Americans young and old.
5
Recently, in my State of the Union Address, I spoke
about the aging of America. The Baby Boom will soon
become the Senior Boom; and this first budget of the next
century is our first step toward meeting that challenge. I
have proposed committing 62 percent of the surplus for
15 years to save Social Security -- and investing a small
portion in the private sector, just as any private or state
pension would, to earn higher returns. This will keep
Social Security sound for 55 years. And if we work
together and make tough choices, we can save Social
Security for the next 75 years.
6
My balanced budget also takes steps to strengthen
Medicare. Already, we have extended the life of the
Medicare trust fund by 10 years -- but we can save it for
at least another decade. I have also proposed that we use
one out of every six dollars in the surplus for the next 15
years to guarantee the soundness of Medicare. This
budget makes a down payment toward that goal. It also
12
FOR TAX RELIEF
commits H percent of the surplus ^ to establish universal
savings accounts -- U.S.A. Accounts -- that will help
Americans to invest, to save for retirement, and to share
more fully in our nation's wealth.
7
This is the economically sound and fiscally
responsible course for the new century. If we do this, if
we lock in the surplus to save Social Security and
strengthen Medicare, we can fulfill our obligation to older
Americans.
But the reform of Social Security and Medicare is
equally important to younger Americans. It achieves
something for our children that, at first glance, seems far
removed from their lives, but is in fact essential to their
future -- it pays down the debt.
[Point to chart] If we set aside 62 percent of the
surplus for Social Security and 15 percent for Medicare,
over the next 15 years, we will cut the debt by two thirds.
8
As a share of our economy, we will cut it by 84 percent --
achieving the lowest level of publicly held debt since
America entered the First World War, in 1917.
Let me explain why this is so important to our
children. We have already made deficit spending a thing
of the past, but a big debt remains -- an unfortunate legacy
of living beyond our means. America is still paying for
the irresponsibility of those 12 years -- for all those past
budget deficits. That's what the debt is -- it's the sum
total of all those deficits, accruing interest, waiting to be
paid down. Today, as a share of the economy, the debt is
44 percent. Now, that is down considerably, as you can
see, since 1993; but it is still too high. As I said earlier, it
consumes capital that would be better invested by the
private sector.
9
The question at hand is really very simple. Will we
squander our surplus in the short term? Or will we use it
to pay down the debt for the long term, and lift the
crushing burden of debt from our children's shoulders?
Because the fact of the matter is equally simple. Either
we are going to pay it down, or they are. I think it is
responsible -- and right -- that we do it ourselves.
Beginning now. MY PLAN WILL PAY DOWN THE MASSIVE DEBT
ACCUMULATED DURING THE 12 YRS, BEFORE I TOOK OFFICE. AND
THAT'S THE RIGHT THING TO DO FOR OUR CHILDREN.
There is more we must do for our children. My
budget also makes historic investments in our younger
Americans -- from quality teaching to school
modernization, from the afterschool programs that keep
kids safe to the summer school programs that keep kids
learning.
10
But by saving Social Security
strengthening
Medicare.
and paying down the debt, my budget meets
the critical first tests of the 21st Century. And these are
the same challenges that Americans, over the coming
months and years, should meet together -- across lines of
party and generation. Because none of us wants the
choices we made yesterday -- or defer today -- to burden
our children tomorrow. Instead, the decisions we make
here and now should empower our children, should give
them the strength and freedom to make their time even
better than our own. Thank you.
11
Final 01/29/99 6:30pm
Jeff Shesol
PRESIDENT WILLIAM J. CLINTON
REMARKS ON SUBMISSION OF THE 2000 BUDGET
THE WHITE HOUSE
February 1, 1999
Acknowledgments: VP; John Podesta; Jack Lew; Gene Sperling; rest of budget team
TBD; Cabinet members TBD; and all the members of Congress who are with us today
Today I am submitting my budget for the year 2000 -- the first budget of the 21st
Century. It is a budget that charts a prudent, progressive path for America's future. It is a
balanced budget; it is fiscally responsible; and it makes vital investments in the people of our
nation.
Seven years ago, when I ran for President, I said that we had to put our fiscal house in
order. More and more Americans were coming to agree with that -- with the idea that our
government had to return to living within its means. But, as the Vice President just told us, few
were confident it would ever do so again. Irresponsible policies in Washington had quadrupled
the national debt over the previous 12 years. The budget deficit was projected at about $300
billion for 1993 alone. Interest rates were rising, growth was slowing. And the government, it
seemed, was failing to meet its most basic obligations.
When I took office we charted a new, fiscally responsible course for a new economy.
And today, following that path, Americans have created the longest peacetime expansion in our
history -- with nearly 18 million new jobs, wages rising at twice the rate of inflation, the highest
home ownership in history, the smallest welfare rolls in history, and the lowest peacetime
unemployment since 1957.
Last year, for the first time in three decades, we turned red ink into black: our surplus of
nearly $70 billion is the largest in history. And it is projected to be only the first of many: as I
said in my State of the Union Address, America is on course for budget surpluses for the next
quarter century. And our estimates, optimistic as they sound, are even more conservative than
those of the Congress.
dont boed
Indeed, America's economic house is in order, and it stands strong. If we manage
the surplus right, we can uphold our responsibility to future generations. We can do it by
dedicating the lion's share of the surplus to saving Social Security, strength Medicare, and paying down the
debt. We can -- and therefore we must -- do it now.
And if we do 20, we
will pay off The massive
Our fiscal discipline has given us this rare and hard-won opportunity. We can see now
that balancing the budget -- an idea that once might have seemed almost abstract or academic --
1
has made a real difference in people's lives. Fiscal discipline has transformed the vicious cycle
of budget deficits and high interest rates into a virtuous cycle of budget surpluses and low
interest rates. When interest rates fall, more Americans can buy homes, pay mortgages, retire
student loans, start new businesses. And when deficits disappear, capital -- more than $1 trillion
so far -- is liberated to create wealth, create jobs, and create opportunity at every level of our
economy. Simply put, the less money we tie up in publicly held debt, the more money we free
up for private sector investment. In an age of worldwide capital markets, this is the way a nation
prospers -- by saving and investing, not by running big deficits.
The budget I submit today keeps America on that prudent path toward a more prosperous
future. It has taken hard work and tough choices to get this far. It will take more of the same to
move ahead. But with our economy expanding and our budget surplus growing, we can walk
that path with confidence rising. We must seize this opportunity to meet America's long-term
challenges, to fulfill our obligations to Americans young and old.
Recently, in my State of the Union Address, I spoke about the aging of America. The
Baby Boom will soon become the Senior Boom; and this first budget of the next century is our
first step toward meeting that challenge. I have proposed committing 62 percent of the surplus
for 15 years to save Social Security -- and investing a small portion in the private sector, just as
any private or state pension would, to earn higher returns. This will keep Social Security sound
for 55 years. And if we work together and make tough choices, we can save Social Security for
the next 75 years.
My balanced budget also takes steps to strengthen Medicare. Already, we have extended
the life of the Medicare trust fund by 10 years -- but we can save it for at least another decade. I
have also proposed that we use one out of every six dollars in the surplus for the next 15 years to
guarantee the soundness of Medicare. This budget makes a down payment toward that goal. It
also commits 11 percent of the surplus to establish universal savings accounts -- U.S.A.
Accounts -- that will help Americans to invest, to save for retirement, and to share more fully in
our nation's wealth.
for tax relief
This is the economically sound and fiscally responsible course for the new century. If we
do this, if we lock in the surplus to save Social Security and strengthen Medicare, we can fulfill
our obligation to older Americans.
But the reform of Social Security and Medicare is equally important to younger
Americans. It achieves something for our children that, at first glance, seems far removed from
their lives, but is in fact essential to their future -- it pays down the debt.
[Point to chart] If we set aside 62 percent of the surplus for Social Security and 15
percent for Medicare, over the next 15 years, we will cut the debt by two thirds. As a share of
our economy, we will cut it by 84 percent achieving the lowest level of publicly held debt
since America entered the First World War, in 1917.
