OMB and CBO Produce Similar *Dire* Deficit Numbers

Debt?

The Office of Management and Budget (OMB) and the Congressional Budget Office (CBO) released strikingly similar updated budget and economic outlook numbers this morning. As expected, the budget deficit will come in just under earlier predictions. OMB's Mid-Session Review places the government's total red ink for the year at $1.58 trillion, while CBO estimates $1.6 trillion. The government's long-term debt, which the White House now predicts will grow faster than previous estimates, will stand at 9.05 trillion in ten years. CBO paints a slightly rosier picture, projecting the 10-year debt to stand at $7.14 trillion, but admits that their assumptions about projected revenues over that time are high by historical standards, and, conversely, their assumptions about projected discretionary spending are low. Although these estimates are hardly certain, especially the long-term debt numbers, there is no doubt they will generate a great deal of discussion.

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OMB Releases First Contracting Guidance Memos

Office of Management and Budget

Originally due out at the beginning of this month, the three memoranda released by the Office of Management and Budget (OMB) today are a substantive step by the Obama administration in its attempt to reform government contracting. OMB issued the memos in response to a directive in a March 4 presidential memorandum on contracting reform. The three memos provide guidance to agency heads on performing reviews of current contracts, developing plans to reduce the amount of money spent on future outsourcing, managing the multi-sector workforce, and improving the use of contractor performance information. These memos are precursors to more detailed guidance on competition, contract types, acquisition workforce, and outsourcing due out by September 30 of this year.

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House Passes Statutory PAYGO Bill

The House passed legislation (H.R. 2920) on July 22 that would reinstate statutory "pay-as-you-go" (PAYGO) budgeting rules, which were allowed to expire in 2002.

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USDA Cancels Summer Trip to Australia

Office of Management and Budget

These and other seemingly commonsensical budget cuts can be found in an Office of Management and Budget (OMB) report released yesterday.

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Dashboard Info Prompts VA to Hit the Brakes

A project by the nation's Chief Information Officer, Vivek Kundra, has lead to the suspension of some 45 information technology (IT) projects at the Veterans Administration. Unveiled earlier this month, the “'IT Dashboard' is a new, one-stop clearinghouse of information that allows anyone with a web browser to track federal IT initiatives..."

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House Hearing Questions Whether PAYGO is Enough to Control Spending

The House Budget Committee held a hearing on June 24 on the Statutory Pay-As-You-Go (PAYGO) Act of 2009, which was recently introduced by Rep. Steny Hoyer (D-MD). During the hearing, House members focused on the enforcement mechanisms in PAYGO, the significant exemptions granted under the proposed legislation, and whether the bill is the appropriate method to reinstate fiscal discipline in Congress.

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Money for Nothing

Dire Straits

...and Chicks for Free

A report released today by the Government Accountability Office (GAO) found that few federal agencies follow recently revised guidelines set forth by the Office of Management and Budget (OMB) for awarding contract bonus fees, wasting billions of taxpayer dollars per year.

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OMB Soliciting Input from Agencies

Mr. Peter R. Orszag

In a June 11 memo, Director of the Office of Management and Budget (OMB) Peter Orszag outlined the process for executive branch agencies to submit their FY 2011 budgets. According to the memo, the White House and OMB will solicit goals for each agency from the heads of the respective executive departments. Additionally, the memo outlined procedures for government agencies to reform their hiring processes and improve employee satisfaction and wellness. It is too early to discern the impact of these procedures, but the tone of the memo seems markedly different from those of the Bush administration on these matters.

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Economy and Jobs Watch: The Lost Years -- by the Numbers

Over the past 4 years there has been a dramatic shift in the nation's fiscal policy. Has the new strategy worked? The numbers indicate it has not.

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Economy and Jobs Watch: Economy Shows Signs of Weakness under Pressure

Two recent economic reports on jobs and gross domestic product (GDP) indicate that the economy is showing some signs of weakness. The economy will begin to be under increasing pressure from higher oil prices, rising interest rates, and a ballooning deficit. Over the period from 2004 to 2009, the White House projects that $1,727 billion will be added to the federal debt -- and this projection does not include many policy proposals favored by the President and many in Congress which would increase the deficit even more.

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