The Federal Budget Process: Theory vs. RealityMercatus Center
As budget season gets underway, what do you need to know to navigate the process? (1) An overview of the 1974 Budget Act, and subsequent laws and rules guiding the budget process; (2) A discussion of how and why the budget process has largely been abandoned in past years, and the potential implications of failing to follow a regular budget process; and (3) An outlook for the Fiscal Year 2016 budget season, including a review of key budgetary dates and events.
This presentation provides an overview of the budget process, highlighting the roles of the President and the Congress and the timeline for drafting a budget resolution and enacting appropriations.
Presentation by Keith Hall, CBO Director, at the 10th Annual Meeting of the OECD Network of Parliamentary Budget Officials and Independent Fiscal Institutions.
Tools for Tracking the Economic Impact of LegislationMercatus Center
Laws passed by Congress impact the economy, but Congress has no systematic way to comprehensively track and assess the economic impact of legislative actions. This is especially difficult when laws empower federal agencies to regulate. While the current budget process scores and tracks the economic impact of spending and taxes, it does not account for the economic consequences of regulation.
The Federal Budget Process: Theory vs. RealityMercatus Center
As budget season gets underway, what do you need to know to navigate the process? (1) An overview of the 1974 Budget Act, and subsequent laws and rules guiding the budget process; (2) A discussion of how and why the budget process has largely been abandoned in past years, and the potential implications of failing to follow a regular budget process; and (3) An outlook for the Fiscal Year 2016 budget season, including a review of key budgetary dates and events.
This presentation provides an overview of the budget process, highlighting the roles of the President and the Congress and the timeline for drafting a budget resolution and enacting appropriations.
Presentation by Keith Hall, CBO Director, at the 10th Annual Meeting of the OECD Network of Parliamentary Budget Officials and Independent Fiscal Institutions.
Tools for Tracking the Economic Impact of LegislationMercatus Center
Laws passed by Congress impact the economy, but Congress has no systematic way to comprehensively track and assess the economic impact of legislative actions. This is especially difficult when laws empower federal agencies to regulate. While the current budget process scores and tracks the economic impact of spending and taxes, it does not account for the economic consequences of regulation.
The Fiscal Management Act was enacted by
Parliament as a private bill. The Act is awaiting
Presidential assent pending revisions proposed
by the President. This paper discusses the
contents of the Bill, why the President has
declined to assent to the Bill, the proposed
changes to the Bill and the effect of
implementing these changes.
Presentation by Wendy Edelberg, CBO’s Assistant Director for Macroeconomic Analysis, and Teri Gullo, CBO's Assistant Director for Budget Analysis, to Congressional Staff.
CBO provides formal, written estimates of the cost of virtually every bill approved by Congressional committees to show how the bill would affect spending or revenues over the next 5 or 10 years, depending on the type of spending involved. In May, the Congress adopted a concurrent resolution on the budget for fiscal year 2016 that requires CBO, to the greatest extent practicable, to incorporate macroeconomic effects into its 10-year cost estimates for major legislation that Congressional committees approve. Such estimates must also include, when practicable, a qualitative assessment of the budgetary effects for the following 20 years. Incorporating such macroeconomic feedback into cost estimates is often called dynamic scoring. This presentation describes how CBO will prepare such estimates.
Presentation by Wendy Edelberg, CBO’s Assistant Director for Macroeconomic Analysis, and Teri Gullo, CBO's Assistant Director for Budget Analysis, at the Center on Budget and Policy Priorities.
To show how transportation funding is handled in CBO's cost estimates, this slide deck provides a guide to the agency's 2012 estimate of the Moving Ahead for Progress in the 21st Century Act.
Data-Driven Decision MakingSalomey F. Calixte OllieShoresna
Data-Driven
Decision
Making
Salomey F.
Calixte
MAT210
Prof Evan
Schwartz
9/3/2021
1
Rate of Poverty
United State Poverty Rate
2
Poverty Rate in
States
3
Rate of Poverty
0.00% 5.00% 10.00% 15.00% 20.00% 25.00%
State w ith th e H ig h e st
rate o f P o ve rty
Georgia: District of Columbia:
South Carolina: Alabama:
Kentucky: West Virginia:
New Mexico:
Louisiana: 18.4% Mississippi
4
5
1
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
F ac tors be hind Pove rty
Adverse Weather illiteracy Pandemics Unemployment
Poverty Rate
Description
The graph shows the states with the
highest and lowest poverty rates in
percentage terms. Some of the states
with the highest poverty rates are
Louisiana, Mississippi, West Virginia, and
Georgia (Jelavish, 2021).