2
Let me explain why this is so important to our children. We have already made deficit
spending a thing of the past, but a big debt remains -- an unfortunate legacy of living beyond our
means. America is still paying for the irresponsibility of those 12 years -- for all those past
budget deficits. That's what the debt is -- it's the sum total of all those deficits, accruing interest,
waiting to be paid down. Today, as a share of the economy, the debt is 44 percent. Now, that is
down considerably, as you can see, since 1993; but it is still too high. As I said earlier, it
consumes capital that would be better invested by the private sector.
The question at hand is really very simple. Will we squander our surplus in the short
term? Or will we use it to pay down the debt for the long term, and lift the crushing burden of
debt from our children's shoulders? Because the fact of the matter is equally simple. Either we
are going to pay it down, or they are. I think it is responsible -- and right -- that we do it
not'l debt
ourselves. Beginning now.
very simply my plan will pay off the massive accum
There is more we must do for our children. My budget also makes historic investments in
+ that's the rt thing to do
our younger Americans -- from quality teaching to school modernization, from the afterschool
for our
clindren.
programs that keep kids safe to the summer school programs that keep kids learning.
But
by
saving
Social
Security.
strengthening
Medicare.
and paying down the debt,
my budget meets the critical first tests of the 21st Century. And these are the same challenges
that Americans, over the coming months and years, should meet together -- across lines of party
and generation. Because none of us wants the choices we made yesterday -- or defer today -- to
burden our children tomorrow. Instead, the decisions we make here and now should empower
our children, should give them the strength and freedom to make their time even better than our
own. Thank you.
the size of govt.
even
- This mdger is m. than as or share of the econ
last yr.
- Budget begins will to pay down debt of Reagun Bush qrs.
my 15-yr.plan pays off the massive ym. before toon office
3
BUDGET 201
Page 1
REMARKS FOR VICE PRESIDENT AL GORE
BUDGET ANNOUNCEMENT
Monday, February 1, 1999
I want to join John Podesta in expressing my thanks to the entire staff of the
Office of Management and Budget. There's a story people tell about the time three
statisticians went hunting and spotted a deer. The first one fired ten feet to the
left. The second fired ten feet to the right. The third one stepped up and yelled,
"we got him." Thanks to your hard work and dedication, we don't need statistics
to tell the story of the federal budget we see it all around us every day in
stronger families, vibrant communities, and the healthiest economy in a generation.
We all know: it's not always easy to imagine the future. Even the best
among us have had trouble believing in the unknown.
Back in 1876, Western Union sent a telegram to a young inventor that read:
"[Your invention] has too many shortcomings to be considered as a serious means
of communication. It has no use to us." They were talking about the telephone.
And in 1899, the Commissioner of the U.S. Patent Office looked out at a
world without cars, computers, or even can openers and predicted that: "everything
that can be invented has been invented."
But there are few predictions in American history more off-base than the
sky-is-falling predictions that greeted our economic plan back in 1993. Critics
called it a "jobs killer;" a "one-way ticket to a recession;" and said it "did nothing,
absolutely nothing to reduce the huge budget deficits we have had." Six years
later, it's clear: the only thing inflated about our economic plan was the rhetoric of
the people who tried to defeat it.
When we took office, we had a budget deficit of $290 billion. Today, we
have a budget surplus of $70 billion and we are on course for budget surpluses
for the next 25 years.
When we took office, many states were losing jobs and the economy was
shrinking. Today, we have created nearly 18 million new jobs which is the
longest peactime expansion in American history.
When we took office, the unemployment rate was 7.5 percent. Today, the
unemployment rate is 4.3 percent -- which is the lowest peacetime rate in 41
years.
In fact, after six years of President Clinton's leadership, we have the highest
homeownership rate in history, the smallest welfare, rolls in 30 years, the largest
BUDGET.201
Page 2
drop in violent crime in more than 20 years, and wages rising at twice the rate of
inflation -- all with the smallest federal government since John F. Kennedy was in
the White House. That's not a prediction -- that's a fact.
As the President said in his State of the Union Address: now is not the time
to rest, now is the time to invest. The balanced budget we are unveiling today
builds on that success by remaining true to the three-part economic strategy that
we have pursued the past six years: a strategy of strict fiscal discipline; open
markets; and carefully targeted investments in the future.
I am especially proud that this year's budget continues our work to reinvent
government; makes historic investments in science and technology like the Next
Generation Internet; continues the work of rebuilding and modernizing America's
schools, including a historic investment in Hispanic-American students; and gives
America the help it needs to build safer, more livable communities, where parents
can spend less time stuck in traffic, and more time reading to their kids.
We've come a long way from the phony predictions and false choices of six
years ago. And make no mistake: there is one man at the heart of all of our
economic progress; one man who laid the foundation for one of the greatest
job-creating engines our nation has ever known; one man who has made fiscal
discipline and lean government a fact of life, not just a bumper sticker; one man
who is giving us new faith in our ability to solve problems together -- our friend,
and one of the greatest economic stewards this nation has ever known -- President
Bill Clinton.
Final 01/29/99 6:00pm
Jeff Shesol
PRESIDENT WILLIAM J. CLINTON
REMARKS ON SUBMISSION OF THE 2000 BUDGET
THE WHITE HOUSE
February 1, 1999
Acknowledgments: VP; John Podesta; Jack Lew; Gene Sperling; rest of budget team
TBD; Cabinet members TBD; and all the members of Congress who are with us today
Today I am submitting my budget for the year 2000 -- the first budget of the 21st
Century. It is a budget that charts a prudent, progressive path for America's future. It is a
balanced budget; it is fiscally responsible; and it makes vital investments in the people of our
nation.
Seven years ago, when I ran for President, I said that we had to put our fiscal house in
order. More and more Americans were coming to agree with that -- with the idea that our
government had to return to living within its means. But, as the Vice President just told us, few
were confident it would ever do so again. Irresponsible policies in Washington had quadrupled
the national debt over the previous 12 years. The budget deficit was projected at about $300
billion for 1993 alone. Interest rates were rising, growth was slowing. And the government, it
seemed, was failing to meet its most basic obligations.
When I took office we charted a new, fiscally responsible course for a new economy.
And today, following that path, Americans have created the longest peacetime expansion in our
history -- with nearly 18 million new jobs, wages rising at twice the rate of inflation, the highest
home ownership in history, the smallest welfare rolls in history, and the lowest peacetime
unemployment since 1957.
Last year, for the first time in three decades, we turned red ink into black: our surplus of
nearly $70 billion is the largest in history. And it is projected to be only the first of many: as I
said in my State of the Union Address, America is on course for budget surpluses for the next
quarter century. And our estimates, optimistic as they sound, are even more conservative than
those of the Congress.
Indeed, America's economic house is in order, and it stands strong. If we manage
the surplus right, we can uphold our responsibility to future generations. We can do it by
dedicating the lion's share of the surplus to Social Security, Medicare, and paying down the
debt. We can -- and therefore we must -- do it now.
Our fiscal discipline has given us this rare and hard-won opportunity. We can see now
that balancing the budget -- an idea that once might have seemed almost abstract or academic --
1
has made a real difference in people's lives. Fiscal discipline has transformed the vicious cycle
of budget deficits and high interest rates into a virtuous cycle of budget surpluses and low
interest rates. When interest rates fall, more Americans can buy homes, pay mortgages, retire
student "loans, start new businesses. And when deficits disappear, capital -- more than $1 trillion
so far -- is liberated to create wealth, create jobs, and create opportunity at every level of our
economy. Simply put, the less money we tie up in publicly held debt, the more money we free
up for private sector investment. In an age of worldwide capital markets, this is the way a nation
prospers -- by saving and investing, not by running big deficits.
The budget I submit today keeps America on that prudent path toward a more prosperous
future. It has taken hard work and tough choices to get this far. It will take more of the same to
move ahead. But with our economy expanding and our budget surplus growing, we can walk
that path with confidence rising. We must seize this opportunity to meet America's long-term
challenges, to fulfill our obligations to Americans young and old.
Recently, in my State of the Union Address, I spoke about the aging of America. The
Baby Boom will soon become the Senior Boom; and this first budget of the next century is our
first step toward meeting that challenge. I have proposed committing 62 percent of the surplus
for 15 years to save Social Security -- and investing a small portion in the private sector, just as
any private or state pension would de to earn higher returns. This will keep Social Security
sound for 55 years. And if we work together and make tough choices, we can save Social
Security for the next 75 years.
