FEDERAL BUDGET TODAYS OBJECTIVE After today students will

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FEDERAL BUDGET

FEDERAL BUDGET

TODAY’S OBJECTIVE • After today students will be able to… • Explain what motivations

TODAY’S OBJECTIVE • After today students will be able to… • Explain what motivations and interests determine the federal budget • Essential Skill: • Examine information from more than one point of view

REVENUE (RECEIPTS) & SPENDING (OUTLAYS) • Revenue • Money that the federal government takes

REVENUE (RECEIPTS) & SPENDING (OUTLAYS) • Revenue • Money that the federal government takes in • Individual income tax • Social insurance tax, such as Social Security and Medicare • Corporate income tax • Estate and gift taxes • Spending • Social Security • Medicare/Medicaid • Defense • Unemployment compensation • Spending on health, education, and

FEDERAL DEFICIT V. DEBT • Deficit • The YEARLY difference between the government’s outlays

FEDERAL DEFICIT V. DEBT • Deficit • The YEARLY difference between the government’s outlays and receipts. • Debt • The accumulated debt throughout multiple years • Add up the deficits to get the total national debt • The difference between what they spend and what they take in https: //www. nationalpriorities. org/budgetbasics/federal-budget-101/spending/

THE BUDGET PROCESS • Proposed at the State of the Union message in January

THE BUDGET PROCESS • Proposed at the State of the Union message in January

OFFICE OF MANAGEMENT AND BUDGET (OMB) • Responsible for preparing the federal budget •

OFFICE OF MANAGEMENT AND BUDGET (OMB) • Responsible for preparing the federal budget • OMB sends instructions to agencies • Agencies send requests to OMB • OMB revises the budget

APPROPRIATIONS COMMITTEE • The appropriations committee holds hearings and sets budget targets • Reconciliation

APPROPRIATIONS COMMITTEE • The appropriations committee holds hearings and sets budget targets • Reconciliation bills are made if budget does not meet targets

FINALIZING THE BUDGET • By October 1 st, all appropriations bills should be passed

FINALIZING THE BUDGET • By October 1 st, all appropriations bills should be passed • President will sign or veto the bills • If they are not passed, Congress has to pass a continuing resolution where agencies run on last year’s budget

BUDGET PRIORITIES • Number each of the budget options in terms of how high

BUDGET PRIORITIES • Number each of the budget options in terms of how high you rank it on priority • Then answer Question A • Share your response with a partner

DISTRICT ROLES • Each district has a description • Discuss and decide on your

DISTRICT ROLES • Each district has a description • Discuss and decide on your priorities for round #2 • Then answer question B • Be prepared to share your answers

CONCLUSION • How might changes in personal income and corporate earnings impact how much

CONCLUSION • How might changes in personal income and corporate earnings impact how much tax revenue the government receives • How do changes in demographics, the economy, war, and other emergencies affect spending? • How does a change in spending impact the budget surplus/deficit? The national debt?