Blog
Post 2: The Bipartisan Budget the Big Government vs. Fiscal Responsibility
Divide
By
Rudolph Zombek
It
would appear that big spending or fiscal conservatism have no color in the 116th
Congress. The Bipartisan Budget Bill of 2019 passed the House on July
25, 2019, passed the Senate on August 1, 2019, and was signed into law by
President Trump on August 2, 2019 after passing through committee in 72 hours
(GovTrack.com, 2019). The parties split in voting and it would appear that this
piece of legislation had supermajority support (>60%) support in both
Chambers of Congress. However, there were also dissentions in both parties with
5 Not Voting in the Senate (Figure 1). So, in a rare occasion of bipartisanship
in Washington, compromise was reached. However, there is a divide between “Big
Government” politicians and “Fiscally Responsible” politicians that crosses
party lines.
Figure
1: Bipartisan Budget Act of 2019(GovTrack.com,
2019).
The budget deficit alarmism is normally the hallmark
of the GOP, but according to the voting above it would seem to have the GOP and
Democratic parties split. The Brookings Institution states, “The long-term
budget outlook remains problematic” and that “the estimated fiscal gap
continues to widen at 3.59% of GDP” with either “tax increases or
non-discretionary cuts” needed to reduce the debt to GDP ratio (Auerbach, Gale,
2019). Although the current law is designed to make the gap 2.5% to 1.3% by
2029, the Trump Tax cuts may keep the current gap and deficit as is for the
next decade, resulting in no actual change to reducing debt to GDP (Auerbach,
Gale, 2019). So, Fiscal Hawks will continue to be alarmed especially after a
whopping $1.092 trillion deficit after the last Bipartisan Budget of 2018
(Auerbach, Gale, 2019).
For those budget minded
politicians there was bipartisan backlash to the deal.
Mark Meadows (R-NC) Chairman of the House Freedom Caucus said, “We have a
difference of opinion on this particular issue, one that’s not going to change”
(Werner, Paletta, 2019). The Washington Post reported that “unlike in some past
budget battles, where Meadows and other conservatives lobbied Trump until the
end to oppose bipartisan compromise” which is signaling a split in GOP
members of both chambers in fiscal discipline (Werner, Paletta, 2019). Sixteen
Democrats in the House and five in the Senate opposed the deal with Senator Jon
Tester (D-MT) saying “Our debt is not
skyrocketing because we are spending it on things we need like updates [to]
infrastructure or investments in education — it’s skyrocketing because of
irresponsible spending,” (Everett, Bresnahan, 2019). Tester was also joined by
Mitt Romney (R-UT) and Tim Scott (R-SC) and joined with Democratic Sens. Joe
Manchin (D-WV) of West Virginia and Tom Carper (D-DE) of Delaware in a joint statement asserting that “as former
Governors, we were responsible for setting a budget each year that was fiscally
responsible to fund our priorities” (Everett, Bresnahan, 2019). This signals that there are also
cracks in the Democratic majority in the house and key Senators in the minority
on Capitol Hill.
Those who wanted to spend
more money after the recent memory of five years of budget sequester got to
spend money on their focus areas. On the GOP side of the aisle, Senate Majority
leader Senator Mitch McConnell (R-KY) stated “Considering the circumstances of
divided government, this is a good deal, it’s a good deal because it achieves
the No. 1 goal on the Republican side of the aisle: providing for the common
defense” (Cochrane, 2019). With the passage of The Bipartisan Budget
Bill of 2019, it would appear that the President is not serious about balancing
the budget as long as there is a budget passed and put in front of his desk. On
the Democratic side in the Senate, Senate Minority Leader Senator Chuck Schumer (D-NY) stated
pointed to an increase in domestic spending, “got rid of it on our terms,”
pointing to the end of spending sequestration caps from 2013 (Cochrane, 2019). So,
both parties got together to fund their favorite spending items and the two
year budget deal was passed overwhelmingly in the Senate 67 yeas, 28 nays, and
5 abstains of which three Democrats, one Republican, and Senator Bernie Sanders
(I-VT) participated in (Figure 1). It would seem that after the five years of
sequestration and continuing resolutions, the first bipartisan deals were made
in 2018 and formally ended the sequestration era in 2019 by removing the rest
of the spending caps on discretionary spending.
