Posted on July 7, 2006

WASHINGTON, D.C. – U.S. Sen. Lamar Alexander (R-TN), a member of the Senate Budget Committee, made the following statement today regarding the Department of Labor’s June employment report, which shows that the U.S. economy grew for a 34th consecutive month in June, with 121,000 net new jobs created: “The U.S. economy is continuing to grow and provide Americans with good jobs. Since August 2003, nearly 5.4 million new jobs have been created in this country and the nation’s unemployment rate is 4.6 percent - lower than the averages of the last four decades. More Americans are working today than ever before, and they have more opportunities for better jobs. “Congress can keep our economy strong by keeping taxes low and controlling the growth of federal spending. One way to do that is to pass the Stop Overspending Act of 2006, legislation that restores fiscal discipline and restrains wasteful government spending.” The Stop Overspending Act, approved June 20th by the Senate Budget Committee, features provisions to rein in spending and reduce the deficit, including: • Gives the President the line-item veto; • Establishes a two-year budget cycle with the first year devoted to adopting a two-year budget and the second year devoted to oversight; • Creates a commission to evaluate federal programs and report to Congress which programs should be realigned or eliminated; • Creates an automatic deficit reduction mechanism to balance the budget by 2012 by setting budget caps and automatically slowing the rate of growth of mandatory spending if Congress fails to meet deficit reduction targets, and; • Caps discretionary spending each year.