The Federal Budget

On April 29, 2009, the House approved the conference agreement on S. Con. Res. 13, the Fiscal Year 2010 Congressional Budget Resolution, by a vote of 233 - 193. The Senate quickly followed in voting its approval. This resolution will establish a roadmap for Fiscal Year 2010's discretionary spending and create a framework for ambitious policy plans over the next five years. Because these plans are not accompanied by a strategy to pay for these new spending initiatives, Rep. Petri joined all House Republicans in voting against this budget.

Among its notable provisions, S. Con. Res. 13 calls for approximately $3.5 trillion in fiscal year 2010 spending. Additionally, the plan anticipates potential enactment of sweeping health care and environmental measures. On the tax front, the resolution provides for the extension of some expiring tax benefits while allowing others to come to an end. For 2010 alone, estimates of the federal deficit are between $1.23 and $1.35 trillion. Much of this spending may be popular, but the key issue is paying for the government services we consume.

In the current economic environment, some deficit spending will be necessary, but the volume of borrowing is more than just a detail. Economists tell us that annual deficits need to be less than 3 percent of Gross Domestic Product (GDP) in order for Treasury bonds to remain an attractive investment. Supporters point to a deficit within the 3 percent target by 2014, but fail to note an earlier forecast by the non-partisan Congressional Budget Office which sees deficits climbing into the 4 to 6 percent of GDP range in the years 2015 and beyond. These deficits demonstrate that the budget's spending outline is unsustainable and likely to usher in a period of unwelcome inflation. Rep. Petri's "No" vote was a call for responsibility in federal budgeting.

Related Press Releases

• Petri Votes Against Budget April 29, 2009
  
• Petri Critical of Budget with Deficits as Far as the Eye Can See April 28, 2009
  
• President's Budget Would Ditch Guaranteed Student Loans in Favor of Direct Loans February 26, 2009
  
• Petri Votes Against Stimulus February 13, 2009