Office of the Director of U.S. Foreign Assistance
April 10, 2007
Fiscal Year 2008 Budget Process PDF version
This first-ever integrated budget makes efficient, effective and strategic use of the American taxpayers' money to maximize country progress and aid states critical to long-term stability and prosperity.
Step One: Input from Embassies and USAID Missions around the World
- Field staff outlined funding priorities in Mission Performance Plans and USAID Annual Reports.
Step Two: Guidance from the Office of Management and Budget (OMB) Issued
Step Three: Initial Budget Numbers Issued by Country
- Based on funding levels included in OMB guidance, also took into account multiple factorsó
- Foreign policy priorities; security policy priorities; indicators related to political rights and corruption, development gap (as measured by per capita income, child mortality, total fertility, sanitation, youth literacy overall, and youth literacy by gender), and population.
- Countries where known and widely accepted Congressional and executive mutual support allocated separately (e.g. Israel and Egypt)
- Non-country programs (e.g. centrally managed, emergency funding) allocated separately
Step Four: Staff Level Allocation to Programs Aimed at Country Progress
- Teams of experts from State and USAID used the following tools to allocate funding within countries:
- Chief of Mission statements from Mission Performance Plans, USAID Annual Reports, and foreign policy priorities as identified by Regional Assistant Secretaries;
- New Foreign Assistance Strategic Framework and country category guidance;
- Graphs identifying gaps between the country's performance (based on independent indicators) and the average performance of countries in the next highest category;
- Work being done by other USG agencies in-country, including funding level and focus of funds under the Presidents Emergency Plan for AIDS Relief and Millennium Challenge Account; and
- Additional input from field teams
- Where initial funding levels were insufficient to drive country progress, teams submitted reclamas.
Step Five: Regional and Functional Leadership Review
- Chaired by the Director of U.S. Foreign Assistance and organized by region, senior staff (regional and functional Deputy Assistant Secretaries and Deputy Assistant Administrators) reviewed five questions:
- Did we get the initial overall funding level right?
- Did we get the mix among objectives (such as investing in people or peace and security) right?
- Did we get the mix among country categories within the region right?
- How would you prioritize additional funding among countries in the region?
- How would you prioritize additional funding among the objective and country categories?
Step Six: Secretary's Senior Review
- Chaired by the Secretary, Assistant Secretaries, with leadership from Assistant Administrators, led seven reviews (one per region, plus one on international organizations) using a template that provided a global view and allowed for comparison across and among regions.
Step Seven: Final Analysis & Adjustments
- The Secretary and Director of U.S. Foreign Assistance finalized numbers based on outcome of previous steps, Congressional priorities, Administration priorities and additional input from the field.
Step Eight: Attach Funding to Appropriate Accounts
- Used account authorities and common principles to walk funding allocations back to account levels and submitted final package to OMB.
Step Nine: After Action Review and Adjustments to the FY 2009 Process