Surpluses May Grow

May 3, 2000

The strong economy could bring $64 billion more than officially expected into the government’s coffers, swelling the surplus and providing new funds for tax cuts or spending increases, THE WASHINGTON TIMES reports.

Quoting Wall Street analysts who track Treasury statistics, the paper says experts expect another in what has been an annual series of "April surprises" that brought in more revenue than budget agencies projected.

Depending on what Congress chooses to do with the money if it materializes, the funds could provide relief for cash-strapped Congressional appropriators, who will take up their first 2001 bills this week. Staff for the funding panels are privately fearful whether they can pass their bills without an additional infusion of cash at some point. In the agriculture spending bill, for example, higher interest rates – which affect the amount of subsidies needed for lending programs – mean that holding spending at last year’s levels is effectively a cut in most programs.

Both the House and Senate appropriations committees will consider 2001 agriculture spending on Thursday.