6
Important
of the Data
The presentation aims to inform the audience about
the main factors that cause poverty. The data shows
that education is very important in reducing poverty.
The state with the lowest rate of poverty will have the
easiest to implement and manage.
7
Recommendation
Creation of job opportunity
Educating youths to increase the level of
education
Having special attention to the state with
high poverty level
8
Audience
Targeted
The target audience is adults and teenagers
because they have a better understanding of
the issues related to poverty and inequality.
Having teenagers as a part of the group will
help in curbing poverty.
9
Language,
Purpose &
Visual
presentation
The language used in this project is
simple and brief to enable the audience
to understand the presentation. I used a
bar chart to help the adults understand
the basic concepts of presentation.
10
CONCLUSION
Poverty is a social issue that affects every
society. It should be the government's priority.
11
References
References
https://aspe.hhs.gov/topics/poverty-economic-mobility/poverty-estimates-
trends-analysis
(USA, n.d.)
https://www.census.gov/library/publications/2020/demo/p60-270.html
12
https://aspe.hhs.gov/topics/poverty-economic-mobility/poverty-estimates-trends-analysis
https://aspe.hhs.gov/topics/poverty-economic-mobility/poverty-estimates-trends-analysisSlide 1Slide 2Poverty Rate in StatesSlide 4Slide 5Poverty Rate DescriptionImportant of the DataRecommendationAudience TargetedLanguage, Purpose & Visual presentationCONCLUSIONReferences
Policy Basics is a series of brief background reports on issues related to budgets, taxes, and government assistance programs.
Center on Budget and Policy Priorities | cbpp.org
Note: The COVID-19 recession and subsequent relief packages have dramatically changed
spending and revenue levels for fiscal years 2020 and 2021. We use pre-pandemic figures
below ...
The Fiscal Management Act was enacted by
Parliament as a private bill. The Act is awaiting
Presidential assent pending revisions proposed
by the President. This paper discusses the
contents of the Bill, why the President has
declined to assent to the Bill, the proposed
changes to the Bill and the effect of
implementing these changes.
Presentation by Wendy Edelberg, CBO’s Assistant Director for Macroeconomic Analysis, and Teri Gullo, CBO's Assistant Director for Budget Analysis, to Congressional Staff.
CBO provides formal, written estimates of the cost of virtually every bill approved by Congressional committees to show how the bill would affect spending or revenues over the next 5 or 10 years, depending on the type of spending involved. In May, the Congress adopted a concurrent resolution on the budget for fiscal year 2016 that requires CBO, to the greatest extent practicable, to incorporate macroeconomic effects into its 10-year cost estimates for major legislation that Congressional committees approve. Such estimates must also include, when practicable, a qualitative assessment of the budgetary effects for the following 20 years. Incorporating such macroeconomic feedback into cost estimates is often called dynamic scoring. This presentation describes how CBO will prepare such estimates.
Presentation by Wendy Edelberg, CBO’s Assistant Director for Macroeconomic Analysis, and Teri Gullo, CBO's Assistant Director for Budget Analysis, at the Center on Budget and Policy Priorities.
To show how transportation funding is handled in CBO's cost estimates, this slide deck provides a guide to the agency's 2012 estimate of the Moving Ahead for Progress in the 21st Century Act.
Data-Driven Decision MakingSalomey F. Calixte OllieShoresna
Data-Driven
Decision
Making
Salomey F.
Calixte
MAT210
Prof Evan
Schwartz
9/3/2021
1
Rate of Poverty
United State Poverty Rate
2
Poverty Rate in
States
3
Rate of Poverty
0.00% 5.00% 10.00% 15.00% 20.00% 25.00%
State w ith th e H ig h e st
rate o f P o ve rty
Georgia: District of Columbia:
South Carolina: Alabama:
Kentucky: West Virginia:
New Mexico:
Louisiana: 18.4% Mississippi
4
5
1
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
F ac tors be hind Pove rty
Adverse Weather illiteracy Pandemics Unemployment
Poverty Rate
Description
The graph shows the states with the
highest and lowest poverty rates in
percentage terms. Some of the states
with the highest poverty rates are
Louisiana, Mississippi, West Virginia, and
Georgia (Jelavish, 2021).
