THE TRUTH ABOUT GOP'S PLAN TO BALANCE THE BUDGET

It is mixed bag for Republicans in Congress these days.

On the one hand, we are thrilled so far with our legislative progress on important issues. The Republican House and Senate overwhelmingly passed a plan that will balance the budget in seven years, save the Medicare program from certain bankruptcy (while actually spending more on benefits to seniors) and give $245 billion well-deserved tax relief to the American people.

On the other hand, despite this truly historic record of accomplishment, congressional Republicans are taking a beating in the polls and in the national news media. President Clinton and his Democrat allies in Congress have done an effective job of turning public opinion in their favor, thanks in part to the collaboration of their liberal friends in the national media.

In the end, it is our responsibility to make sure the people understand what we are doing on their behalf. To that end, I'd like to clear up some widespread misconceptions.

Despite the impression you may have been given, the Republican plan to balance the budget does NOT savagely cut vital programs like Medicare, Medicaid, food stamps, school lunches and student loans. Every one of these programs will actually enjoy a hefty spending increase.

Spending on Medicare will increase under the Republican plan 6.4 percent a year -- more than any other government program and at twice the rate of inflation. The amount we spend on each Medicare recipient will go up by $2,300 -- to $7,100 from $4,800. There will be no increase in deductibles or co-payments, and premiums will increase at the same rate they have for 30 years.

What is more, seniors will have more health-care choices, which may mean lower costs for them and Medicare. And most importantly, because of our reforms the Medicare program will not go bankrupt in 2002.

What about other programs? Under the Republican plan, Medicaid spending goes up from $43 billion over the last seven years to $773 billion over the next seven years (an increase of $330 billion). Food-stamp funding goes up form $3.4 billion to $4.2 billion (an increase of $800 million). School lunch-program funding goes up from $4.5 billion to $5.6 billion (an increase of $1.1 billion).

As for student loans, while our plan does save $10 billion over the next seven years on that program, the only change we have made is to require students to make interest payments on their loans during the six-month grace period following graduation -- not regular loan payments, mind you, just interest payments. At the same time, under the GOP plan 700,000 more students will be eligible for aid next year lone. They will still receive the same federal guarantee which makes such loans possible. The taxpayers will still subsidize the loans by paying interest while student borrowers are in school. And the interest rates on the loans are likely to go down.

Republicans achieve a balanced budget but do not cut vital programs. We simply hold the line on large spending increases. We slow the growth of government spending enough for already growing revenue to catch up.

Only a handful of boondoggle programs -- like the National Endowment for the Arts, the Corporation for Public Broadcasting and the Americorps "paid volunteer" program -- are actually cut. In truth, we could and should have gone much farther.

The other misconception promoted by President Clinton is that the tax cuts in the Republican plan only benefit the rich. In fact, the tax cuts in the Republican plan will benefit working families, senior citizens, farmers and small business owners.

Decide for yourself. Consider the following provisions: a $500-per-child family tax credit, repeal of the 1993 Clinton tax hike on Social Security benefits, lifting the Social Security earnings limit on seniors, a $500 eldercare tax credit to help families take care of elderly parents and grandparents, a $5,000 tax credit to help families defray the legal expense of an adoption, a doubling of the depreciation allowance for growing small businesses and an allowance for individuals to save up to $2,000 a year tax-free for education, medical expenses, first-time home purchases or retirement.

One provision cited by liberals as a benefit to the rich is the 50 percent reduction in the capital gains tax (the tax on the profit from the sale of property). However, according to IRS figures 77 percent of those who would benefit make $75,000 a year or less -- helping anyone with a farm, small business, real estate or long-term investment such as retirement savings.

The more people know the facts about the Republican plan to balance the budget, the more they seem to support it. The problem is very little of the truth has made it through the filter of the White House spin doctors.

While Republicans in Congress need to do a better job of communicating our plans to the American people, you can definitely count on us and conservative Democrats to stand firm in our commitment to balance the budget in seven years or less and deliver long-overdue tax relief to the American people.

Mel Hancock of Springfield, Mo., represents Southwest Missouri in the U.S. House of Representatives.