The budget of the U.S. government, the federal budget, directs how some $3.1 trillion will be spent and raised through taxes and fees. In 2008, this is about one-fifth of the entire $14 trillion U.S. gross domestic product (GDP). How this money is spent – on what? – and how the taxes and fees are raised – who pays? – say a lot about our country. The federal budget is a concrete manifestation of our nation's priorities and values, and clearly reveals what the nation thinks is important. As people of faith living in a democracy we are obligated to make our views known, to speak out and express our values so that they, too, can be reflected in the federal budget.

Step 1: The President's Budget Proposal

The process of constructing the federal budget begins when the President's Budget Proposal is presented to Congress and the nation in early February. While the president's proposal is not binding on Congress, it is nonetheless given serious attention since the budget that is approved by both houses of Congress must also be signed by the president before it becomes law.

Step 2: Congress' Budget Resolution

Congress begins its work on the budget by establishing the levels of total spending and revenues (taxes and fees). These figures are presented in the Budget Resolution which also sets spending levels for each of 19 "functional categories" like National Defense, Health, Interest on the federal debt, and Income Security (which includes many social programs like public housing, food stamps, Supplemental Security Income, Temporary Assistance to Needy Families (TANF), and energy assistance).

The Budget Resolution is very important because once the spending levels for functional categories are established, a program within a category can receive additional funding only if another program in the same category receives less. For example, consider military spending which is in the functional category called National Defense. If spending on a particular weapon were reduced, the money could not be used for public housing (in the functional category Income Security) or health care for the poor (in Health). The money could only be spent on other programs within the National Defense category. Therefore, public influence on the Budget Resolution and the funding levels set for each functional category is very important.

The Budget Resolution is supposed to be completed by April 15 but this step of the budget process frequently extends beyond this date. March and April are important times to be in touch with Congress about the Budget Resolution.

Step 3: The Appropriations and Authorization Bills

Once the Budget Resolution is adopted, Congressional committees prepare 13 Appropriations Bills which specify how the money that was allocated to each functional category (in the Budget Resolution) will be distributed across the many programs within the category. This is another time of heightened importance when concerned citizens can influence Congress to ensure needed programs get the necessary financial support. These bills typically are being considered from mid- to late-summer and into the fall.

Appropriations bills control discretionary spending. This is one of two types of spending in the federal budget and accounts for about 38% of the total. Mandatory spending is 53% and interest on the federal debt is 9%. Discretionary spending pays for the military and much of what we typically consider to be the central work of government: environmental protections, education, the federal courts and prisons, agriculture programs, energy programs, poverty reduction, public health and safety, roads, bridges, and air traffic control. This spending typically requires an annual law (the Appropriations Bill) to authorize ongoing expenditures. Roughly half of discretionary spending pays for the functional category "National Defense." (There is additional military spending spread through other parts of the budget.) The other half pays for all the other government functions that are funded by the Appropriations bills. Each bill is written by a subcommittee, sent to the full committee for approval, then voted on by the whole House and sent to the Senate.

Mandatory spending pays for entitlement programs which are established by law and continue from year to year. An entitlement program is one where funding is available for all people who are eligible for the program; Congress does not have to appropriate the spending each year. Examples of entitlement programs include Social Security, veterans' pensions, food stamps, Medicare, Medicaid, and the federal employees' retirement program. The only way to change the cost of the program is to re-write the law to modify the eligibility criteria or the structure of the program (for example, cut benefits). These changes are made in Authorization bills that may be written at any time during the year. Slightly more than half (53%) of government spending is mandatory, governed by authorization bills. The largest categories of mandatory spending are Social Security (21% of the federal budget) and Medicare (14%). Interest on the federal debt is about 9% of the federal budget. Spending (outlays) for fiscal year 2007 is shown in the table and the pie chart. 

Appropriation bills originate in the House of Representatives and when the House has voted on them, the Senate examines the House's bills and then writes it own. If there are differences between the House and Senate versions of a bill, a conference committee with members from each house revises the bill and returns it for approval, first to the House of Representatives and then the Senate. All through the process, Congress communicates with the White House to test the administration's viewpoint about specifics of the legislation. Once Congress approves the final version of the bill, it is sent to the president for his signature.

By law, Congress must agree on a final version of the budget (that is, the 13 Appropriations bills) by September 30, the last day of the fiscal year. If Congress fails to do so, either the federal government shuts down or Congress takes emergency measures so operations continue. Often Congress goes well into December before its members reach an accord on the budget.

Contacting Congress about the Federal Budget

Communicating with your representatives in Congress about the federal budget is most important at the following times:

· late winter regarding the President's Budget Proposal,

· March and April regarding Congress' Budget Resolution, and

· mid- to late-summer and early fall about Appropriations bills.

Being engaged with Congress at key decision-making times will enhance our ability to shape a federal budget that more closely mirrors our values and priorities. As people of faith, we seek to show love to our neighbors in concrete ways. We desire to live in a world where God's abundance is shared by all. The federal budget is one way to move toward this vision.