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HOW TO READ HIGHLIGHTS OF THE FEDERAL BUDGET (WITH SELF-TEST)

This treasure hunt challenges us to find and make political sense of key pieces of information

We discover on the way how the democratic process awkwardly working its way through many

institutions and cumbersome procedures generates the choices reflected in the information The

information often is not packaged the way we want for political analysis or political action

Federal budget documents are designed primarily to account for and monitor financial resources

as federal law dictates The documents are the products of many institutions (see Appendix A in

the text) whose ways of doing the publicrsquos business evolved over many years These documents

their perspectives and their categories do not necessarily make sense outside of an historical and

institutional context And so we hunt

Few people ever plow through all of the numerous documents that together are the federal

budget The Office of Management and Budget (OMB the presidentrsquos central budget staff in the

Executive Office of the President) lists as budget documents lengthy items plus additional

supplemental and supporting material running to thousands of pages and many gigabytes

Records of legislative action and testimony add even more documents to the list This means we

are not the first to detour around details and technical obstacles whenever possible in order to

concentrate on political meanings and effects

Fortunately there are shortcuts One shortcut is the many analyses available from government

offices think tanks and advocacy and lobbying groups that offer alternatives (see the Web site

resource Internet Resources ) The problem here is that although numbers donrsquot lie they are

selected and displayed to make a political point So it is crucial to understand the political

agenda of the office producing the analysis A second shortcut is to seek information from your

representative or senator but their officersquos schedule and staffrsquos technical knowledge affects the

2

responsersquos usefulness The third is to focus on the highlights important to the political story that

is told in four parts the executive proposal congressional action execution and audit Here we

focus exclusively on the documents in the executive proposal and congressional action (see

Appendix A in the text)

It turns out that learning how to read the federal budget takes some expertise time grit and

selectivity But this treasure hunt is worth the effort The prize is money and power that affects

almost every institution and person in the country (see box 1) A careful reading is a powerful

political tool Given the number of zeroes in $36 trillion (FY 2010 proposed budget) the payoff

is enormous It is best to (a) use the documents as roadmaps to political power (b) not let the

details overwhelm you and (c) keep your eyes on the main issues

Box 1 The Payoff Affects Institutions and People

How does federal budgeting affect educational and nonprofit institutions See examples at

httpwwwwhitehousegovombcircularsindex-educationhtml

How does federal budgeting affect state and local governments See examples at

httpwwwwhitehousegovombcircularsindexhtml

Part I Executive Proposal

Starting at the beginning of the process with the presidentrsquos proposal Part I provides ten keys to

reading the federal budget The document formally entitled Budget of the United States

Government Fiscal Year 20XX (substitute the current fiscal year here and explore

httpwwwwhitehousegovomb) is the presidentrsquos yearly budget recommendation to Congress

required by the Constitution on or before the first Monday in February Developed by OMB the

3

presidentrsquos proposal ismdashand is supposed to bemdashdecidedly political and partisan (see figure 1) It

contains four core sets of information

summaries of the presidentrsquos policy and management priorities (see table 1)

budget overviews of individual agencies

proposals for changes in discretionary spending that have to go through the

appropriations process and proposals for mandatory spending that mostly go through

congressional authorizing committees for reconciliation with the congressional budget

resolution

and the presidentrsquos preferred fiscal policy shown in recommended levels of spending and

revenues and how large a deficit or surplus the president favors

The summary tables at the end of the document provide useful totals on deficit surplus

employment and more

Source Photo by Pete Souza 2009 White House January 26 httpwwwwhitehousegovomb

accessed February 22 2009

Figure 1 President Obama and OMB Director Peter Orszag 2009

4

Table 1 Homeland Security Funding in Presidentrsquos Proposed Budget for FY 2009

Source OMB 2008 Budget of the United States FY 2009 Summary Tables Homeland Security

Funding by Agency Table Sndash4 p 142

httpwwwgpoaccessgovusbudgetfy09pdfbudgettablespdf accessed February 18 2009

function fiscal

year Budget

Authority

legal

status

agencies

5

To simplify matters let us begin by thinking of the federal budget as three bundles of political

information First there is the world through the presidentrsquos eyes the presidentrsquos proposals

discussion of the issues as the president sees them how the presidentrsquos administration wants to

translate these into financial specifics (what the president wants to increase and decrease and to

create and eliminate) and the management improvements the president plans to make

The second bundle recognizes that budget players the media and citizens look at the presidents

proposal as a political indicator a benchmark against which to assess the political questions that

follow How much of what the president wants does the president actually get How close does

Congress stick to the presidentrsquos proposal and what changes does Congress make and why

The third bundle is about sound finances Is the proposal financially sound How does it deal

with long-term financial problems Does the proposal include all estimated costs including

defense and national intelligence or are these being excluded and the proposal unrealistic (see

table 1 and figure 2) Does the proposed budget balance and use realistic projections

6

7

Source GAO 2008 The Nation by the Numbers A Citizenrsquos Guide A Summary of the FY 2007

Financial Report of the US Government p 8 httpwwwgaogovfinancialfy2007guidepdf

Source Government Accountability Office 2009 The Federal Governmentrsquos Financial Health

A Citizenrsquos Guide to the 2008 Financial Report of the US Government p 10

httpwwwgaogovfinancialfy2008citizensguide2008pdf

Figure 2 US Governmentrsquos Financial Statements

8

We suggest ten general concerns with which to start They are identified in the following

documents starting with table 2 from the last budget proposal submitted by President George W

Bush Also work with Appendices A and B that define the key terms Then compare table 2 to

table 3 from the first budget proposal from President Barack Obama Which main features are

unchanged What is different about the information presented and how it is treated

Table 2 Budget Summary in Presidentrsquos Proposed Budget for FY 2009

unified vs

consolidated

budget 9

amount

1 fiscal

year 2

outlays

3

types of

spending

4

out-year

estimates

5

focus on

deficit 10 policy proposal not yet approved by Congress 10

9

Source OMB 2008 Budget of the United States FY 2009 Summary Tables Budget Summary

by Category Table Sndash8 p 162 httpwwwgpoaccessgovusbudgetfy09pdfbudgettablespdf


Table 3 Baseline Projection of Current Policy in Presidentrsquos Budget Proposal for FY 2010

