How to Not Pass a Budget – Federal Government Style
Think the government has to pass a budget every year? Think again, as per usual congress has found a way around this too. When both houses of congress fail to reach an agreement on a budget, called a budget resolution, they turn to an unofficial process called deeming. According to the Congressional Budget and Impoundment Control Act of 1974, congress is supposed to adopt a budget on April 15th. That’s right, on the same day you turn over your hard earned money to the government they decide how they are going to spend it (and because we are running deficits, how they will spend future taxes as well).
This year will mark the fifth year that congress has failed to reach a budget resolution since 1975 when the budget act first went into effect. When this happens congress turns to deeming resolutions to appropriate funds. The term is not official nor is there any specific law authorizing the legislation. Instead this is the process that congress uses to spend money on an ad hoc basis.
Passing a budget is a good thing because it establishes a blueprint of spending for the year. Budgets are a way to reduce or increase spending, reduce or increase revenues (taxes) and determine what the government will borrow or save for the year. Having a budget also allows for open debate about what the government is spending. While you hear about the budget in the news you rarely hear about deeming. The 110th (07’-09’) Congress passed a rule that restricted reconciliation to deficit reduction. So now you know that when congress fails to pass a budget they are also failing (or avoiding) to reduce the deficit.
Seems a little unfair that congress doesn’t have to pass a budget doesn’t it? After all you probably have to live by a budget. I bet that most members of congress even have a budget for their own finances. But it’s okay not to have one for the country; they’re just spending your money!
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*Source: Congressional Research Service
