Vote Alert
“YES” on H.R. 3581, the Budget and Accounting Transparency Act.
February 7, 2012
NTU urges all Representatives to vote
“YES” on H.R. 3581, the Budget and Accounting Transparency Act. Introduced by
Rep. Garrett (R-NJ), this thoughtful bill is designed to better account for the
true costs of federal credit programs and incorporate the full impact of market
risk, especially in relation to Fannie Mae and Freddie Mac.
NTU
has argued since the Savings and Loan debacle of the 1980s that “off-budget”
activities, loan guarantees, and quasi-government functions can have a
tremendous impact on federal finances. The most recent housing crisis, in which
Fannie Mae and Freddie Mac have received taxpayer bailouts in excess of $140
billion, is a further testament to that fact. Given the enormous costs, the Congressional
Budget Office has stated its opinion that the mortgage giants’ operations
should be included in the federal budget. Despite advocating some reforms the
Obama Administration has yet to implement such an idea, in large part because
it would more accurately portray the size of the deficit. Nevertheless, H.R.
3581 is needed to provide taxpayers with a full picture of the bailout and
subsidy costs of Fannie and Freddie, while giving lawmakers a more urgent
incentive to reform the programs.
The
legislation would also bring other taxpayer commitments out of the shadows to
shine more light on the true state of Washington’s balance sheet. Unlike
private lenders, the federal government’s current accounting system fails to
adequately capture the administrative costs and the risks of borrowers
defaulting on their obligations. H.R. 3581 would introduce a “fair-value”
accounting method that would pull back the curtain on federal loan programs (exemplified
by the “green energy” loan guarantees like Solyndra) and provide a more
comprehensive measure of their cost to taxpayers.
Roll call votes on
H.R. 3581 will be significantly weighted in our annual Rating of
Congress and a “YES” vote will be considered the pro-taxpayer position.
If you have any questions, please contact NTU Federal Government Affairs Manager Brandon Greife at
(703) 683-5700
