WASHINGTON —
Today, The Concord Coalition issued its preview of the President’s budget:
“The Seven Signs of Fiscal Sense: What to Look for in the President’s Fiscal
Year 2007 Budget.” The issue brief closely examines both the rhetoric and
reality of the President’s stated fiscal policies, and helps observers carefully
scrutinize the outlook for our nation’s fiscal health.

WASHINGTON —
Today, The Concord Coalition issued its preview of the President’s budget:
“The Seven Signs of Fiscal Sense: What to Look for in the President’s Fiscal
Year 2007 Budget.” The issue brief closely examines both the rhetoric and
reality of the President’s stated fiscal policies, and helps observers carefully
scrutinize the outlook for our nation’s fiscal health.

“The budget submitted this year is significant on three levels,”
stated Robert L. Bixby, Executive Director of The Concord Coalition. “This is
the first budget in which the full impact of the retirement of the Baby Boom
generation will materialize. In 2008, the leading edge of 70 million Baby
Boomers will be eligible for Social Security, and in 2011, Medicare. Second, it
is the first budget to show the cost of extending the 2001 tax cuts permanently.
Finally, it is an election year–not exactly the best atmosphere for proposing
hard choices. These factors make it all the more important to scrutinize the
budget for fiscal sense.”

The report cautions observers against complacency about our
fiscal condition.

“Statements about ‘cutting the deficit in half’ and ‘record
levels of revenues’ may sound impressive, but in reality are much less of an
accomplishment than they appear on the surface,” said Bixby.

The report also issues warnings about unrealistic assumptions,
deficit-increasing initiatives that are not offset, fiscal pressures beyond the
budget window, and watered-down or unbalanced budget enforcement proposals.

Specifically, Concord suggests the following questions be asked
about the President’s budget:

1. Does the President’s budget plan achieve actual deficit
   reduction?

2. Does the President’s budget plan build on realistic
   assumptions?

3. Does the President’s budget plan contain offsets for new
   initiatives?

4. Does the President’s budget plan achieve a path of sustainable
   deficit reduction beyond the forecast year window?

5. Does the President’s budget plan share the burden of deficit
   reduction across generations and income levels?

6. Does the President’s budget plan establish credible
   enforcement mechanisms?

7. Is the President’s budget plan politically viable over the
   long-term?

The Concord Coalition’s “The
Seven Signs of Fiscal Sense: What to Look for in the President’s Fiscal Year
2007 Budget,” can be found at

www.concordcoalition.org.

The Concord Coalition is a nonpartisan, grassroots organization
dedicated to balanced federal budgets and generationally responsible fiscal
policy. Concord’s co-chairs are former Senators Warren B. Rudman (R-NH) and Bob
Kerrey (D-NE). Former Commerce Secretary Peter G. Peterson serves as President
of The Concord Coalition.

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CONTACT:


Tristan Cohen
(703) 894-6222


communications@concordcoalition.org

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