[Congressional Record (Bound Edition), Volume 159 (2013), Part 1]
[Senate]
[Pages 536-537]
[From the U.S. Government Publishing Office, www.gpo.gov]




                             FISCAL POLICY

  Mr. COATS. Madam President, earlier this week, through the eyes of 
the Nation watched the inauguration ceremony here in Washington. A week 
before that, back in Indiana, I was present for the celebration of the 
inauguration of Indiana's 50th Governor, former Congressman Mike Pence, 
who is taking over after 8 years of leadership under our former 
Governor, Mitch Daniels. So back-to-back weekends had two special 
events.
  Inauguration ceremonies are a time for reflection on what has 
happened in the past and a time for new vision on how we ought to go 
forward with the future. It is also a time for new opportunity. An 
opportunity for the kind of change necessary to address the problems 
and challenges we face.
  As I participated in the inauguration events for Governor Pence in 
Indianapolis just two weekends ago, I couldn't help but think of the 
remarkable record of achievement and the bold reforms that our former 
Governor, Mitch Daniels, delivered to the Hoosier State and the lessons 
they may offer to Washington.
  In 2005, Indiana faced a several-hundred-million-dollar deficit. This 
pales by comparison to the deficit we face here; but, nevertheless, for 
a State of our size it is a significant amount. Although it is 
constitutionally mandated in Indiana, we had not balanced our budget 
for 7 years. Governor Daniels and his team had a vision and the 
political courage to make much needed changes, and the people of 
Indiana supported and responded. While other States increased spending 
and raised taxes, Indiana reduced spending, cut taxes, and paid down 
our debts.
  Governor Daniels, with the help of the legislature and with the 
support of the people of Indiana, slowed down the rate of spending. The 
State's expenditures have grown at less than one-quarter the rate of 
the previous decade. We also reduced the size of State government.
  Indiana has the fewest State employees per capita in the country. We 
paid down the previous debt by 43 percent, and we currently sit with a 
budget surplus and a rebate program which will give money collected in 
taxes back to the taxpayer because of our state's efficiency and 
effectiveness in terms of running our government. Indiana, as a result 
of this, has received its first AAA credit rating. This means when we 
do need to borrow or sell bonds to do certain infrastructure or meet 
other needs, we can receive low interest rates because of our superb 
AAA rating. All this has transformed Indiana's balance sheet and made 
our State one of the most attractive places to live, raise a family, 
and do business in the Midwest, if not in the Nation.
  The story of Indiana and how it got hold of its fiscal issues has 
been written up in national journals and newspapers and documentaries 
and others. It is a remarkable story. It is not unique because we see 
these things happening in other States around the country led not only 
by Republican Governors but Democrat Governors. These are the kinds of 
decisions that have to be made and are being made to restore state and 
local governments. And it has created a much brighter future for the 
citizens of those States.
  Governor Daniels has often said, ``You'd be amazed by how much 
government you'll never miss.'' The results of his administration back 
that up.
  You can go around Indiana, as I have, and talk to people from big 
cities to small, rural to urban and everything in between and ask them 
how we have moved from deficit to surplus in our state. You can ask if 
they still believe our state performs the necessary functions of 
government and you can ask Hoosiers what has been cut that you think 
should have stayed.
  Frankly, no one could come up with an answer that says: We have had 
disastrous consequences from these decisions. The vast majority say 
that things are working pretty well. In fact, I can get my license 
renewed through a total revamp of our licensing system in just a few 
minutes over the Internet or just a few minutes at the DMV. Governor 
Daniels' measure for that was in and out in less than 7 minutes.
  For those of us who have spent hours and hours committing half a day 
or more to getting our license renewed, this is a remarkable 
achievement. The use of technology, privatization, and the use of more 
efficient government demands that our civil servants do more with less 
and this has proven to be effective.
  While the fiscal situation we faced in Indiana is not totally 
analogous to what we face here, the principles are the same, and there 
still are many similarities. As Washington seeks answers at the start 
of this new session of Congress on how we move forward and address our 
extremely serious debt situation and get our fiscal house back in order 
so that we too can retain a AAA rating and so we too can provide the 
opportunity for growth and opportunity not just for the middle class 
but for all Americans in the future, maybe there are some lessons to be 
learned from Indiana. The spend less, borrow less, and tax less Hoosier 
model has resulted in balanced budgets, job creation, and a AAA credit 
rating. In contrast, the spend more, borrow more, and tax more approach 
in Washington during these last several years has resulted in fewer 
jobs, higher debt, and a threatened downgrade from credit agencies.
  So as we reflect back on the last 4 years of this current 
administration, it is clear to me we must take a different course in 
the second term of this administration.
  Whether lawmakers want to admit it, the crux of our problem is this: 
Washington has promised Americans far too much and committed well 
beyond our means. Federal spending and borrowing cannot continue at 
this current pace without dire consequences.
  Whether one is reading or listening to a liberal, conservative or a 
nonpartisan economist or an analyst, there is a consensus that 
sustaining our current rate or continuing our rate of borrowing and 
spending simply is not feasible and the consequences will be dire if we 
do not address it.
  As we seek to address these issues, my suggestion for Washington is 
to take a look at the Hoosier model. It is tested, it is proven, and it 
is working.
  We need to go big and bold. We need to have the political courage to 
look beyond the short-term political consequences, as we perceive them, 
to the long-term benefit from sound policies--which, interestingly 
enough, translate into good politics. Strengthening the economy and 
getting our country on a track to brighter and more prosperous times 
should be our priority.
  We have proven in Indiana that good policy, no matter how politically 
difficult it might seem at the time to achieve, does translate into 
good politics. But much more important than the politics, good policy 
can translate into strengthening our economy, improving the lives of 
Americans, and providing opportunity for future generations.
  It is time we learn that lesson in Washington that our State of 
Indiana and many States across the country, as well as other 
communities, are learning. It is time we exhibit the political courage 
to stand and do what I think just about everyone in this body 
understands; that is, to get a hold of runaway spending and borrowing 
that is putting us in a very deep fiscal hole and will have 
significant, dire consequences not only on future generations but even 
our current generation.
  The time is now. As I said from this spot yesterday, 2013 is the 
decisive year. In 2014, we will be back into an election year, and that 
tired old belief that we cannot make these kinds of changes with the 
election looming will surface again. If we don't act now,

