THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Wednesday, February 8, 1995 TAG: 9502080026
SECTION: FRONT PAGE: A10 EDITION: FINAL
TYPE: Editorial
LENGTH: Medium: 60 lines
President Clinton has submitted a status quo budget to Congress. It anticipates a 5 percent increase in revenues and calls for a 5 percent increase in spending. It mounts no crusades for major new programs, entitlement reform or deficit reduction. Indeed, it accepts $200 billion annual deficits as far as the eye can see.
Clinton does propose further streamlining. Departments would be reduced. The civilian government work force would drop 9 percent in Clinton's first term. Cuts are suggested for 131 programs, and some, like the ICC, would be eliminated.
Ten years ago, this would have been a bold step for a Democrat. Today, it's a finger-in-the-dike against the Republican tide, an empty gesture.
For years, the budgets of Republican presidents have been pronounced dead on arrival in a Democratic Congress. Now the tables are turned. Republicans may get some partisan mileage out of denouncing the Clinton budget, but that will be another empty gesture. The budget is now the Republicans' responsibility. Will they put the country on the promised path to balance by 2002, or flinch?
They say they'll reveal their plans by April or May. Not long ago, they said they'd pass spending cuts first, then tax cuts. Now there's talk of a single bill combining tax and spending cuts. That's fine. But if they propose cutting taxes first and spending later, look out. That's how Congress has run up $1 trillion in debt every four years since Ronald Reagan came to Washington.
The problem with the budget remains entitlements. They consume 60 percent of government dollars - and rising. Put them and defense off-limits and only 16 percent of the budget is available for cutting. The Republicans need to cut $700 billion out of $1.25 trillion in five years in order to reach balance by 2002. Since more than half of discretionary spending would go, entitlements, defense or both will likely end up back on the table.
Republicans say they can save $75 billion to $150 billion from Social Security by reducing cost-of-living increases. The CBO anticipates 10.8 percent annual growth in Medicaid and Medicare. Republicans say turning Medicaid over to the states could reduce annual increases to 5 percent a year. Is that realistic or a rosy scenario? It's not easy to tell.
Republicans want to cut food stamps and other welfare spending. They are reticent about cuts in Medicare, veteran benefits and farm subsidies - the remaining big-ticket items. But there will be no victory for the timid. Rep. John Kasich has plainly stated, ``You can't have people who are afraid to break china when you've got to go at this with a sledgehammer.''
Are the American people ready for the consequences of budget by blunt object? President Clinton got very little reward for trying to reduce the deficit modestly and reform health care radically, so he's probably just as happy to watch the hammering from the sidelines. He undoubtedly thinks that when the public sees the Republican wrecking crew in action, he and his tepid budget will begin to look attractive by comparison. Well, he can always hope. by CNB