Today Congressman Dana Rohrabacher (R-CA) and other members of the Republican Study Committee (RSC) rolled out the FY2007 budget that would balance the budget by 2011.
“Just as brave patriots before us have sacrificed to make a better America, so must we now. The time has come to draw the line in the sand and refuse to pass along a monstrous amount of debt to our children,” said Rep. Rohrabacher at the RSC press conference.
The RSC budget:
Proposes the elimination of over 150 federal programs
Includes pro-growth tax policy (guards against automatic tax increases)
Makes no changes to Social Security
Makes real reductions in discretionary spending
Proposes $358 billion in reconciliation savings over five years (the original “Contract with America budget included $346 billion in reconciliation savings over five years, $684 over seven years.)
Proposes $392 billion in net deficit reduction over five years (this includes $691 billion in initial savings minus $299 billion in defense and veterans increases)
Increases defense spending to the President’s FY 2007 request
Reduces foreign aid by $31 billion over five years
Significantly restructures three cabinet agencies: Commerce, Energy, and Education
Block grants Medicaid, SCHIP, most federal education programs, WIA job training programs
Rescinds highway bill earmarks
Repeals the federal gas tax in 2012
Caps Medicare growth at 5.4% annually
Increases veterans spending
Allows drilling in ANWR
Repeals the Davis-Bacon Act
Reforms agricultural production programs
Includes budget process reform
Calls for earmark reform and a constitutional line-item veto
