The FY 2015 "Budget": The Proposals and Real Reform
The FY 2015 “Budget”
The Proposals and Real Reform
Dr. Jason J. Fichtner
Senior Research Fellow
April 15, 2014
What we’re going to discuss today:
• Where we are: CBO baseline – past, present
• FY15 “budgets”
• What’s driving our fiscal condition
• The real bottom line
• Let’s discuss budget process reform
Interest Costs Crowd Out Other Government Spending
A Huge Deficit Would Remain, Even If Any One of
These Steps Were Taken:
Source: Office of Management and Budget, The New York Times
Based on fiscal year 2010 appropriations and disclosure reports from members
of Congress who received spending earmarks for special projects.
Budget Policy is Backwards – Opposite of Family Budgeting – Policy
drives Budget; Not Budget drives Policy
Entitlements take up 2/3 of Budget – not much discretionary
If Congress wants to spend…it will spend
PAYGO / CUTGO – 2nd best solutions
Scorecard to Zero
Phase-In, Phase-Out, Expiration
Balanced Budget Amendment?
Need for 2-Year Budget?
Truth in Accounting?
Bring Back Earmarks?
Budget for Entitlements?
Revisit 1974 Budget Act?
Observations and Possible Reforms
Previous Capitol Hill Campus Events on the Budget by Dr. Fichtner
All Videos: http://mercatus.org/video/author/1000998