Balancing the Budget

Overview

In this lesson students will analyze the U.S. federal budget, discuss the federal deficit, and learn how deficits and surpluses affect our economy. Students will experience some of the trials and tribulations that members of Congress experience when trying to balance the budget.

Grade Levels

9 – 12

Objectives

Students will:

• Identify the different components that make up the federal budget.
• Explain the relationship between government revenues and spending and between budget deficits and the national debt.
• Predict how changes in federal spending and taxation would affect budget deficits and surpluses and the national debt.

Estimated Time

2 days

Materials Needed

• E-Learning Module: Federal Budget Allocation
• Internet connection
• Overhead projection device
• Budget Worksheet

Procedure

Day 1

1. Use a projection device to project the Federal Budget Allocation Activity. Complete the activity as a class. Make sure students have a clear understanding of what the federal budget is comprised of and how the budget is created.
2. Discuss the following terms: deficit, surplus, balanced budget. Students should understand that a budget deficit occurs when government spending exceeds revenues. A budget surplus occurs when budget revenues exceed revenues. A balanced budget is a budget for which current expenditures are equal to current revenue.
3. Divide the class into four groups. Distribute a copy of the Budget Worksheet to each group. Have each group visit the United States Office of Management and Budget Web site or the Center on Budget and Policy Priorities Web site and answer the questions on the worksheet.

Day 2

1. Discuss the answers to the questions on the Budget Worksheet.
2. Divide the class into small groups. Have each group visit the EconEdLink Web site at http://www.econedlink.org/lessons/index.cfm?lesson=EM306 and complete the National Budget Simulation. Make sure students complete the National Budget Simulation worksheet located at the bottom of the page.
3. Invite students to share their answers to the National Budget Simulation Worksheet. Then discuss the difficulty Congress encounters when trying to balance the budget.

Extension and Adaptation Activites

Extension Activity

Have students debate whether or not a balanced budget amendment should be added to the Constitution.

Using Technology

Have students research the Balanced Budget Amendment of 1997 and create a multi-media presentation that gives a brief overview of this Amendment.

Assessment

Basic Concepts and Processes

Ask your students the following questions and assess their knowledge of key concepts taught in this lesson.

1. List at least five components that make up the federal budget.
2. Explain the relationship between government revenues and spending and between budget deficits and the national debt.
3. Describe some of the actions Congress can take in order to balance the federal budget.

Scoring Guide for Balancing the Budget Activity

Elements	Possible Score	Assigned Score	Notes
The student participates in class discussions.	15
The student describes some things members of Congress must consider when balancing the budget.	25
The student proposes to reduce spending and/or increase taxes to equal $170 billion, based on the interests of his or her state.	30
The student represents the interests of his or her assigned state during the simulation.	30

Lesson Plan Feedback

If you have suggestions for improving this lesson plan, or if you have ideas for others using the module, please let us know. We value your input. Thank you!

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