My balanced budget also takes steps to strengthen Medicare. Already, we have extended
the life of the Medicare trust fund by 10 years -- but we can save it for at least another decade. I
have also proposed that we use one out of every six dollars in the surplus for the next 15 years to
guarantee the soundness of Medicare. This budget makes a down payment toward that goal. It
also commits 11 percent of the surplus to establish universal savings accounts -- U.S.A.
Accounts -- that will help Americans to invest, to save for retirement, and to share more fully in
our nation's wealth.
This is the economically sound and fiscally responsible course for the new century. If we
do this, if we lock in the surplus to save Social Security and strengthen Medicare, we can fulfill
our obligation to older Americans.
But the reform of Social Security and Medicare is equally important to younger
Americans. It achieves something for our children that, at first glance, seems far removed from
their lives, but is in fact essential to their future it pays down the debt. If we set aside 62
percent of the surplus for Social Security and 15 percent for Medicare, over the next 15 years, we
will cut the debt by two thirds. As a share of our economy, we will cut it by 84 percent --
achieving the lowest level of publicly held debt since America entered the First World War, in
1917. [Point to chart]
2
Let me explain why this is so important to our children. We have already made deficit
spending a thing of the past, but a big debt remains -- an unfortunate legacy of living beyond our
means. America is still paying for the irresponsibility of those 12 years -- for all those past
budget deficits. That's what the debt is -- it's the sum total of all those deficits, accruing interest,
waiting to be paid down. Today, as a share of the economy, the debt is 44 percent. Now, that is
down considerably, as you can see, since 1993; but it is still too high. As I said earlier, it
consumes capital that would be better invested by the private sector.
The question at hand is really very simple. Will we squander our surplus in the short
term? Or will we use it to pay down the debt for the long term, and lift the crushing burden of
debt from the shoulders of our children? Because the fact of the matter is equally simple. Either
we are going to pay it down, or they are. I think it is responsible -- and right -- that we do it
ourselves. Beginning now.
There is more we must do for our children. My budget also makes historic investments in
our younger Americans -- from quality teaching to school modernization, from the afterschool
programs that keep kids safe to the summer school programs that keep kids learning.
But by saving Social Security strengthening Medicare and paying down the national
debt, my budget meets the critical, first tests of the 21st Century. And these are the same
challenges that Americans should meet together -- across lines of party and generation, over the
coming months and years. Because none of us wants the choices we made yesterday -- or defer
today -- to burden our children tomorrow. Instead, the decisions we make here and now should
empower our children, should give them the strength and freedom to make their time even better
than our own. Thank you.
3
Draft 01/29/99 4:00pm
Jeff Shesol
PRESIDENT WILLIAM J. CLINTON
REMARKS ON SUBMISSION OF THE 2000 BUDGET
THE WHITE HOUSE
February 1, 1999
Acknowledgments: VP; John Podesta; Jack Lew; Gene Sperling; budget team TBD;
Cabinet members TBD; members of Congress TBD
Today I am submitting my budget for the year 2000 -- the first budget of the 21st
Century. It is a budget that charts a prudent, progressive path for America's future. It is a
balanced budget; it is fiscally responsible; and it makes vital investments in the people of our
nation.
Seven years ago, when I ran for President, I said that we had to put our fiscal house in
order. More and more Americans were coming to agree with that -- with the idea that our
government had to return to living within its means. But few were confident it would ever do so
again. Irresponsible policies in Washington had quadrupled the national debt over the previous
12 years. The budget deficit was projected at about $300 billion for 1993 alone. Interest rates
were rising, growth was slowing. And the government, it seemed, was failing to meet its most
basic obligations.
When I took office we charted a new, fiscally responsible course for a new economy.
And today, following that path, Americans have created the longest peacetime expansion in our
history -- with nearly 18 million new jobs, wages rising at twice the rate of inflation, the highest
home ownership in history, the smallest welfare rolls in history, and the lowest peacetime
unemployment since 1957.
Last year, for the first time in three decades, we turned red ink into black: our surplus of
nearly $70 billion is the largest in history. And it is projected to be only the first of many: as I
said in my State of the Union Address, America is on course for budget surpluses for the next
quarter century. And our estimates, optimistic as they sound, are even more conservative than
those of the Congress.
Indeed, America's economic house is in order, and it stands strong. We can see now that
balancing the budget -- an idea that once might have seemed almost abstract or academic -- has
made a real difference in people's lives. Fiscal discipline has transformed the vicious cycle of
budget deficits and high interest rates into a virtuous cycle of budget surpluses and low interest
rates. When interest rates fall, more Americans can buy homes, pay mortgages, retire student
loans, start new businesses. And when deficits disappear, capital -- more than $1 trillion so far --
is liberated to create wealth, create jobs, and create opportunity at every level of our economy.
1
Simply put, the less money we tie up in publicly held debt, the more money we free up for
private sector investment. In an age of worldwide capital markets, this is the way a nation
prospers by saving and investing, not by running big deficits.
The budget I submit today keeps America on that prudent path toward a more prosperous
future. It has taken hard work and tough choices to get this far. It will take more of the same to
move ahead. But with our economy expanding and our budget surplus growing, we can walk
that path with confidence rising. We can and therefore we must seize this opportunity to
meet America's long-term challenges, to fulfill our obligations to Americans young and old.
Recently, in my State of the Union Address, I spoke about the aging of America. The
Baby Boom will soon become the Senior Boom; and this first budget of the next century is our
first step toward meeting that challenge. I proposed committing 60 percent of the surplus for 15
years to save Social Security -- and investing a small portion in the private sector, just as any
private or state pension would do to earn higher returns. This will keep Social Security sound for
55 years. And if we work together and make tough choices, we can save Social Security for the
next 75 years.
My balanced budget also takes steps to strengthen Medicare. Already, we have extended
the life of the Medicare trust fund by 10 years but we can save it for at least another decade. I
have also proposed that we use one out of every six dollars in the surplus for the next 15 years to
guarantee the soundness of Medicare. This budget makes a down payment toward that goal. It
also commits 11 percent of the surplus to establish universal savings accounts U.S.A.
Accounts that will help Americans to invest, to save for retirement, and to share more fully in
our nation's wealth.
This is the economically sound and fiscally responsible course for the new century. If we
do this, if we lock in the surplus to save Social Security and strengthen Medicare, we can fulfill
our obligation to older Americans.
My budget also makes historic investments in our younger Americans - from quality
teaching to school modernization, from the afterschool programs that keep kids safe to the
summer school programs that keep kids learning. This budget also achieves something for our
children that, at first glance, seems far removed from their lives, but is in fact essential to their
future -- it pays down the national debt. Over the next 15 years, we will reach the lowest level of
publicly held debt since America entered the First World War, in 1917. [Point to chart]
Let me explain why this is so important to our children's future. We have already made
deficit spending a thing of the pàst, but a big debt remains an unfortunate legacy of living
beyond our means. America is still paying for the irresponsibility of those 12 years -- for all
those past budget deficits: That's what the national debt is it's the sum total of all those
deficits, accruing interest, waiting to be paid down. Today, as a share of the economy, the debt is
44 percent. Now, that is down considerably, as you can see, since 1993; but it is still too high.
2
As I said earlier, it consumes capital that would be better invested by the private sector.
The question at hand is really very simple. Will we squander our surplus in the short
term? Or will we use it to pay down the debt for the long term, and lift the crushing burden of
debt from the shoulders of our children? Because the fact of the matter is equally simple. Either
we are going to pay it down, or they are. I think it is responsible -- and right -- that we do it
ourselves. Beginning now.
Saving Social Security strengthening Medicare educating our children and paying
down the national debt. These are the critical tests our budget meets. And over the coming
months and years, they are the challenges Americans should meet together -- across the lines of
party and generation. Because there is at least one thing that unites us all. None of us wants the
choices we made yesterday -- or defer today -- to burden our children tomorrow. Instead, the
decisions we make here and now should empower our children, should give them the strength
and freedom to make their time even better than our own. Thank you.
3
Final 01/29/99 6:00pm
Jeff Shesol
PRESIDENT WILLIAM J. CLINTON
REMARKS ON SUBMISSION OF THE 2000 BUDGET
THE WHITE HOUSE
February 1, 1999
Acknowledgments: VP; John Podesta; Jack Lew; Gene Sperling; rest of budget team
TBD; Cabinet members TBD; and all the members of Congress who are with us today
Today I am submitting my budget for the year 2000 -- the first budget of the 21st
Century. It is a budget that charts a prudent, progressive path for America's future. It is a
balanced budget; it is fiscally responsible; and it makes vital investments in the people of our
nation.
