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

    [[Page 1247]]
                         THE BUDGET FOR FISCAL YEAR 2001

          ADVANCE APPROPRIATIONS, ADVANCE FUNDING, AND FORWARD FUNDING

        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 2001 appropriations
    acts will become available for programs in 2002 or beyond. Since these
    appropriations are not available until after fiscal year 2001, the
    amounts will not be included in fiscal year 2001 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 2001, advance appropriations for
    fiscal year 2002 and beyond and cites the authorizing statute. The
    listing is in two parts: Part A shows the amounts of advance
    appropriations included in the 2001 budget. Part B is a listing of
    accounts for which advance appropriations are authorized but not
    requested in the 2001 budget.
        The Administration proposes to work with the Congress to replace
    certain advance appropriations with up-front budget authority for the
    full amount of the program. This proposal is discussed further in
    Chapter 13, ``Preview Report,'' of the Analytical Perspectives volume of
    the budget.

      A. Accounts for which advance appropriations are included in the 2001
                                                                     budget:
                            Department of Agriculture:
                                National forest system (16 U.S.C. 4601-
                                    6a(i)): $15 million for 2002.
                            Department of Commerce:
                                National Oceanic and Atmospheric
                                    Administration; Procurement, acquisition
                                    and construction: $732 million for 2002;
                                    $705 million for 2003; $706 million for
                                    2004; $657 million for 2005.
                                Public telecommunications facilities,
                                    planning, and construction (47 U.S.C.
                                    305, 91, 392, 606, 721): $110 million
                                    for 2002; $88 million for 2003.
                            Department of Defense:
                                    Military construction, Army: $210
                                        million for 2002; $83 million for
                                        2003; $11 million for 2004.
                                    Military construction, Navy: $69 million
                                        for 2002.
                                    Military construction, Defense-wide:
                                        $231 million for 2002; $147 million
                                        for 2003; $50 million for 2004; $19
                                        million for 2005.
                            Department of Education:
                                Special education (20 U.S.C. 1411): $3,742
                                    million for 2002.\1\
                                Vocational and adult education (20 U.S.C.
                                    2301): $791 million for 2002.\1\
                            Department of Energy:
                                Other nuclear security activities: $40
                                    million for 2003; $49 million for 2004.
                                Science: $300 million for 2002; $232 million
                                    for 2003; $150 million for 2004; $115
                                    million for 2005.
                                Clean coal technology: $236 million for
                                    2002.
                                Elk Hills school land funds: $36 million for
                                    2002; $36 million for 2003; $36 million
                                    for 2004; $60 million for 2005; $60
                                    million for 2006.
                            Department of Health and Human Services:
                                Food and Drug Administration, Salaries and
                                    expenses (21 U.S.C. 393, P.L. 100-607):
                                    $23 million for 2002.
                                Indian health facilities (25 U.S.C. 13, P.L.
                                    83-568, the Snyder Act; Section 301 of
                                    P.L. 94-437, the Indian Health Care
                                    Improvement Act): $18 million for 2002.
                                Disease control, research and training
                                    (Section 321(a) of the Public Health
                                    Service Act): $21 million for 2002; $21
                                    million for 2003.
                                National Institutes of Health: $26 million
                                    for 2002.
                                Grants to States for Medicaid (42 U.S.C.
                                    1396): $36,208 million for 2002.
                                Payments to states for child support
                                    enforcement and family support programs
                                    (24 U.S.C. Ch. 9): $1,000 million for
                                    2002.
                                Low income home energy assistance (P.L 97-
                                    35): $1,100 million for 2002.
                                Payments to States for the child care and
                                    development block grant (42 U.S.C.
                                    9858): $2,000 million for 2002.
                                Children and families services programs (42
                                    U.S.C. 9834): $1,400 million for
                                    2002.\1\
                                Payments to states for foster care and
                                    adoption assistance (P.L 96-272): $1,736
                                    million for 2002.
                            Department of Housing and Urban Development:
                                Housing certificate fund: $4,200 million for
                                    2002.\1\
                            Department of the Interior:
                                National Park Service, Construction and
                                    major maintenance (16 U.S.C. 1-1c, 7a-
                                    7e, 461-467): $21 million for 2002; $17
                                    million for 2003; $11 million for 2004.
                                Assistance to territories (P.L. 94-241, 90
                                    Stat. 272): $10 million for 2002.
                            Department of Justice:
                                Federal Prison System, Buildings and
                                    facilities (18 U.S.C. 4003, 4009, 4010,
                                    4013(a)(4), 4042, 4125; Department of
                                    Justice Appropriations Act, 2000): $791
                                    million for 2002; $535 million for 2003.
                            Department of Labor:
                                Training and employment services (29 U.S.C.
                                    2801 et seq.): $2,463 million for
                                    2002.\1\
                            Department of State:
                                Embassy security, construction, and
                                    maintenance: $650 million for 2002; $800
                                    million for 2003; $950 million for 2004;
                                    $950 million for 2005.
                            Department of Transportation:
                                Federal Aviation Administration, Facilities
                                    and equipment (49 U.S.C. 48101): $638
                                    million for 2002; $590 million for 2003;
                                    $565 million for 2004; $537 million for
                                    2005; $325 million for 2006; $169
                                    million for 2007; $120 million for 2008.
                            Department of the Treasury:
                                Internal Revenue Service, Information
                                    technology investments (5 U.S.C. 3109):
                                    $375 million for 2002.
                            Other Defense Civil Programs:
                                Armed forces retirement home (P.L. 101-510,
                                    1991 Defense Authorization Act): $6
                                    million for 2002.
                            General Services Administration:
                                Federal buildings fund (40 U.S.C. 490(f)):
                                    $219 million for 2002; $163 million for
                                    2003; $96 million for 2004.
                            International Assistance Programs:
                                Debt restructuring: $240 million for 2002;
                                    $135 million for 2003.
                            National Aeronautics and Space Administration:
                                Human space flight (42 U.S.C. 2451, et
                                    seq.): $1,858 million for 2002; $1,452
                                    million for 2003; $1,327 million for
                                    2004; $1,275 million for 2005.
                            National Science Foundation:
                                Major research equipment (42 U.S.C.
                                    1862(a)(1)): $144 million for 2002; $58
                                    million for 2003; $50 million for 2004;
                                    $14 million for 2005.
                            Social Security Administration:
                                Special benefits for disabled coal miners
                                    (30 U.S.C. 921): $114 million for 2002.

