First, 8 states have biennial legislative cycles and hence necessarily have biennial budget cycles. As we noted in our review of state balanced budget practices, state budgets fill a different role, may be sensitive to different outside pressures, and are otherwise not directly comparable. In Arizona “major budget units”—the agencies with the largest budgets—submit annual requests; these budgets are also the most volatile and the most dependent on federal funding. In Kansas the 20 agencies that are on a biennial cycle are typically small, single-program or regulatory-type agencies that are funded by fees rather than general fund revenues. Budget agreements, authorizations, budget resolutions, and appropriations need not cover the same time period. Biennial budgeting proposals seek to change the frequency with which decisions are made—from annual to biennial budget decisions. Even within that 36 percent of the budget on an annual appropriation cycle, not all appropriations were for 1-year funds. Although preparation and analysis for the annual budget preparation and submission process is time-consuming and burdensome for program managers, they are likely to have a greater interest in how long money is available for use. A 2-year appropriation cycle could lessen congressional influence or control over program and spending matters, largely because the process would afford fewer scheduled opportunities to affect agency programs and budgets.
Why GAO Did This Study

GAO discussed several proposals to change the budget process from an annual to a biennial cycle.

What GAO Found

GAO noted that: (1) many congressional members believe a biennial budget cycle would streamline the budget process, provide longer-term funding levels, enhance agencies' ability to manage their programs, and provide more time for congressional oversight; (2) preparation and analysis for the annual budget process is time-consuming and burdensome for program managers; (3) although eight states have biennial budget cycles, state budgets fill a different role and are sensitive to different outside pressures; (4) the state agencies with the largest budgets submit annual budget requests, since these budgets are the most volatile and dependent on federal funding; (5) the state agencies that are on biennial budget cycles are typically small, single-program agencies that are funded by fees rather than general fund revenues; (6) budget agreements, authorizations, and budget resolutions do not have to cover the same time period; (7) Congress has routinely provided multiyear appropriations for those programs on the annual appropriation cycle; and (8) a 2-year budget cycle could lessen congressional control over program and spending matters.