[Congressional Record Volume 141, Number 105 (Monday, June 26, 1995)]
[House]
[Pages H6273-H6304]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          CONFERENCE REPORT ON HOUSE CONCURRENT RESOLUTION 67

  Mr. KASICH submitted the following conference report and statement on 
the bill (H. Con. Res. 67), setting forth the congressional budget for 
the United States Government for the fiscal years 1996, 1997, 1998, 
1999, 2000, 2001, and 2002, having met, after full and free conference, 
have agreed to recommend and do recommend to their respective Houses as 
follows:

                  Conference Report (H. Con. Res. 67)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the Senate to the concurrent 
     resolution (H. Con. Res. 67), setting forth the congressional 
     budget for the United States Government for the fiscal years 
     1996, 1997, 1998, 1999, 2000, 2001, and 2002, having met, 
     after full and free conference, have agreed to recommend and 
     do recommend to their respective Houses as follows:
       That the House recede from its disagreement to the 
     amendment of the Senate and agree to the same with an 
     amendment as follows:
       In lieu of the matter proposed to be inserted by the Senate 
     amendment, insert the following:

     SECTION 1. CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL 
                   YEAR 1996.

       (a) Declaration.--The Congress determines and declares that 
     this resolution is the concurrent resolution on the budget 
     for fiscal year 1996, including the appropriate budgetary 
     levels for fiscal years 1997, 1998, 1999, 2000, as required 
     by section 301 of the Congressional Budget Act of 1974, and 
     including the appropriate levels for fiscal years 2001 and 
     2002.
       (b) Table of Contents.--The table of contents for this 
     concurrent resolution is as follows:
Sec. 1. Concurrent resolution on the budget for fiscal year 1996.

                      TITLE I--LEVELS AND AMOUNTS

Sec. 101. Recommended levels and amounts.
Sec. 102. Debt increase.
Sec. 103. Social Security.
Sec. 104. Major functional categories.
Sec. 105. Reconciliation.

             TITLE II--BUDGETARY RESTRAINTS AND RULEMAKING

Sec. 201. Discretionary spending limits.
Sec. 202. Extension of pay-as-you-go point of order.
Sec. 203. Tax reserve fund in the Senate.
Sec. 204. Welfare reform reserve fund.
Sec. 205. Budget surplus allowance.
Sec. 206. Sale of government assets.
Sec. 207. Credit reform and direct student loans.
Sec. 208. Extension of Budget Act 60-vote enforcement through 2002.
Sec. 209. Repeal of IRS allowance.
Sec. 210. Tax reduction contingent on balanced budget in the House of 
              Representatives.
Sec. 211. Exercise of rulemaking powers.

[[Page H6274]]

 TITLE III--SENSE OF THE CONGRESS, HOUSE OF REPRESENTATIVES, AND SENATE

Sec. 301. Sense of the Congress on the elimination of fraud, waste, and 
              abuse in the medicare system.
Sec. 302. Sense of Congress regarding privatization of the student loan 
              marketing association (Sallie Mae).
Sec. 303. Sense of the Congress regarding the debt limit.
Sec. 304. Sense of the Congress assumptions.
Sec. 305. Sense of the Senate that tax reductions should benefit 
              working families.
Sec. 306. Sense of the Senate on the distribution of agriculture 
              savings.
Sec. 307. Sense of the Senate on the establishment of a medicare 
              solvency commission.
Sec. 308. Sense of the Senate regarding protection of children's 
              health.
Sec. 309. Sense of the Senate on the assumptions.
Sec. 310. House Statement on agriculture savings.
Sec. 311. Sense of the House on baselines.
Sec. 312. Sense of the House regarding a commission on the solvency of 
              the Federal military and civil service retirement funds.
Sec. 313. Sense of the House regarding the repeal of House Rule XLIX.
Sec. 314. Sense of the House on emergencies.
                      TITLE I--LEVELS AND AMOUNTS

     SEC. 101. RECOMMENDED LEVELS AND AMOUNTS.

       The following budgetary levels are appropriate for the 
     fiscal years 1996, 1997, 1998, 1999, 2000, 2001, and 2002:
       (1) Federal Revenues.--For purposes of the enforcement of 
     this resolution--
       (A) The recommended levels of Federal revenues are as 
     follows:
       Fiscal year 1996: $1,042,500,000,000.
       Fiscal year 1997: $1,082,700,000,000.
       Fiscal year 1998: $1,134,200,000,000.
       Fiscal year 1999: $1,186,700,000,000.
       Fiscal year 2000: $1,245,400,000,000.
       Fiscal year 2001: $1,313,400,000,000.
       Fiscal year 2002: $1,384,200,000,000.
       (B) The amounts by which the aggregate levels of Federal 
     revenues should be changed are as follows:
       Fiscal year 1996: $100,000,000.
       Fiscal year 1997: $100,000,000.
       Fiscal year 1998: $200,000,000.
       Fiscal year 1999: $200,000,000.
       Fiscal year 2000: $200,000,000.
       Fiscal year 2001: $200,000,000.
       Fiscal year 2002: $200,000,000.
       (C) The amounts for Federal Insurance Contributions Act 
     revenues for hospital insurance within the recommended levels 
     of Federal revenues are as follows:
       Fiscal year 1996: $103,800,000,000.
       Fiscal year 1997: $109,000,000,000.
       Fiscal year 1998: $114,900,000,000.
       Fiscal year 1999: $120,700,000,000.
       Fiscal year 2000: $126,900,000,000.
       Fiscal year 2001: $133,600,000,000.
       Fiscal year 2002: $140,400,000,000.
       (2) New Budget Authority.--For purposes of the enforcement 
     of this resolution, the appropriate levels of total new 
     budget authority are as follows:
       Fiscal year 1996: $1,285,500,000,000.
       Fiscal year 1997: $1,324,300,000,000.
       Fiscal year 1998: $1,362,300,000,000.
       Fiscal year 1999: $1,396,900,000,000.
       Fiscal year 2000: $1,445,600,000,000.
       Fiscal year 2001: $1,476,300,000,000.
       Fiscal year 2002: $1,518,800,000,000.
       (3) Budget Outlays.--For purposes of the enforcement of 
     this resolution, the appropriate levels of total budget 
     outlays are as follows:
       Fiscal year 1996: $1,288,100,000,000.
       Fiscal year 1997: $1,316,800,000,000.
       Fiscal year 1998: $1,338,200,000,000.
       Fiscal year 1999: $1,379,600,000,000.
       Fiscal year 2000: $1,426,500,000,000.
       Fiscal year 2001: $1,453,600,000,000.
       Fiscal year 2002: $1,492,600,000,000.
       (4) Deficits.--For purposes of the enforcement of this 
     resolution, the amounts of the deficits are as follows:
       Fiscal year 1996: $245,600,000,000.
       Fiscal year 1997: $234,100,000,000.
       Fiscal year 1998: $204,000,000,000.
       Fiscal year 1999: $192,900,000,000.
       Fiscal year 2000: $181,100,000,000.
       Fiscal year 2001: $140,200,000,000.
       Fiscal year 2002: $108,400,000,000.
       (5) Public Debt.--The appropriate levels of the public debt 
     are as follows:
       Fiscal year 1996: $5,210,700,000,000.
       Fiscal year 1997: $5,510,100,000,000.
       Fiscal year 1998: $5,779,800,000,000.
       Fiscal year 1999: $6,038,900,000,000.
       Fiscal year 2000: $6,288,900,000,000.
       Fiscal year 2001: $6,503,500,000,000.
       Fiscal year 2002: $6,688,600,000,000.
       (6) Direct Loan Obligations.--The appropriate levels of 
     total new direct loan obligations are as follows:
       Fiscal year 1996: $37,600,000,000.
       Fiscal year 1997: $40,200,000,000.
       Fiscal year 1998: $42,300,000,000.
       Fiscal year 1999: $45,700,000,000.
       Fiscal year 2000: $45,800,000,000.
       Fiscal year 2001: $45,800,000,000.
       Fiscal year 2002: $46,100,000,000.
       (7) Primary Loan Guarantee Commitments.--The appropriate 
     levels of new primary loan guarantee commitments are as 
     follows:
       Fiscal year 1996: $193,400,000,000.
       Fiscal year 1997: $187,900,000,000.
       Fiscal year 1998: $185,300,000,000.
       Fiscal year 1999: $183,300,000,000.
       Fiscal year 2000: $184,700,000,000.
       Fiscal year 2001: $186,100,000,000.
       Fiscal year 2002: $187,600,000,000.

     SEC. 102. DEBT INCREASE.

       The amounts of the increase in the public debt subject to 
     limitation are as follows:
       Fiscal year 1996: $307,800,000,000.
       Fiscal year 1997: $299,300,000,000.
       Fiscal year 1998: $269,800,000,000.
       Fiscal year 1999: $259,100,000,000.
       Fiscal year 2000: $249,900,000,000.
       Fiscal year 2001: $214,600,000,000.
       Fiscal year 2002: $185,100,000,000.

     SEC. 103. SOCIAL SECURITY.

       (a) Social Security Revenues.--For purposes of Senate 
     enforcement under sections 302, 602, and 311 of the 
     Congressional Budget Act of 1974, the amounts of revenues of 
     the Federal Old-Age and Survivors Insurance Trust Fund and 
     the Federal Disability Insurance Trust Fund are as follows:
       Fiscal year 1996: $374,700,000,000.
       Fiscal year 1997: $392,000,000,000.
       Fiscal year 1998: $411,400,000,000.
       Fiscal year 1999: $430,900,000,000.
       Fiscal year 2000: $452,000,000,000.
       Fiscal year 2001: $475,200,000,000.
       Fiscal year 2002: $498,600,000,000.
       (b) Social Security Outlays.--For purposes of Senate 
     enforcement under sections 302, 602, and 311 of the 
     Congressional Budget Act of 1974, the amounts of outlays of 
     the Federal Old-Age and Survivors Insurance Trust Fund and 
     the Federal Disability Insurance Trust Fund are as follows:
       Fiscal year 1996: $299,400,000,000.
       Fiscal year 1997: $310,900,000,000.
       Fiscal year 1998: $324,600,000,000.
       Fiscal year 1999: $338,500,000,000.
       Fiscal year 2000: $353,100,000,000.
       Fiscal year 2001: $368,100,000,000.
       Fiscal year 2002: $383,800,000,000.

     SEC. 104. MAJOR FUNCTIONAL CATEGORIES.

       The Congress determines and declares that the appropriate 
     levels of new budget authority, budget outlays, new direct 
     loan obligations, and new primary loan guarantee commitments 
     for fiscal years 1996 through 2002 for each major functional 
     category are:
       (1) National Defense (050):
       Fiscal year 1996:
       (A) New budget authority, $264,700,000,000.
       (B) Outlays, $263,100,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $1,700,000,000.
       Fiscal year 1997:
       (A) New budget authority, $267,300,000,000.
       (B) Outlays, $265,000,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $1,700,000,000.
       Fiscal year 1998:
       (A) New budget authority, $269,000,000,000.
       (B) Outlays, $263,800,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $1,700,000,000.
       Fiscal year 1999:
       (A) New budget authority, $271,700,000,000.
       (B) Outlays, $267,200,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $1,700,000,000.
       Fiscal year 2000:
       (A) New budget authority, $274,400,000,000.
       (B) Outlays, $270,900,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $1,700,000,000.
       Fiscal year 2001:
       (A) New budget authority, $277,100,000,000.
       (B) Outlays, $270,000,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $1,700,000,000.
       Fiscal year 2002:
       (A) New budget authority, $280,000,000,000.
       (B) Outlays, $270,000,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $1,700,000,000.
       (2) International Affairs (150):
       Fiscal year 1996:
       (A) New budget authority, $15,800,000,000.
       (B) Outlays, $17,000,000,000.
       (C) New direct loan obligations, $5,700,000,000.
       (D) New primary loan guarantee commitments, 
     $18,300,000,000.
       Fiscal year 1997:
       (A) New budget authority, $14,000,000,000.
       (B) Outlays, $15,100,000,000.
       (C) New direct loan obligations, $5,700,000,000.
       (D) New primary loan guarantee commitments, 
     $18,300,000,000.
       Fiscal year 1998:
       (A) New budget authority, $12,400,000,000.
       (B) Outlays, $13,900,000,000.
       (C) New direct loan obligations, $5,700,000,000.
       (D) New primary loan guarantee commitments, 
     $18,300,000,000.
       Fiscal year 1999:
       (A) New budget authority, $11,200,000,000.
       (B) Outlays, $12,600,000,000.
       (C) New direct loan obligations, $5,700,000,000.
       (D) New primary loan guarantee commitments, 
     $18,300,000,000.
       Fiscal year 2000:
       (A) New budget authority, $12,700,000,000.
       (B) Outlays, $11,900,000,000.
       (C) New direct loan obligations, $5,700,000,000.
       (D) New primary loan guarantee commitments, 
     $18,300,000,000.
       Fiscal year 2001:
       (A) New budget authority, $12,800,000,000.
       (B) Outlays, $12,000,000,000.
       (C) New direct loan obligations, $5,700,000,000.
       (D) New primary loan guarantee commitments, 
     $18,300,000,000.
       Fiscal year 2002:
       (A) New budget authority, $12,800,000,000.
       (B) Outlays, $11,800,000,000.
       (C) New direct loan obligations, $5,700,000,000.
       (D) New primary loan guarantee commitments, 
     $18,300,000,000.

[[Page H6275]]

       (3) General Science, Space, and Technology (250):
       Fiscal year 1996:
       (A) New budget authority, $16,700,000,000.
       (B) Outlays, $16,800,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 1997:
       (A) New budget authority, $16,300,000,000.
       (B) Outlays, $16,600,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 1998:
       (A) New budget authority, $15,900,000,000.
       (B) Outlays, $16,100,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 1999:
       (A) New budget authority, $15,600,000,000.
       (B) Outlays, $15,700,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2000:
       (A) New budget authority, $15,300,000,000.
       (B) Outlays, $15,500,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2001:
       (A) New budget authority, $15,300,000,000.
       (B) Outlays, $15,400,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2002:
       (A) New budget authority, $15,300,000,000.
       (B) Outlays, $15,400,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       (4) Energy (270):
       Fiscal year 1996:
       (A) New budget authority, $4,600,000,000.
       (B) Outlays, $4,500,000,000.
       (C) New direct loan obligations, $1,200,000,000.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 1997:
       (A) New budget authority, $4,200,000,000.
       (B) Outlays, $3,500,000,000.
       (C) New direct loan obligations, $1,200,000,000.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 1998:
       (A) New budget authority, $3,800,000,000.
       (B) Outlays, $3,100,000,000.
       (C) New direct loan obligations, $1,200,000,000.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 1999:
       (A) New budget authority, $3,600,000,000.
       (B) Outlays, $2,600,000,000.
       (C) New direct loan obligations, $1,200,000,000.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2000:
       (A) New budget authority, $3,400,000,000.
       (B) Outlays, $2,200,000,000.
       (C) New direct loan obligations, $1,200,000,000.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2001:
       (A) New budget authority, $3,300,000,000.
       (B) Outlays, $2,200,000,000.
       (C) New direct loan obligations, $1,200,000,000.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2002:
       (A) New budget authority, $3,300,000,000.
       (B) Outlays, $2,200,000,000.
       (C) New direct loan obligations, $1,200,000,000.
       (D) New primary loan guarantee commitments, $0.
       (5) Natural Resources and Environment (300):
       Fiscal year 1996:
       (A) New budget authority, $19,500,000,000.
       (B) Outlays, $20,300,000,000.
       (C) New direct loan obligations $100,000,000.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 1997:
       (A) New budget authority, $19,200,000,000.
       (B) Outlays, $20,000,000,000.
       (C) New direct loan obligations, $100,000,000.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 1998:
       (A) New budget authority, $17,700,000,000.
       (B) Outlays, $18,700,000,000.
       (C) New direct loan obligations, $100,000,000.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 1999:
       (A) New budget authority, $18,200,000,000.
       (B) Outlays, $19,000,000,000.
       (C) New direct loan obligations, $100,000,000.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2000:
       (A) New budget authority, $17,900,000,000.
       (B) Outlays, $18,500,000,000.
       (C) New direct loan obligations, $100,000,000.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2001:
       (A) New budget authority, $17,100,000,000.
       (B) Outlays, $17,400,000,000.
       (C) New direct loan obligations, $100,000,000.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2002:
       (A) New budget authority, $17,500,000,000.
       (B) Outlays, $17,700,000,000.
       (C) New direct loan obligations, $100,000,000.
       (D) New primary loan guarantee commitments, $0.
       (6) Agriculture (350):
       Fiscal year 1996:
       (A) New budget authority, $13,100,000,000.
       (B) Outlays, $11,800,000,000.
       (C) New direct loan obligations, $11,500,000,000.
       (D) New primary loan guarantee commitments, $5,700,000,000.
       Fiscal year 1997:
       (A) New budget authority, $12,500,000,000.
       (B) Outlays, $11,100,000,000.
       (C) New direct loan obligations, $11,500,000,000.
       (D) New primary loan guarantee commitments, $5,700,000,000.
       Fiscal year 1998:
       (A) New budget authority, $11,700,000,000.
       (B) Outlays, $10,500,000,000.
       (C) New direct loan obligations, $10,900,000,000.
       (D) New primary loan guarantee commitments, $5,700,000,000.
       Fiscal year 1999:
       (A) New budget authority, $11,500,000,000.
       (B) Outlays, $10,300,000,000.
       (C) New direct loan obligations, $11,600,000,000.
       (D) New primary loan guarantee commitments, $5,700,000,000.
       Fiscal year 2000:
       (A) New budget authority, $10,900,000,000.
       (B) Outlays, $9,800,000,000.
       (C) New direct loan obligations, $11,400,000,000.
       (D) New primary loan guarantee commitments, $5,700,000,000.
       Fiscal year 2001:
       (A) New budget authority, $9,800,000,000.
       (B) Outlays, $8,700,000,000.
       (C) New direct loan obligations, $11,100,000,000.
       (D) New primary loan guarantee commitments, $5,700,000,000.
       Fiscal year 2002:
       (A) New budget authority, $9,600,000,000.
       (B) Outlays, $8,500,000,000.
       (C) New direct loan obligations, $10,900,000,000.
       (D) New primary loan guarantee commitments, $5,700,000,000.
       (7) Commerce and Housing Credit (370):
       Fiscal year 1996:
       (A) New budget authority, $2,600,000,000.
       (B) Outlays, -$6,900,000,000.
       (C) New direct loan obligations, $1,400,000,000.
       (D) New primary loan guarantee commitments, 
     $123,100,000,000.
       Fiscal year 1997:
       (A) New budget authority, $1,800,000,000.
       (B) Outlays, -$5,100,000,000.
       (C) New direct loan obligations, $1,400,000,000.
       (D) New primary loan guarantee commitments, 
     $123,100,000,000.
       Fiscal year 1998:
       (A) New budget authority, $900,000,000.
       (B) Outlays, -$6,700,000,000.
       (C) New direct loan obligations, $1,400,000,000.
       (D) New primary loan guarantee commitments, 
     $123,100,000,000.
       Fiscal year 1999:
       (A) New budget authority, $400,000,000.
       (B) Outlays, -$4,800,000,000.
       (C) New direct loan obligations, $1,400,000,000.
       (D) New primary loan guarantee commitments, 
     $123,100,000,000.
       Fiscal year 2000:
       (A) New budget authority, $2,100,000,000.
       (B) Outlays, -$2,200,000,000.
       (C) New direct loan obligations, $1,400,000,000.
       (D) New primary loan guarantee commitments, 
     $123,100,000,000.
       Fiscal year 2001:
       (A) New budget authority, $800,000,000.
       (B) Outlays, -$2,900,000,000.
       (C) New direct loan obligations, $1,400,000,000.
       (D) New primary loan guarantee commitments, 
     $123,100,000,000.
       Fiscal year 2002:
       (A) New budget authority, $600,000,000.
       (B) Outlays, -$3,000,000,000.
       (C) New direct loan obligations, $1,400,000,000.
       (D) New primary loan guarantee commitments, 
     $123,100,000,000.
       (8) Transportation (400):
       Fiscal year 1996:
       (A) New budget authority, $36,600,000,000.
       (B) Outlays, $38,900,000,000.
       (C) New direct loan obligations, $200,000,000.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 1997:
       (A) New budget authority, $43,100,000,000.
       (B) Outlays, $37,600,000,000.
       (C) New direct loan obligations, $200,000,000.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 1998:
       (A) New budget authority, $43,900,000,000.
       (B) Outlays, $36,600,000,000.
       (C) New direct loan obligations, $200,000,000.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 1999:
       (A) New budget authority, $42,600,000,000.
       (B) Outlays, $34,100,000,000.
       (C) New direct loan obligations, $200,000,000.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2000:
       (A) New budget authority, $42,900,000,000.
       (B) Outlays, $33,200,000,000.
       (C) New direct loan obligations, $200,000,000.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2001:
       (A) New budget authority, $42,200,000,000.
       (B) Outlays, $32,400,000,000.
       (C) New direct loan obligations, $200,000,000.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2002:
       (A) New budget authority, $41,800,000,000.
       (B) Outlays, $32,000,000,000.
       (C) New direct loan obligations, $200,000,000.

[[Page H6276]]

       (D) New primary loan guarantee commitments, $0.
       (9) Community and Regional Development (450):
       Fiscal year 1996:
       (A) New budget authority, $6,600,000,000.
       (B) Outlays, $9,900,000,000.
       (C) New direct loan obligations, $2,700,000,000.
       (D) New primary loan guarantee commitments, $1,200,000,000.
       Fiscal year 1997:
       (A) New budget authority, $6,500,000,000.
       (B) Outlays, $7,800,000,000.
       (C) New direct loan obligations, $2,700,000,000.
       (D) New primary loan guarantee commitments, $1,200,000,000.
       Fiscal year 1998:
       (A) New budget authority, $6,400,000,000.
       (B) Outlays, $6,500,000,000.
       (C) New direct loan obligations, $2,700,000,000.
       (D) New primary loan guarantee commitments, $1,200,000,000.
       Fiscal year 1999:
       (A) New budget authority, $6,400,000,000.
       (B) Outlays, $6,200,000,000.
       (C) New direct loan obligations, $2,700,000,000.
       (D) New primary loan guarantee commitments, $1,200,000,000.
       Fiscal year 2000:
       (A) New budget authority, $6,300,000,000.
       (B) Outlays, $6,200,000,000.
       (C) New direct loan obligations, $2,700,000,000.
       (D) New primary loan guarantee commitments, $1,200,000,000.
       Fiscal year 2001:
       (A) New budget authority, $5,700,000,000.
       (B) Outlays, $6,100,000,000.
       (C) New direct loan obligations, $2,700,000,000.
       (D) New primary loan guarantee commitments, $1,200,000,000.
       Fiscal year 2002:
       (A) New budget authority, $5,600,000,000.
       (B) Outlays, $6,100,000,000.
       (C) New direct loan obligations, $2,700,000,000.
       (D) New primary loan guarantee commitments, $1,200,000,000.
       (10) Education, Training, Employment, and Social Services 
     (500):
       Fiscal year 1996:
       (A) New budget authority, $48,400,000,000.
       (B) Outlays, $53,400,000,000.
       (C) New direct loan obligations, $13,600,000,000.
       (D) New primary loan guarantee commitments, 
     $16,300,000,000.
       Fiscal year 1997:
       (A) New budget authority, $47,800,000,000.
       (B) Outlays, $48,900,000,000.
       (C) New direct loan obligations, $16,300,000,000.
       (D) New primary loan guarantee commitments, 
     $15,900,000,000.
       Fiscal year 1998:
       (A) New budget authority, $47,600,000,000.
       (B) Outlays, $47,300,000,000.
       (C) New direct loan obligations, $19,100,000,000.
       (D) New primary loan guarantee commitments, 
     $15,200,000,000.
       Fiscal year 1999:
       (A) New budget authority, $48,400,000,000.
       (B) Outlays, $47,500,000,000.
       (C) New direct loan obligations, $21,800,000,000.
       (D) New primary loan guarantee commitments, 
     $14,300,000,000.
       Fiscal year 2000:
       (A) New budget authority, $49,100,000,000.
       (B) Outlays, $48,200,000,000.
       (C) New direct loan obligations, $21,900,000,000.
       (D) New primary loan guarantee commitments, 
     $15,000,000,000.
       Fiscal year 2001:
       (A) New budget authority, $48,600,000,000.
       (B) Outlays, $47,700,000,000.
       (C) New direct loan obligations, $22,000,000,000.
       (D) New primary loan guarantee commitments, 
     $15,800,000,000.
       Fiscal year 2002:
       (A) New budget authority, $48,800,000,000.
       (B) Outlays, $47,800,000,000.
       (C) New direct loan obligations, $22,200,000,000.
       (D) New primary loan guarantee commitments, 
     $16,600,000,000.
       (11) Health (550):
       Fiscal year 1996:
       (A) New budget authority, $121,000,000,000.
       (B) Outlays, $121,100,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $300,000,000.
       Fiscal year 1997:
       (A) New budget authority, $127,600,000,000.
       (B) Outlays, $127,500,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $300,000,000.
       Fiscal year 1998:
       (A) New budget authority, $131,600,000,000.
       (B) Outlays, $131,700,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $300,000,000.
       Fiscal year 1999:
       (A) New budget authority, $135,700,000,000.
       (B) Outlays, $135,700,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $300,000,000.
       Fiscal year 2000:
       (A) New budget authority, $140,100,000,000.
       (B) Outlays, $139,900,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $300,000,000.
       Fiscal year 2001:
       (A) New budget authority, $144,500,000,000.
       (B) Outlays, $144,300,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $300,000,000.
       Fiscal year 2002:
       (A) New budget authority, $149,200,000,000.
       (B) Outlays, $149,000,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $300,000,000.
       (12) Medicare (570):
       Fiscal year 1996:
       (A) New budget authority, $176,100,000,000.
       (B) Outlays, $173,700,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 1997:
       (A) New budget authority, $184,300,000,000.
       (B) Outlays, $182,800,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 1998:
       (A) New budget authority, $194,000,000,000.
       (B) Outlays, $192,300,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 1999:
       (A) New budget authority, $205,700,000,000.
       (B) Outlays, $203,200,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2000:
       (A) New budget authority, $216,500,000,000.
       (B) Outlays, $214,600,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2001:
       (A) New budget authority, $231,800,000,000.
       (B) Outlays, $229,700,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2002:
       (A) New budget authority, $249,200,000,000.
       (B) Outlays, $247,000,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       (13) Income Security (600):
       Fiscal year 1996:
       (A) New budget authority, $225,900,000,000.
       (B) Outlays, $227,600,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $100,000,000.
       Fiscal year 1997:
       (A) New budget authority, $231,600,000,000.
       (B) Outlays, $236,400,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $100,000,000.
       Fiscal year 1998:
       (A) New budget authority, $250,300,000,000.
       (B) Outlays, $245,300,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $100,000,000.
       Fiscal year 1999:
       (A) New budget authority, $253,100,000,000.
       (B) Outlays, $255,800,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $100,000,000.
       Fiscal year 2000:
       (A) New budget authority, $269,500,000,000.
       (B) Outlays, $269,900,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $100,000,000.
       Fiscal year 2001:
       (A) New budget authority, $274,800,000,000.
       (B) Outlays, $274,600,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $100,000,000.
       Fiscal year 2002:
       (A) New budget authority, $288,700,000,000.
       (B) Outlays, $288,300,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $100,000,000.
       (14) Social Security (650):
       Fiscal year 1996:
       (A) New budget authority, $5,900,000,000.
       (B) Outlays, $8,500,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 1997:
       (A) New budget authority, $8,100,000,000.
       (B) Outlays, $10,500,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 1998:
       (A) New budget authority, $8,800,000,000.
       (B) Outlays, $11,300,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 1999:
       (A) New budget authority, $9,600,000,000.
       (B) Outlays, $12,100,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2000:
       (A) New budget authority, $10,500,000,000.
       (B) Outlays, $12,900,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2001:
       (A) New budget authority, $11,100,000,000.
       (B) Outlays, $13,500,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2002:
       (A) New budget authority, $11,700,000,000.

[[Page H6277]]

       (B) Outlays, $14,100,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       (15) Veterans Benefits and Services (700):
       Fiscal year 1996:
       (A) New budget authority, $37,500,000,000.
       (B) Outlays, $36,900,000,000.
       (C) New direct loan obligations, $1,200,000,000.
       (D) New primary loan guarantee commitments, 
     $26,700,000,000.
       Fiscal year 1997:
       (A) New budget authority, $37,900,000,000.
       (B) Outlays, $38,000,000,000.
       (C) New direct loan obligations, $1,100,000,000.
       (D) New primary loan guarantee commitments, 
     $21,600,000,000.
       Fiscal year 1998:
       (A) New budget authority, $38,200,000,000.
       (B) Outlays, $38,400,000,000.
       (C) New direct loan obligations, $1,000,000,000.
       (D) New primary loan guarantee commitments, 
     $19,700,000,000.
       Fiscal year 1999:
       (A) New budget authority, $38,800,000,000.
       (B) Outlays, $39,000,000,000.
       (C) New direct loan obligations, $1,000,000,000.
       (D) New primary loan guarantee commitments, 
     $18,600,000,000.
       Fiscal year 2000:
       (A) New budget authority, $39,100,000,000.
       (B) Outlays, $40,600,000,000.
       (C) New direct loan obligations, $1,200,000,000.
       (D) New primary loan guarantee commitments, 
     $19,300,000,000.
       Fiscal year 2001:
       (A) New budget authority, $39,700,000,000.
       (B) Outlays, $41,300,000,000.
       (C) New direct loan obligations, $1,400,000,000.
       (D) New primary loan guarantee commitments, 
     $19,900,000,000.
       Fiscal year 2002:
       (A) New budget authority, $40,200,000,000.
       (B) Outlays, $41,800,000,000.
       (C) New direct loan obligations, $1,700,000,000.
       (D) New primary loan guarantee commitments, 
     $20,600,000,000.
       (16) Administration of Justice (750):
       Fiscal year 1996:
       (A) New budget authority, $19,800,000,000.
       (B) Outlays, $18,700,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 1997:
       (A) New budget authority, $19,800,000,000.
       (B) Outlays, $18,900,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 1998:
       (A) New budget authority, $20,200,000,000.
       (B) Outlays, $19,700,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
     Fiscal year 1999:
       (A) New budget authority, $21,000,000,000.
       (B) Outlays, $20,400,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
     Fiscal year 2000:
       (A) New budget authority, $21,100,000,000.
       (B) Outlays, $20,900,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2001:
       (A) New budget authority, $20,700,000,000.
       (B) Outlays, $20,500,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2002:
       (A) New budget authority, $20,600,000,000.
       (B) Outlays, $20,500,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       (17) General Government (800):
       Fiscal year 1996:
       (A) New budget authority, $12,400,000,000.
       (B) Outlays, $12,900,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 1997:
       (A) New budget authority, $12,300,000,000.
       (B) Outlays, $12,300,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 1998:
       (A) New budget authority, $12,200,000,000.
       (B) Outlays, $12,200,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 1999:
       (A) New budget authority, $12,100,000,000.
       (B) Outlays, $12,000,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2000:
       (A) New budget authority, $12,000,000,000.
       (B) Outlays, $12,000,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2001:
       (A) New budget authority, $11,600,000,000.
       (B) Outlays, $11,600,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2002:
       (A) New budget authority, $11,600,000,000.
       (B) Outlays, $11,500,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       (18) Net Interest (900):
       Fiscal year 1996:
       (A) New budget authority, $298,400,000,000.
       (B) Outlays, $298,400,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 1997:
       (A) New budget authority, $310,500,000,000.
       (B) Outlays, $310,500,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 1998:
       (A) New budget authority, $319,400,000,000.
       (B) Outlays, $319,400,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 1999:
       (A) New budget authority, $331,500,000,000.
       (B) Outlays, $331,500,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2000:
       (A) New budget authority, $342,900,000,000.
       (B) Outlays, $342,900,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2001:
       (A) New budget authority, $349,900,000,000.
       (B) Outlays, $349,900,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2002:
       (A) New budget authority, $357,600,000,000.
       (B) Outlays, $357,600,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       (19) The corresponding levels of gross interest on the 
     public debt are as follows:
       Fiscal year 1996: $369,900,000,000.
       Fiscal year 1997: $381,600,000,000.
       Fiscal year 1998: $390,900,000,000.
       Fiscal year 1999: $404,000,000,000.
       Fiscal year 2000: $416,100,000,000.
       Fiscal year 2001: $426,800,000,000.
       Fiscal year 2002: $436,100,000,000.
       (20) Allowances (920):
       Fiscal year 1996:
       (A) New budget authority, -$6,400,000,000.
       (B) Outlays, -$4,800,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 1997:
       (A) New budget authority, -$6,300,000,000.
       (B) Outlays, -$6,400,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 1998:
       (A) New budget authority, -$5,300,000,000.
       (B) Outlays, -$5,500,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 1999:
       (A) New budget authority, -$4,700,000,000.
       (B) Outlays, -$5,000,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2000:
       (A) New budget authority, -$3,700,000,000.
       (B) Outlays, -$4,000,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2001:
       (A) New budget authority, -$3,700,000,000.
       (B) Outlays, -$4,000,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2002:
       (A) New budget authority, -$3,700,000,000.
       (B) Outlays, -$4,100,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       (21) Undistributed Offsetting Receipts (950):
       Fiscal year 1996:
       (A) New budget authority, -$33,700,000,000.
       (B) Outlays, -$33,700,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 1997:
       (A) New budget authority, -$34,200,000,000.
       (B) Outlays, -$34,200,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 1998:
       (A) New budget authority, -$36,400,000,000.
       (B) Outlays, -$36,400,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 1999:
       (A) New budget authority, -$35,500,000,000.
       (B) Outlays, -$35,500,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2000:
       (A) New budget authority, -$37,400,000,000.
       (B) Outlays, -$37,400,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2001:
       (A) New budget authority, -$36,800,000,000.
       (B) Outlays, -$36,800,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.

[[Page H6278]]

       Fiscal year 2002:
       (A) New budget authority, -$41,600,000,000.
       (B) Outlays, -$41,600,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.

     SEC. 105. RECONCILIATION.

