[Congressional Record Volume 143, Number 75 (Wednesday, June 4, 1997)]
[House]
[Pages H3358-H3424]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




    CONFERENCE REPORT ON HOUSE CONCURRENT RESOLUTION 84, CONCURRENT 
               RESOLUTION ON THE BUDGET, FISCAL YEAR 1998

  Mr. HOBSON submitted the following conference report and statement on 
the concurrent resolution (H. Con. Res. 84) establishing the 
congressional budget for the U.S. Government for fiscal year 1998 and 
setting forth appropriate budgetary levels for fiscal years 1999, 2000, 
2001, and 2002:

                  Conference Report (H. Rept. 105-116)

       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. 84), establishing the congressional 
     budget for the United States Government for fiscal year 1998 
     and setting forth appropriate budgetary levels for fiscal 
     years 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 to the text of the resolution 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 1998.

       (a) Declaration.--The Congress determines and declares that 
     this resolution is the concurrent resolution on the budget 
     for fiscal year 1998 including the appropriate budgetary 
     levels for fiscal years 1999, 2000, 2001, and 2002 as 
     required by section 301 of the Congressional Budget Act of 
     1974.
       (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 1998.

                      TITLE I--LEVELS AND AMOUNTS

Sec. 101. Recommended levels and amounts.
Sec. 102. Social security.
Sec. 103. Major functional categories.
Sec. 104. Reconciliation in the Senate.
Sec. 105. Reconciliation in the House of Representatives.

             TITLE II--BUDGETARY RESTRAINTS AND RULEMAKING

Sec. 201. Discretionary spending limits.
Sec. 202. Allowance for the IMF.
Sec. 203. Allowance for section 8 housing assistance.
Sec. 204. Separate environmental allocation.
Sec. 205. Priority Federal land acquisitions and exchanges.
Sec. 206. Allowance for arrearages.
Sec. 207. Intercity passenger rail reserve fund for fiscal years 1998-
              2002.
Sec. 207A. Intercity passenger rail reserve fund in the Senate for 
              fiscal years 1998-2002.
Sec. 208. Mass transit reserve fund in the Senate for fiscal years 
              1998-2002.
Sec. 209. Highway reserve fund in the Senate for fiscal years 1998-
              2002.
Sec. 210. Deficit--neutral reserve fund in the House for surface 
              transportation.
Sec. 211. Sale of Government assets.
Sec. 212. Determinations of budgetary levels; reversals.
Sec. 213. Exercise of rulemaking powers.

       TITLE III--SENSE OF CONGRESS, HOUSE, AND SENATE PROVISIONS

                   Subtitle A--Sense of the Congress

Sec. 301. Sense of the Congress on repayment of the Federal debt.

[[Page H3359]]

Sec. 302. Sense of the Congress on tax cuts.
Sec. 303. Sense of Congress that the 10-year revenue loss from the tax 
              relief package shall not exceed $250,000,000,000.

                     Subtitle B--Sense of the House

Sec. 306. Sense of the House on Commission on Long-Term Budgetary 
              Problems.
Sec. 307. Sense of the House on corporate welfare.
Sec. 308. Sense of the House on baselines.
Sec. 309. Sense of the House on family violence option clarifying 
              amendment.

                    Subtitle C--Sense of the Senate

Sec. 311. Sense of the Senate on long term entitlement reforms, 
              including accuracy in determining changes in the cost of 
              living.
Sec. 312. Sense of the Senate on tactical fighter aircraft programs.
Sec. 313. Sense of the Senate regarding children's health coverage.
Sec. 314. Sense of the Senate on a medicaid per capita cap.
Sec. 315. Sense of the Senate that added savings go to deficit 
              reduction.
Sec. 316. Sense of the Senate on fairness in medicare.
Sec. 317. Sense of the Senate regarding assistance to Lithuania and 
              Latvia.
Sec. 318. Sense of the Senate regarding a National Commission on Higher 
              Education.
Sec. 319. Sense of the Senate on lockbox.
Sec. 320. Sense of the Senate on the earned income credit.
Sec. 321. Sense of the Senate supporting long-term entitlement reforms.
Sec. 322. Sense of the Senate on disaster assistance funding.
Sec. 323. Sense of the Senate on enforcement of bipartisan budget 
              agreement.
Sec. 324. Sense of the Senate regarding the National Institutes of 
              Health.
Sec. 325. Sense of the Senate regarding certain elderly legal aliens.
Sec. 326. Sense of the Senate regarding retroactive taxes.
Sec. 327. Sense of the Senate on social security and balancing the 
              budget.
Sec. 328. Sense of the Senate supporting sufficient funding for 
              veterans programs and benefits.
Sec. 329. Sense of the Senate on family violence option clarifying 
              amendment.
Sec. 330. Sense of the Senate regarding assistance to Amtrak.
Sec. 331. Sense of the Senate regarding the protection of children's 
              health.
Sec. 332. Sense of the Senate on depositing all Federal gasoline taxes 
              into the Highway Trust Fund.
Sec. 333. Sense of the Senate on early childhood education.
Sec. 334. Sense of the Senate concerning Highway Trust Fund.
Sec. 335. Sense of the Senate concerning tax incentives for the cost of 
              post-secondary education.
Sec. 336. Sense of the Senate on additional tax cuts.
Sec. 337. Sense of the Senate regarding truth in budgeting and spectrum 
              auctions.
Sec. 338. Sense of the Senate on highway demonstration projects.
Sec. 339. Sense of the Senate regarding the use of budget savings.
Sec. 340. Sense of the Senate regarding the value of the social 
              security system for future retirees.
Sec. 341. Sense of the Senate on economic growth dividend protection.
Sec. 342. Sense of the Senate supporting Federal, State, and local law 
              enforcement officers.
Sec. 343. Sense of Senate regarding parental involvement in prevention 
              of drug use by children.
                      TITLE I--LEVELS AND AMOUNTS

     SEC. 101. RECOMMENDED LEVELS AND AMOUNTS.

       The following budgetary levels are appropriate for the 
     fiscal years 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 1998: $1,199,000,000,000.
       Fiscal year 1999: $1,241,900,000,000.
       Fiscal year 2000: $1,285,600,000,000.
       Fiscal year 2001: $1,343,600,000,000.
       Fiscal year 2002: $1,407,600,000,000.
       (B) The amounts by which the aggregate levels of Federal 
     revenues should be changed are as follows:
       Fiscal year 1998: $-7,400,000,000.
       Fiscal year 1999: $-11,100,000,000.
       Fiscal year 2000: $-22,000,000,000.
       Fiscal year 2001: $-22,800,000,000.
       Fiscal year 2002: $-19,900,000,000.
       (C) The amounts for Federal Insurance Contributions Act 
     revenues for hospital insurance within the recommended levels 
     of Federal revenues are as follows:
       Fiscal year 1998: $113,500,000,000.
       Fiscal year 1999: $119,100,000,000.
       Fiscal year 2000: $125,100,000,000.
       Fiscal year 2001: $130,700,000,000.
       Fiscal year 2002: $136,800,000,000.
       (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 1998: $1,386,700,000,000.
       Fiscal year 1999: $1,440,100,000,000.
       Fiscal year 2000: $1,486,400,000,000.
       Fiscal year 2001: $1,520,200,000,000.
       Fiscal year 2002: $1,551,600,000,000.
       (3) Budget outlays.--For purposes of the enforcement of 
     this resolution, the appropriate levels of total budget 
     outlays are as follows:
       Fiscal year 1998: $1,372,000,000,000.
       Fiscal year 1999: $1,424,100,000,000.
       Fiscal year 2000: $1,468,800,000,000.
       Fiscal year 2001: $1,500,700,000,000.
       Fiscal year 2002: $1,515,900,000,000.
       (4) Deficits.--For purposes of the enforcement of this 
     resolution, the amounts of the deficits are as follows:
       Fiscal year 1998: $-173,000,000,000.
       Fiscal year 1999: $-182,200,000,000.
       Fiscal year 2000: $-183,200,000,000.
       Fiscal year 2001: $-157,100,000,000.
       Fiscal year 2002: $-108,300,000,000.
       (5) Public debt.--The appropriate levels of the public debt 
     are as follows:
       Fiscal year 1998: $5,593,500,000,000.
       Fiscal year 1999: $5,841,000,000,000.
       Fiscal year 2000: $6,088,600,000,000.
       Fiscal year 2001: $6,307,300,000,000.
       Fiscal year 2002: $6,481,200,000,000.
       (6) Direct loan obligations.--The appropriate levels of 
     total new direct loan obligations are as follows:
       Fiscal year 1998: $34,000,000,000.
       Fiscal year 1999: $33,400,000,000.
       Fiscal year 2000: $34,900,000,000.
       Fiscal year 2001: $36,100,000,000.
       Fiscal year 2002: $37,400,000,000.
       (7) Primary loan guarantee commitments.--The appropriate 
     levels of new primary loan guarantee commitments are as 
     follows:
       Fiscal year 1998: $315,700,000,000.
       Fiscal year 1999: $324,900,000,000.
       Fiscal year 2000: $328,200,000,000.
       Fiscal year 2001: $332,200,000,000.
       Fiscal year 2002: $335,300,000,000.

     SEC. 102. 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 1998: $402,800,000,000.
       Fiscal year 1999: $422,300,000,000.
       Fiscal year 2000: $442,600,000,000.
       Fiscal year 2001: $461,600,000,000.
       Fiscal year 2002: $482,800,000,000.
       (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 1998: $317,600,000,000.
       Fiscal year 1999: $330,600,000,000.
       Fiscal year 2000: $343,600,000,000.
       Fiscal year 2001: $358,100,000,000.
       Fiscal year 2002: $372,500,000,000.

     SEC. 103. 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 1998 through 2002 for each major 
     functional category are:
       (1) National Defense (050):
       Fiscal year 1998:
       (A) New budget authority, $268,200,000,000.
       (B) Outlays, $266,000,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $600,000,000.
       Fiscal year 1999:
       (A) New budget authority, $270,800,000,000.
       (B) Outlays, $265,800,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $800,000,000.
       Fiscal year 2000:
       (A) New budget authority, $274,800,000,000.
       (B) Outlays, $268,400,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $1,100,000,000.
       Fiscal year 2001:
       (A) New budget authority, $281,300,000,000.
       (B) Outlays, $270,100,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $1,100,000,000.
       Fiscal year 2002:
       (A) New budget authority, $289,100,000,000.
       (B) Outlays, $272,600,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $1,100,000,000.
       (2) International Affairs (150):
       Fiscal year 1998:
       (A) New budget authority, $15,900,000,000.
       (B) Outlays, $14,600,000,000.
       (C) New direct loan obligations, $2,000,000,000.
       (D) New primary loan guarantee commitments, 
     $12,800,000,000.
       Fiscal year 1999:
       (A) New budget authority, $14,900,000,000.
       (B) Outlays, $14,600,000,000.
       (C) New direct loan obligations, $2,000,000,000.
       (D) New primary loan guarantee commitments, 
     $13,100,000,000.
       Fiscal year 2000:
       (A) New budget authority, $15,800,000,000.
       (B) Outlays, $15,000,000,000.
       (C) New direct loan obligations, $2,100,000,000.
       (D) New primary loan guarantee commitments, 
     $13,400,000,000.
       Fiscal year 2001:
       (A) New budget authority, $16,100,000,000.
       (B) Outlays, $14,800,000,000.
       (C) New direct loan obligations, $2,100,000,000.
       (D) New primary loan guarantee commitments, 
     $13,800,000,000.
       Fiscal year 2002:
       (A) New budget authority, $16,400,000,000.
       (B) Outlays, $14,800,000,000.
       (C) New direct loan obligations, $2,200,000,000.
       (D) New primary loan guarantee commitments, 
     $14,200,000,000.
       (3) General Science, Space, and Technology (250):

[[Page H3360]]

       Fiscal year 1998:
       (A) New budget authority, $16,200,000,000.
       (B) Outlays, $16,900,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 1999:
       (A) New budget authority, $16,200,000,000.
       (B) Outlays, $16,500,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2000:
       (A) New budget authority, $15,900,000,000.
       (B) Outlays, $16,000,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2001:
       (A) New budget authority, $15,800,000,000.
       (B) Outlays, $15,900,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2002:
       (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.
       (4) Energy (270):
       Fiscal year 1998:
       (A) New budget authority, $3,100,000,000.
       (B) Outlays, $2,200,000,000.
       (C) New direct loan obligations, $1,100,000,000.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 1999:
       (A) New budget authority, $3,500,000,000.
       (B) Outlays, $2,400,000,000.
       (C) New direct loan obligations, $1,100,000,000.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2000:
       (A) New budget authority, $3,200,000,000.
       (B) Outlays, $2,300,000,000.
       (C) New direct loan obligations, $1,100,000,000.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2001:
       (A) New budget authority, $2,900,000,000.
       (B) Outlays, $2,000,000,000.
       (C) New direct loan obligations, $1,100,000,000.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2002:
       (A) New budget authority, $2,800,000,000.
       (B) Outlays, $1,900,000,000.
       (C) New direct loan obligations, $1,200,000,000.
       (D) New primary loan guarantee commitments, $0.
       (5) Natural Resources and Environment (300):
       Fiscal year 1998:
       (A) New budget authority, $23,900,000,000.
       (B) Outlays, $22,400,000,000.
       (C) New direct loan obligations, $100,000,000.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 1999:
       (A) New budget authority, $23,200,000,000.
       (B) Outlays, $22,700,000,000.
       (C) New direct loan obligations, $100,000,000.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2000:
       (A) New budget authority, $22,600,000,000.
       (B) Outlays, $23,000,000,000.
       (C) New direct loan obligations, $100,000,000.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2001:
       (A) New budget authority, $22,200,000,000.
       (B) Outlays, $22,700,000,000.
       (C) New direct loan obligations, $100,000,000.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2002:
       (A) New budget authority, $22,100,000,000.
       (B) Outlays, $22,300,000,000.
       (C) New direct loan obligations, $100,000,000.
       (D) New primary loan guarantee commitments, $0.
       (6) Agriculture (350):
       Fiscal year 1998:
       (A) New budget authority, $13,100,000,000.
       (B) Outlays, $11,900,000,000.
       (C) New direct loan obligations, $9,600,000,000.
       (D) New primary loan guarantee commitments, $6,400,000,000.
       Fiscal year 1999:
       (A) New budget authority, $12,800,000,000.
       (B) Outlays, $11,300,000,000.
       (C) New direct loan obligations, $11,000,000,000.
       (D) New primary loan guarantee commitments, $6,400,000,000.
       Fiscal year 2000:
       (A) New budget authority, $12,200,000,000.
       (B) Outlays, $10,700,000,000.
       (C) New direct loan obligations, $11,100,000,000.
       (D) New primary loan guarantee commitments, $6,500,000,000.
       Fiscal year 2001:
       (A) New budget authority, $11,000,000,000.
       (B) Outlays, $9,500,000,000.
       (C) New direct loan obligations, $11,000,000,000.
       (D) New primary loan guarantee commitments, $6,600,000,000.
       Fiscal year 2002:
       (A) New budget authority, $10,700,000,000.
       (B) Outlays, $9,100,000,000.
       (C) New direct loan obligations, $11,000,000,000.
       (D) New primary loan guarantee commitments, $6,700,000,000.
       (7) Commerce and Housing Credit (370):
       Fiscal year 1998:
       (A) New budget authority, $6,600,000,000.
       (B) Outlays, -$900,000,000.
       (C) New direct loan obligations, $4,700,000,000.
       (D) New primary loan guarantee commitments, 
     $245,500,000,000.
       Fiscal year 1999:
       (A) New budget authority, $11,100,000,000.
       (B) Outlays, $4,300,000,000.
       (C) New direct loan obligations, $1,900,000,000.
       (D) New primary loan guarantee commitments, 
     $253,500,000,000.
       Fiscal year 2000:
       (A) New budget authority, $15,200,000,000.
       (B) Outlays, $9,800,000,000.
       (C) New direct loan obligations, $2,200,000,000.
       (D) New primary loan guarantee commitments, 
     $255,200,000,000.
       Fiscal year 2001:
       (A) New budget authority, $16,100,000,000.
       (B) Outlays, $12,100,000,000.
       (C) New direct loan obligations, $2,600,000,000.
       (D) New primary loan guarantee commitments, 
     $258,000,000,000.
       Fiscal year 2002:
       (A) New budget authority, $16,700,000,000.
       (B) Outlays, $12,500,000,000.
       (C) New direct loan obligations, $2,700,000,000.
       (D) New primary loan guarantee commitments, 
     $259,900,000,000.
       (8) Transportation (400):
       Fiscal year 1998:
       (A) New budget authority, $46,400,000,000.
       (B) Outlays, $40,900,000,000.
       (C) New direct loan obligations, $200,000,000.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 1999:
       (A) New budget authority, $46,600,000,000.
       (B) Outlays, $41,300,000,000.
       (C) New direct loan obligations, $100,000,000.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2000:
       (A) New budget authority, $47,100,000,000.
       (B) Outlays, $41,400,000,000.
       (C) New direct loan obligations, $100,000,000.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2001:
       (A) New budget authority, $48,100,000,000.
       (B) Outlays, $41,300,000,000.
       (C) New direct loan obligations, $100,000,000.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2002:
       (A) New budget authority, $49,200,000,000.
       (B) Outlays, $41,200,000,000.
       (C) New direct loan obligations, $100,000,000.
       (D) New primary loan guarantee commitments, $0.
       (9) Community and Regional Development (450):
       Fiscal year 1998:
       (A) New budget authority, $8,800,000,000.
       (B) Outlays, $10,400,000,000.
       (C) New direct loan obligations, $2,900,000,000.
       (D) New primary loan guarantee commitments, $2,400,000,000.
       Fiscal year 1999:
       (A) New budget authority, $8,500,000,000.
       (B) Outlays, $10,900,000,000.
       (C) New direct loan obligations, $2,900,000,000.
       (D) New primary loan guarantee commitments, $2,400,000,000.
       Fiscal year 2000:
       (A) New budget authority, $7,800,000,000.
       (B) Outlays, $11,000,000,000.
       (C) New direct loan obligations, $3,000,000,000.
       (D) New primary loan guarantee commitments, $2,400,000,000.
       Fiscal year 2001:
       (A) New budget authority, $7,800,000,000.
       (B) Outlays, $11,400,000,000.
       (C) New direct loan obligations, $3,100,000,000.
       (D) New primary loan guarantee commitments, $2,500,000,000.
       Fiscal year 2002:
       (A) New budget authority, $7,800,000,000.
       (B) Outlays, $8,400,000,000.
       (C) New direct loan obligations, $3,200,000,000.
       (D) New primary loan guarantee commitments, $2,500,000,000.
       (10) Education, Training, Employment, and Social Services 
     (500):
       Fiscal year 1998:
       (A) New budget authority, $60,000,000,000.
       (B) Outlays, $56,100,000,000.
       (C) New direct loan obligations, $12,300,000,000.
       (D) New primary loan guarantee commitments, 
     $20,700,000,000.
       Fiscal year 1999:
       (A) New budget authority, $60,500,000,000.
       (B) Outlays, $59,300,000,000.
       (C) New direct loan obligations, $13,100,000,000.
       (D) New primary loan guarantee commitments, 
     $21,900,000,000.
       Fiscal year 2000:
       (A) New budget authority, $61,700,000,000.
       (B) Outlays, $60,700,000,000.
       (C) New direct loan obligations, $13,900,000,000.
       (D) New primary loan guarantee commitments, 
     $23,300,000,000.
       Fiscal year 2001:
       (A) New budget authority, $63,000,000,000.
       (B) Outlays, $61,900,000,000.
       (C) New direct loan obligations, $14,700,000,000.
       (D) New primary loan guarantee commitments, 
     $24,500,000,000.
       Fiscal year 2002:
       (A) New budget authority, $63,300,000,000.
       (B) Outlays, $62,300,000,000.
       (C) New direct loan obligations, $15,400,000,000.
       (D) New primary loan guarantee commitments, 
     $25,700,000,000.
       (11) Health (550):
       Fiscal year 1998:
       (A) New budget authority, $137,800,000,000.
       (B) Outlays, $137,800,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $100,000,000.

[[Page H3361]]

       Fiscal year 1999:
       (A) New budget authority, $145,000,000,000.
       (B) Outlays, $144,900,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2000:
       (A) New budget authority, $154,100,000,000.
       (B) Outlays, $153,900,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2001:
       (A) New budget authority, $163,400,000,000.
       (B) Outlays, $163,100,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2002:
       (A) New budget authority, $172,200,000,000.
       (B) Outlays, $171,700,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       (12) Medicare (570):
       Fiscal year 1998:
       (A) New budget authority, $201,600,000,000.
       (B) Outlays, $201,800,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 1999:
       (A) New budget authority, $212,100,000,000.
       (B) Outlays, $211,500,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2000:
       (A) New budget authority, $225,500,000,000.
       (B) Outlays, $225,500,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2001:
       (A) New budget authority, $239,600,000,000.
       (B) Outlays, $238,800,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2002:
       (A) New budget authority, $251,500,000,000.
       (B) Outlays, $250,800,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       (13) Income Security (600):
       Fiscal year 1998:
       (A) New budget authority, $239,000,000,000.
       (B) Outlays, $247,800,000,000.
       (C) New direct loan obligations, $100,000,000.
       (D) New primary loan guarantee commitments, $100,000,000.
       Fiscal year 1999:
       (A) New budget authority, $254,100,000,000.
       (B) Outlays, $258,100,000,000.
       (C) New direct loan obligations, $100,000,000.
       (D) New primary loan guarantee commitments, $100,000,000.
       Fiscal year 2000:
       (A) New budget authority, $269,600,000,000.
       (B) Outlays, $268,200,000,000.
       (C) New direct loan obligations, $100,000,000.
       (D) New primary loan guarantee commitments, $100,000,000.
       Fiscal year 2001:
       (A) New budget authority, $275,100,000,000.
       (B) Outlays, $277,300,000,000.
       (C) New direct loan obligations, $100,000,000.
       (D) New primary loan guarantee commitments, $100,000,000.
       Fiscal year 2002:
       (A) New budget authority, $286,900,000,000.
       (B) Outlays, $285,200,000,000.
       (C) New direct loan obligations, $200,000,000.
       (D) New primary loan guarantee commitments, $100,000,000.
       (14) Social Security (650):
       Fiscal year 1998:
       (A) New budget authority, $11,400,000,000.
       (B) Outlays, $11,500,000,000.
       (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, $12,200,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2000:
       (A) New budget authority, $12,800,000,000.
       (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, $13,000,000,000.
       (B) Outlays, $13,000,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2002:
       (A) New budget authority, $14,400,000,000.
       (B) Outlays, $14,400,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       (15) Veterans Benefits and Services (700):
       Fiscal year 1998:
       (A) New budget authority, $40,500,000,000.
       (B) Outlays, $41,300,000,000.
       (C) New direct loan obligations, $1,000,000,000.
       (D) New primary loan guarantee commitments, 
     $27,100,000,000.
       Fiscal year 1999:
       (A) New budget authority, $41,500,000,000.
       (B) Outlays, $41,700,000,000.
       (C) New direct loan obligations, $1,100,000,000.
       (D) New primary loan guarantee commitments, 
     $26,700,000,000.
       Fiscal year 2000:
       (A) New budget authority, $41,700,000,000.
       (B) Outlays, $41,900,000,000.
       (C) New direct loan obligations, $1,200,000,000.
       (D) New primary loan guarantee commitments, 
     $26,200,000,000.
       Fiscal year 2001:
       (A) New budget authority, $42,100,000,000.
       (B) Outlays, $42,200,000,000.
       (C) New direct loan obligations, $1,200,000,000.
       (D) New primary loan guarantee commitments, 
     $25,600,000,000.
       Fiscal year 2002:
       (A) New budget authority, $42,300,000,000.
       (B) Outlays, $42,400,000,000.
       (C) New direct loan obligations, $1,300,000,000.
       (D) New primary loan guarantee commitments, 
     $25,100,000,000.
       (16) Administration of Justice (750):
       Fiscal year 1998:
       (A) New budget authority, $24,800,000,000.
       (B) Outlays, $22,600,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
     Fiscal year 1999:
       (A) New budget authority, $25,100,000,000.
       (B) Outlays, $24,500,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
     Fiscal year 2000:
       (A) New budget authority, $24,200,000,000.
       (B) Outlays, $25,200,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2001:
       (A) New budget authority, $24,400,000,000.
       (B) Outlays, $25,900,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2002:
       (A) New budget authority, $24,900,000,000.
       (B) Outlays, $24,900,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       (17) General Government (800):
       Fiscal year 1998:
       (A) New budget authority, $14,700,000,000.
       (B) Outlays, $14,000,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 1999:
       (A) New budget authority, $14,400,000,000.
       (B) Outlays, $14,400,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2000:
       (A) New budget authority, $14,000,000,000.
       (B) Outlays, $14,700,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2001:
       (A) New budget authority, $13,700,000,000.
       (B) Outlays, $14,100,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2002:
       (A) New budget authority, $13,100,000,000.
       (B) Outlays, $13,100,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       (18) Net Interest (900):
       Fiscal year 1998:
       (A) New budget authority, $296,500,000,000.
       (B) Outlays, $296,500,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 1999:
       (A) New budget authority, $304,600,000,000.
       (B) Outlays, $304,600,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2000:
       (A) New budget authority, $305,100,000,000.
       (B) Outlays, $305,100,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2001:
       (A) New budget authority, $303,800,000,000.
       (B) Outlays, $303,800,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2002:
       (A) New budget authority, $303,700,000,000.
       (B) Outlays, $303,700,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       (19) Allowances (920):
       Fiscal year 1998:
       (A) New budget authority, $0.
       (B) Outlays, $0.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 1999:
       (A) New budget authority, $0.
       (B) Outlays, $0.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2000:
       (A) New budget authority, $0.
       (B) Outlays, $0.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2001:
       (A) New budget authority, $0.
       (B) Outlays, $0.
       (C) New direct loan obligations, $0.

[[Page H3362]]

       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2002:
       (A) New budget authority, $0.
       (B) Outlays, $0.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       (20) Undistributed Offsetting Receipts (950):
       Fiscal year 1998:
       (A) New budget authority, -$41,800,000,000.
       (B) Outlays, -$41,800,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 1999:
       (A) New budget authority, -$36,900,000,000.
       (B) Outlays, -$36,900,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2000:
       (A) New budget authority, -$36,900,000,000.
       (B) Outlays, -$36,900,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2001:
       (A) New budget authority, -$39,200,000,000.
       (B) Outlays, -$39,200,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.
       Fiscal year 2002:
       (A) New budget authority, -$51,100,000,000.
       (B) Outlays, -$51,100,000,000.
       (C) New direct loan obligations, $0.
       (D) New primary loan guarantee commitments, $0.

     SEC. 104. RECONCILIATION IN THE SENATE.

       (a) Reconciliation of Spending Reductions.--Not later than 
     June 13, 1997, 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.
       (1) 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 increase outlays by not more than $300,000,000 in 
     fiscal year 2002 and by not more than $1,500,000,000 for 
     the period of fiscal years 1998 through 2002.
       (2) 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 reduce 
     the deficit $434,000,000 in fiscal year 2002 and 
     $1,590,000,000 for the period of fiscal years 1998 through 
     2002.
       (3) Committee on commerce, science, and transportation.--
     The Senate Committee on Commerce, Science, and Transportation 
     shall report changes in laws within its jurisdiction that 
     reduce the deficit $14,849,000,000 in fiscal year 2002 and 
     $26,496,000,000 for the period of fiscal years 1998 through 
     2002.
       (4) 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 (as defined in section 250(c)(8) of the Balanced 
     Budget and Emergency Deficit Control Act of 1985) to reduce 
     outlays $6,000,000 in fiscal year 2002 and $13,000,000 for 
     the period of fiscal years 1998 through 2002.
       (5) Committee on finance.--The Senate Committee on Finance 
     shall report changes in laws within its jurisdiction--
       (A) 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 $40,911,000,000 in 
     fiscal year 2002 and $100,646,000,000 for the period of 
     fiscal years 1998 through 2002; and
       (B) to increase the statutory limit on the public debt to 
     not more than $5,950,000,000,000.
       (6) Committee on governmental affairs.--The Senate 
     Committee on Governmental Affairs shall report changes in 
     laws within its jurisdiction that reduce the deficit 
     $1,769,000,000 in fiscal year 2002 and $5,467,000,000 for the 
     period of fiscal years 1998 through 2002.
       (7) 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 
     (as defined in section 250(c)(8) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985) to reduce outlays 
     $1,057,000,000 in fiscal year 2002 and $1,792,000,000 for the 
     period of fiscal years 1998 through 2002.
       (8) Committee on veterans' affairs.--The Senate Committee 
     on Veterans' Affairs 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 $681,000,000 
     in fiscal year 2002 and $2,733,000,000 for the period of 
     fiscal years 1998 through 2002.
       (b) Reconciliation of Revenue Reductions.--Not later than 
     June 20, 1997, the Senate Committee on Finance shall report 
     to the Senate a reconciliation bill proposing changes in laws 
     within its jurisdiction necessary to reduce revenues by not 
     more than $20,500,000,000 in fiscal year 2002 and 
     $85,000,000,000 for the period of fiscal years 1998 through 
     2002.
       (c) Treatment of Congressional Pay-As-You-Go.--For purposes 
     of section 202 of House Concurrent Resolution 67 (104th 
     Congress), legislation which reduces revenues pursuant to a 
     reconciliation instruction contained in subsection (b) shall 
     be taken together with all other legislation passed pursuant 
     to the reconciliation instructions contained in this 
     resolution when determining the deficit effect of such 
     legislation.
       (d) Children's Health Initiative.--
       (1) Deficit neutral adjustments.--After the reporting of 
     reconciliation legislation pursuant to subsection (a), or 
     after the submission of a conference report thereon, and if 
     the Committee on Finance reduces outlays by an amount greater 
     than the outlay reduction that is required by subsection 
     (a)(5)(A), the Chairman of the Committee on the Budget of the 
     Senate, with the concurrence and agreement of the ranking 
     minority member, may submit in writing appropriately revised 
     (A) reconciliation instructions to the Committee on Finance 
     to reduce the deficit, (B) allocations, (C) limits, and 
     (D) aggregates.
       (2) Flexibility on adjustments.--The adjustments made 
     pursuant to this subsection shall not exceed $2,300,000,000 
     in fiscal year 1998 and $16,000,000,000 for the period of 
     fiscal years 1998 through 2002 and shall not cause an 
     increase in the deficit levels in this resolution.

     SEC. 105. RECONCILIATION IN THE HOUSE OF REPRESENTATIVES.

       (a) Purpose.--The purpose of this section is to provide for 
     two separate reconciliation bills: the first for entitlement 
     reform and the second for tax relief.
       (b) Submissions.--
       (1) Entitlement reforms.--Not later than June 13, 1997, the 
     House committees named in subsection (c) 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.
       (2) Tax relief and miscellaneous reforms.--Not later than 
     June 14, 1997, the House committees named in subsection (d) 
     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.
       (c) Instructions Relating to Entitlement Reforms.--
       (1) Committee on agriculture.--The House Committee on 
     Agriculture shall report changes in laws within its 
     jurisdiction that provide direct spending such that the total 
     level of direct spending for that committee does not exceed: 
     $34,571,000,000 in outlays for fiscal year 1998, 
     $37,008,000,000 in outlays for fiscal year 2002, and 
     $179,884,000,000 in outlays in fiscal years 1998 through 
     2002.
       (2) Committee on banking and financial services.--The House 
     Committee on Banking and Financial Services shall report 
     changes in laws within its jurisdiction that provide direct 
     spending such that the total level of direct spending for 
     that committee does not exceed: -$8,435,000,000 in outlays 
     for fiscal year 1998, -$5,091,000,000 in outlays for fiscal 
     year 2002, and -$32,743,000,000 in outlays in fiscal years 
     1998 through 2002.
       (3) Committee on commerce.--The House Committee on Commerce 
     shall report changes in laws within its jurisdiction that 
     provide direct spending such that the total level of direct 
     spending for that committee does not exceed: $393,533,000,000 
     in outlays for fiscal year 1998, $507,150,000,000 in outlays 
     for fiscal year 2002, and $2,259,294,000,000 in outlays in 
     fiscal years 1998 through 2002.
       (4) Committee on education and the workforce.--The House 
     Committee on Education and the Workforce shall report changes 
     in laws within its jurisdiction that provide direct spending 
     such that the total level of direct spending for that 
     committee does not exceed: $17,222,000,000 in outlays for 
     fiscal  year 1998, $17,673,000,000 in outlays for fiscal year 
     2002, and $89,528,000,000 in outlays in fiscal years 1998 
     through 2002.
       (5) Committee on government reform and oversight.--(A) The 
     House Committee on Government Reform and Oversight shall 
     report changes in laws within its jurisdiction that provide 
     direct spending such that the total level of direct spending 
     for that committee does not exceed: $68,975,000,000 in 
     outlays for fiscal year 1998, $81,896,000,000 in outlays for 
     fiscal year 2002, and $375,722,000,000 in outlays in fiscal 
     years 1998 through 2002.
       (B) The House Committee on Government Reform and Oversight 
     shall report changes in laws within its jurisdiction that 
     would reduce the deficit by: $0 in fiscal year 1998, 
     $621,000,000 in fiscal year 2002, and $1,829,000,000 in 
     fiscal years 1998 through 2002.
       (6) Committee on transportation and infrastructure.--The 
     House Committee on Transportation and Infrastructure shall 
     report changes in laws within its jurisdiction that provide 
     direct spending such that the total level of direct spending 
     for that committee does not exceed: $18,087,000,000 in 
     outlays for fiscal year 1998, $17,283,000,000 in outlays for 
     fiscal year 2002, and $88,711,000,000 in outlays in fiscal 
     years 1998 through 2002.
       (7) Committee on veterans' affairs.--The House Committee on 
     Veterans' Affairs shall report changes in laws within its 
     jurisdiction that provide direct spending such that the total 
     level of direct spending for that committee does not exceed: 
     $22,444,000,000 in outlays for fiscal year 1998, 
     $24,563,000,000 in outlays for fiscal year 2002, and 
     $117,959,000,000 in outlays in fiscal years 1998 through 
     2002.
       (8) Committee on ways and means.--(A) The House Committee 
     on Ways and Means shall report changes in laws within its 
     jurisdiction such that the total level of direct spending for 
     that committee does not exceed: $397,581,000,000 in outlays 
     for fiscal year 1998, $506,522,000,000 in outlays for fiscal 
     year 2002, and $2,257,912,000,000 in outlays in fiscal years 
     1998 through 2002.