Seven years ago, when I ran for President, I said that we had to put our fiscal house in
order. More and more Americans were coming to agree with that -- with the idea that our
government had to return to living within its means. But, as the Vice President just told us, few
were confident it would ever do so again. Irresponsible policies in Washington had quadrupled
the national debt over the previous 12 years. The budget deficit was projected at about $300
billion for 1993 alone. Interest rates were rising, growth was slowing. And the government, it
seemed, was failing to meet its most basic obligations.
When I took office we charted a new, fiscally responsible course for a new economy.
And today, following that path, Americans have created the longest peacetime expansion in our
history with nearly 18 million new jobs, wages rising at twice the rate of inflation, the highest
home ownership in history, the smallest welfare rolls in history, and the lowest peacetime
unemployment since 1957.
Last year, for the first time in three decades, we turned red ink into black: our surplus of
nearly $70 billion is the largest in history. And it is projected to be only the first of many: as I
said in my State of the Union Address, America is on course for budget surpluses for the next
quarter century. And our estimates, optimistic as they sound, are even more conservative than
those of the Congress.
Indeed, America's economic house is in order, and it stands strong. If we manage
the surplus right, we can -- remarkably -- reduce the debt by two thirds over the next 15
years. And we can do it while upholding our responsibility to future generations. We can
do it by dedicating the lion's share of the surplus to Social Security, Medicare, and paying
down the debt.
Our fiscal discipline has given us this rare and hard-won opportunity. We can see now
1
that balancing the budget -- an idea that once might have seemed almost abstract or academic --
has made a real difference in people's lives. Fiscal discipline has transformed the vicious cycle
of budget deficits and high interest rates into a virtuous cycle of budget surpluses and low
interest rates. When interest rates fall, more Americans can buy homes, pay mortgages, retire
student loans, start new businesses. And when deficits disappear, capital -- more than $1 trillion
so far -- is liberated to create wealth, create jobs, and create opportunity at every level of our
economy. Simply put, the less money we tie up in publicly held debt, the more money we free
up for private sector investment. In an age of worldwide capital markets, this is the way a nation
prospers -- by saving and investing, not by running big deficits.
The budget I submit today keeps America on that prudent path toward a more prosperous
future. It has taken hard work and tough choices to get this far. It will take more of the same to
move ahead. But with our economy expanding and our budget surplus growing, we can walk
that path with confidence rising. We can -- and therefore we must -- seize this opportunity to
meet America's long-term challenges, to fulfill our obligations to Americans young and old.
Recently, in my State of the Union Address, I spoke about the aging of America. The
Baby Boom will soon become the Senior Boom; and this first budget of the next century is our
first step toward meeting that challenge. I have proposed committing 62 percent of the surplus
for 15 years to save Social Security -- and investing a small portion in the private sector, just as
any private or state pension would do to earn higher returns. This will keep Social Security
sound for 55 years. And if we work together and make tough choices, we can save Social
Security for the next 75 years.
My balanced budget also takes steps to strengthen Medicare. Already, we have extended
the life of the Medicare trust fund by 10 years -- but we can save it for at least another decade. I
have also proposed that we use one out of every six dollars in the surplus for the next 15 years to
guarantee the soundness of Medicare. This budget makes a down payment toward that goal. It
also commits 11 percent of the surplus to establish universal savings accounts -- U.S.A.
Accounts -- that will help Americans to invest, to save for retirement, and to share more fully in
our nation's wealth.
This is the economically sound and fiscally responsible course for the new century. If we
do this, if we lock in the surplus to save Social Security and strengthen Medicare, we can fulfill
our obligation to older Americans.
But the reform of Social Security and Medicare is equally important to younger
Americans. It achieves something for our children that, at first glance, seems far removed from
their lives, but is in fact essential to their future -- it pays down the debt. If we set aside 62
percent of the surplus for Social Security and 15 percent for Medicare, over the next 15 years, we
will cut the debt by two thirds. As a share of our economy, we will cut it 84 percent -- to achieve
the lowest level of publicly held debt since America entered the First World War, in 1917.
[Point to chart]
2
Let me explain why this is so important to our children. We have already made deficit
spending a thing of the past, but a big debt remains -- an unfortunate legacy of living beyond our
means. America is still paying for the irresponsibility of those 12 years -- for all those past
budget deficits. That's what the debt is -- it's the sum total of all those deficits, accruing interest,
waiting to be paid down. Today, as a share of the economy, the debt is 44 percent. Now, that is
down considerably, as you can see, since 1993; but it is still too high. As I said earlier, it
consumes capital that would be better invested by the private sector.
The question at hand is really very simple. Will we squander our surplus in the short
term? Or will we use it to pay down the debt for the long term, and lift the crushing burden of
debt from the shoulders of our children? Because the fact of the matter is equally simple. Either
we are going to pay it down, or they are. I think it is responsible -- and right -- that we do it
ourselves. Beginning now.
There is more we must do for our children. My budget also makes historic investments in
our younger Americans -- from quality teaching to school modernization, from the afterschool
programs that keep kids safe to the summer school programs that keep kids learning.
But by saving Social Security strengthening Medicare and paying down the national
debt, my budget meets the critical, first tests of the 21st Century. And these are the same
challenges that Americans should meet together -- across lines of party and generation, over the
coming months and years. Because none of us wants the choices we made yesterday -- or defer
today -- to burden our children tomorrow. Instead, the decisions we make here and now should
empower our children, should give them the strength and freedom to make their time even better
than our own. Thank you.
3
fr
Draft 01/29/99 4:00pm
Jeff Shesol
PRESIDENT WILLIAM J. CLINTON
REMARKS ON SUBMISSION OF THE 2000 BUDGET
THE WHITE HOUSE
February 1, 1999
Acknowledgments: VP; John Podesta; Jack Lew; Gene Sperling; budget team TBD;
Cabinet members TBD; members of Congress TBD
Today I am submitting my budget for the year 2000 -- the first budget of the 21st
Century. It is a budget that charts a prudent, progressive path for America's future. It is a
balanced budget; it is fiscally responsible; and it makes vital investments in the people of our
nation.
Seven years ago, when I ran for President, I said that we had to put our fiscal house in
order. More and more Americans were coming to agree with that -- with the idea that our
as
VP
government had to return to living within its means. But few were confident it would ever do so total
again. Irresponsible policies in Washington had quadrupled the national debt over the previous
you
12 years. The budget deficit was projected at about $300 billion for 1993 alone. Interest rates
were rising, growth was slowing. And the government, it seemed, was failing to meet its most
basic obligations.
When I took office we charted a new, fiscally responsible course for a new economy.
And today, following that path, Americans have created the longest peacetime expansion in our
history -- with nearly 18 million new jobs, wages rising at twice the rate of inflation, the highest
home ownership in history, the smallest welfare rolls in history, and the lowest peacetime
unemployment since 1957.
p(chart be
Last year, for the first time in three decades, we turned red ink into black: our surplus of
290
0
nearly $70 billion is the largest in history. And it is projected to be only the first of many: as I
80
said in my State of the Union Address, America is on course for budget surpluses for the next
quarter century. And our estimates, optimistic as they sound, are even more conservative than
those of the Congress. 76
1999.
This yr. projection for 2000
Indeed, America's economic house is in order, and it stands strong. We can see now that
balancing the budget -- an idea that once might have seemed almost abstract or academic -- has
made a real difference in people's lives. Fiscal discipline has transformed the vicious cycle of
budget deficits and high interest rates into a virtuous cycle of budget surpluses and low interest
rates. When interest rates fall, more Americans can buy homes, pay mortgages, retire student
loans, start new businesses. And when deficits disappear, capital -- more than $1 trillion so far
is liberated to create wealth, create jobs, and create opportunity at every level of our economy.
1
Simply put, the less money we tie up in publicly held debt, the more money we free up for
private sector investment. In an age of worldwide capital markets, this is the way a nation
prospers -- by saving and investing, not by running big deficits.
