Tomorrow, Wednesday, September 11, the House Budget Committee (HBC) is set to convene a critical hearing on the topic, “Congress and the Congressional Budget Office (CBO): Examining Ways to Improve CBO.” In advance of the hearing, NTUF has released an issue brief that offers several suggestions to enhance the quality of CBO’s scores.
CBO plays a pivotal role in shaping federal policy, as a CBO cost estimate and analysis can be a crucial factor in determining whether a bill becomes a law.
Over the years, CBO’s cost estimates have been criticized by both ends of the political spectrum. Many concerns about CBO scores actually stem from rules and guidelines established by Congress. Lawmakers are well aware of these scoring rules and know how to take advantage of them when drafting legislation to obtain a favorable score for their bill.
NTUF Vice President of Research Demian Brady writes:
While CBO plays a critical role in ensuring fiscal accountability and providing lawmakers with essential budgetary analysis, it is clear that improvements can be made to enhance the accuracy and transparency of its work . . . These changes are not only necessary to address current shortcomings, but are also vital for guiding future fiscal policy.
Given CBO’s pivotal role in the development and passing of policy, Congress should look for ways to further bolster the accuracy and timeliness of its cost estimates. NTUF’s report highlights potential reforms to the CBO that include:
- adding debt service costs to estimates
- using dynamic scoring for major proposals
- using fair-value accounting for federal credit programs
- accounting for debt impact on future generations
- producing a more realistic spending baseline
As Congress debates these reforms, it must also ensure that CBO’s independence is preserved. CBO serves as an important check on excessive government spending and a resource for lawmakers who seek to make informed, responsible budgetary decisions. Reforms should aim to bolster CBO’s ability to provide unbiased analysis.
For more information on CBO reforms or to speak with NTUF Vice President of Research Demian Brady, please contact NTUF Communications Manager Courtney Manley at courtney.manley@ntu.org.