Students are directed to review material on NationalPriorities.org web site, specifically Federal Budget Process 101 – this is a four part project each section will take an hour of review time. Students should at the end of this self-directed project, be able to identify the five key steps in the Federal Budget Process, be able to identify the major sources for Government revenue, be able to identify the major causes for Government expenses and be able to identify deficit and surplus budgets and the role deficit spending and debt play in our Nation’s Economy.
Section I – The Federal Budget Process – Review the five major steps in our Federal Budget Process and the Fiscal Budget Calendar. Identify the key players and their responsibilities, identify the timeline for keeping the Budget Process on time, identify the deliverables at each stage of the process and finally identify the options if a budget resolution is not reached on time.
Section II – Where Does the Money Come From? – Review the major sources of Government revenue, how is it collected and by whom and what was the government revenue for the past fiscal year. Identify the major forms of taxation, the difference between progressive and regressive taxes, what percent of Government Revenue are associated with which taxes, which taxes go to the general fund which are earmarked for specific spending requirements.
Section III – Where Does the Money Go? – Review the Governments spending for the past fiscal year, identify the discretionary and non-discretionary portions of the budget. What are entitlement programs, how do they impact the budget? What % of the budget do the President and Congress have the ability to change? How are discretionary budget dollars spent? Which areas receive the most funding, which receive the least? How are priorities established?
Section IV – Deficit Spending and Debt – Understand the difference between Deficit Spending and National Debt? What was the deficit for the past fiscal year, what is the current National Debt. How does the Government borrow money? Who does the Government borrow from? What is Debt Service and how does it impact our ability to deliver government services? Has our country ever been debt free and when was the last time we ran a budget surplus?
