1. Module 10 Step 3 Initial Study Funding (incl. Civil Works Budget Process) Civil Works Orientation Course - FY 11

2. OBJECTIVES:OBJECTIVES: — Discuss how Corps studies, projects, and programs are funded by Congress! — Provide a synopsis of the Civil Works budgeting and funding process. Present a “brief” overview of the budgetary documents and terms used.

3. TOPICS COVERED: — Study Funding — Fiscal Year 2011 “President’s Budget” — Budget Categories — The “Budget Cycle” — Budget Documents — Terminology

4. TERMINOLOGY:TERMINOLOGY: Congress gives permission to undertake a study or project! (Step 2 - Module 9) House/Senate Committee Resolution - Studies Water Resources Development Acts - Studies and Projects

5. TERMINOLOGY:TERMINOLOGY: Congress provides funding for a study or project! Energy and Water Development Appropriations Act

8. Appropriation Acts:

9. FYxx Appropriations Act (Public Law 10x-xx) EXAMPLE

10. Appropriation Acts: Project specific direction in either House and/or Senate Committee Reports on “what to do with the money!” (Note: Not all studies/projects have report language)

11. House Report - Energy and Water Development Appropriations Bill EXAMPLE

12. House Report - General Investigations EXAMPLE Note: “Investigations” - Recon / Feas Studies; “Planning” - PED

13. House Report Language - Example

14. Senate Report - EXAMPLE

15. Appropriation Acts: How the Committee Conferees settled differences in funding amounts and “What to do with this money!”

16. Conference Report - EXAMPLE

17. Note: “Investigations” - Recon / Feas Studies; “Planning” - PED

18. Appropriation Acts: Stopgap funding measure in lieu of normal appropriations acts. Allows Federal agencies to generally continuing spending at the same rate as previous fiscal year until Congress passes actual spending bill(s). (Note: Can cover either portions of or entire fiscal year)

20. SENATE - Committee on Appropriations Chairman Ranking SENATE - Subcommittee on Energy & Water Development Chairman Ranking

21. HOUSE - Committee on Appropriations ChairmanRanking HOUSE - Subcommittee on Energy & Water Development Chairman Ranking

23. FY 11 President’s Budget =

25. Fiscal Year 2011 “Press Release” 2011

29. Fiscal Year 2011 Budget by “Business Line”

30. Example Page from Press Release Recon & Feas Studies

31. BUDGET Categories: Funds for all preconstruction studies, eg. reconnaissance and feasibility studies and preconstruction engineering and design (PED) phase, up to award of first construction contract.

32. BUDGET Categories: Funds to complete engineering/design after award of first construction contract and all remaining project construction/implementation. Funds to complete engineering/design after award of first construction contract and all remaining project construction/implementation.

33. BUDGET Categories: Funds for the operations and maintenance of all Corps owned and operated projects, along with the Inspection of Completed Works program. Funds for the operations and maintenance of all Corps owned and operated projects, along with the Inspection of Completed Works program.

34. BUDGET Categories: Funds for studies, design, construction, rehabilitation, and maintenance of projects in the Mississippi River valley, under the Mississippi River Commission. Funds for studies, design, construction, rehabilitation, and maintenance of projects in the Mississippi River valley, under the Mississippi River Commission. Funds for studies, design, construction, rehabilitation, and maintenance of projects in the Mississippi River valley, under the Mississippi River Commission. Funds for studies, design, construction, rehabilitation, and maintenance of projects in the Mississippi River valley, under the Mississippi River Commission.

35. BUDGET Categories: Funds for the review of applications and issuance of permits for structures in navigable waters of the United States. Funds for the review of applications and issuance of permits for structures in navigable waters of the United States.

36. BUDGET Categories: Funds for operating expenses and labor for HQUSACE, Divisions, and Corps laboratories. Funds for operating expenses and labor for HQUSACE, Divisions, and Corps laboratories.

