FY 2013 Federal Budget Will Be Leaner

Leaner 2013 budgets Federal departments and agencies are busy working on their annual budget submissions to the Office of Management and Budget (OMB) for FY 2013 that begins October 1, 2012. This is part of the ongoing federal budget process that culminates in the release of the Administration’s budget each year in early February.  By statute, the President is required to submit an annual budget to Congress.  Even by Washington standards there’s irony to this event because typically the President’s budget (no matter the political party) is dead on arrival on Capitol Hill as each chamber of the U.S. Congress adopts their own budget resolution each year. But Congress has failed for multiple years under majorities in both political parties to produce a budget resolution in each chamber for the federal fiscal year.

20% off the top!

The Obama Administration continued their budget tightening on November 9 when President Obama issued an Executive Order throughout the federal government directing agencies to reduce their FY 2013 budgets by 20% from FY 2010 levels in five key areas including; travel, unused/underutilized information technology, printing (encouraging electronic form), executive fleet transportation and promotional items (i.e. “Don’t Pack a Pest). OMB Director Jack LewTo review the entire Executive Order click on: http://www.whitehouse.gov/the-press-office/2011/11/09/executive-order-promoting-efficient-spending

Earlier, on August 17, OMB Director Jack Lew issued a memo to each federal agency directing them to produce two scenarios to cut 5 and 10 percent from their respective FY 2011 discretionary enacted level and reorder priorities to achieve deficit reduction.  Across-the-Board reductions, reductions to mandatory spending in appropriations bills, reclassification of existing discretionary spending to mandatory spending, or enactment of new user fees to offset spending were not allowed as options for reductions.

What This Means To You:

With up to 20% of the federal budget being cut, is your industry impacted? For instance, your business may stand to gain if you promote Information Technology as the federal government is mandating more use of electronic documentation and less paper. How can your industry capitalize on these cuts? Cuts in other areas could undermine your government sales. Decisions are being made today that will begin to impact your sales as early as October 2012, or before. You need to make sure that your voice is being heard while the facts surrounding these decisions are being considered.

Cansler Consulting is an experienced lobbying firm in budgeting, agriculture, rural healthcare, and energy policies and through our Congressional relationships we can help you influence the policy makers on Capitol Hill. You can contact us at info@canslerconsulting.com or at (202) 220-3150.

Tim Cansler