Congress is tied up now with the President's vast and vastly important economic stimulus package, but this is slowing action on two other vital budget matters.
Almost all federal agencies are operating under a continuing funding resolution which allows them to spend money only at the same rate they were spending it in the last fiscal year, which ended September 30, 2008, more than four months ago. This CR (Continuing Resolution), as it is called, expires on March 6. Neither the White House, nor either of the Appropriations Committee chairmen, has released any plan for the omnibus (one big bill for everything, rather than several separate bills for various parts of the government) appropriations bill for Fiscal Year (FY) 2009 -- although much work is going on behind the scenes. Congress Daily reports that there may be action next week on the FY 2009 omnibus, but that the March 6 deadline may not be met and a new CR may be needed. This is not good news for Social Security which will certainly be getting a good deal more money once the FY 2009 appropriation is passed.
The FY 2010 appropriations are also being held up. The new administration needs to get a budget ready to submit to Congress. This is always a challenge but it is especially a challenge with the Office of Management and Budget (OMB) already working overtime on the economic stimulus and the FY 2009 budget. OMB is not promising a full budget proposal for FY 2010 until March, which makes it hard for Congress to finish its appropriations work in time to accomplish what everyone desires -- passage of appropriations bills before the beginning of FY 2010, October 1, 2009.
Complicating everything for Social Security is the fact that Social Security Commissioner Michael Astrue is a Republican trying to work with a Democratic OMB and a Democratic Congress. Astrue's willingness to even ask for the sort of budget his agency needs is open to question. To what extent OMB and Congress will listen to what he has to say about his agency's appropriation is also open to question. Outside groups are lobbying on Social Security's appropriation and they are being heard, but there is no sign of any coordination between these groups and Commissioner Astrue.
What happens on these bills will have a dramatic effect upon the quality of service that the Social Security Administration offers the public and the working environment for Social Security employees. As wonkish and confusing as this may be, if you are reading this blog this is very important to you.
Almost all federal agencies are operating under a continuing funding resolution which allows them to spend money only at the same rate they were spending it in the last fiscal year, which ended September 30, 2008, more than four months ago. This CR (Continuing Resolution), as it is called, expires on March 6. Neither the White House, nor either of the Appropriations Committee chairmen, has released any plan for the omnibus (one big bill for everything, rather than several separate bills for various parts of the government) appropriations bill for Fiscal Year (FY) 2009 -- although much work is going on behind the scenes. Congress Daily reports that there may be action next week on the FY 2009 omnibus, but that the March 6 deadline may not be met and a new CR may be needed. This is not good news for Social Security which will certainly be getting a good deal more money once the FY 2009 appropriation is passed.
The FY 2010 appropriations are also being held up. The new administration needs to get a budget ready to submit to Congress. This is always a challenge but it is especially a challenge with the Office of Management and Budget (OMB) already working overtime on the economic stimulus and the FY 2009 budget. OMB is not promising a full budget proposal for FY 2010 until March, which makes it hard for Congress to finish its appropriations work in time to accomplish what everyone desires -- passage of appropriations bills before the beginning of FY 2010, October 1, 2009.
Complicating everything for Social Security is the fact that Social Security Commissioner Michael Astrue is a Republican trying to work with a Democratic OMB and a Democratic Congress. Astrue's willingness to even ask for the sort of budget his agency needs is open to question. To what extent OMB and Congress will listen to what he has to say about his agency's appropriation is also open to question. Outside groups are lobbying on Social Security's appropriation and they are being heard, but there is no sign of any coordination between these groups and Commissioner Astrue.
What happens on these bills will have a dramatic effect upon the quality of service that the Social Security Administration offers the public and the working environment for Social Security employees. As wonkish and confusing as this may be, if you are reading this blog this is very important to you.
Since the stimulus bill is a big waste of money, they need to get the 2009 appropriations passed and start on the 2010 bills.
ReplyDeletehttp://www.washingtonpost.com/wp-dyn/content/article/2009/02/01/AR2009020101001.html?sub=AR
Too Little Bang for The Bucks
By Robert J. Samuelson
Monday, February 2, 2009
In its releases, the White House gushes superlatives. The stimulus program, says one fact sheet, "launches the most ambitious school modernization program on record," "computerizes every American's health record in five years" and "undertakes the largest weatherization" -- insulation -- "program in history." What a bonanza of good stuff!
Unfortunately, investing in tomorrow won't automatically stimulate the economy today. The $819 billion program passed by the House would only slowly provide stimulus. The Congressional Budget Office estimates that in fiscal 2009 (through this September) about 21 percent of the new spending and tax cuts would flow to the economy. For 2010, the estimate is an additional 44 percent. The total of 65 percent means that, by the CBO's estimate, about a third of the $819 billion package would be spent after fiscal 2010. That falls far short of Obama's stated goal of 75 percent in the first 18 months.
The decision by Obama and Democratic congressional leaders to load the stimulus with so many partisan projects is politically shrewd and economically suspect. The president's claims of bipartisanship were mostly a sham, as he skillfully maneuvered Republicans into a no-win position: Either support a Democratic program, or oppose it --and seem passive and uncaring.
Obama's political strategy fails to address adequately the economy's present needs while also worsening the long-term budget outlook. Some of his "temporary" spending increases in practice will almost certainly become permanent. There were tough choices to be made -- and Obama ducked them.