1. The Federal Budget Process AP Government Economic Policy Unit

2. Entitlements Federal programs that guarantee a specific level of benefits to persons who meet requirements set by law Person is “entitled” to benefits if they meet the criteria set by the federal government Spending on entitlements is mandated by the Federal law

3. Examples -Social Security -Medicare -Medicaid -V.A. Programs -Unemployment Programs -Food Stamps -Retirement Plans for Federal Employees

4. Entitlements Positives Provides needed benefits to American citizens Government cannot delay or avoid payment in the budget Negatives No Congressional discretion on money allotted 2/3 of budget Less money for discretionary spending

5. Proposed at the State of the Union Message in January The Budget Process

6. Office of Management and Budget (OMB) OMB sends instructions to agencies Agencies send requests to OMB OMB revises the budget

7. Congressional Budget Office (CBO) President submits budget to Congress by the first week in February CBO looks over and sends report to both chambers of Congress

8. Appropriations Committee The appropriations committee holds hearings and sets budget targets Reconciliation bills are made of budget does not meet targets

9. Finalizing the Budget By October 1 st, all appropriations bills should be passed If they are not passed, Congress has to pass a continuing resolution where agencies run on last year’s budget