In support of PAYGO

During a recent press conference, President Obama announced his support for legislation to make pay-as-you-go (PAYGO) budgeting a federal law. As the sponsor of a statutory PAYGO bill, I was undoubtedly very pleased by this news. And, this announcement marked the first time the Obama administration officially transmitted legislation to Congress – a clear sign of the president’s commitment to restoring fiscal responsibility and accountability to the federal government over the long term.   

I often hear skepticism from folks back home about the administration’s resolve in enacting PAYGO. Yes, the administration and Congress supported a stimulus package with a high price tag. But difficult times call for difficult decisions. And this economic recession necessitated a jump-start. I will not be so rigid in my ideological beliefs that I am not able to see what needs to be done in a time of such economic hardship.

However, that’s short term, and now we’re looking at the long-term picture. That picture, with urging from me and my Blue Dog Coalition colleagues, must include statutory PAYGO. Simply put, for every new dollar the government spends, it must also save a dollar somewhere else.   

PAYGO might be simple, yet it is highly effective. Congress enacted PAYGO in 1990, ultimately leading to the budget surpluses of the late 1990s and early 2000s. The fiscal measure was allowed to expire by the previous administration in 2002, which left federal spending largely unchecked.

President Obama’s PAYGO legislation has already been sent to Congress, just days after the press conference. I am working on the front lines on this issue, and though not the hot or popular topic for the press, it’s important. We cannot continue to run massive deficits and have much of our national debt held by countries like as China and Saudi Arabia. As such, we are putting our economic and national security at risk.   

Rep. Baron P. Hill
(D-9th District)