Readout of the Vice President’s Meeting with the Crown Prince of Abu Dhabi Sheikh Mohammed Bin Zayed Al Nahyan
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Presidential Memorandum Regarding Finding and Recapturing Improper Payments
MEMORANDUM FOR THE HEADS OF EXECUTIVE DEPARTMENTS AND AGENCIES
SUBJECT: Finding and Recapturing Improper Payments
My Administration is committed to reducing payment errors and eliminating waste, fraud, and abuse in Federal programs -- a commitment reflected in Executive Order 13520 of November 20, 2009, Reducing Improper Payments. Executive departments and agencies should use every tool available to identify and subsequently reclaim the funds associated with improper payments. Thorough identification of improper payments promotes accountability at executive departments and agencies; it also makes the integrity of Federal spending transparent to taxpayers. Reclaiming the funds associated with improper payments is a critical component of the proper stewardship and protection of taxpayer dollars, and it underscores that waste, fraud, and abuse by entities receiving Federal payments will not be tolerated.
Today, to further intensify efforts to reclaim improper payments, my Administration is expanding the use of "Payment Recapture Audits," which have proven to be effective mechanisms for detecting and recapturing payment errors. A Payment Recapture Audit is a process of identifying improper payments paid to contractors or other entities whereby highly skilled accounting specialists and fraud examiners use state-of-the-art tools and technology to examine payment records and uncover such problems as duplicate payments, payments for services not rendered, overpayments, and fictitious vendors. (A Payment Recapture Audit as used in this memorandum shall have the same meaning as the term "recovery audit" as defined in Appendix C to Office of Management and Budget Circular A-123.) One approach that has worked effectively is using professional and specialized auditors on a contingency basis, with their compensation tied to the identification of misspent funds.
Therefore, I hereby direct executive departments and agencies to expand their use of Payment Recapture Audits, to the extent permitted by law and where cost-effective. The Director of the Office of Management and Budget (OMB) shall develop guidance within 90 days of the date of this memorandum on actions executive departments and agencies must take to carry out the requirements of this memorandum. The guidance may require additional actions and strategies designed to improve the recapture of improper payments, including, as appropriate, agency-specific targets for increasing recoveries. The Director of the OMB shall further coordinate with the Council for Inspectors General on Integrity and Efficiency to identify an appropriate process for obtaining review by Inspectors General of the effectiveness of agency efforts under this memorandum. The agencies' expanded use of Payment Recapture Audits does not preclude Offices of Inspectors General from performing any activities to identify and prevent improper payments.
Nothing in this memorandum shall be construed to require the disclosure of classified information, law enforcement sensitive information, or other information that must be protected in the interests of national security.
This memorandum is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
The Director of the OMB is hereby authorized and directed to publish this memorandum in the Federal Register.
BARACK OBAMA
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President Obama Announces New Effort to Crack Down on Waste and Fraud
WASHINGTON—President Barack Obama today will announce a new effort to crack down on waste and fraud in Medicare, Medicaid, and other government programs through the expanded use of payment recapture audits. The initiative is the latest component in President Obama’s commitment to embrace the best ideas – from both parties – in advancing reform.
In his remarks on health insurance reform in St. Charles, Missouri, President Obama will discuss a new effort to recoup taxpayer dollars through the use of payment recapture audits, which offer specialized private auditors financial incentives to root out improper payments, and have been demonstrated through pilot programs to be highly effective. In fact, expanded use of payment recapture audits could return at least $2 billion in taxpayer money over the next three years– double the current amount of projected recovered costs.
The President will sign a presidential memorandum today that directs all federal departments and agencies to expand and intensify their use of payment recapture audits under their current authority. He will also announce his support for the Improper Payments Elimination and Recovery Act, bipartisan legislation to expand the ability of government agencies to fund the audits with recaptured payments.