[[Page 537]]

more people will say that we need to wait until after the next 
election. It will push us into 2015. Many who have looked at our 
situation fiscally and analyzed it from a nonpartisan, nonideological 
basis have said 2015 is too late.
  This is the time when we need to summon our courage, summon our 
political will, and do what is right for the American people. We cannot 
continue to bump along at less than 2 percent growth. We cannot 
continue to keep more than 8 percent or nearly 8 percent of our people 
unemployed; and, obviously, that number is much higher when we count 
those who are no longer looking for work who have given up. We cannot 
continue to keep America on the edge of uncertainty in terms of what 
our fiscal future will look like.
  Let us summon that courage to go forward. Let us use examples from 
those States, the support of those Governors and the support they have 
received from people across those States. Let us summon the courage to 
do what we need to do.
  I want to continue talking about how we need to address this with a 
``go big, go bold'' type of approach. Everyone says and concludes that 
if we can put that package together to address our long-term ills over 
a period of time and bring us back to balance and stability, we will 
see a revival of the economy of this country and we will see great hope 
for the American people going forward.
  Madam President, with that, I yield the floor and suggest the absence 
of a quorum.
  The ACTING PRESIDENT pro tempore. The clerk will call the roll.
  The assistant legislative clerk proceeded to call the roll.
  Mr. ROBERTS. Madam President, I ask unanimous consent that the order 
for the quorum call be rescinded.
  The ACTING PRESIDENT pro tempore. Without objection, it is so 
ordered.
  Mr. ROBERTS. I ask the Acting President pro tempore if we are in 
morning business, and I assume we are.
  The ACTING PRESIDENT pro tempore. The Senator is correct.
  Mr. ROBERTS. Thank you, Madam President.
  (The remarks of Mr. Roberts pertaining to the submission of S. Res. 8 
are printed in today's Record under ``Submitted Resolutions.'')
  Mr. ROBERTS. I yield back the remainder of my time, and I suggest the 
absence of a quorum.
  The ACTING PRESIDENT pro tempore. The clerk will call the roll.
  The assistant legislative clerk proceeded to call the roll.
  Mr. McCONNELL. Madam President, I ask unanimous consent that the 
order for the quorum call be rescinded.
  The ACTING PRESIDENT pro tempore. Without objection, it is so 
ordered.

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