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NEW PRESIDENTS' BUDGET REVISIONS CAN BE INFLUENTIAL, CRS SAYS.

OCT. 27, 1988

88-661 GOV

DATED OCT. 27, 1988
DOCUMENT ATTRIBUTES
  • Institutional Authors
    Congressional Research Service
  • Index Terms
    NITA
  • Jurisdictions
  • Language
    English
  • Tax Analysts Document Number
    Doc 88-9090
  • Tax Analysts Electronic Citation
    88 TNT 236-19
Citations: 88-661 GOV

 

=============== SUMMARY ===============

 

Budget revisions sent to Congress by incoming presidents can play an important role in the Federal budget process, according to an October 7 Congressional Research Service (CRS) report. Since the inauguration of Dwight Eisenhower, the report states, incoming presidents customarily have submitted to Congress revisions of their predecessors' budgets. The CRS study quotes an analysis by James P. Pfiffner, which concludes that, unless a new President submits revisions, he "will not have a real chance to change budget priorities until midway through his first term."

The CRS reports that the presentation and timing of budget revisions has evolved considerably since the piecemeal changes offered by Eisenhower, who sent Congress numerous changes, culminating with a press conference on April 30 of his inauguration year. John F. Kennedy consolidated and accelerated his revisions, offering the Congress two special messages and thirteen budget amendment transmittals by March 24. Richard M. Nixon further tightened the package to four items, although he submitted them slightly later on April 12. Both Jimmy Carter and Ronald Reagan offered their revisions in one-volume documents, submitted by February 22 and March 10, respectively.

 

=============== FULL TEXT ===============

 

CRS REPORT FOR CONGRESS

 

 

Virginia A. McMurtry

 

Specialist in American National Government

 

James V. Saturno

 

Analyst in American National Government

 

Government Division

 

 

October 7, 1988

 

 

THE PRESIDENT'S BUDGET SUBMISSION:

 

FORMAT, DEADLINE, AND TRANSITION YEARS

 

 

SUMMARY

The Budget and Accounting Act of 1921, as amended, requires that the President submit a consolidated budget proposal to Congress each year. The list of requirements for information to be included in the President's Budget has expanded over the years, and now numbers over twenty. The collection of documents included in the President's submission has also grown, now consisting of seven volumes: Budget, Budget-in-Brief, Appendix, Special Analyses, Major Policy Initiatives, Management, and Historical Tables.

The deadline for transmitting the President's Budget to Congress has changed over the years since the Budget and Accounting Act was passed in 1921. The current timetable, calling for release of the President's Budget no later than the first Monday after January 3rd, was stipulated in the Balanced Budget and Emergency Deficit Control Act of 1985.

There is no format requirement for submission of budget revisions following the inauguration of a new President. However, it has become an established practice for a new President, following the inauguration, to submit recommendations for revisions of the so- called "lame-duck budget" submitted by his predecessor. The presentation of these budget revision requests has become more orderly, too. President Eisenhower received criticism in Congress for his piecemeal submissions, while there was less consternation over format when President Kennedy included a summary listing of thirteen separate budget amendments as an attachment to a special message to Congress. The four-item package submitted by President Nixon reflected further consolidation. Finally, during both the Ford/Carter and Carter/Reagan transitions, a single volume was forwarded to Congress, detailing the suggested budget revisions and issued by the Office of Management and Budget.

CONTENTS

INTRODUCTION

 

 

EVOLUTION OF FORMAT AND CONTENT

 

 

SUBMISSION DEADLINES AND COMPLIANCE

 

 

SUBMISSION OF TRANSITION BUDGETS

 

Revisions before 1950

 

The Eisenhower Experience

 

Subsequent Transition Budgets

 

 

CONCLUSION

 

 

This report constitutes a revised version of work originally

 

prepared for the Senate Budget Committee and is

 

produced for general distribution with its consent.

 

 

THE PRESIDENT'S BUDGET SUBMISSION: FORMAT, DEADLINE, AND TRANSITION YEARS

INTRODUCTION

According to the characterization in a recent journal article, the President's Budget manifests three dimensions -- it is a political document, a prediction, and an institution:

As a political document, its version of the past and vision of the future are open to criticism. As a prediction, its projections are arguable in the light of experience and professional judgment. As an instruction, its contribution to the general capacity of government is subject to debate. 1

Of special interest in this report is the institutional focus: "Above all, the president's budget is a statement of account to the nation, a tangible standard against which to measure responsibility." 2

The formal requirement for the preparation and submission to Congress of a consolidated budget proposal by the President dates back to the Budget and Accounting Act of 1921. 3 Previously, the Treasury Department simply collected agency budget requests in the "Born of Estimates." The individual Federal agencies then negotiated directly with the Congress to gain approval for their funding requests. The 1921 law also created a new budget agency for the President, the Bureau of the Budget, and assigned to it a central role: "to assemble, correlate, revise, reduce, or increase the estimates of the several departments or establishments." 4 In 1970 the budget agency was reorganized as the Office of Management and Budget. 5

This report reviews the evolution of requirements and practices relating to the submission of the President's Budget to Congress. In addition to a discussion of changing formats and deadlines for the Budget, the subject of budget revisions following the inauguration of a new President also is addressed. Although there is no formal requirement for submission of a transition budget by a newly elected President, since the 1950's it has become customary for a President to submit recommendations for budget revisions following the inauguration.

