Congressman Tim Griffin (AR-02) issued the following statement after House passage of two federal budget reform bills, the Pro-Growth Budgeting Act (H.R. 3582) and the Baseline Reform Act (H.R. 3578):
"This week, I voted for two common sense bills that would increase Washington's accountability when spending taxpayer dollars. The first would require the Congressional Budget Office (CBO) to consider the broader economic impact -- including the impact on job creators -- when it analyzes major legislation. The second bill would end the assumption that federal spending must go up every year regardless of economic conditions. Only in Washington can someone claim that a program's funding has been cut when, in actuality, its funding increased from the previous year. These bills are part of our effort to change the way Washington works, and I am proud to support them."
H.R. 3582 would require the CBO to prepare an estimate of the macroeconomic impact -- on job creation, for example -- of any major bills reported by a House or Senate committee -- that is, legislation with an estimated budgetary effect of more than 0.25 percent of America's Gross Domestic Product (GDP). For example, our GDP in 2011 was $15.087 trillion, so any legislation that the CBO estimated had a budgetary impact of $37.7 billion or more would require a macroeconomic impact analysis. This analysis would include the effect the legislation would have on real GDP, business investment, employment and labor supply.
Current law requires the CBO to assume that discretionary federal spending will continue over the course of the ten-year budget window and increase at the rate of inflation. H.R. 3578 would remove these baseline assumptions.