[Congressional Record Volume 141, Number 80 (Monday, May 15, 1995)]
[Extensions of Remarks]
[Pages E1037-E1038]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


            H.R. ----, THE REGULATORY ACCOUNTING ACT OF 1995

                                 ______


                       HON. THOMAS J. BLILEY, JR.

                              of virginia

                    in the house of representatives

                          Monday, May 15, 1995
  Mr. BLILEY. Mr. Speaker, today I am introducing H.R. ----, the 
Regulatory Accounting Act of 1995. The Regulatory Accounting Act of 
1995 provides an important tool to understand the magnitude and impact 
of Federal regulatory programs on our economy. Currently, the executive 
branch and Congress devote a great deal of time and effort to prepare 
and debate the annual budget of the Federal Government. This budget 
determines how much money the Federal Government will collect and where 
it will spend the money. The budget for fiscal year 1995 is 
approximately $1.5 trillion.
  The Federal budget, however, fails to take into account the full 
impact of Federal programs on the U.S. economy. The Federal Government 
also imposes tremendous costs on the private sector, State and local 
governments and, ultimately, the public through ever-increasing Federal 
regulations. Some recent estimates place the compliance costs from 
Federal regulatory programs at over $600 billion annually and project 
substantial growth even without new legislation. This amounts to $6,000 
per year per family. The costs are often hidden in increased prices for 
goods and services, loss of international competitiveness in the global 
economy, lack of investment in private sector job growth, and pressure 
on the ability of State and local governments to fund essential 
services, such as crime prevention and education.
  The benefits of Federal programs are no doubt substantial. Lack of 
accountability and regulatory reform, however, has left many Federal 
programs inefficient or marginally productive. Unlike the private 
sector, where freedom of contract and free market competition 
[[Page E1038]] drive price and quality, Federal programs are only 
accountable through the political process. Moreover, historically, both 
Congress and the executive branch have driven growth in Federal 
regulatory programs, creating layer upon layer of bureaucracy at great 
cost and with diminishing returns for the American people. If Congress 
and the executive branch do not take concrete steps to reform these 
programs, the United States will surely decline in the world economy. 
Consequently, the quality of life for our children will also decline.
  The Regulatory Accounting Act of 1995 is an important management tool 
to evaluate the cumulative impacts of regulatory programs through an 
accounting of national expenditures and statements of corresponding 
benefits for each regulatory program. The cumulative impact of 
regulatory costs must be debated at the same level that taxing and 
spending are debated; after all, they are all driven from the same two 
sources--the private sector and the American people. Rule-by-rule 
evaluations are insufficient to capture cumulative impacts or manage 
national expenditures. Moreover, a national debate that focuses solely 
on the $1.5 trillion Federal budget without accounting for the 
additional $600 billion in annual regulatory costs is an incomplete and 
uninformed debate that leads to poor national policy and management of 
resources.
  What is needed is an accounting tool that allows the Federal 
Government to fully understand the cumulative impact of Federal 
programs. The Regulatory Accounting Act would provide such a tool. The 
bill requires the President to provide an accounting statement every 2 
years respecting the costs of regulation to the private sector and 
State and local governments, and Federal Government costs by program or 
program element. The President would also provide quantitative or 
qualitative statements of corresponding benefits. Such an accounting 
offers the opportunity for comprehensive analyses of impacts on our 
economy through an associated report. The bill also provides for input 
from the public and opportunities to identify areas for regulatory 
reform.
  The legislation changes no regulatory standard or program. It will, 
however, provide vital information to Congress and the executive branch 
so they may fulfill their obligation to ensure wise expenditure of 
limited national economic resources in all regulatory programs.


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