Beginning in the fall, each agency with a health-spending mandate formulates a budget proposal for the fiscal year that will begin the following autumn. The agencies are all part of the executive branch of the federal government, which is under the authority of the president, and they base their proposals on a combination of factors. First, there are priorities set by their directors (most of whom are answerable up the chain of command to members of the president's cabinet). Then there are their own internal projections, as well as external research and data, plus guidance they receive directly from the White House and the Office of Management and Budget (OMB). During this process, the agencies maintain close contact with the OMB examiners assigned to them.
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