Housing -- Reid May Attempt to Move Housing Bill This Week: Hoping that the higher profile of the mortgage meltdown will prompt a few Senators to change their votes, Sen. Harry Reid (D-NV) may bring up his housing assistance package for consideration this week.

Budget -- War Spending: CongressDaily reports ($) that House Appropriations Chair David Obey (D-WI) will begin work on a war supplemental bill. This would round out the president's $196 billion FY 2008 request - $86 billion of which has been enacted through various bills since Sept. 2007. The bill could reach the House floor the week of April 21.

Contractor Oversight -- USAF Signed Contract with Suspended Contractor: The Washington Times reports that the U.S. Air Force inked an $11.6 million deal with a contractor two weeks after it was suspended by the GSA.

CMS Trustees Report -- Two Views: The CMS Trustees annual report, issued yesterday, reported that Medicare's hospital insurance trust fund would be exhausted in 2019, while Social Security's reserves would be depleted in 2041, yielded two analytic perspectives (and see more, here and here) --

• The administration: "Without change, rising costs will drive government spending to unprecedented levels, consume nearly all projected federal revenues and threaten America's future prosperity." -- Treasury Secretary Paulson

• Center on Budget: "Policymakers must restore Social Security's long-term solvency. But they do not need to make radical changes in the program's structure to do so. If they act in the coming years, a balanced package of relatively modest changes in both the program's revenues and its benefits, phased in gradually, can meet this goal."

Fed Rescue: Is it Taxpayer Money?: Even as the Bush administration insists it won't risk public funds in a bailout, American taxpayers may already be liable for billions of dollars stemming from Federal Reserve and Treasury efforts to quell a financial crisis.

• Fed historian Allan Meltzer in Bloomberg today: "[Regulators] are playing with fire,'' said , a and economics professor at Carnegie Mellon University in Pittsburgh. ``With good luck, none of these liabilities will come due. We can't expect that good luck, and we haven't had it."

A collaboration of Stan Collender, Pete Davis, Andrew Samwick and Troy K. Schneider, Capitalgainsandgames.com presents a bridge between the Washington and the Wall Street perspectives on federal fiscal policy, with a new and improved look.

At a time when the nation's leading financial and political institutions are engaged in negotiations at many levels, seeking to address the current credit crunch and the sharp economic contraction it is causing and considering a range of policy options alleviate it, this site, providing analysis of the relationship between politics and economics, is an important touchstone.

Housing -- Home Prices Down 10.7% in 12 Mos.: A glut of foreclosed homes of historic proportions is starting to drive down U.S. home prices faster as lenders put more properties on the market and buyers show signs of interest. The value of single-family homes plummeted 10.7 percent in January compared to a year previous, per a closely watched survey of 20 major metropolitan regions. Story.

Economy -- Are Student Loans Next?: Several lenders are backing out of the federal student loan program, the result of the credit crunch and government subsidy cuts that have made the business of lending to students increasingly unprofitable. The void that the lenders have left already accounts for almost 10% of the total estimated student loans needed this year. Story.

Social Security -- CMS Report Out Today:"It's the wonks' version of the Cherry Blossom Festival: the release of the annual Social Security trustees' report showing the fiscal health of our nation's biggest social program." For the Trustees' long-range projections in dollars of the operations of the combined Social Security and Disability Trust Funds from the 2007 report, click here.

National Debt -- Might Reach Limit by Election Day: A new CBO estimate of the projected national debt shows that the statutory debt limit might be reached by election day, rather than in 2009, per the previous estimate -- mostly due to expected decreases in corporate tax revenues. Under the "Gephardt" rule in the House, the debt ceiling increase in the budget resolution boosting the limit to $10.2 trillion goes into effect without a stand-alone vote. A Senate vote would still be required for a House bill raising the debt ceiling to become law.

Earmarks -- Muscle, not Merit: The Times reports this morning on a Chronicle of Higher Education study of earmarks dedicated to education. Choice quotation from University of Virginia professor of politics James D. Savage: "When it comes to earmarks, those taxpayer dollars are allocated strictly on the basis of the power and access of the legislators involved."

Housing -- Another Crisis, This One Political: Last Friday, Sens. Patty Murray (D-WA) and Christopher Dodd (D-CT) sent a letter to President Bush urging HUD Secretary Alphonso Jackson to resign, citing : "four separate allegations of impropriety, as well as damning testimony by senior staff [in] the midst of a housing crisis [at a time when HUD needs] a leader who can work tirelessly to find solutions to the problems plaguing the housing and mortgage markets."

