OMB’s FY 2019 Budget Guidance Calls for Major Funding Reforms
On July 7, the White House Office of Management and Budget (OMB), led by Director Mick Mulvaney, issued a memorandum to federal departments and agencies with guidance on how to approach development of the fiscal year (FY) 2019 budget submission. According to the memo, “the FY 2019 Budget will provide an opportunity to present a comprehensive plan for reforming the Federal Government and reducing the Federal civilian workforce. It also will reflect the first impacts of the Government reorganization called for by Executive Order 13781 [issued in March].” Budget submissions are expected to continue proposals included in the FY 2018 budget. Initial FY 2019 budget proposals from the agencies are due to OMB by September 11, 2017, even though agencies will not yet know what their FY 2018 budgets will be (see related article).
As you may recall, the Trump Administration implemented a temporary federal workforce hiring freeze during its first few weeks in office and issued a “Comprehensive plan for Reorganizing the Executive Branch and Reducing the Federal Civilian Workforce.” Agencies’ FY 2019 budgets are expected to include “agency reform plans” that make proposals for eliminating activities, restructuring or merging, improving organizational efficiency and effectiveness, and workforce management.
Alongside submission of their budget proposals, agencies are also tasked with submitting draft strategic plans covering FY 2018-2022, a draft FY 2019 performance plan, and agency priority goals for FY 2018-2019. OMB will work with federal departments and agencies over the next several months to prepare the final FY 2019 budget request, which will be delivered to Congress in February 2018.