What is the overhang? Why is it a concern? Identify and describe four limitations on the ability to control the budget process as they directly related to the concept of the overhang.

What will be an ideal response?

The money that Congress appropriates for a fiscal year but is not spent during that year is part of the overhang. The money need not be spent during the fiscal year, but it must be obligated. Having to address an overhang from previous budget years reduces the amount of funds available for spending during the current fiscal year. The overhang makes it difficult for a president to use the budget as an instrument of economic management. The president and Congress cannot always control the outlay of funds. Agencies may have sufficient budget authority, through this ability to obligate money, to damage presidential forecasts of spending. Students can discuss four of the following as budget control problems: intergovernmental budget control, reprogramming and transfers, the defense budget, supplemental appropriations, earmarks.