Mission-Driven, Results-Oriented Budgeting

NPR Recommendations

BGT01 Develop Performance Agreements With Senior Political Leadership That Reflect Organizational and Policy Goals
BGT02 Effectively Implement the Government Performance and Results Act of 1993
BGT03Empower Managers to Perform
BGT04Eliminate Employment Ceilings and Floors by Managing Within Budget
BGT05Provide Line Managers With Greater Flexibility to Achieve Results
BGT06 Streamline Budget Development
BGT07Institute Biennial Budgets and Appropriations
BGT08 Seek Enactment of Expedited Rescission Procedures

Progress to Date

As part of the shift to greater accountability for results, President Clinton and the heads of major agencies have signed performance agreements as a way of clarifying priorities. To date, ten agency heads have negotiated annual agreements. The Secretaries of the Departments of Energy, Veterans Affairs, Transportation, and Housing and Urban Development have signed performance agreements for fiscal year (FY) 1996. The delay in receiving FY 1996 appropriations disrupted the development of additional performance agreements. However, all agencies are using other means for increasing accountability for results by, for example, developing goals, objectives, and performance measures as required by the Government Performance and Results Act (GPRA) (Public Law 103-62).

All agencies are working to develop the performance information that GPRA requires. OMB is leading the development process and increasing emphasis on the use of such information in the formulation of the FY 1997 budget. It is using the FY 1998 budget process to focus on the performance goals and measures that will be needed for full GPRA implementation in FY 1999.

As recommended by NPR, Congress allowed carryover authority of unobligated year-end balances for some agencies in FYs 1994 and 1995 but withdrew this authority in following years. Six agencies historically have had multi-year funding authority and are able to carry over funds, but the remainder do not. This continues to create an incentive for year-end spending rushes in some agencies.

Congress granted the President line item veto authority beginning in 1997 (Public Law 104-130). This provides an important tool for cutting wasteful spending. In addition, several congressional committees have begun exploring streamlining of the budget process, including converting to a biennial budget as proposed by NPR.

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