“The fact is, Washington is a place where tax dollars are often treated like Monopoly money, bartered and traded, divvied up among lobbyists and special interests. And it has been a place where waste – even billions of dollars in waste – is accepted as the price of doing business,” said President Obama. “Well, I don’t accept business as usual. And the American people don’t accept it either, especially when one of the most pressing challenges we face is reining in long-term deficits with threaten to leave our children a mountain of debt.”
The President’s health insurance reform proposal builds on an unprecedented array of aggressive new authorities to fight waste, fraud and abuse in the House and Senate bills with a number of additional proposals proposed by Democrats and Republicans alike. President Obama, in a March 2 letter to Congressional leaders, also expressed interest in a proposal suggested by U.S. Sen. Tom Coburn (R-OK) at the bipartisan health care meeting on February 25 to use undercover investigations to further combat fraud.
A fact sheet on today’s announcement appears below:
FACT SHEET: CUTTING DOWN ON WASTE AND FRAUD
THROUGH PAYMENT RECAPTURE AUDITS
Each year, the federal government wastes billions of American taxpayers’ dollars on improper payments to individuals, organizations, and contractors. These are payments made in the wrong amounts, to the wrong person, or for the wrong reason. In 2009, improper payments totaled $98 billion, with $54 billion stemming from Medicare and Medicaid. We cannot afford nor should we tolerate this waste of taxpayer dollars and in our health care system.
Today, the President is announcing a new effort to improve accountability and cut down on this waste and fraud through the use of payment recapture audits. These are investigations in which specialized private sector auditors use cutting-edge technology and tools to scrutinize government payments and then find and reclaim taxpayer funds made in error or gained through fraud. These auditors can be compensated based on the amount of improper payments they identify and are reclaimed – providing a powerful incentive to find every error. A pilot program run by Medicare in three large states – California, New York, and Texas – from 2005 to 2008 recaptured $900 million for taxpayers.
Currently, using reclaimed funds to pay for recapture audits is only possible for the Medicare Fee-for-Service program payments and for government contracts at the 20 out of 24 major government agencies that do more than $500 million in government contracting. This leaves out contract payments made by numerous other agencies as well as grants and other forms of federal benefit payments made to organizations such as state and local governments, colleges and universities, banks, and non-profit organizations. That is why the President today is announcing two key steps to intensify and expand the use of payment recapture audits:
Presidential Memorandum on Payment Recapture Audits. The President will sign a presidential memorandum today that directs all federal departments and agencies to expand and intensify their use of payment recapture audits under the authority they currently have. It is anticipated that using the payment recapture audits will return at least $2 billion over the next three years to American taxpayers – double the current amount of projected recovered costs.
Support the bipartisan Improper Payments Elimination and Recovery Act. Since government agencies can only use recaptured fund to pay for these audits in specific situations, the President today is announcing his support for the Improper Payments Elimination and Recovery Act, a bipartisan bill that would expand the ability of government agencies to fund these specialized audits with recaptured payments. The bill has been offered by Senators Tom Carper, D-Del., Claire McCaskill, D-Mo., Joseph Lieberman, I.D.-Conn., Tom Coburn, R-Okla., Susan Collins, R-Maine, and John McCain, R-Ariz. Similar legislation has been introduced in the House by Representatives Patrick Murphy, D-Penn., and Brian Bilbray, R-Calif.
These actions build on the Executive Order the President issued on improper payments in November 2009. There, the President focused on reducing improper payments, which totaled $98 billion in Fiscal Year 2009, with three categories of action: boost transparency, hold agencies accountable, and create strong incentives for compliance.
