The Bottom Line

December 12, 2013

With the details on the agreement reached by Budget Committee chairs Paul Ryan (R-WI) and Patty Murray (D-WA) made fully available yesterday, CRFB has gone deeper into the Balanced Budget Act in a new paper and breaks down the sequester relief, the offsets, and finally the overall effect on the budget this decade and over the long term.

December 11, 2013
Weekly Update on Budget and Fiscal Policy Developments and a Look Ahead

We Have a Deal – Rep. Paul Ryan (R-WI) and Sen. Patty Murray (D-WA) announced a budget deal late Tuesday after weeks of negotiation and a few days ahead of the December 13 deadline for their conference committee to report an agreement. The deal sets topline spending numbers for the next two years, $1.012 trillion for fiscal year 2014 and $1.014 trillion for fiscal year 2015.

December 11, 2013

Update: See our full analysis of the deal here

On December 10th, Budget Committee chairmen Patty Murray and Paul Ryan announced an agreement to set discretionary funding levels for 2014 and 2015 and provide a package of reforms to offset the costs of appropriating funds above the levels set by sequestration.

December 11, 2013

With the end of the year fast-approaching and the looming prospect of a 24 percent cut to Medicare physician payments on January 1, the House of Representatives has introduced a bill to delay the Sustainable Growth Rate (SGR) mechanism through the end of March.

December 10, 2013

In recent weeks, we've used our blog to call for strict adherence to pay-as-you-go (PAYGO) principles for extending emergency unemployment benefits, offering sequester relief, extending the doc fix, and continuing the so-called tax extenders.

December 9, 2013

As budget talks continue, negotiators could turn to postal reform for budgetary savings.

The United States Postal Service is currently in bankruptcy, and losing about $6 billion per year.

December 9, 2013

A good piece in the Washington Post over the weekend takes a look at why Medicare physicians continue to use an expensive drug to help prevent blindness when what appears to be an equally-effective drug is available for a fraction of the price.

According to the article, Lucentis costs Medicare about $2,000 per injection. Avastin costs only around $50.

December 9, 2013

As the budget conference committee continues its work on finding a bipartisan solution to replacing a portion of the sequester with better targeted reforms, negotiators appear to be turning to user fees and related receipts as an alternative to tax revenue.

December 9, 2013
Avoid Budget Gimmicks

While we continue to hope for a substantial budget deal that would address our long-term fiscal problems, it looks like a smaller deal is more likely. Replacing part of the sequestration with permanent long-term savings would represent progress, though more work will remain.

However, as CRFB President Maya MacGuineas wrote in zpolitics over the weekend, if lawmakers are looking toward a smaller deal, it becomes that much more that the avoid budget gimmicks and worsening the fiscal situation. Writes MacGuineas:

December 6, 2013

The budget conference committee is rumored to be close to a deal that includes changes to federal retirement programs, increasing the share that federal workers pay toward their own retirement funds.

December 6, 2013

Earlier this year, we discussed how the prospects for a permanent fix to the Sustainable Growth Rate formula had improved given CBO's dramatic reduction in its estimate of the cost of a fix.

December 6, 2013

With Budget chairs Ryan and Murray apparently close to a deal, they may turn to PBGC premiums as a way to raise money without increasing taxes.

December 5, 2013
Among the proposals that the budget committee is rumored to be considering to replace a small part of the sequester is an extension of a reduction in Medicaid payments to hospitals that serve a high number of low-income patients to help offset uncompensated care costs.
December 5, 2013
Friday the 13th Approaches

It's just a little over a week before the budget conference committee is supposed to present its recommendations to Congress. Former U.S. Comptroller and CRFB board member David Walker writes in The Hill that the deadline is also an opportunity we cannot afford to waste:

December 4, 2013

Recently, several Members of Congress and outside groups have called for continuing extended unemployment benefits to allow the unemployed to collect for up to 73 weeks instead of 26.

December 4, 2013
Weekly Update on Budget and Fiscal Policy Developments and a Look Ahead

Deals to be Had – We survived Black Friday, Cyber Monday and Giving Tuesday. While the door buster bargains may be gone, there are still deals for the taking in Washington. Namely, lawmakers have striking deals on a budget and farm bill on their wish lists.

December 4, 2013

In his recent testimony, CBO directory Doug Elmendorf argued that it would be beneficial for policymakers to make large improvements to our budgetary picture, but that small steps forward would be better than nothing, and "no steps at all would be better than stepping backward." Budget gimmicks fall squarely into that stepping backwards category by potentially offsetting real costs with phony savings.

December 4, 2013

Last month, Senate Finance Committee Chairman Max Baucus (D-MT) released three tax reform discussion drafts. One of the most commendable elements in these discussion drafts is Baucus’ focus on the long-term impact of reform – ensuring it will not add to the deficit in future decades.

December 3, 2013

A recent CNN Money article suggests that budget conferees are likely to propose an increase in aviation security fees.

December 3, 2013

In our recent paper, "Our Long-Term Debt Problems are Very Far From Solved," we showed that while the debt problem may be long-term, solutions need to start today.

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