       (a) Reconciliation of Spending Reductions.--
       (1) Senate committees.--Not later than September 22, 1995, 
     the committees named in this subsection shall submit their 
     recommendations to the Committee on the Budget of the Senate. 
     After receiving those recommendations, the Committee on the 
     Budget shall report to the Senate a reconciliation bill 
     carrying out all such recommendations without any substantive 
     revision.
       (A) Committee on agriculture, nutrition, and forestry.--The 
     Senate Committee on Agriculture, Nutrition, and Forestry 
     shall report changes in laws within its jurisdiction that 
     provide direct spending (as defined in section 250(c)(8) of 
     the Balanced Budget and Emergency Deficit Control Act of 
     1985) to reduce outlays $2,503,000,000 in fiscal year 1996, 
     $29,059,000,000 for the period of fiscal years 1996 through 
     2000, and $48,402,000,000 for the period of fiscal years 1996 
     through 2002.
       (B) Committee on armed services.--The Senate Committee on 
     Armed Services shall report changes in laws within its 
     jurisdiction that provide direct spending to reduce outlays 
     $1,571,000,000 in fiscal year 1996, $1,888,000,000 for the 
     period of fiscal years 1996 through 2000, and $2,199,000,000 
     for the period of fiscal years 1996 through 2002.
       (C) Committee on banking, housing, and urban affairs.--The 
     Senate Committee on Banking, Housing, and Urban Affairs shall 
     report changes in laws within its jurisdiction that provide 
     direct spending to reduce outlays $481,000,000 in fiscal year 
     1996, $1,698,000,000 for the period of fiscal years 1996 
     through 2000, and $2,391,000,000 for the period of fiscal 
     years 1996 through 2002.
       (D) Committee on commerce, science, and transportation.--
     The Senate Committee on Commerce, Science, and Transportation 
     shall report changes in laws within its jurisdiction that 
     provide direct spending to reduce outlays $114,000,000 in 
     fiscal year 1996, $9,088,000,000 for the period of fiscal 
     years 1996 through 2000, and $15,036,000,000 for the period 
     of fiscal years 1996 through 2002.
       (E) Committee on energy and natural resources.--The Senate 
     Committee on Energy and Natural Resources shall report 
     changes in laws within its jurisdiction that provide direct 
     spending to reduce outlays $354,000,000 in fiscal year 1996, 
     $4,292,000,000 for the period of fiscal years 1996 through 
     2000, and $4,001,000,000 for the period of fiscal years 1996 
     through 2002.
       (F) Committee on environment and public works.--The Senate 
     Committee on Environment and Public Works shall report 
     changes in laws within its jurisdiction that provide direct 
     spending to reduce outlays $118,000,000 in fiscal year 1996, 
     $1,308,000,000 for the period of fiscal years 1996 through 
     2000, and $2,250,000,000 for the period of fiscal years 1996 
     through 2002.
       (G) Committee on finance.--(i) The Senate Committee on 
     Finance shall report changes in laws within its jurisdiction 
     that provide direct spending to reduce outlays 
     $15,328,000,000 in fiscal year 1996, $272,974,000,000 for the 
     period of fiscal years 1996 through 2000, and 
     $530,359,000,000 for the period of fiscal years 1996 through 
     2002.
       (ii) The Senate Committee on Finance shall report changes 
     in laws to increase the statutory limit on the public debt to 
     not more than $5,500,000,000,000.
       (H) Committee on governmental affairs.--The Senate 
     Committee on Governmental Affairs shall report changes in 
     laws within its jurisdiction to reduce the deficit 
     $524,000,000 in fiscal year 1996, $5,357,000,000 for the 
     period of fiscal years 1996 through 2000, and 
     $9,844,000,000 for the period of fiscal years 1996 through 
     2002.
       (I) Committee on the judiciary.--The Senate Committee on 
     the Judiciary shall report changes in laws within its 
     jurisdiction that provide direct spending to reduce outlays 
     $0 in fiscal year 1996, $238,000,000 for the period of fiscal 
     years 1996 through 2000, and $476,000,000 for the period of 
     fiscal years 1996 through 2002.
       (J) Committee on labor and human resources.--The Senate 
     Committee on Labor and Human Resources shall report changes 
     in laws within its jurisdiction that provide direct spending 
     to reduce outlays $809,000,000 in fiscal year 1996, 
     $6,956,000,000 for the period of fiscal years 1996 through 
     2000, and $10,779,000,000 for the period of fiscal years 1996 
     through 2002.
       (K) Committee on veterans' affairs.--The Senate Committee 
     on Veterans' Affairs shall report changes in laws within its 
     jurisdiction that provide direct spending to reduce outlays 
     $274,000,000 in fiscal year 1996, $3,614,000,000 for the 
     period of fiscal years 1996 through 2000, and $6,392,000,000 
     for the period of fiscal years 1996 through 2002.
       (2)  House committees.--
       (A) General rules.--(i) Not later than September 22, 1995, 
     the House committees named in clauses (i) through (xii) of 
     subparagraph (B) shall submit their recommendations to the 
     House Committee on the Budget. After receiving those 
     recommendations, the House Committee on the Budget shall 
     report to the House a reconciliation bill carrying out all 
     such recommendations without any substantive revision.
       (ii) Each committee named in clauses (i) through (xi) of 
     subparagraph (B) shall report changes in laws within its 
     jurisdiction that provide direct spending such that the total 
     level of direct spending for that committee for--
       (I) fiscal year 1996,
       (II) the 5-year period beginning with fiscal year 1996 and 
     ending with fiscal year 2000, and
       (III) the 7-year period beginning with fiscal year 1996 and 
     ending with fiscal year 2002,

     does not exceed the total level of direct spending in that 
     period in the clause applicable to that committee.
       (iii) Each committee named in clauses (i)(II), (iv)(II), 
     (v)(II), and (vi)(II) of subparagraph (B) shall report 
     changes in laws within its jurisdiction as set forth in the 
     clause applicable to that committee.
       (iv) The Committee on Ways and Means shall carry out 
     subparagraph (B)(xii).
       (B) Committee amounts.--(i)(I) The House Committee on 
     Agriculture: $10,506,000,000 in outlays in fiscal year 1996, 
     $44,741,000,000 in outlays in fiscal years 1996 through 2000, 
     and $59,232,000,000 in outlays in fiscal years 1996 through 
     2002.
       (II) In addition to the changes in law reported pursuant to 
     subclause (I), the House Committee on Agriculture shall 
     report changes in laws within its jurisdiction that provide 
     direct spending (other than that defined within subparagraph 
     (A) or (B) of section 250(c)(8) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985) such that the total 
     level of direct spending (as so defined) for that committee 
     does not exceed: $26,748,000,000 in outlays in fiscal year 
     1996, $133,246,000,000 in outlays in fiscal years 1996 
     through 2000, and $192,270,000,000 in outlays in fiscal years 
     1996 through 2002.
       (ii) The House Committee on Banking and Financial Services: 
     -$13,087,000,000 in outlays in fiscal year 1996, 
     -$50,061,000,000 in outlays in fiscal years 1996 through 
     2000, and -$65,112,000,000 in outlays in fiscal years 1996 
     through 2002.
       (iii) The House Committee on Commerce: $285,537,000,000 in 
     outlays in fiscal year 1996, $1,592,240,000,000 in outlays in 
     fiscal years 1996 through 2000, and $2,361,708,000,000 in 
     outlays in fiscal years 1996 through 2002.
       (iv)(I) The House Committee on Economic and Educational 
     Opportunities: $16,026,000,000 in outlays in fiscal year 
     1996, $77,346,000,000 in outlays in fiscal years 1996 through 
     2000, and $110,936,000,000 in outlays in fiscal years 1996 
     through 2002.
       (II) In addition to changes in law reported pursuant to 
     subclause (I), the House Committee on Economic and 
     Educational Opportunities shall report program changes in 
     laws within its jurisdiction that would result in a reduction 
     in outlays as follows: -$720,000,000 in fiscal year 1996, 
     -$5,810,000,000 in fiscal years 1996 through 2000, and 
     -$8,770,000,000 in fiscal years 1996 through 2002.
       (v)(I) The House Committee on Government Reform and 
     Oversight: $57,743,000,000 in outlays in fiscal year 1996, 
     $310,364,000,000 in outlays in fiscal years 1996 through 
     2000, and $449,583,000,000 in outlays in fiscal years 1996 
     through 2002.
       (II) In addition to changes in law reported pursuant to 
     subclause (I), the House Committee on Government Reform and 
     Oversight shall report changes in laws within its 
     jurisdiction that would reduce the deficit by: $85,000,000 in 
     fiscal year 1996, $775,000,000 in fiscal years 1996 through 
     2000, and $1,127,000,000 in fiscal years 1996 through 2002.
       (vi)(I) The House Committee on International Relations: 
     $14,243,000,000 in outlays in fiscal year 1996, 
     $62,072,000,000 in outlays in fiscal years 1996 through 2000, 
     and $83,221,000,000 in outlays in fiscal years 1996 through 
     2002.
       (II) In addition to changes in law reported pursuant to 
     subclause (I), the House Committee on International Relations 
     shall report changes in laws within its jurisdiction that 
     would reduce the deficit by: $1,000,000 in fiscal year 1996, 
     $14,000,000 in fiscal years 1996 through 2000, and 
     $22,000,000 in fiscal years 1996 through 2002.
       (vii) The House Committee on the Judiciary: $2,580,000,000 
     in outlays in fiscal year 1996, $13,734,000,000 in outlays in 
     fiscal years 1996 through 2000, and $19,530,000,000 in 
     outlays in fiscal years 1996 through 2002.
       (viii) The House Committee on National Security: 
     $39,601,000,000 in outlays in fiscal year 1996, 
     $226,931,000,000 in outlays in fiscal years 1996 through 
     2000, and $331,210,000,000 in outlays in fiscal years 1996 
     through 2002.
       (ix) The House Committee on Resources: $1,535,000,000 in 
     outlays in fiscal year 1996, $7,816,000,000 in outlays in 
     fiscal years 1996 through 2000, and $12,871,000,000 in 
     outlays in fiscal years 1996 through 2002.
       (x) The House Committee on Transportation and 
     Infrastructure: $16,615,000,000 in outlays in fiscal year 
     1996, $83,070,000,000 in outlays in fiscal years 1996 through 
     2000, and $116,811,000,000 in outlays in fiscal years 1996 
     through 2002.
       (xi) The House Committee on Veterans' Affairs: 
     $19,041,000,000 in outlays in fiscal year 1996, 
     $106,163,000,000 in outlays in fiscal years 1996 through 
     2000, and $154,864,000,000 in outlays in fiscal years 1996 
     through 2002.
       (xii)(I) The House Committee on Ways and Means shall report 
     changes in laws within its jurisdiction that provide direct 
     spending such that the total level of direct spending for 
     that committee for--
       (aa) fiscal year 1996,
       (bb) the 5-year period beginning with fiscal year 1996 and 
     ending with fiscal year 2000, and
       (cc) the 7-year period beginning with fiscal year 1996 and 
     ending with fiscal year 2002,

     does not exceed the following level in that period: 
     $349,172,000,000 in outlays in fiscal year 1996, 
     $2,010,751,000,000 in outlays in fiscal years 1996 through 
     2000, and $3,002,706,000,000 in outlays in fiscal years 1996 
     through 2002.
       (II) The House Committee on Ways and Means shall report 
     changes in laws within its jurisdiction such that the total 
     level of revenues for that committee for fiscal year 2000 is 
     not less than $1,304,215,000,000 and for fiscal years 1996 
     through 2002 is not less than $17,938,254,000,000.
       (III) The House Committee on Ways and Means shall report 
     changes in laws to increase

[[Page H6279]]

     the statutory limit on the public debt to not more than 
     $5,500,000,000,000.
       (C) Definition.--For purposes of this paragraph, the term 
     ``direct spending'' has the meaning given to such term in 
     section 250(c)(8) of the Balanced Budget and Emergency 
     Deficit Control Act of 1985.
       (b) Reconciliation of Revenue Reductions in the Senate.--
       (1) Certification.--In the Senate, upon the certification 
     pursuant to section 205(a) of this resolution, the Senate 
     Committee on Finance shall submit its recommendations 
     pursuant to paragraph (2) to the Senate Committee on the 
     Budget. After receiving those recommendations, the Committee 
     on the Budget shall add these recommendations to the 
     recommendations submitted pursuant to subsection (a) and 
     report a reconciliation bill carrying out all such 
     recommendations without any substantive revision.
       (2) Committee on finance.--Not later than five days after 
     the certification made pursuant to section 205(a), the Senate 
     Committee on Finance shall report changes in laws within its 
     jurisdiction necessary to reduce revenues by not more than 
     $50,000,000,000 in fiscal year 2002 and $245,000,000,000 for 
     the period of fiscal years 1996 through 2002.
             TITLE II--BUDGETARY RESTRAINTS AND RULEMAKING

     SEC. 201. DISCRETIONARY SPENDING LIMITS.

       (a) Definition.--As used in this section and for the 
     purposes of allocations made pursuant to section 302(a) or 
     602(a) of the Congressional Budget Act of 1974, for the 
     discretionary category, the term ``discretionary spending 
     limit'' means--
       (1) with respect to fiscal year 1996--
       (A) for the defense category $265,406,000,000 in new budget 
     authority and $264,043,000,000 in outlays; and
       (B) for the nondefense category $219,668,000,000 in new 
     budget authority and $267,725,000,000 in outlays;
       (2) with respect to fiscal year 1997--
       (A) for the defense category $267,962,000,000 in new budget 
     authority and $265,734,000,000 in outlays; and
       (B) for the nondefense category $214,468,000,000 in new 
     budget authority and $254,561,000,000 in outlays;
       (3) with respect to fiscal year 1998--
       (A) for the defense category $269,731,000,000 in new budget 
     authority and $264,531,000,000 in outlays; and
       (B) for the nondefense category $220,961,000,000 in new 
     budget authority and $248,101,000,000 in outlays;
       (4) with respect to fiscal year 1999, for the discretionary 
     category $482,207,000,000 in new budget authority and 
     $510,482,000,000 in outlays;
       (5) with respect to fiscal year 2000, for the discretionary 
     category $489,379,000,000 in new budget authority and 
     $514,234,000,000 in outlays;
       (6) with respect to fiscal year 2001, for the discretionary 
     category $496,601,000,000 in new budget authority and 
     $516,403,000,000 in outlays; and
       (7) with respect to fiscal year 2002, for the discretionary 
     category $498,837,000,000 in new budget authority and 
     $515,075,000,000 in outlays;

     as adjusted for changes in concepts and definitions and 
     emergency appropriations.
       (b) Point of Order in the Senate.--
       (1) In general.--Except as provided in paragraph (2), it 
     shall not be in order in the Senate to consider--
       (A) any concurrent resolution on the budget for fiscal year 
     1996, 1997, or 1998 (or amendment, motion, or conference 
     report on such a resolution) that provides discretionary 
     spending in excess of the sum of the defense and nondefense 
     discretionary spending limits for such fiscal year;
       (B) any concurrent resolution on the budget for fiscal 
     years 1999, 2000, 2001, or 2002 (or amendment, motion, or 
     conference report on such a resolution) that provides 
     discretionary spending in excess of the discretionary 
     spending limit for such fiscal year; or
       (C) any appropriations bill or resolution (or amendment, 
     motion, or conference report on such appropriations bill or 
     resolution) for fiscal year 1995, 1996, 1997, 1998, 1999, 
     2000, 2001, or 2002 that would exceed any of the 
     discretionary spending limits in this section or 
     suballocations of those limits made pursuant to section 
     602(b) of the Congressional Budget Act of 1974.
       (2) Exception.--
       (A) In general.--This section shall not apply if a 
     declaration of war by the Congress is in effect or if a joint 
     resolution pursuant to section 258 of the Balanced Budget and 
     Emergency Deficit Control Act of 1985 has been enacted.
       (B) Enforcement of discretionary limits.--Paragraph (1)(A) 
     and the application of paragraph (1)(B) to fiscal years 1997 
     through 2002 shall not take effect until the enactment of a 
     reconciliation bill pursuant to section 105 of this 
     resolution.
       (c) Waiver.--This section may be waived or suspended in the 
     Senate only by the affirmative vote of three-fifths of the 
     Members, duly chosen and sworn.
       (d) Appeals.--Appeals in 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 
     concurrent resolution, bill, or joint resolution, as the case 
     may be. An affirmative vote of three-fifths of the Members of 
     the Senate, duly chosen and sworn, shall be required in the 
     Senate to sustain an appeal of the ruling of the Chair on a 
     point of order raised under this section.
       (e) Determination of Budget Levels.--For purposes of this 
     section, the levels of new budget authority, outlays, new 
     entitlement authority, and revenues for a fiscal year shall 
     be determined on the basis of estimates made by the Committee 
     on the Budget of the Senate.

     SEC. 202. EXTENSION OF PAY-AS-YOU-GO POINT OF ORDER.

       (a) Purpose.--The Senate declares that it is essential to--
       (1) ensure continued compliance with the balanced budget 
     plan set forth in this resolution; and
       (2) continue the pay-as-you-go enforcement system.
       (b) Point of Order.--
       (1) In general.--It shall not be in order in the Senate to 
     consider any direct spending or revenue legislation that 
     would increase the deficit for any one of the three 
     applicable time periods as measured in paragraphs (5) and 
     (6).
       (2) Applicable time periods.--For purposes of this 
     subsection the term ``applicable time period'' means any one 
     of the three following periods:
       (A) The first year covered by the most recently adopted 
     concurrent resolution on the budget.
       (B) The period of the first five fiscal years covered by 
     the most recently adopted concurrent resolution on the 
     budget.
       (C) The period of the five fiscal years following the first 
     five fiscal years covered in the most recently adopted 
     concurrent resolution on the budget.
       (3) Direct-spending legislation.--For purposes of this 
     subsection and except as provided in paragraph (4), the term 
     ``direct-spending legislation'' means any bill, joint 
     resolution, amendment, motion, or conference report that 
     affects direct spending as that term is defined by and 
     interpreted for purposes of the Balanced Budget and Emergency 
     Deficit Control Act of 1985.
       (4) Exclusion.--For purposes of this subsection, the terms 
     ``direct-spending legislation'' and ``revenue legislation'' 
     do not include--
       (A) any concurrent resolution on the budget; or
       (B) any provision of legislation that affects the full 
     funding of, and continuation of, the deposit insurance 
     guarantee commitment in effect on the date of enactment of 
     the Budget Enforcement Act of 1990.
       (5) Baseline.--Estimates prepared pursuant to this section 
     shall--
       (A) use the baseline used for the most recently adopted 
     concurrent resolution on the budget; and
       (B) be calculated under the requirements of subsections (b) 
     through (d) of section 257 of the Balanced Budget and 
     Emergency Deficit Control Act of 1985 for fiscal years beyond 
     those covered by that concurrent resolution on the budget.
       (6) Prior surplus.--If direct spending or revenue 
     legislation increases the deficit when taken individually, 
     then it must also increase the deficit when taken together 
     with all direct spending and revenue legislation enacted 
     since the beginning of the calendar year not accounted for in 
     the baseline under paragraph (5)(A), except that the direct 
     spending or revenue effects resulting from legislation 
     enacted pursuant to the reconciliation instructions included 
     in that concurrent resolution on the budget shall not be 
     available.
       (c) Waiver.--This section may be waived or suspended in the 
     Senate only by the affirmative vote of three-fifths of the 
     Members, duly chosen and sworn.
       (d) Appeals.--Appeals in 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 of the Senate, duly chosen and 
     sworn, shall be required in the Senate to sustain an appeal 
     of the ruling of the Chair on a point of order raised under 
     this section.
       (e) Determination of Budget Levels.--For purposes of this 
     section, the levels of new budget authority, outlays, and 
     revenues for a fiscal year shall be determined on the basis 
     of estimates made by the Committee on the Budget of the 
     Senate.
       (f) Conforming Amendment.--Section 23 of House Concurrent 
     Resolution 218 (103d Congress) is repealed.
       (g) Sunset.--Subsections (a) through (e) of this section 
     shall expire September 30, 2002.

     SEC. 203. TAX RESERVE FUND IN THE SENATE.

       (a) In General.--In the Senate, on or after October 1, 
     1995, revenue and spending aggregates shall be reduced and 
     allocations may be revised for legislation that reduces 
     revenues within a committee's jurisdiction if such a 
     committee or the committee of conference on such legislation 
     reports such legislation, if, to the extent that the costs of 
     such legislation are not included in this concurrent 
     resolution on the budget, the enactment of such legislation 
     will not increase the deficit in this resolution for--
       (1) fiscal year 1996;
       (2) the period of fiscal years 1996 through 2000; or
       (3) the period of fiscal years 2001 through 2005.
       (b) Revised Allocations.--Upon the reporting of legislation 
     pursuant to subsection (a), and again upon the submission of 
     a conference report on such legislation (if a conference 
     report is submitted), the Chairman of the Committee on the 
     Budget of the Senate may file with the Senate appropriately 
     revised allocations under sections 302(a) and 602(a) of the 
     Congressional Budget Act of 1974 and revised functional 
     levels and aggregates to carry out this section. These 
     revised allocations, functional levels, and aggregates shall 
     be considered for the purposes of the Congressional Budget 
     Act of 1974 as allocations, functional levels, and aggregates 
     contained in this concurrent resolution on the budget.
       (c) Reporting Revised Allocations.--The appropriate 
     committee shall report appropriately

[[Page H6280]]

     revised allocations pursuant to sections 302(b) and 602(b) of 
     the Congressional Budget Act of 1974 to carry out this 
     section.

     SEC. 204. WELFARE REFORM RESERVE FUND.

       (a) In General.--
       (1) Direct spending.--In the Senate and the House of 
     Representatives, budget authority and outlays, and (in the 
     House) entitlement authority, allocated to a committee may be 
     revised, pursuant to subsection (b)(1), for legislation in 
     that committee's jurisdiction that has the effect of reducing 
     direct spending for a welfare program and authorizes an 
     increase in discretionary spending for that welfare program, 
     if that committee reports such legislation.
       (2) Discretionary spending.--In the Senate and the House of 
     Representatives, budget authority and outlays allocated to 
     the Committee on Appropriations, and (in the Senate) the 
     discretionary spending limits in section 201 of this 
     resolution, may be increased, pursuant to subsection (b)(2), 
     for an appropriation measure that provides new discretionary 
     budget authority for a welfare program pursuant to authority 
     provided in legislation described in paragraph (1), if the 
     Committee on Appropriations reports such an appropriation 
     measure.
       (b) Revised Allocations.--
       (1) Direct spending.--Upon reporting of legislation 
     pursuant to subsection (a)(1) and again upon submission of a 
     conference report on such legislation, the chairman of the 
     Committee on the Budget of the House or Senate (whichever is 
     appropriate) may submit to that House revised allocations 
     under sections 302(a) and 602(a) of the Congressional Budget 
     Act of 1974 to carry out this section. Such revised 
     allocations shall be considered for the purposes of the 
     Congressional Budget Act of 1974 to be the allocations under 
     this concurrent budget resolution. In the Senate, the 
     revision shall reflect that amount of the direct spending 
     savings estimated to result from such legislation to the 
     extent they exceed the savings assumed in this concurrent 
     resolution on the budget.
       (2) Discretionary spending.--Upon reporting of legislation 
     pursuant to subsection (a)(2) and again upon the submission 
     of a conference report on such legislation, the chairman of 
     the Committee on the Budget of the House or Senate (whichever 
     is appropriate) may submit to that House revised allocations 
     under sections 302(a) and 602(a) of the Congressional Budget 
     Act of 1974 and revised discretionary spending limits. The 
     revision shall reflect that amount of the new discretionary 
     budget authority provided for the welfare program up to the 
     level authorized in the legislation reported pursuant to 
     subsection (a)(1), except that the budget authority and 
     outlay revisions shall not exceed the adjustments made 
     pursuant to paragraph (1) for that welfare program. Such 
     revised allocations and discretionary spending limits shall 
     be considered, for the purposes of the Congressional Budget 
     Act of 1974, to be the allocations and spending limits under 
     this concurrent resolution on the budget.
       (c) Committee on Appropriations.--The Committees on 
     Appropriations may report appropriately revised 
     suballocations pursuant to sections 302(b)(1) and 602(b)(1) 
     of the Congressional Budget Act of 1974 following the 
     revision of the allocations pursuant to subsection (b)(2), to 
     carry out this section.

     SEC. 205. BUDGET SURPLUS ALLOWANCE.

       (a) CBO Certification of Legislative Submissions.--
       (1) Submission of legislation.--Upon the submission of 
     legislative recommendations pursuant to section 105(a) and 
     prior to the submission of a conference report on legislation 
     reported pursuant to section 105, the chairman of the 
     Committee on the Budget of the Senate and the House of 
     Representatives (as the case may be) shall submit such 
     recommendations to the Congressional Budget Office.
       (2) Basis of estimates.--For the purposes of preparing an 
     estimate pursuant to this subsection, the Congressional 
     Budget Office shall include the budgetary impact of all 
     legislation enacted to date, use the economic and technical 
     assumptions underlying this resolution, and assume compliance 
     with the total discretionary spending levels assumed in this 
     resolution unless superseded by law.
       (3) Estimate of legislation.--The Congressional Budget 
     Office shall provide an estimate to the Chairman of the 
     Budget Committee of the Senate and the House of 
     Representatives (as the case may be) and certify whether the 
     legislative recommendations would balance the total budget by 
     fiscal year 2002.
       (4) Certification.--If the Congressional Budget Office 
     certifies that such legislative recommendations would balance 
     the total budget by fiscal year 2002, the Chairman shall 
     submit such certification in his respective House.
       (b) Procedure in the Senate.--
       (1) Adjustments.--For the purposes of points of order under 
     the Congressional Budget Act of 1974 and this concurrent 
     resolution on the budget, the appropriate budgetary 
     allocations and aggregates shall be revised to be consistent 
     with the instructions set forth in section 105(b) for 
     legislation that reduces revenues by providing family tax 
     relief and incentives to stimulate savings, investment, job 
     creation, and economic growth.
       (2) Revised aggregates.--Upon the reporting of legislation 
     pursuant to section 105(b) and again upon the submission of a 
     conference report on such legislation, the Chairman of the 
     Committee on the Budget of the Senate shall submit 
     appropriately revised budgetary allocations and aggregates.
       (3) Effect of revised allocations and aggregates.--Revised 
     allocations and aggregates submitted under paragraph (2) 
     shall be considered for the purposes of the Congressional 
     Budget Act of 1974 as allocations and aggregates contained in 
     this resolution.
       (c) Contingencies.--This section shall not apply unless the 
     reconciliation legislation--
       (1) complies with the sum of the reconciliation directives 
     for the period of fiscal years 1996 through 2002 provided in 
     section 105(a); and
       (2) would balance the total budget for fiscal year 2002 and 
     the period of fiscal years 2002 through 2005.
       (d) Definitions.--For the purposes of this section, the 
     term ``balance the total budget'' means total outlays are 
     less than or equal to total revenues for a fiscal year or a 
     period of fiscal years.

     SEC. 206. SALE OF GOVERNMENT ASSETS.

       (a) Sense of the Congress.--It is the sense of the Congress 
     that--
       (1) the prohibition on scoring asset sales has discouraged 
     the sale of assets that can be better managed by the private 
     sector and generate receipts to reduce the Federal budget 
     deficit;
       (2) the President's fiscal year 1996 budget included 
     $8,000,000,000 in receipts from asset sales and proposed a 
     change in the asset sale scoring rule to allow the proceeds 
     from these sales to be scored;
       (3) assets should not be sold if such sale would increase 
     the budget deficit over the long run; and
       (4) the asset sale scoring prohibition should be repealed 
     and consideration should be given to replacing it with a 
     methodology that takes into account the long-term budgetary 
     impact of asset sales.
       (b) Budgetary Treatment.--For purposes of any concurrent 
     resolution on the budget and the Congressional Budget Act of 
     1974, the amounts realized from sales of assets shall be 
     scored with respect to the level of budget authority, 
     outlays, or revenues.
       (c) Definitions.--For purposes of this section, the term 
     ``sale of an asset'' shall have the same meaning as under 
     section 250(c)(21) of the Balanced Budget and Emergency 
     Deficit Control Act of 1985.
       (d) Treatment of Loan Assets.--For the purposes of this 
     section, the sale of loan assets or the prepayment of a loan 
     shall be governed by the terms of the Federal Credit Reform 
     Act of 1990.

     SEC. 207. CREDIT REFORM AND DIRECT STUDENT LOANS.

       For the purposes of any concurrent resolution on the budget 
     and the Congressional Budget Act of 1974, the cost of a 
     direct loan under the Federal direct student loan program 
     shall be the net present value, at the time when the direct 
     loan is disbursed, of the following cash flows for the 
     estimated life of the loan:
       (1) Loan disbursements.
       (2) Repayments of principal.
       (3) Payments of interest and other payments by or to the 
     Government over the life of the loan after adjusting for 
     estimated defaults, prepayments, fees, penalties, and other 
     recoveries.
       (4) Direct expenses, including--
       (A) activities related to credit extension, loan 
     origination, loan servicing, management of contractors, and 
     payments to contractors, other government entities, and 
     program participants;
       (B) collection of delinquent loans; and
       (C) writeoff and closeout of loans.

     SEC. 208. EXTENSION OF BUDGET ACT 60-VOTE ENFORCEMENT THROUGH 
                   2002.

       Notwithstanding section 275(b) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985 (as amended by sections 
     13112(b) and 13208(b)(3) of the Budget Enforcement Act of 
     1990), the second sentence of section 904(c) of the 
     Congressional Budget Act of 1974 (except insofar as it 
     relates to section 313 of that Act) and the final sentence of 
     section 904(d) of that Act (except insofar as it relates to 
     section 313 of that Act) shall continue to have effect as 
     rules of the Senate through (but no later than) September 30, 
     2002.

     SEC. 209. REPEAL OF IRS ALLOWANCE.

       Section 25 of House Concurrent Resolution 218 (103d 
     Congress, 2d Session) is repealed.

     SEC. 210. TAX REDUCTION CONTINGENT ON BALANCED BUDGET IN THE 
                   HOUSE OF REPRESENTATIVES

       (a) Estimates and Certification.--
       (1) Estimates.--Upon reporting a reconciliation bill to 
     carry out this resolution, the chairman of the Committee on 
     the Budget of the House shall submit such legislation to the 
     Director of the Congressional Budget Office (hereinafter in 
     this section referred to as the ``Director''). The Director 
     shall provide an estimate of whether the enactment of the 
     bill, as reported, would result in a balanced total budget by 
     fiscal year 2002.
       (2) Certification.--(A) If the enactment of the bill as 
     estimated by the Director would so balance the budget, the 
     chairman of the Committee on the Budget is authorized to so 
     certify.
       (B) If the enactment of the bill as estimated by the 
     Director would not so balance the budget, the chairman of the 
     Committee on the Budget shall notify the chairman of the 
     Committee on Rules. The Committee on Rules may recommend to 
     the House a resolution providing for the consideration of an 
     amendment in the nature of a substitute consisting of the 
     text of the reconciliation bill reported by the Committee on 
     the Budget, modified by amendments to achieve a balanced 
     budget by fiscal year 2002 and amendments described in 
     section 310(d) of the Congressional Budget Act of 1974, as an 
     original bill for purposes of amendment.
       (C) If the Committee on Rules so recommends, the chairman 
     of the Committee on the Budget shall submit the substitute 
     text to the Director, who shall provide an estimate of 
     whether the substitute text would balance the total budget by 
     fiscal year 2002. If the enactment of the bill as estimated 
     by the Director would so balance the budget, the chairman of 
     the Committee on the Budget is authorized to so certify.

[[Page H6281]]

       (3) Basis of estimate.--In preparing any estimate under 
     this section, the Director shall include the budgetary impact 
     of all legislation enacted through the date of submission of 
     that estimate and of all legislation incorporated by 
     reference in the reconciliation bill, use the economic and 
     technical assumptions underlying this resolution, assume 
     compliance with the total discretionary levels assumed in 
     this resolution unless superseded by law, and include changes 
     in outlays and revenues estimated to result from the economic 
     impact of balancing the budget by fiscal year 2002 as 
     estimated by the Congressional Budget Office in Table B-4 in 
     Appendix B of its Analysis of the President's Budgetary 
     Proposals for Fiscal Year 1996.
       (b) Procedure in the House of Representatives.--
       (1) Adjustments.--Upon certification by the chairman of the 
     Committee on the Budget of the House under subsection (a), 
     the chairman shall submit a report to the House that revises 
     the appropriate budgetary allocations, aggregates, and totals 
     to be consistent with the instructions set forth in section 
     105(a)(2)(B)(xii)(II).
       (2) Effect of revised allocations, aggregates, and 
     totals.--In the House of Representatives, revised 
     allocations, aggregates, and totals submitted under paragraph 
     (1) shall be deemed as the allocations, aggregates, and 
     totals contained in this resolution for all purposes under 
     the Congressional Budget Act of 1974.
       (3) Statement regarding point of order.--If the chairman of 
     the House Committee on the Budget does not certify a balanced 
     budget by 2002, then the reconciliation bill to carry out 
     this resolution would be subject to a point of order under 
     the Congressional Budget Act of 1974.

     SEC. 211. EXERCISE OF RULEMAKING POWERS.

       The Congress adopts the provisions of this title--
       (1) as an exercise of the rulemaking power of the Senate 
     and the House of Representatives, respectively, and as such 
     they shall be considered as part of the rules of each House, 
     or of that House to which they specifically apply, and such 
     rules shall supersede other rules only to the extent that 
     they are inconsistent therewith; and
       (2) with full recognition of the constitutional right of 
     either House to change those rules (so far as they relate to 
     that House) at any time, in the same manner, and to the same 
     extent as in the case of any other rule of that House.
 TITLE III--SENSE OF THE CONGRESS, HOUSE OF REPRESENTATIVES, AND SENATE

     SEC. 301. SENSE OF THE CONGRESS ON THE ELIMINATION OF FRAUD, 
                   WASTE, AND ABUSE IN THE MEDICARE SYSTEM.

       It is the sense of the Congress that, in order to meet the 
     aggregate levels in this budget resolution--
       (1) the committees of jurisdiction should give high 
     priority to proposals that identify, eliminate, and recover 
     funds expended from the medicare trust funds due to fraud and 
     abuse in the medicare program in order to address the long-
     term solvency of medicare; and
       (2) any funds recovered from enhanced anti-fraud and abuse 
     efforts should be used to enhance the solvency of medicare.

     SEC. 302. SENSE OF CONGRESS REGARDING PRIVATIZATION OF THE 
                   STUDENT LOAN MARKETING ASSOCIATION (SALLIE 
                   MAE).

