{"id":2321775,"date":"2024-08-09T07:39:58","date_gmt":"2024-08-09T11:39:58","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/a-happy-50th-birthday-for-the-congressional-budget-process-washington-examiner\/"},"modified":"2024-08-09T07:49:56","modified_gmt":"2024-08-09T11:49:56","slug":"a-happy-50th-birthday-for-the-congressional-budget-process-washington-examiner","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/a-happy-50th-birthday-for-the-congressional-budget-process-washington-examiner\/","title":{"rendered":"A happy 50th birthday for the congressional budget process &#8211; Washington Examiner"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">24<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fa-happy-50th-birthday-for-the-congressional-budget-process-washington-examiner%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2321775&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>The \u200darticle discusses \u200bthe 50-year anniversary of the congressional budget process, \u200bestablished by the Congressional Budget and Impoundment Control Act of 1974, underscoring its evolving challenges. Following the White\u2063 House\u2019s recent mid-session review that projected a $1.87 trillion deficit for 2024, it revisits how this budgeting framework aimed to enforce fiscal responsibility, mandating a systematic process \u2062for Congress to review the president&#8217;s budget and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/dems-spending-bill-grants-millions-to-left-wing-organizations-institutions\/\" title=\"Dems&#039; Spending Bill Grants Millions to Left-Wing Organizations, Institutions\">set spending levels<\/a>. Initially, the act improved budget \u2062management, but over the years, it has been increasingly undermined by \u200blate submissions, unrealistic projections, and a tendency for Congress to approve generous budgets without grounding in reality. Critics blame the inherent complexities and rapid consensus requirements of the budgeting process, which have led to recurring deficits and fiscal mismanagement. The piece reflects on the \u200blast time the process was successfully followed in 1997\u2063 and the difficulties lawmakers face due to rising entitlement costs that complicate efforts to maintain a sustainable \u200dbudget.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><\/p>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-header-search-button-mob dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-mobile-search-icon td-icon-search\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div class=\"tdb-drop-down-search\" aria-labelledby=\"td-header-search-button\">\n<div class=\"tdb-drop-down-search-inner\">\n<form method=\"get\" class=\"tdb-search-form\" action=\"https:\/\/www.washingtonexaminer.com\/\"><\/form>\n<div class=\"tdb-aj-search\"><\/div>\n<\/div>\n<\/div>\n<p><a href=\"http:\/\/www.washingtonexaminer.com\/#\" role=\"button\" aria-label=\"Search\" class=\"tdb-head-search-btn dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-search-icon td-icon-search\"><\/i><\/a><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div class=\"tdb-sacff-txt\">Magazine &#8211; Washington Briefing <\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<h1 class=\"tdb-title-text\">A happy 50th birthday for the congressional budget process<\/h1>\n<div><\/div>\n<div class=\"tdb-title-line\"><\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div id=\"Brid_1696128\" class=\"tpd-featured-video bridtv\"><\/div>\n<p><a href=\"https:\/\/www.washingtonexaminer.com\/tag\/joe-biden\/\" target=\"_blank\" rel=\"noopener\" title>President Joe Biden&rsquo;s<\/a> White House recently delivered to Congress its <a href=\"https:\/\/www.whitehouse.gov\/wp-content\/uploads\/2024\/07\/msr_fy2025.pdf\" target=\"_blank\" rel=\"noopener\" title>&ldquo;Mid-Session Review&rdquo;<\/a> of the federal budget. The bottom line in this late July document was bad: The deficit for 2024 is projected to be $1.87 trillion and the nation likely will be <a href=\"https:\/\/budget.house.gov\/press-release\/us-national-debt-surpasses-35-trillion\" target=\"_blank\" rel=\"noopener\" title>$37 trillion<\/a> in debt by the end of the year.<\/p>\n<p>This news arrived just one week after the 50th birthday of <a href=\"https:\/\/www.congress.gov\/bill\/93rd-congress\/house-bill\/7130\" target=\"_blank\" rel=\"noopener\" title>the law<\/a> that created the congressional budget process. <a href=\"https:\/\/www.washingtonexaminer.com\/news\/campaigns\/presidential\/3063775\/what-is-the-25th-amendment\/\" target=\"_blank\" rel=\"noopener\" title>President Richard M. Nixon<\/a> <a href=\"https:\/\/www.presidency.ucsb.edu\/documents\/statement-about-the-congressional-budget-and-impoundment-control-act-1974\" target=\"_blank\" rel=\"noopener\" title>hailed<\/a> the Control Budget and Impoundment Act&rsquo;s passage in his July 12, 1974 signing statement.