Federal Budget. What it is kEstablishes nation’s priorities by determining the amount of money programs receive each year. kDeveloped by President & Congress.

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Presentation transcript:

Federal Budget

What it is kEstablishes nation’s priorities by determining the amount of money programs receive each year. kDeveloped by President & Congress kEstablishes nation’s priorities by determining the amount of money programs receive each year. kDeveloped by President & Congress

Process kGovernment and Congress make budget annually. kNO Federal agency or programs can operate without consent & funding from congress. kCongress grants authorization Bill, which provides program’s goals, congress’s rules & regulations, and requesting agency’s spending limits kGovernment and Congress make budget annually. kNO Federal agency or programs can operate without consent & funding from congress. kCongress grants authorization Bill, which provides program’s goals, congress’s rules & regulations, and requesting agency’s spending limits

kCongress is responsible for raising money for federal government by maintaining/ increasing current taxes & authorizing U.S. Treasury to borrow money. kThe House and Senate approve a joint budget resolution by April of each year. kProvides limits for government’s budget. kCongress is responsible for raising money for federal government by maintaining/ increasing current taxes & authorizing U.S. Treasury to borrow money. kThe House and Senate approve a joint budget resolution by April of each year. kProvides limits for government’s budget.

Programs kThe two major programs are Social Security and Medicare iThese programs ensure certain levels of benefits to retirees. Yet as the number retirees go up, the programs face shortages unless major adjustments are made. iExpected to be a shortfall of programs by kThe two major programs are Social Security and Medicare iThese programs ensure certain levels of benefits to retirees. Yet as the number retirees go up, the programs face shortages unless major adjustments are made. iExpected to be a shortfall of programs by 1940.

Social Security kIs the most expensive federal program established in 1935 to fight poverty. kServes more than 47 million Americans. kReduced Poverty from 50% in 1930 to 10%. kIs the most expensive federal program established in 1935 to fight poverty. kServes more than 47 million Americans. kReduced Poverty from 50% in 1930 to 10%.

Social Security Spending kSource: Spending and Revenues from CBO Long- Term Budget Outlook, December 2007

Current Issues kNATIONAL DEBT iCurrently the national debt is 9,410,900,000,000. iEconomists fear deep debt could put damper on long term investments iPuts a damper on country’s economy making it almost impossible for the 21st century Americans to enjoy same standards of living as previous generations. kNATIONAL DEBT iCurrently the national debt is 9,410,900,000,000. iEconomists fear deep debt could put damper on long term investments iPuts a damper on country’s economy making it almost impossible for the 21st century Americans to enjoy same standards of living as previous generations.

Cost of War kSource from WAR RESISTERS LEAGUE kThere will be an additional $130 million dollars making it a total of $200 million kSource from WAR RESISTERS LEAGUE kThere will be an additional $130 million dollars making it a total of $200 million

How is Government is involved kThe executive branch, which is the Office of Management (OMB) is responsible for coming up with President’s budgets for the fiscal year. kThe President depends on OMB to produce budget that reflects administration’s priorities. kThe executive branch, which is the Office of Management (OMB) is responsible for coming up with President’s budgets for the fiscal year. kThe President depends on OMB to produce budget that reflects administration’s priorities.

Government Spending kThe Government is broken down into 4 main categories iNONDEFENSE: including environmental protection, education, highway construction iDEFENSE: consumes $447 billion not including additional funds for wars. iMANDATORY: funds programs like S.S, Medicare, Medicaid iANNUAL INTEREST ON NATIONAL DEBT: in 2006 it was expected to be $211 billion kPays interest on money borrowed from the past to pay for deficits. kThe Government is broken down into 4 main categories iNONDEFENSE: including environmental protection, education, highway construction iDEFENSE: consumes $447 billion not including additional funds for wars. iMANDATORY: funds programs like S.S, Medicare, Medicaid iANNUAL INTEREST ON NATIONAL DEBT: in 2006 it was expected to be $211 billion kPays interest on money borrowed from the past to pay for deficits.

Solutions kBalanced Budget Act iCreated Significant spending cuts as well as tax increases iCreated a surplus for the first time in 30 years -The presidential Election could also make a difference on how our debt changes. kBalanced Budget Act iCreated Significant spending cuts as well as tax increases iCreated a surplus for the first time in 30 years -The presidential Election could also make a difference on how our debt changes.