[[Page H3363]]

       (B) 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 is not less than: 
     $1,172,136,000,000 in revenues for fiscal year 1998, 
     $1,382,679,000,000 in revenues for fiscal year 2002, and 
     $6,358,388,000,000 in revenues in fiscal years 1998 through 
     2002.
       (C) The House Committee on Ways and Means shall report 
     changes in laws within its jurisdiction to increase the 
     statutory limit on the public debt to not more than 
     $5,950,000,000,000.
       (d) Instructions Relating to Tax Relief and Miscellaneous 
     Reforms.--
       (1) Committee on agriculture.--The House Committee on 
     Agriculture shall report changes in laws within its 
     jurisdiction that provide direct spending such that the total 
     level of direct spending for that committee does not exceed: 
     $34,571,000,000 in outlays for fiscal year 1998, 
     $37,008,000,000  in outlays for fiscal year 2002, and 
     $179,884,000,000 in outlays in fiscal years 1998 through 
     2002.
       (2) Committee on banking and financial services.--The House 
     Committee on Banking and Financial Services shall report 
     changes in laws within its jurisdiction that provide direct 
     spending such that the total level of direct spending for 
     that committee does not exceed: -$8,435,000,000 in outlays 
     for fiscal year 1998, -$5,091,000,000 in outlays for fiscal 
     year 2002, and -$32,743,000,000 in outlays in fiscal years 
     1998 through 2002.
       (3) Committee on commerce.--The House Committee on Commerce 
     shall report changes in laws within its jurisdiction that 
     provide direct spending such that the total level of direct 
     spending for that committee does not exceed: $393,533,000,000 
     in outlays for fiscal year 1998, $507,150,000,000 in outlays 
     for fiscal year 2002, and $2,259,294,000,000 in outlays in 
     fiscal years 1998 through 2002.
       (4) Committee on education and the workforce.--The House 
     Committee on Education and the Workforce shall report changes 
     in laws within its jurisdiction that provide direct spending 
     such that the total level of direct spending for that 
     committee does not exceed: $17,222,000,000 in outlays for 
     fiscal year 1998, $17,673,000,000 in outlays for fiscal year 
     2002, and $89,528,000,000 in outlays in fiscal years 1998 
     through 2002.
       (5) Committee on government reform and oversight.--(A) The 
     House Committee on Government Reform and Oversight shall 
     report changes in laws within its jurisdiction that provide 
     direct spending such that the total level of direct spending 
     for that committee does not exceed: $68,975,000,000 in 
     outlays for fiscal year 1998, $81,896,000,000 in outlays for 
     fiscal year 2002, and $375,722,000,000 in outlays in fiscal 
     years 1998 through 2002.
       (B) The House Committee on Government Reform and Oversight 
     shall report changes in laws within its jurisdiction that 
     would reduce the deficit by: $0 in fiscal year 1998, 
     $621,000,000 in fiscal year 2002, and $1,829,000,000 in 
     fiscal years 1998 through 2002.
       (6) Committee on transportation and infrastructure.--The 
     House Committee on Transportation and Infrastructure shall 
     report changes in laws within its jurisdiction that provide 
     direct spending such that the total level of direct spending 
     for that committee does not exceed: $18,087,000,000 in 
     outlays for fiscal year 1998, $17,283,000,000 in outlays for 
     fiscal year 2002, and $88,711,000,000 in outlays in fiscal 
     years 1998 through 2002.
       (7) Committee on veterans' affairs.--The House Committee on 
     Veterans' Affairs shall report changes in laws within its 
     jurisdiction that provide direct spending such that the total 
     level of direct spending for that committee does not exceed: 
     $22,444,000,000 in outlays for fiscal year 1998, 
     $24,563,000,000 in outlays for fiscal year 2002, and 
     $117,959,000,000 in outlays in fiscal years 1998 through 
     2002.
       (8) Committee on ways and means.--(A) The House Committee 
     on Ways and Means shall report changes in laws within  its 
     jurisdiction such that the total level of direct spending 
     for that committee does not exceed: $397,581,000,000 in 
     outlays for fiscal year 1998, $506,522,000,000 in outlays 
     for fiscal year 2002, and $2,257,912,000,000 in outlays in 
     fiscal years 1998 through 2002.
       (B) 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 is not less than: 
     $1,164,736,000,000 in revenues for fiscal year 1998, 
     $1,362,179,000,000 in revenues for fiscal year 2002, and 
     $6,273,388,000,000 in revenues in fiscal years 1998 through 
     2002.
       (C) The House Committee on Ways and Means shall report 
     changes in laws within its jurisdiction to increase the 
     statutory limit on the public debt to not more than 
     $5,950,000,000,000.
       (e) Definition.--For purposes of this section, 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.
       (f) Children's Health Initiative.--If the Committees on 
     Commerce and Ways and Means report recommendations pursuant 
     to their reconciliation instructions that, combined, provide 
     an initiative for children's health that would increase the 
     deficit by more than $2.3 billion for fiscal year 1998, by 
     more than $3.9 billion for fiscal year 2002, and by more than 
     $16 billion for the period of fiscal years 1998 through 2002, 
     the committees shall be deemed to not have complied with 
     their reconciliation instructions pursuant to section 310(d) 
     of the Congressional Budget Act of 1974.
             TITLE II--BUDGETARY RESTRAINTS AND RULEMAKING

     SEC. 201. DISCRETIONARY SPENDING LIMITS.

       (a) Discretionary Limits.--In the Senate, in this section 
     and for the purposes of allocations made for the 
     discretionary category pursuant to section 302(a) or 602(a) 
     of the Congressional Budget Act of 1974, the term 
     ``discretionary spending limit'' means--
       (1) with respect to fiscal year 1998--
       (A) for the defense category $269,000,000,000 in new budget 
     authority and $266,823,000,000 in outlays; and
       (B) for the nondefense category $257,857,000,000 in new 
     budget authority and $286,445,000,000 in outlays;
       (2) with respect to fiscal year 1999--
       (A) for the defense category $271,500,000,000 in new budget 
     authority and $266,518,000,000 in outlays; and
       (B) for the nondefense category $261,499,000,000 in new 
     budget authority and $292,803,000,000 in outlays;
       (3) with respect to fiscal year 2000, for the discretionary 
     category $537,193,000,000 in new budget authority and 
     $564,265,000,000 in outlays;
       (4) with respect to fiscal year 2001, for the discretionary 
     category $542,032,000,000 in new budget authority and 
     $564,396,000,000 in outlays; and
       (5) with respect to fiscal year 2002, for the discretionary 
     category $551,074,000,000 in new budget authority and 
     $560,799,000,000 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) a revision of this resolution or 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 or limits for such fiscal 
     year; or
       (B) any bill or resolution (or amendment, motion, or 
     conference report on such bill or resolution) for fiscal year 
     1998, 1999, 2000, 2001, or 2002 that would cause any of the 
     limits in this section (or suballocations of the 
     discretionary limits made pursuant to section 602(b) of the 
     Congressional Budget Act of 1974) to be exceeded.
       (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 in fiscal year 
     1998.--Until the enactment of reconciliation legislation 
     pursuant to subsections (a) and (b) of section 104 of this 
     resolution--
       (i) subparagraph (A) of paragraph (1) shall not apply; and
       (ii) subparagraph (B) of paragraph (1) shall apply only 
     with respect to fiscal year 1998.
       (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, revenues, and deficits for a fiscal 
     year shall be determined on the basis of estimates made by 
     the Committee on the Budget of the Senate.

     SEC. 202. ALLOWANCE FOR THE IMF.

       (a) Adjustments.--In the Senate, for fiscal year 1998, 
     1999, 2000, 2001, or 2002, and in the House of 
     Representatives, for fiscal year 1998 or 1999, after the 
     reporting of an appropriations measure (or after the 
     submission of a conference report thereon) that includes  an 
     appropriation with respect to paragraph (1) or (2), the 
     chairman of the Committee on the Budget shall increase the 
     appropriate allocations, budgetary aggregates, and, in the 
     Senate only, discretionary limits, by the amount of budget 
     authority in that measure that is the dollar equivalent, 
     in terms of Special Drawing Rights, of--
       (1) an increase in the United States quota as part of the 
     International Monetary Fund Eleventh General Review of Quotas 
     (United States Quota); or
       (2) any increase in the maximum amount available to the 
     Secretary of the Treasury pursuant to section 17 of the 
     Bretton Woods Agreement Act, as amended from time to time 
     (New Arrangements to Borrow).
       (b) Committee Suballocations.--The Committee on 
     Appropriations may report to its House appropriately revised 
     suballocations pursuant to sections 302(b)(1) and 602(b)(1) 
     of the Congressional Budget Act of 1974 following the 
     adjustments made pursuant to subsection (a).

     SEC. 203. ALLOWANCE FOR SECTION 8 HOUSING ASSISTANCE.

       (a) Adjustment for Discretionary Spending.--For fiscal year 
     1998, after the reporting of an appropriation measure (or 
     after the submission of a conference report thereon) that 
     includes an appropriation for the renewal of expiring 
     contracts for tenant- and project-based housing assistance 
     under section 8 of the United States Housing Act of 1937, the 
     chairman of the Committee on the Budget may increase the 
     appropriate allocations in this resolution by the amount 
     provided in that appropriation measure for that purpose, but 
     not to exceed $9,200,000,000 in budget authority and the 
     appropriate amount of outlays.
       (b) Committee Suballocations.--The Committee on 
     Appropriations may report to its

[[Page H3364]]

     House appropriately revised suballocations pursuant to 
     sections 302(b)(1) and 602(b)(1) of the Congressional Budget 
     Act of 1974 following the adjustments made pursuant to 
     subsection (a).

     SEC. 204. SEPARATE ENVIRONMENTAL ALLOCATION.

       (a) Committee Allocations.--After the Committee on Commerce 
     and the Committee on Transportation and Infrastructure report 
     a bill (or after the submission of a conference report 
     thereon) or in the Senate, after the Committee on Environment 
     and Public Works reports a bill (or after the submission of a 
     conference report thereon) to reform the Superfund program to 
     facilitate the cleanup of hazardous waste sites that does not 
     exceed--
       (1) $200,000,000 in budget authority for fiscal year 1998,
       (2) $200,000,000 in outlays for fiscal year 2002, and
       (3) $1,000,000,000 in budget authority for the period of 
     fiscal years 1998 through 2002,

     the chairman of the Committee on the Budget of that House may 
     increase the appropriate allocations of budget authority in 
     this resolution by the amounts provided in that bill for that 
     purpose and the outlays flowing in all years from such budget 
     authority.
       (b) Prior Surplus.--In the Senate, for the purposes of 
     section 202 of House Concurrent Resolution 67 (104th 
     Congress), legislation reported (or the submission of a 
     conference report thereon) pursuant  to subsection (a) shall 
     be taken together with all other legislation passed 
     pursuant to section 104 of this resolution.

     SEC. 205. PRIORITY FEDERAL LAND ACQUISITIONS AND EXCHANGES.

       (a) Adjustment for Discretionary Spending.--For fiscal year 
     1998, after the reporting of an appropriation measure (or 
     after the submission of a conference report thereon) that 
     provides $700 million in budget authority for fiscal year 
     1998 for Federal land acquisitions and to finalize priority 
     Federal land exchanges, the Chairman of the Committee on the 
     Budget of each House shall increase the appropriate 
     allocations by that amount of budget authority and the 
     outlays flowing from such budget authority to the Committee 
     on Appropriations of that House.
       (b) Committee Suballocations.--The Committee on 
     Appropriations may report to its House appropriately revised 
     suballocations pursuant to sections 302(b)(1) and 602(b)(1) 
     of the Congressional Budget Act of 1974 following the 
     adjustments made pursuant to subsection (a).

     SEC. 206. ALLOWANCE FOR ARREARAGES.

       (a) Adjustment for Discretionary Spending.--(1) In the 
     Senate, for the period of fiscal years 1998 through 2002, or 
     in the House of Representatives, for the period of fiscal 
     years 1998 and 1999, after the reporting of an appropriations 
     measure (or after the submission of a conference report 
     thereon) that includes an appropriation for arrearages for 
     international organizations, international peacekeeping, and 
     multilateral development banks during that fiscal year, the 
     Chairman of the Committee on the Budget shall increase the 
     appropriate allocations, aggregates, and, in the Senate only, 
     discretionary spending limits, in this resolution by an 
     amount provided for that purpose in that appropriation 
     measure.
       (2) In the Senate, the adjustments described in paragraph 
     (1) for the period of fiscal years 1998 through 2002 may not 
     exceed $1,884,000,000 in budget authority and the outlays 
     flowing in all years from such budget authority.
       (b) Committee Suballocations.--The Committee on 
     Appropriations shall report to its House appropriately 
     revised suballocations pursuant to sections 302(b)(1) and 
     602(b)(1) of the Congressional Budget Act of 1974 following 
     the adjustments made pursuant to subsection (a).

     SEC. 207. INTERCITY PASSENGER RAIL RESERVE FUND FOR FISCAL 
                   YEARS 1998-2002.

       (a) In General.--If legislation is enacted which generates 
     revenue increases or direct spending reductions to finance an 
     intercity passenger rail fund and to the extent that such 
     increases or reductions are not included in this concurrent 
     resolution on the budget, the appropriate budgetary levels 
     and limits may be adjusted if such adjustments do not cause 
     an increase in the deficit in this resolution. Necessary 
     authorizing reforms and additional funding contained in this 
     reserve fund for intercity passenger rail should both occur 
     in this Session, and if such funds are appropriated before 
     the enactment of such reforms, such appropriated funds shall 
     not be made available until the enactment of such reforms.
       (b) Establishing a Reserve.--
       (1) Adjustments to capture savings.--After the enactment of 
     legislation described in subsection (a), the Chairman of the 
     Committee on the Budget may submit revisions to the 
     appropriate allocations and aggregates by the amount that 
     provisions in such legislation generates revenue increases or 
     direct spending reductions.
       (2) Determination of maximum discretionary allowance.--Upon 
     the submission of such revisions, the Chairman of the 
     Committee on the Budget shall also submit the amount of 
     revenue increases or direct spending reductions such 
     legislation generates and the maximum amount available each 
     year for adjustments pursuant to subsection (c).
       (c) Adjustments for Discretionary Spending.--
       (1) Revisions to allocations and aggregates.--After 
     either--
       (A) the reporting of an appropriations measure, or after a 
     conference committee submits a conference report thereon, 
     that appropriates funds for the National Railroad Passenger 
     Corporation and funds from the intercity passenger rail fund; 
     or
       (B) the reporting of an appropriations measure, or after a 
     conference committee submits a conference report thereon, 
     that appropriates funds from the intercity passenger rail 
     fund (funds having previously been appropriated for the 
     National Railroad Passenger Corporation for that same fiscal 
     year), the Chairman of the Committee on the Budget may submit 
     increased budget authority allocations, aggregates, and, in 
     the Senate only, discretionary limits, for the amount 
     appropriated for authorized expenditures from the intercity 
     passenger rail fund and the outlays in all years flowing from 
     such budget authority.
       (2) Revisions to suballocations.--The Committee on 
     Appropriations may submit appropriately revised 
     suballocations pursuant to sections 302(b)(1) and 602(b)(1) 
     of the Congressional Budget Act of 1974.
       (d) Limitations.--
       (1) In general.--The revisions made pursuant to subsection 
     (b) shall not be made--
       (A) with respect to direct spending reductions, unless the 
     committee that generates the direct spending reductions is 
     within its allocations under sections 302(a) and 602(a) of 
     the Budget Act in this resolution (not including the direct 
     spending reductions envisioned in subsection (b)); and
       (B) with respect to revenue increases, unless revenues are 
     at or above the revenue aggregates in this resolution (not 
     including the revenue increases envisioned in subsection 
     (b)).
       (2) Budget authority.--The budget authority adjustments 
     made pursuant to subsection (c) shall not exceed the amounts 
     specified in subsection (b)(2) for a fiscal year.

     SEC. 207A. INTERCITY PASSENGER RAIL RESERVE FUND IN THE 
                   SENATE FOR FISCAL YEARS 1998-2002.

       (a) In General.--In the Senate, if legislation is enacted 
     which generates revenue increases or direct spending 
     reductions to finance an intercity passenger rail fund and to 
     the extent that such increases or reductions are not included 
     in this concurrent resolution on the budget, the appropriate 
     budgetary levels and limits may be adjusted if such 
     adjustments do not cause an increase in the deficit in this 
     resolution.
       (b) Establishing a Reserve.--
       (1) Adjustments to capture savings.--After the enactment of 
     legislation described in subsection (a), the Chairman of the 
     Committee on the Budget of the Senate may submit revisions to 
     the appropriate allocations and aggregates by the amount that 
     provisions in such legislation generates revenue increases or 
     direct spending reductions.
       (2) Determination of maximum discretionary allowance.--Upon 
     the submission of such revisions, the Chairman of the 
     Committee on the Budget of the Senate shall also submit the 
     amount of revenue increases or direct spending reductions 
     such legislation generates and the maximum amount available 
     each year for adjustments pursuant to subsection (c).
       (c) Adjustments for Discretionary Spending.--
       (1) Revisions to allocations and aggregates.--After 
     either--
       (A) the reporting of an appropriations measure, or after a 
     conference committee submits a conference report thereon, 
     that appropriates funds for the National Railroad Passenger 
     Corporation and funds from the intercity passenger rail fund; 
     or
       (B) the reporting of an appropriations measure, or after a 
     conference committee submits a conference report thereon, 
     that appropriates funds from the intercity passenger rail 
     fund (funds having previously been appropriated for the 
     National Railroad Passenger Corporation for that same fiscal 
     year),
     the Chairman of the Committee on the Budget of the Senate may 
     submit increased budget authority allocations, aggregates, 
     and discretionary limits, for the amount appropriated for 
     authorized expenditures from the intercity passenger rail 
     fund and the outlays in all years flowing from such budget 
     authority.
       (2) Revisions to suballocations.--The Committee on 
     Appropriations of the Senate may submit appropriately revised 
     suballocations pursuant to sections 302(b)(1) and 602(b)(1) 
     of the Congressional Budget Act of 1974.
       (d) Limitations.--
       (1) In general.--The revisions made pursuant to subsection 
     (b) shall not be made--
       (A) with respect to direct spending reductions, unless the 
     committee that generates the direct spending reductions is 
     within its allocations under sections 302(a) and 602(a) of 
     the Budget Act in this resolution (not including the direct 
     spending reductions envisioned in subsection (b)); and
       (B) with respect to revenue increases, unless revenues are 
     at or above the revenue aggregates in this resolution (not 
     including the revenue increases envisioned in subsection 
     (b)).
       (2) Budget authority.--The budget authority adjustments 
     made pursuant to subsection (c) shall not exceed the amounts 
     specified in subsection (b)(2) for a fiscal year.

     SEC. 208. MASS TRANSIT RESERVE FUND IN THE SENATE FOR FISCAL 
                   YEARS 1998-2002.

       (a) In General.--In the Senate, if legislation generates 
     revenue increases or direct spending reductions to finance 
     mass transit and to the extent that such increases or 
     reductions are not included in this concurrent resolution on 
     the budget, the appropriate budgetary levels and limits may 
     be adjusted if such adjustments do not cause an increase in 
     the deficit in this resolution.
       (b) Adjustment for Budget Authority.--After the reporting 
     of legislation (the offering of an amendment thereto or 
     conference report thereon) that reduces non-mass transit 
     direct spending or increases revenues for a fiscal year or 
     years, the Chairman of the Committee on the Budget of the 
     Senate may submit appropriately revised allocations and 
     aggregates by an amount that equals the amount such 
     legislation reduces direct spending or increases revenues for 
     a fiscal year or years.
       (c) Establishing a Reserve.--

[[Page H3365]]

       (1) Revisions.--After the enactment of legislation 
     described in subsection (a), the Chairman of the Committee on 
     the Budget of the Senate may submit revisions to the 
     appropriate allocations and aggregates by the amount that 
     provisions in such legislation generates revenue increases or 
     direct nonhighway spending reductions.
       (2) Revenue increases or direct spending reductions.--After 
     the submission of such revisions, the Chairman of the 
     Committee on the Budget of the Senate shall also submit the 
     amount of revenue increases or non-mass transit direct 
     spending reductions such legislation generates and the 
     maximum amount available each year for adjustments pursuant 
     to subsection (d).
       (d) Adjustments for Discretionary Spending.--
       (1) Revisions to allocations and aggregates.--After the 
     reporting of an appropriations measure, or after a conference 
     committee submits a conference report thereon, that makes 
     available funds for mass transit, the Chairman of the 
     Committee on the Budget of the Senate shall submit increased 
     outlay allocations, aggregates, and discretionary limits for 
     the amount of outlays flowing from the additional 
     obligational authority provided in such bill.
       (2) Revisions to suballocations.--The Committee on 
     Appropriations of the Senate may submit appropriately revised 
     suballocations pursuant to sections 302(b)(1) and 602(b)(1) 
     of the Congressional Budget Act of 1974.
       (e) Limitations.--
       (1) In general.--The revisions made pursuant to subsection 
     (c) shall not be made--
       (A) with respect to non-mass transit direct spending 
     reductions, unless the committee that generates the direct 
     spending reductions is within its allocations under sections 
     302(a) and 602(a) of the Budget Act in this resolution (not 
     including the non-mass transit direct spending reductions 
     envisioned in subsection (c)); and
       (B) with respect to revenue increases, unless revenues are 
     at or above the revenue aggregates in this resolution (not 
     including the revenue increases envisioned in subsection 
     (c)).
       (2) Outlays.--The outlay adjustments made pursuant to 
     subsection (d) shall not exceed the amounts specified in 
     subsection (c)(2) for a fiscal year.

     SEC. 209. HIGHWAY RESERVE FUND IN THE SENATE FOR FISCAL YEARS 
                   1998-2002.

       (a) In General.--In the Senate, if legislation generates 
     revenue increases or direct spending reductions to finance 
     highways and to the extent that such increases or reductions 
     are not included in this concurrent resolution on the budget, 
     the appropriate budgetary levels and limits may be adjusted 
     if such adjustments do not cause an increase in the deficit 
     in this resolution.
       (b) Adjustments for Budget Authority.--After the reporting 
     of legislation (the offering of an amendment thereto or 
     conference report thereon) that reduces nonhighway direct 
     spending or increases revenues for a fiscal year or years, 
     the Chairman of the Committee on the Budget of the Senate may 
     submit appropriately revised allocations and aggregates by an 
     amount that equals the amount such legislation reduces direct 
     spending or increases revenues for a fiscal year or years.
       (c) Establishing a Reserve.--
       (1) Revisions.--After the enactment of legislation 
     described in subsection (a), the Chairman of the Committee on 
     the Budget of the Senate may submit revisions to the 
     appropriate allocations and aggregates by the amount that 
     provisions in such legislation generates revenue increases or 
     non-highway direct spending reductions.
       (2) Revenue increases or direct spending reductions.--Upon 
     the submission of such revisions, the Chairman of the 
     Committee on the Budget of the Senate shall also submit the 
     amount of revenue increases or direct nonhighway spending 
     reductions such legislation generates and the maximum amount 
     available each year for adjustments pursuant to subsection 
     (d).
       (d) Adjustments for Discretionary Spending.--
       (1) Revisions to allocations and aggregates.--After the 
     reporting of an appropriations measure, or after a conference 
     committee submits a conference report thereon, that makes 
     available funds for highways, the Chairman of the Committee 
     on the Budget of the Senate shall submit increased outlay 
     allocations, aggregates, and discretionary limits for the 
     amount of outlays flowing from the additional obligational 
     authority provided in such measure.
       (2) Revisions to suballocations.--The Committee on 
     Appropriations of the Senate may submit appropriately 
     revised  suballocations pursuant to sections 302(b)(1) and 
     602(b)(1) of the Congressional Budget Act of 1974.
       (e) Limitations.--
       (1) In general.--The revisions made pursuant to subsection 
     (c) shall not be made--
       (A) with respect to nonhighway direct spending reductions, 
     unless the committee that generates the direct spending 
     reductions is within its allocations under section 302(a) and 
     602(a) of the Budget Act in this resolution (not including 
     the nonhighway direct spending reductions envisioned in 
     subsection (c)); and
       (B) with respect to revenue increases, unless revenues are 
     at or above the revenue aggregates in this resolution (not 
     including the revenue increases envisioned in subsection 
     (c)).
       (2) Outlays.--The outlay adjustments made pursuant to 
     subsection (d) shall not exceed the amounts specified in 
     subsection (c)(2) for a fiscal year.

     SEC. 210. DEFICIT-NEUTRAL RESERVE FUND IN THE HOUSE FOR 
                   SURFACE TRANSPORTATION.

       (a) Purpose.--In the House, the purpose of this section is 
     to adjust the appropriate budgetary levels to accommodate 
     legislation increasing spending from the highway trust fund 
     on surface transportation and highway safety above the levels 
     assumed in this resolution if such legislation is deficit 
     neutral.
       (b) Deficit Neutrality Requirement.--(1) In order to 
     receive the adjustments specified in subsection (c), a bill 
     reported by the Committee on Transportation and 
     Infrastructure of the House that provides new budget 
     authority above the levels assumed in this resolution for 
     programs authorized out of the highway trust fund must be 
     deficit neutral.
       (2) A deficit-neutral bill must meet the following 
     conditions:
       (A) The amount of new budget authority provided for 
     programs authorized out of the highway trust fund must be in 
     excess of $25.949 billion in new budget authority for fiscal 
     year 1998, $25.464 billion in new budget authority for fiscal 
     year 2002, and $127.973 billion in new budget authority for 
     the period of fiscal years 1998 through 2002.
       (B) The outlays estimated to flow from the excess new 
     budget authority set forth in subparagraph (A) must be offset 
     for fiscal year 1998, fiscal year 2002, and for the period of 
     fiscal years 1998 through 2002. For the sole purpose of 
     estimating the amount of outlays flowing from excess new 
     budget authority under this section, it shall be assumed that 
     such excess new budget authority would have an obligation 
     limitation sufficient to accommodate that new budget 
     authority.
       (C) The outlays estimated to flow from the excess new 
     budget authority must be offset by (i) other direct spending 
     or revenue provisions within that transportation bill, (ii) 
     the net reduction in other direct spending and revenue 
     legislation (for purposes of such offset) that is enacted 
     during this Congress after the date of adoption of this 
     resolution and before such transportation bill is reported 
     (in excess of the levels assumed in this  resolution), or 
     (iii) a combination of the offsets specified in clauses 
     (i) and (ii).
       (D) As used in this section, 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.
       (c) Revised Levels.--(1) After the Committee on 
     Transportation and Infrastructure of the House reports a bill 
     (or after the submission of a conference report thereon) 
     meeting the conditions set forth in subsection (b)(2), the 
     chairman of the Committee on the Budget of the House shall 
     increase the allocation of new budget authority to that 
     committee by the amount of new budget authority provided in 
     that bill (and that is above the levels set forth in 
     subsection (b)(2)(A)) for programs authorized out of the 
     highway trust fund.
       (2) After the enactment of the transportation bill 
     described in paragraph (1) and after the reporting of a 
     general, supplemental, or continuing resolution making 
     appropriations by the Committee on Appropriations of the 
     House (or after the submission of a conference report 
     thereon) establishing an obligation limitation above the 
     levels specified in subsection (b)(2)(A) (at a level 
     sufficient to obligate some or all of the budget authority 
     specified in paragraph (1)), the chairman of the Committee on 
     the Budget of the House shall increase the allocation and 
     aggregate levels of outlays to that committee for the 
     appropriate fiscal years.
       (d) Offsetting Adjustments.--Upon the enactment of 
     legislation providing offsets pursuant to subsection (c), the 
     chairman of the Committee on the Budget shall make offsetting 
     adjustments in the appropriate allocations and aggregates.
       (e) Definition.--As used in this section, the term 
     ``highway trust fund'' refers to the following budget 
     accounts (or any successor accounts):
       (1) 69-8083-0-7-401 (Federal-Aid Highways).
       (2) 69-8191-0-7-401 (Mass Transit Capital Fund).
       (3) 69-8350-0-7-401 (Mass Transit Formula Grants).
       (4) 69-8016-0-7-401 (National Highway Traffic Safety 
     Administration-Operations and Research).
       (5) 69-8020-0-7-401 (Highway Traffic Safety Grants).
       (6) 69-8048-0-7-401 (National Motor Carrier Safety 
     Program).

     SEC. 211. SALE OF GOVERNMENT ASSETS.

       (a) Limitation.--Subsections (b) through (d) of this 
     section shall not apply to the sale of any asset resulting 
     from the enactment of any reconciliation bill referred to in 
     section 104 or 105 of this resolution.
       (b) Budgetary Treatment.--
       (1) In general.--For the purpose of this concurrent 
     resolution on the budget and the Congressional Budget Act of 
     1974, no amounts realized from the sale of an asset shall be 
     scored with respect to the level of budget authority, 
     outlays, or revenues if such sale would cause an increase in 
     the deficit as calculated pursuant to paragraph (2).
       (2) Calculation of net present value.--The deficit estimate 
     of an asset sale shall be the net present value of the cash 
     flow from--
       (A) proceeds from the asset sale;
       (B) future receipts that would be expected from continued 
     ownership of the asset by the Government; and
       (C) expected future spending by the Government at a level 
     necessary to continue to operate and maintain the asset to 
     generate the receipts estimated pursuant to subparagraph (B).
       (c) Definition.--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.

[[Page H3366]]

       (e) Intent.--The asset sale rule may be revisited when the 
     Budget Enforcement Act of 1990 is extended.

     SEC. 212. DETERMINATIONS OF BUDGETARY LEVELS; REVERSALS.

       (a) Determinations.--For purposes of this title, budgetary 
     levels shall be determined on the basis of estimates made by 
     the Committee on the Budget.
       (b) Reversals and Adjustments.--(1) In the House of 
     Representatives, if any legislation referred to in this title 
     is not enacted into law, then the chairman of the Committee 
     on the Budget shall, as soon as practicable, reverse 
     adjustments made under this title for such legislation and 
     have such adjustments published in the Congressional Record.
       (2) In the Senate, the adjustments and revisions to 
     allocations, aggregates, and limits made by the Chairman of 
     the Committee on the Budget pursuant to this title for 
     legislation shall only apply while such legislation is under 
     consideration in the Senate and shall only permanently take 
     effect upon the enactment of such legislation.
       (c) Effect of Revisions.--Any revisions made by the 
     chairman of the Committee on the Budget under this title, and 
     in the Senate, under section 104(d), shall be considered for 
     purposes of the Congressional Budget Act of 1974 as the 
     allocations and aggregates, and in the Senate, the 
     discretionary spending limits, contained in this resolution, 
     and the chairman shall have such revisions published in the 
     Congressional Record.

     SEC. 213. 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 CONGRESS, HOUSE, AND SENATE PROVISIONS
                   Subtitle A--Sense of the Congress

     SEC. 301. SENSE OF THE CONGRESS ON REPAYMENT OF THE FEDERAL 
                   DEBT.

       (a) Findings.--The Congress finds the following:
       (1) The Congress and the President have a basic moral and 
     ethical responsibility to future generations to repay the 
     Federal debt, including the money borrowed from the Social 
     Security Trust Fund.
       (2) The Congress and the President should enact a law which 
     creates a regimen for paying off the Federal debt within 30 
     years.
       (3) If spending growth were held to a level one percentage 
     point lower than projected growth in revenues, then the 
     Federal debt could be repaid within 30 years.
       (b) Sense of the Congress Regarding President's Submission 
     to Congress.--It is the sense of the Congress that--
       (1) the President's annual budget submission to Congress 
     should include a plan for repayment of Federal debt beyond 
     the year 2002, including the money borrowed from the Social 
     Security Trust Fund; and
       (2) the plan should specifically explain how the President 
     working with Congress would cap spending growth at a level 
     one percentage point lower than projected growth in revenues.

     SEC. 302. SENSE OF THE CONGRESS ON TAX CUTS.

       It is the sense of the Congress that this resolution 
     assumes that--
       (1) a substantial majority of the tax cut benefits provided 
     in the tax reconciliation bill will go to middle class 
     working families earning less than approximately $100,000 per 
     year; and
       (2) the tax cuts in the tax reconciliation bill will not 
     cause revenue losses to increase significantly in years after 
     2007.

     SEC. 303. SENSE OF CONGRESS THAT THE 10-YEAR REVENUE LOSS 
                   FROM THE TAX RELIEF PACKAGE SHALL NOT EXCEED 
                   $250,000,000,000.

       (a) Findings.--Congress finds that--
       (1) a May 15, 1997 letter from the Speaker of the House of 
     Representatives and the Majority Leader of the Senate to the 
     President of the United States, representing the agreement on 
     the tax package in the Bipartisan Budget Agreements, states 
     that, ``It was agreed that the net tax cut shall be $85 
     billion through 2002 and not more than $250 billion through 
     2007.'';
       (2) a May 15, 1997 letter from the Speaker of the House of 
     Representatives and the Majority Leader of the Senate to the 
     Chief of Staff to the President, contained in the same 
     Bipartisan Budget Agreement and referring to the tax package, 
     states that ``The proposal shall not cause costs to explode 
     in the outyears.''; and
       (3) the text of the Bipartisan Budget Agreement issued on 
     May 15, 1997 states that ``If bills, resolutions or 
     conference reports are deemed to be inconsistent, remedial 
     efforts shall be made by all parties to assure consistency. 
     Such efforts shall include bipartisan Leadership consultation 
     and concurrence on amendments and scheduling as necessary.''.
       (b) Sense of Congress.--
       (1) 10-year cost.--The 10-year cost of the tax 
     reconciliation bill resulting from this resolution shall not 
     exceed $250,000,000,000 and any revenue loss shall be 
     certified by the Joint Committee on Taxation in consultation 
     and cooperation with the Office of Tax Analysis of the 
     Department of Treasury.
       (2) 5-year cost.--The 5-year cost of the tax reconciliation 
     bill resulting from this resolution shall be $85,000,000,000 
     and any revenue loss shall be certified by the Joint 
     Committee on Taxation in consultation and cooperation with 
     the Office of Tax Analysis of the Department of Treasury.
                     Subtitle B--Sense of the House

     SEC. 306. SENSE OF THE HOUSE ON COMMISSION ON LONG-TERM 
                   BUDGETARY PROBLEMS.

       (a) Findings.--The House finds that--
       (1) achieving a balanced budget by fiscal year 2002 is only 
     the first step necessary to restore our Nation's economic 
     prosperity;
       (2) the imminent retirement of the baby-boom generation 
     will greatly increase the demand for government services;
       (3) this burden will be borne by a relatively smaller work 
     force resulting in an unprecedented intergenerational 
     transfer of financial resources;
       (4) the rising demand for retirement and medical benefits 
     will quickly jeopardize the solvency of the medicare, social 
     security, and Federal retirement trust funds; and
       (5) the Congressional Budget Office has estimated that 
     marginal tax rates would have to increase by 50 percent over 
     the next 5 years to cover the long-term projected costs of 
     retirement and health benefits.
       (b) Sense of the House.--It is the sense of the House that 
     legislation should be enacted to create a commission to 
     assess long-term budgetary problems, their implications for 
     both the baby-boom generation and tomorrow's workforce, and 
     make such recommendations as it deems appropriate to ensure 
     our Nation's future prosperity.

     SEC. 307. SENSE OF THE HOUSE ON CORPORATE WELFARE.

