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APPROPRIATIONS & BUDGET: WHY DOES IT MATTER? February 21, 2017
Why Does Budget Matter? • Process by which the mission you care about gets funded
• Fundamental process underlying all actions • Budget is Policy – you can learn a lot about NOAA (or any agency) by looking at what we fund.
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Opening Question • Reflect on how the budget process affects or intersects
with your job, aside from the obvious fact that we all need money to operate. • Do you feel comfortable that you understand the process by which
we get money? • What frustrations have you encountered if/when you have needed
this process?
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APPROPRIATIONS LAW And the dreaded Anti-Deficiency Act
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The Law • Where does approps law
come from? • The constitution of the US • Laws of the US • Comptroller general decisions • DOJ decisions • Court Rulings
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• How do you interpret it? • Follow the Plain meaning
of the law • If unclear, turn to legislative
history • Follow below in order of
precedence • Conference committee reports • House or senate committee
reports • Floor debates • Hearings • Other, as official as possible
Basic Principals of Appropriation Law • In most law, unless something is explicitly illegal it is legal.
Appropriation law is the opposite, unless something has explicitly been made an exception – you can’t do it.
• Purpose • Necessary Expense Doctrine
• Time • Bona-fide need • “Color of money”
• Amount • PPA lines
• Anti-Deficiency Act (ADA) (1884, multiple modifications esp. 1950)
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What happens when you violate Anti-Deficiency Act? • Anti-Deficiency Act (ADA) has power and violations have
steep penalties • This is the reason we shutdown without an appropriation • Administrative Sanctions
• Employees may be subject to appropriate administrative discipline including, when circumstances warrant, suspension from duty without pay or removal from office
• Penal Sanctions • Employees may also be subject to fines, imprisonment, or both • To date – no federal employee has been jailed
• Do you remember what happened to NWS in 2010 & 2011? • Reprogramming and transfers without Congressional Approval by
using SLTs
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THE BUDGET FORMULATION PROCESS Basically storytelling with a side of numbers
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The budget process is long….
Strategic Prioritization for
Budget Formulation (Oct – Jan)
Accepted proposals are submitted to NOAA Budget
(March)
Formulation (DOC submission and
passback) (April – June)
Formulation (OMB submission and
passback) (August – early-December)
President’s Budget formulation & rollout
(late-December – March)
Congressional hearings and appropriation
meetings (March-May)
Markup (June-July)
Appropriations Bill passed (Oct 1)
Current Year Execution
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… know when to pitch your idea… 2016
2017
2018
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
FY 2
017
-----------------CR until April -------------------------------- ----------------------------------------------FY 2017 Execution---------------------------------------------------
FY 2
018
OMB passback & appeals. OMB Settlement mid-Dec
FY18 PB Rollout (2/1) and briefings
Congressional Action: Hearings, Appropriation bills and Reports
--------------------FY 2018 Execution-----------------------
FY 2
019
1st round of decisi-ons made
Presentation to NEP and NEC; final decisions
Review line office proposals; make final determinations; and prepare FY 2019 DOC Submission.
FY 2019 DOC passback & appeals; prepare OMB Submission.
FY19 OMB passback & appeals. OMB Settlement mid-Dec
Prep FY19 PB
FY19 PB Rollout and briefings
We are here
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Execution Congressional Action Formulation Planning
…and understand your audience. • NOAA Budget
• Likes ideas which are executable, align with NOAA priorities and activities, collaborative, and visionary
• DOC • Likes ideas which are executable, align with DOC strategic plan, fit
in resources • OMB
• Likes bold initiatives that they can pitch to support Administration priorities
• Ex. Past administration focus on R&D, climate/environment, and federal efficiency
• Appropriations Staff • NOAAs appropriators are largely Gulf of Mexico based • Economic impact, public safety, cost savings
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Question • During your time at NOAA have you ever put a request or
idea into the SEE or formulation process? What happened to your idea after you submitted it? Was it successful, why or why not?
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BUDGET EXECUTION Where budget meets mission – and things to watch out for
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Fiscal Year (FY) Begins • October 1st, 2016 FY 2017 began, that means that by
September 30th, 2017 (the end of FY17): • All FY 2016 ORF money should be obligated • FY 2015 PAC money should be obligated (unless no-year funds) • FY 2011 ORF and FY 2010 PAC money expire
• This is the “time” in purpose, time, and amount • Even though you have more time, that doesn’t mean you
should try to spread the spending over multiple years. • Carryover • Recession
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Continuing Resolution • Funds the government while between appropriations • You are beholden to the previous years funding levels, or
lower depending on the allocation, unless there is an anomaly
• Anomaly – During a CR, funding changes targeted at specific programs
• Key principle during a CR is no new starts
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When in doubt…. • Ask a lawyer
• NOAA and DOC employ Appropriation lawyers, they know their stuff
• They are risk averse, which could save you
• Speak up! • If you see something fishy, say that it is fishy.
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CONNECTION TO LEADERSHIP
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Why should I care – leadership answer • Public Service • Good Stewards of tax payer money • You need money for your mission • ECQ Business Acumen (Financial Management)
• Understands the organization's financial processes. Prepares, justifies, and administers the program budget. Oversees procurement and contracting to achieve desired results. Monitors expenditures and uses cost-benefit thinking to set priorities.
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Questions • How do you think NOAA should handle cuts in declining
budget environments? • Across the board? Cut whole programs? Etc?
• How could you use storytelling to defend your program – whether asking for a budget increase or a budget decrease?
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BACKGROUND
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References • GAO red book • GAO list of ADA violations • OMB Circular A-11 • Congress.gov
• Appropriation language • Authorizing language • Report language (ex. 2016 house CJS Report)
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Business Acumen Financial Management Understands the organization's financial
processes. Prepares, justifies, and administers the program budget. Oversees procurement and contracting to achieve desired results. Monitors expenditures and uses cost-benefit thinking to set priorities.
Human Capital Management Builds and manages workforce based on organizational goals, budget considerations, and staffing needs. Ensures that employees are appropriately recruited, selected, appraised, and rewarded; takes action to address performance problems. Manages a multi-sector workforce and a variety of work situations.
Technology Management Keeps up-to-date on technological developments. Makes effective use of technology to achieve results. Ensures access to and security of technology systems.
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Concepts • Appropriation vs Authorizing
language • Apportionment • Allocation/Allotment • Anti-Deficiency Act • Bona-fide need • Transfer - ORF to PAC • Reprogramming - PPA to PPA • Adjustments to Base (ATBs) • Object Class • Operations, Research &
Facilities (ORF) • Procurement, Acquisitions &
Construction (PAC)
• Obligations • Expired Funds • Discretionary accounts • Mandatory accounts
Want to know more? • There are great training resources in this area: • Max.gov • Management Concepts
• Appropriations Law Seminar • Budget Justification: Effective Preparation and Submission • Budget Formulation
• Or if you want to really know more detail in the NOAA Budget Office
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