Boost transparency. The Administration is moving forward with an Improper Payment Dashboard, launching this spring, to allow the public to see details on improper payments, view payment error rates by agency and program, and see a list of bad actors (e.g., registered fraud offenders or contractors with pervasive over or duplicate billing issues that have gone through appropriate due process). Hold agencies accountable for waste. The Administration has required each agency to designate a Senate-confirmed appointee to be accountable to the President for meeting improper payment reduction targets and consolidating program integrity activities. The Administration also is increasing data-sharing among agencies so once a mistake is caught, it is not repeated. Create incentives for compliance. The federal government is creating incentives for states and other entities to reduce improper payments and increase penalties for contractors who fail to timely disclose improper payments.In addition, the Administration has been moving aggressively to crack down on waste and fraud:
Dramatically reduce unnecessary costs and minimize waste in the Medicare, Medicaid and CHIP programs. The President’s FY2011 Budget devoted more than $1.8 billion for program integrity – an increase of $225 million (or 14 percent) over FY2010 – to combat waste, fraud and abuse in these health programs. This robust approach, including the Budget’s program integrity legislative proposals, will save taxpayers an estimated $23 billion over 10 years. Cut programs that are broken, duplicative, or just not needed. In his FY 2010 Budget, the President proposed more than 120 program terminations or reductions, for a potential one-year savings of $20 billion. Congress approved 60 percent of the proposed cuts to discretionary programs – a high-water mark for any recent administration. The Fiscal Year 2011 Budget outlined more than $20 billion in terminations and reductions, streamlining programs that work and cutting ones that do not. Reduce contracting costs, increase accountability, and eliminate high-risk contracts. The federal government spends more than $500 billion annually on federal contracts. Because of a lack of oversight, these contracts too often are directed to projects we don’t need or can’t afford, executed inefficiently, and done in ways that force the government to bear too much risk and not realize savings. The Administration is committed to reducing contract spending by $40 billion by the end of 2011, cutting sole-source or no-bid contracts, and strengthening the federal acquisition workforce to improve agencies’ capacity to manage contracts and ensure value for the taxpayers’ dollars.Categories: Fiscal Responsibility, Office of the Press Secretary, Statements and Releases, The President Tags:
President Obama Names Members of Bipartisan National Commission on Fiscal Responsibility and Reform
WASHINGTON – Today, President Barack Obama named the following individuals to serve on the bipartisan National Commission on Fiscal Responsibility and Reform being co-chaired by former White House Chief of Staff Erskine Bowles and former Republican Senate Whip Alan Simpson:
David Cote, Member, National Commission on Fiscal Responsibility and Reform Ann Fudge, Member, National Commission on Fiscal Responsibility and Reform Alice Rivlin, Member, National Commission on Fiscal Responsibility and Reform Andy Stern, Member, National Commission on Fiscal Responsibility and ReformPresident Obama said, “For far too long, Washington has avoided the tough choices necessary to solve our fiscal problems. I am proud that these distinguished individuals have agreed to work to build a bipartisan consensus to put America on the path toward fiscal reform and responsibility. I know they’ll take up their work with the sense of integrity and strength of commitment that the American people deserve and America’s future demands.”
The bipartisan National Commission on Fiscal Responsibility and Reform will make recommendations to Congress by December 1, 2010 to put the budget in primary balance so that all operations and programs for the federal government are paid for (achieving deficits of about 3 percent of GDP) by 2015 and to meaningfully improve the long-term fiscal outlook. With today’s appointments the President has named 6 bipartisan appointees to the commission. The remaining 12 members of the commission will be appointed by Senate and House leaders (3 each by the Republican and Democratic leaders of both chambers).
President Obama named the following individuals as members of the National Commission on Fiscal Responsibility and Reform:
Dave Cote has served since 2002 as chairman, chief executive officer, and president of Honeywell, a diversified technology and manufacturing leader. Under Cote’s leadership, Honeywell has delivered strong performance in sales, earnings per share, segment profit, and cash flow. He has served on the U.S.-India CEO Forum since 2005 and was named co-chair by President Obama in 2009. Previously, he was chairman, chief executive officer, and president of TRW. He joined TRW from General Electric, where he served 25 years in various manufacturing, finance, and management positions. He received the Corporate Social Responsibility Award from the Foreign Policy Association in 2007. He is a graduate of the University of New Hampshire.
