The President’s Budget $$$

The President’s Budget

$$$

COOK’S “caveat emptor”

I am a Historian,

Not an Economist

The President's plan is known as the

Budget of the U.S. Government

* “Fiscal Year”FY2013

* Congress must approve the

President’s Budget

(Power of the Purse)

* The President’s Suggestions:

•#1 How Much to Spend?•#2 What to spend it on?•#3 How to Raise the Money They Decided to Spend?

Budget and Accounting Act of

1921

Annually, the First

Monday in February

The President Must Show:

•condition of the Treasury at the end of the last completed fiscal year

Prez Must Also Show:

•estimated condition of the Treasury at the end of the current fiscal year

Prez Must Also Show:

•estimated condition of the Treasury at the end of the next fiscal year if the budget proposals are carried out

* Office of Management and

Budget (OMB)

The Budget Timeline

• Spring : President's develops an overall budget strategy• Summer: Federal agencies submit their budget estimates

The Budget Timeline

• Fall: Estimates provided by the agencies are reviewed by OMB•Winter: The President's budget is reviewed, finalized, and submitted to Congress as required

Printing the Budget

• GPO also makes the President's Budget available to the public in both print and electronic formats.

The people can freely access it online via GPO Access or even buy their own printed copy ($26.00)

* Debt vs. Deficit?

•DEFICIT: Spending more $ than you are bringing in as income

•DEBT: The result of annual deficit spending

1989 to 2000; 2002- Present DayExceeded 10 Trillion in 2008

(out of numbers)

New clock in the works later this year

CURRENT DEBT CLOCK

Obama’s FY 2011 Budget

$ 3,830,000,000,000

http://www.gpoaccess.gov/usbudget/fy11/fct.html

$ 3,830,000,000,000Spent on What?!

• Nat’l Defense$ 701,790,000,000• Soc. Sec. $ 731,542,000,000 • Education $ 118,633,000,000• Nat’l Resources $

40,252,000,000 • Science $ 31,459,000,000• Energy $9,970,000,000

Where does $ 3,830,000,000,000?!Come From?!!

• First Off: We DON’T Have It!! Creates a $ 1,270,000,000,000 DEFICIT• Cuts Bush Tax Cuts on $250,000

and up families

Let me show you a TRILLION dollars!

A Packet of one hundred $100 bills = $10,000

$1,000,000

$100,000,000

$1,000,000,000

$1,000,000,000,000!!