Creating the Budget WHERE DOES THE FEDERAL

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

The Federal Budget $ Let’s review key co a ncept … What is a budge t?

The Federal Budget $ A budget is… A. a type of plan for printing I see money. !Ab udg government uses is a B. something theet plan r ce toemeasurefor ivin things. spen din g receiving and C. a plangfor and mon spending money. D. a pet bird.

The Federal Budget $ Is e The federal budgeteis… ! the bud A. a type of planefor ra get f de printing gove l is th rn money. m e US for m ent’s p B. the US government’s plan for anag lan reve managing revenue and spending. nue ing s. President’s plan to save a lot pen and C. the ding of money. . D. a really big pet bird.

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!

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

Creating the Federal Budget $ I get to go first! The first thing you should know is that it takes over a year for a budget to be created. 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 $ This budget proposal is due on the 1 st Monday in 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 Resolutions $ The House of Representatives comes up with its plan for the budget… The Senate 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

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

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. Rou g Dra h ft

STEP ONE: President’s Proposal STEP TWO: House Budget Resolution STEP TWO: Senate Budget Resolution

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

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

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.

Step Three: Conference Committee $ CONFERENCE COMMITTEE The goal of this Conference Committee is to approve one final budget resolution that combines the House and the Senate’s budget resolutions. e Hous et Budg n utio Resol Senate Budget Resoluti on JOINT Budget Resolution

STEP ONE: President’s Proposal STEP TWO: House Budget Resolution STEP TWO: Senate Budget Resolution STEP THREE: Conference Committee to Approve Budget Resolutions

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.

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

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! $

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.

STEP ONE: President’s Proposal STEP TWO: House Budget Resolution House Votes STEP TWO: Senate Budget Resolution STEP THREE: Conference Committee to Approve Budget Resolutions STEP FOUR: 12 House Appropriations Committees Senate Votes STEP FOUR: 12 Senate Appropriations Committees

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

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!

STEP ONE: President’s Proposal STEP TWO: House Budget Resolution House Votes STEP TWO: Senate Budget Resolution STEP THREE: Conference Committee to Approve Budget Resolutions STEP FOUR: 12 House Appropriations Subcommittees Senate Votes STEP FOUR: 12 Senate Appropriations Subcommittees STEP FIVE: Appropriations Committees Work Together & Compromise

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 Votes $ Each committee returns to its house of Congress and presents its appropriations bill. The House votes… The Senate votes…

STEP ONE: President’s Proposal STEP TWO: House Budget Resolution House Votes STEP THREE: Conference Committee to Approve Budget Resolutions STEP FOUR: 12 House Appropriations Committees House Votes STEP TWO: Senate Budget Resolution Senate Votes STEP FOUR: 12 Senate Appropriations Committees STEP FIVE: Appropriations Committees Work Together & Compromise Senate Votes

Step Six: To the President! $ When approved by both houses of Congress, the bills head 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 1 st… *Whew*

STEP ONE: President’s Proposal STEP TWO: House Budget Resolution House Votes STEP THREE: Conference Committee to Approve Budget Resolutions STEP FOUR: 12 House Appropriations Committees House Votes STEP TWO: Senate Budget Resolution Senate Votes STEP FOUR: 12 Senate Appropriations Committees STEP FIVE: Appropriations Committees Work Together & Compromise STEP SIX: To The President! Senate Votes

The Budget in Action $ The new federal budget goes into effect on October 1 st. 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.

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

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

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

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

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

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

Put the six steps in order: $ Which comes sixth? 5 Appropriations Committees D To The President! Work Together Conference Committee 3 to Approve Resolutions Budget Resolutions 2 1 President’s Proposal 4 Appropriations Committees

REVIEW ow N i r… de r o n 2 $ 1 President’s Proposal Budget Resolutions Conference Committee 3 to Approve Resolutions Great 4 Appropriations Committees Job! 5 Appropriations Committees Work Together 6 To The President!

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

BONUS QUESTION $ The first Monday in February and st! October 1