Our nation is on an unsustainable fiscal path. Spending is rising and revenues are falling short, requiring the government to borrow huge sums each year to make up the difference. We face staggering deficits. In 2010, federal spending was nearly 24 percent of Gross Domestic Product (GDP), the value of all goods and services produced in the economy. Only during World War II was federal spending a larger part of the economy. Over the past decade, the U.S. has added nearly $8 trillion to its national debt and moved from a surplus to deficits. Clearly all this spending has not helped our economy. The US government will spend a record $3.8 trillion this year, with a deficit of more than $1.6 trillion – meaning we will need to borrow an astounding 43 percent of our budget. The national debt this year is larger than America’s economic output for the first time since World War II, and every year we are accumulating more debt than in the first 200 years of our nation’s existence. The 2011 budget proposal would add another $2.7 trillion to that debt over the next two years and $9 trillion over a decade. These deficits are a threat to our growth, security, and standard of living. If we do not do anything, our national debt could easily climb to 90 percent of out gross domestic product (GDP). If this happens, our debt will significantly crowd out the majority of domestic and entitlement spending. Addressing this problem will require both sensible and balanced spending cuts. Karla Romero believes we must do this by eliminating waste and duplication wherever we find it, prioritizing spending more effectively, and abolishing special interest loopholes and giveaways, be they in the form of programs, subsidies, tax deductions, or tax credits. Karla also believes we need to implement performance-based management and expanded the use of technology to deliver vital services faster, better and more cost-effectively.
Require a Balanced Budget. Karla Romero believes that like every family and business has to balance their budget, the Federal government is no exception. Karla supports passage of an amendment to the Constitution requiring Congress balance our nation's budget annually, except in times of war or national emergency. In addition, this amendment would stipulate that Federal spending may not exceed 20 percent of GDP and would institute a two-thirds vote requirement in both houses of Congress in order to raise.
Reduce Congressional and White House budgets by 15 percent. Although the nation’s economy continues to struggle, there’s no recession in Washington. Like most areas of government, the budgets for Congress and the Executive Office of the President have grown significantly in recent years. For example, spending on the legislative branch rose close to 50 percent from FY 2000 through FY 2010. Last year Congress gave itself a nearly four percent budget increase. In order to tackle our impending fiscal crisis, everyone must sacrifice – especially Washington. The Commission’s proposal would reduce the budgets for Congress and the White House by 15 percent. This proposal will save $800 million in 2015.
Reform Federal Pensions. At present, Federal pensions are indexed for cost of living adjustments based on the wage inflation rate. As a member of Congress, Karla Romero will work to change the cost of living adjustment to being tied to price inflation. This will save $3.5 billion a year.
Reform Military Compensation. Currently, some components of military compensation, including tax advantages and housing allowances, are not included in the pay raise calculations that are pegged to changes in the civilian sector. Karla proposes including these benefits when pay raises are calculated, phasing the reform in as forces are withdrawn from Afghanistan and Iraq. That would save $55 billion over 10 years. In addition, premiums for the Department of Defense (DoD) health care system, TRICARE, have not risen in 10 years. Lower premiums encourage military retirees earning full-time civilian salaries to choose TRICARE even though health coverage is available through their employer. According to a June 2009 CBO report, reform of TRICARE could save more than $60 billion over 10 years. Such changes are more reasonable under a restraint strategy because that strategy would greatly reduce the burden on military personnel.
Reform Military Maintenance and Supply Systems. According to the Congressional Budget Office, reforming DoD maintenance and supply systems would save $13 billion over 10 years. Reforms would include consolidating DoD retailing, changing DoD's depot pricing structure for equipment repairs, and easing restrictions on contracting for depot maintenance.
Sell excess federal real property. The federal government is the largest real property owner in the country, with an inventory of more than 1.2 million buildings, structures, and land parcels. Holding this unneeded property carries maintenance costs and forgoes the opportunity to sell potentially valuable property. We propose directing the GSA to loosen agency restrictions associated with selling unused buildings and land. This proposal will save at least $100 million in 2015.
