We've seen some positive developments this week in terms of getting our economy back on track, both in the short and long term. News that America's economy grew by 5.7% in the last quarter of 2009-the highest rate of growth in six years - is encouraging, but certainly not a sign that we're in the clear. The stories I hear from Southern Indiana residents about their financial struggles is my indicator as to how the economy is doing.
I have been particularly pleased with Congress's and the President's recent focus on addressing our long-term fiscal health. This week marked a major milestone in the progress of Pay-As-You-Go budgeting rules finally becoming law. I know most of my constituents have heard me talk about PAYGO, the importance of restoring it statutorily, and how it has rendered successful in the past, for years now. I have been on the front lines of this issue throughout my congressional tenure. In fact, I have introduced legislation regarding PAYGO six times over the last seven years, either in the form of a standalone bill or as part of a larger budget package. My ardent support for this fiscal reform measure is because PAYGO will require Congress to live within the same budgeting restrictions that hard-working Hoosier families have to every day.
PAYGO is a simple, yet effective, budget reform tool that forces Congress to offset any new or increased spending. And, as I previously mentioned, it works. PAYGO is credited with helping to create the budget surpluses our country experienced in the late 1990s.
Statutory PAYGO was first put in place with bipartisan support by the Budget Enforcement Act of 1990, and was renewed on a bipartisan basis in 1997. The statute expired in 2002 and was not reauthorized. Without PAYGO, the budget plunged from a surplus of $236 billion in the year 2000 to a deficit of $413 billion in the year 2004. In 2007, Democrats regained the majority in Congress and established PAYGO rules in the House and Senate. However, as rules, PAYGO can and has been waived. That is why I continued pushing for PAYGO to be the law of the land.
I believe we will see PAYGO signed into law in the next few weeks. There has been significant, and justifiable, concern recently about the debt our country is amassing and the threat that poses to our economic and national security. I agree completely and am ready to deliver on your demand to forge a new path toward fiscal discipline.
