The Budget Timeline: How does the federal budget process work?<br />President’s Budget Request<br />Congressional Budget Resolution<br />Appropriations<br />Debt Ceiling<br />Other Budget Bills (deficit reduction, entitlement programs, taxes, balanced budget amendment)<br />
Budget Basics: Where do our federal tax dollars go?<br />Programs for low-income families are a fraction of government spending.<br />They have played virtually no role in creating our deficits.<br />1/3 of non-security discretionary spending goes to state and local governments.<br />
Budget Myths and Realities:<br /><ul><li>Myth: Our deficits don’t matter.
Reality: The long-term fiscal outlook is of serious concern.
Myth:Our current deficits are so out of control that we must address them immediately with painful spending cuts.
Reality:Our immediate focus must be on strengthening the economy and creating jobs. </li></li></ul><li>Budget Myths and Realities:<br />Myth: Government spending is out of control.<br />Reality: The 2001 and 2003 tax cuts, the wars in Afghanistan and Iraq, and the recession itself are why we see high deficits today.<br />
Budget Myths and Realities:<br />Myth: Government spending is out of control. <br />Reality: The real threat is the long-term structural imbalance between spending and revenues. <br />Rising health care costs<br />Aging population<br />Insufficient revenues <br />Center on Budget and Policy Priorities<br />
Reducing Deficits and Poverty:We Don’t Need to Choose<br />We need to address deficits.<br />Ending poverty and hunger requires government action.<br />Anti-poverty programs have had a powerful impact.<br />
Cap on Overall Federal Spending<br />Limits all federal spending (share of the economy)<br />Keeps programs from growing<br />Entitlement programs structured to grow when there’s more need<br />
Balanced Budget Amendment<br /><ul><li>Requires the government to balance the budget every year.
Government can’t run deficits during recessions.
Would force harmful cuts in low-income programs—especially during recessions</li></li></ul><li>Triggers<br /><ul><li> Sets a debt target
Automatic across-the-board cuts and/or tax increases if targets missed
Intended to force compromise in Congress</li></li></ul><li>Circle of Protection<br />Create a circle of protection around programs for hungry and poor people in the United States and abroad.<br />Historical precedent over the past 30 years.<br />