Earlier this month, President Obama submitted his $3.77 trillion proposed budget for fiscal year 2014 to Congress. Wonder where it all goes?
Now you know, thanks to the attorneys at Patton Boggs, who have put together a comprehensive 73-page analysis of the budget and its implications for the government:
To note: the budget contains some important cuts:
“The President’s ten-year budget request … proposes cutting the deficit by $1.8 trillion over ten years. The Budget does not address the $85 billion sequester occurring in the current fiscal year (FY 2013), but does eliminate sequestration in the out years. It proposes generating $580 billion by restricting deductions for the top two percent of earners and by requiring households with more than $1 million in annual income to pay at least 30 percent in taxes. The Budget also proposes to solicit $78 billion from new cigarette taxes. In eliminating sequestration, the President discards the discretionary spending caps established in the Budget Control Act of 2011 (P.L. 112-25) and requests spending of $1.058 trillion in FY 2014. This would mark a significant increase over FY 2013 discretionary spending of $984 billion.
Most significantly, in his quest to achieve a ‘grand bargain,’ the President proposes savings of about $230 billion by restructuring cost of living adjustments for entitlement programs, including beneficiaries of Social Security, known as the chained Consumer Price Index, or chained CPI. This is viewed by some as an olive branch to the Republicans, and by others as offering too much without gaining anything in exchange. The President proposes an additional $400 billion in health care savings – $200 billion in mandatory program reductions and $200 billion in discretionary spending cuts.”
And it’s not a shoo-in:
“The President remains committed to the areas he identified as his core priorities for his second term and requests additional cross-department/agency funding for a number of new initiatives related to manufacturing, infrastructure, education, cybersecurity, immigration reform and gun control. However, many of his proposals, especially related to infrastructure financing, have been repeatedly rejected by Congress.
Budget hearings in the Senate and House Appropriations Committees continue, although the overall discretionary spending cap, and subsequent allocations for each spending bill, may not be determined until the anticipated debt ceiling debate this summer. Senate Appropriations Chairwoman Barbara Mikulski (D-MD) has stated that she will begin markups utilizing the President’s request of $1.058 trillion. On the other hand, the House FY 2014 Budget Resolution (H. Con. Res. 25) establishes an FY 2014 spending cap, incorporating sequestration reductions, at $967 billion. Senate and House Budget Committee Chairmen Patty Murray (D-WA) and Paul Ryan (R-WI) recently began negotiations on a joint FY 2014 Budget Resolution, though there is little optimism, given the seemingly irreconcilable differences between their positions, that those talks will produce an agreement.”
- New Budget Proposals Once Again Target Insurance Companies – Sutherland Asbill & Brennan LLP
- In Time of Austerity, President’s 2014 Budget Prioritizes Clean Energy Funding – Mintz Levin
- Proposed 2014 Budget Encourages Private Investment in Infrastructure – Ballard Spahr LLP
- President Releases Fiscal Year 2014 HUD Budget – Ballard Spahr LLP
- US DOL Releases FY2014 Budget Request – Mintz Levin
- CFPB’s Strategic Plan, Budget, and Performance Plan and Report tracks supervision and enforcement emphasis – Ballard Spahr LLP
Find additional updates on the Federal Budget at JD Supra Law News>>