Congress and the Defense Budget:
The Congressional Review Process
ASMC Audio Conference
May 22, 2013
Robert J. Shue
Consulting and training services
[email protected]
703-493-8215
1
Congressional Review of the Budget:
Constitutional Foundation
• Article 1, Section 8, Clause 12
Gives Congress the power to raise and support armies, but
prohibits appropriations for more than 2 years
• Article 1, Section 9, Clause 7
Requires appropriations in law before funds can be spent
2
Congressional Budget Review:
3-Track Process
Budget Resolution
•
•
•
Sets internal budget targets for appropriations committees
Sets revenue targets for Ways and Means/Finance Committees
Provides policy guidance for authorization committees
Authorization
• Sets manpower levels and personnel policy
• Sets policy for agency operations and programs
Appropriations
• Sets discretionary funding levels
3
Congressional Budget/Appropriation
Review Process: Timeline
Feb
P
R
E
S
I
D
E
N
T
Sends
Budget to
Congress
April
Budget
Resolution
Budget Committees
prepare internal
appropriations
targets and budget
policy
B
U
D
G
E
T
R
E
S
O
L
U
T
I
O
N
Total
discretionay
targets
302(a)
Sept
Appropriations
Appropriations Committees allocate
discretionary total to
Subcommittees—302(b)
Committees/Subcommittees review
and adjust agency requests
12
Bills
P
R
E
S
I
D
E
N
T
Signs or
Vetoes
4
Congressional Budget Resolution Process
Budget Resolution
P
R
E
S
I
D
E
N
T
Sends
Budget to
Congress
•
•
•
•
•
•
Process same in House and Senate
Budget Committees hold hearings and mark up budget resolution
House and Senate pass bills
House and Senate resolve differences in conference
Congress passes Budget Resolution
Budget Resolution sets
- Total budget and revenue targets
- Budget and program policy guidance
• Budget Resolution provides internal
•
guidance to Congress
President does not sign Budget Resolution
B
U
D
G
E
T
R
E
S
O
L
U
T
I
O
N
Total
discretionay
targets
302(a)
A
P
P
R
O
P
R
I
A
T
I
O
N
S
C
O
M
M
5
Congressional Budget Review:
DoD Oversight
Defense Authorization
Defense Appropriations
• House Armed Services Committee (HASC)
• House Appropriations Defense Subcommittees
• DoD (HAC-D)
• Membership—62
• Staff--68
• Subcommittees—7
o
o
o
o
o
o
o
o
o
• Military Construction/VA (HAC-MilCon/VA)
Tactical Air and Land Forces
Military Personnel
Oversight & Investigations
Readiness
Seapower & Projection Forces
Strategic Forces
Intelligence, Emerging Threats & Capabilities
o
o
• DoD (SAC-D)
o
o
Members—19
Staff—15
• Military Construction/VA (SAC-MilCon/VA)
• Members—26
• Staff—55
• Subcommittees—6
Airland
Emerging Threats and Capabilities
Personnel
Readiness and Management Support
Seapower
Strategic Forces
Members—11
Staff—3
• Senate Appropriations Defense Subcommittees
• Senate Armed Services Committee (SASC)
o
o
o
o
o
o
Members—15
Staff—10
o
o
Membership—15
Staff—7
Other Committees
•
•
•
•
House Permanent Select Committee on Intelligence
Senate Select Committee on Intelligence
House Committee on Oversight and Government Reform
Senate Committee on Homeland Security and Govt Affairs
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Congressional Defense Authorization Process
Authorization
P
R
E
S
I
D
E
N
T
Sends
Budget to
Congress
•
•
•
•
•
•
Process same in House and Senate
Full Committee and Subcommittees hold hearings and mark up bill
House and Senate floor action
House and Senate resolve differences in conference
Congress passes National Defense Authorization bill (ndaa)
Authorization Bill sets
- Force levels and Active and Guard and Reserve End strength
- Military pay raise
- Personnel, Acquisition, Management, Military Construction,
and other legislative policies
• House Armed Services Committee (HASC)
• Senate Armed Services Committee (SASC)
P
R
E
S
I
D
E
N
T
Signs or
Vetoes
7
Congressional Defense Appropriations Process
B
U
D
G
E
T
R
E
S
O
L
U
T
I
O
N
Total
discretionay
targets
302(a)
Appropriations