    [[Page 1248]]

                                Supplemental security income program (42
                                    U.S.C. 1381): $10,470 million for 2002.
                            Corporation for Public Broadcasting:
                                Corporation for public broadcasting (47
                                    U.S.C. 396): $35 million for 2002; $395
                                    million for 2003.
                            Postal Service:
                                Payment to the Postal Service fund (39
                                    U.S.C. 2401): $67 million for 2002.\1\
                            Smithsonian Institution:
                                Repair, restoration, and alteration of
                                    facilities (20 U.S.C. 53a): $17 million
                                    for 2002; $18 million for 2003.
                                Construction (20 U.S.C. 53a): $2 million for
                                    2002.
     B. Accounts authorized to receive advance appropriations but for which
                                      none are requested in the 2001 budget:
                            Department of Agriculture:
                                Food program administration (42 U.S.C.
                                    1752).
                                Child nutrition programs (42 U.S.C. 1752).
                            Department of Education (20 U.S.C. 1223 and 29
                                    U.S.C. 703):\2\
                                Education reform.
                                Education for the disadvantaged.
                                Impact aid.
                                School improvement programs.
                                Reading excellence.
                                Indian education.
                                Bilingual and immigrant education.
                                American Printing House for the Blind.
                                National Technical Institute for the Deaf.
                                Gallaudet University.
                                Rehabilitation services and disability
                                    research.
                                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 Justice:
                                Working capital fund (28 U.S.C. 527 note).

        \1\ Potential candidate for replacement with up-front budget
    authority for the full amount of the program. See Chapter 13, ``Preview
    Report,'' of the Analytical Perspectives volume of the Budget.
        \2\ 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 2001 budget.

                            Department of Labor:
                                Special benefits.
                                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 most but not all cases, will
    not be available until some time into the year of the appropriation
    (e.g., July 1, 2001) 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 2001 budget.

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

        In the training and employment area, forward funding for youth
    training grant programs provides appropriations for a program year that
    starts on April 1st of the fiscal year of the appropriation. Financing
    extends through June 30th of the following fiscal year. For most other
    training and employment programs, 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 Workforce Investment Act and operation of the State
    Employment Service under section 6 of the Wagner-Peyser Act. The table
    below lists accounts for which forward funding is requested in the 2001
    budget.

                            Department of Labor:
                                Training and employment services.
                                State unemployment insurance and employment
                                    service operations.