Lunch & Learn 5 April 2017 Greg Martin gregory.martin@dau › Lists › Events › Attachments ›...

Congressional Enactment

Lunch & Learn5 April 2017Greg [email protected]

• Article 1 Section 8: The Congress shall have power to lay & collect taxes, duties, imposts & excises, to pay the debts & provide for the common defense & general welfare….

– To raise & support armies– To provide & maintain a navy– To make rules for the government & regulation of the land &

naval forces

• Article 1 Section 9: …no money shall be drawn from the Treasury, but in consequence of appropriations made by law…

2

Constitutional Framework

Where Are We Today?

• Prior Years – FY17– Execution (sort of)– Sequestration mitigated by Bipartisan Budget Agreement/Act– Only one appn (MILCON and VA) enacted by 16 March 2017

• FY18– Congressional Enactment (PB to Congress Feb 2017)– Sequestration mitigated by Bipartisan Budget Act

• FY19– Program Objective Memorandum (POM) due to OSD 30 Jun– Budget Estimate Submission (BES) due to OSD 1 Dec– Sequestration returns (FY19-22)

• FY20– Planning Phase (Defense Planning Guidance ~Apr 2018)– Sequestration returns (through FY22)

3

Today’s Fiscal Environment

• Budget Control Act (Aug 2011)– Established 10-year discretionary budget caps (FY11 – FY21)– Reduced DoD budget ~$487 billion over 10 years– Established committee to recommend additional $1.5T in savings

• Sequestration– Failure of committee resulted in additional automatic reductions to

DoD of ~$600B over 10 years to begin Jan 2013– Returns in FY18 unless another “Budget Agreement” (see next

slide)

4

Today’s Fiscal Environment

• Bipartisan Budget Agreement (Dec 2013)– Revised discretionary budget caps for FY14 and FY15

• Bipartisan Budget Act of 2015 (Oct 2015)– Revised discretionary budget caps for FY16 and FY17– Reduced FY16-17 DoD sequester by ~$40B

5

Congressional Acts

• Budget & Accounting Act of 1921:• Requires President to submit an annual

budget• Requires revenue & expenditure estimates• Bureau of the Budget & General

Accounting Office (now Government Accountability Office)

• Established the apportionment process

• Budget & Impoundment Control Act of 1974:• Budget Committees in House & Senate• Concurrent Resolutions• Congressional Budget Office• Impoundment limitation• Revised budget submission timeline & end of

fiscal year6

DoD Budget Processes

MilitaryDepartments

DepartmentOf Defense

President(OMB)

Congress

CBOReport

Concurrent BudgetResolution

BudgetExecution

Testimony & Appeals

FEB APR MAY JUL SEPT OCTMAR JUN AUG

ConferenceAppn

AuthConference

National DefenseAuthorization

Act

DoDAppropriations

Act

BudgetNational Apportionment

AllotmentDoDBudget

authorizations process

appropriations process

BudgetsService


MilitaryDepartments


President(OMB)

Congress

CBOReport


BudgetExecution

Testimony & Appeals


ConferenceAppn

AuthConference


Act

DoDAppropriations

Act


AllotmentDoDBudget



BudgetsService

1. Planning, Programming,& Budgeting


MilitaryDepartments


President(OMB)

Congress

CBOReport


BudgetExecution

Testimony & Appeals


ConferenceAppn

AuthConference


Act

DoDAppropriations

Act


AllotmentDoDBudget



BudgetsService


2. CongressionalEnactment


MilitaryDepartments


President(OMB)

Congress

CBOReport


BudgetExecution

Testimony & Appeals


ConferenceAppn

AuthConference


Act

DoDAppropriations

Act


AllotmentDoDBudget



BudgetsService


2. CongressionalEnactment

3. BudgetExecution

115th Congress

• 193 Democrats • 237 Republicans• 0 Independents• 5 Vacancies• 6 non-voting members

HOUSE SENATE• 435 Voting Members

• 46 Democrats• 52 Republicans • 2 Independents• 0 Vacancies

110th Military Service = 24%108th Military Service = 28%

• 100 Members

97th Military Service = 64% 1979 - 198191nd Military Service = 75% 1969 - 1971

115th Military Service = 19%As of March 2017

Question: How many times in the past30 years has the Congress enacted all

13 Appropriations in time for the beginning of the fiscal year in which they are needed?

Answer:

A. 25

B. 20

C. 10

D. 2

E. Never

12

Does Congress get there from here?

