-- Introduced by Rep. Woodall (R-GA), H.R. 3578, the Baseline Reform Act, would reform the way that the Congressional Budget Office (CBO) calculates the baseline spending assumptions that are the basis for all of its projections of future spending. The legislation would remove the assumption from CBO calculations that spending will increase each year in proportion to inflation, which makes Congress’ new spending each year look like less than it is. The Baseline Reform Act would make the federal budget process more honest and transparent. 

--In February 2012, the House approved H.R. 3578, the Baseline Reform Act, by a 235-177 vote. The vote was largely along party lines; every voting Republican supported it, along with just four Democrats. Now we must persuade the Senate to pass the bill and send it to the President.

--The American people are tired of the accounting gimmicks in the budgetary process. The current process starts by assuming a spending baseline of prior year spending plus inflation. This enables Congress to cut into the inflation adjustment and call it a “spending cut” even though actual discretionary spending levels will rise. Washington can spend $500 billion this year and $550 billion next year and call that a “spending cut” by using manipulative budgetary tricks. These dishonest tactics disguise the true cost of government programs. 

--The Baseline Reform Act would amend Budget Act to eliminate the automatic inflation adjustment in the CBO’s annual baseline. Proposed budgets would then be compared to prior year spending levels. This would make spending increases and decreases more transparent to the American people. The Baseline Reform Act would help to put an end to budgetary gimmicks to give the American public a more honest look at how much Congress spends annually. 

Click here to see FreedomWorks' key vote notice on the Baseline Reform Act.