[Congressional Record Volume 153, Number 138 (Tuesday, September 18, 2007)]
[Senate]
[Pages S11662-S11665]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. CONRAD (for himself and Mr. Gregg):
  S. 2063. A bill to establish a Bipartisan Task Force for Responsible 
Fiscal Action, to assure the economic security of the United States, 
and to expand future prosperity and growth for all Americans; to the 
Committee on the Budget.
  Mr. CONRAD. Madam President, I rise today to introduce, along with 
Senator Judd Gregg, the ranking member of the Senate Budget Committee, 
legislation we have called the

[[Page S11663]]

Bipartisan Task Force for Responsible Fiscal Action. We are introducing 
this legislation because, as the chairman and ranking member of the 
Budget Committee, we understand that we are on an unsustainable fiscal 
course; that we confront a budgetary crisis of unprecedented 
proportions if we fail to act. That crisis will be caused by a 
combination of our current budget deficits and enormous Federal debt, 
combined with the explosion created by the baby boom generation.
  Here is the outlook we confront with respect to the demographic tidal 
wave coming at us. We see, in 2007, we are at about 40 million people 
who are of retirement age, and that will grow to 80 million by 2050, 
dramatically changing the budget circumstance for this country.
  We know we face enormous challenges with Medicare and Social 
Security. You can see the long-term cost of Medicare. The shortfall 
over 75 years is now estimated at $33.9 trillion. The shortfall in 
Social Security over that same period is $4.7 trillion. These are 
staggering amounts, a shortfall in Medicare of almost $34 trillion, a 
shortfall in Social Security of over $4.7 trillion.
  Looked at another way, Medicare and Medicaid spending, according to 
experts, if it stays on the current course, will consume as much of our 
national economy as the entire Federal budget does today.
  Let me repeat that. If the trend lines continue, by 2050 we will be 
spending as much, just on Medicare and Medicaid, of our national income 
as we spend for the entire Federal Government today. This fundamentally 
threatens the economic security of the country.

  At the same time, we have tax cuts in place. they are extended, 
according to the President's proposal, it will drive us right over the 
cliff.
  This chart shows the Medicare deficits in purple, the Social Security 
deficits in green, and the cost of extending the President's tax cuts 
in red. We can see the combined effect is to take us right over the 
fiscal cliff, deep into debt and deficit in a way that is 
unprecedented.
  The Chairman of the Federal Reserve said this about our budget 
outlook in January:

       [O]ne might look at these projections and say, ``Well, 
     these are about 2030 and 2040 and so . . . we don't really 
     have to start worrying about it yet.'' But, in fact, the 
     longer we wait, the more severe, the more draconian, the more 
     difficult . . . the adjustments are going to be. I think the 
     right time to start is about 10 years ago.

  The Chairman of the Federal Reserve has it right.
  Senator Gregg and I are coming to our colleagues today and calling 
for this bipartisan task force for responsible fiscal action.
  What would it do? Simply, it would be given the responsibility to 
address our unsustainable long-term imbalances between spending and 
revenue. Everything is on the table. The task force would consist of 16 
members, 8 Democrats, 8 Republicans, all of them Members of Congress, 
except for 2 representing the administration. The Secretary of the 
Treasury would chair the task force. The obligation of this group would 
be to submit a report on December 9, 2008. It would take 12 of the 16 
members to report a blueprint for our fiscal future. They would be 
given the responsibility to find ways to address the shortfall in 
Medicare and Social Security and the ongoing and endemic budget 
deficits. These 16 members, 8 Democrats, 8 Republicans, would have the 
opportunity and the responsibility to develop a plan for our fiscal 
future, but it would take 12 of the 16 to report a plan, and the plan 
would only come at the beginning of the next administration. This would 
not be part of election year politics. This would be part of a serious 
plan to address our long-term fiscal imbalances.

