The discretionary part is certainly a very good thing as opposed to Dingy Reid’s bogus “savings” that come from winding down the Iraq and Afghan wars. On the flip side, I’m not sure if this even matters because immediately after the CBO score came in 51 Senate Dems and the two independents who caucus with them sent a letter saying they would not support it.
NEW YORK (CNNMoney) — The House’s second take on a bill to resolve the debt ceiling crisis would meet a key GOP pledge. But that doesn’t mean it’s going far.
The amended proposal by House Speaker John Boehner would cut spending more than it would raise the federal borrowing limit, according to an analysis Wednesday by the Congressional Budget Office.
CBO estimates that Boehner’s amended bill would reduce deficits by $917 billion over 10 years. That’s $17 billion more than the immediate debt ceiling increase of $900 billion that the bill would authorize.
On Tuesday, CBO said the original bill would cut deficits by $851 billion.
Boehner’s plan — and a competing Democratic bill in the Senate — are the only live bills this week that would increase the debt ceiling by Aug. 2. The ceiling must be raised by then, when the Treasury Department estimates it will no longer be able to guarantee it can pay all its bills without borrowing.
As the news broke that the amended bill got a better score from CBO, a letter signed by 53 senators (51 Democrats and 2 independents) indicated that they would not support it.
The CBO said the bulk of deficit savings under Boehner’s amended bill — $756 billion — would result from caps on discretionary spending.
We’re told the cut is $22 billion in fiscal year 2012 from the adjusted CBO baseline, and $42 billion in fiscal year 2013. Most of the change has to do with a technical adjustment one of our budget experts will have to explain. The new version preserves the 1:1 match in the first tranche of the debt increase, which leadership considers a very important benchmark for members. Leadership sounds increasingly optimistic about passage and even outsiders opposed to the Boehner plan have been predicting privately today that it will pass.