EVOLUTION OF FORMAT AND CONTENT

The list of requirements for the President to incorporate in the budget submission has grown over the years. The original 1921 law enumerated eight subjects to be "set forth in summary and in detail" in the President's budget submission, as follows: (a) estimates of the expenditures and appropriations viewed necessary by the President for supporting the Government in the coming fiscal year (with estimates for the legislative branch and the Supreme Court included without revision by the President); (b) estimates of receipts during the coming year, under existing 1aw and under any revenue proposals in the Budget; (c) expenditures and receipts during the last completed fiscal year; (d) estimates of expenditures and receipts for fiscal year in progress; (e) balances of any appropriations remaining available, as of November 1st of current year; (f) balanced statements of the condition of the Treasury at the end of the last completed fiscal year, and estimates for the end of the year in progress, and projections for the ensuing year; (g) "all essential facts regarding the bonded and other indebtedness of the Government;" and finally, (h) "such other financial statements and data as in his opinion are necessary or desirable in order to make known in all practicable detail the financial condition of the Government." 6

The Budget and Accounting Procedures Act of 1950 revised and expanded the original purview, most notably to require that the Budget subsequently include the functions and activities of the Government, along with any other desirable classification of data. 7 The Congressional Budget and Impoundment Control Act of 1974 added additional requirements for the President's budget submission, to reflect items included in the congressional budget resolution (total new budget authority and outlays, functional allocations, budget surplus or deficit, total revenue, and the public debt). 8 The list of provisions President's Budget now exceeds two dozen. 9

With regard to the format and number of documents constituting the budget submission of the President, Chart l provides an overview. From Fiscal Year 1923, with the first consolidated budget prepared pursuant to the 1921 law, until Fiscal Year 1951, the President's budget submission to Congress generally consisted of a single volume. 10 In Fiscal Year 1951, the "Budget in Brief" was initiated, with the justification of conveying "the principal facts" about the Federal Budget in language understandable to the average citizen:

The Budget is designed primarily as the basis for action by the Congress. It is therefore detailed, complex, and expressed in technical language. This booklet, "The Federal Budget in Brief," is intended to meet the frequently expressed need of many individuals and groups for a brief summary in nontechnical terms of the basic facts on where the Government's money comes from and where it is spent. 11

The following year, fiscal 1952, saw the introduction of the Budget "Appendix," initially a relatively thin volume (under 400 pages), addressing new content requirements established by the 1950 Act: "Information as to obligations, classified according to the uniform object categories, and (b) information as to the personal services by grade and title." 12 For more than a decade, from FY 1951-FY 1962, the Appendix retained this size and function, with the regular Budget containing most of the program details (and appearing as a thicker 9 x 12 inch volume). Beginning with Fiscal Year 1963, the Budget was changed to the current, more compact 5-1/2 x 9 inch format, and the Appendix became the 9 x 12 inch volume containing the detailed presentation of the President's budget submission.

As is indicated in the chart, in subsequent years more volumes became added to the stack constituting the President's annual budget submission to Congress. By fiscal Year 1989, they numbered seven. In addition to the Budget, the Appendix, and the Budget in Brief, there are the Special Analyses, the Historical Tables, Major Policy Initiatives, and Management volumes. 13

  Chart 1. Documents Included in the President's Budget Submission,

 

                       FY 1923 -- FY 1989 1

 

_____________________________________________________________________

 

 

Fiscal  Budget  Budget  Appen-  Special  Major  Manage- Hist-  Other

 

 Year          in Brief  dix    Analysis Themes  ment   orical

 

                  2    3      4      5          Tables

 

_____________________________________________________________________

 

 

1947      x       --     --       --       --     --     --     x 6

 

1948      x       --     --       --       --     --     --     --

 

1949      x       --     --       --       --     --     --     --

 

1950      x       --     --       --       --     --     --     --

 

 

1951      x       x      --       --       --     --     --     --

 

1952      x       x      x        --       --     --     --     --

 

1953      x       x      x        --       --     --     --     --

 

1954      x       x      x        --       --     --     --     --

 

 

1955      x       x      x        --       --     --     --     --

 

1956      x       x      x        --       --     --     --     --

 

1957      x       x      x        --       --     --     --     --

 

1958      x       x      x        --       --     --     --     --

 

 

1959      x       x      x        --       --     --     --     x 7

 

1960      x       x      x        --       --     --     --     x 7

 

1961      x       x      x        --       --     --     --     x 7

 

1962      x       x      x        --       --     --     --     x 7

 

 

1963      x       x      x        --       --     --     --     x 7

 

1964      x       x      x        --       --     --     --     x 7

 

1965      x       x      x        --       --     --     --     x 7

 

1966      x       x      x        --       --     --     --     x 7

 

 

1967      x       x      x        x        --     --     --     x 7

 

1968      x       x      x        x        --     --     --     x 7

 

1969      x       x      x        x        --     --     --     x 7

 

1970      x       x      x        x        --     --     --     x 7

 

 

1971      x       x      x        x        --     --     --     x 8

 

1972      x       x      x        x        --     --     --     x 7

 

1973      x       x      x        x        --     --     --     x 7

 

1974      x       x      x        x        --     --     --      --

 

 

1975      x       x      x        x        --     --     --      --

 

1976      x       x      x        x        --     --     --      --

 

1977      x       x      x        x        --     --     --     x 9

 

1978      x       x      x        x        --     --     --     x/10/

 

1979      x       x      x        x        --     --     --     --

 

1980      x       x      x        x        --     --     --     --

 

1981      x       x      x        x 11   --     --     --     --

 

1982      x       x      x        x        --     --     --     --

 

 

1983      x       x      x        x 12   x      --     --     --

 

1984      x       x      x        x        x      --     --     --

 

1985      x       x      x        x        x      --     --     --

 

1986      x       x      x        x        x      x      x      --

 

 

1987      x       x      x        x        x      x      x      --

 

1988      x 13  x      x        x        x      x      x      --

 

1989      x       x      x        x        x      x      x      --

 

___________________________________________________________________

 

 

SOURCE: Budget of the United States Government, FY 1923 - FY 1989.

