The Bottom Line

February 14, 2014

Earlier this week, Congress moved quickly on a bill to repeal the military cost-of-living adjustment (COLA) reduction for working age retirees that was included in the Ryan-Murray budget deal. The bill repeals the reduction for all service members who started before 2014, effectively delaying any part of the reform for 20 years and delaying its full phase in until 2058.

February 12, 2014
Good Economic Policy Would Call for the Opposite

In May of last year, CBO expected the 2014 deficit to fall to $560 billion from 2013's total of $680 billion. Now, CBO is estimating a deficit of $514 billion this year, a reduction of $46 billion compared to May.

February 11, 2014

Last week's report by the Congressional Budget Office showed that our debt remains on an unsustainable path, (see our ongoing blog series) and is projected to be $1.7 trillion higher by 2024 than we previously thought.

Despite the dismal fiscal picture, Congress may be considering measures to worsen the deficit, and covering their tracks with so-called "budget gimmicks."

February 11, 2014

With the debt ceiling having been reinstated last Friday, lawmakers are scrambling to come up with legislation to lift or suspend it again before extraordinary measures likely run out by the end of the month. Originally, House Republicans had planned on attaching a repeal of the military retirement cost-of-living adjustment reduction for people who joined the service prior to 2014 to a debt ceiling suspension through March 15 of next year.

February 11, 2014

In order to avoid bumping up against the statutory debt ceiling, the Department of the Treasury has begun undertaking a number of so-called "extraordinary measures." The current debt limit is $17.211 trillion.

February 10, 2014
Weekly Update on Budget and Fiscal Policy Developments and a Look Ahead

Having Our Phil – Punxsutawney Phil saw his shadow last Sunday, traditionally meaning six more weeks of winter. That is no surprise to most of the country that has seen record low temperatures and extraordinary amounts of snow. Most of us have accepted the reality of more wintry weather ahead just as we recognize that little in the way of substantive action will come out of a polarized Washington. But that doesn’t mean we are happy about it.

February 10, 2014
Agreement on “pay-fors” still needed

Last week, on the day Senate Finance Chairman Max Baucus was confirmed to his new post as Ambassador to China, the Senate Finance, House Ways and Means, and House Energy and Commerce Committees announced a bipartisan agreement to reform the Sustainable Growth Rate (SGR) formula for Med

February 7, 2014

In its February 2014 Budget and Economic Outlook, CBO continued its previous warnings from last year's February outlook and September's long-term outlook: elevated and rising debt level pose serious risks for economic growth and budget flexibility.

In its latest outlook, CBO highlights on page one the consequences of high levels of debt:

February 6, 2014

In CBO's 2014 Budget and Economic Outlook released this week, they addressed the future of the federal government's largest program, Social Security. Social Security has two separate trust funds: one for Old Age and Survivors Insurance and one for Disability Insurance. It is clear from CBO's analysis that both face mounting fiscal challenges in the coming years.

February 6, 2014

Yesterday, we updated our Q&A: Everything You Needed To Know About the Debt Ceiling to reflect the newest date for the debt ceiling, which will be reinstated after February 7. The debt ceiling was suspended in mid-October, following a partial government shutdown, and will be reinstated on Friday. This suspension will result in a de facto $600 billion increase, putting the new debt ceiling at approximately $17.3 trillion.

February 6, 2014

Yesterday, the Congressional Budget Office released its annual report on the federal budget, which outlines their projections of all federal spending and revenues over the next 10 years and serves as a baseline against which to measure all of this year's legislation. The report showed that the deficit is expected to fall by $166 billion since last year, from $680 billion in 2013 to $514 billion in 2014.

February 6, 2014

This afternoon, the Senate is expected to vote on an extension of unemployment insurance, offset with so-called "pension smoothing" - a timing shift which doesn't actually reduce the debt.

February 5, 2014

Soon, the Senate may consider the Comprehensive Veterans Health and Benefits and Military Retirement Pay Restoration Act legislation (the CBO scoring is available here) introduced by Senator Bernie Sanders (I-VT) to reverse the military retirement reforms from the Bipartisan Budget Act and creat

February 5, 2014

Yesterday, the Congressional Budget Office (CBO) reported a significantly bleaker fiscal picture than they had projected just last year, with debt now rising to 79.2 percent of the economy by 2024.

February 5, 2014

CBO Director Douglas Elmendorf testified before the House Budget Committee this morning following CBO's release of the 2014 Budget and Economic Outlook on Tuesday. In his opening statement, Director Elmendorf addressed CBO’s projection of a return to rising deficits beginning in Fiscal Year 2016.

February 5, 2014

Yesterday, the Congressional Budget Office released its 2014 Budget and Economic Outlook, serving as a budget baseline for the new year. To help make sense of the 182-page dense but informative report, CRFB has released a concise 7-page analysis that puts the new numbers in perspective.

February 4, 2014

The CBO's baseline released today shows how spending is expected to grow over time and where that growth occurs in the federal budget. In general, spending grows from 20.8 percent of GDP in 2013 to 22.4 percent by 2024. However, different categories of spending have much different fates within the overall total.

February 4, 2014

The Super Bowl was held last Sunday, and the Olympics are coming up in a few days, but the biggest event this week happened today as CBO released its latest budget and economic projections for the next ten years. The odd scheduling of budget projection releases last year meant that there was no August update of the baseline, as there usually is, so these are the first projections in almost nine months.

February 3, 2014

This morning, Secretary Lew spoke at the Bipartisan Policy Center about the imparative need to raising the debt ceiling, which has been suspended and is reinstated on February 7. At that point, the limit will be $17.3 trillion, according to estimates from the Bipartisan Policy Center.

February 3, 2014

Note: This blog has been updated to talk about the first blog post in the series.

For those in the budget world, today is not just the day after the Super Bowl, it's also Budget Day...sort of. The 1974 Budget Act technically requires the President's budget to be submitted on the first Monday in February, but with the delay in resolving appropriations, the budget will be delayed this year until next month.

Syndicate content