Thank you, Mr. Ross. It is great to be here again with you as we talk about the fiscal challenges that face our country. I was glad to hear you talk about how the Blue Dog Coalition has tried to, in a bipartisan nature, work with the other…
Thank you, Mr. Ross. It is great to be here again with you as we talk about the fiscal challenges that face our country.
I was glad to hear you talk about how the Blue Dog Coalition has tried to, in a bipartisan nature, work with the other side of the aisle to bring about some fiscal responsibility. In fact, the Blue Dog Coalition sent a letter to the Speaker and to the President asking for a bipartisan working group to try and get to the bottom of balancing the budget and dealing with this fiscal irresponsibility. We have yet to hear from the President. We would certainly like to sit down with him and discuss our ideas to bring fiscal accountability to our Nation's government.
As moderates and fiscal hawks, the Blue Dogs are just trying to do the right thing for America. We are trying to get engaged in a real debate on fiscal responsibility because we need to return honesty and accountability to our Nation's finances.
I am deeply concerned with the continued deficit spending and the complete disregard for fiscally responsible policies and really a fundamental dishonest budget process. The President's proposed $2.7 trillion budget will decrease domestic spending, yet still leave a massive $355 billion budget deficit for this fiscal year. But the $355 billion is not the whole story. The President's figure deliberately leaves out the cost of the effort of Iraq and Afghanistan and the potential future costs of rebuilding of the gulf region and fixing the alternative minimum tax that is plaguing more and more middle-class Americans every year.
All of these issues that were left off the budget are all known costs that will drive up the deficit more than what has been stated in the President's document.
Some would say that the President's budget is a nice break from reality television. The President's budget does nothing to make the Federal Government more accountable for taxpayer dollars.
Every year, the President issues two vital budgeting documents, the budget and the financial report of the United States. You have heard of the first but probably not of the second, and why is it completely ignored? The budget is widely distributed to every Member of Congress and the national press. The financial report, however, is distributed to fewer than 20 Members of Congress with no press release.
The budget says that the deficit is $319 billion in 2005, but the financial report says it was $760 billion, over twice as large as the budget that was distributed to all Members of Congress. The difference is that the budget uses a cash-based accounting which only the smallest businesses of America use because it hides future obligations, thus, painting a potentially unrealistic and misleading picture of the Federal Government's overall performance.
According to David Walker, the comptroller of the General Accountability Office, his statement was that it is painting a potentially unrealistic and misleading picture of the Federal Government's overall performance.
The financial report of America uses accrual accounting, the method required by law for every business in America with revenues over $5 million. The financial report takes into account future obligations of the Federal Government and presents a clearer, more understandable picture of Federal finances.
So when Mr. Ross is talking about the problems in our budget process, that is one of the things that the Blue Dogs want to highlight is that the true deficit, as you have on your poster down there, is $760 billion for 2005, double what was in the President's budget.
The Blue Dog coalition believes that both the House and Senate should use a more realistic financial report number for its budget, rather than budget numbers that we talk about because it is a truer accounting, and this is not even taking into consideration some of the other spending like we know we are going to have to spend to take care of some of the problems in Katrina and some of the devastated areas of the gulf coast.
I really appreciate you taking me down to Hope, Arkansas, to the airport down there a few weeks ago to see these trailers. I do not know if you have talked about them tonight since I just came down on the floor.
The reality is that there is nearly $1 billion in trailers throughout Arkansas, half a billion dollars in your district. It is really wasted. Those trailers should be used for folks who are in flood zones and need them, not sitting sinking in the mud in Hope, Arkansas. So I appreciate you highlighting this fact once again.
I appreciate those in the gallery being able to see the pictures of just wasted tax dollars, $1 billion in your home State, and thank you for having me here tonight, once again, and for leading this hour, and I will be happy to engage with you as we go on.
I believe if you take all the 20,000 throughout the entire State of Arkansas, it is about $800 million.
Madam Speaker, one of the things that my constituents ask me when I go home is how we got into this mess, and they say, well, it was just a few years ago in 1997, we actually started paying down the national debt. Then when Mr. Clinton left office in the year 2000, we were actually making good progress paying down the debt and we had 4 years a row in balance and paying down.
But there is one very critical thing that happened in 2001, and that was that the PAYGO rules were suspended. Those rules were put in place by a bipartisan Congress in 1997, and those PAYGO rules said that you had to pay for what you spent, just like we have to do in our home budget.
And if you were to spend more money, you had to either find a budget cut someplace, or you had to find tax revenues to pay for it. So for 4 years, on a bipartisan agreement negotiated between Newt Gingrich and President Clinton, the country lived within its means. Then in the year 2001, those rules were suspended.
Since that has happened, we have amassed some of the biggest deficits in the history of our country, all financed, or virtually all financed, unfortunately, through deficit spending. And that is being financed by foreign governments. In fact, our colleague, John Tanner, is very often quoted as saying that we have borrowed more money from foreign governments in the last 5 years than in the rest of the history of the United States combined.
In fact, he is also fond of saying that if we were going to have to go in, if there was a war between China and Taiwan, and we went in to defend Taiwan like our treaties obligate us to do, we would have to borrow the money from China to defend Taiwan against China. That is how crazy this system has now gotten.
