Post on 14-Dec-2015
Tales from the Sausage Factory:How the Federal Government
Gets a Budget
Neile L. Miller
Director
Office of Budget
U.S. Department of Energy
Budget Calendar
~April Outlines of the Administration budget for the coming year are in place.
April - Sept Agencies prepare budget requests.
Sept Agencies submit budgets to the Office of Management and Budget (OMB).
Sept-Nov OMB analysis of agency submissions
Nov-Dec Negotiations – Agencies and OMB.
Dec-Jan Final decisions by Administration.
Feb President submits Budget to Congress.
Feb – July Congressional Hearings /Committee Markups.
June - July Appropriations committees report bills.
Aug - Sept Appropriations bills passed by Congress.
Oct 1- Sep 30 The new fiscal year (FY). Agencies spend the amounts appropriated.
Fiscal Year is Oct 1-Sept 30
Process takes 18 Months before money is available to spend
During that time 3 budgets are in play. As of April, 2008:
FY-08 Budget is being spent
FY-09 budget is on the Hill
FY-10 Budget is being formulated in the agencies
Budget Calendar
~April Outlines of the Administration budget for the coming year are in place.
Size of Deficit
Administration Initiatives, e.g. Social Security
Projections:
Inflation
Unemployment
Economic Growth
Budget Calendar
~April Outlines of the Administration budget for the coming year are in place.
April - Sept Agencies prepare budget requests.
Agency Targets from OMB
Bottom up agency Process
Competition for funding within target
New Projects depending on room within target
Budget Calendar
~April Outlines of the Administration budget for the coming year are in place.
April - Sept Agencies prepare budget requests.
Sept Agencies submit budgets to the Office of Management and Budget (OMB).
Budget within target
Over-Target items that agency is willing to argue for (or see cut if OMB does not increase target)
Budget Calendar
~April Outlines of the Administration budget for the coming year are in place.
April - Sept Agencies prepare budget requests.
Sept Agencies submit budgets to the Office of Management and Budget (OMB).
Sept-Nov OMB analysis of agency submissions
Discussions with agencies
Director’s Review
Input from other offices in Executive Office of Pres.
Passback
Budget Calendar
~April Outlines of the Administration budget for the coming year are in place.
April - Sept Agencies prepare budget requests.
Sept Agencies submit budgets to the Office of Management and Budget (OMB).
Sept-Nov OMB analysis of agency submissions
Nov-Dec Negotiations – Agencies and OMB.
Appeals to:
OMB Assoc Dirs.
OMB Director
President
Budget Calendar
~April Outlines of the Administration budget for the coming year are in place.
April - Sept Agencies prepare budget requests.
Sept Agencies submit budgets to the Office of Management and Budget (OMB).
Sept-Nov OMB analysis of agency submissions
Nov-Dec Negotiations – Agencies and OMB.
Dec-Jan Final decisions by Administration.
Feb President submits Budget to Congress.
Feb – July Congressional Hearings /Committee Markups.
June - July Appropriations committees report bills.
Aug - Sept Appropriations bills passed by Congress.
Oct 1- Sep 30 The new fiscal year (FY). Agencies spend the amounts appropriated.
Congressional Budget Process
Appropriations SubcommitteesHouse (10), Senate (12)
Reconciliation instructions to Authorizing Committees
Allocations to Appropriations Committees
Individual Appropriations bills or an omnibus bill
Mandatory Discretionary
Submission to Congress
Budget Committee establishes spending levels
Authorizing committees• Legislation that affects discretionaryspending• Legislation that affects MandatorySpending
Law
Law
Appropriations Subcommittees (10), (12)House Senate
Reconciliation instructions to AuthorizingCommittees
Allocations to AppropriationsCommittees
Individual Appropriations bills or an omnibus bill
Mandatory Discretionary
Submission toCongress
Budget Committee establishes spendinglevels
Authorizing committees• Legislation that affects discretionaryspending• Legislation that affects MandatorySpending
LawLaw
LawLaw
But first a word about the Committees
(16)Agriculture, Nutrition, and Forestry Appropriations Armed Services Banking, Housing, and Urban Affairs Budget Commerce, Science, and Transportation
Energy and Natural Resources Environment and Public Works Finance Foreign Relations Health, Education, Labor, and Pensions Homeland Security and Governmental Affairs Judiciary Rules and Administration Small Business and Entrepreneurship Veterans Affairs
Senate Committees
Special, Select, and Other Indian Affairs Select Committee on Ethics Select Committee on Intelligence Special Committee on Aging
Joint Joint Committee on Printing Joint Committee on Taxation Joint Committee on the Library Joint Economic Committee
Authorizing Committees
Every program, e.g. Weapons, Yucca Mtn, was created by an authorizing committee.