       (a) Findings.--The House finds that the functional levels 
     and aggregates in this budget resolution assume that--
       (1) the Federal Government supports profit-making 
     enterprises and industries through billions of dollars in 
     payments, benefits, and programs;
       (2) many of these subsidies do not serve a clear and 
     compelling public interest;
       (3) corporate subsidies frequently provide unfair 
     competitive advantages to certain industries and industry 
     segments; and
       (4) at a time when millions of Americans are being asked to 
     sacrifice in order to balance the budget, the corporate 
     sector should bear its share of the burden.
       (b) Sense of the House.--It is the sense of the House that 
     legislation should be enacted to--
       (1) eliminate the most egregious corporate subsidies; and
       (2) create a commission to recommend the elimination of 
     Federal payments, benefits, and programs which predominantly 
     benefit a particular industry or segment of an industry, 
     rather than provide a clear and compelling public benefit, 
     and include a fast-track process for the consideration of 
     those recommendations.

     SEC. 308. SENSE OF THE HOUSE ON BASELINES.

       (a) Findings.--The House 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 mandated 
     under existing law;
       (3) baseline budgeting is inherently biased against 
     policies that would reduce the projected growth in spending 
     because such policies are portrayed as spending reductions 
     from an increasing baseline; and
       (4) the baseline concept has encouraged Congress to 
     abdicate its constitutional obligation to control the public 
     purse for those programs which are automatically funded.
       (b) Sense of House.--It is the sense of the House that 
     baseline budgeting should be replaced with a budgetary model 
     that requires justification of aggregate funding levels and 
     maximizes congressional and executive accountability for 
     Federal spending.

     SEC. 309. SENSE OF THE HOUSE ON FAMILY VIOLENCE OPTION 
                   CLARIFYING AMENDMENT.

       (a) Findings.--The House finds the following:
       (1) Domestic violence is the leading cause of physical 
     injury to women. The Department of Justice estimates that 
     over 1,000,000 violent crimes against women are committed by 
     intimate partners annually.
       (2) Domestic violence dramatically affects the victim's 
     ability to participate in the workforce. A University of 
     Minnesota survey reported that one quarter of battered women 
     surveyed had lost a job partly because of being abused and 
     that over half of these women had been harassed by their 
     abuser at work.
       (3) Domestic violence is often intensified as women seek to 
     gain economic independence through attending school or 
     training programs. Batterers have been reported to prevent 
     women from attending these programs or sabotage their efforts 
     at self-improvement.
       (4) Nationwide surveys of service providers prepared by the 
     Taylor Institute of Chicago, Illinois, document, for the 
     first time, the interrelationship between domestic violence 
     and welfare by showing that from 34 percent to 65 percent of 
     AFDC recipients are current or past victims of domestic 
     violence.
       (5) Over half of the women surveyed stayed with their 
     batterers because they lacked the resources to support 
     themselves and their children. The surveys also found that 
     the availability of economic support is a critical factor in 
     poor women's ability to leave abusive situations that 
     threaten them and their children.
       (6) The restructuring of the welfare programs may impact 
     the availability of the economic support and the safety net 
     necessary to enable poor women to flee abuse without risking 
     homelessness and starvation for their families.

[[Page H3367]]

       (7) In recognition of this finding, the House Committee on 
     the Budget unanimously passed a sense of Congress amendment 
     on domestic violence and Federal assistance to the fiscal 
     year 1997 budget resolution. Subsequently, Congress passed 
     the family violence option amendment to last year's welfare 
     reform reconciliation bill.
       (8) The family violence option gives States the flexibility 
     to grant temporary waivers from time limits and work 
     requirements for domestic violence victims who would suffer 
     extreme hardship from the application of these provisions. 
     These waivers were not intended to be included as part of the 
     permanent 20 percent hardship exemption.
       (9) The Department of Health and Human Services has been 
     slow to issue regulations regarding this provision. As a 
     result, States are hesitant to fully implement the family 
     violence option fearing it will interfere with the 20 percent 
     hardship exemption.
       (10) Currently 15 States have opted to include the family 
     violence option in their welfare plans, and 13 other States 
     have included some type of domestic violence provisions in 
     their plans.
       (b) Sense of the House.--It is the sense of the House 
     that--
       (1) States should not be subject to any numerical limits in 
     granting domestic violence good cause waivers to individuals 
     receiving assistance for all requirements where compliance 
     with such requirements would make it more difficult for 
     individuals receiving assistance to escape domestic violence; 
     and
       (2) any individuals granted a domestic violence good cause 
     waiver by States should not be included in the States' 20 
     percent hardship exemption.
                    Subtitle B--Sense of the Senate

     SEC. 311. SENSE OF THE SENATE ON LONG TERM ENTITLEMENT 
                   REFORMS, INCLUDING ACCURACY IN DETERMINING 
                   CHANGES IN THE COST OF LIVING.

       (a) Findings.--
       (1) Entitlement reforms.--The Senate finds that with 
     respect to long term entitlement reforms--
       (A) entitlement spending continues to grow dramatically as 
     a percent of total Federal spending, rising from fifty-six 
     percent of the budget in 1987 to an estimated seventy-
     three percent of the budget in 2007;
       (B) this growth in mandatory spending poses a long-term 
     threat to the United States economy because it crowds out 
     spending for investments in education, infrastructure, 
     defense, law enforcement and other programs that enhance 
     economic growth;
       (C) in 1994, the Bipartisan Commission on Entitlement and 
     Tax Reform concluded that if no changes are made to current 
     entitlement laws, all Federal revenues will be spent on 
     entitlement programs and interest on the debt by the year 
     2012;
       (D) the Congressional Budget Office has also recently 
     issued a report that found that pressure on the budget from 
     demographics and rising health care costs will increase 
     dramatically after 2002; and
       (E) making significant entitlement changes will 
     significantly benefit the economy, and will forestall the 
     need for more drastic tax and spending decisions in future 
     years.
       (2) CPI.--The Senate finds that with respect to accuracy in 
     determining changes in the cost of living--
       (A) the Final Report of the Senate Finance Committee's 
     Advisory Commission to study the CPI has concluded that the 
     Consumer Price Index overstates the cost of living in the 
     United States by 1.1 percentage points;
       (B) the overstatement of the cost of living by the Consumer 
     Price Index has been recognized by economists since at least 
     1961, when a report noting the existence of the overstatement 
     was issued by a National Bureau of Economic Research 
     Committee, chaired by Professor George J. Stigler;
       (C) Congress and the President, through the indexing of 
     Federal tax brackets, social security benefits, and other 
     Federal program benefits, have undertaken to protect 
     taxpayers and beneficiaries of such programs from the erosion 
     of purchasing power due to inflation; and
       (D) the overstatement of the cost of living increases the 
     deficit and undermines the equitable administration of 
     Federal benefits and tax policies.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that the provisions in this resolution assume that--
       (1) Congress and the President should continue working to 
     enact structural entitlement reforms in the 1997 budget 
     agreement and in subsequent legislation;
       (2) Congress and the President must find the most accurate 
     measure of the change in the cost of living in the United 
     States, and should work in a bipartisan manner to implement 
     any changes that are necessary to achieve an accurate 
     measure; and
       (3) Congress and the President must work to ensure that the 
     1997 budget agreement not only keeps the unified budget in 
     balance after 2002, but that additional measures should be 
     taken to begin to achieve substantial surpluses which will 
     improve the economy and allow our nation to be ready for the 
     retirement of the baby boom generation in the year 2012.

     SEC. 312. SENSE OF THE SENATE ON TACTICAL FIGHTER AIRCRAFT 
                   PROGRAMS.

       (a) Findings.--The Senate finds that--
       (1) the Department of Defense has proposed to modernize the 
     United States tactical fighter aircraft force through three 
     tactical fighter procurement programs, including the F/A-18 
     E/F aircraft program of the Navy, the F-22 aircraft program 
     of the Air Force, and the Joint Strike Fighter aircraft 
     program for the Navy, Air Force, and Marine Corps;
       (2) the General Accounting Office, the Congressional Budget 
     Office, the Chairman of the Joint Chiefs of Staff, the Under 
     Secretary of Defense for Acquisition and Technology, and 
     several Members of Congress have publicly stated that, given 
     the current Department of Defense budget for procurement, the 
     Department of Defense's original plan to buy over 4,400 F/A-
     18 E/F aircraft, F-22 aircraft, and Joint Strike Fighter 
     aircraft at a total program cost in excess of 
     $350,000,000,000 was not affordable;
       (3) the F/A-18 E/F, F-22, and the Joint Strike Fighter 
     tactical fighter programs will be competing for a limited 
     amount of procurement funding with numerous other aircraft 
     acquisition programs, including the Comanche helicopter 
     program, the V-22 Osprey aircraft program, and the C-17 
     aircraft program, as well as for the necessary replacement of 
     other aging aircraft such as the KC-135, the C-5A, the F-117, 
     and the EA-6B aircraft; and
       (4) the 1997 Department of Defense Quadrennial Defense 
     Review has recommended reducing the F/A-18 E/F program buy 
     from 1,000 aircraft to 548, and reducing the F-22 program buy 
     from 438 to 339.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that the provisions of this resolution assume that, within 30 
     days, the Department of Defense should transmit to Congress 
     detailed information pertaining to the implementation of this 
     revised acquisition strategy so that the Congress can 
     adequately evaluate the extent to which the revised 
     acquisition strategy is tenable and affordable given the 
     projected spending levels contained in this budget 
     resolution.

     SEC. 313. SENSE OF THE SENATE REGARDING CHILDREN'S HEALTH 
                   COVERAGE.

       (a) Findings.--The Senate finds that--
       (1) of the estimated 10 million uninsured children in the 
     United States, over 1.3 million have at least one parent who 
     is self-employed and all other uninsured children are 
     dependents of persons who are employed by another, or 
     unemployed;
       (2) these 1.3 million uninsured kids comprise approximately 
     22 percent of all children with self-employed parents, and 
     they are a significant 13 percent of all uninsured children;
       (3) the remaining uninsured children are in families where 
     neither parent is self-employed and comprise 13 percent of 
     all children in families where neither parent is self-
     employed;
       (4) children in families with a self-employed parent are 
     therefore more likely to be uninsured than children in 
     families where neither parent is self-employed; and
       (5) the current disparity in the tax law reduces the 
     affordability of health insurance for the self-employed and 
     their families, hindering the ability of children to receive 
     essential primary and preventive care services.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that the provisions of this resolution assume that from 
     resources available in this budget resolution, a portion 
     should be set aside for an immediate 100 percent 
     deductibility of health insurance costs for the self-
     employed. Full-deductibility of health expenses for the self-
     employed would make health insurance more attractive and 
     affordable, resulting in more dependents being covered. The 
     government should not encourage parents to forgo private 
     insurance for a government-run program.

     SEC. 314. SENSE OF THE SENATE ON A MEDICAID PER CAPITA CAP.

       It is the sense of the Senate that in order to meet deficit 
     reduction targets in this resolution with respect to 
     medicaid--
       (1) the per capita cap will not be used as a method for 
     meeting spending targets; and
       (2) the per capita cap could represent a significant 
     structural change that might jeopardize the quality of care 
     for children, the disabled, and senior citizens.

     SEC. 315. SENSE OF THE SENATE THAT ADDED SAVINGS GO TO 
                   DEFICIT REDUCTION.

       (a) Findings.--The Congress finds that--
       (1) balancing the budget will bring numerous economic 
     benefits for the United States economy and American workers 
     and families, including improved economic growth and lower 
     interest rates;
       (2) the fiscal year 1998 budget resolution crafted pursuant 
     to an agreement reached between the Congress and the 
     Administration purports to achieve balance in the year 2002;
       (3) the deficit estimates contained in this resolution may 
     not conform to the actual deficits in subsequent years, which 
     make it imperative that any additional savings are realized 
     be devoted to deficit reduction;
       (4) the Senate's ``pay-as-you-go'' point of order prohibits 
     crediting savings from updated economic or technical data as 
     an offset for legislation that increases the deficit, and 
     ensures these savings are devoted to deficit reduction; and
       (5) Congress and the Administration must ensure that the 
     deficit levels contained in this budget are met and, if 
     actual deficits prove to be lower than projected, the 
     additional savings are used to balance the budget on or 
     before the year 2002.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that the provisions of this resolution assume that--
       (1) legislation enacted pursuant to this resolution must 
     ensure that the goal of a balanced budget is achieved on or 
     before fiscal year 2002; and
       (2) if the actual deficit is lower than the projected 
     deficit in any upcoming fiscal year, the added savings should 
     be devoted to further deficit reduction.

     SEC. 316. SENSE OF THE SENATE ON FAIRNESS IN MEDICARE.

       (a) Findings.--The Congress finds that--
       (1) the Trustees of the Medicare Trust Funds recently 
     announced that medicare's Hospital Insurance (HI) Trust Fund 
     is headed for bankruptcy in 2001, and in 1997, HI will run a 
     deficit

[[Page H3368]]

     of $26,000,000,000 and add $56,000,000,000 annually to the 
     Federal deficit by 2001;
       (2) the Trustees also project that Supplementary Medical 
     Insurance (SMI), will grow twice as fast as the economy and 
     the taxpayers' subsidy to keep the SMI from bankruptcy will 
     grow from $58,000,000,000 to $89,000,000,000 annually from 
     1997 through 2001;
       (3) the Congressional Budget Office reports that when the 
     baby-boom generation begins to receive social security 
     benefits and is eligible for medicare in 2008, the Federal 
     budget will face intense pressure, resulting in mounting 
     deficits and erosion of future economic growth;
       (4) long-term solutions to address the financial and 
     demographic problems of medicare are urgently needed to 
     preserve and protect the medicare trust funds;
       (5) these solutions to address the financial and 
     demographic problems of medicare are urgently needed to 
     preserve and protect the medicare trust funds;
       (6) reform of the medicare program should ensure equity and 
     fairness for all medicare beneficiaries, and offer 
     beneficiaries more choice of private health plans, to promote 
     efficiency and enhance the quality of health care;
       (7) all Americans pay the same payroll tax of 2.9 percent 
     to the medicare trust funds, and they deserve the same 
     choices and services regardless of where they retire;
       (8) however, under the currently adjusted-average-per-
     capita cost (AAPCC), some counties receive 2.5 times more in 
     medicare reimbursements than others;
       (9) this inequity in medicare reimbursement jeopardizes the 
     quality of medicare services of rural beneficiaries and 
     penalizes the most efficient and effective medicare service 
     providers;
       (10) in some states, the result has been the absence of 
     health care choices beyond traditional, fee-for-service 
     medicine for medicare beneficiaries, which in other counties 
     and states plan providers may be significantly over-
     compensated, adding to medicare's fiscal instability; and
       (11) ending the practice of basing payments to risk 
     contract plans on local fee-for-service medical costs will 
     help correct these inequities, mitigate unnecessary cost in 
     the program, and begin the serious, long-term restructuring 
     of medicare.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that the provisions of this resolution assume that the 
     Finance Committee should strongly consider the following 
     elements for medicare reform--
       (1) any medicare reform package should include measures to 
     address the inequity in medicare reimbursement to risk 
     contract plans;
       (2) medicare should use a national update framework rather 
     than local fee-for-service spending increases to determine 
     the annual changes in risk plan payment rates;
       (3) an adequate minimum payment rate should be provided for 
     health plans participating in medicare risk contract 
     programs;
       (4) the geographic variation in medicare payment rates must 
     be reduced over time to raise the lower payment areas closer 
     to the average while taking into account actual differences 
     in input costs that exist from region to regional;
       (5) medicare managers in consultation with plan providers 
     and patient advocates should pursue competitive bidding 
     programs in communities where data indicate risk contract 
     payments are substantially excessive and when plan choices 
     would not diminish by such a bidding process; and
       (6) medicare should phase in the use of risk adjusters 
     which take account of health status so as to address 
     overpayment to some plans.

     SEC. 317. SENSE OF THE SENATE REGARDING ASSISTANCE TO 
                   LITHUANIA AND LATVIA.

       (a) Findings.--The Senate finds that--
       (1) Lithuania and Latvia reestablished democracy and free 
     market economies when they regained their freedom from the 
     Soviet Union;
       (2) Lithuania and Latvia, which have made significant 
     progress since regaining their freedom, are still struggling 
     to recover from the devastation of 50 years of communist 
     domination;
       (3) the United States, which never recognized the illegal 
     incorporation of Lithuania and Latvia into the Soviet Union, 
     has provided assistance to strengthen democratic institutions 
     and free market reforms in Lithuania and Latvia since 1991;
       (4) the people of the United States enjoy close and 
     friendly relations with the people of Lithuania and Latvia;
       (5) the success of democracy and free market reform in 
     Lithuania and Latvia is important to the security and 
     economic progress of the United States; and
       (6) the United States as well as Lithuania and Latvia would 
     benefit from the continuation of assistance which helps 
     Lithuania and Latvia to implement commercial and trade law 
     reform, sustain private sector development, and establish 
     well-trained judiciaries.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that the provisions of this resolution assume that--
       (1) adequate assistance should be provided to Lithuania and 
     Latvia in fiscal year 1998 to continue the progress they have 
     made; and
       (2) assistance to Lithuania and Latvia should be continued 
     beyond fiscal year 1998 as they continue to build democratic 
     and free market institutions.

     SEC. 318. SENSE OF THE SENATE REGARDING A NATIONAL COMMISSION 
                   ON HIGHER EDUCATION.

       It is the sense of the Senate that the provisions of this 
     resolution assure that a national commission should be 
     established to study and make specific recommendations 
     regarding the extent to which increases in student financial 
     aid, and the extent to which Federal, State, and local laws 
     and regulations, contribute to increases in college and 
     university tuition.

     SEC. 319. SENSE OF THE SENATE ON LOCKBOX.

       It is the Sense of the Senate that the provisions of this 
     resolution assume that to ensure all savings from medicare 
     reform are used to keep the medicare program solvent, the 
     Treasury Secretary should credit the Medicare Hospital 
     Insurance Trust Fund (Part A) with government securities 
     equal to any savings from Medicare Supplemental Medical 
     Insurance (Part B) reforms enacted pursuant to the 
     reconciliation instructions contained in this budget 
     resolution.

     SEC. 320. SENSE OF THE SENATE ON THE EARNED INCOME CREDIT.

       (a) Findings.--The Senate finds that--
       (1) an April 1997 study by the Internal Revenue Service of 
     Earned Income Credit (EIC) filers for tax year 1994 revealed 
     that over $4,000,000,000 of the $17,000,000,000 spent on the 
     EIC for that year was erroneously claimed and paid by the 
     IRS, resulting in a fraud and error rate of 25.8 percent;
       (2) the IRS study further concluded that EIC reforms 
     enacted by the One Hundred Fourth Congress will only lower 
     the fraud error rate to 20.7 percent, meaning over 
     $23,000,000,000 will be wasted over the next five years; and
       (3) the President's recent proposals to combat EIC fraud 
     and error contained within this budget resolution are 
     estimated to save $124,000,000 in scoreable savings over the 
     next five years and additional savings from deterrent 
     effects.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that the provisions of this resolution assume that the 
     President should propose and Congress should enact additional 
     programmatic changes sufficient to ensure that the primary 
     purpose of the EIC to encourage work over welfare is achieved 
     without wasting billions of taxpayer dollars on fraud and 
     error.

     SEC. 321. SENSE OF THE SENATE SUPPORTING LONG-TERM 
                   ENTITLEMENT REFORMS.

       (a) Findings.--The Senate finds that this resolution 
     assumes that--
       (1) entitlement spending has risen dramatically over the 
     last thirty-five years;
       (2) in 1963, mandatory spending (i.e., entitlement spending 
     and interest on the debt) made up 29.6 percent of the budget, 
     this figure rose to 61.4 percent by 1993 and is expected to 
     reach 70 percent shortly after the year 2000;
       (3) this mandatory spending is crowding out spending for 
     the traditional ``discretionary'' functions of Government 
     like clean air and water, a strong national defense, parks 
     and recreation, education, our transportation system, law 
     enforcement, research and development and other 
     infrastructure spending; and
       (4) taking significant steps sooner rather than later to 
     reform entitlement spending will not only boost economic 
     growth in this country, it will also prevent the need for 
     drastic tax and spending decisions in the next century.
       (b) Sense of the Senate.--It is the Sense of the Senate 
     that the levels in this budget resolution assume that 
     Congress and the President should work to enact structural 
     reforms in entitlement spending in 1997 and beyond which 
     sufficiently restrain the growth of mandatory spending in 
     order to keep the budget in balance over the long term, 
     extend the solvency of the Social Security and Medicare 
     Trust Funds, avoid crowding out funding for basic 
     Government functions and that every effort should be made 
     to hold mandatory spending to no more than 70 percent of 
     the budget.

     SEC. 322. SENSE OF THE SENATE ON DISASTER ASSISTANCE FUNDING.

       (a) Findings.--The Senate finds that--
       (1) emergency spending adds to the deficit and total 
     spending;
       (2) the Budget Enforcement Act of 1990 exempts emergency 
     spending from the discretionary spending caps and pay-go 
     requirements;
       (3) the Budget Enforcement Act of 1990 expires in 1998 and 
     needs to be extended;
       (4) since the enactment of the Budget Enforcement Act, 
     Congress and the President have approved an average of 
     $5,800,000,000 per year in emergency spending; and
       (5) a natural disaster in any particular State is 
     unpredictable, by the United States is likely to experience a 
     natural disaster almost every year.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that the functional totals underlying this concurrent 
     resolution on the budget assume that the Congress should 
     consider in the extension of the Budget Enforcement Act and 
     in appropriations Acts--
       (1) provisions that budget for emergencies or that require 
     emergency spending to be offset;
       (2) provisions that provide flexibility to meet emergency 
     funding requirements associated with natural disasters;
       (3) Congress and the President should consider 
     appropriating at least $5,000,000,000 every year to provide 
     for natural disaster relief; and
       (4) Congress and the President should not designate any 
     emergency spending for natural disaster relief until such 
     amounts provided in regular appropriations are exhausted.

     SEC. 323. SENSE OF THE SENATE ON ENFORCEMENT OF BIPARTISAN 
                   BUDGET AGREEMENT.

       (a) Findings.--The Senate finds that--
       (1) the bipartisan budget agreement is contingent upon--
       (A) favorable economic conditions for the next 5 years;
       (B) accurate estimates of the fiscal impacts of assumptions 
     in this resolution; and
       (C) enactment of legislation to reduce the deficit; and
       (2) if any of the conditions in paragraph (1) are not met, 
     our ability to achieve a balanced budget by 2002 will be 
     jeopardized.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that the functional totals and limits in this resolution 
     assume that--
       (1) reconciliation legislation should include legislation 
     to enforce the targets set forth in the

[[Page H3369]]

     bipartisan budget agreement and to ensure the balanced budget 
     goal is met; and
       (2) such legislation shall--
       (A) establish procedures to ensure the agreement is 
     enforced in every year;
       (B) require that the President's annual budget and annual 
     Congressional concurrent resolutions on the budget comply the 
     agreement in every year;
       (C) consider provisions which provide that if the deficit 
     is below or the surplus is above the deficits projected in 
     the agreement in any year, such savings are locked in for 
     deficit and debt reduction; and
       (D) consider provisions which budget for and control 
     emergency spending in order to prevent the use of emergencies 
     to evade the budget agreement.

     SEC. 324. SENSE OF THE SENATE REGARDING THE NATIONAL 
                   INSTITUTES OF HEALTH.

       (a) Findings.--Congress finds that--
       (1) heart disease was the leading cause of death for both 
     men and women in every year from 1970 to 1993;
       (2) mortality rates for individuals suffering from prostate 
     cancer, skin cancer, and kidney cancer continue to rise;
       (3) the mortality rate for African American women suffering 
     from diabetes is 134 percent higher than the mortality rate 
     of Caucasian women suffering from diabetes;
       (4) asthma rates for children increased 58 percent from 
     1982 to 1992;
       (5) nearly half of all American women between the ages of 
     65 and 75 reported having arthritis;
       (6) AIDS is the leading cause of death for Americans 
     between the ages of 24 and 44;
       (7) the Institute of Medicine has described United States 
     clinical research to be ``in a state of crisis'' and the 
     National Academy of Sciences concluded in 1994 that ``the 
     present cohort of clinical investigators is not adequate'';
       (8) biomedical research has been shown to be effective in 
     saving lives and reducing health care expenditures;
       (9) research sponsored by the National Institutes of Health 
     has contributed significantly to the first overall reduction 
     in cancer death rates since record keeping was instituted;
       (10) research sponsored by the National Institutes of 
     Health has resulted in the identification of genetic 
     mutations for osteoporosis; Lou Gehrig's Disease, cystic 
     fibrosis, and Huntington's Disease; breast, skin and prostate 
     cancer; and a variety of other illnesses;
       (11) research sponsored by the National Institutes of 
     Health has been key to the development of Magnetic Resonance 
     Imaging (MRI) and Positron Emission Tomography (PET) scanning 
     technologies;
       (12) research sponsored by the National Institutes of 
     Health has developed effective treatments for Acute 
     Lymphoblastic Leukemia (ALL). Today, 80 percent of children 
     diagnosed with Acute Lymphoblastic Leukemia are alive and 
     free of the disease after 5 years; and
       (13) research sponsored by the National Institutes of 
     Health contributed to the development of a new, cost-saving 
     cure for peptic ulcers.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that this Resolution assumes that--
       (1) appropriations for the National Institutes of Health 
     should be increased by 100 percent over the next 5 fiscal 
     years; and
       (2) appropriations for the National Institutes of Health 
     should be increased by $2,000,000,000 in fiscal year 1998 
     over the amount appropriated in fiscal year 1997.

     SEC. 325. SENSE OF THE SENATE REGARDING CERTAIN ELDERLY LEGAL 
                   ALIENS.

       It is the sense of the Senate that the provisions of this 
     resolution assume that--
       (1) the Committee on Finance will include in its 
     recommendations to the Committee on the Budget of the Senate 
     changes in laws within the jurisdiction of the Committee on 
     Finance that allow certain elderly, legal immigrants who will 
     cease to receive benefits under the supplemental security 
     income program as a result of the Personal Responsibility and 
     Work Opportunity Reconciliation Act of 1996 (Public Law 104-
     193; 110 Stat. 2105) to continue to receive benefits during a 
     redetermination or reapplication period to determine if such 
     aliens would qualify for such benefits on the basis of being 
     disabled; and
       (2) the Committee on Finance in developing these 
     recommendations should offset the additional cost of this 
     proposal out of other programs within the jurisdiction of the 
     Committee on Finance.

     SEC. 326. SENSE OF THE SENATE REGARDING RETROACTIVE TAXES.

       (a) Findings.--The Senate finds that--
       (1) in general, the practice of increasing a tax 
     retroactively is fundamentally unfair to taxpayers; and
       (2) retroactive taxation is disruptive to families and 
     small business in their ability to plan and budget.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that the levels in this budget resolution assume that--
       (1) except for closing tax loopholes, no revenues should be 
     generated from any retroactively increased tax; and
       (2) the Congress and the President should work together to 
     ensure that any revenue generating proposal contained within 
     reconciliation legislation pursuant to this concurrent 
     resolution proposal, except those proposals closing tax 
     loopholes, should take effect prospectively.

     SEC. 327. SENSE OF THE SENATE ON SOCIAL SECURITY AND 
                   BALANCING THE BUDGET.

       (a) Findings.--The Senate finds that--
       (1) this budget resolution is projected to balance the 
     unified budget of the United States in fiscal year 2002;
       (2) section 13301 of the Budget Enforcement Act of 1990 
     requires that the deficit be computed without counting the 
     annual surpluses of the Social Security Trust Funds; and
       (3) if the deficit were calculated according to the 
     requirements of section 13301, this budget resolution would 
     be projected to result in a deficit of $108,700,000,000 in 
     fiscal year 2002.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that the assumptions underlying this budget resolution assume 
     that after balancing the unified Federal budget, the Congress 
     should continue efforts to reduce the on-budget deficit, so 
     that the Federal budget will be balanced without counting 
     social security surpluses.

     SEC. 328. SENSE OF THE SENATE SUPPORTING SUFFICIENT FUNDING 
                   FOR VETERANS PROGRAMS AND BENEFITS.

       (a) Findings.--The Senate finds that--
       (1) veterans and their families represent approximately 27 
     percent of the United States population;
       (2) more than 20 million of our 26 million living veterans 
     served during wartime, sacrificing their freedom so that we 
     may have ours; and
       (3) veterans have earned the benefits promised to them.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that--
       (1) the assumptions underlying this Budget Resolution 
     assume that the 602(b) allocation to the Department of 
     Veterans Affairs will be sufficient in fiscal year 1998 to 
     fully fund all discretionary veterans programs, including 
     medical care; and
       (2) funds collected from legislation to improve the 
     Department of Veterans Affairs' ability to collect and retain 
     reimbursement from third-party payers ought to be used to 
     supplement, not supplant, an adequate appropriation for 
     medical care.

     SEC. 329. SENSE OF THE SENATE ON FAMILY VIOLENCE OPTION 
                   CLARIFYING AMENDMENT.

       (a) Findings.--The Senate finds the following:
       (1) Domestic violence is the leading cause of physical 
     injury to women. The Department of Justice estimates that 
     over 1,000,000 violent crimes against women are committed by 
     intimate partners annually.
       (2) Domestic violence dramatically affects the victim's 
     ability to participate in the workforce. A University of 
     Minnesota survey reported that \1/4\ of battered women 
     surveyed had lost a job partly because of being abused and 
     that over \1/2\ of these women had been harassed by their 
     abuser at work.
       (3) Domestic violence is often intensified as women seek to 
     gain economic independence through attending school or 
     training programs. Batterers have been reported to prevent 
     women from attending these programs or sabotage their efforts 
     at self-improvement.
       (4) Nationwide surveys of service providers prepared by the 
     Taylor Institute of Chicago, Illinois, document, for the 
     first time, the interrelationship between domestic violence 
     and welfare by showing that from 34 percent to 65 percent of 
     AFDC recipients are current or past victims of domestic 
     violence.
       (5) Over \1/2\ of the women surveyed stayed with their 
     batterers because they lacked the resources to support 
     themselves and their children. The surveys also found that 
     the availability of economic support is a critical factor in 
     poor women's ability to leave abusive situations that 
     threaten them and their children.
       (6) The restructuring of the welfare programs may impact 
     the availability of the economic support and the safety net 
     necessary to enable poor women to flee abuse without risking 
     homelessness and starvation for their families.
       (7) In recognition of this finding, the Committee on the 
     Budget of the Senate in considering the 1997 Resolution on 
     the budget of the United States unanimously adopted a sense 
     of the Congress amendment concerning domestic violence and 
     Federal assistance. Subsequently, Congress adopted the family 
     violence option amendment as part of the Personal 
     Responsibility and Work Opportunity Reconciliation Act of 
     1996.
       (8) The family violence option gives States the flexibility 
     to grant temporary waivers from time limits and work 
     requirements for domestic violence victims who would suffer 
     extreme hardship from the application of these provisions. 
     These waivers were not intended to be included as part of the 
     permanent 20 percent hardship exemption.
       (9) The Department of Health and Human Services has been 
     slow to issue regulations regarding this provision. As a 
     result, States are hesitant to fully implement the family 
     violence option fearing that it will interfere with the 20 
     percent hardship exemption.
       (10) Currently 15 States have opted to include the family 
     violence option in their welfare plans, and 13 other States 
     have included some type of domestic violence provisions in 
     their plans.
       (b) Sense of Senate.--It is the sense of the Senate that 
     the provisions of this resolution assume that--
       (1) States should not be subject to any numerical limits in 
     granting domestic violence good cause waivers under section 
     402(a)(7)(A)(iii) of the Social Security Act (42 U.S.C. 
     602(a)(7)(A)(iii)) to individuals receiving assistance, for 
     all requirements where compliance with such requirements 
     would make it more difficult for individuals receiving 
     assistance to escape domestic violence; and
       (2) any individual who is granted a domestic violence good 
     cause waiver by a State shall not be included in the States' 
     20 percent hardship exemption under section 408(a)(7) of the 
     Social Security Act (42 U.S.C. 608(a)(7)).

     SEC. 330. SENSE OF THE SENATE REGARDING ASSISTANCE TO AMTRAK.

       (a) Findings.--The Senate finds that--
       (1) Amtrak is in a financial crisis, with growing and 
     substantial debt obligations approaching $2,000,000,000;
       (2) Amtrak has not been authorized since 1994;
       (3) the Senate Committee on Commerce, Science, and 
     Transportation favorably reported

[[Page H3370]]

     legislation to reform Amtrak during the last two Congresses, 
     but no legislation was enacted;
       (4) the Finance Committee favorably reported legislation in 
     the last Congress that created a dedicated trust fund for 
     Amtrak, but no legislation was enacted;
       (5) in 1997 Amtrak testified before the Congress that it 
     cannot survive beyond 1998 without comprehensive legislative 
     reforms and a dedicated source of capital funding; and
       (6) Congress is obligated to invest Federal tax dollars 
     responsibly and to reduce waste and inefficiency in Federal 
     programs, including Amtrak.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that the provisions of this resolution assume that--
       (1) legislative reform is urgently needed to address 
     Amtrak's financial and operational problems;
       (2) Congress should allocate additional Federal dollars to 
     Amtrak in conjunction with reforms requested by Amtrak to 
     address its precarious financial situation; and
       (3) the distribution of money from any new fund to finance 
     an intercity rail passenger fund should be implemented in 
     conjunction with legislation to reauthorize and reform the 
     National Rail Passenger Corporation.

     SEC. 331. SENSE OF THE SENATE REGARDING THE PROTECTION OF 
                   CHILDREN'S HEALTH.

       (a) Findings.--The Senate makes the following findings:
       (1) Today's children and the next generation of children 
     are the prime beneficiaries of a balanced Federal budget. 
     Without a balanced budget, today's children will bear the 
     increasing burden of the Federal debt. Continued deficit 
     spending would doom future generations to slower economic 
     growth, higher taxes, and lower living standards.
       (2) The health of children is essential to the future 
     economic and social well-being of the Nation.
       (3) The medicaid program provides health coverage for over 
     17,000,000 children, or 1 out of every 4 children.
       (4) While children represent \1/2\ of all individuals 
     eligible for medicaid, children account for less than 25 
     percent of expenditures under the medicaid program.
       (5) Disproportionate share hospital (DSH) funding under the 
     medicaid program has allowed States to provide health care 
     services to thousands of uninsured pregnant women and 
     children. DSH funding under the medicaid program is critical 
     for these populations.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that the provisions of this resolution assume that the health 
     care needs of low-income pregnant women and children should 
     be a top priority. Careful study must be made of the impact 
     of medicaid disproportionate share hospital (DSH) reform 
     proposals on children's health and on vital sources of care, 
     including children's hospitals. Any restrictions on DSH 
     funding under the medicaid program should not harm State 
     medicaid coverage of children and pregnant women.

     SEC. 332. SENSE OF THE SENATE ON DEPOSITING ALL FEDERAL 
                   GASOLINE TAXES INTO THE HIGHWAY TRUST FUND.

