10-Steps to Fiscal Reform

In January, Congressman Schrader released the following package of fiscal reforms intended to cut government spending and move towards a balanced budget. The reform package was developed by Schrader and other members of the fiscally-conservative Blue Dog coalition in hopes of introducing each piece as an individual bill.

Congressman Kurt Schrader's 10-Steps to Fiscal Reform

1) Congress should pay for what it spends.
Statutory pay-as-you-go (PAYGO) requires Congress to pay for any new entitlement programs or tax breaks instead of just adding to the debt. Status: Statutory PAYGO was signed into law on February 12, 2010.

2) Put the lid on federal spending.
Congress should set limits on discretionary spending. Just like American families who make tough decisions every day, Congress must learn to live within its means. Status: This step is contained in HR 4871, co-sponsored by Kurt Schrader.

3) Cut programs that don’t work and eliminate duplication and inefficiency.
Congress and the President need to work together to identify and cut programs that are duplicative, don’t work or are ineffective. Status: This step, also known as “Expedited Rescission”, was referred to Senate committee in February. It was received in the Senate, read twice and referred to the Committee on the Budget.

4) Create a trigger to force Congress to reduce the deficit.
Congress would be required to cut spending to meet strict budget targets that put the budget on a path towards balance, effectively reducing the deficit over time. Status: Contained in HR 5008, co-sponsored by Kurt Schrader.

5) Be honest about long-term fiscal obligations.
Congress constantly plays number games that mask our true financial situation. Every budget resolution should include an honest and open assessment of the government’s long-term financial obligations. Status: Contained in HR 4856, co-sponsored by Kurt Schrader.

6) Establish a bi-partisan fiscal commission.
A bi-partisan fiscal reform commission should be established to force Congress’ hand in making the tough decisions necessary to put the country back on a fiscally sustainable path. Status: Because the commission did not pass the Senate, President Obama created it by Executive Order. Congressman Schrader would like to see the powers of that Commission strengthened, and he
co-sponsored a bill to establish the commission (HR 1557) and would require Congress to take a vote on the commission’s recommendation.

7) Make funding decisions based on program / agency performance.
Government agencies and programs should be judged on how efficiently they spend your tax dollars. This practice is often referred to as performance-based budgeting and was a hallmark of my work as co-chair of Oregon’s budget process. It’s common sense to fund programs that work and cut those that don’t. Status: Contained in HR 2142, co-sponsored by Kurt Schrader. Passed the House June 16, 2010.

8) More transparency and the elimination of waste, fraud, and inefficiency.
Congress needs to make a stronger commitment to rooting out waste, fraud, and inefficiency. That is why I introduced HR 5363, the Preventing Waste, Fraud, and Abuse Act of 2010. Research shows that for every $1.00 we put into “program integrity accounts” that identify, and eliminate waste, fraud and Abuse in government spending, we get an average of $1.50 - $8 back. Status: In addition to Congressman Schrader’s bill, stopping improper payments is contained in HR 3393, co-sponsored by Kurt Schrader.

9) Audit the Department of Defense to account for every dollar it spends.
Evaluating every dollar spent on our national defense is not only a good fiscal practice; it is a matter of national security. Like all other major federal agencies, the Department of Defense should be subject to annual audits. Status: Senator John McCain introduced this measure in the Senate and Congressman Schrader is working with colleagues to introduce similar legislation in the House.

10) Close tax loopholes.
It is critical that the federal government continue to identify and report loopholes and inefficiencies within the current tax system. Oregon’s families pay their fair share and more of taxes. It is only fair that others do as well. Status: Contained in HR 5291, co-sponsored by Kurt Schrader.