• The Price of Freedom is Never Too High: The President\’s 2003 budget includes the biggest increase in defense spending in a generation (+$38B, or a 12% increase, plus a $10B war fighting reserve) and a doubling of homeland security funding (+$18B) to protect Americans at home, including major new funding for transportation security. Discretionary spending grows 8.5% for these critical needs and to jump-start our economy and create jobs.
  • These Critical Spending Needs Are Balanced by Other Restraint: The budget balances these needs by slowing the growth of other government spending to less than 2%.
  • Balanced Budgets and A Return to Surplus are Within Reach: If spending is controlled and the President\’s budget is followed, the government could return to surpluses as soon as FY 2004. This is critical to economic recovery and long-term growth.
  • We Cannot Repeat Mistakes Made in the Past: In the 1960s, when increased spending required by war was not balanced by slower spending growth in the rest of government, the economic consequences were dire: high inflation, unemployment, and recession.
  • Some Good Brakes on Spending Are Gone: Important tools like discretionary spending caps and budget rules (e.g. PAYGO) that have been useful in recent years to restrain spending have expired. Because Congress has not yet passed a budget or renewed these tools, there is no budget governing Congress at this point.
  • Senate Inaction on a Budget Would be the 1st Time Ever: If the U.S. Senate fails to produce a budget, it would be the first time since the Budget Act of 1974 began requiring them. April 15th is the statutory deadline for Congress to have passed a budget. NOTE: In 1998, Congress did not pass a budget conference report, but the House and Senate passed separate budget resolutions.
  • The House Embraced the President\’s Budget and Restrained Spending: The House budget reflects the President\’s principles of winning the war, protecting Americans at home, and restraining growth in the rest of government to approximately 2%.
  • The President\’s Veto Is the Only Check on Spending: Without a budget in place and without the spending caps and PAYGO rules, the only check on government spending is the President\’s veto.