DECADE, ONE GROUP OF PEOPLE REDUCING THE DEBT THAT MUCH. I'M
           FINISHED, MR. PRESIDENT. I UNDERSTAND MY TIME HAS EXPIRED. I
           THANK THE SENATE FOR PERMITTING ME TO DO THIS. I'LL COME TO THE
           FLOOR AT A LATER TIME AND EXPRESS WHY I AM CONVINCED THAT THE
           SURPLUSES ARE FOR REAL AND THAT AS A MATTER OF FACT THERE ARE
           APT TO BE MORE RATHER THAN LESS OVER THE NEXT DECADE BECAUSE OF
           WHAT'S HAPPENING IN THE AMERICAN ECONOMY. I YIELD THE FLOOR.
           

           THE PRESIDING OFFICER: THE SENATOR FROM SOUTH CAROLINA IS
           RECOGNIZED.
           

           MR. HOLLINGS: MR. PRESIDENT, I ASK CONSENT FOR AN ADDITIONAL
           FIVE MINUTES ON MY ALLOTTED TIME.
           

           THE PRESIDING OFFICER: WITHOUT OBJECTION.
           

           MR. HOLLINGS: I THANK THE DISTINGUISHED CHAIRMAN. THE REASON I
           ASK FOR THE EXTRA TIME IS IN ADDRESSING THE SENATE WITH RESPECT
           TO THE EDUCATIONAL SAVINGS ACT, I WAS GOING TO MAKE THE POINT,
           OF COURSE, THAT WE WEREN'T SAVING AND WE HAD NO MONEY FOR THE
           PARTICULAR ACT. AND THIS ACT ITSELF, OR PROPOSAL, WAS SOME $2
           BILLION SHY. BUT THE DISTINGUISHED SENATOR FROM NEW MEXICO, THE
           CHAIRMAN OF OUR BUDGET COMMITTEE, SAYS THE SENATOR FROM SOUTH

           CAROLINA CALLS THE SURPLUS A DIFFERENT FROM WHAT HE CALLS A
           SURPLUS AND WHAT HAVE YOU. LET ME GO RIGHT TO THE MINUTE HERE
           ON 2/23, THE PUBLIC DEBT TO THE PENNY. MR. PRESIDENT, YOU CAN
           GO TO YOUR INTERNET, AND UNDER THE LAW, THE DEPARTMENT OF
           TREASURY LISTS TO THE PENNY AND BY THE MINUTE JUST EXACTLY WHAT
           THE PUBLIC DEBT IS. IT ISN'T WHAT THE SENATOR FROM MEXICO CALLS
           A DEBT OR SURPLUS. IT ISN'T WHAT THE SENATOR FROM SOUTH

           CAROLINA CALLS A DEBT OR SURPLUS. IT'S WHAT WE ALL CALL A DEBT
           UNDER THE PUBLIC LAW, AND THE PUBLIC DEBT TO THE MINUTE RIGHT
           NOW -- I JUST GOT DID OFF THE INTERNET TWO MINUTES AGO. OUR
           DEBT NOW IS $5,744,135,736,409.24. I ASK UNANIMOUS CONSENT TO
           INCLUDE THIS IN THE RECORD AT THIS PARTICULAR POINT.
           

           THE PRESIDING OFFICER: WITHOUT OBJECTION.
           

           MR. HOLLINGS: NOW, MR. PRESIDENT. WE FIND THAT WHILE IT'S UP TO
           5.7, WE'VE GOT THE ARTICLE HERE FROM OCTOBER WHEN WE REPORTED
           AT THE END OF THE FISCAL YEAR, SEPTEMBER 30, 1999, THAT FOR
           THAT FISCAL YEAR YEAR, AND WE FIND THAT THE -- IT WAS DATED,
           OH, OCTOBER 27, THE DEPARTMENT OF TREASURY SAID WE BEGAN THE

