An op-ed in the New York Times yesterday featured Rep. Earl Blumenauer (D-OR) and his unorthodox approach to fiscal sustainability. Unlike many of his peers on the Hill, Rep. Blumenauer does not believe in extensive federal program cuts to balance the budget—but he has advocated extensively for the need to balance the budget, somehow, and soon. Pushing aside the traditional conservative vs.
Today, CBO released an update to its economic and budget projections for the coming decade, originally reached in February and March. Under its current law baseline, debt projections have increased to $16.1 trillion by 2020, up a trillion dollars from the previously projected $15 trillion amount. Although projections for the next few years remained mostly the same, CBO’s projections for the cumulative deficit over the next ten years have increased by about $300 billion, from $5.9 trillion predicted in March to more than $6.2 trillion now expected today.
The Obama Administration held a conference yesterday discussing how to fix federal housing programs, with the goal of submitting a comprehensive Fannie Mae and Freddie Mac reform proposal by January.
Yesterday, Defense Secretary Robert Gates held a press conference in which he announced sweeping DoD budget cuts. Gates proposed the dismantling of Joint Forces Command based in Norfolk, VA, which employs about 2,800 military and civilian personnel as well as 3,300 contractors (alone saving about $240 million per year).
CRFB has been calling for policymakers to set fiscal targets for some time. Apparently we haven’t been clear enough on what that means.
Unfortunately, some in Congress have put a bullseye on the few legislators courageous enough to offer ideas to reduce our mounting debt. The Hill today reports on leaders within the House Democratic caucus tearing into four junior members who were naïve enough to offer a measure to moderately reduce spending.
Yesterday morning, Richard Berner of Morgan Stanley, Simon Johnson of MIT, and Joel Naroff of Naroff Economic Advisors testified before the Senate Budget Committee on the state of the economy in the short-term and prospects down the road. All three displayed some concern about the vitality of the economy in the next few years, but they each focused on different aspects: the housing market, financial markets, and consumer spending, respectively.
The Senate appears headed toward cutting discretionary spending even below the level called for by Senate appropriators. Senate Majority Leader Harry Reid (D-Nev.) said on the Senate floor this week that he has an informal agreement with Republican leaders that spending be capped at $1.08 trillion, less than the $1.114 trillion established by Senate appropriators in their subcommittee allocations. That is the amount called for in the spending plan offered by Sens. Claire McCaskill (D-Mo.) and Jeff Sessions (R-Ala.)
House Gone, Senate Eyeing the Exit – The House started its six-week recess Friday and the Senate will adjourn at the end of this week. Debate and a vote on the nomination of Elena Kagan to the Supreme Court is expected to take up a lot of the schedule, and oxygen, this week for senators.
Sen. John Thune (R-SD) introduced a deficit reduction and budget reform bill yesterday, aptly titled the Deficit Reduction and Budget Reform Act of 2010. The bill sets (non-security) discretionary spending limits and makes numerous changes to the budget process.
Add another solid idea to the growing list of proposals to help improve federal budgeting and put the country on a sustainable fiscal course. Representatives Gabrielle Giffords (D-AZ) and Charles Djou (R-HI) yesterday introduced the Truth in Spending Act (H.R. 5954).
