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BRT Deficit Forum - Panel Two Transcript

Deficit Reduction: Getting Specific

Panel discussion occurred September 06, 2011.

Moderator:
Jim Nussle, President and COO, Growth Energy
 
Speakers:
Dan Crippen, Executive Director, National Governors Association
 
Doug Holtz-Eakin, President, American Action Forum
 
Alice Rivlin, Senior Fellow in Economic Studies, Brookings Institution
 
Nancy Taylor, Partner, Greenberg Traurig
 
JOHN ENGLER:  Thank you very much, Maya, and thank you – panel now – when we think about going big, here comes the next panel, getting specific – deficit reduction.  And we’ve got some excellent panelists and a superb moderator today in the honorable Jim Nussle.  And this panel, titled, you know, “Deficit Reduction:  Getting Specific,” is going to look at some spending reductions in – little more in-depth some of the entitlement reforms; maybe even some government restructuring; maybe – as a former governor, I’d like to see some new partnerships even with the states.  They’ve got quite a stake in all of this.

And we’re delighted that Jim Nussle, with his experience, is moderating this panel.  He brings a perspective from the legislative branch – a veteran member of Congress, the executive branch, the former head of the OMB.  And in the private sector, he currently is president of Growth Energy, which – association of producers and supporters of ethanol, so he may have something to say about one of the areas where money could be found.

But we know Jim is a 16-year veteran of the House.  The state of Iowa – he chaired that budget committee for six years, and was the 36th director of the Office of Management and Budget, a member of President Bush’s cabinet.  So Jim Nussle, the stage is yours.

JIM NUSSLE:  Thank you, John.  Appreciate it.

Thank you, Governor.  I appreciate it.  What an outstanding first panel that we had today, particularly Maya.  I am honored to be her co-chairman at the Committee for a Responsible Federal Budget, and they do a fantastic job there.  She and her team provide some great information.  I would commend you to go to our website and see all of the different sources of information that you can use to augment what you’re learning here today.

When I came in the front door – or actually the side door to the Freedom Center today, I held the door because of the rain for some tourists who came in.  And they read the opening sign that was there that said, Meeting the Challenges of Economic Growth and Reducing the Deficit – (chuckles) – and they said, oh boy, are we in the wrong place.  (Laughter.)  They only wish.  (Chuckles.)

I suppose the good news is that more and more people than ever before are aware of our fiscal challenges that face our nation.  I would suggest that regarding the bad news it may be how many people believe that all you need to do is eliminate foreign aid, yeah, and maybe some of those earmarks and we’ll probably have this thing under control.  People know that they need to be concerned but have a difficult time still relating to trillions and billions and baselines and sequestration – I actually had to try and explain to a layman sequestration and it sounded very kinky when they asked me the question.

I want to thank the business roundtable for hosting this discussion.  John Engler was able to assemble a fantastic group of folks, and this panel is no exception.  As you can see from your agenda, today’s second panel is challenged with getting more specific about spending, about entitlements.  And then the third panel will focus on revenue and tax reform. 

If I had a nickel for every time that this particular panel gave advice to the United States Congress – many of them in front of my committee at the Budget Committee – if they – if I had a nickel for every time they said entitlement growth is unsustainable, we could probably have one doozy of an offset to put into the kitty for some of the work that needs to be done.  Unfortunately, a majority of policymakers have not heeded their advice, and we find ourselves dealing with the current truth of their dire predictions and learning what “unsustainable” truly means. 

While the how-did-we-get-here question is fascinating, often confusing,                                                                                                                                                                                                                                       it’s often a tiptoe through history that can be done in a pretty partisan way.  In the next hour I will try and focus on the future, how we will use the talent we’ve gathered on this panel to focus on solutions and get more specific.  Remember that when Congress arrived for work this year on the first day that they were sworn in and took office, they had already used all of the revenue for the entitlements.  All of the revenue that was going to come in for this year was already out the door and obligated for entitlements.  All of the discretionary accounts needed to be borrowed in order to sustain the budget. 

Upon their arrival today, as you just heard Bill Hoagland said – he counted it up as a staffer, I counted it up as a member – there are only 50 legislative days between now and December 23rd.  And I even counted a few of the Fridays that were already given back.  That doesn’t give a lot of time for the supercommittee or the committees of jurisdiction, let alone the Congress, in order to do their work. 

And that’s not, of course, the only agenda on the fall item – on the fall – on the fall list.  There will be policies to foster long-term, sustained economic growth, job creation and other budget challenges, including the possibility looming of a continuing resolution.  Our budget panel we have here today is a good group of folks who know a lot about the challenges that we’re about to face.

Dan Crippen is the executive director of the National Governor’s Association and a former director of the Congressional Budget Office.  Doug Holtz-Eakin is the president of the American Action Forum and also a former director of the Congressional Budget Office.  Alice Rivlin not only served current – or recently as a member of the President’s Debt Commission but is the founding director of the Congressional Budget Office.  And last, but certainly not least, is Nancy Taylor who served in several positions in the United States Senate, including health policy director for the Senate Committee on Labor and Human Resources.

These folks are here to help us work through some of the issues regarding entitlement spending.  So, friends, let’s kick off with just a few minutes to kind of set the stage; and I’ll ask this question of all four of you.  All of you, of course, are very astute observers of Congress and the budget process.  And it’s kind of a two or three part question:  How difficult is the challenge that Congress faces?  I mean, I realize that there are many answers that have been put forth on the part of policy advisers.  But how difficult is the challenge over these next three months?  What would be the first principles that Congress needs to consider – that this – the apostolic committee, the supercommittee, the select committee – what would be first principles that you would advise them to consider as they – as they take their position? 

And if it’s possible for you to end it by answering the question of:  How would you define success?  Is it defined by the 1.2 trillion (dollars)?  Is it defined by an agreement?  Is it defined by meeting and not killing each other at the end of the first session?  That may be success in some people’s minds, but how would you define success? 

So, Dan, let me kick it – let me let you kick this off. 
 

 

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