1. Today’s Schedule – 11/21 Government Spending PPT Presidential Budget Analysis HW – Read 15.1/15.2

2. Types of Spending Mandatory- Money lawmakers are required by law to spend on certain programs – Also to pay down national debt Discretionary- Money lawmakers can make choices

3. Mandatory- Entitlement Entitlement- social welfare programs that people are entitled to if meet specific requirements – Increasing cost as more people qualify – Once terms are set, cannot control number of people who qualify

4. Mandatory- Social Security Largest category of federal spending Used by 50million + Still going to be around when you retire? – 1995: 4 ppl paying taxes for 1 SS recipient – 2050: 2 ppl paying taxes for 1 SS recipient

5. Mandatory- Medicare Medical care for those 65+ – Also those with disabilities

6. Mandatory- Medicaid Medical benefits for low income families – States share costs with federal government – Largest source of assistance funding for low income families

7. Discretionary Spending- Defense Half of discretionary spending Salaries of armed forces members – As well as civilian employees Purchase of equipment and maintenance of bases

8. Discretionary Spending- Other Education Law enforcement Housing National Parks Environment Transportation Foreign aid

9. Federal Aid to State/Local Govt. $406 billion sent to state/local govts. Some program costs are shared – Medicaid, unemployment, hwy construction, education, low income housing, mass transit Any federal funding must be used exactly as specified