The budget I submit today keeps America on that prudent path toward a more prosperous
future. It has taken hard work and tough choices to get this far. It will take more of the same to
move ahead. But with our economy expanding and our budget surplus growing, we can walk
that path with confidence rising. We can and therefore we must -- seize this opportunity to
meet America's long-term challenges, to fulfill our obligations to Americans young and old.
Recently, in my State of the Union Address, I spoke about the aging of America. The
Baby Boom will soon become the Senior Boom; and this first budget of the next century is our
first step toward meeting that challenge. I mare proposed committing 60 percent of the surplus for 15
years to save Social Security and investing a small portion in the private sector, just as any
private or state pension would do to earn higher returns. This will keep Social Security sound for
55 years. And if we work together and make tough choices, we can save Social Security for the
next 75 years.
1234
My balanced budget also takes steps to strengthen Medicare. Already, we have extended
the life of the Medicare trust fund by 10 years but we can save it for at least another decade. I
have also proposed that we use one out of every six dòllars in the surplus for the next 15 years to
guarantee the soundness of Medicare. This budget makes a down payment toward that goal. It
also commits 11 percent of the surplus to establish universal savings accounts -- U.S.A.
Accounts -- that will help Americans to invest, to save for retirement, and to share more fully in
our nation's wealth.
This is the economically sound and fiscally responsible course for the new century. If we
do this, if we lock in the surplus to save Social Security and strengthen Medicare, we can fulfill
our obligation to older Americans.
move
My budget also makes historic investments in our younger Americans -- from quality
but the
to later
reform of
teaching to school modernization, from the afterschool programs that keep kids safe to the
Soc sect
?
summer school programs that keep kids learning. This budget also achieves something for our
medicare
children that, at first glance seems far removed from their lives, but is in fact essential to their
is inportant
to our
future -- it pays down the national debt. Over the next 15 years, we will reach the lowest level of
children.
publicly held debt since America entered the First World War, in 1917. [Point to chart]
Let me explain why this is so important to our children's future. We have already made
deficit spending a thing of the past, but a big debt remains -- an unfortunate legacy of living
beyond our means. America is still paying for the irresponsibility of those 12 years -- for all
those past budget deficits. That's what the national debt is it's the sum total of all those
deficits, accruing interest, waiting to be paid down. Today, as a share of the economy, the debt is
44 percent. Now, that is down considerably, as you can see, since 1993; but it is still too high.
2
In real terms
$ 3.7+
1.2
[reduced debt byl
As I said earlier; it consumes capital that would be better invested by the private sector.
The question at hand is really very simple. Will we squander our surplus in the short
term? Or will we use it to pay down the debt for the long term, and lift the crushing burden of
debt from the shoulders of our children? Because the fact of the matter is equally simple. Either
we are going to pay it down, or they are. I think it is responsible -- and right -- that we do it
ourselves. Beginning now.
Saving Social Security strengthening Medicare educating our children and paying
down the national debt. These are the critical tests our budget meets. And over the coming
months and years, they are the challenges Americans should meet together -- across the lines of
party and generation. Because there is at least one thing that unites us all. None of us wants the
choices we made yesterday -- or defer today -- to burden our children tomorrow. Instead, the
decisions we make here and now should empower our children, should give them the strength
and freedom to make their time even better than our own. Thank you.
3
Joseph J. Minarik
01/30/99 09:12:06 PM
Record Type:
Record
To:
Jeffrey A. Shesol/WHO/EOP
CC:
Jacob J. Lew/OMB/EOP, Robert L. Nabors/OMB/EOP
Subject: POTUS remarks for Monday on the budget
Jack Lew shared the President's draft remarks with me, mostly to make sure that the referenced
chart is being taken care of. (I'm checking on that elsewhere, but if you know who is doing it, I'd
appreciate knowing that. Jack is just concerned that someone will look at him on Monday morning
and ask where the chart is.)
I did have two comments.
1.
In the "My balanced budget.. paragraph near the bottom of the second page of your
e-mail to Jack, there is an "also" ("I have also proposed ") that seems redundant after the
previous sentence already talks about saving Medicare for another ten years.
2.
Towards the end, in the discussion of paying down the debt -- The draft works fine, but it
might be worth considering that until very recently, the presumption has always been that the debt
would never be paid down; it would just sit there, and we would pay interest forever. Most
sophisticated observers (which is probably not that many people, I admit) would not have thought
that "Either we are going to pay it down, or they are," but rather that they would pass the buck, as
it were, to their kids. That viewpoint would suggest an alternative sentence, "Either we are going
to pay it down, or our children and our grandchildren will be paying interest on that debt -- forever."
The revolution has come from people even beginning to think about paying down the debt. Again,
the text probably works for most people, but I thought this was worth considering.
Jonathan Orszag
01/31/99 05:25:32 PM
Record Type:
Record
To:
Jeffrey A. Shesol/WHO/EOP
CC:
Subject: Gene comment
Two comments:
1.
Gene wants to add in your "investing in people" paragraph at the end:
We must realize that sound economic policy combines fiscal discipline to spur private-sector
investment as well as increased public-sector investments in education, health care, and research.
2.
Gene wants to add a line like (he wants to get the point in that we have improved the fiscal
situation in America for 7 years running -- the first time that's ever happened):
It is not surprising that we have had seven years of improvement in America's fiscal position -- for
the first time in history -- and America is now enjoying the longest peacetime economic expansion
in history.
Jonathan Orszag
01/29/99 07:14:59 PM
Record Type: Record
To:
Jeffrey A. Shesol/WHO/EOP
CC:
bcc:
Subject: Re: final draft -- budget remarks
SEE BOLDS
Jeffrey A. Shesol
Jeffrey A. Shesol
01/29/99 06:45:26 PM
Record Type:
Record
To:
See the distribution list at the bottom of this message
CC:
See the distribution list at the bottom of this message
Subject: final draft budget remarks
Final 01/29/99 6:30pm
Jeff Shesol
PRESIDENT WILLIAM J. CLINTON
REMARKS ON SUBMISSION OF THE 2000 BUDGET
THE WHITE HOUSE
February 1, 1999
Acknowledgments: VP; John Podesta; Jack Lew; Gene Sperling; rest of budget team
TBD; Cabinet members TBD; and all the members of Congress who are with us today
Today I am submitting my budget for the year 2000 the first budget of the 21st
Century. It is a budget that charts a prudent, progressive path for America's future. It is a
balanced budget; it is fiscally responsible; and it makes vital investments in the people of our
nation.
Seven years ago, when I ran for President, I said that we had to put our fiscal house in
order. More and more Americans were coming to agree with that with the idea that our
government had to return to living within its means. But, as the Vice President just told us,
few were confident it would ever do so again. Irresponsible policies in Washington had
quadrupled the national debt over the previous 12 years. The budget deficit was $290 billion
in 1992. projected at about $300 billion for 1993 alone Interest rates were high rising,
growth was low slowing. And the government, it seemed, was failing to meet its most basic
obligations.
When I took office we charted a new, fiscally responsible course for a new economy.
And today, following that path, Americans have created the longest peacetime expansion in
our history -- with nearly 18 million new jobs, wages rising at twice the rate of inflation, the
highest home ownership in history, the smallest welfare rolls in history, and the lowest
peacetime unemployment since 1957.
Last year, for the first time in three decades, we turned red ink into black: our surplus
of nearly $70 billion is the largest in history. And it is projected to be only the first of many:
as I said in my State of the Union Address, America is on course for budget surpluses for the
next quarter century. And our estimates, optimistic as they sound, are even more conservative
than those of the Congress.
Indeed, America's economic house is in order, and it stands strong. If we manage
the surplus right, we can uphold our responsibility to future generations. We can do it by
dedicating the lion's share of the surplus to Social Security, Medicare, and paying down
the debt. We can -- and therefore we must -- do it now.
Our fiscal discipline has given us this rare and hard-won opportunity. We can see now
that balancing the budget -- an idea that once might have seemed almost abstract or academic
-- has made a real difference in people's lives. Fiscal discipline has transformed the vicious
cycle of budget deficits and high interest rates into a virtuous cycle of budget surpluses and
low interest rates. When interest rates fall, more Americans can buy homes, pay mortgages,
retire student loans, start new businesses. And when deficits disappear, capital -- more than
$1 trillion so far -- is liberated to create wealth, create jobs, and create opportunity at every
level of our economy. Simply put, the less money we tie up in publicly held debt, the more
money we free up for private sector investment. In an age of worldwide capital markets, this
is the way a nation prospers -- by saving and investing, not by running big deficits.
