Clinton announces larger-than-expected surplus

WASHINGTON -- Citing it as evidence that his "economic strategy has paid off," President Bill Clinton announced Wednesday that the federal government ran a larger surplus than the administration was projecting for the 1999 fiscal year.

Speaking from the White House, Clinton detailed a report being sent to the White House from the Office of Management and Budget that shows a final surplus of $123 billion for the 1999 fiscal year, which ended September 30. The administration had previously estimated the surplus would be $115 billion.

"We have closed the book on deficits and opened the door on a new era of economic opportunity," he said.

The president also said the administration has paid down $140 billion in long-term national debt over the past two years. The report says the national debt is now $1.7 trillion lower than it was projected to be when the president took office in 1993.

A lower national debt means lower debt payments on automobiles, school loans and home mortgages, Clinton said.

"It proves that putting our fiscal house in order helps every American household," he said

From a financial standpoint, administration officials said the new surplus numbers should not have a significant impact on the ongoing budget negotiations because the administration is not scheduled to revise its surplus estimate for the current fiscal year until February.

However, the president again criticized the 2000 federal budget proposed by congressional Republicans, saying it would reverse the nation's economic good fortune.

It is the second straight year the government has generated a surplus, the first time that has happened since the Eisenhower Administration in 1956 and 1957.

Earlier, the Congressional Budget Office raised the prospect the government would get through fiscal 1999 without having to dip into the Social Security trust fund. But administration officials say the final balance sheet shows that the government dipped into the trust fund for $1 billion.

The Social Security surplus last year was $124 billion, and the rest of the government ran a $1 billion deficit, creating a combined $123 billion surplus.

Rep. Bill Archer (R-Texas), chairman of the House Ways and Means Committee, said the surplus is a victory for GOP fiscal strategies.

"This is what happens when Republicans take care of the government checkbook and hold the line against tax hikes and more spending," Archer said. "This is a huge victory for American taxpayers and is the latest in a string of victories that Congress has won for our country and our economy."

But White House Press Secretary Joe Lockhart said it was the Democratic budget in 1993 that was not supported by any Republicans that paved the way for the surplus.

"It's just an extraordinary use of selected memory," he said of Archer's statement.

CNN's Danielle Whelton and The Associated Press contributed to this report.

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Office of Management and Budget Web site

Clinton announces larger-than-expected surplus

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Wednesday, October 27, 1999