[Congressional Record Volume 153, Number 75 (Tuesday, May 8, 2007)]
[House]
[Pages H4568-H4592]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




        CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL YEAR 2008

  Mr. SPRATT. Mr. Speaker, pursuant to House Resolution 370, I call up 
the Senate Concurrent Resolution (S. Con. Res. 21) setting forth the 
congressional budget for the United States Government for fiscal year 
2008 and including the appropriate budgetary levels for fiscal years 
2007 and 2009 through 2012, and ask for its immediate consideration.
  The Clerk read the title of the Senate concurrent resolution.
  The text of the Senate concurrent resolution is as follows:

                            S. Con. Res. 21

       Resolved by the Senate (the House of Representatives 
     concurring),

     SECTION 1. CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL 
                   YEAR 2008.

       (a) Declaration.--The Congress declares that this 
     resolution is the concurrent resolution on the budget for 
     fiscal year 2008 and that the appropriate budgetary levels 
     for fiscal years 2007 and 2009 through 2012 are set forth.
       (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 2008.

                TITLE I--RECOMMENDED LEVELS AND AMOUNTS

Sec. 101. Recommended levels and amounts.
Sec. 102. Social Security.
Sec. 103. Major functional categories.

                        TITLE II--BUDGET PROCESS

Sec. 201. Pay-as-you-go point of order in the Senate.
Sec. 202. Point of order against reconciliation legislation that would 
              increase the deficit or reduce a surplus.
Sec. 203. Point of order against legislation increasing long-term 
              deficits.
Sec. 204. Emergency legislation.
Sec. 205. Extension of enforcement of budgetary points of order.
Sec. 206. Point of order against advance appropriations.
Sec. 207. Discretionary spending limits.
Sec. 208. Application of previous allocations in the Senate.
Sec. 209. Point of order to Save Social Security First.
Sec. 210. Point of order against legislation that raises income tax 
              rates.
Sec. 211. Circuit breaker to protect Social Security.
Sec. 212. Point of order--20% limit on new direct spending in 
              reconciliation legislation.
Sec. 213. Point of order against legislation that raises income tax 
              rates for small businesses, family farms, or family 
              ranches.
Sec. 214. Point of order against provisions of appropriations 
              legislation that constitutes changes in mandatory 
              programs with net costs.
Sec. 215. Disclosure of interest costs.

                TITLE III--RESERVE FUNDS AND ADJUSTMENTS

Sec. 301. Deficit-neutral reserve fund for SCHIP legislation.
Sec. 302. Deficit-neutral reserve fund for care of wounded service 
              members.
Sec. 303. Deficit-neutral reserve fund for tax relief.
Sec. 304. Deficit-neutral reserve fund for comparative effectiveness 
              research.
Sec. 305. Deficit-neutral reserve fund for higher education.
Sec. 306. Deficit-neutral reserve fund for the Farm Bill.
Sec. 307. Deficit-neutral reserve fund for energy legislation.
Sec. 308. Deficit-neutral reserve fund for Medicare.
Sec. 309. Deficit-neutral reserve fund for small business health 
              insurance.
Sec. 310. Deficit-neutral reserve fund for county payments for Secure 
              Rural Schools and Community Self-Determination Act of 
              2000 reauthorization.
Sec. 311. Deficit-neutral reserve fund for terrorism risk insurance 
              reauthorization.
Sec. 312. Deficit-neutral reserve fund for affordable housing.
Sec. 313. Deficit-neutral reserve fund for receipts from Bonneville 
              Power Administration.
Sec. 314. Deficit-neutral reserve fund for Indian claims settlement.
Sec. 315. Deficit-neutral reserve fund for Food and Drug 
              Administration.
Sec. 316. Deficit-neutral reserve fund for health care reform.
Sec. 317. Deficit-neutral reserve fund for enhancement of veterans' 
              benefits.
Sec. 318. Deficit-neutral reserve fund for long-term care.
Sec. 319. Deficit-neutral reserve fund for health information 
              technology.
Sec. 320. Deficit-neutral reserve fund for child care.
Sec. 321. Deficit-neutral reserve fund for comprehensive immigration 
              reform.
Sec. 322. Deficit-neutral reserve fund for mental health parity.
Sec. 323. Deficit-neutral reserve fund for preschool opportunities.
Sec. 324. Deficit-neutral reserve fund for the safe importation of FDA-
              approved prescription drugs.
Sec. 325. Application and effect of changes in allocations and 
              aggregates.
Sec. 326. Adjustments to reflect changes in concepts and definitions.
Sec. 327. Exercise of rulemaking powers.
Sec. 328. Deficit-neutral reserve fund for expansion of above-the-line 
              deduction for teacher classroom supplies.
Sec. 329. Adjustment for Smithsonian Institution salaries and expenses.
Sec. 330. Deficit-reduction reserve fund for reduction of improper 
              payments.
Sec. 331. Deficit-neutral reserve fund for extension of the deduction 
              for State and local sales taxes.
Sec. 332. Deficit-neutral reserve fund for extension of certain energy 
              tax incentives.
Sec. 333. Reserve fund to provide additional training for physicians 
              and attract more physicians in States that face a 
              shortage of physicians in training.
Sec. 334. Deficit-neutral reserve fund for repeal of the 1993 increase 
              in the income tax on Social Security Benefits.
Sec. 335. Sense of Congress on the State Criminal Alien Assistance 
              Program.
Sec. 336. Deficit-neutral reserve fund for eliminating military 
              retirement and disability offset.
Sec. 337. Deficit-neutral reserve for asbestos reform legislation.
Sec. 338. Deficit-neutral reserve fund for manufacturing initiatives.
Sec. 339. Deficit-reduction reserve fund for increased use of recovery 
              audits.
Sec. 340. Deficit-neutral reserve fund for a delay in the 
              implementation of a proposed rule relating to the 
              Federal-State Financial Partnerships under Medicaid and 
              SCHIP.
Sec. 341. Reserve fund to improve the health care system.
Sec. 342. Reserve fund to improve Medicare hospital payment accuracy.
Sec. 343. Deficit-neutral reserve fund to improve health insurance.

                TITLE I--RECOMMENDED LEVELS AND AMOUNTS

     SEC. 101. RECOMMENDED LEVELS AND AMOUNTS.

       The following budgetary levels are appropriate for each of 
     fiscal years 2007 through 2012:
       (1) Federal revenues.--For purposes of the enforcement of 
     this resolution:
       (A) The recommended levels of Federal revenues are as 
     follows:
       Fiscal year 2007: $1,900,706,000,000.
       Fiscal year 2008: $2,008,975,000,000.
       Fiscal year 2009: $2,122,544,000,000.
       Fiscal year 2010: $2,221,229,000,000.
       Fiscal year 2011: $2,357,776,000,000.
       Fiscal year 2012: $2,426,691,000,000.
       (B) The amounts by which the aggregate levels of Federal 
     revenues should be changed are as follows:
       Fiscal year 2007: -$4,000,000,000.
       Fiscal year 2008: -$41,821,000,000.
       Fiscal year 2009: $15,618,000,000.
       Fiscal year 2010: $57,508,000,000.
       Fiscal year 2011: -$36,774,000,000.
       Fiscal year 2012: -$170,405,000,000.
       (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 2007: $2,364,566,000,000.
       Fiscal year 2008: $2,490,185,000,000.
       Fiscal year 2009: $2,506,314,000,000.
       Fiscal year 2010: $2,555,623,000,000.
       Fiscal year 2011: $2,669,264,000,000.
       Fiscal year 2012: $2,696,288,000,000.
       (3) Budget outlays.--For purposes of the enforcement of 
     this resolution, the appropriate levels of total budget 
     outlays are as follows:
       Fiscal year 2007: $2,298,846,000,000.
       Fiscal year 2008: $2,460,251,000,000.
       Fiscal year 2009: $2,555,575,000,000.
       Fiscal year 2010: $2,587,173,000,000.
       Fiscal year 2011: $2,675,133,000,000.
       Fiscal year 2012: $2,682,375,000,000.
       (4) Deficits.--For purposes of the enforcement of this 
     resolution, the amounts of the deficits are as follows:
       Fiscal year 2007: $398,140,000,000.
       Fiscal year 2008: $451,276,000,000.
       Fiscal year 2009: $433,031,000,000.
       Fiscal year 2010: $365,944,000,000.
       Fiscal year 2011: $317,357,000,000.
       Fiscal year 2012: $255,684,000,000.
       (5) Public debt.--The appropriate levels of the public debt 
     are as follows:
       Fiscal year 2007: $8,960,830,000,000.
       Fiscal year 2008: $9,529,811,000,000.
       Fiscal year 2009: $10,079,488,000,000.
       Fiscal year 2010: $10,562,973,000,000.
       Fiscal year 2011: $10,993,669,000,000.
       Fiscal year 2012: $11,375,583,000,000.
       (6) Debt held by the public.--The appropriate levels of 
     debt held by the public are as follows:

[[Page H4569]]

       Fiscal year 2007: $5,045,226,000,000.
       Fiscal year 2008: $5,308,213,000,000.
       Fiscal year 2009: $5,537,687,000,000.
       Fiscal year 2010: $5,686,479,000,000.
       Fiscal year 2011: $5,769,579,000,000.
       Fiscal year 2012: $5,779,399,000,000.

     SEC. 102. SOCIAL SECURITY.

       (a) Social Security Revenues.--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 2007: $637,586,000,000.
       Fiscal year 2008: $668,998,000,000.
       Fiscal year 2009: $702,851,000,000.
       Fiscal year 2010: $737,589,000,000.
       Fiscal year 2011: $772,605,000,000.
       Fiscal year 2012: $807,928,000,000.
       (b) Social Security Outlays.--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 2007: $441,676,000,000.
       Fiscal year 2008: $460,224,000,000.
       Fiscal year 2009: $478,578,000,000.
       Fiscal year 2010: $499,655,000,000.
       Fiscal year 2011: $520,743,000,000.
       Fiscal year 2012: $546,082,000,000.
       (c) Social Security Administrative Expenses.--In the 
     Senate, the amounts of new budget authority and budget 
     outlays of the Federal Old-Age and Survivors Insurance Trust 
     Fund and the Federal Disability Insurance Trust Fund for 
     administrative expenses are as follows:
       Fiscal year 2007:
       (A) New budget authority, $4,692,000,000.
       (B) Outlays, $4,727,000,000.
       Fiscal year 2008:
       (A) New budget authority, $5,130,000,000.
       (B) Outlays, $5,105,000,000.
       Fiscal year 2009:
       (A) New budget authority, $5,284,000,000.
       (B) Outlays, $5,244,000,000.
       Fiscal year 2010:
       (A) New budget authority, $5,444,000,000.
       (B) Outlays, $5,417,000,000.
       Fiscal year 2011:
       (A) New budget authority, $5,612,000,000.
       (B) Outlays, $5,583,000,000.
       Fiscal year 2012:
       (A) New budget authority, $5,783,000,000.
       (B) Outlays, $5,753,000,000.

     SEC. 103. MAJOR FUNCTIONAL CATEGORIES.

       The Congress determines and declares that the appropriate 
     levels of new budget authority and outlays for fiscal years 
     2007 through 2012 for each major functional category are:
       (1) National Defense (050):
       Fiscal year 2007:
       (A) New budget authority, $619,363,000,000.
       (B) Outlays, $560,462,000,000.
       Fiscal year 2008:
       (A) New budget authority, $648,820,000,000.
       (B) Outlays, $617,842,000,000.
       Fiscal year 2009:
       (A) New budget authority, $584,775,000,000.
       (B) Outlays, $626,962,000,000.
       Fiscal year 2010:
       (A) New budget authority, $545,251,000,000.
       (B) Outlays, $572,856,000,000.
       Fiscal year 2011:
       (A) New budget authority, $551,054,000,000.
       (B) Outlays, $558,381,000,000.
       Fiscal year 2012:
       (A) New budget authority, $559,899,000,000.
       (B) Outlays, $551,763,000,000.
       (2) International Affairs (150):
       Fiscal year 2007:
       (A) New budget authority, $34,790,000,000.
       (B) Outlays, $32,015,000,000.
       Fiscal year 2008:
       (A) New budget authority, $39,214,000,000.
       (B) Outlays, $36,944,400,000.
       Fiscal year 2009:
       (A) New budget authority, $34,555,000,000.
       (B) Outlays, $35,101,600,000.
       Fiscal year 2010:
       (A) New budget authority, $34,859,000,000.
       (B) Outlays, $33,497,400,000.
       Fiscal year 2011:
       (A) New budget authority, $35,432,000,000.
       (B) Outlays, $33,376,600,000.
       Fiscal year 2012:
       (A) New budget authority, $35,984,000,000.
       (B) Outlays, $33,335,000,000.
       (3) General Science, Space, and Technology (250):
       Fiscal year 2007:
       (A) New budget authority, $25,079,000,000.
       (B) Outlays, $24,516,000,000.
       Fiscal year 2008:
       (A) New budget authority, $27,583,000,000.
       (B) Outlays, $26,353,000,000.
       Fiscal year 2009:
       (A) New budget authority, $26,925,000,000.
       (B) Outlays, $27,529,000,000.
       Fiscal year 2010:
       (A) New budget authority, $27,289,000,000.
       (B) Outlays, $27,651,000,000.
       Fiscal year 2011:
       (A) New budget authority, $27,654,000,000.
       (B) Outlays, $27,267,000,000.
       Fiscal year 2012:
       (A) New budget authority, $28,020,000,000.
       (B) Outlays, $27,593,000,000.
       (4) Energy (270):
       Fiscal year 2007:
       (A) New budget authority, $2,958,000,000.
       (B) Outlays, $1,384,000,000.
       Fiscal year 2008:
       (A) New budget authority, $3,662,000,000.
       (B) Outlays, $1,256,000,000.
       Fiscal year 2009:
       (A) New budget authority, $3,142,000,000.
       (B) Outlays, $1,659,000,000.
       Fiscal year 2010:
       (A) New budget authority, $3,198,000,000.
       (B) Outlays, $1,778,000,000.
       Fiscal year 2011:
       (A) New budget authority, $3,258,000,000.
       (B) Outlays, $1,766,000,000.
       Fiscal year 2012:
       (A) New budget authority, $3,306,000,000.
       (B) Outlays, $2,032,000,000.
       (5) Natural Resources and Environment (300):
       Fiscal year 2007:
       (A) New budget authority, $31,332,000,000.
       (B) Outlays, $32,905,000,000.
       Fiscal year 2008:
       (A) New budget authority, $32,933,000,000.
       (B) Outlays, $34,927,000,000.
       Fiscal year 2009:
       (A) New budget authority, $33,331,000,000.
       (B) Outlays, $35,250,000,000.
       Fiscal year 2010:
       (A) New budget authority, $33,999,000,000.
       (B) Outlays, $35,264,000,000.
       Fiscal year 2011:
       (A) New budget authority, $34,365,000,000.
       (B) Outlays, $35,337,000,000.
       Fiscal year 2012:
       (A) New budget authority, $35,098,000,000.
       (B) Outlays, $35,624,000,000.
       (6) Agriculture (350):
       Fiscal year 2007:
       (A) New budget authority, $26,207,000,000.
       (B) Outlays, $22,580,000,000.
       Fiscal year 2008:
       (A) New budget authority, $20,481,000,000.
       (B) Outlays, $21,497,000,000.
       Fiscal year 2009:
       (A) New budget authority, $20,984,000,000.
       (B) Outlays, $20,108,000,000.
       Fiscal year 2010:
       (A) New budget authority, $21,137,000,000.
       (B) Outlays, $20,118,000,000.
       Fiscal year 2011:
       (A) New budget authority, $21,099,000,000.
       (B) Outlays, $20,390,000,000.
       Fiscal year 2012:
       (A) New budget authority, $21,288,000,000.
       (B) Outlays, $20,763,000,000.
       (7) Commerce and Housing Credit (370):
       Fiscal year 2007:
       (A) New budget authority, $5,515,000,000.
       (B) Outlays, -$3,522,000,000.
       Fiscal year 2008:
       (A) New budget authority, $8,915,000,000.
       (B) Outlays, $1,882,000,000.
       Fiscal year 2009:
       (A) New budget authority, $8,602,000,000.
       (B) Outlays, $159,000,000.
       Fiscal year 2010:
       (A) New budget authority, $8,566,000,000.
       (B) Outlays, $178,000,000.
       Fiscal year 2011:
       (A) New budget authority, $8,591,000,000.
       (B) Outlays, -$27,000,000.
       Fiscal year 2012:
       (A) New budget authority, $8,772,000,000.
       (B) Outlays, $507,000,000.
       (8) Transportation (400):
       Fiscal year 2007:
       (A) New budget authority, $81,282,000,000.
       (B) Outlays, $74,739,000,000.
       Fiscal year 2008:
       (A) New budget authority, $83,872,000,000.
       (B) Outlays, $81,383,000,000.
       Fiscal year 2009:
       (A) New budget authority, $75,700,000,000.
       (B) Outlays, $84,032,000,000.
       Fiscal year 2010:
       (A) New budget authority, $76,253,000,000.
       (B) Outlays, $85,893,000,000.
       Fiscal year 2011:
       (A) New budget authority, $76,887,000,000.
       (B) Outlays, $86,307,000,000.
       Fiscal year 2012:
       (A) New budget authority, $77,476,000,000.
       (B) Outlays, $87,721,000,000.
       (9) Community and Regional Development (450):
       Fiscal year 2007:
       (A) New budget authority, $19,117,000,000.
       (B) Outlays, $28,281,000,000.
       Fiscal year 2008:
       (A) New budget authority, $15,415,000,000.
       (B) Outlays, $22,461,500,000.
       Fiscal year 2009:
       (A) New budget authority, $13,561,000,000.
       (B) Outlays, $21,264,000,000.
       Fiscal year 2010:
       (A) New budget authority, $13,742,000,000.
       (B) Outlays, $20,059,000,000.
       Fiscal year 2011:
       (A) New budget authority, $13,921,000,000.
       (B) Outlays, $18,076,000,000.
       Fiscal year 2012:
       (A) New budget authority, $14,098,000,000.
       (B) Outlays, $15,084,000,000.
       (10) Education, Training, Employment, and Social Services 
     (500):
       Fiscal year 2007:
       (A) New budget authority, $92,780,000,000.
       (B) Outlays, $92,224,000,000.
       Fiscal year 2008:
       (A) New budget authority, $93,889,000,000.
       (B) Outlays, $90,399,000,000.
       Fiscal year 2009:
       (A) New budget authority, $97,592,000,000.
       (B) Outlays, $93,948,000,000.
       Fiscal year 2010:
       (A) New budget authority, $99,366,000,000.
       (B) Outlays, $96,896,000,000.
       Fiscal year 2011:
       (A) New budget authority, $99,650,000,000.
       (B) Outlays, $98,473,000,000.
       Fiscal year 2012:
       (A) New budget authority, $100,104,000,000.
       (B) Outlays, $98,307,000,000.
       (11) Health (550):
       Fiscal year 2007:
       (A) New budget authority, $268,340,000,000.
       (B) Outlays, $268,645,000,000.
       Fiscal year 2008:
       (A) New budget authority, $291,266,000,000.
       (B) Outlays, $290,234,000,000.
       Fiscal year 2009:
       (A) New budget authority, $310,068,000,000.
       (B) Outlays, $308,329,000,000.

