1. Explanation of PAYGO
PAYGO
Tax cuts or entitlement and Created discretionary
other mandatory spending spending caps on mandatory
increases must be paid for by a spending
tax increase or a cut in
mandatory spending
2. History of PAYGO
Omnibus Budget Reconciliation Act of 1990
1 .Passed Through Democrat Controlled Congress and House of Representatives
2. Republican President George H. Bush Signs the Bill After Negotiations
Budget Enforcement Act of 1990
1. Amends the Balanced Budget and Emergency Deficit Control Act of 1985
2. Created PAYGO
Omnibus Budget Reconciliation Act of 1993
1. Extended Budget Enforcement Act of 1990
Balanced Budget Act of 1997
1. Extended Budget Enforcement Act of 1990
2. Expired in 2002
Statutory Pay-As-You-Go Act of 2010
1. Reinstated pay-as-you-go budgeting rules used in Congress from 1990 until 2002
4. Financial Impact of PAYGO
• George H. Bush Administration
o 1990- PAYGO signed into law 1990
-The budget deficit was $221.2 billion
o 1992- The budget deficit increased to $290.4 billion(Last year in
office)
• Clinton Administration
o 1993- The budget deficit was $255.1 billion(First year in
office & Financial Plan Determined by Previous President
and Congress)
o 1997- The budget deficit was reduced to $22 billion
o 1998- The budget surplus was $69.2 billion and was the first
budget surplus since 1969
o 2000- The budget surplus was $236.4 billion(Last year in office)
5. Financial Impact of PAYGO
• George W. Bush
o 2001 -The budget surplus was $127.3 billion(First year in
office & Financial Plan Determined by Previous President
and Congress)
o 2002- The budget deficit was $157.8 billion and PAYGO was
not resigned into law
o 2008- The budget deficit was $455 billion(Last year in office)
•Barak Obama
o 2009- The budget deficit was $1416 billion(First year in
office & Financial Plan Determined by Previous President and
Congress)
o 2010- The Statutory Pay-As-You-Go Act of 2010 signed
into law
- The budget deficit was $1312.37 billion
o 2011- The budget deficit was $1299 billion