       (a) Findings.--The Senate makes the following findings:
       (1) Since 1956, Federal gasoline excise tax revenues have 
     generally been deposited in the Highway Trust Fund and 
     reserved for transportation uses.
       (2) In 1993, Congress and the President enacted the first 
     permanent increase in the Federal gasoline excise tax which 
     was dedicated to general revenues, not the Highway Trust 
     Fund.
       (3) Over the next five years, approximately $7,000,000,000 
     per year in Federal gasoline excise tax revenues will be 
     deposited in the general fund of the Treasury, rather than 
     the Highway Trust Fund.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that the provisions in this resolution assume that Congress 
     should in the extension of the Budget Enforcement Act, ISTEA 
     reauthorization, appropriations Acts, and in any revenue 
     bills, consider dedicating all revenues from Federal gasoline 
     excise taxes, including amounts dedicated to general revenues 
     in 1993, to the Highway Trust Fund so that such taxes may be 
     used for the purpose to which they have historically been 
     dedicated, promoting transportation infrastructure and 
     building roads.

     SEC. 333. SENSE OF THE SENATE ON EARLY CHILDHOOD EDUCATION.

       (a) Findings.--The Senate finds the following:
       (1) Scientific research on the development of the brain has 
     confirmed that the early childhood years, particularly from 
     birth to the age of 3, are critical to children's 
     development.
       (2) Studies repeatedly have shown that good quality child 
     care helps children develop well, enter school ready to 
     succeed, improve their skills, cognitive abilities and 
     socioemotional development, improve classroom learning 
     behavior, and stay safe while their parents work. Further, 
     quality early childhood programs can positively affect 
     children's long-term success in school achievement, higher 
     earnings as adults, decrease reliance on public assistance 
     and decrease involvement with the criminal justice system.
       (3) The first of the National Education Goals, endorsed by 
     the Nation's governors, passed by Congress and signed into 
     law by President Bush, stated that by the year 2000, every 
     child should enter school ready to learn and that access to a 
     high quality early childhood education program was integral 
     to meeting this goal.
       (4) According to data compiled by the RAND Corporation, 
     while 90 percent of human brain growth occurs by the age of 
     3, public spending on children in that age range equals only 
     8 percent of spending on all children. A vast majority of 
     public spending on children occurs after the brain has gone 
     through its most dramatic changes, often to correct problems 
     that should have been addressed during early childhood 
     development.
       (5) According to the Department of Education, of 
     $29,400,000,000 in current estimated education expenditures, 
     only $1,500,000,000, or 5 percent, is spent on children from 
     birth to age 5. The vast majority is spent on children over 
     age 5.
       (6) A new commitment to quality child care and early 
     childhood education is a necessary response to the fact that 
     children from birth to the age of 3 are spending more time in 
     care away from their homes. Almost 60 percent of women in the 
     workforce have children under the age of 3 requiring care.
       (7) Many States and communities are currently experimenting 
     with innovative programs directed at early childhood care and 
     education in a variety of care settings, including the home. 
     States and local communities are best able to deliver 
     efficient, cost-effective services, but while such programs 
     are long on demand, they are short on resources. 
     Additional Federal resources should not create new 
     bureaucracy, but build on successful locally driven 
     efforts.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that the budget totals and levels in this resolution assume 
     that funds ought to be directed toward increasing the supply 
     of quality child care, early childhood education, and teacher 
     and parent training for children from birth through age 3.

     SEC. 334. SENSE OF THE SENATE CONCERNING HIGHWAY TRUST FUND.

       (a) Findings.--The Senate finds that--
       (1) there is no direct linkage between the fuel taxes 
     deposited in the Highway Trust Fund and the transportation 
     spending from the Highway Trust Fund;
       (2) the Federal budget process has severed this linkage by 
     dividing revenues and spending into separate budget 
     categories with--
       (A) fuel taxes deposited in the Highway Trust Fund as 
     revenues; and
       (B) most spending from the Highway Trust Fund in the 
     discretionary category;
       (3) each budget category referred to in paragraph (2) has 
     its own rules and procedures; and
       (4) under budget rules in effect prior to the date of 
     adoption of this resolution, an increase in fuel taxes 
     permits increased spending to be included in the budget, but 
     not for increased Highway Trust Fund spending.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that--
       (1) in this session of Congress, Congress should, within a 
     unified budget, consider changing the Federal budget process 
     to establish a linkage between the fuel taxes deposited in 
     the Highway Trust Fund, including any fuel tax increases that 
     may be enacted into law after the date of adoption of this 
     resolution, and the spending from the Highway Trust Fund; and
       (2) changes to the budgetary treatment of the Highway Trust 
     Fund should not result in total program levels for highways 
     or mass transit that is inconsistent with those assumed under 
     the resolution.

     SEC. 335. SENSE OF THE SENATE CONCERNING TAX INCENTIVES FOR 
                   THE COST OF POST-SECONDARY EDUCATION.

       It is the sense of the Senate that the provisions of this 
     resolution assume that any revenue reconciliation bill should 
     include tax incentives for the cost of post-secondary 
     education, including expenses of workforce education and 
     training at vocational schools and community colleges.

     SEC. 336. SENSE OF THE SENATE ON ADDITIONAL TAX CUTS.

       It is the sense of the Senate that nothing in this 
     resolution shall be construed as prohibiting Congress in 
     future years from providing additional tax relief if the cost 
     of such tax relief is offset by reductions in spending or 
     increases in revenue from alternative sources.

     SEC. 337. SENSE OF THE SENATE REGARDING TRUTH IN BUDGETING 
                   AND SPECTRUM AUCTIONS.

       (a) Findings.--The Senate finds that--
       (1) the electromagnetic spectrum is the property of the 
     American people and is managed on their behalf by the Federal 
     Government;
       (2) the spectrum is a highly valuable and limited natural 
     resource;
       (3) the auctioning of spectrum has raised billions of 
     dollars for the Treasury;
       (4) the estimates made regarding the value of spectrum in 
     the past have proven unreliable, having previously 
     understated and now overstating its worth; and
       (5) because estimates of spectrum value depend on a number 
     of technological, economic, market forces, and other 
     variables that cannot be predicted or completely controlled, 
     it is not possible to reliably estimate the value of a given 
     segment of spectrum; therefore,
       (b) Sense of the Senate.--It is the sense of the Senate 
     that as auctions occur as assumed by this resolution, the 
     Congress shall take such steps as necessary to reconcile the 
     difference between actual revenues raised and estimates made 
     and shall reduce spending and make other appropriate 
     adjustments accordingly if such auctions raise less revenue 
     than projected.

     SEC. 338. SENSE OF THE SENATE ON HIGHWAY DEMONSTRATION 
                   PROJECTS.

       (a) Findings.--The Senate finds that--
       (1) 10 demonstration projects totaling $362,000,000 were 
     listed for special line-item funding in the Surface 
     Transportation Assistance Act of 1982;
       (2) 152 demonstration projects totaling $1,400,000,000 were 
     named in the Surface Transportation and Uniform Relocation 
     Assistance Act of 1987;
       (3) 64 percent of the funding for the 152 projects had not 
     been obligated after 5 years and State transportation 
     officials determined

[[Page H3371]]

     the projects added little, if any, to meeting their 
     transportation infrastructure priorities;
       (4) 538 location specific projects totaling $6,230,000,000 
     were included in the Intermodal Surface Transportation 
     Efficiency Act of 1991;
       (5) more than $3,300,000,000 of the funds authorized for 
     the 538 location-specific projects remained unobligated as of 
     January 31, 1997;
       (6) the General Accounting Office determined that 31 States 
     plus the District of Columbia and Puerto Rico would have 
     received more funding if the Intermodal Surface 
     Transportation Efficiency Act location-specific project funds 
     were redistributed as Federal-aid highway program 
     apportionments;
       (7) this type of project funding diverts Highway Trust Fund 
     money away from State transportation priorities established 
     under the formula allocation process and under the Intermodal 
     Surface Transportation and Efficiency Act of 1991;
       (8) on June 20, 1995, by a vote of 75 yeas to 21 nays, the 
     Senate voted to prohibit the use of Federal Highway Trust 
     Fund money for future demonstration projects;
       (9) the Intermodal Surface Transportation and Efficiency 
     Act of 1991 expires at the end of fiscal year 1997; and
       (10) hundreds of funding requests for specific 
     transportation projects in Congressional Districts have been 
     submitted in the House of Representatives.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that--
       (1) notwithstanding different views on existing Highway 
     Trust Fund distribution formulas, funding for demonstration 
     projects or other similarly titled projects diverts Highway 
     Trust Fund money away from State priorities and deprives 
     States of the ability to adequately address their 
     transportation needs;
       (2) States are best able to determine the priorities for 
     allocating Federal-Aid-To-Highway monies within their 
     jurisdiction;
       (3) Congress should not divert limited Highway Trust Fund 
     resources away from State transportation priorities by 
     authorizing new highway projects; and
       (4) Congress should not authorize any new demonstration 
     projects or other similarly-titled projects.

     SEC. 339. SENSE OF THE SENATE REGARDING THE USE OF BUDGET 
                   SAVINGS.

       (a) Findings.--The Senate makes the following findings:
       (1) Poverty rates among the elderly are at the lowest level 
     since our Nation began to keep poverty statistics, due in 
     large part to the social security system and the medicare 
     program.
       (2) Twenty-two percent of every dollar spent by the Federal 
     Government goes to the social security system.
       (3) Eleven percent of every dollar spent by the Federal 
     Government goes to the medicare program.
       (4) Currently, spending on the elderly accounts for \1/3\ 
     of the Federal budget and more than \1/2\ of all domestic 
     spending other than interest on the national debt.
       (5) Future generations of Americans must be guaranteed the 
     same value from the social security system as past covered 
     recipients.
       (6) According to the 1997 report of the Managing Trustee 
     for the social security trust funds, the accumulated balance 
     in the Federal Old-Age and Survivors Insurance Trust Fund is 
     estimated to fall to zero by 2029, and the estimated payroll 
     tax at that time will be sufficient to cover only 75 percent 
     of the benefits owed to retirees at that time.
       (7) The accumulated balance in the Federal Hospital 
     Insurance Trust Fund is estimated to fall to zero by 2001.
       (8) While the Federal budget deficit has shrunk for the 
     fourth straight year to $67,000,000,000 in 1997, measures 
     need to be taken to ensure that trend continues.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that the provisions of this resolution assume that budget 
     savings in the mandatory spending area should be used--
       (1) to protect and enhance the retirement security of the 
     American people by ensuring the long-term future of the 
     social security system;
       (2) to protect and enhance the health care security of 
     senior citizens by ensuring the long-term future of the 
     medicare program under title XVIII of the Social Security Act 
     (42 U.S.C. 1395 et seq.); and
       (3) to restore and maintain Federal budget discipline to 
     ensure that the level of private investment necessary for 
     long-term economic growth and prosperity is available.

     SEC. 340. SENSE OF THE SENATE REGARDING THE VALUE OF THE 
                   SOCIAL SECURITY SYSTEM FOR FUTURE RETIREES.

       (a) Findings.--The Senate makes the following findings:
       (1) The social security system has allowed a generation of 
     Americans to retire with dignity. Today, 13 percent of the 
     population is 65 or older and by 2030, 20 percent of the 
     population will be 65 or older. More than \1/2\ of the 
     elderly do not receive private pensions and more than \1/3\ 
     have no income from assets.
       (2) For 60 percent of all senior citizens, social security 
     benefits provide almost 80 percent of their retirement 
     income. For 80 percent of all senior citizens, social 
     security benefits provide over 50 percent of their retirement 
     income.
       (3) Poverty rates among the elderly are at the lowest level 
     since the United States began to keep poverty statistics, due 
     in large part to the social security system.
       (4) Seventy-eight percent of Americans pay more in payroll 
     taxes than they do in income taxes.
       (5) According to the 1997 report of the Managing Trustee 
     for the social security trust funds, the accumulated balance 
     in the Federal Old-Age and Survivors Insurance Trust Fund is 
     estimated to fall to zero by 2029, and the estimated payroll 
     tax at that time will be sufficient to cover only 75 percent 
     of the benefits owed to retirees at that time.
       (6) The average American retiring in the year 2015 will pay 
     $250,000 in payroll taxes over the course of his or her 
     working career.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that the provisions of this resolution assume that no change 
     in the social security system should be made that would 
     reduce the value of the social security system for future 
     generations of retirees.

     SEC. 341. SENSE OF THE SENATE ON ECONOMIC GROWTH DIVIDEND 
                   PROTECTION.

       (a) Findings.--The Senate finds that with respect to the 
     revenue levels established under this resolution--
       (1) according to the President's own economists, the tax 
     burden on Americans is the highest ever at 31.7 percent;
       (2) according to the National Taxpayers Union, the average 
     American family now pays almost 40 percent of their income in 
     State, local, and Federal taxes;
       (3) between 1978 and 1985, while the top marginal rate on 
     capital gains was cut almost in half--from 35 to 20 percent--
     total annual Federal receipts from the tax almost tripled 
     from $9,100,000,000 annually to $26,500,000,000 annually;
       (4) conversely, when Congress raised the rate in 1986, 
     revenues actually fell well below what was anticipated;
       (5) economists across-the-board predict that cutting the 
     capital gains rate will result in a revenue windfall for the 
     Treasury; and
       (6) while a USA Today poll from this March found 70 percent 
     of the American people believe that they need a tax cut, 
     under this resolution Federal spending will grow 17 percent 
     over five years while the net tax cuts are less than 1 
     percent of the total tax burden.
       (b) Sense of Senate.--It is the sense of the Senate that 
     with respect to the revenue levels established under this 
     resolution, to the extent that actual revenues exceed the 
     revenues projected under this resolution due to higher than 
     anticipated economic growth, that revenue windfall should be 
     reserved exclusively for additional tax cuts and/or deficit 
     reduction.

     SEC. 342. SENSE OF THE SENATE SUPPORTING FEDERAL, STATE, AND 
                   LOCAL LAW ENFORCEMENT OFFICERS.

       (a) Findings.--The Senate makes the following findings:
       (1) Our Federal, State, and local law enforcement officers 
     provide essential services that preserve and protect our 
     freedoms and security, and with the support of Federal 
     assistance, State and local law enforcement officers have 
     succeeded in reducing the national scourge of violent crime, 
     as illustrated by a murder rate in 1996 that is projected to 
     be the lowest since 1971 and a violent crime total in 1996 
     that is the lowest since 1990.
       (2) Through a comprehensive effort to attack violence 
     against women mounted by State and local law enforcement, and 
     dedicated volunteers and professionals who provide victim 
     services, shelter, counseling, and advocacy to battered women 
     and their children, important strides have been made against 
     the national scourge of violence against women, illustrated 
     by the decline in the murder rate for wives, ex-wives, and 
     girlfriends at the hands of their ``intimates'' fell to a 19-
     year low in 1995.
       (3) Federal, State, and local law enforcement efforts need 
     continued financial commitment from the Federal Government 
     for funding and financial assistance to continue their 
     efforts to combat violent crime and violence against women.
       (4) Federal, State and local law enforcement also face 
     other challenges which require continued financial commitment 
     from the Federal Government, including regaining control over 
     the Southwest Border, where drug trafficking and illegal 
     immigration continue to threaten public safety and menace 
     residents on the border and throughout the Nation.
       (5) The Violent Crime Reduction Trust Fund established in 
     section 310001 the Violent Crime Control and Law Enforcement 
     Act of 1994 (42 U.S.C. 14211) fully funds the Violent Crime 
     Control and Law Enforcement Act of 1994, including the 
     Violence Against Women Act, without adding to the Federal 
     budget deficit.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that the provisions and the functional totals underlying this 
     resolution assume that--
       (1) the Federal Government's commitment to fund Federal law 
     enforcement programs and programs to assist State and local 
     efforts to combat violent crime, including violence against 
     women, will be maintained; and
       (2) funding for the Violent Crime Reduction program will 
     continue as authorized by the Violent Crime Control and Law 
     Enforcement Act of 1994.

     SEC. 343. SENSE OF SENATE REGARDING PARENTAL INVOLVEMENT IN 
                   PREVENTION OF DRUG USE BY CHILDREN.

       It is the sense of the Senate that the provisions of this 
     resolution assume that, from resources available in this 
     budget resolution, a portion should be set aside for a 
     national grassroots volunteer effort to encourage parental 
     education and involvement in youth drug prevention and to 
     create a drug-intolerant culture for our children.

       And the Senate agree to the same.
     John R. Kasich,
     David L. Hobson,
     John M. Spratt, Jr.,
                                Managers on the Part of the House.

     Pete V. Domenici,
     Chuck Grassley,
     Frank R. Lautenberg,
                               Managers on the Part of the Senate.

[[Page H3372]]

       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 84), setting forth the congressional 
     budget for the United States for fiscal years 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 recommend 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


            principal components of the conference agreement

       The conference report on the Concurrent Budget Resolution 
     on the Budget for Fiscal Year 1998 represents the first major 
     legislative step in implementing the Bipartisan Budget 
     Agreement announced by President Clinton and the Bipartisan 
     Congressional Leadership on the May 2 and finalized on May 
     15, 1997. That agreement called on both Houses to pass a 1998 
     budget resolution with reconciliation instructions fully 
     reflecting the Bipartisan Budget Agreement. This conference 
     agreement represents the good faith effort of the Congress to 
     implement the Agreement.
       This conference report--built on the parameters of the 
     Agreement and the economic projections of the Congressional 
     Budget Office--when implemented through the directed 
     statutory legislation called for in the conference report, 
     will balance the federal budget by 2002, reduce federal 
     spending, reduce the size of the federal government relative 
     to the national economy, extend the solvency of the Medicare 
     trust fund for at least a decade, reduce the burden of 
     federal taxes on American families, and protect federal 
     priority spending programs.
       This conference report projects a balanced unified federal 
     budget in the year 2002, as compared to deficits exceeding 
     $150 billion a year, if current spending and tax policies 
     were left unchanged.
       This conference report will result in a reduction in the 
     rate of growth of federal government spending from the 
     current projected annual rate of 4.4 percent over the next 
     five years, to 3.1 percent a year. In addition, the 
     conference report when fully implemented, will reduce the 
     scope of federal spending. Measured with respect to the size 
     of a growing national economy resulting from a balanced 
     federal budget, federal spending will decline from 20.8 
     percent of GDP in 1996 to 18.9 percent in 2002, the lowest 
     level since 1974.
       This conference report achieves a balanced federal budget 
     while also reducing taxes on American families and 
     businesses. The annual growth rate of federal taxes will 
     decline and by the year 2002, federal tax receipts will 
     balance spending at 18.9 percent of GDP, down from 19.4 
     percent in 1996. The Agreement provides that a net tax cut of 
     $85 billion over the next five years will be achieved; with 
     not more than $250 billion in net tax cuts through 2007.
       This conference report also provides for an increased 
     allocation of federal resources to the Appropriation 
     Committees for some priority spending programs over the next 
     five years. These include programs for: education, 
     environment, transportation, crime fighting and international 
     affairs. However, even with these increased resources, total 
     federal spending for all appropriated nondefense programs 
     will increase at less than a 0.5 percent annual average rate 
     over the next five years. The conference report also 
     implements the Agreement's child health insurance initiative, 
     modifications to last year's welfare reform legislation, and 
     other initiatives that could total $33.6 billion over the 
     next five years.
       Finally, the conference report begins the process of 
     enforcing the Agreement through the existing budget process 
     rules--the reconciliation process, committee spending 
     allocations, and existing pay-go procedures. Additional 
     enforcement mechanisms will be included in substantive law to 
     extend and revise the Budget Enforcement Act of 1990.


                          displays and amounts

       The contents of concurrent budget resolutions are set forth 
     in section 301(a) of the Congressional Budget Act of 1974.
     House resolution
       The House budget resolution includes all of the items 
     required as part of a concurrent budget resolution under 
     section 301(a) of the Congressional Budget Act other than the 
     spending and revenue levels for Social Security (which are 
     used to enforce a point of order applicable only in the 
     Senate).
     Senate amendment
       The Senate amendment includes all of the items required 
     under section 301(a) of the Congressional Budget Act. In 
     addition, it includes the revenue and outlay levels for 
     Social Security for the purpose of enforcing points of order 
     in the Senate.
     Conference agreement
       The House recedes to the Senate amendment.


                     aggregates and function levels

     Conference agreement

                          1998 BUDGET RESOLUTION CONFERENCE AGREEMENT--FUNCTION TOTALS                          
                                              [Dollars in billions]                                             
----------------------------------------------------------------------------------------------------------------
                                                        1997      1998      1999      2000      2001      2002  
----------------------------------------------------------------------------------------------------------------
050: National Defense...............  BA                 264.9     268.2     270.8     274.8     281.3     289.1
                                      OT                 266.6     266.0     265.8     268.4     270.1     272.6
150: International Affairs..........  BA                  15.3     15.90      14.9      15.8      16.1      16.4
                                      OT                  14.5      14.6      14.6      15.0      14.8      14.8
250: Science, Space and Technology..  BA                  16.7      16.2      16.2      15.9      15.8      15.6
                                      OT                  17.0      16.9      16.5      16.0      15.9      15.7
270: Energy.........................  BA                   2.6       3.1       3.5       3.2       2.9       2.8
                                      OT                   1.9       2.2       2.4       2.3       2.0       1.9
300: Natural Resources and            BA                  22.2      23.9      23.2      22.6      22.2      22.1
 Environment.                                                                                                   
                                      OT                  22.4      22.4      22.7      23.0      22.7      22.3
350: Agriculture....................  BA                  11.8      13.1      12.8      12.2      11.0      10.7
                                      OT                   9.9      11.9      11.3      10.7       9.5       9.1
370: Commerce and Housing Credit:                                                                               
    On-budget.......................  BA                   4.6       6.6      11.1      15.2      16.1      16.7
                                      OT                 -11.0      -0.9       4.3       9.8      12.1      12.5
    Off-budget......................  BA                   1.4       2.7      -1.0      -1.3      -0.5       0.2
                                      OT                   1.4       2.7      -1.0      -1.3      -0.5       0.2
    Total...........................  BA                   6.0       9.3      10.1      13.9      15.6      16.9
                                      OT                  -9.6       1.8       3.3       8.5      11.6      12.7
400: Transportation.................  BA                  43.9      46.4      46.6      47.1      48.1      49.2
                                      OT                  39.5      40.9      41.3      41.4      41.3      41.2
450: Community and Regional           BA                  10.2       8.8       8.5       7.8       7.8       7.8
 Development.                                                                                                   
                                      OT                  12.1      10.4      10.9      11.0      11.4       8.4
500: Education, Training, Employment  BA                  54.2      60.0      60.5      61.7      63.0      63.3
 and Social Services.                                                                                           
                                      OT                  50.5      56.1      59.3      60.7      61.9      62.3
550: Health.........................  BA                 125.3     137.8     145.0     154.1     163.4     172.2
                                      OT                 127.4     137.8     144.9     153.9     163.1     171.7
570: Medicare.......................  BA                 190.8     201.6     212.1     225.5     239.6     251.5
                                      OT                 191.3     201.8     211.5     225.5     238.8     250.8
600: Income Security................  BA                 228.8     239.0     254.1     269.6     275.1     286.9
                                      OT                 237.8     247.8     258.1     268.2     277.3     285.2
650: Social Security:                                                                                           
    On-budget.......................  BA                  11.0      11.4      12.1      12.8      13.0      14.4
                                      OT                  11.0      11.5      12.2      12.9      13.0      14.4
    Off-budget......................  BA                 352.1     369.4     387.3     406.6     427.1     449.1
                                      OT                 355.4     372.6     390.6     409.9     430.9     452.4
    Total...........................  BA                 363.1     380.8     399.4     419.4     440.1     463.5
                                      OT                 366.4     384.1     402.8     422.8     443.9     466.8
700: Veterans Benefits..............  BA                  39.1      40.5      41.5      41.7      42.1      42.3
                                      OT                  39.4      41.3      41.7      41.9      42.2      42.4
750: Administration of Justice......  BA                  23.5      24.8      25.1      24.2      24.4      24.9
                                      OT                  20.7      22.6      24.5      25.2      25.9      24.9
800: General Government.............  BA                  14.0      14.7      14.4      14.0      13.7      13.1
                                      OT                  13.9      14.0      14.4      14.7      14.1      13.1
900: Net Interest:                                                                                              
    On-budget.......................  BA                 291.1     296.5     304.6     305.1     303.8     303.7
                                      OT                 291.1     296.5     304.6     305.1     303.8     303.7
    Off-budget......................  BA                 -43.5     -48.0     -52.5     -57.2     -61.9     -66.9
                                      OT                 -43.5     -48.0     -52.5     -57.2     -61.9     -66.9

[[Page H3373]]

                                                                                                                
    Total...........................  BA                 274.6     284.5     252.1     247.9     241.9     236.8
                                      OT                 274.6     284.5     252.1     247.9     241.9     236.8
920: Allowances.....................  BA              ........  ........  ........  ........  ........  ........
                                      OT              ........  ........  ........  ........  ........  ........
950: Undistributed Offsetting                                                                                   
 Receipts:                                                                                                      
    On-budget.......................  BA                 -41.0     -41.8     -36.9     -36.9     -39.2     -51.1
                                      OT                 -41.0     -41.8     -36.9     -36.9     -39.2     -51.1
    Off-budget......................  BA                  -6.5      -7.0      -7.5      -91.     -10.9     -13.0
                                      OT                  -6.5      -7.0      -7.5      -91.     -10.9     -13.0
    Total...........................  BA                 -47.5     -48.8     -44.4     -46.0     -501.     -64.1
                                      OT                 -47.5     -48.8     -44.4     -46.0     -501.     -64.1
Total Spending:                                                                                                 
    On-budget.......................  BA               1,329.0   1,386.7   1,440.1   1,486.4   1,520.2   1,551.6
                                      OT               1,315.0   1,372.0   1,424.1   1,468.8   1.500.7   1,515.9
    Off-budget......................  BA                 303.5     317.1     326.3     339.0     353.8     369.4
                                      OT                 306.8     320.3     329.6     342.3     357.6     372.7
    Total...........................  BA               1,632.5   1,703.8   1,766.4   1,825.4   1,874.0   1,921.0
                                      OT               1,621.8   1,692.3   1,753.7   1,811.1   1,858.3   1,888.4
Revenues:                                                                                                       
    On-budget.......................  ..............   1,166.9   1,199.0   1,241.9   1,285.6   1,343.6   1,407.6
    Off-budget......................  ..............     388.0     402.8     422.3     442.6     461.6     482.8
                                                     -----------------------------------------------------------
    Total...........................  ..............   1,554.9   1,601.8   1,664.2   1,728.2   1,805.2   1,890.4
                                                     ===========================================================
Deficit:                                                                                                        
    On-budget.......................  ..............    -148.1    -173.0    -182.2    -183.2    -157.1    -108.3
    Off-budget......................  ..............      81.2      82.5      92.7     100.3     104.0     110.1
                                                     -----------------------------------------------------------
    Total...........................  ..............     -66.9     -90.5     -89.5     -82.9     -53.1       1.8
----------------------------------------------------------------------------------------------------------------


                        1998 BUDGET RESOLUTION CONFERENCE AGREEMENT--DISCRETIONARY TOTALS                       
                                              [Dollars in billions]                                             
----------------------------------------------------------------------------------------------------------------
                                                        1997      1998      1999      2000      2001      2002  
----------------------------------------------------------------------------------------------------------------
050: National Defense...............  BA                 265.8     269.0     271.5     275.4     281.8     289.6
                                      OT                 267.5     266.8     266.5     269.0     270.7     273.1
150: International Affairs..........  BA                  18.1      19.0      18.6      18.5      18.3      18.2
                                      OT                  19.2      19.2      18.8      18.8      18.5      18.4
250: Science, Space and Technology..  BA                  16.6      16.2      16.2      15.9      15.8      15.6
                                      OT                  17.0      16.8      16.5      16.0      15.8      15.6
270: Energy.........................  BA                   4.3       4.8       4.9       4.6       4.4       4.2
                                      OT                   4.9       5.0       5.1       4.8       4.6       4.4
300: Natural Resources and            BA                  21.5      22.8      22.2      21.6      21.2      21.2
 Environment.                                                                                                   
                                      OT                  21.5      21.4      21.7      21.9      21.8      21.5
350: Agriculture....................  BA                   4.2       4.1       4.0       3.9       3.8       3.8
                                      OT                   4.2       4.1       4.1       3.9       3.9       3.8
370: Commerce and Housing Credit....  BA                   2.8       3.1       3.5       5.0       3.0       2.9
                                      OT                   2.8       3.1       3.4       4.6       3.2       2.7
400: Transportation.................  BA                  13.8      13.6      15.0      14.8      15.1      15.3
                                      OT                  36.9      38.3      38.9      39.3      39.4      39.4
450: Community and Regional           BA                   9.3       8.3       8.2       7.5       7.5       7.6
 Development.                                                                                                   
                                      OT                  11.7      10.0      10.9      11.0      11.3       8.4
500: Education, Training, Employment  BA                  42.4      46.7      47.0      47.9      48.5      49.2
 and Social Services.                                                                                           
                                      OT                  40.3      43.2      46.1      47.1      47.8      48.6
550: Health.........................  BA                  25.0      24.9      24.7      24.6      24.4      24.2
                                      OT                  23.8      24.6      24.8      24.9      24.6      24.3
570: Medicare.......................  BA                   2.6       2.7       2.7       2.7       2.6       2.6
                                      OT                   2.7       2.7       2.6       2.7       2.7       2.6
600: Income Security................  BA                  26.6      32.9      35.7      37.7      38.7      39.6
                                      OT                  40.9      41.3      41.6      41.3      41.2      40.8
650: Social Security................  BA                   3.5       3.3       3.2       3.2       3.2       3.1
                                      OT                   3.4       3.4       3.3       3.3       3.2       3.1
700: Veterans Benefits..............  BA                  18.9      18.5      18.4      18.3      18.2      18.0
                                      OT                  19.3      19.3      18.6      18.3      18.2      17.9
750: Administration of Justice......  BA                  22.9      24.4      24.8      23.9      24.1      24.7
                                      OT                  20.4      22.2      24.2      25.0      25.7      24.7
800: General Government.............  BA                  11.8      12.6      12.3      11.8      11.5      11.4
                                      OT                  11.9      11.9      12.2      12.4      11.9      11.4
920: Allowances.....................  BA              ........  ........  ........  ........  ........  ........
                                      OT              ........  ........  ........  ........  ........  ........
Total Discretionary.................  BA                 510.1     526.9     533.0     537.2     542.0     551.1
                                      OT                 548.5     553.3     559.3     564.3     564.4     560.8
Defense.............................  BA                 265.8     269.0     271.5     275.4     281.8     289.6
                                      OT                 267.5     266.8     266.5     269.0     270.7     273.1
Nondefense..........................  BA                 244.3     257.9     261.5     261.8     260.2     261.5
                                      OT                 281.0     286.4     292.8     295.3     293.7     287.7
----------------------------------------------------------------------------------------------------------------


                          1998 BUDGET RESOLUTION CONFERENCE AGREEMENT--MANDATORY TOTALS                         
                                              [Dollars in billions]                                             
----------------------------------------------------------------------------------------------------------------
                                                        1997      1998      1999      2000      2001      2002  
----------------------------------------------------------------------------------------------------------------
050: National Defense...............  BA                  -0.9      -0.8      -0.7      -0.6      -0.5      -0.5
                                      OT                  -1.0      -0.8      -0.7      -0.6      -0.6      -0.5
150: International Affairs..........  BA                  -2.8      -3.1      -3.7      -2.8      -2.2      -1.9
                                      OT                  -4.6      -4.6      -4.3      -3.8      -3.8      -3.6
250: Science, Space and Technology..  BA                   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
270: Energy.........................  BA                  -1.8      -1.6      -1.4      -1.4      -1.5      -1.4
                                      OT                  -3.1      -2.8      -2.6      -2.5      -2.6      -2.6
300: Natural Resources and            BA                   0.7       1.1       1.0       1.0       1.0       0.9
 Environment.                                                                                                   
                                      OT                   0.8       1.0       1.0       1.0       0.9       0.8
350: Agriculture....................  BA                   7.7       9.1       8.8       8.4       7.2       6.9
                                      OT                   5.8       7.7       7.2       6.7       5.6       5.3
370: Commerce and Housing Credit....  BA                   3.2       6.2       6.6       9.0      12.6      14.0
                                      OT                 -12.4      -1.3      -0.0       4.0       8.4      10.1
400: Transportation.................  BA                  30.0      32.8      31.6      32.3      33.1      33.8
                                      OT                   2.6       2.7       2.3       2.0       1.9       1.8
450: Community and Regional           BA                   0.9       0.5       0.3       0.3       0.2       0.2
 Development.                                                                                                   
                                      OT                   0.4       0.3       0.0       0.0       0.0       0.0
500: Education, Training, Employment  BA                  11.8      13.3      13.4      13.8      14.5      14.1
 and Social Services.                                                                                           
                                      OT                  10.1      12.9      13.2      13.7      14.2      13.8
550: Health.........................  BA                 100.3     112.9     120.2     129.4     139.0     148.0
                                      OT                 103.6     113.2     120.1     129.1     138.5     147.4
570: Medicare.......................  BA                 188.2     198.9     209.4     222.9     237.0     248.9

[[Page H3374]]

                                                                                                                
                                      OT                 188.6     199.0     208.9     222.8     236.1     248.1
600: Income Security................  BA                 202.2     206.1     218.4     231.9     236.4     247.4
                                      OT                 197.0     206.5     216.5     226.8     236.1     244.4
650: Social Security................  BA                 359.7     377.5     396.2     416.2     437.0     460.4
                                      OT                 363.0     380.7     399.5     419.5     440.7     463.7
700: Veterans Benefits..............  BA                  20.2      22.1      23.0      23.4      23.9      24.3
                                      OT                  20.1      22.1      23.1      23.6      24.1      24.6
750: Administration of Justice......  BA                   0.6       0.4       0.3       0.3       0.3       0.2
                                      OT                   0.4       0.4       0.3       0.2       0.2       0.2
800: General Government.............  BA                   2.2       2.1       2.1       2.2       2.2       1.7
                                      OT                   2.0       2.1       2.1       2.4       2.2       1.7
900: Net Interest...................  BA                 247.6     248.6     252.0     247.9     241.9     236.9
                                      OT                 247.6     248.6     252.0     247.9     241.9     236.9
920: Allowances.....................  BA              ........  ........  ........  ........  ........  ........
                                      OT              ........  ........  ........  ........  ........  ........
950: Undistributed Offsetting         BA                 -47.4     -48.8     -44.4     -46.0     -50.0     -64.1
 Receipts.                                                                                                      
                                      OT                 -47.4     -48.8     -44.4     -46.0     -50.0     -64.1
Total Spending......................  BA               1,122.4   1,177.1   1,233.2   1,288.2   1,332.0   1,370.0
                                      OT               1,073.5   1,138.9   1,194.3   1,246.9   1,294.0   1,328.0
----------------------------------------------------------------------------------------------------------------

                               Economics

       Section 301(g)(2) of the Congressional Budget Act requires 
     that the joint explanatory statement accompanying a 
     conference report on a budget resolution set forth the common 
     economic assumptions upon which the joint statement and 
     conference report are based. The conference agreement is 
     based upon the economic forecasts developed by the 
     Congressional Budget Office and presented in CBO's ``The 
     Economic and Budget Outlook: Fiscal Years 1998-2007'' 
     (January 1997). These economic forecasts assume a balanced 
     budget by 2002. Changes were made to CBO's inflation 
     projections, however, to reflect expected non-legislated 
     technical CPI changes by the Bureau of Labor Statistics 
     (BLS). The baseline also includes CBO's technical revenue re-
     estimate which was released in early May 1997.
     House resolution
       The assumptions of the House Resolution are identical to 
     the assumptions of the Senate Amendment listed below.
     Senate amendment
       CBO's CPI forecasts were modified to reflect two upcoming 
     technical changes that BLS will make in early 1999, namely 
     the implementation of geometric means and an improved 
     rotation of new goods into the CPI survey. These changes were 
     announced after CBO's winter forecast was completed. CBO 
     provided range estimates as to the likely impact of these 
     technical changes on CPI growth. Based upon these estimates, 
     the Senate Amendment reduced CBO's yearly CPI forecasts by 
     0.3 percentage points beginning in 1999. The Senate Amendment 
     also increased CBO's taxable income stream by 0.04 percentage 
     points a year, following CBO's statement that they may not 
     have fully reflected BLS' 1996 reduction in CPI formula bias. 
     Lastly, the Senate Amendment also included CBO's technical 
     revenue re-estimate. In May 1997, CBO suggested that the 
     Budget Committees should reduce their 1997-2002 deficits by 
     an amount similar to $45 billion each year, partly in 
     response to an increase in FY 1997 revenue.
     Conference agreement
       The conference agreement follows the House resolution and 
     the Senate amendment.

