Behind the Federal Budget Process

San Diego Union-Tribune ^ | May 5, 2005 | David S. Broder

[Scenic Sounds]

Rep. Adam Putnam, a Florida Republican, is only 30 but already serving in his third term in the House of Representatives. So it may have been just youthful exuberance which caused him to exclaim, "It is a great day in this House and a great day for our nation and an honor to kick off the debate about the fiscal blueprint, that our conference of the House and the Senate has come together to set forth the priorities for our nation."

Putnam was talking about the budget resolution –

[snip]

What does it do about the deficits? If you believe Putnam and House Majority Leader Tom DeLay and other Republicans, this budget "reduces the deficit in half over four years."

But if you read the fine print, here's what you find: The budget envisages the national debt increasing by $683 billion next year; by $639 billion the second year; by $606 billion the third year; by $610 billion the fourth year; and by $605 billion the fifth year.

As Sen. Kent Conrad of North Dakota, the ranking Democrat on the Budget Committee asked, "Where is the deficit cut in half?"

What does the budget do for Social Security? It transfers the roughly $150 billion "surplus" in Social Security taxes over this year's Social Security payments to help pay the bills for this year's government spending and to finance the additional $106 billion in tax cuts the president wants to hand out.

[snip]

[Scenic Sounds]

"What does it do about the deficits? If you believe Putnam and House Majority Leader Tom DeLay and other Republicans, this budget "reduces the deficit in half over four years.

But if you read the fine print, here's what you find: The budget envisages the national debt increasing by $683 billion next year; by $639 billion the second year; by $606 billion the third year; by $610 billion the fourth year; and by $605 billion the fifth year."

Ugh! Has budgeting in this country ever been worse?

[CharlesWayneCT]

I believe their number include the Social Security trust fund, which does increase the national debt but is not officially reported as part of the deficit because the money is owed to the government so it goes on the books as both a debt and an asset.