Chapter 11BUREAUCRACY: Redesigning Government for the Twenty-First Century

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Current Events Focus

The Budget Process

• The process for passing the federal budget is complicated and involves a great deal of debate, bargaining, and compromise.

• The process may be broken down in 4 stages:• The President submits the budget to Congress by the

first Monday in February.• Congress begins reviewing the budget proposal.• The various agencies, federal departments, and the

appropriate laws are reviewed by the General Accounting Office (GAO) and Congressional Budget Office (CBO).

• Audits of agency spending are conducted by the Congressional Budget Office (CBO).

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Congressional review of the budget proposal.• The budget is separated into 11 appropriations

bills• The House and Senate Budget Committees

formulate the budget resolutions, usually in early May.

• Both chambers vote on the budget resolutions in mid to late May.

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Congressional review of the budget proposal.• In June, the budget conference committee

reconciles differences in the bills.• Floor votes on the reconciled resolutions.• In July, the proposed budget is sent to the

various committees based upon jurisdiction.• House and Senate Authorization Committees (budget-reconciliation)

• House and Senate Appropriations Committee (budget-allocations)

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Congressional review of the budget proposal.• House and Senate authorizing committees refer

recommendations to House and Senate Budget Committees.

• Reconciled bills (authorization and appropriations) go to a floor vote in both the House and Senate. The floor votes on the 13 bills separately.

• Budget reconciliation (Authorization) conference committee is formed.

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Congressional review of the budget proposal.• Budget appropriation (budget-allocations)

conference committee is formed.• Both chambers vote on appropriation bills from

the different conference committees in September.

• The President may sign or veto the 13 appropriation bills

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Congressional review of the budget proposal.• The budget-reconciliation conference committee

(Authorization) submits a final bill (the budget that will be presented to the President) for floor votes in both chambers.

• The approved bill (final budget) is presented to the President for approval or veto.

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Conclusion• The fiscal year for the annual budget begins on

October 1st and ends September 30th. • In early summer, the President must send any

revisions (such as emergency spending) to Congress before the House and Senate Appropriation Committees’ final vote on the 11 appropriations bills.

• As is evident by the amount of money involved and the complex process, formulating the annual budget is vital to the country’s interest and constitutes one of the most important votes any member of Congress casts.

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