The President’s Budget: Overview of Structure and Timing of Submission to Congress
Released: 2016-02-09T00:00:00

Introduction

The Budget and Accounting Act of 1921 (P.L. 67-13; 42 Stat. 20), as amended and later codified in the U.S. Code , requires the President to submit a consolidated federal budget annually to Congress toward the beginning of each regular session. Under Title 31 of the U.S. Code , the President must submit the budget—which contains budgetary estimates, proposals, and other required reports—to Congress on or after the first Monday in January, but no later than the first Monday in February.

In addition to providing budgetary estimates and other required reports, the President's budget is a compilation of the President's proposed spending levels and selected policy recommendations. Congress is not required to adopt the President's proposals or recommendations. Nevertheless, the budget is one of the President's most important policy tools. While it is not legally binding, the President's budget typically initiates the congressional budget process and informs Congress of the President's recommended spending levels for agencies and programs. For this reason, the content and timing of the President's budget submission may be of particular interest to Members of Congress, congressional committees, and congressional staff.

This report begins with a brief overview of the origins and typical content of the President's budget. This report also provides information on the statutory deadlines for submission to Congress and the submission dates of the President's budget for FY1923-FY2017. The President's consolidated, annual budget submission to Congress, or the Budget of the United States Government as it is referred to in statute, is referred to in this report as "the President's budget."

Origins and Predecessors of the President's Budget

Prior to the enactment of the Budget and Accounting Act of 1921, the executive budget process was highly decentralized. Until the mid-to-late 1800s, agencies typically submitted their budget requests directly to Congress, frequently with little or no involvement by the President. In subsequent years, individual agency requests were compiled by the Department of the Treasury and submitted to Congress as the Book of Estimates .

While the Book of Estimates may have served as an efficient means of transmitting multiple budget requests to Congress as a single package, it was not a consolidated federal budget. Initially, the compilation and submission of the "Book of Estimates" was a matter of custom and practice by some, but not all, agencies within the executive branch. Agencies were not required to submit their budget requests to the Treasury, and many continued to submit their requests directly to Congress.

In the late 19 th and early 20 th centuries, a series of laws were enacted that prohibited agencies from submitting their budget requests directly to Congress. For example, in 1884 a law was enacted that required that "all estimates of appropriations ... shall be transmitted to Congress through the Secretary of the Treasury, and in no other manner." In 1901, a law was enacted that required executive departments to submit their requests to the Secretary of the Treasury "on or before the 15 th of October of each year." Under the 1901 act, the Secretary of the Treasury was then required to compile all agency requests and submit them as part of the "Book of Estimates" no later than the first day of November. While these acts required the Secretary to transmit all agency requests as a single package, each request was developed independently. Involvement and direction by the President were minimal, and there was little if any coordination amongst agencies.

In 1910, President William H. Taft created the Commission on Economy and Efficiency. One of the primary purposes of the commission was to develop and propose reforms to the executive budget process. The current structure, format, and content of the President's budget submission are similar to those that were proposed by the Taft Commission on Economy and Efficiency in 1912. In a report titled The Need for a National Budget , the commission recommended that the President submit to Congress a consolidated budget consisting in part of (1) a budget message, (2) a consolidated financial report containing revenues and expenditures for each executive department for the previous five fiscal years, (3) the President's proposed revenues and expenditures for the next fiscal year, and (4) detailed information supporting the President's recommendations.

Since 1921, the required contents of the President's budget have been modified and expanded by statutes such as the Budget and Accounting Procedures Act of 1950 and the Congressional Budget and Impoundment Control Act of 1974. The current requirements are discussed in the next section of this report.

Content of the President's Budget

The President's budget typically provides detailed estimates of the financial operations of federal agencies and programs, the President's budgetary and legislative recommendations, and other information supporting the President's recommendations.

Under Title 31 of the U.S. Code , the President's budget must include, in part,

estimated receipts, expenditures, and proposed appropriations for the next five fiscal years; actual receipts, expenditures, and appropriations for the previous fiscal year; information on the public debt; separate statements of amounts for specified appropriations accounts and trust funds; and when practicable, information on costs and performance of federal programs and activities.

The President is responsible for developing budgetary estimates and proposed appropriations for executive branch agencies. In practice, the President has delegated many of the tasks and authorities necessary for developing the budget to the Office of Management and Budget (OMB). For example, OMB issues guidance to executive agencies instructing them on the process, format, and deadlines for submitting their budget requests to OMB. OMB officials are also responsible for reviewing agencies' budget requests to ensure that they are consistent with the President's policy objectives, and advising the President on recommended budgetary levels.

