Budget

It is budget time in Washington: what is normally a one-year excersice in Congressional spending/restraint, is more like a 10 year exercise this year. President Obama decided to take his long term objectives such as healthcare reform, energy independence and other major initiatives to the Congress in the form of a proposed budget.

Congress is deciding how to respond to this approach since it has focused on a one-year budget and mostly failed getting the appropriations necessary to carry out the budget even for one year let alone ten. Obama has asked Congress to carry out a "marker" of $634 for comprehensive healthcare reform.

Additionally, there is a bill - the Budget Reconciliation, that moves through the Congress and only needs a majority to pass. Senate leaders have used the threat of using the Budget Reconiliation bill as a vehicle for passing major initiatives.  This is a bad idea because while getting major legislation passed can be arduous, the flip side is legislation that is not formulated by a wide coalition and has adverse consequences - can wreak havoc in the business community. 

Healthcare reform and cap and trade are prime examples of legislation that need to be thoroughly debated and formulated by a bipartisan group of members.