                          ECONOMIC ASSUMPTIONS                          
                           [By calendar years]                          
------------------------------------------------------------------------
                                 1997   1998   1999   2000   2001   2002
------------------------------------------------------------------------
Percent change, year over                                               
 year:                                                                  
    Real GDP growth...........    2.3    2.1    2.2    2.2    2.2    2.1
    Consumer Price Index......    2.9    2.9    2.7    2.7    2.7    2.7
    GDP Price Index...........    2.3    2.5    2.6    2.6    2.6    2.6
Percent, annual:                                                        
    Unemployment rate.........    5.3    5.6    5.8    5.9    6.0    6.0
    Three-month Treasury bill                                           
     rate.....................    5.0    5.0    4.6    4.2    3.9    3.9
    Ten-year Treasury bond                                              
     rate.....................    6.2    6.1    5.8    5.5    5.5    5.5
Share of GDP:                                                           
    Wages and salaries........   48.0   47.7   47.6   47.4   47.3   47.3
    Corporate profits (book)..    8.2    8.1    7.9    7.8    7.9    7.8
------------------------------------------------------------------------

                         Spending and Revenues

                        A. Spending by Function


                     Function 050: NATIONAL DEFENSE

     Major programs in function
       The National Defense function includes the Department of 
     Defense (DOD) in subfunction 051, Atomic Energy Defense 
     Activities (AEDA) in the Department of Energy (DOE) in 
     subfunction 053, and other defense related activities in the 
     Federal Emergency Management Agency, the Select Service, and 
     other federal agencies in subfunction 054. More than 94.6 
     percent of the 1998 budget authority in the President's 
     Budget are for the Department of Defense (051); 5.1 percent 
     of the funds are for subfunction 053, and the remaining 0.3 
     percent is for subfunction 054.
       House resolution

                                         FUNCTION 050: NATIONAL DEFENSE                                         
                                            [In millions of dollars]                                            
----------------------------------------------------------------------------------------------------------------
                                                        1997                                                    
                                                        est.      1998      1999      2000      2001      2002  
----------------------------------------------------------------------------------------------------------------
Budget authority....................................   264,905   268,197   270,784   274,802   281,305   289,092
Outlays.............................................   266,582   265,978   265,771   268,418   270,110   272,571
----------------------------------------------------------------------------------------------------------------

       The House resolution assumes $268.2 billion in budget 
     authority [BA] and $266.0 billion in outlays for fiscal year 
     1998. Over the 5-year period from 1998 through 2002, the 
     resolution assumes totals of $1,348.2 billion in BA and 
     $1,342.8 billion in outlays.
       For discretionary spending in this function, the House 
     resolution assumes $269.0 billion in budget authority [BA] 
     and $266.8 billion in outlays in fiscal year 1998. Over 5 
     years, it assumes $1,387.3 billion in BA and $1,346.1 billion 
     in outlays.
       The House resolution makes no assumptions concerning 
     mandatory spending in this function.
       Senate amendment
       Discretionary spending--Discretionary spending in this 
     function is a priority in the Bipartisan Budget Agreement.
       The table below presents the discretionary spending figures 
     for the Senate amendment.

----------------------------------------------------------------------------------------------------------------
                                                                                                          Total 
                                                          1997    1998    1999    2000    2001    2002    98-02 
----------------------------------------------------------------------------------------------------------------
Reported budget (BA)...................................   265.8   269.0   271.5   275.4   281.8   289.6   1387.3
Resolution (OT)........................................   267.5   266.8   266.5   269.0   270.7   273.1   1346.1
----------------------------------------------------------------------------------------------------------------

       The Senate amendment is a middle ground between the Budget 
     Resolution Baseline and a five year freeze at the final 1997 
     appropriated levels. It is an increase over the FY 1997 
     Congressional Budget Resolution projections for 1998 to 2002, 
     and for the same years it exceeds the President's Budget in 
     budget authority and is virtually the same in outlays.
       The 1998-2002 totals of the Senate amendment are: (1) $63.0 
     billion in budget authority and $76.8 billion in outlays 
     below the Budget Resolution Baseline; (2) $58.1 billion in 
     budget authority and $24.1 billion in outlays above the 
     Freeze Baseline: (3) $16.7 billion in budget authority and 
     $5.2 billion in outlays above the FY 1997 Congressional 
     Budget Resolution, and (4) $4.4 billion in budget authority 
     above the President's Budget; in outlays it is $200 million 
     lower.
       The Senate amendment assumes non-statutory ``firewalls'' 
     for two years, 1998 and 1999. The Balanced Budget Agreement 
     includes statutory firewalls to be enacted later.
       When comparing the Senate amendment to the President's 
     Budget, one will notice the following differences. For 1998, 
     the Senate amendment is $2.6 billion higher in budget 
     authority and $1.0 billion higher in outlays. Over the years 
     1998-2002, in budget authority, the Senate amendment is 
     higher or equal to the President's Budget for all years; 
     overall it is an increase of $4.4 billion. Over the years 
     1998-2002, in outlays, the reported resolution's defense 
     outlays exceed or are equal to the President's Budget in the 
     years 1998 through 2001; in 2002, the President's Budget is 
     higher. Overall, the Senate amendment and the President's 
     Budget are virtually the same; the Senate amendment is $200 
     million lower, a difference of one hundredth of one percent.
       Manadatory spending.--For mandatory spending in the 050 
     function, $200 million in additional stockpile sales were 
     requested by the President in 2002, but they were not scored 
     by CBO because no implementing legislation had been 
     requested.

[[Page H3375]]

       Conference agreement
       The conference agreement reflects the provisions of the 
     Bipartisan Budget Agreement. Because the dollar amounts are 
     virtually identical in the House resolution and the Senate 
     amendment, the House recedes to the Senate with respect to 
     function spending levels.


                  FUNCTION 150: INTERNATIONAL AFFAIRS

     Major programs in function
       Function 150 includes the operation of foreign affairs 
     establishments including embassies and other diplomatic 
     missions abroad; foreign aid loan and technical assistance 
     activities in less developed countries; security assistance 
     to foreign governments; foreign military sales made through 
     the Foreign Military Sales Trust Fund; U.S. contributions to 
     international financial institutions; U.S. contributions to 
     international organizations; trade promotion activities; and 
     refugee assistance.
       House resolution

                                       FUNCTION 150: INTERNATIONAL AFFAIRS                                      
                                            [In millions of dollars]                                            
----------------------------------------------------------------------------------------------------------------
                                                        1997                                                    
                                                        est.      1998      1999      2000      2001      2002  
----------------------------------------------------------------------------------------------------------------
Budget authority....................................    15,281    15,909    14,918    15,782    16,114    16,353
Outlays.............................................    14,534    14,558    14,569    14,981    14,751    14,812
----------------------------------------------------------------------------------------------------------------

       The House resolution assumes $15.9 billion in budget 
     authority [BA] in fiscal year 1998 and $14.6 billion in 
     outlays. Over the 5-year period from 1998 through 2002, the 
     resolution assumes totals $79.1 in budget authority and $73.7 
     in outlays.
       The House resolution assumes that budget authority for 
     discretionary programs will be $19.0 billion in 1998 and 
     total $92.7 billion over the next 5 years. Likewise, outlays 
     are estimated to be $19.2 billion in 1998 and $93.8 billion 
     over the next 5 years. The House resolution assumes a cap 
     adjustment is available for exchanges of monetary assets 
     and for international organization arrears.
       No changes are envisioned concerning mandatory programs.
       Senate amendment
       Discretionary spending.--Discretionary spending in this 
     function is a priority in the Bipartisan Budget Agreement. 
     International Affairs discretionary spending in 1998 for this 
     function would rise to $19.0 billion in BA and $19.2 billion 
     in outlays, an increase of $0.4 billion in BA and $0.04 
     billion in outlays above the Budget Resolution Baseline for 
     FY 1998. Over the five year period, spending would drop to a 
     level of $18.2 billion in BA and $18.4 billion in outlays by 
     2002.
       In the 1998 budget request, the President proposed funding 
     $3.521 billion for the New Arrangements to Borrow (NAB), the 
     emergency reserves of the IMF. Funding for the NAB is 
     accommodated at the requested level by a provision in the 
     Budget Process and Enforcement category providing an 
     allowance for an upward adjustment to the budget authority 
     discretionary spending limits should Congress act to support 
     the proposal. A similar adjustment was provided for the IMF 
     in the 1990 Budget Enforcement Act.
       In the 1998 budget request, the President proposed funding 
     to pay off the US arrears to the United Nations and other 
     international organizations and the multilateral development 
     banks over three years. Funding for the arrearages is 
     accommodated at the requested level by a provision in the 
     Budget Process and Enforcement category providing an 
     allowance for an upward adjustment to the discretionary 
     spending limits should Congress act to appropriate these 
     funds. The Senate amendment intends for this adjustment to 
     provide the committees of jurisdiction the necessary 
     flexibility to reach a bipartisan resolution. In response to 
     the Administration's proposal to pay the UN arrears, the 
     Majority Leader in coordination with the chairmen and ranking 
     members of the committees of jurisdiction has initiated 
     efforts to meet that objective contingent on significant, 
     demonstrable, and achievable reforms at the United Nations.
       In order to meet the Bipartisan Budget Agreement's 
     discretionary spending limits, savings will be required from 
     programs in this function. These savings will be determined 
     by the Appropriations Committee. Examples of possible 
     reduction include the following:
       The Senate amendment assumes the Administration's proposal 
     to cut the 1998 level of funding for the Export Import Bank 
     of the United States to a level of $630 million in BA in 
     1998, and $85 million decrease from 1997.
       The Senate amendment assumes the Administration request of 
     $492 million in BA for the Assistance for Eastern Europe and 
     the Baltic States. By 2002 the request falls to $50 million 
     in BA, $425 million below the 1997 level.
       Mandatory spending.--Mandatory programs, in 1997, totaled 
     -$2.8 billion in BA and -$4.6 billion in outlays. In 1998, 
     mandatory accounts total -$3.1 billion in BA and -$4.6 
     billion in outlays and by 2002 total -$1.9 billion in BA and 
     -$3.6 billion in outlays.
       Conference agreement
       The conference agreement reflects the provisions of the 
     Bipartisan Budget Agreement. Because the dollar amounts are 
     virtually identical in the House resolution and the Senate 
     amendment, the House recedes to the Senate with respect to 
     function spending levels.


         Function 250: General Science, Space & Transportation

     Major programs in function
       Function 250 includes the National Aeronautics and Space 
     Administration (NASA) civilian space program, the National 
     Science Foundation (NSF), and basic research programs of the 
     Department of Energy (DOE).
       Seventy-five percent of the function is comprised of 
     spending for NASA. Nearly 100 percent of the function is 
     discretionary, under the jurisdiction of the Appropriations 
     subcommittees on VA, HUD and Independent Agencies and Energy 
     and Water.
       House amendment

                              FUNCTION 250: GENERAL SCIENCE, SPACE, AND TECHNOLOGY                              
                                            [In millions of dollars]                                            
----------------------------------------------------------------------------------------------------------------
                                                        1997      1998      1999      2000      2001      2002  
----------------------------------------------------------------------------------------------------------------
Budget Authority....................................    16,667    16,237    16,203    15,947    15,800    15,604
Outlays.............................................    17,038    16,882    16,528    16,013    15,862    15,668
----------------------------------------------------------------------------------------------------------------

       The House resolution assumes $16.2 billion in budget 
     authority [BA] and $16.9 billion in outlays for fiscal year 
     1998. Over the 5-year period from 1998 through 2002, the 
     resolutions assumes totals of $79.8 billion in BA and $81.0 
     billion in outlays.
       The House resolution assumes that budget authority for 
     discretionary programs will be $16.2 billion in 1998 and 
     total $79.6 billion over the next 5 years. Likewise, 
     outlays are estimated to be $16.8 billion in 1998 and 
     $80.8 billion over the next 5 years.
       No changes are envisioned concerning mandatory programs.
       Senate amendment
       Discretionary spending.--Discretionary spending in 1998 for 
     Function 250 would decrease by $0.9 billion in BA and $0.5 
     billion in outlays from the Budget Resolution baseline, 
     resulting in total 1998 funding of $16.2 billion in BA and 
     $16.8 billion in outlays. Over the five year period, budget 
     authority would be decreased by $10.6 billion in BA and $9.0 
     billion in outlays by 2002 from the Budget Resolution 
     baseline.
       The Senate amendment assumes continued support for basic 
     research between 1998 and 2002. National Science Foundation 
     (NSF) spending on research and related activities would grow 
     from their current level of $2.4 billion to $2.5 billion in 
     2002.
       In order to meet the Bipartisan Budget Agreement's 
     discretionary spending limits, savings will be required from 
     program in this function. These savings will be determined by 
     the Appropriations Committee.
       Examples of possible reductions include the following: (1) 
     The Senate amendment assumes the President's budget proposal 
     to freeze DOE General Science programs at their 1997 level of 
     $1.0 billion through 2002. (2) The Senate amendment assumes 
     the President's reductions in NASA Science, Aeronautics, and 
     Technology programs. Savings are achieved from the Budget 
     Resolution baseline by allowing these programs to increase by 
     an average of only two percent each year, from their current 
     level of $4.8 billion to $5.2 billion in 2002. The proposal 
     would result in savings of $0.8 billion over the five-year 
     period. (3) The Senate amendment assumes the President's 
     budget reductions to NASA Human Space Flight accounts. These 
     activities would be reduced from their current level of $5.5 
     billion to $4.7 billion, with much of this reduction coming 
     from planned reductions to the Space Station, which is 
     scheduled to be funded at $2.1 billion in 1998 and fall to 
     $1.5 billion in 2002. The proposal would result in savings of 
     $4.2 billion over the five-year period. (4) The Senate 
     amendment assumes the President's budget reductions to NASA 
     Mission Support activities, which would be frozen at $2.5 
     billion per year, saving $1.7 billion over the five-year 
     period. (5) The Senate amendment assumes the President's 
     budget reductions to NSF spending on education and human 
     resources, which would be frozen at their current level of 
     $0.6 billion. (6) The President has proposed to reduce these 
     NSF activities by $0.1 billion between 1998 and 2002 from the 
     Budget Resolution baseline.
       Mandatory spending.--There are no mandatory assumptions in 
     Function 250.
       Conference agreement
       The conference agreement reflects the provisions of the 
     Bipartisan Budget Agreement. Because the dollar amounts are 
     virtually identical in the House resolution and the Senate 
     amendment, the House recedes to the Senate with respect to 
     function spending levels.


                          function 270: energy

     Major programs in function
       Function 270 funds the civilian activities of the 
     Department of Energy (DOE), the Rural Utilities Service 
     (RUS), the Nuclear Regulatory Commission (NRC), and the net 
     spending of the Tennessee Valley Authority (TVA) power 
     program.
       House resolution

                                              FUNCTION 270: ENERGY                                              
                                            [In millions of dollars]                                            
----------------------------------------------------------------------------------------------------------------
                                                        1997                                                    
                                                        est.      1998      1999      2000      2001      2002  
----------------------------------------------------------------------------------------------------------------
Budget authority....................................     2,562     3,123     3,469     3,186     2,939     2,846
Outlays.............................................     1,864     2,247     2,446     2,293     2,048     1,867
----------------------------------------------------------------------------------------------------------------

       The House resolution assumes $3.1 billion in budget 
     authority [BA] and $2.2 billion in outlays for fiscal year 
     1998. Over the 5-year

[[Page H3376]]

     period from 1998 through 2002, the House resolution assumes 
     totals of $15.6 billion in BA and $10.9 billion in outlays.
       The House resolution is consistent with the budget 
     agreement. The House resolution assumes that budget authority 
     for discretionary programs will be $4.8 billion in 1998 and 
     total $22.9 over the next 5 years. Likewise, outlays are 
     estimated to be $5.0 in 1998 and $24.0 over the next 5 years.
       Consistent with the budget agreement, it is assumed that 
     the Department of Energy [DOE] will be authorized to lease 
     excess storage capacity in the Strategic Petroleum Reserve.
       Senate amendment
       Discretionary spending.--The Senate amendment assumes 
     spending of $22.9 billion in budget authority and $24.0 
     billion in outlays for the function over the next five years. 
     By 2002 spending would decrease by $0.5 billion in BA and 
     $0.6 billion in outlays as compared to Budget Resolution 
     baseline levels.
       The aggregate numbers in this function will support the 
     overall level of spending assumed in the Bipartisan Budget 
     Agreement. In order to meet these levels, specific program 
     reductions and freezes would be required beyond the 
     President's request.
       The Senate amendment places a priority on the Department of 
     Energy programs that support science and basic research, such 
     as DOE's efforts to map the human genome and the activities 
     at the Department of Energy National Laboratories.
       in order to meet the Bipartisan Budget Agreement's 
     discretionary spending limits, savings will be required from 
     programs in this function. These savings will be determined 
     by the Appropriation Committees.
       Examples of possible reductions include the following: (1) 
     Naval Petroleum Reserves reductions. The President's Budget 
     request proposes to reduce the Naval Petroleum Reserves 
     program. The outyear discretionary savings result from the 
     sale of Elk Hills Naval Petroleum Reserve scheduled for 
     February 1998 and the subsequent reduced appropriations 
     requirement. (2) Fossil Energy R&D reductions. The 
     President's request would reduce fossil (coal, natural gas, 
     and petroleum) technology development programs. (3) Other. 
     The President's Budget request proposes reductions in the 
     Uranium Enrichment decontamination and decommissioning fund 
     and the Power Marketing Administrations. The President's 
     request reduces the Rural Electrification Administration 
     (REA) and the Energy Information Administration (EIA).
       Mandatory spending.--The reported resolution adopts a 
     proposal from the 1997 Budget Resolution and the president's 
     budget request that authorizes DOE to lease excess SPRO 
     storage capacity.
       Conference agreement
       The conference agreement reflect the provisions of the 
     Bipartisan Budget Agreement. Because the dollar amounts are 
     virtually identical in the House resolution and the Senate 
     amendment, the House recedes to the Senate with respect to 
     function spending levels.


            Function 300: Environment and natural resources

     Major programs in function
       This function includes funding for water resources, 
     conservation and land management, recreation resources, and 
     pollution control and abatement. Agencies with major programs 
     in this function include: the Army Corp of Engineers (CORP), 
     Bureau of Reclamation (BOR), Forest Service (USFS), Bureau of 
     Land Management (BLM), Fish and Wildlife Service (USFWS), the 
     National Park Service (NPS), Environmental Protection Agency 
     (EPA), National Oceanic and Atmospheric Administration 
     (NOAA), and the U.S. Geological Survey (USGS).
       House resolution

                                 FUNCTION 300: NATURAL RESOURCES AND ENVIRONMENT                                
                                            [in millions of dollars]                                            
----------------------------------------------------------------------------------------------------------------
                                                        1997                                                    
                                                        est.      1998      1999      2000      2001      2002  
----------------------------------------------------------------------------------------------------------------
Budget Authority....................................    22,199    23,877    23,227    22,570    22,151    22,086
Outlays.............................................    22,359    22,405    22,702    22,963    22,720    22,313
----------------------------------------------------------------------------------------------------------------

       The House resolution assumes $23.9 billion in budget 
     authority [BA] and $22.4 billion in outlays for fiscal year 
     1998. Over the 5- year period, from 1998 through 2002, the 
     total BA is $113.9 billion and $113.1 billion in outlays.
       The House resolution assumes that budget authority for 
     discretionary programs will be $22.8 billion in 1998 and 
     total $108.9 over the next 5 years. Likewise, outlays are 
     estimated to be $21.4 billion in 1998 and $108.3 billion over 
     the next 5 years.
       The House resolution assumes that up to $700 million will 
     be available for Federal land acquisitions and to finalize 
     priority Federal land exchanges, and that Superfund 
     appropriations will be at the President's level if policies 
     can be worked out.
       The EPA Operating Program, the Operation of the National 
     Park System, Land Acquisition and State Assistance, and 
     Everglades Restoration Fund (including Corps of Engineers) 
     are considered protected domestic, discretionary priorities, 
     consistent with the Bipartisan Budget Agreement.
       The House resolution also assumes that the amounts provided 
     are sufficient to accommodate $143 million in fiscal year 
     1998 to implement the California Bay-Delta Environmental 
     Enhancement and Water Security Act.
       The House resolution assumes that $200 million will be 
     reserved annually for an Environmental Reserve Fund, 
     contingent upon Superfund reform.
       Senate amendment
       Discretionary spending.--The discretionary spending in this 
     function is a priority in the Bipartisan Budget Agreement. 
     Discretionary spending in 1998 for this function increases by 
     $0.6 billion in BA and increases by $0.3 billion in outlays 
     above the Budget Resolution Baseline, to $22.8 billion in BA 
     and $21.4 billion in outlays. Over the five year period, 
     discretionary spending decreases to $21.2 billion in BA and 
     $21.5 billion in outlays in 2002. The Senate amendment 
     assumes total discretionary spending of $109.0 billion in BA 
     and $108.3 billion in outlays over the five year period.
       The Bipartisan Budget Agreement assumes the President's 
     request of $1.2 billion in both BA and outlays for National 
     Park Service operations, an increase of $66 million in BA and 
     $57 million in outlays above 1997. This is an increase of $25 
     million in BA and $19 million in outlays above in the 1998 
     Budget Resolution Baseline. The Agreement assumes the 
     President's funding request within the National Park Service 
     and the Corps of Engineers for the restoration of the Florida 
     Everglades.
       The Bipartisan Budget Agreement also assumes the 
     President's request of $3.5 billion in BA and $3.3 billion in 
     outlays for EPA's operating programs, an increase of $0.3 
     billion in both BA and outlays above 1997.
       The Bipartisan Budget Agreement assumes the President's 
     request of $41 million in 1998, for National Park Service 
     land acquisition, an increase of $17 million above 1997 ($162 
     million over the five year period). In addition, the 
     Agreement assumes an additional $700 million in BA in 1998 
     and the associated outlays for 1998 through 2001 for high 
     priority Federal land acquisitions and exchanges. The funding 
     will be allocated to function 300 as an allowance exclusively 
     for this purpose.
       In 1997, $1.3 billion was provided for the hazardous waste 
     Superfund operated through the Environmental Protection 
     Agency. The Superfund authorization and the taxes to finance 
     the Superfund trust fund expired in 1994 and 1995, 
     respectively. Increased funding can be accommodated at the 
     President's request of $2.1 billion in 1998 and $8.4 billion 
     over five years if policies can be worked out.
       In order to meet the Bipartisan Budget Agreement's 
     discretionary spending limits, saving will be required from 
     programs in this function. These savings will be determined 
     by the Appropriation Committees.
       Examples of possible reductions are: (1) Forest Service 
     (FS) and Bureau of Land Management (BLM) Wildlife Management: 
     In 1997, approximately $0.6 billion was spent on emergency 
     firefighting for both the FS and BLM. The President's budget 
     does not include the emergency funding but it does provide 
     $0.8 billion in both BA and outlays in base funding. (2) FS 
     construction and reconstruction: The President's budget 
     proposes $0.1 billion in BA and $0.2 billion in outlays, a 
     decrease of $34 million in BA and $24 million in outlays 
     below the 1997 level. (3) Corps of Engineers: The President's 
     budget proposes $3.5 billion for the major programs of the 
     Corps, an increase of $0.2 billion in BA above 1997 and a 
     decrease of $0.1 billion in outlays below 1997. The Senate 
     amendment does not assume the President's proposal for 
     Capital Asset Acquisitions.
       Mandatory spending.--The Senate amendment assumes $1.0 
     billion over the five year period and $2.0 billion over ten 
     years for new mandatory spending for orphan shares at 
     Superfund hazardous waste cleanup sites. Orphan shares are 
     portions of financial liability at Superfund sites allocated 
     to non-Federal parties with limited or no ability to pay. The 
     funds will be reserved for this purpose based on the 
     assumption of a policy agreement on orphan share spending.
       Conference agreement
       The conference agreement reflects the provisions of the 
     Bipartisan Budget Agreement. Because the dollar amounts are 
     virtually identical in the House resolution and the Senate 
     amendment, the House recedes to the Senate with respect to 
     function spending levels.


                       function 350: Agriculture

     Major programs in function
       This function includes programs that intend to promote 
     economic stability in the agriculture sector. Programs in 
     this function include direct assistance and loans to food and 
     fiber producers, and market-information and agriculture 
     research. Producers are assisted with production flexibility 
     contract payment, crop insurance, non-recourse crop loans, 
     operating loans and export promotion.
       House resolution

                                            FUNCTION 350: AGRICULTURE                                           
                                            [In millions of dollars]                                            
----------------------------------------------------------------------------------------------------------------
                                                        1997                                                    
                                                        est.      1998      1999      2000      2001      2002  
----------------------------------------------------------------------------------------------------------------
Budget authority....................................    11,819    13,133    12,790    12,215    10,978    10,670
Outlays.............................................     9,910    11,892    11,294    10,664     9,494     9,108
----------------------------------------------------------------------------------------------------------------

       The House resolution assumes $13.1 billion in budget 
     authority [BA] and $11.9 billion in outlays for fiscal year 
     1998. Over the 5-year from 1998 through 2002, the House 
     resolution assumes totals of $59.8 billion in BA and $52.5 
     billion in outlays.
       The House resolution assumes that budget authority for 
     discretionary programs will be

[[Page H3377]]

     $4.1 billion in 1998 and total $19.4 billion over the next 5 
     years. Likewise, outlays are estimated to be $4.1 billion in 
     1998 and $19.8 billion over the next 5 years.
       The House resolution makes for assumptions concerning 
     mandatory programs in this function.
       Senate amendment
       Discretionary spending.--Discretionary spending in 1998 for 
     this function would decrease by $0.2 billion in BA and $0.1 
     billion in outlays below the Budget Resolution Baseline, to 
     $4.1 billion in both BA and outlays. Over the five year 
     period, discretionary spending would decrease to $3.8 billion 
     in both BA and outlays in 2002. The Senate amendment assumes 
     total discretionary spending of $19.6 billion in BA and $19.8 
     billion in outlays over the five year period. The aggregate 
     numbers in this function will support the overall level of 
     spending assumed in the Bipartisan Budget Agreement. In order 
     to meet those levels, specific program reductions and freezes 
     may be required beyond the President's request.
       The Senate amendment assumes the President's proposal of 
     $0.2 billion in discretionary funds to reimburse agent's 
     sales commissions and company administrative expenses for 
     private delivery. Private sales agents and insurance 
     companies administer federal crop insurance on the federal 
     government's behalf. In exchange for private delivery, the 
     Department of Agriculture reimburses the private companies. 
     Under current law, reimbursements are paid from the mandatory 
     Federal Crop Insurance Fund and in 1998 and, thereafter, 
     sales commissions are discretionary.
       In order to meet the Bipartisan Budget Agreement's 
     discretionary spending limits, savings will be required from 
     programs in this function. These savings will be determined 
     by the Appropriation Committees.
       Examples of possible reductions include the following: (1) 
     Farm Service Agency (FSA) salaries and expenses: The 
     President's budget proposes $0.7 billion in both BA and 
     outlays in 1998 for salaries and expenses, a decrease of $32 
     million in BA and $30 million in outlays, below the Budget 
     Resolution Baseline. Over the five year period the President 
     proposes to reduce FSA salaries and expenses by $1.1 billion 
     in both BA and outlays. (2) Agriculture Credit Insurance Fund 
     (ACIF): The President's budget proposes $0.3 billion in both 
     BA and outlays for the ACIF in 1998, a decease of $46 million 
     in BA and $40 million in outlays below the Budget Resolution 
     Baseline. (3) Agriculture Research Service (ARS) Buildings 
     and Facilities and Cooperative State Research, Education, and 
     Extension Service Buildings and Facilities (CSREES): The 
     President's budget proposes to terminate CSREES building and 
     facilities and reduce ARS buildings and facilities. The 
     proposal saves $76 million in BA and $4 million in outlays in 
     1998 below the Budget Resolution Baseline. Over five years, 
     this proposal saves $0.5 million in BA and $0.3 million in 
     outlays. (4) Agriculture Research: The President's budget 
     proposes $1.6 billion in both BA and outlays for agriculture 
     research and extension, a reduction of $44 million in BA and 
     $27 million in outlays below the Budget Resolution Baseline.
       Mandatory spending.--Over the five year period mandatory 
     spending decreases from $7.7 billion in 1998 to $5.2 billion 
     in 2002, a decrease of $2.5 billion. The majority of the 
     decrease is associated with a reduction in flexibility 
     contract payments and other policy changes enacted in the 
     1996 Farm Bill. The Senate amendment assumes total mandatory 
     spending of $32.6 billion over the five year period. It does 
     not assume policy changes for mandatory programs in this 
     function.
       Conference agreement
       The conference agreement reflects the provisions of the 
     Bipartisan Budget Agreement. Because the dollar amounts are 
     virtually identical in the House resolution and the Senate 
     amendment, the House recedes to the Senate with respect to 
     function spending levels.


               function 370: commerce and housing credit

     Major programs in function
       Function 370 includes certain discretionary housing 
     programs, such as subsidies for single and multifamily 
     housing in rural areas and mortgage insurance provided by the 
     Federal Housing Administration; net spending by the Postal 
     Service; discretionary funding for commerce programs, such as 
     international trade and exports, science and technology, the 
     periodic census, and small business; and mandatory spending 
     for deposit insurance activities related to banks, thrifts, 
     and credit unions.
       House resolution

                                    FUNCTION 370: COMMERCE AND HOUSING CREDIT                                   
                                            [In millions of dollars]                                            
----------------------------------------------------------------------------------------------------------------
                                                        1997                                                    
                                                        est.      1998      1999      2000      2001      2002  
----------------------------------------------------------------------------------------------------------------
Budget Authority....................................     5,981     9,296    10,127    13,921    15,546    16,902
Outlays.............................................    -9,571     1,769     3,344     8,559    11,601    12,765
----------------------------------------------------------------------------------------------------------------

       The House resolution assumes $9.3 billion in budget 
     authority and $1.8 billion in outlays in fiscal year 1998. 
     Over the 5-year period from 1998 through 2002, the resolution 
     assumes $65.8 billion in BA and $38.0 in outlays.
       The House resolution assumes for discretionary programs 
     $3.1 billion in budget authority and outlays in fiscal year 
     1998. Over the 5-year period, from 1998 to 2002, the House 
     resolution assumes $17.5 billion in BA and $16.9 billion in 
     outlays over 5 years.
       The Federal Housing Administration provides mortgage 
     insurance to Americans who otherwise might not be able to 
     obtain the financing to buy a house. When a home buyer 
     defaults on a federally insured mortgage, the FHA must pay 
     the balance on the mortgage to the lender, and foreclose on 
     the house. By giving the FHA more flexibility to work with 
     homeowners who are in default on their mortgages, costs to 
     the FHA insurance fund can be avoided. The House resolution 
     assumes continuation of current law policy to provide FHA 
     with tools to encourage lenders to forbear for only up to 1 
     year. This would improve the targeting and efficiency of 
     HUD's current program, and allow the FHA homeowners 
     experiencing temporary economic distress to stay in their 
     homes.
       The House resolution assumes shifting to the Postal Service 
     the cost of financing workers compensation benefits for pre-
     1971 postal employees. This produces net savings of $121 
     million over 5 years.
       Senate amendment
       Discretionary spending--Discretionary spending in 1998 for 
     this function would increase by $0.3 billion in BA and 
     outlays over the 1997 level, to $3.1 billion in BA and 
     outlays. By 2002, spending would return approximately to 1997 
     levels of $2.9 billion in BA and $2.7 billion in outlays, 
     after having peaked at $5 billion in BA and $4.6 billion in 
     outlays in 2000 to cover the costs of conducting the 
     decennial census.
       The decennial census requires a level of resources that is 
     an order of magnitude larger than the baseline amounts based 
     on the 1997 appropriation of $0.2 million for the periodic 
     census. The Senate amendment includes sufficient funding over 
     the next five years to conduct the census, and reflects 
     savings from implementing improvements in conducting the 
     census.
       The Bipartisan Budget Agreement provides the President's 
     request for the National Institute of Standards and 
     Technology (NIST), which is an increase of $0.7 billion in 
     budget authority and $0.3 billion in outlays over the Budget 
     Resolution Baseline over the next five years.
       In order to meet the Bipartisan Budget Agreement's 
     discretionary spending limits, savings will be required from 
     programs in this function. These savings will be determined 
     by the Appropriations Committees.
       Following are examples of possible reductions. The 
     President's Budget proposes to operate a group of programs 
     over the next five years at a level of resources generally 
     frozen at the 1997 level, including direct rural multifamily 
     housing loans and associated administrative expenses 
     (actually a 4.5 percent reduction in 1998 compared to 1997), 
     SBA business loans and salaries and expenses, payment for 
     postal subsidies, FHA multifamily housing loan insurance, and 
     salaries and expenses for the International Trade 
     Administration (ITA), salaries and expenses at NIST, the 
     Census Bureau, and the Federal Communications Commission.
       Mandatory spending--The apparent increase in BA and outlays 
     from 1997 to 2002 in the Senate amendment (an $11 billion BA 
     change and a $22.4 billion outlay change) stems not from new 
     policies but from baseline increases in the mandatory 
     programs in this function. The primary component of the 
     baseline increase is the Universal Service Fund, into which 
     telecommunications carriers are required to pay amounts to 
     cover the cost of guaranteeing certain levels of service in 
     rural and high cost areas. These amounts appear as federal 
     revenues on the tax side of the budget, with corresponding 
     spending appearing in this budget function. While the fund 
     has no net impact on the budget, the BA and outlays for the 
     fund grow from $1 billion in 1997 to $12.2 billion in 2002, 
     swamping any changes in other mandatory activities in this 
     function.
       The Treasury pays the Postal Service about $30 million 
     annually for obligations incurred by the federal government 
     before the Postal Service was reorganized and placed off-
     budget in 1971. The Bipartisan Budget Agreement provides for 
     an end to these payments, with the costs shifting to postal 
     rate payers and save the Treasury $0.1 billion over the next 
     five years.
       Conference agreement
       The conference agreement reflects the provisions of the 
     Bipartisan Budget Agreement. Because the dollar amounts are 
     virtually identical in the House resolution and the Senate 
     amendment, the House recedes to the Senate with respect to 
     function spending levels.


