September 1, 2014

Posts on federal budget

Subscribe to this feed Subscribe to this feed

 

Monday, July 26, 2010 - 10:14 AM

Below are several developments we have been following since the last edition of the Washington Budget Report (sign up here) was published.

COMMITTEES REPORT ADDITIONAL FY 2011 APPROPRIATIONS BILLS:  Last week the House Appropriations Committee continued to make progress on the FY 2011 bills.  The full committee reported the Military Construction-Veterans Affairs bill as well as the Transportation- Housing and Urban Development bill.  Both bills are expected...

Monday, July 19, 2010 - 3:51 PM

Last week President Obama nominated Jacob “Jack” Lew to be the new head of the Office of Management and Budget (OMB), replacing Peter Orszag, who is stepping down at the end of July. OMB is primarily responsible for developing the President’s budget.

If confirmed by the Senate, as expected, Lew will become OMB director for the second time. He served as President Clinton’s director from 1998 through the end of the Clinton administration in 2001.

While Lew is familiar with the job, the budget picture has changed considerably. Lew was OMB director during the only four years of budget surpluses since the late 1960’s. He was also a key negotiator on the bipartisan balanced budget agreement in 1997. Now the budget environment is even more partisan and the country is experiencing the largest deficits since the end of World War II.

The change in OMB leadership provides an opportunity to review the changes that have taken place since Lew’s last stint as budget director and also gives us another chance to review the major decisions looming for the federal budget.

The final budget presented by Lew for the Clinton administration in February of 2000 (FY 2001)...

Monday, July 19, 2010 - 10:34 AM

Below are several developments we have been following since the last edition of the Washington Budget Report (sign up here) was published. 

2011 APPROPRIATIONS PROCESS MOVES FORWARD AS TIME STANDS STILL FOR THE 2010 SUPPLEMENTAL: Last week the House Appropriations Committee continued to make progress on the FY 2011 bills. House subcommittees reported the Military Construction and Veterans Affairs; Energy and Water; and...

Monday, July 12, 2010 - 10:22 AM

As Congress returns from its July 4th recess, below are some of the budget stories we have been following since the last edition of the Washington Budget Report (sign up here) was published. 

  • Before the recess, the House of Representatives passed a deeming resolution by a vote of 215-210. (For background material on deeming resolutions, a Congressional Research Service report can be found here and a Concord Coalition blog entry can be found here).  The deeming resolution was included as part of the...
Wednesday, June 30, 2010 - 3:46 PM

Imagine if Congress held a vote in the next few months on a bill that cut nearly $3.7 trillion in income taxes, added $350 billion worth of loopholes and deductions to the tax code, and increased Medicare spending by $236 billion.

There might be quite an uproar. After all, we are experiencing the largest deficits in history with increasing awareness of our clearly unsustainable long-term outlook.

Yet, this bill is effectively being passed by Congress, sometimes in decisions made on a month-to-month basis and sometimes annually, through multiple bills that contain Medicare doctor payment "fixes," extenders, Alternative Minimum Tax (AMT) patches, and through the big upcoming push to extend some or all of the Bush tax cuts. Members from both parties have voted time and again over the last 10 years for this bill.

Today's release of the Congessional Budget Office (CBO) long-term outlook highlights the deleterious effect of these decisions on the budget outlook both over the short term and the long term. In it, CBO constructs a baseline of where current law would take us and a baseline of...

Thursday, June 24, 2010 - 10:00 AM

A Washington Post editorial today sums up a bunch of different strands of thinking about the federal budget that Concord has been writing about and talking about a lot recently. One is that the country can "walk and chew gum" at the same time when it comes to short-term actions to help the economy that may involve increased deficits and long-term planning to confront the nation's real fiscal challenges. Another is that the current debate in Congress over the cost of tax-extenders is failing to focus on their merits while the overall fiscal challenge continues to go unexamined. A third is that we generally do know what actions need to be taken to reform federal programs over the long run -- but that members of Congress lack the political courage to act, and hopefully the President's fiscal commission can begin to...

Monday, June 21, 2010 - 10:43 AM

Last month I participated in a conference of mostly military officials and national security experts at the Naval War College in Newport, RI. The conference title was “Economics and Security: Resourcing National Priorities.” 

Since then the debates over economic stimulus versus deficit reduction got pretty hot and heavy, and a funny thing happened. I began to recognize quite a few parallels between the other fiscal policy issues I always write about, and this particular angle that I really have never written about: the role of defense and national security spending in achieving fiscal sustainability.

First, I think most Americans (regardless of what they think of our wars and military activity more generally) assume that cuts in the national security budget would weaken our defense capabilities -- that a trade-off exists between deficit reduction and a strong defense. But what surprised me the most at the Naval War College conference was learning that most of the national security officials and experts there, who all advocate for a strong defense, believed that if the defense budget were tightened, the quality of defense spending would actually improve

All seemed to recognize that given...

Monday, June 14, 2010 - 4:05 PM

If the Obama administration follows through on its newly announced effort to identify and weed out unproductive federal programs, it could build public confidence and support for more sweeping fiscal reforms in the future.

The White House has asked federal agencies to submit lists of the programs that are “least critical” to their missions.  These programs should total at least 5 percent of  each agency’s budget, according to a memo issued by Rahm Emanuel, the President’s chief of staff, and Peter Orszag, the White House budget director.

It would be easy to dismiss the administration’s announcement of this effort as simply a public relations exercise.  But two points are worth noting:

  • Administration officials say they are considering not just paring back many programs but eliminating them entirely. This would be consistent with the concerns they have expressed in the past over redundant programs. If one program will do the job, we don’t need two – or two dozen.
  • The President wants Congress to pass legislation that would create a...
Monday, June 7, 2010 - 4:45 PM

How large is the federal debt? That's something of a trick question in economic circles, and some analysts believe it may have already tripped up the President's fiscal commission.

Some commission members think the panel, charged with recommending solutions to the nation’s fiscal problems, should focus on the total federal debt. That figure, which just hit $13 trillion, is most familiar to the general public because it is widely cited by the news media and politicians.

Many budget experts and economists, however, say the real number to watch is “publicly held debt,” meaning what the government owes to investors. This figure, now approaching $8.6 trillion, does not include money that the government owes to various trust funds, notably for Social Security.

Beyond this issue is the question of how much more debt the government can safely take on. Fiscal commission members tussled over that at their second full meeting late last month on Capitol Hill, with some arguing that the economy was still too weak for the government to start focusing on deficit reduction.

“It’s very important that we don’t in our zeal focus on deficit reduction right now,” said Rep. Jan Schakowsky, an Illinois Democrat.

Regardless of which figure the commission focuses on, federal debt is...

Thursday, June 3, 2010 - 4:35 PM

Below are a few budget items we have been following, since the last edition of the Washington Budget Report (sign up here) was published.

  • Last week, the House Appropriations Committee postponed its mark-up of the FY 2010 war supplemental.  The committee's chairman, David Obey, released a proposal including $84 billion in supplemental funding.  In addition to funding the President's request for war funding, the proposal would...