The Budget As An Expression of Public Policy

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The Budget As An Expression of Public Policy

• Sean OKeefe
• September 25, 2000

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What is the Budget Process?

• A framework for raising revenue
• A means to allocate resources
• Federal process easiest to describe
• State local methods incorporate similar
• methods with one key distinction
• federal is a unified budget process
• state local incorporate several approaches

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Genesis

• Budget and Accounting Act of 1921
• established Presidents Budget submission
• established Bureau of the Budget
• created the General Accounting Office
• R.S. 3678 and 3679

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Genesis II

• Congressional Budget and Impoundment Control Act
  of 1974
• a mechanism to coordinate Congressional action
• created Budget Committees and budget resolution
• established the Congressional Budget Office
• established impoundment procedures

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Genesis III

• Balanced Budget and Emergency Deficit Control Act
  of 1985
• (aka Gramm-Rudman-Hollings)
• designed to eliminate deficit by 1991
• it didnt
• amended in 1987 -- changed target to 1993
• still didnt make it

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Genesis IV

• 1990s budget resolutions
• Omnibus Budget Reconciliation Act of 1990
• Budget Enforcement Act of 1990
• Discretionary caps and entitlement targets
• Pay-As-You-Go (PAYGO) provisions introduced
• Balanced Budget Act of 1997

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Budget Process Today

• Budget Preparation/Development
• Internal agency process
• OMB interaction with agencies departments
• Presidents Budget submission

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Budget Process Today

• Congressional Consideration
• budget resolution
• reconciliation process
• authorization
• appropriations
• Budget Execution Audit/Evaluation

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Policy Conflicts as expressed in the Budget
Process

• Revenue sensitive to economic performance
• Focus on discretionary spending
• Federal shutdowns
• Debt Ceiling Debate
• Line Item Veto
• Process, not policy, usually dictates timing
• Scorekeeping rules drives choices

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