 

FOOTNOTES TO CHART 1

 

 

1 For fiscal years prior to those shown in the chart (FY 1923 to FY 1946), the Budget of the United States Covernment was prepared as a single volume. Additional volumes have been added since that time as enumerated in the table.

2 The Budget in Brief was introduced in FY 1951 to provide a simplified version of the Budget for the general public.

3 The Budget Appendix was first introduced in FY 1952 to show certain details of the budget. For FY 1963, the format of the budget presentation was changed so that the volume designated the Budget appeared in a "compact" format and the Appendix provide comprehensive details of the entire budget.

4 "Special Analyses" was introduced as a separate section of the President's Budget for FY 1947, and continued as such until it was established as a separate volume for FY 1967.

5 For FY 1983 - FY 1985 this volume was titled Major Themes and Additional Details; since FY 1986 it has been titled Major Policy Initiatives.

6 For FY 1947 A Corporation Supplement, dealing with wholly owned Government corporations, was presented as a separate volume.

7 For FY 1959 - FY 1973, the municipal budget of the District of Columbia was presented as a separate volume. Prior to FY 1959, the DC budget was included as an integral part of the U.S. budget.

8 In addition to the DC budget, for FY 1971, a Supplement concerning salary recommendations was included.

9 For FY 1977 the budget documents included a volume titled "Seventy Issues."

10 For FY 1978 the budget documents included a volume titled "Issues '78" as well as a Supplement concerning salary recommendations.

11 For FY 1981 "Special Analyses" was published as two volumes, the second was titled "Major Accomplishments."

12 For FY 1983 special analyses were published individually rather than as a single volume.

13 An abbreviated version of the Budget was released January 5, 1987, and a more comprehensive Budget for FY88 - Supplement version was released January 28, 1987 along with all other budget documents for FY 1988.

SUBMISSION DEADLINES AND COMPLIANCE

The deadline for transmitting the President's Budget to Congress has also been modified over the years. Originally, Section 201 of the 1921 law required transmittal of the President's Budget at the very beginning of each regular session: "The President shall transmit to Congress on the first day of each regular session, the Budget. . . ." 14 Among the amendments contained in the Budget and Accounting procedures act of 1950 was a change in the timetable for submission. As provided in the 1950 legislation, Sec. 201 was amended to read: "The President shall transmit to Congress during the first fifteen days of each regular session, the Budget. . . ." 15 This "deadline" for submission of the President's Budget remained in effect for three and a half decades.

Then concern about the submission deadline came to focus on the timing of the President's Budget transmittal in the context of the congressional budget process, as will be discussed shortly. Recently, there has also been some concern with the feasibility of delivering the President's Budget on schedule when final congressional action on appropriations measures is delayed beyond the start of a new fiscal year on October 1st. 16

The Balanced Budget and Emergency Deficit Control Act of 1985 17 incorporated a series of amendments relating to the budget process, including moving up the date for submission of the President's Budget. 18 Sec. 241 of the 1985 law replaced the "first fifteen days of session" provision with the following: "On or before the first Monday after January 3 of each year (or on or before February 5 in 1986)." 19

To assist in reviewing the general record for compliance with the submission deadlines for transmittal of the President's Budget, Table 1 provides data on the dates of submission for Fiscal Year 1923 through fiscal Year 1989. The original provision for submission of the Budget on the day that Congress convened was followed every year it remained in effect from passage of the 1921 Act until the 1950 amendments. During the first dozen years after 1921 Congress convened for a new session in December, so from fiscal years 1923 through 1934 the Budget was submitted the first week of December, while the Presidential transitions were delayed until March.

                              Table 1:

 

 

              Dates of Presidential Budget Submissions,

 

                          FY 1923 - FY 1989

 

____________________________________________________________________

 

                                              Enactment of extension

 

                                   Budget     ______________________

 

                                   submitted

 

Fiscal   Date of         Congress  before     Extended    Public Law

 

year 1 submission 2  convened  deadline   deadline    number

 

______________________________________________________________________

 

 

HARDING (Republican) -

 

FY 1923   12/05/21       12/05/21  yes

 

FY 1924   12/04/22       12/04/22  yes

 

 

COOLIDGE (Republican) -

 

FY 1925   12/03/23       12/03/23  yes

 

FY 1926   12/01/24       12/01/24  yes

 

FY 1927   12/07/25       12/07/25  yes

 

FY 1928   12/06/26       12/06/26  yes

 

FY 1929   12/05/27       12/05/27  yes

 

FY 1930   12/03/28       12/03/28  yes

 

 

HOOVER (Republican) -

 

FY 1931   12/02/29       12/02/29  yes

 

FY 1932   12/01/30       12/01/30  yes

 

FY 1933   12/07/31       12/07/31  yes

 

FY 1934   12/05/32       12/05/32  yes

 

 

ROOSEVELT (Democrat) -

 

FY 1935   01/03/34       01/03/34  yes

 

FY 1936   01/03/35       01/03/35  yes

 

FY 1937   01/03/36       01/03/36  yes

 

FY 1938   01/05/37       01/05/37  yes

 

FY 1939   01/03/38       01/03/38  yes

 

FY 1940   01/05/39       01/05/39  yes

 

FY 1941   01/03/40       01/03/40  yes

 

FY 1942   01/03/41       01/03/41  yes

 

FY 1943   01/05/42       01/05/42  yes

 

FY 1944   01/06/43       01/06/43  yes

 

FY 1945   01/10/44       01/10/44  yes

 

FY 1946   01/03/45       01/03/45  yes

 

 

TRUMAN (Democrat) -

 

FY 1947   01/14/46       01/14/46  yes

 

FY 1948   01/03/47       01/03/47  yes

 

FY 1949   01/06/48       01/06/48  yes

 

FY 1950   01/03/49       01/03/49  yes

 