[[Page H4570]]

       Fiscal year 2010:
       (A) New budget authority, $333,219,000,000.
       (B) Outlays, $333,355,000,000.
       Fiscal year 2011:
       (A) New budget authority, $356,057,000,000.
       (B) Outlays, $355,356,000,000.
       Fiscal year 2012:
       (A) New budget authority, $379,814,000,000.
       (B) Outlays, $379,151,000,000.
       (12) Medicare (570):
       Fiscal year 2007:
       (A) New budget authority, $365,152,000,000.
       (B) Outlays, $370,180,000,000.
       Fiscal year 2008:
       (A) New budget authority, $389,969,000,000.
       (B) Outlays, $390,035,000,000.
       Fiscal year 2009:
       (A) New budget authority, $414,779,000,000.
       (B) Outlays, $414,440,000,000.
       Fiscal year 2010:
       (A) New budget authority, $439,862,000,000.
       (B) Outlays, $440,092,000,000.
       Fiscal year 2011:
       (A) New budget authority, $484,792,000,000.
       (B) Outlays, $484,811,000,000.
       Fiscal year 2012:
       (A) New budget authority, $481,008,000,000.
       (B) Outlays, $480,632,000,000.
       (13) Income Security (600):
       Fiscal year 2007:
       (A) New budget authority, $360,365,000,000.
       (B) Outlays, $364,204,000,000.
       Fiscal year 2008:
       (A) New budget authority, $379,759,000,000.
       (B) Outlays, $383,609,000,000.
       Fiscal year 2009:
       (A) New budget authority, $390,801,000,000.
       (B) Outlays, $393,118,000,000.
       Fiscal year 2010:
       (A) New budget authority, $400,706,000,000.
       (B) Outlays, $401,774,000,000.
       Fiscal year 2011:
       (A) New budget authority, $415,851,000,000.
       (B) Outlays, $415,874,000,000.
       Fiscal year 2012:
       (A) New budget authority, $401,275,000,000.
       (B) Outlays, $400,684,000,000.
       (14) Social Security (650):
       Fiscal year 2007:
       (A) New budget authority, $19,089,000,000.
       (B) Outlays, $19,089,000,000.
       Fiscal year 2008:
       (A) New budget authority, $19,644,000,000.
       (B) Outlays, $19,644,000,000.
       Fiscal year 2009:
       (A) New budget authority, $21,518,000,000.
       (B) Outlays, $21,518,000,000.
       Fiscal year 2010:
       (A) New budget authority, $23,701,000,000.
       (B) Outlays, $23,701,000,000.
       Fiscal year 2011:
       (A) New budget authority, $27,009,000,000.
       (B) Outlays, $27,009,000,000.
       Fiscal year 2012:
       (A) New budget authority, $29,898,000,000.
       (B) Outlays, $29,898,000,000.
       (15) Veterans Benefits and Services (700):
       Fiscal year 2007:
       (A) New budget authority, $73,896,000,000.
       (B) Outlays, $72,342,000,000.
       Fiscal year 2008:
       (A) New budget authority, $85,262,000,000.
       (B) Outlays, $84,424,000,000.
       Fiscal year 2009:
       (A) New budget authority, $87,372,000,000.
       (B) Outlays, $87,943,000,000.
       Fiscal year 2010:
       (A) New budget authority, $89,559,000,000.
       (B) Outlays, $89,210,000,000.
       Fiscal year 2011:
       (A) New budget authority, $94,707,000,000.
       (B) Outlays, $94,314,000,000.
       Fiscal year 2012:
       (A) New budget authority, $91,513,000,000.
       (B) Outlays, $90,957,000,000.
       (16) Administration of Justice (750):
       Fiscal year 2007:
       (A) New budget authority, $45,559,000,000.
       (B) Outlays, $44,709,000,000.
       Fiscal year 2008:
       (A) New budget authority, $48,796,000,000.
       (B) Outlays, $47,090,500,000.
       Fiscal year 2009:
       (A) New budget authority, $47,333,000,000.
       (B) Outlays, $48,622,900,000.
       Fiscal year 2010:
       (A) New budget authority, $48,106,000,000.
       (B) Outlays, $48,669,000,000.
       Fiscal year 2011:
       (A) New budget authority, $48,895,000,000.
       (B) Outlays, $48,976,000,000.
       Fiscal year 2012:
       (A) New budget authority, $49,686,000,000.
       (B) Outlays, $49,583,000,000.
       (17) General Government (800):
       Fiscal year 2007:
       (A) New budget authority, $18,196,000,000.
       (B) Outlays, $18,577,000,000.
       Fiscal year 2008:
       (A) New budget authority, $18,758,000,000.
       (B) Outlays, $19,118,000,000.
       Fiscal year 2009:
       (A) New budget authority, $19,214,000,000.
       (B) Outlays, $19,313,000,000.
       Fiscal year 2010:
       (A) New budget authority, $19,657,000,000.
       (B) Outlays, $19,573,000,000.
       Fiscal year 2011:
       (A) New budget authority, $20,222,000,000.
       (B) Outlays, $19,987,000,000.
       Fiscal year 2012:
       (A) New budget authority, $20,725,000,000.
       (B) Outlays, $20,606,000,000.
       (18) Net Interest (900):
       Fiscal year 2007:
       (A) New budget authority, $344,475,000,000.
       (B) Outlays, $344,475,000,000.
       Fiscal year 2008:
       (A) New budget authority, $370,425,000,000.
       (B) Outlays, $370,425,000,000.
       Fiscal year 2009:
       (A) New budget authority, $390,393,000,000.
       (B) Outlays, $390,393,000,000.
       Fiscal year 2010:
       (A) New budget authority, $412,002,000,000.
       (B) Outlays, $412,002,000,000.
       Fiscal year 2011:
       (A) New budget authority, $427,476,000,000.
       (B) Outlays, $427,476,000,000.
       Fiscal year 2012:
       (A) New budget authority, $438,455,000,000.
       (B) Outlays, $438,455,000,000.
       (19) Allowances (920):
       Fiscal year 2007:
       (A) New budget authority, $785,000,000.
       (B) Outlays, $755,000,000.
       Fiscal year 2008:
       (A) New budget authority, 
     -$16,724,000,000.
       (B) Outlays, -$7,519,400,000.
       Fiscal year 2009:
       (A) New budget authority, 
     -$7,296,000,000.
       (B) Outlays, -$7,068,500,000.
       Fiscal year 2010:
       (A) New budget authority, 
     -$7,390,000,000.
       (B) Outlays, -$7,935,400,000.
       Fiscal year 2011:
       (A) New budget authority, 
     -$7,481,000,000.
       (B) Outlays, -$7,823,600,000.
       Fiscal year 2012:
       (A) New budget authority, 
     -$7,574,000,000.
       (B) Outlays, -$7,761,000,000.
       (20) Undistributed Offsetting Receipts (950):
       Fiscal year 2007:
       (A) New budget authority, 
     -$69,714,000,000.
       (B) Outlays, -$69,714,000,000.
       Fiscal year 2008:
       (A) New budget authority, 
     -$71,754,000,000.
       (B) Outlays, -$71,754,000,000.
       Fiscal year 2009:
       (A) New budget authority, 
     -$67,035,000,000.
       (B) Outlays, -$67,044,000,000.
       Fiscal year 2010:
       (A) New budget authority, 
     -$67,458,000,000.
       (B) Outlays, -$67,458,000,000.
       Fiscal year 2011:
       (A) New budget authority, 
     -$70,175,000,000.
       (B) Outlays, -$70,195,000,000.
       Fiscal year 2012:
       (A) New budget authority, 
     -$72,557,000,000.
       (B) Outlays, -$72,560,000,000.

                        TITLE II--BUDGET PROCESS

     SEC. 201. PAY-AS-YOU-GO POINT OF ORDER IN THE SENATE.

       (a) 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 on-budget deficit or cause an on-budget 
     deficit for any 1 of 4 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 1 
     of the 4 following periods:
       (A) The current fiscal year.
       (B) The budget year.
       (C) The period of the 5 fiscal years following the current 
     fiscal year.
       (D) The period of the 5 fiscal years following the 5 fiscal 
     years referred to in subparagraph (C).
       (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 
     subsection shall--
       (A) use the baseline surplus or deficit used for the most 
     recently adopted concurrent resolution on the budget; and
       (B) be calculated under the requirements of subsections (b) 
     through (d) of section 257 of the Balanced Budget and 
     Emergency Deficit Control Act of 1985 for fiscal years beyond 
     those covered by that concurrent resolution on the budget.
       (6) Prior surplus.--If direct spending or revenue 
     legislation increases the on-budget deficit or causes an on-
     budget deficit when taken individually, it must also increase 
     the on-budget deficit or cause an on-budget 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 direct spending or revenue effects resulting in 
     net deficit reduction enacted in any bill pursuant to a 
     reconciliation instruction since the beginning of that same 
     calendar year shall never be made available on the pay-as-
     you-go ledger and shall be dedicated only for deficit 
     reduction.
       (b) Supermajority Waiver and Appeals.--

[[Page H4571]]

       (1) 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.
       (2) 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 to sustain an appeal of the ruling 
     of the Chair on a point of order raised under this section.
       (c) 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 Senate Committee on the Budget.
       (d) Sunset.--This section shall expire on September 30, 
     2017.
       (e) Repeal.--In the Senate, section 505 of H. Con. Res. 95 
     (108th Congress), the fiscal year 2004 concurrent resolution 
     on the budget, shall no longer apply.

     SEC. 202. POINT OF ORDER AGAINST RECONCILIATION LEGISLATION 
                   THAT WOULD INCREASE THE DEFICIT OR REDUCE A 
                   SURPLUS.

       (a) In General.--It shall not be in order in the Senate to 
     consider any reconciliation bill, resolution, amendment, 
     amendment between Houses, motion, or conference report 
     pursuant to section 310 of the Congressional Budget Act of 
     1974 that would cause or increase a deficit or reduce a 
     surplus in the current fiscal year, the budget year, the 
     period of the first 5 fiscal years following the current 
     fiscal year, or the period of the second 5 fiscal years 
     following the current fiscal year.
       (b) Supermajority Waiver and Appeal.--
       (1) Waiver.--This section may be waived or suspended in the 
     Senate only by an affirmative vote of three-fifths of the 
     Members, duly chosen and sworn.
       (2) Appeal.--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.

     SEC. 203. POINT OF ORDER AGAINST LEGISLATION INCREASING LONG-
                   TERM DEFICITS.

       (a) Congressional Budget Office Analysis of Proposals.--The 
     Director of the Congressional Budget Office shall, to the 
     extent practicable, prepare for each bill and joint 
     resolution reported from committee (except measures within 
     the jurisdiction of the Committee on Appropriations), and 
     amendments thereto and conference reports thereon, an 
     estimate of whether the measure would cause, relative to 
     current law, a net increase in deficits in excess of 
     $5,000,000,000 in any of the four 10-year periods beginning 
     in fiscal year 2018 through fiscal year 2057.
       (b) Point of Order.--In the Senate, it shall not be in 
     order to consider any bill, joint resolution, amendment, 
     motion, or conference report that would cause a net increase 
     in deficits in excess of $5,000,000,000 in any of the four 
     10-year periods beginning in 2018 through 2057.
       (c) Supermajority Waiver and Appeal.--
       (1) Waiver.--This section may be waived or suspended only 
     by the affirmative vote of three-fifths of the Members, duly 
     chosen and sworn.
       (2) Appeal.--An affirmative vote of three-fifths of the 
     Members, duly chosen and sworn, shall be required to sustain 
     an appeal of the ruling of the Chair on a point of order 
     raised under this section.
       (d) Determinations of Budget Levels.--For purposes of this 
     section, the levels of net deficit increases shall be 
     determined on the basis of estimates provided by the 
     Committee on the Budget of the Senate.
       (e) Repeal.--In the Senate, section 407 of H. Con. Res. 95 
     (109th Congress), the concurrent resolution on the budget for 
     fiscal year 2006, shall no longer apply.
       (f) Sunset.--This section shall expire on September 30, 
     2017.

     SEC. 204. EMERGENCY LEGISLATION.

       (a) Authority to Designate.--With respect to a provision of 
     direct spending or receipts legislation or appropriations for 
     discretionary accounts that the Congress designates as an 
     emergency requirement in such measure, the amounts of new 
     budget authority, outlays, and receipts in all fiscal years 
     resulting from that provision shall be treated as an 
     emergency requirement for the purpose of this section, except 
     that the authority to designate shall not apply to funding 
     for spinach producers on a supplemental appropriations bill 
     pursuant to subsection (f)(1) that is designated to 
     supplement funding for ongoing combat operations.
       (b) Exemption of Emergency Provisions.--Any new budget 
     authority, outlays, and receipts resulting from any provision 
     designated as an emergency requirement, pursuant to this 
     section, in any bill, joint resolution, amendment, or 
     conference report shall not count for purposes of sections 
     302 and 311 of the Congressional Budget Act of 1974 and 
     sections 201 and 207 of this resolution (relating to pay-as-
     you-go in the Senate and discretionary spending limits).
       (c) Designations.--If a provision of legislation is 
     designated as an emergency requirement under this section, 
     the committee report and any statement of managers 
     accompanying that legislation shall include an explanation of 
     the manner in which the provision meets the criteria in 
     subsection (f).
       (d) Definitions.--In this section, the terms ``direct 
     spending'', ``receipts'', and ``appropriations for 
     discretionary accounts'' means any provision of a bill, joint 
     resolution, amendment, motion, or conference report that 
     affects direct spending, receipts, or appropriations as those 
     terms have been defined and interpreted for purposes of the 
     Balanced Budget and Emergency Deficit Control Act of 1985.
       (e) Point of Order.--
       (1) In general.--When the Senate is considering a bill, 
     resolution, amendment, motion, or conference report, if a 
     point of order is made by a Senator against an emergency 
     designation in that measure, that provision making such a 
     designation shall be stricken from the measure and may not be 
     offered as an amendment from the floor.
       (2) Supermajority waiver and appeals.--
       (A) Waiver.--Paragraph (1) may be waived or suspended in 
     the Senate only by an affirmative vote of three-fifths of the 
     Members, duly chosen and sworn.
       (B) Appeals.--Appeals in the Senate from the decisions of 
     the Chair relating to any provision of this subsection 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 to sustain an appeal of the ruling 
     of the Chair on a point of order raised under this 
     subsection.
       (3) Definition of an emergency designation.--For purposes 
     of paragraph (1), a provision shall be considered an 
     emergency designation if it designates any item as an 
     emergency requirement pursuant to this subsection.
       (4) Form of the point of order.--A point of order under 
     paragraph (1) may be raised by a Senator as provided in 
     section 313(e) of the Congressional Budget Act of 1974.
       (5) Conference reports.--When the Senate is considering a 
     conference report on, or an amendment between the Houses in 
     relation to, a bill, upon a point of order being made by any 
     Senator pursuant to this section, and such point of order 
     being sustained, such material contained in such conference 
     report shall be deemed stricken, and the Senate shall proceed 
     to consider the question of whether the Senate shall recede 
     from its amendment and concur with a further amendment, or 
     concur in the House amendment with a further amendment, as 
     the case may be, which further amendment shall consist of 
     only that portion of the conference report or House 
     amendment, as the case may be, not so stricken. Any such 
     motion in the Senate shall be debatable. In any case in which 
     such point of order is sustained against a conference report 
     (or Senate amendment derived from such conference report by 
     operation of this subsection), no further amendment shall be 
     in order.
       (f) Criteria.--
       (1) In general.--For purposes of this section, any 
     provision is an emergency requirement if the situation 
     addressed by such provision is--
       (A) necessary, essential, or vital (not merely useful or 
     beneficial);
       (B) sudden, quickly coming into being, and not building up 
     over time;
       (C) an urgent, pressing, and compelling need requiring 
     immediate action;
       (D) subject to paragraph (2), unforeseen, unpredictable, 
     and unanticipated; and
       (E) not permanent, temporary in nature.
       (2) Unforeseen.--An emergency that is part of an aggregate 
     level of anticipated emergencies, particularly when normally 
     estimated in advance, is not unforeseen.
       (g) Repeal.--In the Senate, section 402 of H. Con. Res. 95 
     (109th Congress), the concurrent resolution on the budget for 
     fiscal year 2006, shall no longer apply.

     SEC. 205. EXTENSION OF ENFORCEMENT OF BUDGETARY POINTS OF 
                   ORDER.

       Notwithstanding any provision of the Congressional Budget 
     Act of 1974 and section 403 of H. Con. Res. 95 (109th 
     Congress), the concurrent resolution on the budget for fiscal 
     year 2006, subsections (c)(2) and (d)(3) of section 904 of 
     the Congressional Budget Act of 1974 and section 403 of H. 
     Con. Res. 95 (109th Congress) shall remain in effect for 
     purposes of Senate enforcement through September 30, 2017.

     SEC. 206. POINT OF ORDER AGAINST ADVANCE APPROPRIATIONS.

       (a) In General.--
       (1) Point of order.--Except as provided in subsection (b), 
     it shall not be in order in the Senate to consider any bill, 
     joint resolution, motion, amendment, or conference report 
     that would provide an advance appropriation.
       (2) Definition.--In this section, the term ``advance 
     appropriation'' means any new budget authority provided in a 
     bill or joint resolution making general appropriations or 
     continuing appropriations for fiscal year 2008 that first 
     becomes available for any fiscal year after 2008, or any new 
     budget authority provided in a bill or joint resolution 
     making general appropriations or continuing appropriations 
     for fiscal year 2009, that first becomes available for any 
     fiscal year after 2009.
       (b) Exceptions.--Advance appropriations may be provided--
       (1) for fiscal years 2009 and 2010 for programs, projects, 
     activities, or accounts identified in the joint explanatory 
     statement of managers accompanying this resolution under the 
     heading ``Accounts Identified for Advance Appropriations'' in 
     an aggregate amount not to exceed $25,158,000,000 in new 
     budget authority in each year; and

[[Page H4572]]

       (2) for the Corporation for Public Broadcasting.
       (c) Supermajority Waiver and Appeal.--
       (1) Waiver.--In the Senate, subsection (a) may be waived or 
     suspended only by an affirmative vote of three-fifths of the 
     Members, duly chosen and sworn.
       (2) Appeal.--An affirmative vote of three-fifths of the 
     Members of the Senate, duly chosen and sworn, shall be 
     required to sustain an appeal of the ruling of the Chair on a 
     point of order raised under paragraph (a).
       (d) Form of Point of Order.--A point of order under 
     subsection (a) may be raised by a Senator as provided in 
     section 313(e) of the Congressional Budget Act of 1974.
       (e) Conference Reports.--When the Senate is considering a 
     conference report on, or an amendment between the Houses in 
     relation to, a bill, upon a point of order being made by any 
     Senator pursuant to this section, and such point of order 
     being sustained, such material contained in such conference 
     report shall be deemed stricken, and the Senate shall proceed 
     to consider the question of whether the Senate shall recede 
     from its amendment and concur with a further amendment, or 
     concur in the House amendment with a further amendment, as 
     the case may be, which further amendment shall consist of 
     only that portion of the conference report or House 
     amendment, as the case may be, not so stricken. Any such 
     motion in the Senate shall be debatable. In any case in which 
     such point of order is sustained against a conference report 
     (or Senate amendment derived from such conference report by 
     operation of this subsection), no further amendment shall be 
     in order.
       (f) Repeal.--In the Senate, section 401 of H. Con. Res. 95 
     (109th Congress), the concurrent resolution on the budget for 
     fiscal year 2006, shall no longer apply.

     SEC. 207. DISCRETIONARY SPENDING LIMITS.

       (a) Point of Order.--
       (1) In general.--Except as otherwise provided in this 
     section, it shall not be in order in the Senate to consider 
     any bill or joint resolution (or amendment, motion, or 
     conference report on that bill or joint resolution) that 
     would cause the discretionary spending limits in this section 
     to be exceeded.
       (2) Supermajority waiver and appeals.--
       (A) Waiver.--This subsection may be waived or suspended in 
     the Senate only by the affirmative vote of three-fifths of 
     the Members, duly chosen and sworn.
       (B) Appeals.--Appeals in the Senate from the decisions of 
     the Chair relating to any provision of this subsection 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. An affirmative vote of three-fifths of the 
     Members of the Senate, duly chosen and sworn, shall be 
     required to sustain an appeal of the ruling of the Chair on a 
     point of order raised under this subsection.
       (b) Discretionary Spending Limits.--In the Senate and as 
     used in this section, the term ``discretionary spending 
     limit'' means--
       (1) for fiscal year 2007, $951,140,000,000 in new budget 
     authority and $1,029,456,000,000 in outlays; and
       (2) for fiscal year 2008, $942,295,000,000 in new budget 
     authority and $1,021,392,000,000 in outlays;

     as adjusted in conformance with the adjustment procedures in 
     subsection (c).
       (c) Adjustments.--
       (1) In general.--After the reporting of a bill or joint 
     resolution relating to any matter described in paragraph (2), 
     or the offering of an amendment thereto or the submission of 
     a conference report thereon--
       (A) the chairman of the Senate Committee on the Budget may 
     adjust the discretionary spending limits, budgetary 
     aggregates, and allocations pursuant to section 302(a) of the 
     Congressional Budget Act of 1974, by the amount of new budget 
     authority in that measure for that purpose and the outlays 
     flowing therefrom; and
       (B) following any adjustment under subparagraph (A), the 
     Senate Committee on Appropriations may report appropriately 
     revised suballocations pursuant to section 302(b) of the 
     Congressional Budget Act of 1974 to carry out this 
     subsection.
       (2) Matters described.--Matters referred to in paragraph 
     (1) are as follows:
       (A) Continuing disability reviews and ssi 
     redeterminations.--If a bill or joint resolution is reported 
     making appropriations for fiscal year 2008 that appropriates 
     $264,000,000 for continuing disability reviews and 
     Supplemental Security Income redeterminations for the Social 
     Security Administration, and provides an additional 
     appropriation of up to $213,000,000 for continuing disability 
     reviews and Supplemental Security Income redeterminations for 
     the Social Security Administration, then the discretionary 
     spending limits, allocation to the Senate Committee on 
     Appropriations, and aggregates may be adjusted by the amounts 
     provided in such legislation for that purpose, but not to 
     exceed $213,000,000 in budget authority and outlays flowing 
     therefrom for fiscal year 2008.
       (B) Internal revenue service tax enforcement.--If a bill or 
     joint resolution is reported making appropriations for fiscal 
     year 2008 that appropriates $6,822,000,000 for the Internal 
     Revenue Service for enhanced tax enforcement to address the 
     Federal tax gap (taxes owed but not paid) and provides an 
     additional appropriation of up to $406,000,000 for the 
     Internal Revenue Service for enhanced tax enforcement to 
     address the Federal tax gap, then the discretionary spending 
     limits, allocation to the Senate Committee on Appropriations, 
     and aggregates may be adjusted by the amounts provided in 
     such legislation for that purpose, but not to exceed 
     $406,000,000 in budget authority and outlays flowing 
     therefrom for fiscal year 2008.
       (C) Health care fraud and abuse control.--If a bill or 
     joint resolution is reported making appropriations for fiscal 
     year 2008 that appropriates up to $383,000,000 to the health 
     care fraud and abuse control program at the Department of 
     Health and Human Services, then the discretionary spending 
     limits, allocation to the Senate Committee on Appropriations, 
     and aggregates may be adjusted by the amounts provided in 
     such legislation for that purpose, but not to exceed 
     $383,000,000 in budget authority and outlays flowing 
     therefrom for fiscal year 2008.
       (D) Unemployment insurance improper payments reviews.--If a 
     bill or joint resolution is reported making appropriations 
     for fiscal year 2008 that appropriates $10,000,000 for 
     unemployment insurance improper payments reviews for the 
     Department of Labor, and provides an additional appropriation 
     of up to $40,000,000 for unemployment insurance improper 
     payments reviews for the Department of Labor, then the 
     discretionary spending limits, allocation to the Senate 
     Committee on Appropriations, and aggregates may be adjusted 
     by the amounts provided in such legislation for that purpose, 
     but not to exceed $40,000,000 in budget authority and outlays 
     flowing therefrom for fiscal year 2008.
       (E) Wildland fire suppression.--
       (i) Definition.--For this subparagraph, the term ``base 
     amount'' refers to the average of the obligations of the 
     preceding 10 years for wildfire suppression in the Forest 
     Service and the Department of the Interior, calculated as of 
     the date of the applicable year's budget request is submitted 
     by the President to Congress.
       (ii) Adjustments for fiscal year 2008.--If the amount 
     appropriated for Wildland Fire Suppression in fiscal year 
     2008 is not less than the base amount, then the chairman of 
     the Senate Committee on the Budget may adjust the appropriate 
     allocations, aggregates, discretionary spending limits, and 
     other budgetary levels in this resolution for any bill, joint 
     resolution, amendment, motion, or conference report that 
     provides additional funding for wildland fire suppression, by 
     the amounts provided in such legislation for such purpose, 
     but not to exceed the following amounts in budget authority 
     and the outlays flowing therefrom:

       (I) for the Forest Service, for fiscal year 2008, 
     $400,000,000; and
       (II) for the Department of the Interior, for fiscal year 
     2008, $100,000,000.

