The Congressional Budget Office (CBO) is a federal agency within the legislative branch of the United States government that provides budget and economic information to Congress. It is headquartered at the Ford House Office Building in Washington, DC. Inspired by California's Legislative Analyst's Office that manages the state budget in a strictly nonpartisan fashion, the CBO was created as a nonpartisan agency by the Congressional Budget and Impoundment Control Act of 1974.
Whereas politicians on both sides of the aisle have criticized the CBO when its estimates have been politically inconvenient, Official operations began on February 24, 1975, with Alice Rivlin as director.
The CBO's creation stems from a fight between President Nixon and a Democratic-controlled Congress. Congress wanted to protect its power of the purse from the executive. The CBO was created "within the legislative branch to bolster Congress's budgetary understanding and ability to act. Lawmakers' aim was both technical and political: Generate a source of budgetary expertise to aid in writing annual budgets and lessen the legislature's reliance on the president's Office of Management and Budget." Each year, the agency releases reports and cost estimates for proposed legislation, without issuing any policy recommendations.
With respect to estimating spending for Congress, the Congressional Budget Office serves a purpose parallel to that of the Joint Committee on Taxation for estimating revenue for Congress, the Department of the Treasury for estimating revenues for the Executive branch. This includes projections on the effect on national debt and cost estimates for legislation.
Operations
Section 202(e) of the Budget Act requires the CBO to submit periodic reports about fiscal policy to the House and Senate budget committees to provide baseline projections of the federal budget. This is currently done by preparation of an annual Economic and Budget Outlook plus a mid-year update. The agency also each year issues An Analysis of the President's Budgetary Proposals for the upcoming fiscal year per a standing request of the Senate Committee on Appropriations. These three series are designated essential titles distributed to Federal Depository Libraries and are available for purchase from the Government Publishing Office. The CBO often provides testimony in response to requests from various Congressional committees and issues letters responding to queries made by members of Congress.
Divisions
The Congressional Budget Office is divided into nine divisions.
- Budget Analysis
- Financial Analysis
- Health Analysis
- Labor, Income Security, and Long-Term Analysis
- Macroeconomic Analysis
- Management, Business, and Information Services
- Microeconomic Studies
- National Security
- Tax Analysis
Director
thumb|[[Ford House Office Building, headquarters for the CBO]]
The speaker of the House of Representatives and the president pro tempore of the Senate jointly appoint the CBO director after considering recommendations from the two budget committees. The term of office is four years, with no limit on the number of terms a director may serve. Either house of Congress, however, may remove the director by resolution. At the expiration of a term of office, the person serving as director may continue in the position until his or her successor is appointed. The list of directors of the CBO are:
{| class="wikitable sortable"
! Director
! Term
|-
|
| – August 31, 1983
|-
|
| – April 28, 1987
|-
|
| – December 1987
|-
|
| – March 6, 1989
|-
|
| – February 28, 1995
|-
|
| – January 29, 1999
|-
|
| – February 3, 1999
|-
|
| – January 3, 2003
|-
|
| – February 5, 2003
|-
|
| – December 29, 2005
|-
|
| – January 18, 2007
|-
|
| – November 25, 2008
|-
|
| – January 22, 2009
|-
|
| – March 31, 2015
|-
|
| – May 31, 2019
|-
| data-sort-value="Swagel Phil" | Phillip Swagel
| – present
|}
Reception
Whereas politicians on both sides of the aisle have criticized the CBO when its estimates have been politically inconvenient, According to MIT economist David Autor, the "CBO has a good track record with a very difficult assignment. It errs, but not systematically or with partisan intent."