NEW ALBANY — Emergency spending — such as covering unemployment benefits — is not what federal pay-as-you-go legislation was meant to govern, according to a spokeswoman for Rep. Baron Hill.
Hill, a Democrat representing Indiana’s 9th District, championed PAYGO legislation that was passed by Congress in January. PAYGO was first established in 1990, but expired in 2002 and was not renewed by Congress until this year.
Hill credited PAYGO rules for helping the country achieve a balanced national budget from 1998 to 2001.
It requires lawmakers to identify a funding mechanism — either through a budget cut or a tax increase — to pay for new spending. The PAYGO measures are a part of the Blue Dog Coalition’s fiscal reform plan.
Hill is a member of the Blue Dogs, which are touted as fiscally conservative House Democrats.
The PAYGO legislation has come to the forefront again this week after Sen. Jim Bunning, R-Ky., initially blocked a bill that allowed unemployment benefits to expire because it would add to the national deficit.
A compromise on the bill was reached Tuesday, but the fallout has continued.
“If we can’t find $10 billion to pay for something we all support, we will never pay for anything on the floor of this U.S. Senate,” Bunning told the Associated Press.
But Hill spokeswoman Katie Moreau said Wednesday PAYGO is not intended to halt what she defined as “emergency spending.”
“Traditionally, extension of such benefits as unemployment benefits and COBRA have been considered emergency spending,” she said.
The COBRA legislation allows workers to retain their insurance benefits even if they lose their job.
“[Bunning’s] concern about the deficit is right on, but perhaps that could have led him to support PAYGO when it came before the Senate,” Moreau said.
She added that the emergency spending distinction is not used often.
“This is considered emergency spending because, well, it is emergency spending,” Moreau said.
“This time of economic downturn necessitates extending some of these benefits so that folks can pay their rent [and] keep their lights on.”
Hill was an original cosponsor of a bill introduced Tuesday in the House by Rep. Bobby Bright, Democrat, of Alabama. If passed, it would establish a Constitutional amendment requiring the President to submit a balanced budget and for Congress to produce a balanced budget each fiscal year.
“If Congress cannot police itself on this issue, perhaps an amendment will force us to do so,” Hill stated in a news release.
Social Security benefits would be protected if the amendment passes, according to Hill.
“Balanced budgets have been achieved in the past, and I see no reason why we cannot strive to attain them in the near future,” he said.
