WASHINGTON, DC—The mid-term elections are now history and theoutcome won't do much to change the outlook for2015, says Cassidy Turley's KevinThorpe. “The Republican victory will provide a new roadmapfor the Congressional agenda, but the more immediate issue will behow the federal budget is handled under the new leadership,” writesThorpe, chief economist for the Washington, DC-based servicesfirm.

At present, that budget is locked into place until September ofnext year via a two-year agreement placing specific caps ondiscretionary spending programs. “Republicans may decide to pushfor spending increases in defense, but the Democratic minority isunlikely to agree unless the spending increases include non-defenseprograms as well,” Thorpe writes. “Moreover, the President canstill veto any bill the new Congress submits, and the Republicanmajority still lacks the votes to override a veto.”

Since most of the US senators scheduled to stand for re-electionin 2016 are Republican, “it may even be difficult to get a simplemajority between now and the Presidential election,” Thorpe writes.“That leads us to believe there will be few substantive legislativechanges.” Cassidy Turley's baseline outlook calls for federalspending levels to remain roughly status quo—which is to sayflat—for the next year.