1.
Global Business Services
Continuing Resolutions
Background
Carl L. Moravitz
IBM Global Business Services
February 2011
© Copyright IBM Corporation 2008

2.
Continuing Resolution – Background
 We’ve had CRs for most of the past 30 years . . .
 However, seldom have they been across all of government for this
long (the last extended period, 1995)
 The new Congress wants to change the budget for the FY 2011:
 Reduce funding to be implemented over the last 7 months
 Potentially driving funding to lower that last year’s level
 Actions may result in perpetual CR – at least through FY 2012,
including Defense, Veterans, and DHS, which have traditionally been
funded through enacted appropriations
Serious discussions are underway about going back
to 2008 spending levels—or earlier!
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3.
Continuing Resolution – Background
 CRs fund programs, whose appropriations have expired and new
funding has not been authorized for the new fiscal year
 Nearly all salaries and expenses of federal departments and agencies
are supported by this kind of appropriation
 CRs normally authorize departments and agencies to keep funding
their programs at the level of the previous year's appropriations
 For Fiscal 2011, an initial CR was enacted to cover government
through early December 2010.
 Before adjournment of the 111th Congress in December, however,
another CR (PL 111-322) was enacted to continue government
operations through March 4, 2011
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4.
Continuing Resolution – Background
 The current CR law funds most departments, agencies and programs at
the levels enacted for FY2010, with a few targeted adjustments, in such
areas as:
 Agriculture programs
 Census activities
 Transportation projects
 Homeland Security
 Defense
 Veterans operations
 The current CR legislation funding government through March 4, 2011
(PL 111-322) also enacts a provision that freezes the pay of federal
civilian workers for two years (calendar years 2011 and 2012).
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5.
Continuing Resolution – Background
 New 112th Congress (starting up in January 2011) is left with unfinished
business from the 111th Congress
 Needs to address approval of all 12 appropriations bills prior to
March 4, 2011, while at the same time beginning the deliberation on
funding for FY 2012.
 It’s likely that the current CR may be extended to fund operations through
the rest of the fiscal year, if Congress is unable to agree on authorized
funding levels for FY 2011.
Full Year CR May Be Needed for all of FY 2011
(Current CR Expires March 4, 2011)
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6.
Continuing Resolution – Background
 Resolution of FY 2011 funding and the pending CR are complicated by
several proposals to significantly reduce funding for non-security
agencies (non-defense, non-veterans, non-department of homeland
security).
 Proposals call for reductions for non-security agencies back to FY
2008 levels ($80 billion)
 Reductions, if implemented, would likely fall in the $50 plus billion
range due to the late enactment of FY 2011 legislation – although, the
House is pushing for the full $80B
 A short-term extension is likely into early April, while to debate on
funding levels is underway.
Congress Considering Cuts in FY 2011
House Begins Debates on Cuts Week of February 14, 2011
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