Where does the federal budget come from??

1
Creating the Budget

• Where does the federal budget come from??

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The Federal Budget

Lets review a key concept What is a budget?
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The Federal Budget

A budget is
A. a type of plan for printing money.
I see! A budget is a plan for receiving and
spending money.
B. something the government uses to measure
things.
C. a plan for receiving and spending money.
D. a pet bird.
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The Federal Budget

The federal budget is
I see! the federal budget is the US governments
plan for managing revenue and spending.
A. a type of plan for printing money.
B. the US governments plan for managing revenue
and spending.
C. the Presidents plan to save a lot of money.
D. a really big pet bird.
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Creating the Federal Budget

Now that you know what the federal budget is
(a plan for managing revenue and spending)
you will learn about how the federal budget is
created!
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Creating the Federal Budget

The goal is for
THIS PERSON
and
THESE PEOPLE
to work together to create a federal budget for
the country.
The President
The Congress
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Creating the Federal Budget

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.
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Step One Presidents Proposal

This budget proposal is due on the 1st Monday in
February and it includes the following things

• spending priorities

• plans for raising revenues through taxes

• lots of documents supporting each item!!

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STEP ONE Presidents Proposal







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Step Two Budget Resolutions

The Senate comes up with its plan for the budget
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 Presidents budget outline
• the previous years budget
• new programs or projects that government
  agencies want to start

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Step Two Budget Resolutions

These budget plans include lots of details and
contain tables like this
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Step Two Budget Resolutions

These plans are called RESOLUTIONS
A 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
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STEP ONE Presidents Proposal
STEP TWO House Budget Resolution
STEP TWO Senate Budget Resolution





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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?
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Step Three Conference Committee

Once budget resolutions are made, it is time for
the House and the Senate to come together to
create the budget!
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Step Three Conference Committee

And selected Senators from the Senate
Selected Representatives from the House
come together in a
CONFERENCE COMMITTEE
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Step Three Conference Committee

CONFERENCE COMMITTEE
A Conference Committee brings the House and
Senate committee members together to resolve
differences between the two houses of Congress.
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Step Three Conference Committee

CONFERENCE COMMITTEE
House Budget Resolution
Senate Budget Resolution
The goal of this Conference Committee is to
approve one final budget resolution that combines
the House and the Senates budget resolutions.
JOINT Budget Resolution
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STEP ONE Presidents Proposal
STEP TWO House Budget Resolution
STEP TWO Senate Budget Resolution
STEP THREE Conference Committee to Approve
Budget Resolutions




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Step Four Appropriations Committees

Once the Conference Committee has created a joint
budget resolution the House and Senate have to
tackle the massive project of creating a budget.
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Step Four Appropriations Committees

This job is made a little bit easier by dividing
spending on specific projects into categories
Twelve different categories!
Energy
Financial Services
Veterans Affairs Military Construction
Interior Environment
Transportation Urban Dev.
State Dept Foreign
Labor, HHS, Education
Commerce, Justice, Science
Legislative Branch
Homeland Security
Agriculture Rural Dev.
Defense
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Step Four Appropriations Committees

Each of these categories is given to an
APPROPRIATIONS subcommittee to pass an
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!
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Step Four Appropriations Committees

The House and the Senate both split into these 12
smaller committees!
House Appropriations Committees
Senate Appropriations Committees
Each committee develops a plan for spending money
on smaller, specific projects in its category.
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STEP ONE Presidents Proposal
STEP TWO House Budget Resolution
STEP TWO Senate Budget Resolution
STEP THREE Conference Committee to Approve
Budget Resolutions
House Votes
Senate Votes
STEP FOUR 12 House Appropriations Committees
STEP FOUR 12 Senate Appropriations Committees


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Step Five Committees Work Together

House
Senate
Each Appropriations Subcommittee from the House
meets with the matching Appropriations
Subcommittee from the Senate
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Step Five Committees Work Together

House
Senate
and they work together, comparing their
appropriation bills and making compromises, until
each subcommittee has one final version!
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STEP ONE Presidents Proposal
STEP TWO House Budget Resolution
STEP TWO Senate Budget Resolution
STEP THREE Conference Committee to Approve
Budget Resolutions
House Votes
Senate Votes
STEP FOUR 12 House Appropriations Subcommittees
STEP FOUR 12 Senate Appropriations Subcommittees
STEP FIVE Appropriations Committees Work
Together Compromise

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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.
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Congress Votes

Each committee returns to its house of Congress
and presents its appropriations bill.
The Senate votes
The House votes
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STEP ONE Presidents Proposal
STEP TWO House Budget Resolution
STEP TWO Senate Budget Resolution
STEP THREE Conference Committee to Approve
Budget Resolutions
House Votes
Senate Votes
STEP FOUR 12 House Appropriations Committees
STEP FOUR 12 Senate Appropriations Committees
STEP FIVE Appropriations Committees Work
Together Compromise
House Votes
Senate Votes

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Step Six To the President!

When approved by both houses of Congress, the
bills head to the President!
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Step Six To the President!

Finally, its 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 1st
Whew
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STEP ONE Presidents Proposal
STEP TWO House Budget Resolution
STEP TWO Senate Budget Resolution
STEP THREE Conference Committee to Approve
Budget Resolutions
House Votes
Senate Votes
STEP FOUR 12 House Appropriations Committees
STEP FOUR 12 Senate Appropriations Committees
STEP FIVE Appropriations Committees Work
Together Compromise
House Votes
Senate Votes
STEP SIX To The President!
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The 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.
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REVIEW

Now, lets review some of the key concepts
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Put the six steps in order

Which comes first?
Appropriations Committees Work Together
A
D
To The President!
Conference Committee to Approve Resolutions
B
E
Budget Resolutions
C
F
Appropriations Committees
Presidents Proposal
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Put the six steps in order

Which comes second?
Appropriations Committees Work Together
A
D
To The President!
Conference Committee to Approve Resolutions
B
E
Budget Resolutions
1
F
Appropriations Committees
Presidents Proposal
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Put the six steps in order

Which comes third?
Appropriations Committees Work Together
A
D
To The President!
2
Conference Committee to Approve Resolutions
E
Budget Resolutions
1
F
Appropriations Committees
Presidents Proposal
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Put the six steps in order

Which comes fourth?
Appropriations Committees Work Together
A
D
To The President!
2
3
Conference Committee to Approve Resolutions
Budget Resolutions
1
F
Appropriations Committees
Presidents Proposal
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Put the six steps in order

Which comes fifth?
Appropriations Committees Work Together
A
D
To The President!
2
3
Conference Committee to Approve Resolutions
Budget Resolutions
1
4
Appropriations Committees
Presidents Proposal
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Put the six steps in order

Which comes sixth?
D
To The President!
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REVIEW

Now in order
Great Job!
5
Appropriations Committees Work Together
6
To The President!
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BONUS QUESTION

The federal budget is created between what two
days?
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BONUS QUESTION

The first Monday in February and October 1st!