Thursday, August 16, 2001

Administration Reconfigures the Budget Pie The Bush administration is making an accounting change involving Social Security that will free $4.3 billion for Congress to use, officials said today. The increase could be important as the White House and its Republican allies in Congress try to fend off Democratic assertions that President Bush's tax cuts have drained too much of the surplus to meet government spending priorities. Even with the change, the revised surplus projections for the fiscal year ending Sept. 30 will be much lower than the administration and Congressional Budget Office projected earlier this year. The $275 billion surplus, including Social Security, that was forecast by the budget office in May could fall to roughly $160 billion because of the tax cut and slowing economy. Administration officials, speaking on condition of anonymity, said the accounting change more correctly describes revenue from payroll taxes, those dedicated to Social Security and Medicare. "There's a general consensus that the Social Security surplus should be used for debt reduction," one official said. Democrats described the change as an unprecedented accounting gimmick intended to mask the impact of Mr. Bush's 10-year, $1.35 trillion tax cut on the budget. http://www.nytimes.com/2001/08/16/national/16BUDG.html