FY 1951   01/03/50       01/03/50  yes

 

FY 1952   01/15/51       01/03/51  yes

 

FY 1953   01/21/52       01/08/52  yes

 

FY 1954   01/09/53       01/03/53  yes

 

 

EISENHOWER (Republican) 3 -

 

FY 1955   01/21/54       01/06/54  yes

 

FY 1956   01/17/55       01/05/55  yes

 

FY 1957   01/16/56       01/03/56  yes

 

FY 1958   01/16/57       01/03/57  yes

 

FY 1959   01/13/58       01/07/58  yes

 

FY 1960   01/19/59       01/07/59  yes

 

FY 1961   01/18/60       01/06/60  yes

 

FY 1962   01/16/61       01/03/61  yes

 

 

KENNEDY (Democrat) 4 -

 

FY 1963   01/18/62       01/10/62  yes

 

FY 1964   01/17/63       01/09/63  yes

 

 

JOHNSON (Democrat) -

 

FY 1965   01/21/64       01/07/64  yes

 

FY 1966   01/25/65       01/04/65  no          01/25/65   89-1 5

 

FY 1967   01/24/66       01/10/66  yes

 

FY 1968   01/24/67       01/10/67  yes

 

FY 1969   01/29/68       01/15/68  yes

 

FY 1970   01/15/69       01/03/69  yes

 

 

NIXON (Republican) 6 -

 

FY 1971   02/02/70       01/19/70  yes

 

FY 1972   01/29/71       01/21/71  yes

 

FY 1973   01/24/72       01/18/72  yes

 

FY 1974   01/29/73       01/03/73  no          01/29/73   93-1 7

 

FY 1975   02/04/74       01/21/74  yes

 

 

FORD (Republican) -

 

FY 1976/8/02/03/75       01/14/75  yes

 

FY 1977   01/21/76       01/19/76  yes

 

FY 1978   01/17/77       01/04/77  yes

 

 

CARTER (Democrat) 9 -

 

FY 1979   01/20/78       01/19/78  yes

 

FY 1980   01/22/79       01/15/79  yes

 

FY 1981   01/28/80       01/03/80  no          01/28/80   96-186 10

 

FY 1982   01/15/81       01/05/81  yes

 

 

REAGAN (Republican) 11 -

 

FY 1983   02/08/82       01/25/82  yes

 

FY 1984   01/31/83       01/03/83  no          01/31/83   97-469 12

 

FY 1985   02/01/84       01/23/84  yes

 

FY 1986   02/04/85       01/03/85  no          02/04/85   99-1 13

 

FY 1987   02/05/86       01/21/86  yes

 

FY 1988   01/05/87 14  01/06/87  yes

 

FY 1989   02/18/88       01/25/88  no 15

 

 

SOURCES: Budget of the United States Government, Fiscal Years 1923-1989; Calendars and Documents of the U.S. House of Representatives, 67th-100th Congresses; Congressional Directory, 1987-1988.

 

FOOTNOTES TO TABLE 1

 

 

1 Prior to FY 1977 the fiscal year ran from July 1 to June 30. The Congressional Budget and Impoundment Control Act of 1974 (P.L. 93-344) changed the fiscal year to October 1 to September 30.

2 The Budget and Accounting Act of 1921 (P.L. 67-13) required the President to submit an annual Budget request to Congress on the day Congress convened for a regular session. This was amended by the Budget and Accounting Procedures Act of 1950 (P.L. 81-784), to require that the President transmit his Budget within 15 days after a session convened beginning with FY 1952. The Balanced Budget and Emergency Deficit Control Act of 1985 (P.L. 99-177) further amended this to require that the Budget be submitted by February 5, 1986, in the case of FY 1987, and by the first Monday after January 3rd for later fiscal years. See 31 U.S.C. 1105 (a).

3 President Eisenhower submitted a number of separate budget revision requests during April of 1953, and then announced at a press conference on April 30, that the changes he had previously requested in a piecemeal fashion, amounted to $8.5 billion less than President Truman's FY 1954 budget request. The text of his budget statement was reprinted in the New York Times on May 1, 1953 (p. 9).

4 President Kennedy submitted a special message containing budget revisions on March 24, 1961 (House Document 87-120). This consolidated the proposals included in several other transmittals to Congress outlining more specific budget amendments for individual departments for FY 1962 (House Documents 87-95, 87-97, 87-101, 87- 112, 87-113, 87-114, 87-115, 87-118, 87-121, 87-124, 87-125, 87-128, 87-129). In addition he submitted a second special message to Congress containing recommendations relating to the defense budget on March 28, 1961 (House Document 87-123).

5 Enacted January 13, 1965.

6 President Nixon transmitted his budget revisions for FY 1970 on April 15, 1969 (House Documents 91-98, 91-99, 91-100 and 91-101).

7 Enacted January 19, 1973.

8 Including Transition Quarter (July 1, 1976 - September 30, 1976).

9 President Carter transmitted his budget revisions for FY 1978 on February 22, 1977 (House Document 95-77).

10 Enacted January 8, 1980.

11 President Reagan transmitted his budget revisions for FY 1982 on March 10, 1981 (House Document 97-26).

12 Enacted January 14, 1983.

13 Enacted January 9, 1985.

14 In order to ensure that the President's Budget was transmitted by the required date, the budget documents wee submitted in two stages. An abbreviated version of the Budget was submitted on January 5, 1987, along with the budget message. A more comprehensive Budget for FY88 - Supplement version followed on January 28, 1987, along with the other budget documents for FY 1988.

