The head of the executive branch, who in the federal government is the president and in state governments is the governor, proposes both sorts of budgets.
- The House and Senate then draft appropriations bills, which are used to fund the federal government. The Appropriations Committees "mark-up" these measures, make any necessary amendments, and then adopt them.
- Passing a municipal budget and passing the federal budget differ in only a few minor ways. One is that local budgets have smaller appropriations than federal budgets. A local budget also becomes a law after being approved by the legislature, often the city council.
- Mandatory expenditure typically, but not always, is ongoing; it happens every year absent a change in the underlying law that supplies the cash. Conversely, Congress must take action each year to authorize the financing for discretionary spending through an appropriations bill.
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