FY 2014 Budget
On Monday, the Office of Management and Budget released its re-estimate of the President's Budget in the Mid-Session Review. OMB's new estimates of the President's plan look worse than they did in April, largely due to change in economic projections. The MSR projects debt to be 75.4 percent of GDP in 2023, compared to 73.0 percent of GDP in the original projections.
Today, the Office of Management and Budget released its Mid-Session Review, revised estimates of the President's 2014 budget incorporating legislative, economic, and technical changes in projections since the budget was released in April. The new estimates show a deterioration in the outlook that CBO's most recent scoring of the President's Budget and slightly worse than OMB's original scoring.
The appropriations process is usually arduous, but this year may be even more so. The largest disagreement between the Senate and House, which is nowhere close to being solved, is how to deal with sequestration. The Senate Appropriations Committee is working from an overall funding level of $1,058 billion for FY 2014, as was set by the Budget Control Act caps without sequestration.
Continuing our analysis of the President's FY 2014 budget proposal, we turn to how the President's budget would affect long-term revenues and spending. As we said last Monday after looking at the GAO's long-term projections of debt and deficits, our debt problem looks much more daunting when projecting beyond the standard ten-year window. With that in mind, it is useful to look at OMB's 75-year projections of the President's Budget.
While we will have detailed analysis of various parts of the President's budget throughout the week and into next week, it is important to first show the big picture of where the budget takes us. The President's budget contains a $1.8 trillion deficit reduction package that is meant to reflect the final White House offer during the fiscal cliff negotiations. When other initiatives and repeal of the sequester are included, the total savings are $1.4 trillion compared to OMB's adjusted baseline.
President Obama has just released his FY 2014 budget proposal, putting forward his last offer in the negotiations leading up to the fiscal cliff, in addition to several new spending and investment priorities that are offset with additional revenues.
We will have further analysis in the coming days, including a comparison between the President's budget and the House- and Senate-passed budget resolutions.
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.
The FY 2014 President's Budget will not be released until next Wednesday, April 10th, but already some details about what will be in the budget have been surfacing.
Over the last few weeks, we've seen several different budget proposals emerge from the Senate and the House, and President Obama is expected to release his FY 2014 budget next week. But while the budgets released offer some good ideas, none seemed to offer the bipartisan "grand bargain" approach that we often argue for here on The Bottom Line. As it turns out, polling suggests Americans may favor the compromise approach over all others.
As the Senate worked on its FY 2014 budget resolution, which passed by a 50-49 vote late last week, hundreds of amendments were filed in a process commonly referred to as “vote-a-rama.” Most of the amendments that actually received a vote were largely symbolic, establishing non-binding “deficit-neutral reserve funds” to make it procedurally easier for Congress to make changes in the future.