15 On the day of the deadline for submission of the President's FY 1989 budget, January 4, 1988, OMB Director James C. Miller III transmitted a letter to Congress explaining that the lateness of final action on appropriations for FY 1988 (P.L. 100- 202), as well as the Omnibus Budget Reconciliation Act of 1987 (P.L. 100-203) and the Bipartisan Budget Summit Agreement made it impossible to transmit the President's FY 1989 budget by the statutory deadline, and that it would be delayed until mid-February (Executive Communication EC-2455).

The Twentieth Amendment to the U.S. Constitution ratified January 23, 1933, eliminated the so-called "lame-duck sessions," providing for the ending of presidential terms at noon on January 20, and for the ending of congressional terms at noon on January 3rd. The Amendment also stipulated that annual congressional sessions were to convene on January 3rd, unless Congress "shall by law appoint a different day." So from fiscal year 1935 through fiscal year 1951, when the deadline for budget submission was changed by amendments to the 1921 law, the Budget was transmitted during the first week in January with the exceptions of FY 1945 and FY 1947 when Congress convened later.

From 1950 until 1986, when the Budget was due within fifteen days after Congress convened, the deadline was generally but not always met. In five years (FY 1966, FY 1974, FY 1981, FY 1984 and FY 1986) the timetable was not adhered to, but Congress in each instance enacted legislation to extend the deadline. There has been insufficient experience under the recently revised deadline to suggest firm trends, but the "first week in January" delivery deadline may prove especially difficult to meet when final action on appropriations measures slides beyond the beginning of the new fiscal year. 20

SUBMISSION OF TRANSITION BUDGETS

There is no formal requirement for submission of budget revisions following inauguration of a new President. The issue apparently has not received much attention in deliberations surrounding those laws establishing and then modifying the submission deadlines for the President's Budget. 21 But over the years it has become customary for a President, following the inauguration, to submit recommendations for revisions of the budget submitted by his predecessor.

REVISIONS BEFORE 1950

In the first dozen years following 1921, before the ratification of the Twentieth Amendment in 1933, the timing of the lame-duck session and then the Presidential inauguration effectively precluded transition budgets. During this period, given the time lag of some three months between the convening of a session of Congress and the concurrent submitting of the budget in December, and the beginning of a new President's term in March, there was no real opportunity for an incoming President to submit a revised Budget for the fiscal year beginning less than four months later, on July 1. Actually, only one regular Presidential transition occurred during these twelve years, that of President Hoover in March of 1929, since Vice President Coolidge became President in August of 1923, following the death of President Harding.

There were only two Presidential transitions during the era from 1933 until 1950 (with the changes in the content and submission deadline requirements for the Budget: President Franklin Roosevelt in March of 1933 and President Truman in April of 1945, and neither submitted budget revisions following their inaugurations. However, it is interesting to note that President Roosevelt's Budget Message for FY 1935, submitted on January 3, 1934, included a supplemental request for FY 1934, a Budget originally transmitted by President Hoover. 22

In regard to budget revisions following a presidential transition, Table 1 suggests the importance of the political context. Since 1950 party control of the Presidency has changed hands between the Democrats and Republicans five times: from Truman to Eisenhower in 1953, from Eisenhower to Kennedy in 1961, from Johnson to Nixon in 1969, from Ford to Carter in 1977, and from Carter to Reagan in 1981. In each of these instances some sort of request for budget revisions was forwarded to Congress. Over the years, the format of these transition Budgets also changed, from piecemeal submissions to consolidated messages (see Table 2). The following sections review the evolution of budget revisions following Presidential transitions.

                              Table 2.

 

 

        Timing and Format of Presidential Transition Budgets

 

___________________________________________________________________

 

             Date of

 

             outgoing     Date of

 

             President's  revised   Days

 

             budget       budget    in

 

President    message      message   office       Format

 

____________________________________________________________________

 

 

Eisenhower   01/09/53     04/30/53   100     piecemeal submissions,

 

                                             followed by a budget

 

                                             message given at a press

 

                                             conference

 

 

Kennedy      01/16/61     03/24/61    63     piecemeal submissions,

 

                                             followed by

 

                                             comprehensive budget

 

                                             messages for domestic

 

                                             and defense spending

 

 

Johnson        --            --       --     --

 

 

Nixon       01/15/69      04/12/69    82     budget message, followed

 

                                             by four-part request

 

 

Ford        02/04/74      11/26/74   119     consolidated budget

 

                                             message

 

 

Carter      01/17/77      02/22/77    33     consolidated budget

 

                                             message

 

 

Reagan      01/15/81      03/10/81    49     consolidated budget

 

                                             message

 

____________________________________________________________________

 

 

SOURCES: For President Eisenhower, New York Times on May 1, 1953, p. 9; for President Kennedy, House Documents 87-95, 87-97, 87- 101, 87-112, 87-113, 87-114, 87-115, 87-118, 87-120, 87-121, 87-123, 87-124, 87-125, 87-128, and 87-129; for President Nixon, House Documents 91-98, 91-99, 91-100, and 91-101; for President Ford, House Document 93-398; for President Carter, House Document 95-77; and for President Reagan, House Document 97-26.

THE EISENHOWER EXPERIENCE

President Truman transmitted his last Budget, for Fiscal Year 1954, on January 9, 1953. President Eisenhower suggested a number of separate budget revision requests in the coming weeks, but provided no composite view of his recommendation until a press conference on April 30. The piecemeal manner of relaying the proposed changes, along with the lack of systematic documentation, created special consternation and criticism in Congress concerning this initial effort at "transition budgeting," as detailed below.

