AP GOV The Federal Government
What is meant by the term "incrementalism"
Incrementalism is the belief that the best predictor of this year's budget, plus a little bit more (an increment).
Congress must agree upon a budget resolution - what does this resolution do?
A budget resolution is a resolution binding Congress to a total expenditure level, supposedly the bottom line of all federal spending for all programs.
What needs to happen by April 15?
By April 15, Congress is to agree on the total size of the budget, which guides the appropriations committee to juggling figures for individual agencies.
Define Appropriations committee
Committees of Congress that decide which of the programs passed by the authorization committees will actually be funded
Define Congressional Budget Office (CBO)
Congressional agency of budget experts who assess the feasibility of the president's plan and who help create Congress's version of the federal budget.
What is discretionary spending
Discretionary spending is optional spending set by the government through appropriations bills, including operation expenses and salaries of government employees.
What is an "entitlement?' Give an example
Entitlement is a policy for which Congress has obligated itself to pay X level of benefits to Y number of recipients. Social security benefits, medicare, and medicaid are examples as you paid taxes therefore having the right to that benefit
Why does this make it difficult to reduce federal spending (think about this!)
Entitlement makes it difficult to reduce federal spending because as many expenditures are uncontrollable, by cutting the benefits or tightening eligibility restrictions, it would cause monumental outcry from millions of elderly voters.
What happens in the fall?
In the fall, the agencies submit formal, detailed estimates for their budgets, zealously pushing their needs to the OMB. They review its assessment of the economy and prepares budget recommendations for the new year.
What happens in the winter?
In the winter, the budget document is readied for final presidential approval. There is usually some last minute juggling- agencies may be asked to change their estimates to conform with the president's decisions or cabinet members may make a last ditch effort to bypass the OMB and convince the president to increase their funds.The budgets are rushed to the printers as the president sends it to Capitol Hill, leaving the next steps to Congress.
What is mandatory (uncontrollable) spending? Give an example.
Mandatory uncontrollable spending are expenditures that are determined not by a fixed amount of money appropriated by Congress but by how many eligible beneficiaries there are for a program or by previous obligations of the government. The biggest uncontrollable expenditure is the Social Security system, including Medicare.
Which chamber of Congress do revenue bills begin in?
Revenue bills begin in the House of Representatives.
Define Tax expenditures
Revenue losses attributable to provisions of the federal tax laws which allow a special exemption, exclusion, or deduction
How is the Congressional Budget Office involved in this process?
The Congressional Budget Office is involved in this process as it advises Congress on the probable consequences of its budget decisions, forecasts revenues, and is a counterweight to the president's OMB.
Define House and Ways Means Committee
The House of Representative committee that, along with the Senate Financial Committee, writes the tax codes, subject to the approval of Congress as a whole.
What is the biggest program under discretionary spending
The biggest program under discretionary spending is military.
How does the budget process begin?
The budget process begins and ends with the president with the Congress in the middle. Because budgets are so important to almost all other policies, the budgetary process is in the center of political battles in Washington and involves nearly everyone in government.
After the OMB makes budget recommendations to the president, what must the president do by the summer?
The president must decide on overall policies and priorities and establish general targets for the budgets and then are communicated to the agencies. The OMB conveys the president's decisions to the agencies and advises and assists them in preparing their budgets.
What do the OMB and the president do then?
The president reviews these recommendations and decides on the agencies budgets and overall budgetary policy, the OMB advises the agencies of these decisions.
According to the Congressional Budget & Impoundment Act, what must the Budget Committees in each house do by April 1?
These two committees are supposed to recommend target figures to Congress for the total budget size by April 1st of each year.
Briefly describe how the following 2 conditions led to rapid growth of the federal government. a. The rise of the national security state b. The rise of the social service state
a. Fueling the military machine greatly increased the cost of government. Increased military spending caused the federal government to expand as we sold weapons, procurement adds onto the dept and so do pensions for those working in the pentagon The rise of the social service has contributed to America's growing budget. b. Social Security Act, set a precedent to help out the older generation, unfair to them and their benefits. Incrementalism adding onto the previous year's budget causing it to rise.
Explain how each of the following actors are involved in the federal budget process:
a. Interest groups- No lobbyist with his or her pay would ignore the budget. Lobbying for a group's needs takes place in the agencies, with presidents, and before congressional committees. A smart agency head will be sure to involve interest groups in defending the agency's budget request. b. Federal agencies- Convinced of the importance of their mission, the heads of agencies almost always for higher budget requests. They send their requests to the OMB and later get a chance to present themselves before congressional committees as well. c. Office of Management & Budget (OMB)- The OMB is responsible to the president, its boss, but no president has the time to understand and make decisions about the budget- parceled out to hundreds of agencies, some of which the executive knows little or nothing about. The director and the staff of the OMB have considerable independence from the president, which makes them major actors in the annual budget process.
Explain how each of the following actors are involved in the federal budget process:
d. The President- The president makes the final decisions on what to propose to Congress. In early February, the president unveils the proposed budget; the president then spends many a day trying to ensure that Congress will stick close to the recommendations. e. the House and Senate Budget Committees- The Congressional Budget Office (CBO), the congressional equivalent to the OMB, sets the parameters of the congressional budget process through examining revenues and expenditures in the aggregate and proposing resolutions to bind Congress within certain limits. f. the standing (subject matter) committees- Committees of Congress that write new laws, which require new expenditures. Committee members may use hearings either to publicize the accomplishments of their pet agencies, thus supporting larger budgets for them, or to question agency heads about waste or overspending. g. the House and Senate Appropriations Committee- The Appropriations committee in each house decides who gets what. These committees take new or old policies coming from the subject matter committees and decide how much to spend. Appropriations subcommittees hold hearings on specific agency requests. h. General Accounting Office (GAO)- The GAO works as Congress's eyes and ears, auditing, monitoring, and evaluating what agencies are doing with their budgets.