The Budget As An Expression of Public Policy Sean O’Keefe September 25, 2000

What is the Budget Process? A framework for raising revenue A means to allocate resources Federal process easiest to describe State & local methods incorporate similar methods with one key distinction: –federal is a “unified budget” process –state & local incorporate several approaches

Genesis Budget and Accounting Act of 1921 –established “President’s Budget” submission –established Bureau of the Budget –created the General Accounting Office –R.S and 3679

Genesis II Congressional Budget and Impoundment Control Act of 1974 –a mechanism to coordinate Congressional action –created Budget Committees and budget resolution –established the Congressional Budget Office –established “impoundment” procedures

Genesis III Balanced Budget and Emergency Deficit Control Act of 1985 –(aka Gramm-Rudman-Hollings) –designed to eliminate deficit by 1991: it didn’t –amended in changed target to 1993: still didn’t make it

Genesis IV 1990’s budget resolutions: –Omnibus Budget Reconciliation Act of 1990 –Budget Enforcement Act of 1990 Discretionary caps and entitlement targets Pay-As-You-Go (PAYGO) provisions introduced –Balanced Budget Act of 1997

Budget Process Today Budget Preparation/Development –Internal agency process –OMB interaction with agencies & departments –President’s Budget submission

Budget Process Today Congressional Consideration –budget resolution –reconciliation process –authorization –appropriations Budget Execution & Audit/Evaluation

Policy Conflicts as expressed in the Budget Process Revenue sensitive to economic performance Focus on discretionary spending Federal shutdowns Debt Ceiling Debate Line Item Veto Process, not policy, usually dictates timing Scorekeeping rules drives choices