Here is another explaination from Ron Gotcher regarding the July fiasco:
http://www.immigration-information.c...-reform-13887/
First, I have to object to the use of the term "fiasco." That is a CIS term. To them it was a fiasco, but one that was prompted by their incompetence. For everyone else, it was a welcome slap in the face of the CIS that forced them to get their act together and start doing their job.
The CIS did not then and does not now have anything at all to do with setting Visa Bulletin cutoff dates. The cutoff dates are managed by the State Department. That agency is responsible for allocating visas each year and, more importantly, seeing to it that visas are not wasted under the quota. According to the USCIS Ombudsman, prior to 2007 the INS and the CIS, through their incompetence, had wasted more than 600,000 visas in the 1995-2006 interval. They did this by failing to approve enough adjustment of status applications each year to use up the quota. If visas are not used in the year in which they are allocated, they are lost forever.
In 2007, the State Department saw that the CIS was on pace to approve about 85,000 adjustment applications. That would have resulted in at least 40,000 visas being wasted. To prevent that from happening, the State Department decided to make everyone "current" in the month of July. That allowed overseas consular posts to issue visas to people who had opted for consular processing and those additional visa issuances would have then exhausted the quota. It also acted as a humiliating slap in the face to the CIS and forced them to start approving cases at a faster rate.