You Can't Understand the (false) Budget Debate Unless You Understand Baseline Budgeting (this is a , page 1

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ATS Members have flagged this thread 6 times

Topic started on 27-7-2011 @ 09:02 AM by trueperspective

What is Baseline Budgeting?

In short The Congressional Budget Office defines the baseline as a benchmark for measuring the budgetary effects of proposed changes in federal revenue or spending, with the assumption that current budgetary policies or current services are continued without change. The baseline includes automatic adjustments for inflation and anticipated increases in program participation. Baseline, or current services, budgeting, therefore builds automatic, future spending increases into Congress's budgetary forecasts. Source for the definition membership.cagw.org...
In other words, you budget in projected growth. So the standard baseline in our time is about 7%. So every year you assume 7% increase in spending, but it is not called an increase. It is treated as flat.

Why Is This Important?

Let's say you have a "baseline" of seven percent growth per year. The budget for next year by default will add, using a round number, 4 trillion dollars in spending. Then you come out with a budget plan that cuts "spending" by 1 trillion dollars for the next 3 years. Well, if you are using baseline budgeting you are actually raising spending by 9 trillion dollars over the next three years. You haven't cut anything. You have just lowered your growth projections. Current spending is not only untouched, but actually grows.

Where Is This Used?

The current budgets being proposed by both parties are using this tactic. They aren't doing anything to actually reduce real spending levels. All they are doing is reducing the amount of growing spending. And since that growth is already budgeted in, they can technically call it "cutting spending."

What Do We Do?

ATS, please stop dividing according to party lines. As SkepticOverlord already has pointed out. Both Parties are controled by special interest and big loby groups. There is no Republican\Democrat. They are all the same. They are not for the people. Maybe a handful, but they are too few to make a difference. We have to reject anything that is not inline with benefitting this country, whether is comes from a Republican or Democrat.

Be wise, Deny Ignorance.

reply posted on 27-7-2011 @ 09:49 AM by trueperspective

Just to add there are some leaders that are for the people. People that play it straight and offer plans that will actually cut current spending levels. One such plan is called the "Penny Plan."

Congressman Connie Mack took to media stations within his district to help introduce his "One Percent Spending Reduction Act of 2011." Congressman Mack's initiative calls for a one percent reduction to the federal budget starting in the next Fiscal Year, and will be active for 6 years. Congressman Mack says that the legislation will balance the Federal Budget by 2019. If Congress and the White House cannot reach a budget compromise, the legislation would automatically enable the budget cuts. Congressman Mack has also begun speaking with presidential candidates, in the hope that the legislation could become part of their platforms.

This plan DOES NOT use baseline budgeting for its figures. It cuts real spending. We should support plans like this and educate the public. Plans like these don't get much if any coverage.

reply posted on 27-7-2011 @ 11:12 AM by kwakakev

It is a complex system these days and there are just too many accounting tricks, lies, secrets and misunderstandings for most, if not all people to clearly understand. Thanks for a bit of clarification to the issues.

reply posted on 27-7-2011 @ 11:15 AM by Bobbers701

What's unfortunate are the facts our Government cannot manage by budget while telling all aspects of government to do just that. The pot calling kettle black syndrome if you will. Your comments about the Democrats and Republicans is Spot ON their joining unity is the union of Freemasonry. That is what ties them together. The two parties collapsed upon themselves creating a pyramid that supposedly cannot be toppled. This is why a new party the Realist Party should be created to come up right in between the Democrats and republicans and separate them putting and end to this pyramid governmental system.

reply posted on 27-7-2011 @ 11:22 AM by trueperspective

reply to post by Bobbers701

I am convinvced that, knowingly or not, those in power are taking us to the inevitable collapse of this country. There is nothing to be done except prepare. BUT, in the meantime we can not fall for the THEM vs. US game. It a classic divide and conquer strategy. They want people to get fired up. They want to fan the flames of discontent. That way they have an excuse to "bring order" to our rage.

edit on 27-7-2011 by trueperspective because: typo

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