Earlier today, the Office of Management and Budget (OMB) released an update of its budget estimates, the Mid-Session Review, and the data confirms the failure of the Obama Administration’s economic and fiscal policies. According to OMB’s report, the federal budget deficit is estimated to exceed $1.3 trillion this year. The President’s budget priorities call for $45 trillion in government spending over the next decade, with no serious plan to control the explosive growth of debt that stifles job creation today.
In response to OMB’s report, House Budget Committee Chairman Paul Ryan (WI-01) issued the following statement:
“By its own admission, the Obama Administration’s record on job creation and fiscal responsibility is abysmal. Today’s report confirms that the President’s policies have failed to deliver on his promises of job creation, deficit reduction, and much-needed economic growth. Since taking office, the President’s policies have made a difficult situation worse.
“In January of 2009, the Obama Administration promised its spending stimulus would keep the unemployment rate under 8%. Today’s report estimates that the unemployment rate – despite assumptions of stronger economic growth – will remain above 8% through the end of the President’s term in office.
“In February of 2009, President Obama promised to cut the budget deficit in half by the end of his first term. Today’s report confirms that 2011 will mark the third consecutive annual budget deficit in excess of $1 trillion, and confirms that the President is not on pace to achieve his goal.
“Earlier this year, House Republicans passed a plan that puts our budget on the path to balance and our economy on the path to prosperity. Congressional Republicans are fighting hard to control government spending and advance pro-growth reforms to create a better environment for job creation. We remain hopeful that the President and his party's leaders will put an end to their empty promises and work with us to ensure upward mobility and greater opportunity for all Americans.”
Key Facts from OMB’s Mid-Session Review
Fiscal Year 2011 marks the third straight year the federal government’s annual budget deficit will exceed $1 trillion.
Despite painfully slow economic growth and anemic job creation, the President proposes to raise taxes by over $1 trillion.
The President claims nearly $1.3 trillion in spending reductions that result from unrealistically low projections of future war spending.
The Administration’s economic projections are rosier than either the independent Congressional Budget Office’s or the private sector’s. Even OMB’s alternative economic forecast is consistently rosier than the forecasts of independent analysts.
Unemployment remains above 8% throughout the President’s term in office.
Missed Deadlines and Continued Evasiveness
By law, the Office of Management and Budget is required to provide an update of their budget estimates by July 15 of each year. Today’s report is 48 days late. This marks the third consecutive year the President has failed to meet his legal obligation to issue this mid-year report by their mid-year deadline.
When the Obama Administration first missed this deadline in 2009, then-OMB director Peter Orszag explained publicly that the delay was simply the result of transitioning to a new administration. The Obama Administration’s excuse for ignoring its statutory requirements for the past two years as well is less clear.
More troubling, the belated release of its Mid-Session Review highlights a consistent pattern of missing statutory deadlines, which has become a hallmark of the Obama Administration and its allies in Congress. The Administration has ignored its legal requirement to respond to Medicare’s looming insolvency. Senate Democrats have ignored their legal requirement to propose and advance budgets. It has been 855 days since Senate Democrats last passed a budget resolution. In fact, they didn’t even propose a budget this year.
Finally, OMB’s Mid-Session Review further perpetuates confusion regarding the Administration’s budget priorities. Does the President stand by his actual FY2012 budget from February, or is his partisan budget speech from last April now official policy? In testimony before the House Budget Committee, the director of the Congressional Budget Office made clear: “We don’t estimate speeches.” But today’s report fails to deliver any specifics on the President’s April budget “framework.” The Mid-Session Review also does not specify the cost of the additional government spending policies the President is expected to propose in yet another speech next week.
Regarding the evasiveness of the President and his party’s leaders, Chairman Ryan recently explained: “They don't want to commit publicly to the kind of tax increases and health-care rationing that would be required to sustain their archaic vision of government.”
To learn more about President Obama’s Fiscal Record: http://budget.house.gov/News/DocumentSingle.aspx?DocumentID=252305