Budget Process and Rules
In a new and informative series on Reforming the Budget, the Brookings Institution looked at challenges facing the budget process and proposed strategies to improve its shortfalls. Given the frequent breakdown and tardiness in the process and the limitations of federal budget data, there are a number of ways to improve budget process and accounting in order to facilitate better decision making.
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.
Today, the Congressional Budget Office released their score of the proposal from Majority Leader Harry Reid (D-NV) to renew extended unemployment benefits in concert with other reductions in spending.
As part of the bipartisan deal to end the government shutdown and avoid default, a budget conference was established. The purpose of this conference is to reconcile the House and Senate budget resolutions passed earlier this year, and optimally reach an agreement on government funding levels and how to set the country on a fiscally sustainable long-term path.
Update: The Obama Administration has issued a veto threat for the bill, instead preferring that Congress pass a clean CR and debt ceiling increase.
While it is incredibly disappointing that elected officials in Washington failed to avoid a government shutdown, attention is quickly turning towards raising the federal debt ceiling, which currently stands at $16.699 trillion.
Congress faces a number of looming fiscal crises this fall, and the first obstacle is just around the corner -- if lawmakers fail to pass legislation to fund federal programs before September 30, the government will shut down. Today, CRFB released a new Q&A for understanding government shutdowns and related issues, including continuing resolutions and the federal appropriations process. This new resource also provides a historical and legislative background to the upcoming fiscal
With the debt limit approaching and another showdown looming, the focus of some policymakers may naturally turn to how to avoid a similar potentially damaging impasse in the future. In that vein, Rep. Scott Peters (D-CA) has introduced a bill which addresses both the need to raise the debt limit and the need to put the debt on a sustainable path.
This weekend in The New York Times, former Chairman of the Council of Economic Advisors Glenn Hubbard and the Hudson Institute's Tim Kane challenged both parties' approach to dealing with one of our of nation's most important problems and suggested ways to help maintain fiscal discipline.