Ann Fudge served as chairman and chief executive officer of Young & Rubicam Brands from 2003 to 2006. Prior to joining Young & Rubicam Brands, she worked at General Mills and Kraft, where she served in a number of senior executive positions. Fudge is not only a proven business leader, but also an engaged civic voice having served on the boards of the Gates Foundation, the Rockefeller Foundation, and the Boys and Girls Clubs of America. She is a graduate of Simmons College and Harvard Business School.
Alice Rivlin is a senior fellow in the Economic Studies Program at the Brookings Institution and visiting professor at Georgetown University. Before returning to Brookings, she served in a variety of senior public policy roles including vice chair of the Federal Reserve Board, director of the White House Office of Management and Budget, chair of the District of Columbia Financial Management Assistance Authority, and founding director of the Congressional Budget Office. She is a graduate of Bryn Mawr College and received her Ph.D. in economics from Harvard University.
Andy Stern, president of the Service Employees International Union, represents 2.2 million healthcare workers, janitors, security officers, public employees, and other hardworking women and men in the United States, Canada, and Puerto Rico. As both a labor leader and an activist, he is a leading voice and aggressive advocate for practical solutions to achieve economic opportunity and justice for workers. Stern began working as a social service worker and member of SEIU Local 668 in 1973 and rose through the ranks before his election as SEIU president in 1996. He is a graduate of the University of Pennsylvania.
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Remarks by The President Establishing The National Commission On Fiscal Responsibility and Reform
10:20 A.M. EST
THE PRESIDENT: Good morning, everybody. When I took office, America faced three closely linked challenges. One was a financial crisis, brought on by reckless speculation that threatened to choke off all lending. And this helped to spark the deepest recession since the Great Depression, from which we're still recovering. That recession, in turn, helped to aggravate an already severe fiscal crisis, brought on by years of bad habits in Washington.
Now, the economic crisis required the government to make immediate emergency investments that added to our accumulated debt -- critical investments that have helped to break the back of the recession and lay the groundwork for growth and job creation. But now, with so many Americans still out of work, the task of recovery is far from complete. So in the short term, we're going to be taking steps to encourage business to create jobs that will continue to be my top priority.
Still there's no doubt that we're going to have to also address the long-term quandary of a government that routinely and extravagantly spends more than it takes in.
When I walked into the door of the White House, our government was spending about 25 percent of GDP but taking in only about 16 percent of GDP. Without action, the accumulated weight of that structural deficit, of ever-increasing debt, will hobble our economy, it will cloud our future, and it will saddle every child in America with an intolerable burden.
This isn't news. Since the budget surpluses at the end of the 1990s, federal debt has exploded. The trajectory is clear and it is disturbing. But the politics of dealing with chronic deficits is fraught with hard choices and therefore it's treacherous to officeholders here in Washington. As a consequence, nobody has been too eager to deal with it.
That's where these two gentlemen come in. Alan Simpson and Erskine Bowles are taking on the impossible: They're going to try to restore reason to the fiscal debate and come up with answers as co-chairs of the new National Commission on Fiscal Responsibility and Reform. I'm asking them to produce clear recommendations on how to cover the costs of all federal programs by 2015, and to meaningfully improve our long-term fiscal picture. I've every confidence that they'll do that because nobody is better qualified than these two.
Alan Simpson is a flinty Wyoming truth-teller -- (laughter) -- if you look in the dictionary it says "flinty," and then it's got Simpson's picture. (Laughter.) Through nearly two decades in the United States Senate, he earned a reputation for putting common sense and the people's welfare ahead of petty politics. As the number two Republican in the Senate, he made the tough choices necessary to close deficits and he played an important role in bipartisan deficit reduction agreements.
Erskine Bowles understands the importance of managing money responsibly in the public sector, where he ran the Small Business Administration and served as President Clinton's chief of staff. In that capacity, he brokered the 1997 budget agreement with Republicans that helped produce the first balanced budget in nearly 30 years. One is a good Republican, the other a good Democrat. But above all, both are patriotic Americans who are answering their country's call to free our future from the stranglehold of debt.
