Dr. Peter Metcalf will describe the federal budget process and the implications of the FY 2015 Budget at the April 10 breakfast meeting of the Community Breakfast Group (CBG).
The federal fiscal year begins on October 1 and ends on September 30. The budget process calls for presidential, House, and Senate budgets, with the latter two to be resolved in a budget conference to arrive at the discretionary topline level from which the 12 appropriations bills are written. This process completely collapsed in 2013. Instead, one massive appropriation bill was crafted in secret meetings between the White House and the Congressional leadership to provide a framework for managing the Federal government. This appropriation bill was called a “continuing resolution”. This dysfunctional budget process was repeated for FY2014.
Prospects for returning to the regular process for FY2015 are not promising. The presidential budget proposal was issued a month late. The Republican House and the Democratic Senate are as far from cooperating as they have ever been, and this is an election year so there will be more political posturing this year than last.
Perhaps more troubling is the content of the President’s budget. It proposes major increases in taxes and spending, with the Federal Government spending share of GDP increasing to 21.4% of GDP. It ignores the “debt ceiling”. It proposes increasing taxes on corporations owned by the public by 24%. None of this will help increase the output of goods and services of our country.
Peter received his PhD in Chemical Engineering and Economic Theory from Cornell University and has retired from a career in engineering and business planning. Since his retirement, he has taught Finance at John’s Hopkins University and serves as a Registered Investment Advisor.
The CBG meets for breakfast every Thursday at 7:30AM at the Holiday Inn Express in Chestertown. Our meetings start promptly at 7:30AM, so you may want to come at 7:15AM to get your breakfast before the meeting.
Rod Heinze will discuss his candidacy for election as Delegate representing the 26th Legislative District in Maryland’s General Assembly with CBG at their breakfast meeting on April 17.
Steve Payne says
Editor,
Actually the FY 2014 Budget did go through the regular process. It wasn’t easy and we had a Gov sutdown in the meantime but they did eventually do a conference and work out almost everything. Both sides did a good job of trying to work it out and over 500 Amendments were submitted and debated. It was a long term CR but that’s only because there were a few things they intentially left open and agreed to just stay with current law on those items.
https://en.wikipedia.org/wiki/2014_United_States_federal_budget
https://en.wikipedia.org/wiki/Bipartisan_Budget_Act_of_2013
Also the piece makes sure to give a lot of biographical data on their speaker but doesn’t mention that he is a Vice Chair of The Kent County Republican Central Committee.