1. Federal Budget Process Steve Kidd and Allison Boehm Budget and Program Analysis Staff April 2009

6. Constitutional Law Article 1, Section 9 of the U.S. Constitution: “No money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law; and a regular Statement and Account of the Receipts and Expenditures of all public Money shall be published from time to time.

7. Purpose of the Budget Request permission to spend government funds. Control spending to an approved level. Establish accountability. Analyze performance plans.

8. Federal Budget Process - Three Stages Budget Formulation – creation of the President’s Budget. Budget Justification – presenting and justifying the Budget to Congress. Budget Execution – spending funds in accordance with Congressional intent.

9. Budget Process Timeline Budget Formulation –2 years prior Budget Justification –1 year prior Budget Execution –Current year It takes 2 years to get an appropriation!

10. Phase 1: Budget Formulation President –Sets policy through the Office of Management and Budget (OMB). Department of Agriculture –Sets priorities through strategic plan. APHIS –Also sets strategic priorities.

11. Formulation Overview Program Planning and Budgeting –Starts in March each year. Agency Request –Due to the Department in early July. Departmental Feedback –Received in late summer. OMB Allowance –Received in late November/early December. President’s Budget –Due to Congress the first Monday of February.

12. USDA/OMB Concerns What is the problem the request is trying to fix? What is the Federal government’s role in fixing the problem? What is the impact of the increase on performance? Are alternative proposals more effective? What are cooperators doing to help us achieve the goals? What is the economic value of the effort?

13. President’s Budget By law, the Budget is submitted to Congress the first Monday in February. APHIS submits supporting material along with all USDA agencies – “Explanatory Notes.” Justification begins.

14. Phase 2: Justification APHIS prepares materials to defend the President’s Budget.

15. Congressional Appropriations Structure Committee on Appropriations 13 Subcommittees Committee on Appropriations 13 Subcommittees House & Senate Committees House Senate Agriculture, Rural Development, Food & Drug Administration, & Related Agencies. Agriculture, Rural Development, & Related Agencies

16. Phase 2: Justification House and Senate Appropriations Sub- Committees hold hearings. APHIS answers “Questions for the Record.” APHIS received more than 300 questions last year.

17. What is Congress interested in? Spending in individual members’ States. Funds provided to individual members’ States (through cooperative agreements). How do we get the information? Geographic Report (provided by APHIS programs with input from Agreements Specialists).

18. Conference  House Floor Senate Floor Sub-Committee on Agriculture Full Approps. Committee

19. President Signs the Agriculture Appropriations Bill into law.

20. If the Bill’s not signed by Oct. 1…. Continuing Resolution –Interim appropriation. –Sets funding at the prior year level. –Gets extended until an appropriation act takes its place.

21. Phase 3: Execution APHIS gets an appropriation. Apportionment Process (OMB officially transfers funds to USDA/APHIS). Allocation Process (Agency gives programs authority to spend funds).

22. Phase 3: Execution, cont. “Those of us who manage the public’s dollars will be held to account--to spend wisely, reform bad habits, and do our business in the light of day…” --President Obama

23. APHIS Cooperative Agreements In FY 2008, APHIS had approximately $1.2 billion in budget authority from all funding sources. 47 percent of spending in FY 2008 was for salaries and benefits. APHIS obligated over $217 (or about 18 percent) million of its FY 2008 budget for cooperative agreements.

24. Recent Audit Finding A recent audit of USDA indicated a material weakness. –High unliquidated balances of obligations. –A Secretary Priority. –Each USDA Agency Administrator is held accountable for ensuring low levels of unliquidated balances.

25. Audit Finding Impact A significant portion of APHIS’ discretionary spending is cooperative agreements. Considerable number of obligations from prior years remain unliquidated. Unliquidated obligations in cooperative agreements for prior years may impact future funding decisions. Increased need for cooperators to submit requests for payment in a timely manner.

26. Budget Outlook and Affect Current outlook is for flat budget. APHIS will look to stretch resources. Look to effective spending. Timely reporting and billing.

27. FY 2009 Omnibus The FY 2009 Omnibus provides $877 million for APHIS salaries and expenses. FY 2010 President’s Budget The FY 2010 request for APHIS salaries and expenses is $872 million.

28. Questions?