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Budget Analyst -- Federal Agency Money Matters

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August 1999 opinions were:

August 24, 1999 - Vacation time.  A break provides an opportunity to prepare for later action.

August 14, 1999 - More games.  We make preposterous statements because the other side has done so too.

August 1, 1999 - Shutdowns, here we come again!  Everyone has the right answer.

August 24, 1999 - Vacation time.

bulletWith Congress in recess, and the President vacationing, isn't it vacation time, time to relax?  No.  It is time to device tricks not seen before and threats not uttered before in the appropriations and budget process.  The way things stand, if the majority in Congress has its way it loses, and if the President has his way, the Congressional majority loses.  Not a good prospect if you are a member of the majority.  So something new, never seen before is likely to come into play when Congress opens for business after Labor Day.  It is your guess as to what this may be.  Meanwhile, I will take some time to relax; somebody in the budget process has to.

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August 14, 1999 - More games.

bulletOMB Director states that agencies will be cut 50% if GOP tax cuts are enacted.   Since no one wants this (who wants to cut defense by 50%?), deficit financing would come back.  All the deficit reduction gains of the last few years would be lost.   This is another of the threats for October, to complement the appropriations tricks aimed at making the issue go away.

 

bulletOf course, it you are in an agency you cannot take joy from this.  You may enjoy the debate and the gamesmanship, but it will all come down to a "train wreck," or closing down the government again.

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August 1, 1999 - Shutdowns, here we come again!  Everyone has the right answer.

bulletBoth Republicans and Democrats want to have their way, and each insists the other is wrong.  Votes on the tax bills and the actions (or lack thereof) on Medicare and patients' rights illustrate the problem.  And it all spills over into appropriations.   When you are dealing with a fantasy surplus, and use it to justify whatever you want to do, not enough people in Congress will agree sufficiently to pass any legislation.   When you couple this situation with the President's veto power, nothing gets done.   Shutdowns, here we come again.

 

bulletThe fantasy surplus, which is driving all the euphoria about tax cuts, is based on the assumption that the 1997 budget deal is real, and will be implemented.  Implementing the deal means that programs have to be cut to levels that no one wants.  This is the reason for resorting to tricks in appropriations - most agree that the government (defense, veterans, environment, etc.) could not function at the levels set in the 1997 agreement.  It is a fantasy to vote for expenditures that exceed those of the 1997 agreements, vote for the tax cuts (which would wipe out the surplus), and pretend that there is a surplus.  Of course, appropriations is doing what it is doing because doing otherwise would eliminate the government's vital functions.  The whole things does not compute for this analyst, but it seems to do in politics.  In budget analysis things have to add up.  Not in Congress.

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