April 6, 2001

Washington, D.C.- The key to being fiscally responsible is to establish a sound budget plan and stick to it. That is as true for governments as it is for households. Congress is now in the process of reviewing and accepting the budget blueprint President Bush presented to Congress and the American people in February. It's a process not much different than the process that takes place at kitchen tables each year in this country. First, determine what items are the most important to fund. Then determine how much money is available to spend for the next year. Next pay back anyone to whom debts are owed. And be sure to set aside something for expenses looming in the future.

Education is defiantly a top priority. No other investment pays dividends as big as education, so we're increasing education spending by $4.6 billion. Just as important as funding is local control. I believe in giving local schools and communities the maximum amount of decision-making control possible. The people making decisions about children should be the people who know their names, not bureaucrats in Washington.

Agriculture funding must be maintained to ensure we protect the nation's food supply. In anticipation of the needs of agriculture producers, we have established a $513 billion contingency reserve fund that can be tapped for increased agriculture spending in the coming year. This will help provide the needed resources to address the current crisis of continued low prices and rising energy and production costs.

An area we have worked in recent years to increase funding for has been defense. We must strengthen our military and improve the quality of life of our current troops, as well as our veterans. We will increase defense spending by $14.3 billion next year, to improve the quality of life of our troops and to help meet the new threats in the post-Cold War world. And we have a duty to try to pay the debt we owe to our veterans. We will provide $51 billion for veterans benefits and services, including medical care, benefits processing and national cemeteries.

We as a nation have a huge financial burden looming on the horizon that we must prepare for. The increasing number of retirees will put a strain on Social Security and Medicare that we have to address. We have locked away every penny of the $2.6 trillion budget surplus from Social Security to be used only for Social Security. And we will spend every dime of Medicare receipts for Medicare, and Medicare only. We will increase our Medicare spending to $229.1 billion next year. And we will work to guarantee that all seniors have access to prescription drug coverage within the Medicare program.

The latest estimate for the budget surplus is $5.6 trillion over the next 10 years. But that isn't the government's money, it's the people's money. We'll have to pay back the amount we overcharged the American people. The quickest and most efficient way to do that is through a tax cut for working Americans.

Many of the self-help experts on personal budgeting and creating a nest egg are now espousing a philosophy of "paying yourself first." The thinking is that if you prioritize setting something aside from your paycheck before you pay the bills, mortgage, etc., then you are likely to save more than if you try to find something left over at the end of each month. It's a variation on the "out of sight, out of mind" philosophy, and it's very similar to what we passed in the House last month. We set aside $1.6 trillion in tax relief to the American people, paying them first, because we know that if the money is left in Washington, it will be spent. The House has reduced the marginal tax rates for every American that pays taxes. We have passed bills to eliminate both the marriage penalty, or the increased tax bill for married couples that similar single taxpayers don't pay, as well as the death tax, the unfair tax paid by small businesses and farmers upon the death of a loved one.

The House passed a budget with these priorities - funding for education and defense, reserving the surpluses for Social Security and Medicare, and tax cuts - in March. The Senate passed a similar plan last week. We will work out a plan in the coming weeks to send to the President. We have a duty to pass this fiscally responsible budget for the American people.