The Federal Budget Outlook and NSF

Presented byBeth Blue

National Science FoundationOffice of Budget, Finance, and Award Management

Budget Division/Program Analysis Branch

CAREER Awardee MeetingMPS Division of Materials Research

June 17, 2013

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Today’s Topics

• NSF Budget and Planning• The Federal Budget Process• The Outlook for FY 2014 and Beyond

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What is the Budget andWhy is it Important?

• The President’s Budget (“the Request”) is a statement of Administration policy and the resources needed to achieve it.

• The Request is made to Congress annually.• Priorities must be weighed and choices

made.

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The Players• Administration…proposes

o Office of Management & Budget (OMB) o Office of Science & Technology Policy (OSTP) o Federal agencies such as NSF

• Congress…disposes• The American Public• NSF constituent communities

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Formulate

Execute

Evaluate

Plan

NSF Budget and Planning

Budget Request to Congress

PerformanceReports

Overview of Budget Process

NSF Budget & Planning Timeline

Dec 13 Jan 14 Feb 14 Mar 14Aug 13 Sep 13 Oct 13 Nov 13Apr 13 Jun 13 Jul 13

Budget Formulation Budget Execution External Milestones Internal Milestones

Timing of internal deadlines and appropriations fluctuates from year-to-year

FY13Budget Cycle

FY14Budget Cycle

FY15Budget Cycle

Commit, Obligate, Spend

Receive FY14 Appropriation?

Commit, Obligate, Spend

Receive FY15 OMB “Passback”

FY15 Budget Hearings

NSF Budget Retreat

NSB Meeting - Planning

Develop and submit FY15 Budget to

Congress

Develop FY14 Interim Op Plan

FY15 Discussions with OMB

Develop/Submit FY15 Budget to OMB

NSB Meeting to review and

approve budget

Submit FY15 Budget to OMB

Submit FY15 Budget to Congress

May 13

FY 2013 FY 2014

Congressional Action on FY 2014

Financial Audit

Publish FY13Agency Financial

Report

Planning/Set Long-Term Priorities

Develop / Submit Current

Plan

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Budget Formulation and Priority Setting at NSF

April-May

• OMB issues budget guidance memo - AVAILABLE ONLINE• Internal agency planning continues

June-July

• OMB and OSTP issue R&D guidance memo - AVAILABLE ONLINE• OMB issues A-11 - AVAILABLE ONLINE

July - Sep• NSF finalizes prioritization of research/education investments and

submits budget request to OMB

Sep - Dec

• OMB and NSF finalize priorities for the President’s Budget Request to Congress

Dec- Feb

• NSF prepares and issues President’s Budget Request to Congress- AVAILABLE ONLINE

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The Federal Budget Process

• First Monday in February: President’s Budget submitted to Congress.

• February-September: Congress deliberates and, we hope, passes an Appropriation funding NSF for the coming year NLT 9/30.

• October 1: New Fiscal Year Begins

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The President’s Budget Request

The President’s

Budget

Analytical Perspectives

Budget Appendix

Budget in Brief

After the “PresBud” is Delivered in February

• Press conference by the President, followed by briefings by OSTP, and at NSF, the NSF Director and NSF Assistant Directors.

• Hearings and questions for the record from the Hill.

• Briefings for interested communities.

Remember: The President proposes and Congress disposes!

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The New Normal: Appropriations DriftNSF Appropriations Date vs. Start of Federal Fiscal Year (Oct 1st)

1989199019911992199319941995199619971998199920002001200220032004200520062007200820092010201120122013

-80 -40 0 40 80 120 160 200 240

-4238

3427

527

-3205

-526

201926

55139

11267

89134

85160

76194

47176

DAYSOct. 1

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The Outlook for FY 2014 and Beyond

• The Deficit = receipts - outlays• The Debt Ceiling, a legal construct on

debt issued by Treasury.• The Budget Control Act of 2011

Social Security20%

Medicare13%

Interest on debt6%

Medicaid7%

Other17%

Discretionary Non-Security

12%

Discretionary Security

24%

Federal Outlays by Broad CategoryFY 2012 Request of $3.7 Trillion

The Budget Control Act of 2011

• “Sequestration” is one outcome of the Budget Control Act.

• Sequestration was implemented in FY 2013.• NSF Important Notice issued in February:

“Impact of FY 2013 Sequestration Order on NSF Awards” is available online.

• Sequestration is scheduled to continue in FY 2014.

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The Gap in FY 2014 and Beyond

FY 2013 Enacted

FY 2014 Request

FY 2015 Estimate

FY 2016 Estimate

FY 2017 Estimate

FY 2018 Estimate

21,000,000,000

23,000,000,000

25,000,000,000

27,000,000,000

29,000,000,000

31,000,000,000

33,000,000,000

35,000,000,000

General Science, Space, and Technology (Function 250) Funding Levels: FY 2013 - FY 2018

FY 14 Pres. BudgetSenate Resolution House Resolution

$ Millions

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Where Does NSF Fit?

A successful budget request will:

• Meet Administration Priorities and legislative mandates

• Consider external input• Provide a clear justification of

what is needed any. Make our case!• Outline NSF’s role vis-à-vis other science

agencies and partners.

• October 1st – Start of FY 2014.• November/December/January??

Full Year FY 2014 Appropriations passed...with or without sequestration.

• February 2nd FY 2015 President’s Budget Request to Congress.

What’s Next in the Appropriations Process

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Budget and Policy Links

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• M-13-14 Fiscal Year 2015 Budget Guidancewww.whitehouse.gov/sites/default/files/omb/memoranda/2013/m-13-14.pdf

• M-12-15, Science and Technology Priorities for FY 2014 Budget (FY 2015 guidance is pending)www.whitehouse.gov/sites/default/files/omb/memoranda/2012/m-12-15.pdf

• The President’s Budget for FY 2014 www.whitehouse.gov/omb/budget/

• NSF Budget Requests and Performance & Accountability Reports http://nsf.gov/about/performance/

• Important Notice: Impact of Sequestration Order on NSF Awardswww.nsf.gov/publications/pub_summ.jsp?ods_key=in133

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