6
Important
of the Data
The presentation aims to inform the audience about
the main factors that cause poverty. The data shows
that education is very important in reducing poverty.
The state with the lowest rate of poverty will have the
easiest to implement and manage.
7
Recommendation
Creation of job opportunity
Educating youths to increase the level of
education
Having special attention to the state with
high poverty level
8
Audience
Targeted
The target audience is adults and teenagers
because they have a better understanding of
the issues related to poverty and inequality.
Having teenagers as a part of the group will
help in curbing poverty.
9
Language,
Purpose &
Visual
presentation
The language used in this project is
simple and brief to enable the audience
to understand the presentation. I used a
bar chart to help the adults understand
the basic concepts of presentation.
10
CONCLUSION
Poverty is a social issue that affects every
society. It should be the government's priority.
11
References
References
https://aspe.hhs.gov/topics/poverty-economic-mobility/poverty-estimates-
trends-analysis
(USA, n.d.)
https://www.census.gov/library/publications/2020/demo/p60-270.html
12
https://aspe.hhs.gov/topics/poverty-economic-mobility/poverty-estimates-trends-analysis
https://aspe.hhs.gov/topics/poverty-economic-mobility/poverty-estimates-trends-analysisSlide 1Slide 2Poverty Rate in StatesSlide 4Slide 5Poverty Rate DescriptionImportant of the DataRecommendationAudience TargetedLanguage, Purpose & Visual presentationCONCLUSIONReferences
Policy Basics is a series of brief background reports on issues related to budgets, taxes, and government assistance programs.
Center on Budget and Policy Priorities | cbpp.org
Note: The COVID-19 recession and subsequent relief packages have dramatically changed
spending and revenue levels for fiscal years 2020 and 2021. We use pre-pandemic figures
below ...
Presentation by Chapin White, CBO's Deputy Director of Health Analysis, to the Leadership Fellowship Program at the National Hispanic Medical Association.
The non-partisan Committee for a Responsible Federal Budget (CRFB) has compiled a brief background on the scope of our nation's fiscal challenges and the drivers of our debt and deficits, while outlining some of the types of solutions available to address the problems. This Powerpoint is meant to offer an objective, easily-accessible view of our country's fiscal situation as an educational tool meant to help foster open and honest discussion about these issues.
Why are new federal revenues needed?
What taxes are being considered to fund health care reform (and other needs)?
What would be most fair?
What would make the most sense?
Overview of Governor Paterson’s 2010-11 Executive Budget Proposal.
New York Governor David Paterson unveiled his 2010-2011 Executive Budget on yesterday. Totaling $134 billion , his proposal is aimed at closing a projected $7.4 billion deficit in the current budget year, as well as setting the stage for reducing future-year deficits of $14.3 billion in 2011-12, $18.3 billion in 2012-13, and $20.7 billion in 2013-14.
Presentation delivered by Tom Gibney, SVP & Chief Financial Officer, St. Luke's Cornwall Hospital at the marcus evans National Healthcare CFO Summit Fall 2019 in San Diego CA.
Presentation by Lara Robillard, Principal Analyst, CBO’s Budget Analysis Division, to the Leadership Fellowship Program at the National Hispanic Medical Association.
Pace University Public Policy Project description:
What will it take to improve the life chances of most citizens through the national economy? Your team is part of a Congressional initiative to soliciting recommendations for public policies that address major challenges faced by the U.S. today. We have prepared a “White Paper for the White House,” suggesting policies that will increase U.S. competitiveness and innovation while taking debt, pension and unemployment pressures into account.
Tackling the Tough Topics: The public plan option, employer pay or play, and ...soder145
Presentation by Jean Abraham of the University of Minnesota at the Minnesota Senate Health and Human Services Budget Division hearing in St. Paul, MN, August 18 2009.
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...beulahfernandes8
The financial landscape in India has witnessed a significant development with the recent collaboration between Poonawalla Fincorp and IndusInd Bank.
