Primer n the Federal Budget Process Commedvcuedu在联邦预算过程commedvcuedu底漆.pptVIP

Health Policy and the Federal Budget Process Tim Westmoreland Visiting Professor of Law Research Professor of Public Policy Georgetown University February 2006 Introduction to the Federal Budget It’s big. Really big. It drives federal policy in all areas--especially health. Very few people understand even the basics. By the time you finish this introduction, you will be one of the top 1% of Americans in terms of budget proficiency. To Begin: Four Necessary Terms Revenues--money coming into the federal government (also referred to as “receipts’) Spending--money going out of the federal government (“outlays”) Deficit--annual revenues minus annual spending Debt--sum total of all annual deficits (and surpluses) Total Revenues = ~$1.9 Trillion (FY 2004) Personal Income Tax = ~$900 Billion Social Insurance Taxes = ~$750 Billion Corporate Taxes = ~$200 Billion All other sources = ~$200 Billion Federal Spending in the President’s FY 2006 Budget Funding Proposed for HHS Health Programs in Bush Administration’s FY 2006 Budget Total Deficit = Depends on How You Count It Unified Budget (Count all revenues, including money coming in for trust funds for future use): $400 billion On-budget Totals (Technical legal definition, not counting Social Security or the Postal Service): $570 billion Federal Funds Budget (Count only revenues that can be spent this year): $600 billion Total Debt = $8.2 Trillion and Counting… Q: What is the debt? A: Money loaned to the federal government (such as Savings Bonds or Treasury Bills) that has to be paid back with interest. Q: Where is the debt? A: ~$4.7T held by the public (investors, banks, pension funds, etc.) Including ~$2.1T held by foreign investors and governments Plus ~$3.5T held by the federal government to use in the future (e.g., the Social Security Trust Fund, the Medicare Trust Fund, etc.) Four Necessary Budget Concepts Three kinds of spending Baseline Limits Scorekeeping Three Kinds o