The Federal Budget Process

1
The Federal Budget Process

• In A Very Small Nutshell
• May 9, 2007

2
The budget process is like a good story

• Theme Money
• A beginning, middle and end
• -the presidents budget
• -budget resolution
• -appropriations, reconciliation

3
The Presidents Budget

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

4
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
• Doesnt need to be renewed each year
• Programs like Food Stamps, Medicare, Social
  Security

5
What did the President propose?

• Discretionary Cuts
• Mandatory Cuts
• Taxes Cuts
• Democrats rejected it

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The Presidents Budget How to get involved

• Learn
• Educate
• Build capacity (Mobilize/Organize)
• Advocate

7
Conflict The Budget Resolution

• A joint resolution- a Congressional agreement
  that the President doesnt sign
• February-May

8
What does it do?

• The budget resolution
• Sets the size of the pie for discretionary
  spending
• Initiates possible changes to mandatory spending
  (optional)

9
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

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Budget ResolutionHow to Get Involved

• Learn
• Educate
• Build Capacity (Mobilize/Organize)
• Advocate

11
Resolution Appropriations, Reconciliation

• Appropriations are legal authorizations to spend
  discretionary funding.
• Reconciliation bills change mandatory spending
  and tax laws.
• Goes from May to ???

12
Where are we now?

• Were not quite there yet

13
Appropriations and ReconciliationHow to Get
Involved

• Learn
• Educate
• Build capacity (Mobilize/Organize)
• Advocate

14
Review

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