What's next in budget process

ByABC News
February 26, 2009, 9:24 PM

— -- President Obama's budget for 2010 is a proposal. He's telling Congress his priorities, how much money he would like to spend on them, how he would change the tax laws to produce a certain amount of revenue and how big a deficit would result.

The next step belongs to Congress. It is not bound by the president's budget and is empowered by the Constitution to tax and spend. Lawmakers hold hearings and listen to administration officials, other members of Congress and financial experts, so they can develop their own budget resolution. This resolution becomes the blueprint for government spending, outlined in broad categories, and how much the government wants to collect in tax revenue.

Congress is supposed to finish work on the budget resolution by April 15, but it often takes longer.

The next step is to pass legislation allocating money to pay for programs. Congress has to pass appropriation bills for the next fiscal year, according to the levels set in the budget resolution. Once the House and Senate agree on spending bills, they go to the president for his signature.

The spending bills are supposed to reach the president before Oct. 1, the start of the new fiscal year. The deadline often slips, and Congress has to pass a temporary spending law until it can agree on all the spending bills.

By Catalina Camia