       It is the sense of that the Student Loan Marketing 
     Association should be restructured as a private corporation.

     SEC. 303. SENSE OF THE CONGRESS REGARDING THE DEBT LIMIT.

       It is the sense of the Congress that--
       (1) the reconciliation legislation under section 105 of 
     this budget resolution should be enacted prior to passage of 
     legislation that will extend the public debt limit; and
       (2) the extension of the public debt should be set at 
     levels and for durations that ensure a balanced budget by 
     fiscal year 2002, consistent with this budget resolution.

     SEC. 304. SENSE OF THE CONGRESS ASSUMPTIONS.

       It is the sense of the Congress that the aggregates and 
     functional levels included in this budget resolution assume 
     that--
       (1) Federal programs should be restructured to meet 
     identified priorities in the most effective and efficient 
     manner, to eliminate obsolete programs, and to reduce 
     duplication;
       (2) Federal programs should be reviewed to determine 
     whether they are more appropriately the responsibility of the 
     States and, for programs that should be under State 
     responsibility, that--
       (A) Federal funding of these programs should be provided in 
     a manner that rewards work, promotes families, and provides a 
     helping hand during times of crisis;
       (B) the programs should be returned in the form of block 
     grants that provide maximum flexibility to the States and 
     localities to ensure the maximum benefit at the least cost to 
     the American taxpayer;
       (C) Federal funds should not supplant existing expenditures 
     by other sources, both public and private; and
       (D) the Federal interest in the program should be protected 
     with adequate safeguards, such as auditing or maintenance of 
     effort provisions, and that Federal goals and principles may 
     be appropriate;
       (3) Congress should examine Federal functions to determine 
     those that could be more conveniently, efficiently, and 
     effectively performed by the private sector and, in order to 
     facilitate the privatization of these functions--
       (A) provisions of law that prohibit or ``lockout'' the 
     private sector from competing for the provision of certain 
     services should be eliminated;
       (B) section 257(e) of the Balanced Budget and Emergency 
     Deficit Control Act of 1985 should be repealed or modified to 
     permit the sale of assets when appropriate to privatization 
     goals;
       (C) each Federal agency and department should be encouraged 
     to develop and evaluate privatization initiatives; and
       (D) the ``Common Rule'', modified by Executive Order 12803, 
     should be modified to delete grant repayment provisions which 
     restrict local governments and prevent private sector 
     investments in Federal-aid facilities;
       (4) Congress, in fulfilling its responsibility to future 
     generations, should--
       (A) enact a plan that balances the budget by 2002 and 
     develop a regimen for paying off the Federal debt; and
       (B) once the budget is in balance, use the surpluses to 
     implement that regimen;
       (5) in considering child nutrition programs--
       (A) reductions in nutrition program spending should be 
     achieved without compromising the nutritional well-being of 
     program recipients;
       (B) school lunches should continue to meet minimal 
     nutrition requirements and should not have to compete with 
     alternative foods of minimal nutritional value during lunch 
     hours; and
       (C) the content of the Women, Infants, and Children (WIC) 
     food package should continue to be based on scientific 
     evidence; and
       (6) science and technology development are critical to 
     sustainable long-term economic growth and priority should be 
     given to Federal funding for science and basic and applied 
     research.

     SEC. 305. SENSE OF THE SENATE THAT TAX REDUCTIONS SHOULD 
                   BENEFIT WORKING FAMILIES.

       It is the sense of the Senate that this concurrent 
     resolution on the budget assumes any reductions in taxes 
     should be structured to benefit working families by providing 
     family tax relief and incentives to stimulate savings, 
     investment, job creation, and economic growth.

     SEC. 306. SENSE OF THE SENATE ON THE DISTRIBUTION OF 
                   AGRICULTURE SAVINGS.

       It is the sense of the Senate that, in response to the 
     reconciliation instructions in section 105 of this 
     resolution, the Senate Committee on Agriculture, Nutrition, 
     and Forestry should provide that no more than 20 percent of 
     the savings be achieved in commodity programs.

     SEC. 307. SENSE OF THE SENATE ON THE ESTABLISHMENT OF A 
                   MEDICARE SOLVENCY COMMISSION.

       It is the sense of the Senate that, in order to meet the 
     aggregates and levels in this budget resolution--
       (1) a special bipartisan commission should be established 
     immediately to make recommendations on the most appropriate 
     response to the short-term solvency crisis facing medicare;
       (2) the commission should report its recommendations under 
     paragraph (1) at the earliest possible date, in order that 
     the committees of jurisdiction may give due consideration to 
     those recommendations in fashioning their response pursuant 
     to section 105 of this resolution; and
       (3) the commission should study, evaluate, and make 
     recommendations to sustain the long-term viability of the 
     medicare system and should report those recommendations to 
     Congress by February 1, 1996.

     SEC. 308. SENSE OF THE SENATE REGARDING PROTECTION OF 
                   CHILDREN'S HEALTH.

       It is the sense of the Senate that, in meeting the 
     aggregates and levels in this resolution, the committees of 
     jurisdiction of the Senate--
       (1) should give careful consideration to the impact of 
     medicaid reform legislation on children's health; and
       (2) should encourage States to place a priority on funding 
     for low-income pregnant women and children within any 
     medicaid reform legislation that allows greater flexibility 
     to the States in the delivery of care and in controlling the 
     rate of growth in costs under the program.

     SEC. 309. SENSE OF THE SENATE ON THE ASSUMPTIONS.

       It is the sense of the Senate that the aggregates and 
     functional levels included in this budget resolution assume 
     that--
       (1) beginning with fiscal year 1997, the Federal government 
     should establish, implement, and maintain a uniform 
     accounting system and provide financial statements in 
     accordance with accepted accounting principles under 
     standards and interpretations recommended by the Federal 
     Accounting Standards Advisory Board;
       (2) Congress should revise the Internal Revenue Code to 
     ensure that very wealthy individuals are not able to reduce 
     or avoid United States income, estate or gift tax liability 
     by relinquishing their U.S. citizenship and, that, any 
     savings resulting from this revision should be used to reduce 
     the deficit;
       (3) in furtherance of the goals of the Decade of the Brain, 
     full funding should be provided for research on brain 
     diseases and disorders;
       (4) the essential air service program should receive 
     sufficient funding to continue to provide air service to 
     small rural communities;
       (5) funds will be made available to reimburse States for 
     the costs of implementing the National Voter Registration Act 
     of 1993; and
       (6) a temporary nonpartisan commission should be 
     established to make recommendations concerning the 
     appropriateness and accuracy of the methodology and 
     calculations that determine the Consumer Price Index (CPI) 
     and those recommendations should be submitted to the Bureau 
     of Labor Statistics at the earliest possible date.

     SEC. 310. HOUSE STATEMENT ON AGRICULTURE SAVINGS.

       The House of Representatives shall re-examine budget 
     reductions for agricultural programs in the United States 
     Department of Agriculture for fiscal years 1999 and 2000 
     unless the following conditions are met:

[[Page H6282]]

       (1) Land values on agricultural land on January 1, 1998, 
     are at least 95 percent of the same values on the date of 
     adoption of this resolution.
       (2) There is enacted into law regulatory relief for the 
     agricultural sector in the areas of wetlands regulation, the 
     Endangered Species Act, private property rights and cost-
     benefit analyses of proposed regulations.
       (3) There is tax relief for producers in the form of 
     capital gains tax reduction, increased estate tax exemptions 
     and mechanisms to average tax loads over strong and weak 
     income years.
       (4) There is no government interference in the 
     international market in the form of agricultural trade 
     embargoes in effect and there is successful implementation 
     and enforcement of trade agreements, including the General 
     Agreement on Tariffs and Trade (GATT) and the North American 
     Free Trade Agreement (NAFTA) to lower export subsidies and 
     reduce import barriers to trade imposed by foreign 
     governments.

     SEC. 311. SENSE OF THE HOUSE ON BASELINES.

       (a) Findings.--The House of Representatives finds that--
       (1) baselines are projections of future spending if 
     existing policies remain unchanged;
       (2) under baseline assumptions, spending automatically 
     rises with inflation even if such increases are not provided 
     under current law;
       (3) baseline budgeting is inherently biased against 
     policies that would reduce the projected growth in spending 
     because such policies are scored as a reduction from a rising 
     baseline; and
       (4) the baseline concept has encouraged Congress to 
     abdicate its constitutional responsibility to control the 
     public purse for programs which are automatically funded 
     under existing law.
       (b) Sense of the House.--It is the sense of the House of 
     Representatives that baseline budgeting should be replaced 
     with a form of budgeting that requires full justification and 
     analysis of budget proposals and maximizes congressional 
     accountability for public spending.

     SEC. 312. SENSE OF THE HOUSE REGARDING A COMMISSION ON THE 
                   SOLVENCY OF THE FEDERAL MILITARY AND CIVIL 
                   SERVICE RETIREMENT FUNDS.

       (a) Findings.--The House of Representatives finds that the 
     Federal retirement system, for both military and civil 
     service retirees, currently has liabilities of 
     $1,100,000,000,000, while holding assets worth 
     $340,000,000,000 and anticipating employee contributions of 
     $220,000,000,000, which leaves an unfunded liability of 
     $540,000,000,000,000.
       (b) Sense of House.--It is the sense of the House of 
     Representatives that a high-level commission should be 
     convened to study the problems associated with the Federal 
     retirement system and make recommendations that will ensure 
     the long-term solvency of the military and civil service 
     retirement funds.

     SEC. 313. SENSE OF THE HOUSE REGARDING THE REPEAL OF HOUSE 
                   RULE XLIX.

       It is the sense of the House that rule XLIX of the Rules of 
     the House of Representatives (popularly known as the Gephardt 
     rule) should be repealed.

     SEC. 314. SENSE OF THE HOUSE ON EMERGENCIES.

       (a) Findings.--The House of Representative finds that--
       (1) The Budget Enforcement Act of 1990 exempted from the 
     discretionary spending limits and the Pay-As-You-Go 
     requirements for entitlement and tax legislation funding 
     requirements that are designated by Congress and the 
     President as an emergency.
       (2) Congress and the President have increasingly misused 
     the emergency designation by--
       (A) designating funding as an emergency that is neither 
     unforeseen nor a genuine emergency; and
       (B) circumventing spending limits or passing controversial 
     items that would not pass scrutiny in a free-standing bill.
       (b) Sense of the House.--It is the sense of the House that 
     Congress should study alternative approaches to budgeting for 
     emergencies, including codifying the definition of an 
     emergency and establishing contingency funds to pay for 
     emergencies.

       And the Senate agree to the same.

     John R. Kasich,
     Dave Hobson,
     Bob Walker,
     Jim Kolbe,
     Christopher Shays,
     Wally Herger,
     Wayne Allard,
     Bob Franks,
     Steve Largent,
     Sue Myrick,
     Mike Parker,
                                Managers on the Part of the House.

     Pete Domenici,
     Chuck Grassley,
     Don Nickles,
     Trent Lott,
     Hank Brown,
     Slade Gorton,
     Judd Gregg,
                               Managers on the Part of the Senate.

       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

       The managers on the part of the Senate and the House at the 
     conference on the disagreeing votes of the two Houses on the 
     amendment of the Senate to the concurrent resolution (House 
     Concurrent Resolution 67) setting forth the congressional 
     budget for the United States Budget for the fiscal years 
     1996, 1997, 1998, 1999, 2000, 2001, and 2002, submit the 
     following joint statement to the House and the Senate in 
     explanation of the effect of the action agreed upon by the 
     managers and recommended in the accompanying conference 
     report:
       The Senate amendment struck out all of the House resolution 
     after the resolving clause and inserted a substitute text.
       The House recedes from its disagreement to the amendment of 
     the Senate with an amendment which is a substitute for the 
     House resolution and the Senate amendment.

                EXPLANATION OF THE CONFERENCE AGREEMENT


             aggregates and functional level summary tables

(Secs. 2 and 3 of the House resolution, Secs. 101 and 104 of the Senate 
     amendment, and Secs. 101 and 104 of the conference agreement)

     Aggregates and function levels
       The following tables show the budget aggregates and 
     functional levels included in the conference agreement, the 
     House resolution, and the Senate amendment. While the 
     conference agreement includes only the on-budget figures, 
     pursuant to law, these tables also display the off-budget and 
     total budget figures. The last table in this part compares 
     the conference agreement to the 1995 and current law levels.

                                                                    HOUSE RESOLUTION
                                                                  [Dollars in billions]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                     1995       1996       1997       1998       1999       2000       2001       2002
--------------------------------------------------------------------------------------------------------------------------------------------------------
050: National Defense..................................       BA     $261.4     $267.3     $269.3     $277.3     $281.3     $287.3     $287.3     $287.2
                                                              OT      269.6      265.1      265.3      265.3      271.3      279.3      279.3     $279.2
150: International Affairs.............................       BA       18.9       15.8       13.7       11.3        9.7       10.5       12.0       12.0
                                                              OT       18.9       17.0       15.1       13.3       11.5       10.0       11.1       10.7
250: Science, Space and Technology.....................       BA       17.2       16.7       16.3       15.7       15.3       14.9       14.9       14.9
                                                              OT       17.5       16.9       16.6       16.0       15.4       15.0       14.9       14.9
270: Energy............................................       BA        6.3        4.4        3.9        3.6        3.9        3.6        3.6        3.5
                                                              OT        4.9        4.3        3.2        2.9        3.1        2.7        2.5        2.3
300: Natural Resources and Environment.................       BA       22.3       19.3       19.1       17.2       18.6       17.4       17.9       17.8
                                                              OT       21.7       20.2       19.9       17.8       19.1       17.8       18.2       18.1
350: Agriculture.......................................       BA       14.0       13.0       12.8       11.6       11.4       10.2        8.1        8.1
                                                              OT       12.7       11.8       11.5       10.4       10.1        9.2        7.1        7.0
370: Commerce and Housing Credit:
    On-budget..........................................       BA        5.4        2.3        4.1        2.8        2.2        1.9        1.3        1.0
                                                              OT      -13.7       -6.9       -2.6       -4.7       -3.0       -2.2       -2.5       -2.6
    Off-budget.........................................       BA        3.5        4.1        6.8        1.2        2.9       -0.2  .........  .........
                                                              OT        0.2       -0.0       -0.8       -1.4       -0.1       -1.4  .........
                                                        ------------------------------------------------------------------------------------------------
      Total............................................       BA        8.9        6.4       10.9        4.0        5.0        1.7        1.3        1.0
                                                              OT      -13.5       -7.0       -3.5       -6.1       -3.1       -3.6       -2.5       -2.6
400: Transportation....................................       BA       42.5       40.5       42.7       43.5       43.7       44.3       43.8       43.3
                                                              OT       39.3       38.8       37.5       36.6       35.6       34.9       39.3       33.7
450: Community and Regional Development................       BA        9.2        6.7        6.7        6.7        6.7        6.7        6.2        6.1
                                                              OT       11.6        9.9        7.8        6.7        6.5        6.6        6.4        6.4
500: Education, Training, Employnment and Social              BA       58.3       45.7       45.0       44.9       45.4       45.9       45.0       44.6
 Services..............................................
                                                              OT       54.7       52.3       46.4       44.6       44.7       45.2       44.2       43.7
550: Health............................................       BA      116.6      121.9      127.7      132.1      136.7      141.5      146.3      149.1
                                                              OT      115.8      122.3      127.8      132.2      136.7      141.4      146.2      148.9
570: Medicare..........................................       BA      162.6      179.1      188.7      196.5      209.0      213.9      224.0      234.0
                                                              OT      161.1      176.8      187.1      194.9      206.4      212.0      222.0      231.8
600: Income Security...................................       BA      219.9      222.7      231.8      248.4      255.4      265.9      267.6      277.6
                                                              OT      222.2      225.0      235.3      243.9      254.3      267.6      269.0      279.1
650: Social Security
    On-budget..........................................       BA        6.8        5.9        8.1        8.8        9.6       10.5       11.1       11.7
                                                              OT        9.3        8.5       10.5       11.3       12.1       12.9       13.5       14.1
    Off-budget.........................................       BA      330.1      348.4      366.0      385.5      404.3      423.4      443.9      465.5
                                                              OT      326.9      345.7      362.5      381.9      400.5      419.8      440.2      461.6
                                                        ------------------------------------------------------------------------------------------------
      Total............................................       BA      336.9      354.3      374.0      394.3      413.9      433.9      454.9      477.2
--------------------------------------------------------------------------------------------------------------------------------------------------------



[[Page H6283]]

                                                               HOUSE RESOLUTION--Continued
                                                                  [Dollars in billions]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                     1995       1996       1997       1998       1999       2000       2001       2002
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                              OT      336.2      354.2      373.1      393.1      412.6      432.7      453.7      475.7
700: Veterans Benefits.................................       BA       37.7       37.6       38.1       38.5       39.1       39.2       39.7       40.1
                                                              OT       37.4       36.9       38.1       38.5       39.0       40.6       41.2       41.6
750: Administration of Justice.........................       BA       18.5       17.8       16.9       16.6       16.4       16.4       16.0       15.9
                                                              OT       17.1       17.8       17.1       16.9       16.7       16.6       16.2       16.1
Total Spending:
    On-budget..........................................       BA    1,260.9    1,287.3    1,324.2    1,356.5    1,391.7    1,421.3    1,436.2    1,459.8
                                                              OT    1,243.7    1,288.4    1,315.9    1,327.6    1,366.7    1,400.2    1,419.5    1,437.3
    Off-budget.........................................       BA      292.6      306.2      321.1      329.5      343.9      353.5      367.2      381.3
                                                              OT      286.1      299.4      310.0      323.3      337.2      348.8      363.5      377.4
                                                        ------------------------------------------------------------------------------------------------
      Total............................................       BA    1,553.6    1,593.6    1,645.3    1,686.0    1,735.6    1,774.9    1,803.4    1,841.1
                                                              OT    1,529.9    1,587.8    1,625.9    1,650.9    1,703.9    1,749.0    1,783.0    1,814.7
Revenues:
    On-budget..........................................  .......      997.8    1,057.5    1,058.5    1,099.6    1,138.7    1,189.3    1,247.2    1,316.6
    Off-budget.........................................  .......      357.4      274.7      392.0      411.4      439.9      452.0      475.2      498.6
                                                        ------------------------------------------------------------------------------------------------
      Total............................................  .......    1,355.2    1,432.2    1,450.5    1,511.0    1,569.6    1,641.3    1,722.4    1,815.2
Deficit:
    On-budget..........................................  .......     -245.9     -230.9     -257.4     -228.0     -228.0     -211.0     -172.3     -120.7
    Off-budget.........................................  .......       71.3       75.3       81.9       88.1       93.7      103.2      111.7      121.2
                                                        ------------------------------------------------------------------------------------------------
      Total............................................  .......     -174.6     -155.6     -175.5     -139.9     -134.3     -107.8      -60.6        0.5
800: General Government................................       BA       13.3       11.6       11.6       12.5       11.7       12.1       11.3       11.3
                                                              OT       13.4       12.4       11.8       12.6       11.5       12.0       11.1       11.0
900: Net Interest:
    On-budget..........................................       BA      269.9      295.8      304.3      308.7      314.7      319.9      320.6      323.3
                                                              OT      269.9      295.8      304.3      308.7      314.7      319.9      320.6      323.3
    Off-budget.........................................       BA      -34.5      -39.5      -44.5      -49.7      -55.1      -60.9      -67.2      -74.0
                                                              OT      -34.5      -39.5      -44.5      -49.7      -55.1      -60.9      -67.2      -74.0
                                                        ------------------------------------------------------------------------------------------------
      Total............................................       BA      235.4      256.4      259.8      259.0      259.5      258.9      253.4      249.4
                                                              OT      235.3      256.4      259.8      259.0      259.5      258.9      253.4      249.4
920: Allowances........................................       BA  .........       -2.3       -2.4       -2.4       -2.5       -2.6       -2.6       -2.6
                                                              OT  .........       -1.9       -2.3       -2.5       -2.7       -2.8       -2.9       -2.9
950: Undistributed Offsetting Receipts:
    On-budget..........................................       BA      -39.8      -34.4      -34.2      -37.6      -36.4      -38.1      -37.9      -39.0
                                                              OT      -39.8      -34.4      -34.2      -37.6      -36.4      -38.1      -37.9      -39.0
    Off-budget.........................................       BA       -6.4       -6.8       -7.1       -7.6       -8.1       -8.7       -9.5      -10.3
                                                              OT       -6.4       -6.8       -7.1       -7.6       -8.1       -8.7       -9.5      -10.3
                                                        ------------------------------------------------------------------------------------------------
      Total............................................       BA      -46.2      -41.2      -41.3      -45.2      -44.5      -46.9      -47.9      -49.3
                                                              OT      -46.2      -41.2      -41.3      -45.2      -44.5      -46.9      -47.4      -49.3
--------------------------------------------------------------------------------------------------------------------------------------------------------


                                                                    SENATE AMENDMENT
                                                                  [Dollars in billions]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                     1995       1996       1997       1998       1999       2000       2001       2002
--------------------------------------------------------------------------------------------------------------------------------------------------------
050: National Defense..................................       BA     $261.4     $257.7     $253.4     $259.6     $266.2     $276.0     $275.9     $275.9
                                                              OT      269.6      261.1      257.0      254.5      259.6      267.8      267.7      269.2
150: International Affairs.............................       BA       18.9       15.4       14.3       13.5       12.6       14.1       14.3       14.2
                                                              OT       18.9       16.9       15.1       14.3       13.5       13.1       13.4       13.3
250: Science, Space and Technology.....................
                                                              BA       17.2       16.7       16.3       16.1       16.0       15.8       15.8       15.8
                                                              OT       17.5       16.7       16.6       16.3       16.0       15.9       15.9       15.9
270: Energy............................................       BA        6.3        2.9        1.7        3.3        4.2        4.1        4.0        4.0
                                                              OT        4.9        2.7        1.0        2.6        3.1        2.8        2.9        2.9
300: Natural Resources and Environment.................       BA       22.3       19.5       18.2       15.4       16.6       16.2       14.9       15.7
                                                              OT       21.7       20.4       20.1       17.9       18.3       17.3       15.8       16.5
350: Agriculture.......................................       BA       14.0       13.1       12.2       11.8       11.7       11.7       10.5       10.1
                                                              OT       12.7       11.9       10.9       10.6       10.4       10.6        9.4        9.1
370: Commerce and Housing Credit:
     On-budget.........................................       BA        5.4        2.5        1.5        0.6        0.1        1.7        0.5        0.2
                                                              OT      -13.7       -7.0       -5.4       -7.0       -5.1       -2.5       -3.3       -3.4
    Off-budget.........................................       BA        3.5        4.1        6.8        1.2        2.9       -0.2  .........  .........
                                                              OT        0.2       -0.0       -0.8       -1.4       -0.1       -1.4  .........  .........
                                                        ------------------------------------------------------------------------------------------------
      Total............................................       BA        8.9        6.6        8.3        1.8        3.0        1.5        0.5        0.2
                                                              OT      -13.5       -7.0       -6.2       -8.4       -5.2       -3.9       -3.3       -3.4
400: Transportation....................................       BA       42.5       36.5       38.8       39.4       40.2       41.2       41.0       40.8
                                                              OT       39.3       38.3       32.8       31.8       31.3       31.1       31.1       31.1
450: Community and Regional Development................       BA        9.2        5.8        5.5        5.3        5.3        5.2        4.6        4.5
                                                              OT       11.6        9.8        7.3        5.6        5.2        5.2        5.1        5.1
500: Education, Training, Employment and Social               BA       58.3       49.0       48.4       48.4       48.8       49.4       48.9       49.1
 Services..............................................
                                                              OT       54.7       52.6       49.0       48.2       48.2       48.8       48.3       48.5
550: Health............................................       BA      116.6      121.1      127.6      133.1      138.0      142.1      146.2      150.6
                                                              OT      115.8      121.0      127.4      133.2      137.9      141.9      146.0      150.3
570: Medicare..........................................       BA      162.6      171.9      180.5      193.1      207.4      221.4      238.9      258.9
                                                              OT      161.1      169.5      178.9      191.4      204.8      219.5      236.9      256.7
600: Income Security...................................       BA      219.9      226.3      233.7      253.0      256.0      272.6      277.5      291.9
                                                              OT      222.2      225.9      235.6      246.1      257.9      272.6      277.4      291.7
650: Social Security:
    On-budget..........................................       BA        6.8        5.9        8.1        8.8        9.6       10.5       11.1       11.7
                                                              OT        9.3        8.5       10.5       11.3       12.1       12.9       13.5       14.1
    Off-budget.........................................       BA      330.1      348.4      366.0      385.5      405.4      426.2      448.5      472.0
                                                              OT      326.9      345.7      362.5      381.9      401.7      422.7      444.8      468.1
                                                        ------------------------------------------------------------------------------------------------
      Total............................................       BA      336.9      354.3      374.0      394.3      415.0      436.7      459.6      483.7
                                                              OT      336.2      354.2      373.1      393.1      413.7      435.6      458.3      482.2
700: Veterans Benefits.................................       BA       37.7       37.4       37.5       37.6       37.9       37.9       38.3       38.7
                                                              OT       37.4       36.9       37.7       38.0       38.2       39.4       40.1       40.4
750: Administration of Justice.........................       BA       18.5       20.0       20.7       21.4       22.3       22.3       21.9       21.8
                                                              OT       17.1       19.6       21.2       22.4       23.1       23.7       23.3       23.2
800: General Government................................       BA       13.3       12.5       12.4       12.2       12.1       12.0       11.6       11.6
                                                              OT       13.4       13.0       12.4       12.3       12.0       11.9       11.7       11.6
900: Net Interest:
    On-budget..........................................       BA      269.9      297.9      308.9      316.6      327.8      338.6      345.5      353.3
                                                              OT      269.9      297.9      308.9      316.6      327.8      338.6      345.5      353.3
    Off-budget.........................................       BA      -34.5      -39.5      -44.5      -49.7      -55.1      -60.9      -67.2      -74.0
                                                              OT      -34.5      -39.5      -44.5      -49.7      -55.1      -60.9      -67.2      -74.0
                                                        ------------------------------------------------------------------------------------------------
      Total............................................       BA      235.4      258.5      264.4      266.9      272.7      277.7      278.3      279.3
                                                              OT      235.3      258.5      264.4      266.9      272.7      277.7      278.3      279.3
920: Allowances........................................       BA  .........       -9.6       -9.5       -8.3       -7.8       -6.7       -6.7       -6.7
                                                              OT  .........       -6.9       -9.4       -8.6       -8.1       -7.1       -7.1       -7.1
950: Undistributed Offsetting Receipts:
    On-budget..........................................       BA      -39.8      -33.1      -33.8      -36.3      -37.7      -39.7      -41.1      -42.3
--------------------------------------------------------------------------------------------------------------------------------------------------------



[[Page H6284]]

                                                               SENATE AMENDMENT--Continued
                                                                  [Dollars in billions]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                     1995       1996       1997       1998       1999       2000       2001       2002
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                              OT      -39.8      -33.1      -33.8      -36.3      -37.7      -39.7      -41.1      -42.3
    Off-budget.........................................       BA       -6.4       -6.8       -7.1       -7.6       -8.1       -8.7       -9.5      -10.3
                                                              OT       -6.4       -6.8       -7.1       -7.6       -8.1       -8.7       -9.5      -10.3
                                                        ------------------------------------------------------------------------------------------------
      Total............................................       BA      -46.2      -39.9      -40.9      -43.9      -45.8      -48.5      -50.5      -52.6
                                                              OT      -46.2      -39.9      -40.9      -43.9      -45.8      -48.5      -50.5      -52.6
Total Spending:
    On-budget..........................................       BA    1,260.9    1,269.4    1,296.5    1.344.7    1,387.3    1,446.3    1,473.7    1,519.7
                                                              OT    1,243.7    1,275.7    1,293.8    1,321.1    1,368.7    1,423.6    1.452.6    1,500.1
    Off-budget.........................................       BA      292.6      306.2      321.1      329.5      345.1      356.4      371.9      387.8
                                                              OT      286.1      299.4      310.0      323.3      338.4      351.6      368.1      383.9
                                                        ------------------------------------------------------------------------------------------------
      Total............................................       BA    1,553.6    1,575.7    1,617.6    1,674.2    1,732.4    1,802.7    1,845.5    1,907.5
                                                              OT    1,529.9    1,575.1    1,603.8    1,644.3    1,707.1    1,775.3    1,820.7    1,884.0
Revenues:
    On-budget..........................................  .......      997.8    1,043.3    1,083.9    1,135.5    1,189.8    1,248.9    1,315.7    1,386.7
    Off-budget.........................................  .......      357.4      374.7      392.0      411.4      430.9      452.0      475.2      498.6
                                                        ------------------------------------------------------------------------------------------------
Total..................................................  .......    1,355.2    1,418.0    1,475.9    1,546.9    1,620.7    1,700.9    1,790.9    1,885.3
 
    On-budget..........................................  .......     -245.9     -232.4     -209.9     -185.6     -178.9     -174.7     -136.8     -113.4
    Off-budget.........................................  .......       71.3       75.3       81.9       88.1       92.5      100.4      107.1      114.7
                                                        ------------------------------------------------------------------------------------------------
      Total............................................  .......     -174.6     -157.1     -127.9      -97.5      -86.4      -74.3      -29.8        1.3
--------------------------------------------------------------------------------------------------------------------------------------------------------


                                                                  CONFERENCE AGREEMENT
                                                                  [Dollars in billions]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                     1995       1996       1997       1998       1999       2000       2001       2002
--------------------------------------------------------------------------------------------------------------------------------------------------------
050: National Defense..................................       BA     $261.4     $264.7     $267.3     $269.0     $271.7     $274.4     $277.1     $280.0
                                                              OT      269.6      263.1      265.0      263.8      267.2      270.9      270.0      270.0
150: International Affairs.............................       BA       18.9       15.8       14.0       12.4       11.2       12.7       12.8       12.8
                                                              OT       18.9       17.0       15.1       13.9       12.6       11.9       12.0       11.8
250: Science, Space and Technology.....................       BA       17.2       16.7       16.3       15.9       15.6       15.3       15.3       15.3
                                                              OT       17.5       16.8       16.6       16.1       15.7       15.5       15.4       15.4
270: Energy............................................       BA        6.3        4.6        4.2        3.8        3.6        3.4        3.3        3.3
                                                              OT        4.9        4.5        3.5        3.1        2.6        2.2        2.2        2.2
300: Natural Resources and Environment.................       BA       22.3       19.5       19.2       17.7       18.2       17.9       17.1       17.5
                                                              OT       21.7       20.3       20.0       18.7       19.0       18.5       17.4       17.7
350: Agriculture.......................................       BA       14.0       13.1       12.5       11.7       11.5       10.9        9.8        9.6
                                                              OT       12.7       11.8       11.1       10.5       10.3        9.8        8.7        8.5
370: Commerce and Housing Credit:
    On-budget..........................................       BA        5.4        2.6        1.8        0.9        0.4        2.1        0.8        0.6
                                                              OT      -13.7       -7.0       -5.1       -6.7       -4.8       -2.2       -2.9       -3.0
    Off-budget.........................................       BA        3.5        4.1        6.8        1.2        2.9       -0.2  .........  .........
                                                              OT        0.2        0.0       -0.8       -1.4       -0.1       -1.4  .........  .........
                                                        ------------------------------------------------------------------------------------------------
      Total............................................       BA        8.9        6.7        8.6        2.1        3.3        1.9        0.8        0.6
                                                              OT      -13.5       -6.9       -5.9       -8.1       -4.9       -3.6       -2.9       -3.0
400: Transportation....................................       BA       42.5       36.6       43.1       43.9       42.6       42.9       42.2       41.8
                                                              OT       39.3       38.9       37.6       36.6       34.1       33.2       32.4       32.0
450: Community and Regional Development................       BA        9.2        6.6        6.5        6.4        6.4        6.3        5.7        5.6
                                                              OT       11.6        9.9        7.8        6.5        6.2        6.2        6.1        6.1
500: Education, Training, Employment and Social               BA       58.3       48.4       47.8       47.6       48.4       49.1       48.6       48.8
 Services..............................................
                                                              OT       54.7       53.4       48.9       47.3       47.5       48.2       47.7       47.8
550: Health............................................       BA      116.6      121.0      127.6      131.6      135.7      140.1      144.5      149.2
                                                              OT      115.8      121.1      127.5      131.7      135.7      139.9      144.3      149.0
570: Medicare..........................................       BA      162.6      176.1      184.3      194.0      205.7      216.5      231.8      249.2
                                                              OT      161.1      173.7      182.8      192.3      203.1      214.6      229.7      247.0
600: Income Security...................................       BA      219.9      225.9      231.6      250.3      253.1      269.5      274.8      288.7
                                                              OT      222.2      227.6      236.4      245.3      255.8      269.9      274.6      288.3
650: Social Security:
    On-budget..........................................       BA        6.8        5.9        8.1        8.8        9.6       10.5       11.1       11.7
                                                              OT        9.3        8.5       10.5       11.3       12.1       12.9       13.5       14.1
    Off-budget.........................................       BA      330.1      348.4      366.0      385.5      405.4      426.2      448.5      472.0
                                                              OT      326.9      345.7      362.5      381.9      401.7      422.7      444.8      468.1
                                                        ------------------------------------------------------------------------------------------------
      Total............................................       BA      336.9      354.3      374.1      394.3      415.0      436.7      459.6      483.7
                                                              OT      336.2      354.2      373.0      393.2      413.8      435.6      458.3      482.2
700: Veterans Benefits.................................       BA       37.7       37.5       37.9       38.2       38.8       39.1       39.7       40.2
                                                              OT       37.4       36.9       38.0       38.4       39.0       40.6       41.3       41.8
750: Administration of Justice.........................       BA       18.5       19.8       19.8       20.2       21.0       21.1       20.7       20.6
                                                              OT       17.1       18.7       18.9       19.7       20.4       20.9       20.5       20.5
800: General Government................................       BA       13.3       12.4       12.3       12.2       12.1       12.0       11.6       11.6
                                                              OT       13.4       12.9       12.3       12.2       12.0       12.0       11.6       11.5
900: Net Interest:
    On-budget..........................................       BA      269.9      298.4      310.5      319.4      331.5      342.9      349.9      357.6
                                                              OT      269.9      298.4      310.5      319.4      331.5      342.9      349.9      357.6
    Off-budget.........................................       BA      -34.5      -39.5      -44.5      -49.7      -55.1      -60.9      -67.2      -74.0
                                                              0T      -34.5      -39.5      -44.5      -49.7      -55.1      -60.9      -67.2      -74.0
                                                        ------------------------------------------------------------------------------------------------
      Total............................................       BA      235.4      258.9      266.0      269.7      276.4      282.0      282.7      283.6
                                                              OT      235.3      258.9      266.0      269.7      276.4      282.0      282.7      283.6
920: Allowances........................................       BA         --       -6.4       -6.3       -5.3       -4.7       -3.7       -3.7       -3.7
                                                              OT         --       -4.8       -6.4       -5.5       -5.0       -4.0       -4.0       -4.1
950: Undistributed Offsetting Receipts:
    On-budget..........................................       BA      -39.8      -33.7      -34.2      -36.4      -35.5      -37.4      -36.8      -41.6
                                                              OT      -39.8      -33.7      -34.2      -36.4      -35.5      -37.4      -36.8      -41.6
    Off-budget.........................................       BA       -6.4       -6.8       -7.1       -7.6       -8.1       -8.7       -9.5      -10.3
                                                              OT       -6.4       -6.8       -7.1       -7.6       -8.1       -8.7       -9.5      -10.3
                                                        ------------------------------------------------------------------------------------------------
      Total............................................       BA      -46.2      -40.5      -41.3      -44.0      -43.6      -46.1      -46.3      -51.8
                                                              OT      -46.2      -40.5      -41.3      -44.0      -43.6      -46.1      -46.3      -51.8
Total Spending:
    On-budget..........................................       BA     1260.9     1285.5     1324.3     1362.3     1396.9     1445.6     1476.3     1518.8
                                                              OT     1243.7     1288.1     1316.8     1338.2     1379.6     1426.5     1453.6     1492.6
    Off-budget.........................................       BA      292.6      306.2      321.2      329.4      345.1      356.4      371.8      387.7
                                                              OT      286.1      299.4      310.1      323.2      338.4      351.7      368.1      383.8
                                                        ------------------------------------------------------------------------------------------------
      Total............................................       BA     1553.6     1591.7     1645.5     1691.7     1742.0     1802.0     1848.1     1906.5
                                                              OT     1529.9     1587.5     1626.9     1661.4     1718.0     1778.2     1821.7     1876.4
Revenues:
    On-budget..........................................       --      997.8     1042.5     1082.7     1134.2     1186.7     1245.4     1313.4     1384.2
    Off-budget.........................................       --      357.4      374.7      392.0      411.4      430.9      452.0      475.2      498.6
                                                        ------------------------------------------------------------------------------------------------
      Total............................................       --     1355.2     1417.2     1474.7     1545.6     1617.6     1697.4     1788.6     1882.8
Deficit:
    On-budget..........................................       --     -245.9     -245.6     -234.1     -204.0     -192.9     -181.1     -140.2     -108.4

