Understandiing the continuing resolution moravitz

© Copyright IBM Corporation 2008

Global Business Services

Carl L. MoravitzIBM Global Business ServicesFebruary 2011

Continuing Resolutions

Background

2 © Copyright IBM Corporation 2008

Continuing Resolution – Background

We’ve had CRs for most of the past 30 years . . .

However, seldom have they been across all of government for this long (the last extended period, 1995)

The new Congress wants to change the budget for the FY 2011:

Reduce funding to be implemented over the last 7 months

Potentially driving funding to lower that last year’s level

Actions may result in perpetual CR – at least through FY 2012, including Defense, Veterans, and DHS, which have traditionally been funded through enacted appropriations

Serious discussions are underway about going back to 2008 spending levels—or earlier!

Serious discussions are underway about going back to 2008 spending levels—or earlier!


Continuing Resolution – Background CRs fund programs, whose appropriations have expired and new

funding has not been authorized for the new fiscal year

Nearly all salaries and expenses of federal departments and agencies are supported by this kind of appropriation

CRs normally authorize departments and agencies to keep funding their programs at the level of the previous year's appropriations

For Fiscal 2011, an initial CR was enacted to cover government through early December 2010.

Before adjournment of the 111th Congress in December, however, another CR (PL 111-322) was enacted to continue government operations through March 4, 2011



The current CR law funds most departments, agencies and programs at the levels enacted for FY2010, with a few targeted adjustments, in such areas as:

Agriculture programs

Census activities

Transportation projects

Homeland Security

Defense

Veterans operations

The current CR legislation funding government through March 4, 2011 (PL 111-322) also enacts a provision that freezes the pay of federal civilian workers for two years (calendar years 2011 and 2012).



New 112th Congress (starting up in January 2011) is left with unfinished business from the 111th Congress

Needs to address approval of all 12 appropriations bills prior to March 4, 2011, while at the same time beginning the deliberation on funding for FY 2012.

It’s likely that the current CR may be extended to fund operations through the rest of the fiscal year, if Congress is unable to agree on authorized funding levels for FY 2011.

Full Year CR May Be Needed for all of FY 2011 (Current CR Expires March 4, 2011)

Full Year CR May Be Needed for all of FY 2011 (Current CR Expires March 4, 2011)



Resolution of FY 2011 funding and the pending CR are complicated by several proposals to significantly reduce funding for non-security agencies (non-defense, non-veterans, non-department of homeland security).

Proposals call for reductions for non-security agencies back to FY 2008 levels ($80 billion)

Reductions, if implemented, would likely fall in the $50 plus billion range due to the late enactment of FY 2011 legislation – although, the House is pushing for the full $80B

A short-term extension is likely into early April, while to debate on funding levels is underway.

Congress Considering Cuts in FY 2011

House Begins Debates on Cuts Week of February 14, 2011

Congress Considering Cuts in FY 2011

House Begins Debates on Cuts Week of February 14, 2011

Understandiing the continuing resolution moravitz

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