Source OMB 2009 Budget of the United States FY 2010 Summary Tables Table Sndash3

Baseline Projection of Current Policy by Category

httpwwwwhitehousegovombassetsfy2010_new_eraSummary_Tables2pdf

How does table 3 compare to table 2 What information is different The same

includes

estimated

costs

of military

operations

and disaster

response

current services

10

1 Federal budgeting is the only subject we know that is like astronomymdashthe numbers run

up into the billions and trillions Different budget documents show dollars in different amounts

It is important to keep the amounts consistent

2 It is important to work with the appropriate fiscal year The federal fiscal year runs from

October 1 through September 30

3 Meaning for the most part the cash that actually is paid out (or disbursed) outlays is the

measure of actual government spending in a fiscal year Budget totals show all receipts

including taxes and other revenues The federal government keeps its books on a cash basis of

accounting meaning that receipts generally are counted in the fiscal year in which they are

received and spending is counted in the fiscal year in which payment is paid This method of

accounting does not meet accepted professional standards (see Web site resource Internet

Resources Financial Management Auditing and Accounting ) When a transaction is counted

matters timing affects many things such as the calculation of surplus or deficit for the fiscal year

(see figure 2)

4 There are two types of spending a distinction that is politically important because it tells

us who wields the decision-making power The first type is determined through the annual

appropriations process and these discretionary outlays represent only about 40 percent of total

outlays Appropriations fall under the jurisdiction of the House and Senate Appropriations

Committees and their subcommittees

House and Senate legislative committees control the second type of outlays mandatory spending

amounting to about 60 percent of outlays Mandatory spending includes spending for

entitlements such as Social Security and Medicare other programs such as food stamps and

interest on the public debt Because the Constitution (Article I Section 7) requires that revenue

11

bills start in the House and that means the Ways and Means Committee which also handles

many mandatory programs this committee and its chairman are very powerful in the national

political system

5 Future (or out-year) estimates are based on current law plus economic projections built

on assumptions about employment inflation people eligible for programs and more These

figures will change as circumstances and law change If future impacts are important to the

political issue then the reliability of the estimates and projectionsmdashrosy scenario or wishful

thinking smoke and mirrors politically useful tall talemdashare as important to understand as the

numbers themselves (see box 2) So too is the trajectory that shows the direction in which we

are heading The quality of the estimate matter some might define a hard estimate as an

informed guess and a soft estimate as a wild guess

Box 2 The Quality of Estimates Matter

―In political arithmetic two and two does not always equal four

Alexander Hamilton first Secretary of the US Treasury Department

Alexander Hamilton started the US Treasury with nothing and that was the closest our country

has ever been to being even

Humorist Will Rogers (1879-1935)

6 Budget authority (BA) is the authorization by law for federal agencies to make legal

obligations (such as purchase orders or contracts) that result in current or future government

outlays BA is politically important because this is what is budget decisions are about outlays

are not the basis of decision making BA is permission to spend but the term outlays refers to the

spending itself (see Appendices A and B) The four types of BA include appropriations

12

borrowing authority contract authority and spending authority from offsetting collections New

BA for many programs may be provided through the annual appropriations acts but new BA for

more than one-half of all outlays is through permanent appropriations for trust funds debt

service and more For example BA for interest on the public debt is given automatically under a

permanent appropriation dating to 1847

BA is how much money a federal agency is allowed to commit to spend Outlays are how much

money in fact flows out of the federal treasury in a given year BA is recorded as the dollar

amount in the budget in the year in which it is first available but not all newly enacted BA (new

BA) is obligated or spent in this first year Some obligations may be made but not yet paid and

this obligated BA results in outlays in a future year Outstanding and unobligated BA (meaning

not yet legally committed) may be carried over to future years when legally permitted otherwise

the authority lapses or expires) When this old BA is obligated it results in federal outlays The

outflow of federal cashmdashoutlaysmdashin a fiscal year is the sum of new BA old obligated BA and

newly obligated BA from old unobligated BA

The effect of BA old and new on outlays means that no one decides directly on outlays in any

particular fiscal year In fact outlays are the unplanned product of many decisions taken now and

in the past and driven by the timing of billing contracts delivery dates and so on As the ratio of

outlays resulting from new BA to newly enacted BA the spendout rate is a measure of the

impact of current decisions on current outlays The ratio of outstanding old BA to new BA is a

measure of the impact of past commitments on current spending

Figure 3 shows the relationship between BA and outlays for FY 2011 The president proposed

that old BA account for 24 percent of outlays in FY 2011 (compared to 22 percent of outlays

13

proposed in FY 2009) and that 20 percent in FY 2006) and that 35 percent of proposed new BA

leads to outlays in future years (compared to 20 percent in FY 2009)

Source OMB 2009 Analytical Perspectives Budget of the United States Government Fiscal

Year 2010 Chart 111 p 126

httpwwwwhitehousegovombbudgetfy2011assetsconceptspdf

Figure 3 Relationship of Budget Authority to Outlays for FY 2011

BA and its relationship to outlays are important for two main reasons First budgetary decisions

are made in terms of BA and it is BA that results in outlays Second old BA and the increasing

14

part of the budget claimed by spending required by law already in place (such as entitlements

and interest on the debt) mean that a smaller proportion of the budget is decided during the

current decision cycle Current political accountability and responsiveness are reduced as past

decisions account for a large and increasing share of the current budget

7 Increases or decreases in outlays may be driven by changing economic or demographic

conditions or may result from policy changes Taking a job with a program enjoying increased

current outlays may not be a good career move if the increase reflects the costs of winding down

the operation or higher costs and less activity a check against new and unobligated old BA and

current services (see no 8) is needed to interpret the meaning of current outlays

8 Current services estimates (executive) or baseline projections (congressional) tell us what

it will cost in the future to do what is required now under existing law

An important first step in the annual budget cycle is the preparation of a budget baseline

The baseline is the projection of revenue spending and deficit or surplus levels into

future years based upon the status quo Projections rest upon technical assumptions

(eg changes in demographic patterns and program workloads) and economic

assumptions (eg changes in the growth of the economy inflation rates and

unemployment rates) They assume that policies consistent with existing law will be

maintained Thus the baseline is an important tool for assessing policy changes inherent

in budget proposals (Keith 1996 pp 4ndash5)

The current services estimate allows us to compare one year to the next for programs featuring

changes in legal requirements number of beneficiaries amount of benefits purchasing power of

the dollar and more It is best understood as a benchmark against which to measure the

magnitude of proposed policy changes or the future costs of inaction The current services

