According to Longest (2010), the President’s Office of Management and Budget develops a 5-10 year budget request for Congress. The annual budget request includes the President’s recommendations on how much funding should be appropriated to each “discretionary” program, a general overview of the U.S. budget, tax revenue, estimated deficit or surplus, and any suggested changes in funding mandatory programs or taxes (Longest, 2010). The discretionary budget for fiscal year 2016, which begins October 1, 2015 to September 30, 2016, was $1.168 trillion (Amadeo, n.d.). President Obama has recommended that Congress appropriate $79.9 billion to Health and Human Services (Amadeo, n.d.). Longest (2010) states that Congress takes the President’s suggestions into consideration and then direct the House and Senate to develop a budget resolution. The budget resolution then goes to the floor to be amended and hopefully passed by both House and Senate by April 15. The budget resolution also includes a “302(a) allocation” which determines the total amount of funding, or budget authority, for each of the 19 budget functions or federal spending categories. The House and Senate Appropriations Committees divide up the total amount of funding in 302(a) allocations to 302(b) allocations and then 12 subcommittees appropriate the money into specific programs (Longest, 2010). The 12 subcommittees must produce 12 Appropriation Bills by June 10 (Amadeo, n.d.). All 12 bills must be approved by the House and Senate by June 30 and submitted to the President for approval or veto before the fiscal year starts on October 1 (Amadeo, n.d.). If all Appropriation Bills are not passed by October 1, a continuing resolution may be passed by Congress or else there is a “government shutdown,” or closure of some federal programs (The Committee for a Responsible Federal Budget, 2014).
Arizona received $12.8 billion from federal funds in fiscal year 2014 and $16 billion from state funds (Ballotpedia, n.d.). Arizona’s Budget Process (n.d.) for General Appropriations to state agencies starts on July 1, 2015 to June 30, 2016 for fiscal year 2016. State agencies must have submitted their budget requests to the Governor’s Office of Strategic Planning (OSPB) by September 1, 2014. General Appropriations at the state level must also be passed by the House and Senate and signed by the Governor or pass with two-thirds vote in both the Senate and the House (Arizona’s Budget Process, n.d.). While other state programs suffer from budget cuts, the Arizona Medical Marijuana Program is self-funded and generates a surplus for the state. An estimated $112 million was generated in marijuana sales in 2013-2014 (Arizona Department of Health Services, 2014). Revenue is also generated from the dispensary application fee, renewal fee, patient ID registration fee, caregiver fee, dispensary agent fee, and sales tax (State Medical Marijuana Programs’ Financial Information, 2013). Expenses include salaries, wages, and benefits for employees, operating expenses, and capital equipment (State Medical Marijuana Programs’ Financial Information, 2013).
Amadeo, K. (n.d). Federal budget process. Retrieved from http://useconomy.about.com/od/fiscalpolicy/p/Who_budget.htm
Amadeo, K. (n.d.). Current US discretionary federal budget and spending. Retrieved from http://useconomy.about.com/od/usfederalbudget/p/Discretionary.htm
Arizona’s Budget Process. (n.d.). Retrieved from http://www.azleg.gov/jlbc/budgetprocess.pdf
Arizona Department of Health Services. (2014). Arizona medical marijuana act end of the year report. Retrieved from http://azdhs.gov/documents/preparedness/medical-marijuana/reports/2014/arizona-medical-marijuana-end-of-year-report-2014.pdf
Ballotpedia. (n.d.). Arizona State Budget and Finances. Retrieved from http://ballotpedia.org/Arizona_state_budget_and_finances
State Medical Marijuana Programs’ Financial Information (2013). Retrieved from http://www.mpp.org/assets/pdfs/library/State-Medical-Marijuana-Programs-Financial-Information.pdf
The Committee for a Responsible Federal Budget. (2014). Appropriations 101. Retrieved from http://crfb.org/document/appropriations-101