An Introduction to Budget at the Federal and NSF Levels

Federal Budget & Process

The president’s budget is not binding and is considered the administration’s proposal and request. With it comes volumes of information, including budget justifications from each agency that help Congress complete its own budget. The president’s budget generally is submitted by the first Monday in February.

The House and Senate budgetcommittees develop their own versions of a budget resolution. If the traditional schedule holds, both are developed by early April, and the leading budget committee members from both chambers develop a consensus agreement called a conference report that is typically adopted in April/May.

The two chambers arrive at a concurrent budget resolution, which is not formally a law and does not require the president’s signature. However, the House and Senate have enforcement procedures to ensure directives are met. The budget resolution sets in motion legislation that, when enacted, has the force of law.

Appropriations bills cover the discretionary portion of the budget and don’t affect mandated benefit programs such as Social Security and Medicare. Two or more of the appropriations measures can be lumped into a single omnibus appropriations bill. All of the bills must be signed by the president to become law.

Another portion of the funds goes to authorizing committees for entitlements and other mandatory spending. To change these amounts, laws must be rewritten and voted on in reconciliation legislation, which requires presidential signature to become law.

If all 13 appropriations bills aren’t signed by Oct. 1, the start of the new fiscal year, Congress may pass a continuing resolution to fill the gap. If Congress fails to pass the resolution or the president vetoes it, nonessential activities in government are shut down until appropriations for them are enacted.

February June through SeptemberMarch April May

House Budget

Committee formulates

budget resolution

Senate Budget

Committee formulates

budget resolution

Budget conference committeereports out

the concurrent resolution

of the budget.

House floor votes

Senate floor votes

House votes on 10 separate appropriations

bills.

Housevotes on

reconciliation.

Housevotes on

conference report.

Housevotes on

reconciliation.

Senate votes on 12 separate appropriations

bills.Senate

votes on conference

report.

Senatevotes on

reconciliation.

Senatevotes on

reconciliation.

Concurrent budget

resolution reached.

House authorizing committees

report changes in law to comply with budget resolution.

Senate authorizing committees

report changes in law to

comply with budget

resolution.

House Appropriations

Committees reports spending

measures to comply with

budget resolution.

Senate Appropriations

Committees reports spending

measures to comply with

budget resolution.

House authorizing committees

recommendations submitted to

Budget Committee.

10 plus conference committees

(No complete alignment)

Senate authorizing committees

recommendations submitted to

Budget Committee.

Budget reconciliation

conference committees.

President signs or vetoes

appropriations bills.

President signs or vetoes

appropriations bills.

House floor votes

Senate floor votes

President submits

his budget

proposal to

Congress.

The Long Path to a Federal Budget

Commerce, Justice, Science

Defense

Energy

Agriculture

Transportation

Education

Justice

Housing &Urban Development

EPA

NRC

NSF

Veterans Affairs

Labor

NASA

Departments & Agencies

Development of the Federal R&D BudgetShowing Fields of Science and Executive and Legislative Decision Units

Engineering

PhysicalSciences

EnvironmentalSciences

LifeSciences

Psychology

SocialSciences

OtherSciences

Fields of Science

NationalDefense

AffairsInternational

Energy

Agriculture

Transportation

Health

Budget Review Offices (OMB)

House & Senate Budget Committees (Budget Functions)

Agriculture & Related Agencies

Energy and Water

Development

State and Foreign

Operations

Interior and Environment

Homeland Security

Transportation & Related Agencies

Defense

House and Senate

Appropriations Subcommittees

Banking, Housing& Urban Affairs

Veterans Affairs

Senate Authorization Committees

Energy & NaturalResources

Environment &Public Works

Commerce, Science,& Transportation

Education and Labor

Financial Services

Veterans Affairs

Energy and Commerce

Science and Technology

AgricultureAgriculture,Nutrition, & Forestry

House Authorization Committees

Armed Services Armed Services

Foreign Relations Foreign Affairs

Natural Resources

Transportation & Infrastructure

(With significant R&D $)

Judiciary Judiciary

Homeland and National Security

Science

Technology

Math & Computer Science

Agency for International Development

Commerce

Health & Human Services

Interior

National Security

Natural Resources

General Government

Human Resources

General Science, Space & Technology

Natural Resources & Environment

Commerce & Housing Credit

Community & Regional Development

Education, Training, Employment, & Social

Services

Veterans Benefits & Services

Administration of Justice

National Science and Technology

Council Research Committees

Connecting lines indicate location of agency budget decisions, but not decision sequences.

