1. One of the large questions surrounding federal budgeting is how should citizens and public officials make decisions about where to allocate money. The text discusses how coming to the answers involves process and analysis but also weighing normative values (noting how often the word “should” comes in to budgetary discussions). What do you think about these normative values in particular? The process and analysis component have an objective aspect but this final one a much more subjective one. As government spends tax dollars is there a necessary discussion that needs to take place involving normative values or not?

2. What is fiscal policy? What effect does it have on the economy? What effect does the economy have on the budget? Why is it important to estimate likely levels of economic growth? Can you provide a case from your personal experience in which you have seen the effect of fiscal policy on the economy?

3. How is top-down budgeting different from bottom-up budgeting? Which of these methods is more widely accepted? What have been some of the attempts to reform bottom-up budgeting?

4.  At the federal level, how has the power of authorizers and appropriators been reduced over the years? What is the Defense Department’s black budget?

5. V.O. Key’s fundamental question: “On what basis shall it be decided to allocate x dollars to activity A instead of activity B” is at the core of budgeting in government. How do values and institutions influence the answers to this question? How does this question get politicized? How can the answers to such a question be determined? The Founders often made appeals to “the public good” to explain why they made the decisions they made. How do you see public officials explaining their budgetary decisions? Or do you see any type of explanation at all?

6. The year 1921 was a turning point in government budgetary procedure that gave increased power to the presidency as it divided traditional budget functions, functions that were mostly under congressional control formerly, into a system of divided executive and legislative supremacy. The president essentially was able to frame the debate because it was now part of the president’s job to produce a budget (gaining leverage over the executive agencies and Congress). What do you think about this? Do you think this added power to the presidency is merited? Does it fit with representative democratic ideals? If not, do you think there would be any way to reverse the trend of increased executive power?

7. Explain the differences between how state and local governments budget and how the federal government budgets. Which system do you think is better and why? Do you think it would be possible for the federal government to adopt the budgeting strategies of the state and local governments or not? Why or why not?

8. Within congressional budgeting, there were traditionally two main processes: authorizations and appropriations. Describe the differences between the two processes and explain why one exerts more power than the other. Which do you think is more important and why? Do you think the Congressional Budget Act of 1974, which changed the process from how business was formerly done, changed the process for the better or not? Evaluate how Congress makes budget decisions in general. Do you think Congress has landed on the most effective method, or does another, better method come to mind?