The budget I submit today keeps America on that prudent path toward a more
prosperous future. It has taken hard work and tough choices to get this far. It will take more
of the same to move ahead. But with our economy expanding and our budget surplus
growing, we can walk that path with confidence rising. We must seize this opportunity to
meet America's long-term challenges, to fulfill our obligations to Americans young and old.
Recently, in my State of the Union Address, I spoke about the aging of America. The
Baby Boom will soon become the Senior Boom; and this first budget of the next century is our
first step toward meeting that challenge. I have proposed committing 62 percent of the surplus
for 15 years to save Social Security and investing a small portion in the private sector,
just as any private or state pension would, to earn higher returns. This will keep
Social Security sound for 55 years. And if we work together and make tough
choices, we can save Social Security for the next 75 years
My balanced budget also takes steps to strengthen Medicare. Already, we have
extended the life of the Medicare trust fund by 10 years -- but we can save it for at least
another decade. I have also proposed that we use one out of every six dollars in the surplus
for the next 15 years to guarantee the soundness of Medicare. This budget makes a down
payment toward that goal. It also commits 12 11-percent of the surplus to establish universal
savings accounts -- U.S.A. Accounts -- that will help Americans to invest, to save for
retirement, and to share more fully in our nation's wealth.
This is the economically sound and fiscally responsible course for the new century. If
we do this, if we lock in the surplus to save Social Security and strengthen Medicare, we can
fulfill our obligation to older Americans.
But the reform of Social Security and Medicare is equally important to younger
Americans. It achieves something for our children that, at first glance, seems far removed
from their lives, but is in fact essential to their future -- it pays down the debt.
[Point to chart] If we set aside 62 percent of the surplus for Social Security and 15
percent for Medicare, over the next 15 years, we will cut the debt by two thirds. As a share
of our economy, we will cut it by 84 percent -- achieving the lowest level of publicly held debt
since America entered the First World War, in 1917.
Let me explain why this is so important to our children. We have already made deficit
spending a thing of the past, but a big debt remains -- an unfortunate legacy of living beyond
our means. America is still paying for the irresponsibility of those 12 years -- for all those
past budget deficits. That's what the debt is -- it's the sum total of all those deficits, accruing
interest, waiting to be paid down. Today, as a share of the economy, the debt is 44 percent.
Now, that is down considerably, as you can see, since 1993; but it is still too high. As I said
earlier, it consumes capital that would be better invested by the private sector.
The question at hand is really very simple. Will we squander our surplus in the short
term? Or will we use it to pay down the debt for the long term, and lift the crushing burden
of debt from our children's shoulders? Because the fact of the matter is equally simple.
Either we are going to pay it down, or they are. I think it is responsible and right -- that we
do it ourselves. Beginning now.
There is more we must do for our children. My budget also makes historic
investments in our younger Americans -- from quality teaching to school modernization, from
the afterschool programs that keep kids safe to the summer school programs that keep kids
learning.
But by saving Social Security
strengthening Medicare
and paying down the
debt, my budget meets the critical first tests of the 21st Century. And these are the same
challenges that Americans, over the coming months and years, should meet together -- across
lines of party and generation. Because none of us wants the choices we made yesterday -- or
defer today to burden our children tomorrow. Instead, the decisions we make here and now
should empower our children, should give them the strength and freedom to make their time
even better than our own. Thank you.
Message Sent To:
John Podesta/WHO/EOP
Dawn L. Smalls/WHO/EOP
Sara M. Latham/WHO/EOP
Gene B. Sperling/OPD/EOP
Melissa G. Green/OPD/EOP
Jake Siewert/OPD/EOP
Jonathan Orszag/OPD/EOP
Jacob J. Lew/OMB/EOP
Sylvia M. Mathews/OMB/EOP
Linda Ricci/OMB/EOP
Paul E. Begala/WHO/EOP
Tracy Pakulniewicz/WHO/EOP
Dominique L. Cano/WHO/EOP
Message Copied To:
Michael Waldman/WHO/EOP
Joshua S. Gottheimer/WHO/EOP
Paul K. Orzulak/OVP @ OVP
Jeffrey K. Nussbaum/OVP @ OVP
Kevin S. Moran/WHO/EOP
mawaldman @ aol.com @ inet
shesol @ aol.com @ inet
markpenn @ ps-b.com
01/29/99 05:28:00 PM
Record Type: Record
To:
Jeffrey A. Shesol
cc:
Subject: Re: Monday budget remarks - draft 1/29 4:00pm -- comments to J
*** maybe something This is the course we have followed -- from $300
billion in the red to last year a budget deficit of zero. Today we stand at
a surplus of $80 billion - the first budget surplus in a generation -- in
XX years. And if we manage the surplus right, we can ensure that in the next
25 years, we never run a budget deficit. [IF TRUE] We can for the first time
in a generation reduce the debt rather than increase the debt. We can reduce
it by 2/3rds in the next XX years. We can do this while upholding our
responsibility to the generations of the 21st Century -- dedicating the
surplus to Social Security, Medicare, education, a strong defense and paying
down the debt.
Original Message
From: [email protected] [mailto:[email protected])
Sent: Friday, January 29, 1999 4:41 PM
To: [email protected]
Subject: Monday budget remarks draft 1/29 4:00pm -- comments to Jeff
Shesol ASAP 6-2796
Forwarded by Michael Waldman/WHO/EOP on 01/29/99
04:42 PM
(Embedded
image moved Jeffrey A. Shesol
to file:
01/29/99 04:22:56 PM
PIC15218.PCX)
Record Type: Record
To: See the distribution list at the bottom of this message
CC: Michael Waldman/WHO/EOP, Joshua S. Gottheimer/WHO/EOP
Subject: Monday budget remarks draft 1/29 4:00pm -- comments to Jeff
Shesol ASAP 6-2796
Draft 01/29/99 3:00pm
Jeff Shesol
PRESIDENT WILLIAM J. CLINTON
REMARKS ON SUBMISSION OF THE 2000 BUDGET
THE WHITE HOUSE
February 1, 1999
Acknowledgments: VP; John Podesta; Jack Lew; Gene Sperling; budget team TBD;
Cabinet members TBD; members of Congress TBD
Today I am submitting my budget for the year 2000 -- the first budget of the 21st
Century. It is a budget that charts a prudent, progressive path for America's future. It is a
balanced budget; it is fiscally responsible; and it makes vital investments in the people of our
nation.
Seven years ago, when I ran for President, I said that we had to put our fiscal house in
order. More and more Americans were coming to agree with that -- with the idea that our
government had to return to living within its means. But few were confident it would ever do so
again. Irresponsible policies in Washington had quadrupled the national debt over the previous
12 years. The budget deficit was projected at about $300 billion for 1993 alone. Interest rates
were rising, growth was slowing. And the government, it seemed, was failing to meet its most
basic obligations.
When I took office we charted a new, fiscally responsible course for a new economy.
And today, following that path, Americans have created the longest peacetime expansion in our
history -- with nearly 18 million new jobs, wages rising at twice the rate of inflation, the highest
home ownership in history, the smallest welfare rolls in history, and the lowest peacetime
unemployment since 1957.
Last year, for the first time in three decades, we turned red ink into black: our surplus of
nearly $70 billion is the largest in history. And it is projected to be only the first of many: as I
said in my State of the Union Address, America is on course for budget surpluses for the next
quarter century. And our estimates, optimistic as they sound, are even more conservative than
those of the Congress.
Indeed, America's economic house is in order, and it stands strong. We can see now that
balancing the budget -- an idea that once might have seemed almost abstract or academic -- has
made a real difference in people's lives. Fiscal discipline has transformed the vicious cycle of
budget deficits and high interest rates into a virtuous cycle of budget surpluses and low interest
rates. When interest rates fall, more Americans can buy homes, pay mortgages, retire student
loans, start new businesses. And when deficits disappear, capital -- more than $1 trillion so far --
is liberated to create wealth, create jobs, and create opportunity at every level of our economy.
