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