Congressional Enactment
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1 Lunch & Learn 5 April 2017 Greg Martin gregory.martin@dau.mil Congressional Enactment
2 Constitutional Framework 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
3 Where Are We Today? Prior Years FY17 FY18 FY19 FY20 Execution (sort of) Sequestration mitigated by Bipartisan Agreement/Act Only one appn (MILCON and VA) enacted by 16 March 2017 Congressional Enactment (PB to Congress Feb 2017) Sequestration mitigated by Bipartisan Act Program Objective Memorandum (POM) due to OSD 30 Jun Estimate Submission (BES) due to OSD 1 Dec Sequestration returns (FY19-22) Planning Phase (Defense Planning Guidance ~Apr 2018) Sequestration returns (through FY22) 3
4 Today s Fiscal Environment 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 Agreement (see next slide) 4
5 Today s Fiscal Environment Bipartisan Agreement (Dec 2013) Revised discretionary budget caps for FY14 and FY15 Bipartisan Act of 2015 (Oct 2015) Revised discretionary budget caps for FY16 and FY17 Reduced FY16-17 DoD sequester by ~$40B 5
6 Congressional Acts & Accounting Act of 1921: Requires President to submit an annual budget Requires revenue & expenditure estimates Bureau of the & General Accounting Office (now Government Accountability Office) Established the apportionment process & Impoundment Control Act of 1974: Committees in House & Senate Concurrent Resolutions Congressional Office Impoundment limitation Revised budget submission timeline & end of fiscal year 6
7 DoD Processes FEB MAR APR MAY JUN JUL AUG SEPT OCT Congress CBO Report Concurrent Resolution authorizations process Auth Conference National Defense Authorization Act appropriations process Appn Conference DoD Appropriations Act President (OMB) National Apportionment Department Of Defense DoD Testimony & Appeals Allotment Military Departments Service s Execution
8 DoD Processes FEB MAR APR MAY JUN JUL AUG SEPT OCT Congress CBO Report Concurrent Resolution authorizations process Auth Conference National Defense Authorization Act appropriations process Appn Conference DoD Appropriations Act President (OMB) National Apportionment Department Of Defense DoD Testimony & Appeals Allotment Military Departments Service s 1. Planning, Programming, & ing Execution
9 DoD Processes FEB MAR APR MAY JUN JUL AUG SEPT OCT Congress CBO Report Concurrent Resolution authorizations process Auth Conference National Defense Authorization Act appropriations process Appn Conference DoD Appropriations Act President (OMB) National 2. Congressional Enactment Apportionment Department Of Defense DoD Testimony & Appeals Allotment Military Departments Service s 1. Planning, Programming, & ing Execution
10 DoD Processes FEB MAR APR MAY JUN JUL AUG SEPT OCT Congress CBO Report Concurrent Resolution authorizations process Auth Conference National Defense Authorization Act appropriations process Appn Conference DoD Appropriations Act President (OMB) National 2. Congressional Enactment Apportionment Department Of Defense DoD Testimony & Appeals Allotment Military Departments Service s 1. Planning, Programming, & ing 3. Execution Execution
11 115 th Congress HOUSE 435 Voting Members 193 Democrats 237 Republicans 0 Independents 5 Vacancies 6 non-voting members SENATE 100 Members 46 Democrats 52 Republicans 2 Independents 0 Vacancies 91 nd Military Service = 75% th Military Service = 64% th Military Service = 28% 110 th Military Service = 24% 115 th Military Service = 19% As of March 2017
12 Does Congress get there from here? Answer: A. 25 B. 20 C. 10 D. 2 Question: How many times in the past 30 years has the Congress enacted all 13 Appropriations in time for the beginning of the fiscal year in which they are needed? E. Never 12
13 Does Congress get there from here? Answer: A. 25 B. 20 C. 10 D. 2 Question: How many times in the past 30 years has the Congress enacted all 13 Appropriations in time for the beginning of the fiscal year in which they are needed? E. Never 13
14 Congressional Enactment Process 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
15 Resolution House & Senate Committees (HBC & SBC) Established by Impoundment & Control Act of 1974 Work with Congressional Office Projected spending / revenue levels Draft Concurrent Resolution Overall budget plan Spending ceilings for each major government function (e.g., National Defense) Resolution is NOT law Congress usually follows guidelines 15
16 Resolution Process 1 APRIL House HOUSE BUDGET COMMITTEE (HBC) CONGRESSIONAL BUDGET OFFICE (CBO) Senate SENATE BUDGET COMMITTEE (SBC) HOUSE BUDGET RESOLUTION SENATE BUDGET RESOLUTION Amendments FLOOR FLOOR Amendments HBC / SBC CONFERENCE CONCURRENT RESOLUTION FLOOR FLOOR 15 APRIL CONCURRENT BUDGET RESOLUTION 16
17 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
18 Authorization Process HOUSE ARMED SERVICES COMMITTEE (HASC) COMMITTEE / SUBCOMMITTEE HEARINGS MARCH HOUSE BILL / REPORT SENATE ARMED SERVICES COMMITTEE ( SASC ) COMMITTEE / SUBCOMMITTEE HEARINGS MARCH SENATE BILL / REPORT AMENDMENTS FLOOR FLOOR AMENDMENTS BILL BILL MAY - JUL FLOOR HASC / SASC CONFERENCE ACT / REPORT FLOOR SEP PRESIDENT SIGNS LAW 18
19 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
20 Appropriations Process HOUSE APPROPRIATIONS COMMITTEE ( HAC ) COMMITTEE / SUBCOMMITTEE HEARINGS APRIL / JUNE HOUSE BILL / REPORT SENATE APPROPRIATIONS COMMITTEE ( SAC ) COMMITTEE / SUBCOMMITTEE HEARINGS APRIL / JUNE SENATE BILL / REPORT AMENDMENTS FLOOR FLOOR AMENDMENTS BILL BILL JUN - AUG HAC / SAC CONFERENCE FLOOR ACT / REPORT FLOOR SEP PRESIDENT SIGNS LAW 12 APPROPRIATIONS ACTS 20
