I believe that the recommendations of the Commission on Executive, Legislative and Judicial Salaries are generally sound.  Later this week, I shall submit a special message which I reviewed with the leadership this evening containing a proposal that has been reduced and has modified the Commission’s recommendation to some extent on the congressional salaries.

For Members of Congress, I will recommend the basic compensation not of the $50,000 unanimously recommended by the Kappel Commission and the other distinguished Members, but I shall reduce that $50,000 to $42,500.  I will suggest that Congress appropriate a very small additional allowance for official expenses, so that Members will not be required to use their salary increase for essential official business.

I would have submitted the Commission’s recommendations, except the advice that I received from the leadership—­and you usually are consulted about matters that affect the Congress—­was that the Congress would not accept the $50,000 recommendation, and if I expected my recommendation to be seriously considered, I should make substantial reductions.  That is the only reason I didn’t go along with the Kappel report.

In 1967 I recommended to the Congress a fair and impartial random selection system for the draft.  I submit it again tonight for your most respectful consideration.

I know that all of us recognize that most of the things we do to meet all of these commitments I talk about will cost money.  If we maintain the strong rate of growth that we have had in this country for the past 8 years, I think we shall generate the resources that we need to meet these commitments.

We have already been able to increase our support for major social programs—­although we have heard a lot about not being able to do anything on the home front because of Vietnam; but we have been able in the last 5 years to increase our commitments for such things as health and education from $30 billion in 1964 to $68 billion in the coming fiscal year.  That is more than double.  That is more than it has ever been increased in the 188 years of this Republic, notwithstanding Vietnam.

We must continue to budget our resources and budget them responsibly in a way that will preserve our prosperity and will strengthen our dollar.

Greater revenues and the reduced Federal spending required by Congress last year have changed the budgetary picture dramatically since last January when we made our estimates.  At that time, you will remember that we estimated we would have a deficit of $8 billion.  Well, I am glad to report to you tonight that the fiscal year ending June 30, 1969, this June, we are going to have not a deficit, but we are going to have a $2.4 billion surplus.

You will receive the budget tomorrow.  The budget for the next fiscal year, that begins July 1—­which you will want to examine very carefully in the days ahead—­will provide a $3.4 billion surplus.