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Prioritization and Budget

Prioritization and Budget. Corps Reform Network Annual Conference December 2007. Prioritization. Corps receives roughly $2B annually in construction funding Corps had a $58B backlog of projects not yet constructed WRDA 07 added another $20B+ to the backlog

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Prioritization and Budget

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  1. Prioritization and Budget Corps Reform Network Annual Conference December 2007

  2. Prioritization • Corps receives roughly $2B annually in construction funding • Corps had a $58B backlog of projects not yet constructed • WRDA 07 added another $20B+ to the backlog • 40 years of work w/out another project

  3. More Money? • Katrina led to clamoring for more money – Corps underfunded • 5 fiscal years preceding Katrina – LA more money than any other state • Not spend more money, spend more wisely • Limited budget • Must prioritize

  4. Prioritization Amendment • Sens. McCain & Feingold offered prioritization system amendment to WRDA • Commission to develop and apply priority criteria • Projects would be divided by type (Nav, Flood/Storm Damage reduction, Env.) and placed into broad tiers

  5. Ouch • Amendment received 18 aye votes in 2006; 22 in 2007 (would have been 25 w/ non-voters

  6. Why • Congressional opponents maintain that Congress has the power of purse, and should be able to make its own decisions • Red Herring – most of the budget is a “black box” and would only inform the process not dictate • All about retaining benefit of power – lard up what you want

  7. Black Box Budget • Budget is a roughly 18 month process leading up to submission in February for fiscal year starting in October • FY09 budget will be submitted Feb 08 • Top line numbers come from top – OMB – and filled in from bottom – District/divison/agency • Budget is pushed from either side in “passback”

  8. HQ Provides Budget Guidance ( Mar ) HQ Review & Approval ( May -Jun ) OMB Provides Budget Guidance ( Jan ) Field Offices Develop Program Requirements ( Apr - May ) Funding Alloc. To Field Offices ( Oct - Dec ) Budget Cycle Budget Presented to Sec. Army (Jul - Aug ) Budget Submitted to OMB ( Sep ) Cong. Hearings ( Mar - Apr ) OMB Passback ( Nov ) President Signs Approp. Bill ( Sep - Oct ) Appropriations Bills ( Jul - Sep ) President’s Budget to Congress ( Feb )

  9. Congressional Role • Congress receives the budget and largely accepts it with tweaks • Budget resolution; Spending bills • When you talk about billions, tweaks are pretty big margins.

  10. Prioritization Role • Prioritization would sand off some of the black from the box and force both the Administration and Congress to justify budget • Could still game system, but we would know that the lowest priority project got the highest funding b/c it was in key lawmakers district

  11. What are the Current Priorities • This year is the first that Congress has disclosed the members name that request particular project or earmark • Particularly interesting for Corps since an all earmark budget • TCS databasing all earmarks available at: www.taxpayer.net

  12. Winners • Not surprisingly the winners are the powerful appropriators • At current earmark levels; a lawmaker would average out to roughly $12M in earmarks. • Top 3 in house all exceed $150M in earmarks • Senate leader: Sen. Cochran $776M; Sen. Stevens $501M; Sen. Byrd $450M+ All bills at current levels

  13. What next • Use data and stories to tell the cost of prioritization • Build consensus around what would really help country • Take advantage of increased scrutiny and attention to earmarks in general

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