Transcript Budget 101 Workshop

Budget 101 Workshop
Committee for Education Funding
April 29, 2011
Stephanie Giesecke
NAICU
CEF Basics
 Founded
in 1969 to achieve adequate
federal funding for education system
 Over 80 member organizations
representing PreK through post-graduate
 Focus on Congressional Budget and
Appropriations Action
 Oppose cutting one education program to
pay for another
What is a Budget?
 Practical
 Political
 Part
document
document
of Checks and Balances
 Congress
has the Power of the Purse
Basic Budget Terms
 Authorization
v. Appropriation
 Budget Authority (BA) v. Outlays (OL)
 Discretionary v. Mandatory
 Fiscal Year v. Award Year
 Forward Funded
 Advanced Appropriations
 Scoring (CBO v. OMB)
 Deficit v. Debt
Administration Budget Process
3
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Phases of Agency Process:
Formulation
Presentation to Congress
Execution
 2.5
 ED
year period; 2-3 FYs
Budget Service working on FY 2013
NOW
ED FY 2013 Process Basics
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Spring 2011 – Start FY 2013 Recommendations
Summer 2011 – FY 2012 Mid-Session Review
Fall 2011 – FY 2013 Request to OMB/Passback
Fall 2011 – FY 2012 Congressional Action
Fall 2011 – Certify FY 2011 Actuals
December 2011 – Prepare President’s FY 2013
Budget Submission
Congressional Budget and
Appropriations Process
 Rules
were made to be broken
 Not just a process, but a lobbying plan
 Two Parts of the Process:
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Congressional Budget Resolution
Annual Appropriations Bills
 Two
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areas CEF focuses on:
Function 500 (Budget Resolution)
Labor-HHS-Education Appropriations
Subcommittee
Congressional Budget Resolution
 Does
3 important things:
1) Sets spending and revenue totals
• Function 500: Education, Training and Social
Services
• Function 550 : Health
• 302 (a) sent to Appropriations Committee

302 (b) Labor-HHS-Education Subcommittee allocation
2) Sets deficit reduction targets
3) Provides reconciliation instructions
February
March
March
May 15
Spring
Summer
Reconciliation Process
Deadlines in Budget Resolution
April 15
Summer
Fall
September 30
Image Source: Senate Budget Committee Website
Questions about Budget
and Appropriations
Process?
History of the Federal Budget
Control government spending
Create a Process
 1870 Anti-Deficiency Act
 1974 Budget Impoundment and Control
Act
 1985, 1987 Gramm-Rudman-Hollings
 1990 Budget Enforcement Act expired
2002
Process Reform 2011
 New
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House Rules
Cut-as-you-go
Strikes Gephardt Rule
Reconciliation cannot be used for “spending”
Published and “deemed” spending totals for
FY 2011
Exempts tax cuts and repeal of HC from
PAYGO scorecard
Requires “spending reduction account” in
approps bills
Process Reform 2011
 Balanced
Budget Amendment proposals
 Bipartisan Fiscal Commissions
 Debt Ceiling bill will carry cuts
 Global Caps
 Focus
on Discretionary Spending
Big Picture:
President’s FY 2012 Outlays
$ 0.242 T
7%
$1.34 T
36%
Discretionary
Mandatory
Interest
$ 2.14 T
57%
$3.7 Trillion in Total Spending
Big Picture: Sliced
(FY 2012 Budget Request, in Billions)
Security
242, 6%
Non-Security
Social Security
612, 16%
Medicare
884, 25%
Medicaid
Other
TARP
269, 7%
Interest
456, 12%
485, 13%
761, 21%
Disaster
Big Picture: Diced
(FY 2012 Budget Request, in Billions)
$77.4
2%
Security
Non-Security
Social Security
Medicare
Medicaid
Other
TARP
Interest
Disaster
Education
What’s at Stake?