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Federal Budget Process
CFTC Budget
Budget Formulation Process
Appropriations Law
Misc.
100
What is the agency with the most responsibility for creating the federal budget?
What is the Office of Management and Budget.
100
What is the national debt?
What is all money borrowed by the federal government that has not been repaid: all the years' deficits added up.
100

Give an example of mandatory spending.

ENTITLEMENTS; Social Security, Medicare, Medicaid; interest on national debt

100
Who has the Constitutionally-given power to appropriate funds?
What is Congress.
100
What is the type of policy that deals with the federal budget?
What is fiscal policy.
200
Who passes the budget resolution?
Who is the House and Senate: both pass their own budget resolutions.
200
What is a deficit?
What is when expenditures (money spent) exceeds revenues (money gained).
200

Where does the largest percentage of the federal budget go?

What is entitlement spending.

200
What act made it so the President cannot withhold funds Congress has appropriated?
What is the Congressional Budget and Impoundment Control Act of 1974.
200
Which president's actions caused Congress to pass legislation to prohibit impoundment?
Who is President Nixon.
300
Is the budget resolution passed before or after a conference report?
What is before.
300
What is a surplus?
What is when revenues (money gained) exceed expenditures (money spent).
300

Where does the federal government receive most of its funding?

What is from income taxes.

300
Who has the power to initiate appropriations bills?
Who is the House of Representatives.
300
Name and Explain the 3 types of tax systems.
REGRESSIVE: tax rate decreases with income; PROGRESSIVE: tax rate increases with income; PROPORTIONAL: everyone pays the same percentage of income
400
What is a continuing resolution/continuing appropriations?
What is a resolution that allows federal agencies and programs to continue operation until the regular appropriations legislation are passed/enacted.
400
What is mandatory spending?
What is money that must be spent, i.e. non-discretionary spending.
400

What is discretionary spending and give an example.

What is spending that is not necessary or mandatory: housing, education, infrastructure, defense, etc.

400
What is each branch's responsibility in the creation of the Federal Budget?
EXECUTIVE: the Office of Management and Budget helps prepare budget proposal (and oversees the apportionment process), submitted to Congress by the President; LEGISLATIVE: creates final form of the budget to be passed by both houses of Congress
400
Explain the differences of the basic principles behind demand-side economics (Keynesian) and supply-side economics (Reaganomics).
DEMAND-SIDE: government spending on programs stimulates the economy; high demand + low productivity = inflation, low demand + high productivity = unemployment SUPPLY-SIDE: economy is stimulated through tax breaks and decreased regulation; "trickle-down" theory: allowing the rich to spend more ultimately benefits the poor
500
What is the Congressional agency that reviews legislation dealing with the federal budget and advises Congress on budgetary implications?
What is the Congressional Budget Office.
500
What is a conference report?
What is a report created to reconcile differences between the budget resolutions passed by both houses. The conference report must be passed by both the House and Senate.
500

Name one type of revenue for the federal government (other than income tax) and give an example.

EXCISE TAX: sin taxes: alcohol, tobacco; gasoline, cell phone, tanning; ESTATE & GIFT TAX: tax on gifts of money exceeding $18,000; tax on estate worth more than $1 million; CUSTOMS, TARIFFS: tax on items brought in from another country, tax on imports; BORROWING: from citizens, other countries

500
What famous law created the current budget process?
What is the Congressional Budget and Impoundment Control Act of 1974.
500
Describe how the federal budget process exemplifies the principle of checks and balances/separation of powers.
The Executive branch is responsible for creating a proposal that is sent to Congress. The president/OMB cannot pass the budget without Congressional approval. Congress relies on the Executive branch to create the proposal for the budget. (neither branch has sole responsibility for creating and implementing the federal budget)