Economy -- The Metastasizing Recession: Policymakers in Washington face the growing challenge of tracking the shifting contours of the nation's economic slowdown as they attempt to design legislative and administrative responses to it. "The economic downturn is seeping into new parts of the country that seemed insulated only months ago." Times. Graphs.

• Unemployment Claims at Four-Year High:The number of Americans filing first-time claims for unemployment insurance rose last week and the total number on benefit rolls reached the highest since August 2004. Bloomberg
• Food Aid Spending Urged: Aid groups are asking Congress for a 70 percent increase in supplemental funding this year to ensure that historically high commodity prices to avoid gaps in food donations and help those hardest hit by skyrocketing prices for staples like bread and milk. Post

A two-week congressional recess affords us the opportunity to take a big picture look at some big fiscal policy problems. And two recently published big picture books reviewed yesterday in the Washington Post and the New York Times seek to sharpen the focus on different aspects of that picture, though apparently with differing degrees of success.

"Where Does the Money Go?: Your Guided Tour to the Federal Budget Crisis" by Scott Bittle and Jean Johnson (Collins, $16.95 in paperback) draws a rave from the Times (A Proposed Diet for the U.S. Budget):

This is a book that manages to be entertaining and irreverent while serving as an informative primer on a subject that is crucial to the future of all Americans [concluding in] words are neither politically partisan nor alarmist [that] our country may one day be unable to make even the interest payments on our $9 trillion debt, payments that are now $226.6 billion a year — and we would be forced to declare ourselves a bankrupt nation.

"The Three Trillion Dollar War --The True Cost of the Iraq Conflict" by Joseph E. Stiglitz and Linda J. Bilmes (Norton, 311 pp. $22.95) does not fare as well (What's the Tab?). The reviewer echoes the skepticism we express below in a blog about the authors' op-ed synopsis of their book, finding that Stiglitz and Bilmes try to argue that the costs of the war far exceed the $500 billion or so officially spent on it thus far:

Yet by making many assumptions about the future course of the conflict -- from its duration (through at least 2017, they predict) to its impact on global oil prices ($5 to $10 extra per barrel, for seven to eight years) -- the authors will leave many readers unconvinced... A trillion here, a trillion there -- pretty soon the line between "estimate" and "guess" gets a bit blurry [concluding that t]he book's title suggests a level of precision that is not borne out in its pages.

Economy -- Fed in Bailout of Bear: While the Bush administration resists and Congress contemplates fiscal policy options, the Fed took drastic steps to keep the housing sector crisis from spreading into financial institutions, with a temporary bailout out of Bear Stearns, an investment bank with massive subprime mortgaged-backed asset exposure. The Fed meets again tomorrow; speculation centers on a federal funds rate cut of 50-100 bp.

• Statement this morning by President Bush
• Brookings Paper: Policy Options
• NYT Editorial

Budget Resolution -- A Recess to Resolve: With the passage of the House and Senate FY 09 budget resolutions last week, attention turns to the conference committee, which will likely be appointed and begin negotiations during the two-week congressional recess, which begins today. FY09 Budget Docs: President's Budget, Budget Resolutions, etc.

Federal Contracting -- A Different Housing Crisis: Senate Banking, Housing and Urban Affairs Committee Chair Chris Dodd (D-CT) is investigating allegations that HUD Secretary Alphonso Jackson acted improperly in granting federal contracts and that the Department has abused taxpayer funds and acted improperly in federal contracting. Dodd-to-Jackson Letter.

Budget Resolution -- The Final Lap

• House: The House adopted its budget resolution by 212-207 after rejecting the GOP substitute amendment by a vote of 157-263, which 38 Republican members opposed -- it sought to reduce mandatory spending by $412.4 billion over five years. The Progressive Caucus budget lost 98-322; the Black Caucus bill was rejected 126-292.
• Senate: After 15 hours of vote-a-rama, the Senate passed its own resolution, 51-44, in party-line vote -- except for Sen. Bayh (D-IN), who voted against it and Maine Sens. Snowe (R) and Collins (R) who voted in favor. The Senate rejected 47-52 a GOP proposal to extend the remaining tax cuts enacted under the 2001 and 2003 laws, such as the lower rates for capital gains and dividends.

Taxes -- Enforcement Bill on Government Contractors: Sens. Barack Obama (D-IL) and John Kerry (D-MA) and Reps. Rahm Emanuel (D-IL) and Brad Ellsworth (D-ID) introduced a bill, the Fair Share Act of 2008, yesterday to prevent government contractors from avoiding payroll taxes by setting up overseas "shell" businesses. Bill summary.

