congressional budget process enacted to bring order to decision making establishes timetable for...

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Congressional Budget ProcessEnacted to bring order to decision

makingEstablishes timetable for orderly

decisionmakingEstablishes rules and procedures for

fiscal legislationIntended to give Congress a level

playing field with the Executive Branch

Tools Of The TradeCongress adopts a “Budget Resolution”

or a blueprint for spending and revenues for the year ahead.

Congress spends the rest of the year (and maybe more!) building the structure laid out.

Two principle ways of spending money:Discretionary appropriations (defense,

domestic, international . . . Salaries, grants, contracts

Entitlements (Social Security, Medicare, Guaranteed Student Loans,

CSRS/FERS)

Revenues (income taxes, payroll taxes, etc.)

Receipts (fees, asset sales, etc.)

Budget Timetable 

Late February

 President submits Fiscal Year 2010 Budget Principles

 Mid March

Committees submit “views and estimates” on FY 2010 Budget

Early April

President Obama formally submits his Fiscal Year 2010 Budget

By April 15 

Congress completes action (conference report) on the Congressional BUDGET RESOLUTION for fiscal years 2010 through 2020, including, if necessary, RECONCILIATION instructions to committees of jurisdiction. (Deadline met only in 1976, 1977 and 1994.)

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.

$May 15

 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.

$By June 10

 House Appropriations Committee finishes reporting all 12 regular appropriations bills for fiscal year 2010.

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.)

$By June 30 House completes action on all 13 regular appropriations bills for fiscal year 2010.

$July/AugustSenate completes action on appropriations bills. Conferences commence between the House and Senate to resolve differences in appropriations legislation.

$September 30House and Senate complete action on conference report on appropriations bills for fiscal year 2010 – send to the President.

October 1Fiscal Year 2010 begins.

InfluencesThe ECONOMYThe size of the deficitThe cost of the warCost of Health Care/ReformElectoral politics

NARFE Budget-Related AgendaFirst Do No HarmPremium Conversion ($)Government Pension Offset ($)Windfall Elimination Provision ($)

Stimulus

GoalNo Budget Resolution adverse assumptions on civil service/postal service/retirement or benefits

No reconciliation directive in the FY 2010 Budget Resolution

Include sufficient specific resources for the NARFE Legislative Agenda

FEDERAL CIVIL SERVICE RETIREMENT AND HEALTH BENEFITS

REMAIN UNSCATHED IN OBAMA BUDGET, BUT NARFE RAISES CONCERNS ABOUT

PAY DISPARITY AND MEDICARE MEANS TESTING PROPOSALS

Concord

Provide Nearly 60 Million Retired and disabled Americans an immediate $250 Through Temporarily increasing Benefits.These vulnerable populations are the first onesto feel an economic downturn. Through the recovery Act, we will spend almost $15 billion to provide nearly 60 million retired Americans and Americans with disabilities an immediate $250 through temporarily increasing Social Security, Supplemental Security Income, and Veterans benefits.

* President’s FY 2010 Budget (p. 18)

“ENTITLEMENT

REFORM”[Entitlement Commission, Automatic Pilot]

550-12—Discretionary and MandatoryAdopt a Voucher Plan for the Federal Employees Health Benefits Program  

(Millions of dollars) 2008 2009 2010 2011 2012   2008-2012 2008-2017

Change in Discretionary Spendinga  

 Budget authority -100 -500 -1,000 -1,500 -2,000   -5,100   -25,800  

  Outlays  -100 -500 -1,000 -1,500 -2,000   -5,100   -25,800  

Change in Mandatory Spending  

  Outlays -100 -500 -900 -1,300 -1,800   -4,600   -23,400

550-13—MandatoryBase Federal Retirees' Health Benefits on Length of Service  

              Total

(Millions of dollars) 2008 2009 2010 2011 2012   2008-20122008-2017

Change in Outlaysa * -20 -30 -45 -60   -155   -770

550-13—MandatoryBase Federal Retirees' Health Benefits on Length of Service  

600-4—DiscretionaryRestructure the Government's Matching Contributions to the Thrift Savings Plan 

Total

(Millions of dollars) 2008 2009 2010 2011 2012   2008-2012 2008-2017

Change in Spending  

 Budget authority -359 -383 -409 -436 -464   -2,051   -4,855  

  Outlays -359 -383 -409 -436 -464   -2,051   -4,855  

650-1—MandatoryBase Social Security Cost-of-Living Adjustments on an Alternative Measure of Inflation 

  Total

(Millions of dollars) 2008 2009 2010 2011 2012   2008-2012 2008-2017

Change in Outlays -1,300 -3,200 -5,100 -7,200 -9,300   -26,100  -

106,000 

650-1—MandatoryBase Social Security Cost-of-Living Adjustments on an Alternative Measure of Inflation  

650-5—MandatoryRaise the Normal Retirement Age in Social Security

Total

(Millions of dollars) 2008 2009 2010 2011 2012   2008-2012 2008-2017

Change in Outlays -50 -250 -700 -1,500 -3,600   -6,200   -86,200

NARFE’s Legislative Program for the 111th:

NARFE supports the repeal or reform of the Social Security GPO and WEP.

Government Pension Offset (GPO):Affects a government worker with a pension where SS taxes were NOT paid (for CSRS retirees eligible to retire December 1982 or later).

The SS spousal benefit (from spouse’s work under SS) will be offset by 2/3 of the annuitant’s own annuity—this reduces or eliminates the SS benefit.

Who is affected by the GPO?Approximately 401,000 individuals, representing less than 1% of SS beneficiaries.

42% are widows/ers 75% are women85% lose their entire Social Security benefit

Windfall Elimination Provision (WEP)Affects a government worker with a

pension where SS taxes were NOT paid but who also earned SS in other jobs. (for CSRS or FERS retirees with CSRS-component eligible to retire January 1986 or later).

The SS benefit is reduced by a computation formula. It can result in a loss of 60% of the individual’s SS benefit; for 2007 it is a maximum monthly loss of $340 ($4080/yr).

Who is Affected by the WEP?Approximately 971,000 individuals, about 2.4% of SS beneficiaries

65% are men3.5% of these individuals had incomes below the poverty line.

GPO-WEP Legislation in the 110th:Repeal legislation:

H.R. 235Rep. Howard Berman (D-CA) and

Rep. Howard ‘Buck’ McKeon (R-CA) 206 cosponsors

- S. 484- Sen. Dianne Feinstein (D-CA)

- 14 cosponsors

• * as of March 6, 2009

SS Actuarial Figures Over Ten Years

Eliminating the GPO: $40 Billion

Eliminating the WEP: $40 Billion

Total Cost of Repeal: $80 Billion