15

estimate does not predict future budgets because federal laws and programs change but it serves

as an early-warning system for overall fiscal policy or individual programs The current services

estimate for mandatory programs and receipts is based solely on laws already on the books for

discretionary programs it is also adjusted for inflation This is an estimate of what it would take

to continue current federal law into the future

9 The unified budget in use since 1969 shows all receipts and spending except those

specifically excluded by law and gives us a comprehensive picture of what is going on But

nothing in the federal budget process is this clear-cut Under current law Social Security and the

Postal Service funds are excluded from federal budget totals and from the calculation of the

surplus or deficit The budget does show on-budget and off-budget totals and adds them together

to present overall totals in a consolidated budget

10 Just as other public budgets turn the spotlight on concerns usually selected for political or

financial reasons (see chapter 9) so does the federal budget The information is presented to tell

a story and draw attention to particular facts or trends

Part 2 Congressional Action

Congressional budget documents are important to understanding the federal budget for at least

two reasons The first is that Congress has the power to increase or decrease the presidentrsquos

spending and revenue proposals in some years Congress starts by rejecting the presidentrsquos

financial blueprint which observers then pronounce DOA (dead on arrival) This is not true of all

legislatures which may be forbidden by law to raise or decrease taxes or spending without the

executiversquos prior recommendation The second reason congressional budget documents are

important is that congressional budget action is necessary for the budget to become law the

Constitution gives Congress the power to tax borrow and pay debts (Article I Section 8) and

16

Congress must pass an appropriation According to Article I Section 9 ―No money shall be

drawn from the Treasury but in consequence of Appropriations made by law By law federal

agencies may neither obligate nor spend more than Congress has allowed and they may use the

funds for only those purposes that the law states Of course the president must sign the bills for

them to become law and much of the federal budget process has developed as a struggle between

the president and Congress for budgetary dominance

First Step Budget Resolution

Congressional action on the budget starts with the concurrent budget resolution (see figure 4)

Drafted by the House and Senate Budget Committees it is not a bill and does not go to the

president for signature or veto The resolution shows levels of revenue spending and the deficit

acceptable to Congress each year for a multi-year period Among the provisions of the annual

budget resolutions are (1) totals of new BA and budget outlays given by functional category (2)

total federal revenues and the amount if any by which the overall level of federal revenues

should be increased or decreased the surplus or deficit in the budget and (3) the public debt The

budget resolution can also include changesmdashtemporary or permanentmdashto the process

17

18

Source Excerpt from US House of Representatives 2008 Concurrent Resolution on the

Budget At httpthomaslocgovcgi-bincpqueryRcp110FLD0101(hr659) accessed

September 12 2008

Figure 4 Concurrent Resolution on the Budget FY 2009

Easier reading of congressional documents is the reward for struggling through the executive

section You already are familiar with a lot of the technical language You know that (1) federal

budget decisions are made on budget authority (BA) (2) discretionary spending is treated

separately from mandatory spending and (3) comparisons with current services or the baseline

are important

Congress classifies federal programs into twenty broad categories National defense is one

example other examples are agriculture education and health These functions are organized as

policy priorities not by government agency or congressional committee (see figures 5 and 6)

Spending totals for all functions in the budget resolution are distributed to congressional

19

committees for action in a report called the 302(a) allocation that supports the budget resolution

Decision makers realize that the developing budget is a plan They use spending revenue and

debt targets and recognize that later budget action or supplementals are likely (See figure 4)

Source GAO 2004 Fiscal Year 2003 Spending Patterns by Agency and Function Federal

Budget Agency Obligations by Budget Function and Object Classification for FY 2003 GAO-

04-834 June Figure 1 p 3 httpwwwgaogovnewitemsd04834pdf accessed March 6 2009

June 2004

Figure 5 Agencies versus Functions

20

Source Office of the Federal Register National Archives and Records Administration June

2008 The United States Government Manual 20082009

httpwwwgpoaccessgovgmanualbrowse-gm-08html

Figure 6 Government of the United States

21

Second Step Reconciliation Directive

Instructions in the budget resolution direct congressional committees to change existing spending

and revenue laws by a set date so that the targets set in the budget resolution can be met The

instructions do not dictate to the committees the detailsmdashwhat programs which laws or how

(see figure 7) The dollar amounts computed from the congressional baseline (developed by the

Congressional Budget Office or CBO Congressrsquo nonpartisan professional staff office) are built

on anticipated budgetary impacts of existing policies and changes to them An important political

tool the reconciliation process was designed to help reduce the deficit but in 2001 and 2003 it

was used to pass tax-cutting legislation Remember that the congressional budget process takes

place in a partisan environment

Source US Senate 2005 At

httpwwwsenategov~budgetrepublicananalysis2005bblatestpdf

Figure 7 Reconciliation Instructions Are Powerful Political Tools

committees

partisan political

arena outlays

out years

22

Third Step Appropriation

An appropriation is a law passed by Congress and signed by the president that permits agencies

to make obligations or payments of government money and the Treasury Department to make

payments (see table 4) According to the US Constitution (Article I Section 9 Clause 7) ―No

Money shall be drawn from the Treasury but in Consequence of Appropriations made by Law

and each year Congress considers about twelve regular appropriations bills and additional

supplemental appropriations that provide budget authority for discretionary spending

The budget resolution gives the Appropriations Committee a total for all of its programs The

Appropriations Committee decides how to divide up this funding for the coming fiscal year

among its subcommittees The subcommittees are Agriculture Commerce Justice and Science

Defense Energy and Water Financial Services Homeland Security Interior and Environment

Labor Health and Human Services and Education Legislative Branch Military Construction

and Veterans Affairs State and Foreign Operations and Transportation and Housing and Urban

Development The subcommittee allocations are known as 302(b)s

The annual appropriation states the specific dollar amount provided the specified government

department or agency and the period during which the funds are available If the appropriation is

not used the authority to commit and spend money lapses (expires) With its power of the purse

Congress can and does require agencies to submit more budget documents including a detailed

congressional justification (see table 5)

23

legal status

Table 4 Economic Recovery Act of 2009

Note The American Recovery and Reinvestment Act signed into law on February 17 2009

weighs in at over 1000 pages and $787 billion It was passed as an ―emergency supplemental

but is ―on budget so that it is figured into the calculation of the deficit

BA vs

Outlays

3 6

receipts and

spending

on cash

basis 3

fiscal year 2

amount

1

mandatory or direct vs

discretionary spending 4 out-year estimates

5

legal status

24

Source Elmendorf Douglas W 2009 Cost estimate for the conference agreement for HR 1

