The United States budget and Federalism

The United States budget is generated to serve several major purposes to its subjects. First the budget is aimed at providing projections on government revenues and expected spending mechanisms. By this the budget is focused on balancing the economy by cutting down government expenditure and borrowing. The budget aims to bring to book the countrys critical areas needing financing and provide financial allocations to various government programs for example the United States army and research institutes. The current budget was drafted to cut down allocations to the United States army though. The budget was aimed at providing a deficit of 4.9 percent of the gross domestic product. Also, the budget was aimed at stabilizing the economy and achieves equitable growth in all sectors. The budget was structured to achieve a 3.3 growth in order to attract consideration from the IMF. This growth was to be attained through extracting Rs.20 billion from the public sector to fund the exporting sector. The budget was aimed at broadening the tax base instead of adding tax rates. But this is not substantial since the measures taken are not effective.
               
The process of designing the United States budget involves various critical steps which are important in making sure the correct estimates are reached at. The United States federal budget is derived by appropriating the congressional proposal and the executives proposal drafts. These are the two main actors or facilitators of the United States budget. The executive arm works with special agents to analyze and single out important areas to include in the budget for the fiscal year to come abbreviated as (FY). The president of the United States presents a request of the proposed budget to the congressmen of the nation on the 1st Monday of February. This is a state law and there are no amendments to it.

The congress after receiving the presidential budget then starts working on it. Both sides of the assembly then send out requests to other various bodies and stake holders of the nation to bring in their testimonies. The purpose of this process is to provide a resolution. Upon reaching a resolution budget then an appropriation seating is called upon to reconcile both the senate and the house drafts and then a final budget plan is sent to the president for signing.
             
 Conflicts in the budgetary process are always eminent. The senates version and the version of the house are never the same. Different leaders have different opinions and interest on certain matters regarding the budget. These conflicts arise due to either personal or political interests in various organizations. A congressman with an insurable interest in a certain corporation will support an opinion judging on its favor. The current budget was faced by the bank bail out plan which roared a major disagreement between both sides.

The governor of New York on municipal aid
The state of New York governor was recently quoted threatening the municipal council of deemed possibilities in withholding funds allocated to it.  He said he had already ordered the arm responsible for budgeting in the state to hold the funds in order to avoid projected bankruptcy in the financial accounts of the state.

The governor is reacting to a  3.2 billion figure (peters, 2009, p.2) that the state is operating deficit to. According to analysts, this is a wise move to save the people of the state from increased taxes. Conflicts relating to the matter at hand are based on the failure by the legislatures drafted plan to cut down the deficit (peters, 2009, p.2). The move received criticisms from various human rights bodies because it entailed the cutting down of benefits given to helpless people and even HIV and AIDS kitties.  If this move pounces in to action then various public schools serving the whole of new York will be forced to shut their gates due to lack of funds. This includes the five giant schools serving the five districts of New York (peters, 2009, p.3). The governor argued his move stating that these schools have been receiving huge chunks of money and they should have made savings.
             
The state of New York is one of the states who have adopted various methods to adopt the purposes of the budget. First, currently the governor of New York Mr. Peterson announced a cut in funds allocated to the municipal council in order to bridge the deficit in the national budget and restore the states fiscal abilities. The state of New York has drafted a cut in local assistance except the cunny agency. This will help reduce expenditure in the crunched budget. This cuts are to be imposed to the across the board mental hygiene program, across the board public safety and other programs supported by the state.

The state of New York has limited the amount spent on food stamp and other assistance provided to a minimal amount. The state has harmonized tax rates to encourage savings and investment in the region to boost revenue and reduce over dependence on government aid.

Federalism as an historical matter in the United States
The history of federalism dates back several ages. According to scholars in the United States, federalism was not initially in the constitution of the United States. The world federal means an alliance between independed sovereignties (Morley, 1981 p.24). The activities of a federate state are the opposite of a confederate state. A federate nation permits the state to have full mandate in its internal matters unlike a confederate nation. As provided in the constitution of the United States, the powers not possessed by the national system of governance are assumed by the state governance.  Federalism in America came to effect in the eighteenth century and has been in practice until the current date. In the early nineteenth century, the need for a stronger national government was experienced upon failure in some states to deliver effectively. The twentieth century saw a lot of power for the national government. This was initiated by the many events that occurred within the century. These events include the rampant series of wars taking in the consideration the WW1 and 11, the formation of various civil and human rights movements (Wibbels, 2005, p.132). Various leaders in the United States have contributed differently to the federal rule. For example during the rule of Bill Clinton, many powers given to the federal government were diverted to the state governments.

The United States system of federal government is unique in the following ways
There exists two spheres of governance and both of them are legal.
The state governments serve as allies to the main government.

Both the two systems of governance work closely in matters pertaining the interests of the nation.
Both the two systems have equal power in providing judgment to its subjects. Double or dual form of citizenship is served by both systems.

Comparison between the two forms of federalism
In the world there exist only two forms of federalism that is the federation and the confederation forms. Federalism is the existence of power in one political body in a federal government and its subordinate states. Both the state and the national governments have equal legislative powers over its citizens. This form of governance started in the USA and spread to Switzerland, Germany, Australia and Britain later on      (Fabbrini, 2005, p.46). In a confederate state, each entity retains a diverse set of governmental institutions.
An existing commitment is maintained throughout the divisions and the divisions do not exercise equal power over its citizens. The national systems use the constituencies as a link between them and its citizens (Fabbrini, 2005, p.46).

Pros and cons of federalism
Federalism comes with its benefits and setbacks. They include

Pros
It is easier to make and enact laws in a federal government
A federal system allows effective agreements in trade and promotes international unity in trade.
The federal system of governance is more powerful in terms of military and international security

Cons
Matters of local interest are some times judged as national making a little situation complex
There exists constant fear of rebellion against  the federal government
States lose their recognition under the degree of the national name.

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