[Congressional Record (Bound Edition), Volume 151 (2005), Part 18]
[House]
[Page 25017]
[From the U.S. Government Publishing Office, www.gpo.gov]




                    FEDERAL SPENDING AND THE DEFICIT

  Mr. DREIER. Mr. Speaker, as we all know this week, the House will 
consider very important legislation to reduce Federal spending, root 
out waste and fraud in government programs, and make a large dent in 
our Federal deficit. Along with cutting taxes and supporting job 
creation, making government more responsive is a critical part of our 
Republican agenda to keep our economy growing.
  Mr. Speaker, the numbers are in. Our agenda is working for the 
American people. Despite the destruction caused by Hurricanes Katrina 
and Rita, the economy grew at a 3.8 percent GDP level last quarter. 
Now, that is ahead of the second quarter and certainly ahead of 
projections that we had in the wake of those hurricanes. Over the past 
12 months, nearly 2 million new jobs have been created.
  Because of tax cuts and a strong economy, Federal revenue increased 
by almost 15 percent last year, and the deficit fell by nearly $96 
billion. Mr. Speaker, this happened not by raising taxes, but by 
cutting them and empowering America's entrepreneurs. In the face of 
such remarkable progress, we are not about to let up. We are moving 
forward with reforms that will save more than $50 billion over the next 
5 years. This will help us reduce the deficit even further and support 
rebuilding along the gulf coast.
  I commend the hard work done by all the committees who found 
significant savings in mandatory programs without altering benefits to 
those who are truly in need. While I am hoping for bipartisan support 
of this legislation, I fear that my colleagues on the other side of the 
aisle will stand in the way of restraint and reform. After all, my 
Democratic friends voted against our responsible budget. During the 
appropriations process, Mr. Speaker, they offered amendments that would 
have increased Federal spending by $61 billion.
  While they measure compassion through spending, we demand results 
through reform. Mr. Speaker, mandatory spending needs to be reformed. 
Each year, the government funds critical programs at increasingly 
higher levels. But we have seen that automatic spending breeds 
unaccountable spending.
  Consider Medicaid. As medicine has made rapid advances over the past 
two decades, Medicaid has not been updated. The program costs more, 
delivers less, and, as we all know, is beset with abuse. In 2002, the 
Department of Health and Human Services found that Medicaid was paying 
pharmacies $1.5 billion more than the cost of those drugs they were 
dispensing. In one case, Medicaid paid over $5,000 for a prescription 
that cost a pharmacy just $88.
  Our reforms will save billions by giving States more flexibility, 
eliminating fraud and ensuring the system only serves the needy. It is 
also important to note that Medicaid will continue to grow in the years 
ahead. Right now, it grows at a rate of 7.3 percent. Under our plan, it 
will grow at 7 percent.
  We are also zeroing in on other programs, Mr. Speaker, that can 
benefit from reforms. The food stamp program nearly doubled to $35 
billion over the past 5 years. While funding will continue to grow, we 
are targeting savings of less than one-half of 1 percent. We will do 
this in part by extending the eligibility waiting period for 
noncitizens from 5 to 7 years.
  Mr. Speaker, public benefits should not be a magnet for immigration. 
Over the past 5 years, Federal spending for child support 
administrative costs has increased by 29 percent while caseloads have 
declined by 8 percent. The Ways and Means Committee saves over $3 
billion by splitting administrative costs 50/50 with the States, the 
same match that they use for other entitlement programs.
  Mr. Speaker, our savings proposals are common sense and responsible, 
and they represent a very good and important start. In the months 
ahead, we will continue to work for ways to cut the deficit, eliminate 
waste and reduce discretionary spending. Because as Republicans, we are 
committed to growing our economy, not Federal spending.
  Mr. Speaker, I look forward to what I know will be a lively debate on 
this issue as we bring our package for reform forward, and it will, I 
believe, when we implement this, help us in our quest to keep the 
economy growing and to reduce the Federal deficit. It is my hope, Mr. 
Speaker, that at the end of the day, we will be able to see bipartisan 
support for this very appealing, very attractive, very important 
package.

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