Forbes

Don't Be So Quick To Dismiss The Paul Ryan-Patty Murray Budget Deal

The Congressional Budget Conference Agreement is a paradox. On its face it is underwhelming. It ignores the pressing long-term problems. It “kicks the budget can” for another 2 years. Its savings are not all clean-cut. There is no way to guarantee the out-year savings. Measured against the need, it fell far short.

On the other hand, compared to the fiscal squabbling of the past several years, it was a major reversal, a surprising bipartisan compromise from a Congress which had made that phrase oxymoronic. There has been no budget resolution for years. There has been precious little agreement on anything. Suddenly, it appears that the warring parties have decided that government closings and potential defaults may not be the best policies.

The budget agreement actually did some good things. It cancelled some of the most objectionable parts of the sequester which were threatening immediate harm, especially in defense spending. It replaced those lost savings with small reductions in mandatory spending and small increases in fees.

Even better, it was a two-year agreement. To move from no budget to a 2-year budget is nearly miraculous. The debt ceiling problem aside, government closures seem to be out of the picture for 2 years. It probably does not signal a sea change in Congressional comity, but it does give the Appropriations Committees a chance perform as they are intended, both in FY ’14 and is FY ’15.

Sen. Murray and Rep. Ryan took the Congress as far as it could possibly go. They gave no important help to the debt and deficit problems, but they did make important changes in the way that the parties and the houses have been dealing with one another. There is no assurance that the Congress has done an about face on its fiscal fisticuffs, but the budget agreement is a welcome change from the unrelenting warfare of the past 5 years.

The debt ceiling hurdle still looms ahead, probably in March. Other policy issues, including trade, immigration, and energy remain untouched. There is hope that Ryan-Murray will be infectious, but 2014 is an election year. Good things seldom happen in election years. But, perhaps, 2014 may be a bit more peaceful than 2013.

What now seems certain is that hope for Grand Budget Bargain is gone, probably until after the next presidential election in 2016. Until then, budget improvements will be incremental at best. At worst, there may be back-sliding. Both parties will cling to their standards. Democrats will defend the big entitlements to the death. Ditto for Republicans in defense against all tax increases.

So, one on hand, the paradoxical Budget Agreement gives reason to celebrate, and, on the other, reason to mourn. Optimists can cheer the first bipartisan budget compromise in years, and the strong House vote. Pessimists can bemoan the unsolved deficit/debt problems, and the expected weak Senate vote.