Politics

CBO: Deficit to Shrink to Lowest Level of Obama Presidency

Published

10 years ago

January 27, 2015

In this March 4, 2014 file photo, copies of President Barack Obama’s proposed fiscal 2015 budget are set out for distribution on Capitol Hill in Washington. The Congressional Budget Office says the federal budget deficit will shrink this year to its lowest level since President Barack Obama took office. CBO says the deficit will be $468 billion for the budget year that ends in September. Thats slightly less than last years $483 billion deficit. As a share of the economy, CBO says this years deficit will be slightly below the historical average of the past 50 years. (AP Photo/J. Scott Applewhite, File)

STEPHEN OHLEMACHER, Associated Press

WASHINGTON (AP) — Solid economic growth will help the federal budget deficit shrink this year to its lowest level since President Barack Obama took office, according to congressional estimates released Monday.

The Congressional Budget Office also projects a 14 percent drop in the number of U.S. residents without health insurance, largely because of Obama’s health law.

In a report released Monday, CBO says the deficit will be $468 billion for the budget year that ends in September. That’s slightly less than last year’s $483 billion deficit.

The official scorekeeper of Congress projects solid economic growth for the next few years, with unemployment dropping slightly.

“In CBO’s estimation, increases in consumer spending, business investment and residential investment will drive the economic expansion this year and over the next few years,” the report said.

CBO also cited wage increases, rising wealth and the recent decline in oil prices.

For future years however, CBO issued a warning: Beyond 2018, deficits will start rising again as more baby boomers retire and enroll in Social Security and Medicare. By 2025, annual budget deficits could once again top $1 trillion, unless Congress acts.

At that point, Social Security benefits would account for one-quarter of all federal spending, said CBO Director Douglas Elmendorf.

“The underlying point is that we have a handful of very large federal programs that provide benefits to older Americans,” Elmendorf said. “And with the rising number of older Americans and a rising cost of health care, those programs get much more expensive.”

CBO says the number of U.S. residents without health insurance will drop from 42 million last year to 36 million this year, largely because of Obama’s health law. These numbers don’t include people who are in the U.S. illegally, who are ineligible for subsidies under the health law.

The report says 19 million people will have health insurance because of the law, which could make it harder for congressional Republicans to make good on promises to repeal it.

Obama inherited an economy in recession when he took office. The annual deficit topped $1 trillion for each of his first four years in office, including a record $1.4 trillion in 2009.

As a share of the economy, CBO says this year’s deficit will be slightly below the historical average of the past 50 years.

The federal budget deficit became a big issue during Obama’s early years in office. In 2011, Obama and congressional Republicans struck a deal that resulted in significant spending cuts at many government agencies. At the start of 2013, Obama persuaded Congress to further address the deficit by raising taxes on top earners.

The White House said Monday that Congress still has more to do. “CBO’s longer-term budget and economic projections confirm the need for Congress to act to strengthen our economy for the middle class while putting our debt and deficits on a sustainable trajectory, including by making the investments that will accelerate economic growth and generate good new jobs for our workers to fill,” Deputy Press Secretary Eric Schultz said in a statement.

Declining budget deficits, however, could reduce pressure on Congress to continue addressing the government’s finances.

“Over the last few years as deficits have fallen, so too has the effectiveness of Republican rhetoric about a ‘big government’ boogeyman,” said Sen. Charles E. Schumer, D-N.Y. “Now is the time for Republicans to join with Democrats to invest in constructive programs that help middle-class Americans climb the ladder and achieve the American dream.”

Republicans, however, signaled that they aren’t done cutting spending.

“Thanks to Republicans’ efforts to cut spending this year’s deficit is projected to be smaller, but in order to balance the budget we must address the true drivers of our debt,” said Cory Fritz, a spokesman for House Speaker John Boehner, R-Ohio. “Real, robust economic growth won’t occur until we solve our government’s spending problem.”

CBO projects that the economy will grow at an annual rate of 3 percent in both 2015 and 2016. In later years, however, CBO projects slower economic growth as more baby boomers retire and the labor force grows more slowly than it did in the 1980s and 1990s.

CBO projects the unemployment rate will gradually decrease to 5.3 percent in 2017. It is now 5.6 percent.

“CBO’s report is important, but it only tells us part of the story,” said Sen. Bernie Sanders, a Vermont independent and the ranking minority member of the Senate Budget Committee. “What we must never forget is that tens of millions of Americans today are struggling to keep their heads above water economically while the disparity between the rich and everyone else is growing wider every day.”

The budget agency bases its budget projections on current law, assuming that temporary provisions will be allowed to expire. However, many temporary laws are routinely extended, including dozens of temporary tax breaks and a provision that prevents steep cuts in Medicare payments to doctors.

Future budget deficits would be higher if those provisions are continued. For example, if dozens of temporary tax breaks are extended, they would add $1 trillion to the deficit over the next decade.

___

Follow Stephen Ohlemacher on Twitter: http://twitter.com/stephenatap

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Oakland Post: Week of December 18 – 24, 2024

The printed Weekly Edition of the Oakland Post: Week of December 18 – 24, 2024

Published

2 days ago

December 20, 2024

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To enlarge your view of this issue, use the slider, magnifying glass icon or full page icon in the lower right corner of the browser window.

