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Home :  Federal Budget & Tax : 
Federal Budget & Tax:      News     Blog     Background    



Friday, December 21, 2007

2007 Budget Endgame: A Re-Capitulation
The Devils in the Details

Now that Congress has completed its work on the budget for 2007, we can take a critical backward glance at the process and where it ended up. Althought there are silver linings, as noted in 2007 Budget Endgame: Recapitulating the "Capitulations", in the main, it's not a pretty picture.

I'm not talking about the 1,400 pages in the budget bill or the roughly 10,000 earmarks in them that it is subject of endless (often misdirected) attention. Truth told, this year's earmarks -- all those devils in the details -- are 25 percent less costly than last time around. Nor about the incidental though regretable violation of the PAYGO principles, a violation that congressional leaders would do well to repair early in 2008 before they are rightly accused of abandoning fiscal responsibility for good.

For President Bush can take care of all of that all on his own very well, thank you very much -- as today's Washington Post informs us.

I'm talking about feigning and fecklessness on budget policy and process demonstrated this year by our elected leaders in Washington. If we look back at the final budget picture for 2007, this may be what we are left with:

When the 2007 budget battle is recalled, no doubt people will remember the Democrats' fruitless negotiations with themselves, the President's veto madness and late-term discovery of fiscal frugality, and the two parties hurtling year-end on a breakneck course toward government shutdown. They will recollect the Big Blink, as leaders Reid and Pelosi seemed to cave in a series of capitulations, accepting final budget numbers that looked as if they had taken dictation from Bush. But maybe they will also read the fine print and see all those Democratic devils in the details.


Posted by Dana Chasin, 03:13:54 PM



Wednesday, December 19, 2007

Requiem for a Budget Resolution

The high-water mark of the budget-making process in 2007 may have been Congress' adoption of a budget resolution, a worthy accomplishment rarely achieved in recent years, but hardly a substitute for regular order enactment of appropriations bills pursuant to it.

Why was Congress unable to build on its budget resolution this year, why was it left to whither on the vine? Stan Collander, in A Review Of 2007 offers a cogent explanation:

A budget resolution is a unique kind of legislation; it can't be filibustered in the Senate and doesn't have to be signed by the president, so it is not subject to a veto. As a result, only a simple majority was needed to put the budget resolution in place... Every other budget-related bill needed more than 60 votes in the Senate to overcome a seemingly inevitable filibuster. With congressional Republicans determined not to allow anything to happen that could be considered an accomplishment, gathering the necessary votes became impossible.

Blame cannot be affixed solely on Congress. While leadership was lacking there, the booby prize for fiscal irresonpsibility must be conferred upon the President, expositor-in-chief of the deficits-don't-matter theory. Again, Stan:

The Bush White House continued its policy of talking as little as possible about fiscal policy, the deficit and the national debt, and congressional Democrats had no consistent spokesperson on the budget. As a result, the issue was so in the background in 2007 that there was virtually no mention of the $50 billion to $60 billion increase in the deficit that will occur if there is no PAYGO offset to the one-year alternative minimum tax fix.

The president insisted the AMT fix should not be offset, but never mentioned that the deficit, federal borrowing and annual interest payments would all be higher if his position prevailed. Congress failed to point out the fiscal irresponsibility of the president's position, possibly because lawmakers realized that, without the votes to override a veto, they would likely have to approve the AMT fix without an offset as well.

And in so doing, Congress became a willing co-conspirator in the violation of its own resolution, its one crowning achievement in budget policy this year.



Posted by Dana Chasin, 04:54:38 PM



Tuesday, December 18, 2007

Omnibuster: Forget about Topline Spending Cap
Dems Boost Funding Levels, Redirect Money with Impunity

Bush appears to have won the Battle of the Topline, with the House approving an omnibus package (summary; text) accepting President Bush's insistence on the $933 billion cap on total discretionary spending in FY 2008 he requested back in February. On top of that, he will get a $70 billion downpayment on his $200 billion "emergency" spending supplemental request.

So he's not sweating the small stuff. Even though the small stuff adds about $11 billion ($7.5 billion in emergency funding for border security and other initiatives and $3.7 billion in contingent emergency funding for veterans) in off-budget spending -- roughly splitting the difference between his $933 billion budget and the $956 billion provided in Congress' Budget Resolution.

On top of that, we've heard nary a peep out of the White House about reordered on-budget spending in the House-passed omnibus that pulls billions out of Bush priorities and redirects them to Democratic priority programs. The chart below (hat tip: Craig Jennings) identifies the re-arrangement of some of the bigger deck chairs provided for in the House-passed omnibus.