21 Congressional Enactment Timetable JAN FEB MAR APR MAY JUN JUL AUG SEP OCT Pres CBO Report Target Fiscal Year Committee Inputs BUDGET RESOLUTION HOUSE SENATE HRNGS Marks FLOOR Conf HRNGS Marks FLOOR ^ Resolution AUTHORIZATION HOUSE SENATE HASC HRNGS Marks FLOOR FLOOR Conf SASC HRNGS Marks FLOOR FLOOR Authorization Act ^ APPROPRIATION HOUSE SENATE HAC HRNGS MARK-UP FLOOR FLOOR Conf SAC HRNGS MARK-UP FLOOR FLOOR Appropriations Act ^ 21
22 Appeals To Congressional Marks General 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 request if only 1 (lower) mark exists Amount (mark) closest to the President s request if 2 (lower) Congressional marks exist President s amount if 1 or more of the Congressional marks exceeds the President s request Acceptable to appeal language, production quantities, & end strength as well as dollar amounts 22
23 Appeals Process Example [ Assume President s Request = $ 100 M ] AUTHORIZATION APPROPRIATION HASC Appeal to: SASC Appeal to: MARK 80 SASC AUTH Conf 90 MARK HAC Appeal to: SAC Appeal to: 86 AUTH BILL: APPN BILL: Rules: (1) Keep phases separate (2) Appeal to next Congressional committee of that phase (3) If 1 mark (lower than President s request), appeal to President s request (4) If 2 marks (both lower), appeal to mark closest to President s request (5) If 1 or more marks exceed the President s request, appeal back to the amount of the President s request 23
24 Appeals Process Example [ Assume President s Request = $ 100 M ] AUTHORIZATION APPROPRIATION HASC Appeal to: SASC Appeal to: MARK 80 SASC AUTH Conf 90 HAC MARK 81 SAC Appeal to: SAC Appeal to: APPN Conf AUTH BILL: APPN BILL: Rules: (1) Keep phases separate (2) Appeal to next Congressional committee of that phase (3) If 1 mark (lower than President s request), appeal to President s request (4) If 2 marks (both lower), appeal to mark closest to President s request (5) If 1 or more marks exceed the President s request, appeal back to the amount of the President s request 24 84
25 APPEALS PROCESS EXAMPLE [ Assume President s Request = $ 100 M ] HASC AUTHORIZATION MARK 80 SASC Appeal to: SASC Appeal to: AUTH Conf 90 APPROPRIATION MARK HAC Appeal to: SAC Appeal to: AUTH BILL: 86 APPN BILL: Rules: (1) Keep phases separate (2) Appeal to next Congressional committee of that phase (3) If 1 mark (lower than President s request), appeal to President s request (4) If 2 marks (both lower), appeal to mark closest to President s request (5) If 1 or more marks exceeds the President s request, appeal back to the amount of the President s request 25
26 APPEALS PROCESS EXAMPLE [ Assume President s Request = $ 100 M ] HASC AUTHORIZATION MARK 80 SASC Appeal to: SASC Appeal to: AUTH Conf 90 HAC APPROPRIATION MARK Appeal to: SAC 110 SAC Appeal to: APPN Conf 100 AUTH BILL: 86 APPN BILL: 106 Rules: (1) Keep phases separate (2) Appeal to next Congressional committee of that phase (3) If 1 mark (lower than President s request), appeal to President s request (4) If 2 marks (both lower), appeal to mark closest to President s request (5) If 1 or more marks exceeds the President s request, appeal back to the amount of the President s request 26
27 February The Congressional Path to a Federal March April May June through September House Committee formulates budget resolution Preside nt submits his budget proposal to Congres s. Senate Committee formulates budget resolution House floor votes conference committee reports out the concurrent resolution of the budget. Senate floor votes House floor votes Concurrent budget resolution reached. Senate floor votes House authorizing committees report changes in law to comply with budget resolution. House Appropriations Committees reports spending measures to comply with budget resolution. Senate Appropriations Committees reports spending measures to comply with budget resolution. Senate authorizing committees report changes in law to comply with budget resolution. House authorizing committees recommendations submitted to Committee. House votes on 12 separate appropriations bills. 10 plus conference committees (No complete alignment) Senate votes on 12 separate appropriations bills. Senate authorizing committees recommendations submitted to Committee. House votes on reconciliation. House votes on conference report. President signs or vetoes appropriations bills. Senate votes on conference report. Senate votes on reconciliation. reconciliation conference committees. House votes on reconciliation. Presiden t signs or vetoes appropria tions bills. Senate votes on reconciliation. 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. 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. 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. 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.
28 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 antideficiency 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 * 28
29 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 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 & Appropriation Liaison 29
30 Websites Congressional Enactment Library of Congress Thomas Committee Web Sites: House Committee Senate Committee House Armed Services Committee Senate Armed Services Committee House Appropriations Committee Senate Appropriations Committee 30
31 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: Continuous Learning Modules: CLB 010 Congressional Enactment Distance Learning Courses: BCF 103 Fundamentals of Business Financial Management Classroom Courses: BCF 211 Acquisition Business Management 31
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