Question: How many times in the past30 years has the Congress enacted all

13 Appropriations in time for the beginning of the fiscal year in which they are needed?

Answer:

A. 25

B. 20

C. 10

D. 2

E. Never

13

Does Congress get there from here?

Congressional Enactment Process

Budget Resolution:Sets Congressional budget at “top

line/ceilings” for spending for major functions & revenues

Defense Authorization:Provides authorization, at a

maximum ceiling level, for specific activities/”things” for which budget authority (BA) may be appropriated

Defense & MILCON Appropriations:Provides BA for those

activities/”things” authorized –permission to obligate the Government; Congressional rules generally prohibit appropriating BA for purposes not authorized

14

Budget Resolution

• House & Senate Budget Committees (HBC & SBC)

• Established by Budget Impoundment & Control Act of 1974

• Work with Congressional Budget Office– Projected spending / revenue levels

• Draft Concurrent Budget Resolution– Overall budget plan– Spending ceilings for each major government

function (e.g., National Defense)– Resolution is NOT law– Congress usually follows guidelines

15

HOUSE BUDGET COMMITTEE (HBC)

Budget Resolution ProcessCONGRESSIONAL BUDGET OFFICE

(CBO)SENATE BUDGET COMMITTEE (SBC)

HOUSE BUDGET RESOLUTION

SENATE BUDGET RESOLUTION

FLOOR FLOOR

HBC / SBC CONFERENCE

Amendments

1 APRIL

CONCURRENT RESOLUTION

FLOORFLOOR

CONCURRENT BUDGET

RESOLUTION15 APRIL

Amendments

House Senate

16

National Defense Authorization Act

• House Armed Services Committee (HASC)• Senate Armed Services Committee (SASC)• Provides for:

– Program approval (new starts &continuing programs)

– Procurement quantities– Funding ceilings for programs– Personnel end-strength– Policy

17

Authorization ProcessHOUSE ARMED SERVICES

COMMITTEE (HASC)SENATE ARMED SERVICES

COMMITTEE ( SASC )

COMMITTEE / SUBCOMMITTEE HEARINGS

MARCH


MARCH

HOUSE BILL / REPORT

SENATE BILL / REPORT

FLOOR FLOOR

FLOOR FLOOR

HASC / SASC CONFERENCE

BILL BILL

AMENDMENTS

ACT / REPORT

PRESIDENT SIGNS

LAW

MAY - JUL

SEP

AMENDMENTS

18

Appropriation Act

• House Appropriations Committee (HAC)• Senate Appropriations Committee (SAC)• Normally follow lead of authorizing committees• Provide budget authority (BA) - permission to obligate• 12 annual appropriations acts – (Jan 07 Reorg)

– Defense– Military Construction, VA &

Other Related agencies– Energy and Water

Development

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Appropriations ProcessHOUSE APPROPRIATIONS

COMMITTEE ( HAC )SENATE APPROPRIATIONS

COMMITTEE ( SAC )


APRIL / JUNE


APRIL / JUNE

HOUSE BILL / REPORT

SENATE BILL / REPORT

FLOOR FLOOR

FLOOR FLOOR

HAC / SAC CONFERENCE

BILL BILL

AMENDMENTS

ACT / REPORT

PRESIDENT SIGNS

LAW

JUN - AUG

SEP12 APPROPRIATIONS ACTS

AMENDMENTS

20

AUTHORIZATION

BUDGET RESOLUTION

APPROPRIATION

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT

Committee Inputs

HOUSE

SENATE

HOUSE

SENATE

HOUSE

SENATE

HASC HRNGS Marks FLOOR FLOOR

SASC HRNGS Marks FLOOR FLOOR

AuthorizationAct

CBO Report

Pres Budget“Target”

Fiscal Year

HAC HRNGS MARK-UP FLOOR FLOOR

SAC HRNGS MARK-UP FLOOR FLOOR

^

^

Congressional Enactment Timetable

HRNGS Marks FLOOR

HRNGS Marks FLOOR

BudgetResolution^

AppropriationsAct

Conf

Conf

Conf

21

Appeals To Congressional MarksGeneral Rules Between Congress & DoD

• Authorization & Appropriation phases are considered separately• Appeal to next Committee of that phase considering the budget

request (e.g., generally appeal to the SASC, SAC and/or the appropriate conference committee)

• Appeal to:– President’s Budget request if only 1 (lower) mark exists– Amount (mark) closest to the President’s Budget request

if 2 (lower) Congressional marks exist– President’s Budget amount if 1 or more of the

