On September 17, 2009 the Peterson-Pew
Commission on Budget Reform hosted its first public event--Beyond PAYGO.
Five panelists discussed recent proposals to gain control over mandatory
spending and put the budget on a sustainable path. (See the webcast
of the event below.)
The Commission also issued its first policy paper at the event, "A
Closer Look at the President's FY 2010 Budget Process Reform Proposals."
The "Closer Look" paper examines in detail how the administration's
first budget takes a few initial steps toward establishing a more fiscally
responsible and credible budget process. In addition, it describes the
deficiencies and significant omissions in the administration's budget,
including the PAYGO exceptions, its complexity, and lack of caps on
discretionary spending.
The overflow event was headlined by a star-studded cast of policy wonks with
expertise in budget policy and process (yes, there is such a thing as a group
of star-studded policy wonks). Panelists included former heads of CBO and OMB,
leaders of prominent D.C. think tanks, and former members of Congress.
Moderator Morton Kondracke, executive editor of Roll Call, kicked things off by
reminding everyone of the predictions that the federal budget will soon be
almost entirely eaten up by the cost of a few entitlement programs, and that
will mean drastic cuts elsewhere in the budget, large tax increases, or a
return to the dark ages.
Unfortunately, as Kondracke and many panelists noted, budget reform isn't
the type of thing that gets people--or politicians--worked up. Ross Perot has
been the only recent politician on the national platform to make the subject
his true focus. And though a handful of politicians, including President
Obama, have urged legislative action and made compelling statements about the
need to change our spending patters before we drown in a sea of red ink, it
isn't an issue that tends to stir voters.
There was pretty broad agreement that we are, as so many have been
cautioning, in a big fiscal hole that's getting deeper. After that, though, few
panelists expressed much hope that Congress would do much about it anytime
soon. Panelist Jim Nussle, a Commission member and former Chairman of the House
Budget Committee, pointed out that politicians are really good at saying yes,
but not so good at saying no. Everyone agreed that the path to reform means
everyone has to have some "skin in the game"--that both spending cuts and
revenue (tax) increases have to be on the table. Neither option is politically
popular.
The panel discussion was spirited but pessimistic. There was one note of
optimism from Robert Greenstein: He declared that for once, he was not the lone
pessimist on the panel, and argued that, "you can see some glimmers of hope,"
including the administration's submission of a legislative proposal to
reinstate a statutory pay-as-you-go (PAYGO) rule.
Many of the skeptics--both on the panel and in the audience--voiced the
opinion that the Commission's work, and its larger report on budget reform due
to be released later this year, will contribute to the debate by bringing
public notice to the problem and by pressuring Congress to re-gain control over
spending. They all agreed that any solutions have to be bi-partisan.
Participants
Moderator
Morton Kondracke
Roll
Call
Featured
Speakers
Robert
Reischauer
Former CBO Director
The Urban
Institute
Peterson-Pew Commission on Budget Reform
Jim Nussle
Former OMB Director and House
Budget Committee Chairman
The Nussle Group
Peterson-Pew
Commission on Budget Reform
Rudolph
Penner
Former CBO
Director
The Urban
Institute
Peterson-Pew Commission on Budget Reform
Tim Penny
Former Member of
Congress
Peterson-Pew Commission on Budget
Reform
Co-chair, Committee for a Responsible Federal Budget
Robert Greenstein
Center on Budget and Policy
Priorities
