Budget Resolution in the United States

Budget Resolution

Legislative Definition of Budget Resolution

This Congressional concept is provided by the United States Congress website as a a basic reference document: A measure (provided for by the Congressional Budget Act of 1974, as amended) that sets forth a congressional budget plan, including aggregate budgetary levels, which may be enforced during the subsequent consideration of spending and revenue legislation. It is in the form of a concurrent resolution (e.g., an H.Con.Res or an S.Con. Res), not a law-making vehicle; as such, it is not submitted to the president.

Budget Resolution in the Federal Budget Process

Meaning of Budget Resolution in the congressional and executive budget processes (GAO source): See under Concurrent Resolution on the Budget.

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Concurrent Resolution on the Budget in the Federal Budget Process

Meaning of Concurrent Resolution on the Budget in the congressional and executive budget processes (GAO source): A concurrent resolution adopted by both houses of Congress as part of the annual budget and appropriations process, setting forth an overall budget plan for Congress against which individual appropriations bills, other appropriations, and revenue measures are to be evaluated. As a plan for Congress, the resolution is not presented to the President for signature and does not have the force of law. Pursuant to section 301 of the Congressional Budget Act, as amended (2 U.S.C. § 632), the resolution is expected to establish, for at least 5 fiscal years beginning on October 1 of the year of the resolution, appropriate levels for the following:

•totals of new budget authority and outlays,

•total federal revenues,

•the surplus or deficit in the budget,

•new budget authority and outlays for each major functional category,•the public debt, and

•outlays and revenues for Social Security insurance programs.

The concurrent resolution generally contains budget levels for the 5 fiscal years and may contain reconciliation instructions to specified committees. The concurrent resolution most recently adopted may be revised or affirmed before the end of the year to which it applies, as provided in section 304 of the Congressional Budget Act, as amended (2 U.S.C. § 635). (See also Congressional Budget and Impoundment Control Act of 1974.)

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Congress Adopts a Budget Resolution in the Federal Budget Process

Budget Resolution in the congressional and executive budget processes (GAO source): Typically, during March, the Budget Committees mark-up and report to their respective houses a budget plan in the form of a concurrent resolution on the budget. This budget resolution is drafted using the President’s budget request, information from their own hearings, views and estimates reports from other committees, and CBO’s reports. The budget resolution is required to set forth (for the upcoming fiscal year and for each of at least the next 4 years) the total level of new budget authority, outlays, revenues, the deficit or surplus, the public debt, and spending by functional category. The budget resolution may include reconciliation instructions to the extent necessary to meet the revenue or direct spending targets in the budget resolution.

The budget resolution is considered in each House under special procedures set forth in the Congressional Budget Act. When the Senate and House have both adopted their respective versions of the budget resolution, it is referred to a conference committee to resolve the differences between the two versions. Each chamber must then vote on the conference report. The Congressional Budget Act sets April 15 as the date by which Congress should complete action on the budget resolution; however, in practice, Congress may not meet this date.7 For example, in 2005 Congress adopted the budget resolution for fiscal year 2006 on April 28, 2005. In 1998 (for fiscal year 1999), in 2002 (for fiscal year 2003), and in 2004 (for fiscal year 2005) Congress did not complete action on budget resolutions.8

8The joint explanatory statement accompanying a conference report on the budget resolution includes an allocation of budget authority and outlays to the Appropriations Committees (for discretionary spending) and to each authorizing committee (for direct spending) of the House and Senate. The Appropriations Committees subsequently subdivide their allocation among their subcommittees according to jurisdiction.

The concurrent resolution on the budget does not become law; it is not signed by the President. The aggregate levels of revenues, budget authority, and outlays and the committee allocations are guidelines and targets against which subsequent fiscal legislation—appropriation acts; authorizing legislation that provides budget authority; revenue acts; and, if necessary, reconciliation acts (see below)—is measured.

The Congressional Budget Act contains rules of the House and Senate that implement the priorities agreed to and set in the concurrent resolution on the budget. These rules generally prohibit the consideration of legislation that is not in compliance with the committee allocations or the revenue or spending totals in the resolution. Accordingly, if legislation is out of compliance, it is subject to a point of order and, if the point of order is sustained, Congress is precluded from further consideration of the legislation until it is brought into compliance.9

9If changing economic circumstances or policy requirements dictate, Congress may revise its budget resolution during the fiscal year, thereby altering the spending and revenue totals.

Guide to U.S. Federal Congressional Budget Process

Congressional Budget Process
Budget Committees
Estimates Reports
Budget Resolution
Fiscal Legislation

Guide to Stages of the Federal Budgeting Process

Federal Budget Execution
Federal Budget Development
Executive Budget Formulation
Next Budget Request
Initial Budget Request Materials
OMB Passback Decisions
President Budget Request
Mid-Session Review Document
Congressional Budget Process
Budget Committees
Estimates Reports
Budget Resolution
Fiscal Legislation
Federal Budget Control
Impoundment

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Notes

7 Article I, section 5, clause 2, of the Constitution reserves to each House of Congress the authority to

determine the rules governing its procedures. The Budget Act contains several titles and sections that

affect the internal procedures of the House and Senate enacted under this constitutional rule-making

authority. Congress enacted the Budget Act with the full recognition that each House could change these

rules at any time and in a manner consistent with past practice. Rule changes are usually accomplished

upon adoption of either a simple resolution (for a change that affects one House) or a concurrent

resolution (for changes that may affect both houses). S. Rep. No. 105-67 (revised December 1998).

8 See Bill Heniff, Jr., Congressional Budget Resolutions: Selected Statistics and Information Guide

(Washington, D.C.: Congressional Research Service, Jan. 25, 2005).

9 In fiscal year 1994, Congress began including overall limits on discretionary spending in the budget

resolution, known as spending caps or discretionary caps. Congress established these caps to manage its

internal budget process, while the Budget Enforcement Act (BEA) statutory caps continued to govern for

sequestration purposes. The caps were enforceable in the Senate by a point of order that prohibited the

consideration of a budget resolution that exceeded the limits for that fiscal year. While the BEA limits

expired at the end of fiscal year 2002, Congress continues to use the budget resolution to establish and

enforce overall discretionary spending limits.

Budget Resolution

Budget Resolution in the United States