
The Year in Fiscal Policy...So Far
by Sam Kim, 8/21/2007
After the elections in November 2006, with a new majority and low public confidence in Congress following multiple lobbying and ethics scandals, members vowed to restore integrity and responsibility to the legislative process, particularly in fiscal policy. Congress pledged it would prioritize funding for domestic needs and abide by pay-as-you-go rules for new mandatory spending and taxes. It would shed light on the earmarking process and spend more time minding the people's business in Washington. In short, the new Congress said it would clean up Washington and rebuild public confidence in government.
Now that Congress is in its annual August recess, we have occasion to compare what Congress promised with what it's delivered since January.
Fiscal Responsibility
- Steps Forward: Re-enactment of strong PAYGO rules; adherence to the rules thus far.
Steps Back: None yet, but still difficult fiscal issues to resolve.
What's Next: Passage of SCHIP re-authorization and AMT might test dedication to PAYGO.
- Steps Forward: Congress takes first step toward restoring adequate funding for national priorities.
Steps Back: None yet, but antagonism between Congress and the president threatens timely implementation; Senate running out of time to enact appropriations.
What's Next: The Senate has to pass eleven of twelve spending bills; Congress will wrestle with the president over slim differences.
- Steps Forward: Enactment of legislative earmark disclosure rules for the first time.
Steps Back: Rules could have been slightly stronger to improve access; ignored executive branch earmarks.
What's Next: Reforms awaiting president's signature.
- Steps Forward: The House and Senate have been in session more this year than last.
Steps Back: Little work done on Mondays still leaves four-day work weeks.
What's Next: As adjournment approaches, Congress is likely to keep up the pace.
- Steps Forward: Both houses have made good progress on reauthorizations and are expanding crucial investments.
Steps Back: None yet, as no expiration dates have been missed.
What's Next: Intense negotiations will be required to resolve significant differences between the House, Senate and the White House.