       (F) Costs of global war on terror.--The Chairman of the 
     Senate Committee on the Budget may revise the allocations, 
     aggregates, and discretionary spending limits for one or more 
     bills, joint resolutions, motions, amendments, or conference 
     reports that make discretionary appropriations for fiscal 
     year 2008 or 2009 in excess of the levels assumed in this 
     resolution for expenses related to the global war on terror, 
     but not to exceed the following amounts:
       (i) For fiscal year 2008, $145,162,000,000 in budget 
     authority and the outlays flowing therefrom.
       (ii) For fiscal year 2009, $50,000,000,000 in budget 
     authority and the outlays flowing therefrom.
       (G) Adjustment for united states forces in the global war 
     on terrorism.--The Chairman of the Senate Committee on the 
     Budget may revise the allocations, aggregates, and 
     discretionary spending limits for one or more bills, joint 
     resolutions, motions, amendments, or conference reports that 
     make discretionary appropriations for fiscal year 2008 for an 
     amount appropriated, but not to exceed $5,000,000,000 in 
     budgetary authority and outlays flowing therefrom, to--
       (i) address training, equipment, force protection, 
     logistics, or other matters necessary for the protection of 
     United States forces; or
       (ii) address deficiencies at Walter Reed Army Medical 
     Center and other facilities within the military medical 
     system providing treatment to service members injured while 
     performing their duties in the Global War on Terrorism.

     SEC. 208. APPLICATION OF PREVIOUS ALLOCATIONS IN THE SENATE.

       Section 7035 of Public Law 109-234 shall no longer apply in 
     the Senate.

     SEC. 209. POINT OF ORDER TO SAVE SOCIAL SECURITY FIRST.

       (a) Point of Order in the Senate.--It shall not be in order 
     in the Senate to consider any legislation that would increase 
     the on-budget deficit in any fiscal year until the President 
     submits legislation to Congress and Congress enacts 
     legislation which would restore 75-year solvency to the Old-
     Age, Survivors, and Disability Insurance Trust Funds as 
     certified by the Social Security Administration actuaries.
       (b) Supermajority Waiver and Appeal.--This section may be 
     waived or suspended in the Senate only by an affirmative vote 
     of three-fifths of the Members, duly chosen and sworn. 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.

[[Page H4573]]

     SEC. 210. POINT OF ORDER AGAINST LEGISLATION THAT RAISES 
                   INCOME TAX RATES.

       (a) In General.--It shall not be in order in the Senate to 
     consider any bill, resolution, amendment, amendment between 
     Houses, motion, or conference report that includes a Federal 
     income tax rate increase. In this subsection, the term 
     ``Federal income tax rate increase'' means any amendment to 
     subsection (a), (b), (c), (d), or (e) of section 1, or to 
     section 11(b) or 55(b), of the Internal Revenue Code of 1986, 
     that imposes a new percentage as a rate of tax and thereby 
     increases the amount of tax imposed by any such section.
       (b) Supermajority Waiver and Appeal.--
       (1) Waiver.--This section may be waived or suspended in the 
     Senate only by an affirmative vote of three-fifths of the 
     Members, duly chosen and sworn.
       (2) Appeal.--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.

     SEC. 211. CIRCUIT BREAKER TO PROTECT SOCIAL SECURITY.

       (a) Circuit Breaker.--If in any year the Congressional 
     Budget Office, in its report pursuant to section 202(e)(1) of 
     the Congressional Budget Act of 1974 projects an on-budget 
     deficit (excluding Social Security) for the budget year or 
     any subsequent fiscal year covered by those projections, then 
     the concurrent resolution on the budget for the budget year 
     shall reduce on-budget deficits relative to the projections 
     of Congressional Budget Office and put the budget on a path 
     to achieve on-budget balance within 5 years, and shall 
     include such provisions as are necessary to protect Social 
     Security and facilitate deficit reduction, except it shall 
     not contain any reduction in Social Security benefits.
       (b) Point of Order.--If in any year the Congressional 
     Budget Office, in its report pursuant to section 202(e)(1) of 
     the Congressional Budget Act of 1974 projects an on-budget 
     deficit for the budget year or any subsequent fiscal year 
     covered by those projections, it shall not be in order in the 
     Senate to consider a concurrent resolution on the budget for 
     the budget year or any conference report thereon that fails 
     to reduce on-budget deficits relative to the projections of 
     Congressional Budget Office and put the budget on a path to 
     achieve on-budget balance within 5 years.
       (c) Amendments to Budget Resolution.--If in any year the 
     Congressional Budget Office, in its report pursuant to 
     section 202(e)(1) of the Congressional Budget Act of 1974 
     projects an on-budget deficit for the budget year or any 
     subsequent fiscal year covered by those projections, it shall 
     not be in order in the Senate to consider an amendment to a 
     concurrent resolution on the budget that would increase on-
     budget deficits relative to the concurrent resolution on the 
     budget in any fiscal year covered by that concurrent 
     resolution on the budget or cause the budget to fail to 
     achieve on-budget balance within 5 years.
       (d) Suspension of Requirement During War or Low Economic 
     Growth.--
       (1) Low growth.--If the most recent of the Department of 
     Commerce's advance, preliminary, or final reports of actual 
     real economic growth indicate that the rate of real economic 
     growth (as measured by real GDP) for each of the most 
     recently reported quarter and the immediately preceding 
     quarter is less than 1 percent, this section is suspended.
       (2) War.--If a declaration of war is in effect, this 
     section is suspended.
       (e) Supermajority Waiver and Appeals.--
       (1) Waiver.--Subsections (b) and (c) may be waived or 
     suspended in the Senate only by an affirmative vote of three-
     fifths of the Members, duly chosen and sworn.
       (2) Appeals.--Appeals in the Senate from the decisions of 
     the Chair relating to any provision of this subsection 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 to sustain an appeal of the ruling 
     of the Chair on a point of order raised under this 
     subsection.
       (f) Budget Year.--In this section, the term ``budget year'' 
     shall have the same meaning as in section 250(c)(12) of the 
     Balanced Budget and Emergency Deficit Control Act of 1985.

     SEC. 212. POINT OF ORDER--20% LIMIT ON NEW DIRECT SPENDING IN 
                   RECONCILIATION LEGISLATION.

       (1) In the Senate.--It shall not be in order to consider 
     any reconciliation bill, joint resolution, motion, amendment, 
     or any conference report on, or an amendment between the 
     Houses in relation to a reconciliation bill pursuant to 
     section 310 of the Congressional Budget Act of 1974 that 
     produces an increase in outlays, if--
       (A) the effect of all the provisions in the jurisdiction of 
     any committee is to create gross new direct spending that 
     exceeds 20% of the total savings instruction to the 
     committee; or
       (B) the effect of the adoption of an amendment would result 
     in gross new direct spending that exceeds 20% of the total 
     savings instruction to the committee.
       (2)(A) A point of order under paragraph (1) may be raised 
     by a Senator as provided in section 313(e) of the 
     Congressional Budget Act of 1974.
       (B) Paragraph (1) may be waived or suspended only by an 
     affirmative vote of three-fifths of the Members, duly chosen 
     and sworn. An affirmative vote of three-fifths of the Members 
     of the Senate, duly chosen and sworn, shall be required to 
     sustain an appeal of the ruling of the Chair on a point of 
     order raised under paragraph (1).
       (C) If a point of order is sustained under paragraph (1) 
     against a conference report in the Senate, the report shall 
     be disposed of as provided in section 313(d) of the 
     Congressional Budget Act of 1974.

     SEC. 213. POINT OF ORDER AGAINST LEGISLATION THAT RAISES 
                   INCOME TAX RATES FOR SMALL BUSINESSES, FAMILY 
                   FARMS, OR FAMILY RANCHES.

       (a) In General.--It shall not be in order in the Senate to 
     consider any bill, resolution, amendment, amendment between 
     Houses, motion, or conference report that includes a Federal 
     income tax rate increase on incomes generated by small 
     businesses (within the meaning of section 474(c) of the 
     Internal Revenue Code of 1986) or family farms or family 
     ranches (within the meaning of section 2032A of such Code) 
     (regardless of the manner by which such businesses, farms and 
     ranches are organized). In this subsection, the term 
     ``Federal income tax rate increase'' means any amendment to 
     subsection (a), (b), (c), (d), or (e) of section 1, or to 
     section 11(b) or 55(b), of the Internal Revenue Code of 1986, 
     that imposes a new percentage as a rate of tax and thereby 
     increases the amount of tax imposed by any such section.
       (b) Supermajority Waiver and Appeal.--
       (1) Waiver.--This section may be waived or suspended in the 
     Senate only by an affirmative vote of three-fifths of the 
     Members, duly chosen and sworn.
       (2) Appeal.--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.

     SEC. 214. POINT OF ORDER AGAINST PROVISIONS OF APPROPRIATIONS 
                   LEGISLATION THAT CONSTITUTES CHANGES IN 
                   MANDATORY PROGRAMS WITH NET COSTS.

       (a) In General.--It shall not be in order in the Senate to 
     consider any appropriations legislation, including any 
     amendment thereto, motion in relation thereto, or conference 
     report thereon, which includes one or more provisions that 
     would have been estimated as affecting direct spending or 
     receipts under section 252 of the Balanced Budget and 
     Emergency Deficit Control Act of 1985 (as in effect prior to 
     September 30, 2002) were they included in legislation other 
     than appropriations legislation, if such provision has a net 
     cost over the total of the period of the current year, the 
     budget year, and all fiscal years covered under the most 
     recently adopted concurrent resolution on the budget.
       (b) Determination.--For purposes of this section, the 
     determination of whether a provision violates paragraph (a) 
     shall be made by the Committee on the Budget of the Senate.
       (c) Supermajority Waiver and Appeal.--This section may be 
     waived or suspended only by an affirmative vote of three-
     fifths of the Members, duly chosen and sworn. An affirmative 
     vote of three-fifths of the Members of the Senate, duly 
     chosen and sworn, shall be required to sustain an appeal of 
     the ruling of the Chair on a point of order raised under this 
     section.
       (d) General Point of Order.--It shall be in order for a 
     Senator to raise a single point of order that several 
     provisions of a bill, resolution, amendment, motion, or 
     conference report violate this section. The Presiding Officer 
     may sustain the point of order as to some or all of the 
     provisions against which the Senator raised the point of 
     order. If the Presiding Officer so sustains the point of 
     order as to some of the provisions (including provisions of 
     an amendment, motion, or conference report) against which the 
     Senator raised the point of order, then only those provisions 
     (including provision of an amendment, motion, or conference 
     report) against which the Presiding Officer sustains the 
     point of order shall be deemed stricken pursuant to this 
     section. Before the Presiding Officer rules on such a point 
     of order, any Senator may move to waive such a point of order 
     as it applies to some or all of the provisions against which 
     the point of order was raised. Such a motion to waive is 
     amendable in accordance with rules and precedents of the 
     Senate. After the Presiding Officer rules on such a point of 
     order, any Senator may appeal the ruling of the Presiding 
     Officer on such a point of order as it applies to some or all 
     of the provisions on which the Presiding Officer ruled.
       (e) Form of the Point of Order.--When the Senate is 
     considering a conference report on, or an amendment between 
     the Houses in relation to, a bill, upon a point of order 
     being made by any Senator pursuant to this section, and such 
     point of order being sustained, such material contained in 
     such conference report or amendment shall be deemed stricken, 
     and the Senate shall proceed to consider the question of 
     whether the Senate shall recede from its amendment and concur 
     with a further amendment, or concur in the House amendment 
     with a further amendment, as the case may be, which further 
     amendment shall consist of only that portion of the 
     conference report or House amendment, as the case may be, not 
     so stricken. Any such motion shall be debatable. In any case 
     in which such point of order

[[Page H4574]]

     is sustained against a conference report (or Senate amendment 
     derived from such conference report by operation of this 
     subsection), no further amendment shall be in order.

     SEC. 215. DISCLOSURE OF INTEREST COSTS.

       (a) Point of Order.--It shall not be in order in the Senate 
     to consider any direct spending or revenue legislation that 
     is required to contain the statement described in section 
     308(a) of the Congressional Budget Act of 1974, unless such 
     statement contains a projection by the Congressional Budget 
     Office of the cost of the debt servicing that would be caused 
     by such legislation for such fiscal year (or fiscal years) 
     and each of the 4 ensuing fiscal years.
       (b) Supermajority Waiver and Appeal.--
       (1) Waiver.--In the Senate, subsection (a) may be waived or 
     suspended only by an affirmative vote of three-fifths of the 
     Members, duly chosen and sworn.
       (2) Appeal.--An affirmative vote of three-fifths of the 
     Members of the Senate, duly chosen and sworn, shall be 
     required to sustain an appeal of the ruling of the Chair on a 
     point of order raised under subsection (a).

                TITLE III--RESERVE FUNDS AND ADJUSTMENTS

     SEC. 301. DEFICIT-NEUTRAL RESERVE FUND FOR SCHIP LEGISLATION.

       (a) Priority.--The Senate establishes the following 
     priorities and makes the following findings:
       (1) The Senate shall make the enactment of legislation to 
     reauthorize the State Children's Health Insurance Program 
     (SCHIP) a top priority for the remainder of fiscal year 2007, 
     during the first session of the 110th Congress.
       (2) Extending health care coverage to the Nation's 
     vulnerable uninsured children is an urgent priority for the 
     Senate.
       (3) SCHIP has proven itself a successful program for 
     covering previously uninsured children.
       (4) More than 6 million children are enrolled in this 
     landmark program, which has enjoyed broad bipartisan support 
     in Congress, among our Nation's governors, and within state 
     and local governments.
       (5) SCHIP reduces the percentage of children with unmet 
     health care needs.
       (6) Since SCHIP was created, enormous progress has been 
     made in reducing disparities in children's coverage rates.
       (7) Uninsured children who gain coverage through SCHIP 
     receive more preventive care and their parents report better 
     access to providers and improved communications with their 
     children's doctors.
       (8) Congress has a responsibility to reauthorize SCHIP 
     before the expiration of its current authorization.
       (b) Reserve Fund.--The Chairman of the Senate Committee on 
     the Budget may revise the allocations, aggregates, and other 
     appropriate levels in this resolution for a bill, joint 
     resolution, amendment, motion, or conference report that 
     provides up to $50,000,000,000 for reauthorization of the 
     State Children's Health Insurance Program (SCHIP), if such 
     legislation maintains coverage for those currently enrolled 
     in SCHIP, continues efforts to reach uninsured children who 
     are already eligible for SCHIP or Medicaid but are not 
     enrolled, and supports States in their efforts to move 
     forward in covering more children, by the amounts provided in 
     that legislation for those purposes up to $20,000,000,000 
     over the total of fiscal years 2007 through 2012, provided 
     that such legislation would not increase the deficit over the 
     total of the period of fiscal years 2007 through 2012. Among 
     the policy changes that could be considered to achieve 
     offsets to the cost of reauthorizing the State Children's 
     Health Insurance Program and expanding coverage for children 
     is an increase in the tobacco products user fee rate with all 
     revenue generated by such increase dedicated to such 
     reauthorization and expansion.

     SEC. 302. DEFICIT-NEUTRAL RESERVE FUND FOR CARE OF WOUNDED 
                   SERVICE MEMBERS.

       The Chairman of the Senate Committee on the Budget may 
     revise the allocations, aggregates, and other appropriate 
     levels in this resolution for a bill, joint resolution, 
     amendment, motion, or conference report which improves the 
     medical care of or disability benefits for wounded or 
     disabled military personnel or veterans (including the 
     elimination of the offset between Survivor Benefit Plan 
     annuities and veterans' dependency and indemnity 
     compensation) or improves the disability evaluations of 
     military personnel or veterans to expedite the claims 
     process, by the amounts provided in that legislation for that 
     purpose, provided that such legislation would not increase 
     the deficit over the total of the period of fiscal years 2007 
     through 2012.

     SEC. 303. DEFICIT-NEUTRAL RESERVE FUND FOR TAX RELIEF.

       The Chairman of the Senate Committee on the Budget may 
     revise the aggregates, allocations, and other appropriate 
     levels in this resolution for one or more bills, joint 
     resolutions, amendments, motions, or conference reports that 
     would provide tax relief, including extensions of expiring 
     tax relief, such as enhanced charitable giving from 
     individual retirement accounts, and refundable tax relief and 
     including the reauthorization of the new markets tax credit 
     under section 45D of the Internal Revenue Code of 1986 for an 
     additional 5 years, by the amounts provided in that 
     legislation for those purposes, provided that such 
     legislation would not increase the deficit over the total of 
     the period of fiscal years 2007 through 2012.

     SEC. 304. DEFICIT-NEUTRAL RESERVE FUND FOR COMPARATIVE 
                   EFFECTIVENESS RESEARCH.

       The Chairman of the Senate Committee on the Budget may 
     revise the aggregates, allocations, and other appropriate 
     levels in this resolution for a bill, joint resolution, 
     amendment, motion, or conference report that establishes a 
     new federal or public-private initiative for comparative 
     effectiveness research, by the amounts provided in such 
     legislation for that purpose, provided that such legislation 
     would not increase the deficit over the total of fiscal years 
     2007 through 2012.

     SEC. 305. DEFICIT-NEUTRAL RESERVE FUND FOR HIGHER EDUCATION.

       The Chairman of the Senate Committee on the Budget may 
     revise the aggregates, allocations, and other appropriate 
     levels in this resolution for a bill, joint resolution, 
     amendment, motion, or conference report, including tax 
     legislation, that would make higher education more accessible 
     and more affordable, by the amounts provided in such 
     legislation for that purpose, provided that such legislation 
     would not increase the deficit over the total of the period 
     of fiscal years 2007 through 2012.

     SEC. 306. DEFICIT-NEUTRAL RESERVE FUND FOR THE FARM BILL.

       The Chairman of the Senate Committee on the Budget may 
     revise the allocations, aggregates, and other appropriate 
     levels and limits in this resolution for a bill, joint 
     resolution, amendment, motion, or conference report that--
       (1) reauthorizes the Food Security and Rural Investment Act 
     of 2002;
       (2) strengthens our agriculture and rural economies and 
     critical nutrition programs;
       (3) provides agriculture-related tax relief;
       (4) improves our environment by reducing our Nation's 
     dependence on foreign sources of energy through expanded 
     production and use of alternative fuels; or
       (5) combines any of the purposes provided in paragraphs (1) 
     through (4);

     by the amounts provided in that legislation for those 
     purposes up to $15,000,000,000 over the total of fiscal years 
     2007 through 2012, provided that such legislation would not 
     increase the deficit over the total of the period of fiscal 
     years 2007 through 2012.

     SEC. 307. DEFICIT-NEUTRAL RESERVE FUND FOR ENERGY 
                   LEGISLATION.

       The Chairman of the Senate Committee on the Budget may 
     revise the allocations, aggregates, and other appropriate 
     levels and limits in this resolution for one or more bills, 
     joint resolutions, amendments, motions, or conference 
     reports, including tax legislation, that would reduce our 
     Nation's dependence on foreign sources of energy, expand 
     production and use of alternative fuels and alternative fuel 
     vehicles, promote renewable energy development, improve 
     electricity transmission, encourage responsible development 
     of domestic oil and natural gas resources, or reward 
     conservation and efficiency, by the amounts provided in that 
     legislation for those purposes, provided that such 
     legislation would not increase the deficit over the total of 
     the period of fiscal years 2007 through 2012.

