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When economic conditions permit, states should accumulate budget reserves adequate to maintain services during recessions.

Deficit-reduction efforts should avoid cuts in programs that serve low- and moderate-income populations.

The federal government must strive for long-term fiscal balance.

Efforts to reform entitlement spending should recognize the following factors:

AARP supports exempting Social Security’s administrative costs from limitations on discretionary appropriations in the federal budget.

Higher levels of government should provide adequate resources when mandating functions to lower levels of government.

Efforts to balance the budget or address shortfalls should remain the purview of the legislative branch.

Policymakers should provide for transparency and honesty in the budget process.

Governments should avoid enacting laws that are inconsistent with U.S. Supreme Court precedent on takings.

Tax and spending decisions should be the purview of the legislative branch.