U.S. Rep. Neil Abercrombie, D-Hawaii, supported passage in the U.S. House today of legislation requiring that any measure that expands entitlement spending or cuts government revenue must be offset by budget cuts elsewhere so it is “budget neutral.”

“Democrats put a Pay-As-You-Go (PAYGO) law into effect in the 1990s and it helped turn huge budget deficits into budget surpluses during the Clinton years, and produced an economic boom,” Abercrombie said. “Unfortunately, the Republican-led Congresses allowed PAYGO to lapse in 2002, and the country went from a $5.6 trillion budget surplus to $4.6 trillion in deficits.”

The bill passed by the House today requires the Office of Management and Budget to maintain a PAYGO ledger, which would include estimates for a program’s cost each year for 10 years. If the actual cost ever exceeds the original estimate, an offsetting budget cut would be required by law.