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Congressional Enactment
Lunch & Learn5 April 2017Greg [email protected]
• Article 1 Section 8: The Congress shall have power to lay & collect taxes, duties, imposts & excises, to pay the debts & provide for the common defense & general welfare….
– To raise & support armies– To provide & maintain a navy– To make rules for the government & regulation of the land &
naval forces
• Article 1 Section 9: …no money shall be drawn from the Treasury, but in consequence of appropriations made by law…
2
Constitutional Framework
Where Are We Today?
• Prior Years – FY17– Execution (sort of)– Sequestration mitigated by Bipartisan Budget Agreement/Act– Only one appn (MILCON and VA) enacted by 16 March 2017
• FY18– Congressional Enactment (PB to Congress Feb 2017)– Sequestration mitigated by Bipartisan Budget Act
• FY19– Program Objective Memorandum (POM) due to OSD 30 Jun– Budget Estimate Submission (BES) due to OSD 1 Dec– Sequestration returns (FY19-22)
• FY20– Planning Phase (Defense Planning Guidance ~Apr 2018)– Sequestration returns (through FY22)
3
Today’s Fiscal Environment
• Budget Control Act (Aug 2011)– Established 10-year discretionary budget caps (FY11 – FY21)– Reduced DoD budget ~$487 billion over 10 years– Established committee to recommend additional $1.5T in savings
• Sequestration– Failure of committee resulted in additional automatic reductions to
DoD of ~$600B over 10 years to begin Jan 2013– Returns in FY18 unless another “Budget Agreement” (see next
slide)
4
Today’s Fiscal Environment
• Bipartisan Budget Agreement (Dec 2013)– Revised discretionary budget caps for FY14 and FY15
• Bipartisan Budget Act of 2015 (Oct 2015)– Revised discretionary budget caps for FY16 and FY17– Reduced FY16-17 DoD sequester by ~$40B
5
Congressional Acts
• Budget & Accounting Act of 1921:• Requires President to submit an annual
budget• Requires revenue & expenditure estimates• Bureau of the Budget & General
Accounting Office (now Government Accountability Office)
• Established the apportionment process
• Budget & Impoundment Control Act of 1974:• Budget Committees in House & Senate• Concurrent Resolutions• Congressional Budget Office• Impoundment limitation• Revised budget submission timeline & end of
fiscal year6
DoD Budget Processes
MilitaryDepartments
DepartmentOf Defense
President(OMB)
Congress
CBOReport
Concurrent BudgetResolution
BudgetExecution
Testimony & Appeals
FEB APR MAY JUL SEPT OCTMAR JUN AUG
ConferenceAppn
AuthConference
National DefenseAuthorization
Act
DoDAppropriations
Act
BudgetNational Apportionment
AllotmentDoDBudget
authorizations process
appropriations process
BudgetsService
DoD Budget Processes
MilitaryDepartments
DepartmentOf Defense
President(OMB)
Congress
CBOReport
Concurrent BudgetResolution
BudgetExecution
Testimony & Appeals
FEB APR MAY JUL SEPT OCTMAR JUN AUG
ConferenceAppn
AuthConference
National DefenseAuthorization
Act
DoDAppropriations
Act
BudgetNational Apportionment
AllotmentDoDBudget
authorizations process
appropriations process
BudgetsService
1. Planning, Programming,& Budgeting
DoD Budget Processes
MilitaryDepartments
DepartmentOf Defense
President(OMB)
Congress
CBOReport
Concurrent BudgetResolution
BudgetExecution
Testimony & Appeals
FEB APR MAY JUL SEPT OCTMAR JUN AUG
ConferenceAppn
AuthConference
National DefenseAuthorization
Act
DoDAppropriations
Act
BudgetNational Apportionment
AllotmentDoDBudget
authorizations process
appropriations process
BudgetsService
1. Planning, Programming,& Budgeting
2. CongressionalEnactment
DoD Budget Processes
MilitaryDepartments
DepartmentOf Defense
President(OMB)
Congress
CBOReport
Concurrent BudgetResolution
BudgetExecution
Testimony & Appeals
FEB APR MAY JUL SEPT OCTMAR JUN AUG
ConferenceAppn
AuthConference
National DefenseAuthorization
Act
DoDAppropriations
Act
BudgetNational Apportionment
AllotmentDoDBudget
authorizations process
appropriations process
BudgetsService
1. Planning, Programming,& Budgeting
2. CongressionalEnactment
3. BudgetExecution
115th Congress
• 193 Democrats • 237 Republicans• 0 Independents• 5 Vacancies• 6 non-voting members
HOUSE SENATE• 435 Voting Members
• 46 Democrats• 52 Republicans • 2 Independents• 0 Vacancies
110th Military Service = 24%108th Military Service = 28%
• 100 Members
97th Military Service = 64% 1979 - 198191nd Military Service = 75% 1969 - 1971
115th Military Service = 19%As of March 2017
Question: How many times in the past30 years has the Congress enacted all
13 Appropriations in time for the beginning of the fiscal year in which they are needed?
Answer:
A. 25
B. 20
C. 10
D. 2
E. Never
12
Does Congress get there from here?
