Spending Freeze Is Not Enough

Wednesday, July 14, 2010 3:13 PM by Renae Bartusch

Senate Minority Leader Mitch McConnell (R-Ky.) announced this week that the twelve Republicans on the Appropriations Committee are unanimously endorsing a bipartisan proposal to limit discretionary spending.  The proposal, proposed in May by Sens. Claire McCaskill (D-Mo.) and Jeff Sessions (R-Ala.), would require cuts in nondefense discretionary programs beginning in fiscal 2011 through fiscal 2013 and establish three year discretionary spending caps.

While a spending freeze is a step in the right direction, it is only helpful if it occurs after a deep spending cut. Congress should return to the 2007 levels of spending before considering a freeze – this would ensure taxpayers are not left footing the bill for the explosive spending of the Bush and Obama administrations. Proposals have been offered that would do just this – Senator LeMieux has offered the 2007 Solution bill, which CFA supports.

Karl Rove reiterates that spending is not the answer to reviving the economy.  President Obama has tried to look tough on spending by increasing discretionary domestic spending by 12% for fiscal year 2010 and then announcing a spending freeze or a 2-3% reduction in non defense, discretionary spending.  As we have noted before, spending freezes are quickly becoming the preferred device for politicians who would rather pay lip service to fiscal sensibility than actually practice it. Instead of trying to trick taxpayers into thinking that they are doing the responsible thing, Congress and the President need to show they are serious about getting the country’s fiscal house in order by reining in spending – freezing at or around the current levels is hardly the tenacity taxpayers expect from the stewards of their dollars.

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