BALANCED BUDGET: MEDICARE IS JUST ONE KEY COMPONENT

Medicare has become the centerpiece of attention as congressional Republicans launch what is expected to be the bitterest battle of the new GOP majority: how to bring federal spending under control by the year 2002 as promised.

As one of the most expensive programs provided by the federal government, Medicare provides health care for the elderly. Many older Americans depend on Medicare for most of their medical needs, and they fear there will be drastic cuts in the program, as trumpeted by Democrats in response to Republican proposals. But there are many older Americans who are financially able to bear more, if not all, of the burden of their own health care without relying on the government. Currently Medicare makes no distinction between those who can afford to pay and those who can't.

But Medicare is only one component of a complex issue facing Congress. In addition to deciding what to do about entitlement programs in order to balance the budget, lawmakers must also consider what is regarded as a cut in federal programs as well as what to do about the nation's huge deficit and taxes.

Balancing the budget is a clear-cut objective of Republicans in Washington. The House passed a balanced-budget amendment as promised in the Contract With America. The Senate came within one vote of passage, and Sen. Bob Dole of Kansas, the Senate majority leader and presidential hopeful, thinks he may be close to another vote on the issue that would guarantee its passage.

The process for ratifying a constitutional amendment can be lengthy, and in the meantime unchecked spending would continue to add to the red ink the federal government has been swimming in since 1969. Republicans aren't waiting for constitutional guidance on balancing the budget. Instead, they are forging ahead with bold plans to restore black ink by 2002, just seven years away.

Clearly, programs like Medicare will have to be considered as part of any formula to control spending. This is where the definition of a "cut" comes into play. Democrats claim the GOP plans revealed last week would slash spending on Medicare. In fact, the Republican plans provide for continued annual increases in Medicare spending, but at a slower pace. Medicare spending is projected to grow about 10 percent a year if nothing is done. The Republicans propose holding the growth to about 7 or 8 percent a year.

Democrats who claim the GOP is making drastic cuts in Medicare are using little more than scare tactics to divert attention from the real issue: how to bring federal spending under control. But even if Republicans are successful in reaching that goal, and there is no reason to believe it can't be done, the question of the deficit still remains.

After all, balancing the budget takes care of only one aspect of the nation's finances. A balanced budget has nothing left over for reducing the trillion-plus-dollar deficit on which a major part of each year's budget is spent just on interest.

Tax cuts, then, come into play significantly. Any plan to reduce taxes must be carefully weighed against the need to not only balance the budget, but also to maintain key programs and reduce the deficit.

This is an enormous task, taken all together. But the Republicans are valiantly seeking solutions amid unceasing sniping from Democrats. If Democrats have a better plan, now is the time to unwrap it and let Americans know how we are going to go into the 21st century with a plan for government solvency.