OVERVIEW OF CONGRESSIONAL
APPROPRIATIONS
A Billion Here, a Billion There…
NCMA Boston March Workshop - March 8, 2017
Phyllis D. Frosst Ph.D.
Global Director, Health Policy, Seqirus
WHAT I HOPE TO COVER
• A brief history of the US Federal budget
• How the magic happens
• The complex interplay between the Executive Branch and Congress
• Appropriators – the power of the four corners
• What happens when what’s supposed to happen doesn’t happen
• A little side trip to the DOD
• So you want to know more
• Questions
CONSTITUTIONAL FOUNDATION
•
Article I, Sec. 8: Congress shall “make all Laws which shall be necessary and proper
for carrying into Execution the foregoing Powers [listed in art. I, § 8], and all other
Powers vested by this Constitution in the Government of the United States, or in
any Department or Officer thereof.”
•
Article I, Sec. 8: “The Congress shall have Power To lay and collect Taxes, Duties,
Imposts and Excises.”
•
Article I, Sec. 9: “No Money shall be drawn from the Treasury, but in Consequence
of Appropriations made by Law.”
THREE BRANCHES OF GOVERNMENT:
CHECKS AND BALANCES
Executive Branch – The President
Legislative Branch - Congress
The President can
veto legislation
Congress controls the
budget; Can pass laws
over president’s veto
Senate
100
Senators
Cabinet Secretaries
15 Heads of Departments,
nominated by the President,
approved by the Senate
House
435
Representatives
Judicial Branch - The Supreme Court
9 Justices, nominated by the President, approved
by the Senate
2017 PARTY MAKEUP OF USG:
REPUBLIC AN ADMINISTRATION, REPUBLIC AN CONGRESS
President and Vice President - Republican
Donald Trump & Mike Pence
U.S. House – Republican
U.S. Senate – Republican
435 Representatives
100 Senators
240 Republicans, 194 Democrats, 1 TBD
52 Republicans, 46 Democrats,
2 Independents (caucus w/Ds)
THE INTERPLAY OF APPROPRIATIONS
AND AUTHORIZATIONS
Appropriations
Authorization
- Write funding bills
- Have final funding say
- Must stay within budget
allocation
- Write rationale for
program funding
- Set financial targets
for programs
CONGRESSIONAL COMMITTEES
- THE FOUR CORNERS -
House
Senate
Speaker: Paul Ryan
Maj. Leader: Mitch McConnell
House Appropriations
Majority
Senate Appropriations
Majority
House Appropriations
Senate Appropriations
Minority
Minority
HOW LAWS ARE MADE
THE ABBREVIATED VERSION
White House + Congress = Federal Budget
US FEDERAL
BUDGET
PROCESS
US
Fiscal Year
FY19
2016
2017
2018
FY18
2015
2016
2017
OK. START AT THE BEGINNING?
PLAYERS – EXECUTIVE BRANCH
• Under the Budget Act of 1974, The President is required to submit The
President’s ”Budget of the United States” on the first Monday in
February “in such form and detail” as President determines.
• The “Budget Request” reflects the President’s Agenda (policy and fiscal
priorities) that Congress is free to adopt, reject, or modify.
• The White House Office of Management and Budget prepares
the President’s “budget request”
THE PLAYERS - CONGRESS
The House & Senate Budget committees write the Concurrent Budget
Resolution, which responds to the President’s request.
The House & Senate Authorizing committees create, renew, or repeal
federal programs requiring either annual “discretionary” appropriations to
operate or mandatory spending that occurs “as a consequence of law.”
The House & Senate Appropriations committees provide annual
discretionary appropriations that fund programs, projects, and activities
authorized by the Authorizing committees
The Congressional Budget Office “scores” the cost of authorization and
appropriations legislation
BUT
FIRST, THE
BUDGET RESOLUTION
BUDGET
RESOLUTION
PROCESS
• House and Senate Budget committees “originate” a
Concurrent Budget Resolution:
• Congress’s response to the President’s budget request
• Contains Congress’s fiscal and policy priorities reflecting
majority party’s preferences
• Can modify, reject, or accept the President’s budget
request
US FEDERAL
BUDGET
PROCESS
BUT
FIRST, THE
BUDGET RESOLUTION
BUDGET
RESOLUTION
PROCESS
• How do Appropriators know how much they have to spend?
• The Budget Resolution Does Two Key Things:
• Discretionary Spending: Establishes Discretionary Spending Caps for
upcoming Fiscal Year
• Section 302(b): Appropriations Committees required to match spending
in upcoming fiscal year for each major budget function to each
corresponding appropriations bill assigned to twelve appropriations
subcommittees:
• Called “Section 302(b) allocations”
• “Reconciliation Instructions” to Authorizing Committees:
• Changes in federal programs (including mandatory) and revenue
THE APPROPRIATIONS PROCESS
• House and Senate Appropriations committees have 12 identical subcommittees,
• Department/agency/program heads testify in support of detailed “budget
justifications” contained in President’s budget for each “Program, Project, and
Activity" for which they are responsible
• Amount that each subcommittee gets to spend each year is determined by Section
302(b) allocations
• Regular Order: Subcommittee markup, full committee markup, floor consideration,
conference committee, final passage, presidential signature (or veto and veto
sustained or overridden).
• Irregular Order: The Continuing Resolution
WHAT IS A YEAR?
Calendar Year (Jan. 1 – Jan.1)
US FY (Oct. 1 – Sept. 30)
We are here
US FY2016
US FY2017
US FY2018
New US FY17
US FY18
WHAT HAPPENS WHEN WHAT’S
SUPPOSED TO HAPPEN DOESN’T
HAPPEN
EMERGENCY SUPPLEMENTAL BILLS
2.
1. Unforeseen
Need
3. $
 Without the first part of the process, subsequent budget years do not
include programs funded by supplemental $
 Supplementals are generally very large sums
THE CONTINUING RESOLUTION (CR)
WHERE DOES THE $ COME FROM?
WITH A LITTLE SIDE TRIP TO THE DOD
TOTAL REVENUE $3.5 TRILLION
DIVIDING UP THE PIE
Mandatory Spending: $2.63 Trillion
Discretionary Spending: $1.1 Trillion
SO, YOU WANT TO KNOW MORE
QUESTIONS?
[email protected]