3. The Budget Timeline:
How does the federal budget
process work?
www.bread.org
1. President’s Budget Request
2. Congressional Budget Resolution
3. Appropriations
4. Debt Ceiling
5. Other Budget Bills (deficit reduction,
entitlement programs, taxes, balanced
budget amendment)
4. Budget Basics:
Where do our federal tax dollars go?
• Programs for low-income www.bread.org
families are a fraction of
government spending.
• They have played virtually
no role in creating our
deficits.
• 1/3 of non-security
discretionary spending
goes to state and local
governments.
5. Budget Myths and Realities:
• Myth: Our deficits don’t www.bread.org
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.
6. Budget Myths and Realities:
www.bread.org
• Myth: Government spending
is out of control.
• Reality: The 2001 and 2003
tax cuts, the wars in
Afghanistan and Iraq, and
the recession itself are why
we see high deficits today.
7. Budget Myths and Realities:
www.bread.org
• Myth: Government
spending is out of control.
• Reality: The real threat is
the long-term structural
imbalance between
spending and revenues.
– Rising health care costs
– Aging population
– Insufficient revenues
Center on Budget and Policy Priorities
8. Reducing Deficits and Poverty:
We Don’t Need to Choose
www.bread.org
• We need to address
deficits.
• Ending poverty and
hunger requires
government action.
• Anti-poverty programs
have had a powerful
impact.
9. Cap on Overall Federal
Spending
www.bread.org
• Limits all federal
spending (share of the
economy)
• Keeps programs from
growing
• Entitlement programs
structured to grow when
there’s more need
10. Balanced Budget
Amendment
www.bread.org
• Requires the government to
balance the budget every year.
• Government can’t run deficits
during recessions.
• Supermajority requirement to
waive.
• Most states have BBAs
• Would force harmful cuts in
low-income programs—
especially during recessions
11. Triggers
www.bread.org
• Sets a debt target
• Automatic across-the-
board cuts and/or tax
increases if targets
missed
• Intended to force
compromise in Congress
12. Circle of Protection
www.bread.org
• Create a circle of
protection around
programs for hungry and
poor people in the United
States and abroad.
• Historical precedent over
the past 30 years.
We have to make sure our members of Congress make the right choices when addressing our deficits. It’s about priorities and values. We know that we can’t end poverty through our soup kitchens and individual charity alone. The federal government must play a role. Through programs like WIC, SNAP (formerly food stamps), Medicaid, and the Children’s Health Insurance Program, our country has made tremendous gains in terms of nutrition, infant mortality, and children’s health care. Anti-poverty programs work—if they’re funded.