American Recovery and Reinvestment Act of 2009 Congressional Budget Office February 13

httpwwwcbogovftpdocs99xxdoc9989hr1conferencepdf accessed February 23 2009

Table 5 Congressional Justification

Source Department of the Treasury Congressional Justification FY 2009 Departmental

Summary p 1 httpwwwtreasurygovofficesmanagementbudgetbudget-

documentscj09CJ20FY09pdf accessed February 18 2009

historical

data

focus on

change

president frames the budget discussion

25

References

Keith Robert 1996 A Brief Introduction to the Federal Budget Process Congressional

Research Service Report 96-912 GOV httpcountingcaliforniacdliborgcgi-binnph_search

accessed September 11 2007

Further Resources on the Federal Budget Process and Documents

Coven Martha and Richard Kogan (2004) Introduction to the Federal Budget Process rev Dec

29 2004 Center on Budget and Policy Priorities httpwwwcbpporg3-7-03budhtm

Keith Robert 2008 Introduction to the Federal Budget Process Congressional Research

Service Report 98-721 updated httpbudgethousegovcrs-reports98-721pdf accessed

September 12 2008

OMB (2001) Budget of the United States Government Citizens Guide to the Federal Budget

FY 2002 Washington DC httpwwwgpoaccessgovusbudgetfy02pdfguidepdf

OMB (annual) The Budget System and Concepts Washington DC

httpwwwwhitehousegovombbudgetfy2006pdfconceptspdf

OMB Circular A-11 Preparation Submission and Execution of the Budget

httpwwwwhitehousegovombcircularsa11current_yeara11_tochtml

US House of Representatives 109th

Congress The Legislative Process At

httpwwwhousegovhouseTying_it_allshtml

Johnson Charles W 2003 Congressional Budget Process in How our Laws Are Made Chapter

12 US House of Representatives

httpthomaslocgovhomelawsmadebysecbudgetprocesshtml accessed September 12 2008

For budget implementation in federal agencies see httpwwwbudgetanalystcomProcesshtm

26

Streeter Sandy September 2006 The Congressional Appropriations Process An Introduction

97-684 GOV httpappropriationshousegov accessed September 11 2007

Congressional Research Service Reports Budget Process At

httpwwwruleshousegovarchivescrs_reportshtm accessed September 11 2007

Government Accountability Office 2009 The Federal Governmentrsquos Financial Health A

Citizenrsquos Guide to the 2008 Financial Report of the US Government At


Government Accountability Office 2005 Understanding the Primary Components of the Annual

Financial Report of the United States Government At

httpwwwgaogovnewitemsd05958sppdf

The federal budget process

httpwwwedgovaboutoverviewbudgetprocesshtmlsrc=rt

httpwwwedgovaboutoverviewbudgetbudget09justificationsn-sfapdf

httpwwwedgovaboutoverviewbudgetbudget0909actionpdf

Sample budget calendar httpwwwedgovaboutoverviewbudgetedlite-calendarhtml

Congressional Quarterly wwwcqcom

Web Sites

a US governmentrsquos official web portal httpwwwusagov

b Recovery Act Website httpwwwrecoverygov

c Annual Financial Report of the US Government and summary

httpwwwfmstreasgov

d Earmarks details httpwwwearmarksombgov

e Federal Program Results httpwwwexpectmoregov

27

f Where Taxpayer Dollars are Spent httpwwwUSAspendinggov

g Federal Agency Internet Sites httpwwwgpoaccessgovagencieshtml

h See the Web site recourse Internet Resources

Federal governmentrsquos organization

a US Government Manual 2008 official handbook of the federal government

published as a special edition of the Federal Register

httpwwwgpoaccessgovgmanualindexhtml

b US government organization chart 2008 httpfrwebgateaccessgpogovcgi-

bingetdoccgidbname=2008_government_manualampdocid=214669tx_xxx-3pdf

28

Self-Test Questions [see Appendix C for the answers]

1 In federal budgeting the term outlays refers to

a) the elimination of federalism to fund the national debt

b) planning costs for future programs

c) nothingmdashthis is a trick question

d) monies withdrawn from the US Treasury

2 Budget authority affects federal outlays by

a) providing a 5 percent plus or minus window within which spending must fall

b) setting the maximum amount that agencies may commit or obligate

c) eliminating separation of powers

d) authorizing the military to spend more than it earns in wartime

3 An example of a mandatory outlay is

a) military spending

b) the presidentrsquos salary

c) food stamp programs

d) spending on infrastructure

4 It is important to assess the reliability of estimates and projections when looking at the

presidentrsquos budget proposal because

a) presidents are elected officials not trained experts and they are prone to making

mistakes when handling highly technical budgetary issues

b) the presidentrsquos budget proposal is a political document and there may be political

incentives to paint an excessively rosy or grim scenario

c) the presidentrsquos budget proposal is nonpartisan and therefore does not take into

account economic factors such as assumptions about employment and inflation

d) reliability must be assessed in order to prevent government corruption

5 Budget authority (BA) that carries over from previous years reduces accountability

because

a) programs with old BA tend to cost more than originally estimated

b) it is impossible to identify the amount of money spent as a result of old BA and

hold political officials accountable for the outlays

c) it is difficult to hold current political leaders accountable for budget decisions

made in made in the past often by previous political leaders

d) outstanding BA mirrors the past partisan agenda and is irrelevant to the current

presidentrsquos budget

6 Current service estimates and baseline budget projections are useful because

a) they help us predict future budgets

b) they help us identify how future outlays differ from existing budget authority

c) they help us make projections about what it will cost in the future to do what is

required now under existing law

d) they help us predict what the deficit will be in the future

29

7 The Constitution gives the power to tax borrow and pay debts to

a) the president

b) Congress

c) the Senate

d) the people

8 What does it mean for a presidentrsquos budget proposal to be considered ―dead on arrival

(DOA)

a) Congress rejects the presidentrsquos financial blueprint and constructs its own

b) the presidentrsquos budget projection results in a deficit because proposed spending

exceeds expected revenue

c) the presidentrsquos budget proposal is considered to be inaccurate because it relies on

excessively rosy revenue projections and excessively conservative spending estimates

d) there is little chance that the presidentrsquos budget proposal will be passed without

being modified in some way by Congress

9 Federal budget documents are designed primarily to

a) describe how the presidentrsquos political program is financed

b) separate programs that are on and off the budget in order to hide their true costs