President's Budget Request and House FY 2008 Omnibus Spending Levels
(millions of dollars)
ProgramPresident's RequestOmnibus LevelDifference
Labor-HHS-Education
140,900
144,800
+3,900
Medical research into diseases including Alzheimer's, cancer, Parkinson's disease and diabetes
+613
Rural Health Programs
+147
Centers for Disease Control and Prevention
+393
Low-Income Home Energy Assistance (LIHEAP)
+788
Community Services Block Grant
0
654
+654
Head Start
+114
Pell Grants
+801
Reading First
1,019
393
-626
Homeland Security34,20035,100+900
First Responder Grant Programs
3,400
4,100
+700
Agriculture
17,800
19,200
+1,400
Commodity Supplemental Food Program
0
140
+140
State-Foreign Ops
34,900
32,800
-2,100
Millennium Challenge Corporation
3,000
1,500
-1,500
Transportation-HUD48,00048,900+900
Highway Infrastructure & Bridges
+631
Community Development Block Grants
+566
Energy-Water30,50031,500+1,000
Renewable energy and energy efficiency programs
+486
Strategic Petroleum Reserve
329
187
-142
Global Nuclear Energy Partnership
395
179
-216
International Thermonuclear Experimental Reactor
121
0
-121
List is not comprehensive. Indented lines are constituent parts of non-indented line items.

Sources:



Posted by Dana Chasin, 12:25:49 PM



Thursday, December 13, 2007

USASpending.gov Launched!

OMB has launched their website that will comply with the 2006 Coburn-Obama Federal Funding, Accountability, and Transparency Act (Transparency Act) today. You can visit it at www.usaspending.gov. OMB really needs to be commended for this site, for launching it two weeks before required under the legislation, and for their commitment to transparency.

For those of you who haven't been to the BudgetBlog before or have, but are still sleepy this morning, you might not notice that the government's website looks an awful lot like FedSpending.org, the site we launched in October, 2006. Well, that's because it basically is FedSpending.org, with a few design changes. As the Washington Post reported this morning, OMB Watch licensed FedSpending.org to OMB for use in compliance with the law (btw, the article is a great insight into the collaboration we've had with OMB over the past year). We will continue to operate FedSpending.org and add more advanced features that make the site easier to use and the data easier to understand. And we hope with a solid foundation, OMB will be able to make timely and eventually more accurate data available to the public through USASpending.gov.

Currently, there are difference between the sites. For instance, OMB will have more timely data as they plan to update the site every two weeks with new data (we currently update data twice a year). In addition, the government site does not have features and upgrades added to FedSpending.org in our last version release, including a mapping feature on all searches, creation of a streamlined and powerful SuperSearch for all advanced searching needs, and increased flexibility in getting data more quickly through expandable summary views.

I have been continually surprised and proud of the success of our endevor to make Federal spending information more available and understandable to the public through FedSpending.org. For it to now be the model for the government's efforts to do the same is feels even better.





Posted by Adam Hughes, 10:16:37 AM



Wednesday, December 12, 2007

Cirque du Senate, Take II
Master of the Minority Mitch McConnell's Immodest Turn

In a beautiful, if perhaps unintended, exposition of the hypocrasy of the McConnell legislative obstruction program in the Senate, a New York Times "Congressional Memo: "Muscle Flexing in Senate: G.O.P. Defends Strategy," quotes the Senate Majority Leader today as follows:

I think we are being consistent here against higher taxes, consistently against greater regulation, consistently against creating new causes of action in bill after bill after bill. It's a positive message of our vision of America.

It is a reiteration of last week's Times article, All the Makings of a Carnival, Except the Fun that we highlighted in Cirque du Senate.

So, how well is the McConnell program working? "We have a pretty good sense that the public has figured out they are not too happy with this new Congress." That is, very well indeed. Positively.



Posted by Dana Chasin, 11:20:00 AM



Tuesday, December 11, 2007

The Sound of One Party Negotiating, Part II
Sound and Fury, Signifying Nothing

Another budget deal was scuttled with nine legislative days left in the year when the White House issued a veto threat over the weekend on the "split the difference" approach. It's plus ca change all over again. The only sound you hear, once again, is House Appropriations Chair David Obey, sick and tired of negotating with himself:

"In my view, it's time to fish or cut bait. I'm tired of debating table scraps, and it's clear to me that the White House does not intend to compromise; they intend to sit back like Buddha and keep expecting us to compromise with ourselves. I'm done with navel-gazing. I'm not going to sit here and enable them to chisel domestic money down, down, down, down, so you wind up getting $5 billion bucks in return for $50 [billion] or $90 [billion] or whatever the hell it is they want for the war.

Obey's new "strategy" is to agree to every last spending level requested by President Bush back in February. Oh, minus any earmarks. That really hurts.