1
Simply put, the less money we tie up in publicly held debt, the more money we free up for
private sector investment. In an age of worldwide capital markets, this is the way a nation
prospers -- by saving and investing, not by running big deficits.
The budget I submit today keeps America on that prudent path toward a more prosperous
future. It has taken hard work and tough choices to get this far. It will take more of the same to
move ahead. But with our economy expanding and our budget surplus growing, we can walk
that path with confidence rising. We can and therefore we must -- seize this opportunity to
meet America's long-term challenges.
OLD
The first budget of the next Century is our next step toward saving Social Security. I
propose, as I said in my State of the Union Address, to commit 60 percent of the surplus for 15
1)
years to save Social Security investing a small portion in the private sector, just as any private
or state pension would do to earn higher returns. This will keep Social Security sound for 55
years. And if we work together and make tough choices, we can save Social Security for the
next 75 years.
My balanced budget also takes steps to strengthen Medicare. Already, we have extended
2)
the life of the Medicare trust fund by 10 years -- but we can save it for at least another decade. I
have also proposed that we use one out of every six dollars in the surplus for the next 15 years to
guarantee the soundness of Medicare. This budget makes a down payment toward that goal. It
ed-
also commits 11 percent of the surplus to establish universal savings accounts -- U.S.A.
after-
Accounts -- that will help Americans to invest, to save for retirement, and to share more fully in
chool,
our nation's wealth.
annumer
This is the economically sound and fiscally responsible course for the new century. For if
sen
we do this, if we lock in the surplus to save Social Security and strengthen Medicare, we will not
YOUNG
only fulfill our obligation to older Americans. We will achieve something for younger
Americans, for future generations, that is truly remarkable. We will achieve the lowest level of
3)ed 3)
publicly held debt since America entered the First World War, in 1917.
a)debt a) debt
[Point to chart] You see, even though we have cut the deficit and balanced the budget,
America is still paying for the irresponsibility of those 12 years -- for all those past budget
deficits. That's what the national debt is -- it's the sum total of all those deficits, accruing
interest, waiting to be paid down. Today, as a share of the economy, the debt is 44 percent.
Now, that is down considerably, as you can see, since 1993; but it is still too high. As I said
earlier, it consumes capital that would be better invested by the private sector. And that is why
the very best thing we can do with our surplus is not to squander it in the short term, but to pay
down the debt for the long term -- and lifting the crushing burden of debt from the shoulders of
our children. Either we are going to pay it down, or they are. I think it is responsible and right
-- that we do it ourselves.
Saving Social Security strengthening Medicare paying down the national debt. They
2
are challenges this budget begins to meet, and, over the coming months and years, they are
challenges we Americans should meet together -- across party lines and generations. Because
there is at least one thing that unites us all. None of us wants the choices we made yesterday --
or defer today -- to burden our children tomorrow. Instead, the decisions we make here and now
should empower our children, should give them the strength and freedom to make their time even
better than our own. Thank you.
we have a debt
Q is simple - pay off now,
Duile can; or say children
can ?
Co I am in - soc Sec
(near top ?)
3
Draft 01/29/99 12:30pm
Jeff Shesol
PRESIDENT WILLIAM J. CLINTON
REMARKS ON SUBMISSION OF THE 2000 BUDGET
THE WHITE HOUSE
February 1, 1999
Acknowledgments: VP; John Podesta; Jack Lew; Gene Sperling; budget team TBD;
Cabinet members TBD; members of Congress TBD
Today I am submitting my budget for the year 2000 -- the first budget of the 21st
Century. It is a budget that charts a prudent, progressive path for America's future. It is a
balanced budget; it is fiscally responsible; and it makes vital investments in the people of our
nation.
Seven years ago, when I ran for President, I said that we had to put our fiscal house in
order. More and more Americans were coming to agree with that -- with the idea that our
government had to return to living within its means. But few were confident it would ever do so
Irrespons
again. The national debt had quadrupled in the previous 12 years. The budget deficit was
polices
from
wash
projected at about $300 billion for 1993 alone. Interest rates were rising, growth was slowing.
had
And the government, it seemed, was failing to meet its most basic obligations.
gradoupled (active voice)
When I took office we charted a new, fiscally responsible course for a new economy.
And today, following that path, Americans have created the longest peacetime expansion in our
history with nearly 18 million new jobs, wages rising at twice the rate of inflation, the highest
home ownership in history, the smallest welfare rolls in history, and the lowest peacetime
unemployment since 1957.
Last year, for the first time in three decades, we turned red ink into black: our surplus of
nearly $70 billion is the largest in history. And it is projected to be only the first of many: as I
said in my State of the Union Address, America is on course for budget surpluses for the next
quarter century. And our estimates, optimistic as they sound; are even more conservative than
those of the Congress.
Indeed, America's economic house is in order, and it stands strong. We can see now that
balancing the budget -- an idea that once might have seemed almost abstract or academic -- has
made a real difference in people's lives. Fiscal discipline has transformed the vicious cycle of
budget deficits and high interest rates into a virtuous cycle of budget surpluses and low interest
rates. When interest rates fall, more Americans can buy homes, pay mortgages, retire student
loans, start new businesses. And when deficits disappear, capital -- more than $1 trillion so far --
is liberated to create wealth, create jobs, and create opportunity at every level of our economy.
Simply put, the less money we tie up in publicly held debt, the more money we free up for
1
private sector investment. In an age of worldwide capital markets, this is the way a nation
prospers -- by saving and investing, not by running big deficits.
The budget I submit today keeps America on that prudent path to a more prosperous
future. It has taken hard work and tough choices to get this far. It will take more of the same to
move ahead. But with our economy expanding and our budget surplus growing, we can walk
that path with confidence rising. We can -- and therefore we must -- seize this opportunity to
meet America's long-term challenges.
The first budget of the next Century is our next step toward saving Social Security. I
propose, as I said in my State of the Union Address, to commit 60 percent of the surplus for 15
years to save Social Security investing a small portion in the private sector, just as any private
or state pension would do to earn higher returns. This will keep Social Security sound for 55
years. And if we work together and make tough choices, we can save Social Security for the
next 75 years.
My balanced budget also takes steps to strengthen Medicare. Already, we have extended
the life of the Medicare trust fund by 10 years but we can save it for at least another decade. I
have also proposed that we use one out of every six dollars in the surplus for the next 15 years to
guarantee the soundness of Medicare. This budget makes a down payment toward that goal. It
also commits 11 percent of the surplus to establish universal savings accounts -- U.S.A.
Accounts -- that will help Americans to invest, to save for retirement, and to share more fully in
our nation's wealth.
This is the economically sound and fiscally responsible course for the new century. For if
we do this, if we save Social Security and strengthen Medicare, we will not only fulfill our
obligation to future generations. We will achieve something else that is truly remarkable, and
truly lasting. We will achieve the lowest level of publicly held debt since America entered the
First World War, in 1917.
[Point to chart] You see, even though we have cut the deficit and balanced the budget,
America is still paying for past irreponsibility -- for all those past budget deficits. That's what
the national debt is -- it's the sum total of all those deficits, accruing interest, waiting to be paid
down. Today, as a share of the economy, the debt is 44 percent. Now, that is down
years-
considerably, as you can see, since 1993; but it is still too high. As I said earlier, it consumes
capital that would be better invested by the private sector. And that is why the very best thing we
can do with our surplus is not to squander it in the short long- term, term but to make a long term term loching in
commitment to paying down the debt to for the Social Security, paying down the debt to Medicare, the smpluses
and lifting the burden of debt from the shoulders of our children. It is the right thing to do.
(herer
elsewhere)
Our fiscal discipline makes it possible to pay down the debt while investing in our
people. My budget
2
Pre - res mtg-
for 12 43., R+B + ran up debts
we me paying down the R -B debt
goe: whose going to pay it off ? us or our children? ?
Daty to parents + hids
4
soc + med
w/ ed f w/ paging lown debt
No goodies.
This proposal will pan off delet accum over 12 yrs.
before l toole office,
will lift burden from children,
f will save sor Sec.
shd not squander the opp
circulation -
Draft 01/29/99 11:00am
timetable -
Jeff Shesol
PRESIDENT WILLIAM J. CLINTON
REMARKS ON SUBMISSION OF THE 2000 BUDGET
THE WHITE HOUSE
February 1, 1999
Today I am submitting my budget for the year 2000 -- the first budget of the 21st
Century. It is a budget that charts a prudent, progressive path for America's future. It is a
balanced budget; it is fiscally responsible; and it makes vital investments in the people of our
nation.
