STRONG ECONOMY MEANS BUDGET SURPLUS

The stock market continues its record-breaking climb. The Dow Jones Industrial Average has been flirting with the 9,000 mark for several weeks. It wasn't that long ago that experts argued whether the Dow could ever break 7,000.

Today, some Wall Street experts forecast the market will reach 10,000 by 2000. The Dow seems destined to achieve new heights.

The success of the stock market has powered another astounding achievement: a budget surplus for the federal government.

Last week, the government reported a record $124.6 billion surplus in April, which virtually ensures a finish in the black. It would mark the first time since Richard Nixon's first year in the White House.

The surging stock market and taxes paid on the resulting capital gains are credited for the bulk of the surplus. With seven months of the fiscal year gone, the budget has a surplus of $54.7 billion. That compares to a deficit of $17.2 billion just one year ago.

Extra money? Some federal bureaucrats are probably champing at the bit to spend, spend, spend.

Surely cooler heads will prevail and the surplus will be used to reduce the federal debt, which remains more than $5 trillion. The Balanced Budget Act helps to limit spending. That combined with surplus payments on the debt can make a genuine difference.

Tax cuts are another possibility. If revenue is beyond projections, there's no reason why the government can't reduce tax bills. Proponents of tax cuts in both parties are examining the possibilities.

One portion of the surplus should remain put --- Social Security. Without sufficient balances, Social Security won't be around when baby boomers retire. (Borrowing from the Social Security Fund, by the way, helps prop up figures being reported as surpluses.)

Will the prosperity last? Some people are holding their breath, afraid a bear market is in the wings. But there's no indication that the nation's economic good news is diminishing. Employment continues at a record pace. Trade is flourishing. Inflation remains minimal.

Even Dow milestones seem pretty commonplace these days. But consider this: 25 years ago the Dow was at the 1,000 mark. Another 14 years passed before the Dow reached 2,000 and it wasn't until April 1991 that the market surpassed 3,000. Since that time, the market has climbed a phenomenal 6,000 points.

The Dow is bound to have its ups and downs. But all economic predictions point to continued growth. No one knows what tomorrow will bring. Americans should take the time to relish this strong economy and federal surplus.