                      Function 400: transportation

     Major programs in function
       Function 400 includes ground transportation programs, such 
     as the federal-aid highway program, mass transit operating 
     and capital assistance, rail transportation through AMTRAK 
     and other rail programs; air transportation through the 
     Federal Aviation Administration (FAA) Airport Improvement 
     Program (AIP), aviation facilities and equipment programs, 
     and operation of the air traffic control system; water 
     transportation through the Coast Guard and the Maritime 
     Administration; and related transportation support 
     activities.

[[Page H3378]]

       House resolution

                                          Function 400: Transportation                                          
                                            [in millions of dollars]                                            
----------------------------------------------------------------------------------------------------------------
                                                        1997                                                    
                                                        est.      1998      1999      2000      2001      2002  
----------------------------------------------------------------------------------------------------------------
Budget Authority....................................    43,869    46,402    46,556    47,114    48,135    49,184
Outlays.............................................    39,544    40,933    41,256    41,357    41,303    41,247
----------------------------------------------------------------------------------------------------------------

       The House resolution assumes budget authority of $46.4 
     billion for fiscal year 1998, $49.2 billion for fiscal year 
     2002, and $237.4 billion for the 5-year period of fiscal 
     years 1998-2002. The House resolution assumes outlays of 
     $40.9 billion for fiscal year 1998, $41.2 billion for fiscal 
     year 2002, and $206.1 billion for the 5-year period of fiscal 
     years 1998-2002.
       The House resolution assumes budget authority for 
     discretionary programs of $13.6 billion for fiscal year 1998, 
     $15.3 billion for fiscal year 2002, and $73.7 billion for the 
     5-year period of fiscal years 1998-2002. The House resolution 
     assumes outlays of $38.3 billion for fiscal year 1998, $39.4 
     billion for fiscal year 2002, and $195.3 billion for the 5-
     year period of fiscal years 1998-2002.
       In mandatory spending, the House resolution assumes the 
     permanent extension of vessel tonnage fees.
       Senate amendment
       Discretionary spending.--Discretionary spending in this 
     function is a priority in the Bipartisan Budget Agreement. 
     Discretionary spending in 1998 for Function 400 would 
     decrease by $1.1 billion in BA, while outlays would increase 
     by $0.6 billion from the Budget Resolution baseline, 
     resulting in total 1998 spending of $13.6 billion in BA and 
     $38.3 billion in outlays. Over the five year period, total 
     discretionary spending would decrease by $4.1 billion in BA 
     and $2.3 billion in outlays by 2002 below the Budget 
     Resolution baseline.
       The Senate amendment assumes spending of all estimated 
     Highway Trust Fund tax receipts between 1998 and 2002. Yearly 
     allocations of Highway Trust Fund spending would be equal to 
     the current estimates of tax receipts to the Highway Trust 
     Fund, with a one-year delay. The proposal would increase 
     total highway spending from its current level of $20.8 
     billion to $23.1 billion in 2002.
       The Senate amendment assumes the Budget Resolution baseline 
     for FAA Operations, Facilities and Equipment, and Research, 
     Engineering, and Development programs. The Senate amendment 
     would provide for these programs to grow from their 1997 
     level of $7.1 billion to $8.3 billion in 2002. The Senate 
     amendment also assumes a freeze in the Airport Improvement 
     Program (AIP), through 2002, at its current level of $1.46 
     billion. The President's budget had provided for AIP to be 
     reduced to $1.0 billion in 1998 and frozen at this figure 
     through 2002.
       The Senate amendment assumes the Budget Resolution baseline 
     for the Federal Transit Administration (FTA). This assumption 
     would allow for total mass transit outlays to rise from their 
     current level of $4.3 billion to $4.5 billion in 2002.
       The Senate amendment assumes the Budget Resolution baseline 
     for Amtrak. This proposal would allow Amtrak spending to rise 
     from its current level of $0.8 billion to $0.9 billion in 
     2002.
       In order to meet the Bipartisan Budget Agreement's 
     discretionary spending limits, savings will be required from 
     programs in this function. These savings will be determined 
     by the Appropriations Committee.
       Examples of possible reductions include: (1) The Department 
     of Transportation Office of the Secretary accounts, maritime, 
     and NASA Function 400 aeronautical facilities. (2) Coast 
     Guard. Spending could be reduced by $0.8 billion over the 
     five year period below the Budget Resolution baseline. Most 
     of this reduction is from the President's proposal to freeze 
     Coast Guard operations at $2.4 billion from 1998 through 
     2002.
       Mandatory spending.--The Senate amendment provides for an 
     increase in contract authority for highways, highway safety, 
     and mass transit above the levels provided in 1997. Total 
     highway and highway safety contract authority would rise from 
     its current level of $22.6 billion to $25.1 billion in 2002. 
     For mass transit, the Senate amendment would increase 
     contract authority from its current level of $4.8 billion to 
     $5.5 billion in 2002.
       The Bipartisan Budget Agreement assumes an extension of 
     these fees, set to expire September 30, 1998, raising $0.2 
     billion over 1999-2002.
       Conference agreement
       The conference agreement reflects the provisions of the 
     Bipartisan Budget Agreement. Because the dollar amounts are 
     virtually identical in the House resolution and the Senate 
     amendment, the House recedes to the Senate with respect to 
     function spending levels.


            function 450: community and regional development

     Major programs in function
       This function includes funding for community and regional 
     development and disaster relief. The major programs are 
     administered through a variety of agencies including the 
     Department of Housing and Urban Development (HUD), 
     Appalachian Regional Commission (ARC), Tennessee Valley 
     Authority (TVA), Economic Development Administration (EDA), 
     Bureau of Indian Affairs (BIA), Federal Emergency Management 
     Agency (FEMA), and the Department of Agriculture (USDA).
       House resolution

                                FUNCTION 450: COMMUNITY AND REGIONAL DEVELOPMENT                                
                                            [In millions of dollars]                                            
----------------------------------------------------------------------------------------------------------------
                                                        1997                                                    
                                                        est.      1998      1999      2000      2001      2002  
----------------------------------------------------------------------------------------------------------------
Budget Authority....................................    10,199     8,768     8,489     7,810     7,764     7,790
Outlays.............................................    12,137    10,387    10,902    10,986    11,350     8,429
----------------------------------------------------------------------------------------------------------------

       The House resolution assumes $8.8 billion in budget 
     authority [BA] and $10.4 billion in outlays for fiscal year 
     1998. Over the 5-year period, 1998 through 2002, the House 
     resolution assumes $40.6 billion in BA and $52.1 in outlays.
       The House resolution assumes $8.3 billion in discretionary 
     budget authority [BA] and $10.0 billion in outlays in fiscal 
     year 1998. Over the 5-year period, it assumes $39.1 in BA and 
     $51.6 in outlays. The resolution assumes the Community 
     Development Financial Institution [CDFI] Fund as a domestic 
     discretionary priority, as defined in the Bipartisan Budget 
     Agreement.
       The House resolution makes no assumptions concerning 
     mandatory spending in this function.
       Senate amendment
       Discretionary spending.--Discretionary spending in 1998 for 
     this function would decrease by $1.3 billion in BA and $1.0 
     billion in outlays below the Budget Resolution Baseline, to 
     $8.3 billion in BA and $10.0 billion in outlays. Over the 
     five year period, discretionary spending would decrease to 
     $7.6 billion in BA and $8.4 billion in outlays in 2002. The 
     Senate amendment assumes total discretionary spending of 
     $39.1 billion in BA and $51.6 billion in outlays over the 
     five year period. The aggregate numbers in this function will 
     support the overall level of spending assumed in the Budget 
     Agreement. In order to meet those levels, specific program 
     reductions and freezes may be required beyond the President's 
     request.
       The Senate amendment is $8.4 billion in BA and $1.0 billion 
     in outlays below the President's 1998 request. The majority 
     of the difference is due to the President's request of $5.8 
     billion for the emergency contingency fund and the 
     President's $2.4 billion request for FEMA disaster relief. 
     The Senate amendment does not assume the emergency 
     contingency fund. The 1997 emergency supplemental in the 
     Senate-passed bill and the House-reported bill includes the 
     President's request of $2.4 billion for FEMA disaster relief, 
     thus the Senate amendment does not assume the President's 
     FEMA, disaster relief request of $2.4 billion in 1998. The 
     Senate amendment does assume base non-emergency funding for 
     FEMA disaster relief as requested by the President.
       The Bipartisan Budget Agreement assumes the President's 
     request of $125 million in BA and $63 million in outlays for 
     the community development financial institution fund.
       The Bipartisan Budget Agreement assumes the President's 
     request of $0.8 billion for Tribal Priority Allocations, an 
     increase of $0.1 billion over 1997. This program provides 
     funds directly to tribes for tribal government operations and 
     basic services such as law enforcement, child protection, 
     education and road maintenance. Funding is also included in 
     functions 300 and 500.
       In order to meet the Bipartisan Budget Agreement's 
     discretionary spending limits, savings will be required from 
     programs in this function. These savings will be determined 
     by the Appropriation Committees.
       Examples of possible reductions include the following: (1) 
     Community Development Block Grants (CDBG): The President's 
     budget proposes $4.6 billion in BA and $4.7 billion in 
     outlays, a decrease of $115 million in BA below the Budget 
     Resolution Baseline and is essentially at a freeze in 
     outlays. (2) Appalachian Regional Commission: The President's 
     budget proposes $165 million in BA and $185 million in 
     outlays, an increase of $5 million above 1997 in BA and a 
     decrease of $9 million in outlays below 1997. In 1999 through 
     2002, the President's budget proposes $70 million per year.
       Mandatory spending.--The Senate amendment assumes no 
     changes in mandatory programs in this function.
       Conference agreement
       The conference agreement reflects the provisions of the 
     Bipartisan Budget Agreement. Because the dollar amounts are 
     virtually identical in the House resolution and the Senate 
     amendment, the House recedes to the Senate with respect to 
     function spending levels.


    function 500: education, training, employment & social services

     Major Programs in Function
       This function includes those activities designed to promote 
     the acquiring of knowledge and skills, to provide social 
     services for needy individuals, and for research directly 
     related to these program areas. In general, the activities 
     funded by this function are administered through the 
     Departments of Labor, Health and Human Services, and 
     Education.
       House resolution

                       FUNCTION 500: EDUCATION, TRAINING, EMPLOYMENT, AND SOCIAL SERVICES                       
                                            [In millions of dollars]                                            
----------------------------------------------------------------------------------------------------------------
                                                        1997                                                    
                                                        est.      1998      1999      2000      2001      2002  
----------------------------------------------------------------------------------------------------------------
Budget Authority....................................    54,199    60,020    60,450    61,703    62,959    63,339

[[Page H3379]]

                                                                                                                
Outlays.............................................    50,466    56,062    59,335    60,728    61,931    62,316
----------------------------------------------------------------------------------------------------------------

       The House resolution provides $60.0 billion in budget 
     authority for function 500 in fiscal year 1998 and $56.1 
     billion in outlays. Over 5 years, the resolution provides 
     $308.5 billion in budget authority and $300.4 billion in 
     outlays.
       For discretionary programs in fiscal year 1998, this House 
     resolution assumes $46.7 billion in budget authority [BA] and 
     $43.2 billion in outlays. Over 5 years, it assumes $239.3 
     billion in BA and $232.7 billion in outlays.
       The resolution assumes funding levels sufficient to meet 
     the education priorities of Congress and the President. Among 
     these priorities are Education Reform--including the 
     Technology Literacy Challenge Fund--Bilingual and Immigrant 
     Education, Pell Grant ($300 increase in 1998 maximum award 
     amount to $3,000), child literacy initiatives consistent with 
     the goals and the concepts of the President's America Reads 
     Program, Head Start and Training and Employment Services--
     including Job Corps.
       The largest mandatory program in Function 500 is the 
     student loan program. The House resolution assumes savings of 
     $1.8 billion in student loans by reducing excess guaranty 
     agency reserves in the guaranteed loan program and reducing 
     administrative costs in the direct loan program. Students 
     will not be affected by these changes. The same number of 
     loans will be available to students at no additional cost to 
     the students or their parents. The volume of student loans 
     will grow from $27 billion in 1997 to $36 billion in 2002. 
     The number of student loans will increase from 7,463,000 to 
     8,605,000.
       The specific policy assumptions are as follows:
       Reduce Section 458 (Direct Loan Administrative Account). 
     The plan saves $603 million in outlays from the 
     administration of the Direct Loan program. The proposal does 
     not cap the direct lending.
       Eliminate $10 Direct Loan Fee. The plan eliminates the $10-
     per-loan subsidy to schools and alternate originators 
     participating in the direct loan program.
       Reclaim Excess Guaranty Agency Reserves. This is a modified 
     version of the President's proposal to recall excess guaranty 
     agency reserves. This proposal would recall $1 billion and 
     maintain 98 percent reinsurance levels for guaranty agencies. 
     The administration's proposal would recall $2.5 billion and 
     have the Federal Government pay 100 percent of all default 
     claims through direct Federal payments.
       Senate amendment
       Discretionary spending.--Discretionary spending in this 
     function is a priority in the Bipartisan Budget Agreement. 
     Discretionary spending in 1998 for this function would 
     increase by $4.3 billion in BA and $2.8 billion in outlays 
     over the 1997 level, to $46.7 billion in BA and $43.2 billion 
     in outlays in 1998. By 2002, discretionary spending would 
     grow by $6.8 billion in BA and $8.2 billion in outlays over 
     the 1997 level, for a total of $49.2 billion in BA and $48.6 
     billion in outlays in 2002. Compared to the Budget Resolution 
     Baseline, spending in this function would increase by $9.7 
     billion in BA and $5.8 billion in outlays over the next five 
     years.
       In order to work toward the statutory federal goal of 
     providing 40 percent of the national average per pupil 
     expenditure per disabled child, the Senate amendment assumes 
     a $5 billion increase in Special Education over the next five 
     years.
       Pell Grants are a critical form of student financial 
     assistance in that they target students from low income 
     families. The Bipartisan Budget Agreement supports the 
     President's request for an additional $8.6 billion for this 
     program over the next five years, including bringing the 
     maximum grant from $2,700 to $3,000.
       For Head Start, a program which provides pre-school 
     programming for disadvantaged children, the Bipartisan Budget 
     Agreement provides for the President's request which calls 
     for an additional $2.7 billion over the next five years.
       The Bipartisan Budget Agreement provides funding for 
     literacy programs consistent with the goals and concepts of 
     the President's America Reads program.
       The Bipartisan Budget Agreement provides, as a priority 
     item, the President's request for the Technology Literacy 
     Challenge Fund, which will provide $946 million over the next 
     four years for teacher training; updated computer equipment 
     in classrooms; Internet connections; and other online 
     learning resources. The program is scheduled to sunset in 
     2001.
       Bipartisan Budget Agreement provides, as a priority item, 
     $446 million increase over the next five years for Bilingual 
     and Immigrant Education programs to help limited English-
     proficient students and local education agencies with large 
     numbers of immigrant students.
       The Bipartisan Budget Agreement, according to the 
     President's Budget, provides for growth at the rate of 
     inflation for Job Corps, which provides basic education, 
     training, work experience, and other support through 
     primarily residential settings.
       In order to meet the Bipartisan Budget Agreement's 
     discretionary spending limits, savings will be required from 
     programs in this function. These savings will be determined 
     by the Appropriation Committees.
       Examples of possible reductions include the following: (1) 
     Terminate Public Broadcasting Facilities. Funding for this 
     program, which provides grants to noncommercial entities for 
     the planning and construction of broadcasting facilities 
     throughout the United States, would be terminated in the 
     President's Budget. (2) School Improvement Programs. The 
     President's Budget proposes to terminate the Innovative 
     Program Strategies Grant Program. (3) Children and Families 
     Services Programs. The President's Budget assumes 
     reductions totaling nearly $1.4 billion over the next five 
     years in the following programs: Community Services Block 
     Grant, Social Services Research and Demonstration, 
     termination of Community Services Discretionary 
     Activities, termination of National Youth Sports, and 
     termination of the Community Food and Nutrition program. 
     (4) Unemployment Trust Fund and Service Operations. 
     Appropriations for this account could be reduced by 
     replacing federal funds through the enactment of a new 
     alien labor certification fee that was proposed in the 
     President's Budget.
       Mandatory spending.--A significant source of mandatory 
     funding within Function 500 includes the student loan 
     programs. The subsidy for student loans is expected to grow 
     from $3.9 billion in 1998 to $4.1 billion in 2002. This 
     federal subsidy will support $28.8 billion in student loan 
     volume in 1998, growing to $35.8 billion in 2002.
       Proposed savings in student loan programs provided in the 
     Bipartisan Budget Agreement would not increase costs, reduce 
     benefits, or limit access to loans for students and their 
     families. The specific policies assumed in the Bipartisan 
     Budget Agreement are intended to achieve an equitable balance 
     in savings between the direct student loan program and the 
     guaranteed student loan program.
       The Bipartisan Budget Agreement provides for total savings 
     in student loan programs of $1.8 billion over the next five 
     years. Annual budget authority levels for the Section 458 
     Funds for Administrative Expenses account of the Federal 
     Direct Student Loan Program, would be reduced for a five year 
     savings of $603 million. It would eliminate the $10 per loan 
     federal payment to schools and alternate originators who make 
     direct loans. Savings of $160 million over five years. This 
     proposal would return to the federal government $1 billion in 
     excess guarantee agency reserves which are not necessary for 
     guarantee agencies to carry out their essential functions, 
     saving $1 billion over five years. The Bipartisan Budget 
     Agreement would eliminate the mandatory vocational education 
     appropriation under the Smith-Hughes Act of 1918, as is 
     proposed in the President's Budget, for a savings of $29 
     million over five years.
       Conference agreement
       The conference agreement reflects the provisions of the 
     Bipartisan Budget Agreement. Because the dollar amounts are 
     virtually identical in the House resolution and the Senate 
     amendment, the House recedes to the Senate with a technical 
     adjustment with respect to function spending levels. The 
     Conferees note that the past two budget resolutions have 
     included provisions related to the costs of originating and 
     servicing Direct Loans as well as FFELP Loans. This 
     conference agreement assumes current law provisions related 
     to these programs. The Conferees believe further discussion 
     of scorekeeping of all federal and direct guarantee programs 
     is necessary.


                          function 550: health

     Major programs in function
       This function covers all health spending except that for 
     Medicare, military health, and veterans' health. The major 
     programs include Medicaid, health benefits for federal 
     retirees, the National Institutes of Health, the Food and 
     Drug Administration, the Health Resources and Services 
     Administration, the Indian Health Service, the Centers for 
     Disease Control, and the Substance Abuse and Mental Health 
     Services Administration.
       House resolution

                                              FUNCTION 550: HEALTH                                              
                                            [In millions of dollars]                                            
----------------------------------------------------------------------------------------------------------------
                                                        1997                                                    
                                                        est.      1998      1999      2000      2001      2002  
----------------------------------------------------------------------------------------------------------------
Budget Authority....................................   125,271   137,799   144,968   154,068   163,412   172,171
Outlays.............................................   127,421   137,767   144,944   153,947   163,135   171,727
----------------------------------------------------------------------------------------------------------------

       For fiscal year 1998, the House resolution assumes total 
     function 550 budget authority [BA] of $137.8 billion and 
     outlays of $137.8 billion. Over the 5-year period 1998-2002, 
     it assumes budget authority of $772.4 billion and outlays or 
     $771.5 billion.
       The House resolution provides $24.9 billion in budget 
     authority and $24.6 billion in outlays in fiscal year 1998 
     for the Federal Government's discretionary health programs. 
     Over the 5-year period 1998-2002, for function 550 
     discretionary programs it assumes budget authority of $122.8 
     billion and outlays of $123.2 billion.
       Under the Medicaid reform assumed in the House resolution, 
     Medicaid outlays would be $105.3 billion in fiscal year 1998 
     and $604.7 billion over 5 years. There would be no per capita 
     cap on Federal Medicaid spending. The

[[Page H3380]]

     plan calls for $13.6 billion in Federal Medicaid net savings 
     over 5 years. Savings are derived from reduced 
     disproportionate share hospital payments and flexibility 
     provisions.
       Key components of the Medicaid reform assumptions are the 
     following:
       Disproportionate Share Hospital Payments. Medicaid 
     disproportionate share hospital [DSH] payments are additional 
     payment adjustments made to hospitals serving a relatively 
     large (disproportionate) volume of Medicaid or low-income 
     patients. In fiscal year 1997, estimated Medicaid DSH 
     payments are $9.8 billion. DSH payments vary greatly across 
     the States, with some spending more than $1,000 per low-
     income resident, and others spending much less. This proposal 
     would achieve Medicaid savings through DSH reform.
       State Medicaid Flexibility. The plan incorporates an 
     unprecedented increase in State Medicaid flexibility. Key 
     elements include provisions to allow States more flexibility 
     in managing the Medicaid program, including repeal of the 
     Boren Amendment, converting managed care and home/community 
     based care waiver process to State Plan Amendment, and 
     elimination of unnecessary administrative requirements.
       Net Medicaid savings include $919 million for a higher 
     Federal Medicaid match rate for the District of Columbia; 
     $250 million for an inflation adjustment for programs in 
     Puerto Rico and other territories; $1.5 billion to cover 
     increased Medicaid cost under existing law due to the shift 
     of home health care from Part A to Part B of Medicare and due 
     to the maintenance of the Medicare Part B premium at 25 
     percent; and $1.5 billion to ease the impact of increasing 
     Medicare premiums on low-income beneficiaries.
       The resolution assumes no per-capita cap limits.
       Additional components of mandatory spending include the 
     following:
       Children's Health Insurance Initiatives. Under the 
     Bipartisan Budget Agreement, Federal financial support to 
     increase health insurance coverage for children who are 
     uninsured will be provided. The resolution assumes that 
     authorizing committees will draft legislation to use the 
     Federal funds assumed in this resolution in the most cost-
     effective manner possible. Options for their consideration 
     would include: (a) modifications to existing programs, such 
     as Medicaid, including outreach activities to identify and 
     enroll eligible children and providing 12-month continuous 
     eligibility; and also to restore Medicaid for current 
     disabled children losing SSI because of the new, more strict 
     definitions of childhood eligibility; (b) a capped mandatory 
     spending program, such as grants to the States; a combination 
     of (a) and (b); or other approaches. The resolution assumes 
     that $16 billion will be spent over the next 5 years to 
     provide up to 5 million additional children with health 
     insurance coverage by 2002. These resources will be used in 
     the most cost-effective manner possible to expand coverage 
     and services for low-income and uninsured children with a 
     goal of up to 5 million currently uninsured children being 
     served. These funds may not be used to decrease required 
     savings.
       Senate amendment
       Discretionary spending.--The Senate amendment provides 
     discretionary spending for this function in 1998 of $24.9 
     billion in BA and $24.6 billion in outlays. Compared to 1997, 
     BA is $0.1 billion lower, and outlays are $0.8 billion 
     higher. Over five years, discretionary spending in this 
     function is $13.2 billion in BA and $10.0 billion in outlays 
     below the Budget Resolution Baseline. Discretionary spending 
     is $2.2 billion in BA and $1.4 billion in outlays below a 
     five year freeze baseline. The Senate amendment assumes the 
     National Institutes of Health will be given priority in terms 
     of funding levels throughout the five year period.
       In order to meet the Bipartisan Budget Agreement's 
     discretionary spending limits, savings will be required in 
     programs in this function. These savings will be determined 
     by the Appropriations Committees. The following are examples 
     of possible reductions. The President's proposals to reduce 
     funding for Health Professions and General Departmental 
     Management; and reductions in funding for the Agency for 
     Health Care Policy and Research.
       Mandatory spending.--The Senate amendment includes net 
     Medicaid savings of $13.6 billion over five years. Net 
     Medicaid savings in the Senate amendment include a higher 
     match for D.C., an inflation adjustment for programs in 
     Puerto Rico and other territories, Part B premium 
     interactions, and $1.5 billion to ease the impact of 
     increasing Medicare premiums on low-income beneficiaries. The 
     $13.6 billion in Medicaid savings do not reflect the health 
     care investments for children's coverage, protections for 
     legal immigrants under welfare reform, or the extension of 
     veterans' Medicaid income protections. The Senate amendment 
     includes savings derived from reduced disproportionate share 
     payments and flexibility provisions. The Senate amendment 
     includes provisions to allow States more flexibility in 
     managing the Medicaid program, including repeal of the Boren 
     amendment, converting current managed care and home/
     community-based care waivers to State Plan Amendment, and 
     elimination of unnecessary administrative requirements.
       The Senate amendment $16 billion over five years (to 
     provide up to 5 million additional children with health 
     insurance coverage by 2002). The funding could be used for 
     one or both of the following, and for other possibilities if 
     mutually agreeable: (1) Medicaid, including outreach 
     activities to identify and enroll eligible children and 
     providing 12-month continuous eligibility; and also to 
     restore Medicaid for current disabled children losing SSI 
     because of the new, more strict definition of childhood 
     eligibility; and (2) A program of capped mandatory grants to 
     States to finance health insurance coverage for uninsured 
     children. The resources will be used in the most cost-
     effective manner possible to expand coverage and services for 
     low-income and uninsured children with a goal of up to 5 
     million currently uninsured children being served.
       Conference agreement
       The conference agreement reflects the provisions of the 
     Bipartisan Budget Agreement. Because the dollar amounts are 
     virtually identical in the House resolution and the Senate 
     amendment, the House recedes to the Senate with respect to 
     function spending levels.


                         function 570: medicare

     Major programs in function
       This function includes only the Medicare program. Medicare 
     pays for medical services for 38.1 million senior citizens, 
     disabled workers, and persons with end-stage renal disease. 
     Medicare is administered by the Health Care Financing 
     Administration, part of the Department of Health and Human 
     Services.
       House resolution

                                             FUNCTION 570: MEDICARE                                             
                                            [in millions of dollars]                                            
----------------------------------------------------------------------------------------------------------------
                                                        1997                                                    
                                                        est.      1998      1999      2000      2001      2002  
----------------------------------------------------------------------------------------------------------------
Budget Authority....................................   190,792   201,620   212,073   225,540   239,636   251,548
Outlays.............................................   191,266   201,764   211,548   225,537   238,781   250,769
----------------------------------------------------------------------------------------------------------------

       The House resolution assumes that spending for this 
     function total $201.6 billion in budget authority and $201.8 
     billion in outlays for fiscal year 1998. The House resolution 
     assumes that spending for this function total $1,130.4 
     billion in budget authority and $1,128.4 billion in outlays 
     for fiscal years 1998-2002.
       Function 570 discretionary spending consists of the 
     administrative costs of the Medicare Part A and Part B 
     programs. The House resolution assumes that discretionary 
     spending for this function total $2.7 billion in budget 
     authority and $2.7 billion in outlays for fiscal year 1998. 
     The House resolution assumes that discretionary spending for 
     this function total $13.4 billion in budget authority and 
     $13.3 billion in outlays for fiscal years 1998-2002.
       In accordance with the budget agreement between the 
     administration and the congressional negotiators, this House 
     resolution assumes the following:
       Reduce projected Medicare spending by $115 billion over 5 
     years;
       Extend the solvency of the Part A Trust Fund for at least 
     10 years through a combination of savings and structural 
     reforms (including the home health reallocation);
       Structural reforms will include provisions to give 
     beneficiaries more choices among competing health plans, such 
     as provider sponsored organizations and preferred provider 
     organizations;
       The Medicare program reforms provide beneficiaries with 
     comparative information about their options, such as now 
     provided Federal employees and annuitants in the FEHB 
     program;
       Maintain the Part B premium at 25 percent of program costs 
     and phase in over 7 years the inclusion in the calculation of 
     the Part B premium the portion cost of home health 
     expenditures reallocated to Part B;
       Reform managed care payment methodology to address 
     geographic disparities that has limited HMO access in rural 
     areas;
       Reform payment methodology by establishing prospective 
     payment systems for areas such as home health providers, 
     skilled nursing facilities, and outpatient departments; and
       Funding for new health benefits including: (1) expanded 
     mammography coverage; (2) coverage for colorectal screenings; 
     (3) coverage for diabetes self-management; and (4) higher 
     payments to providers for preventive vaccinations to the 
     extent it will lead to greater use by beneficiaries. Invest 
     $4 billion over 5 years (and $20 billion over 10 years) to 
     limit beneficiary copayments for outpatient services, unless 
     there is a more cost-effective way to provide such services 
     to beneficiaries as mutually agreed.
       Senate amendment
       Discretionary spending.--The Senate amendment assumes $2.7 
     billion in BA and outlays for discretionary spending in this 
     function in 1998, which is $0.1 billion higher in BA compared 
     to 1997 and essentially a freeze in outlays. Over five years, 
     discretionary spending in this function is $1.5 billion in BA 
     and $1.4 billion in outlays below the Budget Resolution 
     Baseline and $0.4 billion in BA and outlays above a five year 
     discretionary freeze.
       Mandatory spending.--Under current law, net Medicare 
     mandatory spending is estimated to grow from $188.6 billion 
     in 1997 to $288.1 billion in 2002, for an average annual

[[Page H3381]]

     growth rate of 8.8 percent. On a per capita basis, spending 
     is expected to increase from $4,949 in 1997 to $7,114 in 
     2002, for a 7.5 percent average annual growth rate.
       The Bipartisan Budget Agreement includes a reduction of 
     projected Medicare spending by $115 billion over five years, 
     and by an estimated $434 billion over ten years. As well as 
     an extension of solvency of the Part A Trust Fund for at 
     least 10 years through a combination of savings and 
     structural reforms (including the home health reallocation). 
     Under the agreement, net Medicare spending will reach $248.1 
     billion in 2002, for an average annual growth rate of 5.6%. 
     On a per capita basis, spending will reach $6,127 in 2002, 
     for an average annual growth rate of 4.4%.
       Structural reforms, in the Bipartisan Budget Agreement will 
     include provisions to give beneficiaries more choices among 
     competing private insurance options, such as provider 
     sponsored organizations and preferred provider organizations. 
     The Medicare program reforms will provide beneficiaries with 
     comparative information about their options, such as 
     now provided Federal employees and annuitants in the FEHB 
     program. These proposals are similar to reforms sponsored 
     by Senator Gregg, Senator Wyden, and others.
       The Bipartisan Budget Agreement maintains the Part B 
     premium permanently at 25 percent of program costs and phase 
     in over seven years the inclusion in the calculation of the 
     Part B premium the portion of home health expenditures 
     reallocated to Part B. It reforms managed care payment 
     methodology to address geographic disparities. It also 
     reforms payment methodology by establishing prospective 
     payment systems for areas such as home health providers, 
     skilled nursing facilities, and outpatient departments.
       Funding for new health benefits, in the Bipartisan Budget 
     Agreement includes: (1) expanded mammography coverage; (2) 
     coverage for colorectal screenings; (3) coverage for diabetes 
     self-management; and (4) higher payments to providers for 
     preventive vaccinations to the extent it will lead to greater 
     use by beneficiaries. Invest $4 billion over five years (and 
     $20 billion over ten years) to limit beneficiary copayments 
     for outpatient services, unless there is a more cost-
     effective way to provide such services to beneficiaries as 
     mutually agreed.
       Conference agreement
       The conference agreement reflects the provisions of the 
     Bipartisan Budget Agreement. Because the dollar amounts are 
     virtually identical as the House resolution and the Senate 
     amendment, the House recedes to the Senate with respect to 
     function spending levels.


