Fiscal Responsibility
Our nation is now emerging from one of the worst economic recessions on record, but we aren't out of the woods yet. Many of Colorado's hardworking families continue to struggle with joblessness, slumping housing values, home foreclosures, and a sluggish credit market. My top priority is to do everything I can to help Colorado families feel secure again - and that must include getting our nation's fiscal house in order.
As the economy recovers, most economists believe it would be premature to slash federal spending. But we must rein in massive deficits, which threaten to saddle future generations with debt that could trigger disastrous inflation and further cripple our economy.
I believe that we are at a crossroads. We must choose a bipartisan path toward fiscal responsibility that will revive our economy and strengthen Colorado's families and communities for the future.
Looking forward, the long-term health of the U.S. economy will require us to return to basic fundamentals - principles that Coloradans have lived by for generations. Our government must adopt a smart fiscal policy, focused on balancing the federal budget and reducing the federal deficit. Families across the country balance their checkbooks, and they expect the same of our government. So as the U.S. economy emerges from this recession, I am working with my colleagues from both parties to reinstate common-sense budgeting practices in the federal government.
First, we must start paying for programs rather than running up credit we can't afford to pay back. This means returning to "pay-as-you-go rules" that helped build sizeable budget surpluses during the Clinton Administration, but which were allowed to expire in 2002. At the beginning of 2010, I joined the Senate in passing "PAYGO" legislation, which will again require any new spending be offset by cuts or adjustments elsewhere in the budget.
Additionally, I support setting limits on spending for programs other than entitlements, like Social Security and Medicare. So-called "discretionary spending caps" were in place during the 1990s as well, and that forced Congress to rein in budgets instead of spending the taxpayers' money on programs we couldn't afford. I also support creating presidential line-item veto authority, which would allow the President to identify projects for cancellation and require Congress to vote on his cuts. I have a long history advocating for this tool, having authored bipartisan legislation in the House and co-sponsored line-item veto legislation in the Senate. This reform is long overdue.
Moreover, we need to further discourage wasteful spending by enacting earmark reform. I proudly joined Sen. Claire McCaskill in introducing a bill that reforms the earmark process. Wasteful "pork barrel" spending has no place in Congress' spending bills, and this bill would dramatically reduce the number of pet projects that get funded every year.
And finally, we need a top-to-bottom review of all federal programs. To insulate this process from politics, I fully support the creation of an independent, bipartisan task force to recommend changes - including the best ways to reduce our national debt or reform our entitlement programs - which could then be approved by an up-or-down vote in Congress. At my urging - and that of others in the Senate - the Obama Administration has pledged to establish such a task force and has secured agreements from Congressional leadership that the House and Senate will vote on the task force's recommendations.
In short, we must work in a bipartisan way to bridge the ideological divide in Congress and develop a multi-pronged strategy for reducing our nation's budget deficit and debt. Coloradans can count on me to represent them in this fight.
Press Coverage Regarding Senator Udall's Fiscal Responsibility:
- Listen to voters, ban the earmarks
Editorial, The Longmont Times-Call - Transparency in spending
Editorial, The Daily Camera - Leading the way on earmark ban
Editorial, The Denver Post - First step
Editorial, The Pueblo Chieftain
-
Call for a Ban on Earmarks
Coloradans know that the way Washington spends money is broken. And one part of that problem is Congress’s addiction to earmarks. I’ve long pushed for reforms that would help rein in spending, such as a line-item veto authority, pay-as-you-go spending, and a reform of the earmark process. When I first got to the U.S. Senate, I made the choice to not request earmarks for private for-profit and nonprofit entities in an effort to take the corrupting influence out of the process. But further action is needed.
Last year, Congress spent roughly $16 billion on earmarks, according to government watchdogs. While that’s a small part of the budget, we’ve become so focused on pet projects, that holding government accountable and being good stewards of the public dollar seem to be an afterthought. In fact, lawmakers are so afraid of losing earmarked funding that they’re often pressured into supporting a vicious cycle of increased spending. The only way we can reform the status quo is if everyone takes responsibility for the problem. As a result, not only will I no longer request earmarks, I’m going to work to end the process so that Congress can focus on what Americans want most – a secure economic future.
