Hendersonville Lightning in Hendersonville, North Carolina

Federal budget debate centers on mandatory versus discretionary spending

Ron Davis, retired Dow Chemical general counsel and Flat Rock Village Council member, explains the 2014 federal budget structure. He cites $3.778 trillion total spending with $3.034 trillion in revenues and $744 billion borrowed, noting 70 percent of the budget is mandatory and must be set by law, while the remaining 30 percent is discretionary, dominated by defense, veterans benefits, education, and government operations. He warns that even large discretionary cuts cannot balance the budget without reforming mandatory programs and adjusting entitlement rules.