                     Function 600: INCOME SECURITY

     Major programs in function
       Function 600, Income Security, funds a broad range of 
     programs including federal retirement programs, the major 
     cash and in-kind welfare programs, housing programs and 
     nutrition programs. These programs are administered by 
     several agencies and departments including the Department of 
     Health and Human Services, the Office of Personnel 
     Management, the Social Security Administration, the 
     Department of Housing and Urban Development and the 
     Department of Agriculture.
       House resolution

                                          FUNCTION 600: INCOME SECURITY                                         
                                            [In millions of dollars]                                            
----------------------------------------------------------------------------------------------------------------
                                                        1997                                                    
                                                        est.      1998      1999      2000      2001      2002  
----------------------------------------------------------------------------------------------------------------
Budget Authority....................................   228,802   239,032   254,090   269,566   275,145   286,945
Outlays.............................................   237,822   247,758   258,064   268,161   277,264   285,239
----------------------------------------------------------------------------------------------------------------

       The House resolution assumes $239.0 billion in budget 
     authority [BA] and $247.8 billion in outlays for fiscal year 
     1998. Over the 5-year period, from 1998 through 2002, the 
     resolution assumes a total of $1.3 trillion in BA and $1.4 
     trillion in outlays.
       The House resolution assumes that budget authority for 
     discretionary programs will be $32.9 billion in 1998 and 
     total $184.7 over the next 5 years. Likewise, outlays are 
     estimated to be $41.3 billion in 1998 and $206.2 billion over 
     the next 5 years. Included in these figures is the assumption 
     that the requested level in the President's budget ($89 
     million) is provided for Unemployment Insurance [UI] 
     integrity activities in addition to continuing integrity 
     activities already funded in the base UI administrative 
     grants to obtain these savings.
       The present Section 8 Housing program will require large 
     increases in resources just to maintain the system as it is 
     now structured. The House resolution assumes adequate funding 
     so these obligations can be met. This will entail renewing 
     contracts on almost two million apartments for 1998 alone. By 
     doing so, the Federal Government will be able to continue to 
     provide assistance to those tenants who now receive it. The 
     nature of the problem over time worsens, and long term 
     structural reforms are needed. The House resolution assumes 
     the maintenance of Section 8 assisted housing units at the 
     1997 level. Though this will entail an increase in resources, 
     the resolution assumes this additional funding for renewals 
     will not be used for a net increase in subsidized apartments, 
     except for assistance extended to tenants displaced by the 
     demolition of a dilapidated building or for other reasons. 
     The House resolution also anticipates reforms will be passed 
     by the House Banking Committee allowing rents on Section 8 
     projects to be reduced to market levels by reducing mortgages 
     on many of these projects. Since these projects have 
     federally insured mortgages reducing the rents associated 
     with subsidized apartments, mortgage restructuring is 
     essential to avert widespread defaults. The House resolution 
     recognizes the need to address concerns related to the tax 
     consequences of reducing many of these mortgages. When 
     reducing the mortgage amount, many project owners may face 
     large tax liabilities. Also, there may be a need for reforms 
     of the bankruptcy code related to these particular projects. 
     The resolution assumes the necessary committees of 
     jurisdiction will work together to produce the appropriate 
     legislative language.
       The House resolution assumes several modifications to the 
     Personal Responsibility and Work Opportunity Act of 1996, 
     welfare reform enacted last year by Congress and the 
     President. It restores eligibility for Supplemental Security 
     Income [SSI] disability and Medicaid benefits for those 
     noncitizens who entered the United States prior to August 23, 
     1996, or who entered after that date but were enrolled in the 
     program by June 1, 1997. These individuals will be eligible 
     to receive SSI disability benefits if they are now disabled, 
     or if they become disabled in the future. The House 
     resolution also assumes lengthening the period during which 
     refugees and asylees may qualify for public benefits from 5 
     to 7 years after attaining their immigration status. But the 
     balanced budget plan retains the ban on 
     noncitizen eligibility for SSI benefits for nondisabled 
     noncitizens, and for all noncitizens who entered the 
     country after August 23, 1996 and who were not enrolled by 
     June 1, 1997. Under the House resolution, public benefits 
     remain available to noncitizens who have worked in the 
     United States and paid taxes for at least 10 years, or who 
     are veterans of the U.S. military or dependents of 
     veterans, in addition to persons who become naturalized 
     citizens.
       The House resolution also creates additional workfare 
     positions within the Food Stamp Employment and Training 
     Program for able-bodied adults subject to new work 
     requirements in the Food Stamp law enacted last year. The 
     plan also permits Governors to offer hardship exemptions--in 
     addition to other waivers under existing law--to 15 percent 
     of those individuals in their States who would otherwise lose 
     Food Stamp benefits because of their failure to comply with 
     the work requirement. Total costs associated with these work 
     slots and additional benefits resulting from them and from 
     the new 15 percent exemptions are $1.5 billion over 5 years.
       Although the balanced budget plan provides additional 
     opportunities for obtaining workfare and adds an additional 
     opportunity for governors to waive the work requirement in 
     certain cases, the basic structure of the work requirement 
     enacted last year remains intact. Under the welfare reform 
     law, able bodied adults with no child care responsibilities 
     must work at least 20 hours per week to continue eligibility 
     for food stamps after they have received 3 months of benefits 
     in any 3-year period. If the individual becomes employed and 
     then is laid off during the period, they become eligible for 
     another 3 months worth of benefits without the required 20 
     hours per week of work activity. Governors may request a 
     waiver of the requirement for persons who live in areas of 
     high unemployment, where jobs are unavailable.
       The balanced budget plan also provides $3 billion in capped 
     mandatory spending through 2001 to the Temporary Assistance 
     to Needy Families [TANF] block grant, allocated to States 
     through a formula and targeted within a state to areas with 
     poverty and unemployment rates at least 20 percent higher 
     than the state average. A share of funds would go to cities/
     counties with large poverty populations commensurate with the 
     share of long-term welfare recipients in those jurisdictions.
       These amounts for low-income restorations may not be used 
     to decrease required savings.
       The balanced budget plan accepts several recommendations 
     made by the administration to address the problem of an 
     estimated $5 billion in annual overpayments within the Earned 
     Income Credit. Among these recommendations are reallocating 
     IRS resources to police the credit, creating demonstration 
     projects in four states that will examine alternative methods 
     for providing the credit, and requiring ``due diligence'' in 
     the preparation of returns claiming the credit on the part of 
     tax preparers. Penalties for deliberate fraud will be 
     increased, and a greater burden of proof will be required of 
     taxpayers claiming the credit who have had their claims 
     denied.

[[Page H3382]]

       Together, these reforms are estimated to generate $124 
     million in savings over the next 5 years.
       The resolution does not assume any delay in the payment of 
     cost-of-living adjustments. Increased agency and employee 
     contributions to the Federal retirement system are discussed 
     in Function 950 and Revenues.
       The House resolution assumes $624 million in Trust Fund 
     savings over 5 years by increasing the ceiling on federal 
     administrative Trust Funds to .5 percent of total covered 
     benefits. A total of $100 million annually in trust fund 
     receipts would still be permitted to flow into state trust 
     fund accounts.
       The balanced budget plan also generates $763 million in 
     savings over 5 years by conducting more benefit integrity 
     activities within the program aimed at detecting fraudulent 
     Unemployment Insurance claims and underpayment of 
     Unemployment Insurance taxes.
       To provide low income Americans with a chance to obtain 
     access to housing, the Federal Government contracts with 
     private project owners to provide affordable rental units. 
     The project owner receives Federal assistance payments as 
     well as rent from the tenant, which is capped at 30 percent 
     of the tenant's income. Currently, some low-income project 
     owners receive subsidies for their units which are in excess 
     of the market rates for comparable buildings. By reducing the 
     annual adjustments the project owner receives each year for 
     these units, the Federal Government can obtain significant 
     savings.
       This proposal is an extension of current law set to expire 
     at the end of fiscal year 1997. It would reduce the annual 
     adjustment for projects whose rents are currently above 120 
     percent of the fair market rent. It would also reduce the 
     annual adjustment for those apartments where there has been 
     no tenant turnover. The resolution assumes these reforms 
     should be made permanent starting in fiscal year 1999.
       Senate amendment
       Discretionary spending.--Discretionary spending in 1998 for 
     this function would increase by $6.3 billion in BA and $0.4 
     billion in outlays over the 1997 level, to $32.9 billion in 
     BA and $41.3 billion in outlays. Comparing 1997 levels to 
     those in 2002 under the reported resolution, spending would 
     increase by $13.0 billion in BA (because of the requirements 
     of additional BA to renew expiring section 8 housing 
     contracts in place under current law), but would decrease by 
     $0.1 billion in outlays by 2002 (baseline outlays increase by 
     $5.2 billion from 1997 to 2002, but the Senate amendment 
     would save $5.3 billion in 2002).
       The Senate Amendment includes sufficient funding to renew 
     all section 8 contracts that expire over the next five years, 
     while reflecting savings from policies proposed in the 
     President's budget, which will guarantee that all those 
     currently receiving assistance (or waiting for an existing 
     unit to become available) will continue to receive such 
     assistance.
       The Senate amendment assumes that basic administrative 
     funds are frozen, but that additional funds will be available 
     for payment integrity and anti-fraud actions. The additional 
     payment integrity activities would generate $763 million in 
     entitlement unemployment insurance savings. This policy is 
     part of the President's 1998 Budget and saves an additional 
     $1.6 billion in discretionary costs.
       The aggregate numbers in this function will support the 
     overall level of spending assumed in the Bipartisan Budget 
     Agreement. In order to meet the Bipartisan Budget Agreement's 
     discretionary spending limits, savings will be required from 
     programs in this function. These savings will be determined 
     by the Appropriation Committees.
       Examples of possible reductions include the following: (1) 
     Public housing funds and other housing programs. The 
     President's Budget would freeze at the 1997 appropriation 
     level the funding for public housing. The public housing 
     reauthorization changes expected to be passed by the Congress 
     would facilitate the operation of public housing programs in 
     a freeze environment. (2) Housing preservation. The 
     President's Budget would end funding for housing 
     preservation. (3) Other housing programs. The President's 
     Budget would reduce funding below baseline levels for the 
     HOME program, housing for special populations, revitalization 
     of distressed public housing, HUD salaries and expenses, 
     homeless assistance grants, drug elimination grants, very low 
     income repair grants, mutual self-help grants, and rural 
     housing preservation grants. (4) Food Program Administration. 
     The costs of federal administration of food programs--food 
     stamps, child nutrition--would be frozen at the 1997 level. 
     These costs can be frozen since most food assistance program 
     caseloads have declined over the past three years, and actual 
     spending on entitlement nutrition program in 1997 will be 
     lower than 1996 spending. This proposal is part of the 
     President's Budget and would save $62 million over five 
     years. (5) Railroad Retirement. The President's proposals for 
     Railroad Retirement Board administrative expenses and for 
     windfall benefit funding would yield savings relative to the 
     Budget Resolution Baseline of $0.4 billion in BA and outlays 
     over the next five years. The windfall benefit funding in the 
     President's budget is not a cut in benefits but an adjustment 
     to the baseline reflecting the natural decline in the number 
     of eligible beneficiaries for this closed-group benefit.
       Mandatory spending.--Of total spending in this function for 
     1997, $197.0 billion (or 83 percent) is spent on mandatory 
     programs. Six programs account for $165.9 billion in outlays 
     in this function--$90.9 billion funds the major cash and in-
     kind means tested programs of Food Stamps, Supplemental 
     Security Income (SSI), Temporary Assistance for Needy 
     Families (TANF) and outlays for the Earned Income Tax Credit 
     (EITC). The balance of mandatory outlays, $75.0 billion is 
     spent on federal retirement programs and $24.5 billion is 
     spent on unemployment insurance.
       The Bipartisan Budget Agreement restores SSI and Medicaid 
     eligibility for all disabled legal immigrants who are or 
     become disabled and who entered the U.S. prior to August 23, 
     1996. Those disabled legal immigrants who entered after the 
     August 22, 1996, and are on the rolls before June 1, 1997 
     shall not be removed. This policy will cost $9.4 billion 
     which includes $1.6 billion in Medicaid costs found in 
     function 550.
       The welfare reform bill exempted refugees and asylees from 
     the ban on government assistance for five years. The 
     agreement extends the refugee and asylee exemption from five 
     years to seven years. This policy costs $300 million over 
     five years.
       The Bipartisan Budget Agreement $750 million in new capped 
     mandatory funding to create additional work slots for 
     individuals subject to the time limits. In addition, existing 
     food stamps employment and training funds will be redirected 
     to fund work slots. The agreement also allows states to 
     exempt up to 15 percent of the individuals who would lose 
     benefits because of the time limits (beyond current waiver 
     policy) at a cost of $500 million over five years.
       The Bipartisan Budget Agreement adds $3 billion over the 
     next four years to the Temporary Assistance for Needy 
     Families (TANF) block grant. These additional funds will be 
     distributed through a formula and targeted to areas with 
     poverty and unemployment at least 20 percent higher than the 
     state average. A share of the funds would go to cities/
     counties with large poverty populations commensurate with the 
     share of long-term welfare recipients in those jurisdictions.
       The Bipartisan Budget Agreement increases the ceilings of 
     the Federal FUTA-funded accounts in the Unemployment Trust 
     Fund to increase solvency. This policy saves $624 million 
     over five years.
       The Bipartisan Budget Agreement includes savings from 
     several compliance initiatives concurrent with an IRS study 
     finding a 23 percent error rate. Other mutually acceptable 
     EITC reforms targeted to reducing noncompliance and fraud may 
     also be considered. The savings from the President's 
     initiatives are approximately $124 million over five years.
       The Senate amendment assumes continuation of proposals in 
     the President's Budget to limit certain automatic increases 
     in payments made to section 8 landlords from 1999-2002.
       The Bipartisan Budget Agreement assumes the President's 
     proposal of a 1.51 percent increase in federal agency 
     contributions for all employees in the Civil Service 
     Retirement System (CSRS), excluding the Postal Service, for a 
     savings of $2.9 billion (shown in Function 950, Undistributed 
     Offsetting Receipts).
       The Bipartisan Budget Agreement assumes the President's 
     proposal for a 0.5 percentage point increase in the federal 
     employee's current retirement contribution rate. Rates for 
     employees in the Civil Service Retirement System (CSRS) will 
     increase from 7 percent to 7.5 percent, and rates for 
     employees in the Federal Employees Retirement System (FERS) 
     will increase from 0.8 to 1.3 percent, both on a phased-in 
     basis beginning in 1999, according to the following schedule: 
     0.25 percent in 1999, 0.15 percent in 2000, and 0.10 percent 
     in 2001. Total savings would amount to $1.8 billion (shown in 
     Revenues).
       Conference agreement
       The conference agreement reflects the provisions of the 
     Bipartisan Budget Agreement. Because the dollar amounts are 
     virtually identical in the House resolution and the Senate 
     amendment, the House recedes to the Senate with respect to 
     function spending levels.


                     Function 650: Social Security

     Major programs in function
       This function includes only Social Security old age, 
     survivors, and disability insurance (OASDI). Benefits are 
     paid from the Social Security trust funds and financed 
     primarily with payroll taxes. For purposes of the Budget 
     Enforcement Act, the Social Security trust funds are off-
     budget. However, the administrative expenses of the Social 
     Security Administration (SSA) are on-budget and remain within 
     the caps on discretionary spending.
       House resolution

                                          FUNCTION 650: SOCIAL SECURITY                                         
                                            [In millions of dollars]                                            
----------------------------------------------------------------------------------------------------------------
                                                        1997                                                    
                                                        est.      1998      1999      2000      2001      2002  
----------------------------------------------------------------------------------------------------------------
Budget Authority....................................   363,175   380,781   399,389   419,400   440,113   463,505
Outlays.............................................   366,405   384,102   402,811   422,770   443,893   466,786
----------------------------------------------------------------------------------------------------------------

       The House resolution assumes no changes in Social Security 
     benefits.
       Senate amendment
       Discretionary spending.--The Senate amendment provides 
     discretionary spending

[[Page H3383]]

     in 1998 for this function at $3.3 billion in BA and $3.4 
     billion in outlays, which is $0.2 billion below the 1997 
     level for BA and $0.1 billion lower for outlays. Over the 
     five year period, discretionary spending is $3.2 billion in 
     BA and $2.8 billion in outlays below the Budget Resolution 
     Baseline and $1.4 billion in BA and $1.0 billion in outlays 
     below a freeze baseline.
       MANDATORY SPENDING. The Senate amendment assumes no changes 
     from current law for mandatory spending in this function.
       Conference agreement
       The conference agreement reflects the provisions of the 
     Bipartisan Budget Agreement. Because the dollar amounts are 
     virtually identical in the House resolution and the Senate 
     amendment, the House recedes to the Senate with respect to 
     function spending levels.


                     Function 700: Veteran Affairs

     Major programs in function
       Function 700 funds the Department of Veteran Affairs which 
     oversees programs for veterans of the armed forces. 
     Compensation, pension and life insurance programs address the 
     income security needs of disabled and indigent veterans as 
     well as their survivors. Major education, training and 
     rehabilitation and readjustment programs include the 
     Montgomery GI bill, Veterans Educational Assistance program 
     and the Vocational Rehabilitation and Counseling program. 
     Veterans are also eligible for guaranteed home and farm 
     loans. Roughly half of all spending on veterans goes to the 
     Veterans Health Administration which comprises over 700 
     hospitals, nursing homes, domiciliaries and outpatient 
     clinics.
       House resolution

                                  FUNCTION 700: VETERANS' BENEFITS AND SERVICES                                 
                                            [In millions of dollars]                                            
----------------------------------------------------------------------------------------------------------------
                                                        1997                                                    
                                                        est.      1998      1999      2000      2001      2002  
----------------------------------------------------------------------------------------------------------------
Budget Authority....................................    39,125    40,545    41,466    41,740    42,093    42,282
Outlays.............................................    39,445    41,337    41,700    41,908    42,215    42,436
----------------------------------------------------------------------------------------------------------------

       The VA administers a vast health care system for veterans 
     who meet certain eligibility criteria. Care is provided 
     largely in facilities owned and operated by the VA. In 1996, 
     the VA-operated facilities included 173 medical centers, 130 
     nursing home care units, 375 outpatient clinics, and 39 
     domiciliaries. In recent years, about 2.8 million veterans 
     used the VA health care system, representing just over 10 
     percent of the total veteran population.
       The VA pays monthly cash benefits to veterans who have 
     service-connected disabilities. The basic amounts of 
     compensation paid are based on percentage-of-
     disability rating (multiples of 10 percentage points) 
     assigned to the veteran. In fiscal year 1998, about 2.6 
     million veterans will receive disability compensation, 
     with Federal obligations totaling about $16.7 billion. The 
     VA pays monthly cash pension benefits to about 714 
     thousand veterans or their survivors. These pension 
     obligations will total about $3.0 billion in fiscal year 
     1998.
       For fiscal year 1998, the House resolution assumes total 
     function 700 budget authority of $40.5 billion and outlays of 
     $41.3 billion. Over the 5-year period 1998-2002, it assumes 
     budget authority of $208.1 billion and outlays of $209.6 
     billion.
       The House resolution assumes funding of $18.5 billion in 
     budget authority [BA] and $19.3 billion in outlays in fiscal 
     year 1998 for the Federal Government's discretionary 
     veteran's programs. Over the 5-year period 1998-2002, for 
     Function 700 discretionary programs it assumes budget 
     authority of $91.4 billion and outlays of $92.2 billion.
       In addition to these sums, under the Bipartisan Budget 
     Agreement, VA medical care will be able to retain third party 
     insurance and user fees to partially offset the cost of care 
     provided in VA facilities, CBO estimates that this will 
     supplement budget authority by $604 million for fiscal year 
     1998.
       The House resolution assumes funding of $22.1 billion in 
     budget authority and $22.1 billion in outlays in fiscal year 
     1998 for the Federal Government's mandatory veteran's 
     programs. Over the 5-year period 1998-2002, for Function 700 
     mandatory programs it assumes budget authority of $116.8 
     billion and outlays of $117.4 billion. The following policy 
     assumptions are made:
       Round down the VA compensation cola to the nearest whole 
     dollar;
       Extend expiring provisions of current law that sunset in 
     1998. This assumption assumes permanently extending the 
     following provisions of current law that will otherwise 
     expire in 1998: income verification for pension eligibility; 
     the pension limit for persons in Medicaid nursing homes; and 
     the three expiring OBRA provisions of VA housing loan fees 
     and default procedures; and
       Other Provisions. The resolution also assumes the 
     acceptance of the administration's legislative proposal to 
     allow VA Medical Care to retain user fees and third party 
     collections to offset the cost of care provided in VA 
     facilities starting October 1, 1997. The resolution also 
     assumes repeal of the prohibition on home loan debt 
     collections, extending real estate mortgage investment 
     conduits, and an increase in the fee for non-veterans using 
     VA's vendee loan program.
       Senate amendment.
       Discretionary spending.--In 1998, discretionary spending is 
     assumed to decrease by $0.4 billion in BA but increase by 
     $0.1 billion in outlays over the 1997 level to $18.5 billion 
     in BA and $19.3 billion in outlays. Over the next five years, 
     spending is assumed to decrease modestly to $18.0 billion in 
     BA and outlays. The discretionary funding level will be 
     augmented by converting the receipts of the Medical Care Cost 
     Recovery fund into additional spending for the Veteran 
     Hospital system. The shift of offsetting receipts from 
     mandatory spending to discretionary spending has been 
     incorporated into the Budget Committee's adjusted baseline. 
     Over the next five years the number of veterans will continue 
     to decline and after 1999, the over-65 veteran population 
     will decrease.
       The aggregate numbers in this function will support the 
     overall level of spending assumed in the Budget Agreement. In 
     order to meet the Bipartisan Budget Agreement's discretionary 
     spending limits, savings will be required from programs in 
     this function. These savings will be determined by the 
     Appropriation Committees.
       Examples of possible reductions include the following: (1) 
     Medical Administration and Miscellaneous Expenditures. The 
     President's Budget proposes $40 million in savings from 
     freezing the Medical Administration account from the Budget 
     Resolution Baseline. (2) Construction of Medical Facilities. 
     Adopting the President's proposal of funding no new major 
     construction but providing for renovations and repair of 
     existing facilities would save about $800 million over five 
     years compared to the baseline. (3) General Operating 
     Expenses. Freeze General Operating Expenses (GOE) at the 1997 
     level. This proposal was part of the President's Budget and 
     saves $395 million over five years from the Budget Resolution 
     Baseline.
       Mandatory spending.--Spending on mandatory veterans 
     programs will rise by 23 percent over the next five years 
     because of: cost-of-living increases, regulatory expansion of 
     eligible populations, and a growing veteran population over 
     the short term. Mandatory compensation benefits will peak in 
     2005 and gradually decline. Compensation and pension benefits 
     will rise with inflation, but the overall veteran population 
     will begin declining shortly after 2000. Starting in 1999 the 
     over-65 veteran population will begin to decline. Finally, 
     there have been recent administrative actions that have 
     expanded eligibility for compensation, especially the 
     Vietnam-era population.
       A provision in both the Senate amendment and the Bipartisan 
     Budget Agreement extends expiring provisions of OBRA 1993: 
     Medical Care. (1) recovery of third party insurance costs, a 
     $2 co-pay for prescription drugs and a per diem for hospital 
     care, and (2) verification of income for medical care 
     determination. The extensions of current law were part of the 
     President's Budget and the 1997 budget resolution. 
     Cumulatively the extensions add $1 billion to the Medical 
     Care Cost Recovery fund which is transferred to discretionary 
     spending. In addition the Senate amendment assumes savings 
     from the mandatory administrative costs of collecting the co-
     pays and per diems, saving $641 million over five years.
       The Senate amendment and the Bipartisan Budget Agreement 
     extend expiring provisions of OBRA 1993: Housing Fees. 
     Permanently extends (1) .75% home loan fee, (2) 3% fee on 
     multiple use and (3) resale loss formula. In addition the 
     Senate amendment and the Bipartisan Budget Agreement includes 
     the President's proposal to charge non-veterans a fee when 
     buying VA held properties to cover the costs of the program. 
     In all the extended fees and new fees save $90 million over 
     five years.
       Both the Senate amendment and the Bipartisan Budget 
     Agreement extend expiring provisions of OBRA 1993: Pension 
     Limitation for Veterans in Medicaid Nursing Homes. Extends an 
     expiring provision of law that limits pension benefits to $90 
     per month for veterans residing in Medicaid paid nursing 
     homes. Saves $677 million over five years net of increased 
     Medicaid costs.
       The Secretary of the Veterans' Administration lacks 
     authority to withhold compensation payments for veterans' 
     delinquent on housing loans. The Senate amendment the 
     Secretary to withhold a portion of VA payments for veterans 
     delinquent on loan payments. This proposal is part of the 
     President's Budget and the 1997 budget resolution and saves 
     $90 million in 1998.
       The Secretary has authority to bundle VA-backed mortgages 
     into Real Estate Mortgage Investment Conduits (REMICs). 
     REMICs are securities sold to investors which are carry the 
     full faith and credit of the United States and command lower 
     interest rates. The Senate amendment assumes an extension of 
     current law indefinitely, and is part of the President's 
     Budget and the 1997 Budget Resolution. This proposal saves $5 
     million per year and $25 million over five years.
       Compensation and Pension beneficiaries receive annual Cost 
     of Living Allowances which are tied to the Consumer Price 
     Index (CPI). The Senate amendment assumes extension of 
     current law and rounds down the COLA increase per beneficiary 
     to the nearest whole dollar. This proposal is part of the 
     President's Budget and the 1997 Budget Resolution. Rounding 
     down COLA's saves $391 million over five years.
       Conference agreement.
       The conference agreement reflects the provisions of the 
     Bipartisan Budget Agreement. Because the dollar amounts are 
     virtually identical in the House resolution and the Senate 
     amendment, the House recedes to the

[[Page H3384]]

     Senate with respect to function spending levels.


                function 750: administration of justice

     Major programs in function
       Function 750 includes funding for federal law enforcement 
     activities, including criminal investigations by the Federal 
     Bureau of Investigation (FBI) and the Drug Enforcement 
     Administration (DEA), border enforcement and the control of 
     illegal immigration by the Customs Service and Immigration 
     and Naturalization Service (INS), as well as funding for 
     prison construction, drug treatment, crime prevention 
     programs and the federal Judiciary.
       House resolution.

                                     FUNCTION 750: ADMINISTRATION OF JUSTICE                                    
                                            [In millions of dollars]                                            
----------------------------------------------------------------------------------------------------------------
                                                        1997                                                    
                                                        est.      1998      1999      2000      2001      2002  
----------------------------------------------------------------------------------------------------------------
Budget authority....................................    23,506    24,765    25,120    24,178    24,354    24,883
Outlays.............................................    20,744    22,609    24.476    25,240    25,901    24,879
----------------------------------------------------------------------------------------------------------------

       The House resolution assumes $24.8 billion in budget 
     authority and $22.6 billion in outlays will be provided in 
     fiscal year 1998, and $123.3 billion in budget authority and 
     $123.1 billion in outlays for 1998-2002. This amount assumes 
     the Bipartisan Budget Agreement.
       For discretionary programs, the House resolution assumes 
     $24.4 billion in budget authority and $22.2 billion in 
     outlays for fiscal year 1998, and $121.9 billion in budget 
     authority and $121.8 billion in outlays for 1998-2002.
       Included in the total discretionary funding for this 
     function is the Violent Crime Reduction Trust Fund which, the 
     House resolution assumes $5.500 billion in budget authority 
     and $3.592 billion in outlays for fiscal year 1998, and $24.7 
     billion in budget authority and $24.6 billion in outlays for 
     1998-2002. The Bipartisan Budget Agreement assumes the 
     President's level for the trust fund.
       The House resolution makes no mandatory assumptions in this 
     function.
       Senate amendment.
       Discretionary spending.--Discretionary spending in Function 
     750 Administration of Justice is a priority function in the 
     Bipartisan Budget Agreement.
       Discretionary spending in 1998 for this function would 
     increase by $1.5 billion in BA and $1.8 in outlays over the 
     1997 level, to $24.4 billion in BA and $22.2 billion in 
     outlays. Over the five year period, spending would increase 
     to $24.7 billion in BA and $25.7 billion in outlays by 2002. 
     The Administration of Justice function contains the Violent 
     Crime Reduction Trust Fund programs which will expire after 
     2000 under current law. The Senate amendment retains 
     current law on separate violent crime reduction trust fund 
     caps as assumed in the agreement.
       In general the Bipartisan Budget Agreement assumes 
     continued investments in federal and state law enforcement. 
     Ongoing programs, including general fund programs, are 
     generally assumed to increase with inflation. Several 
     programs including the INS, FBI, DEA and Bureau of Justice 
     Assistance will receive funds over baseline. The Bipartisan 
     Budget Agreement assumes major investments in additional 
     personnel to fight illegal immigration especially along the 
     Southwest border, increased resources to combat and 
     adjudicate drug trafficking and violent crime, additional 
     funding to modernize and maintain law enforcement equipment 
     and facilities, additional resources to fight juvenile crime, 
     and extra funding to combat acts of international and 
     domestic terror.
       The Senate amendment assumes adequate funding for federal 
     law enforcement agencies responsible for the control of 
     illegal immigration and drugs, especially the Customs 
     Service, the Immigration and Naturalization Service and the 
     Drug Enforcement Administration. There is a particular 
     emphasis for fully funding the Southwest border initiatives, 
     proper staffing levels including support staff, and assuring 
     access to the latest and best technologies for fighting 
     drugs.
       This program was created by the Violent Crime Reduction Act 
     to automate paper-bound state legal systems. The Senate 
     amendment assumes the program is terminated once the 
     automation goals are complete. This proposal saves roughly 
     $100 million after from 2000 to 2002.
       The state prison construction program was created with the 
     Violent Crime Trust Fund. States currently receive $750 
     million per year. The Senate amendment assumes sufficient 
     spending to achieve the prison construction program goals. 
     This proposal saves roughly $2.3 billion from 2000 to 2002 
     compared to the baseline.
       The COPS program provides states with seed money to hire 
     beat policemen. The goal of the program is to pay for an 
     additional 100,000 cops on the beat over five years. The 
     Senate amendment provides sufficient funding to meet the goal 
     of current law. The Senate amendment also assumes that states 
     will continue receiving assistance from the State and Local 
     Law Enforcement Block Grant which focuses resources on areas 
     of high crime.
       Conference agreement
       The conference agreement reflects the provisions of the 
     Bipartisan Budget Agreement. Because the dollar amounts are 
     virtually identical in the House resolution and the Senate 
     amendment, the House recedes to the Senate with respect to 
     function spending levels.


                    function 800: general government

     Major programs in function
       Function 800 consists of the activities of the Legislative 
     Branch, the Executive Office of the President, U.S. Treasury 
     fiscal operations (including the Internal Revenue Service), 
     personnel and property management, and general purpose fiscal 
     assistance to states, localities, and U.S. territories. For 
     1997 discretionary spending for Function 800 will be 
     approximately 84 percent of total spending for the function. 
     About 60 percent of the discretionary spending is for the 
     Internal Revenue Service. Slightly more than half of the 
     mandatory spending is attributed to the Treasury claims fund. 
     The remainder is primarily payments to states, localities, 
     and Puerto Rico.
       House resolution

                                        FUNCTION 800: GENERAL GOVERNMENT                                        
                                            [In millions of dollars]                                            
----------------------------------------------------------------------------------------------------------------
                                                        1997                                                    
                                                        est.      1998      1999      2000      2001      2002  
----------------------------------------------------------------------------------------------------------------
Budget authority....................................    13,987    14,711    14,444    13,977    13,675    13,105
Outlays.............................................    13,881    13,959    14,363    14,727    14,131    13,100
----------------------------------------------------------------------------------------------------------------

       The House resolution assumes $14.7 billion in total budget 
     authority and $14.0 billion in outlays in fiscal year 1998. 
     Over 5 years, it assumes $69.9 billion in total budget 
     authority and $70.3 in outlays.
       The House resolution assumes $12.6 billion in budget 
     authority [BA] and $11.9 billion in outlays for discretionary 
     programs in fiscal year 1998. Over 5 years, it assumes $59.6 
     billion in BA and $59.8 billion in outlays.
       The House resolution assumes $2.1 billion in mandatory 
     budget authority [BA] and $2.1 billion in mandatory outlays 
     in fiscal year 1998. Over 5 years, it assumes $10.3 billion 
     in mandatory budget authority [BA] and $10.5 billion in 
     outlays. The resolution assumes unspecified asset sales of 
     $540 million in 2002.
       Senate amendment
       Discretionary spending.--Discretionary spending for this 
     function will total $59.6 billion in budget authority and 
     $59.8 billion in outlays from 1998-2002. For 1998, spending 
     will increase by $0.8 billion in budget authority from the 
     1997 level to $12.6 billion; 1998 outlays will remain 
     constant at $11.9 billion. Compared to the Budget 
     Resolution Baseline, the Senate amendment will save $5.7 
     billion in budget authority and $5.1 billion in outlays 
     over five years.
       In order to meet the Bipartisan Budget Agreement's 
     discretionary spending limits, savings will be required from 
     programs in this function. These savings will be determined 
     by the Appropriation Committees. Following are examples of 
     possible reductions.
       The President has proposed aiding the District of Columbia 
     through a plan which combines new mandatory spending, new tax 
     breaks, and decreased discretionary spending. Mandatory 
     spending for increased Medicaid benefits (see Function 550) 
     would total $900 million over five years. Targeted tax breaks 
     for the District would cost $260 million over five years (see 
     Revenues). Finally, discretionary spending for a federal 
     takeover of a portion of the District's justice, tax 
     collection, and transportation responsibilities would total 
     $2.8 billion over five years. In turn, annual payments to the 
     District would be terminated, saving $3.9 billion over five 
     years. Under this plan, Function 800 discretionary spending 
     would decrease by $1.1 billion over five years compared to 
     the Budget Resolution Baseline.
       The Federal Buildings Fund is a quasi-revolving fund which 
     charges agencies for rent and then uses the proceeds for 
     rent, building operations, repairs, and new construction. In 
     addition, a relatively small amount is appropriated each year 
     to bolster this fund. The President has proposed eliminating 
     the annual appropriation by 1999, which would save $2.0 
     billion over five years compared to the baseline.
       The President has proposed holding the GSA, the National 
     Archives and Records Administration, and central personnel 
     management slightly below or at the 1997 level, which would 
     save $362 million over five years compared to the baseline.
       The President has proposed holding the Treasury's building 
     repair and restoration appropriation, the Bureau of Public 
     Debt, and the salaries and expenses of the Departmental 
     Offices (which provide basic support to the Secretary of the 
     Treasury) slightly below or at the 1997 level. This would 
     save $269 million over five years compared to the baseline.
       The majority of the remaining spending reductions in this 
     function could come from

[[Page H3385]]

     the IRS, which will account for 60 percent of Function 800 
     discretionary spending in 1997. The IRS budget rose 32 
     percent in real terms from 1985 to 1997, and GAO has 
     identified areas where efficiencies can be made.
       Mandatory spending.--Mandatory spending for this function 
     will total $10.5 billion from 1998-2002, $0.5 billion below 
     the baseline. Of this total, $7.5 billion is for legal 
     payments to harmed savings and loans institutions. Last year, 
     the Supreme Court ruled that a 1989 federal law broke an 
     agreement between the federal government and a savings and 
     loan institution. Mandatory spending in this function could 
     be offset by $0.5 billion by selling unspecified government 
     assets.
       Conference agreement
       The conference agreement reflects the provisions of the 
     Bipartisan Budget Agreement. Because the dollar amounts are 
     virtually identical in the House resolution and the Senate 
     amendment, the House recedes to the Senate with respect to 
     function spending levels.


                       function 900: net interest

     Major programs in function
       Net interest is the interest paid on the Federal public 
     debt, minus the interest income received. Function 900 is a 
     mandatory payment, with no discretionary components.
       House resolution

                                           FUNCTION 900: NET INTEREST                                           
                                            [In millions of dollars]                                            
----------------------------------------------------------------------------------------------------------------
                                                        1997                                                    
                                                        est.      1998      1999      2000      2001      2001  
----------------------------------------------------------------------------------------------------------------
Budget authority....................................   247,639   248,578   252,029   247,884   241,899   236,877
Outlays.............................................   247,639   248,578   252,029   247,884   241,899   236,877
----------------------------------------------------------------------------------------------------------------

       Senate amendment
       The Senate Resolution assumes the levels provided for in 
     the Bipartisan Budget Agreement.
       Conference agreement
       The conference agreement reflects the provisions of the 
     Bipartisan Budget Agreement. Because the dollar amounts are 
     virtually identical in the House resolution and the Senate 
     amendment, the House recedes to the Senate with respect to 
     function spending levels.


