Federal agencies will not formally prepare a FY2018 budget in September, according to a memorandum issued last week by Shaun Donovan, Director of the Office of Management and Budget (OMB).
Donovan said OMB will “lay the groundwork" for the next budget by gathering “budget and programmatic information from which the incoming administration can develop its budget proposals.”
With a new administration coming into office next January, OMB has told agencies they will not submit a budget request in September, as is usually the case, and OMB will not do a formal review or issue a budget “Passback” this year. Rather, OMB will “prepare a budget database that includes a complete current services baseline.”
Agencies will also not have to submit the usual set of policy materials that support budget requests until the new administration is “in place.” However, agencies may be asked to provide some information on selected issues.
OMB said that agencies should continue with “internal review procedures” for the FY2018 budget and work with OMB staff by providing recurring and non-recurring cost information and personnel levels and costs so they can develop program-level current services estimates. Agencies will also work with OMB to” identify key programmatic and budget issues that may require attention from the incoming administration.”
Agencies will also not have to submit the FY2018 performance plan, but should continue with internal review procedures so that the next administration can produce performance plans.
OMB directed agencies to continue to meet scheduled reporting requirements for information technology (IT) and cybersecurity.
A revised OMB Circular A-11 will be issued in June to include transition-related updates. During the transition after the election OMB will issue guidance on policy development and the timing for submitting FY2018 agency requests.