Congressional marks exceeds the President’s Budget request

• Acceptable to appeal language, productionquantities, & end strength as well asdollar amounts 22

Appeals Process Example

[ Assume President’s Budget Request = $ 100 M ]

AUTHORIZATION

MARK

HASC $______M

Appeal to: ___________ $______M

SASC $______M

Appeal to: ___________ $______M

AUTH BILL: $______M

APPROPRIATION

MARK

HAC $______M

Appeal to: ___________ $______M

SAC $______M

Appeal to: ___________ $______M

APPN BILL: $______M

80SASC 10090

AUTH Conf 90

86Rules:(1) Keep phases separate(2) Appeal to next Congressional committee of that phase(3) If 1 mark (lower than President’s Budget request), appeal to President’s Budget request(4) If 2 marks (both lower), appeal to mark closest to President’s Budget request(5) If 1 or more marks exceed the President’s Budget request, appeal back to the amount of

the President’s Budget request 23

Appeals Process Example


AUTHORIZATION

MARK

HASC $______M

Appeal to: ___________ $______M

SASC $______M

Appeal to: ___________ $______M

AUTH BILL: $______M

APPROPRIATION

MARK

HAC $______M

Appeal to: ___________ $______M

SAC $______M

Appeal to: ___________ $______M

APPN BILL: $______M

80SASC 10090

AUTH Conf 90

86

81SAC 10085

APPN Conf 85

84Rules:(1) Keep phases separate(2) Appeal to next Congressional committee of that phase(3) If 1 mark (lower than President’s Budget request), appeal to President’s Budget request(4) If 2 marks (both lower), appeal to mark closest to President’s Budget request(5) If 1 or more marks exceed the President’s Budget request, appeal back to the amount of

the President’s Budget request 24

APPEALS PROCESS EXAMPLE


AUTHORIZATION

MARK

HASC $______M

Appeal to: ___________ $______M

SASC $______M

Appeal to: ___________ $______M

AUTH BILL: $______M

APPROPRIATION

MARK

HAC $______M

Appeal to: ___________ $______M

SAC $______M

Appeal to: ___________ $______M

APPN BILL: $______M

80SASC 100

90AUTH Conf 90

86

Rules:(1) Keep phases separate(2) Appeal to next Congressional committee of that phase(3) If 1 mark (lower than President’s Budget request), appeal to President’s Budget

request(4) If 2 marks (both lower), appeal to mark closest to President’s Budget request(5) If 1 or more marks exceeds the President’s Budget request, appeal back to the

amount of the President’s Budget request 25

APPEALS PROCESS EXAMPLE


AUTHORIZATION

MARK

HASC $______M

Appeal to: ___________ $______M

SASC $______M

Appeal to: ___________ $______M

AUTH BILL: $______M

APPROPRIATION

MARK

HAC $______M

Appeal to: ___________ $______M

SAC $______M

Appeal to: ___________ $______M

APPN BILL: $______M

80SASC 100

90AUTH Conf 90

86

110SAC 100108

APPN Conf 100

106

Rules:(1) Keep phases separate(2) Appeal to next Congressional committee of that phase(3) If 1 mark (lower than President’s Budget request), appeal to President’s Budget

request(4) If 2 marks (both lower), appeal to mark closest to President’s Budget request(5) If 1 or more marks exceeds the President’s Budget request, appeal back to the

amount of the President’s Budget request 26

The Congressional Path to a Federal Budget

The president’s budget is not binding and is considered the administration’s proposal and request. With it comes volumes of information, including budget justifications from each agency that help Congress complete its own budget. The president’s budget generally is submitted by the first Monday in February.

Another portion of the funds goes to authorizing committees for entitlements and other mandatory spending. To change these amounts, laws must be rewritten and voted on in reconciliation legislation, which requires presidential signature to become law.

February June through SeptemberMarch April May

House Budget

Committee formulates

budget resolution

Senate Budget

Committee formulates

budget resolution

Budget conference committeereports out

the concurrent

resolution of the budget.

House floor votes

Senate floor votes

House votes on 12 separate

appropriations bills.

Housevotes on

reconciliation.

Housevotes on

conference report.

Housevotes on

reconciliation.

Senate votes on 12 separate appropriations

bills.

Senatevotes on

conference report.

Senatevotes on

reconciliation.

Senatevotes on

reconciliation.

Concurrent budget

resolution reached.

