No, there wasn't a surplus, but the economy was in better condition. Then we got hit by 9/11 and our economy was damaged in so many areas. Then the deficit grew. Then we cut taxes and went to war. Then we passed a terrible "Healthcare" law.
Now, the problem has become more "How can we get anything done, when we all are told to disagree on everything" more than fixing the problem. politics, politics, politics......