over time

c) account for and monitor financial resources as federal law dictates

d) track the impact of tax reductions on the deficit

10 The presidentrsquos central budget staff is

a) the Office of Management and Budget in the Executive Office of the President

b) the Government Accountability Office a nonpartisan congressional office

c) directly under the authority of the Federal Reserve

d) part of the Internal Revenue Service in the Treasury Department

11 A problem with using budget analyses from think tanks and advocacy and lobbying

groups is that

a) these groups regularly falsify information in order to advance their political

agenda

b) these groups provide too much general information but no in-depth analyses

c) their interpretations may contradict each other and so offer little guidance

d) the figures are selected and displayed to make a political argument

12 The federal budget

a) affects federal executive agencies only because of separation of powers

b) is not political but is nonpartisan

c) affects state and local governments because of mandatory outlays fall are shaped

by separation of powers

d) affects almost every institution and person in the country

30

13 The Budget of the United States Government Fiscal Year 20XX is

a) the presidentrsquos yearly budget recommendation to Congress

b) the title of an appropriation act once it is signed into law by the president

c) the budget resolution adopted by Congress

d) the result of outlays from the Treasury in a single fiscal year

14 Congressional action on the budget is important because

a) Congress has the power to raise revenue

b) Congress has the power to increase or decrease the presidentrsquos spending and

revenue proposals

c) congressional budget action is necessary for the budget to become law

d) all of the above

15 Much of the federal budget process has developed as a struggle

a) among the states for their fair share of federal aid

b) between Republicans and Democrats over earmarks and mandatory spending

c) between the president and Congress over who dominates budgeting

d) between reformers trying to reduce lobbyistsrsquo influence and advocates trying to

finance their programs

31

Appendix A Key Terms as Defined by the Congressional Budget Office

appropriation act A law or legislation under the jurisdiction of the House and Senate

Committees on Appropriations that provides authority for federal programs or agencies to incur

obligations and make payments from the Treasury Each year the Congress considers regular

appropriation acts which fund the operations of the federal government for the upcoming fiscal

year The Congress may also consider supplemental deficiency or continuing appropriation acts

(joint resolutions that provide budget authority for a fiscal year until the regular appropriation for

that year is enacted)

authorization act A law or legislation under the jurisdiction of a committee other than the

House and Senate Committees on Appropriations that establishes or continues the operation of a

federal program or agency either indefinitely or for a specified period An authorization act may

suggest a level of budget authority needed to fund the program or agency which is then provided

in a future appropriation act However for some programs the authorization itself may provide

the budget authority

budget authority Authority provided by law to incur financial obligations that will result in

immediate or future outlays of federal government funds Budget authority may be provided in

an appropriation act or authorization act and may take the form of borrowing authority contract

authority entitlement authority or authority to obligate and expend offsetting collections or

receipts Offsetting collections and receipts are classified as negative budget authority

budget resolution A concurrent resolution adopted by both Houses of Congress that sets forth

a Congressional budget plan for the budget year and at least four out-years The plan consists of

targets for spending and revenues subsequent appropriation acts and authorization acts that

affect revenues or direct spending are expected to comply with those targets The targets are

enforced in each House of Congress through procedural mechanisms set forth in law and in the

rules of each House

debt In the case of the federal government the total value of outstanding bills notes bonds and

other debt instruments issued by the Treasury and other federal agencies That debt is referred to

as federal debt or gross debt It has two components debt held by the public (federal debt held

by nonfederal investors including the Federal Reserve System) and debt held by government

accounts (federal debt held by federal government trust funds deposit insurance funds and other

federal accounts) Debt subject to limit is federal debt that is subject to a statutory limit on the

total amount issued The limit applies to gross federal debt except for a small portion of the debt

issued by the Treasury and all of the small amount of debt issued by other federal agencies

(primarily the Tennessee Valley Authority and the Postal Service)

deficit The amount by which the federal governmentrsquos total outlays exceed its total revenues in

a given period typically a fiscal year The primary deficit is that total deficit excluding net

interest

direct spending Synonymous with mandatory spending direct spending is the budget authority

provided by laws other than appropriation acts and the outlays that result from that budget

32

authority (As used in The Budget and Economic Outlook direct spending refers only to the

outlays that result from budget authority provided in laws other than appropriation acts

discretionary spending The budget authority that is provided and controlled by appropriation

acts and the outlays that result from that budget authority

entitlement A legal obligation of the federal government to make payments to a person group

of people business unit of government or similar entity that meets the eligibility criteria set in

law and for which the budget authority is not provided in advance in an appropriation act

Spending for entitlement programs is controlled through those programsrsquo eligibility criteria and

benefit or payment rules The best-known entitlements are the governmentrsquos major benefit

programs such as Social Security and Medicare

fiscal year A yearly accounting period The federal governmentrsquos fiscal year begins October 1

and ends September 30 Fiscal years are designated by the calendar years in which they endmdashfor

example fiscal year 2009 will begin on October 1 2008 and end on September 30 2009 The

budget year is the fiscal year for which the budget is being considered in relation to a session of

Congress it is the fiscal year that starts on October 1 of the calendar year in which that session of

Congress began

mandatory spending See direct spending

obligation A legally binding commitment by the federal government that will result in outlays

immediately or in the future

off-budget Spending or revenues sometimes excluded from the budget totals by law The

revenues and outlays of the two Social Security trust funds (the Old-Age and Survivors

Insurance Trust Fund and the Disability Insurance Trust Fund) and the transactions of the Postal

Service are off-budget

outlays Spending to pay a federal obligation Outlays may pay for obligations incurred in a

prior fiscal year or in the current year hence they flow partly from unexpended balances of

prior-year budget authority and partly from budget authority provided for the current year

