FY 2014 Budget
Update: This blog has been updated since its original posting to incorporate the House Democratic, Republican Study Commitee, and Senator Rand Paul (R-KY) budgets.
Continuing in our analysis of the FY 2014 budget resolutions, we will be discussing the things in the budgets that the authors didn't tell you. There were a lot of specifics in these plans that were left up to committees to figure out or for policymakers to work out down the road. Doing so is not really a gimmick, since budget resolutions cannot enact any actual policies; rather, they create processes or parameters within which Congress works.
Although the budget resolutions out now take a variety of paths to deficit reduction, we've noticed something that all have in common: they all succeed in putting debt on a downward path as a share of the economy.
Rep. Chris Van Hollen (D-MD), Ranking Member of the House Budget Committee, has released an alternative budget on behalf of House Democrats, "Jobs, Growth, and a Stronger Future." His budget succeeds in putting debt on a slight downward path with $1.8 trillion of savings compared to current law, or $2.3 trillion compared to the CRFB Realistic baseline.
Update: This post has been updated to incorporate new numbers for the Congressional Black Caucus budget.
Yesterday, we presented an overview of the Murray budget, describing the policies of the budget and showing savings relative to different baselines. In this blog, we will look closer at where the budget resolution would leave the federal government in terms of its size and the size of its deficits and debt.
Trying to determine the actual level of savings in budget proposals can be confusing, as there is no single agreed-upon set of baseline assumptions to follow. Both Congressman Ryan (R-WI) and Senator Murray (D-WA) use their own baselines from which to measure savings, which differ in a couple ways from current law or CRFB Realistic.
After seeing Congressman Paul Ryan's (R-WI) budget yesterday, now we know the approach favored by the Senate Democrats. Senate Budget Chair Patty Murray (D-WA) has just released her FY 2014 budget, "Restoring the Promise of American Opportunity," outlining a package with a mix of spending cuts and revenue increases through tax expenditure reductions.
The Bipartisan Policy Center has a detailed look at the Ryan budget, comparing it on various budget metrics to the most recent Debt Reduction Task Force plan ("Domenici-Rivlin 2.0"). The numbers show not only overall spending, revenue, deficits, and debt numbers but also how spending in different parts of the budget compares.