MY VIEW: David Walker
It's just a little over a week before the budget conference committee is suppposed to present its recommendations to Congress. Former U.S. Comptroller and CRFB board member David Walker writes in The Hill, that deadline is also an opportunity we cannot afford to waste:
Friday the 13th has additional significance this year. In addition to being an annual day of caution for superstitious people, it is a deadline date and day of opportunity for the recently appointed joint Senate and House Budget Conference Committee to report its recommendations for the fiscal 2014 budget. Hopefully this committee will not be a super failure like the joint "Super Committee" that was formed after the debt ceiling deal in August of 2011.
We had great hopes for the budget conference committee, but recent reports on the negotiations have been discouraging. A partial replacement has become the focus rather than a comprehensive deal that could make progress on the long-term debt problem. Write Walker:
It's clear that the Committee has been working to tap down expectations of what it is likely to achieve. The Committee is focusing its efforts on trying to achieve a deal to replace all or part of the sequester for a two-year period with alternative direct or indirect spending reductions. To do so they should focus on mandatory spending proposals in President Obama's budget submission and unallocated funds from prior budgets. While achieving agreement on discretionary spending levels for two years would be good, it's not enough and the Committee should aim higher.
While achieving agreement on a fiscal "grand bargain" is beyond reach, it would be desirable for the Committee to agree on a fiscal goal that the Congress and president would seek to achieve over time. One possible goal would be to set a target of getting public debt/GDP down to 60 percent of GDP by 2030 with a fiscal trajectory that will keep debt/GDP no higher than that level over time. This would be a meaningful accomplishment and would ultimately force the Congress and the president address the four key actions needed to effectively address our longer-term structural deficits. Namely, the need for social insurance reform, additional health care reform, comprehensive tax reform, and a more intelligent way to address discretionary spending allocations.
We've shown that the long-term debt problem is very real, and the "longer we wait, the tougher the choices will become." Lawmakers have missed many opportunities over the past few years, and eventually we will be forced to solve this problem. It makes no sense to wait any longer:
The American people are tired of the hyper-partisanship and ideological gridlock in Washington. They want their elected officials to start solving problems and generating some results. Hopefully this Friday the 13th won't involve another fiscal failure and lost opportunity. America and Americans deserve more from their elected officials.