The DeGette Report

Statement

Dear Friend,

The White House announced this week that the federal budget deficit is expected to increase to $427 billion in 2005, the fourth straight year that the deficit has grown. This figure is even higher than the non-partisan Congressional Budget Office's earlier $368 billion estimate for the deficit this year.

While a deficit of $427 billion is hard to comprehend, it has very real consequences. Funding for critical government programs, ranging from maintenance at our national parks to veterans health care and re-adjustment programs to college aid and No Child Left Behind, may face cuts. The deficit is also already contributing to a rise in interest rates, making it more expensive to buy a home or new car or pay off credit card bills.

There are ways for the United States to start reducing - and ultimately eliminate - the deficit. Congressional leaders could start by taking a lesson from the Colorado state House and Senate. In our home state, leaders of the legislature are committed to enforcing financial discipline by making sure that the state does not spend more money than it has. They are also working on long-needed reforms of TABOR so that funds will be available if an emergency requires additional critical government services.

I have fought for similar discipline in the federal government, supporting an important federal budget rule, known as pay-as-you-go, which was allowed to expire in 2002. In the 1990s, the pay-as-you-go rule required that Congress offsetting any new spending with either budget cuts or an increase in revenue to pay for it. This was critical in helping the federal government eliminate its deficit and creating the budget surplus that we enjoyed until 2001.

This is a critical time for our nation's economy. The deficit estimates do not include the more than $2 trillion it would cost to implement President Bush's plan to privatize Social Security or the $2 trillion it will cost if President Bush's tax cuts are made permanent. That's why I am committed to eliminating the deficit by reigning in spending and reckless tax giveaways and making the tough choices on government programs. Colorado legislators understand that if government programs are important, we should pay for them now. It's time that Congress follow the same simple principle.

Warmest Regards,

Diana

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