After being created, they get a budget each year from the appropriations committee.
(20)
Committee on Agriculture Committee on Appropriations Committee on Armed Services Committee on the Budget Committee on Education and the Workforce Committee on Energy and Commerce Committee on Financial Services Committee on Government Reform Committee on Homeland Security Committee on House Administration Committee on International Relations Committee on the Judiciary Committee on Resources Committee on Rules Committee on Science Committee on Small Business Committee on Standards of Official Conduct Committee on Transportation and Infrastructure Committee on Veterans' Affairs Committee on Ways and Means
House Committees
Special, Select, and Other
House Permanent Select Committee on Intelligence
JointJoint Committee on Printing Joint Committee on TaxationJoint Committee on the LibraryJoint Economic Committee
Programs in place already.
Funding provided for those programs.
Funding levels changed each year
About 40% of budget
Appropriations SubcommitteesHouse (10), Senate (12)
Reconciliation instructions to Authorizing Committees
Allocations to Appropriations Committees
Individual Appropriations bills or an omnibus bill
Mandatory Discretionary
Submission to Congress
Budget Committee establishes spending levels
Authorizing committees• Legislation that affects discretionaryspending• Legislation that affects MandatorySpending
Law
Law
Appropriations Subcommittees (10), (12)House Senate
Reconciliation instructions to AuthorizingCommittees
Allocations to AppropriationsCommittees
Individual Appropriations bills or an omnibus bill
Mandatory Discretionary
Submission toCongress
Budget Committee establishes spendinglevels
Authorizing committees• Legislation that affects discretionaryspending• Legislation that affects MandatorySpending
LawLaw
LawLaw
Congressional Budget Process
Appropriations SubcommitteesHouse (10), Senate (12)
Reconciliation instructions to Authorizing Committees
Allocations to Appropriations Committees
Individual Appropriations bills or an omnibus bill
Mandatory Discretionary
Submission to Congress
Budget Committee establishes spending levels
Authorizing committees• Legislation that affects discretionaryspending• Legislation that affects MandatorySpending
Law
Law
Appropriations Subcommittees (10), (12)House Senate
Reconciliation instructions to AuthorizingCommittees
Allocations to AppropriationsCommittees
Individual Appropriations bills or an omnibus bill
Mandatory Discretionary
Submission toCongress
Budget Committee establishes spendinglevels
Authorizing committees• Legislation that affects discretionaryspending• Legislation that affects MandatorySpending
LawLaw
LawLaw
Programs themselves changed by legislation.
Spending dictated by eligibility (entitlements – Soc. Sec, Medicare)
Formulas (highway, grants)
About 60% of budget)
Congressional Budget Process
Appropriations SubcommitteesHouse (10), Senate (12)
Reconciliation instructions to Authorizing Committees
Allocations to Appropriations Committees
Individual Appropriations bills or an omnibus bill
Mandatory Discretionary
Submission to Congress
Budget Committee establishes spending levels
Authorizing committees• Legislation that affects discretionaryspending• Legislation that affects MandatorySpending
Law
Law
Appropriations Subcommittees (10), (12)House Senate
Reconciliation instructions to AuthorizingCommittees
Allocations to AppropriationsCommittees
Individual Appropriations bills or an omnibus bill
Mandatory Discretionary
Submission toCongress
Budget Committee establishes spendinglevels
Authorizing committees• Legislation that affects discretionaryspending• Legislation that affects MandatorySpending
LawLaw
LawLaw
Spending levels can differ:
From those in the Request
Between House and Senate
Congressional Budget Process
Appropriations SubcommitteesHouse (10), Senate (12)
Reconciliation instructions to Authorizing Committees
Allocations to Appropriations Committees
Individual Appropriations bills or an omnibus bill
Mandatory Discretionary
Submission to Congress
Budget Committee establishes spending levels
Authorizing committees• Legislation that affects discretionaryspending• Legislation that affects MandatorySpending
Law
Law
Appropriations Subcommittees (10), (12)House Senate
Reconciliation instructions to AuthorizingCommittees
Allocations to AppropriationsCommittees
Individual Appropriations bills or an omnibus bill
Mandatory Discretionary
Submission toCongress
Budget Committee establishes spendinglevels
Authorizing committees• Legislation that affects discretionaryspending• Legislation that affects MandatorySpending
LawLaw
LawLaw
Congressional Budget Process
Appropriations SubcommitteesHouse (10), Senate (12)
Reconciliation instructions to Authorizing Committees
Allocations to Appropriations Committees
Individual Appropriations bills or an omnibus bill
Mandatory Discretionary
Submission to Congress
Budget Committee establishes spending levels
Authorizing committees• Legislation that affects discretionaryspending• Legislation that affects MandatorySpending
Law
Law
Appropriations Subcommittees (10), (12)House Senate
Reconciliation instructions to AuthorizingCommittees
Allocations to AppropriationsCommittees
Individual Appropriations bills or an omnibus bill
Mandatory Discretionary
Submission toCongress
Budget Committee establishes spendinglevels
Authorizing committees• Legislation that affects discretionaryspending• Legislation that affects MandatorySpending
LawLaw
LawLaw
Note that one agency may have to deal with more than one subcommittee.
