Friday February 22, 2013
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Key Terms Related to Defense Spending
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See also:
Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization and then appropriation.
Appropriation Act: Statute, under the jurisdiction of the House and Senate Committees on Appropriations that generally provides legal authority for federal agencies to incur obligations and to make payments out of Treasury for specified purposes. Appropriation acts can be regular, supplemental, and continuing. Currently, 13 regular appropriations acts are considered annually.
Authorizations Act: A law that establishes or continues one or more Federal agencies or programs, establishes the terms and conditions under which they operate, authorizes the enactment of appropriations, and specifies how appropriated funds are to be used. Authorizations acts sometimes provide permanent appropriations. For national defense programs, the authorizing committees are the House Armed Services and Senate Armed Services Committees
Budget Authority: Authority provided by law to enter into obligations that will result in outlays of Federal funds. Budget authority may be classified by the period of availability (one-year, multiyear, no-year), by the timing of congressional action (current or permanent), or by the manner of determining the amount available (definite or indefinite).
Budget Resolution: Legislation in the form of a concurrent resolution setting forth the congressional budget. The budget resolution establishes various budget totals, divides spending totals into functional categories (e.g., transportation), and may include reconciliation instructions to designated House or Senate committees.
Continuing Appropriation/Continuing Resolution: Legislation in the form of a joint resolution enacted by Congress, when the new fiscal year is about to begin or has begun, to provide budget authority for Federal agencies and programs to continue in operation until the regular appropriations acts are enacted.
Deficit (Surplus): The amount by which outlays exceed receipts in a given fiscal period. (A surplus would be the amount by which receipts exceed outlays.)
Discretionary spending: Spending (budget authority and outlays) controlled in annual appropriations acts. Discretionary spending accounts for approximately 33 percent of all federal spending. National defense spending accounts for about 50 percent of total discretionary spending.
Earmarking: Dedicating appropriations for a particular purpose.
Fiscal Year (FY): The fiscal year is the accounting period for the federal government which begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends
Mandatory spending: Spending (budget authority and outlays) controlled by laws other than annual appropriations acts.
"National Defense" ("Function 050"): Federal budget category that consists of the Department of Defense budget ("Function 051"); Department of Energy programs devoted to national defense, such as naval ship reactors and nuclear weapons ("Function 053"); and other defense-related activities including the Selective Service System and civil defense programs administered by the Federal Emergency Management Agency ("Function 054").
Outlays: Outlays are payments made (generally through the issuance of checks or disbursement of cash) to liquidate obligations. Outlays during a fiscal year may be for payment of obligations incurred in prior years or in the same year.
Outyear: Any year (or years) beyond the budget year for which projections of spending are made.
Reconciliation: A process established in the Congressional Budget Act of 1974 by which Congress changes existing laws to conform tax and spending levels to the levels set in a budget resolution. Changes recommended by committees pursuant to a reconciliation instruction are incorporated into a reconciliation measure.
Reprogramming: Shifting funds within an appropriation or fund account to use them for different purposes than those contemplated at the time of appropriation.
Rescission: The cancellation of budget authority previously provided by Congress. The Impoundment Control Act of 1974 specifies that the President may propose to Congress that funds be rescinded. If both Houses have not approved a rescission proposal (by passing legislation) within 45 days of continuous session, any funds being withheld must be made available for obligation.
Supplemental appropriation: Budget authority provided in an appropriations act in addition to regular or continuing appropriations already provided. Supplemental appropriations generally are made to cover emergencies, such as disaster relief, or other needs deemed too urgent to be postponed until the enactment of next year's regular appropriations act.
Transfer of funds: Shifting all or part of the budget authority in one appropriation or fund account to another.
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