[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2825 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 2825

 To establish procedures to ensure a balanced Federal budget by fiscal 
   year 2002 and to create a Social Security reform reserve fund to 
             protect revenues generated by economic growth.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            November 5, 1997

 Mr. Sanford introduced the following bill; which was referred to the 
Committee on the Budget, and in addition to the Committee on Rules, for 
a period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL


 
 To establish procedures to ensure a balanced Federal budget by fiscal 
   year 2002 and to create a Social Security reform reserve fund to 
             protect revenues generated by economic growth.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; PURPOSE.

    (a) Short Title.--This Act may be cited as the ``Economic Growth 
and Social Security Transition Act''.
    (b) Purpose.--The purpose of this Act is--
            (1) to ensure a balanced Federal budget by fiscal year 
        2002;
            (2) to create a mechanism to monitor total costs of direct 
        spending programs, and, in the event that actual or projected 
        costs exceed targeted levels, to require the President and 
        Congress to address adjustments in direct spending; and
            (3) to ensure that windfall revenues are used to help pay 
        for the transition costs to a fully funded Social Security 
        system that includes individually owned accounts that are 
        invested in real assets such as equities, bonds and similar 
        financial instruments.

SEC. 2. ESTABLISHMENT OF DIRECT SPENDING AND REVENUE TARGETS.

    For purposes of this Act--
            (1) the initial direct spending targets for each of fiscal 
        years 1998 through 2002 shall equal total outlays for all 
        direct spending except net interest as provided in H. Con. Res. 
        84, the concurrent resolution on the budget for fiscal year 
        1998, unless such outlays are reduced by a subsequent 
        concurrent resolution on the budget; in which case, the lower 
        level of total outlays for all direct spending except net 
        interest shall be used; and
            (2) the revenue targets are the revenue amounts provided in 
        H. Con. Res. 84, the concurrent resolution on the budget for 
        fiscal year 1998.

SEC. 3. ANNUAL REVIEW OF DIRECT SPENDING AND RECEIPTS BY PRESIDENT.

    As part of each budget submitted under section 1105(a) of title 31, 
United States Code, the President shall provide an annual review of 
direct spending and receipts, which shall include--
            (1) information on total outlays for programs covered by 
        the direct spending targets, including actual outlays for the 
        prior fiscal year and projected outlays for the current fiscal 
        year and the 5 succeeding fiscal years; and
            (2) any amount by which revenues for a budget year and any 
        outyears through fiscal year 2002 exceed the revenue target in 
        section 2(2).

SEC. 4. FINANCING TRANSITION TO A SOUND SOCIAL SECURITY SYSTEM.

    (a) Inclusion on Scorecard.--The Office of Management and Budget 
shall include the amount of any changes in revenues determined pursuant 
to section 3(2) as a deficit decrease under the estimates and reports 
required by section 252(b) and section 254 of the Balanced Budget and 
Emergency Deficit Control Act of 1985.
    (b) Use of Revenues Exceeding Target.--Any amount not to exceed the 
amount of deficit decrease determined under section 3(2) may only be 
offset by legislation to help pay for the transition costs to a fully 
funded Social Security system that includes individually owned accounts 
that are invested in real assets such as equities, bonds and similar 
financial instruments.

SEC. 5. SPECIAL DIRECT SPENDING MESSAGE BY PRESIDENT.

    (a) Trigger.--If the information submitted by the President under 
section 3(1) indicates--
            (1) that actual outlays for direct spending in the prior 
        fiscal year exceeded the applicable direct spending target; or
            (2) that outlays for direct spending for the current or 
        future budget years are projected to exceed the applicable 
        direct spending targets,
the President shall include in his budget a special direct spending 
message meeting the requirements of subsection (b).
    (b) Contents.--The special direct spending message shall include--
            (1) an analysis of the variance in direct spending over the 
        direct spending targets; and
            (2) the President's recommendations for eliminating 
        overages, if any, in the prior, current, or future budget 
        years.
    (c) Proposed Special Direct Spending Resolution.--The special 
direct spending message shall include the text of a special direct 
spending resolution implementing the President's recommendations 
through reconciliation directives instructing the appropriate 
committees of the House of Representatives and Senate to determine and 
recommend changes in laws within their jurisdictions. If the President 
recommends no reductions pursuant to (b)(2)(C), the special direct 
spending message shall include the text of a special resolution 
concurring in the President's recommendation of no legislative action.

SEC. 6. REQUIRED RESPONSE BY CONGRESS.

    (a) In General.--It shall not be in order in the House of 
Representatives or the Senate to consider a concurrent resolution on 
the budget unless that concurrent resolution fully eliminates the 
entirety of any overage contained in the applicable report of the 
President under section 5 through reconciliation directives.
    (b) Waiver and Suspension.--This section may be waived or suspended 
in the House of Representatives or the Senate only by the affirmative 
vote of three-fifths of the Members duly chosen and sworn. This section 
shall be subject to the provisions of section 258 of the Balanced 
Budget and Emergency Deficit Control Act of 1985.
    (c) Appeals.--Appeals in the House of Representatives or the Senate 
from the decisions of the Chair relating to any provision of this 
section shall be limited to 1 hour, to be equally divided between, and 
controlled by, the appellant and the manager of the bill or joint 
resolution, as the case may be. An affirmative vote of three-fifths of 
the Members, duly chosen and sworn, shall be required to sustain an 
appeal of the ruling of the Chair on a point of order raised under this 
section.

SEC. 7. RELATIONSHIP TO BALANCED BUDGET AND EMERGENCY DEFICIT CONTROL 
              ACT.

    Reductions in outlays resulting from legislation reported pursuant 
to section 6 shall not be taken into account for purposes of any budget 
enforcement procedure under the Balanced Budget and Emergency Deficit 
Control Act of 1985 and the Congressional Budget Act of 1974.

SEC. 8. ESTIMATING MARGIN.

    For any fiscal year for which the overage is less than one-half of 
1 percent of the direct spending target for that year, the procedures 
set forth in sections 5 and 6 shall not apply.

SEC. 9. EFFECTIVE DATE.

    This Act shall apply to direct spending targets and revenues for 
fiscal years 1998 through 2002 and shall expire at the end of fiscal 
year 2002.
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