Democrats have vowed that if they must cut back on their spending plans, they will attempt to make the GOP pay a political price. "Actions have consequences," said a senior Democratic Senate aide, accoridng to CQ.

So far, there haven't been any.



Posted by Dana Chasin, 10:45:51 AM



Friday, December 07, 2007

Cirque du Senate: "Filibustering as if on Steroids"

Les Mots Justes about Enough concerning an almost dysfunctional institution are offered by today's New York Times:

Here... there is trash-talking, whining and finger-pointing, bickering and, occasionally, brief flashes of serious disagreement on policy. But with the clock ticking swiftly toward the end of the year and a stack of stalled legislation piling up, little is getting done in the Senate these days.

...

There is no deal on the federal budget, which is needed to prevent a shutdown of the government. The House and Senate remain divided over how to fix the alternative minimum tax, which will drill a hole in the wallets of 23 million Americans next year... A much-heralded energy bill, which the House approved on Thursday, was expected to fail in the Senate on Friday.

Democrats blame Republican obstruction. "They are filibustering as if they are on steroids," [Senate Majority Leader Harry] Reid said.

The repeated experience of seeing legislation passed by the House during the 110th Congress go directly into the Senate Cemetary prompted this scholarly opinion:

"As an amateur student of constitutional history and as a member of Congress, I have come to the conclusion that the Senate was a historic mistake," said Representative Rahm Emanuel of Illinois, the No. 4 Democrat.



Posted by Dana Chasin, 09:58:39 AM



Thursday, December 06, 2007

The Sound of One Party Negotiating

All Quiet on the Budget Front

The quiet that has descended over Washington amid the cold war on the budget has almost nothing to with the blanket of snow that fell on the town steadily all day yesterday. Instead, we heard essentially the same thing we've been hearing for the last several weeks.

We heard that the soft-spoken White House Chief of Staff Josh Bolten and Mr. Invisible, OMB Director Jim Nussle ventured through the snow yesterday to the Capitol for meetings with congressional leaders on both sides of Capitol Hill. "None of the principals would comment, but sources said the meetings with Democratic leaders yielded no negotiations on overall spending levels," Congress Daily reported.

No negotiations? Even though only one of the twelve budget bills has been signed and we are into the third month of the budget year? Despite widepsread concern about the budget impasse and government shutdowns?

Who needs bipartisan negotiations when you have House Appropriations Chair David R. Obey (D-WI) negotiating -- against himself? "There's a Plan A. There's a Plan B. There's a Plan C," Obey explained yesterday. "But there's no point in talking about it because you just undercut your first preference."

You've noticed that, have you? If you keep splitting the difference, pretty soon there will be no difference.



Posted by Dana Chasin, 06:27:58 PM



Illusionists who Provide no Illusion
The Budget Politics of Objection, Obstruction, and Obfuscation

The lead editorial in today's New York Times, The President's Cynical Budget War, details President Bush's "attempt to repair the Republican Party's threadbare fiscal reputation" by stonewalling the FY 2008 budget process, vetoing every appropriations measure that's hit his desk thus far this year -- except for the spending bill funding the Pentagon.

Mr. Bush is clearly hoping that the public will somehow forget that he is the one who spent the last seven years running up huge deficits and debt with his off-the-books war in Iraq and serial tax cuts customized for his affluent political base. Mr. Bush's Republican allies on Capitol Hill are also hoping that the voters will forget how they abetted the president through all those years. Those fiscal turncoats are now scrambling to pose once more as budget hawks to survive in next year's watershed election.

In all this, the President is ably aided and abetted by his co-conspirators in Congress. As we've learned (see The Filibuster and Fiscal Policy), a party with as few as 41 Senators and sufficient unity can stymie the majority's efforts to perform Congress' only constitutionally mandated responsibility: to provide the federal government with an annual budget, and the money to execute its laws.

Yesterday, Sen. Byron Dorgan (D-ND) took to the Senate floor to describe a spectacle that, sadly, has become all too common:

I sat here for a while this afternoon and saw something quite stunning. My colleague stood up and said, on the appropriations bill that passed the Senate by a wide margin, over 80 votes on transportation-housing and so on, she wanted to bring the conference report up to the Senate. There was an objection by the Republican leader of the Senate: I object.

Then, immediately afterwards, Senator Cornyn from Texas stood up and said: I do not understand what all of the problem is, the way the majority is running this place, why do we not get appropriations bills to the floor of the Senate?

This was immediately after his side had already objected to bringing an appropriations bill to the floor of the Senate. It is as if they think no one is watching. These are illusionists who provide no illusion.



Posted by Dana Chasin, 04:35:54 PM




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