The launch of the co-branded credit card, the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card, marks a major milestone for both entities.
This strategic move aims to redefine and elevate the banking experience for customers.
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
USDA Loans in California: A Comprehensive Overview.pptx
Federal Budget
1. Health Policy and the
Federal Budget Process
Tim Westmoreland
Visiting Professor of Law
Research Professor of Public Policy
Georgetown University
February 2006
2. Figure 1
Introduction to the Federal Budget
• It’s big. Really big.
• It drives federal policy in all areas--
especially health.
• Very few people understand even the
basics.
• By the time you finish this introduction,
you will be one of the top 1% of Americans
in terms of budget proficiency.
3. Figure 2
To Begin: Four Necessary Terms
• Revenues--money coming into the federal
government (also referred to as “receipts’)
• Spending--money going out of the federal
government (“outlays”)
• Deficit--annual revenues minus annual
spending
• Debt--sum total of all annual deficits (and
surpluses)
4. Figure 3
Total Revenues = ~$1.9 Trillion
(FY 2004)
• Personal Income Tax =
~$900 Billion
• Social Insurance Taxes =
~$750 Billion
• Corporate Taxes =
~$200 Billion
• All other sources =
~$200 Billion
Corporate
Taxes
Other
Sources
Social
Insurance
Taxes
Personal
Income Tax
SOURCE: OMB, Fiscal Year 2004 Budget, February 2003.
5. Figure 4
Federal Spending in the
President’s FY 2006 Budget
Social Security
21%
Discretionary
Total Outlays= $2.57 trillion
Defense
17%
SOURCE: OMB, Fiscal Year 2006 Budget, February 2005.
Medicare
13%
Medicaid
and SCHIP
8%
Other
14%
Net Interest
8%
Non-defense
Discretionary
19%
6. Figure 5
Funding Proposed for HHS Health Programs
in Bush Administration’s FY 2006 Budget
Health
Discretionary
Programs
9%
Medicare
58%
Medicaid
33%
SCHIP
1%
HRSA
11%
CDC
8%
CMS-PM
OS-DM
6%
NIH
54%
Total = $592 Billion Total = $52.6 Billion
IHS 6%
FDA 3%
SAMHSA
6%
6%
Notes: Totals do not include funding for the Administration on Children and Families, the
Administration on Aging and Program Support Center. AHRQ funding is entirely through transfers
from other HHS agencies. Totals do not add to 100% due to rounding. SOURCE:
HHS, Budget in Brief FY 2006, February 2005.
7. Figure 6
Total Deficit =
Depends on How You Count It
• Unified Budget (Count all revenues,
including money coming in for trust funds
for future use): $400 billion
• On-budget Totals (Technical legal definition,
not counting Social Security or the Postal
Service): $570 billion
• Federal Funds Budget (Count only revenues
that can be spent this year): $600 billion
8. Figure 7
Total Debt = $8.2 Trillion and
Counting…
Q: What is the debt?
A: Money loaned to the federal government (such as
Savings Bonds or Treasury Bills) that has to be paid
back with interest.
Q: Where is the debt?
A: ~$4.7T held by the public (investors, banks, pension
funds, etc.)
• Including ~$2.1T held by foreign investors and
governments
Plus
~$3.5T held by the federal government to use in the
future (e.g., the Social Security Trust Fund, the
Medicare Trust Fund, etc.)
9. Figure 8
Four Necessary Budget Concepts
• Three kinds of spending
• Baseline
• Limits
• Scorekeeping
10. Figure 9
Three Kinds of Spending
• Discretionary spending
• Mandatory spending
• Tax spending
11. Figure 10
Discretionary Spending
• Spending that is up to the Congress to decide each year.
• In any single year, it can be from zero to 100% of the
level authorized in law for each program.
• The presumption is that the money will not be there
unless the Congress acts to provide it.
• Budgeting by dollars.
– E.g., Congress may provide $100 million for childhood
immunizations; how many children can be immunized for that?
12. Figure 11
Examples of Discretionary Spending
• National Institutes of Health
• Centers for Disease Control and Prevention
• Indian Health Service
• Title X Family Planning
• Funding for
– Substance Abuse and Mental Health Services Administration (SAMHSA)
– Health Resources and Services Administration (HRSA)
– Food and Drug Administration (FDA)
13. Figure 12
Mandatory Spending
• Spending that is promised in statute for an
ongoing period.
