The Federal Budget Explained
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1 The Federal Budget Explained Updates and Actions April 7, 2009
2 Presenters: Joan Huffer, Director of the Federal Budget Initiative, Center on Budget and Policy Priorities: The Federal Budget Explained Shelli Craver, Deputy Campaign Manager, Rebuild and Renew America NOW; Marvin Silver, Deputy Director of Legislation and Policy, US Action Actions You Can Take to Move the Obama Agenda Forward Deborah Weinstein, Executive Director, Coalition on Human Needs: Moderator
3 You will be able to ask questions! Just type your question in the box on your screen we will read as many as we can in the webinar.
4 Next Steps in the Budget Process Center on Budget and Policy Priorities
5 Budget Overview House, Senate budget resolutions support Health care reform Climate change legislation Investments in education and other areas Improving the long term fiscal condition
6 Budget Resolution: Sets total discretionary funding (appropriations) Sets overall revenue levels Paves the way for tax legislation Sets overall mandatory spending levels (entitlements) Paves the way for mandatory spending legislation Often includes reserve funds to provide flexibility for consideration of tax or entitlement legislation
7 Budget Resolution can also: Include reconciliation instructions to committees Create or change budget related rules and establish points of order to enforce them
8 Budget Resolution: Does not determine funding levels for specific discretionary programs (programs that get an annual appropriation) Does not make actual changes in entitlement or tax law
9 Deficits Source: CBO, House and Senate Budget Committees, and CBPP calculations based on CBO data Note: current policy extended deficits based on CBO March 2009 baseline projections adjusted for extension of expiring tax cuts, AMT relief, prohibition against implementation of Medicare SGR cut in physician reimbursements, and winding down cost of the wars in Iraq and Afghanistan.
10 Tax Cuts cuts House plan: $613.2 billion in tax relief over 5 years Senate plan: $825 billion in tax relief over 5 years
11 Health Reform House and Senate budget resolutions include deficit neutral reserve funds
12 Fiscal Year 2010 Discretionary Budget Authority CBO Baseline President's Budget* House Plan Senate Plan Nondefense $499.9 $539.7 $532.6 $524.8 % Increase over baseline n/a 8.0% 6.5% 5.0% Domestic $461.2 $485.9 $484.1 $475.0 % Increase over baseline n/a 5.4% 5.0% 3.0% Domestic without Commerce and Housing Credit $455.0 $472.7 $470.9 $461.7 % Increase over baseline n/a 3.9% 3.5% 1.5% * Adjusted for consistency with congressional treatment of highway obligation limits and Pell Grant funding. Source: CBO, House and Senate Budget Committees, and CBPP calculations based on CBO and Administration data
13 Source: CBPP projections based on Congressional Budget Office data and CBPP assumptions about the impact of the recession on the federal budget. By 2031, Big 3 Programs Plus Defense Would Consume All Federal Revenue
14 Reconciliation Reconciliation Budget resolution instructs certain committees to achieve a specified amount of savings by cutting mandatory spending and/or raising taxes in their jurisdictions Supposed to be for deficit reduction Allows committees to increase spending or cut taxes if fully offset The process is not automatic
15 Only a tiny fraction of estates from deaths in 2009 will owe any estate tax The Tax Policy Center estimates that for 2009 estates: Source: Urban Institute Brookings Tax Policy 15 Center.
16 Only a tiny number of small business and farm estates nationwide owe any estate tax Note: A small farm or business estate is defined as an estate with farm and business assets that represent at least half of the gross estate and total no more than $5 million. Source: Urban Institute Brookings Tax Policy Center 16
17 Rebuild and Renew America NOW Campaign to Pass President Obama s Transformative Budget Shelli Craver Deputy Campaign Manager, RRAN Marvin Silver Deputy Director of Legislation and Policy USAction rebuildandrenew.org 17
18 Broadest, largest, non partisan coalition of organizations 114 national organizations 600+ state and local organizations In all 50 states Grassroots, Grasstops, Earned Media, Public Education and Mobilization rebuildandrenew.org 18
19 ACCOMPLISHMENTS U.S. Senate Passed Budget U.S. House Passed Budget ,461 Phone calls to Congress 7,490 Personal Letters to Congress Nearly 200 Events planned across the country for the next two weeks Ads Capitol Hill Rally with Senate Leaders rebuildandrenew.org 19
20 Budget Reconciliation Health care reform is vital to economic recovery Must pass this year Prevent filibuster Allow for up or down vote rebuildandrenew.org 20
21 Campaign Timeline April FLOOR VOTES CONGRESSIONAL RECESS IN DISTRICT CONFERENCE REPORT FINAL VOTE? rebuildandrenew.org 21
22 MESSAGE Pass President Obama's budget for jobs and long term growth in the economy investing in health care, clean energy, and education; raising revenue to support America s priorities by rebalancing our tax code so the wealthy corporations pay their fair share cutting the deficit in half by 2013 rebuildandrenew.org 22
23 Actions to Pass President Obama s Budget Promote grassroots and grasstops support and thank Congressional Members who voted yes direct contact with House and Senate Members through calls, letters, s, delegation visits, etc. media and other events to show popular support for health care, education, energy in the budget expose the opposition forces of "no, we can't" with "yes, we can" rapid response to attacks letters to editor, , press rebuildandrenew.org 23
24 GET INVOLVED REBUILD AND RENEW AMERICA NOW GO TO: CONGRESSIONAL RECESS ACTIVITIES Help Generate Calls to Members of Congress Attend Town Hall Meetings and Local Events Write a Letter to the Editor Tell Your Friends Call Your Member: rebuildandrenew.org 24
25 With Your Help We Will RENEW AND REBUILD AMERICA NOW! rebuildandrenew.org 25
26 Your Mother always told you to say thanks! And it s so easy! Go to and click on Take Action You ll see sample text for a thank you note to your Rep. and Senators who voted for their Budget Resolution.
27 For More Information: Debbie Weinstein,
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