Sunday, November 18, 2018

Joint Select Committee falls short


Meeting during the first snowfall of the season and without notice, the Joint Select Committee on Budget and Appropriations Process Reform does little of the first and none of the second. JSC markups, amendments and votes can be found at https://budgetappropriationsprocessreform.house.gov/news/press-releases/joint-select-committee-report-legislative-text.
While shifting to a true biennial process would certainly be helpful, the committee instead proposed an unreachable first year process with a programmed supplemental for the second year. With little in the way of enforcement, this will result in continuing resolutions until February or March of the second year with supplemental adjustments soon after.
The Whitehouse-Purdue Amendment, if retained in the final legislation, will make the process worse by requiring that fifteen (15) members of the minority agree to the concurrent budget resolution. This faux bipartisanship gives the minority party a veto over action, which in today’s hyper-partisan environment means a programmed veto rather than programmed action.
In practice, a minority veto will limit tax increases, especially on the wealthiest taxpayers and largest corporations, even in times where such decreases will lead to asset inflation rather than economic growth. This was the purpose behind the Balanced Budget Amendment long proposed by the Republican Party in order to give them a seat at the table when the Democrats have the majority in both parties and the White House.
Bipartisanship comes from legislation which attracts a minority from one side or the other to pass, even if the leadership of both parties disagree.
In multiple comments to the JSC (see note below), the Center for Fiscal Equity recommended enforcement through enactment of a Joint Budget Resolution (JBR). The JBR would trigger automatic appropriations at the beginning of the fiscal year, with detailed appropriation marks at the same proportionate levels as the current services budget. If no JBR is passed, then the marks in the Budget Control Act would have the same force, allowing automatic appropriations in the same manner.
To achieve compromise earlier, we recommend that a permanent Joint Budget Committee draft the JBR to be enacted by a date certain to avoid reverting to the budget caps. This will provide both expedited process and likely early involvement of the White House, who would release detailed appropriation requests only after the JBR is passed.
Co-Chairman Lowery commented in her opening statement on November 15th that the Budget Control Act marks are too low and that this leads to the inability to pass appropriations bills. Automatic appropriations would end this difficulty and spur action by both parties. If BCA levels are too low, then the marks in the Act could have been increased by the legislation amending the process itself.
The JSC must abandon the process it used to create this legislation, which required  majorities in both parties to agree to amendments or the Chair’s mark. Requiring each house provide a majority of from each chamber is customary. Allowing either party a veto turns the legislative process on its head. It is no wonder the JSC result is weak. 
Until such comprehensive changes are made, the Center for Fiscal Equity urges any session prior to the new Congress to reject this bill and to send a new Joint Select Committee to start from scratch in the 116th Congress.
We offer our help in setting the terms for debate.
NB: Prior Comments can be found at:

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