President Eisenhower submitted a series of revised budget requests for various agencies in the spring of 1953. 23 The process of developing recommendations for budget revisions commenced on February 3, 1953, with a directive from Bureau of the Budget Director Joseph Dodge to agency heads. 24 Congressional Quarterly emphasized the importance of this development, reporting: "For the first time in history, according to the Budget Bureau, Congress had budget estimates from two Presidents to consider." 25

However, the piecemeal and nonstandardized style of the Eisenhower Administration in transmitting the requested budget revisions in 1953 led to some criticism in Congress. As an indication of this frustration, on March 16, Senator James Murray (Montana- Democrat) introduced S. Con. Res. 18, requesting the President ". . . in accordance with the Budget and Accounting Act, 1921, as amended, to transmit to the Congress by April 20, 1953, such revisions in or amendments to, the budget transmitted on January 9, 1953, as he may deem appropriate." 26 On April 9, Sen. Murray again decried the absence of a comprehensive statement from the Administration regarding its proposed budget revisions; noting "we [in Congress] are still in the dark," and continuing: "The only information that has been provided to the Congress is in the form of separate and scattered pieces of testimony submitted in the secrecy of the Appropriations Committee of the other House." 27 Senator Murray then offered his own compilation of budget revisions, "an incomplete summary based entirely on newspaper reports or on testimony received by the House Appropriations Committee." 28

There was discontent in the House as well. On April 21, Representative Clarence Cannon (Missouri-Democrat and ranking minority member of the Appropriations Committee), complained about the absence of formal budget revisions from the Eisenhower Administration during debate on an appropriations measure. 29 Eventually, at a press conference on April 30, 1953, President Eisenhower provided a statement on the budget and announced that his requested budget revisions amounted to a total cut of $8.5 billion. 30

SUBSEQUENT TRANSITION BUDGETS

There appeared to be less controversy concerning format, if not content, of the President's requested budget revisions subsequently. President Kennedy, in his first State of the Union Message on January 30, 1961, acknowledged the limitations imposed on him by the previous budget submission for FY 1962, when observing: "Nevertheless, a new Administration must of necessity build on the spending and revenue estimates already submitted." 31 On March 24, he transmitted a Special Message to the Congress on Budget and Fiscal Policy, in which he noted omissions and unrealistic assumptions in the budget submitted by his predecessor, along with the infeasibility of presenting a "wholly new budget in his requested revisions. 32 An attachment to this message, titled "Changes in the Fiscal 1962 Budget," provided a consolidated summary of proposed revisions previously conveyed to Congress in thirteen separate transmittals, detailing specific FY 1962 budget amendments for individual departments. 33 A few days later President Kennedy submitted a second special message to Congress, containing recommendations relating to the defense budget. 34

President Nixon sent a message to Congress on April 12, 1969, proposing changes in the FY 1970 budget. 35 This was followed on April 15, 1969, by the transmittal to Congress of four additional documents outlining his budget revisions including (1) amendments outlining proposed changes in the January Budget for all Executive Branch agencies except the Department of Justice; (2) amendments to the District of Columbia Budget; (3) amendments to the Justice Budget for programs "to combat lawlessness"; and (4) a request for supplemental FY 1969 appropriations to pay claims and judgments against the United States. 36 As reported by Congressional Quarterly, detailed figures on the revisions were available from the Budget Bureau and other Executive Branch agencies on April 15th as well. 37

The use of the label "Lame-Duck Budget" dates back at least to the Ford-Carter transition in 1977. Following the submission of the Last ford budget, on January 17, 1977, National Journal published an article titled "The Lame-Duck Budget that Probably Won't Last a Month." 38 As expected, President Carter submitted a budget for FY 1978 with significant revisions on February 22, 1977. 39

President Reagan addressed a Joint Session of the Congress on the Program for Economic Recovery ("America's New Beginning"), on February 18, 1981. On March 10, 1981, he transmitted his budget revisions to Congress, along with a report of new budget deferrals and proposed rescissions. 40 Both the Carter and Reagan revisions were printed in consolidated documents of 100-plus pages by the Office of Management and Budget. 41

In addition to Presidential transitions following elections since 1960, there were two transitions with Vice Presidents becoming President: Johnson following the death of Kennedy in 1963, and Ford following the resignation of Nixon in 1974. In early 1964 President Johnson included a supplemental request for FY 1964 with his own budget message for FY 1965. 42 After succeeding to the Presidency on August 9, 1974, President Ford submitted several messages to Congress in the fall of 1974, requesting rescissions and urging cutbacks in pending appropriations. On November 26th, he transmitted a Special Message on Budget Restraint to Congress along with over two hundred pages of budget details concerning proposed impoundment actions (including some proposed changes in still pending appropriations measures). 43

CONCLUSION

Beginning with President Eisenhower, it became customary for an incoming President to submit budget revisions to Congress. The presentation of these budget revision requests transmitted by an incoming President also evolved over the years, from the rather elusive piecemeal submissions by President Eisenhower, the two special messages and thirteen budget amendment transmittals of President Kennedy, further consolidation reflected in the four item package submitted by President Nixon. Eventually, a single OMB-issued budget revision document emerged in the Carter and Reagan transitions.

Also, both Eisenhower and Kennedy used a special budget message as a vehicle for summation of previously identified budget revisions. Since Nixon, budget messages have been more integrated with proposed revisions and have appeared either before or along with other actions in a manner similar to submissions in nontransition years.

Recent studies of the Presidential transition process reflect increasing awareness of the important role to be played by an incoming President's proposed budget revisions. One study advises that budget planning should be a top priority of the transition team and that liaison between staff of the incoming President and career OMB personnel concerning the details of revisions should commence as soon as possible after the November election. 44 Unless a new President can act quickly to propose changes in the inherited lame- duck budget for the fiscal year to begin October l before further congressional actions occur following the inauguration, he "will not have a real chance to change budget priorities until midway through his first term." 45

 

FOOTNOTES

 

 

1 Caiden, Naomi. From the Summit: The President's Budget for 1989. Public Budgeting and Finance, v. 8, Summer 1988. p. 3.

