The Budget Process: An Overview

Between now and October 1, the Clinton Administration and Congress will devote considerable attention to the passage of a new budget for fiscal year 1994. The following is a brief overview of this process which ultimately determines the amount of money which NSF, NASA, DOE, and other science-related agencies and departments have for research grants and major undertakings:

The First Step -- Passage of a Budget Resolution: The Senate just passed the Clinton Administration’s broad taxing and spending plan for the next five years. The House passed similar legislation last week. This resolution does not set specific funding levels for departments or agencies, as this is the responsibility of the appropriations committees.

The FY 1994 Budget Request: On April 5, the Clinton Administration officially releases its budget request. This spells out in great detail proposed spending.

The 602b: Although this is an “inside the beltway” matter, it is vitally important to all science agencies, especially NSF and NASA. The 602b allocation is the amount of money which each of the 13 appropriations subcommittees is allocated for departments and agencies under its jurisdiction. NSF and NASA receive funding from the same 602b that VA, HUD, EPA, and a host of other independent agencies receive. A high 602b means more money to spread around; a low or flat 602b creates much greater strain. The previous chairman of the House VA, HUD appropriations subcommittee commonly used to remark that his subcommittee lived or died by their 602b. Look for this figure to be set around the end of April.

The Mark-Up: All money bills originate in the House. The House Energy and Water Development Appropriations Subcommittee is traditionally the first to mark-up, or draft, its bill providing funding for the Department of Energy. Last year this mark-up was completed in early June. It is difficult to predict how this year’s late release of the budget will affect the congressional calendar. After an appropriations subcommittee marks-up its bill it goes to the full House or Senate appropriations committee for final approval before floor action.

House Floor Action: There are 13 appropriations bills, and each must be approved by the full House before the Senate can act. The floor is where amendments have been made to terminate SSC and space station funding, and it offers the first time that the vast majority of senators and representatives have to change the specifics of funding legislation.

The Senate’s Turn: After passage by the full House, the Senate repeats the above process. This activity does not occur in isolation: for instance, last year Senator J. Bennett Johnston, a strong SSC supporter, held the DOE funding bill until he was sure there were enough votes to defeat an amendment to terminate the SSC.

The Conference Committee: It is highly unusual for the House and Senate versions of an appropriations bill to match. A conference committee is appointed, drawn from members of each appropriations subcommittee, to resolve the differences.

Final Passage: The compromise bill prepared by the conference committee, called the conference report, goes back to the House and Senate floors a final time for passage. It is uncommon for a bill to be changed at this point.

The President’s Signature: The final bill is sent to the president for signature, hopefully by the beginning of the new fiscal year on October 1. A stop-gap funding bill, continuing current levels of funding, is passed for those departments and agencies for which an appropriations bill has not been signed.