Congress Needs To Pass a Budget Now

Statement

Budgeting is one of the most fundamental responsibilities of government. In each year since 1974, the United States House of Representatives has passed a budget resolution -- establishing priorities and placing limits on spending, revenue, and public debt. Unfortunately, this year, the House of Representatives will not even attempt to enact a budget resolution. And, there could not be a worse time for such an abdication of responsibility.

Since 2008, federal spending has been growing at an alarming rate. The national debt is now $13 trillion. Last year, the federal government spent a record $1.4 trillion more than it took in. And, it's not getting any better this year. Through the first eight months of the fiscal year we are already $935 billion in the red. Federal spending is so out of control that Moody's Investor Services warned in March that debt levels are putting our triple-A credit rating at risk. Although a credit rating downgrade is not imminent, we need to act now to get our fiscal house in order.

The annual budget resolution is more than simply a document that begets partisan sniping and rancor. Like a family's budget, the budget resolution provides an outline of spending priorities and the sources of income that will pay for these priorities. If the income does not equal the amount of spending, we must increase income, reprioritize and cut spending, or decide to borrow money to meet the shortfall. And, like a family's budget, the budget resolution guides the many smaller spending decisions Congress makes throughout the year and provides a source of discipline to keep spending in line with what is called for in the resolution.

The American people deserve to know what their tax dollars are going to buy. Taxpayers need to know that there is a plan to reduce deficits and, ultimately, pay down the debt. We all need to know that our current pace of spending will not continue unchecked. But, the lack of a federal budget has an even more tangible effect.

Business owners, investors, and entrepreneurs -- those responsible for hiring workers and creating jobs -- have all told me that one of the reasons they are not hiring is the uncertainty caused by Washington's policies. If a business can not plan to pay for expenses, they are hesitant, at best, to expand. If they think that passage of a cap and trade bill will raise their energy costs, stricter regulations are going to cut into their bottom lines, or tax rates are going to increase, businesses are not going to expand. A budget resolution can help to answer many of these questions. Another thing I have heard from small business owners is that higher taxes will force them to scale down or even close their doors entirely.

The time to address our fiscal crisis is upon us. Failure to even attempt to pass a budget sends a signal to investors and businesses that we are not serious about tackling our budget problems and adds to the uncertainty that is helping to slow economic growth and job creation. It's time to end the election year nonsense and pass a budget that begins to address our current budgetary crisis.

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