The President's budget must also contain budgetary estimates and proposals for the legislative and judicial branches. These estimates and proposals are developed by the legislative and judicial branches, and are then transmitted to the President and submitted, without change, as part of the President's budget submission. Similar procedures apply to select independent agencies and government-sponsored enterprises (e.g., U.S. International Trade Commission, Board of Governors of the Federal Reserve System, and Federal National Mortgage Association). Additionally, certain agencies (e.g., Defense Nuclear Facilities Safety Board, Securities and Exchange Commission, and National Transportation Safety Board) are required by statute to submit their budget proposals directly to Congress, without review or alteration by the President or OMB. In some cases, the agency submits its budget only to Congress, while in other cases the agency must submit its budget to OMB and Congress concurrently.

There are a number of reports that are required to be submitted along with, or at the same time as, the President's budget. For example, the President is required to submit an annual federal government performance plan for the overall budget.

Structure and Components of Recent Budget Submissions

The structure and format of the President's budget have varied by President, but in recent years, the President's budget has been submitted in multiple volumes. The size and composition of these budget volumes have varied from administration to administration. The budget submissions of the past three Presidents have each included the following volumes: Budget of the U.S. Government , Historical Tables , Analytical Perspectives , and Appendix . In addition, recent submissions have been accompanied by supplemental materials and supporting documents that are typically made available only in electronic form.

Budget of the U.S. Government. 26 The Budget of the U.S. Government volume typically begins with a short budget message, addressed to Congress, which summarizes the President's policy priorities. The Budget volume also includes summary tables of budgetary aggregates and estimates of the effects of the President's proposals on the deficit, among others. The summary tables typically provide information for each of the fiscal years covered by the President's budget. The summary tables in the FY2017 Budget volume, for example, cover FY2015 through FY2026.

In addition, the Budget volume includes detailed narrative descriptions of proposed government activities and programs. In previous years, the Budget volume was organized by executive department (e.g., Department of Agriculture) and also contained information on selected independent agencies (e.g., Environmental Protection Agency). Beginning in FY2016, however, the Department-specific information was replaced with extended discussions of policy issues. In FY2017, the Budget volume discusses several national security issues, which it terms "today's challenges" (e.g., destroying ISIL, strengthening federal cybersecurity). In addition, the Budget volume discusses several longer-term policy challenges (e.g., climate change, education, transportation, infrastructure) and related initiatives that the President has proposed to potentially address those issues. As with his previous budget submissions, President Obama's budget submission for FY2017 also outlines a set of proposed "Cuts, Consolidations, and Savings."

Historical Tables. 30 The Historical Tables volume provides a historical overview of federal government finances, including time series statistics on budget authority, government receipts, outlays, government employment, economic statistics, and the federal debt going back several decades and in some cases as far back as 1789. Generally, the tables provide data through the fiscal year covered by the President's budget. According to OMB, to the extent possible, the data provided in the historical tables are adjusted to provide consistency and comparability over the period of time covered. Analytical Perspectives. 34 Since FY1995, the President's budget submission has included an Analytical Perspectives volume, which contains in-depth analysis of government programs, including credit and insurance programs, discussion of crosscut budgets (i.e., budgets that span two or more agencies), and technical explanation of the budget baseline used in the analyses and estimates contained in the President's budget, among other items. In recent years, this volume has also included a "Budget Concepts" chapter, which provides an overview of the budget process and a "Glossary of Budget Terms" that are used in the President's budget.

Additionally, many of the reports that are required to be submitted along with, at the same time as, or near the same time as, the President's budget are provided within the Analytical Perspectives volume. For example, chapter 21 of the Analytical Perspectives volume includes a report on the costs and budgetary effects of the Treasury's Troubled Asset Relief Program (TARP).

The web-based version of the FY2017 Analytical Perspectives volume contains supplemental information and spreadsheets of selected tables. Included in the web-based version are tables that provide data on budget authority and outlays (i.e., payments to liquidate obligations and a common measure of government "spending)." Of these tables, one provides information on budget authority and outlays organized by budget function, category, and program. Another provides the same information by agency and appropriations or fund account, in a structure similar to the organization of annual appropriations acts.