The commission they'll lead was structured in such a way as to rise above partisanship. There's going to be 18 members. In addition to the two co-chairs, four others will be appointed by me. Six will be appointed by Republican leaders, six by Democratic leaders. Their recommendations will require the approval of 14 of the commission's 18 members, and that ensures that any recommendation coming out of this effort and sent forward to Congress has to be bipartisan in nature.
This commission is patterned on a bill that I supported for a binding commission that was proposed by Democratic Senator Kent Conrad and Republican Senator Judd Gregg. Their proposal failed recently in the Senate. But I hope congressional leaders in both parties can step away from the partisan bickering and join this effort to serve the national interest.
As important as this commission is, our fiscal challenge is too great to be solved with any one step alone, and we can't we wait to act. That's why last week, I signed into law the PAYGO bill -- says very simply that the United States of America should pay as we go and live within our means again -- just like responsible families and businesses do. This law is what helped get deficits under control in the 1990s and produced surpluses by the end of the decade.
It was suspended in the last decade, and during that period we saw deficits explode again. By reinstituting it, we're taking an important step towards addressing the deficit problem in this decade, and in decades to come.
That's also why, after taking steps to cut taxes and increase access to credit for small businesses to jumpstart job creation this year, I've called for a three-year freeze on discretionary spending, starting next year. This freeze won't affect Medicare, Medicaid, or Social Security spending. And it won't affect national security spending, including veterans' benefits. But all other discretionary spending will be subject to this freeze.
These are tough times and we can't keep spending like they're not. That's why we're seeking to reform our health insurance system -- because if we don't, soaring health care costs will eventually become the single largest driver of our federal deficits. Reform legislation in the House and the Senate would bring down deficits, and I'm looking forward to meeting with members of both parties and both chambers next week to try to get this done.
And that's also why this year, we're proposing a responsible budget that cuts what we don't need to pay for what we do. We've proposed budget reductions and terminations that would yield about $20 billion in savings. We're ending loopholes and tax giveaways for oil and gas companies and for the wealthiest 2 percent of Americans. So, taken together, these and other steps would provide more than $1 trillion in deficit reduction over the coming decade. That's more savings than any administration's budget in the past 10 years.
I know the issue of deficits has stirred debate. And there's some on the left who believe that this issue can be deferred. There are some on the right who won't enter into serious discussions about deficits without preconditions. But those who preach fiscal discipline have to be willing to take the hard steps necessary to achieve it. And those who believe government has a responsibility to meet these urgent challenges have a great stake in bringing our deficits under control -- because if we don't, we won't be able to meet our most basic obligations to one another.
So America's fiscal problems won't be solved overnight. They've been growing for years; they're going to take time to wind down. But with the commission that I'm establishing today, and the other steps we're pursuing, I believe we are finally putting America on the path towards fiscal reform and fiscal responsibility.
And I want to again thank Alan and Erskine for taking on what is a difficult and perhaps thankless task. I'm grateful to them for their willingness to sacrifice their time and their energy in this cause. I know that they're going to take up their work with a sense of integrity and a sense of commitment that America's people deserve and America's future demands.
And I think part of the reason they're going to be effective is, although one is a strong Democrat and one is a strong Republican, these are examples of people who put country first. And they know how to disagree without being disagreeable, and there's a sense of civility and a sense that there are moments where you set politics aside to do what's right.
That's the kind of spirit that we need. And I am confident that the product that they put forward is going to be honest; it's going to be clear; it's going to give a path to both parties in terms of how we have to address these challenges.
All right. Thank you very much.
(The executive order is signed.)
Q Sir, is everything on the table for this?
THE PRESIDENT: Everything is on the table. That's how this thing is going to work.
Q What's "Erskine" in the dictionary? (Laughter.)
