Budget Formulation

An effective budget allows agencies to fulfill their mission and deliver their programs. But how does the budget function support the overall goals of the agency? You will learn about budget formulation as an essential step in the process of securing financial resources for your agency. You will also gain the skills and techniques to produce a solid budget submission, which leads to better decision-making about future program activities and strategies.

Learning Objectives

• Describe the history behind budget formulation legislation and summarize key elements of the legislation
• Define the phases of the federal budget process, identify the key players in the federal budget process, and describe their roles
• Identify the guidance available from the legislative and executive branches regarding budget formulation, and apply this guidance to budget formulation principles
• Describe and differentiate between four types of budgets—object class, capital asset, program, and performance budgets
• Prepare your own unit budget using appropriate government and agency-issued guidance, to include calculating employment requirements and costs using multiple methods
• Perform a cost estimate using the appropriate estimating methodologies and tools, and adjust your budget to accommodate changes in estimates and/or budget cuts
• Explain the qualities of an effective budget justification
• Analyze a sample agency budget

Course Topics

Review of the Federal Budget Process

• Building Background
• Budget Formulation Legislation
• Review of Key Budget Terms
• Key Players in the Budget Process
• Overview of the Federal Budget Process
• Budget Formulation
• Congressional Action
• Budget Execution
• Other Budget Authority
• Exercise: Lesson Review Questions

Overview of the Budget Formulation Process

• Building Background
• The President’s Budget
• Four Considerations of Agency Budget Formulation
• Exercise: Lesson Review Questions

Types of Budgets

• Building Background
• Object Class Budgets
• Capital Asset Budgets
• Program Budgets
• Annual Performance Plans
• Administration Efforts
• What is an Annual Performance Plan?
• Exercise: Lesson Review Questions

Formulating Agency Budgets

• Building Background
• Agency Budget Formulation Process
• The Revised Budget
• Exercise: Lesson Review Questions

Review of Sample Agency Budget

• Capstone Exercise: Review of Sample Agency Budget