National Press Foundation, September 11, 2017

Budget Process and Long-Term Trends

presented by
Robert L. Bixby, Executive Director

THE CONCORD COALITION
www.concordcoalition.org

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 Official Budget Process Deadlines
First Monday in February President submits a budget proposal to Congress
6 weeks after POTUS Congressional committees submit views and estimates to
budget Budget Committees
House and Senate Budget Committees report on
April 1 (Frequently, the House Budget Committee sets own date
concurrent budget resolutions
Congress adopts a concurrent budget resolution, which
April 15
does not need to be signed by the President
House may begin considering annual appropriations bills
May 15
even if the absence of a budget resolution
Appropriations Committees finish reporting on all
June 10
appropriations bills
Congress completes action on reconciliation legislation (if
June 15
instructed to do so by the budget resolution)
Congress completes action on annual appropriation bills
June 30
for upcoming fiscal year
October 1 New fiscal year begins
 History of Budget Resolutions
1975 1985 1995 2005 2015
1976 1986 1996 2006 2016
1977 1987 1997 2007
Passed on Time (6)
1978 1988 1998 2008
Passed Late (27)
1979 1989 1999 2009
No Budget Passed (9)
1980 1990 2000 2010
1981 1991 2001 2011
1982 1992 2002 2012
1983 1993 2003 2013
1984 1994 2004 2014
 Percentage of Appropriations Passed On Time

0%
25%
50%
75%
100%
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998

Calendar Year
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Appropriations Bills are Rarely Completed On Time

2014
2015
2016
2017
 Consequences of Failure

Failure to pass a budget resolution:

Congress cannot use reconciliation procedure to overcome filibuster in the Senate

Failure to pass appropriations bills by Oct 1:

Three Options:
Omnibus - Pass all or multiple appropriations bills in one big package
Continuing Resolution - Temporarily funds the government at previous years levels
Government Shutdown - All non-essential government operations cease

Failure to raise the debt limit:

Jeopardizes full faith and credit of the United States
Increases borrowing costs
Impedes market transactions that depend on Treasury bills
Payments to government employees, contractors, and beneficiaries may be delayed or reduced
Unprecedented and unpredictable damage to global economy
 Composition of Fiscal Year 2017 Federal Budget
Deficit: $693 Billion
$5,000

Estate & Gift Taxes

Interest $269
$3,750
Billions of Dollars

Other $589 $23

Mandatory $244 Other Taxes

Defense $615 $320 Corporate Taxes

$2,500
Domestic** $445
$1,164 Social Insurance
Taxes
Social $939
Security
$1,250

Major Individual
$1,651
Health Care $1,159 Income Taxes
Programs*
$0
Outlays: $4.01 trillion Revenues: $3.32 trillion
*Includes Medicare, Medicaid, CHIP, and exchanges subsidies spending net of offsetting receipts.
**Includes all appropriated domestic spending such as education, transportation, homeland security, housing assistance
and foreign aid.

Source: Congressional Budget Office, June 2017.

 Automatic Expenditures Are Consuming a Growing Share
of the Budget

1967 1992 2017 2027*

27% 30% 22%

40%
66% 45% 63% 13% 65%
7%
7%
15%

Mandatory Spending Net Interest Discretionary

Automatic

*Projected
Source: Congressional Budget Office, June 2017.