Appendix. 42 The Appendix volume includes detailed budget estimates and financial information for each appropriations account and for selected programs, listed by appropriations account. This includes the proposed text of appropriations language, and explanations of the work that will be performed by the funds provided. The Appendix volume also includes recommended language for the general provisions applicable to the appropriations of entire agencies or groups of agencies, such as proposed restrictions on the use of funds and proposed authorities to transfer funds from one account to another. Supplemental Materials. 44 Additionally, Presidents' budget submissions have often included supplemental materials, such as legislative proposals for budget process reform, a brief guide to the budget that is intended for members of the public, or a summary of proposed spending reductions or program consolidations. Finally, unforeseen circumstances may require the President to modify the recommendations or other information contained in the President's budget submission to Congress. Under Title 31 of the U.S. Code , the President may revise the budget recommendations or submit supplemental budget requests to Congress at any time during the year. When the President makes new budget recommendations for the current fiscal year, the changes are referred to as "supplementals." Changes to the President's proposals for the upcoming fiscal year, however, are referred to as "amendments."

Timing of Submission of the President's Budget

Under the Budget and Accounting Act of 1921, the deadline for submission was originally set as "the first day of each regular session" of Congress. The deadline was subsequently changed by statute in 1950, 1985, and 1990. The Budget and Accounting Procedures Act of 1950 changed the deadline to the 15 th day of each regular session of Congress. The Balanced Budget and Emergency Deficit Control Act of 1985 included two changes to the deadline for submission. The first established a deadline of February 5, 1986, for FY1987. The second changed the deadline to the first Monday after January 3 beginning with FY1988. Finally, the Budget Enforcement Act of 1990 extended the deadline to the first Monday in February of each year.

The 1990 change to the deadline for submission, which first applied to FY1992, made it possible for an outgoing President, whose term ends on January 20, to leave the annual budget submission to his or her successor. The three outgoing Presidents since the FY1992 change—George H. W. Bush, William J. Clinton, and George W. Bush—exercised this option. Accordingly, the budget was submitted in 1993, 2001, and 2009 by the three incoming Presidents (William J. Clinton for FY1994, George W. Bush for FY2002, and Barack Obama for FY2010). In each of these three cases, the first budget submission of the incoming President was submitted after the statutory deadline.

Under current law, the President is required to submit the annual budget on or after the first Monday in January, but no later than the first Monday in February. Prior to the official transmittal of his budget to Congress, the President typically presents the major budget proposals in the annual State of the Union address, usually in late January.

Table 1 provides a list of the deadlines for submission, the first fiscal year to which each deadline applied, and the statutory source for each deadline.

Timely Submission of the President's Budget

In the 95 years since the President was required to submit a consolidated budget to Congress, the budget was submitted on or before the original statutory deadline on 76 occasions. On 54 of these occasions, the budget was submitted on the deadline. On the remaining 22 occasions, the President's budget was submitted early, between 1 and 13 days before the deadline.

Delayed Submission of the President's Budget

The President's budget has been submitted after the statutory deadline on 19 occasions. In 6 of these 19 occasions, Congress extended the deadline by statute. On average, the deadline was extended by 13 days. In all but one of these occasions, the President's budget was submitted by the extended deadline. In the 14 instances when the budget was submitted after the original or extended deadline, it was delayed, on average, 31.71 days.

The President's budget submission was delayed more than 30 days after the deadline on six occasions: FY1989, FY1994, FY1997, FY2002, FY2010, and FY2014. The delays for FY1994, FY2002, and FY2010 occurred in presidential transition years. In those three instances, the budget submission was due fewer than three weeks after the start of the President's first term.

The President's budget was delayed by more than 30 days during three non-transition years: FY1989, FY1997, and FY2014. President Reagan submitted the FY1989 budget on February 18, 1988, a total of 45 days after the statutory deadline. The Director of OMB reportedly attributed the delay to the delayed enactment of FY1988 appropriations. President Clinton submitted the FY1997 budget on March 19, 1996, a total of 43 days after the deadline. On February 5, 1996, President Clinton transmitted a message to Congress, along with a thematic overview of his FY1997 budget, which stated that the budget would be delayed because of "uncertainty over 1996 appropriations as well as possible changes in mandatory programs and tax policy." President Obama submitted the FY2014 budget on April 10, 2013, a total of 65 days after the deadline. The Acting Director of OMB attributed the delay to ongoing negotiations over fiscal issues, including enactment of the American Taxpayer Relief Act (ATRA) on January 2, 2013, and the continued uncertainty resulting from the impending sequestration.

Figure 1 shows the number of days the budget was submitted before or after the deadline for each year from FY1923 to the present. The figure includes all transition-year budgets since the 1990 change to the budget submission date (i.e., FY1994, FY2002, and FY2010). During a transition year, the incoming President is required to submit a budget shortly after his or her inauguration. In the figure, transition-year budgets are shown in textured red.