Budgeting Exam 1

Front 1

Early Forms of Budgeting

Back 1

Magna Carta: 12th Article states that no taxes could be imposed unless approved by parliament.

Front 2

Executive Dominance

Back 2

During this time the executive branch had to sign for the legislation to be approved. The 1688 Bill of Rights passed and said that no man could be compelled to pay a gift or tax without parliament approval or representation.

Front 3

Budget delegation by Congress

Back 3

In 1865 Congress began the appropriations committees. In 1885 congress changed the decentralized budget committee into 8 committees. In 1913 Congress created the Federal Reserve to create Money. In 1917 the power to pay debts was passed on to treasury.

Front 4

The Reorganization period

Back 4

The executive reorganization Act of 1939 gave the president a cabinet, and moved the Bureau of the Budget to the executive branch. The legislative reorganization act of 1946 reorganized congress and allowed for increased oversight of the executive branch. it also allowed for congress to choose their committees. It created districts and power turfs.

Front 5

The BICA era

Back 5

The Budget Impoundment and Control Act of 1974 was an attempt to control the executive budget. It allowed states to approve their budgets. It created a congressional budget committee who provided guidelines for spending. Stipulated the President had to submit his budget by Feb 1st. The committees would submit their budgets in April and Sept 15th the appropriations committees must turn in their recommendations and both house and senate must reconcile their bills by Sept 30th. it created the Congressional Budget Office.

Front 6

Backdoor Spending

Back 6

Anything that occurs outside the budget but must be funded like retirement or social security.

Front 7

The GRH Era

Back 7

Gramm-Rudman-Hollings Balanced Budget Act created a mandatory schedule to reduce the deficit if it was one penny over the $10 Billion cushion.

Front 8

The Reagan-Bush Years

Back 8

Supported cuts in spending. Pro-States rights and states that the Federal Government gets control over Medicaid and states can control the rest of welfare.

Front 9

The Budget and Accounting act of 1921

Back 9

Created a national budget and audit. It must be submitted by the president. It created the Bureau of the Budget and every budget must be passed through the executive branch and created the Government Accountability Office.

Front 10

Executive Reorganization Act of 1939

Back 10

This is congresses attempt at getting power back, but It created the Executive Office of the President which could create agencies, create a cabinet and moved the Bureau of the Budget to the Executive branch directly.

Front 11

Legislative Reorganization Act of 1946

Back 11

Made lobbyists register and also gave congress a staff of experts to help draft legislation.

Front 12

Appropriations Committees

Back 12

The House has the power to create committees to determine the way money is spent.

Front 13

BOB/OMB

Back 13

Bureau of Budget (1921) moved to Executive Branch in 1939.

Front 14

Creation of Congressional Budget Committees

Back 14

Congress could not create a committee to create and adjust their budget. The chairs on these committees must be elected because the chairmen hold the power.

Front 15

Reconciliation instructions

Back 15

Created a concurrent budget resolution. It stated that those committees must report changes in law affecting the budget. The debate is limited to 20 hours and amendments are limited. Only one reconciliation bill may be passed any given year.

Front 16

Functional Allocations

Back 16

Spending money to get a task accomplished rather than allocating specific amounts for item by item.

Front 17

Baseline Budgets

Back 17

Using current spending for future planning. (Projecting next years spending based off of previous years trends of income and needs.)

Front 18

Contract Spending

Back 18

Awarding funding to private industries aimed at resolving a public problem.

Front 19

Entitlement Spending

Back 19

Spending money based off of someones circumstances. (Needy, elderly, incompetent... etc.

Front 20

Impoundment

Back 20

When an executive agency refuses to spend money.

Front 21

Defer/Delay Spending

Back 21

Using courts or holding up allocated funds to prevent its spending.

Front 22

Recission

Back 22

The money is not spent despite its allocation from the congressional budget.

Front 23

Executive Order 12291

Back 23

Made it so that all agency spending has to have Reagans stamp or the Executives Stamp of approval.

Front 24

Legislative Veto/INS v. Chadha

Back 24

The attempt of congress setting guidelines for the INS and other agencies. This is where congress said that when a budget cut was ordered, the agency must decide and produce a plan detailing where the loss would come from. Congress could then approve or veto the budget. It was ruled unconstitutional because Congress was not given the power to veto.

Front 25

Concurrent budget resolutions

Back 25

When a committee must resolve a congressional budget issue a committee is appointed to resolve the conflict in the law. The resolution is limited in debate to 20 hours and only one concurrent budget resolution may be passed per year.

Front 26

Sequestration

Back 26

Mandatory cuts to reduce a deficit. (One penny over $10 Billion triggers a sequestration.)

Front 27

1990 Budget Enforcement Act/1990 Budget Summit

Back 27

The government had a deficit because of a failed GRH bill. President Bush said that everything was on the table for budget cuts. October 1st at Andrews AFB there were cuts across the board and new taxes which were suggested. Bush didn't like this so he shut down the government on the 6th and 7th of October. Eventually the bill passed as part of the Omnibus Reconciliation act of 1990. The act target a 0 deficit by 1996.

Front 28

Discretionary Ceilings

Back 28

The maximum amount of money that can be borrowed.

Front 29

PAYGO

Back 29

Paying with money that is available rather than depending on future incomes.

Front 30

Mini Sequestration

Back 30

A portion of the government gets shut down for going over its target budget.

