The Federal Government is the only government that can spend more than it receives. Current Debt: $16.4 Trillion Current Deficit: 1.1 Trillion (for 2012);

Slides:

Advertisements

Similar presentations

JEOPARDY #4 Ch POT LUCKWon’t Budge-it! A Taxing Effort More Budgetary Concerns Acting with Resolve! Number Nuisance

Advertisements

The Federal Budget Process AP Government Economic Policy Unit.

Chapter 14 Economic Policy Basic Economic Issues Fiscal Policy Monetary Policy Deficit Spending Budget Process.

The Budget: Congress and the President. Incrementalism  Incrementalism: Budget predictor of this years budget by looking at what an agency received last.

Sequestration How Does it Work. Passed the Congress in August 2011 Established the Joint Select Committee on Deficit Reduction It’s the Law! P.L

Budget, Deficit, Debt By PresenterMedia.com PresenterMedia.com.

Review Part 16 The Federal Budget.

Inside Deficit Reduction: What Now? Budget Control Act of 2011 – Post Super Committee Katherine Hayes, JD Associate Research Professor December 2, 2011.

Federal Government Expenditures. Federal Budget –An annual plan outlining proposed revenues and expenditures for the coming year –Consists of: Mandatory.

March 7, 2005 Congressman Jim Kolbe (R, Arizona 8 th ) –Arizona Senate –Elected to the U.S. House in 1984 –Chairs the Appropriations Foreign.

Federal Budget. What Is the Budget? a plan for how the government spends taxpayers‘ money. What activities are funded? How much should we spend for defense,

Federal Budget Process

The Federal Budget Process. What is the Federal Budget Process  A Set of Rules and Institutions for Making Tax (revenue) and Spending Decisions  A Result.

Chapter 14: The Federal Budget

The Budget Control Act of 2011 The New Debt Deal Presenter: Ann Sullivan, Madison Services Group, Inc. Date: August 2, 2011.

Your tax dollars at work Congressional Budget Process Enacted to bring order to decision making of how to Establishes timetable for orderly decision.

Budget Politics PS 426 April 7, Budget categories, 2008.

The Federal Budget and Social Security. Introduction Key Terms – Budget – A financial plan for the use of money, personnel, and property. – Balanced Budget.

Financing Government Chapter 16 Notes

The Congress, the President, and the Budget: The Politics of Taxing and Spending Chapter 14.

Chapter 3 Budget Structures and Institutions

THE CONGRESS, THE PRESIDENT, AND THE BUDGET: The Politics of Taxing and Spending.

Expires May 15, The Congress, the President, and the Budget: The Politics of Taxing and Spending Chapter 14.

Economic Theory Laissez-Faire Theory that dominated American economic policy (or the lack thereof) in the early years Basic idea is that market will correct.

POLS /25/04 The Federal Budget and Process.

The Congress, the President, and the Budget: The Politics of Taxing and Spending Chapter 14.

What do we need in place for our government to function? 1) Every government program has to be authorized 2) Every government program has to be funded.

Government Finances Chapter 25. The Federal Government Section 1.

Sources of Federal Revenues

The Congress, the President, and the Budget: The Politics of Taxing and Spending Chapter 14.

Creating the Federal Budget: Congress & The President.

NARFE LEGISLATIVE CONFERENCE March 2011 – Alan Lopatin and Julie Tagen.

Chapter 14 Vocabulary.  Budget - A policy document allocating burdens (taxes) and benefits (expenditures)  Deficit - An excess of federal expenditures.

Budget 101 Workshop Committee for Education Funding April 29, 2011 Stephanie Giesecke NAICU.

Raising Money Types of Taxes Managing the Country’s Money.

Unit IV – Legislative & Executive Taxing & Spending: The Budget Process.

Chapter 16: Financing Government Section 3. Copyright © Pearson Education, Inc.Slide 2 Chapter 16, Section 3 Objectives 1.Identify the key elements of.

Budget Plan for managing and spending money. Plan for managing and spending money. Governments create budgets to help them make decisions because of limited.

Public Policy and The Budget Process. I. Economic Policy A.Monetary v. Fiscal Policy 1. The government uses monetary policy to influence the economy by.

SOME BASIC INFORMATION Policy document allocating burdens and benefits FEDERAL gov. funds a substantial and diverse range of programs and activities from.

Congress at Work Taxing and Spending Bills Chapter 7, Section 2.

THE BUDGET. Fiscal Policy Fiscal Policy is the impact of the federal budget on the economy- -for example- taxes, spending and borrowing--so in talking.

Bell Work: 1. How much money does the US spend per year? 2. Why is the budget important? What is it? Federal Budget.

Congress, the President, and the Budget. The debt and the deficit Budget deficit – spending > revenues in a year Budget deficit – spending > revenues.

Spending. I. Where the money is spent (2010 figures): A. Medicare & Medicaid: 23% B. Social Security: 20% C. Net Interest payments: 6% D. Defense: 20%

THE APPROPRIATIONS PROCESS RITA MARTIN CSAVR DEPUTY DIRECTOR.

