Follow me on:   November 22, 2011 Dear Friends, I wanted to pass along a recent opinion-editorial I wrote about the need for a responsible federal government approach to budgeting. Sincerely, A Responsible Approach to Budgeting By John Carney For most of the last year, Washington has been consumed in an ongoing debate about two big issues: creating jobs and reducing the deficit. I’ve heard from countless people throughout the state who are frustrated that Congress cannot put politics aside and make decisions that will get the economy moving. I have proposed several pieces of bipartisan legislation to create jobs and have been a strong advocate of the “Make It In America” agenda to revive the U.S. manufacturing sector. I have supported the American Jobs Act. I urged the Super Committee to “go big” and make real progress by agreeing on a balanced $4 trillion deficit reduction plan. But I’m frustrated that Democrats and Republicans can’t seem to come together behind a strong plan. And I know Delawareans are too. If the U.S. is to remain the largest and most vibrant economy in the world, we must get Americans back to work immediately, and reduce the deficit to stabilize our debt. But as we work to eliminate the deficit, we also need to establish a responsible, disciplined budget process that prevents huge deficits and overwhelming debt from consuming our economy in the future. Currently, the federal government does not budget to any revenue target and there is little accountability in the process. That’s much different from the balanced budget requirement that exists in Delaware and in most states around the country. As former Secretary of Finance for our state, it was part of my responsibility to help ensure that state spending did not exceed its revenue. I believe we should hold the federal government to the same standard. Earlier this month, I introduced a balanced budget amendment in the House which would add needed discipline to the federal budgeting process and require the government to live within its means. Balanced budget proposals are not a new idea on Capitol Hill. In 1994, Congress came within a few votes of passing a balanced budget amendment and sending it to the states for ratification. This year, my Republican colleagues in the House have introduced numerous balanced budget amendments that are irresponsible because they limit the nation’s ability to make critical investments in the future and they fail to protect Social Security. Unlike the House Republican proposals, my amendment – which is modeled after Delaware’s balanced budget law – enables long-term financing of investments that create jobs and strengthen the economy, protects Social Security, and ensures that we can respond immediately in times of economic recession. All of the balanced budget proposals allow for emergency spending in times of war or imminent national security threats as voted on by Congress. My proposal establishes both a federal operating budget and a federal capital budget, similar to what we have in Delaware. By separating the two budgets, we can pay for operating expenses annually, while using the capital budget to finance critical projects over time. Infrastructure, military equipment, facilities and other federal assets have a useful life of decades. The only way to pay for these projects is over time. This distinction is like the way most families may structure their finances. Their “operating” budget would include groceries, clothing and gasoline, while their “capital” budget would include their mortgage, college loans and car financing. It is also critical that we protect Social Security for current recipients and future generations. Revenue from the Social Security Trust Fund should not be used to make up for shortfalls in other parts of the budget. It’s not fair to those who have paid into the system their entire career and are counting on Social Security as part of a safe and stable retirement plan. My amendment would hold Social Security harmless and not count its receipts or payments as part of a balanced budget requirement. Finally, my proposal would provide for unforeseen circumstances. It’s nearly impossible to predict the challenges that this nation will face in years to come. A balanced budget requirement should not tie Congress’ hands and prevent it from responding to extraordinary circumstances the nation may confront. Exceptions should be made in certain instances, and my proposal allows for emergency spending in times of economic recession, declared wars, and imminent national security threats. We have significant work to do to create jobs immediately and reduce our deficit over the next several years. Once we stabilize the debt, we must implement a more effective budgeting model like the one we have in Delaware. A responsible balanced budget amendment like mine will introduce accountability into the federal budgeting process and strengthen the economy in the long-term. Please do not respond to this email. Click here to contact me.   Washington, DC 1429 Longworth HOB Washington, DC 20515 Phone: (202) 225-4165 Fax: (202) 225-2291 Wilmington 201 N Walnut Street, Suite 107 Wilmington, DE 19801 Toll Free: (800) 292-9541 Phone: (302) 428-1902 Fax: (302) 428-1950 Georgetown 33 The Circle Georgetown, DE 19947 Phone: (302) 854-0667 Fax: (302) 854-0669 Unsubscribe