PA 581 Week 3 Legislative Approach Outline; Strengthening Fiscal Sustainability Through Targeted Reform

Legislative Approach Outline: Strengthening Fiscal Sustainability Through Targeted Reform I. Purpose and Legislative Intent • Describe the need for long-term financial sustainability in light of population changes, growing healthcare costs, and unpaid entitlement obligations. • Through sensible budgeting, highlight the objective of preserving intergenerational equity, economic stability, and public trust. II. Policy Focus Areas A. Obligatory Expense Improvement • Introduce legislation to progressively raise the eligibility age for Social Security and Medicare. • Means Testing: Apply income-based benefit reductions for high earners. • Change cost-of-living formulae to somewhat restrain benefit expansion. • Income caps and payroll tax rate changes should be recommended revenue enhancements. B. Discretionary Spending Controls • Enact a legal restriction on discretionary spending increase (1% per year for 10 years). • Demand annual efficiency plans and performance audits from federal agencies. • Include provisions for emergency funds subject to bipartisan control. III. Handling of unfunded federal liabilities • Measures for Transparency: Need public disclosure of long-term responsibilities in budget papers. • Automatic Adjustment Mechanisms: Tie benefit formulas to economic and demographic measures • Support public education campaigns that clarify trade-offs and the rationale behind reform. IV. Involvement Plan for Stakeholders • Build alliances by involving politicians of both parties, budget observers, and economists. • Negotiations in the public sector: Consult with senior advocacy groups and unions for federal employees.