The Federal Budget Process
Follow the Money: The Federal Budget Process
Emily Holubowich, MPP @Eholubowich September 24, 2019
What We’ll Cover
• Power of the Purse • Appropriations & Authorizations • How the Process is Supposed to Work • How the Process Really “Works”
Power of the Purse
No money shall be drawn from the Treasury, but in consequence of Appropriations made by law. Article I: Section 9 The United States Constitution
Mandatory vs. Discretionary
• Discretionary set at “discretion” of Congress – 12 appropriations bills must pass each year to continue operations • Mandatory enacted by law; not dependent on appropriations bills – Entitlement Programs (e.g., Medicare) • To change spending, must change eligibility rules
1.5% 7.9% Federal Spending, FY 2018
Discretionary health
Other non-defense discretionary Defense discretionary
14.1%
10.8%
15.1%
Medicare, Medicaid, Social Security Other entitlement programs Net interest
50.5%
@healthfunding
Authorization vs. Appropriation
• Authorizing legislation – Authorizes the appropriation of funds to implement laws that create agencies, programs, and government functions • Appropriating legislation – Confers budget authority on federal agencies to incur obligations
Authorization vs. Appropriation
• No requirement—constitutional or statutory—that an appropriation be preceded by authorization
• Most authorizations are meaningless without an appropriation! – “Unfunded mandate”
Authorization vs. Appropriation • Committees – Appropriation: Labor-HHS, Ag/FDA, Interior, etc. – Authorization: HELP, Energy & Commerce, etc. • Timing – Appropriation: move annually – Authorization: seven years, on average • Deadlines – Appropriation: statutory deadlines – Authorization: at will
Appropriations Bills
• May be annual or supplemental • House and Senate full committees set “302(b) allocations” for 12 annual bills – Based on total level set by budget resolution • Subcommittees determine funding levels for
agencies, programs, and activities – Refer to president’s budget request
Shaping Policy with the Purse • Appropriators use spending bills to enact policy change – De/funding priorities • Increase funding • Cut funding • Prohibit use of funding (aka “policy riders”) – Report language • Direct funding provided to discrete projects • Require new activities (e.g., reports to Congress) • Restrict use of funding
Budget Timetable • President submits budget request (Feb.) • Congress adopts a Budget Resolution (April) • Appropriations Committees make 302(b) allocations to 12 subcommittees (May) • Subcommittees mark up appropriations bills (May – June) • Full Committee ratifies bill (June)
Budget Timetable (cont.)
• House floor debate, vote (June) • Senate develops and adopts its own appropriations bills (July – Sept.) • Differences ironed out in Conference Committee (Sept.) • To president for signature or veto (Sept. 30) • New fiscal year begins (Oct. 1)
The Best Laid Plans… • Budget process rarely works as it should • Continuing resolution is “parachute” for annual appropriations process – Funds federal government in absence of appropriations bills for finite period – Programs funded at current level (generally) • Outstanding bills are frequently bundled in “omnibus” or “minibus” measures – FY 2013 & 2015: Year of the “CRomnibus”
Length of Lapsed Appropriations, in Days
138
FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2013 (LHHS CR) FY 2014* FY 2015 (omnibus) FY 2015 (DHS CR Feb 27) FY 2016 FY 2017 FY 2018* FY 2019 (LHHS) FY 2019* (FDA/IHS CR)
0
174
210
80
150
74
109
365
177
84
365
79
162
92
365
92
69
123
143
102
0
50
100
150
200
250
300
350
400
Takeaways… • Power of the purse used to shape policy • Process is predictable in its unpredictability • Be prepared for anything
I’m Moving!
Emily J. Holubowich, MPP Vice President, Federal Advocacy American Heart Association emily.holubowich@heart.org Follow Me! @Eholubowich
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