2 Ibid. p. 3.

3 Public Law 67-14, June 10, 1921; 42 Stat 20; 31 U.S.C. 1105(a).

4 42 Stat. 22.

5 Reorganization Plan No. 2 of 1970: Office of Management and Budget and Domestic Council. May 23, 1970. 35 F.R. 7959.

6 Budget and Accounting Act of 1921, 42 Stat. 21, Sec. 201.

7 Public Law 81-784, 64 Stat. 832, Sept. 12, 1950.

8 Public Law 93-344, 88 Stat. 1037, Dec. 12, 1974, Secs. 601 and 603. Other sections in Title VI provided further amendments to the Budget and Accounting Act.

9 For the listing, see 31 U.S.C. 1105. Public Law 97-258, Sept. 13, 1982, An Act to Revise, Codify, and Enact Without Substantive Change Certain General and Permanent Laws, Related to Money and Finance, repealed certain sections in Title VI of the 1974 law, as well as the Provisions in the 1921 and 1950 laws relating to the President's Budget. The 1982 law then recodified the provisions in Title 31 of the U.S. Code, ("Money and Finance"), as cited above.

10 One exception was FY 1947, when a "Corporation Supplement" was prepared, containing the budget programs of the wholly-owned Government corporations. Subsequently, these units have been included in the regular Budget, but as explained in the letter of transmittal, the separate document "was necessary this year because the Government Corporation Control Act of 1945 became law too late for inclusion of these statements in the regular Budget." See Corporation Supplement. The Budget of the United States Government for the fiscal Year Ending June 30, 1947. Washington, U.S. Govt. Print. Off., 1946. p. 5.

11 U.S. The Federal Budget in Brief. Fiscal Year 1951. Washington, U.S. Govt. Print. Off., 1950. p. 2.

12 U.S. Appendix to the Budget of the United States Covernment, for the Fiscal Year Ending June 30, 1952: Obligations by Objects and Detail of Personal Services. Washington, U.S. Govt. Print. Off., 1951. p. ii.

13 For a further description of the contents of current budget documents, see Budget of the United States Government, Fiscal Year 1989. Washington, U.S. Govt. Print. Off., 1988. p. ii.

14 42 Stat. 20.

15 64 Stat. 832.

16 The Senate-passed version of the Balanced Budget and Emergency Deficit Control Reaffirmation Act of 1987 contained a provision to change the deadline for submission of the President's Budget to the first Monday after January 17, apparently at the request of the executive branch. However, the provision was deleted in conference. See U.S. Congress. Conference Committees, 1987. Increasing the Statutory Limit on the Public Debt. Conference Report to accompany H.J. Res. 324, 100th Congress., 1st Sess. Washington, U.S. Govt. Print. Off., 1987. p. 70-71.

17 Public Law 99-177, Dec. 12, 1985; 99 Stat.1037.

18 Many of the budget process reforms incorporated in the 1985 law came from the recommendations of the Task Force on the Budget Process of the House Rules Committee (known as the Beilenson Task Force, because it was chaired by Congressman Anthony Beilenson, D- CA). The Conference Report accompanying the 1985 measure alluded to this origin regarding the provisions "for an accelerated congressional and executive branch timetable . . . ." See U.S. Congress. Conference Committees, 1985. Increasing the Statutory Limit on the Public Debt. Conference Report to accompany H.J. Res. 372. House Report No. 99-433, 99th Cong., 1st Sess. Washington, U.S. Govt. Print. Off., 1985. p. 100.

The Report of the Beilenson Task Force described the earlier submission of the President's budget under the head of "Accelerated Budget Resolution Timetable," noting: "The month of January is expected to be used particularly by CBO, the General Accounting Office, and congressional staffs to analyze the President's budget and to prepare for committee review of it beginning in February." See U.S. Congress. House. Committee on Rules. Report of the Task Force on the Budget Process. Committee Print, 98th Cong., 2nd Sess. Washington, U.S. Govt. Print. Off., 1984. p. 22.

19 99 Stat. 1063.

20 On January 4, 1988, the legal deadline for submitting the President's Budget for FY 1989, OMB Director Miller instead transmitted a letter to Congress. He explained that the lateness (December-enactment) of final action on appropriations for FY 1988 (P.L. 100-202) and on the Omnibus Budget Reconciliation Act of 1987 (P.L. 100-203), along with the Bipartisan Budget Summit Agreement in November of 1987, made it impossible to comply with the statutory deadline and that the FY 1989 Budget would be delayed until mid February (Executive Communication EC-2455).

21 The issue of the "lame duck" budget and its implications for Presidential transitions has received more attention recently. For example, see Pfiffner, James P. The Strategic Presidency: Hitting the Ground Running. Chicago, Dorsey Press, 1988, p. 115-155 (Chapter Six: Taking Over the Budget).

22 Roosevelt, Franklin D. The Annual Budget Message, Jan. 3, 1934. Public Papers and Addresses of Franklin D. Roosevelt, Vol 3. New York, Random House, 1938. p. 16-24.

23 The budget revisions were not transmitted in a systematic way, with many requests merely communicated by Department Secretaries to congressional committees. For example, on April 1, 1953, Secretary of Commerce Sinclair Weeks gave the Senate Appropriations Committee a revised budget for the agency. Congressional Quarterly, v. XI, April 3, 1953, p. 436. See other issues in the spring of 1953 for additional references to these budget revision submissions.

24 The policies relating to budget revisions so transmitted to the executive branch agencies began with a statement of general purpose: "It is clear that the Budget will not be brought under control without action to reduce budgetary obligational authority, reduce the level of expenditures, critically examine existing programs, restrain commitments for new programs, and generally drive for greater efficiency and reduced costs." Specific guidelines with respect to personnel, construction, programs, and legislation followed. The agencies were to submit their recommendations to the Bureau of the Budget "as early as possible in March for the consideration of the President."

