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Lobbying Focus:
Budget

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The federal budget process is enormously complicated but can be critical to advancing our clients interests. The budget process begins in early February of each year when the President submits a budget outlining the Administration's priorities for the upcoming fiscal year. The congressional budget committees have an established deadline of April 15 to complete a congressional budget resolution that acts as a threshold for annual program spending.

Given the current level of U.S. budget deficits, it is likely the process of budget reconciliation will ensue. Budget reconciliation occurs when Congress adopts a budget resolution that directs one or more congressional committees to change laws under their jurisdiction with the goal(s) of increasing/decreasing spending and/or revenues. During budget reconciliation clients may be impacted by the proposed budget changes.

The Congressional Budget Office (CBO) recent findings...

  • Interest on the nation's debt is expected to balloon rapidly in the second half of CBO's 10-year projection. Interest payments on U.S. debt from 2014-2018 are projected to be $1.76 trillion. From 2019-2023 the interest on the nation's debt will double to $3.64 trillion. By 2020 it is expected that interest payments on U.S. debt will exceed the defense department's budget.
  • In 2023, the federal government will collect twice as much revenue as it did in 2012. Even with increased revenues, the deficit will hit $978 billion.
  • Projects the total debt will rise by $10 trillion by the end of the budget window (debt held by the public will rise by$8.7 trillion). By 2023, total debt will equal $26 trillion.

Congress' recent vote did avoid sending the U.S. over the proverbial “fiscal cliff” extending the Bush-era tax rates for most Americans, as well as long-term unemployment benefits, among other things.

What is the "Fiscal Cliff"?

The term "fiscal cliff" became a popular buzz phrase lately for the deadline in which the sharp increase in the federal budget deficit due to increased taxes and reduced spending. (The federal deficit is the amount by which government spending exceeds its revenue.) Much of this was caused by outdated laws that affect fiscal policy. The Congressional Budget Office (CBO) anticipated that the 'fiscal cliff' would have likely led to a recession with higher unemployment in 2013.

What is "sequestration"?

Sequestration is a series of arbitary & automatic budget cuts, totalling $1.2 trillion, that were scheduled to go into effect on Jan. 1, 2013 (but have been delayed). These cuts are evenly split between defense and domestic discretionary spending (with some exemptions, such as Social Security, Medicare, and veterans' benefits). If the government cannot agree on ways to cut the budget, then these automtaic cuts will take place slashing budgets from programs across the board. The "Super Committee" that was formed to come up with $1.2 trillion of more carefully targeted spending cuts failed to do its one job.

Federal Budget Lobbying & Your Organization

Due to the current economic climate, whether sequestration goes through or not, budget cuts are coming to almost every aspect of federal government and its various programs. From transportation to agriculture to defense, every area will be affected by the upcoming changes in fiscal budgeting. To have progams that affect your organization represented, you need contact us today so we can begin proactively protecting and encouraging the federal issues that impact your needs.

 

During the complicated budget process, Cansler Consulting provides strategies to lessen the negative impacts on clients' business using our experience, knowledge, and federal connections.

 



 


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Cansler Consulting government relations lobbyistsIf you need quality representation from an entrepreneurial lobbying firm contact Cansler Consulting. We are a certified lobbying practice that is experienced in the multi-faceted and inter-related industries of Agriculture, Biotechnology, Food and Drug Safety, Health, Immigration, Transportation & Infrastructure, International Trade and Energy. Through our congressional and regulatory relationships established for over two decades we can help you the policy makers on Capitol Hill and navigate the federal budgeting process. You can contact us at