1909.13,20 Page 1 of 11 FSH 1909.13 - PROGRAM DEVELOPMENT AND BUDGETING HANDBOOK WO AMENDMENT 1909.13-94-1 EFFECTIVE 9/30/94 CHAPTER 20 - BUDGET PRESENTATION 20.4 - Responsibility. (FSM 1904, FSM 1930.4, and FSH 1909.13, sec. 04). 20.41 - Washington Office. 20.41a - Director of Program Development and Budget. It is the responsibility of the Director, Program Development and Budget, through the Branch Chief for Budget Presentation and Schedules to: 1. Prepare the agency budget proposals to the Department of Agriculture and the Office of Management and Budget. 2. Prepare the Budget Appendix. 3. Prepare the Explanatory Notes. 4. Prepare witness statements, briefing papers and books, and presentation materials for committee hearings. 5. Coordinate the preparation of responses to Congressional committee members and their staffs and other members of Congress and their staffs. 6. Assign responsibility for and track accomplishment of Congressional Directives. 7. Include earmarks designated by Congress in the final Program Budget Management Information (PBMI). 20.41b - Deputy Area Budget Coordinators. It is the responsibility of the Deputy Area Budget Coordinators to: 1. Prepare program and resource narratives for the agency request to the Department of Agriculture. 2. Prepare program and resource narratives for the Department of Agriculture's budget request to the Office of Management and Budget. 3. Develop program plans and narrative justifications for the Explanatory Notes which support personnel ceilings and dollar allowances set by the President. 4. Provide information in a timely manner for responses to requests received from the Department of Agriculture, the Office of Management and Budget, members of Congress, and congressional committees and their staffs. 20.5 - Definitions. Actions on the Budget. A budget table that displays the status of Forest Service budget at various stages in the current year congressional budget process, including prior year appropriations; President's budget; House Action; Senate Action; and Appropriations Bill, as well as a written summary of congressional direction quoted from the congressional reports and the appropriations bill. Authorization-Appropriation Process. Congress first passes an authorization bill that establishes or continues an agency or program and provides it with the legal authority to operate. Authorizations may be for one or more years, and such legislation may recommend funding levels for programs and agencies. Authorizations make possible later consideration of appropriations. Capability Statements. A capability statement is the vehicle used to respond to requests by the House and Senate Interior and Related Agencies Appropriations Subcommittees for proposed budget adjustments (increases or decreases) from the President's Budget. Concurrent Budget Resolution. Congress' annual budget process centers around the adoption of concurrent budget resolutions. This resolution is formulated by the Budget committees and is composed of two basic parts. The first deals with total federal spending (budget authority and outlays), total federal revenue, and the public debt for the upcoming fiscal year. The second part subdivides the spending aggregates into 21 functional categories, such as national defense, energy, and agriculture. This fiscal blueprint establishes the context of congressional budgeting; guides the budgetary action of the authorizing, appropriating, and taxing committees; and represents Congress's spending priorities. This allocation procedure, called a "budget crosswalk," involves two steps. First, section 302 of the Balanced Budget and Emergency Deficit Control Act of 1985, requires the conference report to allocate the congressionally agreed-upon spending levels for all 21 functional categories. In the second step of the crosswalk, the committees subdivide their spending allocations among the appropriate subcommittees or programs. Until Congress adopts its budget resolution for a fiscal year, it may not take up any spending, revenue, entitlement, or debt legislation affecting that year unless this prohibition is waived by the House and Senate. Congressional Direction. Congressional direction is a provision within a Committee report or in an Appropriations bill that directs the Forest Service to provide certain information or to conduct certain activities. If the direction is contained in the Appropriations Act, it is law. If it is contained in the accompanying House, Senate, or Conference report, although not law, the Forest Service makes every effort to comply with the direction. Congressional Earmark. A Congressional earmark is a specific designation of funds for a specific project or location that is documented in a Committee report (House, Senate or Conference) or in an Appropriations bill. Lead-off Tabular Statements. A format used to describes the intended actions for each appropriation, budget line item, and program/activity included in the Agency Request and Department Allowance budget levels. The statements include funding, staffing requirements, and a narrative describing program accomplishments to be achieved at the specified funding level. Reconciliation. Reconciliation is a two-step process designed to bring existing law into conformity with current budget plans. In practice, reconciliation is used to reduce spending, and to increase revenue. It does not address funding that is established in annual appropriations bills. The first step in reconciliation calls for congressional approval of a budget resolution that instructs House and Senate Committees to propose cuts in spending (and/or increases in revenue) on programs and agency operations by a certain date. The second step involves the packaging of the recommendations into an omnibus reconciliation bill, followed by floor action in each chamber. 20.6 - Process Schedule. See exhibits 01 and 02 which detail the time tables of the Executive and Legislative budget presentation process. This process includes steps 3, 4, 6, and 8 of the Forest Service 10 Step Budget Process (sec. 06, ex. 01). 