The Budget

The Office of Management and Budget

The federal budget is a financial plan for the coming fiscal year. The budget describes the revenues the United States government expects to receive from various sources and also what it expects to spend on entitlements, interest on the debt, defense, and other programs. The budget functions as a blueprint for operating the government and for implementing federal policy. It expresses the intent of the federal government in financial terms.
The budget originates in the White House and is the responsibility of the president. The actual planning and writing of the budget, however, is the job of the Office of Management and Budget (OMB), which is part of the executive branch. The OMB is the second largest and most influential office of the executive branch after the White House itself. The director of the OMB is appointed by the president and confirmed by the Senate. The OMB also monitors federal spending once the budget is in place.
During the summer months of each year, all government departments and agencies submit their budget proposals to the OMB. These departments depend on presidential support for their funding. The president has certain objectives for the overall budget as well as programs he would like funded. Sometime these objectives are driven by campaign promises to save the taxpayers money or create programs the public supported during the election.
Under the president's direction, the OMB draws up a presidential budget that includes cuts to some departments and increases to others. The OMB possesses the economic, financial, and accounting expertise to advise the president on technical aspects of the budget-making process. When the president is satisfied with the budget, he sends it to Congress for review and action.
Lobbyists can also have an impact on the disposition of money in the budget. Lobbyists represent many diverse groups who have a vested interest in the activities of the government and how it allocates resources. Lobbyists may represent industries, companies, unions, groups of voters who feel strongly on certain issues, or even foreign countries.
State and local governments can also have an interest in how federal money is dispersed. For example, departments of agriculture at the state level may want legislators in Washington to know how crucial federal funding is for food production in their state. Intergovernmental lobbies may include mayors, governors, superintendents of schools, state directors of public health, county highway commissioners, and other groups that have become dependent on federal dollars. Lobbyists can be valuable sources of information about the concerns of their interest group.