Budgeting and Financial Management: Terms and Concepts, Quizzes of Environmental Science

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TERM 1 Budget Cycle DEFINITION 1 Annual: More responsive to the economy and citizen's needs Spend a greater deal of time focusing on the budget Biennial Allow legislatures to focus on other things beside the budget TERM 2 OMB, CBO, GAO DEFINITION 2 OMB Office of Management and Budgets, complies exec. budget President's office to take care of breakdown of expenditures and come up with a proposal, make executive budget CBO, created in response to Nixon's impoundments Congressional Budget Office Congress' version of OMB Deals with governmental budgets GAO, Governmental Accounting Office makes sure books are in order, audits at the Federal level TERM 3 Surplus, Deficit, Debt DEFINITION 3 Surplus Current year revenue exceeds current year expenditures Deficit Current expenditures exceeds current revenues Debt Deficit carries over from year to year plus interest(non- capital) Large-scale debt issued to fund large scale projects TERM 4 Non/Discretionary Spending DEFINITION 4 Discretionary Spending Non-entitlement spending Have the option NOT to spend Congress has the power to change the levels spending Non-Discretionary Spending Spending on entitlements HAVEto make the payments, mandatory, HAVE to set money aside Medicare Social Security TERM 5 Permanent vs. Annual Appropriations DEFINITION 5 Entitlement appropriations are made permanentlyDiscretionary spending TERM 6 Recession/Reversion, Impoundment, Deferral DEFINITION 6 Recession/Reversion Executive cancellation of budget authority Previous money allocated to a department is cancelled Used to free up money in the budget for other things Impoundment, Nixon did this Executive makes a decision that negates or delays an obligation or expenditure Put off something I owe or Decide not to give money Deferral Temporarily delay expenditures, defer payments for a time TERM 7 Entitlements DEFINITION 7 An entitlement is a guarantee of access to benefits based on established rights or by legislation. Social Security Medicare/Medicade Spending is by formula or eligibility Appropriations are permanent TERM 8 Supplemental Appropriations DEFINITION 8 The Supplemental Appropriations Act, 2009 (, , enacted June 24, 2009) is a United States federal law appropriating public funds for spending in the Iraq War and Afghanistan War during the 2009 fiscal year. Done outside the budget process Additional appropriations outside of the major budget If revenue is higher than expected a supplemental appropriations bill may be passed to legalize more spending TERM 9 Outlay DEFINITION 9 In production, research, retail, and accounting, a cost is the value of money that has been used up to produce something, and hence is not available for use anymore. TERM 10 Line-Item Veto DEFINITION 10 The authority of a chief executive to delete part of a bill passed by the legislature that involves taxing or spending. Unconstitutional at the federal level but some states still use itExecutive can veto certain parts of a bill TERM 21 PAYGO DEFINITION 21 PAYGO is the practice in the United States of financing expenditures with funds that are currently available rather than borrowed.Pay As You GOIf you are to increase funds for one department funds from a different department(s) must be cutStarted in early 1990s and lasted until 2000There was a surplus under this system TERM 22 Tax Expenditure DEFINITION 22 A tax expenditure program is government spending through the tax code. Lost revenue that we could have had TERM 23 Baseline, Scoring DEFINITION 23 What did we spend last year and what did we get last year? Way to calculate/forecast the estimates TERM 24 President/Governors, Roles and Responsibilities of Budgets DEFINITION 24 President: Submit Executive Budget OMB helps, does audits, enforcement Congress doesn't have to follow budget, only a plan Congress Make laws: bill is introduced, goes to committee/subcommittee, hearings, back to committee, hearing/change it, goes to the floor, Senate has right to amend, House has the Rules Committee for debate, TERM 25 Ways and Means Committee DEFINITION 25 The Committee of Ways and Means is the chief tax-writing committee of the United States House of Representatives. If someone is a member of the Ways and Means Committee they cannot be part of any other committee TERM 26 Executive Departments and Agencies DEFINITION 26 When a new president comes in to power most heads of agencies are terminated and new ones are hired.Day-to-day workers get to keep their jobs TERM 27 Basic Structure of a State or Municipal Budget DEFINITION 27 1. General Fund Money made from citizens 2. Capital Budget3. Debt FundLook UP THESE PARTS!!! TERM 28 Budget Enforcement Act DEFINITION 28 The Budget Enforcement Act of 1990 (, title XIII; ; codified as amended at scattered sections of 2 U.S.C. TERM 29 Different Kinds of Funds and Inter-fund Transactions DEFINITION 29 Trusts Expendable Non-Expendable TERM 30 Phases of the Budget Cycle, Including How a Bill Becomes a Law DEFINITION 30 1. Executive Preparation-Prez. figures out how much $ is needed for the year. Agencies talk with OMB. Everything bundled into, "Executive Budget"2. Legislative Consideration-Congress has the CBO, same as OMB but considers governmental budgets3. Execution-Send money to agencies4. Audit and Evaluation-Money used effectively? Evaluations influence money for next year TERM 31 Line Item/Departmental/ Functional Budget DEFINITION 31 Specifically write out everything Everything that has money spent on it has a line More information but it's really long TERM 32 Program Budget DEFINITION 32 Programme budgeting is the budgeting system that, contrary to conventional budgeting, describes and gives the detailed costs of every activity or programme that is to be carried out in a budget. Easier to read and understand, more accessible to the public but there is not as much information available TERM 33 Performance Budgeting DEFINITION 33 PART, 2000Measures performanceResults are weighed the mostNumerical rating system TERM 34 Zero-Based Budgeting DEFINITION 34 Zero-based budgeting is an approach to planning and decision-making which reverses the working process of traditional budgeting. Start from scratch each year, makes no assumptions about previous performancesVery time consuming TERM 35 Functional Budget DEFINITION 35 Budget based on one specific budget