Quick Hit – February 24, 2016

Things you should know
…a periodically published set of common questions and answers.

We are often asked by clients to clarify aspects of the federal budget and funding process. Headlines are often confusing or wrong, and articles are often incorrect or poorly sourced.  What business leaders generally want to know is ground truth and what it means to them.  A few nuggets:

  • We are in FY16. A Consolidated Appropriations package (Omnibus) was passed and signed into law in December 2015. Funds for FY16 are finally flowing in government departments and agencies.  The Omnibus passed on the heels of a balanced budget agreement (often referred to as BBA 2.0).
    • Much of the funds are “one-year” appropriations and must be spent by September 30, 2016.
    • Because funds arrived late, many mid-year adjustments will be made. These “reprogrammings” can represent opportunities or potential challenges to your funding stream.
  • The FY17 President’s Budget was sent to Congress in February.  Agency “posture” hearings are underway where Executive branch officials attempt to “defend” the President’s Budget request.
    • After Congress has conducted hearings, committees will then “mark” their section of the President’s Budget request.
    • The time for your input to the marks is NOW…if you aren’t engaged, you have likely missed the window for FY17.
  • This being an election year, many foresee this process moving quickly through early summer, and then stalling until after the November elections.
  • The FY18 budget is being “built” in most agencies now and should be complete at the agency level by the end of this summer.
    • Now is the right time to be engaging your agency customer(s) to shape your FY18 outcomes.

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