Environment and Natural

Resources

Military Construction and

VA

Labor, Health & Human Services,

Education

Financial Services and General Gov’t

Homeland Security and Governmental Affairs Homeland Security

Homeland Security

Income security

Treasury

Health, Education, Labor

and Pensions

Spending America’s IncomeBroad revenue and spending categories in President Obama’s fiscal 2010 budget:

Where it comes from (receipts)$2.3 Trillion

How it would be spent (outlays)$3.6 Trillion

Individual income tax:$1,051 billion

Corporate income tax:$179 billion

Payroll tax:$940 billion

Excise tax: $75 billionEstate and gift tax: $20 billion

Customs duties: $24 billionOther: $44 billion

$696 billion: Social Security

$687 billion: Discretionary(non-defense)

$707 billion: Defense(discretionary)

$452 billion: Medicare

$136 billion: Interest on debt

$290 billion: Medicaid

$623 billion: OtherDeficit: $1,258 billion

$3.6Trillion

Percentage Composition of Federal Government Outlays

National Defense

Net Interest

All Other

Payments to Individuals

0%

20%

40%

60%

80%

100%

40 44 48 52 56 60 64 68 72 76 80 84 88 92 96 00 04

Fiscal Year 2007

$1,494 B

$528 B

$247 B

$501 B

1940 1971 2007Current $ $9.5B $210.2B $2,770B

President's Request for Non-Defense Discretionary Budget Authority

By Major Agency -- FY 2008

Other Agencies31.6 B

7%

NSF6.4 B1%

NASA17.3 B

4%

EPA7.2 B2%

Veterans Affairs39.4 B

9%

Treasury12.1 B

3%Transportation

12.1 B3%

State & Int'l Pgm35.0 B

8%

Labor10.6 B

2% Justice20.2 B

5% Interior10.6 B

2%Housing & Urban Dev

35.2 B8%

Homeand Security34.3 B

8%

Health & Human Service69.3 B15%

Energy24.3 B

5%

Education56.0 B12%

Commerce6.6 B1%

Agriculture20.2 B

5%

Total = $448.4 Billion

NSF’s Budget

$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

$ in Billions

Fiscal Year

Recent and Outyear NSF Funding

NSF Appropriations ARRA Appropriations American Competitiveness Initiative America COMPETES Act

FY 2009 AppropriationAppropriations Account FY 2009

AppropriationFY 2009 Recovery Act

Total FY 2009 Appropriations

Research & Related Activities $5,183 $2,500 $7,683

Education & Human Resources $845 $100 $945

Major Research Equipment & Facilities Construction

$152 $400 $552

Agency Operations &

Award Management

$294 - $294

National Science Board $4 - $4

Inspector General $12 $2 $14

TOTAL $6,490 $3,002 $9,492

President’s Plan for Science & Innovation

FY 2010 Appropriations:Marks

FY 2010 House Senate ConferenceRequest Mark Mark Mark Amount Percent

$5,733 $5,642 $5,618 $5,618 -$115 -2%

$858 $863 $858 $873 $15 2%

$117 $114 $122 $117 - 0%

$318 $300 $300 $300 -$18 -6%

$4 $4 $4 $5 $0.2 5%

$14 $13 $14 $14 - -

$7,045 $6,937 $6,917 $6,927 -$118 -2%6.70%

Conf. Less FY 2010 Request

FY 2010: Major Themes and Priorities

• Potentially Transformative Research – $92 million to leverage activities

• Examples:– EAGER– Sandpit process

• New Faculty and Young Investigators– CAREER - $204 million

• Workforce development– Advanced Technological Education (ATE) - $64

million• Climate Change

– Climate Change Education program - $10 million• Clean Energy

– RE-ENERGYSE - joint NSF/DOE activity

FY 2010: Major Themes and Priorities

Graduate Research Fellowships

Triple the number of new fellowships by 2013

0500

1,0001,5002,0002,500

3,0003,500

FY2008

FY2009

FY2010

FY2011

FY2012

FY2013

FY 2010: Major Themes and Priorities

GRF Funding by Account

0%

20%

40%

60%

80%

100%

FY 2007Actual

FY 2008Actual

FY 2009Total

FY 2010Request

R&RAEHR

$94M $96M $161M $122M

*Total Program Funding Listed

FY 2010: Major Themes and Priorities

• Cyber-enabled Discovery and Innovation (CDI) $103 million - +$32 million over ‘09

• Science & Engineering Beyond Moore's Law (SEBML) $47 million - +$31 million over ‘09

• Climate Research (CR)$197 million – builds on existing NSF activities

FY 2010: Major Themes and Priorities

Major Research Instrumentation**$100 million

EPSCoR$147 million

Cybersecurity$127 million

FY 2010: Major Themes and Priorities

Science and Technology CentersNew cohort of STCs planned

Networking and Information Technology Research and Development (NITRD)$1.1 billion, +$107 million

National Nanotechnology Initiative (NNI) $423 million, +$26 millionTotal includes $30 million for EHS

EHR Programs

• Education and Human Resources: $857.76, +1.5%

Graduate Fellowships (GRF, IGERT, GK-12): $245.19M, + $9.57M, +4.1%.