<\/p>\n<p>&ldquo;I commend the Congress for this landmark legislation,&rdquo; Nixon said. &ldquo;&hellip; This bill will allow the Congress to step up to full and equal responsibility for controlling Federal expenditures.&rdquo;<\/p>\n<figure class=\"wp-block-image size-full\"><figcaption class=\"wp-element-caption\">President Richard Nixon (seated) signs a major budget process bill on July 12, 1974. (AP Photo)<\/figcaption><\/figure>\n<p>The law significantly upgraded Congress&rsquo;s procedures for taxing and spending. Hitherto, as Nixon observed, Congress would pass spending bills with &ldquo;no system for establishing priorities relating to an overall spending goal.&rdquo; That made for lots of red ink.<\/p>\n<p>The 1974 act tried to fix that by binding Congress to a rational process. The president would submit his proposed budget in February. Congress would review it and utilize revenues and expenditures estimates from the newly created Congressional Budget Office. The chambers would then pass a budget resolution in April to set spending levels for the government. Legislators subsequently would <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/congress-scrambles-to-avoid-shutdown-after-overcoming-border-security-hurdle\/\" title=\"Congress hustles to avert shutdown, clearing border security obstacle\">enact spending legislation<\/a> whose costs fell within the figures set in the resolution by Sept. 30. Midway through the year, the president would submit his midyear review, and Congress could use a fast-track reconciliation process to adjust spending and taxes to shift economic forecasts.<\/p>\n<p>The process worked <a href=\"https:\/\/www.politico.com\/agenda\/story\/2015\/10\/richard-nixon-congressional-budget-control-act-history-000282\/\" target=\"_blank\" rel=\"noopener\" title>decently<\/a> for a few years before troubles began. Presidents were often late to submit their budgets and treated them more as messaging documents than serious opening bids in their negotiations with Congress. Presidents regularly treat budget reconciliation as a means for forcing through <a href=\"https:\/\/en.wikipedia.org\/wiki\/Reconciliation_(United_States_Congress)#:~:text=Bills%20passed%20using%20the%20reconciliation,the%20Tax%20Cuts%20and%20Jobs\" target=\"_blank\" rel=\"noopener\" title>partisan policies<\/a>, such as the Biden administration&rsquo;s budget-busting Inflation Reduction Act of 2022, that would be thwarted by a Senate filibuster.<\/p>\n<p>Legislators have done no better. They often approve budget resolutions loaded with unrealistic assumptions. Former Rep. David Obey, who was chairman of the House Appropriations Committee for two stints, <a href=\"https:\/\/amzn.to\/3zVsV2P\" target=\"_blank\" rel=\"noopener\" title>groused<\/a> in 1982: &ldquo;The only kind of budget resolution you can pass today is one that lies. &hellip; You cannot get members under the existing system to face up to what the real numbers do. You always end up having phony economic assumptions and all kinds of phony numbers on estimating.&rdquo; Some years, Congress does not even bother to adopt a budget. Legislators regularly appropriate money whether the money has previously been authorized by law, as the budget process requires &mdash; or not. Or they approve additional spending under &ldquo;emergency&rdquo; supplemental acts.<\/p>\n<figure class=\"wp-block-image size-full\"><figcaption class=\"wp-element-caption\">President Clinton holds a copy of his fiscal 1998 federal budget while meeting reporters in the Old Executive Office Building in Washington Thursday, Feb. 6, 1997. (AP Photo\/Ron Edmonds)<\/figcaption><\/figure>\n<p>The last time the president and Congress followed the CBA was in 1997 when a Republican-led Congress and Democratic President Bill Clinton agreed on a budget that <a href=\"https:\/\/www.govexec.com\/management\/2023\/02\/i-helped-balance-federal-budget-1990s-heres-just-how-hard-it-will-be-gop-achieve-same-rare-feat\/382443\/\" target=\"_blank\" rel=\"noopener\" title>produced a surplus<\/a> &mdash; the first of four straight black ink years before sinking deeply back into the red. Since then, legislators have annually voted to increase deficits by cutting taxes and increasing spending. This year, the House enacted only <a href=\"https:\/\/crsreports.congress.gov\/AppropriationsStatusTable\" target=\"_blank\" rel=\"noopener\" title>five of the 12 spending bills<\/a> and the Senate has passed none. Both chambers are out of session until Sept. 9.<\/p>\n<p>So why did such a well-thought-out process go wrong? Opinions vary.