Mr. TONKO. Madam Chair, I rise today to offer an amendment to H.R. 3581, the Budget and Accounting Transparency Act.
My amendment restores a critical step that was skipped by my Republican colleagues. You see, we never once had a hearing in the Budget Committee devoted specifically to exploring the main proposal contained in this bill--the use of fair value estimates to determine the cost of Federal loans. If I could change that, I would, but my Republican colleagues have pushed this bill to the floor.
When so many at home look at Congress and shake their heads at the political gamesmanship that has come to dominate this institution, my amendment simply asks that we take a moment to be objectively smart rather than just politically savvy about a policy decision with major repercussions.
If this legislation took effect this year, CBO estimates that we would see the Federal deficit jump by $55 billion. This is a bill that would impact things like housing loans, student loans, small business loans, and even our mortgage guarantee programs for vets. It would create the appearance that these loans and loan guarantees cost more with an accounting method that is relatively new and certainly under debate.
For a bill with ``transparency'' in its title, we're talking about using some pretty mirky math. My Republican colleagues will say that we need CBO estimates on loans to reflect the risk involved in Federal lending. That makes sense, which is why we already do it. The approach under current law already reflects the risk that borrowers will default on their loans or guarantees.
The real difference here is whether we think estimates of Federal loans should be based on how the government borrows and lends or, alternately, on how the private sector borrows and lends. I understand my colleagues have a great esteem for private sector business practices, and as a former small business owner myself, I share that admiration; but we have to understand that the Federal Government of the most powerful country on Earth isn't a private actor.
No private lender is in the same position as the Federal Government with its ability to borrow at Treasury rates and its ability to spread risk across such a broad portfolio. So, understandably, there is significant debate as to whether and how fair value estimates could be applied to government loans. The bottom line is that it would involve a lot of guesswork.
At a time when our housing market has been devastated, when our workforce is struggling to attain the knowledge and skill set it needs in a difficult job market, when small businesses are fighting their way out of the worst recession since our Great Depression, and when our vets are facing a higher jobless rate than the rest of the country, why on Earth would we make a change of this magnitude without consulting with the best budget and accounting minds in our country? The impact of this legislation is too big to be treated more like an election year talking point than a major policy change with very real impacts on the people that we are here to represent.
That is why I am offering this modest proposal. My amendment simply proposes that we convene a commission of budget and accounting experts to provide recommendations to Congress regarding the best measure to accurately account for the costs of Federal credit programs. Congress will then have the opportunity to vote on the commission's recommendations, and if changes are deemed wise, we can move forward with the smartest course of action and with a policy that brings our Federal loan and loan guarantee estimates into uniformity. After all, as we heard on this very floor, it's the people's money we're dealing with.
I urge my colleagues to look before we jump on this one, and I urge support of my amendment.
With that, I yield back the balance of my time.