     SEC. 308. DEFICIT-NEUTRAL RESERVE FUND FOR MEDICARE.

       (a) Prescription Drugs.--The Chairman of the Senate 
     Committee on the Budget may revise the aggregates, 
     allocations, and other appropriate levels in this resolution 
     for a bill, joint resolution, amendment, motion, or 
     conference report that repeals the prohibition in section 
     1860D-11(i)(1) of the Social Security Act (42 U.S.C. 1395w-
     111(i)(1)) while preserving access to prescription drugs and 
     price competition without requiring a particular formulary or 
     instituting a price structure for reimbursement of covered 
     Part D drugs, provided that such legislation would not 
     increase the deficit over the total of fiscal years 2007 
     through 2012 and provided further that any savings from the 
     measure are to be used either to improve the Medicare Part D 
     benefit or for deficit reduction.
       (b) Physician Payments.--The Chairman of the Senate Budget 
     Committee may revise the aggregates, allocations, and other 
     appropriate levels in this resolution for a bill, joint 
     resolution, amendment, motion, or conference report that 
     increases the reimbursement rate for physician services under 
     section 1848(d) of the Social Security Act and that includes 
     financial incentives for physicians to improve the quality 
     and efficiency of items and services furnished to Medicare 
     beneficiaries through the use of consensus-based quality 
     measures, by the amounts provided in such legislation for 
     that purpose, provided that the legislation would not 
     increase the deficit over the total of fiscal years 2007 
     through 2012.
       (c) Improvements to Medicare Part D.--The Chairman of the 
     Senate Budget Committee may revise the aggregates, 
     allocations, and other appropriate levels in this resolution 
     for a bill, joint resolution, amendment, motion, or 
     conference report that makes improvements to the prescription 
     drug benefit under Medicare Part D, by the amounts provided 
     in such legislation for that purpose up to $5,000,000,000, 
     provided that the legislation would not increase the deficit 
     over the total of fiscal years 2007 through 2012.

     SEC. 309. DEFICIT-NEUTRAL RESERVE FUND FOR SMALL BUSINESS 
                   HEALTH INSURANCE.

       The Chairman of the Senate Committee on the Budget may 
     revise the allocations, aggregates, and other appropriate 
     levels in this

[[Page H4575]]

     resolution for a bill, joint resolution, motion, amendment, 
     or conference report that makes health insurance coverage 
     more affordable or available to small businesses and their 
     employees without weakening rating rules or reducing covered 
     benefits, by the amounts provided in such legislation for 
     that purpose, provided that the legislation would not 
     increase the deficit over the total of fiscal years 2007 
     through 2012.

     SEC. 310. DEFICIT-NEUTRAL RESERVE FUND FOR COUNTY PAYMENTS 
                   FOR SECURE RURAL SCHOOLS AND COMMUNITY SELF-
                   DETERMINATION ACT OF 2000 REAUTHORIZATION.

       The Chairman of the Senate Committee on the Budget may 
     revise the allocations, aggregates, and other appropriate 
     levels in this resolution for a bill, joint resolution, 
     amendment, motion, or conference report that provides for the 
     reauthorization of the Secure Rural Schools and Community 
     Self-Determination Act of 2000 (Public Law 106-393), by the 
     amounts provided by that legislation for that purpose, but 
     not to exceed $440,000,000 in new budget authority for fiscal 
     year 2008 and the outlays flowing from that budget authority 
     and $2,240,000,000 in new budget authority for the period of 
     fiscal years 2008 through 2012 and the outlays flowing from 
     that budget authority, provided that such legislation would 
     not increase the deficit over the total of the period of 
     fiscal years 2007 through 2012.

     SEC. 311. DEFICIT-NEUTRAL RESERVE FUND FOR TERRORISM RISK 
                   INSURANCE REAUTHORIZATION.

       The Chairman of the Senate Budget Committee may revise the 
     aggregates, allocations, and other levels in this resolution 
     for a bill, joint resolution, motion, amendment, or 
     conference report that provides for a continued Federal role 
     in ensuring the availability of terrorism insurance after the 
     expiration of the Terrorism Risk Insurance Extension Act, by 
     the amounts provided in such legislation for that purpose, 
     provided that such legislation is deficit-neutral over the 
     total of fiscal years 2007 through 2012.

     SEC. 312. DEFICIT-NEUTRAL RESERVE FUND FOR AFFORDABLE 
                   HOUSING.

       The Chairman of the Senate Budget Committee may revise the 
     aggregates, allocations, and other levels in this resolution 
     for a bill, joint resolution, motion, amendment, or 
     conference report that would establish an affordable housing 
     fund financed by the housing government-sponsored 
     enterprises, by the amounts provided in such legislation for 
     that purpose, provided that the legislation is deficit-
     neutral over the total of fiscal years 2007 through 2012.

     SEC. 313. DEFICIT-NEUTRAL RESERVE FUND FOR RECEIPTS FROM 
                   BONNEVILLE POWER ADMINISTRATION.

       The Chairman of the Senate Committee on the Budget may 
     adjust the allocations, aggregates, and other appropriate 
     levels in this resolution for a bill, joint resolution, 
     motion, amendment, or conference report that prohibits the 
     Bonneville Power Administration from making early payments on 
     its Federal Bond Debt to the United States Treasury, by the 
     amounts provided by that legislation for that purpose, 
     provided that such legislation would not increase the deficit 
     over the total of the period of fiscal years 2007 through 
     2012.

     SEC. 314. DEFICIT-NEUTRAL RESERVE FUND FOR INDIAN CLAIMS 
                   SETTLEMENT.

       The Chairman of the Senate Committee on the Budget may 
     revise the aggregates, allocations, and other appropriate 
     levels in this resolution for a bill, joint resolution, 
     amendment, motion, or conference report that--
       (1) creates an Indian claims settlement fund for trust 
     accounting and management deficiencies related to Individual 
     Indian Moneys and assets; and
       (2) extinguishes all claims arising before the date of 
     enactment for losses resulting from accounting errors, 
     mismanagement of assets, or interest owed in connection with 
     Individual Indian Moneys accounts;

     by the amounts provided in such legislation for those 
     purposes up to $8,000,000,000, provided that such legislation 
     does not increase the deficit over the total of the period of 
     fiscal years 2007 through 2012.

     SEC. 315. DEFICIT-NEUTRAL RESERVE FUND FOR FOOD AND DRUG 
                   ADMINISTRATION.

       The Chairman of the Senate Committee on the Budget may 
     revise the allocations, aggregates, and other appropriate 
     levels and limits in this resolution for a bill, joint 
     resolution, motion, amendment, or conference report that 
     authorizes the Food and Drug Administration to regulate 
     tobacco products and assess user fees on tobacco 
     manufacturers and importers to cover the cost of the Food and 
     Drug Administration's regulatory activities, by the amounts 
     provided in that legislation for that purpose, provided that 
     such legislation is deficit-neutral over the total of fiscal 
     years 2007 through 2012.

     SEC. 316. DEFICIT-NEUTRAL RESERVE FUND FOR HEALTH CARE 
                   REFORM.

       If an SCHIP reauthorization bill is enacted, then the 
     Chairman of the Senate Committee on the Budget may revise the 
     allocations, aggregates, and other appropriate levels in this 
     resolution for a bill, joint resolution, motion, amendment, 
     or conference report to improve health care, and provide 
     quality health insurance for the uninsured and underinsured, 
     and protect individuals with current health coverage, by the 
     amounts provided in that legislation for that purpose, 
     provided that such legislation would not increase the deficit 
     over the total of the period of fiscal years 2007 through 
     2012.

     SEC. 317. DEFICIT-NEUTRAL RESERVE FUND FOR ENHANCEMENT OF 
                   VETERANS' BENEFITS.

       The Chairman of the Senate Budget Committee may revise the 
     aggregates, allocations, and other levels in this resolution 
     for a bill, joint resolution, motion, amendment, or 
     conference report that would enhance benefits for veterans, 
     including services for low-vision and blinded veterans, 
     including GI educational benefits, by the amounts provided in 
     such legislation for that purpose, provided that such 
     legislation is deficit-neutral over the total of fiscal years 
     2007 through 2012.

     SEC. 318. DEFICIT-NEUTRAL RESERVE FUND FOR LONG-TERM CARE.

       The Chairman of the Senate Budget Committee may revise the 
     allocations, aggregates, and other levels in this resolution 
     for a bill, joint resolution, motion, amendment, or 
     conference report that would improve long-term care, enhance 
     the safety and dignity of patients, encourage appropriate use 
     of institutional and non-institutional care, promote quality 
     care, and provide for the cost-effective use of public 
     resources, by the amounts provided in such legislation for 
     that purpose, provided that the legislation would not 
     increase the deficit over the total of fiscal years 2007 
     through 2012.

     SEC. 319. DEFICIT-NEUTRAL RESERVE FUND FOR HEALTH INFORMATION 
                   TECHNOLOGY.

       (a) The Chairman of the Senate Budget Committee may revise 
     the aggregates, allocations, and other appropriate levels in 
     this resolution for a bill, joint resolution, amendment, 
     motion, or conference report that provides incentives or 
     other support for adoption of modern information technology 
     to improve quality and protect privacy in health care, by the 
     amounts provided in such legislation for that purpose, 
     provided that the legislation would not increase the deficit 
     over the total of fiscal years 2007 through 2012.
       (b) The Chairman of the Senate Budget Committee may revise 
     the aggregates, allocations, and other appropriate levels in 
     this resolution for a bill, joint resolution, amendment, 
     motion, or conference report that provides for payments that 
     are based on adherence to accepted clinical protocols 
     identified as best practices, by the amounts provided in such 
     legislation for that purpose, provided that the legislation 
     would not increase the deficit over the total of fiscal years 
     2007 through 2012.

     SEC. 320. DEFICIT-NEUTRAL RESERVE FUND FOR CHILD CARE.

       The Chairman of the Senate Committee on the Budget may 
     revise the allocations, aggregates, and other levels in this 
     resolution for a bill, joint resolution, amendment, motion, 
     or conference report that provides up to $5,000,000,000 for 
     the child care entitlement to States, by the amounts provided 
     by such legislation for that purpose, provided that the 
     legislation would not increase the deficit over the total of 
     fiscal years 2007 through 2012.

     SEC. 321. DEFICIT-NEUTRAL RESERVE FUND FOR COMPREHENSIVE 
                   IMMIGRATION REFORM.

       The Chairman of the Senate Committee on the Budget may 
     revise the allocations, aggregates, and other appropriate 
     levels in this resolution for a bill, joint resolution, 
     amendment, motion or conference report that--
       (1) provides for comprehensive immigration reform;
       (2) provides for increased interior enforcement, through an 
     effective electronic employment verification system which 
     accurately establishes the employment authorization of 
     individuals; and
       (3) provides for increased border security and enhanced 
     information technology systems;

     provided that such legislation would not increase the deficit 
     for the fiscal year 2008 and for the period of fiscal years 
     2008 through 2012.

     SEC. 322. DEFICIT-NEUTRAL RESERVE FUND FOR MENTAL HEALTH 
                   PARITY.

       If the Senate Committee on Health, Education, Labor, and 
     Pensions reports a bill or joint resolution, or an amendment 
     is offered thereto, or a conference report is submitted 
     thereon, that provides parity between health insurance 
     coverage of mental health benefits and benefits for medical 
     and surgical services, the chairman of the Committee on the 
     Budget of the Senate may make the appropriate adjustments in 
     allocations and aggregates to the extent that such 
     legislation would not increase the deficit for fiscal year 
     2008 and for the period of fiscal years 2008 through 2012.

     SEC. 323. DEFICIT-NEUTRAL RESERVE FUND FOR PRESCHOOL 
                   OPPORTUNITIES.

       If the Committee on Health, Education, Labor, and Pensions 
     of the Senate, reports a bill or a joint resolution, or an 
     amendment is offered in the Senate to such a bill or joint 
     resolution, or a conference report is submitted to the Senate 
     on a such a bill or joint resolution, that augments or 
     establishes a Federal program that provides assistance to 
     States that offer or expand preschool to children of low-
     income families, the Chairman of the Committee on the Budget 
     of the Senate may revisit the aggregates, allocations, and 
     other appropriate levels in this resolution by amounts 
     provided in such measure for that purpose, provided that such 
     legislation would not increase the deficit for the total of 
     the period of fiscal years 2007 through 2012.

[[Page H4576]]

     SEC. 324. DEFICIT-NEUTRAL RESERVE FUND FOR THE SAFE 
                   IMPORTATION OF FDA-APPROVED PRESCRIPTION DRUGS.

       The Chairman of the Senate Committee on the Budget may 
     revise the aggregates, allocations, and other levels in this 
     resolution for a bill, joint resolution, motion, amendment, 
     or conference report that permits the safe importation of 
     prescription drugs approved by the Food and Drug 
     Administration from a specified list of countries, by the 
     amounts provided in such legislation for that purpose, 
     provided that such legislation would not increase the deficit 
     over the total of the period of fiscal years 2007 through 
     2012.

     SEC. 325. APPLICATION AND EFFECT OF CHANGES IN ALLOCATIONS 
                   AND AGGREGATES.

       (a) Application.--Any adjustments of allocations and 
     aggregates made pursuant to this resolution shall--
       (1) apply while that measure is under consideration;
       (2) take effect upon the enactment of that measure; and
       (3) be published in the Congressional Record as soon as 
     practicable.
       (b) Effect of Changed Allocations and Aggregates.--Revised 
     allocations and aggregates resulting from these adjustments 
     shall be considered for the purposes of the Congressional 
     Budget Act of 1974 as allocations and aggregates contained in 
     this resolution.
       (c) Budget Committee Determinations.--For purposes of this 
     resolution the levels of new budget authority, outlays, 
     direct spending, new entitlement authority, revenues, 
     deficits, and surpluses for a fiscal year or period of fiscal 
     years shall be determined on the basis of estimates made by 
     the Senate Committee on the Budget.

     SEC. 326. ADJUSTMENTS TO REFLECT CHANGES IN CONCEPTS AND 
                   DEFINITIONS.

       Upon the enactment of a bill or joint resolution providing 
     for a change in concepts or definitions, the chairman of the 
     Senate Committee on the Budget may make adjustments to the 
     levels and allocations in this resolution in accordance with 
     section 251(b) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985 (as in effect prior to September 30, 
     2002).

     SEC. 327. EXERCISE OF RULEMAKING POWERS.

       Congress adopts the provisions of this title--
       (1) as an exercise of the rulemaking power of the Senate, 
     and as such they shall be considered as part of the rules of 
     the Senate and such rules shall supersede other rules only to 
     the extent that they are inconsistent with such other rules; 
     and
       (2) with full recognition of the constitutional right of 
     the Senate 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 is the case of any other rule of the Senate.

     SEC. 328. DEFICIT-NEUTRAL RESERVE FUND FOR EXPANSION OF 
                   ABOVE-THE-LINE DEDUCTION FOR TEACHER CLASSROOM 
                   SUPPLIES.

       The Chairman of the Senate Committee on the Budget may 
     revise the allocations, aggregates, and other levels in this 
     resolution by the amounts provided by a bill, joint 
     resolution, amendment, motion, or conference report that 
     would permanently extend and increase to $400 the above-the-
     line deduction for teacher classroom supplies and expand such 
     deduction to include qualified professional development 
     expenses, provided that such legislation would not increase 
     the deficit over the total of the period of fiscal years 2007 
     through 2012.

     SEC. 329. ADJUSTMENT FOR SMITHSONIAN INSTITUTION SALARIES AND 
                   EXPENSES.

       (a) In General.--The Chairman of the Senate Committee on 
     the Budget may revise the allocations, aggregates, and 
     discretionary spending limits for one or more bills, joint 
     resolutions, motions, amendments, or conference reports that 
     make discretionary appropriations for fiscal year 2008 for an 
     amount appropriated, but not to exceed $17,000,000 in 
     budgetary authority and outlays flowing therefrom, once the 
     Comptroller General of the United States has submitted a 
     certification to Congress that since April 1, 2007--
       (1) the Smithsonian Institution does not provide total 
     annual compensation for any officer or employee of the 
     Smithsonian Institution greater than the total annual 
     compensation of the President of the United States;
       (2) the Smithsonian Institution does not provide deferred 
     compensation for any such officer or employee greater than 
     the deferred compensation of the President of the United 
     States;
       (3) all Smithsonian Institution travel expenditures conform 
     with Federal Government guidelines and limitations applicable 
     to the Smithsonian Institution; and,
       (4) all Smithsonian Institution officers and employees are 
     subject to ethics rules similar to the ethics rules widely 
     applicable to Federal Government employees.
       (b) Criteria for Certification.--In making the 
     certification described in subsection (a), the Comptroller 
     General of the United States should take into account the 
     following:
       (1) The Smithsonian Institution is a premier educational, 
     historical, artistic, research, and cultural organization for 
     the American people.
       (2) The Inspector General for the Smithsonian Institution 
     recently issued a report regarding an investigation of 
     unauthorized and excessive authorized compensation, benefits, 
     and expenditures by the Secretary of the Smithsonian 
     Institution.
       (3) The Inspector General's findings indicate that the 
     actions of the Secretary of the Smithsonian Institution are 
     not in keeping with the public trust of the office of the 
     Secretary of the Smithsonian Institution.
       (4) Priority should be given to funding for necessary 
     repairs to maintain and repair Smithsonian Institution 
     buildings and infrastructure and protect America's treasures.
       (5) Priority should be given to full funding for the Office 
     of the Inspector General for the Smithsonian Institution so 
     that the American people and Congress have renewed confidence 
     that tax-preferred donations and Federal funds are being 
     spent appropriately and in keeping with the best practices of 
     the charitable sector.

     SEC. 330. DEFICIT-REDUCTION RESERVE FUND FOR REDUCTION OF 
                   IMPROPER PAYMENTS.

       The Chairman of the Senate Committee on the Budget may 
     revise the aggregates, allocations, functional totals, and 
     other appropriate levels and limits in this resolution upon 
     enactment of legislation that achieves savings by eliminating 
     or reducing improper payments made by agencies reporting 
     improper payments estimates under the Improper Payments 
     Information Act of 2002 and uses such savings to reduce the 
     deficit, provided that the legislation would not increase the 
     deficit over the total of fiscal years 2007 through 2012.

     SEC. 331. DEFICIT-NEUTRAL RESERVE FUND FOR EXTENSION OF THE 
                   DEDUCTION FOR STATE AND LOCAL SALES TAXES.

       The Chairman of the Senate Budget Committee may revise the 
     aggregates, allocations, and other levels in this resolution 
     for a bill, joint resolution, motion, amendment, or 
     conference report that would provide for extension of the 
     deduction for State and local sales taxes, provided that such 
     legislation would not increase the deficit over the total of 
     fiscal years 2007 through 2012.

     SEC. 332. DEFICIT-NEUTRAL RESERVE FUND FOR EXTENSION OF 
                   CERTAIN ENERGY TAX INCENTIVES.

       The Chairman of the Senate Committee on the Budget may 
     revise the aggregates, allocations, and other levels in this 
     resolution for a bill, joint resolution, motion, amendment, 
     or conference report that would extend through 2015 energy 
     tax incentives, including the production tax credit for 
     electricity produced from renewable resources, the Clean 
     Renewable Energy Bond program, and the provisions to 
     encourage energy efficient buildings, products and power 
     plants, provided that such legislation would not increase the 
     deficit over the total of fiscal years 2007 through 2012.

     SEC. 333. RESERVE FUND TO PROVIDE ADDITIONAL TRAINING FOR 
                   PHYSICIANS AND ATTRACT MORE PHYSICIANS IN 
                   STATES THAT FACE A SHORTAGE OF PHYSICIANS IN 
                   TRAINING.

       The Chairman of the Senate Budget Committee may revise the 
     aggregates, allocations, and other appropriate levels in this 
     resolution for a bill, joint resolution, amendment, motion, 
     or conference report that provides additional training for 
     physicians and attracts more physicians in States that face a 
     shortage of physicians in training, provided that the 
     legislation would not increase the deficit over the total of 
     fiscal years 2007 through 2012.

     SEC. 334. DEFICIT-NEUTRAL RESERVE FUND FOR REPEAL OF THE 1993 
                   INCREASE IN THE INCOME TAX ON SOCIAL SECURITY 
                   BENEFITS.

       The Chairman of the Senate Committee on the Budget may 
     revise the allocations, aggregates, and other levels in this 
     resolution by the amounts provided by a bill, joint 
     resolution, amendment, motion, or conference report that 
     would repeal the 1993 increase in the income tax on Social 
     Security benefits, provided that such legislation would not 
     increase the deficit over the total of the period of fiscal 
     years 2007 through 2012.

     SEC. 335. SENSE OF CONGRESS ON THE STATE CRIMINAL ALIEN 
                   ASSISTANCE PROGRAM.