Seven years ago, when I ran for President, I said that we had to put our fiscal house in
order. More and more Americans were coming to agree with that -- with the idea that our
government had to return to living within its means. But few were confident it would ever do so
again. The national debt had quadrupled in the previous 12 years. The budget deficit was
projected at about $300 billion for 1993 alone. Interest rates were rising, growth was slowing.
And the government, it seemed, was failing to meet its most basic obligations.
When I took office we charted a new, fiscally responsible course for a new economy.
And today, following that path, Americans have created the longest peacetime expansion in our
history -- with nearly 18 million new jobs, wages rising at twice the rate of inflation, the highest
home ownership in history, the smallest welfare rolls in history, and the lowest peacetime
unemployment since 1957.
Last year, for the first time in three decades, we turned red ink into black: our surplus of
nearly $70 billion is the largest in history. And it is projected to be only the first of many: as I
said in my State of the Union Address, America is on course for budget surpluses for the next
quarter century. And our estimates, optimistic as they sound, are even more conservative than
those of the Congress.
Indeed, America's economic house is in order, and it stands strong. We can see now that
balancing the budget -- an idea that once might have seemed almost abstract or academic -- has
made a real difference in people's lives. Fiscal discipline has transformed the vicious cycle of
budget deficits and high interest rates into a virtuous cycle of budget surpluses and low interest
rates. When interest rates fall, more Americans can buy homes, pay mortgages, retire student
loans, start new businesses. And when deficits disappear, capital -- more than $1 trillion so far --
is liberated to create wealth, create jobs, and create opportunity at every level of our economy.
Simply put, the less money we tie up in publicly held debt, the more money we free up for
private sector investment. In an age of worldwide capital markets, this is the way a nation
prospers -- by saving and investing, not by running big deficits.
The budget I am submitting today represents another step along that prudent path to a
more prosperous future
Draft 01/29/99 9:30am
Jeff Shesol
PRESIDENT WILLIAM J. CLINTON
REMARKS ON SUBMISSION OF THE 2000 BUDGET
THE WHITE HOUSE
February 1, 1999
Acknowledgments: VP; Jack Lew; Gene Sperling; economic team TBD; Cabinet
members TBD; members of Congress TBD
Today I am submitting my budget for the year 2000 -- the first budget of the 21st
Century. It is a budget that charts a prudent, progressive path for America's future. It is a
balanced budget; it is fiscally responsible; and it makes vital investments in the people of our
nation.
Seven years ago, when I ran for President, I said that we had to put our fiscal house in
order. More and more Americans were coming to agree with that -- with the idea that our
government had to return to living within its means. But few. were confident it would ever do so
again. The national debt had quadrupled in the previous 12 years. The budget deficit was
projected at about $300 billion for 1993 alone. Interest rates were rising, growth was slowing.
And the government, it seemed, was failing to meet its most basic obligations.
When I took office we charted a new, fiscally responsible course for a new economy.
And today, following that path, Americans have created the longest peacetime expansion in our
history -- with nearly 18 million new jobs, wages rising at twice the rate of inflation, the highest
home ownership in history, the smallest welfare rolls in history, and the lowest peacetime
unemployment since 1957.
Last year, for the first time in three decades, we turned red ink into black: our surplus of
nearly $70 billion is the largest in history. And it is projected to be the first of many: as I said in
my State of the Union Address, America is on course for budget surpluses for the next quarter
century. Our estimates, optimistic as they sound, are even more conservative than those of the
Congress.
Indeed, America's economic house is in order, and it stands strong. Fiscal discipline has
transformed the vicious cycle of budget deficits and high interest rates into a virtuous cycle of
budget surpluses and low interest rates. And low interest rates, as every American knows, make
it easier to buy homes, pay mortgages, retire student loans, start new businesses. This is how
balancing the budget -- something that might seem almost abstract or academic has made a real
difference in the lives of our people.
Imagine for a moment that we had not cut the deficit in 1993 and kept cutting. This year
1
alone, we would pay $300 billion in interest on the debt. So instead we cut the deficit and kept
cutting. We cut the deficit to zero. And in an age of worldwide capital markets, this is the way a
nation prospers -- by saving and investing, not by running big deficits. The less money we tie up
in publicly held debt, the more money we free up for private sector investment. In fact,
eliminating the deficit has liberated more than $1 trillion in capital -- helping to create wealth,
create jobs, and create opportunity at every level of our economy.
Now, with the balanced budget I am submitting today, we can do something every bit as
remarkable: we can pay down the public debt. As I said in my State of the Union Address: by
saving Social Security, by strengthening Medicare, we will achieve the lowest level of publicly
held debt since the United States entered World War One. Debt will account for the lowest share
of our economy since 1917.
We will be cutting dramatically the amount we have to pay for past irresponsibility. Not
only are we going to make it easier for families but easier for govt to balance books and be
responsible. And we will be lifting burden from our children.
So as I submit a new budget for the next century, our economy is expanding, our budget
surplus is growing, our confidence is rising.
2. Good tomorrow: relieves our children of the crushing burden of debt; frees them to
face the challenges of their time, and to raise our grandchildren.
2
Draft 01/28/99 7:30pm
Jeff Shesol
PRESIDENT WILLIAM J. CLINTON
REMARKS ON SUBMISSION OF THE 2000 BUDGET
THE WHITE HOUSE
February 1, 1999
Acknowledgments: VP; Jack Lew; Gene Sperling; economic team TBD; Cabinet
members TBD; members of Congress TBD
Today I am submitting my budget for the year 2000 -- the first budget of the 21st
Century. It is a budget that charts a prudent, progressive path for America's future. It is a
balanced budget; it is fiscally responsible; and it makes vital investments in the people of our
nation.
Seven years ago, when I ran for President, I said that we had to put our fiscal house in
order. More and more Americans were coming to agree with that -- with the idea that our
government had to return to living within its means. But few were confident it would ever do so
again. The national debt had quadrupled in the previous 12 years. The budget deficit was
projected at about $300 billion for 1993 alone. Interest rates were rising, growth was slowing.
And the government, it seemed, was failing to meet its most basic obligations.
When I took office we charted a new, fiscally responsible course for a new economy.
And today, following that path, Americans have created the longest peacetime expansion in our
history -- with nearly 18 million new jobs, wages rising at twice the rate of inflation, the highest
home ownership in history, the smallest welfare rolls in history, and the lowest peacetime
unemployment since 1957.
America's economic house is in order, and it stands strong. Fiscal discipline has
transformed the vicious cycle of budget deficits and high interest rates into a virtuous cycle of
budget surpluses and low interest rates. We have learned a simple lesson in common-sense
economics. In an age of worldwide capital markets, and in the long run, nations prosper by
saving and investing, not by running big deficits. The less money we tie up in publicly held
debt, the more money we free up for private sector investment. That, in turn, creates wealth,
creates jobs, and creates opportunity at every level of our economy. And as interest rates fall
further, it becomes easier for Americans to buy homes, pay mortgages, retire student loans, start
new businesses.
This picture of prosperity is not some wishful vision of the future; it is a reality today.
Americans have worked hard to achieve it. We have made some tough choices. And I believe
they were the right ones. If we had not cut the deficit in 1993 and kept cutting, we would pay
$300 billion in interest on the debt this year alone. So: we cut and kept cutting. Last year, for
1
the first time in three decades, our bookkeepers stopped marking in red ink and started using
black. Our surplus of nearly $70 billion is the largest in history. And it is projected to be the
first of many: as I said in my State of the Union Address, America is on course for budget
surpluses for the next quarter century.
The budget surplus is a powerful symbol of our progress. It is also an opportunity -- an
unprecedented opportunity to
By lowering debt to lowest share of econ since 1917, we are dramatically cutting amt we have to
pay for past irresponsibility. Not only are we going to make it easier for families but easier for
govt to balance books and be responsible. And we will be lifting burden from our children.
So as I submit a new budget for the next century, our economy is expanding, our budget
surplus is growing, our confidence is rising.
2. Good tomorrow: relieves our children of the crushing burden of debt; frees them to
face the challenges of their time, and to raise our grandchildren.
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