The Process - Introduction
A simplified list of steps in the process an agency follows to obtain funds follows. These steps are linked to pages where the actions are explained. A generic Federal "agency" is used to explain the steps and actions. (The term "agency" does not refer to a specific actual governmental agency unless so stated.) Fiscal year 2010 (FY 2010) is used to illustrate when actions can be expected. An exception to the general process that may take place as administrations change is explained at FY 2002 Process.
The pages linked to the process list provide information on what happens, why it happens, what the agency and operating components do, timing of actions, documents involved, and links to other sites.
Details of legal aspects of the process are not included. (Follow suggested LINKS for this information.) The process is ruled by legal requirements, but, at the end of the process, the legal details have little practical significance for an operating component of an agency when it comes to deciding what money is available and what it is spent on.
The steps are repeated each fiscal year. At any one time an agency is simultaneously engaged in one of the steps of the process for three or four fiscal years.
The listing identifies major traditional categories used to describe and define the budget process, budget formulation and budget execution, and adds one on oversight, an important element of Congressional responsibilities.
The sequence given below is chronological, with the earliest events listed first. If you want to view it from the perspective of someone (such as a line manager) attempting to understand what happened in the past to end up with the budget, click here to go to the end of the process and work backwards.
Key Steps
Key Step |
FY 2010 Example |
Description |
|---|---|---|
Budget Formulation Process: |
||
| GUIDANCE | June 2008 | OMB tells agency how to do strategic plan and budget request. Overall budget numbers are set. |
| STRATEGY | Spring - summer 2008 | Agency strategic plan development/update. Strategic plan sets framework for broad agency programs. |
| REQUEST | December 2007 - August 2008 | Operating components develop/submit budget request to agency. Actual programs and expenditures start to be planned. |
| DECISIONS | June - August 2008 | Agency develops strategy on how to deal with OMB. Agency has to decide what will sell and its ability to achieve it. |
| TO OMB | September 2008 | Agency sends budget request to OMB. Agency decisions are documented and price tags attached. |
| PASSBACK | November, December 2008 | OMB recommendations and Presidential decisions to agency. "This is what we can afford," states OMB. |
| APPEALS | After passback. | Agency works the system; may appeal decisions if they are not to the agency's liking. "This is what the President really wants," states the agency. |
| TO CONGRESS | February 2009 | The President's Budget request or Congressional submission is sent to Congress. The Executive Branch takes a stand, and asks for money. |
| HEARINGS | March/April 2009 | House and Senate hold hearings on President's request. Congress asks for additional information; agency prepares it. Congressional appropriators attempt to figure out what is behind President's numbers and words. |
| Q & As | February - June 2009 | Questions from members and staff and agency responses establish a record. |
| MARKUPS | March - October 2009 | House and Senate sub- and full committees discuss and act on the request, incorporating their views on what is worth funding. Agency works the system, attempting to influence outcomes. |
| VOTES | September 2009 | House and Senate debate and vote in floor action. |
| THE CR | September 2009 | Continuing Resolution, or stop-gap spending measure, used if time runs out. Otherwise, shutdown. |
| CONFERENCE | October 2009 | House and Senate meet to negotiate their differences. |
| ENACTED | October/November 2009 | Congress finally makes up its mind, and passes bill. President vetoes or signs bill. Appropriations Act is now law. All negotiations are over at the Presidential level, but operating levels still have room to negotiate. |
Budget Execution Process: |
||
| OP PLAN, expenditure plan | September 2009 | Agency does operating plan, or how it will spend appropriated money. The GPRA annual plan is refined. Changes in programs are made to fit resources made available in the appropriations act, as well as to accommodate expressed Congressional concerns. |
| ALLOCATE | October - December 2009 | Operating components get agency permission to use resources, and parcel them out to operating officials. |
| ACTION! | October 2009 and following years. | Goods and services are procured and delivered. |
| AUDITS | Anytime. | GAO and/or the IG may investigate anything related to resources. |
Congressional Oversight Process: |
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| OVERSIGHT | March/April 2011, and cumulatively every year until three years are covered. | Congressional committees request data, may hold hearings, take the only action they can: By September/October 2011, actions on the FY 2012 request let the agency and operating managers know how well they did, in the eyes of Congress, during FY 2010. |
Return to:
Introduction, The Actions and Steps, Budget Formulation Process or Budget Execution Process.