This week, the Wednesday Wonk begins a series on the Federal Budget and Appropriations process.  Why is it important?  Does it really have any impact on my life? And why, oh why is it so darn complex?  The Wonk will walk you through this, step by step.  By the end of this series you’ll be impressing your friends with your new-found knowledge!

Let’s start with some historical perspective.  According to Congressional Quarterly, “[t] he first United States federal budget was adopted in September 1789 when Congress approved Appropriations Act HR 32, which allocated $639,000 to cover the federal government’s expenses for 1790.”  Contrast those numbers with Politico’s findings that the “president is calling on Congress to provide $769 billion for non-defense programs and $753 billion in national defense funding for the upcoming fiscal year.”

Before I wade too far into the weeds, there are a few terms you should know. Authorization “refers to a statutory provision that obligates funds for a program or agency”—in other words, the funding level Congress envisioned when they created the program.  Appropriations is the amount of money a program receives in a given fiscal year.  

The American Council on Education explains Entitlement programs are mandatory spending such as Medicare and Social Security: these comprise the majority of spending.  By contrast, discretionary spending comprises only 8.4 percent of the FY 2022 budget.  As we forge our way through this process the Wonk wants you to keep in mind: a large number of Federal discretionary programs vie for a relatively small piece of the budgetary pie!

The budget and appropriations process formally begins in early February when the President submits his budget to the Congress for the fiscal year which begins October 1st.  Once the President releases the budget, Federal agencies across Washington hold briefings, eager to talk about the great things this budget will do for the country.  Those working on budget and appropriations—as I did for many years—attend these briefings, grab press releases and documentary information.  Then they scurry back to their offices to write newsletter articles to their various constituencies.  The budget and appropriations process has begun!

So why does all this matter to the average person?  It doesn’t—unless you plan to be a responsible citizen and make educated decisions in the voting booth.  Still, if you care about your son’s college programs, or maybe you have a small child with special learning needs, our an elderly parent needs Meals on Wheels, or maybe you really what to see NASA expand space exploration—then the Federal budget process is something you care deeply about.

Next week, the Wonk will explain the role of the House and Senate Budget committees.  You’ll learn how their work contributes to this intricate process.

Till next time, happy reading!!