37. BUDGET Categories: Funds for expenses necessary for emergency flood control, response to hurricanes and other natural disasters, and related activities, including activities to ensure readiness to respond to such emergencies. (re: PL 84-99) Funds for expenses necessary for emergency flood control, response to hurricanes and other natural disasters, and related activities, including activities to ensure readiness to respond to such emergencies. (re: PL 84-99) Funds for expenses necessary for emergency flood control, response to hurricanes and other natural disasters, and related activities, including activities to ensure readiness to respond to such emergencies. (re: PL 84-99) Funds for expenses necessary for emergency flood control, response to hurricanes and other natural disasters, and related activities, including activities to ensure readiness to respond to such emergencies. (re: PL 84-99)

38. BUDGET Categories: Funds for expenses necessary to clean up contamination from sites in the United States resulting from work performed as part of the Nation’s early atomic energy program. Funds for expenses necessary to clean up contamination from sites in the United States resulting from work performed as part of the Nation’s early atomic energy program. Funds for expenses necessary to clean up contamination from sites in the United States resulting from work performed as part of the Nation’s early atomic energy program. Funds for expenses necessary to clean up contamination from sites in the United States resulting from work performed as part of the Nation’s early atomic energy program.

39. BUDGET Categories: Operating expenses for collection of users fees such as the Inland Waterway Trust Fund and the Harbor Maintenance Trust Fund. Operating expenses for collection of users fees such as the Inland Waterway Trust Fund and the Harbor Maintenance Trust Fund.

41. Operations & Maintenance - $ 2,361,000,000 (47.8%) Construction General - $ 1,690,000,000 (34.2%) General Investigations - $ 104,000,000 ( 2.1%) MR&T - $ 240,000,000 ( 4.9%) Regulatory - $ 193,000,000 ( 3.9%) General Expenses/ASA(CW) - $ 191,000,000 ( 3.9%) FCCE$ 30,000,000 ( 0.6%) Other - (FUSRAP) $ 130,000,000 ( 2.6%) Operations & Maintenance - $ 2,361,000,000 (47.8%) Construction General - $ 1,690,000,000 (34.2%) General Investigations - $ 104,000,000 ( 2.1%) MR&T - $ 240,000,000 ( 4.9%) Regulatory - $ 193,000,000 ( 3.9%) General Expenses/ASA(CW) - $ 191,000,000 ( 3.9%) FCCE$ 30,000,000 ( 0.6%) Other - (FUSRAP) $ 130,000,000 ( 2.6%) $ 4,939,000,000

42. Operations & Maintenance - $ 2,504,000,000 (48.9%) Construction General - $ 1,718,000,000 (33.5%) General Investigations - $ 100,000,000 ( 2.0%) MR&T - $ 248,000,000 ( 4.8%) Regulatory - $ 190,000,000 ( 3.7%) General Expenses/ASA(CW) - $ 190,000,000 ( 3.7%) FCCE$ 41,000,000 ( 0.8%) Other - (FUSRAP) $ 134,000,000 ( 2.6%) Operations & Maintenance - $ 2,504,000,000 (48.9%) Construction General - $ 1,718,000,000 (33.5%) General Investigations - $ 100,000,000 ( 2.0%) MR&T - $ 248,000,000 ( 4.8%) Regulatory - $ 190,000,000 ( 3.7%) General Expenses/ASA(CW) - $ 190,000,000 ( 3.7%) FCCE$ 41,000,000 ( 0.8%) Other - (FUSRAP) $ 134,000,000 ( 2.6%) $ 5,125,000,000

43. Operations & Maintenance - $ 2,400,000,000 (44.1%) Construction General - $ 2,031,000,000 (37.3%) General Investigations - $ 160,000,000 ( 2.9%) MR&T - $ 340,000,000 ( 6.2%) Regulatory - $ 190,000,000 ( 3.5%) General Expenses/ASA(CW) - $ 190,000,000 ( 3.5%) FCCE$ 0 ( 0%) Other - (FUSRAP) $ 134,000,000 ( 2.5%) Operations & Maintenance - $ 2,400,000,000 (44.1%) Construction General - $ 2,031,000,000 (37.3%) General Investigations - $ 160,000,000 ( 2.9%) MR&T - $ 340,000,000 ( 6.2%) Regulatory - $ 190,000,000 ( 3.5%) General Expenses/ASA(CW) - $ 190,000,000 ( 3.5%) FCCE$ 0 ( 0%) Other - (FUSRAP) $ 134,000,000 ( 2.5%) $ 5,445,000,000