HBCU-UP: $32M, +$500K, +1.6% LSAMP: $44.75M, + $2.25M, +5.3% TCUP: $13.35M, -$150K, -1.1% MSP: $58.22M, -$2.78M, -4.6% Noyce: $55M, flat with FY09 Current Plan

Major Research Equipment and Facilities Construction

FY 2009 Current

Plan

FY 2009 Recovery

ActFY 2010

RequestAdvanced LIGO $51 - $46Atacama Large Millimeter Array 82 - 43Alaska Region Research Vessel - $148 -Advanced Technology Solar Telescope

7 146 10

IceCube 11 - 1Ocean Observatories Initiative - 106 14Judgment Fund - - 3MREFC Total $152 $400 $117Totals may not add due to rounding.

(Dollars in Millions)

NSF’s Budget Process

Budget Formulation and Planning Cycle

Oct Dec Jan Feb Mar Apr May June July Aug Sep Oct

NSB Activities

NSF Activities

Complete FY+1Budget

Assistant Director Retreat;Major Research Equipment Review; Examining Priorities

Scenario Planningfor FY+2

Develop FY+2Budget

Submit FY +2Budget to OMB

Planning EnvironmentIssues Analysis; Guidance on Establishing Priorities

Principles GoverningFY+2 Budget

NSB Attention to FY+2 Budget

NSB ApproveFY+2 Budget

Federal Fiscal Year (Reference Year = 0)

Nov

NSF Budget Formulation

February 2010

February – FY 2011 Budget to Congress

March/April – Hearings on FY 2011

March - June Planning for FY 2012

May 2010 NSB: Budget Discussion on FY 2012

May/June Budget Calls for FY 2012

August NSB: FY 2012 OMB Budget Approved

September - OMB Submission of FY 2012

September - Close Out of FY 2010

October 1 - FY 2011 Current Plan

October/November - OMB Hearings on FY 2012

December 1 - OMB Passback/Appeal

February 2011

NSF BUDGET EXECUTION

August 2009

August – Develop initial interim operating plans for FY 2010

September – Make interim operating plans available

October 1 – Enactment of Appropriations (December 18)

November 1 – Submit Current Plan to Congress (January/February)

December 1 – Congress Approves Current Plan (February/March)

December – Finalize Operating Plans (February/March)

December thru August – SPEND!

August – Deadline for Processing Actions

September – Close-out

September 2010

81

-42

38

34

27

5

27

-3

205

-5

26

20

19

26

55

139

112

67

89

134

85

160

76

-80 -40 0 40 80 120 160 200 240

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

APPROPRIATIONS DRIFTNSF Appropriations Dates versus Start of Federal Fiscal Year Oct. 1

DAYSOct. 1

How the Money Flows to Your Office

Congress OMB/Treasury NSFBFA (BD/DFM)

Appropriations Apportionment

(Days)

NSF AccountsR&RAEHR

MREFCS&ENSBOIG

Allotment(Hours)

Directorates/Offices

Divisions

Programs

OperatingBudget(Days)

Current Plan

Where to find budget information.

Budget References

• Congress: www.nsf.gov/od/lpa/congress/www.thomas.loc.gov/home/thomas2.html

White House: www.omb.govwww.ostp.gov

NSF: www.nsf.gov/bfa/bud/start.htmhttp://dellweb.bfa.nsf.gov/www.inside.nsf.gov/bfa/budget_primer/index.cfm

•Other: www.aaas.org/spp/rd/

NSF Budget Division: Major Responsibilities

• Annual Budget Submissions to OMB and Congress

• Annual Performance and Accountability Report

• Materials for Congressional Hearings

• Long-Range Planning Materials for NSB, O/D

• Special Analysis for COVs, NSF-wide activities

• Review of major documents (Clearance)

• Budget Execution (with DFM)

• Enterprise Information System (EIS)

• Budget Internet Information System (BIIS)

• Input to OMB budget database (MAX)

• Advisory Committee for GPRA Performance Assessment (AC/GPA)

• APIC GPRA Working Group

• Verification & Validation of GPRA/PART Goals

Calendar yr 07 08 09 10 11 12 FY Budget

12

11

10

09

NSF OMB/NSF Congress Execution

09

10

11

12

We are here

FY11 Submit to OMB

FY11 Budget to Congress

Budget – Where are we?

FY10 Appropriation bill signed (or CR)