Highlights show which committees deal with Defense Department
Congressional Budget Process
Appropriations SubcommitteesHouse (10), Senate (12)
Reconciliation instructions to Authorizing Committees
Allocations to Appropriations Committees
Individual Appropriations bills or an omnibus bill
Mandatory Discretionary
Submission to Congress
Budget Committee establishes spending levels
Authorizing committees• Legislation that affects discretionaryspending• Legislation that affects MandatorySpending
Law
Law
Appropriations Subcommittees (10), (12)House Senate
Reconciliation instructions to AuthorizingCommittees
Allocations to AppropriationsCommittees
Individual Appropriations bills or an omnibus bill
Mandatory Discretionary
Submission toCongress
Budget Committee establishes spendinglevels
Authorizing committees• Legislation that affects discretionaryspending• Legislation that affects MandatorySpending
LawLaw
LawLaw
Congressional Budget Process
Appropriations SubcommitteesHouse (10), Senate (12)
Reconciliation instructions to Authorizing Committees
Allocations to Appropriations Committees
Individual Appropriations bills or an omnibus bill
Mandatory Discretionary
Submission to Congress
Budget Committee establishes spending levels
Authorizing committees• Legislation that affects discretionaryspending• Legislation that affects MandatorySpending
Law
Law
Appropriations Subcommittees (10), (12)House Senate
Reconciliation instructions to AuthorizingCommittees
Allocations to AppropriationsCommittees
Individual Appropriations bills or an omnibus bill
Mandatory Discretionary
Submission toCongress
Budget Committee establishes spendinglevels
Authorizing committees• Legislation that affects discretionaryspending• Legislation that affects MandatorySpending
LawLaw
LawLaw
Hearings
Feb-July
Bills Reported & passed June-July
Final Bills passed Aug-Sept
Spending starts Oct 1
Conference Committees July-Aug
Committee Report
Comm. Vote House VoteCommittee Report
Comm. VoteSenate Vote
Conf. Report
House Vote
Senate Vote
Energy & Water
Subcommittee Markup
5/24/2006 Subcommittee Markup
HR5427 5/11/2006 rc 6/27/2006Highlights -------------
------------- Committee Markup
Committee Markup
6/29/2006
5/17/2006Highlights
Public Law
H.Rept. 109-474
S.Rept. 109-274
Appropriations
House Approvals Senate Approvals Conference Approvals
Status of the DOE Appropriations Bills – Oct 1, 2006
Ref. http://thomas.loc.gov/home/approp/app07.html
Federal Debt and DeficitData for FY 2005:
•Outlays were $2.47 T
•Deficit was $0.32 T
•Debt was $7.9 T
Which means that:
•The Government borrowed 13% of the money spent was borrowed.
•Government debt was 3.2 times amount spent.
U.S. Budget for 2007: Charts 23.1, 16.2
FY 2005 FEDERAL BUDGET OUTLAYS
Total = $2.472 Trillion
Non-Defense
Discretionary
19.%
Defense
Discretionary
20%Net Interest on Debt 7%
Social Security,
Medicare, Medicaid,
Welfare, Other
Mandatory
54%
Ref: US Budget 2007 Table 20-2
20%
19%54%
7%
Includes:
•Homeland Security
•Veterans Affairs
•International Affairs
Surplus or Deficit
$(500)$(400)$(300)$(200)$(100)$-$100$200$300$400$500
1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004
Fiscal Year
$ in billions
Bush Clinton GWBushReagan
Federal Debt and Deficit•Surplus in 4 of last 25 years.