WHERE DOES THE FEDERAL BUDGET COME FROM?? Creating the Budget $

WHERE DOES WHERE DOES THE FEDERAL THE FEDERAL BUDGET COME BUDGET COME

FROM??FROM??

Creating the Creating the BudgetBudget

$

Let’s review a key concept… What is a budget?

The Federal BudgetThe Federal Budget$


A budget is…

A. a type of plan for printing money.

B. something the government uses to measure things.

C. a plan for receiving and spending money.

D. a pet bird.

I see! A budgetbudget is a plan for

receiving and spending money.

The federal budget is… A. a type of plan for printing

money. B. the US government’s plan

for managing revenue and spending. C. the President’s plan to save a lot of money.

D. a really big pet bird.

I see! the federalfederal

budgetbudget is the US government’s

plan for managing revenue and spending.


Creating the Federal BudgetCreating the Federal Budget$

Now that you know what the federal budget is…

(a plan for managing (a plan for managing revenue and spending)… revenue and spending)…

you will learn about how the federal budget is created!


The goal is forTHIS PERSONandTHESE PEOPLE

to work together to create a

federal budget for the country.

The The PresidentPresident

The The CongressCongress


The first thing you should know is that it takes over a year for a budget to be created.

I get to go first!

The President and his team at the Office of Management and

Budget work to develop a proposal for the budget.

Step One: President’s Proposal Step One: President’s Proposal $

This budget proposal is due on the1st 1st MondayMonday in in February February

and it includes the following things:

• spending priorities

• plans for raising revenues through taxes

• lots of documents supporting each item!!

STEP ONE: President’s Proposal

Step Two: Budget ResolutionsStep Two: Budget Resolutions$

The House of Representatives comes up with its plan for the

budget…

In order to develop their plans, they take several things into consideration:

• the President’s budget outline

• the previous year’s budget

• new programs or projects that government agencies want to start

The Senate comes up with its plan for the

budget…


These budget plans include lots of details and contain

tables like this:


These plans are called RESOLUTIONS…A budget resolution budget resolution is a

document that lays out a rough budget. It is a plan for Congress as they work

to create an official budget.

Rough Draft


STEP TWO:House Budget

Resolution

STEP TWO:Senate Budget

Resolution

Quick Review! Quick Review! $

A budget resolution is…

A. a budget plan that the President must sign into law.

B. a plan written by Congress that sets guidelines for the budget.

C. when two people come together to get over their financial differences. D. the stuff you spray on stains on your carpet, right?

Step Three: Conference Step Three: Conference CommitteeCommittee

$

Once budget resolutions are made, it is time for

the House and the Senate to come together to create the budget!


$Selected Representatives from the House…

And selected Senators from the Senate…

come together in a…CONFERENCE CONFERENCE

COMMITTEECOMMITTEE


$

CONFERENCE CONFERENCE COMMITTEECOMMITTEE

A Conference Committee Conference Committee brings the House and

Senate committee members together to resolve

differences between the two houses of Congress.

The goal of this Conference

Committee is to approve one final budget resolution that combines the

House and the Senate’s budget

resolutions.


$

CONFERENCE CONFERENCE COMMITTEECOMMITTEE

House

Budget

Resolution

SenateBudget

Resolution

JOINT Budget

Resolution



Resolution


Resolution

STEP THREE:Conference Committee to

Approve Budget Resolutions

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Step Four: Appropriations Step Four: Appropriations CommitteesCommittees

Once the Conference Committee has created a

joint budget resolution the House and Senate have to tackle the massive project

of creating a budget.

$


This job is made a little bit easier by dividing spending on specific projects into

categories…

Agriculture & Rural Dev.

Commerce, Justice, Science Defens

e

Energy

Legislative Branch

Financial Services

Homeland Security

Labor, HHS,

Education

Veterans Affairs & Military

Construction

Interior & Environmen

t

Transportation & Urban

Dev.

