Issue Position: Budget & Economy

Issue Position

Since I first came to Congress in 2001, I have been sounding the alarms on federal spending and our national debt. Since the late 1990s when we had a balanced budget under President Clinton, federal spending has ballooned out of control and the federal government has made too many promises it can no longer afford. I firmly believe we can no longer avoid addressing the nation's fiscal challenges because it is a threat to our national security.

We must stop the out-of-control spending in Washington and begin reducing our skyrocketing national debt. If we do not, we will begin to suffer from massive inflation costing our already fragile economy even more jobs. American families have tightened their belts in these tough times and it is time that the federal government takes the same responsible approach to budgeting. We have to change the way Washington operates and begin working together to develop solutions to our problems.

As a fiscal conservative, I am working with both Republicans and Democrats to put worth common sense principles that rein in spending, balance our budget and reduce our national debt.

Benchmarks for Fiscal Reform
The debate around our nation's finances continues to dominate Congress, as it rightfully should. Our budget deficits and the national debt continue to hinder our country's long-term economic growth. Unfortunately, too many in Congress are treating our fiscal situation like a political football, trying to score points wherever they can.

The reality is that our problem is much more than congressional spending. Yes, we need to cut congressional spending for federal programs and activities, also known as discretionary spending, and, I support many of those cuts. However, this type of spending only makes up 15 percent of the federal budget. Even if we cut all non-defense discretionary spending, eliminated every single federal program and fired every single federal employee, this nation would still run huge annual deficits.

For too long, Washington has punted this issue back and forth, between Democrats and Republicans and between the House and Senate. They've either delayed its consideration or ignored it altogether. Well, the time for games is over. The American people deserve a serious conversation on our budget and that is my goal as your Congressman.

I recently helped launched an effort with the fiscally conservative Democratic Blue Dog Coalition, which I co-chair, to stop the games and start the bipartisan discussions. Joined by many of my Blue Dog colleagues from around the country, we announced our Benchmarks for Fiscal Reform -- an aggressive set of targets for long-term fiscal reform and deficit reduction that includes cutting the deficit by $4 trillion over the next 10 years, with the largest deficit cuts in history by 2014.

Targeted cuts in spending are an important part of the solution, but we are kidding ourselves if we think cutting a few hundred billion dollars is going to eliminate our deficit and solve our long-term debt crisis. We have to take a comprehensive approach to our nation's finances and no one side can do it alone. My goal is to invite everyone -- both Democrats and Republicans -- to the table because until we start having a grown-up conversation, we will continue to mortgage our future on the backs of our children.

Already, I'm proud of the support we've received from economists and nonpartisan groups who care about the nation's budget. The Committee for a Responsible Federal Budget said our framework "is bold and balanced, and we'd all be lucky if the final deal reflects their framework." Fiscal Commission and Moment of Truth project co-chairs Erskine Bowles and Senator Alan Simpson said our benchmarks are "a very serious set of principles on how to attack this debt and deficit problems and indicates their willingness to reach out to both sides of the aisle to start having a really honest conversation about the long-term fiscal health of the country."

More specifically, the Benchmarks for Fiscal Reform include the following goals:

* Make the largest deficit cuts in history by 2014

* Cut the deficit by $4 trillion over the next 10 years

* Return to 2008 spending levels by 2013

* Reduce the deficit to 2.3 percent of GDP in 4 years

* Reduce the size of government

* Achieve deficit reduction with 2/3 spending cuts, 1/3 tax reform

* Recognize that everything must be on the table:

o Discretionary Spending Cuts -- both security and non-security

o Tax Reform

o Entitlement Reform

o Other Mandatory Policies

o Process Reforms

These Benchmarks for Fiscal Reform are simply a set of shared goals that every leader in Washington should get behind and support. The challenge will be to figure out how we get there, but that's why we were sent to the nation's capital -- to make the difficult decisions required to do what's best for the American people. As your Congressman, I'm going to work hard to get our nation's fiscal house back in order and these benchmarks are an important place to begin the conversation.

