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Federal Budget Process Overview
The document outlines the complexities of the federal science and technology (S&T) budget process, including interactions between agency requests, interagency policies, and congressional appropriations. It discusses the challenges of aligning operational and research priorities, the significance of the budget review process, and the critical role of peer review in funding decisions. Additionally, it highlights the importance of timely appropriations and the issues caused by earmarks in budget management.
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Federal Budget Process Overview
- 1. The Federal S&TBudget Process (Adapted from 2007 presentation to biometrics community) Duane Blackburn Office of Science & Technology Policy July 2009 Biometrics.gov
- 2. Agency Budget Requests Operational (and other) Needs • 1 year S&T PMs S&T PMs S&T PMs… • 5 year • 10 year Scientific Community Capabilities & Plans Interagency Policy (NSTC) Competing Priorities Policy & Budget • Ops vs R&D? • Priority A or B? Administration Priorities Agency Budget Request OMB instructions Budget Limitations Action Influence Biometrics.gov
- 3. Agency Budget Requests AgencyA Budget Request Department Policy & Budget Agency B Budget Request… Interagency Policy (NSTC) Competing Priorities Department/Agency • Ops vs R&D? Budget Request • Priority A or B? Administration Priorities OMB instructions Budget Limitations Action Influence Biometrics.gov
- 4. EOP Budget Review Dept/AgencyA Department/Agency Budget Request OMB Analysis & Budget Draft Dept/Agency B Budgeting Budget Request… Agency Passback Interagency Policy EOP Review (NSTC) Competing Priorities OMB Analysis & • Ops vs R&D? Budgeting OMB Analysis & • Priority A or B? Budgeting Administration Priorities Budget Books, One OMB instructions President’s Budget pagers, talking Request Budget Limitations points, etc. Action Influence Biometrics.gov
- 5. Almost Done! 13(?) Budget Bills President’s Budget Request President’s Signature Funding Allocated to Congress Agency Accounts Action Influence Biometrics.gov
- 6. …or not! Funding Allocatedto Agency Accounts Operational (and other) Needs • 1 year • 5 year • 10 year S&T PMs Funding Allocated to Scientific Community Capabilities & Plans Subaccounts Interagency Policy (NSTC) Competing Priorities Legislative Mandates Policy & Budget Budget Limitations Action Influence Biometrics.gov
- 7. Finally, action thepublic sees! Funding Allocated to Subaccounts S&T PMs Contracting Officers Operational (and other) Needs • 1 year RFPs • 5 year • 10 year Scientific Community Proposals Capabilities & Plans Contract Interagency Policy Award (NSTC) Peer Competing Priorities Review Legislative Mandates Budget Limitations Policy & Budget In Some Agencies Administration Priorities Action Influence Biometrics.gov
- 8. Budget Timelines Agencies are Executing FY09 Budget Administration Administration and Congress negotiate FY10 budget Prepares FY10 budget NSTC Drafts Plans for Agencies formulate FY11 FY11 Budget Request Oct 1, Nov Dec Jan Feb March April May June July August Sept. 2008 2009 OSTP/OMB Agency Budget President transmits the submits 2010 Guidance budget to FY09 fiscal year begins. budget for FY10 to Memo OMB. Annual appropriations and Congress on the first Monday in February and FY09 ends and FY10 begins. Annual changes in other spending the Administration begins appropriations and changes in other and revenue laws take effect. work on the budget for spending and revenue laws take effect. Office of Management and FY11. Office of Management and Budget (OMB) Budget (OMB) apportions apportions funds and agencies begin to funds and agencies begin to execute their budgets. execute their budgets. Biometrics.gov
- 9. “Color” of Moneyis Important Technology Maturation (6.2 & 6.3) Prototype Demo (6.4) Basic Research (6.1) Understanding Phenomena Phenomena Transition Maturing Applied Research and Means Advanced Technology ACTDs to ACQ Development Systems DOD, DHS NSF NIST NIJ GSA Biometrics Biometrics.gov
- 10. What about theChallenge Doc? S&T PMs Interagency Policy (NSTC) Policy & Budget Competing Priorities Department • Ops vs R&D? Policy & Budget • Priority A or B? OMB Analysis & Administration Budgeting Priorities EOP Review OMB instructions Agency Passback Action Influence Biometrics.gov
- 11. S&T Budget FastFacts ► The federal budgeting process is very complex and detailed ► Plans go through rigorous review & approval processes ■ Except for very small amount efforts, which are planned at the very end of the process ■ Process prohibits PMs from making definitive statements about future plans ► Realignment of funds from between focus areas is difficult ► The “Color of Money” is important ► Multi-year programs are difficult to establish ■ Interagency multi-year programs even more so ► Federal FY runs October through September ► Money expires ■ In most agencies, funds must be “let” by the end of the FY or it is lost ■ Some agencies have funding that doesn’t expire for 2 or more years ► Congressional timeliness is important ■ Beginning of FY remains in October, even if appropriations laws are late ■ Continuing Resolutions throw S&T plans into (temporary) disarray ► Federal agencies are working on three fiscal years at any given time. ► Peer review is critical ► Determining budget allocations & actual contracts ► Challenges scientists, which produces better results ► Earmarks are harmful ■ Typically fund non-critical initiatives, taking money away from true needs ■ Minimal positive impact as it isn’t a component of overall plans ■ Often performed by parties that wouldn’t have been selected via competitive review ■ Are difficult to manage Biometrics.gov
- 12. Budget Development Congressand/or President establish agencies & missions President’s Budget Request Submitted to President signs or Congress (Early Feb) vetoes appropriations bills OSTP & OMB issue guidance House & Senate memoranda on Hearings priorities; NSTC, Agencies make decisions NSC and HSC on allocation of prepare interagency Congressional resources consistent plans. Budget Resolution with enacted (April 15) appropriations and program plans Agencies prepare and submit Appropriations hearings proposed budgets with agencies & EOP on FY Begins (Oct 1) to OMB individual programs EOP Analyzes Congress marks up requests and develops & passes agency budget appropriations bills Biometrics.gov
- 13. Duane Blackburn dblackburn@ostp.eop.gov 202-456-6068 Biometrics.gov