[Congressional Record Volume 156, Number 111 (Tuesday, July 27, 2010)]
[House]
[Pages H6045-H6046]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
DEFICIT REDUCTION--A RETURN TO FISCAL RESPONSIBILITY
The SPEAKER pro tempore. The Chair recognizes the gentleman from
Virginia (Mr. Connolly) for 5 minutes.
Mr. CONNOLLY of Virginia. Mr. Speaker, there has been considerable
finger pointing, misdirected, I might add, by our colleagues on the
other side of the aisle, with respect to who is responsible for the
mountain of debt weighing on our Nation. I rise to set the record
straight and highlight just some of the actions we have taken to reduce
the deficit and restore fiscal responsibility.
When this Congress took office in January of 2009, we inherited the
worst recession since the Great Depression and a $1.2 trillion annual
deficit with red ink forecast far into the future. As my colleagues
will recall, the general concern 10 years ago in the financial sector
was whether the United States bond market could survive in the event
that the entire national debt was retired as projected at the time.
Starting in fiscal year 1998, we had three straight budget surpluses,
totaling more than $559 billion, with a projected $5.6 trillion surplus
well into the decade.
Unfortunately, we now know what happened next. The Bush
administration and Republican-controlled Congresses cast aside fiscal
discipline and made a number of reckless, long-term budget decisions
that turned record surpluses into record deficits. They initiated two
wars, enacted two long-term tax cuts, and a new, permanent entitlement
program, none of which was paid for, and all of which added to the
debt. These actions alone added $6.6 trillion to the national debt and
left the Federal budget fundamentally unbalanced for the foreseeable
future. Tragically, but predictably, the $5.6 trillion in projected
surpluses became more than $6 trillion in national debt.
But, Mr. Speaker, while we inherited these budget deficits, we also
inherited the responsibility to do something about them. The American
people don't want to see more of the same bankrupt fiscal policies of
the past. They want to return to fiscal responsibility, and this
Congress has taken a number of steps to do just that.
Earlier in this Congress, we adopted one of the most significant
deficit reduction tools, reinstituting statutory PAYGO, or pay-as-you-
go legislation. PAYGO is a simple concept: If you've got an idea,
you've got to pay for it. And we know it works.
In 1990, in the face of then record deficits, Congress enacted
statutory PAYGO, which helped lead to three straight years of
surpluses. Unfortunately, in 2002, President Bush and a Republican-
controlled Congress failed to reenact PAYGO. The results were
disastrous and predictable--an immediate return to record deficits. Our
restoration of PAYGO this year is a critical step in controlling
spending and reducing deficits.
Mr. Speaker, the House of Representatives has made deficit reduction
a priority with the passage of a number of important pieces of
legislation. One of the largest drivers of the deficit has been the
rising cost of health insurance premiums and health care costs.
According to the Congressional Budget Office, the health insurance
reform law will finally bend the cost curve and reduce the deficit by
$124 billion over the next 10 years, and $1.2 trillion in the 10 years
thereafter.
Through passage of the Student Aid and Responsibility Act, we
reformed the college loan program, producing new efficiencies,
expanding opportunity for millions of young people, and we reduced the
deficit by $19 billion.
We responded swiftly to a Government Accountability Office report
highlighting billions of dollars of cost overruns and wasteful Pentagon
spending for weapons and services. The Weapons System Acquisition
Reform Act and the IMPROVE Acquisition Act passed by this Congress will
crack down on more than $300 billion in wasteful spending, further
reducing the deficit, and will ensure that our defense dollars are
serving the actual needs of our men and women in uniform.
The American Clean Energy and Security Act which passed this body set
new standards for energy efficiency and use of renewable energy, which
would reduce the deficit by $9 billion over the next decade.
The recently passed Wall Street Reform and Consumer Protection Act
will
[[Page H6046]]
enforce greater accountability of risky bank practices and reduce the
deficit by $3.2 billion over the next 10 years.
Beyond those actions, President Obama's proposed 3-year spending
freeze for non-security discretionary spending will reduce the deficit
by another $250 billion over the next decade. The recently adopted
House budget for fiscal year 2011 reduces the President's request by
billions of dollars. I support the President's bipartisan National
Commission on Fiscal Responsibility and Reform and its efforts to
identify even further opportunities for additional deficit reduction.
Mr. Speaker, despite inheriting record deficits, we have taken a
number of steps that will restore fiscal responsibility and reduce the
deficit. Already, our actions, coupled with the improving economy, have
resulted in more than $250 billion in reduction of the debt in the
current year alone.
The United States went almost 30 years between budget surpluses from
1969 to 1998. The actions of this Congress have set us on the path to
ensure it doesn't take another generation.
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