1. Exhibit 01 - USDA, Program and Budget Development Schedule. Exhibit 01 displays the Department of Agriculture key events and target dates related to the formulation and development of the Agency Request and Department Allowance. 2. Exhibit 02 - Executive and Congressional Budget Formulation Process. Exhibit 02 displays the key events and target dates relating to the formulation and development of the budget at the Executive (Office of Management and Budget) and Legislative (Congress) levels. The time table highlights significant dates culminating in transmittal of the President's budget to Congress and enactment of the Appropriations bills for each fiscal year. 20.6 - Exhibit 01 __________________________________ USDA, Program and Budget Development Schedule ACTION TARGET DATE RESPONSIBILITY Under/Assistant Secretaries provide program April-May USDA and policy guidance. Submit Agency request budget estimates and July FS legislative program proposals. Secretary meets with Under/Assistant July - USDA & FS Secretaries and Agency heads to discuss August budget and legislative proposals. Agencies advised of Secretary's decisions August USDA on the Department Allowance budget estimate. Prepare and submit to USDA final materials Late FS for Department Allowance. August Submit Department's budget estimate to September USDA & FS the Office of Management and Budget. ______________________________________ 20.6 - Exhibit 02 ______________________________________ Executive and Congressional Budget Formulation Process ACTION TARGET DATE RESPONSIBILITY Budget materials submitted to the Office September USDA & FS of Management and Budget. President transmits the budget to Congress. Not later than OMB & FS Agency transmits Explanatory Notes to first Monday Congress. in February Committees submit views and estimates to Within 6 weeks Congress Budget Committees. of PB transmittal Senate Budget Committee reports concurrent April 1 Senate resolution on the budget. Congress completes action on concurrent April 15 Congress budget resolution. House may consider appropriations bills May 15 Congress in the absence of a concurrent resolution on the budget. House Appropriations Committee reports June 10 House all appropriations bills to full House. Senate takes up action on appropriations June 10 Senate bills passed by the House. Conference Committees resolve July - Congress differences in appropriations bills. September Congressional Budget Office (CBO) provides As Needed CBO estimates of the impact of legislation. OMB and agencies discuss budget issues June - OMB and options in management and budgetAugust reviews. CBO issues its sequestration update. August 15 CBO OMB issues its sequestration update. August 20 OMB President signs appropriations October 1 President bills into law. 21 - BUDGET PRESENTATION PROCESS. The formulation of the President's Budget begins about 19 months before the fiscal year under consideration. The Washington Office, Director of Program Development and Budget provides the Agency, Department of Agriculture, the Office of Management and Budget, and Congress with budgetary information throughout the process. 21.1 - Forest Service Agency Request. The Washington Office, Director of Program Development and Budget (PD&B) Staff: 1. Uses the program budget proposals approved by the Chief to develop the Agency Request budget estimate and justification and 2. Ensures the budget proposals meet the following criteria: a. Estimates and justification statements conform with administration policy. b. Appropriation language is accurate as legal authority. c. Cost data is consistent with current and prior years request. d. Proposals can be administratively implemented and are financially accountable. 21.2 - Department Allowance. The Department reviews the Agency Budget request for items, such as: 1. The need for new programs or program thrusts. 2. Strong justifications and rationale. 3. Efficiency, economy, and feasibility of Agency proposals. 4. Adherence to Department and Office of Management and Budget direction. Based upon the review of the Agency Request, the Secretary of Agriculture determines a program level for the Agency, referred to as the Department Allowance. The Department Allowance provides funding, staffing, outputs, and narrative direction for the budget year. This level of funding is submitted by the Agency to the Office of Management and Budget as the recommended level of funding to be included in the President's Budget. 21.3 - President's Budget. The Office of Management and Budget (OMB) reviews the Department Allowance and determines the funding level to be included in the President's Budget. More specifically, OMB: 1. Reviews proposed program changes and/or new programs in terms of anticipated measurable benefits. 2. Assesses the relationships between Forest Service proposals and the condition of the economy in terms of revenue projections, the aggregate range of outlays, and changes in Administration policy. 3. Recent and current economic conditions, as well as the future outlook. 4. Projected future year revenues and outlays. The Office of Management and Budget provides funding information, staffing, outputs, and narrative direction to the Department of Agriculture (OMB Passback). The OMB passback received by the Agency from the Department of Agriculture becomes the President's Budget. 21.4 - Congress. The President's Budget, accompanied by the Explanatory Notes, is normally sent to Congress in February. 21.41 - Appropriation Hearings. The House and Senate appropriations committees schedule hearings before the Department of the Interior and Related Agencies Subcommittees after review of the President's budget and the Explanatory Notes. These hearings are primarily fact-finding instruments. Through oral and written testimony, the Department and the Forest Service provide the members of the Appropriations Subcommittees with information on Forest Service programs. After the agency hearings, Committee staffs submit questions to the Forest Service on budget matters needing further clarification. The Program Development and Budget Staff works with the Deputy Area Budget Coordinators to respond to these questions. Responses to the questions require clearance from the Department of Agriculture and from the Office of Management and Budget before they can be submitted to the Committees. See section 21.46, exhibit 01 for an example of a response to a Congressional question. 