Government Budgeting 101 (or is that 911?!?)

Federal budget years run from October 1 to September 30. The debate in Washington over this $60 billion is about the budget year we are currently in the middle of, ending September 30, 2011. While that budget has a spending number nearing $3 Trillion, there is "only" $440 Billion of “discretionary spending” remaining. The big numbers that make up the difference to $3T are Military Spending (harder to touch in the middle of two wars), Social Security, Medicare, and Medicaid (the so-called entitlement untouchable programs) and Interest on our burgeoning debt. Remember these categories because the only way we will ever get the budget back in line is to SIGNIFICANTLY raise taxes, OR cut into these military and entitlement programs. That is an argument for the 2012 budget (Oct '11 to Sept ’12.) President Obama just proposed his version of that budget last month and it doesn’t even get off the ground toward meeting the needed spending cuts. This will be argued for the next few months. But in the meantime, you will hear about the $60 Billion bill driven by the House Republicans; impacting the 2011 budget. Clear? Call me if you would like a better explanation.