Keith Hall, CBO Director – “In May, the Congress adopted a concurrent resolution on the budget for fiscal year 2016. That resolution requires CBO, to the greatest extent practicable, to incorporate macroeconomic effects into its 10-year cost estimates for major legislation that Congressional committees approve. Such estimates must also include, when practicable, a qualitative assessment of the budgetary effects for the following 20 years. Incorporating such macroeconomic feedback into cost estimates is often called dynamic scoring. Last month I gave a presentation at the Heritage Foundation to describe how CBO will implement dynamic scoring in response to that new requirement. Since the Congressional budget process was established in the 1970s, CBO’s cost estimates have typically not included dynamic analysis. (Among the few exceptions was our cost estimate in 2013 for immigration legislation that would have substantially increased the U.S. labor force.)…n light of our recent work and the budget resolution’s new requirement, I want to share CBO’s answers to several questions about dynamic analysis that we received from Members of Congress after hearings earlier this year before the Senate Budget Committee. (You can view the complete set of questions and CBO’s answers from the January 28 [2015] and June 16 [2015] hearings on our website.)”
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