See: U.S. President, 1951-1960 (Eisenhower). Public Papers of the Presidents, 1953. Washington, U.S. Govt. Print. Off., 1953. p. 53-54. The Bureau of the Budget transmittal was provided as a footnote to the transcript of the Presidential press conference. The directive was also inserted in the Record: Wigglesworth, Richard B. Revision of the 1954 Budget. Extension of Remarks. Congressional Record, v. 99, Feb. 12, 1953. p. A607-A608.

25 Congressional Quarterly Almanac. V. IX, 83rd Cong., 1st Sess., 1953. p. 131.

26 Murray, James. Revised Budget Estimates. Remarks in the Senate. Congressional Record, v. 99, March 16, 1953. p. 1964.

27 Murray James. Budgetary Policies of the New Administration. Remarks in the Senate. Congressional Record, v. 99, April 9, 1953. p. 2859.

28 Ibid., p. 2860-2861.

29 Cannon, Clarence. Remarks in the House. Congressional Record, v. 99, April 21, 1953. p. 3500. Representative Cannon referred to the practice of submitting budget revisions following a presidential transition, stating as follows:

"Under the law, the outgoing administration is required to submit a budget. That budget was submitted on January 9, more than three months ago. Of course everybody understands that the budget of the old administration is largely a formality and the new administration is expected to immediately submit a new budget or modified budget reflecting its budgetary policies and the changes it proposes to make in conformity with pledges made during the campaign." Ibid.

30 U.S. President, 1951-1960 (Eisenhower). Public Papers of the President, 1953. Washington, U.S. Govt. Print. Off., 1953, p. 240. The statement was not included in the compilation, but was reprinted as "Test of President's Budget Statement," New York Times, May 1, 1953, p. 9.

31 U.S. President, 1961-1963 (Kennedy). Annual Message to the Congress on the State of the Union, January 30, 1961. Public Papers of the President, 1961. Washington, U.S. Govt. Print. Off., 1962, p. 22.

32 U.S. President, 1961-1963 (Kennedy). Special Message to the Congress on Budget and Fiscal Policy, March 24, 1961. Ibid., p. 224- 225.

33 The special message, with attachment, was printed as House Document 87-120. This summarized proposals originally submitted in thirteen separate transmittals, previously printed as House Documents 87-95, 87-97, 87-101, 87 112, 87-113, 87-114, 87-115, 87-118, 87-121, 87-124, 87-125, 87-188, and 87-129.

34 Special Message to the Congress on the Defense Budget, March 28, 1961. Ibid., p. 229-240.

35 U.S. President, 1969-1974 (Nixon). Statement on Proposed Changes in the 1970 Budget, April 12, 1969. Public Papers of the President, 1969. Washington, U.S. Govt. Print. Off., 1971. p. 278- 280.

36 See U.S. Congress. House. 91st Cong., 1st Sess., House Documents 91-8, 91-99, 91-100, and 99-101. Washington, U.S. Govt. Print. Off., 1969.

37 President Nixon Revises Johnson Fiscal 1970 Budget: Cuts Spending to $192.9 Billion for $5.8-Billion Surplus. Congressional Quarterly, v. 27, April 18, 1969. p. 529.

38 Havemann, Joel. The Lame-Duck Budget that Probably Won't Last a Month. National Journal, v. 9, Jan. 22, 1977. p. 124-134.

39 U.S. President. 1977-1980 (Carter). Fiscal Year 1978 Budget Revisions. Message to the Congress Transmitting the Revisions. February 22, 1977. Public Papers of the President, 1977, 1. Washington, U.S. Govt. Print. Off., 1977. p. 214-215. Also see Office of Management and Budget. Fiscal Year 1978 Budget Revisions. Washington, U.S. Govt. Print. Off., 1977. 101 p.

40 U.S. Presidents, 1981- (Reagan). Message to the Congress Transmitting Fiscal Year 1982 Budget Revisions, March 10, 1981. Public Papers of the Presidents, 1981. Washington, U.S. Govt. Print. Off., 1982, p. 221-222; Message to the Congress Reporting Budget Rescissions and Deferrals, March 10, 1981, p. 223. Also see Office of Management and Budget. Fiscal Year 1982 Budget Revisions, March 1981. Washington, U.S. Govt. Print. Off., 1981. 159 p.

41 U.S. Executive Office of the President. Office of Management and Budget. Fiscal Year 1978 Budget Revisions. Washington, U.S. Govt. Print. Off., 1977. 101 p.; and Fiscal Year 1982 Budget Revisions, March 1981. Washington, U.S. Govt. Print. Off., 1981, 159 p.

42 U.S. President, 1964-1968 (Johnson). Annual Budget Message to the Congress, Fiscal Year 1965, Jan. 21, 1964. Public Papers of the Presidents, 1963-64, 1. Washington, U.S. Govt. Print. Off., 1965. p. 175-195.

43 U.S. President, 1974-1976 (Ford). Special Message to Congress on Budget Restraint, Nov. 26, 1974. Public Papers of the President, 1974. Washington, U.S. Govt. Print. Off., 1975. p. 666- 668. A summary of the deferrals and proposed rescissions was printed in the Federal Register on Dec. 5, 1974 (39 F.R. 42524). The November 26 transmission was also printed as House Document 93-398, "Rescission, Deferral Budget, Fiscal Year 1975."

44 Ibid., p. 161.

45 Pfiffner, The Strategic Presidency, p. 115.

DOCUMENT ATTRIBUTES
  • Institutional Authors
    Congressional Research Service
  • Index Terms
    NITA
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  • Language
    English
  • Tax Analysts Document Number
    Doc 88-9090
  • Tax Analysts Electronic Citation
    88 TNT 236-19
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