Case Analysis of U.S. Budget
By: Adrienne Chavis
Professor: Frank Pidgeon
PA 581- Government Budgeting and Finance
Introduction
This paper discusses the financial complexities of the U.S. Government and its Department of Education. The purpose of this paper is to analyze the funding level of the U.S. Government and its Department of Education. It also reviews several trends that are identified at 2009 actual, 2010 and 2011 amounts for outlays and receipts, and relationship to the Gross Domestic Product (GDP). It further considers key summary of the budget message of the President of the United States as it is related to issues and economic situations during the financial year 2009 (Office of Management and Budget, 2010). This paper
…show more content…
Reviving Job Creation and Laying a New Foundation for Economic Growth: This is another important document that provides information on issues related to investment for job creation and placing a new structure for economic growth. Small Business Access (SBA) is a significant challenge in the economic crisis. The economy restricts SBA to expand and operate the business (Whitehouse, 2009). There are several areas selected in which job creation investments will be made in the future such as education, clean energy, infrastructure, etc. This document also considers information related to Refocus Troubled Asset Relief Program (TARP), which is helpful for small business. The budget also eliminates capital gain tax on small businesses according to the American Recovery and Reinvestment Act. Enhancement in regional economic competitiveness is also essential for economic creativity and national growth. Another key is that the Department of Agriculture (USDA) supports rural innovation initiative that is important to foster rural revitalization.
Restoring Responsibility: This document determines change in policies and programs for creativity and hard work of Americans that is necessary for economic growth. The administration has restored fiscal discipline, because the President faced unfavorable economic conditions. Budget eliminates funding for inefficient
According to Baddour (2017), This article is about how the President proposed a budget cut that would cut funding for certain community block grants. The budget cut will affect the senior citizens of America. The proposed budget cuts will affect the Meals on Wheels program in Houston, Texas that serves our senior citizens. The Meals on Wheels program is a cheaper reliable way to feed the seniors. The President proposed budget cut also cuts funding for other federal programs such as, the Women Infants and Children nutrition program (WIC), the Supplemental Environmental Protection Agency (SEPA), National Institute of Health (NIH) and after school programs. There is a proposed $6 billion cut to the NIH and a $3.7 billion cut to after school programs.
The federal government has attempted to slice into the Department of Education’s budget since it was established in 1979. The department was originally founded in 1867, but soon became demoted since the government was afraid it would have too much power. “In the 1860s, a budget of $15,000 and four employees handled education fact-finding. By 1965, the Office of Education had more than 2,100 employees and a budget of $1.5 billion. As of mid-2010, the Department has nearly 4,300 employees and a budget of about $60 billion” (An overview of the U.S. Department of Education, 2010). To provide some comparable insight, in 2013 the Department of Defense’s budget of $663.8 billion (U.S. Department of Defense, 2009).
The distribution of federal government spending is interesting and questionable, “In fiscal year 2015, the federal budget is $3.8 trillion. These trillions of dollars make up about 21 percent of the U.S. economy (as measured by Gross Domestic Product, or GDP). It's also about $12,000 for every woman, man and child in the United States.” (@natpriorities). The question remains, where does all the money go?
The main concern with the support provided by the United States Department of Education is represented by the limitation of the funds. In such a setting, the school districts across the country are presented with the need to compete against each other in order to receive this support. The competition is unfolded at the level of the grant requests written and sent in by the various districts, which are then assessed by the assigned committee.
Federal government spending is increasing, deficits are lingering, and the amount of accumulated debt is reaching dangerously high levels. Growing spending and debt are undermining economic growth and may push the nation into a severe financial crisis in coming years (Edwards, 2016). How can we keep our balance and spending under control? Federal spending is becoming more and more of a problem, and Bill Clinton did not balance our budget. He did provide solutions to balance our budget but allegations state he was only a bystander in the timely process.