  If 12 of the 16 agreed to a plan, it would then receive fast-track 
treatment in the Senate. It would come to a vote without amendment 
after 100 hours of debate. Final passage would require a supermajority, 
60 votes in the Senate, 60 percent of the House of Representatives.
  Senator Gregg and I have worked on this all year. We have discussed 
this with many Members in both the House and the Senate. This is our 
best judgment of how best to proceed. We believe this would give the 
Congress and the country an opportunity to write a better fiscal 
future, one that would strengthen America, reduce our dependence on 
foreign capital and put us in a position to keep the promise that has 
been made to the American people of a country that is strong and fair, 
that respects those in retirement and, at the same time, gives maximum 
opportunity to those working to strengthen their families and this 
country.
  I thank my colleague Senator Gregg, the ranking member of the Budget 
Committee, for the extraordinary time and effort he has put into 
developing this proposal.
  I ask unanimous consent to have printed comments in the Record about 
this proposal: Support for it from David Walker, the Comptroller 
General of the United States; support from the Concord Coalition, the 
bipartisan Concord Coalition that is well known for its support of a 
fiscally responsible future; and from the Committee for a Responsible 
Federal Budget.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                        Conrad/Gregg Task Force

       I would like to thank and commend Chairman Conrad and 
     Senator Gregg for their leadership in connection with the 
     issue of fiscal sustainability and intergenerational equity. 
     As I have noted on numerous occasions, our nation is on an 
     imprudent and unsustainable fiscal path. Tough choices are 
     required in order to help ensue that our future is better 
     than our past The sooner we make these choices the better 
     because time is working against us.
       During the past two years, I have traveled to 23 states as 
     part of the Fiscal Wake-up Tour. During the Tour, it has 
     become clear that the American people are starved for two 
     things from their elected officials--truth and leadership. I 
     am here today because Senators Conrad and Gregg are trying to 
     address this need. I'm pleased to say that several other 
     members on both side of the political aisle and on both ends 
     of Capitol Hill are taking steps to answer this call by 
     proposing bills to accomplish similar objectives and by also 
     putting ``everything on the table.''
       I was especially pleased to see that the ``Task Force'' 
     that would be created by Senator Conrad's and Gregg's 
     legislation was informed by GAO's work on the key elements 
     necessary for any task force or commission to be successful. 
     For example, the commission would have a statutory basis, be 
     bipartisan, involve leaders from both the executive and 
     legislative branch, and would require a super-majority vote 
     for any recommendations to be sent to the President and the 
     Congress. As a result, the Conrad-Gregg proposal provides one 
     potential means to achieve an objective we all should share--
     taking steps to make the tough choices necessary to Keep 
     America Great, and to help make sure that our country's, 
     children's and grandchildren's future is better than our 
     past. Hopefully, this and other related bills will be given 
     serious and timely consideration by the Congress and the 
     President.
       Thank you Senators Conrad and Gregg for your leadership and 
     thank you for the opportunity to join the both of you today.
                                  ____


              [From the Concord Coalition, Sept. 18, 2007]

  Concord Coalition Praises Senators Conrad and Gregg for Bipartisan 
            Initiative To Address Long-Term Fiscal Imbalance

       Washington.--The Concord Coalition today praised Senate 
     Budget Committee Chairman Kent Conrad (D-ND) and Ranking 
     Member Judd Gregg (R-NH) for introducing legislation that 
     would create a bipartisan commission charged with developing 
     specific solutions to the nation's long-term fiscal 
     imbalance.
       ``There is very little dispute that current fiscal policies 
     are unsustainable. Yet, too few of our elected leaders in 
     Washington are willing to acknowledge the seriousness of the 
     long-term fiscal problem and even fewer are willing to put it 
     on the political agenda. By focusing attention on this 
     critical issue and insisting that it must be dealt with in a 
     bipartisan manner, Senators Conrad and Gregg are setting a 
     very positive example,'' said Concord Coalition Executive 
     Director Robert L. Bixby.
       Changing course to a more sustainable path will require 
     hard choices, the active involvement of the American people 
     and suspension of partisan trench warfare. Since the regular 
     legislative process has been incapable of dealing with the 
     impending fiscal crisis, a new bipartisan commission makes 
     sense as a means of jump-starting serious action,'' Bixby 
     said.
       In Concord's view, several aspects of this proposal are 
     promising:
       First, the commission would have equal representation from 
     Democrats and Republicans. It would thus be truly 
     bipartisan--an essential element for success.
       Second, the commission would have a broad mandate to 
     address the overall fiscal imbalance, not just the actuarial 
     imbalance of individual programs.
       Third, there are no preconditions. If either side sets 
     preconditions, the other side will not participate.