END
10:29 A.M. EST
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Executive Order — National Commission on Fiscal Responsibility and Reform
By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered as follows:
Section 1. Establishment. There is established within the Executive Office of the President the National Commission on Fiscal Responsibility and Reform (Commission).
Sec. 2. Membership. The Commission shall be composed of 18 members who shall be selected as follows:
(a) six members appointed by the President, not more than four of whom shall be from the same political party;
(b) three members selected by the Majority Leader of the Senate, all of whom shall be current Members of the Senate;
(c) three members selected by the Speaker of the House of Representatives, all of whom shall be current Members of the House of Representatives;
(d) three members selected by the Minority Leader of the Senate, all of whom shall be current Members of the Senate; and
(e) three members selected by the Minority Leader of the House of Representatives, all of whom shall be current Members of the House of Representatives.
Sec. 3. Co-Chairs. From among his appointees, the President shall designate two members, who shall not be of the same political party, to serve as Co-Chairs of the Commission.
Sec. 4. Mission. The Commission is charged with identifying policies to improve the fiscal situation in the medium term and to achieve fiscal sustainability over the long run. Specifically, the Commission shall propose recommendations designed to balance the budget, excluding interest payments on the debt, by 2015. This result is projected to stabilize the debt-to-GDP ratio at an acceptable level once the economy recovers. The magnitude and timing of the policy measures necessary to achieve this goal are subject to considerable uncertainty and will depend on the evolution of the economy. In addition, the Commission shall propose recommendations that meaningfully improve the long-run fiscal outlook, including changes to address the growth of entitlement spending and the gap between the projected revenues and expenditures of the Federal Government.
Sec. 5. Reports.
(a) No later than December 1, 2010, the Commission shall vote on the approval of a final report containing a set of recommendations to achieve the mission set forth in section 4 of this order.
(b) The issuance of a final report of the Commission shall require the approval of not less than 14 of the 18 members of the Commission.
Sec. 6. Administration.
(a) Members of the Commission shall serve without any additional compensation, but shall be allowed travel expenses, including per diem in lieu of subsistence, as authorized by law for persons serving intermittently in Government service (5 U.S.C. 5701-5707), consistent with the availability of funds.
(b) The Commission shall have a staff headed by an Executive Director.
Sec. 7. General.
(a) The Commission shall terminate 30 days after submitting its final report.
(b) Nothing in this order shall be construed to impair or otherwise affect:
(i) authority granted by law to an executive department, agency, or the head thereof; or
(ii) functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.
(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
BARACK OBAMA
THE WHITE HOUSE,
February 18, 2010.
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President Obama Establishes Bipartisan National Commission on Fiscal Responsibility and Reform
Names former White House Chief of Staff Erskine Bowles and former Republican Senate Whip Alan Simpson as Commission Co-Chairs
WASHINGTON – Today, President Obama will sign an executive order establishing the bipartisan National Commission on Fiscal Responsibility and Reform and announce that former White House Chief of Staff Erskine Bowles and former Republican Senate Whip Alan Simpson will serve as the Commission’s co-chairs.
President Obama said, “For far too long, Washington has avoided the tough choices necessary to solve our fiscal problems – and they won’t be solved overnight. But under the leadership of Erksine and Alan, I’m confident that the Commission I’m establishing today will build a bipartisan consensus to put America on the path toward fiscal reform and responsibility. I know they’ll take up their work with the sense of integrity and strength of commitment that America’s people deserve and America’s future demands.”
Former White House Chief of Staff Erskine Bowles said, “This is one of the most critically important challenges facing the country today and it has be addressed in a bipartisan manner. This is not a Republican or Democratic problem– this is a challenge for America.”
Former Republican Senate Whip Alan Simpson said, “We find ourselves in a difficult fiscal situation that is unsustainable. Whatever the results of our work, the American people are going to know about a lot more where we are headed with an honest appraisal of our situation and the courage to do something about it. I am pleased to accept this difficult role and eager to work with Erskine and the members of the Commission. ”
The bipartisan National Commission on Fiscal Responsibility and Reform will build bipartisan consensus to put forth solutions to tackle our long-ignored fiscal challenges.