Question: How many times in the past30 years has the Congress enacted all
13 Appropriations in time for the beginning of the fiscal year in which they are needed?
Answer:
A. 25
B. 20
C. 10
D. 2
E. Never
13
Does Congress get there from here?
Congressional Enactment Process
Budget Resolution:Sets Congressional budget at “top
line/ceilings” for spending for major functions & revenues
Defense Authorization:Provides authorization, at a
maximum ceiling level, for specific activities/”things” for which budget authority (BA) may be appropriated
Defense & MILCON Appropriations:Provides BA for those
activities/”things” authorized –permission to obligate the Government; Congressional rules generally prohibit appropriating BA for purposes not authorized
14
Budget Resolution
• House & Senate Budget Committees (HBC & SBC)
• Established by Budget Impoundment & Control Act of 1974
• Work with Congressional Budget Office– Projected spending / revenue levels
• Draft Concurrent Budget Resolution– Overall budget plan– Spending ceilings for each major government
function (e.g., National Defense)– Resolution is NOT law– Congress usually follows guidelines
15
HOUSE BUDGET COMMITTEE (HBC)
Budget Resolution ProcessCONGRESSIONAL BUDGET OFFICE
(CBO)SENATE BUDGET COMMITTEE (SBC)
HOUSE BUDGET RESOLUTION
SENATE BUDGET RESOLUTION
FLOOR FLOOR
HBC / SBC CONFERENCE
Amendments
1 APRIL
CONCURRENT RESOLUTION
FLOORFLOOR
CONCURRENT BUDGET
RESOLUTION15 APRIL
Amendments
House Senate
16
National Defense Authorization Act
• House Armed Services Committee (HASC)• Senate Armed Services Committee (SASC)• Provides for:
– Program approval (new starts &continuing programs)
– Procurement quantities– Funding ceilings for programs– Personnel end-strength– Policy
17
Authorization ProcessHOUSE ARMED SERVICES
COMMITTEE (HASC)SENATE ARMED SERVICES
COMMITTEE ( SASC )
COMMITTEE / SUBCOMMITTEE HEARINGS
MARCH
COMMITTEE / SUBCOMMITTEE HEARINGS
MARCH
HOUSE BILL / REPORT
SENATE BILL / REPORT
FLOOR FLOOR
FLOOR FLOOR
HASC / SASC CONFERENCE
BILL BILL
AMENDMENTS
ACT / REPORT
PRESIDENT SIGNS
LAW
MAY - JUL
SEP
AMENDMENTS
18
Appropriation Act
• House Appropriations Committee (HAC)• Senate Appropriations Committee (SAC)• Normally follow lead of authorizing committees• Provide budget authority (BA) - permission to obligate• 12 annual appropriations acts – (Jan 07 Reorg)
– Defense– Military Construction, VA &
Other Related agencies– Energy and Water
Development
19
Appropriations ProcessHOUSE APPROPRIATIONS
COMMITTEE ( HAC )SENATE APPROPRIATIONS
COMMITTEE ( SAC )
COMMITTEE / SUBCOMMITTEE HEARINGS
APRIL / JUNE
COMMITTEE / SUBCOMMITTEE HEARINGS
APRIL / JUNE
HOUSE BILL / REPORT
SENATE BILL / REPORT
FLOOR FLOOR
FLOOR FLOOR
HAC / SAC CONFERENCE
BILL BILL
AMENDMENTS
ACT / REPORT
PRESIDENT SIGNS
LAW
JUN - AUG
SEP12 APPROPRIATIONS ACTS
AMENDMENTS
20
AUTHORIZATION
BUDGET RESOLUTION
APPROPRIATION
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT
Committee Inputs
HOUSE
SENATE
HOUSE
SENATE
HOUSE
SENATE
HASC HRNGS Marks FLOOR FLOOR
SASC HRNGS Marks FLOOR FLOOR
AuthorizationAct
CBO Report
Pres Budget“Target”
Fiscal Year
HAC HRNGS MARK-UP FLOOR FLOOR
SAC HRNGS MARK-UP FLOOR FLOOR
^
^
Congressional Enactment Timetable
HRNGS Marks FLOOR
HRNGS Marks FLOOR
BudgetResolution^
AppropriationsAct
Conf
Conf
Conf
21
Appeals To Congressional MarksGeneral Rules Between Congress & DoD
• Authorization & Appropriation phases are considered separately• Appeal to next Committee of that phase considering the budget
request (e.g., generally appeal to the SASC, SAC and/or the appropriate conference committee)
• Appeal to:– President’s Budget request if only 1 (lower) mark exists– Amount (mark) closest to the President’s Budget request
if 2 (lower) Congressional marks exist– President’s Budget amount if 1 or more of the