[[Page H6285]]

 
    Off-budget.........................................       --       71.3       75.3       81.9       88.2       92.5      100.3      107.1      114.8
                                                        ------------------------------------------------------------------------------------------------
      Total............................................       --     -174.6     -170.3     -152.2     -115.8     -100.4      -80.8      -33.1        6.4
--------------------------------------------------------------------------------------------------------------------------------------------------------


                                                   CONFERENCE AGREEMENT COMPARED TO CURRENT LAW LEVELS
                                                                  [Dollars in billions]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                     1996       1997       1998       1999       2000       2001       2002      Total
--------------------------------------------------------------------------------------------------------------------------------------------------------
050: National Defense..................................       BA       $9.7      $15.6      $10.7       $6.8       $2.8       $5.6       $8.5      $59.8
                                                              OT        5.7        8.2        7.7        9.3        9.4        8.6        8.6       57.6
150: International Affairs.............................       BA       -2.1       -3.4       -4.6       -5.4       -5.7       -5.7       -5.7      -32.6
                                                              OT       -0.4       -1.7       -2.9       -3.9       -4.7       -4.8       -5.0      -23.4
250: Science, Space and Technology.....................       BA       -0.5       -0.9       -1.3       -1.6       -1.8       -1.8       -1.8       -9.7
                                                              OT       -0.1       -0.6       -1.0       -1.4       -1.7       -1.8       -1.8       -8.5
270: Energy............................................       BA       -1.0       -1.1       -1.5       -2.1       -2.1       -2.2       -2.2      -12.2
                                                              OT       -0.2       -0.5       -1.0       -1.7       -2.0       -2.0       -2.0       -9.3
300: Natural Resources and Environment.................       BA       -2.5       -2.8       -3.9       -3.3       -3.4       -3.8       -3.3      -22.9
                                                              OT       -1.1       -1.9       -3.2       -2.8       -3.1       -3.7       -3.2      -19.0
350: Agriculture.......................................       BA       -1.4       -1.8       -2.4       -2.3       -2.7       -2.8       -3.0      -16.4
                                                              OT       -1.2       -1.7       -2.4       -2.3       -2.7       -2.8       -3.0      -16.1
370: Commerce and Housing Credit:
    On-budget..........................................       BA       -1.3       -1.5       -1.9       -2.2       -0.4       -1.7       -2.0      -11.0
                                                              OT       -0.9       -1.3       -1.8       -2.2       -0.5       -1.7       -2.0      -10.4
    Off-budget.........................................       BA  .........  .........  .........  .........  .........  .........  .........  .........
                                                              OT  .........  .........  .........  .........  .........  .........  .........  .........
                                                        ------------------------------------------------------------------------------------------------
      Total............................................       BA       -1.3       -1.5       -1.9       -2.2       -0.4       -1.7       -2.0      -11.0
                                                              OT       -0.8       -1.3       -1.8       -2.2       -0.5       -1.7       -2.0      -10.4
400: Transportation....................................       BA       -1.6       -1.5       -1.7       -4.0       -4.7       -5.2       -5.3      -24.1
                                                              OT       -0.7       -2.1       -3.1       -5.7       -6.8       -7.6       -8.0      -33.9
450: Community and Regional Development................       BA       -2.5       -2.6       -2.7       -2.7       -2.8       -2.8       -2.9      -19.0
                                                              OT       -0.4       -1.2       -2.0       -2.5       -2.7       -2.7       -2.7      -14.2
500: Education, Training, Employment and Social               BA       -8.8       -9.1       -9.7       -9.9      -10.0      -10.1      -10.2      -67.7
 Services..............................................
                                                              OT       -2.8       -7.5       -9.3       -9.8       -9.9      -10.0      -10.2      -59.4
550: Health............................................       BA       -5.7      -10.2      -18.6      -27.7      -37.0      -47.6      -58.6     -205.3
                                                              OT       -5.0      -10.2      -18.6      -27.7      -37.1      -47.6      -58.6     -204.6
570: Medicare..........................................       BA       -8.0      -17.7      -26.6      -37.2      -49.2      -60.0      -71.4     -270.0
                                                              OT       -8.0      -17.7      -26.6      -37.2      -49.2      -60.0      -71.4     -270.0
600: Income Security...................................       BA       -2.2      -11.0       -3.5      -13.1      -11.9      -13.6      -16.3      -71.6
                                                              OT       -3.7      -10.8      -11.5      -12.7      -14.5      -16.7      -19.6      -89.5
650: Social Security:
    On-budget..........................................       BA  .........  .........  .........  .........  .........  .........  .........  .........
                                                              OT  .........  .........  .........  .........  .........  .........  .........  .........
    Off-budget.........................................       BA  .........  .........  .........  .........  .........  .........  .........  .........
                                                              OT  .........  .........  .........  .........  .........  .........  .........  .........
                                                        ------------------------------------------------------------------------------------------------
      Total............................................       BA  .........  .........  .........  .........  .........  .........  .........  .........
                                                              OT  .........  .........  .........  .........  .........  .........  .........  .........
700: Veterans Benefits.................................       BA       -0.6       -0.7       -0.9       -1.6       -1.7       -1.8       -1.9       -9.3
                                                              OT       -0.3       -0.5       -0.7       -1.4       -1.7       -1.7       -1.9       -8.2
750: Administration of Justice.........................       BA        1.4        1.4        1.5        2.4        2.5        2.5        2.5       14.1
                                                              OT        0.5        0.7        1.2        1.8        2.4        2.4        2.4       11.3
800: General Government................................       BA       -0.8       -1.0       -1.1       -1.2       -1.3       -1.3       -1.3       -7.9
                                                              OT       -0.6       -0.8       -0.9       -1.1       -1.2       -1.3       -1.3       -7.2
900: Net Interest:
    On-budget..........................................       BA       -1.0       -3.8       -8.5      -15.1      -23.5      -34.1      -47.1     -133.1
                                                              OT       -1.0       -3.8       -8.5      -15.1      -23.5      -34.1      -47.1     -133.1
    Off-budget.........................................       BA  .........  .........  .........  .........  .........  .........  .........  .........
                                                              OT  .........  .........  .........  .........  .........  .........  .........  .........
                                                        ------------------------------------------------------------------------------------------------
      Total............................................       BA       -1.0       -3.9       -8.6      -15.2      -23.7      -34.3      -47.3     -134.1
                                                              OT       -1.0       -3.9       -8.6      -15.2      -23.7      -34.3      -47.3     -134.1
920: Allowances........................................       BA       -6.4       -6.3       -5.3       -4.7       -3.7       -3.7       -3.7      -33.8
                                                              OT       -4.8       -6.4       -5.5       -5.0       -4.0       -4.0       -4.1      -33.8
950: Undistributed Offsetting Receipts:
    On-budget..........................................       BA       -2.4       -3.0       -4.4       -2.6       -2.6       -0.7       -4.1      -19.8
                                                              OT       -2.4       -3.0       -4.4       -2.6       -2.6       -0.7       -4.1      -19.8
    Off-budget.........................................       BA  .........  .........  .........  .........  .........  .........  .........  .........
                                                              OT  .........  .........  .........  .........  .........  .........  .........  .........
                                                        ------------------------------------------------------------------------------------------------
      Total............................................       BA       -2.4       -3.0       -4.4       -2.6       -2.6       -0.7       -4.1      -19.8
                                                              OT       -2.4       -3.0       -4.4       -2.6       -2.6       -0.7       -4.1      -19.8
Total Spending:
    On-budget..........................................       BA      -37.9      -61.3      -86.4     -127.5     -159.4     -190.9     -230.0     -893.4
                                                              OT      -27.3      -62.7      -94.7     -124.1     -156.3     -192.4     -235.1     -892.6
    Off-budget.........................................       BA  .........  .........  .........  .........  .........  .........  .........  .........
                                                              OT  .........  .........  .........  .........  .........  .........  .........  .........
                                                        ------------------------------------------------------------------------------------------------
      Total............................................       BA      -37.9      -61.3      -86.4     -127.5     -159.4     -190.9     -230.0     -893.4
                                                              OT      -27.3      -62.7      -94.7     -124.1     -156.3     -192.4     -235.1     -892.6
Revenues:
    On-budget..........................................  .......        0.1        0.1        0.2        0.2        0.2        0.2        0.2        1.1
    Off-budget.........................................  .......  .........  .........  .........  .........  .........  .........  .........  .........
                                                        ------------------------------------------------------------------------------------------------
      Total............................................  .......        0.1        0.1        0.2        0.2        0.2        0.2        0.2        1.1
Deficit/Surplus:
    On-budget..........................................  .......       27.4       62.8       94.8      124.3      156.5      192.6      235.3      893.7
    Off-budget.........................................  .......  .........  .........  .........  .........  .........  .........  .........  .........
                                                        ------------------------------------------------------------------------------------------------
      Total............................................  .......       27.4       62.8       94.8      124.3      156.5      192.6      235.3      893.7
--------------------------------------------------------------------------------------------------------------------------------------------------------


                                                          CONFERENCE AGREEMENT COMPARED TO 1995
                                                                  [Dollars in billions]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                     1996       1997       1998       1999       2000       2001       2002      Total
--------------------------------------------------------------------------------------------------------------------------------------------------------
050: National Defense..................................       BA       $3.3       $5.9       $7.6      $10.3      $13.0      $15.7      $18.6      $74.2
                                                              OT       -6.5       -4.6       -5.8       -2.4        1.3        0.4        0.4      -17.4
150: International Affairs.............................       BA       -3.1       -4.9       -6.5       -7.7       -6.2       -6.0       -6.0      -40.4
                                                              OT       -1.8       -3.8       -5.0       -6.3       -7.0       -6.9       -7.1      -38.0
250: Science, Space and Technology.....................       BA       -0.5       -0.9       -1.2       -1.5       -1.8       -1.8       -1.8       -9.5
                                                              OT       -0.7       -0.9       -1.4       -1.8       -2.1       -2.1       -2.1      -11.3
270: Energy............................................       BA       -1.8       -2.2       -2.5       -2.8       -3.0       -3.0       -3.1      -18.3
                                                              OT       -0.4       -1.4       -1.8       -2.4       -2.7       -2.7       -2.8      -14.3
300: Natural Resources and Environment.................       BA       -2.8       -3.1       -4.6       -4.1       -4.4       -5.2       -4.8      -29.1

[[Page H6286]]

 
                                                              OT       -1.5       -1.8       -3.0       -2.7       -3.3       -4.3       -4.0       20.6
350: Agriculture.......................................       BA       -0.9       -1.5       -2.3       -2.5       -3.0       -4.2       -4.4      -18.7
                                                              OT       -0.9       -1.6       -2.2       -2.5       -3.0       -4.0       -4.2      -18.2
370: Commerce and Housing Credit:
    On-budget..........................................       BA       -2.8       -3.6       -4.5       -5.0       -3.3       -4.6       -4.8      -28.5
                                                              OT        6.8        8.7        7.0        9.0       11.5       10.8       10.7       64.5
    Off-budget.........................................       BA        0.6        3.3       -2.3       -0.7       -3.7       -3.5       -3.5       -9.9
                                                              OT       -0.2       -1.0       -1.6       -0.3       -1.6       -0.2       -0.2       -5.1
                                                        ------------------------------------------------------------------------------------------------
      Total............................................       BA       -2.2       -0.3       -6.8       -5.6       -7.0       -8.1       -8.4      -38.5
                                                              OT        6.6        7.6        5.4        8.7       10.0       10.6       10.5       59.4
400: Transportation....................................       BA       -6.0        0.6        1.3        0.0        0.3       -0.3       -0.7       -4.6
                                                              OT       -0.4       -1.8       -2.7       -5.2       -6.1       -6.9       -7.4      -30.6
450: Community and Regional Development................       BA       -2.6       -2.7       -2.8       -2.8       -2.9       -3.4       -3.6      -20.8
                                                              OT       -1.7       -3.8       -5.1       -5.4       -5.4       -5.5       -5.5      -32.4
500: Education, Training, Employment and Social               BA       -9.9      -10.5      -10.7       -9.9       -9.2       -9.7       -9.5      -69.4
 Services..............................................
                                                              OT       -1.3       -5.8       -7.4       -7.2       -6.5       -7.1       -6.9      -42.3
550: Health............................................       BA        4.3       11.0       15.0       19.1       23.5       27.9       32.6      133.4
                                                              OT        5.4       11.8       15.9       20.0       24.1       28.6       33.2      138.9
570: Medicare..........................................       BA       13.4       21.7       31.3       43.1       53.8       69.1       86.6      319.1
                                                              OT       12.7       21.7       31.3       42.1       53.6       68.7       85.9      315.9
600: Income Security...................................       BA        6.0       11.7       30.3       33.2       49.5       54.8       68.7      254.3
                                                              OT        5.4       14.2       23.1       33.6       47.7       52.4       66.0      242.3
650: Social Security:
    On-budget..........................................       BA       -0.9        1.3        2.0        2.8        3.7        4.3        4.9       18.1
                                                              OT       -0.8        1.2        2.0        2.8        3.6        4.2        4.8       17.7
    Off-budget.........................................       BA       18.3       35.9       55.4       75.4       96.1      118.4      142.0      541.5
                                                              OT       18.8       35.6       55.0       74.8       95.7      117.9      141.2      538.9
                                                        ------------------------------------------------------------------------------------------------
      Total............................................       BA       17.4       37.2       57.4       78.2       99.8      122.7      146.8      559.6
                                                              OT       17.9       36.8       56.9       77.5       99.4      122.1      146.0      556.6
700: Veterans Benefits.................................       BA       -0.1        0.2        0.6        1.2        1.4        2.0        2.5        7.9
                                                              OT       -0.5        0.6        1.0        1.6        3.2        3.9        4.4       14.3
750: Administration of Justice.........................       BA        1.3        1.3        1.6        2.5        2.6        2.2        2.1       13.6
                                                              OT        1.6        1.8        2.6        3.3        3.8        3.4        3.3       19.8
800: General Government................................       BA       -0.9       -1.0       -1.1       -1.1       -1.3       -1.6       -1.7       -8.7
                                                              OT       -0.5       -1.1       -1.1       -1.4       -1.4       -1.8       -1.9       -9.2
900: Net Interest:
    On-budget..........................................       BA       28.5       40.6       49.5       61.6       73.0       80.0       87.7      421.0
                                                              OT       28.5       40.6       49.5       61.6       73.0       80.0       87.7      421.0
    Off-budget.........................................       BA       -4.9      -10.0      -15.1      -20.6      -26.4      -32.7      -39.4     -149.1
                                                              OT       -4.9      -10.0      -15.1      -20.6      -26.4      -32.7      -39.4     -149.0
                                                        ------------------------------------------------------------------------------------------------
      Total............................................       BA       23.6       30.6       34.4       41.1       46.6       47.4       48.3      271.9
                                                              OT       23.6       30.6       34.4       41.1       46.6       47.4       48.3      272.0
920: Allowances........................................       BA       -6.4       -6.3       -5.3       -4.7       -3.7       -3.7       -3.7      -33.8
                                                              OT       -4.8       -6.4       -5.5       -5.0       -4.0       -4.0       -4.1      -33.8
950: Undistributed Offsetting Receipts:
    On-budget..........................................       BA        6.1        5.6        3.4        4.3        2.4        3.0       -1.8       23.0
                                                              OT        6.1        5.6        3.4        4.3        2.4        3.0       -1.8       23.0
    Off-budget.........................................       BA       -0.4       -0.7       -1.1       -1.6       -2.3       -3.0       -3.8      -13.0
                                                              OT       -0.4       -0.7       -1.1       -1.6       -2.3       -3.0       -3.8      -13.0
                                                        ------------------------------------------------------------------------------------------------
      Total............................................       BA        5.8        4.9        2.2        2.6        0.1       -0.0       -5.6       10.0
                                                              OT        5.8        4.9        2.2        2.6        0.1       -0.0       -5.6       10.0
Total Spending:
    On-budget..........................................       BA       24.4       63.4      101.3      135.9      184.6      215.3      257.8      982.9
                                                              OT       44.4       73.1       94.5      135.8      182.8      209.9      248.8      989.4
    Off-budget.........................................       BA       13.6       28.5       36.8       52.5       63.7       79.2       95.1      369.4
                                                              OT       13.3       23.9       37.1       52.2       65.5       82.0       97.7      371.7
                                                        ------------------------------------------------------------------------------------------------
      Total............................................       BA       38.1       91.9      138.1      188.4      248.4      294.5      352.9     1352.3
                                                              OT       57.7       97.0      131.6      188.1      248.3      291.9      346.5     1361.1
Revenues:
    On-budget..........................................  .......       44.8       84.9      136.4      189.0      247.6      315.6      386.4     1404.7
    Off-Budget.........................................  .......       17.2       34.5       54.0       73.4       94.6      117.7      141.2      532.6
                                                        ------------------------------------------------------------------------------------------------
      Total............................................  .......       62.0      119.5      190.4      262.4      342.2      433.4      527.5     1937.4
--------------------------------------------------------------------------------------------------------------------------------------------------------

     Discretionary and mandatory spending levels
       The following tables show the discretionary and mandatory 
     spending levels in the aggregate and by function included in 
     the conference agreements.

                                                       CONFERENCE AGREEMENT--DISCRETIONARY TOTALS
                                                                  [Dollars in billions]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                     1995       1996       1997       1998       1999       2000       2001       2002
--------------------------------------------------------------------------------------------------------------------------------------------------------
050: National Defense..................................       BA     $262.3     $265.4     $268.0     $269.7     $272.4     $275.1     $277.8     $280.7
                                                              OT      270.3      264.0      265.7      264.5      267.9      271.6      270.8      270.8
150: International Affairs.............................       BA       20.4       18.3       17.1       15.8       15.1       14.7       14.7       14.7
                                                              OT       21.1       20.7       19.2       17.7       16.5       15.6       15.5       15.3
250: Science, Space and Technology.....................       BA       17.1       16.7       16.3       15.9       15.6       15.3       15.3       15.3
                                                              OT       17.5       16.8       16.5       16.1       15.7       15.4       15.4       15.3
270: Energy............................................       BA        6.3        5.5        5.1        4.7        4.8        4.8        4.7        4.7
                                                              OT        6.6        6.4        5.6        5.2        5.1        5.0        4.9        4.8
300: Natural Resources and Environment.................       BA       22.0       19.1       18.8       18.5       18.4       18.3       18.4       18.4
                                                              OT       21.5       20.2       19.7       19.6       19.3       19.0       18.9       18.8
350: Agriculture.......................................       BA        4.0        3.6        3.6        3.6        3.6        3.6        3.6        3.6
                                                              OT        4.2        3.8        3.7        3.6        3.6        3.6        3.6        3.6
370: Commerce and Housing Credit.......................       BA        3.3        2.3        1.9        1.6        1.4        3.2        1.8        1.5
                                                              OT        3.1        2.6        2.1        1.6        1.4        3.1        1.8        1.5
400: Transportation....................................       BA       15.5       13.9       14.0       13.8       11.6       10.8       10.4       10.3
                                                              OT       38.9       38.4       37.1       36.1       33.6       32.7       31.9       31.5
450: Community and Regional Development................       BA        8.9        6.6        6.5        6.4        6.4        6.4        6.3        6.3
                                                              OT       11.6       10.3        7.9        7.1        6.7        6.5        6.5        6.5
500: Education, Training, Employment and Social               BA       42.0       36.0       35.9       35.6       35.6       35.6       35.6       35.6
 Services..............................................
                                                              OT       39.3       40.3       37.0       35.5       35.3       35.3       35.3       35.3
550: Health............................................       BA       22.8       20.9       20.7       20.5       20.1       19.9       19.6       19.3
                                                              OT       22.4       21.2       20.6       20.5       20.1       19.9       19.6       19.3
570: Medicare..........................................       BA        3.0        3.0        3.0        3.0        3.0        3.0        3.0        3.0
                                                              OT        3.0        3.0        3.0        3.0        3.0        3.0        3.0        3.0
600: Income Security...................................       BA       34.0       35.2       34.0       43.5       36.0       39.4       39.4       39.5
                                                              OT       38.7       39.2       41.5       41.1       41.2       42.0       41.5       41.5
650: Social Security...................................       BA  .........  .........  .........  .........  .........  .........  .........  .........
                                                              OT        2.5        2.6        2.5        2.5        2.5        2.5        2.5        2.5
700: Veterans Benefits.................................       BA       18.3       18.0       18.0       18.0       17.9       17.9       17.9       17.9
                                                              OT       18.0       18.9       18.3       18.2       18.1       18.0       17.9       17.9
750: Administration of Justice.........................       BA       18.1       19.5       19.5       19.7       20.5       20.6       20.6       20.6
--------------------------------------------------------------------------------------------------------------------------------------------------------



[[Page H6287]]

                                                  CONFERENCE AGREEMENT--DISCRETIONARY TOTALS--Continued
                                                                  [Dollars in billions]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                     1995       1996       1997       1998       1999       2000       2001       2002
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                              OT       16.8       18.4       18.7       19.3       20.0       20.5       20.5       20.5
800: General Government................................       BA       12.3       11.6       11.5       11.3       11.2       11.1       11.1       11.1
                                                              OT       12.4       12.0       11.5       11.5       11.1       11.0       11.0       11.0
920: Allowances........................................       BA  .........       -6.4       -6.3       -5.3       -4.7       -3.7       -3.7       -3.7
                                                              OT  .........       -4.8       -6.4       -5.5       -5.0       -4.0       -4.0       -4.1
                                                        ------------------------------------------------------------------------------------------------
      Total Discretionary..............................       BA      510.4      489.2      487.4      496.2      488.7      495.9      496.6      498.8
                                                              OT      547.9      534.0      524.1      517.5      516.1      520.5      516.4      515.1
Defense................................................       BA      262.3      265.4      268.0      269.7      272.4      275.1      277.8      280.7
                                                              OT      270.3      264.0      265.7      264.5      267.9      271.6      270.8      270.8
Nondefense.............................................       BA      248.1      223.8      219.5      226.5      216.3      220.8      218.8      218.1
                                                              OT      277.6      269.9      258.4      253.0      248.2      248.9      245.6      244.3
050: National Defense..................................       BA       -0.9       -0.7       -0.7       -0.7       -0.7       -0.7       -0.7       -0.8
                                                              OT       -0.7       -0.9       -0.7       -0.7       -0.7       -0.7       -0.7       -0.8
150: International Affairs.............................       BA       -1.5       -2.5       -3.1       -3.4       -3.9       -2.0       -1.9       -1.9
                                                              OT       -2.3       -3.7       -4.1       -3.8       -3.9       -3.7       -3.5       -3.5
250: Science, Space and Technology.....................       BA        0.0        0.0        0.0        0.0        0.0        0.0        0.0        0.0
                                                              OT        0.0        0.0        0.0        0.0        0.0        0.0        0.0        0.0
270: Energy............................................       BA        0.0       -1.0       -0.9       -0.9       -1.3       -1.4       -1.4       -1.5
                                                              OT       -1.6       -1.9       -2.1       -2.1       -2.6       -2.8       -2.7       -2.7
300: Natural Resources and Environment.................       BA        0.3        0.4        0.4       -0.8       -0.2       -0.4       -1.3       -0.9
                                                              OT        0.2        0.1        0.3       -0.9       -0.3       -0.5       -1.5       -1.1
350: Agriculture.......................................       BA       10.0        9.5        8.9        8.1        7.9        7.4        6.2        6.0
                                                              OT        8.5        8.0        7.5        6.8        6.6        6.1        5.1        4.9
370: Commerce and Housing Credit.......................       BA        5.6        4.3        6.7        0.6        1.9       -1.3       -1.0       -1.0
                                                              OT      -16.6       -9.5       -8.0       -9.7       -6.2       -6.6       -4.7       -4.6
400: Transportation....................................       BA       27.1       22.7       29.1       30.0       31.0       32.0       31.8       31.5
                                                              OT        0.5        0.5        0.5        0.5        0.5        0.5        0.5        0.5
450: Community and Regional Development................       BA        0.3       -0.0       -0.0       -0.0       -0.0       -0.1       -0.6       -0.7
                                                              OT       -0.1       -0.3       -0.2       -0.6       -0.6       -0.3       -0.4       -0.4
500: Education, Training, Employment and Social               BA       16.3       12.4       11.9       12.1       12.8       13.6       13.0       13.2
 Services..............................................
                                                              OT       15.4       13.1       12.0       11.8       12.2       12.9       12.3       12.5
550: Health............................................       BA       93.8      100.0      106.9      111.2      115.6      120.2      124.9      129.9
                                                              OT       93.4      100.0      106.9      111.2      115.6      120.0      124.7      129.7
570: Medicare..........................................       BA      159.6      173.1      181.3      191.0      202.7      213.5      228.8      246.2
                                                              OT      158.1      170.7      179.8      189.3      200.2      211.6      226.7      244.0
600: Income Security...................................       BA      185.9      190.7      197.6      206.8      217.1      230.1      235.4      249.2
                                                              OT      183.5      188.4      194.9      204.2      214.6      227.9      233.1      246.8
650: Social Security...................................       BA      336.9      354.3      374.0      394.3      415.0      436.7      459.6      483.7
                                                              OT      333.7      351.6      370.6      390.7      411.3      433.1      455.8      479.7
700: Veterans Benefits.................................       BA       19.3       19.5       19.9       20.3       20.9       21.2       21.8       22.3
                                                              OT       19.4       18.0       19.7       20.2       20.9       22.6       23.4       23.9
750: Administration of Justice.........................       BA        0.4        0.4        0.3        0.5        0.5        0.5        0.0       -0.0
                                                              OT        0.3        0.3        0.3        0.4        0.4        0.4        0.0       -0.0
800: General Government................................       BA        1.0        0.8        0.8        0.9        0.9        0.9        0.6        0.5
                                                              OT        1.0        0.9        0.7        0.8        0.9        1.0        0.6        0.6
900: Net Interest......................................       BA      235.4      258.9      266.0      269.7      276.4      281.9      282.7      283.6
                                                              OT      235.3      258.9      266.0      269.7      276.4      281.9      282.7      283.6
950: Undistributed Offsetting Receipts.................       BA      -46.2      -40.5      -41.3      -44.0      -43.6      -46.1      -46.3      -51.8
                                                              OT      -46.2      -40.5      -41.3      -44.0      -43.6      -46.1      -46.3      -51.8
                                                        ------------------------------------------------------------------------------------------------
      Total Spending...................................       BA     1043.2     1102.4     1158.0     1195.5     1253.3     1306.0     1351.7     1407.7
                                                              OT      981.9     1053.7     1102.8     1144.0     1201.7     1257.6     1305.4     1361.3
--------------------------------------------------------------------------------------------------------------------------------------------------------

     Credit levels
       The following tables show the credit levels in the 
     aggregate and by function included in the conference 
     agreement.

                                CREDIT LEVELS IN CONFERENCE AGREEMENT BY FUNCTION
                                              [Dollars in billions]
----------------------------------------------------------------------------------------------------------------
                                        1996       1997       1998       1999       2000       2001       2002
----------------------------------------------------------------------------------------------------------------
Function 050:
    Direct loans...................        0.0        0.0        0.0        0.0        0.0        0.0        0.0
    Guaranteed loans...............        1.7        1.7        1.7        1.7        1.7        1.7        1.7
Function 150:
    Direct loans...................        5.7        5.7        5.7        5.7        5.7        5.7        5.7
    Guaranteed loans...............       18.3       18.3       18.3       18.3       18.3       18.3       18.3
Function 270:
    Direct loans...................        1.2        1.2        1.2        1.2        1.2        1.2        1.2
    Guaranteed loans...............        0.0        0.0        0.0        0.0        0.0        0.0        0.0
Function 300:
    Direct loans...................        0.1        0.1        0.1        0.1        0.1        0.1        0.1
    Guaranteed loans...............        0.0        0.0        0.0        0.0        0.0        0.0        0.0
Function 350:
    Direct loans...................       11.5       11.5       10.9       11.6       11.4       11.1       10.9
    Guaranteed loans...............        5.7        5.7        5.7        5.7        5.7        5.7        5.7
Function 370:
    Direct loans...................        1.4        1.4        1.4        1.4        1.4        1.4        1.4
    Guaranteed loans...............      123.1      123.1      123.1      123.1      123.1      123.1      123.1
Function 400:
    Direct loans...................        0.2        0.2        0.2        0.2        0.2        0.2        0.2
    Guaranteed loans...............        0.0        0.0        0.0        0.0        0.0        0.0        0.0
Function 450:
    Direct loans...................        2.7        2.7        2.7        2.7        2.7        2.7        2.7
    Guaranteed loans...............        1.2        1.2        1.2        1.2        1.2        1.2        1.2
Function 500:
    Direct loans...................       13.6       16.3       19.1       21.8       21.9       22.0       22.2
    Guaranteed loans...............       16.3       15.9       15.2       14.3       15.0       15.8       16.6
Function 550:
    Direct loans...................        0.0        0.0        0.0        0.0        0.0        0.0        0.0
    Guaranteed loans...............        0.3        0.3        0.3        0.3        0.3        0.3        0.3
Function 600:
    Direct loans...................        0.0        0.0        0.0        0.0        0.0        0.0        0.0
    Guaranteed loans...............        0.1        0.1        0.1        0.1        0.1        0.1        0.1
Function 700:
    Direct loans...................        1.2        1.1        1.0        1.0        1.2        1.4        1.7
    Guaranteed loans...............       26.7       21.6       19.7       18.6       19.3       19.9       20.6
                                    ----------------------------------------------------------------------------
Grand total:
    Direct loans...................       37.6       40.2       42.3       45.7       45.8       45.8       46.1
    Guaranteed loans...............      193.4      187.9      185.3      183.3      184.7      186.1      187.6
----------------------------------------------------------------------------------------------------------------


[[Page H6288]]

                             RECONCILIATION

(Sec. 4 of the House resolution, sec. 105 of the Senate amendment, and 
                 sec. 105 of the conference agreement)

       The following tables show the instructions to the various 
     authorizing committees of the House and Senate pursuant to 
     section 301(b)(2) and section 310 of the Congressional Budget 
     Act. Those sections authorize the concurrent resolution on 
     the budget to include reconciliation instructions to the 
     various committees to implement the amounts and levels in 
     that resolution. The reconciliation instructions in this 
     concurrent resolution of the budget require the committees to 
     report changes in law that, based on CBO and Budget Committee 
     scoring, meet the specified targets in their instructions. 
     Those legislative changes are to be reported to the 
     appropriate Budget Committee by September 22, 1995.

