Office of Management and Budget

The Office of Management and Budget (OMB), formerly the Bureau of the Budget, is an agency of the federal government that evaluates, formulates, and coordinates management procedures and program objectives within and among departments and agencies of the Executive Branch. It also controls the administration of the Federal Budget, while routinely providing the president of the United States with recommendations regarding budget proposals and relevant legislative enactments. The Bureau of the Budget was first established in the Executive Office of the President pursuant to Reorganization Plan No. 1 of 1939 (5 U.S.C.A. app.), effective July 1, 1939. Its functions were reorganized and the office renamed OMB by Executive Order No. 11,541 of July 1, 1970. Since the reorganization, the OMB has played a central role in analyzing the federal budget and making recommendations for changes in the budget. Its director, who is appointed by the president, is a key advisor on fiscal policy. The director often appears before congressional committees to explain budgetary proposals.

The OMB assists the president in developing and maintaining effective government by reviewing the organizational structure and management procedures of the executive branch to ensure that the intended results are achieved. It works to develop efficient coordinating mechanisms to implement government activities and to expand interagency cooperation.

The OMB assists the president and executive departments and agencies in preparing the budget and in formulating the government's fiscal program. It also publishes the president's proposed Budget of the U.S. Government every year. Once Congress approves a budget, the OMB supervises and controls the administration of it. In addition, it advises the president on proposed legislation and recommends to the president whether to sign or Veto legislative enactments.

The office also assists in developing regulatory reform proposals and programs for paperwork reduction, especially reporting burdens of the public. The OMB helps in considering, clearing, and, where necessary, preparing proposed executive orders and proclamations that will have an impact on the federal budget.

The OMB has assumed an oversight role in determining the effectiveness of federal programs. It plans and develops information systems that provide the president with program performance data, and it plans, conducts, and promotes evaluation efforts that assist the president in assessing program objectives, performance, and efficiency.

The office also keeps the president informed of the progress of government agency activities with respect to work proposed, initiated, and completed. It coordinates work among the agencies of the executive branch to eliminate overlap and duplication of effort and to ensure that the funds appropriated by Congress are expended in the most economical manner.

Finally, OMB works to improve the economy, efficiency, and effectiveness of the procurement processes by directing procurement policies, regulations, procedures, and forms for the executive branch.

OMB is comprised of divisions that are organized by agency or program area and also by function. Resource Management Offices develop and support the president's Budget and Management proposals. The Budget Review Division provides technical support for budget-related negotiations and decisions. The Legislative Reference Division coordinates the position of the administration regarding budget-related legislation. Statutory offices include the Office of Federal Financial Management, the Office of Federal Procurement Policy, and the Office of Information and Regulatory Affairs.

Further readings

Office of Management and Budget. Available online at <www.whitehouse.gov/omb> (accessed August 1, 2003).

Cross-references

Executive Branch.