1. 1 Chapter 7 Budget Preparation: The Decision Process Decisions on Budget Requests Budget Documents

2. 2 Decisions on Budget Requests Concerns of the Chief Executive Strategic Concerns Sense of priorities Economic impact of the budget Social justice and immigration Generational effects Other concerns?

3. 3 Decisions on Budget Requests Concerns of the Chief Executive (continued) Use of cost-effectiveness analyses Projections for budget surpluses and deficits Tactical Concerns Reactions from public and legislature, intergovernmental reactions

4. 4 Decisions on Budget Requests Revenue Deliberations Revenue estimates for each revenue source Limitations on taxes Balanced budget requirements and revenue estimates Eliminating some tax expenditures as an alternative to raising taxes Tax earmarking—Balkanizing decision making

5. 5 Decisions on Budget Requests Spending Deliberations Entitlements and other commitments Competition among organizations for role in budget decision making Office of Management and Budget, Council of Economic Advisers, Director of National Intelligence, etc.

6. 6 Decisions on Budget Requests Spending Deliberations (continued) Budget office roles Agency expectations and deliberations Competition for funding, across-the-board cuts

7. 7 Decisions on Budget Requests Spending Deliberations (continued) Budget office and agency relations How is the budget office organized to work with agencies? Budget office recommendations to the chief executive Serves the executive’s priorities Provides neutral competence

8. 8 Decisions on Budget Requests Downsizing, Rightsizing, and Spending Cutbacks Fiscal stress forces cuts in spending in the short-term and long-term Cutback management Budget office often increases its role during periods of cutbacks

9. 9 Decisions on Budget Requests Downsizing (continued) Legislatures may both push for cutbacks and try to block them What areas are common targets for budget cutting? How does budget cutting relate to systems of budgeting (see Chapter 6)?

10. 10 Decisions on Budget Requests Final Preparation Deliberations Chief executive deeply involved Who looks at the budget as a whole during this part of budget preparation? Give examples of tradeoffs that must be made in putting a budget together

11. 11 Budget Documents Number and Types of Documents Document characteristics Physical size, use of charts and other illustrations, amount of space devoted to revenues and expenditures, space devoted to each department and organization Budget-in-Brief

12. 12 Budget Documents Number and Types of Documents (continued) Federal Budget Documents Budget of the United State Government Budget Appendix Analytical Perspectives Historical Tables Other relevant OMB documents—PART, etc.

13. 13 Budget Documents Number and Types of Documents (continued) Other Federal Documents Economic Report of the President Combined Statement of Receipts, Outlays, and Balances of the United States Government

14. 14 Budget Documents Number and Types of Documents (continued) Tax expenditures. See Figure 7-1 Budget messages. See Figure 7-2 Publication of proposed and approved budgets

15. 15 Budget Documents Coverage State and local governments use special funds as well as general funds Federal budget coverage Unified budget and the off-budget Alternative budget presentations

16. 16 Budget Documents Coverage (continued) The special case of credit and insurance liabilities. See Figure 7-3 and Table 7-1. Direct loans, guaranteed loans, insurance programs, government sponsored enterprises Federal liability reforms—Federal Credit Reform Act and Debt Collection Improvement Act State and local government liability reforms

17. 17 Budget Documents Information Displays Revenues. See Table 7-2 Expenditures Personnel. See Tables 7-3 and 7-4 Current Services. See Table 7-5 Program Information. See Table 7-6 Use of Program Structure Program Measures. See Table 7-7 and Figure 7-4 Program Revisions. See Figure 7-5

18. 18 Budget Documents Information Displays (continued) Future years Space limitations

19. 19 Summary