For several years, there have been calls for the creation of a bipartisan, bicameral, fiscal commission to address the insolvency of several important government programs and to find a solution to our lopsided debt to GDP ratio. Recently, these calls have led to action, with bipartisan momentum growing for several bills to create such a commission.

On November 29^th, the House Budget Committee held a hearing examining three bills, each with a similar purpose: creating a fiscal commission to right the course and bring our federal budget house in order. The hearing featured a panel of several members of congress and two senators with various perspectives and experience with commissions such as those proposed. These included Representatives Bill Huizenga (R-MI), Scott Peters (D-CA), Steve Womack (R-AR, also former Chair of the House Budget Committee), Ed Case (D-HI), and former Chairman of the House Committee on Rules Jim McGovern (D-MA), also Ranking Member of the House Rules Committee, Lloyd Smucker (R-PA), and Senators Mitt Romney (R-UT), and Joe Manchin (D-WV). The hearing featured both advocates for the commission as well as commission skeptics.

In a similar fashion as the last hearing on the need for a fiscal commission, arguments in favor of the commission included:

• The need to address this urgent issue in a responsible manner, free from the typical partisan bickering which has shaped recent congressional debate.
• The pending insolvency of several crucial government programs, including Social Security and Medicare.
• The multifaceted threats which arise from our current fiscal trajectory including national security, fiscal health, economic strength, and long-term ability to continue to provide services Americans rely on.

Similarly, arguments against the commission were reminiscent of the previous hearing. These included:

• Doubts about the effectiveness of a commission to achieve the goals set out for it.
• Concern that the process isn’t the problem, but rather the issue is the people and Congress’ inability to work cohesively.
• Fear that this commission would lead to cuts to popular programs such as Medicare and Social Security.

In his opening statement, Chairman Jodey Arrington (R-TX) laid out the case for the fiscal commission:

“No responsible leader can look at the rapid deterioration of our balance sheet, the CBO projection of these unsustainable deficits and the long-term, unfunded liabilities of our nation, and not feel compelled to intervene and change course. No responsible leader can do that. As I said from the outset, this is the 21st century challenge for America. I believe this is our generation’s world War and the cost of losing this war will be catastrophic and irreparable. And I have three children. I imagine many of you have children and grandchildren, and they’re counting on us to step up and be leaders and work together to solve the problem. If we don’t have this sense of urgency, we don’t have a plan. If we don’t exercise the political courage to execute the plan, we will be the first generation of leaders to fail to leave the country better than we found it.”

Rep. Scott Peters (D-CA) noted that our current system isn’t working and that no single leader or party is solely responsible for our current trajectory:

“I’ve heard many of my colleagues on both sides of the aisle contend, sometimes emphatically, sometimes indignantly, that we should get our debt under control through regular order with the tools we already have. And of course, they’re right, we should do that. But I’ve been here now almost 11 years, it’s clear to me and everyone in this room that we’re not going to do that, that this process we have today, it doesn’t allow us to get to 218 and 60. Just to spend more, spend less and to keep to keep tax policy, right? We’re going to need something outside of that. Indignity will not solve our problem. And it’s a problem of historic proportions. It did not appear overnight. Our failure to manage the national debt is not the sole responsibility of one party or one administration.”

The commission received skepticism as well. Jim McGovern (D-MA) argued that a commission is an unnecessary step to solving the problem. He argued that:

“There isn’t some secret formula. We either cut spending, tax the rich, or a combination of both. We don’t need a commission to tell us that, we just need common sense. And I want to echo what the former Chairman of this Committee, Mr. Yarmuth said in October on the same issue. The problem is not the process. It’s the people. There is no shortage of legislation to address our fiscal challenges. Legislation has been introduced to extend Social Security solvency indefinitely, to demand that the Pentagon actually pass an audit, and to end the billions of dollars of subsidies we give to big oil just to name a few. Committees and subcommittees of jurisdiction can hold hearings and markups. That’s what we’re supposed to do. That’s what the American people pay us to do. The buck should stop with us.

Rep. Lloyd Smucker (R-PA) argued that Congress is too dysfunctional, and an outside commission would be a strong guiding force for members to get the job done:

“But when we don’t do our job, and I think it’s hard for anybody argument that we are, then we’re going to need to look at additional reforms in the process, I think, to make this place work more effectively. So my argument will be different from Rep. Yarmuth, we do need reform. And then secondly, you know, I’ve sort of again, based on my experience, in only one experience, but I view the commission as a body within Congress that is helping Congress do its job not as some separate organization that is taking it away from Congress.”

There remains a broad understanding that what we are currently doing isn’t working, while the disagreement is over the solution. While some members traded partisan jabs over who caused what fiscal damage and how, the fact remains that we are on an unsustainable path, and essential programs are, at best, 10 years away from insolvency.

The two main bills, H.R.5779 and S. 3262, currently call for the creation of a commission made of 16 members, 12 of whom would be current Members of Congress, three from each party in each Congressional body and four outside experts, appointed by congressional leadership. The commission’s goals would be to identify policies to improve the fiscal situation in the medium term and to achieve a sustainable debt to GDP ratio in the long-term.

While Congressional opinion is split on how to solve this issue, it remains true that the problem is there and must be delt with. As negotiations continue on the creation of a fiscal commission, TCS will continue to follow, supporting fiscally responsible policies.