SALT LAKE CITY — The House Budget Committee called in Congressional Budget Office Director Phillip Swagel to testify this week, with committee members saying they hope to see increased efficiency between the committee and federal agency.
Their work is tied closely together: The Congressional Budget Office issues economic forecasts and reports related to the federal budget, and the Budget Committee uses the information to draft legislation.
Utah Rep. Blake Moore, who is on the House Budget Committee, acknowledged the “critical role” the Congressional Budget Office plays in the legislative process.
“I think it’s an important opportunity for Congress to provide that needed oversight over CBO’s operations,” he said.
The relationship is “particularly important,” he said, “heading into next year’s tax expirations.”
Many provisions of the Tax Cuts and Jobs Act of 2017 are set to expire in 2025. The Tax Foundation estimates roughly 62% of taxpayers will see a hike in their taxes.
“We have seven or eight years of data now for some of the very similar tax provisions that we would hope to be able to reauthorize,” said Moore, who often says “2025 is the Super Bowl of Tax” because of the expiring tax breaks amid a divided Congress. Moore also asked Swagel about the issues his agency faces in issuing reports on time.
Federal budget office says White House fails to adhere to deadlines
The Congressional Budget and Impoundment Control Act of 1974 requires the Congressional Budget Office to provide Congress with a budget and economic outlook report, commonly known as the CBO baseline. Moore noted that the last time the Congressional Budget Office released three baselines in one year was in 2019.
“What prevents CBO from returning to that timeline?” Moore asked Swagel during Wednesday’s hearing.
The Congressional Budget Office director noted Moore’s accuracy and said, “The deviation from regular order and … the lack of pace of congressional action on appropriations in the budget, that’s what plays havoc with our ability to do these baseline updates.”
“What challenges would CBO have to overcome to return to releasing those baselines in a year?” Moore asked before noting the appropriations process “is a complete mess.”
Swagel said CBO would ideally support Congress better by providing well-timed information at regular intervals. He pointed to the executive branch, saying the president’s office doesn’t release the budget by the statutory deadline.
“We get information from the executive branch on the actual spending for the prior year at the time of the president’s budget. So when the president is late, that affects our ability to update the baseline for the spring,” Swagel explained.
Moore added, “I would argue that my colleagues on the other side of this building, the Senate, need to understand that they’ve got to be able to put things on paper sooner.”
“The House does a much better job, at least, of trying to pass appropriations bills on time,” he said.
During the last appropriations process, the Senate had roughly 13 hours to approve $1.2 trillion in spending. Democrats and Republicans reached an agreement just before midnight on the day of the shutdown deadline. The votes passed early Saturday. The White House ultimately directed agencies to not shut down in the meantime.
Rep. Blake Moore on improper payments
Moore also raised the issue of reducing improper payments by federal agencies. According to the Government Accountability Office, annual improper payments increased from $106 billion in 2013 to $247 billion in 2022. The committee has since proposed the bipartisan Enhancing Improper Payment Accountability Act, which would codify stringent reporting requirements for federal programs dispensing more than $100 million per year.
“Could you speak to what CBO currently relies on to evaluate improper payment rates in government programs?” Moore asked.
Swagel relayed his concerns regarding the executive branch’s actions on the matter. The White House’s office “doesn’t always do the greatest job of figuring out their own improper payments,” he said.
