[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 2005
ADVANCE APPROPRIATIONS, ADVANCE FUNDING, AND FORWARD FUNDING
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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 2005 appropriations
acts will become available for programs in 2006 or beyond. Since these
appropriations are not available until after fiscal year 2005, the
amounts will not be included in fiscal year 2005 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 2005, advance appropriations for
fiscal year 2006 and beyond and cites the authorizing statute. Part A
shows the amounts of advance appropriations included in the 2005 Budget.
Part B shows the accounts for which 2005 or 2006 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 2005 Budget.
A. Accounts for which advance appropriations are included in the 2005
Budget:
Department of Education (20 U.S.C. 1223 and 29
U.S.C. 703):
Education for the disadvantaged: $7,383
million for 2006
School improvement programs: $1,435 million
for 2006
Special education: $5,413 million for 2006
Vocational and adult education: $791 million
for 2006
Department of Health and Human Services:
Grants to States for medicaid (42 U.S.C.
1396): $58,517 million for 2006
Payments to health care trust funds: $5,217
million for 2006
Payments to States for child support
enforcement and family support programs
(24 U.S.C. Ch. 9): $1,200 million for
2006
Payments to States for foster care and
adoption assistance (P.L. 96-272):
$1,804 million for 2006
Children and families services program (42
U.S.C. 9834): $1,400 million for 2006
Department of Housing and Urban Development:
Housing Certificate Fund: $4,200 million
for 2006
Department of Labor:
Training and employment services (29 U.S.C.
2801 et seq.): $2,463 million for 2006
Special benefits for disabled coal miners
(30 U.S.C. 921): $81 million for 2006
Postal Service:
Payment to the Postal Service fund (39
U.S.C. 2401): $62 million for 2006
Social Security Administration:
Supplemental security income program (42
U.S.C. 1381): $10,930 million for 2006
B. Accounts for which advance appropriations were provided, but for
which no new advance appropriations are
requested:
Department of Energy: Elk Hills School Lands
Fund
Department of Homeland Security: Biodefense
Countermeasures
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 2005 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
Innovation and Improvement
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
Institute of Education Sciences
\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 2005 Budget.
Department of Labor:
Special benefits for disabled coal miners
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, 2005) 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 2005 Budget.
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Department of Education:
Education for the disadvantaged
School improvement programs
Safe Schools and Citizenship Education
Special education
Vocational and adult education
Student financial assistance
Institute of Education Sciences
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 2005
Budget.
Department of Labor:
Training and employment services
State unemployment insurance and employment
service operations
Veterans employment and training