These slides step users through the federal budget process, with a focus on science and technology. The process begins with federal program managers, works through budget shops at the agency, departmental, and White House levels, while referencing influences at each step. Budgets are then sent to Congress, back to the executive branch and down to the federal Program Managers for action.
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Federal Budget Process Overview
1. The Federal S&T Budget
Process
(Adapted from 2007 presentation to biometrics community)
Duane Blackburn
Office of Science & Technology Policy
July 2009
Biometrics.gov
2. Agency Budget Requests
Operational (and
other) Needs
• 1 year
S&T PMs S&T PMs S&T PMs…
• 5 year
• 10 year
Scientific Community
Capabilities & Plans
Interagency Policy
(NSTC)
Competing Priorities
Policy & Budget
• Ops vs R&D?
• Priority A or B?
Administration
Priorities Agency Budget
Request
OMB instructions
Budget Limitations
Action
Influence
Biometrics.gov
3. Agency Budget Requests
Agency A Budget
Request Department
Policy & Budget
Agency B
Budget
Request…
Interagency Policy
(NSTC)
Competing Priorities Department/Agency
• Ops vs R&D?
Budget Request
• Priority A or B?
Administration
Priorities
OMB instructions
Budget Limitations
Action
Influence
Biometrics.gov
4. EOP Budget Review
Dept/Agency A
Department/Agency
Budget Request OMB Analysis & Budget Draft
Dept/Agency B Budgeting
Budget
Request… Agency
Passback
Interagency Policy EOP Review
(NSTC)
Competing Priorities
OMB Analysis &
• Ops vs R&D? Budgeting
OMB Analysis &
• Priority A or B? Budgeting
Administration
Priorities
Budget Books, One
OMB instructions President’s Budget
pagers, talking
Request
Budget Limitations points, etc.
Action
Influence
Biometrics.gov
5. Almost Done!
13(?) Budget Bills
President’s Budget
Request
President’s
Signature
Funding Allocated to
Congress Agency Accounts
Action
Influence
Biometrics.gov
6. …or not!
Funding Allocated to
Agency Accounts
Operational (and
other) Needs
• 1 year
• 5 year
• 10 year
S&T PMs Funding Allocated to
Scientific Community
Capabilities & Plans
Subaccounts
Interagency Policy
(NSTC)
Competing Priorities
Legislative Mandates
Policy & Budget
Budget Limitations
Action
Influence
Biometrics.gov
7. Finally, action the public sees!
Funding Allocated to
Subaccounts S&T PMs Contracting Officers
Operational (and
other) Needs
• 1 year
RFPs
• 5 year
• 10 year
Scientific Community Proposals
Capabilities & Plans
Contract
Interagency Policy Award
(NSTC)
Peer
Competing Priorities Review
Legislative Mandates
Budget Limitations
Policy & Budget
In Some Agencies
Administration
Priorities
Action
Influence
Biometrics.gov
8. Budget Timelines
Agencies are Executing FY09 Budget
Administration
Administration and Congress negotiate FY10 budget
Prepares FY10 budget
NSTC Drafts Plans for Agencies formulate
FY11 FY11 Budget Request
Oct 1, Nov Dec Jan Feb March April May June July August Sept.
2008 2009 OSTP/OMB
Agency
Budget
President transmits the submits 2010
Guidance
budget to
FY09 fiscal year begins. budget for FY10 to Memo
OMB.
Annual appropriations and Congress on the first
Monday in February and FY09 ends and FY10 begins. Annual
changes in other spending
the Administration begins appropriations and changes in other
and revenue laws take effect.
work on the budget for spending and revenue laws take effect.
Office of Management and
FY11. Office of Management and Budget (OMB)
Budget (OMB) apportions
apportions funds and agencies begin to
funds and agencies begin to
execute their budgets.
execute their budgets.
Biometrics.gov
9. “Color” of Money is Important
Technology Maturation (6.2 & 6.3) Prototype Demo (6.4)
Basic Research (6.1)
Understanding
Phenomena
Phenomena
Transition
Maturing
Applied Research and
Means
Advanced Technology ACTDs to ACQ
Development Systems
DOD, DHS
NSF NIST NIJ GSA
Biometrics
Biometrics.gov
10. What about the Challenge Doc?
S&T PMs
Interagency Policy
(NSTC)
Policy & Budget
Competing Priorities Department
• Ops vs R&D? Policy & Budget
• Priority A or B?
OMB Analysis &
Administration Budgeting
Priorities
EOP Review
OMB instructions
Agency Passback
Action
Influence
Biometrics.gov
11. S&T Budget Fast Facts
► The federal budgeting process is very complex and detailed
► Plans go through rigorous review & approval processes
■ Except for very small amount efforts, which are planned at the very end of the process
■ Process prohibits PMs from making definitive statements about future plans
► Realignment of funds from between focus areas is difficult
► The “Color of Money” is important
► Multi-year programs are difficult to establish
■ Interagency multi-year programs even more so
► Federal FY runs October through September
► Money expires
■ In most agencies, funds must be “let” by the end of the FY or it is lost
■ Some agencies have funding that doesn’t expire for 2 or more years
► Congressional timeliness is important
■ Beginning of FY remains in October, even if appropriations laws are late
■ Continuing Resolutions throw S&T plans into (temporary) disarray
► Federal agencies are working on three fiscal years at any given time.
► Peer review is critical
► Determining budget allocations & actual contracts
► Challenges scientists, which produces better results
► Earmarks are harmful
■ Typically fund non-critical initiatives, taking money away from true needs
■ Minimal positive impact as it isn’t a component of overall plans
■ Often performed by parties that wouldn’t have been selected via competitive review
■ Are difficult to manage
Biometrics.gov
12. Budget Development
Congress and/or
President establish
agencies & missions President’s Budget
Request Submitted to President signs or
Congress (Early Feb) vetoes
appropriations bills
OSTP & OMB issue
guidance House & Senate
memoranda on Hearings
priorities; NSTC, Agencies make decisions
NSC and HSC on allocation of
prepare interagency Congressional resources consistent
plans. Budget Resolution with enacted
(April 15) appropriations and
program plans
Agencies prepare and
submit Appropriations hearings
proposed budgets with agencies & EOP on FY Begins (Oct 1)
to OMB individual programs
EOP Analyzes Congress marks up
requests and develops & passes agency
budget appropriations bills
Biometrics.gov