    [Appendix]
    [Other Materials]
    [Advance Appropriations, Advance Funding, and Forward Funding]
    [From the U.S. Government Publishing Office, www.gpo.gov]

    [[Page 1127]]

    ADVANCE APPROPRIATIONS, ADVANCE FUNDING, AND FORWARD FUNDING FOR 1997

        I. An advance appropriation is one made to become available one
    fiscal year or more beyond the fiscal year for which the appropriation
    act is passed. Advance appropriations in fiscal year 1997 appropriations
    acts will become available for programs in 1998 or beyond. Since these
    appropriations are not available until after fiscal year 1997, the
    amounts will not be included in fiscal year 1997 budget totals, but will
    be reflected in the budget totals for the fiscal year for which they are
    requested.
        The Congressional Budget Act of 1974 (31 U.S.C. 1105(a)(17))
    requires inclusion in the budget of ``information on estimates of
    appropriations for the fiscal year following the fiscal year for which
    the budget is submitted for grants, contracts, and other payments under
    each program for which there is an authorization of appropriations for
    that following fiscal year when the appropriations are authorized to be
    included in an appropriation law for the fiscal year before the fiscal
    year in which the appropriation is to be available for obligation.'' In
    fulfillment of this requirement, the table below lists those accounts
    authorized to receive, in fiscal year 1997, advance appropriations for
    fiscal year 1998 and beyond and cites the authorizing statute. The
    listing is in two parts: Part A shows the amounts of advance
    appropriations included in the 1997 budget. Part B is a listing of
    accounts for which advance appropriations are authorized but not
    requested in the 1997 budget.

      A. Accounts for which advance appropriations are included in the 1997
                                                                     budget:
                            Department of Agriculture:
                                Food stamp program (7 U.S.C. 2011-2027,
                                    2029) $6,400 million for 1998.
                            Department of Energy:
                                Clean coal technology (42 U.S.C. 5901 et
                                    seq.) $313 million for 1998.
                            Department of Health and Human Services:
                                Grants to States for Medicaid (42 U.S.C.,
                                    sec. 1396) $27,989 million for 1998.
                                Payments to States for foster care and
                                    adoption assistance (P.L. 96-272) $1,111
                                    million for 1998.
                                Family support payments to States (42
                                    U.S.C., secs. 601 and 651) $4,700
                                    million for 1998.
                                Low income home energy assistance programs
                                    (P.L. 97-35) $1,000 million for 1998.
                            Department of State:
                                Contributions to international
                                    organizations, $43 million for 1998, $43
                                    million for 1999, $43 million for 2000,
                                    and $43 million for 2001.
                                Contributions for international peacekeeping
                                    activities, $150 million for 1998, $150
                                    million for 1999, $150 million for 2000,
                                    and $150 million for 2001.
                            Social Security Administration:
                                Special benefits for disabled coal miners
                                    (30 U.S.C., sec. 921) $160 million for
                                    1998.
                                Supplemental security income program (42
                                    U.S.C., sec. 1381) $9,690 million for
                                    1998.
                            Corporation for Public Broadcasting:
                                Public broadcasting fund, $240 million for
                                    1998 and $275 million for 1999.
     B. Accounts authorized to receive advance appropriations but for which
                                      none are requested in the 1997 budget:
                            Department of Agriculture:
                                Food program administration (42 U.S.C., sec.
                                    1752).
                                Food donations program (P.L. 93-29, sec.
                                    209).
                                Child nutrition programs (42 U.S.C., sec.
                                    1752).
                            Department of Education. The following
                                    activities are authorized to receive
                                    advance appropriations (20 U.S.C. 1223
                                    and 29 U.S.C. 703): \1\
                                Education reform.
                                Education for the disadvantaged.
                                Impact aid.
                                School improvement programs.
                                Violent crime reduction programs.
                                Indian education.
                                Bilingual and immigrant education.
                                Special education.
                                American Printing House for the Blind.
                                National Technical Institute for the Deaf.
                                Gallaudet University.
                                Rehabilitation services and disability
                                    research.
                                Vocational and adult education.
                                Student financial assistance.
                                Federal family education loans.
                                Federal direct student loan program.
                                Higher education.
                                Higher education facilities loans.
                                College housing and academic facilities
                                    loans.
                                Howard University.
                                Historically black college and university
                                    capital financing program.
                                Education research, statistics, and
                                    improvement.
                                Libraries.
                            Department of Health and Human Services:
                                ACF service programs (P.L. 101-501, sec.
                                    657, P.L. 89-73 as amended, sec. 209,
                                    P.L. 96-272).
                            Department of Justice:
                                Working capital fund (28 U.S.C. 527 note).

        \1\ These statutes erroneously refer to ``advance funding''. Since
    these statutes describe and clearly intend to provide advance
    appropriations, the affected accounts are listed here.

        II. Advance funding is budget authority that is to be charged to the
    appropriation in the succeeding year but which authorizes obligations to
    be incurred in the last quarter of the fiscal year if necessary to meet
    higher than anticipated benefit payments in excess of the specific
    amount appropriated for the year. When such budget authority is used, an
    adjustment is made to increase the budget authority for the fiscal year
    in which it is used and to reduce the budget authority of the succeeding
    fiscal year. Essentially, this is a device for avoiding supplemental
    requests late in the fiscal year for certain programs, should the
    appropriations for the current year prove to be low. The table below
    lists those accounts for which advance funding authority is requested in
    the 1997 budget.

                            Department of Labor:
                                Special benefits.
                                Black lung disability trust fund.
                                Federal unemployment benefits and
                                    allowances.
                            Department of Veterans Affairs:
                                Veterans insurance and indemnities.
                                Burial benefits and miscellaneous
                                    assistance.
                                Readjustment benefits.

        III. Forward funding is budget authority that is made available for
    obligation beginning in the last quarter of the fiscal year for the
    financing of ongoing grant programs during the next succeeding fiscal
    year. The budget authority for such programs is included in the budget
    totals for the year in which it is appropriated. This device is often
    used for education programs, so that grants can be made on a school year
    basis. The language providing forward funding for education programs
    will specify that amounts appropriated, in

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    most but not all cases, will not be available until some time into the
    year of the appropriation (e.g., July 1, 1997) and in most cases will
    specify that such amounts will remain available until the end of the
    succeeding fiscal year. In other cases (e.g., Federal Pell grants), the
    funds become available on October 1st but are not normally obligated
    until July 1st or later and are available for obligation for an
    additional year. The table below lists those accounts for which forward
    funding exists or is requested in whole or in part in the 1997 budget.

                            Department of Education:
                                Education for the disadvantaged.
                                School improvement programs.
                                Education reform.
                                Special education.
                                Vocational and adult education.
                                Indian education.
                                Student financial assistance.
                                Education, research, statistics, and
                                    improvement.
                            Department of the Interior:
                                Operation of Indian programs.

        In the training and employment area, forward funding provides
    appropriations for a program year that starts on July 1st of the fiscal
    year of the appropriation. Financing extends through June 30th of the
    following fiscal year. Program years are authorized for training
    programs under the Job Training Partnership Act, grants and activities
    under the School-to-Work Opportunities Act, operation of the State
    Employment Service under section 6 of the Wagner-Peyser Act, and senior
    citizen employment programs under Title V of the Older Americans Act.
    The table below lists accounts for which forward funding is requested in
    the 1997 budget.

                            Department of Labor:
                                Training and employment services.
                                Community service employment for older
                                    Americans.
                                State unemployment insurance and employment
                                    service operations.