• In any single year, it will be enough to meet
the promise of the statute
• The presumption is that the money will be
there unless the Congress acts to change the
promise in statute.
• Budgeting by goods and services.
– E.g., Congress may promise free vaccine to all
children; how much will that cost?
• Medicare and Medicaid are examples of
mandatory health spending
14. Figure 13
Tax Spending
• Tax spending is “revenue foregone,” i.e., money that
would normally have come in as taxes but is, instead,
kept by the taxpayer for a special use.
– The usual forms are a tax deduction, a tax credit, or a
refundable tax credit.
– E.g., if you immunize your own child, you may be allowed to
deduct the cost of the vaccine from your taxes.
• Most tax spending is an ongoing promise in statute
(like mandatory spending), so the presumption is that
the money will be there unless Congress changes the
promise in statute.
15. Figure 14
Tax Spending (continued)
• Since the money never actually comes into the
Treasury, tax spending is an indirect form of
spending.
– But for bookkeeping and accounting purposes, money that
doesn’t come in is the same as money that comes in and
goes out.
• As opposed to the other spending types, this
spending is rarely noted as part of the budget.
– E.g., the President’s proposal for 2005 was described as
“$2.57 trillion”; if tax spending had been included it would
have been $3.49 trillion”.
16. Figure 15
The President’s Health Care-Related
Tax Proposals, FY 2006 – FY 2015
$0.2
$22.7
$28.5
$74.0
$180 Billions of Dollars
$160
$140
$120
$100
$80
$60
$40
$20
$0
Total = $125 Billion
Other Health Tax Related
Proposals
Small Employer Tax Credit
for HSA Contributions
High Deductible Insurance
Premiums Tax Deduction
Health Insurance Tax Credit
SOURCE: Department of the Treasury, “2005 Blue Book” General Explanations of the
Administration’s Fiscal Year 2006 Revenue Proposals, February 2005.
17. FFiigguurree 1166
Types of Spending are Changing
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Discretionary
Mandatory
in Proportion
1969 2005
SOURCE: OMB, FY05 Budget, February 2005 (Historical Tables, Table 8.3).
18. Tax Spending Will Soon Outpace
Discretionary Spending for the First Time
1500
1000
500
0
2005 2007 2009
Discretionary
Tax
Mandatory
Figure 17
SOURCE: Congressional Research Service and Federal Reserve.
19. Figure 18
Baseline
• “The Baseline” is the projection of how much
mandatory spending will be in the future.
• To keep the promise in the statute, more
money will be needed in the future.
– E.g., the promise may cost more, may
cover more people, or may include more
goods and services.
20. Figure 19
Projections of Federal Medicare
Spending, 2004-2010
$433
$407
$381
Billions of Dollars
$265
$290
$340
$460
2004 2005 2006 2007 2008 2009 2010
SOURCE: OMB, President’s FY2006 Budget, Historical Tables, February 2005.
21. Figure 20
Changes to the Baseline
• For instance, the promise of Medicare will cost more
next year than this year.
– There will be more people who qualify.
– The costs of current services will inflate.
– The mix of goods and services will expand (e.g., old
technologies (like X-rays) will be supplemented with new
ones (like CAT scans)
• Providing the same amount of money from year to
year would erode the promise.
22. Figure 21
Limits--Discretionary
• Discretionary spending is limited by an overall cap,
specified in the annual Congressional budget
resolution.
– The total of all discretionary spending cannot exceed a
specified total.
– This creates a zero-sum game for new spending.
• Creating a new program requires cutting an existing
program.
23. Figure 22
Limits—Mandatory and Tax Spending
• Mandatory spending and tax spending already in law
are not capped.
– A cap would force breaking statutory promises.
– Unless Congress changes the promise in statute,
mandatory spending and tax spending grow automatically.
• Any legislation that increases mandatory or tax
spending above the level specified in the annual
Congressional budget resolution is subject to a “Pay
As You Go” (or PAYGO) requirement.
• PAYGO requires that any legislation increasing
mandatory spending promises must be
accompanied by legislation reducing mandatory
spending promises by an equal amount.