<\/p>\n<p>Critics often point to the budget process itself. They argue that the act demands a lot of rapid agreement among disputatious legislators in a short amount of time. They also say the CBA largely sidelined the president from the process. &ldquo;The president has to provide a safe harbor, so to speak, for Congress, for Congress to make tough decisions,&rdquo; <a href=\"https:\/\/www.understandingcongress.org\/podcast\/can-congress-budget-with-allen-schick\/\" target=\"_blank\" rel=\"noopener\" title>observed<\/a> Allen Schick, an emeritus professor at the University of Maryland and budget scholar who helped write the CBA. Only the chief executive can use the bully pulpit to persuade the public.<\/p>\n<p>The CBA&rsquo;s approach to Medicare and other entitlement programs also is problematic. &ldquo;If the purpose of the budget process is to set up a comprehensive process to help Congress set priorities and trade off all spending and taxes, then its treatment of entitlement costs fails that standard,&rdquo; notes <a href=\"https:\/\/manhattan.institute\/person\/brian-riedl\" target=\"_blank\" rel=\"noopener\" title>Brian Riedl<\/a>, a budget policy expert at the Manhattan Institute. &ldquo;Discretionary spending must be re-appropriated from scratch every year. But lawmakers can do nothing and entitlement costs will expand as much as 7% annually.&rdquo;<\/p>\n<p><a href=\"https:\/\/www.washingtonexaminer.com\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><\/strong><\/a><\/p>\n<p>Others blame the people and the culture on Capitol Hill. <a href=\"https:\/\/www.mercatus.org\/scholars\/veronique-de-rugy\" target=\"_blank\" rel=\"noopener\" title>Veronique de Rugy<\/a>, a senior fellow in political economy at the Mercatus Center, told the <em>Washington Examiner<\/em> the 1974 act &ldquo;only works to the extent that [legislators] &hellip; believe it is wrong to break the law.&rdquo; Until the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/nbc-poll-shows-gop-becoming-party-of-blue-collar-workers\/\" title=\"NBC Poll Shows GOP Becoming Party Of Blue-Collar Workers\">mid-20th century<\/a>, legislators mostly <a href=\"https:\/\/amzn.to\/3vlBk9J\" target=\"_blank\" rel=\"noopener\" title>shared a belief<\/a> in balancing the budget. They would run deficits during national crises, such as the Great Depression, but afterward would cut spending and raise taxes to restore fiscal balance.<\/p>\n<p>Whether it is the process or the people, the public is distressed. Gallup found <a href=\"https:\/\/news.gallup.com\/poll\/147626\/federal-budget-deficit.aspx\" target=\"_blank\" rel=\"noopener\" title>77% of people<\/a> said they worried about our nation&rsquo;s red ink &ldquo;a great deal&rdquo; or &ldquo;a fair amount.&rdquo; This is unsurprising: They and their descendants are on the hook for the $37 trillion in debt.<\/p>\n<p><em>Kevin R. Kosar (@kevinrkosar) is a senior fellow at the American Enterprise Institute and edits UnderstandingCongress.org.<\/em><\/p>\n<p> <script data-cfasync=\"false\" src=\"http:\/\/www.washingtonexaminer.com\/cdn-cgi\/scripts\/5c5dd728\/cloudflare-static\/email-decode.min.js\"><\/script><script>!function(){var g=window;g.googletag=g.googletag||{},g.googletag.cmd=g.googletag.cmd||[],g.googletag.cmd.push(function(){g.googletag.pubads().setTargeting(\"has-featured-video\",\"true\")})}();<\/script><script>var _bp=_bp||[];_bp.push({\"div\":\"Brid_1696128\",\"obj\":{\"id\":\"27789\",\"width\":\"1280\",\"height\":\"720\",\"stickyDirection\":\"below\",\"video\":\"1696128\"}});<\/script><script defer src=\"https:\/\/services.brid.tv\/player\/build\/brid.min.js\"><\/script><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>**Magazine &#8211; Washington Briefing: Celebrating 50 Years of the Congressional Budget Process**<\/p>\n<p>Recently, President Joe Biden&#8217;s administration presented its &#8220;Mid-Session Review&#8221; of the federal budget to Congress. The key takeaway from this late July report was concerning: the projected deficit for 2024 is $1.87 trillion, and national debt is expected to reach $37 trillion by year-end. This announcement came just a week after the 50th anniversary of the legislation that established the congressional budget process. When President Richard M. Nixon signed the Control Budget and Impoundment Act on July 12, 1974, he praised Congress for this significant legislation, stating it would enable them to take full responsibility for managing federal spending.<\/p>\n<p>The law greatly improved Congress&#8217;s procedures regarding taxation and expenditure. Prior to this act, as Nixon noted, there was no systematic approach for prioritizing overall spending goals in Congress, leading to substantial deficits. The 1974 act aimed to address these issues by instituting a structured process where the president would submit a proposed budget in February; Congress would then review it using estimates from the newly established Congressional Budget Office (CBO). By April, both chambers were expected to pass a budget resolution that set government spending levels; subsequently, they had until September 30 to enact spending legislation within those limits.