how a budget is born or a budget breakdown

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Budget breakdown or how a governmentbudget is born

Total budgetary spending

Each federal department prepares their own respec-tive budget, about 10 months before the Presidentis required by law to send the complete proposalto Congress. Then, after each federal agency hasprepared their budget, each department sends itsfunding requests to the Presidents Oce of Mana-gement and Budget. The OMB department takes alook, reviews each federal agencys budget, eitherapproves each departments request or sends it backwith recommended changes. If an agencys budgetis declined by the OMB, that federal department caneither amend their budget and resubmit it or appealto the director. Of course no department wants theirbudget proposal bounce back to them.

In some cases, an agency can appeal to the Pre-sident to overrule the OMBs decisions. Once theOMB approves of each agencys budget they areall compiled into one document by the OMB andthe complied budget is sent to the President. ThePresident then sends the complete budget proposalto Congress. During the ten months, the President

is developing his or her budget; Congress is deve-loping its own budget. This is a concurrent budget.The Presidents budget is not legally binding, butprovides a framework for Congress to work with.

Each year most of the proposed budget is in theform of mandatory spending, the remaining beingin the form of discretionary spending. Concerningmandatory spending, the laws authorizing the ori-ginal act also include the budgetary authority tocontinue spending on the program. These acts wouldinclude our major entitlement programs such asSocial Security, Medicare and Medicaid. The fun-ding for most of our major entitlements is open-ended having no upper spending limits. However,

there are exceptions such as the act authorizing theFood Stamp program. Funding for the Food Stampprogram requires periodic renewal by Congress.Discretionary spending programs require autho-rization annually and must go through the Houseand Senate committees on Appropriations for eachupcoming scal year.

Once Congress receives, the Presidents budgetproposal the House and Senate budget committeesreview it. The OMB and other ocials from the ad-ministration testify to the House and Senate budgetcommittees with their justications as to why thereshould be a proposed increase or decrease in thefunding of certain federal programs. The Houseand Senate Budget committees then draft the bud-get resolutions necessary to fund our governmentprograms. Once this is accomplished, each budgetresolution is voted on or amended on the Houseand Senate oors. Once Congress has reviewed allnecessary budget resolutions, the annual appro-

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Budget breakdown or how a government budget is born

priations bills can then be passed. Approved ap-propriations bills are forwarded to their matchingrespective sub-committees, authorizing each sub-committee to spend money by producing legislationfor the next scal year. The subcommittees developlegislation to spend the money and forward theirrecommendations through to their own committee.The committee reviews the subcommittees legisla-tion and if it accepted, it is then sent to the House or

Senate oor to be amended and/or voted on. Oncethe bill is nally passed, the federal agency the billis meant for receives the approval to spend its ap-propriations for that year.

Each annual budget resolution sets forth spendingand credit amounts for each year by functional cate-gory. There are total of 20 functional categories in ayearly budget resolution. A yearly budget resolution

includes a 302(a) allocation table that outlines whatfunding is to be distributed to each of the 12 subcom-mittees that decide how our federal revenue is spendeach year. Each committees budget is dictated bytheir respective budget resolution, and the fundingis then distributed accordingly. This represents thetotal dollar limit each committee can spend by pas-sing legislation to spend it each year. For example,the education committee could produce legislationto increase Title I spending, however it cannot bespent until the Labor-HHS Education appropriationsbill is passed, which sets the total amount of Title Ispending that can be spent in that year.

Some committee categories outlined by the 302(a)table are: National Defense (50) Energy (270) Educa-tion, training, employment and social services (500)

Each category is then divided into its respectivesubcategories. One example is category 500. Cate-gory 500 is broken down into subcategories such as:Elementary, secondary, and vocational education(501) Higher education (502) Research and general

education aids (503) Training and employment (506)Scientic and health research are in subcategories(250) and (552) respectively.

Although the budgetary process is somewhat re-moved from direct political intervention (popularvote), it is effected by the public. Note: You can ef-fect change in the budget. The budget is in largepart a reection of the Presidents political views.

Our federal budgets priorities will change basedon who is President and those whom are elected inCongress. Since the party who controls the Houseand/or Senate takes control of all committees andtheir appointments, voting matters. This meansthat lobbying the various committee and subcom-mittees that oversee the budget for health researchcan increase the spending on such worthy endea-vors. Endorsing candidates who run for Congressor the Presidency will have a major effect on whatis eventually presented in the budget if that candi-

date is voted into oce. So, actions such as voting,endorsing candidates, lobbying for additions to a billand sending petitions requesting budgetary changesin a bill to those who may increase funding or haveviews in favor of healthcare research and cancerresearch, will in fact probably increase the fundingof such items.

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