(Washington – February 3, 2012) Representative Frank Guinta (R, NH-01) issued the following statement after the House passage of H.R. 3578, the Baseline Reform Act and H.R. 3582, the Pro-Growth Budgeting Act. H.R. 3578 both won House approval this week. They now go onto the Senate for consideration. Rep. Guinta is a member of the House Budget Committee.
“Americans have rightfully lost trust in our budget process. For too long, Washington politicians on both sides of the aisle have used budgetary gimmicks to give the illusion of spending cuts. For too long, Washington has made legislative decisions without considering the long-term affects those actions will have on our economy.
“Although this is only the first step in reforming a broken process, these two bills will go a long way in finally repairing it.”
Summary of the bills:
- H.R. 3578, the Baseline Reform Act
o This bill would tighten the rules the government currently follows when crafting a budget by removing the assumption that discretionary spending automatically increases with inflation on a yearly basis. With the current inflation assumption, budgetary baselines —against which new budget legislation is considered— build in automatic spending increases every year.
- H.R. 3582, the Pro–Growth Budgeting Act
o This bill would require that for major legislation, the Congressional Budget Office (CBO) must prepare an analysis of the effect that legislation could have on the U.S. economy. This analysis must include an estimate of the changes in economic output, employment, capital stock, and tax revenues resulting for the enactment of the proposal.