Federal Contracting -- Delinquency Bill Clears Panel: A bill to prohibit companies delinquent in their tax bill from contracting with the federal government was voice-vote approved by the House Oversight and Government Reform Committee. The comnpanion bill is in the Senate Homeland Security and Governmental Affairs Committee. Bill summary.

Housing -- Forstalling Foreclosures: Bills have been introduced by Rep. Barney Frank (D-MA) in the House -- to refinance up to $300 million in new guarantees for troubled subprime loans at risk of default -- and Sen. Chris Dodd in the Senate -- a similar bill providing up to $400 billion in refinancing. 5.82 percent of outstanding home loans were in delinquency in the fourth quarter of 2007, with another 2.04 percent of mortgages in some stage of foreclosure.

The House and Senate successfully passed their versions of the FY 2009 budget resolution yesterday. The House passed their spending outline on a mostly party-line vote 212 - 207 and the Senate passed their version early this morning 51 - 44 (roll call not available yet). Sixteen Democrats in the House opposed the budget along with all Republicans and in the Senate, Sens. Olympia Snowe (R-ME) and Susan Collins (R-ME) supported the budget, while Sen. Evan Bayh (D-IN) opposed it.

The House and Senate versions are similar in a number of areas, but the House blueprint is more fiscally responsible - strictly adhering to PAYGO rules by requiring offsets for mandatory spending increases and any additional tax cuts - particularly offsetting changes to the alternative minimum tax. Way to go House of Representatives!

There were tons of amendments in the Senate all through the day and night on key fiscal issues. We'll be dissecting the amendments and votes throughout the day today here on the BudgetBlog. Stay tuned!

Posted by Adam Hughes, 09:25:16 AM

Thursday, March 13, 2008

Budget Resolution -- Votes on Amendments and Substitutes:

• Senate: Voting is expected all day -- and night -- on amendments, concluding with a rapid-fire vote-a-rama. As of last night, these were the pending amendments.

• House: Voting is also expected, but on a smaller number of amendments and the following substitutes offered by the GOP, the Progressive Caucus, and the Congressional Black Caucus.

Final votes in each chamber on their respective budget resolutions are expected on Friday

Earmarks -- Moratorium Moribund?: The predictions are dire for today's likely vote on Sen. DeMint's amendment to ban earmarks for one year. Senate leadership does not support it and Judd Gregg, Budget Committee ranking member and noted Senate fiscal hawk, dismissed it as a "crock." Story/Graph.

Housing -- Foreclosures Up 60% in February: One in 557 homes in the U.S. is in default today. Foreclosures skyrocketed 60 percent last month, the 26th consecutive month of year-on-year monthly foreclosure increases. Story. Sen. Jack Reed (D-RI) has introduced a bill in the Senate (S. 2391), to address the problem by providing affordable housing relief. Opinion.

Posted by Dana Chasin, 10:12:17 AM

Wednesday, March 12, 2008

DAILY FISCAL POLICY REPORT -- Mar. 12, 2008

Economy -- Fed Moves to Ease Credit Crunch: The Federal Reserve is making $200 billion in short-term loans available banks holding diostresed mortgage-backed securities. The Dow jumped over 400 points on the news, its biggest one-day gain in five years. Wall Street Journal.

Budget Resolution -- Tax Debate Begins: Debate began in the Senate yesterday of the Baucus amendment (OMBW analysis). An "counter-amendment" on the estate tax proposing a $5 million exemption and a 35 percent tax rate is expected from Sen. Lindsey Graham (R-SC). Debate on the House budget resolution begins today (Summary of House amendments and substitutes).

Earmarks -- Moratorium Amendment Gains: A proposal by Sen. Jim DeMint (R-SC) to ban spending via earmarks for one year has been gaining co-sponsors on both sides of the aisle, in advance of a Senate floor vote expected Thursday. The outcome remains uncertain -- while presidential candidates Clinton, Obama, and McCain support the measure, Senate leaders Reid and McConnell do not. New York Times.

Federal Contracting -- Delinquency Bill Clears Panel: A bill to prohibit companies delinquent in their tax bill from contracting with the federal government was approved by the House Oversight and Government Reform Subcommittee on Government Management, Organization and Procurement yesterday. It is expected to be approved by the full committee on Thursday. Bill Summary.