Congressional marks exceeds the President’s Budget request
• Acceptable to appeal language, productionquantities, & end strength as well asdollar amounts 22
Appeals Process Example
[ Assume President’s Budget Request = $ 100 M ]
AUTHORIZATION
MARK
HASC $______M
Appeal to: ___________ $______M
SASC $______M
Appeal to: ___________ $______M
AUTH BILL: $______M
APPROPRIATION
MARK
HAC $______M
Appeal to: ___________ $______M
SAC $______M
Appeal to: ___________ $______M
APPN BILL: $______M
80SASC 10090
AUTH Conf 90
86Rules:(1) Keep phases separate(2) Appeal to next Congressional committee of that phase(3) If 1 mark (lower than President’s Budget request), appeal to President’s Budget request(4) If 2 marks (both lower), appeal to mark closest to President’s Budget request(5) If 1 or more marks exceed the President’s Budget request, appeal back to the amount of
the President’s Budget request 23
Appeals Process Example
[ Assume President’s Budget Request = $ 100 M ]
AUTHORIZATION
MARK
HASC $______M
Appeal to: ___________ $______M
SASC $______M
Appeal to: ___________ $______M
AUTH BILL: $______M
APPROPRIATION
MARK
HAC $______M
Appeal to: ___________ $______M
SAC $______M
Appeal to: ___________ $______M
APPN BILL: $______M
80SASC 10090
AUTH Conf 90
86
81SAC 10085
APPN Conf 85
84Rules:(1) Keep phases separate(2) Appeal to next Congressional committee of that phase(3) If 1 mark (lower than President’s Budget request), appeal to President’s Budget request(4) If 2 marks (both lower), appeal to mark closest to President’s Budget request(5) If 1 or more marks exceed the President’s Budget request, appeal back to the amount of
the President’s Budget request 24
APPEALS PROCESS EXAMPLE
[ Assume President’s Budget Request = $ 100 M ]
AUTHORIZATION
MARK
HASC $______M
Appeal to: ___________ $______M
SASC $______M
Appeal to: ___________ $______M
AUTH BILL: $______M
APPROPRIATION
MARK
HAC $______M
Appeal to: ___________ $______M
SAC $______M
Appeal to: ___________ $______M
APPN BILL: $______M
80SASC 100
90AUTH Conf 90
86
Rules:(1) Keep phases separate(2) Appeal to next Congressional committee of that phase(3) If 1 mark (lower than President’s Budget request), appeal to President’s Budget
request(4) If 2 marks (both lower), appeal to mark closest to President’s Budget request(5) If 1 or more marks exceeds the President’s Budget request, appeal back to the
amount of the President’s Budget request 25
APPEALS PROCESS EXAMPLE
[ Assume President’s Budget Request = $ 100 M ]
AUTHORIZATION
MARK
HASC $______M
Appeal to: ___________ $______M
SASC $______M
Appeal to: ___________ $______M
AUTH BILL: $______M
APPROPRIATION
MARK
HAC $______M
Appeal to: ___________ $______M
SAC $______M
Appeal to: ___________ $______M
APPN BILL: $______M
80SASC 100
90AUTH Conf 90
86
110SAC 100108
APPN Conf 100
106
Rules:(1) Keep phases separate(2) Appeal to next Congressional committee of that phase(3) If 1 mark (lower than President’s Budget request), appeal to President’s Budget
request(4) If 2 marks (both lower), appeal to mark closest to President’s Budget request(5) If 1 or more marks exceeds the President’s Budget request, appeal back to the
amount of the President’s Budget request 26
The Congressional Path to a Federal Budget
The president’s budget is not binding and is considered the administration’s proposal and request. With it comes volumes of information, including budget justifications from each agency that help Congress complete its own budget. The president’s budget generally is submitted by the first Monday in February.
Another portion of the funds goes to authorizing committees for entitlements and other mandatory spending. To change these amounts, laws must be rewritten and voted on in reconciliation legislation, which requires presidential signature to become law.
