Budget 101 Workshop

1. Budget 101 Workshop Committee for Education Funding April 29, 2011 Stephanie Giesecke NAICU

2. CEF Basics • Founded in 1969 to achieve adequate federal funding for education system • Over 80 member organizations representing PreK through post-graduate • Focus on Congressional Budget and Appropriations Action • Oppose cutting one education program to pay for another

3. What is a Budget? • Practical document • Political document • Part of Checks and Balances • Congress has the Power of the Purse

4. Basic Budget Terms • Authorization v. Appropriation • Budget Authority (BA) v. Outlays (OL) • Discretionary v. Mandatory • Fiscal Year v. Award Year • Forward Funded • Advanced Appropriations • Scoring (CBO v. OMB) • Deficit v. Debt

5. Administration Budget Process • 3 Phases of Agency Process: • Formulation • Presentation to Congress • Execution • 2.5 year period; 2-3 FYs • ED Budget Service working on FY 2013 NOW

6. ED FY 2013 Process Basics • Spring 2011 – Start FY 2013 Recommendations • Summer 2011 – FY 2012 Mid-Session Review • Fall 2011 – FY 2013 Request to OMB/Passback • Fall 2011 – FY 2012 Congressional Action • Fall 2011 – Certify FY 2011 Actuals • December 2011 – Prepare President’s FY 2013 Budget Submission

7. Congressional Budget and Appropriations Process • Rules were made to be broken • Not just a process, but a lobbying plan • Two Parts of the Process: • Congressional Budget Resolution • Annual Appropriations Bills • Two areas CEF focuses on: • Function 500 (Budget Resolution) • Labor-HHS-Education Appropriations Subcommittee

8. Congressional Budget Resolution • Does 3 important things: 1) Sets spending and revenue totals • Function 500: Education, Training and Social Services • Function 550 : Health • 302 (a) sent to Appropriations Committee • 302 (b) Labor-HHS-Education Subcommittee allocation 2) Sets deficit reduction targets 3) Provides reconciliation instructions

9. February March March May 15 Spring Summer Reconciliation Process Deadlines in Budget Resolution April 15 Summer Fall September 30 Image Source: Senate Budget Committee Website

10. Questions about Budget and Appropriations Process?

11. History of the Federal Budget Control government spending Create a Process • 1870 Anti-Deficiency Act • 1974 Budget Impoundment and Control Act • 1985, 1987 Gramm-Rudman-Hollings • 1990 Budget Enforcement Act expired 2002

12. Process Reform 2011 • New House Rules • Cut-as-you-go • Strikes Gephardt Rule • Reconciliation cannot be used for “spending” • Published and “deemed” spending totals for FY 2011 • Exempts tax cuts and repeal of HC from PAYGO scorecard • Requires “spending reduction account” in approps bills

13. Process Reform 2011 • Balanced Budget Amendment proposals • Bipartisan Fiscal Commissions • Debt Ceiling bill will carry cuts • Global Caps • Focus on Discretionary Spending

14. Big Picture: President’s FY 2012 Outlays $3.7 Trillion in Total Spending

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

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

17. What’s at Stake?