Fact Sheet on Senate Budget Process: 98-726 GOV

Government Performance and Results Act and the Appropriations Process

Sandy Streeter, Analyst in American National Government
Government and Finance Division
Updated February 17, 1999

Performance Evaluation

There are three key elements in GPRA's performance evaluation process:

1. multi-year strategic plans,
2. annual performance plans, and
3. annual performance reports.

Multi-Year Strategic Plans

Each executive agency covered by GPRA must develop a multi-year strategic plan that identifies the fundamental mission of the agency, general goals that would be used to achieve the mission, and resources needed to accomplish the mission. Under GPRA, each agency is required to consult with, among others, the Senate and House Appropriations Committees and the appropriations subcommittees with jurisdiction over funding for the particular agency. The first strategic plans were submitted to Congress in September 1997. These plans are to be updated at least every three years.

Annual Performance Plans

Each agency is required to prepare an annual performance plan, and the Office of Management and Budget (OMB) to submit a governmentwide performance plan. The agency plans are intended to drive the day-to-day operations toward achieving the general goals of the strategic plan. A plan must include (1) performance goals for the programs that are generally objective, quantifiable, and measurable; (2) measurable indicators to be used to determine if the programs are meeting the goals; and (3) a summary of the necessary resources (particularly funding and staffing resources) being applied to achieve the goals. The plan is to be linked to the President's annual budget requests for the programs. OMB's governmentwide performance plan is based on the agencies' plans.

OMB submitted the first governmentwide performance plan with the President's FY1999 budget and the second with the FY200 budget. In the spring of 1998, the first agency performance plans (for FY1999) were submitted to the Senate and House Appropriations Committees and their subcommittees, among others. The appropriations subcommittees evaluated the FY1999 performance plans and provided direction on an agency-by-agency basis for future performance plans. The format ranged from informal discussions to provisions in statutes. All the FY2000 agency performace plans are expected to be submitted during the spring of 1999.

Annual Performance Reports

Six months after the fiscal year covered by the performance plan has ended, agencies are required to submit performance reports to the committees and subcommittees evaluating their record. These evaluations are to be based on the measurable indicators identified in the performance plans. In those cases in which goals were not met, the reports must describe further action required, including revising unrealistic goals. The first performance reports (for FY1999) are due no later than March 31, 2000.

Performance and the Annual Budget

The performance plans and reports must link directly to the current program activity structure included in the President's annual budget and the more detailed agency budget requests. The budget is organized by accounts within each department and agency. Each account is broken down into various program activities. The accounts are a reflection of the funding units in appropriations acts. Agencies may regroup the program activities in their plans and reports. However, agency efforts to modify the account structure in order to align it with performance objectives would involve negotiations with the Senate and House Appropriations Committees since the committees have a major role in changes in the format of annual budget presentations to Congress.

GPRA also provided for pilot projects on performance budgeting. While the performance plans and reports explicitly link expected results with budget expenditures, performance budgeting takes the next step--linking anticipated results to alternative spending levels. It is unclear when agencies will participate or when these projects will begin.

Not all agencies under the jurisdiction of the Senate and House Appropriations Committees are covered by GPRA. Since these requirements apply to only executive agencies, programs under the jurisdiction of the District of Columbia and Legislative Branch appropriations subcommittees are not covered. The judicial branch of government, which is under the jurisdiction of the Commerce-Justice-State-Judiciary subcommittees, is also exempt. GPRA furthermore provides exemptions for certain executive agencies.(2)

1. P.L. 103-62, 107 Stat. 285. For more information on GPRA, see: CRS Info Pack IP517G, Government Performance and Results Act: Implementing the Results; CRS Report 97-382 GOV, Government Performance and Results Act: Implications for Congressional Oversight; CRS Report 98-224 GOV, Government Performance and Results Act: Proposed Amendments (H.R. 2883); and CRS Report 97-1028 STM, Government Performance and Results Act: Implementation During 1997 and Issues of Possible Concern, 105th Congress, Second Session.

2. The act stipulates that OMB may exempt executive agencies with annual budget of $20 million or less. GPRA also exempts the Central Intelligence Agency (Defense/National Security subcommittees), Panama Canal Commission (Transportation subcommittees), Postal Rate Commission (Treasury, Postal Service, and General Government subcommittees), and General Accounting Office (GAO) (Legislative Branch subcommittees). In a separate section, GPRA provides an identical evaluation process for the U.S. Postal Service (Treasury, Postal Service, and General Government subcommittees). This is because of the Postal Service's status as a government corporation.