Thursday, February 08, 2018

U.S. Congress Poised to Finally Pass a Long-term Budget

I wholeheartedly applaud the Congress for finally getting about the business of doing their constitutional duty, that is to provide the framework for a long-term federal budget.  It gives me hope to see the end of this era of short-term budget resolutions --where each side holds the budget process hostage in a partisan effort to advance their pet projects-- might actually be coming to a much needed end.  These short term CRs have been preventing the Congress from doing their job properly since 1996.  The current budget agreement would span almost a full  two-year period, from I understand.  This is truly remarkable and long overdue!

I am glad the leaders in each chamber are succeeding in keeping immigration out of the current negotiations, because the reality is that immigration IS NOT a budget issue.  I agree with Speaker Ryan that the Congress needs to pass a long-term budget so that they are then free to pursue a separate comprehensive immigration reform bill, which would include DACCA considerations.

The above being said, I am a bit confused by the language of some of the dissent I am hearing from members of congress on both sides of the aisle.  Some members are speaking as if this budget is actually an appropriation, that is to say dollars being 'physically' distributed into various department accounts.  My understanding, however, is that the current budget provides only allocations (i.e., ceilings on spending), thereby providing the framework for future appropriations discussions on actual spending.  Such that to my way of thinking, you ought to take the good favor of Democrats and Republicans actually coming together to accomplish something very powerful and you move it across the finish line --preferably before midnight tonight, because there are real people on the other side of these negotiations who stand to lose a lot from further delay. There is plenty of time for grand-standing on deficit spending during the later appropriations process.  Fund the shredded military budget, provide for disaster relief and worry about entitlement reforms later.  Am I completely off-base here???

2/12/2018  Some update terminology FYI:  This most recent 2-year Congressional Bill was an "allocation spending bill", meaning it set the framework (most notably ceilings in key budget areas) for a two-year spending plan.  Future Congressional negotiations will dole out the actual currency to each department, states and municipalities.  This is where the real wheeling and dealing will ensue.  For in order to truly address deficit spending some hardcore, long-term entitlement reform will need to take place. Furthermore, just because a ceiling was set in a given area, does not mean that the Congress needs to appropriate funds that will reach a given ceiling --although, historically Congress does tend to spend what they allocate.  But the good news is that the U.S. Congress finally did it! Congress men and women, Democrat and Republican alike, somehow managed to put aside bi-partisan feuding long enough to reach an agreement on a long-term spending bill.  Rather miraculous, in and of itself, if you ask me --since this has not happened since 1996.  No more government shutdowns every few months.  The U.S. Congress can finally set about seeing to the business they were elected for.  Nicely done!

No comments: