I would like to thank the Chairman and Ranking Member for conducting this hearing. Ambassador Portman, I want to thank you for your service to our country, and I want to thank your family for sharing you with the nation. During this time of severe budgetary constraint, I know that the job to which you have been nominated will not be an easy one, and I look forward to working with you in a bipartisan manner.

As you stated in response to pre-hearing questions posed by our Committee, as Director of the Office of Management and Budget, you will seek to ensure that the nation's resources are properly aligned with its challenges and priorities. I hope this is so, Mr. Ambassador, because many of us are deeply disturbed over the direction our country has taken and continues to follow under current fiscal policies.

Our country has only been out of debt for two years in its long history - in 1834 and 1835. Before and after those notable years - more than one hundred and seventy years ago - the main cause of debt accumulation was war expenditures, which is similar to what we are facing today with US operations in Iraq and Afghanistan.

I firmly believe we must continue to support our brave men and women in the Armed Forces and help them to complete their missions. However, the federal dollar is also being stretched to meet the needs of those whose lives were disrupted by Hurricanes Katrina and Rita, and to continue the active stance on the Global War on Terror.

The government has tried to absorb all of these costs, but we're facing a declining pot of resources. Since January 2001, according to the Center on Budget and Policy Priorities' calculations of Congressional Budget Office data, in terms of projected costs from 2002 to 2011, a third of the cost of legislation adding to deficits relates to defense, homeland security, and international matters. But fifty percent are tax cuts, which is why I voted against last week's tax reconciliation conference report that included an astonishing

$70 billion in tax cuts.

It is wrong to lay this heavy cost on current and future taxpayers. As you know, our country has been running deficits near or topping $300 billion, and in March, the federal debt limit was raised to a record $9 trillion.

As noted by Senator Kent Conrad, Budget Committee Ranking Member, the national debt in just the first five years of the Bush Administration has increased by $3 trillion. Quite simply - this country is outspending what is being brought in as revenue - and our children, grandchildren, and generations beyond will be left to pay the bill.

Although I agree with you that we must align the country's resources to meet its challenges and priorities, I just don't see that happening under current fiscal policies. Ambassador Portman, I look forward to hearing your views on how we can turn around the budgetary crisis we're in now so we're not mortgaging future generations of Americans.

Thank you.