44. Operations & Maintenance - $ 2,475,000,000 (52.2%) Construction General - $ 1,402,000,000 (29.6%) General Investigations - $ 91,000,000 ( 1.9%) MR&T - $ 240,000,000 ( 5.1%) Regulatory - $ 180,000,000 ( 3.8%) General Expenses/ASA(CW) - $ 183,000,000 ( 3.9%) FCCE$ 40,000.000 ( 0.8%) Other - (FUSRAP) $ 130,000,000 ( 2.7%) Operations & Maintenance - $ 2,475,000,000 (52.2%) Construction General - $ 1,402,000,000 (29.6%) General Investigations - $ 91,000,000 ( 1.9%) MR&T - $ 240,000,000 ( 5.1%) Regulatory - $ 180,000,000 ( 3.8%) General Expenses/ASA(CW) - $ 183,000,000 ( 3.9%) FCCE$ 40,000.000 ( 0.8%) Other - (FUSRAP) $ 130,000,000 ( 2.7%) $ 4,741,000,000

45. Operations & Maintenance - $ 2,201,900,000 (40.8%) Construction General - $ 2,141,677,000 (39.6%) General Investigations - $ 168,100,000 ( 3.1%) MR&T - $ 383,823,000 ( 7.1%) Regulatory - $ 183,000,000 ( 3.4%) General Expenses/ASA(CW) - $ 183,865,000 ( 3.4%) FCCE$ 0 ( 0%) Other - (FUSRAP) $ 140,000,000 ( 2.6%) Operations & Maintenance - $ 2,201,900,000 (40.8%) Construction General - $ 2,141,677,000 (39.6%) General Investigations - $ 168,100,000 ( 3.1%) MR&T - $ 383,823,000 ( 7.1%) Regulatory - $ 183,000,000 ( 3.4%) General Expenses/ASA(CW) - $ 183,865,000 ( 3.4%) FCCE$ 0 ( 0%) Other - (FUSRAP) $ 140,000,000 ( 2.6%) $ 5,402,365,000

46. Operations & Maintenance - $ 5,016,900,000 (39.3%) Construction General - $ 5,680,477,000 (44.5%) General Investigations - $ 183,100,000 ( 1.4%) MR&T - $ 841,233,000 ( 6.6%) Regulatory - $ 208,000,000 ( 1.6%) General Expenses/ASA(CW) - $ 183,865,000 ( 1.4%) FCCE$ 415,600,000 ( 3.3%) Other - (FUSRAP) $ 240,000,000 ( 1.9%) Operations & Maintenance - $ 5,016,900,000 (39.3%) Construction General - $ 5,680,477,000 (44.5%) General Investigations - $ 183,100,000 ( 1.4%) MR&T - $ 841,233,000 ( 6.6%) Regulatory - $ 208,000,000 ( 1.6%) General Expenses/ASA(CW) - $ 183,865,000 ( 1.4%) FCCE$ 415,600,000 ( 3.3%) Other - (FUSRAP) $ 240,000,000 ( 1.9%) $ 12,779,165,000 *2009 Omnibus (PL 111-8), ARRA (PL 111-5) & 2008 Consol. Secur. & Disaster (PL 110-329)

47. Operations & Maintenance - $ 2,471,000,000 (50.7%) Construction General - $ 1,523,000,000 (31.3%) General Investigations - $ 90,000,000 ( 1.9%) MR&T - $ 260,000,000 ( 5.3%) Regulatory - $ 180,000,000 ( 3.7%) General Expenses - $ 177,000,000 ( 3.6%) FCCE$ 40,000.000 ( 0.8%) Other - (FUSRAP) $ 130,000,000 ( 2.7%) Operations & Maintenance - $ 2,471,000,000 (50.7%) Construction General - $ 1,523,000,000 (31.3%) General Investigations - $ 90,000,000 ( 1.9%) MR&T - $ 260,000,000 ( 5.3%) Regulatory - $ 180,000,000 ( 3.7%) General Expenses - $ 177,000,000 ( 3.6%) FCCE$ 40,000.000 ( 0.8%) Other - (FUSRAP) $ 130,000,000 ( 2.7%) $ 4,871,000,000

