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9 Pol'y Persp. 2 (2002)

handle is hein.journals/plyps9 and id is 1 raw text is: POLICY PERSPECTIVES EMERGENCY APPROPRIATIONS AND THE FISCAL RESPONSE TO SEPTEMBER I I By George L. Ward Abstract: One of the prominent features of the Budget Enforcement Act of 1990 (BEA) is theprovisionforemergency spending. Since the implementation of the BEA, emergency supplemental appropriations have been granted in a variety of situations, from droughts to wars and earthquakes to riots. Most recently, appropriations were made available in response to the September 11 terrorist attacks on the United States. This article describes the emergency appropriations process following the attacks. Additionally, proposed alternatives to the current appropriations process are presented and assessed in light of the events of September 11. The terrorist attacks of September 11, 2001, brought unprecedented destruction to the United States. More than 3,000 lives were lost and billions of dollars worth of damage occurred. Three days after the attacks, Congress introduced legislation that provided 40 billion dollars to federal agencies and affected communities for relief and counter-terrorism efforts. This legislation represented one of the first official acts of response to the attacks and helped open the way for the nation to heal. On occasion, unforeseen events occur, such as the September 11 attacks, that the traditional federal budget process is not suited to handle. The current budget process, which can take 18 months or longer from the time a need is identified to the moment funds are made available, has an inadequate time frame for effectively responding to sudden emergencies. Events such as earthquakes, floods, wars, and terrorist attacks require immediate funding to mitigate damage, protect lives and property, and prevent further losses. Accordingly, Congress established procedures outlined in the Budget Enforcement Act of 1990 (BEA) that give Congress and the president authority to designate emergency funds when deemed necessary. This article provides a review of the emergency appropriations process as outlined in the Budget Enforcement Act, including examples of when and how emergency appropriations have been implemented during the past decade. Additionally, it will describe the most recent case involving emergency appropriations, which emerged in response to the terrorist attacks of September 11. In conclusion, alternatives to the current emergency appropriations process will be presented, and the merits of each will be assessed in light of the emergency appropriation following the September 11 attacks. The Emergency Appropriations Process Emergencies and the Budget Enforcement Act Prior to the Budget Enforcement Act of 1990, Congress and the president had few limitations to appropriating supplemental funds when emergencies occurred. Discretionary funds were often tapped when a need arose for additional monies to spend on events that could only qualify as an emergency under the most liberal definition of that word. The Budget and Impoundment Control Act of 1974 was an early attempt at curbing emergency spending: The 1974 Act required that the totals in both the President's budget request and the Congressional budget resolution reflect an allowance for contingencies and 'unanticipated uncontrollable expenditures' for the upcoming fiscal year-that is, amounts that might later need to be provided through supplementals (CBO, 2001, 2). George Ward is a Master of Public Administration degree candidate at The George Washington University. Mr Ward is currently a Presidential Management Intern at the US. Department of State. He received a bachelor s degree in Economics from Brigham Young University and a Masters degree in Economics from the University of Delaware. 2

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