    [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 2003

          ADVANCE APPROPRIATIONS, ADVANCE FUNDING, AND FORWARD FUNDING

          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 2003 appropriations
    acts will become available for programs in 2004 or beyond. Since these
    appropriations are not available until after fiscal year 2003, the
    amounts will not be included in fiscal year 2003 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 2003, advance appropriations for
    fiscal year 2004 and beyond and cites the authorizing statute. Part A
    shows the amounts of advance appropriations included in the 2003 Budget.
    Part B shows the accounts for which 2003 or 2004 advance appropriations
    were provided but for which no new advance appropriations are 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 2003 Budget.

      A. Accounts for which advance appropriations are included in the 2003
                                                                     Budget:
                            Department of Education (20 U.S.C. 1223 and 29
                                    U.S.C. 703):
                                Education for the disadvantaged: $7,383
                                    million for 2004
                                School improvement programs: $1,765 million
                                    for 2004
                                Special education: $5,072 million for 2004
                                Vocational and adult education: $791 million
                                    for 2004
                            Department of Health and Human Services:
                                Grants to States for medicaid (42 U.S.C.
                                    1396): $51,861 million for 2004
                                Payments to States for child support
                                    enforcement and family support programs
                                    (24 U.S.C. Ch. 9): $1,100 million for
                                    2004
                                Payments to States for foster care and
                                    adoption assistance (P.L. 96-272):
                                    $1,746 million for 2004
                                Children and families services program (42
                                    U.S.C. 9834): $1,400 million for 2004
                            Department of Housing and Urban Development:
                                Housing certificate fund (42 U.S.C. 1437f):
                                    $4,200 million for 2004
                            Department of Labor:
                                Training and employment services (29 U.S.C.
                                    2801 et seq.): $2,463 million for 2004
                            Postal Service:
                                Payment to the Postal Service fund (39
                                    U.S.C. 2401): $31 million for 2004
                            Social Security Administration:
                                Special benefits for disabled coal miners
                                    (30 U.S.C. 921): $97 million for 2004
                                Supplemental security income program (42
                                    U.S.C. 1381): $11,080 million for 2004
    B. Accounts for which 2003 or 2004 advance appropriations were provided,
                                               but for which no new advance
                                               appropriations are requested:
                            Department of Energy:
                                Elk Hills school lands fund (P.L. 104-106)
                                Clean coal technology
                            Corporation for Public Broadcasting
                                    (Communications Act of 1934)
     C. Accounts authorized to receive advance appropriations but for which
                                            none were provided and none are
                                               requested in the 2003 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\
                                Impact aid
                                Indian education
                                English language acquisition
                                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
                                    assessment

        \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 2003 Budget.

                            Department of Labor:
                                Special benefits
                                Federal unemployment benefits and allowances

        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, 2003) 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 2003 Budget.

    [[Page 1202]]

                            Department of Education:
                                Education for the disadvantaged
                                School improvement programs
                                Special education
                                Vocational and adult education
                                Student financial assistance
                                Educational research, statistics, and
                                    assessment
                                English language acquisition
                            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 2003
    Budget.

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