[Appendix]
[Other Materials]
[Advance Appropriations, Advance Funding, and Forward Funding]
[From the U.S. Government Printing Office, www.gpo.gov]
THE BUDGET FOR FISCAL YEAR 2002
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 2002 appropriations
acts will become available for programs in 2003 or beyond. Since these
appropriations are not available until after fiscal year 2002, the
amounts will not be included in fiscal year 2002 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 2002, advance appropriations for
fiscal year 2003 and beyond and cites the authorizing statute. Part A
shows the amounts of advance appropriations included in the 2002 Budget.
The Administration proposes to reverse the misleading budget
practice of using advance appropriations simply to avoid spending
limitations (see A Blueprint for New Beginnings, p. 173). Accordingly,
for the accounts listed in part B of the table below, the amount
requested to be appropriated for 2002 is sufficient to provide normal
funding and no advance appropriation for 2003 is requested.
Part C of the table completes OMB's statutory requirements by
providing a listing of accounts for which advance appropriations are
authorized but not requested in the 2002 Budget.
A. Accounts for which advance appropriations are included in the 2002
Budget:
Department of Health and Human Services:
Grants to States for medicaid (42 U.S.C.
1396): $46,602 million for 2003
Payments to States for child support
enforcement and family support programs
(24 U.S.C. Ch. 9): $1,100 million for
2003
Payments to States for foster care and
adoption assistance (P.L. 96-272):
$1,754 million for 2003
Social Security Administration:
Special benefits for disabled coal miners
(30 U.S.C. 921): $108 million for 2003
Supplemental security income program (42
U.S.C. 1381): $10,790 million for 2003
B. Accounts for which 2002 advance appropriations were provided, but for
which no 2003 advance appropriations are
requested:
Department of Education (20 U.S.C. 1223 and 29
U.S.C. 703):
Education for the disadvantaged
School improvement programs
Reading excellence
Special education
Vocational and adult education
Department of Energy:
Elk Hills school lands fund (P.L. 104-106)
Department of Health and Human Services:
Children and families services programs (42
U.S.C. 9834)
Health resources and services (P.L. 106-113)
Department of Housing and Urban Development:
Housing certificate fund (42 U.S.C. 1437f)
Department of Labor:
Training and employment services (29 U.S.C.
2801 et seq.)
Postal Service:
Payment to the Postal Service fund (39
U.S.C. 2401)
C. Accounts authorized to receive advance appropriations but for which
none are requested in the 2002 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): \1\
Education for the disadvantaged
Impact aid
School improvement programs
Indian education
Bilingual and immigrant education
American Printing House for the Blind
National Technical Institute for the Deaf
Gallaudet University
Special education
Rehabilitation services and disability
research
Student financial assistance
Vocational and adult education
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
\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 2002 Budget.
Department of Labor:
Special benefits
Federal unemployment benefits and allowances
Department of Veterans Affairs:
Veterans insurance and indemnities
Compensation and pensions
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, 2002) 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
[[Page 1234]]
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 2002 Budget.
Department of Education:
Education for the disadvantaged
School improvement programs
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 2002
Budget.
Department of Labor:
Training and employment services
State unemployment insurance and employment
service operations