US Government Debt Different - Finance Department - University of ...

Jeremy Kreisberg & Kelley O’Mara (Under the Supervision of Professor Howell Jackson)with special expedited procedures 93 to adopt a joint resolution ofdisapproval to prevent a further increase in the limit within 15 daysof this certification. 94 As provided for in the BCA, the amount ofthe third increase was to be $1.2 trillion. 95 However, if the Senatesubmitted to the states a proposed balanced budget amendment fortheir ratification, the debt limit would be raised by $1.5 trillion. 96Alternatively, if the Super Committee achieved deficit reductionexceeding $1.2 trillion, the increase would be equal to the amountof that reduction, up to $1.5 trillion. 97 Ultimately, the third increasewas limited to $1.2 trillion, as a balanced budget amendment wasnot submitted for ratification, and the Super Committee failed toachieve deficit reduction. 98271On January 28, 2012, the debt limit was increased by $1.2 trillionto $16.394 trillion, 99 despite another House disapproval measure. 100As currently projected by the BiPartisan Policy Center, the nationwill reach its new debt limit between late November 2012 and earlyJanuary 2013. 101 If “extraordinary measures” are again relied upon,the nation’s borrowing authority is predicted to be exhausted inFebruary 2013 without a further increase to the debt limit. 1029331 U.S.C. §§ 3101A(c) – 3101A(d) (2011).9431 U.S.C. § 3101A(b) (2011). 31 U.S.C. § 3101A(f)(6) (2011) provides that if such aresolution were passed over a likely presidential veto, the debt limit would not be increasedand the Office of Management and Budget (“OMB”) would sequester budgetary resources ona “pro rata” basis. Effectively, this would mean across-the-board spending cuts to both defenseand non-defense programs, not already exempt based on the Balanced Budget and EmergencyDeficit Control Act of 1985.9531 U.S.C. § 3103(A)(a)(2)(i) (2011).9631 U.S.C. § 3103(A)(a)(2)(ii) (2011).9731 U.S.C. § 3103(A)(a)(2)(iii) (2011).98Heidi Przybyla, Supercommittee Failure Threatens Recovery as Rating Affirmed, BloombergBusinessweek, Dec. 3, 2011, http://www.businessweek.com/news/2011-12-03/supercommittee-failure-threatens-recovery-as-rating-affirmed.html.99Austin & Levit, supra note 2, at 1. Debt outstanding at the end of Jan. 2012 was $15,214trillion. Raise followed a Jan. 12, 2012 certification by the President that the debt was within$100 billion of the limit.100Id. Disapproval measure passed the House on Jan. 18, 2012 (H.J. Res. 98), 239-176 vote.101Steve Bell, Loren Adler & Shai Akabas, The Debt Ceiling Slouches Toward 2012, BiPartisanPolicy Center (Feb. 24, 2012) (available at http://www.bipartisanpolicy.org/blog/2012/02/debt-ceiling-slouches-toward-2012).102Id.