                        function 920: allowances

       Conference amendment
       Function 920 displays the budgetary effects of proposals or 
     assumptions that cannot be easily distributed across other 
     budget functions. There are no assumptions in this function.


            function 950: undistributed offsetting receipts

     Major programs in function
       Function 950 records offsetting receipts (receipts, not 
     federal revenues or taxes, that the budget shows as offsets 
     to spending programs) that are too large to record in other 
     budget functions. Such receipts are either intrabudgetary (a 
     payment from one federal agency to another, such as agency 
     payments to the retirement trust funds) or proprietary (a 
     payment from the public for some type of business transaction 
     with the government). The main types of receipts recorded as 
     ``undistributed'' in this function are--the payments federal 
     agencies make to the retirement trust funds for their 
     employees, payments made by companies for the right to 
     explore and produce oil and gas on the Outer Continental 
     Shelf, and payments by those who bid for the right to buy or 
     use the public property or resources, such as the 
     electromagnetic spectrum.
       House resolution

                                 FUNCTION 950: UNDISTRIBUTED OFFSETTING RECEIPTS                                
                                            [In millions of dollars]                                            
----------------------------------------------------------------------------------------------------------------
                                                   1998                                                         
                                                   est.       1998       1999       2000       2001       2002  
----------------------------------------------------------------------------------------------------------------
Budget Authority..............................    -47,436    -48,798    -44,437    -45,996    -50,008    -64,098
Outlays.......................................    -47,436    -48,798    -44,437    -45,996    -50,008    -64,098
----------------------------------------------------------------------------------------------------------------

       The budget agreement calls for $26.3 billion in additional 
     receipts through actions involving the electromagnetic 
     spectrum.
       The budget agreement assumes an increase in Federal agency 
     contributions for the Civil Service Retirement System [CSRS] 
     (except for the Postal Service and District of Columbia) of 
     1.51 percentage points effective October 1, 1997 through 
     September 30, 2002.
       Senate amendment
       Mandatory spending.--The authority (provided for the first 
     time by OBRA 93) of the Federal Communications Commission 
     (FCC) to auction spectrum in certain instances (mutually-
     exclusive, subscription-based services) is about to expire 
     (in 1998). Thus far, FCC auctions have yielded more than $20 
     billion in winning bids that would not have occurred using 
     the previous methods of assigning licenses (lottery or 
     comparative hearing). The Bipartisan Budget Agreement would 
     extend the FCC auction authority and broaden it to include 
     any license sought by a private business.
       As assumed in the President's Budget and the 1996 and 1997 
     budget resolutions, the Bipartisan Budget Agreement would 
     direct the FCC to reallocate 100 megahertz of spectrum 
     reserved for private applications as well as 20 megahertz now 
     used by the government to new applications and auction it. 
     Bipartisan Budget Agreement proposes to auction a portion of 
     channels 60-69. Because these channels will not be necessary 
     under the current FCC plan for the transition from analog to 
     digital television, the President's Budget proposes to 
     auction a portion of the spectrum covered by these channels 
     (with the balance allocated to public safety applications) 
     for new commercial applications.
       The President proposes to codify current FCC plans to 
     reclaim surplus analog broadcast spectrum after broadcasters 
     have migrated to new digital channels that the FCC has given 
     broadcasters at no charge.
       The President proposes to require the FCC to award new 
     generations of toll-free vanity telephone numbers by auction.
       As authorized by current law, a specific charge would be 
     imposed on entities who receive free spectrum for the 
     development of digital television but use it for certain 
     other purposes.
       The President's Budget proposes to increase the 
     contribution of federal agencies to the Civil Service 
     Retirement Trust Fund by 1.51 percentage points.
       Conference agreement
       The conference agreement reflects the provisions of the 
     Bipartisan Budget Agreement. Because the dollar amounts are 
     virtually identical in the House resolution and the Senate 
     amendment, the House recedes to the Senate with respect to 
     function spending levels.

                              B. Revenues

       House resolution
       Under the House resolution, $1,602 billion in total 
     revenues in 1998 will grow by 18.0 percent to $1,890 billion 
     in 2002, totaling $288 billion over 4 years as determined by 
     the Bipartisan Budget Agreement. Absent changes in law, 
     revenues will grow instead by 18.7 percent.
       The House resolution assumes that the cost of the tax 
     relief package will be offset partially with revenues from 
     excise taxes on aviation services. The Committee is aware 
     that various options for alternative tax structures in part 
     or all of the current aviation excise taxes are being 
     studied. The Committee further is aware that the Committee 
     on Ways and Means will have to determine any future tax 
     structure. To ensure that the underlying assumptions of 
     the House resolution are met, revenues resulting from any 
     modification of the current aviation excise taxes should 
     be no less than the Federal revenue that would be produced 
     by an extension, without change, of the current taxes.
       The committee's recommended baseline revenues are based on 
     CBO's March 1997 baseline, corrected for additions to revenue 
     to reflect increased actual fiscal year 1997 income tax 
     collections, and assumptions on technical price measure 
     corrections. (As explained in the section on economic 
     assumptions, these are not legislated changes in the CPI).
       The recommended revenues reflect policy changes which are a 
     net tax cut package revenue stream, as provided by the Joint 
     Committee on Taxation [JCT], offset by revenues from the 
     Airport and Airway Trust Fund taxes (which include taxes on 
     tickets, departures, cargo and fuel) in current law; a 0.5 
     percentage point increase in Federal employee retirement 
     contributions phased in over three years and beginning in 
     fiscal year 1999; and the revenue portion of Earned Income 
     Credit compliance reforms. The last assumption is described 
     more fully in Function 600.
       Senate amendment
       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, 
     excise 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).


               1998 Budget Resolution Revenues 1998-2002

                       [5-year total, $ billions]

Budget Resolution Baseline.....................................$8,772.8
-Net Tax Cut......................................................-85.0
+Other Provisions Affecting Revenues...............................+1.9
=Net Revenue Change from Baseline.................................-83.1
1998 Budget Resolution Revenues.................................8,689.6

       The Bipartisan Budget Agreement assumes a net tax cut of 
     $85 billion over the next five years and not more than $250 
     billion over the next ten years, to provide tax relief to 
     American families. Under the Agreement, revenues would 
     continue to grow, from $1,554.9 billion in 1997 to $1,890.4 
     billion in 2002, an increase of $335.5 billion over the five 
     year period.
       As always, the Ways and Means Committee in the House and 
     the Finance Committee in the Senate will determine the 
     specific amounts and structure of the tax relief package. The 
     tax-writing committees will be required to balance the 
     interests and desires of many parties (while protecting the 
     interests of taxpayers generally) in crafting the tax cut 
     within the context of the goals adopted by the Bipartisan 
     Budget Agreement. The Agreement establishes the following 
     guidelines for the tax package:
       The level of tax cuts provide enough room for broad-based 
     capital gains tax reductions, significant estate tax reform, 
     a $500 per child tax credit, and expansion of IRAs;
       The committees of jurisdiction shall include tax relief of 
     roughly $35 billion over five years for post-secondary 
     education, including a deduction and a tax credit. The tax

[[Page H3386]]

     package should be consistent with the objectives put forward 
     in the President's HOPE scholarship and tuition tax deduction 
     proposals to assist middle-class parents;
       The House and Senate Leadership will seek to include other 
     proposals from the President's 1998 budget (e.g. the welfare-
     to-work-tax credit, capital gains tax relief for home sales, 
     enterprise zone and enterprise community proposals, 
     brownfields legislation, foreign sales corporation (FSC) 
     treatment of software, and tax incentives designed to spur 
     economic growth in the District of Columbia), as well as 
     various pending congressional tax proposals;
       The tax cuts shall not cause costs to explode in the 
     outyears;
       Reforms to the Earned Income Tax Credit (EITC) or other 
     programs designed to benefit primarily lower-income 
     individuals, as well as revenues from extension of the 
     Superfund tax shall not be used to offset the costs of the 
     tax cuts; and,
       The tax estimating staffs at Treasury and the Joint 
     Committee on Taxation shall continue to consult and share 
     information necessary to understand fully the basis of their 
     revenue estimates and to minimize revenue estimating 
     differences.


      Other provisions affecting revenues in the budget resolution

       Revenue effects of the following two assumptions are not 
     included in the $85 billion net tax cut number.
       The Agreement assumes the President's April 1997 proposed 
     reforms to the EITC to combat fraud and noncompliance, and 
     the President's 1998 budget proposal to increase employee 
     contributions to CSRS and FERS by 0.5 percent of base pay in 
     three steps. Contributions would increase by 0.25 percent of 
     base pay on January 1, 1999, another 0.15 percent on January 
     1, 2000 and a final 0.10 percent on January 1, 2001. These 
     higher contribution rates would be effective through 2002; on 
     January 1, 2003, contribution rates would return to current 
     law levels.
       Conference agreement
       The conference agreement reflects the provisions of the 
     Bipartisan Budget Agreement. The revenue assumptions in the 
     conference agreement also incorporate the tax agreements 
     spelled out in the following letters.

                              Tax Letter 1


                                Congress of the United States,

                                     Washington, DC, May 15, 1997.
     The Honorable William J. Clinton,
     President of the United States,
     The White House, Washington, DC.
       Dear Mr. President: We would like to take this opportunity 
     to confirm important aspects of the Balanced Budget 
     Agreement. It was agreed that the net tax cut shall be $85 
     billion through 2002 and not more than $250 billion through 
     2007. We believe these levels provide enough room for 
     important reforms, including broad-based permanent capital 
     gains tax reductions, significant death tax relief, $500 per 
     child tax credit, and expansion of IRAs.
       In the course of drafting the legislation to implement the 
     balanced budget plan, there are some additional areas that we 
     want to be sure the committees of jurisdiction consider. 
     Specifically, it was agreed that the package must include tax 
     relief of roughly $35 billion over five years for post-
     secondary education, including a deduction and a tax credit. 
     We believe this package should be consistent with the 
     objectives put forward in the HOPE scholarship and tuition 
     tax proposals contained in the Administration's FY 1998 
     budget to assist middle-class parents.
       Additionally, the House and Senate Leadership will seek to 
     include various proposals in the Administration's FY 1998 
     budget (e.g., the welfare-to-work tax credit, capital gains 
     tax relief for home sales, the Administration's EZ/EC 
     proposals, brownfields legislation, FSC software, and tax 
     incentives designed to spur economic growth in the District 
     of Columbia), as well as various pending congressional tax 
     proposals.
       In this context, it should be noted that the tax-writing 
     committees will be required to balance the interests and 
     desires of many parties in crafting tax legislation within 
     the context of the net tax reduction goals which have been 
     adopted, while at the same time protecting the interests of 
     taxpayers generally.
       We stand to work with you toward these ends. Thank you very 
     much for your cooperation.
           Sincerely,
     Newt Gingrich,
       Speaker.
     Trent Lott,
       Senate Majority Leader.

                              Tax Letter 2


                                Congress of the United States,

                                     Washington, DC, May 15, 1997.
     Mr. Erskine Bowles,
     Chief of Staff to the President,
     The White House, Washington, DC.
       Dear Mr. Bowles: We are writing to express our desire for 
     continued cooperation between Congressional staff and the 
     staff of the various Administration agencies during the 
     development of the current budget agreement.
       Much of the most difficult work in connection with the 
     budget agreement will involve the development of the revenue 
     provisions that will satisfy the parameters of the agreement. 
     Historically, the staff of the Joint Committee on Taxation 
     has provided technical legal and quantitative support to the 
     House and Senate. The Budget Act requires the use of Joint 
     Committee on Taxation revenue estimates. Ken Kies and his 
     staff are committed to facilitating our work on the tax 
     provisions of this budget agreement. You can be assured that 
     they will cooperate with Administration counterparts in 
     receiving Administration input as they carry out their 
     statutory responsibilities.
       The revenue estimating staffs of the Joint Committee on 
     Taxation and the Office of Tax Analysis at Treasury have a 
     long history of cooperation and communication among analysts. 
     It is our understanding that steps have already been taken to 
     insure that the cooperative efforts of these two staffs will 
     be intensified during the current budget process. It is also 
     our understanding that the professional staffs at the Office 
     of Tax Analysis at Treasury and the Joint Committee on 
     Taxation will consult and share information necessary to 
     understand fully the basis of their revenue estimates and to 
     minimize revenue estimating differences. The proposal shall 
     not cause costs to explode in the outyears.
       Now that we have agreed upon the overall parameters of this 
     significant agreement, an inordinate number of details 
     concerning specific provisions must be drafted and analyzed 
     by the JCT and the committees of jurisdiction. We look 
     forward to working with the Administration.
           Sincerely,
     Newt Gingrich,
       Speaker.
     Trent Lott,
       Senate Majority Leader.

                              Tax Letter 3


                                Congress of the United States,

                                     Washington, DC, June 4, 1997.
     Hon. Pete V. Domenici,
     Chairman, Senate Budget Committee,
     Washington, DC.

     Hon. John R. Kasich,
     Chairman, House Budget Committee,
     Washington, DC.
       Dear Pete and John: Our Committees will soon begin marking 
     up tax legislation to meet the reconciliation directives of 
     the 1998 Budget Resolutions. We will meet the Resolution's 
     instructions of reducing revenues by $85 billion over the 
     five year period 1998-2002 and by no more than $20.5 billion 
     in 2002.
       Furthermore, we can assure you that, consistent with the 
     May 15, 1997 letter from the Speaker of the House and the 
     Majority Leader of the Senate to the President which stated, 
     ``It was agreed that the net tax cut shall be $85 billion 
     through 2002 and not more than $250 billion through 2007,'' 
     the ten year net revenue loss in the tax reconciliation bill 
     will not exceed $250 billion.
           Sincerely,
     William V. Roth,
       Chairman, Finance Committee.
     Bill Archer,
       Chairman, Ways and Means Committee.


                             reconciliation

     House resolution
       The House-passed resolution includes reconciliation 
     directives for House Committees to make changes in direct 
     spending and revenues in two separate bills. The House 
     resolution also effectively provides the option to include 
     both the direct spending, revenue changes, and increases in 
     the debt limit in the second reconciliation bill.
       The House resolution include language providing the 
     Committee on Ways and Means flexibility to submit legislation 
     incorporating part of the children's health initiative, which 
     was reconciled to the Committee on Commerce, as long as the 
     combined recommendations for the children's health initiative 
     does not exceed $2.3 billion in fiscal year 1998, $3.9 
     billion in fiscal year 2002, and $16 billion over five years.
     Senate amendment
       The Senate amendment include reconciliation directives for 
     Senate committees to make changes in direct spending and 
     revenues in two separate bills. The Senate adopted a 
     unanimous consent agreement with respect to the application 
     of Section 313(b)(1)(E) of the Budget Act (the ``Byrd Rule'') 
     to allow these two bills to be combined only for the purposes 
     of determining whether reconciliation legislation would 
     violate the Byrd rule by causing a net increase in the 
     deficit in the outyears. In addition, the Senate amendment 
     includes a provision that allows the two reconciliation bills 
     to be combined only for the purposes of determining whether 
     these reconciliation bills would violate the Senate's pay-as-
     you-go rule.
       The Senate amendment also includes provisions to allow 
     flexibility on a proposed children's initiative. The balanced 
     budget agreement included $16 billion in additional spending 
     and other possibilities, if mutually agreeable, for a 
     children's initiative. The Senate amendment assumes $16 
     billion in additional direct spending for a children's health 
     initiative, but provides flexibility in the Senate to modify 
     levels in the resolution for other possibilities. These 
     modifications only can be made by the Chairman of the Budget 
     Committee with the agreement and concurrence of the Ranking 
     Minority Member of the Committee.

[[Page H3387]]

     Conference agreement
       The conference agreement includes the House resolution's 
     provisions with respect to reconciliation directives to House 
     committees and the Senate amendment's provisions with respect 
     to reconciliation directives to Senate and House committees 
     to implement the balanced budget agreement. The conference 
     agreement also includes technical modifications to these 
     provisions.

                    Reconciliation By House Committee--Entitlement Reforms Due June 13, 1997                    
                                            [In millions of dollars]                                            
----------------------------------------------------------------------------------------------------------------
                                                                                                       1998 to  
                          Committee                            1997 Base       1998         2002         2002   
----------------------------------------------------------------------------------------------------------------
Agriculture:                                                                                                    
    Direct Spending.........................................       31,559       34,571       37,008      179,884
Banking & Financial Services:                                                                                   
    Direct Spending.........................................      -17,563       -8,435       -5,091      -32,743
Commerce:                                                                                                       
    Direct Spending.........................................      359,601      393,533      507,150    2,259,294
Education and the Workforce:                                                                                    
    Direct Spending.........................................       13,581       17,222       17,673       89,528
Government Reform & Oversight:                                                                                  
    Direct Spending.........................................       67,339       68,975       81,896      375,722
    Deficit Reduction.......................................            0            0          621        1,829
Transportation & Infrastructure:                                                                                
    Direct Spending.........................................       17,904       18,087       17,283       88,711
Veterans Affairs:                                                                                               
    Direct Spending.........................................       21,175       22,444       24,563      117,959
Ways & Means:                                                                                                   
    Direct Spending.........................................      363,970      397,581      506,522    2,257,912
    Revenues................................................    1,135,408    1,172,136    1,382,679    6,358,388
----------------------------------------------------------------------------------------------------------------


             Reconciliation by House Committee--Tax Relief & Miscellaneous Reforms Due June 14, 1997            
                                            [In millions of dollars]                                            
----------------------------------------------------------------------------------------------------------------
                                                                                                       1998 to  
                          Committee                            1997 Base       1998         2002         2002   
----------------------------------------------------------------------------------------------------------------
Agriculture:                                                                                                    
    Direct Spending.........................................       31,559       34,571       37,008      179,884
Banking and Financial Services:                                                                                 
    Direct Spending.........................................      -17,563       -8,435       -5,091      -32,743
Commerce:                                                                                                       
    Direct Spending.........................................      359,601      393,533      507,150    2,259,294
Education and the Workforce:                                                                                    
    Direct Spending.........................................       13,581       17,222       17,673       89,528
Government Reform and Oversight:                                                                                
    Direct Spending.........................................       67,339       68,975       81,896      375,722
    Deficit Reduction.......................................            0            0          621        1,829
Transportation and Infrastructure:                                                                              
    Direct Spending.........................................       17,904       18,087       17,283       88,711
Veterans Affairs:                                                                                               
    Direct Spending.........................................       21,175       22,444       24,563      117,959
Ways and Means:                                                                                                 
    Direct Spending.........................................      363,970      397,581      506,522    2,257,912
    Revenues................................................    1,135,408    1,164,736    1,362,179    6,273,388
----------------------------------------------------------------------------------------------------------------


                                 Reconciliation Instruction by Senate Committee                                 
                                            [In billions of dollars]                                            
----------------------------------------------------------------------------------------------------------------
          Committee                               1998       1999       2000       2001       2002       Total  
----------------------------------------------------------------------------------------------------------------
First Reconciliation:                                                                                           
    Agriculture, Nutrition    OT.............      0.300      0.300      0.300      0.300      0.300       1.500
     and Forestry.                                                                                              
    Banking, Housing and      DR.............     -0.136     -0.233     -0.365     -0.422     -0.434      -1.590
     Urban Affairs.                                                                                             
    Commerce, Science and     OT.............  .........     -3.549      3.549     -4.549    -14.849     -26.496
     Transportation.                                                                                            
    Energy and Natural        OT.............  .........     -0.001     -0.002     -0.004     -0.006      -0.013
     Resources.                                                                                                 
    Finance.................  OT.............     -1.137    -12.681    -19.079    -26.838    -40.911    -100.646
    Governmental Affairs....  DR.............     -0.632     -0.839     -1.042     -1.185     -1.769      -5.467
    Labor and Human           OT.............     -0.242     -0.247     -0.158     -0.088     -0.057      -2.792
     Resources.                                                                                                 
    Veterans Affairs........  OT.............     -0.247     -0.540     -0.659     -0.606     -0.681      -2.733
    Total First               DR.............     -2.094    -17.790    -24.554    -33.392    -59.407    -137.237
     Reconciliation.                                                                                            
Second Reconciliation:                                                                                          
    Finance.................  Rev............     -7.400    -11.300    -22.400    -23.400    -20.500    -85.000 
----------------------------------------------------------------------------------------------------------------
NOTE: OT = outlays, DR = deficit reduction, Rev = revenues.                                                     

                  budgetary restraints and rulemaking

     House resolution
       Title III of the House-passed budget resolution establishes 
     new rules and procedures for implementing the budget 
     resolution. The House resolution establishes a reserve fund 
     for surface transportation (section 301), a new rule for 
     scoring proposed asset sales (section 302), an environmental 
     reserve for the superfund program (section 303), and a 
     separate allocation for land acquisition (section 304).
     Senate amendment
       Title II of the Senate amendment establishes new rules and 
     procedures for implementing the budget resolution. Section 
     301 establishes limits on discretionary spending through 
     2002. It also establishes separate limit on defense and non-
     defense discretionary spending (``firewalls'') for FY 1998 
     and 1999. The Senate amendment provides that a future budget 
     resolution or an appropriations measure that would cause 
     these limits to be exceeded would be subject to a 60 vote 
     point of order in the Senate. The enforcement of the 
     discretionary limits beyond 1998 are dependent on the 
     enactment of reconciliation legislation called for by the 
     resolution.
       Section 202 of the Senate amendment establishes an 
     allowance to provide an upward adjustment to the budget 
     authority discretionary spending limits if the Appropriations 
     Committee approves of U.S. participation in the International 
     Monetary Fund (IMF) New Arrangements to Borrow (NAB) and for 
     a potential increase in the U.S. quota subscription. This 
     additional budget authority will not increase outlays or the 
     deficit.
       Section 203 of the Senate amendment provides an allowance 
     that effectively fences the additional funding assumed for 
     Section 8 Housing Assistance contract renewals. The agreement 
     creates an allowance of $9.2 billion in budget authority with 
     an associated, but unspecified, amount of outlays to be 
     released by the budget committees when the appropriations 
     committees report bills that provide for renewal of Section 8 
     housing assistance contracts that expire in 1998. The 
     conference agreement assumes that the amount of the allowance 
     to be released (estimated to be $3.436 billion for outlays) 
     will not be reduced to the extent that the appropriations and 
     authorizing committees produce Section 8 savings that were 
     proposed in the President's 1998 budget.
       Section 204 of the Senate amendment provides an allowance 
     to allow for additional mandatory spending for environmental 
     programs as part of legislation to reform the Superfund 
     program to facilitate the cleanup of hazardous waste sites.
       Section 205 of the Senate amendment includes an allowance 
     that effectively fences $700 million in funding for Federal 
     land acquisition and exchanges.
       Section 206 of the Senate amendment includes an allowance 
     to provide adjustments to the discretionary caps and other 
     levels in the resolution to accommodate appropriations for 
     arrearages for international organizations, international 
     peacekeeping, and multilateral development banks.

[[Page H3388]]

       Sections 207, 208, and 209 of the Senate amendment includes 
     reserve funds for an intercity passenger rail fund, mass 
     transit programs, and highway programs. These reserve funds 
     allow the discretionary caps and the spending levels in the 
     resolution to be adjusted for additional spending if 
     legislation provides sufficient offsets to ensure this 
     spending would not increase the deficit.
       Section 210 of the Senate amendment provides that the 
     changes in title II are made under the Congress rulemaking 
     authority and recognizes Congress constitutional right to 
     modify these rules at any time.
     Conference Agreement
       Title II of the conference agreement includes the rules and 
     procedures for implementing the budget resolution.
       Section 201 of the conference agreement reflects the Senate 
     amendment by establishing discretionary limits through 2002. 
     These limits only apply in the Senate .

                         1998 BUDGET RESOLUTION CONFERENCE AGREEMENT--DISCRETIONARY CAPS                        
                                              [Dollars in billions]                                             
----------------------------------------------------------------------------------------------------------------
                                                                       1998     1999     2000     2001     2002 
----------------------------------------------------------------------------------------------------------------
Defense:                                                                                                        
    BA.............................................................    269.0    271.5    275.4    281.8    289.6
    OT.............................................................    266.8    266.5    269.0    270.7    273.1
Nondefense:                                                                                                     
    BA.............................................................    257.9    261.5    261.8    260.2    261.5
    OT.............................................................    286.4    292.8    295.3    293.7    287.7
Total discretionary:                                                                                            
    BA.............................................................    526.9    533.0    537.2    542.0    551.1
    OT.............................................................    553.3    559.3    564.3    564.4    560.8
----------------------------------------------------------------------------------------------------------------

       Section 202 of the conference agreement generally reflects 
     the Senate amendment by establishing an allowance for the 
     International Monetary Fund (IMF) for both the Senate and the 
     House. In the House, the IMF allowance only applies for 
     fiscal years 1998 and 1999.
       Section 203 of the conference agreement reflects the Senate 
     amendment for an allowance for Section 8 Housing contract 
     renewals.
       Section 204 of the conference agreement reflects the House 
     resolution's language, with modifications, for an allowance 
     for additional mandatory spending for legislation that 
     reforms the superfund program to facilitate the cleanup of 
     hazardous waste sites.
       Section 205 of the conference agreement reflects the House 
     resolution's language, with modifications, for an allowance 
     for additional spending for land acquisition.
       Section 206 of the conference agreement reflects the House 
     resolution's language, with modifications, for an allowance 
     for arrearages for international organizations. In the House, 
     this allowance only applies for fiscal years 1998 and 1999.
       Section 207 of the conference agreement includes a reserve 
     fund for an intercity passenger rail fund and applies to the 
     House and Senate. Sections 207A, 208, and 209 of the 
     conference agreement provide reserve funds in the Senate for 
     an intercity passenger rail fund, mass transit programs, and 
     highway programs.
       Section 210 of the conference agreement incorporates the 
     House resolution provision establishing a reserve fund for 
     highways highway safety and transit programs in the House.
       Section 211 of the conference agreement includes the House 
     resolution's language establishing a new rule for scoring 
     proposed asset sales.
       Section 212 of the conference agreement provides general 
     authority with respect to the application and effect of 
     adjustments made pursuant to title II of the resolution.
       Section 213 of the conference agreement adopts the Senate 
     amendment's provisions that the provisions of title II are 
     made under Congress rulemaking authority and Congress 
     reserves its right to change its rules at any time.


              miscellaneous budget enforcement provisions

        Extension of pay-as-you-go point of order in the Senate

       The Senate Conferees note that in the Fiscal Year 1996 
     budget resolution (H. Con. Res. 67, 104th Congress) the pay-
     as-you-go point of order in the Senate was extended through 
     the end of fiscal year 2002. Consequently it was again 
     determined that it is not necessary to include the language 
     in the text of this year's resolution. In order to emphasize 
     the overall goal of balancing the budget set out in the 
     bipartisan budget agreement and this resolution and that the 
     pay-as-you-go discipline is still in effect, the text of 
     section 202 from H. Con. Res. 67 is provided herein:

     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 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 the 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 effect 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 (103rd Congress) is repealed.
       (g) Sunset.--Subsections (a) through (e) of this section 
     shall expire September 30, 2002.

     Unanimous consent agreement in the Senate--regarding section 
                     313(b)(1)(E) of the Budget Act

       The Senate Conferees note that because of the two bill 
     reconciliation process envisioned by the bipartisan budget 
     agreement and this resolution it was necessary in the Senate 
     to obtain the following unanimous consent agreement with 
     respect to the application of section 313(b)(1)(E) of the 
     Congressional Budget Act of 1974 (the Byrd Rule) to the 
     second reconciliation bill. The purpose of the consent is to 
     provide that when the second reconciliation bill is 
     considered in the Senate no Byrd Rule point of order under 
     section 313(b)(1)(E) would lie against provisions which 
     reduce revenues in years beyond those reconciled. This 
     unanimous consent agreement is contingent upon the Senate 
     considering two reconciliation bills pursuant to the 
     concurrent resolution on the budget for fiscal year 1998. The 
     text of the agreement, which was obtained on May 21, 1997, is 
     as follows:
       Ordered, That during the consideration of legislation (and 
     the conference report thereon), pursuant to the 
     reconciliation instructions set forth in the concurrent 
     resolution on the budget for fiscal year 1998, for the 
     purposes of section 313(b)(1)(E) of the Congressional Budget 
     Act of 1974, legislation which reduces revenues pursuant to a 
     reconciliation instruction contained in the fiscal year 1998 
     resolution (the second reconciliation bill) shall be taken 
     together with all other legislation passed in the Senate 
     pursuant to the reconciliation instructions contained in that 
     resolution (the first reconciliation bill) when determining 
     whether any provision of the second reconciliation bill is 
     extraneous: Provided, That this unanimous consent agreement 
     is contingent upon the Senate considering two reconciliation 
     bills pursuant to the concurrent resolution on the budget for 
     fiscal year 1998.


          sense of the congress, house, and senate provisions

     House resolution
       Title IV of the House-passed budget resolution contains 
     sense of the Congress provisions on the following subjects:
       baselines;
       repayment of the federal debt;

[[Page H3389]]

       commission on long-term budgetary problems;
       corporate welfare; and
       family violence.
     Senate amendment
       Title III of the Senate amendment contains sense of the 
     Senate and other provisions on the following subjects:
       long-term entitlement reforms;
       tactical fighter aircraft programs;
       children's health coverage;
       medicaid per capita cap;
       dedication of additional savings to deficit reduction;
       fairness in medicare;
       assistance to Lithuania and Latvia;
       national commission on higher education;
       medicare lockbox;
       earned income credit;
       repayment of the federal debt;
       long-term entitlement reforms;
       disaster assistance funding;
       enforcement of the bipartisan budget agreement;
       national institutes of health;
       elderly legal aliens;
       retroactive taxes;
       social security and balancing the budget;
       veterans programs and benefits;
       family violence;
       tax cuts;
       amtrak;
       children's health;
       gasoline taxes and the highway trust fund;
       early childhood education;
       highway trust fund and the budget;
       airport and airway trust fund and the budget;
       military retirement trust funds and the budget;
       civil service trust funds and the budget;
       unemployment trust funds and the budget;
       highway trust fund;
       tax incentives for post-secondary education;
       additional tax cuts;
       spectrum auctions;
       highway demonstration projects;
       budget savings;
       social security and future retirees;
       economic growth dividend;
       reserve fund for early childhood development;
       law enforcement; and
       prevention of drug use by children.
     Conference agreement
       Subtitle A of the conference agreement expresses the sense 
     of the Congress on the following subjects:
       repayment of the federal debt, and
       tax cut shall not exceed $250 billion over ten years.
       Subtitle B of the conference agreement contains sense of 
     the House provisions on the following subjects:
       commission on long-term budgetary problems;
       corporate welfare;
       baselines; and
       family violence.
       Subtitle C of the conference agreement contains sense of 
     the Senate provisions on the following subjects:
       long-term entitlement reforms;
       tactical fighter aircraft programs;
       children's health coverage;
       medicaid per capita cap;
       dedication of additional savings to deficit reduction;
       fairness in medicare;
       assistance to Lithuania and Latvia;
       national commission on higher education;
       medicare lockbox;
       earned income credit;
       repayment of the federal debt;
       long-term entitlement reforms;
       disaster assistance funding;
       enforcement of the bipartisan budget agreement;
       national institutes of health;
       elderly legal aliens;
       retroactive taxes;
       social security and balancing the budget;
       veterans programs and benefits;
       family violence;
       tax cuts;
       amtrak;
       children's health;
       gasoline taxes and the highway trust fund;
       early childhood education;
       highway trust fund;
       tax incentives for post-secondary education;
       additional tax cuts;
       spectrum auctions;
       highway demonstration projects;
       budget savings;
       social security and future retirees;
       economic growth dividend;
       law enforcement;
       prevention of drug use by children.


                              allocations

       As required in sections 302 and 602 of the Budget Act, the 
     joint statement of the managers includes an allocation, based 
     upon the conference report, of the levels of total budget 
     authority, total budget outlays, and--in the House only--
     total entitlement authority, among each of the appropriate 
     House and Senate committees.
       As required under sections 302 and 602, the allocations are 
     divided between mandatory and otherwise uncontrollable 
     amounts and discretionary or otherwise controllable amounts.
       The allocations for each House consist of a set of two 
     tables for the House and Senate. The first set of tables 
     shows the allocation for the budget year, fiscal year 1998. 
     For the House, the amount allocated to each committee is 
     broken down by budget function. The second set of tables 
     shows the amounts allocated for the totals of the budget year 
     and the four succeeding planning years. These allocations 
     serve as the basis for congressional enforcement of the 
     budget resolution through points of order under the Budget 
     Act.
       The allocations are as follows:

[[Page H3390]]

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[[Page H3391]]

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[[Page H3392]]

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[[Page H3393]]

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[[Page H3394]]

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[[Page H3424]]



SENATE COMMITTEE BUDGET AUTHORITY AND OUTLAY ALLOCATIONS PURSUANT TO SECTION 302 OF THE CONGRESSIONAL BUDGET ACT
                                             BUDGET YEAR TOTAL 1998                                             
                                            [In millions of dollars]                                            
----------------------------------------------------------------------------------------------------------------
                                                                   Direct spending       Entitlements funded in 
                                                                    jurisdiction        an annual appropriations
                          Committee                          ---------------------------------------------------
                                                                 Budget                    Budget               
                                                               authority     Outlays     authority     Outlays  
----------------------------------------------------------------------------------------------------------------
Appropriations..............................................      788,769      824,665            0            0
Appropriations (violent crime reduction trust fund).........        5,500        3,592            0            0
Agriculture, Nutrition, and Forestry........................       10,011        7,702        8,502        8,476
Armed Services..............................................       48,152       48,022            0            0
Banking, Housing, and Urban Affairs.........................        9,190       -3,203            0            0
Commerce, Science, and Transportation.......................        4,922        2,202          637          634
Energy and Natural Resources................................        1,879        1,848           50           41
Environment and Public Works................................       25,637        2,915            0            0
Finance.....................................................      683,053      681,872      112,893      115,429
Foreign Relations...........................................       13,135       12,945            0            0
Governmental Affairs........................................       56,248       55,190            0           17
Judiciary...................................................        4,230        4,319          220          215
Labor and Human Resources...................................        7,072        6,478        1,352        1,352
Rules and Administration....................................           93           27            0            0
Veterans' Affairs...........................................        1,111        1,193       21,187       21,106
Indian Affairs..............................................          449          423            0            0
Small Business..............................................          250         -100            0            0
Unassigned to Committee.....................................     -273,037     -278,090            0            0
                                                             --------------                                     
      Total.................................................    1,386,700    1,372,000      144,841      147,270
----------------------------------------------------------------------------------------------------------------


SENATE COMMITTEE BUDGET AUTHORITY AND OUTLAY ALLOCATIONS PURSUANT TO SECTION 302 OF THE CONGRESSIONAL BUDGET ACT
                                             5-YEAR TOTAL: 1998-2002                                            
                                            [In millions of dollars]                                            
----------------------------------------------------------------------------------------------------------------
                                                                   Direct spending       Entitlements funded in 
                                                                    jurisdiction        an annual appropriations
                          Committee                          ---------------------------------------------------
                                                                 Budget                    Budget               
                                                               authority     Outlays     authority     Outlays  
----------------------------------------------------------------------------------------------------------------
Agriculture, Nutrition, and Forestry........................       44,971       32,871       70,151       46,846
Armed Services..............................................      259,560      258,993            0            0
Banking, Housing, and Urban Affairs.........................       52,169       -4,005            0            0
Commerce, Science, and Transportation.......................       28,448       14,339        3,534        3,516
Energy and Natural Resources................................        9,530        9,528          254          282
Environment and Public Works................................      125,266       11,398            0            0
Finance.....................................................    3,607,033    3,599,663      669,226      672,800
Foreign Relations...........................................       59,220       60,907            0            0
Governmental Affairs........................................      304,950      297,311            0           33
Judiciary...................................................       22,261       21,865        1,100        1,095
Labor and Human Resources...................................       33,475       31,562        7,112        7,112
Rules and Administration....................................          471          444            0            0
Veterans' Affairs...........................................        3,483        4,376      113,589      113,276
Indian Affairs..............................................        2,278        2,144            0            0
Small Business..............................................          250         -699            0            0
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     John R. Kasich,
     David L. Hobson,
     John M. Spratt, Jr.,
                                Managers on the Part of the House.

     Pete V. Domenici,
     Chuck Grassley,
     Frank R. Lautenberg,
     Managers on the Part of the Senate.

                          ____________________