On January 14 the White House sent a letter to House Budget Committee Chairman Paul Ryan stating that the president’s FY2014 budget will not be submitted by February 4, as required by law. The White House has indicated that the lengthy negotiations over the “fiscal cliff” at the end of 2012 made preparing the FY2014 budget difficult. Congress and the White House have yet to complete the FY2013 budget process, relying instead on a Continuing Resolution (CR) that will continue government funding through March 27, 2013. Additional legislation will be required to fund government operations through the end of the fiscal year which ends September 31. The White House anticipates releasing the FY2014 budget in early March. As always, NADO will provide a comprehensive analysis of the president’s budget the week of its release.
While the White House is working on the FY2014 budget, lawmakers continue to discuss the imminent approach of the statutory debt ceiling. Under current law, the U.S. Government is only authorized to borrow $16.4 trillion. Without increasing this cap, the Treasury Department would not be allowed to borrow money to pay current government debts, leading to a possible government shutdown or a default on the national debt. Some Republicans in Congress are insisting on spending cuts or entitlement reforms to match an increase in the debt ceiling. At a press conference on January 14, President Obama insisted that he would not negotiate with Republicans over including any additional items in the debt ceiling, instead demanding an outright increase. The U.S. Treasury Department has indicated that the debt ceiling will be reached between late February and early March.