Posted by Dana Chasin, 10:28:44 AM

Tuesday, March 11, 2008

DAILY FISCAL POLICY REPORT -- Mar. 11, 2008

Budget Resolution (BR):

• Senate -- Counting Votes: With close votes anticipated on tax amendments -- and on the resolution itself -- a key question is whether the absence of Sens. Clinton and Obama (campaigning) and Byrd (hospitalized) for part or all of the week will deprive Democrats of their working majority on BR votes... Senate Budget Chair Conrad: "Let's do the math. 51-49. We're down two, plus Sen. Byrd. 49-48."
• House -- No Stimulus in BR: Unlike the Senate BR, which provides $35 billion for a second stimulus package, the House version includes no such plan. If unemployment reaches six percent, says House Budget Chair Spratt, "then I think we would at least come back and consider that [UI] component of an additional stimulus." Story.

Earmarks -- DeMint Ban Gains Support: Sens. Obama, Clinton, and McCain have now signed on to Sen Jim DeMint's (R-SC) proposal to ban earmarks for one year. Senate Majority Leader Reid and Minority Leader McConnell are withholding their support. The proposal may come up for a vote in the Senate as early as today. WSJ Comment: Earmarks Showdown

Taxes/Stimulus -- Vets, SS Recipients Getting Tax Help: The IRS is sending special information packages to help 20 million recipients of Social Security or Veterans Affairs benefits file for stimulus tax rebates. The package is designed for taxpayers who may qualify for an economic stimulus payment but who generally are not required to file a tax return. IRS news release. IRS info package.

Posted by Dana Chasin, 10:20:09 AM

Monday, March 10, 2008

House Budget Debate: a Mere Moment of Mirth

During the House Budget panel's mark-up of the budget resolution last week, presidential politics were the backdrop for some frivolity and hijinks.

Rep. Rodney Alexander (R-IA) displayed a surprsing degree of pessimism regarding his party's prospects for the presidential elections in the fall, offering amendments to include in the resolution's deficits projections the costs of the health care plans of candidates Sen. Hillary Clinton and Sen. Barack Obama.

Alexander was alone among the panel's 22 Democrats and 17 Republicans in voting in favor of his amendments. Still, in a moment mixing mirth and rancor, Rep. Lloyd Doggett (D-TX) commented that if Democrats wanted to emulate Alexander's antics based on Sen. John McCain, they could have proposed including in the deficit projections the costs of the war in Iraq ... for the next 100 years.

Posted by Dana Chasin, 02:50:32 PM



DAILY FISCAL POLICY REPORT -- Mar. 10, 2008

Budget -- Front and Center: Floor debates, amendments, vote-a-rama, and final votes on the FY09 budget resolution will occupy most of the House and Senate agenda this week. A central issue: taxes, especially the AMT and whether a patch for next year should be paid for. An amendment to watch for, mostly in the Senate: Sen. Jim DeMint's (R-SC) proposal to ban earmark projects for one year. (For House and Senate budget resolutions, see here.)

Taxes/Estate Tax -- Expect Estatus Quo: This week, the Senate Finance Committee will hear academics discuss ideas about estate tax reform. But Committee Chair Sen. Max Baucus (D-MT) is not suggesting any committee action to alter the tax this year. According to Senate Minority Whip and leading advocate of estate tax repeal Sen. Jon Kyl (R-AZ), Baucus "did not appear to be very interested" (CQ, Changes to the 'Death Tax' Are on Life Support — at Least for This Year, $).

Taxes/President's FY09 Budget -- JCT Report: Out today is the Joint Committee on Taxation's report providing a description and analysis of all the tax provisions in President Bush's proposed FY09 budget. It's a pretty pricey menu. See Report.

Posted by Dana Chasin, 10:02:52 AM

Friday, March 07, 2008

GAO Report Highlights Troubling Trend in Supplemental Spending
A report recently released by the GAO indicates that with rising rates of supplemental appropriations comes decreasing budgeting transparency. Looking at supplemental requests - emergency and non-emergency - from 1997 to 2006, the report concludes:

To the extent possible, funds should be provided through the regular appropriations process to ensure that trade-offs are made among competing priorities, especially in an environment of increasingly constrained resources. Therefore, controls should be in place to ensure that emergency supplementals are enacted for their intended purpose—to address unforeseen needs that arise suddenly after the start of a fiscal year.

The timeliness of the report is underscored by the trend in supplemental spending seen since 1997.

