The leaves are turning color, farmers are harvesting, mornings are crisp and we are starting yet another federal fiscal year without a budget. This is such a regular occurrence, the public is more likely to comment on a particularly cool day. But the fact that we are starting to spend $2.7 trillion without a defined budget indicates much is broken in our political process.
The problem isn’t new. Indeed, it was thought so severe 33 years ago that Congress passed the 1974 Congressional Budget and Impoundment Control Act.
The act had three main objectives. First, it was to reform the internal workings of Congress so that a coherent, unified budget would be sent to the president well before a new fiscal year. Second, it was to eliminate budget deficits. Finally, it was to limit presidents’ refusal to spend appropriated funds.
The act specified a strict process and time line for congressional budget action. It created new House and Senate budget oversight committees. It gave Congress its own Congressional Budget Office to independently analyze budget issues. It specified limits on presidential “impounding” of appropriations.
The act also pushed the fiscal-year start date forward to Oct. 1 instead of July 1, to give Congress more time to deliberate on a budget.
The act was initially successful. It went into effect in 1976 with a “transition quarter” to move the fiscal year start date. Congress passed out all the necessary bills for fiscal year 1977 before Oct. 1. The next year, it did nearly as well.
Things started to go downhill in 1979, however. The government now operates on “continuing resolutions” as frequently as it did before this act.
Moreover, while Congress failed to improve in timeliness, its budget discipline actually worsened. In the 30 years before the act, the average federal budget deficit was 1 percent of gross domestic product. This era included wars in Korea and Vietnam. Since then, deficits have averaged 3 percent of GDP even though Social Security surpluses now mask part of the deficiencies in other categories.
It is easy to fault elected officials. They bear some blame. The pre-1970s congressional system, in which long-serving committee chairs wielded power, got more legislation passed in a timely manner than we have seen since.
The basic blame, however, lies with voters. Congress repeatedly procrastinates, fudges budget issues and authorizes spending more than we take in because there is no penalty at the polls. No one loses an election because they obstructed expeditious passage of the nation’s budget or they approved deficit spending.
Some voters take their representatives or senators to task for votes on taxes, abortion, Iraq or Medicare drug benefits. Most do nothing more than shrug about late budgets and growing indebtedness. We are in collective denial about the problems we are pushing forward onto our grandchildren. Until we get out of that denial, nothing will change.
© 2006 Edward Lotterman
Chanarambie Consulting, Inc.