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Prentice Hall PoliticalScience Interactive. Thomas R. Dye Politics in America Special Topic Chapter 12 The Budgetary Process. The Budgetary Process. The Office of Management and Budget. Responsibilities of the OMB budget preparation

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prentice hall politicalscience interactive

Prentice HallPoliticalScienceInteractive

Thomas R. Dye

Politics in America

Special Topic

Chapter 12

The Budgetary Process

the office of management and budget
The Office of Management and Budget

Responsibilities of the OMB

  • budget preparation
  • Improving the organization and management of executive agencies
  • Coordinating the statistical services of the federal government
  • Analyzing and reviewing proposed legislation
the president s budget
The President’s Budget


The president and the OMB director prepare The Budget of the United States Government

Each budget is named for the fiscal year in which it ends

Late January

President presents Congress with the Budget for the fiscal year beginning October 1st

house and senate budget committees
House and Senate Budget Committees

The president’s budget is sent initially to the House and Senate Budget Committees, which rely on the Congressional Budget Office for review

Budget Resolution

Congressional bill setting forth target budget figures for appropriations to various government departments and agencies

the budgetary process6
The Budgetary Process


Act of Congress that establishes a government program and defines the amount of money it many spend

Continuing Resolution

Congressional bill that authorizes government agencies to keep spending money for a specified period at the same level as in the previous fiscal year; passed when Congress is unable to enact final appropriations measures by October 1

the budgetary process7
The Budgetary Process


Actual dollar amounts to be spent by the federal government in a fiscal year

Appropriations Act

Congressional bill that provides money for programs authorized by Congress

Obligational Authority

Feature of some appropriations acts by which an agency is empowered to enter into contracts that will require the government to make payments beyond the fiscal year in question

the budgetary process9
The Budgetary Process

The 2005 Budget showed total outlays of $2.4 trillion, with a deficit of nearly $365 billion

the budgetary process10
The Budgetary Process

Uncontrollable Spending

The portion of the federal budget that is spent on programs, such as Social Security, that the president and Congress are unwilling to cut

Entitlement Program

Programs such as unemployment insurance, disaster relief, or disability payments that provide benefits to all eligible citizens

the politics of budgeting
Incremental Budgeting

Method of budgeting that focuses on requested increases in funding for existing programs, accepting as legitimate their previous year’s expenditures



Method of budgeting that demands justification for the entire budget request of an agency, not just its requested increase in funding

The Politics of Budgeting
budgeting is nonprogrammatic
Nonprogrammatic Budgeting

Budgeting written in an intentionally ambiguous manner in order to obscure policy decisions behind meaningless phrases like “personnel sevices,” “travel,” “supplies,” etc.

Program Budgeting

A budget written in such a way that items in the budget are identified according to the functions and programs they are to be spent on

Budgeting is Nonprogrammatic
bureaucratic budget strategies
Bureaucratic Budget Strategies
  • Spend it all
  • Ask for more
  • Put vital programs on the ‘base’
  • Make new programs appear “incremental”
  • Give them something to cut
  • Make cuts hurt