[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

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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
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