House authorizing committees

report changes in law to comply

with budget resolution.

Senate authorizing committees

report changes in law to

comply with budget

resolution.

House Appropriations

Committeesreports spending

measures to comply with

budget resolution.

Senate Appropriations

Committeesreports spending

measures to comply with

budget resolution.

House authorizing committees

recommendations submitted to

Budget Committee.

10 plus conference committees(No complete

alignment)

Senate authorizing committees

recommendations submitted to

Budget Committee.

Budget reconciliation

conference committees.

President signs or

vetoes appropriations bills.

President signs or vetoes

appropria-tions bills.

House floor votes

Senate floor votes

President

submits his

budget proposal

to Congres

s.

The House and Senate budget committees develop their own versions of a budget resolution. If the traditional schedule holds, both are developed by early April, and the leading budget committee members from both chambers develop a consensus agreement called a conference report that is typically adopted in April/May.

The two chambers arrive at a concurrent budget resolution, which is not formally a law and does not require the president’s signature. However, the House and Senate have enforcement procedures to ensure directives are met. The budget resolution sets in motion legislation that, when enacted, has the force of law.

Appropriations bills cover the discretionary portion of the budget and don’t affect mandated benefit programs such as Social Security and Medicare. Two or more of the appropriations measures can be lumped into a single omnibus appropriations bill. All of the bills must be signed by the president to become law.

If all 13 appropriations bills aren’t signed by Oct. 1, the start of the new fiscal year, Congress may pass a continuing resolution to fill the gap. If Congress fails to pass the resolution or the president vetoes it, nonessential activities in government are shut down until appropriations for them are enacted.

Continuing Resolution/Continuing Appropriations (CRA)

• Definition: Legislation in the form of a joint resolution enacted by Congress, when the new fiscal year is about to begin or has begun, to provide budget authority for Federal agencies and programs to continue in operation until the regular appropriations acts are enacted*

• Provides “stopgap” funding authority when appropriations not signed into law by start of fiscal year (FY) – precludes anti-deficiency violations

• Initiation of “new starts” & rates of obligation usually limited; permits current rate of operations at appropriation level based on either:

– Amount of activity appropriated in previous FY or– Lowest Congressional mark to date in the current process,

whichever is lower

• Special Interest (SI) items may have specific guidance

* http://www.senate.gov/reference/glossary_term/continuing_resolution.htm 28

Legislative Liaisons

• Department of Defense– ASD (LA): House & Senate Legislative Affairs– USD (C): Appropriation-related

• Department of the Army– Chief of Legislative Liaison: House & Senate Divisions– ASA FM&C Congressional Budget Liaison

• Department of the Navy– Chief of Legislative Affairs: House Liaison & Senate Liaison– ASN FM Appropriations Matters Office

• Department of the Air Force– Office of Legislative Liaison: House Liaison & Senate Liaison– ASAF FM Budget & Appropriation Liaison

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Websites – Congressional Enactment

Library of Congress “Thomas” www.thomas.gov/

Committee Web Sites:House Budget Committee www.budget.house.gov/

Senate Budget Committee www.budget.senate.gov/democratic/

House Armed Services Committee www.house.gov/hasc/

Senate Armed Services Committee www.armed-services.senate.gov/

House Appropriations Committee http://appropriations.house.gov/

Senate Appropriations Committee www.appropriations.senate.gov/

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http://www.thomas.gov/

http://www.budget.house.gov/

http://www.budget.senate.gov/democratic/

http://www.house.gov/hasc/

http://www.armed-services.senate.gov/

http://appropriations.house.gov/

http://www.appropriations.senate.gov/

Summary – Congressional Enactment

Best Practice: Clear, concise, and accurate budget exhibits

Techniques:– Keep Congressional staffers informed on program/budget

– Thoroughly prepare senior leaders for testimony on program

– Watch committee marks and appeal language and/or amounts

DAU Resources:– Acquisition Community Connection:

https://acc.dau.mil/fm– Continuous Learning Modules: http://clc.dau.mil

CLB 010 Congressional Enactment– Distance Learning Courses: http://www.dau.mil/

BCF 103 Fundamentals of Business Financial Management– Classroom Courses: http://www.dau.mil/

BCF 211 Acquisition Business Management 31

https://acc.dau.mil/fm

http://clc.dau.mil/

http://www.dau.mil/

http://www.dau.mil/

Lunch & Learn 5 April 2017 Greg Martin gregory.martin@dau › Lists › Events › Attachments ›...

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