The nation's ongoing struggle

The Senate Budget Chairman Kent Conrad (D-N.D.) and Senator Michael Crapo (R-Idaho) led a discussion on “Approaches to ‘Bending the Growth Curve’ on Healthcare Spending.” Both Senators agreed that healthcare is the single largest threat to long term fiscal outlook and that the most affective way to end the “nation’s ongoing struggle” is to gain bipartisan support.

Peter Orszag, of the Congressional Budget Office, said that the United States’ political system does not deal well with gradual, long term problems, which is what the healthcare issue has turned into. He explained that the nation needs much more information on what works and what doesn’t when it comes to healthcare, needs more financial incentive to make a change, and needs a behavior change into a healthier lifestyle.

Elliot Fisher, of the Dartmouth Institute for Health Policy and Clinical Practice, said that the United States needs to focus on supply sensitive services. He explained that the current system rewards growth and spending, a policy that needs to be changed. Fisher also said that there are three main healthcare areas that need attention: payment, capacity, and clinical judgment.

Scott Serota, of the Blue Cross and Blue Shield Association, said that there is generally uniformity and agreement on the healthcare issues, and asked “why aren’t we doing it?” Serota had four recommendations on the areas that he thought needed focus. He said that research on “what really works” needs to be encouraged, there needs to be a change in incentives, consumer and providers needs to be empowered to make good decisions, and a focus on health and wellness needs to be promoted.

Democrats Discuss the Advantages of their Budget

Democratic Senators Kent Conrad (D-ND) and Max Baucus (D-MONT.), Representatives John Spratt (D-SC) and George Miller (D-CA) held a press conference today talking about the Democratic Budget. Sharon Patterson-Stallings, a recipient of the Low-Income Home Energy Assistance Program (LIHEAP) and Carmen Berkley, a recent graduate from Pittsburgh University and Vice-President of the United States Student Association also joined the Senators and the Representatives to show their support to the Budget. This week, the Senate and the House will be debating the Democrats’ plan to cut taxes for the middle class, create jobs at home and strengthen the economy.

The plan is concentrated on education tax cuts, energy tax cuts, Alternative Minimum Tax relief and infrastructure. The objective is to restore fiscal responsible balance by 2012/2013.

This budget promises to secure both complex domestic society and economic leadership, “where Bush has failed” said Chairman Miller. It also promises to help homeowners, by property tax deduction, not only itemizing it, helps soldiers get houses, helps families with children and helps College graduates with their loans.

The Senate Budget Committee seeks answers on the timeline and total of 2009 war funding

The Senate Budget Committee held a hearing on the 2009 defense budget and war costs. Witnesses were Assistant Secretary of Defense Gordon England, Defense Controller Tina Jonas, and General James Cartwright, vice chairman of the joint chiefs of staff.

Ranking member Judd Gregg (R-NH) was not present. After chairman Kent Conrad's opening statement, Wayne Allard (R-CO) made a statement for the Republicans. Both senators mentioned the $70 billion in supplemental war funding as obviously incomplete and vaguely justified.

In his opening statement Conrad made a reference to an interview in the early days of the war where former Defense Secretary Donald Rumsfeld where the former Defense secretary  said that the war was estimated at $50 billion.

The focus remained on the discrepancies between the base budget and the war funding which is separate. Both Conrad and Allard asked questions seeking a more realistic, long term projected figure. Secretary Robert Gates had made a statement with the number of $170 billion. But while England agreed with the secretary's estimate he said that both a final war funding figure and a date on which a funding figure for '09 would be known depended on what Gen. Petraeus says this spring and the appropriation of $102 billion from the 2008 war supplemental budget request.

Additionally changes in the labor market, such as a decline in manufacturing and the unpredictability of the market and government budgeting, came up as a concern. General Cartwright said that these things are "challenging" and he discussed the idea of budgeting for two years.

Sen. Bernie Sanders (I-VT) asked outright whether parts of the procurement section the Defense Department budget was being aimed at a future conflict with China or Russia. Secretary England said that Russian and Chinese defense systems are considered in future Defense spending but as to specific threats being considered England said that he would have to speak in a more classified setting.

Conrad said that they hoped to bring the budget to the floor by the first or second week of March.