                                  SENATE COMMITTEE RECONCILIATION INSTRUCTIONS
                                              [Dollars in millions]
----------------------------------------------------------------------------------------------------------------
                            Committee                                          1996        5-Year       7-Year
----------------------------------------------------------------------------------------------------------------
Agriculture, Nutrition and Forestry.............................       OT      -$2,503     -$29,059     -$48,402
Armed Services..................................................       OT       -1,571       -1,888       -2,199
Banking, Housing and Urban Affairs..............................       OT         -481       -1,698       -2,391
Commerce, Science and Transportation............................       OT         -114       -9,088      -15,036
Energy and Natural Resources....................................       OT         -354       -4,292       -4,001
Environment and Public Works....................................       OT         -118       -1,308       -2,250
Finance.........................................................       OT      -15,328     -272,974     -530,359
Governmental Affairs............................................       DR         -524       -5,357       -9,844
Judiciary.......................................................       OT  ...........         -238         -476
Labor and Human Resources.......................................       OT         -809       -6,956      -10,779
Veterans' Affairs...............................................       OT         -274       -3,614       -6,392
                                                                 -----------------------------------------------
    Total reconciliation instructions...........................       OT      -22,076     -336,472     -632,129
----------------------------------------------------------------------------------------------------------------


                    RECONCILIATION BY HOUSE COMMITTEE
                        [In millions of dollars]
------------------------------------------------------------------------
                                                    1996 to     1996 to
              Committee                   1996       2000        2002
------------------------------------------------------------------------
Agriculture:
    Food stamps......................     26,748     133,246     192,270
    All other programs...............     10,506      44,741      59,232
Banking and Financial Services:          -13,087     -50,061     -65,112
 Direct spending.....................
Commerce: Direct spending............    285,537   1,592,240   2,361,708
Economic & Educational Opportunities:
    Direct spending..................     16,026      77,346     110,936
    Authorization....................       -720      -5,810      -8,770
Government Reform & Oversight:
    Direct spending..................     57,743     310,364     449,583
    Deficit reduction................        -85        -775      -1,127
International Relations:
    Direct spending..................     14,243      82,072      83,221
    Deficit reduction................         -1         -14         -22
Judiciary: Direct spending...........      2,580      13,734      19,530
National Security: Direct spending...     39,601     226,931     331,210
Resources: Direct spending...........      1,536       7,816      12,871
Transportation & Infrastructure:          16,615      83,070     116,811
 Direct spending.....................
Veterans Affairs: Direct spending....     19,041     106,163     154,884
Ways & Means: Direct spending........    349,172   2,010,751   3,002,706
Offset to Multiple Jurisdictions:
    Direct spending..................     -9,830    -140,151    -269,826
    Deficit reduction................          1          14          22
                                      ----------------------------------
  Total
      Direct spending................    816,630   4,478,262   6,550,004
      Deficit reduction..............        -85        -875      -1,387
      Revenues.......................          0   1,304,215   7,938,254
      Authorization..................       -720      -5,810      -8,770
                                      ----------------------------------
Ways & Means Revenues................  .........   1,304,215   7,938,254
------------------------------------------------------------------------

        The conference agreement includes in the reconciliation 
     directives an instruction to increase the statutory limit on 
     the public debt. The conferees intend that the debt limit be 
     enacted as separated legislation and not as part of 
     reconciliation. However, if debt limit legislation has not 
     been enacted this instruction would authorize the committees 
     of jurisdiction to include the debt limit in the 
     reconciliation bill.
       Because the goal of this resolution is to achieve a 
     balanced budget in 2002 in a manner that generates economic 
     dividends, the conferees discourage committees from 
     attempting to meet their reconciliation instructions with 
     changes that only appear to reduce the deficit (through 
     timing changes or other artifices) rather than changes with 
     real economic effects. For example, the 1993 budget 
     reconciliation bill included a provision directing the 
     Federal Reserve to transfer $213 million from its surplus 
     capital account to the Treasury over 1997 and 1998. Because 
     the Federal Reserve is not included in the unified budget, 
     the slated transfer was counted as savings for reconciliation 
     purposes even though there is general agreement that the 
     transfer is a timing gimmick, acts like an intragovernmental 
     transfer, and leaves the private sector and the rest of the 
     economy unaffected. The Congressional Budget Office concurs 
     with the conferees that such a transfer has no real economic 
     impact on the deficit. Given this understanding, the 
     conferees (using the authority provided to the budget 
     committees for estimating outlays and revenues by section 
     310(d)(4) of the Congressional Budget Act) direct the 
     Congressional Budget Office to not score any savings for any 
     new legislation that might affect the Federal Reserve's 
     transfer of the surplus capital account to the Treasury.


                      ALLOCATIONS AMONG COMMITTEES

       Sections 302(a) and 602(a) of the Congressional Budget Act 
     of 1974 (the Budget Act) require the joint explanatory 
     statement of managers accompanying the conference report on a 
     concurrent resolution on the budget (the budget resolution) 
     to include committee allocations, based on the amounts in the 
     budget resolution as recommended in the conference report. 
     These allocations allocate the appropriate level of total new 
     budget authority, outlays, new entitlement authority (for the 
     House only), and Social Security outlays (for the Senate 
     only) in the budget resolution among each committee of the 
     Senate and the House of Representatives that has jurisdiction 
     over legislation providing those amounts.
       Section 602 further requires that the allocations include 
     an allocation for the first fiscal year covered by the budget 
     resolution (fiscal year 1996) and for the total of the first 
     fiscal year and the four succeeding fiscal years covered by 
     the budget resolution (fiscal years 1996 through 2000). These 
     allocations form the basis for congressional enforcement of 
     the budget resolution through points of order under the 
     Budget Act. These allocations follow:

SENATE COMMITTEE BUDGET AUTHORITY AND OUTLAY ALLOCATIONS PURSUANT TO SECTION 302 OF THE CONGRESSIONAL BUDGET ACT
                                             BUDGET YEAR TOTAL: 1996
                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                   Direct spending       Entitlements funded in
                                                                    jurisdiction          annual appropriations
                          Committee                          ---------------------------------------------------
                                                                 Budget                    Budget
                                                               authority     Outlays     authority     Outlays
----------------------------------------------------------------------------------------------------------------
Appropriations..............................................      772,349      807,374  ...........  ...........
Appropriations (Violent Crime Trust Fund)...................        4,087        2,227  ...........  ...........
Agriculture, Nutrition, and Forestry........................        6,896        4,859       18,566        8,096
Armed Services..............................................       40,159       39,806  ...........  ...........
Banking, Housing, and Urban Affairs.........................        4,143       -8,527  ...........  ...........
Commerce, Science, and Transportation.......................        2,619          -33          584          581
Energy and Natural Resources................................        1,121          951           48           37
Environment and Public Works................................       19,811        1,750  ...........  ...........
Finance.....................................................      631,582      628,118      119,856      120,666
Foreign Relations...........................................       13,926       14,093  ...........  ...........
Governmental Affairs........................................       51,873       50,760  ...........  ...........
Judiciary...................................................        2,227        2,170          230          229
Labor and Human Resources...................................        6,117        6,276        2,155        1,869
Rules and Administration....................................           94          204  ...........  ...........
Veterans Affairs............................................        1,400        1,423       19,235       17,686
Select Indian Affairs.......................................          409          378  ...........  ...........
Small Business..............................................            3         -450  ...........  ...........
Not allocated to committees.................................     -273,356     -263,279  ...........  ...........
                                                             ---------------------------------------------------
    Total...................................................    1,285,500    1,288,100      160,674      149,164
----------------------------------------------------------------------------------------------------------------

  


SENATE COMMITTEE BUDGET AUTHORITY AND OUTLAY ALLOCATIONS PURSUANT TO SECTION 302 OF THE CONGRESSIONAL BUDGET ACT
                                           FIVE-YEAR TOTAL: 1996-2000
                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                   Direct spending       Entitlements funded in
                                                                    jurisdiction          annual appropriations
                          Committee                          ---------------------------------------------------
                                                                 Budget                    Budget
                                                               authority     Outlays     authority     Outlays
----------------------------------------------------------------------------------------------------------------
Agriculture, Nutrition, and Forestry........................       16,389        4,241       86,339       46,402
Armed Services..............................................      228,914      227,993  ...........  ...........
Banking, Housing, and Urban Affairs.........................       21,890      -33,850  ...........  ...........
Commerce, Science, and Transportation.......................        5,389       -8,794        3,254        3,236
Energy and Natural Resources................................        4,490        4,179          228          232
Environment and Public Works................................      121,753        5,724  ...........  ...........
----------------------------------------------------------------------------------------------------------------



[[Page H6289]]

SENATE COMMITTEE BUDGET AUTHORITY AND OUTLAY ALLOCATIONS PURSUANT TO SECTION 302 OF THE CONGRESSIONAL BUDGET ACT
                                      FIVE-YEAR TOTAL: 1996-2000--Continued
                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                   Direct spending       Entitlements funded in
                                                                    jurisdiction          annual appropriations
                          Committee                          ---------------------------------------------------
                                                                 Budget                    Budget
                                                               authority     Outlays     authority     Outlays
----------------------------------------------------------------------------------------------------------------
Finance.....................................................    3,393,472    3,377,584      657,433      658,546
Foreign Relations...........................................       57,253       61,166  ...........  ...........
Governmental Affairs........................................      280,326      275,090  ...........  ...........
Judiciary...................................................       11,593       11,305        1,153        1,149
Labor and Human Resources...................................       26,159       25,023       12,186       11,427
Rules and Administration....................................          470          556  ...........  ...........
Veterans Affairs............................................        6,228        7,247      100,341       99,237
Select Indian Affairs.......................................        2,149        1,987  ...........  ...........
Small Business..............................................           12       -1,745  ...........  ...........
----------------------------------------------------------------------------------------------------------------


    FISCAL YEAR 1996--ALLOCATION OF SPENDING RESPONSIBILITY TO HOUSE
   COMMITTEES PURSUANT TO SEC. 602(a) OF THE CONGRESSIONAL BUDGET ACT
                        [In millions of dollars]
------------------------------------------------------------------------
                                      Budget                 Entitlement
                                    authority     Outlays     authority
------------------------------------------------------------------------
  HOUSE APPROPRIATIONS COMMITTEE
Current level (enacted law):
    050  National Defense........          214          214           0
    150  International Affairs...          169          169           0
    300  Natural Resources and           2,094        1,947           0
     Environment.................
    350  Agriculture.............       11,967        1,530           0
    370  Commerce and Housing               38          138           0
     Credit......................
    400  Transportation..........          584          581           0
    500  Education, Training,           11,298       11,243           0
     Employment, and Social
     Services....................
    550  Health..................      103,457      103,461           0
    570  Medicare................       54,785       54,785           0
    600  Income Security.........       53,673       54,192           0
    650  Social Security.........           23           23           0
    700  Veterans Benefits and          19,346       17,783           0
     Services....................
    750  Administration of                 411          409           0
     Justice.....................
    800  General Government......        7,902        7,890           0
    900  Net Interest............           15           15           0
                                  --------------------------------------
      Subtotals..................      265,976      254,381           0
                                  ======================================
  HOUSE APPROPRIATONS COMMITTEE:
 
Discretionary appropriations
 action (assumed legislation):
    050  National Defense........      265,406      264,043           0
    150  International Affairs...       18,292       20,718           0
    250  General Science, Space         16,656       16,754           0
     and Technology..............
    270  Energy..................        5,545        6,403           0
    300  Natural Resources and          19,107       20,153           0
     Environment.................
    350  Agriculture.............        3,585        3,793           0
    370  Commerce and Housing            2,333        2,575           0
     Credit......................
    400  Transportation..........       13,887       38,444           0
    450  Community and Regional          6,601       10,261           0
     Development.................
    500  Education, Training,           35,962       40,345           0
     Employment, and Social
     Services....................
    550  Health..................       20,943       21,164           0
    570  Medicare................        2,992        2,992           0
    600  Income Security.........       35,204      390,234           0
    650  Social Security.........            0        2,574           0
    700  Veterans Benefits and          18,022       18,933           0
     Services....................
    750  Administration of              15,387       16,154           0
     Justice.....................
    800  General Government......       11,581       12,033           0
    920  Allowances..............       -6,429       -4,805           0
                                  --------------------------------------
      Subtotals..................      485,074      531,768           0
Violent Crime Reduction Trust
 Fund:
    750  Administration of               4,087        2,227           0
     Justice.....................
Discretionary action by other
 committees (assumed entitlement
 legislation):
    500  Education, training,           -1,686       -1,138           0
     employment, and social
     services....................
    550  Health..................       -3,719       -3,719           0
    600  Income security.........       20,197       20,200           0
    700  Veterans benefits and            -208         -195           0
     services....................
    750  Administration of                  -4           -4           0
     justice.....................
    800  General government......            4            4           0
                                  --------------------------------------
      Subtotals..................       14,584       15,148           0
      Committee totals...........      769,720      803,523           0
                                  ======================================
   HOUSE AGRICULTURE COMMITTEE
 
Current level (enacted law):
    150  International affairs...         -474         -474           0
    270  Energy..................            0         -645           0
    300  Natural Resources and             471          483           0
     Environment.................
    350  Agriculture.............        9,041        7,636       8,896
    400  Transportation..........           40           40           0
    450  Community and Regional            257          237           0
     Development.................
    600  Income Security.........            0            0          11
    800  General government......          251          250           0
    900  Net Interest............            0            0          15
                                  --------------------------------------
      Subtotals..................        9,585        7,527       8,922
                                  ======================================
Discretionary action (Assumed
 legislation):
    350  Agriculture.............         -992         -992        -992
    600  Income Security.........  ...........  ...........       1,169
                                  --------------------------------------
      Subtotals..................         -992         -992         177
      Committee totals...........        8,593        6,535       9,099
                                  ======================================
HOUSE NATIONAL SECURITY COMMITTEE
 
Current level (enacted law):
    050  National Defense........       12,592       12,355           0
    300  Natural Resources and               3            2           0
     Environment.................
    400  Transportation..........            0           -5           0
    500  Education, Training,                4            3           0
     Employment, and Social
     Services....................
    600  Income Security.........       28,534       28,427           0
    700  Veterans Benefits and             197          190         190
     Services....................
                                  --------------------------------------
    Subtotals....................       41,330       40,971         190
                                  ======================================
Discretionary action (Assumed
 legislation):
    600  Income security.........          382          382         382
    950  Undistributed Offsetting       -1,550       -1,550           0
     receipts....................
                                  --------------------------------------
      Subtotals..................       -1,168       -1,168         382
      Committee totals...........       40,162       39,803         572
                                  ======================================
   HOUSE BANKING AND FINANCIAL
        SERVICES COMMITTEE
 
Current level (enacted law):
    150  International Affairs...         -585       -1,930           0
    370  Commerce and Housing              364       -9,258           0
     Credit......................
    450  Community and Regional              5          -79           0
     Development.................
    600  Income Security.........           50          100           0
    800  General Government......            6          -27           0
    900  Net Interest............        3,118        3,118           0
                                  --------------------------------------
      Subtotals..................        2,959       -8,074           0
                                  ======================================
Discretionary action (assumed
 legislation):
    370  Commerce and Housing             -210         -210           0
     Credit......................
    450  Community and Regional           -271         -271           0
     Development.................
                                  --------------------------------------
      Subtotals..................         -481         -481           0
      Committee totals...........        2,478       -8,555           0
                                  ======================================
  HOUSE ECONOMIC AND EDUCATIONAL
     OPPORTUNITIES COMMITTEE
 
Current level (enacted law):
    500  Education, Training,            3,891        3,726       4,833
     Employment, and Social
     Services....................
    600  Income Security.........          153          143       9,575
                                  --------------------------------------
      Subtotals..................        4,044        3,870      14,409
                                  ======================================
Discretionary action (assumed
 legislation):
    500  Education, Training,           -1,068         -723        -723
     Employment, and Social
     Services....................
    600  Income Security.........          940          845      -1,292
                                  --------------------------------------
      Subtotals..................         -128          122      -2,015
      Committee totals...........        3,916        3,992      12,394
                                  ======================================
     HOUSE COMMERCE COMMITTEE
 
Current level (enacted law):
    300  Natural Resources and               0            3           0
     Environment.................
    500  Education, Training,                1            1           0
     Employment, and Social
     Services....................
    550  Health..................          496          489      99,517
    800  General Government......            8            8           0
                                  --------------------------------------
      Subtotals..................          506          501      99,517
Discretionary action (assumed
 legislation):
    270  Energy..................            0          150           0
    370  Commerce and Housing              -69          -69           0
     Credit......................
    550  Health..................          -86          -86      -3,619
    950  Undistributed offsetting         -400         -400           0
     receipts....................
                                  --------------------------------------
      Subtotals..................         -555         -405      -3,619
      Committee totals...........          -49           96      95,898
                                  ======================================
  HOUSE INTERNATIONAL RELATIONS
            COMMITTEE
 
Current level (enacted law)
    150  International Affairs...       13,416       13,580           0
    400  Transportation..........            7           10           0
    600  Income Security.........          506          506         494
    800  General Government......            5            5           0
                                  --------------------------------------
      Subtotals..................       13,933       14,100         494
                                  ======================================
Discretionary action (assumed
 legislation):
    950  Undistributed offsetting           -3           -3           0
     receipts....................
                                  --------------------------------------
      Subtotals..................           -3           -3           0
      Committee totals...........       13,930       14,097         494
                                  ======================================
   HOUSE GOVERNMENT REFORM AND
       OVERSIGHT COMMITTEE
 
Current level (enacted law):
    550  Health..................            0          -44       3,818
    600  Income Security.........       39,209       38,140      38,140
    750  Administration of                  40           40          40
     Justice.....................
    800  General Government......       12,870       12,870           0
    900  Net Interest............           93           93           0
                                  --------------------------------------
      Subtotals..................       52,212       51,099      41,998
                                  ======================================
Discretionary action (assumed
 legislation):
    550  Health..................            0            0        -100
    750  Administration of                   0            0          -4
     Justice.....................
    800  General Government......         -100         -100          -2
    950  Undistributed offsetting         -336         -336           0
     receipts....................
                                  --------------------------------------
      Subtotals..................         -436         -436        -106
      Committee totals...........       51,776       50,663      41,892
                                  ======================================
    HOUSE OVERSIGHT COMMITTEE
 
Current level (enacted law):
    500  Education, Training,               21           18           0
     Employment, and Social
     Services....................

[[Page H6290]]

 
    800  General Government......           72          186         275
                                  --------------------------------------
      Subtotals..................           93          204         275
      Committee totals...........           93          204         275
                                  ======================================
    HOUSE RESOURCES COMMITTEE
 
Current level (enacted law):
    270  Energy..................          -93         -377           0
    300  Natural Resources and             772          700           0
     Environment.................
    370  Commerce and Housing               67           11           0
     Credit......................
    450  Community and Regional            405          373           0
     Development.................
    550  Health..................            5            5           0
    800  General Government......          863          865         165
                                  --------------------------------------
      Subtotals..................        2,018        1,577         165
                                  ======================================
Discretionary action (assumed
 legislation):
    300  Natural Resources and             -29          -27           0
     Environment.................
    950  Undistributed offsetting          -77          -77           0
     receipts....................
                                  --------------------------------------
      Subtotals..................         -106         -104           0
      Committee totals...........        1,912        1,473         165
                                  ======================================
    HOUSE JUDICIARY COMMITTEE
 
Current level (enacted law):
    370  Commerce and Housing              197          197           0
     Credit......................
    600  Income Security.........           62           18           9
    750  Administration of               1,451        1,439         233
     Justice.....................
    800  General Government......          517          517           0
                                  --------------------------------------
      Subtotals..................        2,227        2,170         242
      Committee totals...........        2,227        2,170         242
                                  ======================================
     HOUSE TRANSPORTATION AND
     INFRASTRUCTURE COMMITTEE
 
Current level (enacted law):
    270  Energy..................          943          820           0
    300  Natural Resources and             417          361           0
     Environment.................
    400  Transportation..........       22,227           12         581
    450  Community and Regional              5          105           0
     Development.................
    600  Income Security.........       14,795       14,774           0
    800  General Government......           16           16           0
                                  --------------------------------------
      Subtotals..................       38,403       16,088         581
                                  ======================================
Discretionary action (assumed
 legislation):
    300  Natural resources and              -6           -6           0
     environment.................
    400  Transportation..........          -45          -45           0
    450  Community and regional            -12          -12           0
     development.................
                                  --------------------------------------
      Subtotals..................          -63          -12           0
      Committee totals...........       38,340       16,025         581
                                  ======================================
     HOUSE SCIENCE COMMITTEE
 
Current level (enacted law):
    250  General science, space,            39           39           0
     and technology..............
    500  Education, training,                1            1           0
     employment, and social
     services....................
                                  --------------------------------------
      Subtotals..................           40           40           0
      Committee totals...........           40           40           0
                                  ======================================
  HOUSE SMALL BUSINESS COMMITTEE
 
Current level (Enacted law):
    370  Commerce and housing                3         -164           0
     credit......................
    450  Community and regional              0         -286           0
     development.................
                                  --------------------------------------
      Subtotals..................            3         -450           0
      Committee totals...........            3         -450           0
                                  ======================================
 HOUSE VETERANS AFFAIRS COMMITTEE
 
Current level (enacted law):
    700  Veterans Benefits and           1,519        1,532      19,303
     Services....................
                                  --------------------------------------
      Subtotals..................        1,519        1,532      19,303
                                  ======================================
Discretionary action (assumed
 legislation):
    700  Veterans Benefits and             -79          -79        -195
     Services....................
                                  --------------------------------------
      Subtotals..................          -79          -79         195
      Committee totals...........        1,440        1,453      19,108
                                  ======================================
  HOUSE WAYS AND MEANS COMMITTEE
 
Current level (enacted law):
    500  Education, training,                0            0       8,152
     employment, and social
     services....................
    550  Health..................            0          -28           0
    570  Medicare................      206,253      203,935     199,066
    600  Income security.........       43,611       42,484      36,916
    650  Social Security.........        7,371        7,371           0
    750  Administration of                 405          370           0
     Justice.....................
    800  General government......          540          534           0
    900  Net interest............      373,259      373,259     373,259
                                  --------------------------------------
      Subtotals..................      631,438      627,926     617,393
                                  ======================================
Discretionary action (assumed
 legislation):
    500  Education, training,                0            0      -1,138
     employment, and social
     services....................
    570  Medicare................       -8,000       -8,000           0
    600  Income security.........        1,821        1,369      -2,380
    900  Net interest............         -984         -984        -984
                                  --------------------------------------
      Subtotals..................       -7,164       -7,615      -4,502
      Committee totals...........      624,275      620,311     612,891
                                  ======================================
            UNASSIGNED
 
Current level (enacted law):
    050  National Defense........      -13,511      -13,512           0
    150  International Affairs...      -15,018      -15,064           0
    250  General Science, Space,             5            8           0
     and Technology..............
    270  Energy..................       -1,794       -1,850           0
    300  Natural Resources and          -3,329       -3,315           0
     Environment.................
    350  Agriculture.............      -10,501         -167           0
    370  Commerce and Housing             -123         -120           0
     Credit......................
    400  Transportation..........         -101         -137           0
    450  Community and Regional           -389         -428           0
     Development.................
    500  Education, Training,              -26          -77           0
     Employment, and Social
     Services....................
    550  Health..................          -96         -141           0
    570  Medicare................      -79,930      -80,012           0
    600  Income Security.........      -13,235      -13,214           0
    650  Social Security.........       -1,494       -1,468           0
    700  Veterans Benefits and          -1,296       -1,263           0
     Services....................
    750  Administration of              -1,977       -1,935           0
     Justice.....................
    800  General Government......      -22,439      -22,457           0
    900  Net interest............      -77,102      -77,102     -62,907
    920  Allowances..............           29            5           0
    950  Undistributed offsetting      -31,334      -31,334           0
     receipts....................
                                  --------------------------------------
      Subtotals..................     -273,663     -263,585     -62,907
                                  ======================================
Discretionary action (assumed
 legislation):
    800  General government......          306          306  ...........
                                  --------------------------------------
      Subtotals..................          306          306           0
      Committee totals...........     -273,357     -263,279     -62,907
                                  ======================================
      Total--Current level.......      792,623      749,875     740,583
      Total--Discretionary action      492,876      538,225      -9,878
                                  --------------------------------------
        Grand totals.............    1,285,500    1,288,100     730,705
------------------------------------------------------------------------


              ALLOCATION OF SPENDING RESPONSIBILITY TO HOUSE COMMITTEES PURSUANT TO SECTIONS 302(a)/602(a) OF THE CONGRESSIONAL BUDGET ACT
                                                        [By fiscal year, in millions of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               1996            1997            1998            1999            2000        1996 to 2000
--------------------------------------------------------------------------------------------------------------------------------------------------------
                Appropriations Committee
Current level:
    Budget authority....................................         265,976         290,731         312.480         340,215         375,556       1,584,958
    Outlays.............................................         254,381         281,819         304,617         332,962         370,563       1,544,342
Discretionary action:
    Defense:
        Budget authority................................         265,406         267,962         269,731         272,380         275,064       1,350,543
        Outlays.........................................         264,043         265,734         264,531         267,883         271,571       1,333,762
    International:
        Budget authority................................          18,292          17,081          15,780          15,100          14,733          80,986
        Outlays.........................................          20,718          19,192          17,680          16,490          15,620          89,700
    Domestic:
        Budget authority................................         205,463         202,387         210,608         201,227         206,082       1,025,839
        Outlays.........................................         249,234         239,216         235,322         231,747         233,268       1,188,786
        Subtotal:
            Budget authority............................         489,161         487,430         496,192         488,707         495,879       2,457,369
            Outlays.....................................         533,995         524,141         517,533         516,121         520,459       2,612,249
Discretionary action by other committees:
    Budget authority....................................          14,584           6,430             735          -8,551         -18,065          -4,867
    Outlays.............................................          15,148           6,638             212          -8,644         -18,126          -4,772
    Committee total:
        Budget authority................................         769,720         784,591         809,406         820,370         853,370       4,037,457
        Outlays.........................................         803,523         812,599         822,361         840,439         872,896       4,151,818
                  Agriculture Committee
Current level (Enacted law):
    Budget authority....................................           9,585           9,448           9,331           9,125           8,877          46,366
    Outlays.............................................           7,527           7,121           7,092           6,747           6,504          34,991
Discretionary action:
    Budget authority....................................            -992          -1,332          -1,960          -1,915          -2,278          -8,477
    Outlays.............................................            -992          -1,332          -1,960          -1,915          -2,278          -8,477
    Committee total:
        Budget authority................................           8,593           8,116           7,371           7,210           6,599          37,889
        Outlays.........................................           6,535           5,789           5,132           4,832           4,226          26,514
New entitlement authority...............................             177            -112            -696            -608            -925          -2,164

[[Page H6291]]

 
               National Security Committee
Current level (Enacted Law):
    Budget authority....................................          41,330          43,031          44,997          47,812          50,017         227,187
    Outlays.............................................          40,971          42,825          44,864          47,640          49,840         226,140
Discretionary action:
    Budget authority....................................          -1,168           1,119           1,120             354             308           1,733
    Outlays.............................................          -1,168           1,119           1,120             354             308           1,733
    Committee total:
        Budget authority................................          40,162          44,150          46,117          48,166          50,325         228,920
        Outlays.........................................          39,803          43,944          45,984          47,994          50,148         227,873
New entitlement authority...............................             382             642             650             -91            -116           1,467
        BANKING AND FINANCIAL SERVICES COMMITTEE
 
Current level (enacted law):
    Budget authority....................................           2,959           2,345           1,767           1,265           1,447           9,783
    Outlays.............................................          -8,074          -6,105          -7,441          -5,484          -4,782         -31,886
Discretionary action:
    Budget authority....................................            -481            -284            -297            -311            -325          -1,709
    Outlays.............................................            -481            -284            -297            -311            -325          -1,698
    Committee total
        Budget authority................................           2,478           2,061           1,470             954           1,122           8,085
        Outlays.........................................          -8,555          -6,389          -7,738          -5,795          -5,107         -33,584
 
             ECONOMIC OPPORTUNITY COMMITTEE
 
Current level (enacted law):
    Budget authority....................................           4,044           3,224           3,084           3,377           3,617          17,346
    Outlays.............................................           3,870           3,067           2,726           2,898           3,133          15,694
Discretionary action:
    Budget authority....................................            -128            -211            -406            -613            -618           1,976
    Outlays.............................................             122            -174            -334            -537            -611          -1,534
    Committee total:
    Budget authority....................................           3,916           3,013           2,678           2,764           2,999          15,370
    Outlays.............................................           3,992           2,893           2,392           2,361           2,522          14,160
New entitlement authority...............................          -2,015          -3,281          -2,056          -2,135          -1,978         -11,465
Current level (enacted law):
    Budget authority....................................             506             499             487             442             423           2,357
    Outlays.............................................             501             495             484             441             422           2,343
Discretionary action:
    Budget authority....................................            -555          -1,862          -2,466          -3,197          -3,301         -11,381
    Outlays.............................................            -405          -1,854          -2,476          -3,285          -3,460         -11,480
    Committee total:
        Budget authority................................             -49          -1,363          -1,979          -2,755          -2,878          -9,024
        Outlays.........................................              96          -1,359          -1,992          -2,844          -3,038          -9,137
New entitlement authority...............................          -3,619          -7,886         -15,840         -24,361         -33,229         -84,935
 
            INTERNATIONAL RELATIONS COMMITTEE
 
Current level (enacted law):
    Budget authority....................................          13,933          12,778          11,140           9,373          10,064          57,288
    Outlays.............................................          14,100          13,440          12,359          10,922          10,380          61,201
Discretionary action:
    Budget authority....................................              -3              -4              -4              -4              -4             -19
    Outlays.............................................              -3              -4              -4              -4              -4             -19
    Committee total:
        Budget authority................................          13,930          12,774          11,136           9,369          10,060          57,269
        Outlays.........................................          14,097          13,436          12,355          10,918          10,376          61,182
New entitlement authority...............................               0               0              -1              -2              -3              -6
        Government Reform and Oversight Committee
Current level (enacted law):
    Budget authority....................................          52,212          54,388          56,472          58,656          60,980         282,708
    Outlays.............................................          51,099          53,381          55,541          57,652          59,799         277,472
Discretionary action:
    Budget authority....................................            -436            -558            -580            -636            -693          -2,903
    Outlays.............................................            -436            -558            -580            -636            -693          -2,903
    Committee total:
    Budget authority....................................          51,776          53,830          55,892          58,020          60,287         279,805
    Outlays.............................................          50,663          52,823          54,961          57,016          59,106         274,569
New entitlement authority...............................            -106            -227            -475            -759          -1,162          -2,729
                   Oversight Committee
Current level (enacted law):
    Budget authority....................................              93              93              93              94              95             468
    Outlays.............................................             204              28              26              54             242             554
          Public Lands and Resources Committee
Current level (enacted law):
    Budget authority....................................           2,018           2,172           2,254           2,221           2,231          10,896
    Outlays.............................................           1,577           1,765           2,230           2,296           2,282          10,150
Discretionary action:
    Budget authority....................................            -106            -882          -2,564             428             426          -2,698
    Outlays.............................................            -104            -881          -2,563             428             427          -2,693
    Committee total:
    Budget authority....................................           1,912           1,290            -310           2,649           2,657           8,198
    Outlays.............................................           1,473             884            -333           2,724           2,709           7,457
                   Judiciary Committee
Current level (enacted law):
    Budget authority....................................           2,227           2,320           2,330           2,425           2,529          11,831
    Outlays.............................................           2,170           2,264           2,273           2,367           2,469          11,543
Discretionary action:
    Budget authority....................................               0               0               0            -119            -119            -238
    Outlays.............................................               0               0               0            -119            -119            -238
    Committee total:
    Budget authority....................................           2,227           2,320           2,330           2,306           2,410          11,593
    Outlays.............................................           2,170           2,264           2,273           2,248           2,350          11,305
       Transportation and Infrastructure Committee
Current level (enacted law):
    Budget authority....................................          38,403          42,369          16,419          16,658          16,752         130,601
    Outlays.............................................          16,088          15,858          15,906          16,109          16,291          80,252
Discretionary action:
    Budget authority....................................             -63           2,218          29,295          30,215          31,179          92,844
    Outlays.............................................             -63             -71             -73            -124            -126            -457
    Committee total:
    Budget authority....................................          38,340          44,588          45,714          46,873          47,931         223,446
    Outlays.............................................          16,025          15,787          15,833          15,985          16,165          79,795
                    Science Committee
Current level (Enacted Law):
    Budget authority....................................              40              41              41              41              41             204
    Outlays.............................................              40              41              41              41              41             204
                Small Business Committee
Current level (Enacted law):
    Budget authority....................................               3               3               2               2               2              12
    Outlays.............................................            -450            -170            -526            -452            -147          -1,745
               Veterans' Affairs Committee
Current level (Enacted Law):
    Budget authority....................................           1,519           1,450           1,389           1,315           1,241           6,914

[[Page H6292]]

 
    Outlays.............................................           1,532           1,538           1,559           1,568           1,473           7,670
Discretionary action:
    Budget authority....................................             -79             -82            -169            -175            -181            -686
    Outlays.............................................             -79             -82            -169            -175            -181            -686
    Committee total:
        Budget authority................................           1,440           1,368           1,220           1,140           1,060           6,228
        Outlays.........................................           1,453           1,456           1,390           1,393           1,292           6,984
New entitlement authority...............................            -195            -265            -323            -988          -1,157          -2,928
                Ways and Means Committee
Current level (Enacted Law):
    Budget authority....................................         631,438         669,276         707,615         754,639         802,487       3,565,455
    Outlays.............................................         627,926         666,305         704,666         750,789         799,709       3,549,395
Discretionary action
    Budget authority....................................          -7,163         -22,273         -36,432         -53,445         -73,586        -192,899
    Outlays.............................................          -7,615         -22,270         -36,458         -53,433         -73,569        -193,345
    Committee total:
        Budget authority................................         624,275         647,003         671,183         701,194         728,901       3,372,556
        Outlays.........................................         620,311         644,035         668,208         697,356         726,140       3,356,050
                New Entitlement Authority                         -4,502          -9,505         -14,956         -22,376         -31,556         -82,895
                 Unassigned to Committee
Current level (Enacted Law):
    Budget authority....................................        -273,663        -280,148        -291,012         302,806        -321,143      -1,468,772
    Outlays.............................................        -263,585        -271,832        -283,116        -295,979        -315,185      -1,429,697
Discretionary action:
    Budget authority....................................             306             569             946           1,308           1,763           4,892
    Outlays.............................................             306             569             946           1,308           1,763           4,892
    Committee total:
        Budget authority................................        -273,357        -279,579        -290,065        -301,497        -319,380      -1,463,878
        Outlays.........................................        -263,279        -271,264        -282,169        -294,671        -313,422      -1,424,805
Total current level:
    Budget authority....................................         792,623         854,021         878,891         944,854       1,015,216       4,485,605
    Outlays.............................................         749,875         811,843         863,304         930,572       1,003,035       4,358,629
Total discretionary action:
    Budget authority....................................         492,876         470,278         483,409         452,046         430,384       2,328,993
    Outlays.............................................         538,225         504,957         474,897         449,028         423,465       2,390,572
    Grand totals:
        Budget authority................................       1,285,500       1,324,300       1,362,300       1,396,900       1,445,600       6,814,600
        Outlays.........................................       1,288,100       1,316,800       1,338,200       1,379,600       1,426,500       6,749,200
      Total new entitlement authority...................          -9,878         -20,634         -33,697         -51,319         -70,126        -185,654
--------------------------------------------------------------------------------------------------------------------------------------------------------

                          ECONOMIC ASSUMPTIONS

       Section 301(g)(2) of the Congressional Budget Act requires 
     the joint explanatory statement accompanying a conference 
     report on a budget resolution to set forth the common 
     economic assumptions upon which the joint statement and 
     conference report are based. The conference agreement is 
     based on the economic forecast and projections prepared by 
     the Congressional Budget Office, adjusted for anticipated 
     revisions to the consumer price index (CPI) beginning in 
     1998.
     House resolution
       The House budget resolution assumed that beginning in 1999, 
     the CPI growth projection is revised by 0.6 percentage points 
     a year compared to CBO's assumptions published in its January 
     economic and budget report. CBO's new assessment that the 
     planned 1998 benchmark revision of the CPI by the Bureau of 
     Labor Statistics will lower CPI growth explains 0.2 
     percentage points of the revision. An assumption that fully 
     funding proposed research will remove upward biases in the 
     CPI amounting to 0.4 percentage points accounts for the 
     remaining revision to the CPI.
     Senate amendment
       The Senate amendment assumed that CPI growth would be 
     corrected by 0.2 percentage points from CBO's January 
     assumptions beginning in 1998 when the benchmark revisions 
     are completed. The revision reflects CBO's assessment of the 
     impact of the benchmark revision that CBO did not consider 
     previously.
     Conference agreement
       The conference agreement assumes the Senate amendment.

