–Panel’s Co-Chairs Say All Fiscal Options Must Be on the Table
–Ex-Sen. Simpson: Economic Problems May Build Support For Budget Fix
–Ex-White House’s Bowles: Options, Possible Solutions Are Clear

By John Shaw

WASHINGTON (MNI) – The co-chairmen of the National Commission on
Fiscal Responsibility and Reform, former Sen. Alan Simpson and former
White House chief of staff Erskine Bowles, said Wednesday their panel
will work to develop a bipartisan consensus on the precise nature of the
nation’s fiscal problems and the range of solutions that could be
implemented to fix these problems.

Speaking at a budget conference hosted by the Peterson Foundation,
Simpson and Bowles said they believe their commission must educate the
American people on the U.S.’s fiscal woes while building support for
solutions within their panel.

“The American people know something is very, very wrong,” Simpson
said, adding that a critical goal of his panel is to “educate the
American public”.

He said the recent economic crisis may allow for consideration of
budget reforms that were politically unacceptable when earlier budget
commissions were convened such as the 1994 Kerrey-Danforth panel which
he served on.

“Everything is on the table,” Simpson said.

Bowles said the 18-member panel will use a “real set of numbers” by
the Congressional Budget Office and the actuaries of the Social Security
and Medicare programs.

Once the scope of the problem is clearly identified, Bowles said,
the commission will try to outline a range of options and then coalesce
around a package of recommendations.

“If we don’t change and make big changes, we’re heading for
disaster,” Bowles said.

“The options are clear. The solutions are relatively easy to see,”
Bowles added.

The National Commission on Fiscal Responsibility and Reform
includes the chairmen and ranking members of the Senate and House Budget
committees, the chairman of the Senate Finance Committee, and a former
White House budget director and vice chairman of the Federal Reserve
Board.

The panel includes some of the fiercest partisans of recent budget
battles, including five congressional Republicans who appear to believe
that tax increases should be off the table for fixing the U.S.’s fiscal
challenges and several Democrats who say that all key social programs
should be kept off limits.

President Obama created the commission on Feb. 18 by executive
order after an attempt by lawmakers to create a panel by statute failed
in the Senate.

The commission is charged to issue a report by Dec. 1 that would
cut the deficit to about 3% of gross domestic product by fiscal year
2015 and begin slowing the growth of debt over the long term.

In order for the panel to issue recommendations, 14 of the 18
members need to reach an agreement.

Analysts say it will be very difficult for this panel to reach an
agreement, but some hope the debate generates ideas that could be useful
in future budget deliberations.

In addition to the Bowles-Simpson commission, there are other
efforts underway to outline steps to shore up the nation’s weak fiscal
position.

The Pew-Peterson Commission on Budget Reform began working in
January, 2009 and will continue to deliberate until December, 2010. The
panel of budget experts is trying to outline a bipartisan package of
fiscal changes to tackle massive budget deficits.

The Bipartisan Policy Center has created a fiscal task force that
will be chaired by former Senate Budget Committee Chairman Pete Domenici
and former White House director Alice Rivlin.

The Peterson Foundation is hosting a day-long fiscal summit on
Wednesday and will hear from former President Bill Clinton, former
Federal Reserve Board Chairmen Paul Volker and Alan Greenspan, former
Treasury Secretary Bob Rubin and White House budget director Peter
Orszag.

** Market News International Washington Bureau: 202-371-2121 **

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