[[Page S11664]]

       Fourth, the commission's recommendations would be given an 
     up or down vote in Congress. Absent that, the report would 
     likely join many others on a shelf.
       ``This proposal, and others like it that are now being put 
     forward, are very welcome. Our experience with the Fiscal 
     Wake-Up Tour is that the public is hungry for a nonpartisan 
     dialogue on the long-term fiscal challenge. When presented 
     with the facts, they appreciate that each of the realistic 
     options comes with economic and political consequences that 
     must be carefully weighed, and that there must be tradeoffs. 
     This commission would help to clarify those trade-offs and 
     establish a process for resolving them,'' Bixby said.
                                  ____


 [From the Committee for a Responsible Federal Budget, Sept. 18, 2007]

               CRFB Praises Bipartisan Task Force Effort

       Washington, DC.--Today, the Committee for a Responsible 
     Federal Budget applauded the effort by Senators Conrad and 
     Gregg to form a Bipartisan Task Force on Responsible Fiscal 
     Action.
       ``This is precisely the type of bipartisan collaboration we 
     need to jumpstart the discussion of how to confront the 
     nation's fiscal challenges,'' said Maya MacGuineas, President 
     of the Committee for a Responsible Federal Budget. ``Bringing 
     together sitting Members of Congress and representatives from 
     the Administration to discuss these daunting challenges and 
     evaluate the options for reform is a critical first step. We 
     applaud the effort to get this discussion underway and very 
     much hope that it leads to the hard choices that are needed 
     to rebalance the federal government's budget.''
       The task force would be made up of sixteen members. Seven 
     would come from the House of Representatives (four appointed 
     by the Speaker of the House and three appointed by the 
     Minority Leader of the House); seven would come from the 
     Senate (four appointed by the Majority Leader of the Senate 
     and three appointed by the Minority Leader of the Senate); 
     and two would come from the Administration (one of whom would 
     be the Secretary of the Treasury, who would serve as the 
     Chairman of the task force). The task force would review all 
     areas of the budget including Social Security, Medicare, and 
     taxes. The task force would be responsible for submitting a 
     set of policy recommendations to improve the federal 
     government's fiscal imbalances, which would then be 
     considered by Congress on an expedited basis.
       While the specific mission of the task force--to 
     significantly improve the long-term fiscal balance of the 
     federal government--is somewhat vague, it nonetheless 
     represents an important effort to begin discussing these 
     issues on a bipartisan basis with no preconditions regarding 
     the policy options which can be considered. The Committee for 
     a Responsible Budget supports the creation of a Bipartisan 
     Task Force as an important first step to addressing the 
     country's fiscal policy challenges.

