Democrats Want Full Debate, Clean Votes on
Debt Ceiling Increase, PAYGO

November 10 , 2004

WASHINGTON - Ranking Democrats on three House committees – Reps. Spratt, Rangel, and Stenholm – today sent the following letter to House Speaker Hastert on the increase in the debt ceiling, scheduled for floor action next week. The Democrats ask that the increase in the debt ceiling be considered as a stand-alone matter, not rolled into another legislative vehicle, and that it be given a full debate, followed by a clean up-or-down vote. They also believe that the increase in the debt ceiling must be preceded by a debate and vote to reinstate the effective pay-as-you-go (PAYGO) rules—for spending increases and tax cuts—which helped to turn record deficits into record surpluses in the 1990s.

November 10, 2004

The Honorable J. Dennis Hastert
Speaker
U.S. House of Representatives
H-232 Capitol
Washington, DC 20515

Dear Speaker Hastert:

Treasury Department officials have now indicated that their ability to use extraordinary measures to avoid breaching the statutory debt ceiling will not last beyond November 18. Given that the Congress does not return until the evening of November 16, expedited consideration of a debt limit increase will be necessary.

We are writing to request that the increase in the debt ceiling be considered as a stand-alone matter, not rolled into another legislative vehicle, and that it be given a full debate, followed by a clean up-or-down vote. Additionally, we feel that the increase in the debt ceiling must be preceded by a debate and vote to reinstate the effective pay-as-you-go (PAYGO) rules—for spending increases and tax cuts—which helped to turn record deficits into record surpluses in the 1990s. There is widespread consensus — including Federal Reserve Chairman Alan Greenspan, the Concord Coalition, and the Committee for a Responsible Federal Budget — about the effectiveness of this balanced approach to PAYGO. We believe that fiscal responsibility necessitates its consideration in conjunction with a debt ceiling increase.

Indeed, the need for a third increase in the debt limit in just three years is a reminder that the nation's finances are facing deep, long-term challenges. In 2002, the debt ceiling—which then stood at $5.95 trillion—was increased by $450 billion. Last year's increase was the largest in history, $984 billion. The size of that single increase was larger than all of the debt incurred from the first days of the Republic through the inauguration of President Ronald Reagan in 1981, and it took the debt limit to its current level of $7.384 trillion. Now, an increase of an additional $690 billion is needed to accommodate the policies included in this year's budget resolution conference report—which would push the debt ceiling over $8 trillion.

Clearly, decisions of such consequence deserve to be considered fully and openly, and any vote to increase the debt limit should be preceded by a vote to put in place procedures that can help put the budget back on the right track. Deficits and debt of this magnitude are not simply a budget problem, they are also a moral problem, and we must take action to prevent passing this burden on to our children and grandchildren.

Sincerely,

John M. Spratt, Jr.
Ranking Democratic Member
Committee on the Budget

Charles B. Rangel
Ranking Democratic Member
Committee on Ways and Means

Charles W. Stenholm
Ranking Democratic Member
Committee on Agriculture

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