Front 31

2001 EGTRA

Back 31

Economic Growth Tax Relief Act created new tax brackets, double children tax credits, lowered real estate taxes.

Front 32

Expressly Delegated Powers

Back 32

Are laid out specifically by the constitution.

Front 33

Implied Powers

Back 33

Powers that are suggested (Powers that aren't mentioned)

Front 34

9th Amendment

Back 34

Lists enumerated rights (rights that are listed one by one for the Federal Government.)

Front 35

10th Amendment

Back 35

Provides reserved power for the states. 10th amendment creates the Federal government.

Front 36

The Supremacy Clause

Back 36

The Federal government is the Supreme law of the land.

Front 37

Uneasy Federalism

Back 37

The early stages of Federalism where the states were worried about big government/executive branch because they had just separated from a King.

Front 38

Supreme Federalism

Back 38

This is McCulloch V. Maryland 1819 where Maryland tried to tax a federal bank. This created the Supremacy Clause.

Front 39

Dual Federalism

Back 39

Tanney wants states powers to not overlap. This was the point of the Federal government was to resolve disputes between the states. Very pro states rights.

Front 40

Cooperative Federlism

Back 40

The great depression encouraged the Federal government to take a bigger role in ruling. This is when the Federal government became the parent government to the states.

Front 41

Creative Federalism

Back 41

This is when Kennedy and Johnson had to become creative to solve fiscal problems as a result of the federal government prospering while the states were floundering.

Front 42

New Federalism

Back 42

Nixon changed the way that grants became awarded. (He noticed that a majority of largely democrats were receiving Federal funds and grands. Ex. Chicago, Denver etc.)

Front 43

New Federalism or Devolution

Back 43

Devolution is when the Federal government becomes decentralized (by letting private sector handle services) Deregulation occurs (Reagan Period when telecommunication, food and airline industries are attacked.)

Front 44

Clinton's Federalism

Back 44

Clinton wanted to give states more discretion. He stated that all unfunded mandates are outlawed and he reduced the size of the government back to the same size of 1969. He deregulated the department of energy and promoted concurrent Federalism.

Front 45

Bush's Federalism

Back 45

He backed the states right to decide whats correct for them, but he also expanded the role of the Federal government.

Front 46

Obama's Federalism

Back 46

Believes that both the state and Federal governments need to be active. He uses states as labs for policy. he encourages state competitions.

Front 47

Block Grants

Back 47

Grants that are a large sum of money allocated for the sake of a specific reason. Money for education, health...etc.

Front 48

Categorical Grants

Back 48

Used for specific purposes. Usually awarded for studying a specific portion of something.

Front 49

General Revenue Sharing (GRS)

Back 49

It is what is done to share funds between all areas.

Front 50

Reagans 3-D's

Back 50

Devolution, Decentralize and Deregulation

Front 51

Land Grants

Back 51

Providing grants for the furthering of a public needs. Examples of this are the Morrill Acts of 1862 and 1890 to create an agriculture colleges.

Front 52

Privitization

Back 52

Act of letting the private sector ruling itself and allowing it to provide its services instead of making them public obligations.

Front 53

Executive Order 12612

Back 53

Reagans attempts to restore states rights. (Clinton overruled the EO)

Front 54

Progressive Federalism

Back 54

Encouraging states to compete toward prosperity and applying their success to the Federal government.

Front 55

Subdivided Federalism

Back 55

Pitting the states against the local governments.

Front 56

Administrative Law as Federalism

Back 56

Agencies working together to resolve a common cause. Hurricane Katrina failures are a result of failed administrative Federalism.

Front 57

Merits and Demerits of Federalism

Back 57

Example of this is John Murtha airport in which a large airport was created in rural america, but no other coordination was done to sustain the cost of the airport or to generate more flights to the airport.

Front 58

Subsidiarity Principle

Back 58

The lower the level of government the closer to the people you get. This encourages local levels of government to govern and receive more funds.

Front 59

Devolution

Back 59

The passing of duties from a higher government to a lower government.

Front 60

Economies of Scale

Back 60

One size fits all. (Ad made for GOP that can be used by all GOP candidates.)

Front 61

Fiscal Disparity

Back 61

When one level of government obtains more funding than the other.

Front 62

Regional tax base sharing

Back 62

Sharing taxes (Twin City Minnesota Example) One town needs to share with another to sustain a good school district. One town may be important for business and the neighboring for residential life. To provide schools for both important societies they must share.

Front 63

Tax Coordination systems

Back 63

Piggyback/Tax Supplements

Front 64

Piggyback tax

Back 64

Lower level unit applies a higher rate than the higher level requirement.

Front 65

Tax Supplements

Back 65

Applying lower level rate used by the higher level to resolve disparity or shortages.

Front 66

Fungibility

Back 66

The ability for local and state government to replace Federal grant money for certain programs. Replacing NCLB is an example in Oklahoma.

Front 67

Flypaper Effect

Back 67

Does the money received get spent the way that it was intended to be spent? If not and the state returns the Federal Funds then usually those funds are never received again.

Front 68

State/Local Dependence on Federal Government

Back 68

The local governments no longer have the ability to generate their own funds because of a Federal mandate thus making the state and locals depend on the Federal government.

Front 69

Federal budget Starts on

Back 69

October 1st

Front 70

Federal Budget Ends on

Back 70

September 30th

Front 71

Oklahoma Budget cycle Starts

Back 71

July 1st

Front 72

Oklahoma Budget cycle ends

Back 72

June 30th