  Mr. CONRAD. Again, I recognize my colleague, the very able Senator 
from New Hampshire, the ranking member of the Senate Budget Committee.
  The PRESIDING OFFICER. The Senator from New Hampshire.
  Mr. GREGG. Let me begin by thanking the chairman of the Budget 
Committee, Senator Conrad, for moving forward with this important 
effort to try to reach a conclusion and progress on the most 
significant issue this Nation faces beyond our fight with Islamic 
terrorism. In the post-Katrina world, if the country knew that a 
category 5 hurricane was headed at us, we knew where it was going to 
hit, we knew the size of the hurricane, and we knew the damage it would 
do, the Government would be absolutely irresponsible not to respond to 
that.
  What we have coming at us is a category 5 fiscal hurricane. We know 
when it is going to hit, and that is when the baby boom generation 
retires and begins to retire next year and reaches its peak in its 
retirement size by about the year 2025. We know the impact of the 
problem, the size of the problem, that there is $62 trillion of 
unfunded liability which will be generated by the retirement of the 
baby boom generation to pay for the benefits under Medicare, Medicaid, 
and Social Security.
  To try to put that in context, that is more than the entire net worth 
of all of America--all our homes, cars, stocks, all our assets. That is 
how big this liability is. We know the effect of this category 5 fiscal 
hurricane because we know it is going to basically wipe out the ability 
of our children and our children's children to have as high a quality 
of life as we have had because the cost of paying for this fiscal 
tsunami will be so high.
  We need to get on to the issue of trying to address this looming 
threat. As the Comptroller General said today, we have a category 5 
hurricane headed at us and people are still playing on the beach as if 
the wave is not going to arrive. Well, the wave is going to arrive. So 
what the chairman of the Budget Committee has put forward today--and I 
am honored to have the opportunity to participate in this effort--is a 
proposal to move forward with substantive and definitive legislation 
which will result in action. That is what we need--action. It is 
similar to the old Fram oil filter ad: You can pay me now or you can 
pay me later. If we act now, the cost is going to be less than if we 
act later.
  So this proposal, which has been put together after a lot of thought 
and effort on behalf of myself and Senator Conrad, is basically built 
around three concepts. First, that there must be absolute 
bipartisanship. So as Senator Conrad has outlined, the task force, when 
it meets, must have a three-fourths vote in favor of whatever proposal 
they bring forward. Secondly, everything has to be on the table. 
Nothing can be off. After all the discussion, in order for this to 
work, all these parts interplay with each other, you have to be willing 
to address not only reform and how you deliver better benefits at a 
lower cost under Medicare and Medicaid and better benefits at a 
reasonable cost under Social Security, but you also have to address the 
tax side of the ledger. So everything needs to be on the table. Third, 
that for this to work, there has to be an action-forcing mechanism. We 
have seen report after report, commission after commission. A lot of 
them have done excellent work. But on these issues, which are such hot 
buttons, what happens is, a commission will make a report, and all the 
interest groups will attack it from this side and that side and the 
next side. So this proposal is structured so there is an action-forcing 
event; specifically, fast-track approval which, again, has to be by a 
supermajority of the final report of the task force.
  This truly is an opportunity to move forward to address this issue. 
Our failure to do so would be truly ironic because the problem which we 
confront as a nation, which I say is probably the single biggest issue 
after the war on Islamic terrorism, fighting the war against Islamic 
terrorism, is that this fiscal category 5 hurricane is headed toward 
us, which is essentially going to wipe out our children's opportunity 
to have a quality of lifestyle equal to ours, is totally the 
responsibility of the present generation who is governing, the baby 
boom generation. We are the generation of governance today. So before 
we pass our problem on to the next generation, we have a responsibility 
to address it and to try to improve the effort.
  I know, as I look around this Chamber and at this administration, 
there are people of goodwill who, given the right structure, which this 
task force is, would be willing to come together, make the difficult 
decisions, and have the expertise to know how to make those decisions 
to move maybe not a complete resolution of these issues but a 
significant resolution of the issues down the road so the next 
generation does not have to bear the whole burden of resolving the 
problems. It is time to act.
  I congratulate the chairman of the Budget Committee for being the 
force behind getting this effort going. It is a very positive 
initiative. I think it will be received very well on our side of the 
aisle. I believe strongly that the administration will receive it well. 
Therefore, I believe we have a great opportunity to move forward in a 
way which will make sure our children and their children have as good a 
country and as strong a country from the standpoint of fiscal policy as 
we have.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from North Dakota.
  Mr. CONRAD. Madam President, I again thank my colleague, Senator 
Gregg, who has been incredibly engaged in this effort. He is very 
fairminded in the structure of this proposal and I think visionary in 
terms of understanding the need for action.
  I say to my colleagues or staffs who may be listening, all those who 
recognize we are headed for a fiscal cliff and that we need to take 
action, this is our opportunity. This is it. Those who say we have to 
do something, here is our chance. This is completely bipartisan, eight 
Democrats, eight Republicans. It takes 12 of the 16 to make a report, a 
supermajority; that is, to assure it is bipartisan in result. This is a 
task