And while spending on the Global War on Terror (GWOT) since the Sep. 11 attacks accounts for the majority of the funding, other, non-GWOT spending has been on the rise. Compared the period 1987-1996 when some $80 billion in non-war, supplemental spending was enacted, the period 1997-2006 saw $323 billion allocated in supplemental spending acts. And in that same time period all non-emergency totalled $101 billion.

For more on supplementals, see our background brief on supplemental appropriations.

Posted by Craig Jennings, 01:54:31 PM



DAILY FISCAL POLICY REPORT -- Mar. 7, 2008

Economy -- 63,000 Job Lobs Lost in Feb.: The U.S. economy lost 63,000 jobs last month, the biggest such figure in five years and -- following January 22,000 in job losses -- the first back-to-back monthly declines in as long. "[M]uch weaker than economists were expecting," per WaPo. Labor Dep't report.

Budget Resolution -- Amendments of Note: House and Senate budget resolutions cleared their respective budget committees and are headed for floor debate, vote-a-rama, and final vote next week. In the Senate, the Budget Committee defeated a series of GOP amendments to create various exceptions to PAYGO. House BR docs. Senate BR docs.

Procurement -- Controversy over Tanker Contract: House Appropriations Committee members are warning they may kill a multibillion-dollar contract to replace a fuel tanker fleet if the Pentagon cannot explain why it gave the deal to a partnership between Northrop Grumman and the European parent of Airbus, instead of to Boeing. Story.

Posted by Dana Chasin, 09:59:04 AM

Thursday, March 06, 2008

Senate Budget Committee Approves FY 2009 Budget Resolution

Voting along party lines - 12-10 -, the Senate Budget Committee has approved its FY 2009 budget resolution. The $3.1 billion resolution includes a one-year, non-offset $62 billion AMT patch. And at $472 billion, its non-defense, domestic top line is 2.2% more than Bush's $462 billion proposal.

Posted by Craig Jennings, 05:27:24 PM



House Budget Committee Approves FY 2009 Budget Resolution

Early this morning, on a straight party-line vote, the House Budget Committee voted 22-16 to approve its $3.1 trillion FY 2009 budget plan.

Posted by Craig Jennings, 03:24:35 PM



DAILY FISCAL POLICY REPORT -- Mar. 6, 2008

The House budget resolution, legislation and statements

• Legislation

• Chairman's Mark
• Chairman's Mark Summary
• Budget resolution funding levels by function

• Statements

• House Budget Committee Chairman Spratt
• House Minority Leader Boehner
• Blue Dog Coalition

The Senate budget resolution, legislation and statements

• Legislation

• Chairman's Mark
• Chairman's Mark Summary

• Statements

• Senate Budget Committee Chair Conrad
• Senate Budget Committee Ranking Member Gregg

Taxes -- House Appropriations Financial Services Subcommittee Chairman Jose Serrano (D-NY) and committee member Rep. Maurice Hinchey (D-NY) will continue their efforts to kill the IRS private tax collection program through fiscal 2009 appropriations.

Contracting -- Sen. John McCain's (R-AZ) role in killing an Air Force deal with Boeing several years ago resurfaces as the row over the Air Forces's decision to contract with Airbus's parent, EADS, for a fleet of new tanker planes

Posted by Craig Jennings, 09:51:43 AM

Wednesday, March 05, 2008

DAILY FISCAL POLICY REPORT -- Mar. 5, 2008

Budget Resolution

• Senate Version: $3 trillion budget; $18 billion more in discretionary funding than the Bush budget. Provides a $35 billion "Stimulus 2.0" package, $13.4 billion in energy tax cuts, and $13 billion in education tax cuts. Projects FY09 deficit of $350 billion. Balances budget by 2012, assuming expiration of all Bush 2001/2003 tax cuts. Includes no reconciliation instructions
• House Version: $3 trillion budget; $23.6 billion in discretionary funding over and above the president's topline. Likely to include reconciliation instructions for a $70.3 billion, paid-for, one-year AMT fix by July 15; offset renewable-energy tax breaks; and a delay in a scheduled 10 percent cut in Medicare payments to physicians. Highlights. Budget numbers.
• Schedule: Senate Budget Committee -- Opening Statements today 2:30 p.m.; Mark-up tomorrow, 10 a.m. House Budget Committee -- "Members Day" today, 11:00 a.m.; Mark-Up tomorrow

Energy Tax -- Budget Reconciliation The House-passed Renewable Energy and Energy Conservation Tax Act of 2008, a $18.1 billion measure -- paid for largely by repealing the tax code Section 199 manufacturing deduction for certain oil and gas producers -- may be covered in House budget reconciliation instructtions. If that happens, the GOP may counter with an amendment to ope ANWR to drilling. Bill summary.

