Budget lessons that Washington can learn from the states

At the heart of the political events that rocked Washington this week was the notion that Congress, at its most basic function, is responsible for passing individual appropriations bills, and, in essence, a budget.  

Not only has Congress failed to do this since the 1990s, but federal policymakers haven’t even really tried. The 1974 Congressional Budget Act outlines the process for lawmakers to follow, but Congress has treated this law as a recommendation rather than a requirement. Evidently U.S. representatives and senators can get away with not following the law. It is doubtful that you or I would be as lucky if we tried the same. 

Rather than follow regular order and the required budget process, Congress routinely passes quick-fix spending bills at the very end of the fiscal year.  

On Saturday night, Americans watched as this usual routine unfolded. Congress passed a Continuing Resolution to keep the government funded until mid-November. This last-minute vote to avoid a shutdown came after a long summer break followed by a month of little to no action. As a handful of conservative lawmakers have rightly pointed out over the years, this deal amounts to little more than kicking the can down the road. This is not exactly a sign of confidence for the American people.

If only we had somewhere to look for hope. Fortunately, we do — but it’s not in the nation’s capital. 

For guidance on how to follow a budget process, members of Congress should look back home, in their respective states. Every year, state lawmakers start with separate budgets for each department. Committees spend months going line by line through their respective budgets, debating the pros and cons of different spending levels and discussing tradeoffs between funding one program over another. This is, after all, what students are taught about how government operates. 

All 50 states have already passed budgets for 2024. Imagine that. State lawmakers, many of them part-time, in red, blue, and purple states, all managed to do what Washington, D.C., fails to do year after year: pass a budget in an open, democratic process. 

To be fair, I am sure that there are many problems with some state budgets. During my time in the Michigan legislature, I often found it necessary to vote against proposed budgets. For example, even after months of committee work to create a balanced and responsible budget, pork projects would be added in at the last minute. Such practices are widespread, and there will always be room for improvement in each state. However, compared to Congress, state budget processes are nearly utopian. 

As is often the case, state capitals are once again a beacon of hope for our country and where the federal government can learn how to pass a budget. What’s striking, however, is federal lawmakers should know this. Roughly half of them served as state lawmakers before jumping to Congress. They know that there is much for the federal government to learn from the states. 

Clearly, the professional political class is not the answer. Where they have failed, part-time citizen lawmakers have succeeded. It’s time the federal government learns from the states how to pass a budget. 

Steve Johnson is the Center for Practical Federalism Fellow at State Policy Network and a former state representative from Michigan.