Creating the Budget

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

2. The Federal Budget $ Let’s review a key concept… What is a budget?

3. The Federal Budget $ A budget is… A. a type of plan for printing money. I see! A budgetis 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.

4. The Federal Budget $ The federal budget is… A. a type of plan for printing money. B. the US government’s plan for managing revenue and spending. C. the President’s plan to save a lot of money. D. a really big pet bird.

5. 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!

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

7. 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.

8. Step One: President’s 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!!

9. STEP ONE: President’s Proposal

10. 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 President’s budget outline • the previous year’s budget • new programs or projects that government agencies want to start

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

12. 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

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

14. 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?

15. 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!

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

17. 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.

18. 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 Senate’s budget resolutions. JOINT Budget Resolution

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

20. 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.

21. 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 & Foreign Transportation & Urban Dev. Financial Services Interior & Environment Veterans Affairs & Military Construction Labor, HHS, Education Commerce, Justice, Science Legislative Branch Homeland Security Agriculture & Rural Dev. Defense

22. 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!

23. 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.

24. STEP ONE: President’s 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

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

26. 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!

27. STEP ONE: President’s 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

28. 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.

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

30. STEP ONE: President’s 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

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

32. 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 1st… *Whew*

33. STEP ONE: President’s 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!

34. 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.

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

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

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

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

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

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

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

42. REVIEW $ Now in order… Great Job! 2 3 Conference Committee to Approve Resolutions Budget Resolutions 5 Appropriations Committees Work Together 1 4 President’s Proposal Appropriations Committees 6 To The President!

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

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

45. Exit Ticket Question On a separate sheet of paper, answer the following question. “Why is the budget process so lengthy? If you could reform it, would you? Explain.”

46. Game Time! • You may do this separately or with a partner • Grab a laptop • Go to icivics.org • Go to ‘Play Games’ • Scroll down to find ‘People’s Pie’ • Play ‘People’s Pie’ at least twice • Beat My Score • 6750

47. Exit Ticket Question On a separate sheet of paper, answer the following question. “This game is a simplified version of the budget process. Where do you think the game succeeds and where does it fail? Explain.”