The chairman of the Senate Budget Committee today released a fiscal year (FY) 2016 budget resolution that recommends short-term and long-term federal revenue and spending levels. The proposed budget calls for the following, among other proposals:
The FY 2016 budget resolution and related documents will be made available on the Senate Budget Committee website.
The budget process begins with the submission of the president’s budget proposal (submitted by the Obama administration in February 2015).
Next, the House and Senate each considers a budget resolution—a non-binding, internal directive to congressional committees for their consideration as they write legislation implementing the coming year’s budget. This resolution typically is initiated in the budget committee of each chamber.
The budget resolution also can set in motion “reconciliation”—a process that limits the Senate’s unrestricted debate rules and allows it to pass by a simple majority vote spending and revenue bills following the parameters set out in the resolution (subject to special rules that can govern the content of legislation).
If the House and Senate agree on spending and revenue targets, their concurrent resolution would establish spending and revenue targets for the substantive committees in each chamber, commencing the reconciliation process.
The House and Senate Budget committees have begun their respective budget resolutions and are expected to complete the committee processes this week.
The full House and Senate are expected to take up their respective budget resolution bills next week. Assuming passage of both bills, it is unclear when the two chambers will begin to work out any differences between their bills. The Budget Act provides for final action on the resolution by May 15, although there are no consequences for failure to meet that deadline.
© 2016 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.