Rep. Scott Garrett (R-NJ), Vice Chairman of the House Budget Committee, today applauded passage by the House Budget Committee of H.R. 3581, the Budget and Accounting Transparency Act of 2011. In December, Rep. Garrett introduced H.R. 3581 as part of a comprehensive set of ten reforms to enforce spending controls, enhance oversight of federal spending and restore honest accounting standards to Washington's broken budget process.
"It's fitting that today marks the 1,000th day since Senate Democrats passed a budget to fund the federal government. If that isn't reason enough to support wholesale reforms to our broken budget process I don't know what is," said Garrett after the vote. "Under President Obama's watch, Washington has racked up the three largest deficits in U.S. history and the national debt has surpassed the size of our entire economy. As scary a picture as this may paint, it grossly distorts and misrepresents the full scale of our fiscal crisis. Off-budget liabilities such as government-sponsored enterprises Fannie Mae and Freddie Mac threaten any progress we make towards deficit and debt reduction. It's time we bring these black holes of debt out of the shadows and onto the books."
"The Budget and Accounting Transparency Act would formally bring Fannie Mae and Freddie Mac on-budget and require their debt issuance be accounted for in the calculation of the federal debt; and would require fair value accounting for federal credit programs to appropriately evaluate the level of risk being absorbed by the taxpayers," added Garrett. "This bill not only gets us to a point where we can fully understand the severity of our country's financial troubles, but provides the transparency we so desperately need to prevent runaway spending in the future. I was encouraged to see so many of my colleagues recognize the need for these reforms and look forward to voting for this important bill when it reaches the House floor."