Posted by Dana Chasin, 10:51:36 AM

Tuesday, March 04, 2008

New Medicaid Rules May Cost States Triple Administration Estimate

Yesterday, the House Oversight and Government Reform Committee Democrats released a report detailing the effects of the Bush Administration's Medicaid rule changes (one went into effect on Monday while several others are pending). According to the report, the new rules would cost state governments a total of $50 billion over five years - over three times the administration's $15 billion estimate.

The report is the product of the House committee's request to states to estimate their expected federal funding losses due to the proposed Medicaid rule changes.

The Centers for Medicare and Medicaid Services (CMS) has cast doubt on the accuracy the report, saying that ($):

"The Committee paper fails to provide any reliable information such as the assumptions, expenditure reports, the knowledge of how states will respond, and budget forecasts necessary to substantiate any of the numbers contained in the paper..."

However, committee chair Rep. Henry Waxman (D-CA) emphasized the role that federal funding plays in state budgets and its ability to provide resources to low-income families in economic downturns.

"As the economy tips into recession, the last thing we should be doing is taking federal funds from states, especially funds that are supposed to help people with their health and medical expenses..."

Posted by Craig Jennings, 01:42:15 PM



DAILY FISCAL POLICY REPORT -- Mar. 4, 2008

Budget Resolution:

• Modest Proposals -- Speaker Nancy Pelosi's office described the goals for the House budget resolution as follows: "We want to talk about responsible fiscal spending that is going to provide health care, education and job training... Our budget is going to balance by 2012, it is going to adhere to PAYGO and restore fiscal responsibility"... Democrats are expected to add $25-35 billion to Bush's topline for domestic programs.
• Immodest Supplementals -- Per a GAO report released yesterday, "over the 10-year period from [FY97 to FY06], supplemental appropriations provided about $612 billion ($557 billion net of rescissions) in new gross budget authority, a five-fold increase over the previous 10-year period." See Report.

Farm Bill -- Eyeing Offsets as Deadline Nears -- House Agriculture Committee Chair Rep. Collin Peterson (D-MN) says that a farm bill with $10 billion in new spending has been OK'd by the USDA... "We're probably going to have to extend the current law one more month 'til April 15th" until offsets can be agreed upon. Story.

Posted by Dana Chasin, 10:57:22 AM

Monday, March 03, 2008

Early Bird Nussle Makes a Play for the Worm

Getting Bush's veto-threats out early, OMB Director Nussle promises Bush will veto...well pretty much anything that wasn't written by the president.

CongressDaily PM ($):

OMB Director Nussle today sent what officials are billing as the first of its kind, a pre-emptive letter to the House and Senate Budget and Appropriations committees outlining veto threats over Democratic spending and tax policies -- before their budgets have been unveiled....Nussle's letter states that President Bush will veto FY09 appropriations bills that exceed his overall spending target and do not meet his mandate to cut the number and cost of earmarks in half from what was enacted for FY08....[and] reiterated the president will "veto any attempt to increase taxes."

Still, you gotta hand it to him. Nussle is nothing if not a go-getter.

Image by Flickr user phirleh. Used under a Creative Commons license.

Posted by Craig Jennings, 05:32:01 PM



DAILY FISCAL POLICY REVIEW -- 03-03-08

Budget Resolution: Budget Committees This Week --

• House Budget: Complete, all-day mark-up of Chair Rep. John Spratt's (D-SC) FY09 budget resolution draft is expected for Wednesday, March 5
• Senate Budget: Opening statements on budget resolution on Wednesday, March 5; consideration of Sen. Kent Conrad's (D-ND) Chairman's Mark is to begin late Wednesday or early Thursday

NB: the final FY09 budget action in Congress is likely to be at the House Ways and Means, Energy and Commerce and Senate Finance committees, with jurisdiction over healthcare and tax policy.

Economy: Jan. Spending Flat in Real Terms -- Consumer spending in real, inflation-adjusted terms was flat in January for the second month in a row as inflation rose. .. Personal saving as a percentage of after-tax income remained negative at minus 0.1 percent, same as in December. Personal income and savings: Jan. Data.

SS Disability Backlog: The Story behind the Numbers -- The first wave of 80 million baby boomers has applied for Social Security... Boomers are likely to seek disability benefits in greater numbers than did previous generations. See Story.

Posted by Dana Chasin, 10:54:23 AM