Monday, August 27, 2001

Report Says Lower Surplus Will Affect Social Security President Bush's tax cut and the nation's economic downturn will force the government to take $9 billion out of Social Security this year to pay for other operations, breaking a bipartisan commitment in Congress, congressional analysts reported Monday. The nonpartisan Congressional Budget Office, offering a more pessimistic view of the government's finances than the Bush administration did last week, estimating the total budget surplus for the fiscal year that ends Sept. 30 at $153 billion -- down $122 billion from its May estimate. CBO says Social Security will be tapped for $9 billion in fiscal 2001. After a small non-Social Security surplus of $2 billion in fiscal 2002, CBO projects the government will use $18 billion out of the retirement program in 2003 and $3 billion in 2004.