US Treasury Secretary Predicts Budget Deficit Near 7% GDP in 2024

U.S. Treasury Secretary Scott Bessent has projected the federal budget deficit for the current fiscal year to reach between 6.5% and 6.7% of GDP, marking the third consecutive year with a deficit exceeding 6%. He attributed this historic overspending largely to policies from the previous Biden administration, describing it as an unprecedented surge outside of major crises such as wars or pandemics. Bessent faced criticism from Democratic lawmakers who argued that Republican tax cuts, including those under President Trump, have contributed to the national debt, but he dismissed concerns about bond market reactions and credited improvements in IRS technology for increased tax revenues. Meanwhile, on a local level, Palatine Township Elementary District 15 is anticipating a $7.2 million deficit for the 2026 fiscal year due to the loss of federal emergency relief funds and rising costs for special education and hard-to-fill positions, which could reduce its reserve fund balance significantly. The district has managed some cost savings and staff adjustments but warns that financial challenges persist amid staffing shortages and enrollment fluctuations.