By AARON SMITH
Guest Columnist
Our country is careening toward a debt disaster of epic proportions, and Washington just stomped on the gas pedal.
The latest report from the Congressional Budget Office projected that this year’s federal deficit will be $400 billion higher than estimated in February, a staggering 27 percent increase. It’s set to contribute to an already-rising national debt, soaring from 99 percent of GDP at the end of 2024 to an unprecedented 122 percent of GDP by 2034.
While the report points to military aid, student loan forgiveness, and social programs as the reason behind the higher deficits, the blame lies with the leaders at both ends of Pennsylvania Avenue who overspend without a credible plan to rein it in. This cavalier attitude threatens economic calamity, a future of persistent inflation, higher interest rates, and decline of the U.S. dollar as the world’s reserve currency.
What’s worse is that the millennial generation, to which I belong, will be left holding the bag.
It’s a stark contrast to the disciplined approach that local leaders across the country take. I serve on the city council in Noblesville – a growing city of just over 75,000 people. Together, our council works with the mayor to carefully construct a budget every year that strategically invests and safeguards the city’s long-term financial stability.
Last year’s budget made record infrastructure investments, funded key capital projects, and gave well-deserved raises to public safety personnel – all while maintaining our tax rate and saving 15 percent of annual revenue, exceeding the state’s recommended 12 percent reserve level.
Like a business, we’ve reduced the other side of the balance sheet too. Since public safety accounts for more than 50 percent of our annual budget, we’ve taken proactive steps to address the financial burden that repetitive and non-emergency calls have on the 911 system – and it’s been successful. In fact, during this past legislative session, we shared the blueprint with the Indiana General Assembly so other communities can replicate our plan and see the same benefits.
While needs always outpace resources, our budgeting process is transparent and demands clear accountability. Should the federal government continue its unsustainable binge of tax-and-spend policies, it will serve as a distraction to real issues we all recognize as important to tackle like rising healthcare costs, aging infrastructure, and the challenges that come with artificial intelligence.
We should demand better from our elected leaders and hold them to account so our country can accomplish real challenges, rather than litigate the issue of the day.
Aaron Smith lives in Old Town and represents District 3 on the Noblesville Common Council. You can read and subscribe to his monthly newsletter at noblesville.substack.com.