<\/p>\n<p>Midway through each fiscal year, presidents were required to submit a midyear review allowing Congress an expedited reconciliation process for adjusting expenditures and taxes based on updated economic forecasts. Initially, this system functioned reasonably well but began facing challenges over time.<\/p>\n<p>Presidents frequently submitted their budgets late and often treated them more as political statements than serious proposals for negotiation with Congress. They also tended to use budget reconciliation as a tool for pushing through partisan policies\u2014like Biden\u2019s Inflation Reduction Act of 2022\u2014that might otherwise be blocked by Senate filibusters.<\/p>\n<p>Congressional behavior has not been much better; lawmakers often approve unrealistic budget resolutions filled with dubious assumptions about revenue and expenses. Former Rep. David Obey expressed frustration in 1982 about how only misleading resolutions could be passed under current conditions due to members&#8217; reluctance to confront actual financial realities.<\/p>\n<p>In some years, Congress has even neglected adopting an official budget altogether while still appropriating funds without prior legal authorization or passing additional emergency funding measures when needed.<\/p>\n<p>The last instance where both branches adhered strictly to CBA guidelines occurred in 1997 when a Republican-led Congress collaborated with Democratic President Bill Clinton on a balanced budget that resulted in surpluses\u2014a rare achievement before returning deeply into deficit territory thereafter.<\/p>\n<p>Since then, legislators have consistently voted for increased deficits through tax cuts coupled with heightened spending levels without following proper budgeting protocols\u2014this year alone saw only five out of twelve necessary appropriations bills passed by House representatives while none made it through Senate approval before recessing until September.<\/p>\n<p>So what led such an initially promising framework astray? Perspectives differ widely among critics who argue that rapid consensus among contentious lawmakers is challenging under tight deadlines imposed by CBA requirements while sidelining presidential influence during negotiations hampers effective decision-making processes overall\u2014something Allen Schick highlighted regarding executive leadership roles essential during tough choices faced by legislators today.<\/p>\n<p>Moreover issues surrounding entitlement programs like Medicare complicate matters further since discretionary allocations must be re-evaluated annually whereas entitlement costs can rise significantly without legislative action taken each cycle according Brian Riedl\u2019s analysis at Manhattan Institute pointing out inherent flaws within existing structures designed around comprehensive budgeting practices intended originally meant prioritize all forms taxation alongside expenditures equally across board instead leaving gaps unaddressed over time leading ultimately unsustainable growth patterns observed recently across various sectors economy today prompting public concern reflected Gallup survey indicating high levels anxiety surrounding national debt burden felt citizens nationwide especially given looming obligations future generations will inherit stemming directly past decisions made present day leaders Capitol Hill whether procedural shortcomings cultural attitudes prevalent amongst elected officials themselves play larger role determining outcomes seen thus far remains open question worth exploring further detail moving forward into next phase discussions surrounding fiscal responsibility governance America going ahead! <\/p>\n<p>Kevin R. Kosar (@kevinrkosar) serves as senior fellow at American Enterprise Institute editing UnderstandingCongress.org<\/p>\n","protected":false},"author":2469,"featured_media":2321776,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/08\/WB.Congress.081424.webp","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[37647,37648,37650,37649,35107],"class_list":["post-2321775","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner","tag-50thbirthday","tag-congressionalbudget","tag-governmentfinance","tag-publicpolicy","tag-washingtonexaminer"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/08\/WB.Congress.081424.webp","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2321775","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2469"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2321775"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2321775\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2321776"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2321775"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2321775"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2321775"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}