           YEAR WITH A DEBT OF $5,478,70400. AND WE ENDED THE FISCAL YEAR
           1999, MR. PRESIDENT, NOT WITH A SURPLUS, BUT WITH A DEFICIT OF
           $5,606,486,000,000. NOW IT'S NOT ANY MONKEYSHINES ON THIS
           SENATOR'S PART. IT'S THE MONKEYSHINES ON THE MAJORITY OF THIS
           BODY ALL RUNNING AROUND CALLING SURPLUS, SURPLUS, SURPLUS, WHEN
           THERE ISN'T ANY SURPLUS. MR. PRESIDENT, LET'S GO DIRECTLY TO

           YESTERDAY'S RELEASE BY THE DEPARTMENT OF TREASURY, AND YOU'LL
           FIND ON TABLE 6, PAGE 20, THAT THEY BEGAN THE YEAR WITH A DEBT
           
           LIKE I'VE JUST REPORTED: $5,606,486,000,000. AND NOW AT THE
           CLOSE OF THE MONTH -- THAT'S OF JANUARY -- AT THE CLOSE OF THAT

           MONTH IT WAS $5,660,780,000,000. THE TREASURY DEPARTMENT HAS
           ALREADY BORROWED THIS FISCAL YEAR, BEGINNING OCTOBER 1 LAST
           YEAR, THE FISCAL YEAR 2000 IT'S ALREADY BORROWED $54 BILLION.
           PLEASE LET'S TELL THE SECRETARY OF TREASURY THAT IF WE'VE GOT
           SURPLUSES, QUIT BORROWING MONEY. WHAT'S HE BORROWING MONEY FOR?
           IT'S TIME THIS CHARADE STOPS. LET'S PUT UP THE MAJOR CHART, AND
           I'LL ASK UNANIMOUS CONSENT THAT THE HOLLINGS BUDGET REALITIES

           -- I ASK UNANIMOUS CONSENT TO INCLUDE IN THE RECORD AT THIS
           POINT THESE BUDGET REALITIES.
           

           THE PRESIDING OFFICER: WITHOUT OBJECTION.
           

           MR. HOLLINGS: MR. PRESIDENT, WHEN THE DISTINGUISHED SENATOR,
           THE CHAIRMAN OF THE BUDGET COMMITTEE, SAYS WE ENDED 1998 WITH
           THE SO-CALLED BALANCED BUDGET ACT OF 1997, IT WAS SO
           SUCCESSFUL, HE SAID WITH ALMOST $70 BILLION -- IT WAS 69.2 --
           IN ORDER TO STICK THAT FIGURE HE HAD TO BORROW $178.2
           
           BILLION FROM THE TRUST FUNDS: SOCIAL SECURITY, HIGHWAY,

           AIRPORT, MILITARY RETIREES, CIVIL SERVICE RETIREES AND
           OTHERWISE. EVEN MEDICARE. AND THEN WHEN HE SAYS THAT LAST YEAR
           WE ENDED UP WITH A SURPLUS OF $124 -- ALMOST $125 BILLION, YOU
           HAD TO BORROW $251.8 BILLION FROM THE TRUST FUNDS. SO ACTUALLY
           THE ACTUAL DEBT OR DEFICIT FOR THE FISCAL YEAR 1998 WAS $109

           BILLION. AND FOR 1999 IT WAS $127.4 BILLION. THERE THEY ARE
           RIGHT SO EVERYONE CAN SEE. NOW, YES, WE WERE REDUCING IN THAT
           FOUR TO FIVE-YEAR PERIOD THE DECIT EACH YEAR UNTIL LAST YEAR.
           FOR EXAMPLE, WE WENT FROM $109 UP TO 127.4. SO THAT WAS AN
           INCREASE. MR. PRESIDENT, LET ME STATE VERY CLEARLY WHAT'S BEEN

           GOING ON, BECAUSE THEY USED TO TALK OF A UNIFIED BUDGET AND THE
           UNIFIED DEFICIT. NOW THEY TALK OFF-BUDGET AND ON-BUDGET AND
           PUBLIC DEBT, WHICH MISLEADS YOU BECAUSE THE OFFICIAL RECORD AND
           LAW AND UNITED STATES DEPARTMENT OF TREASURY -- NOT
           CONGRESSIONAL BUDGET OFFICE WITH ESTIMATES AND GUESSES FOR THE
           NEXT FIVE YEARS, NOT WHAT SENATOR HOLLINGS, NOT WHAT SENATOR
           DOMENICI, BUT WHAT THE LAW IS AND THE ACTUAL ACCOUNTANTS. YOU
           KNOW, ECONOMISTS CAN LIE, BUT ACCOUNTANTS CAN'T. THEY'VE GOT TO

           KEEP THE ACTUAL RECORD AND GIVE YOU THE TRUTH. SO LET ME GET
           THOSE BORROWED TRUST FUNDS NOW AND SHOW JUST EXACTLY WHAT'S
           GOING ON, BECAUSE THEY THOUGHT THAT THEY BORROWED -- THEY COULD
           BORROW ENOUGH FROM THE OTHER TRUST FUNDS -- I'M SAYING OTHER
           THAN SOCIAL SECURITY, AND AND THEREBY THEY COULD SAY, WELL,
           WE'RE NOT GOING INTO SOCIAL SECURITY. OF COURSE THEY ARE. YOU
           FIND OUT ALREADY THAT SOCIAL SECURITY, WE OWE AT THE END OF THE

           FISCAL YEAR $855 BILLION TO SOCIAL SECURITY, $1554 PLUS 27 IS
           181 TO MEDICARE. WE OWE MILITARY RETIREES 141 BILLION, CIVILIAN
           RETIREMENT $492 BILLION. GO RIGHT ON DOWN. WE OWE
           $1,869,000,000,000 TO THE TRUST FUNDS. YOU CAN TALK ABOUT THE
           WONDERFUL RECORD AND ALL, BUT THIS IS WHAT THE SENATOR FROM
           SOUTH CAROLINA IS LOOKING AT, BECAUSE THAT'S THE DEBT. WHEN THE

           YEAR 2013 COMES ALONG AND WE ALREADY OWE NOT JUST IN 2000 $1.9
           TRILLION, BUT WE'LL OWE NEARLY $3 TRILLION OR $4 TRILLI TO
           SOCIAL SECURITY, YOU'VE GOT TO GO OUT AND REDEEM THE BONDS.
           THAT'S WHEN INFLATION GOES UP. THAT'S WHEN YOU START INTO THE
           MARKET. OR OTHERWISE FOR MILITARY AND CIVILIAN RETIREMENT AND
           WHAT HAVE YOU. NOW WHAT I'VE DONE IS GONE TO EACH ONE OF THE
           TRUST FUNDS, AND WITH ME LIMITED TIME I WILL NOT INCLUDE ALL OF
           THEM IN THE RECORD, BUT YOU TALK ABOUT HEREBY CREATED ON THE

           BOOKS OF THE TREASURY OF THE UNITED STATES A TRUST FUND TO BE
           KNOWN AS THE FEDERAL -- SURVIVORS AND SO FORTH AND SO ON. MR.
           PRESIDENT, ON PAGE 2 OF THE ACT, SECTION (B) IT IS HEREBY
           CREATED ON THE BOOKS OF THE TREASURY OF THE UNITED STATES A
           TRUST FUND TO BE KNOWN AS THE FEDERAL DISABILITY INSURANCE
           TRUST FUND. MR. PRESIDENT, WHEN WE DID THAT IN 1983 WE HAD A
           GRADUATED PAYROLL TAX. THAT WAS 6.25 AND 6.25 BY THE COMPLWEER