       (a) Findings.--Congress makes the following findings:
       (1) Control of illegal immigration is a Federal 
     responsibility.
       (2) The State Criminal Alien Assistance Program (referred 
     to in this section as ``SCAAP'') carried out pursuant to 
     section 241(i) of the Immigration and Nationality Act (8 
     U.S.C. 1231(i)) provides critical funding to States and 
     localities for reimbursement of costs incurred as a result of 
     housing undocumented criminal aliens.
       (3) Congress appropriated $300,000,000 for SCAAP to 
     reimburse State and local governments for those costs in 
     fiscal year 2004.
       (4) Congress appropriated $305,000,000 for SCAAP to 
     reimburse State and local governments for those costs in 
     fiscal year 2005.
       (5) Congress appropriated $405,000,000 for SCAAP to 
     reimburse State and local governments for those costs in 
     fiscal year 2006.
       (6) Congress appropriated $399,000,000 for SCAAP to 
     reimburse State and local governments for those costs in 
     fiscal year 2007.
       (7) Congress has authorized to be appropriated $950,000,000 
     to carry out SCAAP for each of the fiscal years 2008 through 
     2011.
       (b) Sense of Congress.--It is the sense of Congress that 
     the budgetary totals in this resolution assume that 
     $950,000,000 should be made available for SCAAP for fiscal 
     year 2008.

[[Page H4577]]

     SEC. 336. DEFICIT-NEUTRAL RESERVE FUND FOR ELIMINATING 
                   MILITARY RETIREMENT AND DISABILITY OFFSET.

       The Chairman of the Senate Committee on the Budget may 
     revise the allocations, aggregates, and other levels in this 
     resolution for a bill, joint resolution, amendment, motion, 
     or conference report that would expand eligibility for 
     Combat-Related Special Compensation to permit additional 
     disabled retirees to receive both disability compensation and 
     retired pay, by the amounts provided by such legislation for 
     that purpose, provided that the legislation would not 
     increase the deficit over the total of fiscal years 2007 
     through 2012.

     SEC. 337. DEFICIT-NEUTRAL RESERVE FOR ASBESTOS REFORM 
                   LEGISLATION.

       The Chairman of the Senate Committee on the Budget may 
     revise the aggregates, allocations, and other appropriate 
     levels in this resolution for a bill, joint resolution, 
     amendment, motion, or conference report regarding asbestos 
     reform, that--
       (i) either provides monetary compensation to impaired 
     victims of mesothelioma or provides monetary compensation to 
     impaired victims of asbestos-related disease who can 
     establish that asbestos exposure is a substantial 
     contributing factor in causing their condition,
       (ii) does not provide monetary compensation to unimpaired 
     claimants or those suffering from a disease who cannot 
     establish that asbestos exposure was a substantial 
     contributing factor in causing their condition, and
       (iii) is estimated to remain funded from nontaxpayer 
     sources for the life of the fund, by the amounts provided in 
     such legislation for that purpose, provided that such 
     legislation would not increase the deficit over the total of 
     the period of fiscal years 2007 through 2057.

     SEC. 338. DEFICIT-NEUTRAL RESERVE FUND FOR MANUFACTURING 
                   INITIATIVES.

       The Chairman of the Senate Committee on the Budget may 
     revise the allocations, aggregates, and other appropriate 
     levels in this resolution for one or more bills, joint 
     resolutions, amendments, motions, or conference reports, 
     including tax legislation, that would revitalize the United 
     States domestic manufacturing sector by increasing Federal 
     research and development, by expanding the scope and 
     effectiveness of manufacturing programs across the Federal 
     government, by increasing support for development of 
     alternative fuels and leap-ahead automotive and energy 
     technologies, and by establishing tax incentives to encourage 
     the continued production in the United States of advanced 
     technologies and the infrastructure to support such 
     technologies, by the amounts provided in that legislation for 
     those purposes, provided that such legislation would not 
     increase the deficit over the total of the period of fiscal 
     years 2007 through 2012.

     SEC. 339. DEFICIT-REDUCTION RESERVE FUND FOR INCREASED USE OF 
                   RECOVERY AUDITS.

       The Chairman of the Senate Committee on the Budget may 
     revise the aggregates, allocations, functional totals, and 
     other appropriate levels and limits in this resolution upon 
     enactment of legislation that achieves savings by requiring 
     that agencies increase their use of the recovery audits 
     authorized by the Erroneous Payments Recovery Act of 2001 
     (section 831 of the National Defense Authorization Act for 
     fiscal year 2002) and uses such savings to reduce the 
     deficit, provided that the legislation would not increase the 
     deficit over the total of fiscal years 2007 through 2012.

     SEC. 340. DEFICIT-NEUTRAL RESERVE FUND FOR A DELAY IN THE 
                   IMPLEMENTATION OF A PROPOSED RULE RELATING TO 
                   THE FEDERAL-STATE FINANCIAL PARTNERSHIPS UNDER 
                   MEDICAID AND SCHIP.

       The Chairman of the Senate Committee on the Budget may 
     revise the allocations, aggregates, and other appropriate 
     levels in this resolution for a bill, joint resolution, 
     amendment, motion, or conference report that provides for a 
     delay in the implementation of the proposed rule published on 
     January 18, 2007, on pages 2236 through 2248 of volume 72, 
     Federal Register (relating to parts 433, 447, and 457 of 
     title 42, Code of Federal Regulations) or any other rule that 
     would affect the Medicaid program and SCHIP in a similar 
     manner, by the amounts provided in that legislation for that 
     purpose, provided that such legislation would not increase 
     the deficit over the total of the period of fiscal years 2007 
     through 2012.

     SEC. 341. RESERVE FUND TO IMPROVE THE HEALTH CARE SYSTEM.

       If the Senate Committee on Finance--
       (1) reports a bill, or if an amendment is offered thereto, 
     or if a conference report is submitted thereon, that--
       (A) creates a framework and parameters for the use of 
     Medicare data for the purpose of conducting research, public 
     reporting, and other activities to evaluate health care 
     safety, effectiveness, efficiency, quality, and resource 
     utilization in Federal programs and the private health care 
     system; and
       (B) includes provisions to protect beneficiary privacy and 
     to prevent disclosure of proprietary or trade secret 
     information with respect to the transfer and use of such 
     data; and
       (2) is within its allocation as provided under section 
     302(a) of the Congressional Budget Act of 1974,

     the Chairman of the Senate Committee on the Budget may revise 
     allocations of new budget authority and outlays, the revenue 
     aggregates, and other appropriate measures to reflect such 
     legislation provided that such legislation would not increase 
     the deficit for fiscal year 2008, and for the period of 
     fiscal years 2008 through 2012.

     SEC. 342. RESERVE FUND TO IMPROVE MEDICARE HOSPITAL PAYMENT 
                   ACCURACY.

       If the Senate Committee on Finance--
       (1) reports a bill, or if an amendment is offered thereto, 
     or if a conference report is submitted thereon, that--
       (A) addresses the wide and inequitable disparity in the 
     reimbursement of hospitals under the Medicare program;
       (B) includes provisions to reform the area wage index used 
     to adjust payments to hospitals under the Medicare hospital 
     inpatient prospective payment system under section 1886(d) of 
     the Social Security Act (42 U.S.C. 1395ww(d)); and
       (C) includes a transition to the reform described in 
     subparagraph (B); and
       (2) is within its allocation as provided under section 
     302(a) of the Congressional Budget Act of 1974,

     the Chairman of the Senate Committee on the Budget may revise 
     allocations of new budget authority and outlays, the revenue 
     aggregates, and other appropriate measures to reflect such 
     legislation provided that such legislation would not increase 
     the deficit for the period of fiscal years 2008 through 2012.

     SEC. 343. DEFICIT-NEUTRAL RESERVE FUND TO IMPROVE HEALTH 
                   INSURANCE.

       If a Senate committee reports a bill or joint resolution, 
     or if an amendment is offered thereto, or if a conference 
     report is submitted thereon, that, with appropriate 
     protections for consumers, reduces growth in the number of 
     uninsured Americans, improves access to affordable and 
     meaningful health insurance coverage, improves health care 
     quality, or reduces growth in the cost of private health 
     insurance by facilitating market-based pooling, including 
     across State lines, and a bill or joint resolution, or if an 
     amendment is offered thereto, or if a conference report is 
     submitted thereon, that, with appropriate protections for 
     consumers, provides funding for State high risk pools or 
     financial assistance, whether directly, or through grants to 
     States to enhance the effectiveness of such pooling or to 
     provide other assistance to small businesses or individuals, 
     including financial assistance, for the purchase of private 
     insurance coverage, the Chairman of the Committee on the 
     Budget may make appropriate adjustments in allocations and 
     aggregates for fiscal year 2007 and for the period of fiscal 
     years 2008 through 2012, provided that such legislation would 
     not increase the deficit over the total of the period of 
     fiscal years 2007 through 2012.

  The SPEAKER pro tempore. Pursuant to House Resolution 370, the 
amendment in the nature of a substitute consisting of the text of House 
Concurrent Resolution 99, as adopted by the House, is adopted and the 
Senate concurrent resolution, as amended, is considered read.
  The text of the Senate concurrent resolution, as amended, is as 
follows:

                            S. Con. Res. 21

     SECTION 1. CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL 
                   YEAR 2008.

       (a) Declaration.--The Congress determines and declares that 
     the concurrent resolution on the budget for fiscal year 2007 
     is revised and replaced and that this is the concurrent 
     resolution on the budget for fiscal year 2008, including 
     appropriate budgetary levels for fiscal years 2009 through 
     2012.
       (b) Table of Contents.--The table of contents for this 
     resolution is as follows:

Sec. 1. Concurrent resolution on the budget for fiscal year 2008.

                TITLE I--RECOMMENDED LEVELS AND AMOUNTS

Sec. 101. Recommended levels and amounts.
Sec. 102. Major functional categories.

                        TITLE II--RESERVE FUNDS

Sec. 201. Reserve fund for the State Children's Health Insurance 
              Program.
Sec. 202. Reserve fund for reform of the alternative minimum tax.
Sec. 203. Reserve fund to provide for middle-income tax relief and 
              economic equity.
Sec. 204. Reserve fund for agriculture.
Sec. 205. Reserve fund for higher education.
Sec. 206. Reserve fund for improvements in medicare.
Sec. 207. Reserve fund for creating long-term energy alternatives.
Sec. 208. Reserve fund for affordable housing.
Sec. 209. Reserve fund for equitable benefits for Filipino veterans of 
              World War II.
Sec. 210. Reserve fund for Secure Rural Schools and Community Self-
              Determination Act reauthorization.
Sec. 211. Reserve fund for receipts from the Bonneville Power 
              Administration.
Sec. 212. Reserve fund for Transitional Medical Assistance.

                     TITLE III--BUDGET ENFORCEMENT

Sec. 301. Program integrity initiatives.
Sec. 302. Advance appropriations.
Sec. 303. Overseas deployments and emergency needs.

[[Page H4578]]

Sec. 304. Application and effect of changes in allocations and 
              aggregates.
Sec. 305. Adjustments to reflect changes in concepts and definitions.
Sec. 306. Compliance with section 13301 of the Budget Enforcement Act 
              of 1990.
Sec. 307. Exercise of rulemaking powers.

                            TITLE IV--POLICY

Sec. 401. Policy on middle-income tax relief.
Sec. 402. Policy on defense priorities.
Sec. 403. Policy on college affordability.

                      TITLE V--SENSE OF THE HOUSE

Sec. 501. Sense of the House on servicemembers' and veterans' health 
              care and other priorities.
Sec. 502. Sense of the House on the Innovation Agenda: A commitment to 
              competitiveness to keep America #1.
Sec. 503. Sense of the House on homeland security.
Sec. 504. Sense of the House regarding the ongoing need to respond to 
              Hurricanes Katrina and Rita.
Sec. 505. Sense of the House regarding long-term sustainability of 
              entitlements.
Sec. 506. Sense of the House regarding the need to maintain and build 
              upon efforts to fight hunger.
Sec. 507. Sense of the House regarding affordable health coverage.
Sec. 508. Sense of the House regarding extension of the statutory pay-
              as-you-go rule.
Sec. 509. Sense of the House on long-term budgeting.
Sec. 510. Sense of the House regarding pay parity.
Sec. 511. Sense of the House regarding waste, fraud, and abuse.
Sec. 512. Sense of the House regarding the importance of child support 
              enforcement.
Sec. 513. Sense of the House on State veterans cemeteries.

                        TITLE VI--RECONCILIATION

Sec. 601. Reconciliation.

                TITLE I--RECOMMENDED LEVELS AND AMOUNTS

     SEC. 101. RECOMMENDED LEVELS AND AMOUNTS.

       The following budgetary levels are appropriate for each of 
     fiscal years 2007 through 2012:
       (1) Federal revenues.--For purposes of the enforcement of 
     this resolution:
       (A) The recommended levels of Federal revenues are as 
     follows:
       Fiscal year 2007: $1,904,706,000,000.
       Fiscal year 2008: $2,050,797,000,000.
       Fiscal year 2009: $2,106,926,000,000.
       Fiscal year 2010: $2,163,721,000,000.
       Fiscal year 2011: $2,394,551,000,000.
       Fiscal year 2012: $2,597,096,000,000.
       (B) The amounts by which the aggregate levels of Federal 
     revenues should be adjusted are as follows:
       Fiscal year 2007: $0.
       Fiscal year 2008: $0.
       Fiscal year 2009: $0.
       Fiscal year 2010: $0.
       Fiscal year 2011: $0.
       Fiscal year 2012: $0.
       (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 2007: $2,380,614,000,000.
       Fiscal year 2008: $2,495,291,000,000.
       Fiscal year 2009: $2,516,301,000,000.
       Fiscal year 2010: $2,569,952,000,000.
       Fiscal year 2011: $2,684,936,000,000.
       Fiscal year 2012: $2,716,188,000,000.
       (3) Budget outlays.--For purposes of the enforcement of 
     this resolution, the appropriate levels of total budget 
     outlays are as follows:
       Fiscal year 2007: $2,300,065,000,000.
       Fiscal year 2008: $2,465,888,000,000.
       Fiscal year 2009: $2,565,305,000,000.
       Fiscal year 2010: $2,600,718,000,000.
       Fiscal year 2011: $2,691,358,000,000.
       Fiscal year 2012: $2,700,809,000,000.
       (4) Deficits (on-budget).--For purposes of the enforcement 
     of this resolution, the amounts of the deficits (on-budget) 
     are as follows:
       Fiscal year 2007: $395,359,000,000.
       Fiscal year 2008: $415,091,000,000.
       Fiscal year 2009: $458,379,000,000.
       Fiscal year 2010: $436,997,000,000.
       Fiscal year 2011: $296,807,000,000.
       Fiscal year 2012: $103,713,000,000.
       (5) Debt subject to limit.--Pursuant to section 301(a)(5) 
     of the Congressional Budget Act of 1974, the appropriate 
     levels of the debt subject to limit are as follows:
       Fiscal year 2007: $8,927,000,000,000.
       Fiscal year 2008: $9,461,000,000,000.
       Fiscal year 2009: $10,036,000,000,000.
       Fiscal year 2010: $10,591,000,000,000.
       Fiscal year 2011: $11,001,000,000,000.
       Fiscal year 2012: $11,231,000,000,000.
       (6) Debt held by the public.--The appropriate levels of 
     debt held by the public are as follows:
       Fiscal year 2007: $5,042,000,000,000.
       Fiscal year 2008: $5,269,000,000,000.
       Fiscal year 2009: $5,524,000,000,000.
       Fiscal year 2010: $5,743,000,000,000.
       Fiscal year 2011: $5,805,000,000,000.
       Fiscal year 2012: $5,663,000,000,000.

     SEC. 102. MAJOR FUNCTIONAL CATEGORIES.

       The Congress determines and declares that the appropriate 
     levels of new budget authority and outlays for fiscal years 
     2007 through 2012 for each major functional category are:
       (1) National Defense (050):
       Fiscal year 2007:
       (A) New budget authority, $525,797,000,000.
       (B) Outlays, $534,270,000,000.
       Fiscal year 2008:
       (A) New budget authority, $506,995,000,000.
       (B) Outlays, $514,401,000,000.
       Fiscal year 2009:
       (A) New budget authority, $534,705,000,000.
       (B) Outlays, $524,384,000,000.
       Fiscal year 2010:
       (A) New budget authority, $545,171,000,000.
       (B) Outlays, $536,433,000,000.
       Fiscal year 2011:
       (A) New budget authority, $550,944,000,000.
       (B) Outlays, $547,624,000,000.
       Fiscal year 2012:
       (A) New budget authority, $559,799,000,000.
       (B) Outlays, $548,169,000,000.
       (2) International Affairs (150):
       Fiscal year 2007:
       (A) New budget authority, $28,795,000,000.
       (B) Outlays, $31,308,000,000.
       Fiscal year 2008:
       (A) New budget authority, $34,675,000,000.
       (B) Outlays, $33,096,000,000.
       Fiscal year 2009:
       (A) New budget authority, $35,428,000,000.
       (B) Outlays, $32,557,000,000.
       Fiscal year 2010:
       (A) New budget authority, $35,623,000,000.
       (B) Outlays, $32,687,000,000.
       Fiscal year 2011:
       (A) New budget authority, $36,083,000,000.
       (B) Outlays, $33,006,000,000.
       Fiscal year 2012:
       (A) New budget authority, $36,530,000,000.
       (B) Outlays, $33,613,000,000.
       (3) General Science, Space, and Technology (250):
       Fiscal year 2007:
       (A) New budget authority, $25,079,000,000.
       (B) Outlays, $24,516,000,000.
       Fiscal year 2008:
       (A) New budget authority, $27,611,000,000.
       (B) Outlays, $26,472,000,000.
       Fiscal year 2009:
       (A) New budget authority, $28,641,000,000.
       (B) Outlays, $28,411,000,000.
       Fiscal year 2010:
       (A) New budget authority, $29,844,000,000.
       (B) Outlays, $29,485,000,000.
       Fiscal year 2011:
       (A) New budget authority, $31,103,00,000.
       (B) Outlays, $30,089,000,000.
       Fiscal year 2012:
       (A) New budget authority, $32,438,000,000.
       (B) Outlays, $31,367,000,000.
       (4) Energy (270):
       Fiscal year 2007:
       (A) New budget authority, $2,943,000,000.
       (B) Outlays, $1,369,000,000.
       Fiscal year 2008:
       (A) New budget authority, $3,240,000,000.
       (B) Outlays, $1,092,000,000.
       Fiscal year 2009:
       (A) New budget authority, $3,051,000,000.
       (B) Outlays, $1,454,000,000.
       Fiscal year 2010:
       (A) New budget authority, $3,136,000,000.
       (B) Outlays, $1,641,000,000.
       Fiscal year 2011:
       (A) New budget authority, $3,228,000,000.
       (B) Outlays, $1,697,000,000.
       Fiscal year 2012:
       (A) New budget authority, $3,307,000,000.
       (B) Outlays, $1,997,000,000.
       (5) Natural Resources and Environment (300):
       Fiscal year 2007:
       (A) New budget authority, $31,332,000,000.
       (B) Outlays, $32,919,000,000.
       Fiscal year 2008:
       (A) New budget authority, $32,813,000,000.
       (B) Outlays, $34,864,000,000.
       Fiscal year 2009:
       (A) New budget authority, $33,529,000,000.
       (B) Outlays, $35,332,000,000.
       Fiscal year 2010:
       (A) New budget authority, $34,483,000,000.
       (B) Outlays, $35,574,000,000.
       Fiscal year 2011:
       (A) New budget authority, $35,152,000,000.
       (B) Outlays, $35,952,000,000.
       Fiscal year 2012:
       (A) New budget authority, $36,194,000,000.
       (B) Outlays, $36,543,000,000.
       (6) Agriculture (350):
       Fiscal year 2007:
       (A) New budget authority, $21,471,000,000.
       (B) Outlays, $19,738,000,000.
       Fiscal year 2008:
       (A) New budget authority, $20,381,000,000.
       (B) Outlays, $19,549,000,000.
       Fiscal year 2009:
       (A) New budget authority, $20,933,000,000.
       (B) Outlays, $20,059,000,000.
       Fiscal year 2010:
       (A) New budget authority, $21,138,000,000.
       (B) Outlays, $20,112,000,000.
       Fiscal year 2011:
       (A) New budget authority, $21,156,000,000.
       (B) Outlays, $20,436,000,000.
       Fiscal year 2012:
       (A) New budget authority, $21,402,000,000.
       (B) Outlays, $20,863,000,000.
       (7) Commerce and Housing Credit (370):
       Fiscal year 2007:
       (A) New budget authority, $5,515,000,000.
       (B) Outlays, $3,522,000,000.
       Fiscal year 2008:
       (A) New budget authority, $9,158,000,000.
       (B) Outlays, $1,985,000,000.
       Fiscal year 2009:
       (A) New budget authority, $9,973,000,000.
       (B) Outlays, $996,000,000.
       Fiscal year 2010:
       (A) New budget authority, $13,775,000,000.
       (B) Outlays, $3,460,000,000.
       Fiscal year 2011:
       (A) New budget authority, $8,822,000,000.