For most categories of spending outlays are recorded on a cash accounting basis However

outlays for interest on debt held by the public are recorded on an accrual accounting basis and

outlays for direct loans and loan guarantees (since credit reform) reflect estimated subsidy costs

instead of cash transactions

reconciliation A special Congressional procedure often used to implement the revenue and

spending targets established in the budget resolution The budget resolution may contain

reconciliation instructions which direct Congressional committees to make changes in laws

under their jurisdictions that affect revenues or direct spending to achieve a specified budgetary

result The legislation to implement those instructions is usually combined into a comprehensive

reconciliation bill which is considered under special rules Reconciliation affects revenues

direct spending and offsetting receipts but usually not discretionary spending

33

revenues Funds collected from the public that arise from the governmentrsquos exercise of its

sovereign or governmental powers Federal revenues come from a variety of sources including

individual and corporate income taxes excise taxes customs duties estate and gift taxes fees

and fines payroll taxes for social insurance programs and miscellaneous receipts (such as

earnings of the Federal Reserve System donations and bequests) Federal revenues are also

known as federal governmental receipts

surplus The amount by which the federal governmentrsquos total revenues exceed its total outlays in

a given period typically a fiscal year

unified budget The entire federal budget which consolidates all on-budget and off-budget

outlays and revenues

unobligated balances The portion of budget authority that has not yet been obligated When

budget authority is provided for one fiscal year any unobligated balances at the end of that year

expire and are no longer available for obligation When budget authority is provided for a

specific number of years any unobligated balances are carried forward and are available for

obligation during the years specified When budget authority is provided for an unspecified

number of years the unobligated balances are carried forward indefinitely until one of the

following occurs the balances are expended or rescinded the purpose for which they were

provided is accomplished or no disbursements have been made for two consecutive years

Source Excerpted from Congressional Budget Office undated Glossary of Budgetary and

Economic Terms httpwwwcbogovbudgetglossaryshtml accessed February 23 2009

34

Appendix B Basic Federal Budgeting Terminology

―In its most elemental form the federal budget is a comprehensive accounting of the

governmentrsquos spending revenues and borrowing This fact sheet provides a brief overview of

the basic terminology and concepts used in the federal budget process

ldquoSpending The key terms of federal spending are budget authority obligations outlays and

spendout rate Congress and the President enact budget authority in law Budget authority allows

federal agencies to incur obligations such as entering into contracts employing personnel and

submitting purchase orders Outlays represent the actual payment of these obligations usually in

the form of electronic transfers or checks issued by the Treasury Department The rate at which

budget authority becomes outlays in a fiscal year is called the spendout rate or the outlay rate

The spendout rate varies among agenciesrsquo accounts depending on the timing of activity in each

account

―Budget authority may be made available for obligation for a one-year multi-year or no-year

period One-year or annual budget authority is available for obligation only during a specific

fiscal year and any unobligated authority expires at the end of that fiscal year multi-year

authority is available for a period longer than one fiscal year and no-year budget authority is

available for an indefinite period

―Typically new budget authority is provided in the form of permanent appropriations or annual

appropriations Permanent appropriations provide new budget authority each year without any

annual legislative action Usually this type of new budget authority is provided in legislation

authorizing the program such as in the case of most entitlement programs (eg Social Security

benefits) Annual appropriations on the other hand generally provide new budget authority for

the particular fiscal year for which they were enacted In some cases new budget authority in

35

annual appropriations acts is made available for more than one year or for a future fiscal year

Annual appropriations are provided in the 13 regular appropriations bills enacted by Congress

and the President each year Annual appropriations also may be provided in continuing

resolutions and supplemental appropriations acts

―New budget authority also may be made available to agencies in the form of borrowing

authority contract authority and the authority to spend offsetting collections Borrowing

authority and contract authority allow agencies to borrow funds and enter into CRS-2 contracts

without advance appropriations However the 1974 Congressional Budget Act (PL 93-344) has

curbed this practice since its enactment Spending authority from offsetting collections such as

fees for certain market-oriented activities may be provided to allow agencies to obligate and

spend these funds Offsetting collections are deducted from gross budget authority and outlays at

the account or higher level

ldquoRevenues Revenues also known as receipts are the funds collected from the public primarily

as a result of the federal governmentrsquos exercise of its sovereign powers Most of the federal

governmentrsquos revenues consist of receipts from individual income taxes social insurance taxes

(or payroll taxes such as Social Security and Medicare taxes) and corporate income taxes

Preferential provisions such as tax exemptions deductions and credits which reduce

government receipts are called tax expenditures Excise taxes duties gifts and miscellaneous

receipts are other sources of federal revenues

―Offsetting collections usually are deducted from the budget authority and outlays made

available to agencies and are not classified as revenue

ldquoBudget Deficit or Surplus The difference between government revenues and outlays in a

fiscal year equals the budget deficit or surplus A budget deficit results when outlays exceed

36

revenues a budget surplus results when revenues exceed outlays However what is counted as

government revenues and outlays depends on the presentation of the federal budget For the past

several decades the focus of debates about the federal budget deficit or surplus has been on the

consolidated budget The consolidated budget also referred to as the unified budget consists of

the two main types of funds federal funds and trust funds Federal funds comprise general

government receipts not earmarked for any specific government activity Trust funds are

designated by law to a particular purpose For example the Hospital Insurance trust funds are

earmarked to Medicare Part A benefits The consolidated budget represents a comprehensive

picture of the federal governmentrsquos financial activities

ldquoDebt The gross federal debt almost all of which is subject to statutory limitation consists of

the debt held by the public plus the debt held by government accounts The debt held by the

public is the total net amount borrowed from the public by the federal government to cover its

budget deficits over the years Usually analysts use the debt held by the public as the measure of

the impact of the federal governmentrsquos borrowing on the economy It is this portion of federal

debt that not only reflects the amount of the nationrsquos wealth invested in federal government

securities rather than in private investment but also determines the level of real resources the

government must acquire to make interest and principal payments The debt held by government

accounts is the total net amount of federal debt issued to specialized federal accounts primarily

trust funds It represents internal transactions of the federal governmentrdquo

Source Heniff Bill Jr 2004 Basic Federal Budgeting Terminology Congressional Research

Service CRS Report for Congress 98-410 GOV November 22

httpwwwruleshousegovarchives98-410pdf accessed March 6 2009

37

Appendix C Self-Test Answers

1 d 6 c 11 d

2 b 7 b 12 d

3 c 8 a 13 a

4 b 9 c 14 d

5 c 10 a 15 c

2

responsersquos usefulness The third is to focus on the highlights important to the political story that

is told in four parts the executive proposal congressional action execution and audit Here we

focus exclusively on the documents in the executive proposal and congressional action (see

Appendix A in the text)

It turns out that learning how to read the federal budget takes some expertise time grit and

selectivity But this treasure hunt is worth the effort The prize is money and power that affects

almost every institution and person in the country (see box 1) A careful reading is a powerful

political tool Given the number of zeroes in $36 trillion (FY 2010 proposed budget) the payoff

is enormous It is best to (a) use the documents as roadmaps to political power (b) not let the

details overwhelm you and (c) keep your eyes on the main issues

Box 1 The Payoff Affects Institutions and People

How does federal budgeting affect educational and nonprofit institutions See examples at

httpwwwwhitehousegovombcircularsindex-educationhtml

How does federal budgeting affect state and local governments See examples at

httpwwwwhitehousegovombcircularsindexhtml

Part I Executive Proposal

Starting at the beginning of the process with the presidentrsquos proposal Part I provides ten keys to

reading the federal budget The document formally entitled Budget of the United States

