CBO Monthly Budget Review, May 2010

Current Deficit Spending is Good

In his recent blog post detailing his agency's latest Monthly Budget Review (MBR), Congressional Budget Office (CBO) Director Doug Elmendorf opens by remarking, "The federal budget deficit was $941 billion during the first eight months of fiscal year 2010." To some, that number is a bewildering reminder of what they see as a dysfunctional and wasteful federal government. To others, it's a sign of how badly the Great Recession has affected the economic health of our country, and, after digging deeper into the numbers, shows that more – not less – needs to be done.

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OMB Watch and 29,000 Others Comment on Inherently Governmental Proposal

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Last week, OMB Watch submitted comments to the Office of Federal Procurement Policy (OFPP), the contracting regulatory authority within the Office of Management and Budget (OMB), regarding their proposed policy letter on reforming "inherently governmental" guidelines. Through our petition drive with CREDO Action, we spurred 29,402 people to write to OFPP to tell the agency what they thought about the proposed guidelines as well.

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The Carried Interest Loophole-Closer is the Kitty and Congress is trying to put it in the Microwave

No kittens were harmed in the making of this blog post

Citizens for Tax Justice (CTJ) released an important call to action along with a report this afternoon about carried interest, the loophole that allows multimillionaire investment fund managers to subject their income to lower tax rates than the average citizen. The "extenders" tax package, which is currently before the Senate, includes a carried interest loophole-closer, but it seems that senators are listening to the fund managers' well-heeled lobbyists and their ridiculous claims against this commonsense policy change.

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Contracting Industry Verklempt Over Possibility of Contracts Going Public

A Stack of Contracts

The Federal Times had an interesting piece last week on the contracting industry's reaction to a recent notice in the Federal Register seeking input on "how best to amend the Federal Acquisition Regulation (FAR) to enable public posting of contract actions." Despite the FAR Councils' stated efforts to post contracts "without compromising contractors' proprietary and confidential commercial or financial information," industry executives are beside themselves over such a monumental change. Not surprisingly, their arguments against the idea don't hold much water.

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DOD IG Finds Private Security Contractors Performing Inherently Governmental Tasks

A U.S. Soldier Meets with Private Security Contractors

Jeremy Scahill, an investigative journalist and contributor to The Nation, blogged this morning about a discovery he made in a recent Department of Defense (DOD) Inspector General's (IG) report. The DOD IG found, in what Scahill mockingly referred to as "a not shocking revelation," that "private contractors working for U.S. Special Forces have been allowed to 'perform inherently governmental functions.'"

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Who Says We Need More C-17s...Oh Yeah, Congressional Missourians Do

A C-17 Globemaster III

As Congress gears up for its annual budget process, parochial-minded members are drawing their customary battle lines around administration-targeted programs. One of those is the C-17 transport plane, which the Pentagon has been trying to kill for several years because it deems the military to have ample airlift capacity. Last week, the St. Louis Post-Dispatch highlighted a press conference held by four congressional Missourians who, claiming to know better than the Pentagon, declared that they were going to fight the plane's proposed cancellation.

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Chances of FY '11 Budget Resolution Slipping Away

In case you hadn't noticed, it's getting late in the year. We're almost to the end of May, and Congress is starting to run out of legislative time. The week-long Memorial Day recess gets rid of next week, July 4th patriotism will consume another week, summer recess erases most of August and half of September, and Congressional leadership is aiming to adjourn in early October. And with Congress' already jammed legislative agenda, when is it going to get around to passing FY 2011's budget resolution? Answer: most likely never.

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Fiscal Responsibility Is More Than Just Cutting

Picking up the thread from yesterday, I want to expand a bit on this term "fiscal responsibility" that is bandied about so often. "Fiscal responsibility" is not simply setting arbitrary limits on federal spending for the sake of reducing the federal budget deficit. Rather, it is an assessment of the current economic and fiscal environments and a determination of an equitable deployment of national resources.

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Obama Requests Tool for the Wrong Job

President Obama has proposed to Congress "a new, expedited tool to reduce unnecessary or wasteful spending," lining up on the side of so-called fiscal conservatives to enhance the Executive's ability to force Congress to vote on measures that cut federal spending.

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Recovery.gov Moves to Cloud Computing

In his latest Chairman's Corner, Recovery Board Chairman Earl Devaney announced that Recovery.gov is now the first "government-wide" cloud computing system. Sounds impressive, right? Well, sort of. Essentially, this means that Recovery.gov, which used to be housed on servers operated by the Board and used solely for that purpose, is now hosted on "cloud" servers run by Amazon.com.

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