Spending Cuts

October 22 - A report released today by the Concord Coalition identifies the nine largest fiscal challenges that the next president will face in 2009. The full list, which mixes statements about current conditions with imperatives for fiscal responsibility, includes:
1. The financial crisis and its spillover into the broader economy has become the top agenda item for the new administration, regardless of prior campaign promises.
2. Short-term fiscal stimulus must be combined with long-term fiscal discipline.
3. Fiscal stimulus should maximize bang for the buck.
4. Two problems that led to Wall Street's crisis -- lack of transparency and over-reliance on debt -- are problems for the federal budget as well.
5. Current fiscal policy is already on an unsustainable track.
6. Health care reform must reduce the growth in costs.
7. Eventually, we are going to need more revenues.
8. Over the longer term, we need to save more and consume less.
9. We need to budget as if it matters -- because it does.

October 10 - In Thursday's Washington Post, David Broder expressed dismay that both presidential candidates continue to advocate for the bulk of their campaign spending and tax promises, which US Budget Watch estimates at well over $300 billion. Calling the move a "stunning rejection of reality," Broder said the candidates had squandered an opportunity during the debates to tell the American people how and where they would adjust the nation's spending priorities. He continued:

"If either of them has a clue what to do to help stabilize this tottering economy, he is keeping it to himself... Even when they have been specific, it is hard to credit their words. Both have promised broad tax reductions targeted to different populations. But neither has given any indication how the promises will stand in the face of the massive new spending needed to rescue embattled financial institutions. Absent any reliable information about their programs, voters must fall back on an examination of their records and characters."

October 8 - The Committee for a Responsible Federal Budget held two panels to discuss the recent fiscal crisis and its effect on future policy. The first panel, which featured Mark Zandi, Martin Baily, Rob Dugger, Dean Baker, and Tim Adams, examined the conditions that made the bailout necessary, the prospects for recovery, and some actions the government might take to avert further crisis. The second panel, featuring Leon Panetta, William Frenzel, Alice Rivlin, Rudolph Penner, and David Walker, discussed how the bailout and overall crisis should affect future policymaking, the current and future status of the US budget, and advice for the next presidential administration. Attendees to the event also received a handout with the October update to US Budget Watch's "Fiscal Voter Guide to the 2008 Election."

October 3 - This morning, the Tax Policy Center hosted a panel discussion about the presidential candidates' spending plans. Demian Brady of the National Taxpayers Union presented annual spending estimates devised by his organization, as did Maya MacGuineas of the Committee for a Responsible Federal Budget. The other two commenters, Jim Horney (Director, Federal Fiscal Policy, Center on Budget and Policy Priorities) and Rudy Penner (Senior Fellow, Urban Institute) offered their analyses of these estimates and other issues related to the candidates' fiscal policy.