The Commission will make recommendations that put the budget in primary balance so that we are paying for all operations and programs for the federal government (achieving deficits of about 3 percent of GDP) by 2015 and meaningfully improve the long-term fiscal outlook. The Commission will be comprised of 18 total members. 12 members will be appointed by Senate/House leaders (3 each by the Republican and Democratic leaders of both chambers). All must be sitting members of Congress. The additional 6 members will be appointed by the President, with no more than 4 from the same political party. Furthermore, 14 out of 18 votes needed to report recommendations, and recommendations must be reported to Congress by December 1, 2010.The executive order will be signed at the event this morning.
Since taking office, President Obama has worked to usher in a new era of responsibility in Washington. He put forward a 2011 Budget that includes more than a $1 trillion of deficit reduction, excluding war savings, and signed into law statutory PAYGO legislation so that Congress would have to pay for what it proposes. He ordered his administration to go line by line through the budget looking for programs that do not work or are outdated or duplicative. And the President is taking on the biggest challenge to our fiscal future -- rising health care costs -- by fighting to pass meaningful health reform legislation, and demanding that it doesn’t add a dime to our deficit.
President Obama named the following individuals as Co-Chairs of the National Commission on Fiscal Responsibility and Reform:
Erskine Bowles is currently President of the University of North Carolina. He served as White House Chief of Staff under President Clinton from 1996 to 1998. In that capacity, Bowles brokered the last significant bipartisan budget agreement, the Balanced Budget Act of 1997, with the Republican leadership in Congress—helping to generate the first balanced budget in nearly 30 years. He had previously served as Deputy White House Chief of Staff from 1994 to 1995 and as head of the Small Business Administration from 1993 to 1994. Bowles has also had a long career in business, helping to found the investment firm Carousel Capital in Charlotte, North Carolina, and he was the Democratic nominee for the U.S. Senate in North Carolina in both 2002 and 2004.
Alan Simpson served as a U.S. Senator from Wyoming from 1979 to 1997. From 1985 to 1995, he was the Republican whip in the Senate, and he also chaired the Senate Finance Committee’s Subcommittee on Social Security. During his career in the Senate, Simpson was a consistent voice for fiscal balance—for example, voting in favor the bipartisan 1990 deficit-reduction agreement. From 1997 to 2000, Simpson taught at the Joan Shorenstein Center on the Press, Politics, and Public Policy at Harvard’s Kennedy School of Government. Simpson left Harvard in 2000 to return home to Cody, Wyoming, where he now practices law with his two sons. Simpson serves on the Commission for Continuity in Government, as well as Co-Chair of Americans for Campaign Reform with several former Senate colleagues. He served as a member of the Iraq Study group.
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Statement by the Press Secretary on H.J. Res. 45
On Friday, February 12, 2010, the President signed into law:
H.J. Res. 45, the Statutory Pay-As-You-Go Act of 2010, which increases the public debt limit from $12.394 trillion to $14.294 trillion; and establishes a statutory Pay-As-You-Go procedure requiring that new non-emergency legislation affecting tax revenue or mandatory spending not increase the Federal deficit.
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Statement from The President on House Passage of PAYGO
I am pleased that the House of Representatives has passed statutory pay-as-you-go (PAYGO) into law.
Statutory PAYGO would hold us to a simple but bedrock principle: Congress can only spend a dollar if it saves a dollar elsewhere. Mandatory spending increases and tax cuts must be paid for; they're not free, and borrowing to finance them is not a sustainable long-term policy.
It is no coincidence that when we last had statutory PAYGO, during the 1990s, we turned deficits into surpluses. The passage of statutory PAYGO today will help usher out an era of irresponsibility and begin putting the country back on a fiscally sustainable path.
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