-
Stopping Congressional Pay Raises in Economic Hard Times
I was proud to support bipartisan legislation, S. 3244, which blocks members of Congress from receiving an annual, automatic pay raise this year, in an effort to balance our government's budget. I also helped lead an effort to urge Speaker Pelosi to promptly pass this bill, which was ultimately sent to President Obama for his signature on May 3, 2010. I fully believe that Congress shouldn't get a raise while so many Coloradans are struggling to find work and to keep their heads above water in this tough economy. This measure saved taxpayers a million dollars in total and is one small way I am working to fulfill my promise to Coloradans to support bipartisan efforts to get our federal budget under control.
-
Urging Senate Leaders to Follow Fiscally Responsible Practices
On March 15, 2010, I urged the leaders of the Senate Appropriations and Budget committees to stick to President Obama's three-year nonsecurity discretionary spending freeze, and reiterated my support for line-item veto authority as well as sensible earmark reform (see letters to Appropriations Committee and Budget Committee). In addition, after co-sponsoring the Bipartisan Task Force for Responsible Fiscal Action Act (S. 2853) last year, I also lent my support for the bipartisan task force created by President Obama to examine the federal budget and recommend steps to reduce the deficit.
-
Bipartisan Debt-Reduction Task Force
On December 9, 2009, I co-sponsored the Bipartisan Task Force for Responsible Fiscal Action Act (S. 2853) with Senator Kent Conrad of North Dakota. This bill would create a bipartisan task force charged with studying the federal budget and recommending the politically difficult changes necessary to reduce the national debt. Congress would then have to consider the recommendations by an up-or-down vote. In January, this legislation fell just short of receiving the 60 votes required to pass it in the Senate. However, I have worked closely with the Obama Administration to create a bipartisan task force by executive order, which will produce similar recommendations for both Houses of Congress to approve.
-
Statutory PAYGO Legislation
I have long called for a law requiring that any new mandatory spending created by Congress be offset by spending cuts or adjustments elsewhere in the budget. A similar policy helped the federal government create budget surpluses during the Clinton Administration. As an original co-sponsor of the Statutory Pay-As-You-Go Act (S. 1600), which was introduced by Senator Claire McCaskill of Missouri on August 6, 2009, I was proud to help the Senate pass statutory PAYGO rules in early 2010.
-
Pay It Back Act (S. 1683)
I co-sponsored this bipartisan bill, which was introduced by fellow Colorado Senator Michael Bennet on September 17, 2009. The bill would require institutions that accepted government emergency assistance (in particular, TARP funds and the Fannie/Freddie takeover) to pay the money back, freeing the federal government to use the money to pay down the federal deficit.
-
Budget Enforcement Legislative Tool (BELT) Act (S. 907)
I am an original co-sponsor of the bipartisan BELT Act, which was introduced by Senator Thomas Carper of Delaware on April 28, 2009. This bill would give the President line-item veto authority - the ability to cut spending from annual appropriations bills, without having to veto the entire bill. Under the legislation, Congress would be required to vote up or down on whether to adopt the President's proposed cuts. This authority would make it easier to cut wasteful measures from bills - and it would prevent Congress from deliberately overlooking bad spending or poor policy simply because it is included in bills that otherwise must be passed.
-
Congressional Accountability and Line-Item Veto Act (S. 524)
I co-sponsored this bipartisan bill, which was introduced on March 4, 2009, by Senator Russ Feingold of Wisconsin. Like the BELT Act, it would give the President line-item veto authority and require Congress to vote on whether to adopt the President's proposed spending cuts.
-
Earmark Reform (S. Res. 63)
I joined Senator Claire McCaskill in introducing this bill on March 4, 2009. The measure would prohibit private for-profit and nonprofit entities from receiving earmarks, and make the earmark process more transparent. The bill would require lawmakers to post their earmark requests on their websites - explaining the purpose, cost and location of the earmark - within 48 hours of making the request. This will ensure the public has a chance to review how their tax dollars are being spent, and it will help reduce wasteful "pork barrel" spending.