Blueprint for Fiscal Reform

I am proud member and key leader of the fiscally conservative Democratic Blue Dog Coalition, a group formed in 1995 with the goal of representing the center of the House of Representatives and appealing to the mainstream values of the American public. The Blue Dogs are dedicated to a core set of beliefs that transcend partisan politics, including a deep commitment to the financial stability and national security of the United States, and have a proven track record of reach across the aisle to get things done.

Earlier this year, I joined several of my fellow members Blue Dog Democrats in releasing a comprehensive plan aimed at cutting spending and balancing the budget. The "Blue Dog Blueprint for Fiscal Reform" provides a concrete pathway to reduced deficits and includes a number of proposals that historically have earned bipartisan support.

Budget experts from across the political spectrum agree that Congress must put a plan in place now in order to balance the budget and lay the groundwork for sound fiscal policies in the future. The Blue Dog Blueprint for Fiscal Reform puts forth concrete proposals that can be taken to achieve these goals.

These common sense proposals we are working to get passed into law include:

1. Restore Pay-As-You-Go budget rules. The first step we can take to ensure that government does not spend beyond its means is to restore the proven, bipartisan pay-as-you-go (PAYGO) rules that effectively brought about budget surpluses in the 1990's.

2. Put the lid on federal spending. In addition to balancing the federal checkbook, Congress should set limits on discretionary spending. Just like American families who make tough decisions every day, Congress must learn to live within its means.

3. Cut programs that don't work. Congress must work with the Administration to identify and cut programs that don't work. A commonsense budget enforcement tool, "expedited rescission" was passed by the House with bipartisan support in the 1990's.

4. Reduce the deficit. This tool forces Congress to live within its means by keeping our federal budget on setting a path towards balance. Congress would be required to cut spending to meet these targets, effectively reducing the deficit over time.

5. Balance the budget. A critical component of the plan, a constitutional amendment would require that Congress balance the budget by 2020.

6. Be honest about our long term fiscal obligations. Congress should be required to produce an honest and open assessment of the government's long-term financial obligations as part of the budget resolution every year.

7. Establish a bipartisan fiscal commission. A fiscal reform commission should be established to force Congress' hand in making the tough decisions necessary to put the country back on a fiscally sustainable path.

8. Improve transparency and accountability. Congress has a responsibility to hold government agencies accountable for wasteful spending. This measure would reduce the estimated $98 billion that is wasted annually when a federal agency pays too much or pays twice for a product or service.

9. Establish performance-based budgeting. Performance-based budgeting is a results oriented budget tool that sets goals and performance targets for agencies, and measures their results, much like a small business. It is a commonsense policy that has been successfully implemented on the state level for many years.

10. Eliminate waste, fraud and abuse. Research shows that for every $1.00 we put into "program integrity accounts" that identify and eliminate waste, fraud and abuse in government spending, we get $1.50 back. The authorization levels for these programs should be increased.

11. Account for every dollar. Evaluating every dollar spent on our national defense is not only good fiscal practice; it is a matter of national security. Like all other major federal agencies, the Department of Defense should be subject to annual audits. Senators John McCain and Claire McCaskill have already introduced this measure in the Senate.

12. Close tax loopholes. It is critical that the federal government continue to identify and report loopholes and inefficiencies within the current tax system. We can expand on these reports to reflect the total revenue lost and to identify inefficient tax subsidies.

13. Take the politics out of the equation. In order to promote efficiency and eliminate undue political pressures, this provision would transition the Joint Committee on Taxation to an independent, nonpartisan legislative branch agency.

14. Eliminate duplication and inefficiency. Government programs that are duplicative or inefficient can be a substantial drain on the federal budget. Establishing an independent, bipartisan commission to recommend reorganizational changes to the federal government would help to streamline these programs and save taxpayer dollars.

