President Obama initiated the FY 2013 budget process with the release of his budget request on Monday, February 13. Now begins the long process of discussing and negotiating the final budget. Read below an outline of how the budget process evolves.
This information was submitted by Amy Berrier on behalf of the SASFAA Legislative Relations Committee.
Budget Request – Check. What’s Next?
Monday’s release of the Fiscal Year (FY) 2013 budget proposal is the first step in a lengthy budget process for the upcoming fiscal year. Below you will find a summary of the next steps for the FY 2013 budget cycle. As we have seen last year, a full budget cycle is not often seen through requiring the need for stopgap funding measures, often referred to as continuing resolutions.
The President’s budget proposal is a formal request for funding for the next fiscal year. This budget proposal (often referred to as the budget blueprint) is usually issued between February 1-14. This formal request is issued to the United States Congress. The President’s proposals found in the budget request require action by Congress.
• February
o Initial budget request to Congress by President
• March – Budget resolution process – Congress considers the initial budget request. Budget resolution is used to set self-imposed budgetary parameters, also in the aggregate, to serve as guidelines for future spending legislation
o House and Senate Budget Committees have jurisdiction over federal spending priorities
o Congressional Budget Committees markup respective budget resolutions (how much revenue expected and how much will be spent during FY)
• April
o According to the Budget Act, the Senate is required to report its version of the budget resolution by April 1.
o The House is not mandated to report its version at this time, but tradition is that the House follows the Senate with its release of their version of the budget resolution.
o A budget resolution may include a reconciliation instruction, or an authorization to amend entitlement programs. Reconciliation is not subject to Senate filibuster.
o As long as the net effect of a reconciliation bill is to reduce the deficit, a wide range of program changes that affect spending and revenues may be included in the legislation.
o After Congressional Budget Committees review their budget resolutions, they then appoint conferees and work towards reaching a conference agreement. Both Houses of Congress must pass by a majority vote the conference report on the budget resolution.
o April 15 – After Budget conference report – formal result of the budget resolution process – often referred to as a “budget blueprint” because it does not contain specific levels of funding and is non-binding. Congress usually misses this target date.
• President sends detailed budget request to Congress – line by line funding levels for upcoming FY and proposed aggregate levels for the following five years
• May-June
o Appropriations Committees draft bills - Based on the Budget Conference Report and the president’s detailed budget request, the House and Senate Appropriations Committees hold hearings and markups for twelve appropriations bills.
o Following approval of the budget resolution, funding levels for government programs are debated and set by the 12 appropriation subcommittee’s, which come up with detailed spending instructions for federal agencies.
• July
o Appropriations bills voted on and passed – Technically, the twelve bills are to be passed before the August recess to ensure completion by October 1, the beginning of the new fiscal year. Rarely does Congress meet this self-imposed deadline.
o Often times—as has been the case in recent years—Congress has failed to pass the twelve appropriation bills before the start of the fiscal year and therefore has operated under a continuing resolution (CR) until the passage of an omnibus spending bill, which combines all 12 appropriations bills into one.
o Reconciliation legislation can be considered any time before the next budget resolution.
Legislative Relations Committee
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