# Presentation: 723650

## NSF Budget Process

- <date/time>

**NSF Budget Process**

***MPS Advisory Committee***
***April 4, 2003***

**Notes:**
Welcome to workshop.

Appreciate your participation.

We are here today to explore concepts and models for partnerships that will help NSF develop the Partnerships for Innovation initiative.

Let me begin by giving you the context.

## Budget 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

**National Science Foundation**

## Budget Responsibilities

**National Science Foundation**

**Budget Responsibilities**

- PROGRAM 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 Income

**Spending America’s Income**
*Broad 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 billion**

- Customs 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)**

**$2.2**
**trillion**

## Slide 5

## 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 September**

**March**

**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.

- House
- votes on reconciliation.

- House
- votes on conference report.

-        House
- votes on reconciliation.

- Senate votes on 13 separate appropriations bills.

- Senate
- votes on conference report.

- Senate
- votes on reconciliation.

-      Senate
- votes 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 Budget

- Showing Fields of Science and Executive and Legislative Decision Units

- Engineering

- Psychology

- Fields of Science

- National

- 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

- Foreign
- Operations

- VA-HUD-Inde-
- pendent Agencies

- Interior

- Labor, Health & Human Services, & Education

- Transportation & Related Agencies

- House and Senate Appropriations Subcommittees

- Armed Services

- Labor and Human

- Resources

- Banking, Housing

- & Urban Affairs

- Foreign Relations

- Veterans Affairs

- Senate Authorization Committees

- National Security

- Economic & Educational Opportunities

- Banking & Financial Affairs

- International Relations

- Veterans Affairs

- Commerce

- Resources

-  Transportation & Infrastructure

- Science

- Agriculture

- House Authorization Committees

- (With significant R&D $)

- Judiciary

- Judiciary

- International Science, Engineering and Technology

- National Security

- Science

- Technology

- 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

## NSF 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 Cycle

- Oct, ‘02

- Nov

- Dec

- Jan,
- ‘03

- Feb

- Mar

- Apr

- May

- June

- July

- Aug

- Sep

- Oct,
- ‘03

**NSB Activities**

**NSF Activities**

- Complete FY 2004
- Budget

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

- Scenario Planning
- for FY 2005

- Develop FY
- 2005 Budget

- Submit FY 2005
- Budget to OMB

- Planning Environment

- Issues Analysis; Guidance on Establishing Priorities

- Principles Governing
- FY 2005 Budget

- NSB Attention to
- FY 2005 Budget

- Approve FY 2005
- Budget

## Budget and Planning Cycle

**Prepare OMB Request**

**OMB**

**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 2004**

**FY 2005**

**FY 2003**

***Establish Operating Plans***

**Operating Plans**

**Implement Programs**

## Key Budget Planning Tasks

## Input to Planning Process

## Assessment/Accountability

- GPRA 1993: Congress (law)
- PMC/PMA 2000: President/OMB
- PART 2001: OMB: Numerical Measurement
- R&D Criteria 2002: NAS/OSTP/OMB