HOUSE APPROVES FISCALLY RESPONSIBLE BUDGET    Budget Balances Significant Debt and Tax Relief, Funds Priorities, and Reigns in Growth in Government Spending

WASHINGTON – First District Congressman Paul Ryan today voted in favor of the budget resolution for fiscal year 2002, which passed in the House of Representatives by a vote of 222-205.

The budget the House passed today strikes a balance between maximum debt relief, tax relief for all taxpayers, and funding for priorities such as Social Security, health care, education, and national defense. At the same time, this budget reigns in new government spending – limiting the increase in non-defense discretionary spending to about 3.5 percent, which is above the rate of inflation.

"This budget is an important step in the right direction," said Ryan. "It will help prevent runaway government spending, allow for critical tax relief for all taxpayers, and fund improvements in our healthcare and education systems – as well as other crucial priorities."

Specifically, the budget the House approved today eliminates $2.3 trillion in public debt by 2011. In effect, it pays down all available debt by the end of the decade. As a result, the government's public debt would decline to 5 percent of the economy, its lowest level in more than 80 years. The budget also protects the entire $2.6 trillion Social Security surplus so it will be off-limits to other Washington spending and can only be used to strengthen Social Security or reduce debt. Similarly, it protects the Medicare surplus from being used for any purpose other than debt reduction or Medicare reform.

In addition, the budget enables tax relief for all taxpayers, allowing taxpayers to keep roughly one-fourth of projected surpluses over the next 10 years. The budget resolution also places importance on priorities such as healthcare reform that modernizes Medicare and improving education. It provides at least $153 billion for Medicare reform, including a prescription drug plan to help seniors with increasing drug costs. It also increases education funding and creates a reserve fund to help fulfill the federal government's commitment to states for special education costs.

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