The executive budget process is a complex set of activities that includes (1) development of the President's budget proposal, (2) submission and justification of the President's budget proposal, and (3) execution of enacted appropriations and other budgetary legislation. While some of the activities must be completed by specific dates, many follow a more flexible schedule established by formal and informal rules and procedures. This report provides a brief overview of the phases the executive budget process.¹ In addition, this report provides an illustrative example of the budget development timeline (see Table 1) and the executive budget process timetable that has generally been followed by Presidents in recent years (see Table 2).

The Budget and Accounting Act of 1921 (P.L. 67-13; 42 Stat. 20) established the modern executive budget process. Now codified in Title 31 of the U.S. Code, the act requires the President to develop and submit a consolidated budget proposal to Congress prior to the start of each fiscal year.² The President is also required to submit an update of the budget proposal to Congress in the middle of the legislative session. Section 221(b) of the Legislative Reorganization Act of 1970,³ also codified in Title 31 of the U.S. Code, requires the President to submit a supplemental summary of the budget, commonly referred to as the mid-session review (or MSR), on or before July 15 each year. ⁴ In addition, the President may submit revisions to the budget submission at any time during the legislative session.

Development of the President's Budget Proposal

The developmental phase of the executive budget process is largely coordinated through the Office of Management and Budget (OMB), which assists the President in the preparation of the budget proposal and the execution of enacted appropriations and other budgetary legislation. OMB budget guidelines are communicated formally to executive agencies through circulars, memoranda, and other publications.⁵

Generally, development of the President's budget proposal begins approximately 10 months before the President must submit the proposal to Congress, which is about 18 months prior to the start of the fiscal year that the budget will cover. Early in the development phase, the Office of Management and Budget (OMB) issues a budget planning guidance memorandum, also referred to as the "Spring Guidance."⁶ In accordance with this guidance, executive agencies submit their budget requests and supporting materials to OMB for review in early fall, culminating in final approval by the OMB Director and the President in late November or early December. Under current law (31 U.S.C. §1105(a)), the President is responsible for developing and submitting a consolidated budget to Congress no later than the first Monday in February prior to the start of the fiscal year.⁷ An illustrative example of the FY2013 timeline, including the submission dates of select executive budget documents, is shown in Table 1.⁸

Submission and Justification to Congress of the President's Budget Proposal

Although it is not legally binding, the President's budget proposal initiates the congressional budget process and provides Congress with recommended spending levels for agency programs, projects, and activities funded through the annual appropriations acts and other budgetary measures.⁹

During what OMB refers to as the "congressional phase" of the budget process, executive branch activities concerning the budget year typically involve negotiations with Congress about budgetary legislation. Shortly after the President submits the budget proposal to Congress, agencies submit written justifications of their budget requests to each chamber's appropriations committee and subcommittees of jurisdiction.¹⁰ In addition, Administration and agency officials are often called before the appropriations subcommittees to justify and explain the budget requests to Congress.

Execution of Enacted Appropriations and Other Budgetary Legislation

Once appropriations and other budgetary legislation have been enacted, OMB apportions available funds to executive agencies by time period, program, project, or activity. Throughout the fiscal year, agencies allocate, obligate, and expend funds. If necessary, agencies may request supplemental appropriations, and the President may propose supplemental appropriations or other budgetary adjustments to Congress.

At any given time, agencies are likely working on the budgets for three fiscal years simultaneously. For example, in May 2012, agencies were implementing the FY2012 budget, justifying their requests for the FY2013 budget, and developing their requests for the FY2014 budget. To put this timeline in context, as Congress began action on appropriations bills and other budgetary legislation for FY2013, OMB and agencies were already planning for FY2014.

Table 2 illustrates the full budgetary cycle for a single fiscal year organized by phase of the executive budget process. The timetable begins with the issuance of planning guidance by OMB and culminates in the end of the fiscal year. Typically, the full budgetary cycle takes more than two calendar years to complete. For example, OMB issued the FY2013 planning guidance on August 17, 2011 and FY2013 will end on September 30, 2013—a period lasting approximately two years and one month.

Acknowledgments

This report was originally authored by [author name scrubbed], Analyst on Congress and the Legislative Process at CRS. The analyst listed on the cover has updated this report and is available to answer questions concerning the report's subject matter.

Footnotes