Budget Cutting 101

By Dean M. Nielsen, Editor

Last week, with apologies to Charles Dickens, it was the best of times and the worst of times.

On one hand, Republican leaders responsibly advanced a proposal to level off defense spending at $270 billion per year through the end of the century. While this is at the high end of the acceptable level, it is still acceptable because the total military budget will not increase through 2001. This, hopefully, will force the Pentagon toward a more responsible, long-term fiscal outlook.

But what does this mean for the national deficit?

Considering the GOP's Contract With America is adding more and more to the deficit balloon, it is an ominous prospect. In just one contract item, the Republicans propose tax cuts that would cost $200 billion in the first five years and $500 billion over the second five years.

Now, with proposals such as the increase in defense spending, we find how far the GOP is prepared to move to get to a balanced budget by 2002. This, according to the Congressional Budget Office, will take spending cuts totaling $1.2 trillion.

Unfortunately, Newt and Co. have only agreed on three key provisions: no cuts in Social Security, a tax cut and, as we now see, an increase in defense spending.

Therefore, according to an article in U.S. News and World Report's March 6 edition, they will have to cut spending on all other programs by more than 30 percent.

Will this one get past the special interests?

The public is way ahead of congressional leaders on this issue. According to a recent Times Mirror survey, 55 percent of respondents believe it is more important to balance the budget than to cut taxes for the middle class. This lower deficit, in turn, would free up savings and produce lower interest rates for more investment, a clear help for the middle class.

The first step to a more responsible government is a more responsible budget.

To get there, our congressional leaders must interject a new force of reason into the debate: reality.

We have lived too long on a blank check, and all programs must be up for cuts, including Social Security. Similarly, we must contemplate a tax increase.

Voters will support these cuts if there is a sense that the burden is being shared fairly.

This responsible budget is the key premise. If the GOP doesn't deliver, they should suffer the political consequences in 1996.