[[Page H4579]]

       (B) Outlays, $1,931,000,000.
       Fiscal year 2012:
       (A) New budget authority, $8,822,000,000.
       (B) Outlays, $1,097,000,000.
       (8) Transportation (400):
       Fiscal year 2007:
       (A) New budget authority, $81,282,000,000.
       (B) Outlays, $74,739,000,000.
       Fiscal year 2008:
       (A) New budget authority, $82,657,000,000.
       (B) Outlays, $80,802,000,000.
       Fiscal year 2009:
       (A) New budget authority, $76,343,000,000.
       (B) Outlays, $83,948,000,000.
       Fiscal year 2010:
       (A) New budget authority, $77,261,000,000.
       (B) Outlays, $86,127,000,000.
       Fiscal year 2011:
       (A) New budget authority, $78,289,000,000.
       (B) Outlays, $87,018,000,000.
       Fiscal year 2012:
       (A) New budget authority, $79,169,000,000.
       (B) Outlays, $88,761,000,000.
       (9) Community and Regional Development (450):
       Fiscal year 2007:
       (A) New budget authority, $15,717,000,000.
       (B) Outlays, $28,281,000,000.
       Fiscal year 2008:
       (A) New budget authority, $15,032,000,000.
       (B) Outlays, $22,017,000,000.
       Fiscal year 2009:
       (A) New budget authority, $13,928,000,000.
       (B) Outlays, $20,474,000,000.
       Fiscal year 2010:
       (A) New budget authority, $14,129,000,000.
       (B) Outlays, $19,220,000,000.
       Fiscal year 2011:
       (A) New budget authority, $14,328,000,000.
       (B) Outlays, $17,649,000,000.
       Fiscal year 2012:
       (A) New budget authority, $14,528,000,000.
       (B) Outlays, $15,131,000,000.
       (10) Education, Training, Employment, and Social Services 
     (500):
       Fiscal year 2007:
       (A) New budget authority, $92,780,000,000.
       (B) Outlays, $92,224,000,000.
       Fiscal year 2008:
       (A) New budget authority, $92,461,000,000.
       (B) Outlays, $91,119,000,000.
       Fiscal year 2009:
       (A) New budget authority, $96,810,000,000.
       (B) Outlays, $93,978,000,000.
       Fiscal year 2010:
       (A) New budget authority, $98,333,000,000.
       (B) Outlays, $96,041,000,000.
       Fiscal year 2011:
       (A) New budget authority, $98,409,000,000.
       (B) Outlays, $97,276,000,000.
       Fiscal year 2012:
       (A) New budget authority, $98,654,000,000.
       (B) Outlays, $96,909,000,000.
       (11) Health (550):
       Fiscal year 2007:
       (A) New budget authority, $267,892,000,000.
       (B) Outlays, $268,197,000,000.
       Fiscal year 2008:
       (A) New budget authority, $286,767,000,000.
       (B) Outlays, $286,261,000,000.
       Fiscal year 2009:
       (A) New budget authority, $307,842,000,000.
       (B) Outlays, $305,984,000,000.
       Fiscal year 2010:
       (A) New budget authority, $325,885,000,000.
       (B) Outlays, $325,716,000,000.
       Fiscal year 2011:
       (A) New budget authority, $347,621,000,000.
       (B) Outlays, $346,553,000,000.
       Fiscal year 2012:
       (A) New budget authority, $370,780,000,000.
       (B) Outlays, $369,739,000,000.
       (12) Medicare (570):
       Fiscal year 2007:
       (A) New budget authority, $365,152,000,000.
       (B) Outlays, $370,180,000,000.
       Fiscal year 2008:
       (A) New budget authority, $389,586,000,000.
       (B) Outlays, $389,696,000,000.
       Fiscal year 2009:
       (A) New budget authority, $416,731,000,000.
       (B) Outlays, $416,382,000,000.
       Fiscal year 2010:
       (A) New budget authority, $442,369,000,000.
       (B) Outlays, $442,589,000,000.
       Fiscal year 2011:
       (A) New budget authority, $489,100,000,000.
       (B) Outlays, $489,109,000,000.
       Fiscal year 2012:
       (A) New budget authority, $468,828,000,000.
       (B) Outlays, $486,440,000,000.
       (13) Income Security (600):
       Fiscal year 2007:
       (A) New budget authority, $360,365,000,000.
       (B) Outlays, $364,204,000,000.
       Fiscal year 2008:
       (A) New budget authority, $379,927,000,000.
       (B) Outlays, $383,546,000,000.
       Fiscal year 2009:
       (A) New budget authority, $391,073,000,000.
       (B) Outlays, $393,458,000,000.
       Fiscal year 2010:
       (A) New budget authority, $401,429,000,000.
       (B) Outlays, $402,422,000,000.
       Fiscal year 2011:
       (A) New budget authority, $417,016,000,000.
       (B) Outlays, $416,907,000,000.
       Fiscal year 2012:
       (A) New budget authority, $402,874,000,000.
       (B) Outlays, $402,130,000,000.
       (14) Social Security (650):
       Fiscal year 2007:
       (A) New budget authority, $19,089,000,000.
       (B) Outlays, $19,089,000,000.
       Fiscal year 2008:
       (A) New budget authority, $19,644,000,000.
       (B) Outlays, $19,644,000,000.
       Fiscal year 2009:
       (A) New budget authority, $21,518,000,000.
       (B) Outlays, $21,518,000,000.
       Fiscal year 2010:
       (A) New budget authority, $23,701,000,000.
       (B) Outlays, $23,701,000,000.
       Fiscal year 2011:
       (A) New budget authority, $27,009,000,000.
       (B) Outlays, $27,009,000,000.
       Fiscal year 2012:
       (A) New budget authority, $29,898,000,000.
       (B) Outlays, $29,898,000,000.
       (15) Veterans Benefits and Services (700):
       Fiscal year 2007:
       (A) New budget authority, $73,896,000,000.
       (B) Outlays, $72,342,000,000.
       Fiscal year 2008:
       (A) New budget authority, $85,192,000,000.
       (B) Outlays, $82,772,000,000.
       Fiscal year 2009:
       (A) New budget authority, $87,787,000,000.
       (B) Outlays, $87,681,000,000.
       Fiscal year 2010:
       (A) New budget authority, $90,414,000,000.
       (B) Outlays, $89,710,000,000.
       Fiscal year 2011:
       (A) New budget authority, $96,033,000,000.
       (B) Outlays, $95,410,000,000.
       Fiscal year 2012:
       (A) New budget authority, $93,325,000,000.
       (B) Outlays, $92,599,000,000.
       (16) Administration of Justice (750):
       Fiscal year 2007:
       (A) New budget authority, $45,504,000,000.
       (B) Outlays, $44,659,000,000.
       Fiscal year 2008:
       (A) New budget authority, $46,940,000,000.
       (B) Outlays, $46,155,000,000.
       Fiscal year 2009:
       (A) New budget authority, $46,111,000,000.
       (B) Outlays, $47,311,000,000.
       Fiscal year 2010:
       (A) New budget authority, $47,168,000,000.
       (B) Outlays, $47,504,000,000.
       Fiscal year 2011:
       (A) New budget authority, $48,379,000,000.
       (B) Outlays, $48,164,000,000.
       Fiscal year 2012:
       (A) New budget authority, $49,610,000,000.
       (B) Outlays, $49,207,000,000.
       (17) General Government (800):
       Fiscal year 2007:
       (A) New budget authority, $18,193,000,000.
       (B) Outlays, $18,574,000,000.
       Fiscal year 2008:
       (A) New budget authority, $18,614,000,000.
       (B) Outlays, $18,998,000,000.
       Fiscal year 2009:
       (A) New budget authority, $19,264,000,000.
       (B) Outlays, $19,328,000,000.
       Fiscal year 2010:
       (A) New budget authority, $19,886,000,000.
       (B) Outlays, $19,765,000,000.
       Fiscal year 2011:
       (A) New budget authority, $20,647,000,000.
       (B) Outlays, $20,370,000,000.
       Fiscal year 2012:
       (A) New budget authority, $21,359,000,000.
       (B) Outlays, $21,193,000,000.
       (18) Net Interest (900):
       Fiscal year 2007:
       (A) New budget authority, $344,431,000,000.
       (B) Outlays, $344,431,000,000.
       Fiscal year 2008:
       (A) New budget authority, $369,454,000,000.
       (B) Outlays, $369,454,000,000.
       Fiscal year 2009:
       (A) New budget authority, $389,194,000,000.
       (B) Outlays, $389,194,000,000.
       Fiscal year 2010:
       (A) New budget authority, $413,140,000,000.
       (B) Outlays, $413,140,000,000.
       Fiscal year 2011:
       (A) New budget authority, $431,192,000,000.
       (B) Outlays, $431,192,000,000.
       Fiscal year 2012:
       (A) New budget authority, $442,528,000,000.
       (B) Outlays, $442,528,000,000.
       (19) Allowances (920):
       Fiscal year 2007:
       (A) New budget authority, $785,000,000.
       (B) Outlays, $755,000,000.
       Fiscal year 2008:
       (A) New budget authority, $0.
       (B) Outlays, $30,000,000.
       Fiscal year 2009:
       (A) New budget authority, $0.
       (B) Outlays, $0.
       Fiscal year 2010:
       (A) New budget authority, $0.
       (B) Outlays, $0.
       Fiscal year 2011:
       (A) New budget authority, $0.
       (B) Outlays, $0.
       Fiscal year 2012:
       (A) New budget authority, $0.
       (B) Outlays, $0.
       (20) Undistributed Offsetting Receipts (950):
       Fiscal year 2007:
       (A) New budget authority, $69,714,000,000.
       (B) Outlays, $69,714,000,000.
       Fiscal year 2008:
       (A) New budget authority, $70,979,000,000.
       (B) Outlays, $70,979,000,000.
       Fiscal year 2009:
       (A) New budget authority, $66,560,000,000.
       (B) Outlays, $66,569,000,000.
       Fiscal year 2010:
       (A) New budget authority, $66,933,000,000.
       (B) Outlays, $66,933,000,000.
       Fiscal year 2011:
       (A) New budget authority, $69,575,000,000.
       (B) Outlays, $69,595,000,000.
       Fiscal year 2012:
       (A) New budget authority, $71,857,000,000.
       (B) Outlays, $71,860,000,000.
       (21) Overseas Deployments and Other Activities (970):
       Fiscal year 2007:
       (A) New budget authority, $124,310,000,000.
       (B) Outlays, $31,506,000,000.
       Fiscal year 2008:
       (A) New budget authority, $145,163,000,000.
       (B) Outlays, $114,914,000,000.
       Fiscal year 2009:
       (A) New budget authority, $50,000,000,000.
       (B) Outlays, $109,425,000,000.

[[Page H4580]]

       Fiscal year 2010:
       (A) New budget authority, $0.
       (B) Outlays, $42,324,000,000.
       Fiscal year 2011:
       (A) New budget authority, $0.
       (B) Outlays, $13,561,000,000.
       Fiscal year 2012:
       (A) New budget authority, $0.
       (B) Outlays, $4,485,000,000.

                        TITLE II--RESERVE FUNDS

     SEC. 201. RESERVE FUND FOR THE STATE CHILDREN'S HEALTH 
                   INSURANCE PROGRAM.

       In the House, with respect to a bill or a joint resolution 
     (or an amendment to or a conference report submitted on such 
     a bill or joint resolution) reported from the Committee on 
     Energy and Commerce that increases new budget authority that 
     would result in no more than $50,000,000,000 in outlays for 
     fiscal years 2008 through 2012 for expanding coverage and 
     improving children's health through the State Children's 
     Health Insurance Program (SCHIP) under title XXI of the 
     Social Security Act and the program under title XIX of such 
     Act (commonly known as medicaid), the chairman of the 
     Committee on Budget may make the appropriate adjustments in 
     allocations of the Committee on Energy and Commerce, and in 
     budget authority and outlays of other committees as may be 
     necessary pursuant to such adjustment for the Committee on 
     Energy and Commerce, and budgetary aggregates, but only to 
     the extent that such bill or joint resolution (as amended, in 
     the case of an amendment) in the form placed before the House 
     by the Committee on Rules would not increase the deficit or 
     decrease the surplus for the period of fiscal years 2007 
     through 2012 and the period of fiscal years 2007 through 
     2017. The adjustments may be made whenever a rule providing 
     for consideration of such a bill or joint resolution is 
     filed, such a bill or joint resolution is placed on any 
     calendar, or an amendment is offered or considered as adopted 
     or a conference report is submitted on such a bill or joint 
     resolution.

     SEC. 202. RESERVE FUND FOR REFORM OF THE ALTERNATIVE MINIMUM 
                   TAX.

       In the House, with respect to any bill or joint resolution 
     (or an amendment thereto or conference report thereon) that 
     provides for reform of the Internal Revenue Code of 1986 by 
     reducing the tax burden of the alternative minimum tax on 
     middle-income families, the chairman of the Committee on the 
     Budget may make the appropriate adjustments in allocations of 
     a committee or committees and budgetary aggregates, but only 
     to the extent that such bills or joint resolutions (as 
     amended, in the case of an amendment) in the form placed 
     before the House by the Committee on Rules would not increase 
     the deficit or decrease the surplus for the period of fiscal 
     years 2007 through 2012 and the period of fiscal years 2007 
     through 2017. The adjustments may be made whenever a rule 
     providing for consideration of such bills or joint 
     resolutions is filed, such bills or joint resolutions are 
     placed on any calendar, or an amendment is offered or 
     considered as adopted or a conference report is submitted on 
     such bills or joint resolutions.

     SEC. 203. RESERVE FUND TO PROVIDE FOR MIDDLE-INCOME TAX 
                   RELIEF AND ECONOMIC EQUITY.

       In the House, with respect to any bill or joint resolution 
     (or an amendment thereto or conference report thereon) that 
     provides for tax relief for middle-income families and 
     taxpayers and enhanced economic equity, such as extension of 
     the child tax credit, extension of marriage penalty relief, 
     extension of the 10 percent individual income tax bracket, 
     modification of the Alternative Minimum Tax, elimination of 
     estate taxes on all but a minute fraction of estates by 
     reforming and substantially increasing the unified credit, 
     extension of the research and experimentation tax credit, 
     extension of the deduction for State and local sales taxes, 
     and a tax credit for school construction bonds, the chairman 
     of the Committee on the Budget may make the appropriate 
     adjustments in allocations of a committee or committees and 
     budgetary aggregates, but only to the extent that such bills 
     or joint resolutions (as amended, in the case of an 
     amendment) in the form placed before the House by the 
     Committee on Rules would not increase the deficit or decrease 
     the surplus for the period of fiscal years 2007 through 2012 
     and the period of fiscal years 2007 through 2017. The 
     adjustments may be made whenever a rule providing for 
     consideration of such bills or joint resolutions are filed, 
     such bills or joint resolutions are placed on any calendar, 
     or an amendment is offered or considered as adopted or a 
     conference report is submitted on such bills or joint 
     resolutions.

     SEC. 204. RESERVE FUND FOR AGRICULTURE.

       In the House, with respect to a bill or a joint resolution 
     (or an amendment thereto or conference report thereon) that 
     provides for the reauthorization of the programs of the Food 
     Security and Rural Investment Act of 2002 or prior Acts, 
     authorizes similar programs, or both, that increases new 
     budget authority by no more than $20,000,000,000 for the 
     period of fiscal years 2007 through 2012, the chairman of the 
     Committee on the Budget may make the appropriate adjustments 
     in allocations of a committee or committees and budgetary 
     aggregates, but only to the extent that such bill or joint 
     resolution (as amended, in the case of an amendment) in the 
     form placed before the House by the Committee on Rules would 
     not increase the deficit or decrease the surplus for the 
     period of fiscal years 2007 through 2012 and the period of 
     fiscal years 2007 through 2017. The adjustments may be made 
     whenever a rule providing for consideration of such a bill or 
     joint resolution is filed, such a bill or joint resolution is 
     placed on any calendar, or an amendment is offered or 
     considered as adopted or a conference report is submitted on 
     such a bill or joint resolution.

     SEC. 205. RESERVE FUND FOR HIGHER EDUCATION.

       In the House, with respect to a bill or a joint resolution 
     (or an amendment thereto or conference report thereon) that 
     makes college more affordable through reforms to the Higher 
     Education Act of 1965, the chairman of the Committee on the 
     Budget may make the appropriate adjustments in allocations of 
     a committee or committees and budgetary aggregates, but only 
     to the extent that such bill or joint resolution (as amended, 
     in the case of an amendment) in the form placed before the 
     House by the Committee on Rules would not increase the 
     deficit or decrease the surplus for the period of fiscal 
     years 2007 through 2012 and the period of fiscal years 2007 
     through 2017. The adjustments may be made whenever a rule 
     providing for consideration of such a bill or joint 
     resolution is filed, such a bill or joint resolution is 
     placed on any calendar, or an amendment is offered or 
     considered as adopted or a conference report is submitted on 
     such a bill or joint resolution.

     SEC. 206. RESERVE FUND FOR IMPROVEMENTS IN MEDICARE.

       In the House, with respect to a bill or a joint resolution 
     (or an amendment thereto or conference report thereon) that 
     improves the medicare program for beneficiaries and protects 
     access to care, through measures such as increasing the 
     reimbursement rate for physicians while protecting 
     beneficiaries from associated premium increases and making 
     improvements to the prescription drug program under part D, 
     the chairman of the Committee on the Budget may make the 
     appropriate adjustments in allocations of a committee or 
     committees and budgetary aggregates, but only to the extent 
     that such bill or joint resolution (as amended, in the case 
     of an amendment) in the form placed before the House by the 
     Committee on Rules would not increase the deficit or decrease 
     the surplus for the period of fiscal years 2007 through 2012 
     and the period of fiscal years 2007 through 2017. The 
     adjustments may be made whenever a rule providing for 
     consideration of such a bill or joint resolution is filed, 
     such a bill or joint resolution is placed on any calendar, or 
     an amendment is offered or considered as adopted or a 
     conference report is submitted on such a bill or joint 
     resolution.

     SEC. 207. RESERVE FUND FOR CREATING LONG-TERM ENERGY 
                   ALTERNATIVES.

       In the House, with respect to a bill or a joint resolution 
     (or an amendment thereto or conference report thereon) that 
     fulfills the purposes of section 301(a) of H.R. 6, the Clean 
     Energy Act of 2007:
       (1) The chairman of the Committee on Budget may make the 
     appropriate adjustments in allocations of a committee or 
     committees and budgetary aggregates, but only to the extent 
     that such bill or joint resolution (as amended, in the case 
     of an amendment) would not increase the deficit or decrease 
     the surplus for the period of fiscal years 2007 through 2012 
     and the period of fiscal years 2007 through 2017. The 
     adjustments made under this paragraph may be made whenever a 
     rule is filed for a bill or joint resolution that attributes 
     the offsets included in H.R. 6 to the bill or joint 
     resolution.
       (2) The chairman of the Committee on the Budget may make 
     appropriate adjustments to the allocations provided for under 
     section 302(a) of the Congressional Budget Act of 1974 to the 
     Committee on Appropriations to the extent a bill or joint 
     resolution in the form placed before the House by the 
     Committee on Rules provides budget authority for purposes set 
     forth in section 301(a) of H.R. 6 in excess of the amounts 
     provided for those purposes in fiscal year 2007. Any 
     adjustments made under this paragraph shall not include 
     revenues attributable to changes in the Internal Revenue Code 
     of 1986 and shall not exceed the receipts estimated by the 
     Congressional Budget Office that are attributable to H.R. 6 
     for the year in which the adjustments are made.

     SEC. 208. RESERVE FUND FOR AFFORDABLE HOUSING.

       In the House, with respect to a bill or a joint resolution 
     (or an amendment thereto or conference report thereon) that 
     provides for an affordable housing fund, offset by reforming 
     the regulation of certain government-sponsored enterprises, 
     the chairman of the Committee on the Budget may make the 
     appropriate adjustments in allocations of a committee or 
     committees and budgetary aggregates, but only to the extent 
     that such bill or joint resolution (as amended, in the case 
     of an amendment) in the form placed before the House by the 
     Committee on Rules would not increase the deficit or decrease 
     the surplus for the period of fiscal years 2007 through 2012 
     and the period of fiscal years 2007 through 2017. The 
     adjustments may be made whenever a rule providing for 
     consideration of such a bill or joint resolution is filed, 
     such a bill or joint resolution is placed on any calendar, or 
     an amendment is offered or considered as adopted or a 
     conference report is submitted on such a bill or joint 
     resolution.

[[Page H4581]]

     SEC. 209. RESERVE FUND FOR EQUITABLE BENEFITS FOR FILIPINO 
                   VETERANS OF WORLD WAR II.

       In the House, with respect to a bill or a joint resolution 
     (or an amendment thereto or conference report thereon) that 
     would provide for or increase benefits to Filipino veterans 
     of World War II, their survivors and dependents, the chairman 
     of the Committee on the Budget may make the appropriate 
     adjustments in allocations of a committee or committees and 
     budgetary aggregates, but only to the extent that such bill 
     or joint resolution (as amended, in the case of an amendment) 
     in the form placed before the House by the Committee on Rules 
     would not increase the deficit or decrease the surplus for 
     the period of fiscal years 2007 through 2012 and the period 
     of fiscal years 2007 through 2017. The adjustments may be 
     made whenever a rule providing for consideration of such a 
     bill or joint resolution is filed, such a bill or joint 
     resolution is placed on any calendar, or an amendment is 
     offered or considered as adopted or a conference report is 
     submitted on such a bill or joint resolution.

     SEC. 210. RESERVE FUND FOR SECURE RURAL SCHOOLS AND COMMUNITY 
                   SELF-DETERMINATION ACT REAUTHORIZATION.

