Congressional Budget Office

Congressional Budget Office
Agency overview
Formed July 12, 1974
Headquarters Ford House Office Building, 4th Floor
Second and D Streets, SW
Washington, D.C. 20515
Employees 235
Annual budget $46.8 million
(FY 2011)
Agency executive
Website www.cbo.gov/

The Congressional Budget Office (CBO) is a federal agency within the legislative branch of the United States government that provides budget and economic information to Congress.[1] Inspired by California's Legislative Analyst's Office that manages the state budget in a strictly nonpartisan fashion, the CBO was created as a nonpartisan agency by the Congressional Budget and Impoundment Control Act of 1974.

History

The Congressional Budget Office was created by Title II of the Congressional Budget and Impoundment Control Act (P.L. 93-344), which was signed into law by President Richard Nixon on July 12, 1974. Official operations began on February 24, 1975, with Alice Rivlin as director.

Mission

The CBO's mandate is to provide Congress with:

With respect to estimating spending for Congress, the Congressional Budget Office serves a purpose parallel to that of the Joint Committee on Taxation for estimating revenue for Congress, the Department of the Treasury for estimating revenues for the Executive. This includes projections on the effect on national debt and cost estimates for legislation.[3]

Operations

Section 202(e) of the Budget Act requires submission by CBO to the House and Senate Committees on the Budget periodic reports about fiscal policy and to provide baseline projections of the federal budget. This is currently done by preparation of an annual Economic and Budget Outlook plus a mid-year update. The agency also each year issues An Analysis of the President's Budgetary Proposals for the upcoming fiscal year per a standing request of the Senate Committee on Appropriations. These three series are designated essential titles distributed to Federal Depository Libraries and are available for purchase from the Government Publishing Office. CBO also prepares reports and issues briefs and provides testimony often in response to requests of the various Congressional Committees. It also issues letters responding to queries made to it by members of Congress.

Divisions

The Congressional Budget Office is divided into eight divisions.[4]

Director

Ford House Office Building

The Speaker of the House of Representatives and the President pro tempore of the Senate jointly appoint the CBO Director, after considering recommendations from the two budget committees. The term of office is four years, with no limit on the number of terms a Director may serve. Either House of Congress, however, may remove the Director by resolution. At the expiration of a term of office, the person serving as Director may continue in the position until his or her successor is appointed. The directors of the CBO are:[5]

Name Term start Term end
Rivlin, AliceAlice Rivlin February 24, 1975 August 31, 1983
Penner, Rudolph G.Rudolph G. Penner September 1, 1983 April 28, 1987
Gramlich, EdwardEdward Gramlich (Acting) April 28, 1987 December 1987
Blum, James L.James L. Blum (Acting) December 1987 March 6, 1989
Reischauer, RobertRobert Reischauer March 6, 1989 February 28, 1995
O'Neill, June E.June E. O'Neill March 1, 1995 January 29, 1999
Blum, James L.James L. Blum (Acting) January 29, 1999 February 3, 1999
Crippen, DanDan Crippen February 3, 1999 January 3, 2003
Anderson, Barry B.Barry B. Anderson (Acting) January 3, 2003 February 5, 2003
Holtz-Eakin, DouglasDouglas Holtz-Eakin February 5, 2003 December 29, 2005
Marron Jr., Donald B.Donald B. Marron Jr. (Acting) December 29, 2005 January 18, 2007
Orszag, Peter R.Peter R. Orszag January 18, 2007 November 25, 2008
Sunshine, Robert A.Robert A. Sunshine (Acting) November 25, 2008 January 22, 2009
Elmendorf, DouglasDouglas Elmendorf January 22, 2009 March 31, 2015
Hall, KeithKeith Hall April 1, 2015 present

Budget and Economic Outlook: 2015 to 2025

CBO expects that the deficit this year will be $426 billion––$60 billion less than projected in March. The economy is expected to expand modestly this year, at a solid pace in 2016 and 2017, and at a more moderate pace in subsequent years.

Such high and rising debt would have serious negative consequences for the nation. When interest rates returned to more typical, higher levels, federal spending on interest payments would increase substantially. Because federal borrowing reduces national saving over time, the nation's capital stock would ultimately be smaller, and productivity and total wages would be lower than they would be if the debt was smaller. Lawmakers would have less flexibility than otherwise to use tax and spending policies to respond to unexpected challenges. Continued growth in the debt might lead investors to doubt the government's willingness or ability to pay its obligations, which would require the government to pay much higher interest rates on its borrowing.[6]

See also

References

  1. ↑ O'Sullivan, Arthur; Sheffrin, Steven M. (2003). Economics: Principles in Action. Upper Saddle River, New Jersey 07458: Pearson Prentice Hall. p. 388. ISBN 0-13-063085-3.
  2. ↑ "CBO Fact Sheet". Congressional Budget Office. Retrieved 10 June 2011.
  3. ↑ http://www.cbo.gov/about/overview
  4. ↑ "Staffing and Organization". Congressional Budget Office. Retrieved 19 February 2014.
  5. ↑ "Congressional Budget Office: Appointment and Tenure of the Director and Deputy Director" (PDF).
  6. ↑ https://www.cbo.gov/sites/default/files/114th-congress-2015-2016/reports/50724-BudEconOutlook-3.pdf

Further reading

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