DAILY FISCAL POLICY REVIEW -- 02-19-08

Economy -- Sector for Stimulus 2.0?
  • Housing Hardball -- Why not go to the slowdown's source, some legislators ask? With foreclosures skyrocketing in certain parts of the country and home values falling almost everywhere, some in Washington are pushing a follow-up stimulus package aimed at shoring up the housing sector...

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    Multiple Rules Work in Concert to Undermine Medicaid

    The Bush administration is pursuing or has achieved several policy goals that work to cut social support services by reducing federal funding for Medicaid programs. The Center for Medicare and Medicaid Services (CMS) has released all of these policies — three proposed rules, one interim final rule, and two final rules — in the past nine months.

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    Walker Departs GAO to Walk His Talk Elsewhere

    GAO chief and U.S. Comptroller General David Walker announced plans today to become president and CEO of the Peterson Foundation established by renown deficit hawk Pete Peterson, former Commerce Secretary and chair of the Concord Coalition (and, to be fair, beneficiary of millions of federal dollars in carried interest tax breaks). Peterson will contribute $1 billion to the organization over the next several years. Walker had been head of GAO since November 1998. With characteristic modesty, Walker puts his move in perspective:

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    DAILY FISCAL POLICY REVIEW -- 02-15-08

    Economy -- Ben Bernanke Bearish: In testimony before the Senate Banking Committee yesterday, Fed Chair Ben Bernanke offered a bearish outloook on the economy... Asked about how to assess the efficacy of the recently-signed $152 billion stimulus package, Bernanke said it would be "a warning bell" if financial markets or credit conditions were to worsen... On his prediction of a "sluggish" economy over the next six months, the Dow dropped 200 points in afternoon trading.

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    CBO: Emergency War Spending Requests Lack Detail, Procurement Portion Increasing

    When asked by Senate Budget Committee Chair Kent Conrad (D-ND) to analyze the massive growth in war spending, CBO could point to general expensing areas of supplemental budget requests, but because of lack of detail in such requests, it could not provide a detailed accounting. However, CBO did find a slew of expenses, like acquiring next-generation aircraft, that the Defense Department would undertake in the absence of the wars. When federal agencies request funding during the normal appropriations process, they submit what are known as "budget justification" documents, which explain an agency's budget request in quite some detail (see e.g., the Education Dept.'s FY 2008 budget request justification materials). However, the emergency supplemental requests made by the administration for war spending do not include similarly detailed documents. Although the detail in such documents improved in 2007, specific data on war spending for earlier years is simply not available, severely limiting the ability of CBO to analyze and report on war spending. The supplemental budget requests submitted between 2002 and 2006 contained little detailed information on war expenses. DoD provided detailed justification materials for its regular budget request but did not submit similarly detailed information for its war-related expenses. In February 2007, DoD expanded the quantity of justification material submitted with its requests for war funding. In addition to providing more informative summary material, it prepared budget justification materials for each appropriation, similar to those provided for the regular budget....[B]ecause similarly detailed information is not available for 2005 or for earlier years, a detailed analysis of the changing patterns of spending is impossible.

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    Disclose the True Costs of Tax and Spending Bills

    Change Scoring Rules to Make these Known Legislators should know the all-in costs of tax and spending bills they vote on, right? It's a no-brainer. These are often substantial amounts. In the stimulus package signed by the president yesterday, for example, "The tax breaks in the package will cost more than $22 billion over the next 11 years, or roughly $15 billion more than the government's long-term estimate of $7.5 billion," the Wall Street Journal informs us. Some think it's a partisan issue:

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    Bush Administration Limits Data Because of Limited Budget

    ThinkProgress notes that a government-run website that aggregates government-produced economic data is shutting down because of budgetary constraints. The website in question, EconomicIndicators.gov, is a nifty tool for the public not especially versed in economics navigating the various federal agencies that report economic data.

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    DAILY FISCAL POLICY REVIEW -- 02-14-08

    Budget -- Down on the Farm: House Agriculture Chair Collin Peterson (D-MN) and the panel's ranking member, Robert W. Goodlatte (R-VA) have sent to conference a farm bill that cuts out commodity price supports for such crops corn, wheat and rice in the ninth year of the bill's ten-year provisions... Farmers who earn more than $900,000 a year and make most of their income from farming would be ineligible for farm payments... The White House praised the bill but Sen. Charles Grassley (R-IA) recommended it be "thrown in the trash barrel."

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    When Bush and Congress Agree -- Catastrophe!

    President Bush signed the economic stimulus package this afternoon. Bipartisanship reigns. Whoopee. The White House transcript is here. Raise your hand if you're not breaking out the champagne. The lard-up was not as bad as it could have been. But the fundamentals of stimulus-palooza were wrong at the start and wrong at the signing. Borrow and spend may be good politics, but it is bad policy. Hillary wins. -- Michelle Malkin

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    OMB Watch up for Online Advocacy Award

    Do you like OMB Watch? Would you like to boost our fragile self-esteem? Then please vote for us in the Golden Dot Awards, presented annually for excellence in online campaigning by the Institute for Politics, Democracy & the Internet at George Washington University. OMB Watch has been nominated for Best Issue Advocacy Blog. The nomination is for all three of our blogs: Advocacy Blog, Budget Blog, and Reg•Watch. Vote here: polc.ipdi.org/GoldenDots/voting.htm (OMB Watch has the utmost respect for the other candidates and has vowed to run a clean campaign.)

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