CITIZEN ADVOCACY CENTER

THE BUDGET GAME  

LESSON PLAN AND ACTIVITY

 

Grade Level:  9, 10, 11, 12
 

Subjects: 

·        Social Studies:  U.S., State, and Local Government

·        Language Arts:  Reading, Writing

 

Duration: 1 class session

 

Description: This lesson provides an overview of how state and local government bodies maintain a budget. 

 

Goals:

ISBE Standards:

1.      Social Science

·        14A:  Understand and explain basic principles of the United States government.

·        14B:  Understand the structures and functions of the political systems of Illinois, the United States and other nations.

·        14D:  Understand the roles and influences of individuals and interest groups in the political systems of Illinois, the United States and other nations.

 

2. Language Arts

·        1B:  Apply reading strategies to improve understanding and fluency

·        1C:  Comprehend a broad range of reading materials

·        3A: Use correct grammar, spelling, punctuation, capitalization and structure

·        3B:  Compose well-organized and coherent writing for specific purposes and audiences.

·        3C:  Communicate ideas in writing to accomplish a variety of purposes

·        4A:  Listen effectively in formal and informal situation

·        4B:  Speak effectively using language appropriate to the situation and audience

·        5A:  Locate, organize, and use information from various sources to answer questions, solve problems and communicate ideas.

3.      Mathematics

·        7C:  Select and use appropriate technology, instruments and formulas to solve problems, interpret results, and communicate findings.

·        8B:  Interpret and describe numerical relationships using tables, graphs, and symbols.

·        8C:  Solve problems using systems of numbers and their properties.

·        8D:  Use algebraic concepts and procedures to represent and solve problems.

Objectives:

1.      Understand the many components to government budgeting.

2.      Appreciate the role of compromise in lawmaking.

3.      Understand the impact that citizens can have on the budgeting process, and

4.      Identify at what points in the process citizens have the greatest impact.

 

Materials:

1.      Paper

2.      Pens

3.      “The Budget Game” Handout

 

 

Instruction:

The Illinois State Constitution requires that each unit of local government keep an accounting of what happens to the public funds that it is entrusted to oversee.  Each unit of government must create an annual budget of how it plans to spend public money at the beginning of the fiscal year, and must account for how it spent the public’s money at the end of the year. 

 

The budgeting process can be difficult at every level of government.  Our public officials are charged with taking a set amount of money, and stretching it between many worthy causes and projects.  Often, the public and different governmental departments are not pleased with the allocation of money in the budgeting process. 

 

I.                    What do you see as the essential functions of government?

II.                 Is government supposed to be involved in helping people?

III.               Is government supposed to have a hands-off approach?

 

Activity:

Attached please find the Budget Game handout.  Distribute this handout to your class.

1.                  Your state has a predicted $8 billion gap between tax revenue (income) and expenditures for next year.  For example, expenditures are projected to be $100 billion, but you only have $92 billion available in tax revenue.

2.                  Your state already has a deficit of $2 billion (you already have this debt carrying over from last year, and it must be accounted for in your calculations.  In this example, you would really only have $90 billion available because you already subtracted $2 billion.).

3.                  Review current spending, and see where you can cut $10 billion from your budget.  The decisions are difficult, but it is your job as an elected public official.

$$  THE BUDGET GAME  $$

 

 

 

 

CHALLENGE:  DRAFT A COMPREHENSIVE BUDGET THAT GETS YOUR STATE OUT OF DEBT FOR THE NEXT YEAR.

 

FACTS:

 

1.     A $8 billion gap between expenditures and tax revenue is predicted for next year.

2.     Your state already has a deficit of $2 billion (debt that carries over from the previous years)

 

INSTRUCTIONS:

 

1.     In small groups, evaluate the current expenditures in the state programs and agencies and decide what you may want to cut.  Totally making up the debts may be unrealistic, but try to get close to a balanced budget.  Specify what areas you would cut under the general categories.  Be creative in thinking about what other specific areas in a category may be cut or run more efficiently.

2.     State employee pension payments may not be cut.

3.     Evaluate the current taxes and decide which, if any, kinds of taxes you may want to increase.

4.     Answer the questions below after completing the budget.

 

 

QUESTIONS:

 

1.     How did you decide where to make cuts and where to raise taxes?

 

 

 

2.     Were the decisions hard to make? Why or why not?

 

 

 

3.     What objections do you think another lawmaker might have to your plan?

 

 

 

4.     How do you think the citizens of the state would react to your plan? 

 

 

 

5. Do you think citizens should be involved in budget decision-making?  What should they do to get their input heard?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

STATE BUDGET

 

 

PROGRAM OR AGENCY                              Current Spending             Cuts

Education (K-12)

 

$15B

 

Public Universities

 

$2.5B

 

Early Childhood Grants (at risk youth)

 

$50Million (.05B)

 

Public Safety (state police, crime prevention programs)

 

$8B

 

Homeland Security (terrorism, emergency management)

 

$3B

 

Healthcare (healthcare for low income residents, prescription discounts, free cancer screenings, state mental hospitals)

$10B

 

Human Services (home services for the disabled, low income childcare)

 

$2.5B

 

Corrections (prisons)

 

$4B

 

Job Development/Training Programs

 

$1B

 

Facilities Management (state buildings)

 

$2B

 

Environmental Protection (incentives for businesses not to pollute, state funds for the EPA)

 

$1B

 

State Employee Salaries (includes teachers, public officials, anyone who works for Illinois)

$3.5B

 

Transportation (state vehicles, road building /repair, snow removal)

$2B

 

Employee pension fund (can’t cut)

$1.5B

 

Technology Improvements

 

$2.5B

 

TOTALS

 

TAX INCREASES

 

 

Current Revenue

 

 

 

Added Revenue

 

Income Tax

$25B

 

 

Sales Tax

$15.3B

 

 

Utility Tax

$2B

 

 

Lottery and Riverboats

$1.5B

 

 

Motor Fuel Tax

$1B

 

 

Liquor Tax

$.25B

 

 

Cigarette Tax

$.20B

 

 

Inheritance Tax

$1.3B

 

 

License Fees

$4B

 

TOTALS

 

 

 

 

 

 

·        For a visual representation of your budget reform, create pie graphs

to illustrate the changes in spending and revenues between the old budget and your revised version. 

 

 

©Copyright 2005 Citizen Advocacy Center.  All rights reserved.  No part of this lesson plan may be reproduced in any form or by any means without the prior, written permission of the Citizen Advocacy Center. The Citizen Advocacy Center is a 501(c)(3) non-pofit, non-partisan community based legal organization. For information about the Center, or to make a tax deductible contribution, visit www.citizenadvocacycenter.org, call 630.833.4080. The Center is located at 238 N. York Rd., Elmhurst IL 60126