I rise in support of the Statutory PAY-AS-YOU-GO Act.  This bill, which I am proud to co-sponsor, will help restore fiscal discipline by enacting into law the most basic principle of responsible accounting – every dollar spent must be offset by a dollar earned or saved.   This is the way American families balance their finances, and the same principle should apply to the federal budget.

This legislation is particularly important at a time when Congress also faces the troubling task of raising the Statutory Debt Limit.  I am truly dismayed by the need to raise the our national debt ceiling, which already exceeds $12 trillion dollars.  We cannot keep borrowing our way to a better future.  It is time we take decisive action to reduce our federal deficit, while continuing to invest in our economy and combat unemployment.  In Rhode Island, the unemployment rate is now at 12.9 percent – the third highest in the country.  Put simply, Rhode Islanders are still looking for jobs, but they are also looking for a government they can trust to live within its fiscal means. 

Statutory PAYGO is the law that governed our budgetary policies in the 1990’s, and helped turn deficits into record surpluses that contributed to our economic prosperity.  Unfortunately, this law was allowed to expire in 2002, and our fiscal responsibility expired with it.  The subsequent reckless spending, coupled with the cost of two wars funded outside the regular budget process, resulted in a deficit of over 1 trillion dollars and an unprecedented national debt.

Since that time, we have reinstituted PAYGO rules in Congress to increase budgetary accountability, but we can and must do more.  This bill will give the “pay-as-you-go” principle the force of law and provide additional enforcement mechanisms to support our ability to reign in spending.  This bill is by no means a panacea for our budgetary challenges.  The fiscal health of our nation will ultimately depend on strong job creation and a thriving economy.  However, this is an important first step to restore budgetary discipline, force the tough choices on taxes and spending, and begin bringing down the deep deficits that face our nation. 

As a member of the Budget Committee, I look forward to working with my colleagues in Congress and the Administration to craft a sound 2011 budget.   However, it will require the will and cooperation of Democrats, Republicans and Independents alike to solve our budgetary challenges.  Today, it begins by passing the Statutory PAY-AS-YOU-GO Act.  I urge my colleagues to support this measure and send a strong message to the American people that the days of fiscal irresponsibility are over.