But with the yearly interest payments on the national debt now the fastest-growing line item in the federal budget, having now surpassed annual military budget and Medicare expenditures, the need is urgent to deal with this consuming problem roaring down the tracks.
Now is the time to discuss, evaluate, identify and implement fiscal solutions to uphold the principles our Founding Fathers championed: accountability, restraint and a duty to preserve freedom and opportunity for future generations — principles that severe indebtedness undermines.
State governments, long accustomed to balancing budgets and managing reserves, have a responsibility to elevate the conversation around restoring our national solvency. As Indiana’s state comptroller, I can attest that our state’s own fiscal journey offers inspiration that financial reform is possible.
Just over 20 years ago, Indiana faced a cash-flow crisis so severe that our schools were taking out bridge loans to cover basic expenses. At one point, Indiana closed its books with just 6 cents in reserve, and that was only possible due to delaying payments. That experience spurred a commitment to structural reform from Indiana’s leadership.
Through disciplined budgeting, debt repayment, spending cuts and targeted tax relief, Indiana reversed course. We also pursued innovative strategies such as leasing a toll road and creating a Government Efficiency Division to streamline government and cut costs. Today, we stand as the fourth-lowest debt-per-capita state, with a AAA credit rating, healthy reserves, a balanced budget and well-funded pensions.
These outcomes were the result of tough, deliberate policy choices and active budget management sustained over time and grounded in the understanding that fiscal responsibility is fundamental to the perpetuation of a free and financially prosperous state.
At the federal level, similar choices must be made. While the scale is exceedingly larger, the principles are the same: balance the budget and manage debt responsibly. Many states are modeling this discipline, not only through their own budgets but by joining together to advocate for national budget management reform and debt reduction.
To that end I’ve joined forces with state financial officers from across the country in forming the National Debt Crisis Task Force, as part of the State Financial Officers Foundation, to raise awareness on the severity of our national debt and the malpractice of deficit spending. Our mission is to provide President Donald Trump and Congress with a groundswell of support from the states to balance the budget and implement a debt reduction plan.
Indiana lawmakers are further championing this effort with the overwhelming and bipartisan passage ofSenate Resolution 51, which declares that the federal debt is a national security threat. This resolution has since become a model resolution for the American Legislative Exchange Council, with expected passage in state legislatures across the nation. SR 51 was modeled after the unanimously approved U.S. Senate Resolution 600, introduced by Indiana Gov. Mike Braun when he was serving in the Senate last year. It sent a message loud and clear that fiscal responsibility is not a partisan issue — it’s a foundational one.
The path forward will require much more than technical fixes and continuing resolutions, however. It will demand country-saving courage, foresight and a willingness to restructure critical programs to ensure for the long-term that they are viable for the most vulnerable.
Only once before — after World War II — has the ratio of debt to gross domestic product been as high as it is now, at over 120 percent. Back then, we had the defeat of tyranny to show for it, followed by a period of financial growth and recovery. Now, with only the pandemic far in the rearview mirror, we face a mountain of debt that threatens our fiscal stability, and we need a dedicated time of recovery.
Restoring America’s financial solvency is urgent — for the sake of the states and the country. Let’s meet that need with the same “Rosie the Riveter” resolve we had in the Second World War and say to overcoming the massive threat of national debt: “We can do it!”
Elise Nieshalla, a Republican, is the state comptroller of Indiana. Previously, she served as president of the Boone County Council and president of the Indiana County Councils Association.
Governing’s opinion columns reflect the views of their authors and not necessarily those of Governing’s editors or management.
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