ADVANCED AMERICAN GOVERNMENT

 SPENDING PRIORITIES  (table p. 460)  HHS spends the most of any government agency ($600+ Billion)  ENTITLEMENTS—benefits that federal law says must be paid to all those who meet eligibility requirements  Ex.—OASDI, Medicare, Medicaid, food stamps, unemployment insurance, veterans’ pensions and benefits

 2006—Dept. of Defense $520 Billion  Interest on the debt is the fourth largest expense of the federal government  CONTROLLABLE AND UNCONTROLLABLE SPENDING  Most specific items in the budget are controllable  Aka—”Discretionary spending”

 Ex. Of uncontrollable spending—interest on the federal debt  80% of all spending is uncontrollable because it is built into laws and programs  Article I, Section 9, Clause 7  “No money shall be drawn from the Treasury, but in consequence of Appropriations made by law…”

 President submits a budget proposal annually to Congress  Process involves President and Congress and last several months  THE PRESIDENT AND THE BUDGET  Each federal agency prepares a budget request  OMB reviews and revises proposals

 CONGRESS AND THE BUDGET  Proposals are assigned to various Congressional committees for review  CBO reviews proposals and advises Congress  Congress must pass their first budget resolutions by May 15 th and the final resolutions by September 15 th.  13 major appropriations bills needed every year

MMost years this is not done CCONTINUING RESOLUTION ---emergency spending authority ---avoid government shutdown ---maintain spending limits at previous year’s level TTHE END