The Federal Budget Process
Running head: The Federal Budget Process
The Federal Budget Process
Abstract
This report focuses on the federal budget process of the United States of America. The annual federal budget begins with a detailed proposal from the President in February. The budget request is developed by the President’s Office of Management and Budget (OMB). Next, Congress creates a blueprint called a budget resolution that sets limits on how much each committee can spend (or reduce revenues) over the course of the year. The terms of the budget resolution are then enforced against individual appropriations, entitlement bills, and tax bills on the House and Senate floors. In addition, Congress sometimes uses a special procedure called “reconciliation” to facilitate the passage of deficit reduction legislation or other major entitlement or tax legislation.
The Federal Budget Process
The federal Budget of the United States of America is the President’s proposal to the Congress recommending funding levels for the next fiscal year which begins on October 1 (Heniff, 2001). It is through the budget that the nation chooses what areas it wishes to leave to private choice and what services it wants to provide through government. When enacted, the budget represents the decisions of the Nation’s elected representatives as to which governmental services should be provided at the Federal rather than the State or local level (Mikesell, 2011; Myers, Rumburg, & Johnson, 1989). The basic law governing the content of the president’s budget is the Budget and Accounting Act of 1921 (Posner, 2009). This law not only created the requirement for the president’s budget, but set in motion ever-increasing demands for information to support the preparation and packaging of the president’s budget. Further, by the creation of the General Accounting Office, this law codified the need to check spending before the fact (Posner, 2009).
On or before the first Monday in February,
The Federal Budget Process
Abstract
This report focuses on the federal budget process of the United States of America. The annual federal budget begins with a detailed proposal from the President in February. The budget request is developed by the President’s Office of Management and Budget (OMB). Next, Congress creates a blueprint called a budget resolution that sets limits on how much each committee can spend (or reduce revenues) over the course of the year. The terms of the budget resolution are then enforced against individual appropriations, entitlement bills, and tax bills on the House and Senate floors. In addition, Congress sometimes uses a special procedure called “reconciliation” to facilitate the passage of deficit reduction legislation or other major entitlement or tax legislation.
The Federal Budget Process
The federal Budget of the United States of America is the President’s proposal to the Congress recommending funding levels for the next fiscal year which begins on October 1 (Heniff, 2001). It is through the budget that the nation chooses what areas it wishes to leave to private choice and what services it wants to provide through government. When enacted, the budget represents the decisions of the Nation’s elected representatives as to which governmental services should be provided at the Federal rather than the State or local level (Mikesell, 2011; Myers, Rumburg, & Johnson, 1989). The basic law governing the content of the president’s budget is the Budget and Accounting Act of 1921 (Posner, 2009). This law not only created the requirement for the president’s budget, but set in motion ever-increasing demands for information to support the preparation and packaging of the president’s budget. Further, by the creation of the General Accounting Office, this law codified the need to check spending before the fact (Posner, 2009).
On or before the first Monday in February,
References: Apfel, K. (2008). Better information is needed to make better federal budget decisions. Journal Policy Analysis & Management, 27(4), 960-962. Retrieved from EBSCOhost.of Bahn, R., (1969) Heniff, William Alan, Jr. (2001). The impact of the budget process on spending decisions. Ph.D. dissertation, University of Maryland College Park, United States -- Maryland. Retrieved May 5, 2011, from ABI/INFORM Global. (Publication No. AAT 3035786). Kleinbard, E. D. (2010). TAX EXPENDITURE FRAMEWORK LEGISLATION. National Tax Journal, 63(2), 353-381. Retrieved from EBSCOhost. Mikesell, J.,(2011). Fiscal Administration: Analysis and Applications for the Public Sector, (8th Ed). Wadsworth, Cengage Learning Myers, R., Rumburg, C., and Johnson, D., (1989) Philip, J., and Reischauer, R., (1992). “Deficit budgeting: The Federal Budget Process and Budget Reform.” Harvard Journal on Legislation, vol.29, p. 429-453 Policy Basics: Introduction to the federal budget process Posner, P. L. (2009). Introduction to the Mini-Symposium on the Federal Budget Process: The Persistence of Reform. Public Administration Review, 69(2), 207-210. doi:10.1111/j.1540-6210.2008.01966.x Reischauer, R., (1990) Yourish K., & Stanton, L., (2001).A guide to the federal budget process. http://www.washingtonpost.com/wp-srv/special/politics/federalbudgetprocess/budgetprocess. Retrieved May 5, 2011.