One of the most daunting things about the long-term federal budget problem is that the programs that are in the most trouble -- Medicare, Medicaid and Social Security -- are also running on autopilot. Unlike the rest of the budget, Congress doesn't vote on these programs every year. They're driven by formulas, not by conscious decisions by policymakers. And these are the same programs that will bust the budget because of rising health care costs and the retirement of the baby boomers.

One way dealing with this problem is to turn off the autopilot before the crash comes, according to a group of bipartisan budget experts. The Taking Back Our Fiscal Future report calls for revamping how the "entitlement" programs, including:

  • Setting explicit long-term budgets for these programs, with limits on spending growth
  • A regular review process to ensure the programs stay within their limits
  • Automatic changes that kick in if there are "significant long-term deviations" from the budget projections. Congress and the president could block the changes, but would have to have a specific vote to do so.

Several of the Facing Up partner organizations are involved with the report, including the Brookings Institution, Concord Coalition and the Heritage Foundation. But the report is also co-signed by experts at the American Enterprise Institute, Urban Institute, Progressive Policy Institute and the New America Foundation. It's going to take more than changes in the budget process to solve this problem. And real public engagement is absolutely vital if we're going to reform programs that touch so many Americans so closely. But there's no question that the way the federal government handles the budget make this problem easier to avoid. Changing the process may help force the political system to take this issue seriously.


1 comment on this entry

Re: Taking the Budget Off Autopilot

That is factual! I hope that the US government will going to settle this serious stuff. Well, why don’t we focus on the main problem? The recession that’s prevailing in the economy, over and over again. How pathetic are we.? So even though spring season is widespread, but due to our economic condition, people don’t feel it. Spring is here or at least it is for us Northern Hemisphere folks. Spring, when a young man's thoughts turn to love, but these days they turn invariably to the economy and whether or not to get a payday loan at times. The recession has been the headline for months, and the doom and gloom gets old. However, there seem to be more glimmers of hope on the horizon. Some companies have been announcing that they aren't going to be firing anyone else, or even that they're hiring. Maybe less people will need a payday loan this Spring.


Syndicate content