1. Where your money goes
Chapter 10.2 & 10.3

2. Budget Simulation Recap
What did you feel you learned from the process?
Was it difficult to balance the budget?
What do you think the president and congress should do to balance the budget in real life?

3. Funding Recap Federal Funding State Funding Local Funding
Individual Income Tax
Social Security Taxes (FICA)
Corporate Income Tax
State Funding
Intergovernmental Revenue
Sales Tax
Local Funding
Property Tax
Other

4. Government Expenditure
What does the government spend money on?

5. Federal Budget 2016 Federal budget is $3.999 Trillion
$3.525 trillion in revenue
$474 billion deficit
Deficit vs. debt?

6. Deficit vs. Debt Fiscal year 10/1 – 9/30
Why?
Deficit – fiscal year short fall
Debt- many years of running a deficit
Budget Deficit vs. Budget Surplus

7. US National Debt Current debt is $16.8 Trillion
We add about $3.8 billion a day
If spread out, about $53, (or so) Per capita
Total debt is 75% of GDP

8. Budget Process

9. Budget Expenditures Federal Spending State Spending Local Spending
Social Security
Defense
Medicare
State Spending
Intergovernmental Expenditure
Public Welfare
Unemployment
Local Spending
Elementary and Secondary Education
Other
Utilities

10. How do we get out of debt?

11. Deficit Spending
Crowding-out Effect

12. Government solutions “Pay as you go” Line Item Veto Spending caps
Reduction in entitlements