fiscal 2011

This Associated Press story is creating a lot of unnecessary buzz in Washington.  In fact, the coverage may well be a total overreaction to a complete nonstory.

As reported by the AP, Office of Management and Budget Director Peter Orzag has told federal agencies and departments to prepare two possible fiscal 2011 budgets: one that holds spending flat and another that cuts spending by 5 percent.  That led the AP to say that the White House is planning a "budget freeze."

Here's the back story the AP didn't include.

1.  Almost all administrations ask agencies and departments to put together multiple budgets based on alternative scenarios like a 5 percent increase, a 5 percent decrease, and no growth.  So the fact that the Obama White House has asked for multiple options not only is no big deal and definitely not news.