Isn't this the way it should be working? Allocate X dollars to group. Group really needs X + Y dollars to do everything they want so they create a group to review all the projects and allocate the dollars. If you don't have enough funding, programs WILL be cut or scaled back. Save program A and program B is cut, which costs jobs around program B. Congrats though, program A's jobs are intact.
Prioritization sucks but if you don't have all the funding you need you have to make the call at some point. Having a (theoretically neutral) group review everything and make the call is better than having Congress make the decisions for you. And yeah, it would be much better for everyone if there was enough funding, that's the easy way out of this dilemma.
-- Ravensfire