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= Office of Management and Budget (Draft) =

The Presidents Budget Process

 * 1) Development of Presidents Budget
 * 2) Initial Preperation of Agency budgets
 * 3) OMB Review of Agency Budgets
 * 4) Submission and Justification of President's Budget
 * 5) Composition of the President’s Budget Submission to Congress
 * 6) Supplements and Revisions to the President’s Budget Request

In practice, the President has delegated to OMB certain budgetary tasks and authorities necessary for developing the budget. OMB coordinates the development of the President’s budget proposal by issuing circulars, memoranda, and guidance documents to the heads of executive agencies. Executive agencies then prepare their budget requests in accordance with the instructions and guidance provided by OMB.

In 1921 the Budget and Accounting Act of 1921 established the executive budget process we have today. It stated a framework for a federal budget proposal that is to be submitted by the president to congress prior to the start of each fiscal year. It all starts with the executive agencies submitting their requests and justification materials to the OMB to be reviewed. The president then looks over making the final decisons before submittiing no later than the first monday in February it to the OMB for their budget proposal.Though it is not legally binding, the President’s budget initiates the congressional budget process and provides Congress with recommended spending levels for agency programs, projects, and activities funded through the annual appropriations acts. The President’s budget also includes budgetary projections based on existing law and provides Congress with estimations of the effects the President’s revenue and direct spending proposals will have on those projections.

Once the budget has been submitted, the OMB Director and agency officials provide testimony regardng the presidents broad budget objeectives before congressional committees. The presidents budget provides congress with reccomended spending levels for programs, projects and activities that are funded through appropiations and other budgetary legislation. These funds provideded are not immeadiilty avaliable for obligaton or expenditure. In practice, the President has delegated to OMB certain budgetary tasks and authorities necessary for developing the budget. OMB coordinates the development of the President’s budget proposal by issuing circulars, memoranda, and guidance documents to the heads of executive agencies. Executive agencies then prepare their budget requests in accordance with the instructions and guidance provided by OMB.

Early in the development phase, OMB issues a budget planning guidance memorandum, also referred to as the “Spring Guidance,” which provides executive agencies with detailed instructions and deadlines for submitting their budget requests and supporting materials to OMB.Agency budget requests are submitted to OMB in early fall, approximately four to five months before the President must submit the budget to Congress. OMB has been delegated the responsibility of reviewing executive agency requests and justification materials to ensure that they are consistent with the President’s policy objectives. During periods when enactment of full-year or interim appropriates seems uncertain, OMB may instruct executive agencies to prepare for funding gaps and government shutdowns.