|By PR Newswire||
|April 1, 2014 06:47 PM EDT||
WASHINGTON, April 1, 2014 /PRNewswire-USNewswire/ -- The Concord Coalition today welcomed the budget proposal from House Budget Committee Chairman Paul Ryan but expressed concern that it does not represent a realistic blueprint for making progress on a fiscal sustainability plan.
"It is the statutory duty of the House and Senate Budget Committees to produce a budget," said Robert L. Bixby, Concord's executive director. "Chairman Ryan thus deserves credit for following 'regular order' by proposing a budget in an election year when some may argue that it would be more convenient to remain silent."
Bixby added: "Ryan has laid out an ambitious but positive goal to achieve budget balance within 10 years. However, like the President's budget, Ryan's proposal is best viewed as a statement of party principle with little chance of moving the fiscal debate forward, much less of being enacted."
Given the size and nature of the structural problems in the budget, the goal of eliminating deficits within a decade sets up some very difficult policy choices. A renewed focus on open-minded budget negotiations -- using policy levers that affect both revenues and spending -- would offer a better chance to enact reforms with a positive fiscal outcome.
The Ryan budget achieves its deficit reduction by cutting over $5 trillion from spending programs. It proposes no revenue increases. The savings would come from repealing the insurance expansion in the Affordable Care Act (40 percent of savings); Medicaid and other health savings (14 percent); reductions in "other mandatory" programs such as food assistance (19 percent); discretionary spending reductions below the current caps (9 percent); Medicare reductions and shifting to premium support (3 percent), and interest savings (15 percent).
The discretionary spending assumption allows defense to exceed the current caps but achieves overall discretionary savings by cutting non-defense spending below the caps. Non-defense discretionary spending would fall to 2.2 percent of GDP by 2024 -- nearly half the amount spent in 2011, when spending caps were first agreed to, and 20 percent less than in 2014. Over the past 40 years, such spending has averaged 3.8 percent of GDP.
One caution in depending on such low spending is that the recent bipartisan budget agreement actually added back some non-defense spending because the 2014 levels were too low to pass appropriations bills through Congress.
"Sticking with the defense caps will be hard enough, even with the increase proposed by Chairman Ryan," Bixby said. "But taking non-defense spending down to the level assumed in this budget is not at all realistic and would greatly reduce the government's ability to make legitimate domestic investments in transportation, education, homeland security and basic research."
Concord also questioned some of the budget's mandatory spending assumptions.
For example, in a glaring inconsistency, Ryan specifically criticizes the President for abandoning a proposal to switch the government's inflation measure to the more accurate "Chained CPI" -- yet the chairman's plan itself fails to adopt that proposal.
One encouraging point, however, is Ryan's opposition to using Social Security's Old Age and Survivors Insurance funds for the Disability Insurance program, which expects to run out of money in 2016. Instead, Ryan calls for a comprehensive fix for Social Security, which should be a top priority for the next Congress.
Achieving the health care savings in the budget is likely to be hamstrung by political rhetoric.
"The Medicare savings included in Ryan's budget -- such as those from the current-law reductions in Medicare Advantage plans and the shift to a Medicare premium support system -- are valid and achievable," said Joshua Gordon, Concord's policy director. "However, fully realizing them will require a break from the current rhetorical stance of many in both parties against the Medicare Advantage financing trajectory and the narrow provider networks and private insurance regulations in the ACA insurance exchanges, without which budgetary savings from premium support would be unlikely."
"Furthermore, the Ryan budget draws large savings from reductions in Medicaid, but it is difficult to see how such cuts won't exacerbate the Medicaid problems of access and low provider reimbursement referenced in the budget's review of the program," said Gordon.
The proposed budget supports base-broadening tax reform bit does not embrace any particular proposal, including the comprehensive plan that House Ways and Means Committee Chairman David Camp recently released. Ryan points to the Camp plan's scored economic growth but does not embrace its policy choices.
As the Camp plan revealed, however, difficult choices are required to broaden the tax base, lower rates, and remain revenue neutral. Camp was not able to do all this and stick with just the two tax rates of 25 and 10 percent that are recommended in the Ryan budget.
A small but growing portion of the assumed savings in Ryan's budget comes from an estimate of its macroeconomic feedback, often referred to as "dynamic scoring." In a departure from the usual practice, Ryan includes a specific macroeconomic score for each year that is then factored into the estimated deficit.
According to this score, the macroeconomic impact in the first three years of the budget would be to add $76 billion to the deficit. From 2018 through 2024, however, the impact would be to reduce the deficit by $251 billion, for a net deficit reduction over 10 years of $175 billion.
The Concord Coalition does not favor this approach in scoring budget resolutions because it introduces even more uncertainty into the projections. It is one thing to give an illustrative estimate of the effects that a particular path of deficit reduction may have on the economy, as the Congressional Budget Office (CBO) has done at Ryan's request. But it is quite another to count that as a year-by-year score.
This is particularly true when specific policy details are absent, as they are in a congressional budget resolution. One set of policy details could have a much different feedback effect than another.
