April, 2011:

Whew! If you have been paying even a little attention to what's going on in the news, your head might be spinning. Billions, trillions, deficit, debt, unsustainable, budget cuts, mean-spirited, government shutdown, non-essential government workers... This week I want to step back, clarify a few things, and see if I can make sense of it all.

Just the Facts, Ma'am

I'll start with just the facts:

1. The federal government fiscal year runs from October 1 to September 30. Fiscal year 2011 (F/Y 2011) began on October 1, 2010.

2. The federal government cannot spend any money without the authorization of the legislative and executive branch.

3. Early in the calendar year, the president prepares and sends to Congress a budget for the fiscal year that will begin the following October. The budget outlines, within broad categories, how and how much money he wants the government to spend, and how much revenue he expects the federal government to collect in the coming fiscal year.

4. The Congress (first the House and then the Senate) uses that budget as the basis for its budget. After the House and Senate agree on a budget, the president signs off on it. That becomes the official budget.

5. During the fiscal year, the Congress and the president negotiate and pass bills that appropriate money to be spent that are consistent with the budget upon which they have agreed. That is where the spending actually occurs.

6. The House is required, by law, to pass a budget bill for the fiscal year before the year begins (October 1). This is a self-imposed law that has been in place for decades.

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