February June through SeptemberMarch April May
House Budget
Committee formulates
budget resolution
Senate Budget
Committee formulates
budget resolution
Budget conference committeereports out
the concurrent
resolution of the budget.
House floor votes
Senate floor votes
House votes on 12 separate
appropriations bills.
Housevotes on
reconciliation.
Housevotes on
conference report.
Housevotes on
reconciliation.
Senate votes on 12 separate appropriations
bills.
Senatevotes on
conference report.
Senatevotes on
reconciliation.
Senatevotes on
reconciliation.
Concurrent budget
resolution reached.
House authorizing committees
report changes in law to comply
with budget resolution.
Senate authorizing committees
report changes in law to
comply with budget
resolution.
House Appropriations
Committeesreports spending
measures to comply with
budget resolution.
Senate Appropriations
Committeesreports spending
measures to comply with
budget resolution.
House authorizing committees
recommendations submitted to
Budget Committee.
10 plus conference committees(No complete
alignment)
Senate authorizing committees
recommendations submitted to
Budget Committee.
Budget reconciliation
conference committees.
President signs or
vetoes appropriations bills.
President signs or vetoes
appropria-tions bills.
House floor votes
Senate floor votes
President
submits his
budget proposal
to Congres
s.
The House and Senate budget committees develop their own versions of a budget resolution. If the traditional schedule holds, both are developed by early April, and the leading budget committee members from both chambers develop a consensus agreement called a conference report that is typically adopted in April/May.
The two chambers arrive at a concurrent budget resolution, which is not formally a law and does not require the president’s signature. However, the House and Senate have enforcement procedures to ensure directives are met. The budget resolution sets in motion legislation that, when enacted, has the force of law.
Appropriations bills cover the discretionary portion of the budget and don’t affect mandated benefit programs such as Social Security and Medicare. Two or more of the appropriations measures can be lumped into a single omnibus appropriations bill. All of the bills must be signed by the president to become law.
If all 13 appropriations bills aren’t signed by Oct. 1, the start of the new fiscal year, Congress may pass a continuing resolution to fill the gap. If Congress fails to pass the resolution or the president vetoes it, nonessential activities in government are shut down until appropriations for them are enacted.
Continuing Resolution/Continuing Appropriations (CRA)
• Definition: Legislation in the form of a joint resolution enacted by Congress, when the new fiscal year is about to begin or has begun, to provide budget authority for Federal agencies and programs to continue in operation until the regular appropriations acts are enacted*
• Provides “stopgap” funding authority when appropriations not signed into law by start of fiscal year (FY) – precludes anti-deficiency violations
• Initiation of “new starts” & rates of obligation usually limited; permits current rate of operations at appropriation level based on either:
– Amount of activity appropriated in previous FY or– Lowest Congressional mark to date in the current process,
whichever is lower
• Special Interest (SI) items may have specific guidance
* http://www.senate.gov/reference/glossary_term/continuing_resolution.htm 28
Legislative Liaisons
• Department of Defense– ASD (LA): House & Senate Legislative Affairs– USD (C): Appropriation-related
• Department of the Army– Chief of Legislative Liaison: House & Senate Divisions– ASA FM&C Congressional Budget Liaison
• Department of the Navy– Chief of Legislative Affairs: House Liaison & Senate Liaison– ASN FM Appropriations Matters Office
• Department of the Air Force– Office of Legislative Liaison: House Liaison & Senate Liaison– ASAF FM Budget & Appropriation Liaison
29
Websites – Congressional Enactment
Library of Congress “Thomas” www.thomas.gov/
Committee Web Sites:House Budget Committee www.budget.house.gov/
Senate Budget Committee www.budget.senate.gov/democratic/
House Armed Services Committee www.house.gov/hasc/
Senate Armed Services Committee www.armed-services.senate.gov/
House Appropriations Committee http://appropriations.house.gov/
Senate Appropriations Committee www.appropriations.senate.gov/
30
Summary – Congressional Enactment
Best Practice: Clear, concise, and accurate budget exhibits
Techniques:– Keep Congressional staffers informed on program/budget
– Thoroughly prepare senior leaders for testimony on program
– Watch committee marks and appeal language and/or amounts
DAU Resources:– Acquisition Community Connection:
https://acc.dau.mil/fm– Continuous Learning Modules: http://clc.dau.mil
CLB 010 Congressional Enactment– Distance Learning Courses: http://www.dau.mil/
BCF 103 Fundamentals of Business Financial Management– Classroom Courses: http://www.dau.mil/
BCF 211 Acquisition Business Management 31