Office of Management and Budget - Explained
What is the Office of Management and Budget?
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Table of ContentsWhat is the Office Of Management And Budget?What Does the Office of Management and Budget Do? Academic Research
What is the Office Of Management And Budget?
The largest office within the EOP (Executive Office of the President) of the US is named as the Office of Management & Budget (OMB). Its main responsibility is to generate the operational budget as well as estimate the quality of programs run by an agency, strategies, and processes to check whether they adopt the policies of the President, and organize inter-agency strategy initiatives. Mick Mulvaney is the present director of OMB. His duty is to report about these all functions to the President, the WHCS (White House Chief of Staff), and the Vice President.
What Does the Office of Management and Budget Do?
Following the B&A Act (Budget and Accounting), 1921, the BoB (Bureau of the Budget), the forerunner of the OMB was set up in 1921, being a part of the DoT (Department of Treasury). President Warren G. Harding signed it at that time. In 1939, the Bureau was shifted to the EOP (Executive Office of the President) and Harold D Smith used to run it in the period of the 2nd World War. During that time, there was a fast expansion of expenditures by the government. James L. Sundquist was a staffer at the BoB stated about the relation in the Bureau and the President that they were so close. Likewise, the succeeding Bureau Directors were like politicians, not like public administrators. In 1970, the Bureau was again organized into the OMB (Office of Management & Budget) under the administration of Nixon. The main members of the first OMB were Roy Ash as the head, Paul ONeill as the assistant director, Fred Malek as the deputy director and Frank Zarb as the associate director. There were 2 dozen more members as well. OMB was once again organized in 1990 in order to remove the discrimination in the budgetary and management staff by joining the double roles into everyone given the program examiner role in the RMO (Resource Management Offices). The purpose of the Office of Management & Budget is to prepare the budget proposal of the President to Congress. Besides, it has to supervise the administration of the agencies of the executive branch. It checks the efficiency of the agency programs, strategies and procedures. OMB estimates the rival funding demands in agencies and sets priorities of funding. It makes sure that the agency principles, reports, proposed legislation and testimony are in the consistency with the budget of the President and admin policies. Also, the objective of OMB is to supervise and organize the procurement of the administration, data, financial management, and regulatory plans. Its role is to assist in making the administrative management better, to set the best measures for performance, organized mechanisms and to eliminate any needless burden on the people. The development of budget and its execution is an eminent government level process controlled by the EOP (Executive Office of the President. There is a device through which the President makes the implementation of his plans, functions and priorities in everything from DoD (Department of Defence) to NASA (National Aeronautics and Space Administration). It manages finances, IY and paperwork of other agencies. The President assigns particular duties to OMB practically, when the budget of the new year is announced. It also explains the role of hiring authorities in the development of the budget. The coordination of OMB is that it develops the proposal of the Presidents budget by issuing memoranda, circulars and guideline papers to the executive agencies heads. It works so closely with the executive agencies to ensure that the process of the budget proposals goes smooth. The executive branch completes the budget development process within one year step by step. At the 1st step, OMB informs the President about the economic conditions of the country. At the 2nd step, the OMB gives Instructions to the executive agencies about the policies in the spring season. It is called Springer Guidance. Next, the OMB with the executive agencies discusses problems related to the upcoming budget. All agencies receive circular A-11 in July in which there are clear instructions about the submission of the budget proposal. So, the agencies submit the budget in September. 1st Oct is the start fiscal year. The staff of OMB conducts a meeting with the representatives of the senior agency and discusses the budget proposal to check whether it fits the policies and priorities of the President or not. It points out the constraints in the proposal until the end of November. The director of OMB conducts a meeting with the EOP advisors and the President to bring the budget proposal under discussion which was set by the agencies. Then, it suggests a federal proposal. It notifies the agencies about its decision related to their budget requests. They can submit an appeal to the President and OMB in the month of December if they dont get satisfied with the budget. After that OMB and agencies present a document on the budget jurisdiction to the congressional committee, particularly the appropriation committee. Finally, on the 1st Monday of February, the President reviews and submits it to Congress for approval. It is also a responsibility on the part of OMB to prepare SAPs (Statements of Administrative Policy) with the President. It sets an agenda of the policymakers. Meanwhile, under review of the final budget, interests groups can request for a change in policy and affect the new year budget. OMB maintains legislation in case of policy conflicts. It ensures that the actions of the agencies have consistency with the executive branch. The role of the OMB is very influential and powerful in the government of the United States. Without a budget, the government cannot pay federal employees, it cannot run federal buildings, federal programs would simply stop and there would be a condition of Government Shutdown. However, Government Shutdown happens if Congress rejects the budget and policies. It is called Divided Government.