Concurrent Resolution On The Budget For Fiscal Year 2009
Mr. Chairman, I am deeply disappointed that the FY 2009 budget resolution we are considering today continues business as usual in the House. This resolution is another missed opportunity to come to grips with the financial crisis looming…
Mr. Chairman, I am deeply disappointed that the FY 2009 budget resolution we are considering today continues business as usual in the House. This resolution is another missed opportunity to come to grips with the financial crisis looming on the horizon for our Nation. We face enormous fiscal challenges and addressing them will take bipartisan commitment. The budget resolution--and all of the substitutes--fail to address the long-term spending crisis staring us right in the face.
Jim Cooper and I have been working together with almost 70 cosponsors from both sides of the aisle ii offering a solution--the Cooper-Wolf SAFE Commission Act--to respond to what outgoing U.S. Comptroller David Walker characterizes as a ``tsunami of spending and debt levels that could swamp our ship of state.''
At the Government Accountability Office, Mr. Walker has coordinated the country-wide ``Fiscal Wake Up Tour'' and has done a tremendous job of working to educate the American people on the grave condition of our country's fiscal health. I salute David Walker for the yeoman work he has done in bringing this issue to the front burner. He is leaving GAO this week, but he is not abandoning the cause in which he believes and into which he has poured his heart and soul over the past few years. He was quoted as saying, ``I love my job. I love GAO. But I love my country more.''
Republicans and Democrats must take to heart David Walker's words-- for the love of country--and come together to avert the financial tsunami coming closer and closer to our Nation's shores. It doesn't take an expert to understand that this nation is teetering on the edge of a financial crisis like no other time in our history.
We had the opportunity in this year's budget process to take the initial steps to get our financial house in order. But again this budget cycle, the House is choosing to look the other way and continue business as usual.
If we don't get our country's financial house in order and make the sacrifices necessary today, the future for our children and grandchildren will be bleak. Our economic growth will come to a grinding halt, our standard of living and even our national security will be at risk if we don't start actively working to change our current course. We cannot continue to keep borrowing and mortgaging our future to countries like China and Saudi Arabia that carry obscene amounts of our debt.
This issue is an economic and moral issue that hangs like an ominous cloud over everything we do as public servants, yet many ignore it. I understand we won't be able to fix our financial woes overnight, but we must come together across the aisle if there is ever to be any hope of ensuring that our Nation's future is strong.
That's why Representative Jim Cooper and I joined efforts and have been calling for a national bipartisan commission that will put everything--entitlement spending, other Federal program spending and tax policy--on the table and come up with recommendations to halt the mounting debt.
Nothing would be off limits for discussion by the commission members.
A critical component of the commission's work will be to engage the American people in a national dialogue about the scope of the country's financial conditions and solutions to the problem. After spending 6 months conducting townhall-style meetings around the country, the commission will present a report to Congress describing the long-term fiscal problems, public suggestions and views, and policy options available to get us back on the right track.
Modeled after the Federal base-closing process, Congress would be required to vote up or down on the plan in its entirety. Mandating congressional action is what makes the SAFE Commission unique. If other viable bipartisan solutions are presented, I think we should look at those, too.
The Cooper-Wolf SAFE Commission legislation has been endorsed by groups across a wide political spectrum--groups who usually disagree more than they agree on policy issues--the Brookings Institution, the Heritage Foundation, the Concord Coalition, and the Committee for a Responsible Federal Budget. The Business Roundtable and National Federation of Independent Business are also on board. National columnists David Brooks, David Broder, and Robert Samuelson all have written about the entitlement crisis facing our country and the SAFE Commission as a potential way forward. Senators Conrad and Gregg have introduced similar legislation in the Senate.
The financial tsunami is moving closer to our shores and the longer we wait to act, the harder it will be to stop the tidal wave of red ink. If our children and grandchildren were on the beach with an actual tsunami off the coast, we would do everything we could to help them. We must move beyond politics and come to grips with the fact that the financial future of our country is an American issue and it's on our watch to fix.
How can this Congress sit by knowing full well that our financial woes will haunt generations to come?
I could easily use all the time for general debate today providing the evidence to support the critical need to address the nation's financial future. This should be the number one budget priority for this Congress. Let me give an example. In January, Moody's Investors Service released its annual report which concluded that the United States triple-A bond rating is at risk. The United States could lose its triple-A bond rating as early as 2012. What does that mean?
That means that respected credit-rating agencies are projecting that the United States will be on par with Greece and Estonia by 2015, Poland and Mexico by 2020, and below investment grade--junk debt--by 2025.
Here's more evidence: the retirement of the baby boomers started this year and presents a demographic challenge that is unprecedented. In 2006, Medicare, Medicaid, and Social Security consumed 40 percent of the budget. That percentage is expected to jump to 51 percent in less than 10 years. It may be out of sight, out of mind for now, but it's simple math. As the number of Americans aged 65 and up rises, and the working population shrinks, more Americans will draw on promised benefits. The rubber will meet the road, and we will have done nothing to cushion the blow.