Government Fiscal Year 20XX (substitute the current fiscal year here and explore

httpwwwwhitehousegovomb) is the presidentrsquos yearly budget recommendation to Congress

required by the Constitution on or before the first Monday in February Developed by OMB the

3








resolution




employment and more




4





function fiscal

year Budget

Authority

legal

status

agencies

5














6

7







8







unified vs

consolidated

budget 9

amount

1 fiscal

year 2

outlays

3

types of

spending

4

out-year

estimates

5

focus on


9









includes

estimated

costs

of military

operations

and disaster

response

current services

10














(see figure 2)










11



political system




















12























13









14
























15
























16
















17

18



September 12 2008






are important





19







June 2004


20





21














committees

partisan political

arena outlays

out years

22




















23

legal status





BA vs

Outlays

3 6

receipts and

spending

on cash

basis 3

fiscal year 2

amount

1



5

legal status

24








historical

data

focus on

change


25

References









September 12 2008














26

















Web Sites




httpwwwfmstreasgov



27










28



























because














29


a) the president

b) Congress

c) the Senate

d) the people


(DOA)











over time









groups is that


agenda










30









revenue proposals


d) all of the above







31

























rules of each House












interest



32
















Congress began






















33





















34












account












35
























36























37


1 d 6 c 11 d

2 b 7 b 12 d

3 c 8 a 13 a

4 b 9 c 14 d

5 c 10 a 15 c

3








resolution




employment and more




4





function fiscal

year Budget

Authority

legal

status

agencies

5














6

7







8







unified vs

consolidated

budget 9

amount

1 fiscal

year 2

outlays

3

types of

spending

4

out-year

estimates

5

focus on


9









includes

estimated

costs

of military

operations

and disaster

response

current services

10














(see figure 2)










11



political system




















12























13









14
























15
























16
















17

18



September 12 2008






are important





19







June 2004


20





21














committees

partisan political

arena outlays

out years

22




















23

legal status





BA vs

Outlays

3 6

receipts and

spending

on cash

basis 3

fiscal year 2

amount

1



5

legal status

24








historical

data

focus on

change


25

References









September 12 2008














26

















Web Sites




httpwwwfmstreasgov



27










28



























because














29


a) the president

b) Congress

c) the Senate

d) the people


(DOA)











over time









groups is that


agenda










30









revenue proposals


d) all of the above







31

























rules of each House












interest



32
















Congress began






















33





















34












account












35
























36























37


1 d 6 c 11 d

2 b 7 b 12 d

3 c 8 a 13 a

4 b 9 c 14 d

5 c 10 a 15 c

4





function fiscal

year Budget

Authority

legal

status

agencies

5














6

7







8







unified vs

consolidated

budget 9

amount

1 fiscal

year 2

outlays

3

types of

spending

4

out-year

estimates

5

focus on


9









includes

estimated

costs

of military

operations

and disaster

response

current services

10














(see figure 2)










11



political system




















12























13









14
























15
























16
















17

18



September 12 2008






are important





19







June 2004


20





21














committees

partisan political

arena outlays

out years

22




















23

legal status





BA vs

Outlays

3 6

receipts and

spending

on cash

basis 3

fiscal year 2

amount

1



5

legal status

24








historical

data

focus on

change


25

References









September 12 2008














26

















Web Sites




httpwwwfmstreasgov



27










28



























because














29


a) the president

b) Congress

c) the Senate

d) the people


(DOA)











over time









groups is that


agenda










30









revenue proposals


d) all of the above







31

























rules of each House












interest



32
















Congress began






















33





















34












account












35
























36























37


1 d 6 c 11 d

2 b 7 b 12 d

3 c 8 a 13 a

4 b 9 c 14 d

5 c 10 a 15 c

5














6

7







8







unified vs

consolidated

budget 9

amount

1 fiscal

year 2

outlays

3

types of

spending

4

out-year

estimates

5

focus on


9









includes

estimated

costs

of military

operations

and disaster

response

current services

10














(see figure 2)










11



political system




















12























13









14
























15
























16
















17

18



September 12 2008






are important





19







June 2004


20





21














committees

partisan political

arena outlays

out years

22




















23

legal status





BA vs

Outlays

3 6

receipts and

spending

on cash

basis 3

fiscal year 2

amount

1



5

legal status

24








historical

data

focus on

change


25

References









September 12 2008














26

















Web Sites




httpwwwfmstreasgov



27










28



























because














29


a) the president

b) Congress

c) the Senate

d) the people


(DOA)











over time









groups is that


agenda










30









revenue proposals


d) all of the above







31

























rules of each House












interest



32
















Congress began






















33





















34












account












35
























36























37


1 d 6 c 11 d

2 b 7 b 12 d

3 c 8 a 13 a

4 b 9 c 14 d

5 c 10 a 15 c

6

7







8







unified vs

consolidated

budget 9

amount

1 fiscal

year 2

outlays

3

types of

spending

4

out-year

estimates

5

focus on


9









includes

estimated

costs

of military

operations

and disaster

response

current services

10














(see figure 2)










11



political system




















12























13









14
























15
























16
















17

18



September 12 2008






are important





19







June 2004


20





21














committees

partisan political

arena outlays

out years

22




















23

legal status





BA vs

Outlays

3 6

receipts and

spending

on cash

basis 3

fiscal year 2

amount

1



5

legal status

24








historical

data

focus on

change


25

References









September 12 2008














26

















Web Sites




httpwwwfmstreasgov



27










28



























because














29


a) the president

b) Congress

c) the Senate

d) the people


(DOA)











over time









groups is that


agenda










30









revenue proposals


d) all of the above







31

























rules of each House












interest



32
















Congress began






















33





















34












account












35
























36























37


1 d 6 c 11 d

2 b 7 b 12 d

3 c 8 a 13 a

4 b 9 c 14 d

5 c 10 a 15 c

7







8







unified vs

consolidated

budget 9

amount

1 fiscal

year 2

outlays

3

types of

spending

4

out-year

estimates

5

focus on


9









includes

estimated

costs

of military

operations

and disaster

response

current services

10














(see figure 2)










