Hearing of the House Budget Committee - Department of the Treasury Fiscal Year 2012 Budget

Statement

Today Maryland Congressman Chris Van Hollen, Ranking Member of the House Budget Committee, made opening remarks at the House Budget Committee Hearing on "Department of the Treasury Fiscal Year 2012 Budget" with Treasury Secretary Timothy Geithner. Below are his remarks as prepared for delivery, and you can watch a live stream of the hearing here:

"Thank you very much, Chairman Ryan. Welcome, Secretary Geithner and thank you for joining us today.

"President Obama has laid out a budget proposal that is tough but responsible. Tough because it cuts non-security discretionary spending by $400 billion over the next decade to the lowest share of the economy since the Eisenhower Administration. Responsible because it steadily reduces the deficit while making targeted investments in areas like education, clean energy, infrastructure, and scientific innovation -- investments that Federal Reserve Chairman Ben Bernanke said would strengthen our economy when he testified here last week.

"One key area of investment that the President has proposed is in our nation's infrastructure. The American Society of Civil Engineers -- hardly a left wing group -- issued a report card on the state of America's deteriorating infrastructure. They give us practically failing grades, mostly Ds and D-minuses for the state of our roads, schools, transit, and drinking water -- not grades that we'd want our kids to bring home from school. I'm very pleased that the President has announced he wants to make investments in this area. As reported yesterday in USA Today, using the analysis of the Associated General Contractors -- again, not a liberal group, his plan could create about 5.4 million construction jobs and 10 million more jobs in related industries and the broader economy. At a time when the construction industry is facing over 20 percent unemployment, these are exactly the kind of smart investments that will help grow our economy.

"The President's balanced and responsible approach stands in stark contrast to the Republican majority's reckless plan for this year, which is being debated on the House floor today. That proposal will put more Americans out of work at a time when too many families are still struggling to make ends meet, and do virtually nothing to address our nation's long-term structural deficit. The Economic Policy Institute found that the Republican proposal would likely put 800,000 Americans out of work. Indeed, that's why the Bipartisan Commission charged with reducing the deficit warned against making deep, immediate cuts when the economic recovery is still fragile. And why would Republicans cut essential investments in kids, cops, cancer research, and consumers rather than eliminate huge taxpayer subsidies to the oil industry?

"House Republicans have also taken a reckless approach to the debate on the debt ceiling -- an issue that you, Mr. Secretary, have raised serious concerns about. In fact, you have said that "even a very short-term or limited default would have catastrophic economic consequences that would last for decades. Failure to increase the limit would be deeply irresponsible." Chairman Bernanke stated that defaulting would be "catastrophic." We simply cannot play games with the full faith and credit of the United States. Nor should we provide payments to foreign creditors -- including China -- before payments to American contractors, Social Security and Medicare recipients, and the salaries of our Armed Forces, as various Republican proposals would do. This is reckless and wrong.

"Yesterday, we heard many of our Republican colleagues criticize the President's budget for not reaching primary balance --no longer spending more than we have -- by 2017. In fact, many ridiculed the notion that reaching primary balance over the next 10 years was an important milestone. I would point out that the Bipartisan Commission did not reach full balance in the 10-year window. Yesterday, in the spirit of recognizing that achieving full balance in the short-term is difficult, I pointed to the one Republican plan that has been put on the table and scored by CBO -- that of the Chairman. That good faith effort does not get to primary balance in 2020. In fact, it doesn't get to primary balance until sometime between 2040 and 2060. And it doesn't reach full balance until sometime after 2060. So today, as we speak with Secretary Geithner, I would caution our colleagues that criticizing the President's budget on that score also applies -- but to a much greater extent -- to the one Republican proposal that has been made to date. We look forward to seeing the next budget effort that House Republicans put forward, and we stand ready to work with you to find common ground whenever possible.

"On another note, it is interesting that our Republican colleagues have criticized the President for not including more of the Bipartisan Commission's recommendations in his budget when every single House Republican serving on the Commission voted against their final report.

"That being said, in order to tackle our longer-term fiscal challenges -- beyond the 10-year period of this budget -- it is important that the White House and the Congress, Republicans and Democrats, come together to seriously discuss and consider the ideas in the Commission's proposal. Compromise is not a dirty word. Getting things done requires give and take. We should begin that conversation now.

"Thank you, Mr. Chairman, and we look forward to Secretary Geithner's testimony."

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