48. Operations & Maintenance - $ 2,244,000,000 (40.2%) Construction General - $ 2,289,000,000 (41.0%) General Investigations - $ 167,000,000 ( 3.0%) MR&T - $ 387,000,000 ( 6.9%) Regulatory - $ 180,000,000 ( 3.2%) General Expenses - $ 180,000,000 ( 3.2%) FCCE$ 0 ( 0%) Other - (FUSRAP) $ 140,000,000 ( 2.5%) Operations & Maintenance - $ 2,244,000,000 (40.2%) Construction General - $ 2,289,000,000 (41.0%) General Investigations - $ 167,000,000 ( 3.0%) MR&T - $ 387,000,000 ( 6.9%) Regulatory - $ 180,000,000 ( 3.2%) General Expenses - $ 180,000,000 ( 3.2%) FCCE$ 0 ( 0%) Other - (FUSRAP) $ 140,000,000 ( 2.5%) $ 5,587,000,000

49. Non-Federal Cost Sharing Operation & Maintenance Construction Support for Others ( Reimbursable ) Expenses FUSRAP Flood Control Miss. R. & Tribs. Investigations Flood & Coastal Emergencies & Regulatory ARRA Funds USACE CW Program Trends & Outlook

50. TERMINOLOGY:TERMINOLOGY: Provides the detailed guidance, instructions, and submittal dates for preparing the President’s Budget. Issued every year in late February or early March

51. Annual Budget EC - EXAMPLE Note: Changes from one year to next are marked with underlines/mark throughs

52. TERMINOLOGY:TERMINOLOGY: Additional funds that could be used above the amount requested on a study or project

53. TERMINOLOGY:TERMINOLOGY: Studies and/or projects which are not budgeted. Typically involve low budgetary priorities, unjustified projects, etc.

54. EARMARKS l EO: Protecting American Taxpayers From Government Spending on Wasteful Earmarks (January 29, 2008) l Agency decisions regarding funds for any earmark are based on bill language, and in particular, are not based on language in any report of a committee of Congress, joint explanatory statement of a committee of conference of the Congress, statement of managers concerning a bill in the Congress, or any other non-statutory statement or indication of views of the Congress.

55. Limited authority to transfer funds among studies or projects within a budget category Congress has been unhappy with the Corps’ past reprogramming actions. FY10 appropriations act guidance: GI – 25% per study (up to $150K maximum) CG – 15% per project (up to $3M maximum) O&M - 15% per project (up to $5M maximum) but does not apply to “emergencies” TERMINOLOGY:TERMINOLOGY:

56. TERMINOLOGY:TERMINOLOGY: Amount of funds Congress has withheld in the past based on the Congressional budget resolution ceiling and past performance of the Corps. (Note: S&S is not applied to Act language studies or projects)

57. Savings & Slippage - EXAMPLE Note: Each Budget Category will have its own separate S&S factor

58. Appropriation Acts: Specific study/project funding by appropriation title…by state.

59. Conference Report - EXAMPLE Note: “Investigations” - Recon / Feas Studies; “Planning” - PED

60. TERMINOLOGY:TERMINOLOGY: Contains information on study or project descriptions, authority, funding requirements, schedules, and work to be accomplished during the budget year.

61. TERMINOLOGY:TERMINOLOGY: Study Cost Estimate — Detailed Project Cost Estimate — Detailed Project Schedule — Project Data Summary

64. — Feasibility studies and Preconstruction Engineering and Design (PED) are budgeted on a basis. — Called… Other Budget Decisions:

67. HQ Provides Budget Guidance ( Mar ) HQ Review & Approval ( May -Jun ) Budget Presented to Sec. Army (Jul - Aug ) OMB Passback ( Nov ) Budget Submitted to OMB ( Sep ) President’s Budget to Congress ( Feb ) Field Offices Develop Program Requirements ( Mar - Apr ) Appropriations Bills ( Jul - Sep ) Cong. Hearings ( Mar - Apr ) President Signs Approp. Bill ( Sep - Oct ) OMB Provides Budget Guidance ( Jan ) Funding Alloc. To Field Offices ( Oct - Dec ) Budget Resolutions

68. US ARMY CORPS OF ENGINEERS PROGRAM AND FUNDING TIMETABLE

70. JUSTIFICATION SHEETS:  This is all HQ & ASA(CW) see to make decisions! – So…be very careful !  Make it correct the first time !

71. All justification sheets for NEW STARTS are reviewed by... JUSTIFICATION SHEETS: - ASA(CW) staff - HQUSACE staff