On March 23, 2013, the US Senate passed S.Con.Res.8, “An original concurrent resolution setting forth the congressional budget for the United States Government for fiscal year 2014, revising the appropriate budgetary levels for fiscal year 2013, and setting forth the appropriate budgetary levels for fiscal years 2015 through 2023.” This was first time in four years that the Democratic controlled Senate has been able to pass a budget resolution as required by law. In response to this unexpected action by our Senate, our own Peter Metcalf, PhD, CFA will describe the budget process at the March 28 meeting of the Conservative Breakfast Group (CBG).
The CBG meets for breakfast every Thursday at 7:30AM at the Holiday Inn Express in Chestertown.
The framework to be used by Congress and the President of the United States to formulate the budget was established by the General Accounting Act of 1921, the Congressional Budget and Impoundment Control Act of 1974, and by other budget legislation. The General Accounting Act of 1921 meant that for the first time, the president would be required to submit an annual budget for the entire federal government to Congress. The object of the budget bill was to consolidate the spending agencies in both the executive and legislative branches of the government. This law provides for a concurrent resolution that is not signed by the President, which sets fiscal policy for the Congress. The Congressional Budget and Impoundment Control Act of 1974 is a United States federal law that governs the role of the Congress in the United States budget process. It governs the procedures by which Congress annually adopts a budget resolution, a concurrent resolution that is not signed by the President, which sets fiscal policy for the Congress
According these laws, President is to submit a budget to Congress prior to the first Monday in February. He has not done that. The House and Senate Budget Committees are to approve budget resolutions prior to April 1. This year, both Houses have met this legal requirement. Last year, the Senate failed to pass any such resolution at all. Both Houses are supposed to agree to a concurrent resolution by April 15. The concurrent budget resolution of Congress is supposed to be an outline of Congressional priorities to serve as a basis for appropriations.
This is unlikely to happen. After the Congress has passed the concurrent resolution, the House is then required to prepare 12 appropriation bills for each of which must approved by both the Senate and the President prior to the start of fiscal year 2014 on October 1. The House managed to approve 8 of these for fy2013, and the Senate didn’t approve any. There was no attempt to develop a concurrent resolution.
Peter will try to explain the difference of in visions for America outlined in the two recently approved budget resolutions at our Thursday meeting, and comment on the failure of Congress to develop a responsible financial policy for our government.
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