Budget Process and Rules
The International Monetary Fund recently published a study on budget institutions in G-20 countries. The study takes stock of these countries' progress in reforming their budget institutions and examines whether having strong budget institutions has helped countries tackle their budget challenges in the aftermath of the financial crisis. While it is difficult to measure the impact of institutional arrangements on budgetary outcomes, the IMF's verdict is that they do matter.
Credit programs involving loans and loan guarantees are accounted for differently than most other programs in the federal budget. Whereas other programs record outlays and revenue as cash goes out and comes in, the cost of credit programs are calculated by recording the lifetime cost of the loan/guarantee in the year it is originated. However, a new report from the Congressional Budget Office (CBO) raises questions as to whether we are measuring these programs appropriately.
Congressman Jim Renacci (R-OH) introduced the The Federal Financial Statement Transparency Act of 2014 today. This legislation would make major changes to the composition and structure of the Federal Accounting Standards Advisory Board (FASAB), which recommends the standards used in the federal government's financial statements.
Appropriations season is in full swing. The House has already passed the Legislative Branch and Military Construction-Veterans Affairs bills, while the Senate Appropriations Commitee is scheduled to officially set 302(b) allocations and mark up the Military Construction-VA and Agriculture bills this Thursday.
Congressman Reid Ribble (R-WI) and Congressman Mark Pocan (D-WI) introduced the Long-Term Studies of Comprehensive Outcomes and Returns for the Economy Act, or Long-Term SCORE Act, today.
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.