Budget 101 WorkshopBudget 101 Workshop

Committee for Education FundingCommittee for Education FundingApril 29, 2011April 29, 2011

Stephanie GieseckeStephanie GieseckeNAICU NAICU

CEF BasicsCEF Basics

Founded in 1969 to achieve adequate Founded in 1969 to achieve adequate federal funding for education systemfederal funding for education system

Over 80 member organizations Over 80 member organizations representing PreK through post-graduaterepresenting PreK through post-graduate

Focus on Congressional Budget and Focus on Congressional Budget and Appropriations ActionAppropriations Action

Oppose cutting one education program to Oppose cutting one education program to pay for anotherpay for another

What is a Budget?What is a Budget?

Practical documentPractical document

Political documentPolitical document

Part of Checks and BalancesPart of Checks and Balances

Congress has the Power of the PurseCongress has the Power of the Purse

Basic Budget TermsBasic Budget Terms

Authorization v. AppropriationAuthorization v. Appropriation Budget Authority (BA) v. Outlays (OL)Budget Authority (BA) v. Outlays (OL) Discretionary v. MandatoryDiscretionary v. Mandatory Fiscal Year v. Award YearFiscal Year v. Award Year Forward FundedForward Funded Advanced AppropriationsAdvanced Appropriations Scoring (CBO v. OMB)Scoring (CBO v. OMB) Deficit v. DebtDeficit v. Debt

Administration Budget ProcessAdministration Budget Process

3 Phases of Agency Process:3 Phases of Agency Process: FormulationFormulation Presentation to CongressPresentation to Congress ExecutionExecution

2.5 year period; 2-3 FYs2.5 year period; 2-3 FYs

ED Budget Service working on FY 2013 ED Budget Service working on FY 2013 NOWNOW

ED FY 2013 Process BasicsED FY 2013 Process Basics

Spring 2011 – Start FY 2013 RecommendationsSpring 2011 – Start FY 2013 Recommendations Summer 2011 – FY 2012 Mid-Session ReviewSummer 2011 – FY 2012 Mid-Session Review Fall 2011 – FY 2013 Request to OMB/PassbackFall 2011 – FY 2013 Request to OMB/Passback Fall 2011 – FY 2012 Congressional ActionFall 2011 – FY 2012 Congressional Action Fall 2011 – Certify FY 2011 ActualsFall 2011 – Certify FY 2011 Actuals December 2011 – Prepare President’s FY 2013 December 2011 – Prepare President’s FY 2013

Budget SubmissionBudget Submission

Congressional Budget and Congressional Budget and Appropriations ProcessAppropriations Process

Rules were made to be brokenRules were made to be broken Not just a process, but a lobbying planNot just a process, but a lobbying plan Two Parts of the Process:Two Parts of the Process:

Congressional Budget ResolutionCongressional Budget Resolution Annual Appropriations BillsAnnual Appropriations Bills

Two areas CEF focuses on:Two areas CEF focuses on: Function 500 (Budget Resolution)Function 500 (Budget Resolution) Labor-HHS-Education Appropriations Labor-HHS-Education Appropriations

SubcommitteeSubcommittee

Congressional Budget ResolutionCongressional Budget Resolution

Does 3 important things:Does 3 important things:1) Sets spending and revenue totals 1) Sets spending and revenue totals

• Function 500: Education, Training and Social Function 500: Education, Training and Social Services Services

• Function 550 : HealthFunction 550 : Health• 302 (a) sent to Appropriations Committee302 (a) sent to Appropriations Committee

302 (b) Labor-HHS-Education Subcommittee allocation302 (b) Labor-HHS-Education Subcommittee allocation

2) Sets deficit reduction targets2) Sets deficit reduction targets

3) Provides reconciliation instructions3) Provides reconciliation instructions

FebruaryMarch

March

April 15

May 15

Spring

Summer

Summer

Fall

September 30

Reconciliation Process Deadlines in Budget Resolution

Image Source: Senate Budget Committee Website

Questions about Budget Questions about Budget and Appropriations and Appropriations

Process?Process?

History of the Federal BudgetHistory of the Federal Budget

Control government spendingControl government spending

Create a ProcessCreate a Process 1870 Anti-Deficiency Act1870 Anti-Deficiency Act 1974 Budget Impoundment and Control 1974 Budget Impoundment and Control

ActAct 1985, 1987 Gramm-Rudman-Hollings1985, 1987 Gramm-Rudman-Hollings 1990 Budget Enforcement Act expired 1990 Budget Enforcement Act expired

20022002

Process Reform 2011Process Reform 2011

New House RulesNew House Rules Cut-as-you-goCut-as-you-go Strikes Gephardt RuleStrikes Gephardt Rule Reconciliation cannot be used for “spending”Reconciliation cannot be used for “spending” Published and “deemed” spending totals for Published and “deemed” spending totals for

FY 2011FY 2011 Exempts tax cuts and repeal of HC from Exempts tax cuts and repeal of HC from

PAYGO scorecardPAYGO scorecard Requires “spending reduction account” in Requires “spending reduction account” in

approps billsapprops bills

Process Reform 2011Process Reform 2011

Balanced Budget Amendment proposalsBalanced Budget Amendment proposals Bipartisan Fiscal CommissionsBipartisan Fiscal Commissions Debt Ceiling bill will carry cutsDebt Ceiling bill will carry cuts Global CapsGlobal Caps

Focus on Discretionary SpendingFocus on Discretionary Spending

Big Picture: Big Picture: President’s FY 2012 OutlaysPresident’s FY 2012 Outlays

$ 0.242 T 7%

$1.34 T36%

$ 2.14 T 57%

Discretionary

Mandatory

Interest

$3.7 Trillion in Total Spending

Big Picture: SlicedBig Picture: Sliced(FY 2012 Budget Request, in Billions)(FY 2012 Budget Request, in Billions)

761, 21%

242, 6%

612, 16%

269, 7%

485, 13%

884, 25%

456, 12%

Security

Non-Security

Social Security

Medicare

Medicaid

Other

TARP

Interest

Disaster

Big Picture: Diced Big Picture: Diced (FY 2012 Budget Request, in Billions)(FY 2012 Budget Request, in Billions)

$77.4 2%

SecurityNon-SecuritySocial Security

MedicareMedicaidOtherTARPInterest

DisasterEducation

What’s at Stake?What’s at Stake?