We cannot continue to avoid our responsibility to future generations of Americans by passing on a broken system in the form of unfunded Social Security and Medicare obligations and unsustainable spending.
Simply put, the budget resolution set forth this year represents a missed opportunity. We need to follow the example of David Walker and for the love of our country, and for our children and grandchildren, do what it will take to protect our Nation's future. The SAFE Commission is the bipartisan way forward. Mr. Speaker, I would like to insert for the Record a letter I received from U.S. Comptroller General David Walker, a recent Financial Times article about our Nation's triple-A bond rating, and a Robert Samuelson op-ed from The Washington Post.
[From the Washington Post, October 3, 2007]
Escaping the Budget Impasse
(By Robert J. Samuelson)
Almost everyone knows that the next president will have to
wrestle with the immense costs of retiring baby boomers.
Comes now a small band of Democrats and Republicans who want
to do the new president a giant favor. They want to force the
new administration to face the problem in early 2009. Why is
this a favor? Because dealing with this issue is so
politically unsavory that resolving it quickly would be a
godsend. Otherwise, it could haunt the White House for four
years.
Let's review the problem (again). From 2000 to 2030, the
65-and-over population will roughly double, from 35 million
to 72 million, or from about 12 percent of the population to
nearly 20 percent. Spending on Social Security, Medicare, and
Medicaid--three big programs that serve the elderly--already
represents more than 40 percent of the federal budget. In
2006, these three programs cost $1.1 trillion, more than
twice defense spending. Left on automatic pilot, these
programs are plausibly projected to grow to about 75 percent
of the present budget by 2030.
Stalemate results because all the ways of dealing with
these pressures are controversial. There are only four: (a)
massive tax increases--on the order of 30 to 50 percent by
2030; (b) draconian cuts in other government programs (note
that the projected increases in Social Security and Medicare,
as a share of national income, are more than all of today's
domestic discretionary programs); (c) cuts in Social
Security, Medicare and Medicaid--higher eligibility ages or
lower benefits for wealthier retirees; or (d) undesirably
large budget deficits.
The proposed escape seems at first so drearily familiar and
demonstrably ineffective that it's hardly worth discussing: a
bipartisan commission. But what would distinguish this
commission from its many predecessors is that Congress would
have to vote on its recommendations. The political theory is
that, presented with a bipartisan package that cannot be
amended, most politicians would do what they believe
(privately) ought to be done rather than allow pressure
groups, including retirees, to paralyze the process.
There is precedent for this approach. Since 1988, Congress
has allowed more than 600 military bases and facilities to be
closed or streamlined using a similar arrangement. An
independent Base Realignment and Closure Commission evaluates
the Pentagon's proposed closings and listens to objections.
With the president's approval, it then submits its own list,
which goes into effect unless vetoed by both houses of
Congress. This process provides members of Congress
bipartisan ``cover'' and prevents amendments from weakening
the package.
Two prominent proposals would adapt this approach to the
budget. The first, offered by Sens. Kent Conrad (D-N.D.) and
Judd Gregg (R-N.H.), the chairman and ranking minority member
of the Budget Committee, would create a 16-member commission,
evenly divided between Democrats and Republicans. All eight
Democrats would be from Congress, as would six Republicans.
The administration would have two members, including the
secretary of the Treasury.
Conrad's notion is that the impasse is political and that
only practicing politicians--people with ``skin in the
game''--can craft a compromise that can be sold to their
peers. The commission would report in December 2008. Twelve
of its 16 members would have to support the plan, with
congressional passage needing 60 percent approval (60
senators, 261 representatives). These requirements, Conrad
and Gregg argue, would ensure bipartisan support.
The other proposal comes from Reps. Jim Cooper (D-Tenn.)
and Frank Wolf (R-VA.) It would also create a 16-member
commission, with two major differences. First, only four of
its members would be from Congress. Second, though Congress
would have to vote on the commission's proposal, there would
be some leeway for others--including the president--to
present alternatives as long as they had the same long-term
budget impact. Any proposal, however, would have to be voted
on as a package without amendments.
A combination of these plans might work best. A 20-member
group would be manageable and should include four outsiders
to provide different perspectives and, possibly, to build
public support. Perhaps the head of AARP should be included.
And it would be a mistake to present the next president with
a take-it-or-leave-it package. The Cooper-Wolf plan would
allow a new administration to make changes--and get credit--
without being able to start from scratch.
This commission approach has potential pitfalls: It might
create a face-saving package that does little. But everything
else has failed. The main political beneficiary would be the
next president. It would be revealing if some of the
hopefuls--Democrats and Republicans--would show that they
grasp this by providing their endorsements. Otherwise, the
odds that Congress will even create the commission are slim.