1. The Triple Crown: Looking at Federal, State and Local Budgeting
This Session Sponsored by:

2. The Federal Budget & Ohio
Sharon Parrott
Center on Budget and Policy Priorities
October 20, 2017

3. Federal Grants Make Up Nearly One-Third of State Budgets

4. The Vast Majority of Federal Fund Expenditures in Ohio Go Toward Medicaid

5. Federal Spending by Program, FY 2016
Entitlement spending includes programs like Social Security, Medicare, Medicaid, and SNAP (formerly known as food stamps). This part of the budget also includes the cost of civil service and military retirement, costs associated with the refundable part of tax credits like the Earned Income Tax Credit, and some smaller programs including foster care and child care funding. Medicare and Social Security together comprise 39% of the federal budget and nearly two-thirds of entitlement spending. The funding for discretionary programs is split almost evenly between defense and non-defense programs.

6. NDD Spending, FY 2016
NDD includes a wide variety of priorities such as education, scientific research, infrastructure, national parks and forests, environmental protection, some low-income assistance, and public health, as well as many basic government operations including law enforcement, courts, and tax collection.  It also includes many programs related to national security, including foreign aid, homeland security, and services for veterans. 
Examples:
Education and training: Title I aid for schools, IDEA for students with disabilities
Law enforcement and governance: FBI
Diplomacy and international affairs: USAID
Health: CDC, NIH
In 2016, NDD spending totaled $600 billion, or 16 percent of federal spending.  Of that total, 33 percent went to grants to states and localities, such as for K-12 education and highway projects, while 21 percent went to low-income programs, such as Head Start and rental assistance.

7. Standard Budget Process Or: How it is supposed to work
President’s Budget
Congressional Budget resolutions
Appropriations, Entitlement and Tax Legislation
Beginning of new fiscal year
By first Monday
in February
By April 15
Summer/Fall
October 1
Never happens this way, but it’s worth understanding the standard process to be able to understand how and why the process can deviate from the traditional route
Planning for the next fiscal year; so in February 2017, Administration is planning for fiscal year 2018
President’s Budget: “This is what I think we should do for the next fiscal year”; down to the program level in specificity (e.g. SFWRF or Head Start recommendation)
To Congress, it’s one big recommendation; it doesn’t have any legal status. This is not to say, necessarily that it lacks power. Plus, it can be very informative with costs
BR is the polar opposite of the President’s Budget because it’s not nearly as detailed and carries more authority, such that it specifies the rules of the road
The Appropriations Committees in both the House and Senate then take their roadmaps and draft appropriations bills.
All approps bills rarely actually make it by October 1
Delayed in the 1st year of new administration
Broad budget framework but doesn’t change tax or spending laws
Appropriations bills set funding for discretionary programs

8. This Year’s Timetable for Budget/Tax Legislation
Feb - Sep
President released budget
ACA repeal debate
House budget committee crafted budget resolution
Oct - Dec
Budget resolutions considered on House/Senate floor
Tax Bill
Health package
Discretionary funding/appropriations bills
Jan - ?
What gets held over?

9. The Triple Crown: Looking at Federal, State and Local Budgeting
This Session Sponsored by: