FY 2011 Budget
With the end of September comes the end of the fiscal year, so it's time to look back on the year that was. We've had a whirlwind year of exciting developments in the world of fiscal policy, both good and bad.
Clutch Goals -- The U.S. Women’s Soccer team scored an improbable victory over Brazil on Sunday in the Women’s World Cup, overcoming a scoring and manpower deficit with a last-minute goal and sealing the victory through penalty kicks. A similar storyline is playing out in Washington involving a different deficit -- the federal budget deficit. It looks as if negotiations to raise the statutory debt limit and reduce the deficit will also come down to the wire.
In the past few days, CBO has released a few documents that might be of interest to budget wonks.
The first is a further analysis of the final FY 2011 spending agreement that was passed a month ago. The estimate not only shows CBO's updated discretionary spending estimates for this year, but also what discretionary spending will be over ten years using CBO's baseline convention of inflation growth.
Happy Tax Day – Today is about the consequences of procrastination for the great many waiting until the last minute to file their federal income tax returns. It is also the time when the most consideration is given to the costs and benefits of the federal government.
The House and Senate today approved of legislation funding the federal government for the rest of the fiscal year, ratifying the agreement reached late last week that averted a government shutdown. For good measure, lawmakers flirted with one more deadline as the “bridge CR” that has been financing government operations since last Friday night’s last-minute deal was set to expire tomorrow.
Deal on FY 2011 Spending Reached – A government shutdown was averted on Friday by an 11th hour agreement on federal spending for the rest of the fiscal year. The deal will cap 2011 appropriations at just under $1.050 trillion, reducing spending by about $38 billion from current levels. Congress passed a one week extension shortly after the deal was announced to allow time for the agreement to be drafted into legislation and enacted. The House is scheduled vote on the legislation enacting the budget agreement on Wednesday, with the Senate likely voting afterwards.
Keeping us on the edge of our seats until the very end, Speaker John Boehner (R-OH) announced late Friday night that a deal had been reached on spending levels for the current fiscal year, just an hour before a government shutdown was set to occur. Though the President and leaders in Congress agreed to a six-month CR, a one-week CR was enacted to give Congress time to put the agreement into legislative language.
With a possible federal government shutdown looming in only a few short hours, it is worth noting some of the costs if such an action occurs. With a lot hanging in the balance, a shutdown could have some serious consequences.
Update 04-09-11 10:15 am: The shutdown has been averted. Details here.
Update 6:51 pm: Conflicting reports on whether deal close on Planned Parenthood rider. Check out @BudgetHawks on Twitter for more updates tonight.
Update: 5:55 pm: Sen. Harry Reid orginally scheduled to speak on Senate floor at 6 pm. Now will happen at 8 pm at earliest.
House GOP Budget Unveiled – On Tuesday, House Budget Committee Chairman Paul Ryan (R-WI) unveiled his fiscal year 2012 budget proposal, titled “The Path to Prosperity.” It is the Republican response to the White House budget released last month. The House Budget Committee will mark-up the bill today in an all-day session with the goal of voting on the House floor next week.