Clinton Budget Comes Up Short

The Clinton administration's fiscal 1998 budget plan would result in a deficit of at least $50 billion if Congressional Budget Office economic assumptions are used, CBO Director June O'Neill said today.

O'Neill told the House Budget Committee that, using administration spending figures and CBO assumptions, the deficit would "most likely" be larger than $50 billion. "It's unlikely it would be lower," O'Neill said, adding that the CBO will have a complete evaluation of the Clinton budget proposal by the end of the month.

O'Neill also said she is not certain the administration's "trigger" mechanisms would work. Under the triggers, tax cuts would be eliminated and spending reduced if OMB economic assumptions prove overly optimistic. "Across-the-board cuts ... have always been problematic," O'Neill said.

O'Neill said the CBO estimates the Clinton budget would not be in balance because the CBO uses more conservative economic assumptions than the OMB, particularly certain measures of the gross domestic product.

"Although CBO has not completed its analysis of the administration's projections, clearly the differences in comparable projections of both outlays and revenues stem largely from the small differences in economic assumptions," she said. And while the differences are small, she said, they are "significant for policymakers who are aiming to balance the budget in 2002."

House Budget ranking member John Spratt, D-S.C., questioned the CBO's economic assumptions, saying, "This is not an exact science." But O'Neill countered the CBO has had more accurate projections of the size of the deficit than has the Office of Management and Budget.

House Budget Chairman Kasich defended the CBO, saying it was not created as a "tool or lackey" for congressional leaders. And he warned he would resist any attempt by Republicans to adopt rosy economic assumptions to allow Congress to pass a larger tax cut. "I'm not going to go for it," he said.

Stay up-to-date with federal news alerts and analysis — Sign up for GovExec's email newsletters.
FROM OUR SPONSORS
JOIN THE DISCUSSION
Close [ x ] More from GovExec
 
 

Thank you for subscribing to newsletters from GovExec.com.
We think these reports might interest you:

  • Going Agile:Revolutionizing Federal Digital Services Delivery

    Here’s one indication that times have changed: Harriet Tubman is going to be the next face of the twenty dollar bill. Another sign of change? The way in which the federal government arrived at that decision.

    Download
  • Cyber Risk Report: Cybercrime Trends from 2016

    In our first half 2016 cyber trends report, SurfWatch Labs threat intelligence analysts noted one key theme – the interconnected nature of cybercrime – and the second half of the year saw organizations continuing to struggle with that reality. The number of potential cyber threats, the pool of already compromised information, and the ease of finding increasingly sophisticated cybercriminal tools continued to snowball throughout the year.

    Download
  • Featured Content from RSA Conference: Dissed by NIST

    Learn more about the latest draft of the U.S. National Institute of Standards and Technology guidance document on authentication and lifecycle management.

    Download
  • GBC Issue Brief: The Future of 9-1-1

    A Look Into the Next Generation of Emergency Services

    Download
  • GBC Survey Report: Securing the Perimeters

    A candid survey on cybersecurity in state and local governments

    Download
  • The New IP: Moving Government Agencies Toward the Network of The Future

    Federal IT managers are looking to modernize legacy network infrastructures that are taxed by growing demands from mobile devices, video, vast amounts of data, and more. This issue brief discusses the federal government network landscape, as well as market, financial force drivers for network modernization.

    Download
  • eBook: State & Local Cybersecurity

    CenturyLink is committed to helping state and local governments meet their cybersecurity challenges. Towards that end, CenturyLink commissioned a study from the Government Business Council that looked at the perceptions, attitudes and experiences of state and local leaders around the cybersecurity issue. The results were surprising in a number of ways. Learn more about their findings and the ways in which state and local governments can combat cybersecurity threats with this eBook.

    Download

When you download a report, your information may be shared with the underwriters of that document.