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Kristina Rasmussen
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Where Could Congress Cut Spending?


Demian Brady
December 18, 2013

The Senate is expected to pass the Murray-Ryan budget compromise bill as soon as today. As we noted, the bill increases federal spending by $65 billion (75 percent of which will occur in the first two years) by raising budget caps that were agreed to just a few years ago. It also includes offsets of $78 billion over the next 10 years -- three quarters of which occur six to ten years from now. Moreover, nearly half of the savings in the bill are achieved by increasing user fees in a way comparable to a tax increase.

The major flaw of this proposal is that it increases spending now and promises to pay for it years later. By approving this bill, Congress is weakening recently-passed, self-imposed budget limits … so why should taxpayers expect that Congress they will abide to the reductions in this compromise over the long term? Some Members, including Congressman and House Budget Chair Paul Ryan (R-WI), have already signaled that legislators will likely revisit the Cost-of-Living Adjustments, or COLA, slowdown for certain military retirees that was included in the compromise (savings of $1 billion over five years and $6 billion over ten). It is conceivable that similar carve outs will occur as elected officials give in to pressure for more spending.

While it is disappointing that Congress is not choosing to replace the automatic across-the-board sequester caps with an equal amount of upfront targeted spending cuts, unfortunately, it is not surprising. Historical data from BillTally, NTU Foundation's legislative tracking program, shows that Congress produces far more proposals to increase spending than ways to trim the budget. The same trend is observed in this Congress. As of December 17, we have identified 84 savings bills and 424 spending bills in the House and 40 savings bills and 254 spending bills in the Senate. 

A complete list of all the spending reductions is available as an Excel spreadsheet for download, or can be browsed online. The list also includes some savings ideas that were included as partial offsets in bills that would, on net, increase spending. 

NTUF observed that during the 112th Congress, half of all the cut bills were authored during the first six months and 75 percent by the end of the first year, becoming more scarce during the second year. We are still in the process of reviewing and scoring legislation for the current Congress, but so far, the bulk of the savings we identified were introduced during the first six months of the year.

There is certainly no shortage of places Congress could look for more spending reductions in the $3.5 trillion budget. Lots of reference sources are available: from Senator Coburn's (R-OK) Wastebook, to NTU & US PIRG's list of cuts, and the Congressional Budget Office's most recent Budget Options reports on discretionarydefense and mandatory reductions, to name just a few.

As federal spending, debt, and overreach are set to figure more prominently in policy debates and campaigns during this upcoming election year, will taxpayers see their Representatives and Senators drafting more cut proposals in 2014? Stay tuned to find out because NTUF will continue to keep a close watch on Congress throughout the New Year!


 

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