NSF Budget ProcessNSF Budget Process

MPS Advisory CommitteeMPS Advisory CommitteeApril 4, 2003April 4, 2003

Budget MissionBudget Mission

To provide the process by which quality analysis results in:

(1) budget justifications that represent and communicate the mission and goals of the Foundation

(2) budget implementation that reflects the intent of the Foundation, the Administration, and Congress

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Nat

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nBudget Budget

ResponsibilitiesResponsibilitiesPROGRAM ANALYSIS

Budget Formulation for Science Directorates

Special Analyses & Charts Congressional Testimony,

Briefing Materials, Qs&As Clearance of Program

Announcements & other documents

GPRA

BUDGET OPERATIONS AND SYSTEMS

Budget Formulation for Administrative Offices

Budget Tracking & Execution

Special Analyses & Charts Enterprise Information

System/Budget Internet Information System

Technical Budget Materials & OMB Data Entry

Spending America’s IncomeBroad revenue and spending categories in President Bush’s fiscal 2004 budget:

Where it comes from (receipts)$1.9 trillion

How it would be spent (outlays)$2.2 trillion

Individual income tax:$850 billion

Corporate income tax:$169 billion

Payroll tax:$765 billion

Excise tax: $71 billion

Estate and gift tax: $23 billionCustoms duties: $21 billion

Other: $39 billion

$493 billion: Social Security

$429 billion: Discretionary

(non-defense)

$390 billion: National defense(discretionary)

$255 billion: Medicare

$176 billion: Interest on debt

$185 billion: Medicaid

$301 billion: Other

Deficit: $307-$322 billion(with adjustment for revenue uncertainty)

$2.2trillion

President's Request for Discretionary Budget Authority of Selected Appropriations Subcommittees -- FY 2004

Other1

Homeland Security$12.9B

Veteran's Affairs, HUD & Independent Agencies

$93.5B

Treasury & General Government

$18.7B

Transportation & Related Agencies$19.7B

Labor, HHS & Education$131.2B

Interior & Related Agencies$19.5B

Foreign Operations$16.1B

Energy & Water Development

$25.3B

Commerce, Justice, State, & the Judiciary

$41.2B

Agriculture & Rural Development

$17.2B

1 "Other" includes District of Columbia, Legislative, and Military Construction. Total Excludes Defense and Allowances.

The Long 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.

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.

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.

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.

February June through SeptemberMarch April May

House Budget

Committee formulates

budget resolution

Senate Budget

Committee formulates

budget resolution

Budget conference committee reports out

the concurrent resolution

of the budget.

House floor votes

Senate floor votes

House votes on 13 separate appropriations

bills.

Housevotes on

reconciliation.

Housevotes on

conference report.

Housevotes on

reconciliation.

Senate votes on 13 separate appropriations

bills.Senate

votes 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

Committees reports spending

measures to comply with

budget resolution.

Senate Appropriations

Committees reports spending

measures to comply with

budget resolution.

House authorizing committees

recommendations submitted to

Budget Committee.

13 conference committees

Senate authorizing committees

recommendations submitted to

Budget Committee.

Budget reconciliation

conference committees.

President signs or vetoes

appropriations bills.

President signs or vetoes

appropriations bills.

House floor votes

Senate floor votes

President submits

his budget

proposal to

Congress.

Defense

Energy

Agriculture

Transportation

Education

Justice

Housing &Urban Development

EPA

NRC

NSF

Veterans Affairs

Labor

NASA

Departments & Agencies

Development of the Federal R&D BudgetShowing Fields of Science and Executive and Legislative Decision Units

Engineering

PhysicalSciences

EnvironmentalSciences

LifeSciences

Psychology

SocialSciences

OtherSciences

Fields of Science

National

Defense

Affairs

International

Energy

Agriculture

Transportation

Health

Budget Review Offices (OMB)

House & Senate Budget Committees (Budget Functions)

