Washington, DC — Joint Economic Committee (JEC) Chairman Jim Saxton (R-NJ) today released a study entitled Budget Process Reform recommending a change of the Federal budget process. The study discusses how government has grown too large and is beyond a size which is optimal for maximum economic growth. "I think this study is noteworthy as it describes a budget process which fails because it wrongly separates spending from financial decisions, creates unnecessary ambiguity, and thereby reduces policymakers' accountability to taxpayers," stated Chairman Saxton.

      The study not only analyzes the problems with the current budget process but also proposes various improvements. These proposals would increase the ability of taxpayers and voters to understand the procedures that create budgetary policy.

      Saxton noted that reform is necessary to eliminate the special-interest bias built into the budget process. "We need this reform to help minimize the special-interest bias which is expanding the size of government in ways that are not constructive for the Nation or for the economy," said Saxton. He continued, "Democracy cannot function effectively if policymakers can hide behind a smokescreen."

      The JEC report is critical of several recent budget process reforms made over the past two decades. The report says the Federal system is overly complex. The obfuscation of the process makes it easier for special-interests to receive funding behind a "veil of secrecy." The report calls for simplifying the decision-making process, raising its visibility, with the goal of improving the public's understanding of the actions of policymakers.

      For a copy of this JEC report, call (202) 224-5171.

Press Release: #105-45

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