Statement by Former Senator Pete Domenici and Dr. Alice Rivlin

Senator Domenici and Dr. Rivlin are Co-Chairs of the Bipartisan Policy Center's Debt Reduction Task Force

WASHINGTON, Jan. 26 /PRNewswire-USNewswire/ -- Former Senator Pete Domenici (R-NM) and former Congressional Budget Office (CBO) Director Dr. Alice Rivlin, co-chairs of the Bipartisan Policy Center's Debt Reduction Task Force, released the following statement Tuesday in response to President Obama's proposed three-year freeze on domestic discretionary spending, today's Senate action, and the release of CBO's annual report:

"We are pleased that the President has proposed a partial spending freeze.  We believe this is a constructive first step that acknowledges the urgent need for deficit reduction," said Senator Domenici.

"At the same time," Domenici said, "we are disappointed that the Senate defeated the proposal by Senators Kent Conrad (D-ND) and Judd Gregg (R-NH) to establish an independent, bipartisan commission, particularly in light of continuing unsustainable deficits highlighted in today's CBO report.  Today's events further emphasize the need for the Bipartisan Policy Center's Debt Reduction Task Force."

"Our Task Force is more committed than ever to producing a specific budget plan that will, over the next 10 to 15 years, bring down annual deficits and stabilize federal debt at sustainable levels.  Citizens should take no comfort from the CBO projections, which continue to show a bleak fiscal path when current policies are projected into the future," said Dr. Rivlin.  "We project that debt held by the public will reach 100 per cent of Gross Domestic Product by the end of this decade and nearly double in the subsequent decade.  At those levels, we will be endangering not only our economy, but leaving ourselves hostage to those overseas who purchase our debt."

The Bipartisan Policy Center's Debt Reduction Task Force, launched yesterday, will develop a comprehensive, bipartisan plan to reduce projected federal debt.  The Domenici-Rivlin Task Force will meet in February to begin its deliberations on a specific budget plan.  For more information about the Task Force, please visit: www.bipartisanpolicy.org.

About the Bipartisan Policy Center:

In 2007, former U.S. Senate Majority Leaders Howard Baker, Tom Daschle, Bob Dole, and George Mitchell formed the Bipartisan Policy Center (BPC) to develop and promote solutions that can attract the public support and political momentum to achieve real progress. The BPC acts as an incubator for policy efforts that engage top political figures, advocates, academics, and business leaders in the art of principled compromise. For more information please visit our website: http://www.bipartisanpolicy.org/

SOURCE Bipartisan Policy Center