           FOR 12.5%. IT'S GONE UP, UP AND AWAY. YES, WITH HIGH
           EMPLOYMENT, LOW UNEMPLOYMENT AND THE GOOD PROSPERITY THAT WE
           HAVE HAD UNDER THE 1993 ACT -- NOT THE 1997 BALANCED BUDGET
           THING THAT THEY'RE TRYING TO POLITICALLY GO TO THE PRESIDENTIAL
           RACE AND TAKE CREDIT FOR. BUT UNDER THE 1993 ACT, MR.
           PRESIDENT, WE HAVE REALLY TRIED OUR BEST TO RETAIN A STATUS
           THERE OF TRUST WITHIN SOCIAL SECURITY, BECAUSE IN 1983 IF YOU

           WOULD HAVE SAID WE'RE GOING TO VOTE THIS INCREASE TAXES FOR
           FOOD STAMPS OR FOR KOSOVO OR FOR COURTHOUSES OR FOR DREDGING OR
           FOR SHIPS AT THE DEPARTMENT OF DEFENSE THAT THEY DON'T NEED AND
           THOSE KIND OF THINGS, YOU COULDN'T HAVE GOTTEN A VOTE ON THE
           FLOOR OF THE SENATE FOR THAT. WE PASSED IT IN TRUST TO BE USED,
           BUT THEY HAVE BEEN SPENDING IT. AND THAT'S HOW THEY'RE SPENDING
           IT. WE'VE GOT A WAY SO THEY WON'T SPEND IT, WHAT THEY CALL THE
           LOCKBOX, AND THEY WON'T LET US VOTE ON IT ANY TIME, ANYWHERE
           THAT THEY WANT TO VOTE ON A REAL LOCKBOX, CALL THIS SENATOR UP.

           I'VE HAD IT DRAWN UP BY THE ADMINISTRATOR OF SOCIAL SECURITY.
           WE WORKED WITH HIM WHEN WE WERE ON THE BUDGET COMMITTEE
           TOGETHER WITH THE SENATOR FROM NEW MEXICO, OUR PRESENT CHAIRMAN
           OF THE BUDGET COMMITTEE, AND WE'LL HAVE A TRUE LOCKBOX WHERE
           WE'LL STOP SPENDING SOCIAL SECURITY TRUST FUNDS. SO THERE IT
           IS. I GOT ON AND IT WAS BLOCKED IN THE LONG -- A LONG TIME IN
           THE BUDGET COMMITTEE IN 1990, BUT I FINALLY GOT IT OUT WITH ONE

           DISSENTING VOTE, THE SENATOR FROM TEXAS, THAT WE PUT IT OFF
           BUDGET AND QUIT USING SOCIAL SECURITY. THAT'S THE BEST WAY I
           COULD DO IT. SECTION 1330 16R789 I ASK UNANIMOUS CONSENT --
           SECTION 13 13301. I ASK UNANIMOUS CONSENT TO INCLUDE THIS PE.
           

           THE PRESIDING OFFICER: WITHOUT OBJECTION.
           

           MR. HOLLINGS: IT'S AGAINST THE LAW ITSELF, BUT WE CONTINUE TO
           VIOLATE THAT LAW. NOW EVERYBODY KNOWS THAT THE PRACTICE IN THE
           GOVERNMENT IS UNDER THE PENSION ACT, THE 1994 PENSION REFORM
           ACT THAT YOU CAN'T USE PENSION MONEY TO PAY OFF THE COMPANY
           DEBT. WE KNOW DANNY MCLEAN, THE FAMOUS PITCHER OF THE DETROIT
           TIGERS, HE DIDTHAT, WAS CHARGED WITH A FELONY, AND I THINK HE'S
           PRESENTLY SERVING TIME. IF YOU CAN FIND OUT WHAT CELL HE'S IN,

