Measure will ensure accountability with taxpayer money

June 20, 2007

WASHINGTON, D.C. – Representative Kirsten Gillibrand introduced an amendment to the Constitution that will require Congress to balance the federal budget every year.  In the past forty years, Congress has balanced the budget only five times; last year’s budget deficit was $248 billion.

"It is critical that we restore fiscal discipline to the federal budget process.  Our national debt is approaching $9 trillion, equivalent to $29,000 for every man, woman and child," said Gillibrand, a member of the fiscally conservative Democratic Blue Dog Coalition.  "Over the past six years, Congress' spending habits have jeopardized our country's fiscal situation, by allowing the national debt to increase by more than 60 percent."

Forty-nine states, including New York, require a balanced budget.  The national debt has increased by $3 trillion in the past six years, and in 2006, the United States government paid over $405 billion in interest payments on the national debt.  Interest payment on the national debt equaled more than $1,300 for each American.

"If New York families have to balance their checkbook, so should the federal government."  Gillibrand continued, "The federal government’s spending habits are hurting our national security, by requiring us to borrow over 75% of our new debt, from countries such as China and Saudi Arabia.  The deficit puts us at immediate risk from global political and economic problems, and I believe our children and grandchildren deserve more leadership and accountability."

The proposed legislation allows for flexibility during times of war, natural disaster or an economic downturn, by giving Congress the ability to waive the balanced budget requirement with a three-fifths vote in the House and Senate.  The bill also prohibits cuts in Social Security benefits from being used in order to balance the budget.

Congresswoman Gillibrand has been a leader on promoting fiscal responsibility in Congress.  In January, she voted to restore Pay-As-You-Go (PAYGO) spending in order to ban the practice of deficit spending.  In addition, Gillibrand voted for the Budget Resolution [S. Con Res 21] that paves the way for a balanced budget by 2012, while adhering to the principles of: PAYGO spending, investments in national priorities and expanding middle class tax cuts.

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