Office of Management and Budget – Definition

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Office Of Management And Budget – Definition

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.

A Little More on Office of Management and Budget

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 O’Neill 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 President’s 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 don’t 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.

References for Office of Management and Budget

Academic Research on The Office of Management and Budget

The quiet shift of power: Office of Management & Budget supervision of Environmental Protection Agency rulemaking under Executive Order 12,291, Olson, E. D. (1984). Virginia Journal of Natural Resources Law, 4(1), 1-80b. The author states that the regulatory analysis is to enhance the bureaucratic accountability and put up reasonable decision making, Congress and the courts should act. The performance of OMB and its propensity to secure and the oral rule making use have failed E.O.12291. The courts and Congress can rectify it by setting up a review board which is unbiased.

The evolving regulatory role of the US Office of Management and Budget, Graham, J. D. (2007). Review of Environmental Economics and Policy, 1(2), 171-191. This paper evaluates in what ways and for what reason the OMB supported regulatory initiatives and safeguarded rulemaking from the opponent parties by force in and out of the executive branch. The framework of benefit-cost might be very powerful if fairly large investments were decided on applied research to spread knowledge on main regulatory problems.

Influence and the administrative process: Lobbying the US President’s Office of Management and Budget, Haeder, S. F., & Yackee, S. W. (2015). American Political Science Review, 109(3), 507-522. The lobbying of the interest group can be effective under review of OMB, specifically if there is mutual consent among the groups. The authors introduce a selection model to check their argument with above fifteen hundred regulations. Lobbying is linked with change under OMB review. The authors present illustrations with the suggestions that the interest groups can use a review of OMB to affect the content of lawful binding regulations of the government.

Assessing federal program performance: Observations on the US Office of Management and Budget’s Program Assessment Rating Tool and its use in the budget …, Posner, P. L., & Fantone, D. M. (2007). Public Performance & Management Review, 30(3), 351-368. The United States OMB commits to devise more instrumental accountability plan by associating performance with the results for program and funding design. However, there’s a risk and challenge involved therein. The measures used to show progress cannot serve a sole interest set without potentially preventing the use of data by others.

… ‘Unpresidented'[Sic] Era of Budgeting: The Relationship between the Congressional Budget Office (CBO) and the Office of Management and Budget (OMB) Post-2016, Chohan, U. (2016). The CBO (Congressional Budget Office) plays a great role in keeping the OMB honest. The paper reviews this notion using the Trump administration and particularly according to the appointment of Mick Mulvaney, the director of OMB. It is likely to come across unprecedented resistance by the executive.

Who’s on First: The Role of the Office of Management and Budget in Federal Information Policy, O’Reilly, J. T. (1983). J. Legis., 10, 95. In this paper, the authors explain the role of OMB (Office of Management and Budget) in the Federal Information Policy. They investigate it on the grounds of a comparative question, i.e. who is on 1st?

Office of Management and Budget Circular A-95: Perspectives and Implications, Gordon, G. J. (1974). Publius, 4(1), 45-68. This study discusses the Circular A-95 of the Office of Management & Budget (OMB), the perspectives of this circular and implications.

Efficacy of federal data: revised Office of Management and Budget standard for native Hawaiian and other Pacific Islanders examined, Panapasa, S., Crabbe, K. O., & Kaholokula, J. K. A. (2011). AAPI Nexus: Policy, Practice and Community, 9(1-2), 212-220. This research examines the efficiency of federal information. It revises the standard of Office of Management & Budget (OMB) for the Pacific Islanders and people of Hawaii.

The Office of Management and Budget That Almost Wasn’t, Berman, L. (1977). Political Science Quarterly, 92(2), 281-303. This paper brings under discussion the ‘was and was not’ of the OMB (the Office of Management & Budget). It also describes the responsibilities of OMB that were revised 3 times in the history of the United States.

Office of Management and Budget: Skeptical View of Scientific Advice, Culliton, B. J. (1974). In this research paper, the author presents a skeptical view of the scientific advice in the perspective of OMB (the Office of Management & Budget).

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