11



political system




















12























13









14
























15
























16
















17

18



September 12 2008






are important





19







June 2004


20





21














committees

partisan political

arena outlays

out years

22




















23

legal status





BA vs

Outlays

3 6

receipts and

spending

on cash

basis 3

fiscal year 2

amount

1



5

legal status

24








historical

data

focus on

change


25

References









September 12 2008














26

















Web Sites




httpwwwfmstreasgov



27










28



























because














29


a) the president

b) Congress

c) the Senate

d) the people


(DOA)











over time









groups is that


agenda










30









revenue proposals


d) all of the above







31

























rules of each House












interest



32
















Congress began






















33





















34












account












35
























36























37


1 d 6 c 11 d

2 b 7 b 12 d

3 c 8 a 13 a

4 b 9 c 14 d

5 c 10 a 15 c

8







unified vs

consolidated

budget 9

amount

1 fiscal

year 2

outlays

3

types of

spending

4

out-year

estimates

5

focus on


9









includes

estimated

costs

of military

operations

and disaster

response

current services

10














(see figure 2)










11



political system




















12























13









14
























15
























16
















17

18



September 12 2008






are important





19







June 2004


20





21














committees

partisan political

arena outlays

out years

22




















23

legal status





BA vs

Outlays

3 6

receipts and

spending

on cash

basis 3

fiscal year 2

amount

1



5

legal status

24








historical

data

focus on

change


25

References









September 12 2008














26

















Web Sites




httpwwwfmstreasgov



27










28



























because














29


a) the president

b) Congress

c) the Senate

d) the people


(DOA)











over time









groups is that


agenda










30









revenue proposals


d) all of the above







31

























rules of each House












interest



32
















Congress began






















33





















34












account












35
























36























37


1 d 6 c 11 d

2 b 7 b 12 d

3 c 8 a 13 a

4 b 9 c 14 d

5 c 10 a 15 c

9









includes

estimated

costs

of military

operations

and disaster

response

current services

10














(see figure 2)










11



political system




















12























13









14
























15
























16
















17

18



September 12 2008






are important





19







June 2004


20





21














committees

partisan political

arena outlays

out years

22




















23

legal status





BA vs

Outlays

3 6

receipts and

spending

on cash

basis 3

fiscal year 2

amount

1



5

legal status

24








historical

data

focus on

change


25

References









September 12 2008














26

















Web Sites




httpwwwfmstreasgov



27










28



























because














29


a) the president

b) Congress

c) the Senate

d) the people


(DOA)











over time









groups is that


agenda










30









revenue proposals


d) all of the above







31

























rules of each House












interest



32
















Congress began






















33





















34












account












35
























36























37


1 d 6 c 11 d

2 b 7 b 12 d

3 c 8 a 13 a

4 b 9 c 14 d

5 c 10 a 15 c

10














(see figure 2)










11



political system




















12























13









14
























15
























16
















17

18



September 12 2008






are important





19







June 2004


20





21














committees

partisan political

arena outlays

out years

22




















23

legal status





BA vs

Outlays

3 6

receipts and

spending

on cash

basis 3

fiscal year 2

amount

1



5

legal status

24








historical

data

focus on

change


25

References









September 12 2008














26

















Web Sites




httpwwwfmstreasgov



27










28



























because














29


a) the president

b) Congress

c) the Senate

d) the people


(DOA)











over time









groups is that


agenda










30









revenue proposals


d) all of the above







31

























rules of each House












interest



32
















Congress began






















33





















34












account












35
























36























37


1 d 6 c 11 d

2 b 7 b 12 d

3 c 8 a 13 a

4 b 9 c 14 d

5 c 10 a 15 c

11



political system




















12























13









14
























15
























16
















17

18



September 12 2008






are important





19







June 2004


20





21














committees

partisan political

arena outlays

out years

22




















23

legal status





BA vs

Outlays

3 6

receipts and

spending

on cash

basis 3

fiscal year 2

amount

1



5

legal status

24








historical

data

focus on

change


25

References









September 12 2008














26

















Web Sites




httpwwwfmstreasgov



27










28



























because














29


a) the president

b) Congress

c) the Senate

d) the people


(DOA)











over time









groups is that


agenda










30









revenue proposals


d) all of the above







31

























rules of each House












interest



32
















Congress began






















33





















34












account












35
























36























37


1 d 6 c 11 d

2 b 7 b 12 d

3 c 8 a 13 a

4 b 9 c 14 d

5 c 10 a 15 c

12























13









14
























15
























16
















17

18



September 12 2008






are important





19







June 2004


20





21














committees

partisan political

arena outlays

out years

22




















23

legal status





BA vs

Outlays

3 6

receipts and

spending

on cash

basis 3

fiscal year 2

amount

1



5

legal status

24








historical

data

focus on

change


25

References









September 12 2008














26

















Web Sites




httpwwwfmstreasgov



27










28



























because














29


a) the president

b) Congress

c) the Senate

d) the people


(DOA)











over time









groups is that


agenda










30









revenue proposals


d) all of the above







31

























rules of each House












interest



32
















Congress began






















33





















34












account












35
























36























37


1 d 6 c 11 d

2 b 7 b 12 d

3 c 8 a 13 a

4 b 9 c 14 d

5 c 10 a 15 c

13









14
























15
























16
















17

18



September 12 2008






are important





19







June 2004


20





21














committees

partisan political

arena outlays

out years

22




















23

legal status





BA vs

Outlays

3 6

receipts and

spending

on cash

basis 3

fiscal year 2

amount

1



5

legal status

24








historical

data

focus on

change


25

References









September 12 2008














26

















Web Sites




httpwwwfmstreasgov



27










28



























because














29


a) the president

b) Congress

c) the Senate

d) the people


(DOA)











over time









groups is that


agenda










30









revenue proposals


d) all of the above







31

























rules of each House












interest



32
















Congress began






















33





















34












account












35
























36























37


1 d 6 c 11 d

2 b 7 b 12 d

3 c 8 a 13 a

4 b 9 c 14 d

5 c 10 a 15 c

14
























15
























16
















17

18



September 12 2008






are important





19







June 2004


20





21














committees

partisan political

arena outlays

out years

22




















23

legal status





BA vs

Outlays

3 6

receipts and

spending

on cash

basis 3

fiscal year 2

amount

1



5

legal status

24








historical

data

focus on

change


25

References









September 12 2008














26

















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