State Budget Process

Though concentrated in the spring, when the legislature debates and adopts a state spending plan, Pennsylvania's budget process lasts a full year. It spans the governor's introduction of a budget blueprint in February, the legislature's amendment process in the spring, and predictions of spending needs and revenue in the fall.

Pennsylvania's fiscal year runs from July 1 to June 30.

The Budget Calendar

July 1
The state fiscal year begins.

September/October/November
State agencies begin developing spending proposals for the next fiscal year, which are submitted to the governor for consideration.

December
The governor holds a mid-year budget briefing to inform legislators and citizens about the state's current fiscal status and project end-of-fiscal-year revenues.

February
The governor presents a proposed budget to the Pennsylvania Senate and House of Representatives on the first Tuesday of February.

February/March
The House and Senate Appropriations Committees hold public hearings to review state agencies' funding requests.

April/May/June
The legislature drafts amendments to the governor's plan.
House and Senate leaders negotiate allocations with the governor's office.
The House and Senate debate and adopt their own versions of the budget.

A conference committee reconciles the House and Senate versions, and the governor signs the agreed-to bill.

The budget must pass by June 30, although earlier - and later - passage is possible.

June 30
The fiscal year ends.

Federal Budget Process

How presidential and congressional proposals become the annual United States budget

President's Budget: The Beginning
By the first Monday in February, the president gives Congress a proposed budget for the fiscal year to begin the next October 1. The proposed budget includes requested amounts of spending and taxation for the year and any recommended policy changes.

Congressional Action: Key Points

The Budget Framework
Congress establishes overarching budget frameworks before filling in the details. This budget blueprint adheres to two concepts: mandatory spending and receipts, and discretionary spending.

Mandatory spending and receipts: Mandatory spending and receipts are permanently authorized by laws. They include entitlement spending, such as Social Security, unemployment compensation, welfare, Medicaid, child welfare, and the tax laws that determine revenues, also known as receipts. Mandatory spending accounts for about two-thirds of all federal spending.

Discretionary spending: Discretionary spending must be decided each year through 13 appropriations bills. The 13 bills cover 19 major areas of spending, also known as budget functions. Discretionary spending accounts for the other one-third of federal spending.

Committees: Six key committees, three in each chamber, oversee the process:

The House and Senate Budget committees have jurisdiction over the initial framework. Their sole function is producing the budget resolution.

The House Ways and Means and the Senate Finance committees oversee entitlement programs and taxes.

The House and Senate Appropriations committees oversee discretionary spending. Most children's programs go through these committees.

The Budget Resolution
According to the Congressional Budget Act of 1974, Congress should annually adopt its budget resolution framework by April 15. Included in the budget resolution are total revenues, total spending limits and tax cuts, and amounts for the 13 appropriations bills.

Along with the Budget Act, the House and Senate must abide with a rule known as PAYGO that governs the amount of entitlement spending and tax changes. PAYGO requires that tax cuts and entitlement increases be fully offset unless the changes in the combined dollar amount fit within the amounts determined in the budget resolution.

Appropriations
By June 30, the House should have completed action on appropriations bills. Then the Senate takes up the bills. However, deadlines for completion of the appropriations bills and the final budget are often missed.

Key Committees and Pennsylvania Members
Senate Appropriations Committee: Chairman Daniel K. Inouye (D-HI) and Ranking Member Thad Cochran (R-MS).

From Pennsylvania:
Sen. Arlen Specter (D-PA)

House Appropriations Committee: Chairman David Obey (D-WI) and Ranking Member Jerry Lewis (R-CA).

From Pennsylvania:
Rep. John Murtha (D-12th), Chairman, Subcommittee on Defense;
Rep. Chaka Fattah (D-2nd)

Senate Budget Committee: Chairman Kent Conrad (D-ND) and Ranking Member Judd Gregg (R-NH)

House Budget Committee: Chairman John Spratt (D-SC) and Ranking Member Paul Ryan (R-WI)

From Pennsylvania:
Rep. Allyson Schwartz (D-13th) Vice-Chairman

Senate Finance Committee: Chairman Max Baucus (D-MT) and Ranking Member Charles Grassley (R-IA).

House Ways and Means Committee: Chairman Charles Rangel (D-NY) and Ranking Member Dave Camp (R-MI).

From Pennsylvania:

Rep. Allyson Schwartz (D-13)

In many years, however, the budget isn't completed on time, and Congress must pass continuing resolutions to authorize spending after October 1 and avoid a government shutdown.

To find information on your U.S. Representative and Senators, visit www.congress.org.

Information from the Pennsylvania Partnerships for Children
Federal and State Budget Processes