15. Review and terminate unnecessary federal programs. A "Sunset Commission" should be established to conduct regular reviews of federal programs and agencies, and make recommendations as to those which should be terminated.

You can also track each proposal as its introduced as a bill by clicking here.

Our underlying structural deficits are the biggest threat to our economic security today. With this proposal, I and the rest of my Blue Dog colleagues are putting forth concrete steps that can be taken to put the country back on a path to balanced budgets and long term fiscal sustainability. It is time to change the way Washington operates and we must begin to sincerely work together and develop solutions to these systemic problems. We must roll up our sleeves and make the tough decisions necessary to once again put the country back on secure economic footing. Washington needs a good dose of some common sense and I intend to provide it.

Balanced Budget Constitutional Amendment

Balancing a budget is not difficult to understand because the idea is simple: don't spend what you don't have. Arkansas families get this principle and are forced to live by it every day. As a former small business, I am all too familiar with this common sense principle. Balancing a budget requires tough decisions, but, as you know, Washington all too often dodges tough decisions. Now, we find ourselves in record debt. Well, I have had enough, you have had enough and the American people have had enough. It is past time to stop the out-of-control spending in Washington and, as your voice in our nation's capital, I am putting forth common sense solutions to help get our fiscal house back in order.

According to the nonpartisan Peterson-Pew Commission on Budget Reform, publicly held debt reached $7.6 trillion in 2009 and will double over the next 10 years if action is not taken now. At that point, interest on the debt will comprise such a large share of the federal budget that we will no longer be able to invest in priorities such as education, health care and national security.

Talking about fiscal responsibility is easy. It's where the rubber meets the road that Congress has fallen short. We owe it to our children and grandchildren to put a plan in place now to begin reducing the deficit, balance the budget and lay the groundwork for sound fiscal policies over the long term.

I firmly believe that the federal government should be held to the same, common sense standard that is expected of American families and small businesses. That is why I am proud to cosponsor a constitutional amendment to require the federal government to pay down the national debt and balance the budget by 2020. Adopting this constitutional amendment is a guaranteed way we can get our fiscal house back in order and prevent future fiscal irresponsibility.

Specifically, the Balanced Budget Amendment would:

* Require Congress to produce a balanced budget every fiscal year;

* Require the President to submit a balanced budget to Congress; and,

* Prohibit spending from exceeding revenue for that fiscal year unless Congress, by a three-fifths roll call vote of each House, authorizes an exemption.

Alongside me in this historic effort to amend the Constitution were 34 of my colleagues in the Blue Dog Coalition, a group of fiscally conservative Democrats in the House of Representatives. This amendment is a key component of the "Blue Dog Blueprint for Fiscal Reform," which is a comprehensive plan we introduced earlier this year to begin reducing the deficit, balance the budget and lay the groundwork for sound fiscal policies over the long term. The Blueprint outlines an extensive list of legislative priorities that include a fiscal reform commission and reinstating pay-as-you-go budget rules in Congress, which President Obama signed into law in February.

I believe our system of government in Washington is broken, regardless of which party is in charge. This constitutional amendment will require every president and every congress, regardless of party affiliation, to balance our federal budget. We have this amendment to our Constitution in Arkansas and it works. Every year, the legislature and governor work together to make the difficult decisions necessary to pass a common sense budget.

We've come close to passing this amendment before. The last time Congress seriously considered a balanced budget amendment was in 1995, when it passed the House but failed by a single vote in the Senate. An amendment to the U.S. Constitution proposed in Congress requires a two-thirds majority in both the House and Senate and must then be ratified by three-fourths of the states, or 38 states, or by a ratifying convention -- so we have a lot of work ahead.

As we recover from this economic recession, deficit-spending is simply not sustainable and we must restore fiscal discipline to our government so that we can focus on the other challenges facing the American people, like finding a good job. As the Congressman for Arkansas's Fourth Congressional District, I will continue to put forth common sense solutions that can put our country back on a path to balanced budgets and long term fiscal sustainability.