State Dept &

Foreign

Twelve different categories!

$


Each of these categories is given to an APPROPRIATIONS APPROPRIATIONS subcommittee to pass an

APPROPRIATIONS APPROPRIATIONS bill! appropriation = money set aside for a specific

purpose$ $

For example…

The Appropriations Subcommittee on Defense would decide to set aside $6.5

billion for researching and building a new type of fighter jet.

That is an appropriation!

$


The House and the Senate both split into these 12 smaller committees!

Each committee develops a plan for spending money

on smaller, specific projects in its category.

House Appropriations House Appropriations CommitteesCommittees

Senate Appropriations Senate Appropriations CommitteesCommittees



Resolution


Resolution



House Votes Senate Votes

STEP FOUR:12 House

Appropriations Committees

STEP FOUR:12 Senate


Step Five: Committees Work Step Five: Committees Work Together Together

$

Each Appropriations Subcommittee from the House meets with the

matching Appropriations Subcommittee

from the Senate…

HouseHouse SenatSenatee

Step Five: Committees Work Step Five: Committees Work Together Together

$

…and they work together,

comparing their appropriation

bills and making compromises,

until each subcommittee has one final

version!

HouseHouse SenatSenatee



Resolution


Resolution




STEP FOUR:12 House

Appropriations Subcommittees

STEP FOUR:12 Senate

Appropriations Subcommittees

STEP FIVE:Appropriations Committees

Work Together & Compromise

Quick Review! Quick Review! $

An appropriations bill is…

A. something that balances out mandatory and discretionary spending.

B. a bill that manages money spent

on the army.

C. a bill that lays out how money will be spent on specific projects. D. an equation for solving proportions.

Congress VotesCongress Votes$

The Senate votes…

The House votes…

Each committee returns to its house of Congress and presents its appropriations bill.



Resolution


Resolution




STEP FOUR:12 House


STEP FOUR:12 Senate





When approved by both houses of

Congress, the bills head to the President!

Step Six: To the President!Step Six: To the President!$

Step Six: To the President!Step Six: To the President!$

Finally, it’s my turn again!

The President gets to decide if he will sign

the appropriations bills or veto them! If he signs them, they

become part of the final budget

And all this has to happen by October October

11stst… *Whew*



Resolution


Resolution




STEP FOUR:12 House


STEP FOUR:12 Senate





STEP SIX: To The President!

The Budget in ActionThe Budget in Action$

The new federal budget goes into effect on October

1st. Government agencies (like the Department of Defense or the

Department of Energy) can only spend the money that has been appropriated for them by the final bills that were signed by

the President.

$REVIEWREVIEW

Now, let’s review some of the key concepts…

$Put the six steps in order:Put the six steps in order:

Which comes first?

Conference Committee to Approve Resolutions

Appropriations Committees Work

Together

To The President!


President’s Proposal

Budget Resolutions

A

B

C

D

E

F

$

Which comes second?



Together

To The President!



Budget Resolutions

A

B

11

D

E

F

Put the six steps in order:Put the six steps in order:

$

Which comes third?



Together

To The President!



Budget Resolutions

A

22

11

D

E

F


$

Which comes fourth?



Together

To The President!



Budget Resolutions

A

22

11

D

33

F


$

Which comes fifth?



Together

To The President!



Budget Resolutions

A

22

11

D

33

44


$

Which comes sixth?

To The President!Appropriations Committees Work

Together

55

Budget Resolutions22President’s Proposal11

DConference Committee to Approve Resolutions

33


44


REVIEWREVIEW$

Now in order…

To The President!


Together

55

Budget Resolutions22President’s Proposal11


33Appropriations

Committees44

66

Great Job!

$BONUS QUESTIONBONUS QUESTION

The federal budget is created

between what two days?

BONUS QUESTIONBONUS QUESTION$

The first Monday in

February and October 1st!

WHERE DOES THE FEDERAL BUDGET COME FROM?? Creating the Budget $

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