Eakinomics: Joint Select Committee on Budget and Appropriations Process Reform

The Bipartisan Budget Act of 2018 (BBA18) created the Joint Select Committee on Budget and Appropriations Process Reform (the “Committee”), a temporary committee consisting of eight members each from the House and Senate, equally divided between the parties. On Friday Minority Leader Nancy Pelosi announced her committee selections:

The Committee must meet for the first time no later than March 11, hold at least five public meetings or hearings, and must vote on a report and legislative language to implement its recommendations no later than November 30. To be approved by the Committee, any proposal must have the support of a majority of both parties. Committee proposals received expedited treatment to ensure an up-or-down vote on the floor of the House and Senate.

The decision to create a political balance — equal numbers of House and Senate member; equal numbers of Democrats and Republicans — is intended to maximize the odds that reforms can be voted into law. Clearly, the substance and the process of the budget are both badly broken. The explicit reference to the appropriations process signals an interest in finding mechanisms to avoid the shutdowns and brinksmanship of recent years. But to my eye, the most important single topic would be the current treatment of mandatory spending.

For over 150 years Congresses of varying skills and functionality still managed to, on average, balance the budget. However, with the invention and expansion of mandatory spending — also known as entitlements — in the postwar era, deficits have become increasingly the norm, and are growing to a threatening magnitude. Having two thirds of government spending on autopilot outside of the annual spending decisions has clearly not worked. It will be interesting to see if the Committee and can propose something to address this dangerous defect.