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


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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.