Taxpayer Watchdog Calls for Spending Cuts as Deficit Soars

Business Wire, Oct 15, 2008

WASHINGTON -- Following reports that the federal budget deficit reached a record $455 billion in fiscal year 2008, Citizens Against Government Waste called for immediate cuts in wasteful spending.

"House and Senate leaders are considering a lame-duck session immediately after the election to adopt a $150 billion stimulus package. Neither House Speaker Nancy Pelosi nor Senate Majority Leader Harry Reid has said a single word about addressing the soaring deficit by reducing wasteful spending in Washington," said CAGW President Tom Schatz. "Americans are going to have to sacrifice during the economic downturn, but members of Congress are doing nothing."

Every day, more states and local governments are announcing cutbacks in order to address the imbalance in their budgets. Fairfax County, Virginia, the capital area's largest local government, predicted a $58.2 million shortfall in revenue. The response was furloughs, across-the-board spending cuts, and a hiring freeze. The response on Capitol Hill to news of the $455 billion deficit - which is likely to more than double to $1 trillion in fiscal year 2009 - was to stay home and run for re-election.

Spending in fiscal year 2008 went up by 9.1 percent, the largest increase since a 9.6. jump in 1990. Revenue dropped by 1.2 percent, the first time since 2003 that the government received less than the prior year.

"Members of Congress continue to cling to their earmarks, with some claiming it is more important than any other duty they have as a legislator. In fiscal year 2008, Congress approved 11,610 earmarks worth $17.2 billion. As a first step on the road to fiscal responsibility, every senator and representative should give up earmarks. As a second step, they should pledge to cut spending across the board by 10 percent and then dig deeper to eliminate all of the waste that is rampant throughout the government. Taxpayers blame Washington and Wall Street for the financial crisis, but they will rightly blame their elected officials for failing to take steps to prevent the deficit from getting worse. The record deficit calls for an immediate and concerted response by the White House and Congress," Schatz concluded.

Citizens Against Government Waste is a nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government.