So we can see how dangerous this foreign obligation has become for our country. And I thank the gentleman for highlighting the budget problems in his speech, and I yield back.
We haven't heard about it, for sure.
One of the things that you said that I want to dig in a little deeper to is it really precludes our options in times of crisis. If we were to have another September 11 hit tomorrow, and 2 weeks later another Hurricane Katrina hit someplace on the gulf coast, could we afford the $200 billion we spent after September 11 again on top of everything else? And would we be so willing or even able to bail out another gulf coast situation?
We know that calamities are going to happen. In fact, that is one of the 12 points in our Blue Dog plan is to put away a rainy day fund because we know, as sure as the next drought or the next monsoon comes, the next rain storm, there will be another calamity that will befall us. It may be wildfires in the West or a flood in the Midwest. We have challenges that will continue to face our country, and, frankly, the world. And oftentimes the world looks to our country to solve these issues, like the tsunami and other things.
But we are becoming stretched thinner all the time; and the point you raise, Mr. Matheson, on not being able to have the options because we are running out of dollars, is one that I think we have to think about as a country.
Madam Speaker, I was going to say, one of the things that I like about being a Blue Dog and fighting for fiscal responsibility with the Blue Dogs, we do not just criticize but we also have a plan. Mr. Matheson gave the first two planks in our 12-point plan to restore fiscal sanity to the United States, which is to have a balanced budget and don't let Congress buy on credit. We call it PAYGO, pay as you go.
There are a number of other things that we have like the third plank in our plan is to put a lid on spending, to have a freeze on additional spending until we can get our fiscal house in order.
Fourth, we require Federal agencies to put their fiscal house in order. As you said, 16 or 17 of the Federal departments cannot balance. They cannot even tell you where the money is going.
The fifth plank of the plan is make Congress tell taxpayers how much they are spending in the bills we pass. We do not tell taxpayers how much we are continuing to authorize every year.
The sixth point in the plan is we are going to require a rainy day fund so we set aside money for the natural disasters that befall our country on a regular basis.
Number seven, and this is really important because we are getting ready to do this as we speak, and that is do not hide the vote to raise the debt limit. Right now under the rules of this House and in the Senate, we are going to raise the debt limit without taking a vote of this House on a recorded vote so each Member of Congress has to put their voting card in and be recorded on raising the debt limit. That is just not appropriate.
Number 9 is to ensure that Congress reads the bills it is voting on. What a novel concept. We actually believe each bill should have to sit on the Speaker's desk for 3 days to give us time to prepare and actually know what is in legislation. It was 2 years ago that we passed the Medicare prescription drug bill. We got that bill 20 hours before we were voting on it and that bill was 680 pages, 678 pages long. I can tell you one thing for sure, no Member of Congress was able to read that bill and know what was in it. And that is probably why it cost the American people double what they told it was going to cost.
The next plank is to justify pet projects. We believe that every earmark passed in this Congress should be justified by the Member of Congress that is asking. There should be a paragraph written about every request and that the Member should have to sign it and say they stand by that earmark.
We would not have the scandals of Mr. Abramoff and all of the other problems that are befalling this Chamber if every Member had to justify their pet projects and earmarks.
Number 10, we require an honest cost estimate for every bill.
Number 11, be sure that every bill fits within the budget that we pass at the beginning of the year. We pass a budget, and we never look at it again. We continue to pass bills that most likely will not fit into that budget, so we just keep expanding the budget with every bill that comes through here after the budget is passed.
The final plank is that we do a better job of oversight. Right now, Congress passes oversight and frankly, we never go back and look at what we have passed to make sure that it is doing the job that we intended when we passed that legislation.
Those twelve points are just the first step in restoring fiscal accountability and making sure that we live within our means.
As I said before, in September, I joined my colleagues in the Blue Dog Coalition in writing a letter asking President Bush to host an emergency bipartisan budget summit to put our Nation's fiscal house back in order. Unfortunately, our genuine effort to engage the Republicans in a reasonable discussion on the budget was brushed aside. We have yet to receive a response to our letter. I think even this White House should be able to pen a letter back to us in the months since we sent it to them. I know they have gotten it. We have talked to them about it on this floor. We have talked to our colleagues in this Chamber on a regular basis requesting cooperation to get together and work together to solve the problems facing this country, and we have not gotten a response.
Would the gentleman yield?
I just want to highlight that there is precedent to doing it a different way. During World War II, then-Senator Truman formed a commission that actually did an audit and went after wartime profiteers and, in fact, did a great job at getting to the bottom of the fact that there were people trying to profit irresponsibly on the backs of our soldiers during World War II. So he went in and got to the bottom of the overcharging and the contracting fraud and really cleaned up those who were trying to take advantage of the situation that the world found itself in.
That is the kind of accountability that we need today, Mr. Ross, and I appreciate that you are bringing this up. It is not unpatriotic to question how our taxpayer dollars are being spent. In fact, if we don't waste our taxpayer dollars, then there is more money available to actually spend doing the right thing by our troops. Thank you for raising that issue.