The congressional budget resolution should establish the nation’s priorities, the approach to financing them, and a plan to ensure the nation is on a fiscally responsible track. We recommend that Congress adheres to the following principles when crafting a budget resolution:
Set a meaningful fiscal goal, and put forward a plan to achieve it
Aim for specific debt, deficit, and other budgetary targets. The goal should result in a falling debt-to-GDP ratio over the budget window.
Set revenue and spending levels to meet the fiscal goal, backed by achievable policies, realistic assumptions, and reconciliation instructions.
Propose specific plans to address mandatory spending and revenue
Advance detailed reforms to slow the growth of Medicare, Medicaid, and other direct spending programs.
Propose specific policies to increase revenue and responsibly address expiring tax provisions.
Include reconciliation instructions for assumed mandatory savings and revenue.
Set responsible, achievable, and enforceable discretionary spending levels
Set realistic and affordable discretionary spending levels, offsetting any increase relative to current law.
Limit abuse of the Overseas Contingency Operations (OCO) designation and of Changes in Mandatory Programs (CHIMPs).
Enforce the PAYGO requirement that legislation does not add to the deficit
Require full offsets for any bill that reduces revenue or increases mandatory spending.
Maintain and strengthen PAYGO and other rules prohibiting legislation that would increase the deficit over the medium or long term.
Rely on credible and realistic assumptions
Use economic assumptions based on Congressional Budget Office estimates.
Require current law baseline rules for evaluating costs of legislation.
Improve the budget process and budget enforcement
Ensure strict enforcement of spending and revenue levels in the budget resolution.
Adopt budget process reforms such as those considered by the joint committee on budget process reform.
Anticipate negotiating with the other chamber
Recognize divided government as an opportunity for bipartisan reforms.
Prioritize governance and our fiscal future over partisan messaging.
