1. FEDERAL BUDGET

2. TODAY’S OBJECTIVE After today students will be able to… Explain what motivations and interests determine the federal budget\ Essential Skill: Examine information from more than one point of view

3. REVENUE (RECEIPTS) & SPENDING (OUTLAYS) Revenue Money that the federal government takes in Individual income tax Social insurance tax, such as Social Security and Medicare Corporate income tax Estate and gift taxes Spending Social Security Medicare/Medicaid Defense Unemployment compensation Spending on health, education, and transportation

4. FEDERAL DEFICIT V. DEBT Deficit The YEARLY difference between the government’s outlays and receipts. The difference between what they spend and what they take in Debt The accumulated debt throughout multiple years Add up the deficits to get the total national debt https://www.nationalpriorities.org/budget- basics/federal-budget-101/spending/

5. THE BUDGET PROCESS Proposed at the State of the Union message in January

6. OFFICE OF MANAGEMENT AND BUDGET (OMB) Responsible for preparing the federal budget OMB sends instructions to agencies Agencies send requests to OMB OMB revises the budget

7. APPROPRIATIONS COMMITTEE The appropriations committee holds hearings and sets budget targets Reconciliation bills are made if budget does not meet targets

8. FINALIZING THE BUDGET By October 1 st, all appropriations bills should be passed President will sign or veto the bills If they are not passed, Congress has to pass a continuing resolution where agencies run on last year’s budget

9. BUDGET PRIORITIES Number each of the budget options in terms of how high you rank it on priority Then answer Question A Share your response with a partner

10. DISTRICT ROLES Each district has a description Discuss and decide on your priorities for round #2 Then answer question B Be prepared to share your answers

11. CONCLUSION How might changes in personal income and corporate earnings impact how much tax revenue the government receives How do changes in demographics, the economy, war, and other emergencies affect spending? How does a change in spending impact the budget surplus/deficit? The national debt?