Federal Budget Management Quiz

Legislative Process

• The Declaration of Independence was in 1776
• The Articles of Confederation was in 1781
• The principle of separation of powers was created to prevent tyranny
• The US Constitution was in 1789
• The Constitution is a set of general principles, which are used to create laws and codes
• The legislative process begins when a bill is introduced and ends with it being signed into law

Article I - Legislative Branch

• Congress has power to collect taxes, pay debts, and provide for the common defense
• Congress has power to borrow money
• Congress has power to regulate commerce with foreign nations, among the states, and with Native American tribes
• Congress has power to raise and support armies, navies, and a militia
• No money appropriation is for longer than two years

Congress

• Representatives serve districts and are required by the Constitution to initiate revenue bills, like tax increases.
• Any revenue bills, by tradition, are also initiated in the House of Representatives

Bills

• A bill is a legislative proposal, either public or private
• Public bills are the most common type
• Private bills affect specific individuals or groups
• Both public and private bills are numbered in the same sequence

Joint Resolutions

• Joint resolutions can originate in either the House of Representatives or the Senate
• Joint resolutions follow the same procedure as bills
• Joint resolutions are used to propose amendments to the Constitution

Concurrent Resolutions

• Concurrent resolutions deal with matters affecting both the House of Representatives and the Senate
• Concurrent resolutions are signed by the Clerk of the House and Secretary of the Senate

How a Bill Becomes a Law

• Public hearings are held where committee members hear witnesses
• A transcript of testimony is made available
• After hearings, a markup session is held where the committee studies viewpoints presented
• The committee votes to accept or reject amendments to the bill
• Proposed bills can be voted on at the subcommittee level and/or full committee level
• The proposed bill is then forwarded to the full committee

Presidential Action

• The president has 10 days to act on a bill.
• The president can approve or sign the bill into law
• The president can allow a bill to become law without signing it
• The president can veto a bill
• Congress is adjourned and the president does not return the bill within 10 days, this is a pocket veto

Key Legislation

• 1921 Budget and Accounting Act
• 1974 Congressional Budget and Impoundment Control Act.
• 1990 Chief Financial Officers (CFO) Act
• 1993 Government Performance and Results Act (GPRA)
• 2010 GPRA Modernization Act (GPRAMA)

Principles Of Appropriations Law

• Appropriations law begins with the Constitution
• Congress has passed additional statutes addressing the 3 key principles: Purpose, Time, Amount

Basic Principle - Principle of Purpose

• Funds can only be obligated and expended for the authorized purposes in appropriations acts or other laws

Principle of Time

• Time limits are placed on appropriations to align executive branch activities with the session that authorized the appropriations
• Obligations are only allowed during the designated time period

First Statutory Exception for Severable Services Contracts

• DoD has authority for severable services contracts up to 12 months and across fiscal years
• The obligation date determines the fiscal year

Second Statutory Exception: Multiyear Contracts

• The government can contract for supplies/services for more than one year, but not more than five program years

Anti-deficiency Act (ADA)

• It's a violation of the ADA to exceed authorized levels of obligation

Sequestration

• Automatic federal spending cuts
• The Balanced Budget and Emergency Deficit Control Act of 1985 created this

Budget Formulation Phase

• OMB issues guidance
• Organizations develop drafts
• Agencies submit estimates to OMB
• OMB holds hearings
• President makes final decisions on agency budgets
• President transmits budget to Congress

OMB Passback

• The results of the OMB review of the agency budget
• The letter is from the OMB director to the head of the agency
• The document is called the passback

Concurrent Budget Resolution

• A non-binding agreement between the two chambers of Congress
• Sets overall federal spending levels
• Guides the budget process for the next fiscal year