Agriculture & Related Agencies

Commerce, Justice, State,

Judiciary

Energy and Water

Development

ForeignOperations

VA-HUD-Inde-pendent Agencies

Interior

Labor, Health & Human Services, &

Education

Transportation & Related Agencies

Defense

House and Senate

Appropriations Subcommittees

Armed Services

Labor and Human

Resources

Banking, Housing

& Urban Affairs

Foreign Relations

Veterans Affairs

Senate Authorization Committees

Energy & Natural

Resources

Environment &

Public Works

Commerce, Science,& Transportation

National Security

Economic & Educational

Opportunities

Banking & Financial Affairs

International Relations

Veterans Affairs

Commerce

Resources

Transportation & Infrastructure

Science

AgricultureAgriculture,

Nutrition, & Forestry

House Authorization Committees

(With significant R&D $)

Judiciary Judiciary

International Science,

Engineering and Technology

International Science,

Engineering and Technology

National SecurityNational Security

ScienceScience

TechnologyTechnology

Math & Computer Science

Agency for International Development

Commerce

Health & Human Services

Interior

National Security &

International Affairs

Natural Resources, Energy, and

Science

Economics & Government

Human Resources,

Veterans, and Labor

General Science, Space & Technology

Natural Resources & Environment

Commerce & Housing Credit

Community & Regional Development

Education, Training, Employment, & Social

Services

Veterans Benefits & Services

Administration of Justice

National Science and Technology

Council Research Committees

Connecting lines indicate location of agency budget decisions, but not decision sequences.

Environment and Natural

Resources

Environment and Natural

Resources

NSF BUDGET YEARNSF BUDGET YEAR

February 2003: Budget to Congress (04)

March/April - Hearings (04)

March - June Planning (05) (OMB/OSTP Guidance)

May NSB: Budget Discussion (05)

May –July: Budget Calls / AD Retreat / PARTs (05)

June – AC/GPA (03)

August NSB: OMB Budget Approved (05)

September - OMB Submission (05) / Close Out (03)

October - Current Plan (04) / OMB Hearings (05)

Thanksgiving – OMB Passback (05)

December - Appeal/Finalize (05)

February 2004: Budget to Congress (05)

NSF Budget and Planning NSF Budget and Planning CycleCycle

Oct, ‘02

Nov Dec Jan,‘03

Feb Mar Apr May June July Aug Sep Oct,‘03

NSB Activities

NSF Activities

Complete FY 2004Budget

Director’s Policy Group Retreat;Major Research Equipment Review; Examining Priorities

Scenario Planningfor FY 2005

Develop FY 2005 Budget

Submit FY 2005Budget to OMB

Planning EnvironmentIssues Analysis; Guidance on Establishing Priorities

Principles GoverningFY 2005 Budget

NSB Attention to FY 2005 Budget

Approve FY 2005Budget

Budget and Planning Budget and Planning CycleCycle

Oct‘03

Nov Dec Jan‘04

Feb Mar Apr May June July Aug Sep Oct‘04

Prepare OMB Request OMB

Oct‘02

Nov Dec Jan‘03

Feb Mar Apr May June July Aug Sep Oct‘03

OMB Review Prepare Budget Congressional Hearings / Budget Resolution / Bill

Long Range Planning

Establish Operating Plans

Review Prepare Budget Congressional Hearings / Resolution / Bill OP Plan

FY 2004FY 2004 FY 2005FY 2005FY 2003FY 2003

Establish Operating Plans Operating Plans Implement Programs

Key Budget Planning Key Budget Planning TasksTasks

GetInformation

ProcessInformation

CommunicateInformation

Keep informed

Identify opportunities

Assess performance

Obtain policy guidance

Develop options

Build scenarios

Establish priorities

Make decisions

Prepare request

Justify request

Build consensus

and support

Input to Planning Input to Planning ProcessProcess

Internal External Needs/Opportunities Directorates

Priority Area Working Groups Staff Meetings & Retreats Program Annual Reports

Advisory Committees Workshops/Studies/Reports Proposals/Visits/Meetings Other Agencies

Strategic Direction and Policy

NSB SMIG/ADs Strategic Plan

OMB OSTP/NSTC Congress

Performance Evaluation

GPRA Documents Annual Reports Evaluations and Assessments

COVs Advisory Committees Indicators/Benchmarking

Assessment/Assessment/AccountabilityAccountability

GPRA 1993: Congress (law) PMC/PMA 2000: President/OMB PART 2001: OMB: Numerical

Measurement R&D Criteria 2002: NAS/OSTP/OMB