One of the largest and fastest growing items in President Obama’s new budget is often overlooked. Net interest expenses will skyrocket over the next decade, growing by 250 percent.
The president released his budget request this morning. As expected, his plan is heavy on new spending and new taxes, and very light on structural reforms.
On Monday, the White House will release President Obama’s budget proposal for Fiscal Year 2016. The president is expected to reemphasize his previous fiscal approach of higher spending coupled with higher taxes, while completely ignoring the country’s long-term fiscal problems.
The launch of HealthCare.gov in 2013 was a disaster. A new report from the Health and Human Services Inspector General (IG) describes how the department mishandled the website’s construction. The department failed to follow federal contracting rules, and did not have a cohesive plan for the website. This led to cost overruns and project delays, and HealthCare.gov’s eventually rocky start.
Tonight, President Obama will deliver the State of the Union address. In addition to the lofty rhetoric and self congratulations, the president will likely claim that the federal government’s budget has improved during his tenure.
The House of Representatives voted this week to establish rules for the 114th Congress. One rule change requires that the Congressional Budget Office (CBO) and Joint Committee on Taxation (JCT) dynamically score legislation. The change is a much-needed reform to the federal budgeting process.
Over the weekend, the Senate approved the $1.1 trillion Cromnibus spending package, which funds parts of the government through September 2015.
Federal employees are generally overpaid. Federal, civilian employees made $81,076 in 2013 in wages, on average, compared to $55,424 in the private sector. Their benefit packages are particularly out of line with the private sector. Total compensation including wages and benefits for federal, civilian employees was $115,524 in 2013, on average, compared to $66,357 in the private sector.
Last night, House and Senate negotiators released the legislative text for the government’s newest spending bill, dubbed the “Cromnibus.” The bill authorizes the government to spend $1.1 trillion on discretionary programs between now and September 30, 2015. The total spending level honors last year’s Ryan-Murray budget deal, but also makes a number of important changes to federal law.
Earlier this week, I noted that some Inspectors General provide insufficient oversight of federal government activities. They should be more aggressive in uncovering waste and abuse in federal agencies.