THE NATIONAL BUDGET ALLOWS US TO SET PRIORITIES
Our country, like most households, operates on a budget which seeks to balance our spending with our income. Budgets are a time for serious discussions weighing needs and wants with the available resources. In Congress it is a difficult process which can take a great deal of time.
The tone of the budget debate is usually set by the President's recommendations for spending. The two separate houses of Congress then work on their versions of a budget, which becomes the blueprint for the appropriations process.
I was encouraged by President Bush's overall proposal of a $2.7 trillion budget because the announcement means we will have a serious effort to reduce our budget deficit after several years of higher spending to fight the war on terrorism.
As a fiscal conservative, I greeted increased expenditures over the recent past as painful necessities to protect the American people. Several years ago, our national economy was buffeted by several extraordinary events. The economy entered a recession after the internet bubble burst and a wave of corporate scandals rocked the markets. In the midst of this adjustment, the 9-11 attacks took place, killing thousands and paralyzing our economy. Since that time, we have gone to war in Iraq and Afghanistan to upend terror-sponsoring regimes and free millions of people. While we have been victorious, the effort has been, and will remain, expensive. But for a safer and more secure homeland, that cost is a relative bargain.
As our nation dealt with these challenges, Congress and President Bush passed bipartisan tax relief which jump-started the economy and led to strong job creation and lower unemployment. This year, with our economy on the upswing, and after initial expenses to bolster homeland security, we are in the best position yet to begin reducing the deficit.
President Bush's budget envisions increasing defense spending by 4.8 percent. Spending on the Department of Homeland Security would rise by 7 percent. The proposed budget would scale back increases of discretionary programs to 2.1 percent, which is less than the rate of inflation.
The budget for the 2006 fiscal year beginning in October plans to reduce the budget deficit by 8.6 percent in the first year alone, excluding costs involved in Iraq and Afghanistan. Economists say the most important measure of spending is the ratio of debt to the size of a nation's economy, or Gross Domestic Product (GDP). The President's budget projects a budget deficit amounting to 3 percent of GDP for 2006, down from 3.5 percent this year.
If we follow this roadmap, we can cut the budget deficit by half to 1.5 percent of GDP by 2009, according to White House budget officials.
The President's budget marks a desire to adopt a more conservative fiscal philosophy on government spending. It is a good starting point and I share his commitment to discipline. However, it is Congress which has the ultimate responsibility under the Constitution to set spending levels and allocate resources. Within the framework of a conservative budget, I will fight to increase some programs critical to Texas which have been shortchanged in the President's budget, and will work to find savings in other areas. The state and Criminal Alien Assistance program, which reimburses states for the costs involved with illegal aliens, is one example of a program which appears underfunded. NASA's traditional science programs and Amtrak are others. We must assure our farmers all have the help necessary to keep making healthy food for our country and for export. Holding the overall line on expenditures will be often difficult, but we know we have an ally in the White House as we rein in spending.
In times of tighter budgets, as you may guess, it is sometimes hard to secure funding for projects in our home states. The level of scrutiny always increases when funding is more restricted, but I remain optimistic. I have always approached budgeting as a serious matter, and have presented my colleagues with the best evidence available that particular projects are good, not only for Texas, but for our nation. If I continue using that yardstick, I believe we will gain what is right for the Lone Star State and stick to conservative fiscal principles which will make our nation and economy stronger in the long run.
February 11, 2005