As the budget office cautioned in releasing its economic assessment of the deficit-reduction path in Ryan's budget: "The projections do not represent a cost estimate for legislation or an analysis of the effects of any specific policies….CBO has not considered whether the specified paths are consistent with the policy proposals or budget numbers that Chairman Ryan released on April 1, 2014 as part of his proposed budget resolution."
A copy of this release can be found on our website at: http://concordcoalition.org/press-releases/2014/0401/concord-coalition-welcomes-ryan-budget-proposal-expresses-doubts-details
The Concord Coalition is a nonpartisan, grassroots organization dedicated to fiscal responsibility. Since 1992, Concord has worked to educate the public about the causes and consequences of the federal deficit and debt, and to develop realistic solutions for sustainable budgets. For more fiscal news and analysis, visit concordcoalition.org and follow us on Twitter: @ConcordC
SOURCE The Concord Coalition
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...
Mar. 23, 2017 02:30 PM EDT Reads: 2,267
In recent years, containers have taken the world by storm. Companies of all sizes and industries have realized the massive benefits of containers, such as unprecedented mobility, higher hardware utilization, and increased flexibility and agility; however, many containers today are non-persistent. Containers without persistence miss out on many benefits, and in many cases simply pass the responsibility of persistence onto other infrastructure, adding additional complexity.
Mar. 23, 2017 02:30 PM EDT Reads: 3,959
SYS-CON Events announced today that Cloudistics, an on-premises cloud computing company, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloudistics delivers a complete public cloud experience with composable on-premises infrastructures to medium and large enterprises. Its software-defined technology natively converges network, storage, compute, virtualization, and management into a ...
Mar. 23, 2017 02:30 PM EDT Reads: 1,321
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
Mar. 23, 2017 02:15 PM EDT Reads: 1,053
Pentaho has announced orchestration capabilities that streamline the entire machine learning workflow and enable teams of data scientists, engineers and analysts to train, tune, test and deploy predictive models. Pentaho’s Data Integration and analytics platform ends the ‘gridlock’ associated with machine learning by enabling smooth team collaboration, maximizing limited data science resources and putting predictive models to work on big data faster – regardless of use case, industry, or languag...
Mar. 23, 2017 01:00 PM EDT Reads: 2,011
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
Mar. 23, 2017 12:45 PM EDT Reads: 1,569
SYS-CON Events announced today that Loom Systems will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 2015, Loom Systems delivers an advanced AI solution to predict and prevent problems in the digital business. Loom stands alone in the industry as an AI analysis platform requiring no prior math knowledge from operators, leveraging the existing staff to succeed in the digital era. With offices in S...
Mar. 23, 2017 12:30 PM EDT Reads: 417
SYS-CON Events announced today that Addteq will exhibit at SYS-CON's DevOps Summit at Cloud Expo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Addteq specializes in creating innovative solutions to solve business processes through the use of DevOps automation. Addteq was founded on the firm belief that automation is essential for successful software releases. Addteq's products and services are centered around the fundamental approach of understanding the pr...
Mar. 23, 2017 12:30 PM EDT Reads: 2,623
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
Mar. 23, 2017 12:30 PM EDT Reads: 1,032
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
Mar. 23, 2017 12:30 PM EDT Reads: 918
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
Mar. 23, 2017 12:00 PM EDT Reads: 715
VeriStor Systems has announced that CRN has named VeriStor to its 2017 Managed Service Provider (MSP) 500 list in the Elite 150 category. This annual list recognizes North American solution providers with cutting-edge approaches to delivering managed services. Their offerings help companies navigate the complex and ever-changing landscape of IT, improve operational efficiencies, and maximize their return on IT investments. In today’s fast-paced business environments, MSPs play an important role...
Mar. 23, 2017 11:00 AM EDT Reads: 1,882
Peak 10 has announced that it has completed a 20,000 square foot expansion of its Cincinnati-area data center, a 6,000 square foot expansion of its data center campus in Charlotte’s University Research Park, and added a pair of seasoned executives to its leadership team. This further propels the company on its aggressive growth trajectory to meet the rising demand for flexible hybrid IT strategies and solutions across its enterprise customer base. Cincinnati is home to companies like Kroger, Pr...
Mar. 23, 2017 11:00 AM EDT Reads: 2,305
SYS-CON Events announced today that Infranics will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Since 2000, Infranics has developed SysMaster Suite, which is required for the stable and efficient management of ICT infrastructure. The ICT management solution developed and provided by Infranics continues to add intelligence to the ICT infrastructure through the IMC (Infra Management Cycle) based on mathemat...
Mar. 23, 2017 09:30 AM EDT Reads: 2,434
Virtualization over the past years has become a key strategy for IT to acquire multi-tenancy, increase utilization, develop elasticity and improve security. And virtual machines (VMs) are quickly becoming a main vehicle for developing and deploying applications. The introduction of containers seems to be bringing another and perhaps overlapped solution for achieving the same above-mentioned benefits. Are a container and a virtual machine fundamentally the same or different? And how? Is one techn...
Mar. 23, 2017 08:30 AM EDT Reads: 2,595