THE BASIC STAGES OF THE CONGRESSIONAL BUDGET PROCESS
The
framework of the budget process can be divided up into five stages each of
which is governed by its own procedures outlined in the Budget Act, the rules
of the House and Senate, and other relevant statutes. The last three stages
often occur simultaneously. The
President’s Budget Submission. The
President submits a comprehensive budget request to Congress in early
February which outlines the Administration’s policy and funding priorities
and the economic outlook for the coming fiscal year. This budget, which
estimates spending, revenue and borrowing levels, is compiled by OMB from
input by the various federal agencies, with funding broken down into 20
budget function categories. Adoption
of the Budget Resolution. House and
Senate Committees hold hearings on the President’s budget and the Budget
Committees report a concurrent resolution on the budget that sets each
committee’s allocation of spending authority for the next fiscal year and
aggregate spending and revenue levels for 5 years. The budget resolution also
establishes aggregate totals with respect to revenues and spending for the
entire federal budget. This resolution, once adopted, is not law, as it is
not signed by the President. The allocations, enforceable through points of
order, establish the framework to consider spending and revenue bills on the
House and Senate floor. Passage
of Appropriation Bills. In May the
House begins consideration of the 13 annual appropriation bills for the next
fiscal year based on the discretionary spending allocation in the budget
resolution. As these bills move through hearings, markups, Floor
consideration, and conference they are constrained by the levels and
allocations in the budget resolution and the enforcement of the Budget Act
and through House and Senate rules. Consideration
of Reconciliation Legislation. If
the spending and revenue levels in the budget resolution require changes in
existing law, the resolution would contain instructions to committees to
report legislation containing such statutory changes. Whether for tax
increases or decreases, deficit reduction, mandatory spending increases or
decreases or adjustments in the public debt limit, this process has been used
to focus many agents on one goal, often in a large bill. Consideration
of Authorization Legislation.
Congress considers numerous measures authorizing the appropriation of funds
on a myriad of programs each fiscal year. This decision-making is constrained
by the Budget Act and through House and Senate rules. |