STEP 1 - THE PRESIDENT SUBMITS HIS FUNDING REQUEST

The Budget Act of 1974 requires the President to submit his budget to Congress by the first Monday in February. The President's budget is not binding; it is considered simply the Administration's proposal and request. Typically, the president uses this opportunity to further highlight initiatives that were covered in his State of the Union address.

STEP 2 - CONGRESS SETS BUDGET LIMITS

The matter is then referred to the Budget Committee to set funding limits for broad functions. Think of the entire federal budget as a pie, which is made up of multiple slices or broad functions. Most workforce development programs - including WIA, The Senior Community Service Employment Program, and Temporary Assistance for Needy Families Program (TANF) - Centers fall under Function 500, which covers all Education, Training, Employment, and Social Services programs. Once the funding levels for the broad functions are finalized, the process then turns to appropriations. Early spring is usually the timeframe for this.

STEP 3 - APPROPRIATIONS BILLS ARE DEVELOPED

The Appropriations Committees determine funding for specific programs through the use of its subcommittees. Most workforce development funding is determined by the Labor, Health and Human Services and Education Appropriations Subcommittee. Starting in the House of Representatives, the Labor, HHS and Education Subcommittee holds hearings, solicits input from the field, and recommends funding levels to the full Appropriations Committee. Once approved by the Appropriations Committee, the legislation is presented to the full House or Senate for modification and/or approval. This typically happens in spring-summer.

STEP 4 - CONFERENCE COMMITTEE WORKS OUT DIFFERENCES

The funding levels in the House and Senate bills rarely match. So, after each chamber approves their legislation, a conference committee of House and Senate members is created to work out the differences. The compromise bill - or conference bill - is then sent back to the House and Senate for approval. This typically occurs in late summer-early fall.

STEP 5 - PRESIDENT SIGNS LAW

Once approved, the bill goes to the President for approval. Once signed, the bill becomes a law. The federal fiscal year begins on October 1st. If the law is not signed by October 1^st. a temporary spending bill called a Continuing Resolution is used to keep federal programs and the federal government open until an agreement can be reached.