[[Page S11665]]

force of Members of Congress and representatives of the administration, 
14 Members of Congress, 2 representatives of the administration. It is 
not outside experts, people who would not be responsible or be held 
accountable for the outcome. These will be people who are accountable, 
who are responsible for the outcome. This is a measure that will lead 
to a vote.
  I say to my colleagues, this will assure that the work of this group 
will come before the Congress if 12 of the 16 agree. Because if they 
do, there will then be 100 hours of debate but no amendment permitted, 
and there will be a vote up or down. Those who recognize it takes us 
working together to face up to these difficult problems, I ask them to 
join with us, Republicans and Democrats. Absent this, I suspect what 
will happen is further delay, further divisiveness, and no real result. 
That will mean even tougher choices in the future.
  I urge my colleagues to think carefully of this moment. This will not 
be considered until after the election. We have done everything we can 
to take election politics out of this, understanding it is highly 
unlikely that a matter of this import would be considered in an 
election year and that perhaps the best opportunity is at the beginning 
of a new administration. None of us know whether the new administration 
will be a Republican or a Democratic administration. None of us can 
know the makeup of the next Congress. What we do know is we face a 
ticking timebomb. The faster we act, the better for our Nation.
  Mr. GREGG. Will the Senator yield for a question?
  Mr. CONRAD. I am happy to yield.
  Mr. GREGG. I think the Senator made an excellent point that we are 
now in a Presidential election. This Commission is a gift to those 
candidates because they can come forward and point to this Commission 
as taking on some of the most complicated issues they are going to 
face. Because this timebomb--which is an appropriate description, using 
the Senator's words--is going to start to explode, and the explosion 
will be rather large during the term of the next Presidency.
  So this is an opportunity to give those candidates for President a 
forum and a procedure where these issues, which are so critical to the 
success of the next Presidency, can actually be moved down the road 
toward resolution. Is that not true?
  Mr. CONRAD. I thank the Senator. I had a number of my colleagues, as 
the Senator knows, come to me with great concern. Their concern was: 
Gee, you are putting the Presidential candidates in an awkward 
position. How are they going to react to this? My reaction was: This is 
a gift to all the Presidential candidates, this is a gift to the next 
administration because this will provide them a bipartisan blueprint on 
how to proceed with some of the most vexing issues facing this country.
  So I see absolutely no downside for either side, Republican or 
Democratic--for Presidential candidates on either side or candidates 
for Congress on either side--because this is a process leading to a 
proposal that would have bipartisan support if it is to proceed.
  If I were an incoming administration, I would welcome a bipartisan 
plan to deal with Social Security, with Medicare, with the growth of 
deficits and the debt, and not to have it come in the middle of an 
election but to only be presented after the election but before the 
next Congress meets and the next administration takes on its 
responsibilities.
  I see it as not only a gift to the candidates but, more importantly, 
as a gift to the American people to take on some of the greatest 
challenges facing our country and to do it in a bipartisan way and to 
do it in a way that actually leads to a result and action.
  Mr. GREGG. I once again congratulate the chairman of the Budget 
Committee for his exceptional leadership in this area. This is the 
first step in a bipartisan effort which, hopefully, will lead to a 
bipartisan solution that America will see as fair and which will pass 
on to our children a stronger and more vital Nation.
  Thank you.
  Mr. CONRAD. I again thank my colleague. This is the beginning of an 
effort. I ask colleagues on both sides, please, join us in this effort. 
Let's do what we all know must happen--that we must take on these 
issues, that we must come up with solutions, and we must do it sooner 
rather than later.
  I thank my colleagues.
                                 ______