WASHINGTON -- With Congress continuing its review of the President's budget and beginning work on the fiscal year 2007 budget resolution, The Concord Coalition issued an analysis of the President's fiscal year 2007 budget. The analysis is based on The Concord Coalition's "Seven Signs of Fiscal Sense" for evaluating budget plans released last December.
“Aspects of the President's budget deserve praise, particularly the inclusion of proposals to restrain the growth of entitlement spending. Overall, however, the budget falls far short of meeting The Concord Coalition's criteria of fiscal sense. Not only do the policy proposals in the budget fail to make the necessary trade-offs to achieve a more fiscally responsible path, the net effect would be to increase the deficit. And, in an ominous sign of building fiscal pressures, the deficit path turns upward in 2011 and beyond, shifting costs to future generations,” The Concord Coalition concludes in the report.
“Moreover, President Bush's budget fails to account for policies the Administration clearly and repeatedly has staked out as goals – policies that would significantly increase the short-term and long-term deficit. In addition, the budget resorts to a familiar combination of unrealistic assumptions and scorekeeping gimmicks that understate likely expenses, overstate likely revenues and hide the costs of certain initiatives. Lastly, the budget's five-year window and limited goal of cutting the 2004 deficit in half by 2009 serve to divert attention from the fact that current policy is unsustainable over the long-term.”
The Concord Coalition is a nonpartisan, grass roots organization dedicated to balanced federal budgets and generationally responsible fiscal policy. Former U.S. Senators Warren Rudman (R-NH) and Bob Kerrey (D-NE) serve as Concord's co-chairs and former Secretary of Commerce Peter Peterson serves as president.