Pay-As-You-Go Law

In February 2010, I and my Blue Dog colleagues were able to pass Pay-As-You-Go or "PAYGO" rules in the House and Senate. Shortly thereafter, the President signed the legislation into law, removing the last major hurdle in the fight to restore fiscal discipline to the federal government. This is something I have worked very hard to achieve over the past ten years that I have served as your voice in our nation's capital and we finally have a law on the books that forces Congress to pay for what it spends.

"Pay-As-You-Go" or "PAYGO" is a fairly simple concept: for every new dollar the government spends, it cannot add to the deficit and new spending must either be budget neutral or offset with spending cuts from somewhere else. This is not a new concept. The Congress enacted a PAYGO law in 1990 ultimately leading to the budget surpluses of the late 1990s under President Clinton until Congress allowed the law to expire in 2001 under President Bush. In fact, under President Clinton, PAYGO helped turn record deficits into a balanced budget for four consecutive years in the late 1990s. The power of PAYGO is clear and simple and I am proud to have led the fight to bring it back.

There has been no bigger champion of a PAYGO law than the fiscally conservative, Democratic Blue Dog Coalition, of which I am co-chair. The Blue Dogs formed as a policy-oriented group in 1995 to give moderate and conservative Democrats in the House of Representatives a common sense, bridge-building voice within the Congress. As a key leader of the Blue Dog Coalition, I have been sounding the alarms on the debt for the past nine years. Today, we face the worst economic recession since World War II, causing tax revenue to fall and our deficits to continue to grow in record numbers. However, simply because tough decisions lie ahead does not mean we can continue the same reckless spending that got us into this mess in the first place.

The out-of-control spending in Washington must end. If Arkansas's working families are expected to balance their budgets, then so should the federal government. Statutory PAYGO will help limit the size of our deficits. Larger deficits mean a higher national debt, which in turn means that a greater proportion of the budget must be spent paying interest on the debt. The interest we already pay each year on the national debt is more than we spend on education and veterans combined. Getting statutory PAYGO back on the books now will prevent future fiscal irresponsibility.

I, along with my fellow Blue Dogs, have been calling for Congress to reinstate statutory PAYGO since it was allowed to expire in 2001. The passage of PAYGO in 2010 was not only a victory for Blue Dogs and common sense, it was a victory for every American, especially our children. By allowing so much of our national debt to be held by so few, we are putting our economy and national security at risk. If we do not begin to pay our bills now, we will continue to short-change future generations who will face higher taxes and cuts to federal investments in priorities such as education and health care.

As we recover from this economic recession, deficit-spending is simply not sustainable and we must restore fiscal discipline to our government. Reinstating PAYGO was a critical first step toward improving the fiscal health of our nation and will allow us to focus on other challenges facing the American people, like finding good jobs.

President's Budget Proposals

As you know, on February 14, 2011, President Obama released his budget proposal for fiscal year 2012. While the President's budget makes important investments in areas like education, infrastructure and broadband development and making government more efficient, his budget would still add $7.2 trillion to the nation's publicly held debt by 2021. The federal budget must reflect the reality of working families all across Arkansas and that includes cutting back on what we can no longer afford. We have got to find a responsible balance between investing in this nation's future and tackling our budget deficits. Unfortunately, the President's budget doesn't go far enough in reducing the spending to get us where we need to be.

Moving forward, my primary focus will be reviewing how the proposed spending cuts by the President and by House Republicans will affect Arkansans and rural Americans. However, the message from the American people is simple and clear: stop the deficit spending. Both political parties are responsible for the deficits we face today and it's going to take both political parties coming back to the table and working together to get our nation's fiscal house back in order. We won't get out of this mess overnight, but, as a leader of the fiscally conservative, Democratic Blue Dog Coalition, I will continue to be a leader in the House for fiscal responsibility and in bringing together members of both parties to accomplish real fiscal reform.

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