Eliminate Baseline Budgeting

We must change the law to end so-called baseline budgeting if we are ever to have a prayer to get this Countries fiscal house in order.  Since the Congressional Budget Act of 1974 was passed, our Federal Government automatically increases spending every year even if Congress and the Senate do nothing. The spending is "based on the continuation of existing level of government services."  If that wasn’t enough, in 1985, the Deficit Control Act ensured spending would keep pace with inflation. The baseline also includes automatic adjustments for anticipated increases in program participation.

Now, every item in the budget increases, many items increase by up to 10% or more every year, and it does not matter if there is money to pay for the increases.  The only thing these agencies need to do now to get more money is to just keep spending. When new budget programs are created, they become part of the baseline resulting in more money next year without any formal action by Congress.  This is why Congress can go since 2009 without a budget yet spending continues to explode.

Here is an example of how baseline budgeting works.  An agency spends $1 billion, so their budget for the next year automatically increases by $100 million.  This increase is considered 0% growth by Washington budgeting standards.  So if Congress tries to get responsible and they only authorize a $75 million increase, according to baseline budgeting they cut the program by $25 million.  More importantly, the media will portray this increase as a draconian cut.  Those proposing these “cuts” get vilified.  Can you imagine if someone proposes a real cut? 

Since “baseline” budgeting has been implemented, spending has gotten out of control. In the last few years, it has gotten even worse.  Federal spending increased from $2.7 trillion in fiscal year 2007 to $3.6 trillion in Fiscal Year 2011, a 33% increase. 

Baseline budgeting has no relation to the amount of income available to spend, like every other serious budget, so how can we be serious about getting spending under control without eliminating baseline budgeting?