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American Morning

President Bush Returns to Begin Battle of the Budget

Aired August 30, 2001 - 09:04   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CNN ANCHOR: President Bush heads back to the White House today, rested and recharged after 26 days away. He may need all that energy for the challenges that are waiting for him in Washington.

Our White House correspondent Kelly Wallace joining us with a look ahead. Kelly, last we saw you, you were kind of a little hot there in Crawford, Texas. Good to see you back in Washington, D.C.

KELLY WALLACE, CNN WHITE HOUSE CORRESPONDENT: Exactly. Quite a different backdrop, Daryn. Crawford to the north lawn here at the White House. As you noted, big challenges ahead for President Bush. Perhaps one of the biggest: The budget battle.

Likely to be a very contentious budget battle with Congressional Democrats, after we learned yesterday the economy growing at the slowest rate in about eight years, and also the fact that that federal budget surplus is shrinking, and that means there is simply less money to spend.

But, you could Mr. Bush sort of threw out the opening salvo yesterday during his speech in San Antonio, Texas. He said that despite the slowing economy, he was still going to press Congress to go ahead and fund his priorities. The president calling on lawmakers to go ahead an improve increases in spending on education and defense. The president wanting lawmakers to deal with those two issues first, when they get back next week.

He's also calling for lawmakers to finish up work on his so- called Faith-based Initiative, and also on a Patients' Bill of Right.

This is a critical time for the president, because he has said that the tax cut is perfectly timed to go ahead and kick start the slowing economy. He has also said that he will not have to tap into the social security surplus to pay for additional government programs.

Democrats though see an opening here. They don't think the president can keep his promises. They think he has some explaining to do about how wants to pay for, or can pay for, everything he wants to do. They have called for a meeting with the president. White House officials say meetings are already planned. Next week Mr. Bush meeting with House and Senate Democratic leaders, and also House and Senate Republican leaders.

So, likely to be an interesting fall here at the White House. Daryn, back to you.

KAGAN: One quick question about this just-ended vacation. It came close to setting a record for longest presidential vacation ever. Democrats and Republicans each trying to put a different spin on that break away from Washington.

WALLACE: You could say everyone's in sort of serious spin mode, exactly. The administration all along has said that this was a working vacation, and they were quick to point out the number of trips the president took from his ranch, how he traveled around the country meeting with every day Americans. They think this was a very good opportunity for the president to get out of the Beltway and out of Washington, to hear what Americans think and what they feel he should do here in Washington, D.C. So, they think he's in very good shape going into the fall.

Of course Democrats though think that the president's work ethic is called into question, since he left Washington and was away from the White House for so long. So, they think that the president was hurt by this August vacation.

Again, it depends on whom you talk to about what they think of this vacation. Daryn, back to you.

KAGAN: Kelly Wallace at the White House. Thank you.

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