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‘Donald Trump Is Not a God:’ Rep. Bennie Thompson Blasts Trump’s Call to Jail Him

“Donald Trump is not a god,” U.S. Rep. Bennie Thompson, D-Miss., told The Grio during a recent interview, reacting to Trump’s unsupported claims that the congressman, along with other committee members like vice chair and former Republican Rep. Liz Cheney, destroyed evidence throughout the investigation.

Published

4 days ago

December 18, 2024

Oakland Post

Congressman Bennie Thompson, D-Miss. Courtesy photo.

By Post Staff

U.S. Rep. Bennie Thompson, D-Miss., said he not intimidated by President-elect Donald Trump, who, during an interview on “Meet the Press,” called for the congressman to be jailed for his role as chairman of the special congressional committee investigating Trump’s role in the Jan. 6, 2021, mob attack on the U.S. Capitol.

“Donald Trump is not a god,” Thompson told The Grio during a recent interview, reacting to Trump’s unsupported claims that the congressman, along with other committee members like vice chair and former Republican Rep. Liz Cheney, destroyed evidence throughout the investigation.

“He can’t prove it, nor has there been any other proof offered, which tells me that he really doesn’t know what he’s talking about,” said the 76-year-old lawmaker, who maintained that he and the bipartisan Jan. 6 Select Committee – which referred Trump for criminal prosecution – were exercising their constitutional and legislative duties.

“When someone disagrees with you, that doesn’t make it illegal; that doesn’t even make it wrong,” Thompson said, “The greatness of this country is that everyone can have their own opinion about any subject, and so for an incoming president who disagrees with the work of Congress to say ‘because I disagree, I want them jailed,’ is absolutely unbelievable.”

When asked by The Grio if he is concerned about his physical safety amid continued public ridicule from Trump, whose supporters have already proven to be violent, Thompson said, “I think every member of Congress here has to have some degree of concern, because you just never know.”

This story is based on a report from The Grio.

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City of Oakland Celebrates Reopening of Main Library

“Libraries are such critical facilities for all Oaklanders, whether it’s children coming to story-time, adults reading the newspapers or borrowing the latest novels, and people engaging with a range of services and programs that the library hosts,” said Council President and District 2 Councilmember Nikki Fortunato Bas. “Such library services and programs are only possible when the facility’s electricity, heating, roof, and lighting are fixed and running efficiently. I’m proud to join this re-opening of our Main Public Library.”

Published

4 days ago

December 18, 2024

Oakland Post

Left to Right- Jamie Turbak, Director of Library Services, LaTonda Simmons, Assistant City Administrator, Nikki Bas, President Oakland City Council, Shen Thao, Mayor of Oakland, Carroll Fife, Oakland City Councilmember District 3, Harold Duffey, Assistant City Administrator, Sean Maher, Projects Coordinator. Photo by Kevin Hicks.

The branch had been closed since May for critical infrastructure upgrades

Special to the Post

The City of Oakland leadership and community partners gathered to celebrate the reopening of the Main Library after completion of critical infrastructure upgrades to enhance the library’s facilities and provide a better experience for patrons.

Renovations include new roof installation, skylight repair, critical electrical system upgrades, new boiler control system installation, auditorium heating and cooling system installation, and improvements to lighting, flooring and ceilings throughout the building.

“This is truly something to celebrate, the reopening of our wonderful Main Library! I congratulate the staff and our partners for this important project to make the Main Library a more comfortable place for everyone for years to come, said Oakland Mayor Sheng Thao. “Thank you to Oakland voters and the California State Library for making these crucial improvements possible.”

“Public libraries are a wonderful resource for our residents, offering a safe space for learning and being,” said District 3 Councilmember Carroll Fife. “It is critical to improve and modernize our libraries so more members of our community can utilize and enjoy them. I’m excited that the necessary renovations to the Main Library have been completed successfully and thank everyone involved, particularly the City team, who helped secured the necessary grant funds for this work.”

“I am proud of the City staff and project partners who kept this important project on schedule and under budget,” said Assistant City Administrator G. Harold Duffey. “The library is an incredibly important resource for our community members, and this project is an investment into the library’s future.”

“December 2nd was a momentous occasion for Oakland Public Library as we proudly reopened the doors of the Main Library following extensive infrastructure repairs,” said Director of Library Services Jamie Turbak. “Closing the Main Library for six months was no easy decision, as it serves as the central hub for our library system and is truly the heart of Oakland. Yet, this renovation was essential, representing more than just physical upgrades—it reflects our ongoing commitment to creating a safe, welcoming space for everyone.”

The City Administrator Jestin Johnson also attended the press conference and signalled his support for the completion of the record-setting completion of the renovations. Gay Plair Cobb, a newly appointed Library Commissioner said the Library represents the soul and brains of our community.

The Oakland Public Library secured funding for these crititcal repairs through a variety of sources. The California State Library’s Building Forward Library Facilities Improvement Program awarded the Main Branch $4.2 million. To comply with the grant terms, the City of Oakland provided matching funds through Measures KK, as approved by the Oakland City Council in October 2023.

The Main Library will host an Open House to celebrate the reopening on February 22, 2025, 10 a.m. – 5:00 p.m.

About the Oakland Public Library

The Oakland Public Library is a part of the City of Oakland in California and has been in existence since 1878. Locations include 16 neighborhood branches, a Main Library, a Second Start Adult Literacy Program, the Oakland Tool Lending Library, and the African American Museum and Library at Oakland (AAMLO). The Oakland Public Library empowers all people to explore, connect, and grow. Oaklandlibrary.org