Since education is one of the most important weapons in today’s world, spending a large amount of money in education is not just boost the economy but also a great investment of the government to make America keep on growing. The future of our country is depending on how well our educational system prepares students to deal with the world. It’s also true that there are a lot of people move to the U.S. for a better education and also a lot of families had decided to send their kids over here for the purpose of education. With more internal students come in, the U.S. also can make money from it as
Measuring the extent to which a program is achieving its goals and objectives and determining whether the entity is using its resources in the most effective and economical manner
The total budget of the United States is $4.1 trillion. This accrues for two-thirds of the total spending budget. $1.14 trillion (33%) is spent on institutions such as Social Security, Labor, and Unemployment. $1.03 trillion (27%) is spent on Medicare and Health. $586.6 billion (16%) is spent on military. Veterans benefits, food and agriculture, transportation, housing, education make up the remaining 44% of the total budget. The discretionary budget is the portion of the the federal budget that congress must determine annually; it is targeted* at $1.23 trillion. An overwhelmingly $625.2 billion (54%) goes towards military and defense, $74.1 (6%) billion goes towards education. $72,2 billion (6%) goes towards veteran benefits, $66.2 billion (6%) towards government, $60.6 billion (5%) towards Medicare and health, $41.6 billion (4%) towards energy and environment, $41.6 billion (4%) towards international affairs, $31.4 billion (3%) towards Social Security, $31 billion (3%) towards science, $27.4 billion (2%) towards transportation, and $13.3 billion (1%) towards food and agriculture. As a comparison, in 1900 the total budget of the United States was $1,608 million. $331.6 million (21%) went towards defense, $228 million (14%) went towards education and the remaining 55% was spent under the discretion of the president. From these numbers, it is clear to see that spending on military increased greatly, while education lost percentage points. However, it may not be as cut and
Based on Table 2.2 in the President's Budget, we see the sources of revenues for the federal government primarily are the sources of revenue from taxes included individual income taxes, corporation income taxes, excise taxes, the source of revenues from social insurance and retirement receipts and other revenues sources. Before World War II, the main income source of the US government is the source of excise taxes, accounting for 33.57% total revenue. Then, the key source of revenue is the source from personal income tax, approximately 45% total
What should an employee do when he or she discovers that there is an error in a projection? Why do you suggest that action? Would your answer change if the error was not likely to affect other aspects of the operation such as employment? Why or why not?
The Federal budget process is like our budget but federal, the federal budget can be compared to a personal budget. A personal budget allows and individual to limit and spend a certain amount of money or on household items, goods and services. The government's budget works in the same way as our’s does, the government has to spend their money in three different areas, these area are mandatory spending, discretionary spending, and interest on debt. If the government exceeds their budget amount they will have to cut some of their spending cost to some areas. An example of exceeding cost would be when we exceed are budget on groceries or items for are home, if these does happen will have to reduce the amount we buy or buy a cheaper version of it to stay within our limited budget.
When it comes to education, it is generally agreed that money matters. What is not as apparent are questions like: In what ways does money matter? How does money impact the achievement and opportunities of the students? Are there predictable affects of increasing or decreasing spending in a school system? These questions are important for a number of reasons. Funding for public education is a limited resource and knowing how to utilize those limited funds efficiently and effectively is a goal school administrators seek to achieve. There is also the issue of equality. Since a significant portion of a school 's budget is allocated through the local tax base, school districts may have more or less funding available to them depending on which community they are located in. If school spending is tied to student performance or opportunities, and different school systems have different levels of funds available to them, then it can be said that educational opportunities for students will be different depending on which school district they belong to. In an attempt to seek the connections between money and education, I will look at three research papers which investigates this matter.
Even with this law, the government was still spending way too much money on healthcare, therefore it cut spending. Currently, “Medicare and Medicaid make up roughly 23% percent of federal spending and the programs’ costs have been growing faster than the overall economy” (“Debt” 13). In 2011, the government set a plan in motion. It decided to create a committee to make a plan that would take effect within 10 years to save the government $1.2 trillion (“Debt“ 13). The committee decided on a plan that put a cap on government spending in 2011 (Burda 21). The cap reduces the amount of funding hospitals and other care centers receive from the federal government, forcing them to pay more out of pocket for Medicare and Medicaid. The cap ended up putting
Accompanying the steady decline in the quality of education has been a significant increase in the cost of public schools. Spending per student in public schools has increased over 400% in real terms since WWII. Much of the spending increase has gone to finance a bloated, costly administrative bureaucracy, not
To begin with is Budget Cuts. Clearly when an economy ends up plainly feeble, focal government cuts the financial plan for states thus the state government cuts the optional spending first. This routinely joins money for preparing and supplemental educational tasks. Exactly when a state cuts guideline spending designs, it realizes bring down teacher pay rates, lessened contracts, and upkeep. Financing for various enlightening tasks that favorable position understudies and the gathering are in like manner uncommonly diminished which prompts an insufficiently showed understudy