State Financial Officers Urge Action on National Debt
EXCLUSIVE: A coalition of more than three dozen state financial officers is taking a united stand to address what they describe as a looming crisis: the national debt. These treasurers, controllers, and auditors are reaching out to House Speaker Mike Johnson to express their “grave concerns” regarding the ever-growing burden of the national debt.
Collective Call for Action
The group intends to formally communicate with Speaker Johnson, a Republican from Louisiana, echoing support for a resolution put forth by Arizona Republican Andy Biggs, which declares the national debt a “threat to national security.” This proclamation reflects a growing consensus among state finance leaders about the implications of the national debt on both state and national levels.
In their forthcoming letter, the state officials emphasize: “We have grave concerns about the national debt. We concur with legislation from Sen. Mike Braun, R-Ind., and Biggs, R-Ariz., which seeks to address these issues.”
They further express a profound worry regarding the nation’s standing as a “beacon of freedom and opportunity for the world,” urging for immediate measures to safeguard the economic integrity of the United States.
The Scale of the Debt Crisis
As of November 14, 2023, the national debt stood at a staggering ,965,533,024,604.05, according to the Treasury Department. This marks an increase of approximately .2 billion in just one day.
Historically, the debt has been regarded as an element of finance essential to maintaining national credibility. In a letter penned in 1790, the first U.S. Treasury Secretary Alexander Hamilton framed the debt as “the price of liberty,” emphasizing the importance of public credit to maintain trust in the nation’s financial standing.
However, the last time the federal budget was balanced was between 1998 and 2001 during the administrations of Bill Clinton and George W. Bush. The pressing question remains: How can the nation return to fiscal responsibility?
Simplifying Budget Balancing and Spending Cuts
The coalition of state financial officers has united in their agreement that balancing the budget and reducing overall spending are critical actions that could avert a fiscal crisis. In their communication to Speaker Johnson, they note: “That is why we have come together to support you in making these critical decisions.”
Particularly alarming is the projected cost of servicing the national debt in 2024, which is expected to exceed trillion. This figure not only surpasses annual Medicare payouts but poses a significant threat to America’s financial stability.
“If this trend continues, the dollar could be at risk of losing its status as the world’s reserve currency. Such a scenario would endanger the United States’ position as a global leader,” the state officials warned. They emphasize that decisive action is needed from day one of a new congressional session or presidential term.
Proposed Solutions and Strategic Initiatives
The letter from state financial officers suggests that with the right leadership, it is possible to establish a “National Financial Restoration Plan” by July 4, 2026—coinciding with the 250th anniversary of the United States.
One strategy highlighted by the officials includes reducing regulatory burdens, thereby facilitating access to “vast national resources” to stimulate economic growth. Adam Crum, Alaska’s chief financial officer, underscores the potential role of state resources in alleviating the national debt. He stated that under Governor Mike Dunleavy’s leadership, Alaska remains open to collaborating with any administration that seeks to leverage the state’s oil and gas reserves.
In contrast, Crum noted that the current Biden administration appears to be “searching for oil anywhere except at home,” calling for a more strategic and domestic resource-driven approach.
Recognizing Fiscal Responsibility at the State Level
Other financial officers joining this call to action have made headlines with their own commitments to fiscal prudence. Pennsylvania Treasurer Stacy Garrity recently announced a significant addition to the state’s “Rainy Day Fund,” highlighting the importance of financial reserves. Garrity, who took office in 2021, identified the state’s reserve fund as one of the “worst” nationally and commended both the Republican legislature and Democratic Governor Josh Shapiro for their support.
Iowa Treasurer Roby Smith has voiced similar sentiments, advocating for Congress to adopt fiscal practices akin to those of Iowa, which emphasize a balanced budget and prudent spending. “Congress should look to Iowa as an example of the benefits of keeping a balanced budget and limiting spending,” Smith asserted.
Indiana Comptroller Elise Nieshalla echoed these concerns, adding, “Our hard-won independence depends on it.” Arizona State Treasurer Kimberly Yee encapsulated the sentiment by urging Washington to adopt the mantra, “Don’t spend more than you make.”
