|
However, CBO estimates that only 40 percent of the $358.2
billion in discretionary dollars would be spent by September 30,
2010. This spending lag is attributed in part to the sometimes
lengthy federal contracting and regulatory review processes. Based
on historical data, further delays might occur on building
construction and highway/transit projects since they are usually
seasonal in nature. "For example, major school repairs are
generally scheduled during the summer to avoid disrupting classes,
and construction and highway work are difficult to carry out
during the winter months in many parts of the country," the report
notes.
With respect to federal programs already in place that receive
additional funding, CBO expects that federal and state agencies
would "find it difficult to properly manage and oversee a rapid
expansion of existing programs so as to spend added funds quickly
as they expend their normal resources."
How will the bill affect the budget? After combining the spending and revenue
provisions contained in H.R. 1, CBO concluded that the legislation would increase
the federal deficit by $169 billion over the remaining months of
FY
2009, by $356 billion in FY 2010, by $174 billion in FY 2011, and by
$816 billion over the FY 2009-2019 period.
Across the Capitol, Senate lawmakers are preparing to consider
their economic stimulus package this week. On Jan. 23, the Senate
Appropriations Committee released a
summary of the discretionary spending provisions, which call
for roughly $7 billion more than the House version. The Senate
Finance Committee is expected to propose adding an additional $70
billion to the package's overall price tag via another year-long
"patch" to the alternative minimum tax. Both committees are
expected to mark up their sections of the stimulus bill this week.
|
