Mr. President, I rise to speak about decisions we need to make about cutting spending, decisions we need to make now. The Congress and the White House have not agreed on how much spending needs to be cut or where the cuts need to come…
Mr. President, I rise to speak about decisions we need to make about cutting spending, decisions we need to make now.
The Congress and the White House have not agreed on how much spending needs to be cut or where the cuts need to come from, but at least we can all agree that spending does need to be cut. Republican and Democratic administrations and Congresses for decades have continually increased Federal spending. Change is hard. It can be painful. That is because we have lots of ideas for great programs that would really help people out. But it is absolutely essential that our spending habits take a 180-degree turn starting right now.
Tonight at midnight, the government will shut down if Congress does not pass a continuing resolution. This situation can be avoided if decisions are made in the next several hours.
The House approved a temporary plan yesterday to fund the government for another week while a longer term deal was worked out. That plan also funds our military through September. It includes language the Democrats have approved in the past and the President has signed. But the full Senate--all Senators, Democrats and Republicans alike--has not been allowed a chance to vote on it.
In the Senate, we don't always agree on every line included in a given bill, and we don't get a chance to vote on every line included in a given bill, but I will venture to say most of us can agree on some of them. We can all agree that a government shutdown is not an outcome anyone wants.
The bottom line is that talk is cheap, and it is time to stop talking about passing a continuing resolution and take action. Actually, it is action that should have happened last September. Then we could be working on the next year instead of the last year. The House-passed bill gives us such an opportunity. It is the only bill that provides funding for the troops, funds the government, and continues the practice of cutting spending.
We are in this position because we do not have a budget from last year, and we do not have completed funding bills for the current fiscal year. The current fiscal year started last October 1--not January 1, last October 1. We were supposed to get that finished up in September so that agencies know what they are going to be spending for the next fiscal year beginning October 1. Without action, the agencies get to spend a proportionate amount of what they spent the previous year.
This year, we haven't had nearly the pressure to get a budget done that we have had in previous years. But it is easy to know why. The previous year, the spending increased by 18 percent. So agencies get to continue spending at 18 percent above previous levels until we do something about it.
It is far too late to do what we should have done last September, which is make drastic cuts. We have already had 6 months of additional spending, which makes it a little tougher at this time of year because any spending cuts have to be taken out of the total year's revenue beginning now. So a 50-percent decrease in an overall budget now is tough because it is taken from funding for the remainder of the fiscal year. I am an accountant, so I like to explain how funding cuts work.
I am especially concerned about our men and women in uniform who are putting their lives on the line for this country. They will be paid despite the shutdown, but their compensation should not have to be delayed. They don't hesitate to defend this country, and we should not hesitate to return that loyalty. I strongly support efforts to make sure military personnel and their families are paid without delay if the government shuts down.
I am hearing from servicemembers and their families in Wyoming. They are worried about paying the rent, paying the bills, feeding their children. Some have recently been transferred and are dealing with the expense of moving their families across country or, in some cases, back to the United States. They do not know where the backpay will come from and are not sure what to tell their landlords or their banks. They want and deserve answers.
For some time, we have been talking about reining in spending and making sure our grandchildren are not saddled with the enormous debt this country is facing. What we need to do in Washington is live within our means. We have not been doing that, and it shows. We have a $14 trillion debt, and it is growing daily. Does anybody know what 1 trillion is? I will tell you a good start: Write the number ``14'' and put 12 zeros after it. It is a whole different number than 1,000 or 1 million or 1 billion. I saw a kid with a T-shirt that said: Please don't tell them what comes after a trillion. They are worried about it, and they should be. We should all be worried about it.
This year we are going to take in $2.2 trillion. That is a lot of money. Unfortunately, we are going to spend $3.7 trillion. Imagine if you are a person who makes about $67,000 a year, and you spend $100,000 a year, each and every year. Where are you going to get the money? Well, for a while you could probably borrow it. That is what we have been doing. We are borrowing 40 cents of every $1 we spend. That is the only way we can stay afloat--by borrowing 40 cents of every $1.
That means the interest on what we owe is $616 million a day--a day. We are haggling over $61 billion in cuts. That would fund the government's interest for 100 days--a drop in the bucket. But we have to start sometime, and the best time to start is now.
Yesterday, Britain raised their interest rates one-quarter of a percent. That is not much. Do you know what happens if our bonds go up one-quarter of a percent? We are spending $240 billion--with a B--a year on interest. If it goes up by 1 percent, we are going to spend another $140 billion a year on interest. Interest payments do not buy military equipment. They do not build schools. Interest payments go to other parts of the world, some of which are not our friends. If our interest rates increased by one quarter of one percent, that would be an additional $35 billion owed--$35 billion just in increased interest. If it goes up a whole percent, it is $140 billion.
