Name:
Date:
Period:
Notes
Chp. 14: The Federal Bureaucracy
and Budget
Chp. 14: Title
1
In the course of reading this chapter and participating in the classroom activity, students will
a. describe the role and impact of government bureaucracies.
b. examine the historical and modern roles of the president and the executive
branch in the budget process.
c. analyze the responsibilities and budgets of selected departments in the federal
bureaucracy.
d. compare the ways in which the national, state, and local governments raise
revenue and make expenditures.
e. defend a position on how well the federal government budgets and spends tax
dollars.
Typical Monthly Expenses for a Young Adult
 housing (rent and utilities)
 health insurance
Examine the list of typical monthly living expenses for a young adult. Then answer these questions:
 cable television: basic service,
1. Are all of these expenses absolutely necessary? Why or why not?
premium channels
 Internet
 cell phone: basic service, fees for calls
and text messaging
 clothing
2. If your monthly income did not cover all of these expenses, you would have
 groceries
 restaurants and takeout
certain options, such as borrowing money, working more, or eliminating
 transportation
 education
expenses. What are the benefits and consequences of these options?
 entertainment
Preview
3.
If you absolutely had to eliminate expenses, how would you decide which expenses to keep and which to eliminate?
4.
How might these personal budget challenges be similar to and different from those of the federal government?
Notes
Chp. 14: Title
2
The Organization of the Executive Branch
I.
II.
The White House Staff
1.
Made up of about
2.
Chief of Staff –
3.
Press Secretary –
The Executive Office of the President
1.
Office of Management and Budget (OMB) – l
2.
Council of Economic Advisers (CEA) –
3.
National Security Council (NSC) –
III. The Executive Departments
1.
There are 15 Cabinet Departments
2.
Dept. of State –
3.
Dept. of Treasury –
4.
Dept. of Defense –
5.
Dept. of Justice –
6.
The newest is
IV. Independent Agencies
1.
Called independent because
2.
NASA –
3.
Environmental Protection Agency (EPA) –
Evolution of the Budget Process
I.

The federal budget is

The US government’s fiscal year begins
Congressional Control of Federal Spending: 1789-1921
1.
2.
dominated the federal budget process
All proposals for the spending of federal funds begin
a.
3.
Usually revenues and expenditures came out even,
a.
Notes
The proposals were
If there was a shortfall,
Chp. 14: Title
3
II.
Presidential Dominance of Budget Making: 1921-1974
1.
The executive branch gained more control over the federal budget process
2.
Congress enacted the Budget and Accounting Act of 1921,
3.
Gave the executive branch more
a.
4.
Congress
By 1970,
III. Shared Control of Budget Making: 1974 – Present
1.
Congress enacted Budget and Impoundment Control Act of 1974
a.
2.
Hoped to
3.
Many new costly programs have led to
The Federal Budget Cycle
I.
Phase One: The Executive Branch Prepares a Budget Proposal (~10 months)
1.
The budget process begins
2.
Departments and agencies submit budget requests to the
3.
The OMB review the requests
4.
II.
Phase Two: Congress Crafts a Budget Resolution (~4 months)
1.
Budget committees in the House and Senate
2.
Based on hearings form the OMB,
a.
3.
The resolution goes to a
III. Phase Three: Congress Enacts Appropriations Bills (~4 months)
1.
House and Senate Appropriations committees work on
a.
2.
IV. Phase Four: The Budget Goes Into Effect
1.
Budget should go into effect on
2.
If the president and congress cannot reach an agreement,
a.
Notes
The last one was
Chp. 14: Title
4
Where the Money Comes From and Where it Goes
I.
Revenue Sources
1.
Largest source of revenue for the government is the
a.
Authorized by the
b.
it is flexible and progressive –
c.
2.
d.
must file a tax return by April 15 –
e.
most people pay taxes through withholding –
Social Insurance Taxes (Payroll taxes) –
a.
b.
3.
Excise Taxes
a.
4.
progressive taxes –
5.
regressive taxes –
How your Taxes Are Calculated
Single Taxpayers:
and Surviving Spouses:
Married Filing
If you are single and earned $50,000 you fall into the 25% tax bracket. Subtract $36,900 from $50,000 (you get $13,100) and
multiply that by 25% (equals $3,275). Add that to $5081.25 (equals $8,356.25).
If you are married and you and your spouse earned $150,000 together, you fall into the 28% tax bracket. Subtract $148,850 from
$150,000 (you get $1,150) and multiply that by 28% ($322). Add that to $28,925 (equals $29,247)
1.
How much would a single person pay in taxes if they earned $25,000 in one year?
2.
How much would a single person pay in taxes if they earned $200,000 in one year?
Notes
Chp. 14: Title
5
3.
How much would a married couple pay in taxes if they earned $400,000 in one year?
4.
Who pays more taxes per person – a single person who makes $200,000, or a married couple who makes $400,000?
5.
So, is there a tax break for married couples?
II.
Mandatory Spending: Entitlements and Interest
1.
2.
covers about 2/3 of the national budget
a.
NOT argued over by the President and Congress
b.
the law dictates that these must be covered and can only be altered by special legislation
entitlements – benefits that must be provided to all eligible people who seek them; EX-Social Security, Medicare, and
Medicaid
III. Discretionary Spending: Defense, Government Services, and Pork
1.
the part of the budget that is debated
2.
biggest part goes to the Department of Defense
3.
earmarks – money set aside for specific projects; where a lot of the debating occurs
Glossary Chp. 14
Directions: Fill in the definition for the term listed. Then, in the box on the right, you have to draw a picture OR
write the definition in your own words OR write a sentence using the word that demonstrates its meeting.
Chief of Staff
.
Processing (Illustration, Summarization, or Sentence)
.
.
..
Press Secretary
.
Processing (Illustration, Summarization, or Sentence)
.
.
..
Balanced Budget
.
Processing (Illustration, Summarization, or Sentence)
.
.
..
Notes
Chp. 14: Title
6
Glossary Chp. 14
Directions: Fill in the definition for the term listed. Then, in the box on the right, you have to draw a picture OR
write the definition in your own words OR write a sentence using the word that demonstrates its meeting.
Budget Surplus
.
Processing (Illustration, Summarization, or Sentence)
.
.
..
Federal Deficit
Processing (Illustration, Summarization, or Sentence)
.
.
.
..
National Debt
.
Processing (Illustration, Summarization, or Sentence)
.
.
..
Progressive Tax
.
Processing (Illustration, Summarization, or Sentence)
.
.
..
Regressive Tax
Processing (Illustration, Summarization, or Sentence)
.
.
.
..
Entitlement
.
Processing (Illustration, Summarization, or Sentence)
.
.
..
Earmark
.
Processing (Illustration, Summarization, or Sentence)
.
.
..
Notes
Chp. 14: Title
7
Summary
DIRECTIONS: Choose only one of the following:
a) write a summary (25-75 words) of what you believe was the most important aspect of the notes/lecture
b) write what you believe to be the most interesting or memorable part of the notes/lecture (25-75 words)
c) draw something that symbolizes the notes/lecture to you (has to be different than your title page)
Notes
Chp. 14: Title
8