• Process same in House and Senate
• Process usually same for supplemental appropriations
2 Bills
• Full Committee and Subcommittees hold hearings and mark up bill
• DoD
• Military
Construction
• House and Senate floor action
• Conference
• Appropriations Bill provides discretionary funding for Appropriations
and individual line items
•
•
DoD bill (House and Senate Appropriations Defense
Subcommittees)
Military Construction bill (House and Senate Appropriations
Military Construction/VA Subcommittees)
P
R
E
S
I
D
E
N
T
Signs or
Vetoes
8
Congressional Defense Appropriations Process:
Regular Order and Recent Practice
B
U
D
G
E
T
R
E
S
O
L
U
T
I
O
N
Total
discretionay
targets
302(a)
Appropriations
• Subcommittee Hearings and Markup
• Full Committee Markup
• House and Senate Bills
• Conference
Regular
Order
Alt
#1
Alt
#2
P
R
E
S
I
D
E
N
T
• Final Bill
Signs or
Vetoes
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FY 2014 Defense Budget Request:
Lightning Rods for Congress
•
•
•
•
•
•
•
DoD funding levels
Lack of detail of potential sequestration
Increased TRICARE co-pays and program changes
New BRAC round
Guard and Reserve Forces funding level
Military end strength levels
Ship decommissionings
10
Congressional Review of Defense Budgets
Why Congress changes requests
• Poor program execution
• Unjustified program growth
How Congress changes requests
• Approves or increases requested
funding and quantity levels
• Savings from DoD decisions
• Requires further action (studies,
reports, etc.) before allowing
obligations or expenditures
• Ineffective briefings
• Rescinds prior-year funding
• Other congressional committees’
actions
• Cuts requested funding and quantity
level either discreetly or by general or
across-the-board reductions
• Poor or incorrect justification
• GAO/IG/CBO reports and other studies
• Terminates program
11
FY 2014 Defense Budget:
Status of Congressional Action
Budget Resolution
•
•
•
House passed budget resolution
o Recommends defense funding at the requested level, before sequester
Senate passed budget resolution
o Recommends cutting defense funding by $250 billion through 2023
Conference—No Chance
Authorization
•
•
•
Committees are holding hearings
HASC has scheduled markups beginning May 22
SASC has scheduled markups beginning June 11
Appropriations
•
•
•
Subcommittees are holding hearings
House Appropriations Subcommittees have begun marking up bills
Senate Appropriations Subcommittee scheduled markups before August recess
12
Major Issues Facing the 113th Congress
Budget–related issues
• Budget resolution—will the House and Senate agree on a conference?
• Appropriations—can appropriations bills be passed before Sept 30?
• Sequestration—will it be reduced or replaced?
Fiscal Issues
• Debt ceiling—When does Congress need to act?
• Budget deal—Can a “grand bargain” be reached?
• Tax reform—will tax reform be considered separately from a budget deal?
Other issues
•
•
•
•
Gun control—will a bill be reconsidered in the Senate; can a bill pass the House?
Immigration reform—can an agreement be reached in this session?
Healthcare reform—Will congress make changes to Obamacare?
Cybersecurity—Can the House and Senate agree on legislation?
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How can you Track Congressional Action?
Congressional Research Service:
http://Thomas.loc.gov/
Committee Web Sites
•
•
•
•
•
•
House Budget Committee http://www.budget.house.gov/
Senate Budget Committee: http://www.budget.senate.gov/
House Armed Services Committee: http://www.house.gov/hasc/
Senate Armed Services Committee: http://www.armed-services.senate.gov/
House Appropriations Committee: http://www.appropriations.house.gov/
Senate Appropriations Committee: http://www.appropriations.senate.gov/
OMB:
http://www.whitehouse.gov/omb/
ASMC “Defense Highlights”
http://www.asmconline.org
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