Waving Goodbye to FY 2011
With the end of September comes the end of the fiscal year, so it's time to look back on the year that was. We've had a whirlwind year of exciting developments in the world of fiscal policy, both good and bad.
This year saw the release of an unprecedented number of fiscal plans, a resolution to the 2001/2003 tax cut debate (an unpaid-for, temporary extension), and numerous showdowns over spending and debt. In terms of deficit reduction, there was some progress, as Congress took steps to rein in discretionary spending during the shutdown and debt ceiling debacles. However, a potential "grand bargain" between President Obama and Speaker Boehner fell apart in July over disagreements of how much revenue to include.
Nonetheless, we welcome FY 2012 with hopes that more progress will come. The Super Committee will be reporting its plan, which we hope will tackle all areas of the budget, including tax reform. This is a big opportunity to force action on a comprehensive deficit reduction plan and CRFB is joining many other voices in calling for the Super Committee to "Go Big."
But, the political bickering that characterized much of this year seems poised to carry over into the next year. November 18 is the date that people will be watching to see what happens with the FY 2012 budget, as the next CR will expire then. With Congress passing none of the appropriations bills for 2012 yet, it looks like we will have another year that provides clear evidence of how broken our budget process is and the need for reform.
Here's to the next fiscal year being the year of the enacted fiscal plan.
For a look at FY 2011 by the numbers, see our release here.