Economic Policy and The Budget Process. I. Economic Policy A.Monetary v. Fiscal Policy 1. The government uses monetary policy to influence the economy.

It costs trillions of dollars to run the national government every year. The Constitution gives Congress the authority to decided where the money will.

Fiscal Policy= Congress+ President Budget: – A policy document allocating burdens (taxes) and benefits (expenditures). Deficit: – An excess of federal.

Fiscal Policy What is unemployment and the types? What effects does unemployment have on the economy?

BORROWING MONEY AND PUBLIC DEBT. HOW DOES THE GOVERNMENT BORROW MONEY?  Article 1, Section 8, Clause 2 gives congress the power to “borrow money on the.

Chapter 10 Sections 2,3 & 4 By: Colette Spencer. Federal government has two kinds of spending: 1) goods and services Tanks, planes, space shuttles Office.

Federal Government Finances Fiscal Year- A 12-month financial planning period that may or may not coincide with the calendar year. The government’s fiscal.

Fiscal Policy By: Brandon Harrington Andrew Milcovich Tillman Pugh Justin Zoetewey.

FEDERAL BUDGET. TODAY’S OBJECTIVE After today students will be able to… Explain what motivations and interests determine the federal budget\ Essential.

+ Welcome C&E Students!!! Would you rather defend yourself against an army of Smurfs or an army of Carebears?

The Budget. Review terms: Budget: – A policy document allocating burdens (taxes) and benefits (expenditures). Expenditures: – What the government spends.

Chapter 7: The Executive Branch at Work Section 3: Financing Government (pgs )

Sequestration and the FY 2013 Federal Budget

Learn the Appropriations Process

Economic Policy and The Budget Process

Chapter 7 Sect 3 Mr. Plude.

The Federal Budget Rixie.

Congressional Budget Process

Does the federal government budget and spend your tax dollars wisely?

5.4 Describe the concept of an iron triangle relationship.

BUDGET STUDENT NOTES.

The Federal Budget Process

Financing Government Chapter 16.

Presentation transcript:

The Federal Government is the only government that can spend more than it receives. Current Debt: $16.4 Trillion Current Deficit: 1.1 Trillion (for 2012); so far in 2013, about $290.4 billion What is your opinion on this statement? Should the federal government be able to do this or have a balanced budget?

The Budget Read the provided handout on the budget process. Answer the worksheet questions either as you read or after you read. Your answers should be specific and detailed.

The Basics

What is the Constitutional basis for the Federal Government’s Budgetary power? Article I Section 8: “Lay and collect taxes”, pay debts, provide for common defense, general welfare Article I: House initiates appropriations Article I: Congress given power to “borrow money on the credit of the US” Amendment XVI: income taxes NOTE: Congress can only appropriate money that is budgeted

What is the President’s role? The OMB? The CBO? Federal agencies submit expenses and requests to OMB OMB reviews and revises and helps to create President’s budget Budget is for a Fiscal Year (FY) that runs from October 1- Sept 30 President submits budget to Congress in February CBO reviews proposals to submit to House and Senate Budget Committees

What is Congress’ role in the budget process? Appropriations committees review budget and submit budget resolutions (max amounts for spending) to each of their respective chambers Resolutions contain estimates of spending and recommendations for revenue April 15: budget must be passed by Congress and signed by President If NOT, emergency spending legislation must be passed to avoid shutdown

The Congressional Budget and Impoundment Control Act of 1974 Eliminates subcommittee control of spending President can’t cut programs unilaterally by impounding funds Created a calendar for the process with procedures for each branch Created Budget committees in Congress Created CBO as a check on OMB

Where does the government’s money come from? Revenues Social Security Taxes 40% Corporate Income Tax 9% Individual Income Tax 42% Other 9%

Where does the money go? Spending Social Security 21% Medicare/Medicai d 20% Other Mandatory 13% Interest on Debt 8% Defense 20% Non-Defense Discretionary 18% 2/3 of the Federal Budget is mandatory spending. Entitlements are the fastest growing area of spending.

Gramm-Rudman Hollings Balanced Budget and Emergency Debt Control Act of 1985 (GRHBBEDC) “A bad idea who’s time has come.” -Sen. Warren Rudman

Failed Attempts: What did Graham- Rudman do? Why didn’t it work? Targets set for budget to cut deficit. Cuts each year from ‘86- ’91 If targets weren’t met, automatic cuts were made President and Congress found loopholes Does this remind you of a certain, economic/government related current event???

GRH was replaced by the Budget Enforcement Act (BEA) of 1990 Congress increased taxesSet limits on discretionary spending If limits were exceeded in one program, Congress must cut spending in another

Budget Control Act of 2011 Raises debt ceiling to $16.4 Trillion (wait…haven’t we reached this already???) Congressional Joint Select Committee on Deficit Reduction ( the “Super committee”) Automatic Budget SequestrationOption for Balanced Budget Amendment