       In the House, with respect to a bill or a joint resolution 
     (or an amendment thereto or conference report thereon) that 
     provides for the reauthorization of the Secure Rural Schools 
     and Community Self-Determination Act (Public Law 106-393), 
     the chairman of the Committee on the Budget may make the 
     appropriate adjustments in allocations of a committee or 
     committees and budgetary aggregates, but only to the extent 
     that such bill or joint resolution (as amended, in the case 
     of an amendment) in the form placed before the House by the 
     Committee on Rules would not increase the deficit or decrease 
     the surplus for the period of fiscal years 2007 through 2012 
     and the period of fiscal years 2007 through 2017. The 
     adjustments may be made whenever a rule providing for 
     consideration of such a bill or joint resolution is filed, 
     such a bill or joint resolution is placed on any calendar, or 
     an amendment is offered or considered as adopted or a 
     conference report is submitted on such a bill or joint 
     resolution.

     SEC. 211. RESERVE FUND FOR RECEIPTS FROM THE BONNEVILLE POWER 
                   ADMINISTRATION.

       In the House, with respect to a bill or a joint resolution 
     (or an amendment thereto or conference report thereon) that 
     prohibits the Bonneville Power Administration from making 
     early payments on its Federal Bond Debt to the Department of 
     the Treasury, the chairman of the Committee on Budget may 
     make the appropriate adjustments in allocations of a 
     committee or committees and budgetary aggregates, but only to 
     the extent that such bill or joint resolution (as amended, in 
     the case of an amendment) in the form placed before the House 
     by the Committee on Rules would not increase the deficit or 
     decrease the surplus for the period of fiscal years 2007 
     through 2012 and the period of fiscal years 2007 through 
     2017. The adjustments may be made whenever a rule providing 
     for consideration of such a bill or joint resolution is 
     filed, such a bill or joint resolution is placed on any 
     calendar, or an amendment is offered or considered as adopted 
     or a conference report is submitted on such a bill or joint 
     resolution.

     SEC. 212. RESERVE FUND FOR TRANSITIONAL MEDICAL ASSISTANCE.

       In the House, with respect to a bill or a joint resolution 
     (or an amendment thereto or conference report thereon) that 
     extends the Transitional Medical Assistance program, included 
     in title 19 of the Social Security Act, through fiscal year 
     2008, the chairman of the Committee on Budget may make the 
     appropriate adjustments in allocations of a committee or 
     committees and budgetary aggregates, but only to the extent 
     that such bill or joint resolution (as amended, in the case 
     of an amendment) in the form placed before the House by the 
     Committee on Rules would not increase the deficit or decrease 
     the surplus for the period of fiscal years 2007 through 2012 
     and the period of fiscal years 2007 through 2017. The 
     adjustments may be made whenever a rule providing for 
     consideration of such a bill or joint resolution is filed, 
     such a bill or joint resolution is placed on any calendar, or 
     an amendment is offered or considered as adopted or a 
     conference report is submitted on such a bill or joint 
     resolution.

                     TITLE III--BUDGET ENFORCEMENT

     SEC. 301. PROGRAM INTEGRITY INITIATIVES.

       (a) Adjustments to Discretionary Spending Limits.--
       (1) Continuing disability reviews and supplemental security 
     income redeterminations.--If a bill or joint resolution is 
     reported making appropriations for fiscal year 2008 that 
     appropriates $264,000,000 for continuing disability reviews 
     and Supplemental Security Income redeterminations for the 
     Social Security Administration, and provides an additional 
     appropriation of up to $213,000,000 and the amount is 
     designated for continuing disability reviews and Supplemental 
     Security Income redeterminations for the Social Security 
     Administration, then the allocation to the House Committee on 
     Appropriations shall be increased by the amount of the 
     additional budget authority and outlays flowing from that 
     budget authority for fiscal year 2008.
       (2) Internal revenue service tax compliance.--If a bill or 
     joint resolution is reported making appropriations for fiscal 
     year 2008 that appropriates up to $6,822,000,000 to the 
     Internal Revenue Service and the amount is designated to 
     improve compliance with the provisions of the Internal 
     Revenue Code of 1986 and provides an additional appropriation 
     of up to $406,000,000, and the amount is designated to 
     improve compliance with the provisions of the Internal 
     Revenue Code of 1986, then the allocation to the House 
     Committee on Appropriations shall be increased by the amount 
     of the additional budget authority and outlays flowing from 
     that budget authority for fiscal year 2008.
       (3) Healthcare fraud and abuse control program.--If a bill 
     or joint resolution is reported making appropriations for 
     fiscal year 2008 that appropriates up to $183,000,000 and the 
     amount is designated to the healthcare fraud and abuse 
     control program at the Department of Health and Human 
     Services, then the allocation to the House Committee on 
     Appropriations shall be increased by the amount of additional 
     budget authority and outlays flowing from that budget 
     authority for fiscal year 2008.
       (4) Unemployment insurance improper payments.--If a bill or 
     joint resolution is reported making appropriations for fiscal 
     year 2008 that appropriates $10,000,000 for unemployment 
     insurance improper payment reviews for the Department of 
     Labor, and provides an additional appropriation of up to 
     $40,000,000 and the amount is designated for unemployment 
     insurance improper payment reviews for the Department of 
     Labor, then the allocation to the House Committee on 
     Appropriations shall be increased by the amount of the 
     additional budget authority and outlays flowing from that 
     budget authority for fiscal year 2008.
       (b) Procedure for Adjustments.--
       (1) In general.--
       (A) Chairman.--After the reporting of a bill or joint 
     resolution, or the offering of an amendment thereto or the 
     submission of a conference report thereon, the chairman of 
     the Committee on the Budget shall make the adjustments set 
     forth in subparagraph (B) for the incremental new budget 
     authority in that measure (if that measure meets the 
     requirements set forth in paragraph (2)) and the outlays 
     flowing from that budget authority.
       (B) Matters to be adjusted.--The adjustments referred to in 
     subparagraph (A) are to be made to--
       (i) the allocations made pursuant to the appropriate 
     concurrent resolution on the budget pursuant to section 
     302(a) of the Congressional Budget Act of 1974; and
       (ii) the budgetary aggregates as set forth in this 
     resolution.
       (c) Oversight of Government Performance.--In the House, all 
     committees are directed to review programs within their 
     jurisdiction to root out waste, fraud, and abuse in program 
     spending, giving particular scrutiny to issues raised by 
     Government Accountability Office reports. Based on these 
     oversight efforts and committee performance reviews of 
     programs within their jurisdiction, committees are directed 
     to include recommendations for improved governmental 
     performance in their annual views and estimates reports 
     required under section 301(d) of the Congressional Budget Act 
     of 1974 to the Committee on the Budget.

     SEC. 302. ADVANCE APPROPRIATIONS.

       (a) In General.--In the House, except as provided in 
     subsection (b), a bill or joint resolution making a general 
     appropriation or continuing appropriation, or an amendment 
     thereto may not provide for advance appropriations.
       (b) Advance Appropriation.--In the House, an advance 
     appropriation may be provided for fiscal year 2009 or 2010 
     for programs, projects, activities, or accounts identified in 
     the joint explanatory statement of managers accompanying this 
     resolution under the heading ``Accounts Identified for 
     Advance Appropriations'' in an aggregate amount not to exceed 
     $25,558,000,000 in new budget authority.
       (c) Definition.--In this section, the term ``advance 
     appropriation'' means any new discretionary budget authority 
     provided in a bill or joint resolution making general 
     appropriations or any new discretionary budget authority 
     provided in a bill or joint resolution continuing 
     appropriations for fiscal year 2008 that first becomes 
     available for any fiscal year after 2008.

     SEC. 303. OVERSEAS DEPLOYMENTS AND EMERGENCY NEEDS.

       (a) Overseas Deployments and Related Activities.--In the 
     House, any bill or joint resolution or amendment offered or 
     considered as adopted or a conference report thereon, that 
     makes appropriations for fiscal year 2008 or fiscal year 2009 
     for overseas deployments and related activities, and such 
     amounts are so designated pursuant to this subsection, then 
     new budget authority, outlays or receipts resulting therefrom 
     shall not count for the purposes of titles III and IV of the 
     Congressional Budget Act of 1974.
       (b) Emergency Needs.--In the House, any bill or joint 
     resolution, or amendment offered or considered as adopted or 
     conference report thereon, that makes appropriations for 
     nondefense discretionary amounts, and such amounts are 
     designated as necessary to meet emergency needs, then the new 
     budget authority, outlays, or receipts resulting therefrom 
     shall not be counted for the purposes of titles III and IV of 
     the Congressional Budget Act of 1974.

[[Page H4582]]

     SEC. 304. APPLICATION AND EFFECT OF CHANGES IN ALLOCATIONS 
                   AND AGGREGATES.

       (a) Application.--Any adjustments of allocations and 
     aggregates made pursuant to this resolution shall--
       (1) apply while that measure is under consideration;
       (2) take effect upon the enactment of that measure; and
       (3) be published in the Congressional Record as soon as 
     practicable.
       (b) Effect of Changed Allocations and Aggregates.--Revised 
     allocations and aggregates resulting from these adjustments 
     shall be considered for the purposes of the Congressional 
     Budget Act of 1974 as allocations and aggregates contained in 
     this resolution.
       (c) Committee on the Budget Determinations.--For purposes 
     of this resolution, the levels of new budget authority, 
     outlays, direct spending, new entitlement authority, 
     revenues, deficits, and surpluses for a fiscal year or period 
     of fiscal years shall be determined on the basis of estimates 
     made by the Committee on the Budget.

     SEC. 305. ADJUSTMENTS TO REFLECT CHANGES IN CONCEPTS AND 
                   DEFINITIONS.

       Upon the enactment of a bill or joint resolution providing 
     for a change in concepts or definitions, the chairman of the 
     Committee on the Budget shall make adjustments to the levels 
     and allocations in this resolution in accordance with section 
     251(b) of the Balanced Budget and Emergency Deficit Control 
     Act of 1985 (as in effect on September 30, 2002).

     SEC. 306. COMPLIANCE WITH SECTION 13301 OF THE BUDGET 
                   ENFORCEMENT ACT OF 1990.

       (a) In General.--In the House and the Senate, 
     notwithstanding section 302(a)(1) of the Congressional Budget 
     Act of 1974 and section 13301 of the Budget Enforcement Act 
     of 1990, the joint explanatory statement accompanying the 
     conference report on any concurrent resolution on the budget 
     shall include in its allocation under section 302(a) of the 
     Congressional Budget Act of 1974 to the Committee on 
     Appropriations amounts for the discretionary administrative 
     expenses of the Social Security Administration.
       (b) Special Rule.--In the House, for purposes of applying 
     section 302(f) of the Congressional Budget Act of 1974, 
     estimates of the level of total new budget authority and 
     total outlays provided by a measure shall include any 
     discretionary amounts provided for the Social Security 
     Administration.

     SEC. 307. EXERCISE OF RULEMAKING POWERS.

       Congress adopts the provisions of this title--
       (1) as an exercise of the rulemaking power of the House and 
     as such they shall be considered as part of the rules of the 
     House, 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 
     the House to change those rules at any time, in the same 
     manner, and to the same extent as in the case of any other 
     rule of the House.

                            TITLE IV--POLICY

     SEC. 401. POLICY ON MIDDLE-INCOME TAX RELIEF.

       It is the policy of this resolution to minimize fiscal 
     burdens on middle-income families and their children and 
     grandchildren. It is the policy of this resolution to provide 
     immediate relief for the tens of millions of middle-income 
     households who would otherwise be subject to the Alternative 
     Minimum Tax (AMT) under current law in the context of 
     permanent, revenue-neutral AMT reform. Furthermore, it is the 
     policy of this resolution to support extension of middle-
     income tax relief and enhanced economic equity through 
     policies such as--
       (1) extension of the child tax credit;
       (2) extension of marriage penalty relief;
       (3) extension of the 10 percent individual income tax 
     bracket;
       (4) elimination of estate taxes on all but a minute 
     fraction of estates by reforming and substantially increasing 
     the unified tax credit;
       (5) extension of the research and experimentation tax 
     credit;
       (6) extension of the deduction for State and local sales 
     taxes;
       (7) extension of the deduction for small business 
     expensing; and
       (8) enactment of a tax credit for school construction 
     bonds.

     This resolution assumes the cost of enacting such policies is 
     offset by reforms within the Internal Revenue Code of 1986 
     that promote a fairer distribution of taxes across families 
     and generations, economic efficiency, higher rates of tax 
     compliance to close the ``tax gap'', and reduced taxpayer 
     burdens through tax simplification.

     SEC. 402. POLICY ON DEFENSE PRIORITIES.

       It is the policy of this resolution that--
       (1) recommendations of the National Commission on Terrorist 
     Attacks Upon the United States (commonly referred to as the 
     9/11 Commission) to fund cooperative threat reduction and 
     nuclear nonproliferation programs at a level commensurate 
     with the risk is a high priority, and the President's budget 
     should have requested sufficient funding for these programs;
       (2) ensuring that the TRICARE fees for military retirees 
     under the age of 65 remain at current levels;
       (3) funds be provided for increasing pay to ensure 
     retention of experienced personnel and for improving military 
     benefits in general;
       (4) the Missile Defense Agency should be funded at an 
     adequate but lower level and the elimination of space-based 
     interceptor development will ensure a more prudent 
     acquisition strategy, yet still support a robust ballistic 
     missile defense program;
       (5) satellite research, development, and procurement be 
     funded at a level below the amount requested for fiscal year 
     2008, which amounts to a 26 percent increase above the 
     current level, but at a level sufficient to develop new 
     satellite technologies while ensuring a more prudent 
     acquisition strategy;
       (6) sufficient resources be provided to implement 
     Government Accountability Office (GAO) recommendations, such 
     as improving financial management and contracting practices 
     at the Department of Defense (DOD), and that substantial 
     savings should result from the identification of billions of 
     dollars of obligations and disbursements and Government 
     overcharges for which the Department of Defense cannot 
     account;
       (7) that the Department of Defense should do a more careful 
     job of addressing the 1,378 Government Accountability Office 
     recommendations made to the Department of Defense and its 
     components over the last six years that have yet to be 
     implemented, which could produce billions of dollars in 
     savings; and
       (8) accruing all savings from the actions recommended in 
     paragraphs (4) through (7) should be used to fund higher 
     priorities within Function 050 (Defense), and especially 
     those high priorities identified in paragraphs (1) through 
     (3) and to help fund recommendations of the bipartisan 
     ``Walter Reed Commission'' (the President's Commission on 
     Care for America's Returning Wounded Warriors) and other 
     United States Government investigations into military 
     healthcare facilities and services.

     SEC. 403. POLICY ON COLLEGE AFFORDABILITY.

       It is the policy of this resolution that the reconciliation 
     directive to the Committee on Education and Labor shall not 
     be construed to reduce any assistance that makes college more 
     affordable for students, including but not limited to 
     assistance to student aid programs run by nonprofit state 
     agencies.

                      TITLE V--SENSE OF THE HOUSE

     SEC. 501. SENSE OF THE HOUSE ON SERVICEMEMBERS' AND VETERANS' 
                   HEALTH CARE AND OTHER PRIORITIES.

       It is the sense of the House that--
       (1) the House supports excellent health care for current 
     and former members of the United States Armed Services, who 
     have served well and honorably and have made significant 
     sacrifices for this Nation;
       (2) this resolution provides $43,055,000,000 in 
     discretionary budget authority for 2008 for Function 700 
     (Veterans Benefits and Services), including veterans' health 
     care, which is $6,598,000,000 more than the 2007 level, 
     $5,404,000,000 more than the Congressional Budget Office's 
     baseline level for 2008, and $3,506,000,000 more than the 
     President's budget for 2008;
       (3) this resolution provides funding to implement, in part, 
     recommendations of the bi-partisan ``Walter Reed Commission'' 
     (the President's Commission on Care for America's Returning 
     Wounded Warriors) and other United States Government 
     investigations into military and veterans health care 
     facilities and services;
       (4) this resolution assumes the rejection of the enrollment 
     fees and co-payment increases in the President's budget;
       (5) this resolution provides additional funding above the 
     President's inadequate budget levels for the Department of 
     Veterans Affairs to research and treat veterans' mental 
     health, post-traumatic stress disorder, and traumatic brain 
     and spinal cord injuries; and
       (6) this resolution provides additional funding above the 
     President's inadequate budget levels for the Department of 
     Veterans Affairs to improve the speed and accuracy of its 
     processing of disability compensation claims, including 
     funding to hire additional personnel above the President's 
     requested level.

     SEC. 502. SENSE OF THE HOUSE ON THE INNOVATION AGENDA: A 
                   COMMITMENT TO COMPETITIVENESS TO KEEP AMERICA 
                   #1.

       (a) It is the sense of the House to provide sufficient 
     funding that our Nation may continue to be the world leader 
     in education, innovation and economic growth. This resolution 
     provides $450,000,000 above the President's requested level 
     for 2008, and additional amounts in subsequent years in 
     Function 250 (General Science, Space and Technology) and 
     Function 270 (Energy). Additional increases for scientific 
     research and education are included in Function 500 
     (Education, Employment, Training, and Social Services), 
     Function 550 (Health), Function 300 (Environment and Natural 
     Resources), Function 350 (Agriculture), Function 400 
     (Transportation), and Function 370 (Commerce and Housing 
     Credit), all of which receive more funding than the President 
     requested.
       (b) America's greatest resource for innovation resides 
     within classrooms across the country. The increased funding 
     provided in this resolution will support important 
     initiatives to educate 100,000 new scientists, engineers, and 
     mathematicians, and place highly qualified teachers in math 
     and science K-12 classrooms.
       (c) Independent scientific research provides the foundation 
     for innovation and future technologies. This resolution will 
     put us on the path toward doubling funding for the National 
     Science Foundation, basic research in

[[Page H4583]]

     the physical sciences across all agencies, and collaborative 
     research partnerships; and toward achieving energy 
     independence through the development of clean and sustainable 
     alternative energy technologies.

     SEC. 503. SENSE OF THE HOUSE ON HOMELAND SECURITY.

       It is the sense of the House that--
       (1) this resolution assumes additional homeland security 
     funding above the President's requested level for 2008 and 
     every subsequent year;
       (2) this resolution assumes funding above the President's 
     requested level for 2008, and additional amounts in 
     subsequent years, in the four budget functions: Function 400 
     (Transportation), Function 450 (Community and Regional 
     Development), Function 550 (Health), and Function 750 
     (Administration of Justice) that fund most nondefense 
     homeland security activities; and
       (3) the homeland security funding provided in this 
     resolution will help to strengthen the security of our 
     Nation's transportation system, particularly our ports where 
     significant security shortfalls still exist and foreign 
     ports, by expanding efforts to identify and scan all high-
     risk United States-bound cargo, equip first responders, 
     strengthen border patrol, and increase the preparedness of 
     the public health system.

     SEC. 504. SENSE OF THE HOUSE REGARDING THE ONGOING NEED TO 
                   RESPOND TO HURRICANES KATRINA AND RITA.

       It is the sense of the House that:
       (1) Critical needs in the Gulf Coast region should be 
     addressed without further delay. The budget resolution 
     creates a reserve fund that would allow for affordable 
     housing that may be used to focus on areas devastated by 
     Hurricanes Katrina and Rita, as well as new funding for 
     additional recovery priorities.
       (2) Additional oversight and investigation is needed to 
     ensure that recovery efforts are on track, develop 
     legislation to reform the contracting process, and better 
     prepare for future disasters. Those efforts should be made in 
     close consultation with residents of affected areas. The 
     budget resolution provides additional 2007 funding for the 
     Federal Emergency Management Agency, some of which may be 
     used for this purpose.

     SEC. 505. SENSE OF THE HOUSE REGARDING LONG-TERM 
                   SUSTAINABILITY OF ENTITLEMENTS.

       (a) Findings.--The House finds the following:
       (1) The aging of the United States population is going to 
     put unprecedented pressure on the Nation's retirement and 
     health care systems.
       (2) The long-term strength of social security would be 
     improved through a fiscally responsible policy of reducing 
     the deficit and paying down the debt that has accumulated 
     since 2001, thus reducing debt service payments and freeing 
     up billions of dollars that can be dedicated to meeting 
     social security's obligations.
       (3) A policy of reducing and eventually eliminating the 
     deficit and paying down the debt is a key factor in improving 
     the long-term strength of the economy as a whole, because a 
     lower debt burden frees up resources for productive 
     investments that will result in higher economic growth, 
     provide a higher standard of living for future generations, 
     and enhance the Nation's ability to meet its commitments to 
     its senior citizens.
       (4) The most significant factor affecting the Nation's 
     entitlement programs is the rapid increase in health care 
     costs. The projected increasing costs of medicare and 
     medicaid are not unique to these programs but rather are part 
     of a pattern of rising costs for the health sector as a 
     whole.
       (b) Sense of the House.--It is the sense of the House that 
     the growing cost of entitlements should be addressed in a way 
     that is fiscally responsible and promotes economic growth, 
     that addresses the causes of cost growth in the broader 
     health care system, and that protects beneficiaries without 
     leaving a legacy of debt to future generations.

     SEC. 506. SENSE OF THE HOUSE REGARDING THE NEED TO MAINTAIN 
                   AND BUILD UPON EFFORTS TO FIGHT HUNGER.

