Budgeting during the Bush Administration

Abstract

The beginning of a new administration is a particularly good time to look back at budgeting in the prior presidential administration, to make more visible the areas of continuity and change. Four themes stand out from the administration of George W. Bush: tax reductions and the growth of deficits; efforts to reform Social Security and Medicare focusing on privatization; strengthening of executive budgetary power vis-a-vis Congress; and relatively more emphasis on loyalty and political experience than competence and transparency in budgeting and financial accountability. During this same 8 years, congressional budget process deteriorated. Congress at times challenged the president’s increased budgetary powers. It generally ignored the OMB-initiated PART performance evaluations, refused to consider the president’s proposed Social Security privatization initiatives, and denied the president expedited rescission powers. Congress went along with the president when it came to the combination of tax cuts and increased spending that turned a surplus into a deficit. Congress passed tax cuts as well as increases for defense and domestic security and the new entitlement program for drug coverage. Congress also continued to give the president a blank check in emergency supplemental appropriations, which added simultaneously to the president’s budget discretion and to the deficit.