CRFB Releases and Events
On May 19, the debt ceiling was reinstated as the Treasury Department began to use extraordinary measures to prevent running up against the debt limit. Extraordinary measures are expected to be exhausted sometime this fall, also when the current continuing resolution (CR) funding the government is due to expire. In addition, both parties are looking to alter the sequester in some form for future years and will have to figure out what to do with it then.
On Friday, the Social Security and Medicare Trustees will issue their latest report, showing the finances of the two programs and their related trust funds over the next 75 years. The following Tuesday, June 4 at 8 AM Eastern time, the Committee for a Responsible Federal Budget, the Mercatus Center, and Third Way will hold an event discussing the implications of the report for the future of Social Security.
In February, we wrote the paper "Our Debt Problems Are Far From Solved," laying out the case for putting debt on a clear downward path as a percent of GDP with $2.4 trillion of additional savings. CBO's improved budget projections have prompted a new round of discussion of what should be the right direction for the budget.
With news yesterday that the Senate might consider a bill to replace the sequester for 2013 with a drawdown of war spending, CRFB reacted in a press release, decrying the gimmick for what it is. The bill would specifically put caps on war spending for FY 2014 through 2016 at the levels called for the President's budget -- drawing down war funding from $97 billion this year to $37 billion in FY 2016.
Yesterday, we took our first look at the President's FY 2014 Budget, which put forward the final White House deficit reduction offer to Speaker Boehner in the fiscal cliff negotiations, along with several new revenue and spending provisions.
It's President's Budget week! On Wednesday, President Obama will release his FY 2014 budget, illustrating another possible path in addition to the already-passed House and Senate budget resolutions.
Earlier this month, we reported on CBO’s updated cost estimate for switching to the chained CPI to provide a more accurate measure of inflation for indexed provisions in the tax code and in spending programs.
As we come closer and closer to the season changing to spring, it's also close to budget season. Both the House and Senate Budget Committee chairs -- Rep. Paul Ryan (R-WI) and Sen. Patty Murray (D-WA), respectively -- are expected to release budget resolutions tomorrow, with mark-ups taking place later this week. Meanwhile the President's budget, delayed due to the late resolution of the fiscal cliff, is expected to be released on April 8.
President Obama was recently quoted in the Washington Post as saying that an additional $1.5 trillion of deficit reduction would hit the $4 trillion total that many have cited as the target for total deficit reduction. While we agree on the enacted savings total, we disagree on the math.