So what we have been talking about is going back to 2008 levels of spending, plus inflation. I have been talking to Wyoming folks who have come out here. March is a big month for people to come to Washington because they all come out for their special programs to make sure we know how important they are. Of course, one disappointment I always have is they think each one of those programs gets a vote. They do not. By the time it gets here, what we get to do is vote for a package that cuts spending or sometimes a package that increases spending. We do not even get to vote on one that keeps spending neutral. In the condition we are in, we have to be voting for the one that cuts spending-- whatever one it is that happens to get to us. Yes, cutting spending is going to inflict some pain on some programs that each of us feels is extremely important.
It will affect families. It will affect people. But that is what happens when you get so delayed in outlining what you are going to pay that you are 6 months late. If you were paying your own bills and you were 6 months late paying them, what would your creditors say? They would be a little upset. That is where we are. We are that far behind. It is a dilemma, how to fund
the government so it spends within its means. But we are going to have to do that.
When I explain where we are and what we have to do and talk about going back to 2008 levels, I have been real pleased that the Wyoming people say: Well, we can live with that. Hopefully, we don't have to go below the 2008 levels. Well, if we were being serious about it, we would. But that is where we are talking about going, the 2008 levels. So that is what we are facing today. The budget forecast for the future is troubling if we make changes now and dire if we do not. With Americans across the county tightening their belts, it is time for the Federal Government to do the same.
Folks in Wyoming do understand this concept. Our State is required-- and many States are required--to operate under a balanced budget, and that does not mean borrowing money in order to balance the budget. That means spending less than the revenues you get in any given year. Wyoming is one of the few States that are still operating in the black.
We noticed there was a problem, and I want to congratulate Senator Conrad and Senator Gregg for getting together the deficit commission bill. We got a lot of cosponsors on it, and we had a vote on it. We did not have the 60 votes that were necessary to do it. But I applaud the President for picking that up and appointing a deficit commission. I think he had two great cochairs. He had Alan Simpson, a former Senator, and Erskine Bowles, who was the Chief of Staff for President Clinton. They joined with 16 other people to figure out how to get out of this morass. They came up with a plan, a good plan.
Their 18-member Commission had to have 14 members in favor of it before they could actually put it into a forced vote for us. They did not get that. They came close, but they did not get that. Of course, I would have liked them to have broken that down, promised they would do all six parts but break it down into six different parts because different people objected to different parts, and there would have been enough support to pass each part. We may have to do that in order to get the same thing done on the Senate floor. I hope we will pursue that. We need to pursue that. It is an absolute must.
The President did the right thing appointing the Commission. But we had the State of the Union speech this year, and I thought he would take what the Commission said and make it clear to the United States that we must follow the Commission's recommendations. The President is very good at making things clear, and they gave him a blueprint to make clear. I think everybody in the United States would have understood. In fact, I think a lot of people in the United States understand, even without the explanation. They know if you spend more than you take in, you are going broke. We have been doing it so long we are $14.6 trillion broke.
President Obama had another opportunity, which was the budget, and I hoped his budget would reflect what the deficit commission said. One of the things I found was he took some of the savings in tax expenditures that could have resulted in some lower tax rates to increase our international competitiveness and he spent it on new programs. As I mentioned before, everybody has ideas for new programs, and a lot of them are good ideas, and they would have an impact. But we are not even able to afford the programs we already have.
I wish to laud Senator Coburn for joining me in asking for a review of duplicative programs. In one department, we found $10 billion worth of duplicative programs. That is not fraud, waste, and abuse. That is people doing the same things as everybody else. I know from working on education that in preschool we have 69 different preschool programs that receive almost as much money as all of kindergarten through high school from the Federal Government. There is a review on which ones are effective and which ones are not, but we do not ever do anything with the ones that are not. We are going to have to start eliminating ineffective programs.
Several of my colleagues and I have suggested going back to funding levels enacted in 2008 before the economic stimulus bill became the baseline for government spending.
It is time to start making tough choices. If we do not make cuts now, all the scenarios down the road are worse than what we are facing today.
Let's stop the partisan banter and concentrate on the job we are here to do. The current discussions between the Congress and the White House are the beginning of America's journey back from the brink of financial ruin. This is the first of many budget engagements. Democrats and Republicans are playing chicken and neither is swerving. There may be a collision tonight, but in the end, amongst the wreckage, smoke, and scattered debris, I know America has to be the one left standing.
We can make it easy or we can make it hard. We do need to focus on getting a long-term funding bill passed for the remainder of the fiscal year--not just the next 5 days, the remainder of the fiscal year. Time is running out in that year.
If we can get this done, we can start doing the real work; that is, focusing on the Nation's solvency for future generations. Senator Conrad, who is the chairman of the Budget Committee, has said he is not going to start on the next year's budget until we finish this year's appropriations. I think that probably makes sense so you know how much money there is left over. But, wait a minute, there is not any money left over. We are overspending.
As a grandpa, I do want to get this done so my grandchildren and other children across the State of Wyoming and across the Nation are not stuck with the consequences of our inaction. I hope everyone here hopes they never have to answer to any of their grandchildren why they had a chance to fix the problem and they did not. I do not think that will happen. I think we will reach an agreement. I hope it is done tonight.
I yield the floor and suggest the absence of a quorum.