March 12, 2007

**REIN IN THE DEFICIT!**

COSPONSOR H.R. 1121

**The Government Waste Reduction Act**

Dear Colleague:

Although the President's FY2008 Budget will meet America's needs while
maintaining fiscal responsibility and accountability, our federal
deficit is still a looming danger.

Many variables affect the federal deficit, but the *ONE* thing under our
control is government spending. **If you are concerned about the federal
deficit and out-of-control growth in government spending, I invite you
to cosponsor H.R. 1121, The Government Waste Reduction Act.**

-   **[RESPONSIBLE GROWTH AND REDUCED SPENDING]{.underline}:**

    -   H.R. 1121 decreases discretionary funding for FY2007 by 5% thus
        establishing a FY2008 baseline from CBO numbers and this bill
        would hold future growth from FY08 to 2012 at the rate of
        inflation, saving \$244 billion over 5 years.

    -   H.R. 1121 makes an initial reduction of 5% to all existing
        mandatory spending programs (excluding Social Security)
        resulting in a savings of \$33 billion.

    -   As a result of the fiscal policies in this bill, the interest on
        the federal debt will decrease, resulting in an additional
        savings of \$34 billion.

    -   All in all, this bill saves **\$312 billion** over 5 years
        spread across discretionary and mandatory spending.

-   **[TRUTH IN SPENDING]{.underline}:** H.R. 1121 also strengthens the
    definition of "emergency spending" and backs it up with a strong
    point-of-order if the provision is violated.

-   **[PAYGO SPENDING ENFORCEMENT]{.underline}:** In addition, the bill
    reauthorizes PAYGO for new mandatory spending programs only. H.R.
    1121 would only apply to the direct spending-side of the budget and
    would not affect tax relief legislation. Also, this PAYGO would not
    allow for the increase of taxes to offset new mandatory spending.

Member of Congress should make tough funding choices when attempting to
expand the expenditures of the federal government. This bill allows
shifting of spending priorities but does not offer Congress a blank
check which has caused major fiscal problems in the past.

If you would like to cosponsor or if you need additional information
about The Government Waste Reduction Act, **please contact James Miller
at x5-5301**.

> Sincerely,
>
> J. Gresham Barrett
>
> Member of Congress

**Comparing the Government Waste Reduction Act**

-   Surpluses (not deficits) in FY2012:

    -   \$61 billion in the President's FY2008 budget proposal (OMB)

    -   \$262 billion based upon the FY2008 CBO projections

    -   **\$335 billion**- government waste reduction act

-   This increase in surplus can be used for various purposes which
    would not encourage new federal spending. Some examples of uses of
    an increased surplus

    -   Decrease our nation's debt

    -   Protect the Social Security trust fund

-   Mandatory outlays for FY08

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-   \$1,527 billion in the President's FY2008 budget proposal (OMB)

-   \$1,533 billion based upon FY2008 CBO projections

-   **\$1,499 billion-**government waste reduction act

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-   Discretionary outlays from FY2008 to 2012 (in billions of dollars)

  ----------- --------- --------- --------- --------- --------- ---------
              FY2008    FY2009    FY2010    FY2011    FY2012    total

  OMB         1,114     1,099     1,056     1,045     1,039     5,353

  CBO         992       988       996       1,014     1,023     5,013

  H.R. 1121   962       942       944       958       963       4,769
  ----------- --------- --------- --------- --------- --------- ---------