Who Are the Players in the Deficit Debate?

Who are the players?

The deficit debates are getting so complicated that you can’t tell the committees from the task forces or the gangs from the commissions. We put together a program to help you distinguish which players have what role in the deficit debate.

Sustainable Defense Task Force formed at the request of Representatives Barney Frank (MA), Walter Jones (NC) and Ron Paul (TX), and Senator Ron Wyden (OR) produced a report entitled “Debt, Deficits and Defense: A Way Forward in June 2010.” The report enumerated and described nearly $1 trillion in savings that could be realized from the military budget, without affecting the security of the U.S.

The National Commission on Fiscal Responsibility and Reform, also known as the “President’s deficit commission,” submitted a report to Congress in December 2010 calling for a $4 trillion debt reduction package, including cuts in military spending, increases in revenues (through ending or limiting tax expenditures) and some changes in major entitlement programs.

On April 11, 2011, the House Budget Committee, chaired by Rep. Paul Ryan (WI), adopted the FY 2012 budget that Ryan proposed. The Ryan budget, which focuses on reducing overall spending (except military spending) to 2008 levels, was approved by the full House four days later. The Senate rejected it on May 25. The Center on Budget and Policy Priorities points out that 2/3 of the savings in the Ryan budget come from programs that assist low-income Americans.

The Congressional Budget Office, headed by Douglas Elmendorf, has the job of advising Congress on the cost of programs, options for savings, effect of revenue increases or decreases, etc. On June 23, it issued its new long range forecast, calling the future “dismal” unless Congress takes corrective action.

Members of the Gang of Six Senator Conrad (ND) Senator Warner (VA) Senator Chambliss (GA) Senator Durbin (IL) Senator Coburn (OK) Senator Crapo (ID)

The “Gang of Six,” three Republican and three Democratic senators who formed their own informal group to work out a way forward on deficit and debt reduction. On July 19, the “Gang” released its recommendations – a $3.7 trillion debt reduction package over ten years, including about $1 trillion in new revenues. The plan, not posted publicly yet, got an enthusiastic response from other senators of both parties and from the President. On July 20, 33 senators signed a letter in favor of the Gang of Six proposal -- a strong showing, but not enough yet for passage.

Members of the Biden Group Senator Baucus (MT) Representative Van Hollen (MD) Senator Inouye (HI) Representative Clyburn (SC) Senator Kyl (AZ) Representative Cantor (VA) Vice President Biden

The Biden Group, made up three senators and three representatives, including two Republicans and four Democrats, were appointed by House and Senate leaders at the president’s request following his talk on deficit and debt reduction in April. The group met several times a week until June 24, when their talks broke down. President Obama then began meeting with several different configurations of Republican and Democratic leaders to negotiate a deal.

Senate Budget Committee, chaired by Senator Conrad, has declined to take up a budget proposal, preferring to wait until a deal is reached to raise the debt ceiling. Senator Conrad, like his counterpart Rep. Ryan, drew up his own budget plan and circulated it to his Democratic colleagues on the committee and in the leadership for comments. The plan is not publicly available yet, and no Senate Budget Committee action is planned at this time.