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 ~AprilOutlines of the Administration budget for the coming year are in place. April - SeptAgencies prepare budget requests. SeptAgencies submit budgets to the Office of Management and Budget (OMB). Sept-NovOMB analysis of agency submissions Nov-DecNegotiations – Agencies and OMB. Dec-JanFinal decisions by Administration. FebPresident submits Budget to Congress. Feb – JulyCongressional Hearings /Committee Markups. June - JulyAppropriations committees report bills. Aug - SeptAppropriations bills passed by Congress. Oct 1- Sep 30The 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 ~AprilOutlines of the Administration budget for the coming year are in place. Size of Deficit Administration Initiatives, e.g. Social Security Projections: Inflation Unemployment Economic Growth

Budget Calendar ~AprilOutlines of the Administration budget for the coming year are in place. April - SeptAgencies 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 ~AprilOutlines of the Administration budget for the coming year are in place. April - SeptAgencies prepare budget requests. SeptAgencies 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 ~AprilOutlines of the Administration budget for the coming year are in place. April - SeptAgencies prepare budget requests. SeptAgencies submit budgets to the Office of Management and Budget (OMB). Sept-NovOMB analysis of agency submissions Discussions with agencies Director’s Review Input from other offices in Executive Office of Pres. Passback

Budget Calendar ~AprilOutlines of the Administration budget for the coming year are in place. April - SeptAgencies prepare budget requests. SeptAgencies submit budgets to the Office of Management and Budget (OMB). Sept-NovOMB analysis of agency submissions Nov-DecNegotiations – Agencies and OMB. Appeals to: OMB Assoc Dirs. OMB Director President

Budget Calendar ~AprilOutlines of the Administration budget for the coming year are in place. April - SeptAgencies prepare budget requests. SeptAgencies submit budgets to the Office of Management and Budget (OMB). Sept-NovOMB analysis of agency submissions Nov-DecNegotiations – Agencies and OMB. Dec-JanFinal decisions by Administration. FebPresident submits Budget to Congress. Feb – JulyCongressional Hearings /Committee Markups. June - JulyAppropriations committees report bills. Aug - SeptAppropriations bills passed by Congress. Oct 1- Sep 30The new fiscal year (FY). Agencies spend the amounts appropriated.

Congressional Budget Process 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 Joint Joint Committee on Printing Joint Committee on Taxation Joint Committee on the Library Joint Economic Committee

Programs in place already. Funding provided for those programs. Funding levels changed each year About 40% of budget

Congressional Budget Process Programs themselves changed by legislation. Spending dictated by eligibility (entitlements – Soc. Sec, Medicare) Formulas (highway, grants) About 60% of budget)

Congressional Budget Process Spending levels can differ: From those in the Request Between House and Senate

Congressional Budget Process

Note that one agency may have to deal with more than one subcommittee. Highlights show which committees deal with Defense Department

Congressional Budget Process

Hearings Feb-July Bills Reported & passed June-July Final Bills passed Aug-Sept Spending starts Oct 1 Conference Committees July-Aug

Status of the DOE Appropriations Bills – Oct 1, 2006 Ref.

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 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 Includes: Homeland Security Veterans Affairs International Affairs

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

Federal Debt and Deficit U.S. Budget for 2007: Charts 12.1, 16.2