                                                                  ECONOMIC PROJECTIONS
                                                                    [Calendar Years]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                 Projected
                                     Actual 1994 -------------------------------------------------------------------------------------------------------
                                                      1995         1996         1997         1998         1999         2000         2001         2002
--------------------------------------------------------------------------------------------------------------------------------------------------------
Nominal GDP [Billions of dollars]..        6,735        7,127        7,456        7,847        8,256        8,680        9,128        9,604       10,105
Percent change, year over year:
    Real GDP.......................          4.1          3.1          1.8          2.4          2.3          2.3          2.3          2.3          2.3
    Implicit GDP deflator..........          2.1          2.6          2.8          2.8          2.8          2.8          2.8          2.8          2.8
    CPI-U..........................          2.6          3.1          3.4          3.4          3.2          3.2          3.2          3.2          3.2
Percent, annual:
    Unemployment rate..............          6.1          5.5          5.7          5.8          5.9          6.0          6.0          6.0          6.0
    Three-month Treasury bill rate.          4.2          6.2          5.7          5.3          5.1          5.1          5.1          5.1          5.1
    Ten-year Treasury note rate....          7.1          7.7          7.0          6.7          6.7          6.7          6.7          6.7          6.7
--------------------------------------------------------------------------------------------------------------------------------------------------

                         Function and Revenues

(Secs. 2 and 3 of the House resolution, Secs. 101 and 104 of the Senate 
     amendment, and Secs. 101 and 104 of the conference agreement)


                     Function 050: National Defense

       The House budget resolution provides $2.0 trillion in 
     budget authority and $1.9 trillion in outlays over seven 
     years. The Senate amendment provides $1.9 trillion in budget 
     authority and $1.8 trillion in outlays over seven years. The 
     conference agreement provides $1.9 trillion in budget 
     authority and $1.9 trillion in outlays over seven years.
     House resolution
       The House resolution adds $9.6 billion in budget authority 
     and $4.0 billion in outlays to the Administration's request 
     for 1996. The House resolution assumes that most of the 
     increase is for Procurement and Research, Development, Test 
     and Evaluation activities within the Department of Defense. 
     After 1996, the House resolution assumes that national 
     defense budget authority would grow at about one percent in 
     1997, three percent in 1998, one percent in 1999, two percent 
     in 2000, and then stay at that level through 2002.
       The House resolution adds $69.7 billion to the 
     Administration's requested budget authority over five years 
     and $92.4 billion over seven years.
       The House resolution assumes a 10 percent reduction in the 
     civilian workforce of the Department of Defense beyond 
     reductions already planned.
       The House resolution assumes no changes to mandatory 
     spending in Function 050.
     Senate amendment
       The Senate amendment assumes the President's budget 
     submission for national defense.
       The Senate amendment includes seven-year firewalls between 
     defense and non-defense discretionary spending.
       The Senate amendment assumes no changes to mandatory 
     spending in Function 050.
     Conference agreement
       The conference agreement adds $6.0 billion in budget 
     authority and $2.0 billion in outlays to the Administration's 
     request for 1996. Most of the increase is assumed to be for 
     the procurement of weapons and for research and development 
     activities of the Department of Defense. After 1996, the 
     conference agreement would have national defense budget 
     authority grow at a rate of one percent each year through the 
     year 2002. Outlay calculations are based upon budget 
     authority increases to the Administration's budget request. 
     For the period 1997 through 2001, budget authority increases 
     are assumed to be

[[Page H6293]]

     equally split between procurement and operations and 
     maintenance. In the year 2002 the budget authority increase 
     is assumed to be for procurement.
       The conference agreement adds $32.2 billion to the 
     Administration's requested budget authority over five years 
     and $39.5 billion over seven years. Conceptually, the 
     agreement does three things. First, it ends the decline in 
     defense spending with last year's budget. Second, it ``fills 
     the trough'' of Administration's defense spending plan for 
     the period 1996 through 1998 by providing $28.3 billion more 
     than requested. Finally, it provides a steady and increasing 
     stream of budget authority with which the Department of 
     Defense can plan for the future.
       In providing additional defense funds, the conferees were 
     most persuaded by two programmatic arguments. First, the 
     President's program is underfunded. The Congressional Budget 
     Office estimates that defense costs will rise by more than 
     $25 billion over the 1997 through 2000 period for: 
     congressionally mandated military pay raises and locality pay 
     adjustments; weapons systems cost growth; un-realized base 
     closure savings; and contingency operations. These costs 
     could more than double if weapons systems costs and 
     environmental clean-up costs are higher than anticipated.
       Second, additional defense funds lessen the need for 
     decisionmakers to sacrifice future readiness to meet current 
     readiness requirements. In particular, additional defense 
     funds, in the next few years, can be used to reverse the 60 
     percent decline in procurement spending since 1985, and the 
     $13 billion backlog in real property maintenance. The real 
     property backlog has resulted in more than a quarter of 
     military housing falling into substandard condition. Problems 
     include asbestos, corroded pipes, poor ventilation, faulty 
     heating and cooling systems, and lead-based paint. Reversing 
     these trends without additional funds will result in 
     cancellation of training, postponement of required 
     maintenance, and troops and families having to continue to 
     live in substandard housing.
       Within the funds provided for national defense, the 
     conferees feel that savings can be achieved. The conferees 
     believe that the defense authorizing and appropriations 
     committees should realize savings wherever possible. These 
     savings should include a reduction of at least three percent 
     in the overhead of fiscal year 1996 programs of defense 
     agencies, in a manner so as not to reduce funding for the 
     programmatic activities of these agencies.
       The conference agreement includes three-year firewalls 
     between defense and non-defense discretionary spending, 
     applicable in both Houses.


                  Function 150: International Affairs

       The House budget resolution provides $85.0 billion in 
     budget authority and $88.7 billion in outlays over seven 
     years. The Senate amendment provides $98.4 billion in budget 
     authority and $99.5 billion in outlays over seven years. The 
     conference agreement provides $91.7 billion in budget 
     authority and $94.3 billion in outlays over seven years.
     House resolution
       The House agreed to restructure the various foreign affairs 
     activities by consolidating the Agency for International 
     Development, the U.S. Information Agency, and the Arms 
     Control and Disarmament Agency into the Department of State. 
     In addition, significant reductions--or in some cases 
     outright eliminations--were assumed in development 
     assistance, educational and cultural exchanges, overseas 
     broadcasting, multilateral banks, PL 480, export financing 
     and trade promotion, and international organizations.
     Senate amendment
       Senate amendment assumes consolidations of programs and 
     structure within the Agency for International Development and 
     the U.S. Information Agency and leaves room for their 
     incorporation into the Department of State. The Arms Control 
     and Disarmament Agency is assumed to be incorporated into the 
     Department of State. In other areas, the Senate amendment 
     makes similar assumptions as the House for discretionary 
     spending in Function 150, although total Senate reductions 
     are not as steep after 1996.
     Conference Agreement
       The conference agreement endorses the notion that the 
     entire foreign affairs apparatus of the United States needs 
     to be completely reassessed and restructured. The House has 
     already considered and the Senate will soon consider 
     legislation that begins that process. The conference 
     agreement recognizes that changes are required in the 
     Department of State, U.S. Agency for International 
     Development, the Arms Control and Disarmament Agency, the 
     U.S. Information Agency, various multilateral development 
     banks and international organizations, and numerous 
     miscellaneous foreign affairs activities.


              Function 250: Science, Space, and Technology

       The House budget resolution provides $108.5 billion in 
     budget authority and $109.6 billion in outlays over seven 
     years. The Senate amendment provides $112.5 billion in budget 
     authority and $113.3 billion in outlays over seven years. The 
     conference agreement provides $110.4 billion in budget 
     authority and $111.5 billion in outlays over seven years.
     House resolution
       The House agreed to prioritize basic research at the 
     National Science Foundation (NSF) and emphasize National 
     Aeronautics and Space Administration's (NASA) core missions. 
     Specifically, the House would increase NSF civilian research 
     and related activities (except social, behavioral and 
     economic studies) by three percent annually. In addition, the 
     House would implement NASA management and operational reforms 
     and provide sufficient funds to complete the space station. 
     For high energy and nuclear physics, the House would 
     reemphasize basic research and decommission outmoded 
     facilities.
       Budget savings as a result of these changes are estimated 
     to be $11.6 billion in budget authority and $10.3 billion in 
     outlays over seven years.
     Senate amendment
       The Senate amendment assumes NSF refocussing on its 
     original mission of basic scientific research. As with the 
     House, academic research and infrastructure is maintained at 
     the level proposed in the President's Budget.
       The Senate amendment assumes the President's proposal to 
     streamline NASA through contract management and operational 
     reforms and assumes the President's freeze and reduction for 
     DOE in the outyears.
     Conference agreement
       While function 250 must contribute to deficit reduction, 
     the conference agreement recognizes it must also provide for 
     future research opportunities. Consequently, it assumes that 
     basic research will be a priority.
       Relative to the House resolution, the conference agreement 
     provides approximately $2 billion in additional funds over 
     seven years. The conferees focused on NASA and NSF as 
     candidates for this restored funding.


                          Function 270: Energy

       The House budget resolution provides $26.4 billion in 
     budget authority and $20.9 billion in outlays over seven 
     years. The Senate amendment provides $24.3 billion in budget 
     authority and $18.2 billion in outlays over seven years. The 
     conference agreement provides $26.2 billion in budget 
     authority and $20.3 billion in outlays over seven years.
     House resolution
       The House resolution assumes the termination of the 
     Department of Energy (DOE) as one of three Cabinet-level 
     Departments proposed for termination.
       For discretionary spending, the House resolution eliminates 
     funding for applied energy research and development, saving 
     $13.6 billion in budget authority and $10.9 billion in 
     outlays over seven years. The House assumes the expedited 
     construction of an interim storage facility to store spent 
     nuclear fuel and the termination of DOE's program to develop 
     a deep repository for high level nuclear waste, saving $2.0 
     billion over seven years. Reductions are made in unnecessary 
     overhead and bureaucracy, saving $0.4 billion during the 
     period.
       For mandatory spending, the House resolution proposes to 
     sell or otherwise transfer out of the Federal government some 
     $7.8 billion in assets. These include four power marketing 
     administrations (Alaska, Southeastern, Southwestern and 
     Western, expected to generate $4.2 billion in asset sales 
     receipts), the U.S. Enrichment Corporation, and the Naval 
     petroleum reserves.
     Senate amendment
       The Senate amendment does not assume the termination of the 
     Department of Energy.
       The Senate amendment makes similar assumptions as the House 
     for discretionary spending with the following exceptions. The 
     Senate does not assume elimination of funding for applied 
     research. The Senate would reduce corporate subsidies for 
     fossil, nuclear, solar, and conservation technologies by $5.6 
     billion in budget authority and $4.9 billion in outlays over 
     seven years. Unlike the House, the Senate does not assume the 
     termination of the Department of Energy's high level nuclear 
     waste deep repository program. The Senate amendment assumes 
     $2.4 billion in budget authority and $2.1 billion in outlay 
     savings over seven years by consolidating, streamlining, and 
     realigning DOE activities.
       Mandatory savings appear larger in the Senate amendment 
     because the Senate displays the proceeds from asset sales as 
     offsetting receipts in this function. The Senate-reported 
     resolution assumes net mandatory savings of $77 million in 
     1996, $779 million for the period 1996 through 2000, and $167 
     million for the period 1996-2002 from the sale of power 
     marketing administration (PMA) assets. However, during floor 
     consideration, the Senate adopted a sense of the Senate 
     provision stating that these savings should be achieved from 
     other unspecified mandatory programs in this function. The 
     Senate amendment also assumes the sale of 62 million barrels 
     of oil stored at the Weeks Island strategic petroleum reserve 
     facility, which must be decommissioned, generating a total of 
     $900 million in offsetting receipts and the extension of the 
     requirement that the Nuclear Regulatory Commission (NRC) 
     collect fees equal to 100 percent of its budget.
     Conference agreement
        The conferees agree to disagree on the future status of 
     the Department of Energy. They recognize that ultimately the 
     committees of jurisdiction will determine whether the 
     Department is terminated.
        The conference agreement resolves the differences for DOE 
     discretionary funding by assuming a total reduction of $13.5 
     billion in budget authority and $10.4 billion in outlays over 
     seven years through the following reforms: reductions in 
     corporate technology

[[Page H6294]]

     subsidies for fossil and energy supply research and 
     development accounts; reductions in energy conservation 
     programs, including grants; and through the elimination of 
     unnecessary bureaucracy and overhead. The conference 
     agreement also assumes the extension of NRC fees and that 
     these fees will continue to offset NRC appropriations for the 
     period from 1999 through 2002. The conference agreement 
     assumes the sale of the United States Enrichment Corporation 
     and the naval petroleum reserves, but the gross proceeds from 
     the sale of these assets are displayed in function 950, 
     undistributed offsetting receipts. Other assumptions for 
     energy asset sales are discussed in function 950.


                    Function 300: Natural Resources

        The House budget resolution provides $127.3 billion in 
     budget authority and $131.1 billion in outlays over seven 
     years. The Senate amendment provides $116.6 billion in budget 
     authority and $126.4 billion in outlays over seven years. The 
     conference agreement provides $127.1 billion in budget 
     authority and $131.6 billion in outlays over seven years.
     House resolution
        The House agreed to refocus the National Oceanic and 
     Atmospheric Administration (NOAA) on its core mission as part 
     of terminating the Department of Commerce (see Function 370), 
     fund wastewater treatment at $2.3 billion, open a small 
     portion of the Arctic National Wildlife Refuge (ANWR) for 
     exploration, dissolve the National Biological Service, 
     implement a land moratorium for the various land management 
     agencies, and reform the various land management agencies. In 
     addition it would apply a cost-benefit test to superfund 
     projects, terminate helium production, and eliminate unneeded 
     bureaucracy in the Department of the Interior. Finally, it 
     would accept the President's proposal to reduce funding for 
     the agriculture conservation program and terminate the 
     Environmental Protection Agency's environmental technology 
     initiative.
     Senate amendment
       The Senate amendment assumes a five percent reduction for 
     the NOAA, includes the privatization of specialized weather 
     services and accepts the President's request for 
     construction. These proposals would save $0.8 billion in 
     outlays over seven years.
        The Senate assumes the phase-out of water infrastructure 
     grants over three years which saves $10.0 billion over seven 
     years. The Senate budget resolution accepts most of the 
     Administration's reductions for the Army Corp of Engineers 
     and the Bureau of Reclamation which reduces outlays by $1.8 
     billion over seven years. The Senate budget resolution 
     assumes the reform of the various land management agencies.
        For mandatory spending, the Senate amendment assumes the 
     lease of approximately eight percent of the 19 million acre 
     ANWR as also proposed by the House. The Senate amendment also 
     assumes the sale or other saving proposals for the Presidio 
     in the City of San Francisco.
     Conference agreement
        The conference agreement accepts the House reduction in 
     1996 for water infrastructure state revolving funds. The 
     conference agreement assumes a reduction of $1.9 billion in 
     outlays over seven years for the operations of the land 
     management agencies of the Departments of the Interior and 
     Agriculture. The Administration proposed a five percent 
     reduction for National Park Service (NPS) operations and an 
     11 percent reduction for NPS construction by 2000. The 
     conference agreement assumes a five percent reduction for the 
     NPS and assumes no national park closures. The conference 
     agreement also assumes the House reductions for NOAA.
        For mandatory programs, the conference agreement assumes 
     the lease of ANWR. The conference agreement does not assume 
     the sale of the Presidio or other changes. Nevertheless, 
     reforms should take place that would minimize federal costs 
     and not increase the federal deficit or debt of the Federal 
     Government. The Presidio is the most expensive national park 
     to operate with annual costs of approximately $25 million. 
     The funding requirements for the Presidio are equivalent to 
     the amounts needed to operate 88 of the smallest parks in the 
     National Park System.


                       Function 350: Agriculture

        The House budget resolution provides $75.2 billion in 
     budget authority and $66.9 billion in outlays over seven 
     years. The Senate amendment provides $81.1 billion in budget 
     authority and $72.9 billion in outlays over seven years. The 
     conference agreement provides $79.1 billion in budget 
     authority and $70.7 billion in outlays over seven years.
     House resolution
        The House agreed to refocus Federal support for 
     agricultural research and extension activities, saving $1.9 
     billion over seven years. The resolution also called for 
     reforming mandatory agricultural production programs, saving 
     $17 billion in outlays over seven years.
     Senate amendment
       The Senate amendment makes similar assumptions as the House 
     for agriculture research and extension activities. The Senate 
     assumes a 10 percent reduction in funding for the Agriculture 
     Research Service (ARS) and the Cooperative State Research 
     Education and Extension Service (CSREES), accepts the Clinton 
     Administration's funding request for ARS and CSREES buildings 
     and facilities and accepts the Administration's request for 
     CSREES special research grants. These proposals would save 
     $1.4 billion in outlays over seven years.
        For mandatory programs, the Senate assumes spending 
     reductions of $11.8 billion over seven years which can be 
     accommodated under the 1995 farm bill when reauthorized.
     Conference agreement
        The conference agreement assumes a reduction in 
     agriculture research and extension activities and accepts the 
     President's request for ARS and CSREES buildings and 
     facilities. For mandatory programs, the conference agreement 
     assumes spending reductions of $13.4 billion in budget 
     authority and outlays over seven years.


               Function 370: Commerce and Housing Credit

        The House budget resolution provides $30.4 billion in 
     budget authority and -$28.4 billion in outlays over seven 
     years. The Senate amendment provides $21.9 billion in budget 
     authority and -$37.4 billion in outlays over seven years. The 
     conference agreement provides $24.0 billion in budget 
     authority and -$35.3 billion in outlays over seven years.
     House resolution
        The House assumes elimination of the Department of 
     Commerce--one of three cabinet agencies slated for 
     termination by the House--with critical functions being 
     transferred to more appropriate agencies. This would save 
     approximately $5 billion from function 370 over seven years. 
     The House also proposes to budget $7.2 billion in function 
     370 for the Administrations proposal to ``mark to market'' 
     multifamily housing mortgages insured by the Federal Housing 
     Administration (FHA). It further assumes ending new FHA 
     mortgage insurance policies for multifamily projects, saving 
     $1.3 billion over seven years. The House resolution 
     recognizes that the USDA's rural multifamily housing program 
     has not been authorized, and therefore assumes not funding 
     this program will save $0.7 billion over seven years.
     Senate amendment
        The Senate amendment assumes the elimination of the 
     Department of Commerce by 1999, which would save $6.8 billion 
     in outlays over seven years (more than the House assumes), 
     while retaining funding for the Patent and Trademark Office, 
     the Bureau of the Census, Bureau of Economic Analysis, 
     National Oceanic and Atmospheric Administration, the 
     standards bureau and the national quality program of the 
     National Institute of Standards and Technology, and most of 
     the Export Administration. The Senate assumes reductions in 
     program areas similar to where the House assumes savings: the 
     Small Business Administration (SBA), the Rural Housing and 
     Community Development Service (RHCDS), and the FHA 
     multifamily property mortgage insurance program. Unlike the 
     House resolution, the Senate amendment assumes sufficient 
     funding will be provided to conduct the next census in 2000. 
     However, the Senate assumes that almost $1 billion could be 
     saved compared to the cost of past censuses if certain 
     recommendations of the General Accounting Office are 
     implemented.
       On the mandatory side, the Senate amendment assumed new and 
     extended fees to be paid by the users of the services of 
     certain federal regulatory agencies.
     Conference agreement
       The conference agreement assumes the elimination of the 
     Department of Commerce, except that scientific and technical 
     research is funded at the House level, thereby reducing 
     spending in this function for the department by $6.6 billion 
     over seven years. In addition, the conference agreement 
     assumes a mix of the savings proposals for the SBA, FHA, and 
     the RHCDS included in the House and Senate budget 
     resolutions. Further, the conference agreement includes the 
     Senate assumption of funding for the periodic census. While 
     the agreement does not assume funds for the costs of the FHA 
     mark-to-market proposal, it does assume savings from further 
     reform of the FHA multifamily property disposition process as 
     proposed by the House.
       The conferees believe that the federal government's 
     exposure in connection with its obligations, both in Section 
     8 rental assistance subsidy and FHA multifamily insurance, is 
     extreme to the point of requiring the insured and assisted 
     housing multifamily portfolio to be restructured. 
     Consequently, the conferees believe the committees of 
     jurisdiction should explore a methodology for resolving this 
     portfolio in a cost-effective manner that utilizes private 
     market forces, that removes government intervention in 
     setting rent levels, and that terminates many project-based 
     subsidies. Continuing present policies may result in the 
     default of FHA insured mortgages, the dislocation of assisted 
     tenants residing in projects with these mortgages, and great 
     cost to the federal government. The conferees urge the 
     committees of jurisdiction to consider legislation 
     restructuring FHA mortgage insurance and Section 8 rental 
     subsidies. To the extent that current scorekeeping rules 
     complicate consideration of such legislation, the budget 
     committees will work with the appropriate committees to 
     examine ways to provide FHA the authority necessary to 
     undertake the restructuring, within current rules, existing 
     scoring authorities or within budget process reform 
     legislation.


                      Function 400: Transportation

       The House budget resolution provides $301.7 billion in 
     budget authority and $251.3 billion in outlays over seven 
     years. The Senate amendment provides $278.0 billion in

[[Page H6295]]

     budget authority and $227.3 billion in outlays over seven 
     years. The conference agreement provides $293.1 billion in 
     budget authority and $244.8 billion in outlays over seven 
     years.
     House resolution
       The House assumes reductions in transportation spending 
     generally will be met by eliminating highway demonstration 
     projects; significantly downsizing the federal role in mass 
     transit; phasing out federal support for Amtrak, and 
     eliminating outdated and unnecessary programs, including the 
     Interstate Commerce Commission, the Federal Maritime 
     Commission, High Speed Rail, Essential Air service, 
     Intelligent Vehicle Transportation systems, Local Rail 
     Freight Assistance programs, and the Civil Aeromedical and 
     FAA Training Institutes. The House also assumes extension of 
     the current rail safety and vessel tonnage fees.
       The House resolution also provides an additional $4.2 
     billion in mandatory budget authority to offset the projected 
     reduction in contract authority mandated by Section 1003 of 
     the Intermodal Surface Transportation Efficiency Act of 1991 
     (ISTEA).
     Senate amendment
       The Senate amendment assumes the privatization of the 
     Federal Aviation Administration ( FAA) air traffic control 
     (ATC) system beginning in 1997 and assumes the phase-out of 
     Amtrak and mass transit operating subsidies by 2001.
       Similar to the House, the Senate amendment eliminates 
     funding for highway demonstration projects.
     Conference agreement
       The conference agreement assumes broad reforms to the 
     Department of Transportation, including but are not limited 
     to--program downsizing, streamlining and consolidation, and 
     air traffic control privatization.
       The conferees recognize that the infrastructure needs of 
     the nation are not being met fully by the current centralized 
     financing structure. The conferees urge the committees of 
     jurisdiction to explore comprehensive changes to federal 
     transportation financing, emphasizing private sector 
     participation and federalism.
       The conference agreement assumes phaseout of mass transit 
     and Amtrak operating subsidies, and eliminating earmarks and 
     several obsolete programs.


            Function 450: Community and Regional Development

       The House budget resolution provides $45.8 billion in 
     budget authority and $50.4 billion in outlays over seven 
     years. The Senate amendment provides $36.3 billion in budget 
     authority and $43.2 billion in outlays over seven years. The 
     conference agreement provides $43.5 billion in budget 
     authority and $48.8 billion in outlays over seven years.
     House resolution
       The House resolution assumes reduction in spending in the 
     Community Development Block Grant (CDBG) program of 20 
     percent. This proposal includes the assumption that funding 
     would be focused on low-income communities and retains the 
     option of including the program in a larger development, 
     housing and special populations block grant.
       The House also calls for terminating Federal support for 
     the Tennessee Valley Authority, saving $864 million over 
     seven years. It eliminates the Appalachian Regional 
     Commission (ARC), saving $2 billion over seven years, and 
     ends funding for the Economic Development Administration, 
     saving $2.3 billion over seven years. The House resolution 
     also creates a rural development block similar to the one 
     proposed by the President, and a new Native American block 
     grant.
     Senate amendment
       The Senate amendment makes similar assumptions as the House 
     for discretionary spending with the following exceptions. The 
     Senate amendment assumes a 50 percent reduction for (CDBG), 
     reducing outlays by $12.2 billion over seven years. Unlike 
     the House, the Senate does not assume the creation of a 
     Native American Block Grant. The Senate also assumes the 
     creation of a rural development block grant but at a lower 
     level than the House. The rural development block grant would 
     save $1.1 billion over seven years.
       The Senate-reported resolution assumed the phase-out of the 
     ARC. However, during floor consideration, the Senate adopted 
     an amendment that restored funding for the Appalachian 
     Regional Commission below the 1995 appropriated level. This 
     amendment would reduce outlays for the ARC by $0.5 billion 
     over seven years.
       For mandatory spending, the Senate assumes a similar 
     proposal than the House, except that the subsidy is 
     completely eliminated. The Senate proposal would reduce 
     outlays by $2.9 billion over seven years.
     Conference agreement
       The conference agreement assumes a 28 percent reduction for 
     the CDBG and assumes the Senate reduction for the ARC. In 
     addition, both the House and Senate agree on the 
     consolidation and streamlining of several rural development 
     programs to create a rural development block grant which 
     would be funded at the level assumed by the Senate. Further, 
     the conference agreement would eliminate 75 percent of the 
     flood insurance subsidy for buildings constructed before 
     January 1, 1975.


   Function 500: Education, Training, Employment, and Social Services

       The House budget resolution provides $316.4 billion in 
     budget authority and $321.1 billion in outlays over seven 
     years. The Senate amendment provides $342 billion in budget 
     authority and $343.8 billion in outlays over seven years. The 
     conference agreement provides $338.7 billion in budget 
     authority and $340.8 billion in outlays over seven years.
     House resolution
       For discretionary spending, the House assumes additional 
     spending of $688 million over seven years as a result of 
     policies contained in HR 4, the House-passed welfare reform 
     legislation. In function 500, the welfare bill consolidates 
     nine discretionary programs targeted at abused children into 
     a single block grant to the states.
       In the area of education, the House assumes the termination 
     of the Department of Education. Major programs including 
     Chapter 1 basic grants, Impact Aid for ``a'' students, 
     Special Education, Vocational Rehabilitation, Pell Grants, 
     unsubsidized Student Loans, funding for Historically Black 
     College and Campus-Based Aid, would be preserved, but 
     transferred to other agencies and departments. The resolution 
     assumes the elimination of over 150 education programs that 
     are duplicative, and in many cases, too small to be effective 
     on a national scale.
       More than 60 job training programs would be consolidated 
     into four block grants. By eliminating duplicative programs 
     and increasing management efficiency, funding is reduced by 
     20 percent. Spending for Vocational Rehabilitation for the 
     disabled is not cut.
       The House proposes to fund Head Start at the fiscal year 
     1994 level. The House eliminates the Corporation for National 
     and Community Service with the recommendation that the Senior 
     Volunteer Programs be moved to the Administration on Aging 
     and authorized as part of the Older Americans Act.
       Funding for the National Endowment for the Arts (NEA) and 
     the National Endowment for the Humanities (NEH) is assumed to 
     be terminated. The Corporation for Public Broadcasting is 
     privatized by 1998.
       For mandatory spending, the House assumes enactment of HR 
     4, the House-passed welfare reform legislation, which results 
     in savings of $11.4 billion over seven years in Function 500, 
     primarily from termination of the AFDC JOBS program and 
     consolidation of several child protection programs into a 
     single child protection block grant to states. The House 
     budget resolution would eliminate the student loan in-school 
     interest subsidy. This proposal saves taxpayers $18.66 
     billion over seven years. The resolution also assumes savings 
     of $655 million over seven years in this function resulting 
     from termination of Trade Adjustment Assistance.
     Senate amendment
       The Senate amendment does not assume the termination of the 
     Department of Education.
       The Senate amendment makes similar assumptions as the House 
     for discretionary spending with some exceptions. For example, 
     the Senate does not assume the elimination of TRIO programs, 
     or elimination of subsidies to Howard University. In 
     addition, unlike the House, the Senate does not assume any 
     reductions in Chapter 1 or elimination of the NEA and NEH.
       The House resolution and the Senate amendment assume a job 
     training block grant. The Senate amendment assumes a 25 
     percent reduction in funding for job training; the House 
     assumes a 20 percent reduction. In addition the Senate 
     amendment assumes funding for schools impacted by federal 
     activities at a level higher than the President's request.
       Mandatory savings are smaller in the Senate amendment 
     because the Senate does not assume the elimination of the in-
     school interest subsidy for undergraduate students. In 
     addition, during floor action on the Senate resolution, the 
     Labor Committee reconciliation instruction was lowered by 
     $9.4 billion over seven years.
       The House resolution assumes the transfer of funding for 
     the JOBS out of function 500 and into function 600 as part of 
     the AFDC block grant. The Senate amendment assumes that JOBS 
     is part of the job training block grant in function 500.
     Conference agreement
       The conference agreement assumes $6.0 billion in budget 
     authority and $1.0 billion in outlays in discretionary 
     reductions in 1996 and $44.3 billion in budget authority and 
     $37.4 billion in outlays over seven years. Specific 
     discretionary items highlighted in the agreement include: no 
     reductions in Chapter 1 or in subsidies to Howard University. 
     Because of the recent downgrading of Howard University's 
     revenue bonds, the conferees agreed to restore funding but 
     urge the committees of jurisdiction to require Howard to 
     develop a plan toward full financial independence at a date 
     certain.
       The conferees agree to disagree on the future status of the 
     Department of Education. They recognize that ultimately the 
     committees of jurisdiction will determine whether the 
     Department will be terminated.
        In addition, the conference agreement assumes a 20 percent 
     reduction in funding for job training programs. No reductions 
     are proposed for the Vocational Rehabilitation Act and it is 
     not assumed to be part of the block grant.
       For mandatory programs, the conference agreement assumes 
     the JOBS program will be included in an AFDC block grant as 
     opposed to a job training block grant. This assumption 
     reflects the current jurisdictional

[[Page H6296]]

     placement of the program in the Finance and Ways and Means 
     Committees. The conferees also assume reforms in student loan 
     programs totalling $10 billion in outlays over seven years. 
     These savings can be achieved without the elimination of the 
     interest subsidy for undergraduate students.


                          Function 550: Health

       The House budget resolution provides $955.3 billion in 
     budget authority and $955.4 billion in outlays over seven 
     years. The Senate amendment provides $958.9 billion in budget 
     authority and $957.7 billion in outlays over seven years. The 
     conference agreement provides $949.7 billion in budget 
     authority and $949.2 billion in outlays over seven years.
     House resolution
       For the Medicaid program, the House resolution provides 
     $768.1 billion in budget authority and outlays over seven 
     years. The House resolution assumes that the Medicaid program 
     will be converted into a block grant to the states. Medicaid 
     outlays would grow by 8 percent in 1996, 5.5 percent in 1997, 
     and 4 percent each year thereafter. No assumption is made 
     about the distribution of funds among the various states.
       Function 550 discretionary spending in the House resolution 
     is $146.8 billion in budget authority and $147.7 billion in 
     outlays over seven years. The resolution assumes a five 
     percent reduction in funding for the National Institutes of 
     Health, elimination of the Agency for Health Care Policy 
     Research, and a 50 percent reduction in National Health 
     Service Corps, Maternal and Child Health Care and 
     Preventative Care block grants. Also, it assumes elimination 
     of a number of duplicative and non-essential programs, 
     primarily those that could not be justified as federal 
     functions.
     Senate amendment
        The Senate amendment assumes that a restructuring of 
     Medicaid will occur, in which significant amounts of 
     flexibility will be given to the States. The Senate amendment 
     is designed to be compatible with a wide range of Medicaid 
     restructuring proposals. The Senate makes no assumption about 
     individual entitlement, eligibility groups, benefits, payment 
     rates, financing structures, or the distribution of Federal 
     funds among the states within the total Federal funding 
     levels specified. The Senate does assume that the present 
     aggregate ratio of Federal to State funding (57 percent 
     Federal, 43 percent State) would continue.
       The Medicaid outlay levels in the Senate amendment could be 
     achieved in several ways, including a Medicaid block grant, 
     in which aggregate Federal payments to states grew at the 
     following rates from the 1995 Federal base level:

                       Benefits and Adminstration

                                                                Percent
1996..................................................................8
1997..................................................................7
1998..................................................................6
1999..................................................................5
2000..................................................................4
2001..................................................................4
2002..................................................................4
After 2002............................................................4

       The Senate recognizes that block grants represent a 
     significant change in the fiscal relationship between the 
     States and the Federal government. Such a change can take 
     time to implement. The Senate urges the Finance Committee to 
     consider, where appropriate, other means of achieving the 
     first year savings targets to provide States with the time 
     necessary to adapt to a block grant.
       The Senate's discretionary assumptions are quite similar to 
     the House's. The Senate amendment assumes that 19 Public 
     Health Service programs would be consolidated into a single 
     State Health Block Grant. There is significant overlap 
     between the Senate's list for the block grant and programs 
     the House assumes will be reduced or terminated. The Senate 
     assumes a one percent reduction in funding for the National 
     Institutes of Health.
       The Senate amendment assumes a change to the Federal 
     Employee Health Benefit (FEHB) program. This assumption is 
     described below in the conference agreement.
     Conference agreement
       The conference agreement provides $773.1 billion in budget 
     authority and outlays on Medicaid over seven years. This 
     level is compatible with Medicaid growth of 7.2 percent in 
     1996, 6.8 percent in 1997, and 4 percent each year 
     thereafter, or with higher growth rates of benefits and 
     administration if disproportionate share hospital payments 
     are frozen at 1995 levels. The conference agreement assumes 
     that the present aggregate ratio of Federal to State funding 
     (57 present Federal, 43 percent State) would continue. The 
     conference agreement does not make explicit assumptions about 
     individual entitlement, or about eligibility groups, 
     benefits, payment rates, financing structures, or the 
     distribution of funds among the states. These decisions will 
     be made by the committees of jurisdiction, and ultimately by 
     the House and Senate.

