The budget proposal President Bush sent to Congress in April was based on a projected $281 billion budget surplus resulting from several years of reduced government spending without significant corresponding reductions in tax rates.

Then the economy turned sour, the first phases of President Bush's tax cutting program took effect and by the middle of August, the White House Office of Management and Budget (OMB) projected that a surplus of only $158 billion would exist at the end of fiscal 2001.

On August 28, the non-partisan Congressional Budget Office (CBO) released an even gloomier surplus prediction of only $153 billion. Based on that figure, CBO analysts projected that in order to fully fund the programs and spending included in the White House's original budget proposal, some $9 billion would have to be spent from the Social Security surplus fund this year, coupled with withdrawals from the Social Security retirement fund in fiscal years 2003 and 2004.

Not so, according to White House Chief of Staff Andy Card. "The money is there for the budget put forward by the president to Congress," Card stated during a Sept. 4 appearance on ABCNEWS' Good Morning America. "There's plenty of money to go around to meet the priorities of America."

Suggesting that the real danger to the budget came not from the reduced surplus, but from congressional overspending, Card stated, "It's what got us in trouble in the past and we will not let overspending happen again."

President Bush has threatened to veto any of the 13 spending bills that would require use of the Social Security fund.

While spending from the Social Security surplus fund would have no effect on benefits or payments, it would slow down the rate at which the government can reduce the national debt.

On Sept. 5, House Minority Leader Richard A. Gephardt, (D-MO) said he would ask President Bush to send Congress a completely revised budget proposal based on the dwindling surplus.

President Bush, however, told Senate leaders on Sept. 5, that there will be enough funds available to cover all 2002 federal programs and his tax cuts as long as Congress stays within the spending limits set in the approved budget resolution - H. Con. Res. 83.

Other Legislation May Have to Wait
With a budget crisis now large on the horizon, some legislation seen as critical by both Republicans and Democrats may not be considered during this session of Congress.

Education reform, national energy policy, patients bill of rights, Medicare prescription drug coverage, campaign finance reform and President Bush's faith-based initiative program are just a few of the major issues now standing little chance of being acted on during the current session of Congress.