Budget I Flashcards
Fiscal Year
October 1- September 30 (1 year)
Budget and Accounting Act of 1921
Presidents budget and yearly budget proposal presented at the state of the union
Congressional Budget act of 1974
Established by the house and senate budget committees
Established congressional budget office
Does the presidents yearly budget have force of law?
No
Order of Budget I
President–> Congressional Budget Committee–> Appropriations
Article 1 Section 7 Clause 1
All bills for raising revenue shall originate in the House of Representatives but the senate may propose or concur with amendments as on other bills
Article 1 Section 8
Power to lay and collect taxes and the power to borrow are enumerated powers of congress
Article 1 Section 9
Allows withdrawals from treasury ONLY when congressional appropriations are approved by law
What does the president do in terms of budgetary matters
Only signs the bills at the end
What is the Budget Resolution?
Passed by Congress and sets upper limit on discretionary spending
Who does the Budget Resolution?
The Congressional Budget Office but it must be passed in both houses
What does the budget resolution include?
Congress’ take on spending, revenue, borrowing, and economic projections
Features of the Congressional Budget Office
- works for congress
- Non-partisan
- Parties trade-off appointing director
- Creates revenue/cost projections
What types of projections does the CBO create?
- Baseline
- Zero-based budgeting
- Dynamic scoring
Define baseline
Look at what is spent, add increase for any expected increases
Define zero-based budgeting
start with a blank slate and every program/department has to earn its budget
Define dynamic scoring
Looks at current policy changes and projects how they will affect revenue
What are the types of spending?
- Direct/mandatory
- Discretionary
Define direct/mandatory spending
level of funding is controlled outside the annual appropriations process (medicare, Medicaid, social security)
Define discretionary spending
Controlled through annual appropriations process
What are the types of appropriations?
- Regular annual
- Supplemental appropriations
- Continuing appropriations
Define regular annual appropriations
Provides budget authority to fund programs and agency activities for the next fiscal year
Define supplemental appropriations
provides additional budget authority during current FY if regular appropriations are insufficient or are needed to fund activities not provided in regular appropriations
Define Continuing appropriations
Provides interim funding to agencies for activities not yet covered by regular appropriations
Debt
Difference between government revenues and outlays in a FY= budget deficit/surplus
Debt Ceiling
A limit on the amount of national debt that can be incurred by the treasury and limits how much money the government may pay on debt already borrowed
President’s budget submission
the president submits a comprehensive budget request to Congress in early February which outlines the administrations policy and funding priorities
What does the president’s budget submission include?
- includes economic outlook for the coming fiscal year
- Budget estimates spending, revenue and borrowing levels
Budget committee
Set broad spending guidelines, develops priorities for upcoming budget , determines expected revenues and overall spending levels
Federal spending
Entitlements, interests on debt, defense (discretionary), everything else (discretionary)
Authorizing committees
Committees that deal with substantive bills as opposed to providing money for operation
Powerful committee
12 subcommittees (Cardinals)
- each with authority over particular areas of the govt
each produce a stand alone bill - all 12 bills collectively is the federal budget
Budget Impoundment
Legislation enacted by congress uses the phrase deferral of budget authority
What does budget impoundment include?
- withholding or delaying the obligation or expenditure of appropriating monies
- any other type of executive action or inaction which effectively precludes the obligation or expenditure of appropriated monies
When was impoundment executed
Nixon to reduce public spending and to negate programs established by congress
Recissions
recommendation or proposals by the President on delaying, lowering, or eliminating funds for a particular program or policy
- must be approved in 45 days
- NOT a line item veto bc it asks congress not tells
Omnibus bill
one huge bull comprised with all remaining $
Failure to pass 12 sub-committee bills before new fiscal year solutions
- shutdown agency
- continuing resolution
- omnibus bill
