An Equal Opportunity Crisis

House Financial Services Committee chair Rep. Barney Frank -- profiled in the New York Times this week -- is the only person in Washington remotely both as bright and as indecipherable as Alan Greenspan. His accent is the aural equivalent of illegible handwriting. A stenographer should follow him around so you don't have to wait 'til the next day for the transcript.

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GovExec Maps Out the Six Degrees of OSG Bloch

GovExec has a neat app that lays out OSG Scott Bloch's recent legal troubles called Six Degrees of Scott Bloch: A Scandal Scorecard

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DAILY FISCAL POLICY REPORT -- May 15, 2008

War Supplemental -- House and Senate Action Today: The House is scheduled to vote on a $183.7 billion war supplemental spending package today. The Senate Appropriations Committee will begin work on marking up companion legislation also today. but it's unlikely a bill will reach President Bush by the Memorial Day break. House Amendments to Bill.

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Ranks of Contracting Officers Grow, But Not Enough

Stephen Barr, who writes the Federal Diary column for the Washington Post, wrote on an interesting topic last week - the growth in federal contracting officers (COs) under President Bush. Barr reported that the number of COs has increased 6.8 percent since President Bush took office, according to federal statistics. Barr also was correct in pointing out that there are concerns among many in Washington (both inside Congress and out) that despite these increases, there are still far too few COs and they receive sub par training and support in doing their jobs.

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Down on the Farm Bill

A compromise reached on the farm bill, the House and Senate are expected to vote on final passage as early as today. The bill provides about $289 billion over five years in agriculture spending including nutrition programs and food stamps as well as reauthorization of crop subsidies, conservation programs and a special $3.8 billion trust fund for farmers who lose crops to flood, fire or drought, bumping up the baseline in the aggregate by about $10.3 billion.

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DAILY FISCAL POLICY REPORT -- May 14, 2008

PAYGO -- Congress Pays Heed to PAYGO: On three fronts, Congress paid heed to the principles of PAYGO this week, planning to pay for tax cuts and spending increases in the farm bill, the tax extenders package, and (most surprsingly; see below) the supplemental. The farm bill's new tax credits would be paid for, in part, by limiting the net operating loss carryback to $200,000 on businesses' non-agriculture income if they receive commodity payments. The extenders would raise revenue by limiting the deferral of offshore corporate income. That's the plan for now. Here's how PAYGO works.

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Entitlement Panel Legislation Unlikely This Year

CQ reports ($) that Senate Budget Committee Chair Sen. Kent Conrad (D-ND) has cast serious doubt on the probability that legislation to create a commission to look at Social Security and Medicare reform will make any progress this year. Conrad had hoped to have a committee markup for the Bipartisan Task Force for Responsible Fiscal Action Act of 2007 (S. S 2063), but has been convinced there is scant appetite in Congress for any such measures.

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DAILY FISCAL POLICY REPORT -- May 13, 2008

Taxes -- Rangel Eyeing Extender Offsets: House Ways and Means chair Rep. Charles B. Rangel (D-NY) is sifting through potential revenue-raisers to pay for a set of tax credit and deduction extensions expected to hit the House floor by or immediately after Memorial Day. A prime contender: offshore nonqualified deferred compensation, which would defray $23 billion. Less likely: "The carried interest is dead on arrival. Schumer killed the whole thing. I expect that he would do the same in the Senate — in a quiet way, behind the scenes — on Rangel's 'payfor,'" a lobbyist said.

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Time for a Little Emergency Check

With Congress and President Bush entering negotiations over the next tranche of war funding, via an emergency supplemental appropriations bill, now is a good time for a little emergency check. As the lead editorial in today's Washington Post, Not an Emergency, points out, "[f]ive years into paying for two wars, in Iraq and Afghanistan, it's outrageous that so much of the financing continues to be approved outside the normal budget process, through 'emergency' spending bills that must be passed, must be passed in a hurry..."

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DAILY FISCAL POLICY REPORT -- May 12, 2008

With two weeks before the Memorial Day break, Congress will focus on a few key outstanding fiscal policy issues, foremost among them:
  • Budget Resolution -- Mind the Cap Gap: Senior congressional budget committee staffers say that if compromise is not reached and a budget resolution passed before the break, Congress will not have an FY09 budget. A small House-Senate discretionary spending cap gap -- about $1.5 billion -- remains to be resolved. OMBW Statement.

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