The Federal Budget Process

In A Very Small Nutshell

May 9, 2007

The budget process is like a good story

Theme: Money

A beginning, middle and end-the president’s budget

-budget resolution

-appropriations, reconciliation

The President’s Budget

Just a big proposal Comes out in early February Defines the “characters” Sets the agenda

Vocab check!

Two types of spending– Discretionary

Needs to be renewed each year Programs like Americorps, missile defense,

Supplemental Program for Women, Infants and Children (WIC)…

– Mandatory Doesn’t need to be renewed each year Programs like Food Stamps, Medicare, Social

Security…

What did the President propose?

Discretionary: Cuts Mandatory: Cuts Taxes: Cuts Democrats rejected it

The President’s Budget: How to get involved

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Conflict: The Budget Resolution

A “joint resolution”- a Congressional agreement that the President doesn’t sign

February-May

What does it do?

The budget resolution:– Sets the “size of the pie” for discretionary

spending– Initiates possible changes to mandatory spending

(optional)

Where are we now?

Senate, House have passed different versions of the budget resolution

House: More discretionary funding Neither has tax cuts, significant changes to

mandatory programs

Budget Resolution:How to Get Involved

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Resolution: Appropriations, Reconciliation

Appropriations are legal authorizations to spend discretionary funding.

Reconciliation bills change mandatory spending and tax laws.

Goes from May to ???

Where are we now?

We’re not quite there yet

Appropriations and Reconciliation:How to Get Involved

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Review

The budget process as a story Get involved early Every stage matters