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 Legislative Branch - Congress The President can veto legislation Executive Branch The President Senate 100 Senators House 435 Representatives Congress controls the budget; Can pass laws over president s veto Cabinet Secretaries 15 Heads of Departments, nominated by the President, approved by the Senate 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 435 Representatives 240 Republicans, 194 Democrats, 1 TBD U.S. Senate Republican 100 Senators 52 Republicans, 46 Democrats, 2 Independents (caucus w/ds)
THE INTERPLAY OF APPROPRIATIONS AND AUTHORIZATIONS Appropriations - Write funding bills - Have final funding say - Must stay within budget allocation Authorization - Write rationale for program funding - Set financial targets for programs
CONGRESSIONAL COMMITTEES - THE FOUR CORNERS - House Speaker: Paul Ryan Senate Maj. Leader: Mitch McConnell House Appropriations Majority Senate Appropriations Majority House Appropriations Minority Senate Appropriations Minority
HOW LAWS ARE MADE
THE ABBREVIATED VERSION White House + Congress = Federal Budget
US FEDERAL BUDGET PROCESS US Fiscal Year FY19 FY18 2016 2017 2018 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 BUDGET FIRST, THE 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 New US FY17 US FY18 US FY2016 US FY2017 US FY2018
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? Phyllis.frosst@Seqirus.com