tales from the sausage factory: how the federal government gets a budget

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).

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.

Fiscal Year is Oct 1-Sept 30

Process takes 18 Months before money is available to spend

During that time 3 budgets are in play. As of April, 2008:

FY-08 Budget is being spent

FY-09 budget is on the Hill

FY-10 Budget is being formulated in the agencies

Budget Calendar


Size of Deficit

Administration Initiatives, e.g. Social Security

Projections:

Inflation

Unemployment

Economic Growth

Budget Calendar



Agency Targets from OMB

Bottom up agency Process

Competition for funding within target

New Projects depending on room within target

Budget Calendar




Budget within target

Over-Target items that agency is willing to argue for (or see cut if OMB does not increase target)

Budget Calendar





Discussions with agencies

Director’s Review

Input from other offices in Executive Office of Pres.

Passback

Budget Calendar






Appeals to:

OMB Assoc Dirs.

OMB Director

President

Budget Calendar






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

Appropriations SubcommitteesHouse (10), Senate (12)

Reconciliation instructions to Authorizing Committees

Allocations to Appropriations Committees

Individual Appropriations bills or an omnibus bill

Mandatory Discretionary

Submission to Congress

Budget Committee establishes spending levels

Authorizing committees• Legislation that affects discretionaryspending• Legislation that affects MandatorySpending

Law

Law

Appropriations Subcommittees (10), (12)House Senate

Reconciliation instructions to AuthorizingCommittees

Allocations to AppropriationsCommittees



Submission toCongress

Budget Committee establishes spendinglevels


LawLaw

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But first a word about the 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

Senate Committees

Special, Select, and Other Indian Affairs Select Committee on Ethics Select Committee on Intelligence Special Committee on Aging

Joint Joint Committee on Printing Joint Committee on Taxation Joint Committee on the Library Joint Economic Committee

Authorizing Committees

Every program, e.g. Weapons, Yucca Mtn, was created by an authorizing committee.

After being created, they get a budget each year from the appropriations committee.

(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

JointJoint Committee on Printing Joint Committee on TaxationJoint Committee on the LibraryJoint Economic Committee

Programs in place already.

Funding provided for those programs.

Funding levels changed each year

About 40% of budget









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Programs themselves changed by legislation.

Spending dictated by eligibility (entitlements – Soc. Sec, Medicare)

Formulas (highway, grants)

About 60% of budget)










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Spending levels can differ:

From those in the Request

Between House and Senate










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Note that one agency may have to deal with more than one subcommittee.

Highlights show which committees deal with Defense Department










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Hearings

Feb-July

Bills Reported & passed June-July

Final Bills passed Aug-Sept

Spending starts Oct 1

Conference Committees July-Aug

Committee Report

Comm. Vote House VoteCommittee Report

Comm. VoteSenate Vote

Conf. Report

House Vote

Senate Vote

Energy & Water

Subcommittee Markup

5/24/2006 Subcommittee Markup

HR5427 5/11/2006 rc 6/27/2006Highlights -------------

------------- Committee Markup

Committee Markup

6/29/2006

5/17/2006Highlights

Public Law

H.Rept. 109-474

S.Rept. 109-274

Appropriations

House Approvals Senate Approvals Conference Approvals

Status of the DOE Appropriations Bills – Oct 1, 2006

Ref. http://thomas.loc.gov/home/approp/app07.html

Federal Debt and DeficitData 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

Non-Defense

Discretionary

19.%

Defense

Discretionary

20%Net Interest on Debt 7%

Social Security,

Medicare, Medicaid,

Welfare, Other

Mandatory

54%

Ref: US Budget 2007 Table 20-2

20%

19%54%

7%

Includes:

•Homeland Security

•Veterans Affairs

•International Affairs

Surplus or Deficit

$(500)$(400)$(300)$(200)$(100)$-$100$200$300$400$500

1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004

Fiscal Year

$ in billions

Bush Clinton GWBushReagan

Federal Debt and Deficit•Surplus in 4 of last 25 years.

Federal Debt vs GDP

$-$2$4$6$8

$10$12$14$16$18$20

2005 2006 2007 2008 2009 2010 2011

Year

$ in Trillions

Total Federal Debt GDP (then year dollars)

63%

68%

Federal Debt and Deficit

U.S. Budget for 2007: Charts 12.1, 16.2

tales from the sausage factory: how the federal government gets a budget

Documents

budget omb

administration budget

budget requests

budget neile

urban affairs budget

coming year

aging joint joint committee

printing joint committee