"We did something that you don't know how to do," Kerry told Bush. "We balanced the budget. And we paid down the debt of our nation for two years in a row, and we created 23 million new jobs at the same time." He accused Bush of driving up the biggest deficits in history.

"He's added more debt to the debt of the United States in four years than all the way from George Washington to Ronald Reagan put together. Go figure." The budget swung from a record $313 billion surplus projected when Bush took office to a record $422 billion deficit this election year.

One questioner asked Bush whom he would pick if there were a Supreme Court vacancy. "I'm not telling you," the president said. "I really haven't picked anybody yet." He added lightheartedly, "Plus I want them all voting for me."

Kerry said that if he had to pick a Supreme Court justice, "I want to make sure we have judges who interpret the Constitution of the United States according to the law."

Asked about abortion, Kerry, who supports a woman's right to have an abortion, noted that he was a Roman Catholic but said he could not let his faith influence his decision. In a long, rambling answer, he said the United States should not bar the use of federal money for family planning programs overseas.

Referring to Kerry's answer, Bush said, "I'm trying to decipher that." Confronting the question directly, he said, "We're not going to spend federal money on abortion."

The third and final debate will be held Wednesday in Tempe, Ariz., with the focus on domestic issues.