Transcript Document

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).
Fiscal Year is Oct 1-Sept 30
Sept-Nov
Process takes 18 Months before
money is available to spend
OMB analysis of agency submissions
Nov-Dec
Negotiations – Agencies and OMB.
Dec-Jan
During that time 3 budgets are in
As of April, 2008:
Final decisions byplay.
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
FY-08 Budget is being spent
FY-09 budget is on the Hill
FY-10 Budget is being
formulated
thetheagencies
The new fiscal year
(FY). Agenciesin
spend
amounts appropriated.
Budget Calendar
~April
Outlines of the Administration budget for the coming year are in place.
Projections:
Size of Deficit
Inflation
Administration
Initiatives,
e.g. Social
Security
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
Submission to
Congress
Budget Committee establishes spending
levels
Mandatory
Reconciliation instructions to Authorizing
Committees
Authorizing committees
Legislation that affects discretionary
spending
Legislation that affects Mandatory
Spending
Discretionary
But first a
word about
the
Committees
Allocations to Appropriations
Committees
Appropriations Subcommittees
House (10), Senate (12)
Individual Appropriations bills
or an omnibus bill
Law
Law
Senate 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
Special,
Select, and
Other
Every
program,
e.g.
Weapons,
Indian Affairs
Yucca
Mtn, was
created by an
Select Committee
on Ethics
Select Committee
on Intelligence
authorizing
committee.
Special Committee on Aging
After being created, they get a
Joint
budget
each year
from the
Joint Committee
on Printing
Joint Committee oncommittee.
Taxation
appropriations
Joint Committee on the Library
Joint Economic Committee
Authorizing Committees
(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
Joint
Joint Committee on Printing
Joint Committee on Taxation
Joint Committee on the Library
Joint Economic Committee
Programs in place
already.
Submission to
Congress
Budget Committee establishes spending
levels
Mandatory
Reconciliation instructions to Authorizing
Committees
Authorizing committees
Legislation that affects discretionary
spending
Legislation that affects Mandatory
Spending
Discretionary
Funding provided
for those programs.
Funding levels
changed each year
About 40% of
budget
Allocations to Appropriations
Committees
Appropriations Subcommittees
House (10), Senate (12)
Individual Appropriations bills
or an omnibus bill
Law
Law
Programs themselves changed by
legislation.
Congressional Budget Process
Spending dictated by eligibility
(entitlements – Soc. Sec, Medicare)
Submission to
Formulas (highway,
Congress grants)
Budget Committee establishes spending
levels
About 60% of budget)
Mandatory
Reconciliation instructions to Authorizing
Committees
Authorizing committees
Legislation that affects discretionary
spending
Legislation that affects Mandatory
Spending
Discretionary
Allocations to Appropriations
Committees
Appropriations Subcommittees
House (10), Senate (12)
Individual Appropriations bills
or an omnibus bill
Law
Law
Spending levels
can differ:
Congressional Budget Process
Submission to
Congress
Budget Committee establishes spending
levels
From those in the
Request
Mandatory
Between House
and Senate
Reconciliation instructions to Authorizing
Committees
Authorizing committees
Legislation that affects discretionary
spending
Legislation that affects Mandatory
Spending
Discretionary
Allocations to Appropriations
Committees
Appropriations Subcommittees
House (10), Senate (12)
Individual Appropriations bills
or an omnibus bill
Law
Law
Congressional Budget Process
Submission to
Congress
Budget Committee establishes spending
levels
Mandatory
Reconciliation instructions to Authorizing
Committees
Authorizing committees
Legislation that affects discretionary
spending
Legislation that affects Mandatory
Spending
Discretionary
Allocations to Appropriations
Committees
Appropriations Subcommittees
House (10), Senate (12)
Individual Appropriations bills
or an omnibus bill
Law
Law
Congressional Budget Process
Submission to
Congress
Budget Committee establishes spending
levels
Mandatory
Reconciliation instructions to Authorizing
Committees
Authorizing committees
Legislation that affects discretionary
spending
Legislation that affects Mandatory
Spending
Discretionary
Allocations to Appropriations
Committees
Appropriations Subcommittees
House (10), Senate (12)
Individual Appropriations bills
or an omnibus bill
Law
Law
Note that one agency
may have to deal with
more than one
subcommittee.
Highlights show which
committees deal with
Defense Department
Congressional Budget Process
Submission to
Congress
Budget Committee establishes spending
levels
Mandatory
Reconciliation instructions to Authorizing
Committees
Authorizing committees
Legislation that affects discretionary
spending
Legislation that affects Mandatory
Spending
Discretionary
Allocations to Appropriations
Committees
Appropriations Subcommittees
House (10), Senate (12)
Individual Appropriations bills
or an omnibus bill
Law
Law
Congressional Budget Process
Submission to
Congress
Budget Committee establishes spending
levels
Mandatory
Reconciliation instructions to Authorizing
Committees
Discretionary
Allocations to Appropriations
Committees
Hearings
Authorizing committees
Legislation that affects discretionary
spending
Legislation that affects Mandatory
Spending
Conference Committees July-Aug
Appropriations Subcommittees
House (10), Senate (12)
Individual Appropriations bills
or an omnibus bill
Law
Feb-July
Bills Reported &
passed June-July
Final Bills passed Aug-Sept
Law
Spending starts Oct 1
Status of the DOE Appropriations Bills – Oct 1, 2006
House Approvals
Appropria
Committe
tions
e Report
Energy &
Water
HR5427
Comm. Vote
Senate Approvals
House Vote
Committe
e Report
Comm. Vote
Conference Approvals
Senate
Vote
Conf.
Report
House
Vote
Senate
Vote
H.Rept. Subcommittee 5/24/2006 S.Rept. Subcommitt
109-474
109-274 ee Markup
Markup
5/11/2006
Highlights
rc
6/27/2006
-------------
-------------
Committee
Markup
Committee
Markup
6/29/2006
5/17/2006
Highlights
Ref. http://thomas.loc.gov/home/approp/app07.html
Public
Law
Federal Debt and Deficit
Data 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
Defense
Discretionary
Net Interest on Debt 7%
20%
7%
20%
Social Security,
Non-Defense
Medicare, Medicaid,
Discretionary
19%
Welfare, Other
54%
19.%
Mandatory
54%
Includes:
•Homeland Security
•Veterans Affairs
•International Affairs
Ref: US Budget 2007 Table 20-2
Federal Debt and Deficit
•Surplus in 4 of last 25 years.
Fiscal Year
2004
2002
2000
1998
GWBush
1996
1994
Clinton
1992
1988
Bush
1986
1984
Reagan
1990
$500
$400
$300
$200
$100
$$(100)
$(200)
$(300)
$(400)
$(500)
1982
$ in billions
Surplus or Deficit
Federal Debt and Deficit
$ in Trillions
Federal Debt vs GDP
$20
$18
$16
$14
$12
$10
$8
$6
$4
$2
$-
68%
63%
2005
2006
2007
2008
2009
2010
2011
Year
Total Federal Debt
GDP (then year dollars)
U.S. Budget for 2007: Charts 12.1, 16.2