24. Figure 23
Scorekeeping
• To know whether new legislation meets
PAYGO requires an estimate of the costs and
savings. This estimate is called “the score.”
• The Congressional Budget Office (CBO), a
non-partisan branch of the Congress, is the
official scorekeeper of legislation.
25. Figure 24
Scorekeeping (continued)
• CBO estimates the five-year costs of mandatory
spending or tax spending legislation.
– E.g., a bill to provide free immunizations to all children will
increase spending
– Or, put another way…
costs = (number of children) x (percentage of children who will
seek immunization) x (cost of the immunizations per child) x
(expected increases in children, percentages, and costs).
26. Figure 25
Scorekeeping (continued)
• In estimating the score, CBO may also take into
account possible savings.
– E.g., the immunizations bill may save some
money because children will no longer be
hospitalized for preventable illness.
27. Figure 26
Federal Budget Process
President’s Budget Submitted to Congress
First Monday in February
Congressional Budget Resolution
Discretionary spending allocated
to the Appropriations committees
Annual Appropriations
OR
- House and Senate Appropriations
committees sub-allocate spending to their
subcommittees
- Bills considered by House/Senate and
negotiated in conference
- Bills signed by the President
Budget Reconciliation
- Senate Finance, House Commerce,
House Ways & Means, and other
committees report changes to
House/Senate budget committees
- Changes compiled into one bill
- Bill considered by House/Senate and
negotiated in conference
- Bill signed by the President
Fiscal Year begins October 1
SOURCES: Congressional Budget Act of 1974, as amended; Oleszek, Congressional Procedures
and the Policy Process, 2001
28. Figure 27
The Federal Budget Calendar:
February- March
Early February: President submits proposed budget
for the next year to the Congress.
•This budget sets the Administration’s
programmatic and funding priorities
•Proposal only advisory to the Congress--
not binding
February & March: House and Senate committees hold
hearings on the proposed budget.
29. Figure 28
The Federal Budget Calendar:
April
April 15: The Congress passes a House/ Senate Budget
Resolution.
• Resolution is a blueprint of Congress’ plan for the
budget.
• It is NOT law and is NOT sent to the President for
signature.
• This resolution contains both the Discretionary
Spending Cap and any targets for planned cuts or
increases in mandatory and tax spending.
Note: This deadline is frequently missed.
30. Figure 29
The Federal Budget Calendar:
May-September
May through September:
• Appropriations Committees draft and enact legislation
to provide discretionary spending for the coming year,
up to the level of the Discretionary Spending Cap.
• Authorizing Committees draft and enact legislation to
make mandatory and tax spending changes to meet
targets set in the Budget Resolution.
– The entire package of this legislation is called “Budget
Reconciliation” (because it “reconciles” the promises in statute
with the targets for the budget).
31. Figure 30
The Federal Budget Calendar:
October
October 1: New federal fiscal year begins
– If appropriations laws are not enacted by October
1, Congress typically enacts temporary “band-aid”
measures (called Continuing Resolutions) to
keep programs operating until the laws are
enacted.
32. Figure 31
Four (of Many) Health Policy Problems
Caused by the Budget Process
• Discretionary spending breaks promises.
– Health care costs grow faster than discretionary spending.
Programs to provide comprehensive health care (like the
Indian Health Service) will fall behind.
• Long-term health investments discouraged.
– New prevention and treatment efforts may reduce
mandatory spending in the long run, BUT scorekeeping
looks at only the next five years.
– E.g., early treatment of HIV costs money in the short run but
may save money in the long run.
33. Figure 32
Four Problems (continued)
• Tax spending is opaque and unevaluated.
– Increasingly, federal policy is funded through tax spending,
BUT it is not generally shown as part of the budget and is rarely
evaluated for effectiveness.
• Scorekeeping overprices and undervalues health
benefits.
– Scores for prevention and treatment may appear high— BUT
that’s because the services keep people alive longer.
34. Figure 33
In Conclusion
• The budget and its process are always changing.
– E.g., surplus once in 2000, huge deficits since.
– E.g., Medicare will soon begin paying for services out of its
trust fund.
– E.g., new rules for PAYGO are under consideration.
• But it will always be big and it will always drive policy.
• But now you understand it.