Modern budgets in the federal government are more stories than spread sheets.
Consider the three competing budgets for 2014. The House budget is stark. There are no new taxes and spending drop below even the sequester levels. The Senate sets out a very different course. That budget plan increases taxes, mostly on the White House, and restores spending to many parts of the budget.
Today’s White House plan melds the House and Senate into a compromise plan. That is, if compromise is even possible in today’s political environment. Remember that no single plan, not the House, not the Senate, and certainly not the president’s, will be enacted into law without lots of changes, debates, and compromises. This is only the beginning of the process where every line is written in pencil. (The Washington Post has a great graphic that shows how rare it is for a president’s budget to actually get enacted.)
But this is a smart budget. It’s might even work because it’s neither the House nor the Senate approach.
“The budget also incorporates the president’s compromise offer to House Speaker Boehner to achieve another $1.8 trillion in deficit reduction in a balanced way,” the White House says. “When combined with the deficit reduction already achieved, this will allow us to exceed the goal of $4 trillion in deficit reduction, while growing the economy and strengthening the middle class. By including this compromise proposal in the budget, the president is demonstrating his willingness to make tough choices and his seriousness about finding common ground to further reduce the deficit.”
There is a lot to like in the president’s budget because it invests in the areas of government that require more money, mainly education. If you pull back and look at the big picture, the federal government’s primary challenge is demographic -- an aging workforce that’s ready to retire -- so the best answer is to invest heavily in education, so that young people have the skills to earn as much income as possible. (Instead of what we’re doing now: Loading up this generation with student debt.)
The budget: “Improves college affordability and value with a continued commitment to Pell Grants; budget-neutral student loan reforms that will make interest rates more market-based; a $1 billion Race-to-the-Top fund to support competitive grants to States that drive higher education reform, while doing more to contain tuition; a $260 million First in the World fund to spur cutting-edge innovations that decrease college costs and boost graduation rates; and reforms to Federal campus-based aid to reward colleges that set responsible tuition policy, provide a high-quality education and better serve students with financial need.” (more…)