Spending Programatic Resources More Efficiently. In a time that demands frugality for all Americans, the federal government is no exception. Karla Romero will fight to restrain the growth of the Federal government by proposing ways to spend resources more efficiently such as eliminating pork barrel spending, reducing agency allocations so that they are forced to prioritize where resources are spent, and implementing user financed services where possible. Cutting spending for the Forest Service and the Fish and Wildlife Service will save $4.3 billion.
Eliminate Loopholes and Streamline the Tax Code. Our tax code is filled with $1.1 trillion worth of special interest tax giveaways that funnel money towards specific industries and companies with highly compensated lawyers every year at the expense of ordinary people and ordinary businesses that struggle to play by the rules. As a member of Congress, Karla will work to close these egregious loopholes.
Eliminate Special Interest Giveaways. Giveaways to special interests lower costs for some while raising costs for the rest of us.
Require a Balanced Budget. Karla Romero believes that like every family and business has to balance their budget, the Federal government is no exception. Karla supports passage of an amendment to the Constitution requiring Congress balance our nation's budget annually, except in times of war or national emergency. In addition, this amendment would stipulate that Federal spending may not exceed 20 percent of GDP and would institute a two-thirds vote requirement in both houses of Congress in order to raise.
Reduce Congressional and White House budgets by 15 percent. Although the nation’s economy continues to struggle, there’s no recession in Washington. Like most areas of government, the budgets for Congress and the Executive Office of the President have grown significantly in recent years. For example, spending on the legislative branch rose close to 50 percent from FY 2000 through FY 2010. Last year Congress gave itself a nearly four percent budget increase. In order to tackle our impending fiscal crisis, everyone must sacrifice – especially Washington. The Commission’s proposal would reduce the budgets for Congress and the White House by 15 percent. This proposal will save $800 million in 2015.
Reform Federal Pensions. At present, Federal pensions are indexed for cost of living adjustments based on the wage inflation rate. As a member of Congress, Karla Romero will work to change the cost of living adjustment to being tied to price inflation. This will save $3.5 billion a year.
Reform Military Compensation. Currently, some components of military compensation, including tax advantages and housing allowances, are not included in the pay raise calculations that are pegged to changes in the civilian sector. Karla proposes including these benefits when pay raises are calculated, phasing the reform in as forces are withdrawn from Afghanistan and Iraq. That would save $55 billion over 10 years. In addition, premiums for the Department of Defense (DoD) health care system, TRICARE, have not risen in 10 years. Lower premiums encourage military retirees earning full-time civilian salaries to choose TRICARE even though health coverage is available through their employer. According to a June 2009 CBO report, reform of TRICARE could save more than $60 billion over 10 years. Such changes are more reasonable under a restraint strategy because that strategy would greatly reduce the burden on military personnel.
Reform Military Maintenance and Supply Systems. According to the Congressional Budget Office, reforming DoD maintenance and supply systems would save $13 billion over 10 years. Reforms would include consolidating DoD retailing, changing DoD's depot pricing structure for equipment repairs, and easing restrictions on contracting for depot maintenance.
Sell excess federal real property. The federal government is the largest real property owner in the country, with an inventory of more than 1.2 million buildings, structures, and land parcels. Holding this unneeded property carries maintenance costs and forgoes the opportunity to sell potentially valuable property. We propose directing the GSA to loosen agency restrictions associated with selling unused buildings and land. This proposal will save at least $100 million in 2015.
Spending Programatic Resources More Efficiently. In a time that demands frugality for all Americans, the federal government is no exception. Karla Romero will fight to restrain the growth of the Federal government by proposing ways to spend resources more efficiently such as eliminating pork barrel spending, reducing agency allocations so that they are forced to prioritize where resources are spent, and implementing user financed services where possible. Cutting spending for the Forest Service and the Fish and Wildlife Service will save $4.3 billion.
Eliminate Loopholes and Streamline the Tax Code. Our tax code is filled with $1.1 trillion worth of special interest tax giveaways that funnel money towards specific industries and companies with highly compensated lawyers every year at the expense of ordinary people and ordinary businesses that struggle to play by the rules. As a member of Congress, Karla will work to close these egregious loopholes.
Eliminate Special Interest Giveaways. Giveaways to special interests lower costs for some while raising costs for the rest of us.