           TELL HIM NEXT TIME INSTEAD OF PAYING OFF THE COMPANY DEBT WITH
           THE PENSION FUND TO RUN FOR THE UNITED STATES SENATE. INSTEAD
           OF A JAIL TERM, YOU GET THE GOOD GOVERNMENT AWARD. YOU CAN COME
           OUT HERE AND SAY, WELL, NOW THE PUBLIC DEBT IS DOWN, THE PUBLIC
           DEBT IS DOWN. BUT IT'S LIKE TAKING YOUR VISA CARD AND YOUR
           MASTER CARD PAYING OFF THE MASTER CARD WITH THE VISA CARD. YOU
           STILL OWE THE SAME AMOUNT OF MONEY. THAT'S WHAT WE'VE BEEN
           DOING. WE PLAY A SHABBY GAME UP HERE TALKING ABOUT SURPLUSES. I
           HAD THE SECRETARY OF COMMERCE COME OVER. HE DISAPPEARED THIS

           MORNING. BUT YESTERDAY HE CAME TO MY OFFICE BEFORE HIS
           APPEARANCE AND WANTED TO TALK ABOUT SURPLUS. AND I SAID, MR.
           SECRETARY, WE DON'T HAVE ANY SURPLUS. I SAID, LOOK AT THE
           PRESIDENT'S BUDGET. HERE IT IS RIGHT HERE ON PAGE 420. YOU CAN
           SEE IT. MR. PRESIDENT, ON PAGE 420, AND I ASK 420, THIONE PAGE
           BE DUPLICATED IN THE RECORD AT THIS PARTICULAR POINT.
           

           THE PRESIDING OFFICER: WITHOUT OBJECTION.
           

           MR. HOLLINGS: MR. PRESIDENT, NOT ANY SURPLUSES AS FAR AS THE
           EYE CAN SEE, AS THE CHAIRMAN OF THE BUDGET COMMITTEE JUST SAID,
           DEFICITS FAR AS THE EYE CAN SEE. TOTAL GROSS FEDERAL DEBT
           STARTS OFF IN THE YEAR 2000, $5,606,000,000,000. NEXT YEAR IS
           GOES UP $80 BILLION. IT ADDS UP $6.8 TRILLION. SO IT GOES UP

           $1.2 TRILLION OVER THIS PERIOD TO 2013 AS FAR AS THE EYE CAN
           SEE. THE DEBT UP, UP, UP AND AWAY. NO, NO, NO SURPLUS. EVERY
           YEAR SINCE PRESIDENT CLINTON'S BEEN IN OFFICE WE'VE SPENT MORE
           IN THE CONGRESS THAN THE PRESIDENT'S BUDGET, THIS BUDGET I GOT
           IN MY HAND. AND BOTH SIDES ARE NOW CALLING FOR A TAX CUT. THE
           DEMOCRATIC SIDE IS TALKING ABOUT 350. THE REPUBLICAN SIDE IS

           TALKING ABOUT 750 OR 900. I'LL NEVER FORGET, MR. PRESIDENT,
           WHEN THE PRESIDENT WAS GOING TO GIVE HIS STATE OF THE UNION
           ADDRESS, THE DISTINGUISHED MAJORITY LEADER, THE SENATOR FROM
           MISSISSIPPI, HE SAID, GOOD GOSH, THAT'S GOING TO COST US $1
           BILLION A MINUTE! WELL, THE DISTINGUISHED PRESIDENT TALKED FOR
           AN HOUR AND A HALF. THAT'S $90 BILLION. GEORGE W. -- GEORGE W.
           HAS GOT A $90 BILLION A YEAR, $900 BILLION OVER THE TEN YEARS

           TAX CUT. MR. PRESIDENT, WE'RE SPENDING THAT KIND OF MONEY RIGHT
           NOW, 90 AND 90, $180 BILLION PLUS. WE'RE SPENDING $365 BILLION.
           YOU KNOW I CAN GIVE YOU THE REPUBLICAN PROGRAM AND THE
           DEMOCRATIC PROGRAM AND HAVE $185 BILLION TO PAY DOWN THE DEBT
           WITH THE $365 BILLION WE PAY IN INTEREST COSTS ON THE NATIONAL
           DEBT?
{END: 2000/02/24 TIME: 17-00 , Thu.  106TH SENATE, SECOND SESSION}