              Medicaid Outlays in the Conference Agreement

                                                               Billions
1995............................................................$89.216
1996.............................................................95.673
1997............................................................102.135
1998............................................................106.221
1999............................................................110.469
2000............................................................114.888
2001............................................................119.483
2002............................................................773.132

       The conference agreement accepts the Senate's assumption on 
     the Federal Employee Health Benefit program. This assumption 
     would save $6.3 billion over seven years in discretionary 
     spending for current Federal workers, and $4.9 billion over 
     seven years in mandatory spending for Federal retirees. 
     Federal agencies would follow the lead of the private sector 
     by contributing a fixed dollar amount to Federal employees' 
     health plans, thus encouraging Federal employees to make more 
     cost-effective decisions in the allocation of their 
     compensation. This fixed dollar amount would be indexed to 
     inflation. Federal agencies would no longer provide extra 
     subsidies to those Federal employees who choose more 
     expensive health plans. Federal employees would be able to 
     avoid most of the burden of this policy change by choosing 
     more cost-effective health plans. Those Federal employees who 
     continued to choose more expensive health plans would bear 
     the full economic burden above the amount of the Federal 
     contribution. In an era in which health spending is rapidly 
     spiraling upward, the Federal government should encourage 
     employees to purchase more cost-effective health plans. These 
     savings are included in function 550.
       The conference agreement has lower discretionary spending 
     than both the House and the Senate. This is a result of House 
     acceptance of the Senate FEHB assumption, and Senate 
     acceptance of several other House discretionary changes. The 
     conference agreement compromises on the National Institutes 
     of Health, assuming a one percent reduction in 1996, and a 
     three percent reduction from the 1995 level thereafter. This 
     results in a $2.1 billion reduction in outlays over seven 
     years, compared with $0.8 billion in the Senate and $3.6 
     billion in the House
       The conference agreement assumes that the Office of the 
     Surgeon General will be terminated.


                         Function 570: Medicare

       The House budget resolution provides $1,440.2 billion in 
     budget authority and $1,425.9 billion in outlays over seven 
     years. The Senate amendment provides $1,471.9 billion in 
     budget authority and $1,457.7 billion in outlays over seven 
     years. The conference agreement provides $1,457.6 billion in 
     budget authority and $1,443.3 billion in outlays over seven 
     years.
     House resolution
       In response to the Medicare trustees warning of the 
     imminent bankruptcy of the Medicare Hospital Insurance Trust 
     Fund, the House resolution increases Medicare at a rate of 
     growth that is lower than the current rate but high enough to 
     continue providing Medicare beneficiaries with very broad 
     coverage and excellent quality of care. The House resolution 
     assumes a number of market-based provisions that will 
     encourage the pursuit of efficient, high quality care and 
     discourage overutilization of medical services.
       These provisions will help to bring the 1960's style 
     Medicare program, which is growing at more than 11 percent 
     per year, in line with innovative health delivery systems in 
     the private sector. Health care in the private sector has 
     evolved to provide a high level of recipient satisfaction 
     while effectively containing costs at less than 5 percent 
     growth per year. If Medicare is to survive the turn of the 
     century, the program must take advantage of these same 
     innovations. The House budget committee working group on 
     health analyzed three strategies that would move the Medicare 
     program securely into the next century while expanding 
     choices for beneficiaries and providing a consumer oriented 
     health care program.
       Each of these three approaches has been recognized by the 
     Congressional Budget Office as a viable way to extend the 
     solvency of the Medicare trust fund and to reduce the growth 
     of Medicare spending to a rate that is more consistent with 
     that of health care in the private sector. The three 
     strategies are only illustrative examples of ways to preserve 
     the Medicare program and have been offered as such to the 
     Committee on Ways and Means and the Committee on Commerce, 
     which share jurisdiction for the Medicare program.
       Three main principles were used as a guide during the 
     development of these plans: first and foremost, fee-for-
     service Medicare must remain an option for those who want it. 
     Second, the Medicare program should keep pace with the 
     private insurance system, and beneficiaries should be able to 
     maintain the same kinds of insurance arrangements in Medicare 
     that they had during their working years. Finally, 
     beneficiaries should have a greater choice of health care 
     plans, such as a variety of coordinated care and indemnity 
     options, as well as medical savings accounts.
       Under the three reform options, spending on every Medicare 
     beneficiary would increase from an average of about $4,800 
     today to an average of about $6,400 in 2002. Total program 
     spending would be allowed to grow from $178 billion in 1995 
     to $258 billion--a seven-year increase of 45 percent. These 
     options would open the way for the health care industry to 
     create a multitude of new choices for beneficiaries and would 
     empower beneficiaries to select health care that is tailored 
     to their precise needs.
     Senate amendment
       The Senate amendment is based on the recommendations of the 
     Public Trustees of Medicare, as described in the Summary of 
     the 1995 Annual Report on the Social Security and Medicare 
     Trust Funds. Specifically, the Senate amendment addresses 
     both the

[[Page H6297]]

     short and long-term insolvency of the entire Medicare 
     program. Based on the recommendations of the Public Trustees 
     and experts, the Senate chooses to think about Medicare in 
     its entirety, and not to be bound by historical distinctions 
     between parts A and B.
       The Senate amendment assumes that:
       Medicare reform will be addressed urgently as a distinct 
     legislative initiative;
       Comprehensive Medicare reforms will be undertaken this year 
     to make the program financially sound now;
       Reductions in the rate of growth of Medicare expenditures 
     will be focused on making Medicare itself sustainable;
       A special bipartisan commission will be created to address 
     the long-term solvency of Medicare;
       This commission will address the questions raised by the 
     Public Trustees; and
       This commission will review the program's financing 
     methods, benefit provisions, and delivery mechanisms.
       The Senate amendment makes no specific assumptions about 
     how the Medicare outlay levels in the resolution will be 
     achieved.
     Conference agreement
       The Medicare outlay levels in the conference agreement were 
     based on spending levels necessary to preserve and protect 
     Medicare. Specifically, the levels are necessary to protect 
     the solvency of the program, to avoid the bankruptcy in 2002 
     projected by the Medicare trustees under current law, and to 
     begin structural reforms with the goal of ensuring Medicare's 
     long-term viability. Although this agreement does not dictate 
     specific policies, the conferees urge the committees of 
     jurisdiction to examine the principles reflected in the House 
     and Senate committee reports on the concurrent resolution on 
     the budget.


                     Function 600: Income Security

       The House budget resolution provides $1,769.3 billion in 
     Budget Authority and $1773.8 billion in outlays over seven 
     years. The Senate amendment provides $1,811.0 billion in 
     Budget Authority and $1,807.1 billion in outlays over seven 
     years. The conference agreement provides $1,793.9 billion in 
     budget authority and $1,797.9 billion in outlays over seven 
     years.
     House resolution
       On the discretionary side, a variety of assumed reforms in 
     public housing programs yields a total savings of $9.5 
     billion over seven years. The reforms include ending new 
     public housing construction; deregulating public housing 
     authorities to reduce operating and modernization funding; 
     and ending wasteful rehabilitation programs. In addition, the 
     House assumes a block grant for housing, development, and 
     special populations that yields savings of $8.8 billion over 
     seven years. Section 8 assisted housing contracts require 
     adding funds back into the budget, but assumed policy 
     options--such as recapturing vouchers and certificates turned 
     back to the government, and increasing tenant contributions--
     reduce the magnitude of that cost to approximately $23 
     billion.
       For mandatory spending, the resolution assumes enactment of 
     the House-passed welfare reform legislation, H.R. 4. Affected 
     programs include Aid to Families with Dependent Children, 
     Food Stamps, Supplemental Security Income and Child 
     Nutrition. In Function 600, the proposals result in mandatory 
     savings of $111.3 billion in outlays over seven years. 
     Reforms in federal civilian retirement, eliminating more 
     generous pension treatment for Members of Congress and 
     Congressional staff and changing the method of calculating 
     initial retirement annuities to the average of the highest 
     five salary years, are also assumed. These reforms result in 
     savings of $1.6 billion over seven years. Trade Adjustment 
     Assistance is assumed to be terminated, saving $1.3 billion 
     over seven years.
       The resolution assumes states will be required to charge a 
     15 percent fee for non-AFDC child support collections, to 
     recoup the administrative costs for non-AFDC collections. 
     This offsetting collection would result in savings of $7.1 
     billion over seven years.
       The House-passed welfare reform plan also affects 
     discretionary spending in Function 600, resulting in 
     additional spending of $13.7 billion in outlays over seven 
     years. In addition, the Low Income Home Energy Assistance 
     Program (LIHEAP) is assumed to be terminated, saving $10.2 
     billion over seven years.
     Senate amendment
       The Senate amendment assumes the addition of sufficient 
     funds, about $39.9 billion in outlays, to renew all existing 
     contracts for housing assistance (section 8) that will expire 
     over the next seven years. In addition, the Senate amendment 
     would incorporate many of the existing housing programs into 
     a public housing block grant and an assisted housing block 
     grant, while terminating certain other programs, saving a 
     total of $9.5 billion over seven years.
       The Senate amendment proposes similar mandatory savings as 
     compared to the House in welfare reform and Earned Income Tax 
     Credit reform. However, the Senate proposed changes to EITC 
     that were not a part of the House assumptions. The House 
     proposed changes to Food Stamps, SSI and child nutrition 
     programs that were not part of the Senate resolution.
       The Senate amendment assumes mandatory spending levels of 
     $188.6 billion in budget authority and $186.2 billion in 
     outlays in 1996, a decrease of $5.9 billion in outlays from 
     the 1996 projected level. Spending would rise to $246.9 
     billion in outlays or 33 percent over the 1996-2002 period. 
     The amendment assumes $47 billion over five years, and $80 
     billion over seven years in savings from Welfare Reform (of 
     which $45 billion over five years is in function 600.) In 
     addition the Senate assumes reforming the EITC program to 
     slow the rate of growth. Over the period of 1996-2002, the 
     Committee recommends funding of over $800 billion for Food 
     Stamps, SSI, EITC, AFDC, Child Care and Child Nutrition.
       The Senate amendment assumes a conformance of the military 
     retiree COLA date and the civilian retiree COLA date. The 
     Senate assumes the same elimination of more generous 
     retirement benefits for Members of Congress and their staff. 
     The Senate amendment assumes that the basis for pensions 
     would rise from the average of the highest three annual 
     salaries to the highest five annual salaries.
     Conference agreement
       The conference agreement assumes a public housing block 
     grant, an assisted housing block grant, and certain program 
     terminations, as well as renewal of section 8 contracts, that 
     together require an addition to function 600 for housing 
     programs of an amount approximately in between the higher 
     amount added by the Senate amendment and the lower amount 
     added back by the House resolution.
       The conferees agreed to reconciliation instructions to the 
     Agriculture and Finance Committees in the Senate and 
     instructions to the House Ways and Means, Agriculture and 
     Education and Economic Opportunities Committee. The 
     instructions include assumptions for Welfare Reform, Child 
     Support Enforcement reform, and EITC reform.
       The conference agreement assumes the House recedes to the 
     Senate on Federal retirement reform in Function 600, and 
     phases in the Senate's assumed changes in the computation 
     basis for federal pensions.


                     Function 650: Social Security

       The House budget resolution provides $2,902.5 billion in 
     budget authority and $2895.0 billion in outlays over seven 
     years. The Senate amendment provides $2,917.7 billion in 
     budget authority and $2910.2 billion in outlays over seven 
     years. The conference agreement provides $2,917.7 billion in 
     budget authority and $2,910.2 billion in outlays over seven 
     years.
     House resolution
       The House resolution assumes no changes to the Social 
     Security program.
     Senate amendment
       The Senate amendment assumes no changes to the Social 
     Security program.
     Conference agreement
       The conference agreement assumes no changes to the Social 
     Security program.


              Function 700: Veterans Benefits and Services

       The House budget resolution provides $272.4 billion in 
     budget authority and $276.0 billion in outlays over seven 
     years. The Senate amendment provides $265.3 billion in budget 
     authority and $270.7 billion in outlays over seven years. The 
     conference agreement provides $271.4 billion in budget 
     authority and $276.0 billion in outlays over seven years.
     House resolution
       Major projects construction is limited in the discretionary 
     account to achieve deficit reduction savings of $1.0 billion 
     over seven years. In mandatory accounts, the resolution 
     assumes eight provisions of current law are permanently 
     extended, for a seven-year savings of $4.0 billion. It also 
     assumes that prescription copayments are increased to $5 in 
     1996 and 1997 and to $8 in 1999 and beyond, for a seven-year 
     savings of $1.1 billion. An OBRA 1990 compensation limitation 
     on certain veterans is re-enacted, for a seven-year savings 
     of $1.3 billion. The total seven-year savings in mandatory 
     spending is $6.4 billion.
     Senate amendment
       The Senate amendment assumes the following major policy 
     options to achieve the discretionary funding levels: No 
     changes in veterans medical funding. Under the Senate's 
     amendment, spending on veterans health programs would be $780 
     million over the President's recommended level in 2000. Phase 
     out construction of Department of Veterans Affairs (DVA) 
     facilities, while incorporating the needs for improvement, 
     repairs, new cemeteries, long term care facilities and 
     conversion that must be performed over the short term, but 
     expects that past 1999 the DVA system will use existing 
     capacity. In 1996, the committee assumes the 1995 level of 
     funding for general operating expenses less the funds for the 
     one time modernization effort in the 1995 base.
       The Senate amendment assumes the following major policy 
     options to achieve the mandatory funding levels: No changes 
     in compensation or in cost of living adjustments for all 
     veterans currently receiving compensation from service 
     connected disabilities; a repeal of the ``Gardner decision'' 
     that extended compensation to DVA medical patients suffering 
     an adverse outcome in cases where no fault was found with 
     DVA; targeting compensation in the future to veterans 
     disabled in combat and veterans disabled during performance 
     of duty; a phase in of a higher prescription co-payment for 
     upper income veterans; extension of expiring current law 
     provisions from the Omnibus Reconciliation Act of 1993; a 
     restoration of the funding ratio for GI Bill benefits to the 
     pre-Gulf War level.

[[Page H6298]]


     Conference agreement
       The conference agreement assumes that the Senate recedes to 
     the House with the following exceptions: the House recedes to 
     the Senate with respect to a compromise on streamlining 
     General Operating Expenses and with respect to repeal of 
     parking garage revolving fund.


                Function 750: Administration of Justice

       The House budget resolution provides $116 billion in budget 
     authority and $117.3 billion in outlays over seven years. The 
     Senate amendment provides $150.4 billion in budget authority 
     and $151.4 billion in outlays over seven years. The 
     conference agreement provides $143.2 billion in budget 
     authority and $139.6 billion in outlays over seven years.
     House resolution
       The House resolution assumes a reduction in the Violent 
     Crime Reduction Trust Fund, saving $5.0 billion in outlays 
     over five years and $7.8 billion over seven years. Total 
     Trust Fund outlays would be $2.1 billion in 1996, $18 billion 
     over five years, and $28 billion over seven years. The House 
     also agreed to phase out funding for the Legal Services 
     Corporation over three years. This provision would produce 
     savings of $1.6 billion over five years and $2.4 billion over 
     seven years.
       In addition, the House proposed to block grant funding for 
     Justice Assistance Programs.
     Senate amendment
       The Senate amendment assumes full funding of the Violent 
     Crime Reduction Trust Fund and assumes continuation of the 
     fund through the year 2002. Total Trust Fund outlays would be 
     $2.3 billion in 1996, and $35.5 billion over seven years.
       The Senate amendment assumes a 35 percent reduction in 
     funding for the Legal Services Corporation and additional 
     investments in Federal Law Enforcement.
       For Mandatory programs, the Senate amendment assumes that 
     Judges pay will be frozen through 2002.
     Conference agreement
       The conference agreement provides for substantial funding 
     of the Violent Crime Reduction Trust Fund in order to 
     demonstrate the federal commitment to support federal law 
     enforcement and state and local efforts to reduce and prevent 
     crime.
       In addition, it assumes the termination of federally funded 
     entities including: the State Justice Institute, the US 
     Parole Commission, and the Administrative Conference of the 
     US Courts.
       In addition, the conference agreement assumes a reform of 
     the US Marshals Service to end the political appointment 
     process in that organization. The Administration and the US 
     Marshals Service support this reform.
       The conferees are concerned that debts owed the federal 
     government continue to grow into a significant backlog. The 
     conferees recommend that appropriate committees of 
     jurisdiction look into implementing a program that would 
     require Executive Branch departments to contract with private 
     debt collectors on an as-needed basis to collect delinquent 
     debt. It also may be appropriate to move debt of sufficient 
     age to the Justice Department for collection. The Department 
     of Justice, through its U.S. Attorneys, is tasked with the 
     collection of federal debt after other federal departments 
     have exhausted all efforts short of litigation. Due to the 
     growth of their federal, civil and criminal caseload, debt 
     collection is given a lower priority. The conferees recommend 
     that the appropriate committees of jurisdiction examine 
     methods of moving the federal governments' substantial debt 
     out of Executive Branch departments to the Department of 
     Justice for collection on a timely basis. The conferees 
     further recommend that appropriate committees of jurisdiction 
     look into implementing a program that follows the General 
     Accounting Office's recommendation to expand the Department 
     of Justice pilot program to all federal judicial districts 
     and to allow the Attorney General to contract with private 
     counsel firms on an as-needed basis to collect delinquent 
     debt.


                    Function 800: General Government

       The House budget resolution provides $82.1 billion in 
     budget authority and $82.3 billion in outlays over seven 
     years. The Senate amendment provides $84.5 billion in budget 
     authority and $84.9 billion in outlays over seven years. The 
     conference agreement provides $84.2 billion in budget 
     authority and $84.5 billion in outlays over seven years.
     House resolution
       For discretionary spending, the House resolution assumes a 
     seven-year moratorium on construction and acquisition of new 
     Federal buildings. This proposal saves $2.5 billion over 
     seven years. The House resolution also assumes elimination of 
     certain General Services Administration (GSA) and Legislative 
     Branch activities, including: the Office of Technology 
     Assessment (OTA), the Advisory Commission on 
     Intergovernmental Relations (ACIR), and the Federal Supply 
     Service. In addition, the House resolution assumes reduced 
     funding for the Executive Office of the President and the 
     General Accounting Office (GAO).
     Senate amendment
       For discretionary spending, the Senate amendment assumes 
     savings from the Senate Republican Conference plan to reduce 
     Legislative Branch spending by $200 million from the 1995 
     level. Similar to the House resolution, the Senate Republican 
     Conference plan proposes reducing funding for committee 
     staffs, GAO, and other functions and terminating OTA. The 
     Senate amendment assumes significant savings from 
     streamlining operations and consolidating functions in 
     Treasury, GSA, and the Office of Territorial Affairs in the 
     Department of Interior. The Senate amendment reflects a 25 
     percent reduction in funds for construction of new Federal 
     buildings. The Senate also assumes the Office of Personnel 
     Management (OPM) would be phased down to a Civil Service 
     Commission. Employee benefit and retirement functions would 
     remain centralized while most other functions would be 
     delegated to the agencies. The Senate amendment assumes full 
     funding of the President's request for the Internal Revenue 
     Service (IRS) tax law enforcement functions, including the 
     compliance initiative begun in 1995, within the discretionary 
     cap.
       For mandatory spending, the Senate amendment assumes 
     savings from freezing pay for Members of Congress until the 
     budget is balanced in 2002 and from charging fees for parking 
     at Federal buildings.
     Conference agreement
       For discretionary spending, the conference agreement 
     assumes that Legislative Branch spending will be reduced by 
     at least $200 million from the 1995 level. The conferees 
     strongly support efforts to reform government printing 
     policies and encourage committees of jurisdiction to examine 
     the proposals discussed in the House report on the budget 
     resolution.
       Since 1955, it has been the policy of the Federal 
     government that it will not provide a service or product for 
     its own use if such product or service can be procured from 
     the private sector. Each federal agency should obtain all 
     goods and services necessary or beneficial to the 
     accomplishment of its authorized functions by procurement 
     from private sources unless the goods or services are 
     required by law to be produced or performed, respectively, by 
     the agency, or the head of an agency determines and certifies 
     to the Congress that government production, manufacture or 
     provision of a good or service is necessary for the national 
     defense; a good or service is so inherently governmental in 
     nature that it is in the public interest to require 
     production or performance, respectively, by a government 
     employee; or there is no private source capable of providing 
     the good or service. The conferees recommend that committees 
     of jurisdiction examine impediments to accomplishing this 
     objective.
       The conference agreement accepts the Senate assumption for 
     IRS tax law enforcement, including funding the continuation 
     of the 1995 tax compliance initiative within the 
     discretionary cap. The conferees strongly endorse continued 
     funding of this initiative, which, according to the Treasury 
     Department, is expected to increase revenue collections by 
     $9.2 billion over the 1995-1999 period. The conference 
     agreement assumes many of the Senate savings in Treasury 
     agencies and a 30 percent reduction in funds for Federal 
     building construction. The conference agreement also reflects 
     the Senate assumption for downsizing OPM.


                        Function 920: Allowances

       The House budget resolution provides -$17.5 billion in 
     budget authority and -$18.1 billion in outlays over seven 
     years. The Senate amendment provides -$55.4 billion in budget 
     authority and -$54.3 billion in outlays over seven years. The 
     conference agreement provides -$33.8 billion in budget 
     authority and outlays over seven years.
     House resolution
       The House resolution assumes savings of $8.4 billion over 
     seven years in outlays by reducing federal agency overhead. 
     The House resolution also assumes savings from the repeal of 
     the Davis-Bacon Act, $4.4 billion over seven years in 
     outlays, and the McNamara-O'Hara Service Contract Act, $4.6 
     billion over seven years in outlays. In addition, the House 
     resolution assumes the termination of 63 boards and 
     commissions.
     Senate amendment
       The Senate amendment assumes a 15 percent reduction in the 
     overhead of non-defense agencies that remain funded in the 
     budget, which saves $65.8 billion over seven years. The 
     Senate amendment also assumes the repeal of the Davis-Bacon 
     Act and a modification in the Service Contract Act, thereby 
     reducing federal contract costs. In addition, the Senate 
     amendment adds funding to cover half of agencies' costs of 
     providing annual pay raises (based on the employment cost 
     index-ECI) to federal employees (except Senior Executive 
     Service and Executive Schedule).
     Conference agreement
       The conference agreement assumes overhead savings that are 
     roughly halfway in between the savings assumed in the House 
     resolution and the Senate amendment. The agreement also 
     assumes the House's full repeal of the Service Contract Act, 
     the House assumption of savings for agencies from using a 
     VISA credit card for GPO orders less than $1,000, and the 
     repeal of the Davis-Bacon Act. Finally, the agreement assumes 
     funding to cover half of the cost of scheduled ECI raises.


            Function 950: Undistributed Offsetting Receipts

        The House budget resolution provides -$315.7 billion in 
     budget authority and outlays over seven years. The Senate 
     amendment provides -$322.1 billion in budget authority and 
     outlays over seven years. The

[[Page H6299]]

     conference agreement provides -$313.7 billion in budget 
     authority and outlays over seven years.
     House resolution
       The largest policy impact in this function is expected to 
     come from extending and broadening the Federal Communications 
     Commission's (FCC) authority to auction spectrum. The 
     resolution assumes additional receipts from this authority of 
     $15 billion over seven years.
       The House also anticipates proceeds of $4.2 billion from 
     transferring the Alaska Power Marketing Administration to 
     Alaska, and converting the Southeastern, Southwestern, and 
     Western power agencies into private corporations.
       Finally, the resolution assumes the 2.5 percent increase in 
     federal employee retirement contributions that were part of 
     H.R. 1215, as passed by the House earlier this year.
     Senate amendment
       The Senate amendment assumes broad and permanent authority 
     would be provided to the FCC to recover value through auction 
     or fees from the spectrum, amounting to $29 billion over 
     seven years. The Senate amendment includes no assumption 
     relating to payments into the federal civilian retirement 
     plans. All effects of asset sales are displayed in function 
     270.
     Conference agreement
       The conference agreement assumes the FCC is provided 
     sufficient authority to recover value from the spectrum 
     amounting to $14 billion over seven years. In addition, the 
     agreement assumes either that federal workers would 
     contribute an additional 0.25 percent of their salary in 1996 
     and 1997 (increasing to 0.5 percent in 1998 and thereafter) 
     towards their retirement and that employing agencies would 
     pay an additional 1 percent per year beginning in 1996, or 
     some other changes in federal employee policies that would be 
     sufficient to achieve these savings. The budgetary effect of 
     the employees' contributions appear in the revenues part of 
     the budget, while the agencies' contributions, which are 
     intrabudgetary and are paid from most budget functions, 
     appear as $2.7 billion of offsetting receipts in Function 
     950.
       The conference agreement assumes net mandatory savings from 
     energy assets sales of $77 million in 1996, and $737 million 
     for the period 1996 through 2002. The House resolution 
     assumed net mandatory savings from the sale of the Alaska, 
     Southeastern, and Southwestern, and Western power marketing 
     administrations (PMAs) of $77 million in 1996, and $1.4 
     billion over 7 years. The Senate assumed a narrower proposal 
     for the sale of PMA assets, which would achieve net mandatory 
     savings of $77 million in 1996, and $167 million over 7 
     years. The conferees note that the most significant 
     difference for energy mandatory spending between the House 
     resolution and the Senate amendment was the sale of PMA 
     assets.
       While the Senate adopted a sense of the Senate amendment 
     that the savings should be achieved in other energy mandatory 
     programs, the conferees were unable to identify sources in 
     other energy mandatory programs to achieve this level of 
     savings. The conference agreement drops the Senate's 
     assumptions in function 270, Energy, to achieve savings of 
     $900 million from the sale of 62 million barrels of Weeks 
     Island strategic petroleum reserve oil and $154 million from 
     hydropower leasing to give the committees of jurisdiction 
     maximum flexibility to achieve savings assumed from energy 
     asset sales.
       The conferees note that the Senate Energy and Natural 
     Resources Committee's reconciliation instruction in the 
     conference agreement is smaller than the Senate amendment's 
     instruction. The conferees note that the entire unspecified 
     energy asset savings could be achieved by the sale of PMA 
     assets. Alternatively, these savings could be achieved 
     through a combination of the sale of Weeks Island oil, 
     hydropower leasing, and even a narrower proposal for the sale 
     of PMA assets than assumed in the Senate-reported budget 
     resolution.
       Ultimately, the committees of jurisdiction must determine 
     how to meet their reconciliation instructions. If the 
     committees of jurisdiction pursue PMA sales as a means of 
     achieving the savings assumed in the conference agreement, 
     the conferees believe the sale should be structured to ensure 
     that ratepayers are protected from unreasonable rate 
     increases. The conferees are concerned that allegations are 
     being made that the sale of the PMAs could cause exorbitant 
     increases in the cost of electricity to ratepayers. The 
     conferees believe these facilities can be operated more 
     efficiently and that the sale of these assets can be 
     accomplished with appropriate safeguards that can ensure no 
     or minimal increase in customers' electricity rates.


                                Revenues

       Federal revenues are taxes and other collections from the 
     public that result from the government's sovereign or 
     governmental powers. Federal revenues include individual 
     income taxes, corporate income taxes, social insurance taxes, 
     estate and gift taxes, customs duties and miscellaneous 
     receipts (which include deposits of earnings by the Federal 
     Reserve System, fines, penalties, fees for regulatory 
     services, and others).
       In 1995, total revenue collections are expected to be 
     $1.355 trillion. The House budget resolution projects federal 
     revenues to be $1.815 trillion by the year 2002, representing 
     36 percent growth from the 1995 level. The Senate amendment 
     projects federal revenues to be $1.885 trillion by the year 
     2002, representing 39 percent growth from the 1995 level.
     House resolution
       The House revenue projections reflect CBO's December 1994 
     estimates and economic assumptions. It includes the enactment 
     of H.R. 831 which restores the 25 percent deduction for 
     health insurance costs of self-employed individuals for 1994, 
     and would increase it permanently to 30 percent thereafter.
       The House resolution assumes enactment of H.R. 1215, the 
     replacement of the one-dollar bill with a new dollar coin, 
     and the elimination of several corporate tax subsidies.
       H.R. 1215, the Tax Fairness and Deficit Reduction Act of 
     1995, includes provisions that would provide tax relief to 
     families with a $500 per child tax credit, reduce the tax 
     penalty on two-earner married couples, restore universality 
     to IRAs, repeal the 1993 tax increase on social security 
     benefits, and reduce the cost of capital and increase 
     incentives for risk taking by indexing and reducing the 
     effective tax rate on capital gain income.
       The House resolution anticipates that the Committee on Ways 
     and Means will explore restoration or continuation of certain 
     tax and trade provisions which have expired or will soon 
     expire as well as certain other tax measures. It is expected 
     that the Committee on Ways and Means--in seeking to offset 
     the cost of these measures--will look to changes reducing 
     inappropriate corporate tax benefits, other appropriate 
     revenue offsets, and spending reductions within the 
     Committee's jurisdiction.
     Senate amendment
       The Senate amendment assumes no net change in revenues from 
     the current law level over the period 1996-2000 or over the 
     period 1996-2002. The Finance Committee is given no revenue 
     reconciliation instructions.
       The Senate amendment incorporates the revenue losses 
     associated with the prior enactment of H.R. 831, the Self-
     Employed Health Insurance bill. The Senate amendment also 
     incorporates small revenue increases associated with 
     assumptions regarding reform of the Earned Income Tax Credit 
     (EITC) (roughly 90 percent of the budget effect of the EITC 
     reform proposals is shown in function 600). During floor 
     consideration, the Senate agreed to the Snowe amendment which 
     assumes a five-year revenue increase of $6.2 billion and a 
     seven-year revenue increase of $9.4 billion from reducing 
     corporate tax subsidies. The Senate amendment contains Sense 
     of the Senate language which recommends that the expatriate 
     loophole be closed (raising $3.6 billion in revenue over ten 
     years) and that the revenues be used for deficit reduction.
       The Senate amendment assumes that the Finance Committee 
     acts to extend expiring provisions so long as the net revenue 
     reductions are no greater than $3.7 billion over five years 
     and $3.8 billion over seven years. The Finance Committee may 
     decide to raise some revenues by extending expiring taxes, 
     and reduce some revenues by extending other expiring 
     provisions. Possible extensions of current taxes that raise 
     revenue include: corporate tax dedicated to Superfund, FUTA 
     0.2 percentage point surtax, luxury tax on passenger 
     vehicles, 1.25 cents/gallon railroad diesel fuel tax, 2.5 
     cents/gallon motorboat gasoline tax, and the 20.1 cents/
     gallon motorboat diesel fuel tax. Possible extensions of 
     expiring provisions that lose revenue include: the commercial 
     aviation exemption from the fuel tax, deduction for 
     contributions to private foundations, targeted jobs tax 
     credit, exclusion for employer-provided education assistance, 
     orphan drug tax credit, research and experimentation tax 
     credit and allocation rules, generalized system of 
     preferences, deny deduction for some noncomplying health 
     plans (ERISA waiver), and the nonconventional fuels tax 
     credit.
       The Senate amendment assumes that the Federal Reserve would 
     be required to transfer reserves to the Treasury, saving $1.7 
     billion in 1999 and $2.0 billion in 2000.
       In the section on procedural provisions, the Senate 
     amendment includes two ``reserve funds'' that would provide 
     for further tax reductions. The first reserve fund would 
     provide, after passage of a conference report on 
     reconciliation, a reserve fund to accommodate deficit-neutral 
     tax reduction legislation. The second reserve fund would 
     provide, after enactment of reconciliation, a reserve fund to 
     allow CBO's ``fiscal dividend'' to be made available for tax 
     reduction legislation. The language in the resolution makes 
     it clear that the fiscal dividend savings must be ``locked-
     in'' before they can be dedicated to tax cuts. The reserve 
     fund provides that in the event reconciliation is enacted, 
     the Congressional Budget Office (CBO) would certify, broken 
     down on a year-by-year basis, the amount of the fiscal 
     dividend achieved as a result of enacting this balanced 
     budget plan. That ``fiscal dividend'' could be used to offset 
     the revenue loss from a tax cut. Numerous amendments designed 
     to use the fiscal dividend to increase the size of government 
     by increasing spending on various programs were defeated. By 
     voting down various amendments, the Senate expressed its view 
     that the fiscal dividend should not be used to restart the 
     tax and spend cycle that this fair, but tough, balanced 
     budget plan was designed to stop.
       The Committee adopted a Boxer-Brown Sense of the Senate 
     resolution providing that approximately ninety percent of the

[[Page H6300]]

     benefits of any tax cuts should be targeted to middle class 
     working families with incomes below approximately $100,000. 
     The Committee's interpretation of the appropriate definition 
     of ``income'' is adjusted gross income. It is the Committee's 
     view that adjusted gross income is the most commonly 
     understood definition of income. Taxpayers and the Internal 
     Revenue Service use ``adjusted gross income'' to calculate 
     federal income tax liability. The Committee expressly 
     rejected the use of ``family economic income'' to calculate 
     income for the purpose of defining the middle class tax cut. 
     It expressly rejected the view that income should be 
     calculated to include the value of the ``imputed rent'' on 
     owner-occupied housing, the value of employer-provided 
     benefits such as health insurance and pension contributions, 
     the value of the inside build-up of life insurance, pension 
     plans, capital gains that have not yet been realized because 
     the taxpayer has not sold the capital asset, an estimate of 
     income that an average family should have reported for tax 
     purposes but did not, or Social Security and AFDC payments. 
     Each of these items are included in the definition of family 
     economic income. Any calculation based on family economic 
     income results in families appearing to be in higher income 
     brackets and income tax brackets than they actually are.
       The specific requirements for both reserve funds are 
     discussed in more detail in the description of procedural 
     provisions.
     Conference agreement
       The conference agreement incorporates the revenue losses 
     associated with the prior enactment of H.R. 831, the Self-
     Employed Health Insurance bill and does not assume extension 
     of the oil and feedstock excise tax dedicated to Superfund. 
     The conference agreement assumes that some savings will be 
     achieved from EITC reform, and that the Finance and Ways and 
     Means Committees will act to extend expiring provisions. The 
     conference agreement does not assume additional revenues from 
     requiring Federal Reserve transfers to the Treasury. The 
     conference agreement does not assume additional revenues from 
     replacing the one-dollar bill with a one-dollar coin. 
     However, the Conferees believe the proposal has significant 
     merit and encourage the Banking Committees to seriously 
     consider this proposal to update our money system.
       The conference agreement assumes that federal employees 
     will increase contributions toward their retirement by 0.25 
     percent of their salary in 1996 and 1997 and an additional 
     0.25 percent in 1998 and thereafter. This phased-in one-half 
     percent increase in employee contributions results in 
     additional revenues of $1.1 billion over seven years.
       The conference agreement includes a ``budget surplus 
     allowance'' that could provide for further tax reductions 
     which is discussed in the section on Procedural Provisions.
       The conference agreement anticipates that the respective 
     House and Senate authorizing committees will comply with the 
     deficit-reduction reconciliation directives in this 
     resolution, thereby allowing a net seven-year tax cut of $245 
     billion to be included in the final reconciliation bill. The 
     conferees agree that the $245 billion net tax cut represents 
     an appropriate balance between accommodating the tax cuts in 
     the House-passed ``Contract with America'' and the need to 
     put the deficit on a declining path to a balanced budget in 
     the year 2002. The conference agreement allows a net tax cut 
     which the conferees agree can accommodate provisions which 
     will strengthen the American family by reducing the tax 
     burden on families with children and on two-earner married 
     couples, and encourage savings, capital investment, job 
     creation and economic growth by reducing taxes on savings and 
     investment.
       The conferees also urge the Finance and Ways and Means 
     Committees to explore the closing of corporate tax loopholes 
     that confer inappropriate tax benefits on individual 
     corporations or industries. The elimination of these tax 
     loopholes should either be included in the reconciliation 
     process or in other legislation affecting revenues, such as 
     legislation designed to extend expiring tax provisions.