According
to PolitiFact, one of President Trump’s promises were declared broken after The
Bipartisan Budget Bill of 2018 was passed and a second one seems to be on
the track of being broken. The first promise was to “balance the budget fairly
quickly” which is declared broken and the second promise to “eliminate the
federal debt in 8 years”(Jacobson, 2018) seems to be on track to be broken, even
if the President manages to win the 2020 election (Tobias, 2017). The
President’s signature of The Bipartisan Budget Bill of 2019 has not gone
unnoticed by those in his own party. “This is an amazing capitulation with regard to sustainable spending and
financial prudence in Washington, D.C.,” said Mark Sanford a Republican presidential
candidate running against the president (Cochrane, 2019). The bipartisan deal
may come to bite the President in the future with fiscal and Tea Party conservatives.
However, after years of sequestration Trump is reaching out to other members of
his base tweeting “House Republicans should support the TWO YEAR BUDGET
AGREEMENT which greatly helps our Military and our Vets” (Cochrane, 2019).
We will see in the 2020 election cycle if the President’s broken promises to
fiscal conservatives will show up in the ballot box.
So, one can see that the political divide is not just with Conservatives
vs Liberals/Progressives but by the means of divvying up the money as fiscal responsibility
and Big Government spenders. This split is more apparent in the GOP in both
chambers of Congress and has a President who promised fiscal responsibility and
is backtracking and breaking those promises to get the country to function
properly in the legislative process. In an era of breaking away from “regular
order” of the legislative process, folks that would like to see more bipartisan
compromise can find relief that the Congress can actually work together to make
a budget after the 2013-2018 period of sequestration and continuing resolutions.
Will there be more compromise on the Hill in future legislation? Only, the next
year will tell if the parties can work together to pass legislation before the
2020 election.
References
Auerbach, Allan. Gale, William G. “Revisiting the
Budget Outlook: An Update After the Bipartisan Budget Act of 2019”. Brookings
Institution. Washington DC. October 10, 2019. Accessed on October 14, 2019 https://www.brookings.edu/research/revisiting-the-budget-outlook-an-update-after-the-bipartisan-budget-act-of-2019/
Cochrane, Emily. “Divided House Passes 2-Year Budget Deal to Raise
Spending”
New York
Times. New York, NY. July 25, 2019. Accessed on October 14, 2019 https://www.nytimes.com/2019/07/25/us/politics/budget-spending-deal.html
Everett, Burgess. Bresnahan, John. “Senate Passes
Massive 2-Year Budget Deal” Politico. Washington DC. August 1, 2019. Accessed
on October 14, 2019 https://www.politico.com/story/2019/08/01/budget-deal-senate-vote-1444084
Jacobson, Louis. “Balance Federal Budget Fairly
Quickly”. PolitiFact. Washington DC. December 5th, 2018. Accessed on
October 14, 2019 https://www.politifact.com/truth-o-meter/promises/trumpometer/promise/1430/balance-federal-budget-fairly-quickly/
Tobias, Manuela. “Eliminate the Federal Debt in 8 years” PolitiFact.
Washington DC. October, 20, 2017 https://www.politifact.com/truth-o-meter/promises/trumpometer/promise/1418/eliminate-federal-debt-8-years/
Great piece! I think that one of the most important legislation that Congress needs to agree on is the Budgetary process because it affects so many different policies and agencies. It would be interesting to see how many of the legislators think that it is more important to pass a budget then to balance one. I think that as long as it is not shockingly unbalanced, its definitely more important to pass one so that agencies can see what they are able to spend. Every president from here on out, as you mentioned Trump did, will most likely promise fiscal stability and never actually be able to fulfill it.
ReplyDelete