Transcript Federal Budget 101 for 2003

Congressional Budget Process
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Enacted to bring order to decision
making
Establishes timetable for orderly
decision-making
Establishes rules and procedures for
fiscal legislation
Intended to give Congress a level
playing field with the Executive Branch
Budget Process Simplified
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President submits a budget (1st Monday
in February)
Congress considers Budget Resolution
Reconciliation instructions to
Committees/Allocations of Funding
Reconciliation enacted
Appropriations enacted
Tools Of The Trade
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Congress adopts a “Budget Resolution” or a
blueprint for spending and revenues for the
year ahead.
Allocates Budget Authority to the
Appropriations Committee/Reconciliation
Congress spends the rest of the year (and
maybe more!) building the structure laid out.
Income Side
Revenues (income taxes, payroll
taxes, etc.)
Receipts (fees, asset sales, etc.)
Spending Side
Two principle ways of spending
money:
Discretionary appropriations
(defense, domestic, international .
. . Salaries, grants, contracts
Entitlements (Social Security,
Medicare, Guaranteed Student
Loans, CSRS/FERS)
Managing The Balance
Deficit = Revenues –
Spending!
Budget Terms
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The BUDGET RESOLUTION is the
blueprint by which all congressional
spending and revenue decisions are
made. It is enforced through House and
Senate rules and procedures. The
BUDGET RESOLUTION is a concurrent
resolution between the House and
Senate and does not go to the
President for his signature.
Budget Terms
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In simple terms, the BUDGET RESOLUTION
allocates funds to the Appropriations
Committees to appropriate at their discretion
(discretionary appropriations) and directs
Authorizing Committees (all committees other
than Appropriations) to recommend change in
laws to bring legislation into line with the plan
through a RECONCILIATION procedure.
Budget Timetable
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February
5
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MidMarch
President submits Fiscal Year
2008 Budget
Committees submit “views and
estimates” on FY 2008 Budget
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By April 15
Congress completes action (conference report)
on the Congressional BUDGET RESOLUTION for
fiscal years 2008 through 2017, including, if necessary,
RECONCILIATION instructions to committees of jurisdiction.
(Only in 1976, 1977 and 1994 did Congress meet this deadline.)
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After April 15
Congressional committees respond to
RECONCILIATION instructions by recommending
changes in laws within
their jurisdictions which would achieve savings
in entitlement/direct spending programs (federal
retirement) or increase receipts through tax law
changes.
RECONCILIATION legislation enjoys
special treatment for congressional action.
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May 15
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By June
10
Appropriations bills may be considered in the
House of Representatives even in the absence of
agreement on a conference report on the
BUDGET RESOLUTION for the upcoming
fiscal year.
House Appropriations Committee finished
reporting all 13 regular appropriations bills
for fiscal year 2008.
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By June 15
Congress completes action on
RECONCILIATION legislation, making changes in
entitlement laws, direct spending programs, and tax
laws in order to bring congressional action into line
with the BUDGET RESOLUTION blueprint.
(Congress has never completes RECONCILIATION
legislation by this date; earliest was July 31, 1981.)
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By June 30
House completes action on all 13
regular appropriations bills for fiscal year 2008.
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July/August
Senate completes action on appropriations bills.
Conferences commence between the House and Senate to
resolve differences in appropriations legislation.
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September 30
House and Senate complete action on
conference report on appropriations
bills for fiscal year 2008 – send to the
President.
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October 1
Fiscal Year 2008 begins.
Other Influences
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The size of the deficit
The cost of the war
Katrina/Disaster Relief/Rebuilding
Tax cut politics
Committee Allocations
An election year?