                               Procedures


                     Discretionary Spending Limits

     (Sec. 201 of the Senate amendment; Sec. 201 of the conference 
                               agreement)

       The 1990 Budget Enforcement Act (BEA) established caps on 
     defense, international, and domestic discretionary spending. 
     These caps were enforced by sequesters and a points of order 
     in the Senate. The separate caps covered 1990 through 1993. 
     The BEA provided a cap on total discretionary spending for 
     1994 through 1995. The Omnibus Budget Reconciliation Act of 
     1993 extended caps on total discretionary spending through 
     1998. The 1995 budget resolution (H. Con. Res. 218) reduced 
     these discretionary caps for purposes of enforcement in the 
     Senate.
     House resolution
       The House resolution contains no provisions regarding 
     discretionary spending limits.
     Senate amendment
       Section 201 of the Senate amendment establishes caps on 
     defense and nondefense discretionary spending for 1996 
     through 2002. For 1996 through 2000, the discretionary caps 
     do not include funding from the Violent Crime Reduction Trust 
     Fund, consistent with the intent of public law 103-322, which 
     established the fund. This section also provides for the 
     enforcement of these discretionary spending caps by creating 
     a point of order in the Senate against consideration of a 
     budget resolution that would exceed the aggregate cap on 
     discretionary spending. This section also provides a point of 
     order in the Senate against an appropriations bill that would 
     exceed the defense or non-defense levels for a fiscal year or 
     that would exceed the section 602(b) suballocation of those 
     levels. This point of order can be waived by an affirmative 
     vote of three-fifths of the Senate.
     Conference agreement
       The conference agreement contains the Senate provision with 
     an amendment. The conference agreement modifies the Senate 
     amendment to provide individual caps for defense and 
     nondefense spending for 1996 through 1998. In addition, the 
     agreement provides that the application of the point of order 
     to budget resolutions after 1996 is contingent on the 
     enactment of a reconciliation bill pursuant to this 
     resolution. The discretionary spending limits are applicable 
     in both Houses, but are enforced by a point of order only in 
     the Senate. The following table indicates the discretionary 
     spending limits for 1996 through 2002.

                                            DISCRETIONARY CAP TOTALS
                                              [Dollars in millions]
----------------------------------------------------------------------------------------------------------------
                                              1996      1997      1998      1999      2000      2001      2002
----------------------------------------------------------------------------------------------------------------
Defense:
    Budget Authority......................   265,406   267,962   269,731
    Outlays...............................   264,043   265,734   264,531
Nondefense:
    Budget Authority......................   219,668   214,468   220,961
    Outlays...............................   267,725   254,561   248,101
Total Discretionary:
    Budget Authority......................   485,074   482,430   490,692   482,207   489,379   496,601   498,837
    Outlays...............................   531,768   520,295   512,632   510,482   514,234   516,403   515,075
----------------------------------------------------------------------------------------------------------------

         Extensions of the Senate Pay-As-You-Go Point of Order

     (Sec. 202 of the Senate amendment; Sec. 202 of the conference 
                               agreement)

       Subsection 12(c) of the 1994 budget resolution (H. Con. 
     Res. 64) established a pay-as-you-go point of order in the 
     Senate that prohibited consideration of legislation that 
     would cause an increase in the deficit over a ten year 
     period. The 1995 budget resolution (H. Con. Res. 218) 
     modified and extended this point of order to provide that 
     legislation was out of order if it caused a deficit increase 
     in the first year covered by the budget resolution, the sum 
     of the first five years covered by the budget resolution, and 
     the sum of the five years following the first five year 
     period. The current pay-as-you-go point of order expires in 
     1998.
     House resolution
       The House resolution contains no provisions regarding the 
     pay-as-you-go point of order.
     Senate amendment
       Section 202 of the Senate amendment extends this point of 
     order through 2002 and revises the point of order to make one 
     additional change. The current pay-as-you-go point of order 
     permits the use of budgetary savings generated by legislation 
     enacted since 1993 as an offset for legislation that would 
     increase the deficit. The Senate would modify the pay-as-you-
     go point of order to eliminate the ability to use prior year 
     surpluses.
     Conference agreement
       The conference agreement contains the Senate provision with 
     an amendment. This amendment provides that the budgetary 
     effects of the reconciliation legislation enacted pursuant to 
     this resolution should not be taken into account for the 
     purposes of the pay-as-you-go point of order. This ensures 
     that the budgetary savings achieved from enactment of 
     reconciliation legislation are devoted to deficit reduction 
     and cannot be used as an offset for future legislation.


                             Reserve Funds

    (Sec. 203 of the Senate amendment; Sec. 203 and Sec. 204 of the 
                         conference agreement)

       A budget resolution establishes binding ceilings on 
     spending and binding floors on

[[Page H6301]]

     revenues. These ceilings and floors are enforced by points of 
     order in the Senate that, if raised, can only be waived by an 
     affirmative vote of three-fifths of the Senate. A reserve 
     fund provides the Chairman of the Budget Committee with the 
     authority to modify the outlay ceiling and the revenue floor 
     to accommodate deficit-neutral legislation. The Budget Act 
     specifically authorizes the inclusion of reserve funds in a 
     budget resolution and past budget resolutions have included 
     reserve funds for a variety of purposes. For example, the 
     1995 budget resolution contained 11 such reserve funds.
     House resolution
       The House resolution contains no reserve funds.
     Senate amendment
       Section 203 of the Senate amendment provides a reserve fund 
     for deficit-neutral legislation that reduces revenues 
     following passage of the conference report on reconciliation. 
     This reserve fund provides the Chairman authority to modify 
     the aggregates for legislation that reduces revenues.
     Conference agreement
       The conference agreement contains two reserve funds: 
     section 203 provides a reserve fund in the Senate for tax 
     reduction legislation and section 204 provides a reserve fund 
     in both Houses for welfare reform legislation.
       Section 203 gives the Senate Budget Committee Chairman the 
     authority to revise budget aggregates and allocations for 
     deficit-neutral tax reduction legislation. This first reserve 
     fund is not available until after September 30, 1995. The 
     conferees chose this deadline because it falls after the 
     reconciliation reporting deadline (including time to respond 
     to the second reconciliation instruction).
       The conference agreement gives the Chairman the discretion 
     to modify the aggregates for deficit-neutral tax reduction 
     legislation. The conferees intend that committees meet their 
     reconciliation instructions first and that these savings are 
     enacted before this reserve fund is used. The conferees are 
     particularly opposed to efforts to take provisions from 
     reconciliation legislation that are necessary to balance the 
     budget and use them in separate legislation to pay for tax 
     reductions. However, if reconciliation legislation clearly 
     fails in the Congress or the President vetoes the 
     reconciliation bill and such veto is not over turned, this 
     reserve fund is provided to allow Congress the flexibility to 
     consider tax reform legislation as long as it does not 
     increase the deficit.
       Section 204 of the conference agreement provides a welfare 
     reserve fund for both Houses. This reserve fund provides a 
     mechanism to increase the discretionary caps for welfare 
     reform legislation that converts welfare entitlement programs 
     to discretionary programs. The conference agreement assumes 
     significant savings in welfare reform programs. This reserve 
     fund only can be triggered for legislation if the mandatory 
     savings associated with the conversion are in excess of the 
     savings necessary to comply with the reconciliation 
     directives of this resolution. While the Chairmen are given 
     discretion to revise allocations and aggregates pursuant to 
     this section, the conferees intend and fully expect that the 
     Chairmen will make these revisions if the conditions of the 
     welfare reserve fund are met. The fact that the conferees do 
     not make explicit assumptions about converting welfare 
     entitlement programs to discretionary programs should not be 
     viewed as a bias against such proposals, and this reserve 
     fund provides a mechanism to accommodate such legislation.


                        Budget Surplus Allowance

     (Sec. 204 of the Senate amendment; Sec. 205 of the conference 
                               agreement)

       The budget surplus allowance is a procedure to accommodate 
     tax reduction legislation if the budget is balanced by 2002. 
     The budget surplus allowance would make the additional 
     savings resulting from a balanced budget available for tax 
     reduction legislation.
       CBO has calculated that adoption of a balanced budget could 
     generate additional budgetary savings of $170 billion over 
     seven years as the result of reduced interest rates and 
     higher economic growth brought on by budget balance that 
     eliminates the need for additional federal borrowing. This 
     additional budgetary savings has been referred to as the 
     ``fiscal dividend'' or ``economic dividend''.
       Past budget resolutions have contained reserve funds, 
     contingencies or allowances that provide the Budget Committee 
     Chairman with the authority to modify the aggregate levels in 
     the budget resolution for future legislation. For example, 
     the 1995 budget resolution gave the Chairman the authority to 
     add $405 million in budget authority and outlays to the 
     levels in the budget resolution to accommodate higher 
     spending by the Internal Revenue Service (IRS).
     House resolution
       The House resolution contains no budget surplus allowances.
       The House budget resolution assumes CBO's $170 billion 
     fiscal dividend from balancing the budget. The House budget 
     resolution is based on CBO's January economic forecast and 
     projections. The House modified CBO's economic projections of 
     interest rates and real GDP growth to include CBO's estimate 
     of fiscal dividend. This modification reduces CBO's deficit 
     projection by $170 billion for the period 1996 through 2002.
     Senate amendment
       The Senate amendment did not include the $170 billion 
     fiscal dividend in the baseline. Instead, the Senate 
     amendment provides a procedure that would make the fiscal 
     dividend available for tax reduction legislation only after 
     enactment of a reconciliation bill that balances the budget 
     by 2002.
       Section 204 of the amendment provides a budget surplus 
     allowance that requires the Chairman of the Senate Budget 
     Committee to reduce the budget resolution's revenue floor by 
     an amount equal to the additional budgetary savings as 
     estimated by CBO that will be achieved as a result of the 
     enactment of legislation that produces a balanced budget.
       This section also establishes a number of contingencies 
     that accommodate tax reductions only if certain conditions 
     are met. The primary contingency is a requirement that the 
     Congressional Budget Office (CBO) certify that the 
     reconciliation bill will produce a balanced budget by 2002. 
     Once CBO certifies that the enacted reconciliation bill will 
     produce a balanced budget by 2002, the Chairman is required 
     to lower the revenue floor to accommodate legislation that 
     provides family tax relief and incentives to stimulate 
     savings, investment, job creation, and economic growth.
     Conference agreement
       Section 205 of the conference agreement establishes a 
     budget surplus allowance that provides that tax reductions 
     only will be enacted as part of a legislative package that 
     will produce a balanced budget by 2002. Under the conference 
     agreement, if this bill does not achieve balance by 2002, the 
     tax reductions are not to be included in the reconciliation 
     bill.
       Section 105 of the conference agreement includes two 
     reconciliation instructions. The first reconciliation 
     instruction, section 105(a), comprises the outlay savings 
     necessary to reach balance by 2002. The second instruction, 
     section 105(b) of the resolution, comprises the revenue 
     reductions and is triggered by the section 205 of the 
     conference agreement, the budget surplus allowance.
       Section 205 of the conference agreement requires the 
     Chairmen of the Budget Committees to submit committees' 
     responses to the first reconciliation instruction to the 
     Congressional Budget Office (CBO). If CBO certifies that 
     these legislation recommendations will reduce spending by an 
     amount that will lead to a balanced budget by 2002, the 
     second reconciliation instruction is triggered. On the other 
     hand, if CBO finds that the first submission would not lead 
     to a balanced budget by 2002 and committees are unable to 
     submit legislation that would produce a balanced budget, then 
     the Budget Committees are to report the reconciliation bill 
     absent the tax reductions.
       Section 205(a) also requires the Chairman of the Budget 
     Committees to submit the conference report on reconciliation 
     legislation to CBO prior to the submission of this conference 
     report. In conducting the assessment of legislative 
     submissions made pursuant to section 105(a), the conferees 
     intend that CBO not include the fiscal dividend. If the 
     conference report contains tax reductions pursuant to section 
     105(b), CBO's assessment of the conference report should take 
     into account the fiscal dividend in its assessment of whether 
     the conference report would achieve a balanced budget by 
     2002.
       If the second reconciliation instruction is triggered, the 
     tax writing committees are instructed to reduce revenues by a 
     total of not more than $245 billion over 7 years and by not 
     more than $50 billion in 2002. The tax writing committees are 
     given 5 days to submit tax legislation to the Budget 
     Committees. The Budget Committees are then required to add 
     this tax reduction legislation with the earlier submissions 
     and report one bill that encompasses both the spending 
     reductions and the tax reductions.
        If CBO certifies that the committees' reconciliation 
     submissions made pursuant to section 105(a) will achieve a 
     balanced budget, Section 205(b) requires the Chairman of the 
     Budget Committee to reduce the revenue aggregates by an 
     amount that is consistent with the reconciliation 
     instructions. The budget resolution revenue aggregates and 
     reconciliation instructions are not parallel in this 
     instance. The conferees intend that the Chairman reduce the 
     revenue aggregates by an amount that would accommodate a 
     seven year tax reduction of $245 billion as long as this 
     revision does not result in a deficit in 2002.
       The conference agreement is predicated on a balanced budget 
     plan. Section 205(e) provides that the revenue reconciliation 
     instruction and the authority to modify the revenue 
     aggregates to accommodate reconciliation legislation is only 
     available if the reconciliation directives are achieved and 
     the reconciliation legislation produces a balanced budget 
     based on CBO's estimates.
       Under section 205(e), the Senate Budget Committee Chairman 
     is responsible for assuring that the revenue aggregates are 
     not reduce below a level that would cause a deficit in 2002. 
     If CBO's assessment of the conference report under section 
     204(a) concludes that it will result in a deficit in 2002, in 
     compliance with this subsection, the conferees intend that 
     the Chairmen work with committees to modify the conference 
     report to achieve a balanced budget by 2002. If this is not 
     possible, it is the Senate Budget Committee Chairman's 
     responsibility to raise the revenue floor by an amount to 
     ensure that the reconciliation conference report achieves

[[Page H6302]]

     balance by 2002 and if the tax reductions in the conference 
     report are not modified, the conference report could be 
     subject to a point of order under section 311 of the Budget 
     Act.


                    Scoring of Emergency Legislation

                   (Sec. 205 of the Senate amendment)

       Section 606(d)(2) of the Congressional Budget and 
     Impoundment Control Act of 1974 provides that the budgetary 
     impact of legislation is not taken into account for Budget 
     Act points of order if legislation is designated as an 
     emergency by the President and the Congress.
     House resolution
       The House resolution contains no changes in rules or 
     procedures for emergency legislation, but section 9 of the 
     House resolution does contain sense of the Congress language 
     on emergency legislation.
     Senate amendment
       Section 205 of the Senate amendment provides that beginning 
     with 1996 all legislation will be scored for the purposes of 
     the budget resolution and the Budget Act even if it is 
     designated as an emergency. The Senate amendment does not 
     affect current law provisions that provide adjustments to the 
     caps so that emergency legislation does not cause a sequester 
     under the Balanced Budget and Emergency Deficit Control Act. 
     This section does provide that the discretionary caps 
     established by section 201 of this resolution will be 
     adjusted after the enactment of any emergency legislation to 
     hold the Appropriations Committee harmless for the cost of 
     the emergency legislation.
     Conference agreement
       The conference agreement contains no procedural provisions 
     regarding the scoring of emergency legislation.


                       Sale of Government Assets

(Sec. 6 of the House resolution; Sec. 206 of the Senate amendment; Sec. 
                    206 of the conference agreement)

       In 1987, the Congress adopted a change in the scoring of 
     legislation to provide that the proceeds from assets sales 
     should not be taken into account for budget enforcement 
     purposes. Each budget resolution since 1986 has contained 
     language prohibiting the scoring of savings associated with 
     asset sales. In addition, section 257(e) of the Balanced 
     Budget and Emergency Deficit Control Act prohibits the 
     scoring of the proceeds from asset sales.
     House resolution
       Section 6 of the House resolution provides that for the 
     purposes of the Budget Act and budget resolutions the 
     proceeds from asset sales will be scored.
     Senate amendment
       Section 106 of the Senate amendment contains the same 
     language as section 6 of the House resolution.
     Conference agreement
       The conference agreement contains the House language. The 
     conferees are concerned about the long-term budgetary impact 
     of asset sales and do not support asset sales that would cost 
     the Federal government money in the long run. The conferees 
     believe that the Congress should consider adoption of a new 
     scoring rule that would take into account the long-term 
     budgetary impact of asset sales.
       Subsection (d) of the conference agreement includes 
     language providing that loan prepayments and loan asset sales 
     should be governed by the terms of the Federal Credit Reform 
     Act of 1990. Both the Congressional Budget Office (CBO) and 
     the Office of Management and Budget (OMB) currently score 
     proposed loan prepayments and loan asset sales under credit 
     reform. The conferees believe OMB and CBO have properly 
     scored these transactions. The conferees are including this 
     language to make it clear that the repeal of the asset sale 
     scoring rule does not impact the scoring of loan asset sales 
     or prepayments, which will continue to be governed by the 
     Federal Credit Reform Act of 1990.


                 Credit Reform and Direct Student Loans

     (Sec. 207 of the Senate amendment; Sec. 207 of the conference 
                               agreement)

       The 1990 Federal Credit Reform Act modified the budgetary 
     treatment of Federal credit programs to take into account the 
     long-term cost of Federal credit activities. More 
     specifically, this law required the cost of direct loans and 
     guaranteed loans to be measured by taking the net present 
     value of the cash flows over the life of the direct loan or 
     loan guarantee.
     House resolution
       The House resolution does not contain procedural provisions 
     regarding the scoring of student loans, but section 13 of the 
     House resolution includes sense of the Congress language on 
     the scoring of student loans.
     Senate amendment
       Section 207 of the Senate amendment puts the measurement of 
     administrative expenses of guaranteed student loans on equal 
     footing with legislation that would expand direct student 
     lending by the Federal government. More specifically, this 
     section provides that for the purposes of Congressional 
     scoring the administrative costs for new direct student loans 
     to be measured on a net present value basis.
     Conference agreement
       The conference agreement contains the Senate provision with 
     an amendment. The conference agreement would apply the new 
     scoring of administrative costs for all legislation affecting 
     student loans.
       The conferees recommend this change to correct a disparity 
     that has arisen under the Federal Credit Reform Act of 1990 
     for the scoring of student loans. Currently, the 
     administrative costs for direct student loans are measured on 
     a cash basis, with the budget reflecting only that year's 
     cost of administering the loan. For guaranteed student loans, 
     the administrative costs are measured on a net present value 
     basis for the entire length of the loan. The result is that 
     direct lending appears to be much less expensive than 
     guaranteed student lending. Both the Congressional Research 
     Service and the Congressional Budget Office have acknowledged 
     the bias that this treatment of administrative expenses has 
     created.


              extension of budget act 60-vote enforcement

     (Sec. 208 of the Senate amendment; Sec. 208 of the conference 
                               agreement)

       Under current law, the three-fifths requirement in the 
     Senate to waive many of the Budget Act's points of order is 
     permanent. The 1995 concurrent resolution on the budget 
     provided a 1998 sunset date for the three-fifths waiver 
     requirement for many of these points of order.
     House resolution
       The House resolution contains no provisions regarding the 
     sunset date for super majority points of order in the Senate.
     Senate amendment
       Section 208 of the Senate amendment extends the sunset date 
     for this three-fifths waiver requirement through 2002. The 
     Senate amendment does not affect section 313 of the Budget 
     Act (the Byrd rule), which has a permanent requirement for a 
     three-fifths waiver.
     Conference agreement
       The conference agreement contains the Senate provision.


                      repeal of the irs allowance

(Sec. 7 of the House resolution; Sec. 209 of the Senate amendment; Sec. 
                    209 of the conference agreement)

       Section 25 of the 1995 budget resolution (H. Con. Res. 218) 
     created a $405 million budget authority and outlay allowance 
     to fund an Internal Revenue Service (IRS) compliance 
     initiative outside the discretionary caps. This section 
     provided that the budget resolution's discretionary caps, 
     allocations, and aggregates would be revised upward by $405 
     million upon the reporting of appropriations legislation that 
     fully funded an IRS compliance initiative.
     House resolution
       Section 7 of the House resolution restates section 25 of H. 
     Con. Res. 218 and provides a $405 million budget authority 
     and outlay allowance for the IRS.
     Senate amendment
       Section 209 of the Senate amendment repeals this allowance 
     and expresses the sense of the Senate concerning the 
     Taxpayers Bill of Rights and the priority to be given to 
     compliance programs in IRS funding.
     Conference agreement
       The conference agreement contains the Senate provision on 
     the repeal of the IRS allowance. The conferees are concerned 
     about efforts to circumvent the caps and do not believe that 
     the IRS should be funded outside the discretionary caps. The 
     conferees believe that the IRS compliance initiative should 
     be fully funded and the conference agreement assumes funding 
     for this initiative in function 800, General Government.
       While the conference agreement does not contain the sense 
     of the Senate provisions on taxpayer bills of rights, the 
     Senate conferees urge the Senate to pass the taxpayer bill of 
     rights to this Congress.


      tax reduction contingent on the balanced budget in the house

                 (Sec. 210 of the conference agreement)

     House resolution
       Section 4 of the House resolution contains a reconciliation 
     instruction to the House Ways and Means Committee to reduce 
     revenues. That instruction assumes enactment of the Tax 
     Fairness and Deficit Reduction Act, replacement of the one-
     dollar bill, and the elimination of several corporate tax 
     subsidies.
     Senate amendment
       The Senate amendment contains a tax reserve fund that would 
     accommodate deficit neutral legislation that reduced revenues 
     after passage of the reconciliation conference report. The 
     amendment also contains a budget surplus allowance that makes 
     CBO's ``fiscal dividend'' available after enactment of the 
     reconciliation measure for legislation that reduces revenues 
     for family tax relief and incentives to stimulate savings, 
     investment, job creation, and economic growth.
     Conference agreement
       The conference agreement establishes a process for 
     certifying a balanced budget before the House takes up a 
     reconciliation bill that would reduce taxes. The 
     Congressional Budget Office would score all legislation 
     submitted to the Budget Committee (or any amendment by the 
     Rules Committee self-executed into the bill) and the economic 
     dividend that would result from a balanced budget. On the 
     basis of a CBO estimate of a balanced budget, the Chairman of 
     the Budget Committee would certify a balanced budget.

[[Page H6303]]

       If the Chairman certifies a balanced budget, then the 
     revenue floor in the budget resolution would be reduced. In 
     the absence of such certification, the reconciliation bill 
     would be subject to a point of order under Section 311 of the 
     Budget Act because it would cause revenues to be less than 
     revenue floor established in the budget resolution.


                     Exercise of Rulemaking Powers

     (Sec. 210 of the Senate amendment; Sec. 211 of the conference 
                               agreement)

       The Constitution reserves to each of the Houses the 
     authority to determine its own rules. When Congress adopts 
     new rules or procedures in legislation, the Congress 
     frequently includes a provision stating that the changes 
     represent an exercise of the rulemaking authority of the 
     House of Representatives and the Senate and the two Houses 
     reserve their right to modify their rules at anytime. For 
     example, section 904(a) of the Congressional Budget and 
     Impoundment Control Act of 1974 provides a provision 
     reserving the rulemaking authority of the House of 
     Representatives and the Senate.
     House resolution
       The House resolution contains no provision regarding the 
     rulemaking authority of the Houses.
     Senate amendment
       Section 210 of the Senate amendment states that the 
     procedural provisions in the amendment are made in 
     recognition of the Constitutional right of the Senate to make 
     its own rules and to change those rules at any time in an 
     appropriate manner.
     Conference agreement
       The conference agreement contains the Senate provision with 
     an amendment to expand the application of the language to the 
     House of Representatives.

                        Miscellaneous Provisions


                       sense of congress language

  (Secs. 5 and 8 through 14 of the House resolution, title III of the 
      Senate amendment, and title III of the conference agreement)

     House resolution
       Section 5 of the House resolution includes a statement that 
     Congress will re-examine the reductions in the agricultural 
     programs for fiscal years 1999 and 2000 unless: 1998 
     agricultural land values are at least 95 percent of their 
     value today, regulatory relief for the agriculture sector is 
     enacted, certain tax relief is enacted, and trade agreements 
     are implemented that result in lower subsidies and fewer 
     import barriers.
       The House resolution includes provisions that express the 
     sense of Congress that: baseline budgeting should be replaced 
     with a form of budgeting that requires full justification and 
     analysis of proposals and that maximizes Congressional 
     accountability for public spending (section 8); that Congress 
     should study alternative approaches to budgeting for 
     emergencies (section 9); that Sallie Mae should be 
     restructured as a private corporation (section 10); that 
     House rule XLIX should be repealed and the extension of the 
     public debt should be set at levels and at such durations as 
     to ensure a balanced budget by 2002 (section 12); that the 
     costs of direct student loans should be the net present value 
     of the disbursement, principal repayment, and other payments 
     and costs including administrative expenses (section 13); and 
     that a commission should be established to make 
     recommendations concerning the long-term solvency of the 
     military and civil retirement funds (section 14).
       In addition, the House resolution includes one provision 
     expressing the sense of the House of Representatives 
     regarding the payment of the debt (section 11).
     Senate amendment
       Title III of the Senate amendment includes seven provisions 
     that express the sense of the Congress that: the Federal 
     government should develop a uniform Federal accounting system 
     (section 305), that 90 percent of the benefits of any tax 
     cuts should be targeted to working families earning less than 
     $100,000 annually (section 306), that a bipartisan commission 
     should be established to make recommendations concerning the 
     solvency of Medicare in the short and long-term (section 
     307), that the health care needs of pregnant women and 
     children should receive priority under Medicaid reform 
     (section 309), that funding for brain research should receive 
     priority in furtherance of the goals of the Decade of the 
     Brain (section 313), that Congress should consider the 
     Independent Budget for Veterans Affairs (section 314), and 
     that the use of campaign funds or privately-donated funds 
     should be prohibited for expenses in relation to sexual 
     harassment suits (section 317).
       In addition, Title III of the Senate amendment contains 22 
     sense of the Senate provisions: on program terminations 
     (section 301), on returning programs to the States (section 
     302), on encouraging turning certain Federal functions over 
     to the private sector (section 303), on the creation of a 
     non-partisan commission on the Consumer Price Index (section 
     304), on the distribution of agriculture savings (section 
     308), on the continued non-deductibility of lobbying expenses 
     (section 310), on the revision of the expatriate tax 
     (sections 311 and 319), on Medicare fraud and abuse (section 
     312), on funding to States for Motor Voter expenses (section 
     315), on the use of Presidential Election Campaign funds for 
     expenses in relation to sexual harassment suits (section 
     316), on Impact Aid (section 318), on Stafford student loans 
     (section 320), on children's nutritional health (section 
     321), on law enforcement and the Crime Trust Fund (section 
     322), on long-term health care (section 323), on the sale of 
     power marketing administrations (section 324), on overhead 
     expenses in the Department of Defense (section 325), on the 
     essential air service (section 326), on renewable energy 
     research (section 327), and on reductions in student loans 
     (section 328). In addition, section 209 was amended to 
     include sense of the Senate language concerning funding for 
     tax compliance efforts and enactment of the ``Taxpayers Bill 
     of Rights II.''
     Conference agreement
       Title III of the Conference agreement includes three 
     separate provisions that express the sense of the Congress 
     that: the committees of jurisdiction, in meeting the levels 
     in the resolution, should give priority to proposals that 
     identify, eliminate, and recover funds lost due to fraud and 
     abuse in the Medicare system (section 301); that Sallie Mae 
     be restructured as a private corporation (section 302); and 
     that the extension of the public debt limit be set at such 
     levels and for such duration as to ensure the budget be 
     balanced by 2002 (section 303).
       Section 304 of the conference agreement also expresses the 
     sense of the Congress that the aggregates and functional 
     levels in the budget resolution assume: that Federal programs 
     should be restructured; that Federal programs should be 
     reviewed to determine whether they would be more 
     appropriately the responsibility of the States; that Congress 
     should examine Federal functions to determine those that 
     would be more efficiently and effectively performed by the 
     private sector; that Congress has a responsibility to future 
     generations to balance the budget and to pay down the debt; 
     that funding for nutrition programs may be reduced without 
     compromising the nutritional health and well-being of the 
     program recipients; and that priority should be given to 
     funding for science and basic and applied research.
       The Conference agreement includes four separate sections 
     that express the sense of the Senate: that the budget 
     resolution assumes that the taxes will be restructured to 
     benefit working families (section 305); that the Senate 
     Agriculture Committee should provide no more than 20 percent 
     of the savings under Reconciliation from the commodity 
     programs (section 306); that a bipartisan commission should 
     be established immediately to make recommendations concerning 
     the short-term solvency of the medicare system (section 308); 
     and that the health care needs of pregnant women and children 
     should receive priority under Medicaid reform (section 309).
       In addition, section 307 expresses the sense of the Senate 
     that the aggregates and functions levels in the budget 
     resolution assume: that the Federal government should 
     establish a uniform accounting system, that the expatriate 
     tax should be revised and any savings should go to deficit 
     reduction, that research on brain diseases and disorders 
     should be funded in furtherance of the goals of the Decade of 
     the Brain, that the essential air service should receive 
     sufficient funding to continue to provide air service to 
     small rural communities, that funds should be made available 
     to the States to reimburse for expenses in implementing Motor 
     Voter, and that a non-partisan commission should be 
     established to examine and make recommendations concerning 
     the accuracy of the methodology used to determine the 
     Consumer Price Index.
       The Conference agreement also includes five separate 
     provisions that express the sense of the House of 
     Representatives that: reductions in agricultural programs in 
     fiscal years 1999 and 2000 the House of Representatives shall 
     be re-examined unless certain conditions are met (section 
     310); that baseline budgeting should be replaced with a 
     method that requires justification and analysis of proposals 
     and that maximizes Congressional accountability (section 
     311); that a commission should be established to study and 
     make recommendations to ensure the long-term solvency of the 
     military and civil service retirement funds (section 312); 
     that rule XLIX of the rules of the House of Representatives 
     should be repealed (section 313); and that an alternative 
     approach to the scoring of emergencies should be studied 
     (section 314).


                     Display of Levels and Amounts

     House resolution
       The House resolution contains all of the displays of levels 
     and amounts required by it under section 301(a) of the 
     Congressional Budget Act, and includes a display of new 
     secondary loan guarantee commitments within the functional 
     levels and amounts. The House resolution contains no other 
     alternative displays.
     Senate amendment
       The Senate amendment contains all of the displays of levels 
     and amounts required under section 301(a) of the 
     Congressional Budget Act, including displays the levels of 
     Social Security revenues and outlays, as required by 
     paragraph (6) for enforcement purposes in the Senate. As 
     authorized by section 301(b)(5), of the Senate amendment 
     displays the amounts of the increase in the public debt 
     subject to limitation. For informational purposes, the Senate 
     amendment also includes a display of the gross interest on 
     the public debt consistent with the levels of net interests 
     shown in functional category 900 and a display of the 
     aggregate levels and

[[Page H6304]]

     functional amounts without including the Hospital Insurance 
     Trust Fund.
     Conference agreement
       The conference agreement includes all of the required 
     displays of levels and amounts, including those of Social 
     Security outlays and revenues. The agreement also includes 
     the amounts of the increase in the public debt subject to 
     limit. With respect to the informational displays, the 
     conference agreement contains the display of the gross 
     interest on the public debt consistent with the levels of net 
     interest in function 900. The conference agreement recedes to 
     the House concerning the informational display of levels and 
     amounts without the Hospital Insurance trust fund amounts and 
     the House recedes to the Senate on the display of secondary 
     loan guarantee commitments.
     John R. Kasich,
     Dave Hobson,
     Bob Walker,
     Jim Kolbe,
     Christopher Shays,
     Wally Herger,
     Wayne Allard,
     Bob Franks,
     Steve Largent
     Sue Myrick,
     Mike Parker,
                                Managers on the Part of the House.

     Pete Domenici,
     Chuck Grassley,
     Don Nickles,
     Trent Lott,
     Hank Brown,
     Slade Gorton,
     Judd Gregg,
                               Managers on the Part of the Senate.

     

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