21.42 - Outside Witness Testimony. The Committees schedule outside witnesses to present testimony about Forest Service budget proposals and programs. Outside witnesses include witnesses from the following: public (House Subcommittee only), Congress, executive branch, interest groups, academic experts, and knowledgeable citizens. 21.43 - Capability Statements. A capability statement is the vehicle used to respond to: 1. Requests by the House and Senate Interior and Related Agencies Appropriations Subcommittees for proposed budget adjustments (increases or decreases) from the President's Budget, 2. Written witness statements provided to the Subcommittees, and 3. Proposed budget adjustments (increases or decreases) for specific programs or projects. The Program Development and Budget staff coordinates the preparation of capability statements with the Deputy Area Budget Coordinators. See section 21.46, exhibit 02 for an example of a capability statement. 21.44 - Congressional Direction. After the Appropriations bill is enacted, the Program Development and Budget staff: 1. Summarizes the Congressional directives contained in the House, Senate, and Conference Reports and the Bill itself. 2. Provides the summary to the Chief, Deputy Chiefs, Regional Foresters, and Station, Area, and Institute Directors and assigns responsibility for compliance with the directives. 3. Tracks the accomplishment of congressional directives until all have been met. 21.45 - Congressional Earmarks. The Program Development and Budget staff assigns and transmits earmarks to the Washington Office staffs, Regional Foresters, and Station, Area, and Institute Directors through the final Program Budget and Management Information (PBMI). 21.46 - Exhibits. See exhibits 01 and 02 for examples of responses to Congressional questions and a completed capability statement. 1. Exhibit 01 - Sample Questions and Answers. This exhibit provides an example of responses to Congressional questions. 2. Exhibit 02 - Sample Capability Statement. This exhibit provides an example of a completed capability statement. 21.46 - Exhibit 01 Sample Questions and Answers ECOSYSTEM MANAGEMENT The budget mentions the implementation of ecosystem management and reducing the amount of clearcutting. 224. Question: How exactly is ecosystem management being implemented? Answer: Ecosystem management is being implemented with a "top down and bottom up" approach. The applied management techniques learned from New Perspectives are being applied at the ranger district level, while land stewards continue to develop and try new ecologically sensitive approaches. Each region and associated research station(s) has developed an implementation plan for ecosystem management for their geographic area. At the national level, an Ecosystem Management staff and interdisciplinary team has been established to guide the process, assist in developing concepts and national direction, coordinate with clients and sister agencies, and spread new advances and approaches from one location to another. The primary vehicle for putting ecosystem management on-the- ground is through land management activities guided by forest plans, as well as through legacy and stewardship programs for State and Private Forestry, integrated ecological research, and International Forestry efforts. RECREATION The request for recreation use is $245,516,000, an increase of $6,191,000. 245. Question: Under recreation management, how does the $1,811,000 decrease for the below cost sales phase out relate to the decrease of $1,373,000 in recreation timber support costs (p. 56)? Answer: There is an overall reduction from 1993 to 1994 of $1.373 million in recreation timber support funding due to a decline in sales volume. This is a net figure resulting from a reduction of $1.8 million due to the below cost sales initiative and an increase of $0.9 million due to higher unit costs. 21.46 - Exhibit 02 Sample Capability Statement DEPARTMENT OF AGRICULTURE FOREST SERVICE FY 1994 CAPABILITY STATEMENT Appropriation: National Forest System Activity: Recreation Use, Recreation Management, Wild and Scenic Rivers Proposed amendment: +$11,400,000 for Wild & Scenic River Studies, Management Plans, and Administration Current program: $173,873,000. As part of this total for the recreation management program, the Forest Service manages and protects 96 designated wild and scenic rivers. This includes the location of boundaries and preparation of river management plans, as required by the Wild and Scenic Rivers Act. In addition, the agency conducts special river studies to identify potential new wild and scenic rivers. During FY 1993, there were about 200 rivers under study. Amount Budgeted in Fiscal Year 1994: $186,100,000, of which $3,200,000 is budgeted for river studies, management planning, and administration. Feasibility: The proposed increase would permit ongoing river studies and management plans to proceed to completion as scheduled. It would also provide for adequate administration of recreation activities and other resources within wild and scenic river corridors. Capability: The Budget Enforcement Act of 1990 established limitations on total Federal spending for discretionary programs over the 1991-1994 period. The Administration's budget proposal for wild and scenic rivers is based on its priority among all discretionary programs and on the overall spending constraints imposed by the Act. For this reason, any increases in funding for this program should be offset by reductions in other National Forest System activities. Outlay effect: Fiscal Year 1994: +$9,838,000 Fiscal Year 1995: +$1,562,000 Proposed By: American Rivers, March 24, 1993 (T1-002) [H-008] Congressman Jon Kyl, May 12, 1993 (T1-002) [H-112] 21.46 - Exhibit 02-- Continued Date: May 20, 1993 (T1-002) FINAL [H-008, H-112]