       (a) Findings.--The House finds the following:
       (1) More than 35 million individuals (12.4 million of them 
     children) are food insecure, uncertain of having, or unable 
     to acquire enough food. 10.8 million Americans are hungry 
     because of lack of food.
       (2) Despite the critical contributions of the Department of 
     Agriculture nutrition programs and particularly the food 
     stamp program that significantly reduced payment error rates 
     while increasing enrollment to partially mitigate the impact 
     of recent increases in the poverty rate, significant need 
     remains.
       (3) Nearly 25 million people, including nine million 
     children and three million seniors, sought emergency food 
     assistance from food pantries, soup kitchens, shelters, and 
     local charities last year.
       (b) Sense of the House.--It is the sense of the House that 
     the Department of Agriculture programs that help fight hunger 
     should be maintained and that the House should seize 
     opportunities to enhance those programs to reach people in 
     need and to fight hunger.

     SEC. 507. SENSE OF THE HOUSE REGARDING AFFORDABLE HEALTH 
                   COVERAGE.

       (a) Findings.--The House finds the following:
       (1) More than 46 million Americans, including nine million 
     children, lack health insurance. People without health 
     insurance are more likely to experience problems getting 
     medical care and to be hospitalized for avoidable health 
     problems.
       (2) Most Americans receive health coverage through their 
     employers. A major issue facing all employers is the rising 
     cost of health insurance. Small businesses, which have 
     generated most of the new jobs annually over the last decade, 
     have an especially difficult time affording health coverage, 
     due to higher administrative costs and fewer people over whom 
     to spread the risk of catastrophic costs. Because it is 
     especially costly for small businesses to provide health 
     coverage, their employees make up a large proportion of the 
     nation's uninsured individuals.
       (b) Sense of the House.--It is the sense of the House that 
     legislation consistent with the pay-as-you-go principle 
     should be adopted that makes health insurance more affordable 
     and accessible, with attention to the special needs of small 
     businesses, and that lowers costs and improves the quality of 
     health care by encouraging integration of health information 
     technology tools into the practice of medicine, and promoting 
     improvements in disease management and disease prevention.

     SEC. 508. SENSE OF THE HOUSE REGARDING EXTENSION OF THE 
                   STATUTORY PAY-AS-YOU-GO RULE.

       It is the sense of the House that in order to reduce the 
     deficit Congress should extend PAYGO in its original form in 
     the Budget Enforcement Act of 1990.

     SEC. 509. SENSE OF THE HOUSE ON LONG-TERM BUDGETING.

       It is the sense of Congress that the determination of the 
     congressional budget for the United States Government and the 
     President's budget request should include consideration of 
     the Financial Report of the United States Government, 
     especially its information regarding the Government's net 
     operating cost, financial position, and long-term 
     liabilities.

     SEC. 510. SENSE OF THE HOUSE REGARDING PAY PARITY.

       It is the sense of the House that rates of compensation for 
     civilian employees of the United States should be adjusted at 
     the same time, and in the same proportion, as are rates of 
     compensation for members of the uniformed services.

     SEC. 511. SENSE OF THE HOUSE REGARDING WASTE, FRAUD, AND 
                   ABUSE.

       It is the sense of the House that all committees should 
     examine programs within their jurisdiction to identify 
     wasteful and fraudulent spending. To this end, section 301 of 
     this resolution includes cap adjustments to provide 
     appropriations for three programs that accounted for a 
     significant share of improper payments reported by Federal 
     agencies in 2006: Social Security Administration Continuing 
     Disability Reviews, the Medicare/Medicaid Health Care Fraud 
     and Abuse Control Program, and Unemployment Insurance. 
     Section 301 also includes a cap adjustment for the Internal 
     Revenue Services for tax compliance efforts to close the 
     $300,000,000,000 tax gap. In addition, the resolution's 
     deficit-neutral reserve funds require authorizing committees 
     to cut lower priority and wasteful spending to accommodate 
     new high-priority entitlement benefits. Finally, section 301 
     of the resolution directs all committees to review the 
     performance of programs within their jurisdiction and report 
     recommendations annually to the Committee on the Budget as 
     part of the views and estimates process required by section 
     301(d) of the Congressional Budget Act.

     SEC. 512. SENSE OF THE HOUSE REGARDING THE IMPORTANCE OF 
                   CHILD SUPPORT ENFORCEMENT.

       It is the sense of the House that--
       (1) additional legislative action is needed to ensure that 
     States have the necessary resources to collect all child 
     support that is owed to families and to allow them to pass 
     100 percent of support on to families without financial 
     penalty; and
       (2) when 100 percent of child support payments are passed 
     to the child, rather than administrative expenses, program 
     integrity is improved and child support participation 
     increases.

     SEC. 513. SENSE OF THE HOUSE ON STATE VETERANS CEMETERIES.

       It is the sense of the House that the Federal Government 
     should pay the plot allowance for the interment in a State 
     veterans cemetery of any spouse or eligible child of a 
     veteran, consistent with the pay-as-you-go principle.

                        TITLE VI--RECONCILIATION

     SEC. 601. RECONCILIATION.

       (a) Instructions.--The House Committee on Education and 
     Labor shall report changes in laws to reduce the deficit by 
     $75,000,000 for the period of fiscal years 2007 through 2012.
       (b) Mandatory Savings.--Not later than September 10, 2007, 
     the House Committee on Education and Labor shall submit its 
     recommendations to the House of Representatives.
       (c) Submission of Revised Allocations.--Upon the submission 
     to the House of a reconciliation bill or conference report 
     thereon, that complies with this reconciliation instruction, 
     the chairman of the Committee on the Budget may file with the 
     House appropriately revised allocations and budgetary 
     aggregates. Such revisions shall be considered to be the 
     allocations and aggregates established by the concurrent 
     resolution on the budget pursuant to section 301 of the 
     Congressional Budget Act of 1974.


[[Page H4584]]


  The SPEAKER pro tempore. Pursuant to House Resolution 370, the 
previous question is ordered.
  The question is on concurring in the Senate concurrent resolution, as 
amended.
  Pursuant to clause 10 of rule XX, the yeas and nays are ordered.
  The vote was taken by electronic device, and there were--yeas 212, 
nays 207, not voting 13, as follows:

                             [Roll No. 307]

                               YEAS--212

     Abercrombie
     Ackerman
     Allen
     Altmire
     Andrews
     Arcuri
     Baca
     Baird
     Baldwin
     Becerra
     Berkley
     Berman
     Berry
     Bishop (GA)
     Bishop (NY)
     Blumenauer
     Boswell
     Boucher
     Boyd (FL)
     Boyda (KS)
     Brady (PA)
     Braley (IA)
     Capps
     Capuano
     Cardoza
     Carnahan
     Carney
     Carson
     Castor
     Chandler
     Clarke
     Clay
     Cleaver
     Clyburn
     Cohen
     Conyers
     Cooper
     Costa
     Costello
     Courtney
     Cramer
     Crowley
     Cuellar
     Cummings
     Davis (AL)
     Davis (CA)
     Davis (IL)
     Davis, Lincoln
     DeFazio
     DeGette
     Delahunt
     DeLauro
     Dicks
     Dingell
     Doggett
     Edwards
     Ellison
     Emanuel
     Eshoo
     Etheridge
     Farr
     Filner
     Frank (MA)
     Giffords
     Gillibrand
     Gonzalez
     Gordon
     Green, Al
     Green, Gene
     Grijalva
     Gutierrez
     Hall (NY)
     Hare
     Harman
     Hastings (FL)
     Herseth Sandlin
     Higgins
     Hinchey
     Hinojosa
     Hirono
     Hodes
     Holden
     Holt
     Honda
     Hooley
     Hoyer
     Inslee
     Israel
     Jackson (IL)
     Jackson-Lee (TX)
     Jefferson
     Johnson (GA)
     Jones (OH)
     Kagen
     Kanjorski
     Kaptur
     Kennedy
     Kildee
     Kilpatrick
     Kind
     Klein (FL)
     Lampson
     Langevin
     Lantos
     Larsen (WA)
     Larson (CT)
     Lee
     Levin
     Lewis (GA)
     Lipinski
     Loebsack
     Lofgren, Zoe
     Lowey
     Lynch
     Mahoney (FL)
     Maloney (NY)
     Markey
     Matsui
     McCarthy (NY)
     McCollum (MN)
     McDermott
     McGovern
     McIntyre
     McNerney
     McNulty
     Meehan
     Meek (FL)
     Meeks (NY)
     Melancon
     Michaud
     Miller (NC)
     Miller, George
     Mollohan
     Moore (KS)
     Moore (WI)
     Moran (VA)
     Murphy (CT)
     Murtha
     Nadler
     Napolitano
     Neal (MA)
     Oberstar
     Obey
     Olver
     Ortiz
     Pallone
     Pascrell
     Pastor
     Payne
     Perlmutter
     Peterson (MN)
     Pomeroy
     Price (NC)
     Rahall
     Rangel
     Reyes
     Rodriguez
     Ross
     Rothman
     Roybal-Allard
     Rush
     Ryan (OH)
     Salazar
     Sanchez, Linda T.
     Sanchez, Loretta
     Sarbanes
     Schakowsky
     Schiff
     Schwartz
     Scott (GA)
     Scott (VA)
     Serrano
     Sestak
     Shea-Porter
     Sherman
     Sires
     Skelton
     Slaughter
     Smith (WA)
     Snyder
     Solis
     Space
     Spratt
     Stark
     Stupak
     Sutton
     Tanner
     Tauscher
     Taylor
     Thompson (CA)
     Thompson (MS)
     Tierney
     Towns
     Udall (CO)
     Udall (NM)
     Van Hollen
     Velazquez
     Visclosky
     Walz (MN)
     Wasserman Schultz
     Waters
     Watson
     Watt
     Waxman
     Weiner
     Welch (VT)
     Wexler
     Wilson (OH)
     Woolsey
     Wu
     Wynn
     Yarmuth

                               NAYS--207

     Aderholt
     Akin
     Alexander
     Bachmann
     Bachus
     Baker
     Barrett (SC)
     Barrow
     Bartlett (MD)
     Barton (TX)
     Bean
     Biggert
     Bilbray
     Bilirakis
     Bishop (UT)
     Blackburn
     Blunt
     Boehner
     Bonner
     Bono
     Boozman
     Boren
     Boustany
     Brady (TX)
     Brown (SC)
     Brown-Waite, Ginny
     Buchanan
     Burgess
     Burton (IN)
     Buyer
     Calvert
     Camp (MI)
     Campbell (CA)
     Cannon
     Cantor
     Capito
     Carter
     Castle
     Chabot
     Coble
     Cole (OK)
     Conaway
     Crenshaw
     Cubin
     Culberson
     Davis (KY)
     Davis, David
     Davis, Jo Ann
     Davis, Tom
     Deal (GA)
     Dent
     Diaz-Balart, L.
     Diaz-Balart, M.
     Donnelly
     Doolittle
     Drake
     Dreier
     Duncan
     Ehlers
     Ellsworth
     Emerson
     English (PA)
     Everett
     Fallin
     Ferguson
     Flake
     Forbes
     Fortenberry
     Fossella
     Foxx
     Franks (AZ)
     Frelinghuysen
     Gallegly
     Garrett (NJ)
     Gerlach
     Gillmor
     Gingrey
     Gohmert
     Goode
     Goodlatte
     Granger
     Graves
     Hall (TX)
     Hastert
     Hastings (WA)
     Hayes
     Heller
     Hensarling
     Herger
     Hill
     Hobson
     Hoekstra
     Hunter
     Inglis (SC)
     Issa
     Jindal
     Johnson (IL)
     Johnson, Sam
     Jones (NC)
     Jordan
     Keller
     King (IA)
     King (NY)
     Kingston
     Kirk
     Kline (MN)
     Knollenberg
     Kucinich
     Kuhl (NY)
     LaHood
     Lamborn
     Latham
     LaTourette
     Lewis (CA)
     Lewis (KY)
     Linder
     LoBiondo
     Lucas
     Lungren, Daniel E.
     Mack
     Manzullo
     Marchant
     Marshall
     Matheson
     McCarthy (CA)
     McCaul (TX)
     McCotter
     McCrery
     McHenry
     McHugh
     McKeon
     Mica
     Miller (FL)
     Miller (MI)
     Miller, Gary
     Mitchell
     Moran (KS)
     Murphy, Patrick
     Murphy, Tim
     Musgrave
     Myrick
     Neugebauer
     Nunes
     Paul
     Pearce
     Pence
     Peterson (PA)
     Petri
     Pickering
     Pitts
     Platts
     Poe
     Porter
     Price (GA)
     Pryce (OH)
     Putnam
     Radanovich
     Ramstad
     Regula
     Rehberg
     Reichert
     Renzi
     Reynolds
     Rogers (AL)
     Rogers (KY)
     Rogers (MI)
     Rohrabacher
     Ros-Lehtinen
     Roskam
     Royce
     Ryan (WI)
     Sali
     Saxton
     Schmidt
     Sensenbrenner
     Sessions
     Shadegg
     Shays
     Shimkus
     Shuler
     Shuster
     Simpson
     Smith (NE)
     Smith (NJ)
     Smith (TX)
     Stearns
     Sullivan
     Tancredo
     Terry
     Thornberry
     Tiberi
     Turner
     Upton
     Walberg
     Walden (OR)
     Walsh (NY)
     Wamp
     Weldon (FL)
     Weller
     Westmoreland
     Whitfield
     Wicker
     Wilson (NM)
     Wilson (SC)
     Wolf
     Young (AK)
     Young (FL)

                             NOT VOTING--13

     Brown, Corrine
     Butterfield
     Doyle
     Engel
     Fattah
     Feeney
     Gilchrest
     Hulshof
     Johnson, E. B.
     McMorris Rodgers
     Ruppersberger
     Souder
     Tiahrt


                Announcement by the Speaker Pro Tempore

  The SPEAKER pro tempore (during the vote). Members are advised that 
there are 2 minutes remaining in this vote.

                              {time}  1407

  Mr. BERMAN changed his vote from ``nay'' to ``yea.''
  So the Senate concurrent resolution, as amended, was concurred in. 
200-205
  The result of the vote was announced as above recorded.
  A motion to reconsider was laid on the table.


                       Motion to Go to Conference

  Mr. SPRATT. Mr. Speaker, pursuant to House Resolution 370, I offer a 
motion.
  The SPEAKER pro tempore. The Clerk will report the motion.
  The Clerk read as follows:

       Mr. Spratt moves that the House insist on its amendment and 
     request a conference with the Senate thereon.

  The SPEAKER pro tempore. Pursuant to House Resolution 370, the 
previous question is ordered.
  The motion was agreed to.
  A motion to reconsider was laid on the table.


                      Motion to Instruct Conferees

  Mr. RYAN of Wisconsin. Mr. Speaker, I offer a motion to instruct 
conferees.
  The Clerk read as follows:

       Mr. Ryan of Wisconsin moves that the managers of the part 
     of the House at the conference on the disagreeing votes of 
     the two Houses on the House amendment to the concurrent 
     resolution on the budget, S. Con. Res. 21, be instructed to:
       (A) Recede from the revenue levels set forth in the House 
     amendment; insist on the policy statement in section 401 of 
     the House amendment to support the extension of such tax 
     provisions as the child tax credit, extension of marriage 
     penalty relief, extension of the 10 percent individual income 
     tax bracket, extension of the research and experimentation 
     tax credit, extension of the deduction for State and local 
     sales taxes; and recede to section 210 of the Senate 
     resolution which prohibits consideration of an increase in 
     Federal income tax rates;
       (B) Insist on the lowest possible levels of revenue within 
     the scope of the conference in fiscal years 2011 and 2012; 
     and make any commensurate adjustments in outlay levels; and
       (C) Set forth a unified surplus of at least $96 billion in 
     fiscal year 2012 in resolving the differences between section 
     101(4) of the House amendment and section 101(4) of the 
     Senate resolution.

  Mr. RYAN of Wisconsin (during the reading). Mr. Speaker, I ask 
unanimous consent that the motion be considered as read and printed in 
the Record.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Wisconsin?
  There was no objection.
  The SPEAKER pro tempore. Pursuant to clause 7 of rule XXII, the 
gentleman from Wisconsin (Mr. Ryan) and the gentleman from South 
Carolina (Mr. Spratt) each will control 30 minutes.
  The Chair recognizes the gentleman from Wisconsin.
  Mr. RYAN of Wisconsin. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, the motion we are offering today reflects a very simple 
up or down choice: One, rejecting the largest tax increase in our 
Nation's history, which is contained in the House budget; two, 
insisting on the lowest possible level of taxes available in the budget 
conference; and three, stopping the raid on Social Security's cash 
surpluses.
  Both the House and the Senate Democrat budgets call for historic tax 
increases, and we in the minority can't do anything to prevent that. 
But we hope that, with this vote, we can at least minimize the damage 
that these tax hikes will bring.
  Let me take a moment to describe the options that we have to work 
with as a minority. The House-passed budget would impose a tax hike of 
$392 billion from such things as reimposing

[[Page H4585]]

the tax penalty on married couples, cutting in half the child tax 
credit, and raising marginal income tax rates on low- and middle-income 
working families.
  This would increase the average family's tax bill by roughly $2,900 a 
year and likely reverse the economic progress we have achieved over the 
past few years. So, right along with their higher tax bill, Americans 
would see fewer jobs and slower wage growth.
  This massive tax increase was the only way the House Democrats could 
accomplish their massive increase in spending. Their budget makes no 
effort, none, to moderate the growth of spending. It simply requires 
taxpayers to send more of their money to make the Democrats' budget 
numbers add up.
  In our debate a few weeks ago, the Democrats tried gamely to assert 
that their budget doesn't increase taxes after all. And as proof, they 
pointed to the novel policy language that claims that they will extend 
some of the tax relief provisions enacted in 2001 and 2003. They have 
these reserve funds that say they don't really want to raise taxes. But 
if you read the fine print, this would only happen later and only if 
they hike some other taxes by the same amount. So even with the flowery 
reserve fund language, the goal, the preference of not raising taxes 
can only be met if they raise taxes.
  But the numbers in this budget tell a very different story. By the 
numbers, which is what a budget is all about, the House budget raises 
taxes nearly $400 billion, and numbers do not lie.
  The other option is the Senate budget, which raises taxes by about 
$216 billion, the second largest tax increase in American history. This 
will include higher taxes on middle-income earners because the Senate 
budget still raises marginal income tax rates across the board. But at 
least it attempts to protect the marriage penalty relief, child tax 
credit and estate tax relief.
  Unfortunately, the other Chamber, like their Democrat counterparts in 
the House, also call for large spending increases. And as a 
consequence, their budget will continue to raid the Social Security 
trust funds in fiscal year 2012, something the House-passed budget and 
the Republican substitute did not do.
  So while the Democrat budget in the Senate didn't raise as many 
taxes, it did raid the Social Security trust fund, and the House 
Republican and the House Democrat budget resolution did not.
  So, what we are simply trying to do is get the best of both products 
such that it can be had. Accordingly, our motion would simply direct 
the conferees to do two things: First, reject the House's $392 billion 
tax increase, again, the largest tax increase in American history, and 
keep their tax hike to the lowest possible level permitted under the 
rules. Second, insist on the lowest possible level of taxes between the 
House-passed and Senate-passed Democrat budgets. This language is 
included because the motion is required to stay within the scope of the 
two budgets. We wish we could do more, but this is the scope we have 
been dealt. Third, it would direct the conferees to stop raiding Social 
Security for the government's operating budget. They should do this by 
running a unified surplus, including Social Security, of $96 billion in 
fiscal year 2012, which is equal to the Social Security cash surplus 
for that year.
  We know that this is possible because we proved it could be done in 
our own budget. Our Republican budget not only balanced the budget 
without raising anyone's taxes, we ran a surplus that ensured the 
Social Security trust funds would not be raided.
  So, again, today we are simply asking our Democratic colleagues to do 
the following: one, reject the largest tax increase in American 
history; and two, stop the raid of the Social Security cash surplus.
  This is a simple choice. A ``yes'' vote supports these objectives. A 
``no'' vote rejects them.
  And with that, Mr. Speaker, I reserve the balance of my time.
  Mr. SPRATT. Mr. Speaker, I yield myself 4 minutes.
  Mr. Speaker, let me say from the outset what we said yesterday in the 
debate of this bill. But let me refer to third parties, independent, 
disinterested third parties like the Concord Coalition. They took a 
look at our budget, and they said unequivocally, and I'm quoting, 
``Thus, to be clear, the budget resolution does not call for or require 
a tax increase.''
  The Center on Budget and Policy Priorities, excellent analytical 
work, they took a look at our budget and they said, ``The House budget 
does not include a tax increase.''
  And then, finally, the Hamilton Project of the Brookings Institution, 
independent, disinterested said, plainly, simply, ``This budget would 
not raise taxes.''
  We have included in the budget resolution not one place, but twice, 
in different parts of the resolution, our wholehearted endorsement, our 
commitment, our pledge, our determination to see that these middle-
income tax cuts are preserved and enacted and carried forward when they 
expire per their terms.
  The budget resolution does not cause them to expire. They were 
designed to expire, written to expire when they were offered and 
passed. At that particular time, that was part of the provision.

                              {time}  1415

  In addition, I am making clear again that our budget resolution 
allows all of the deductions, credits, exemptions and exclusions that 
are provided in the 2001 and 2003 tax cuts. All of them are provided 
and allowed to stay in place this year, next year, and for the next 4 
years. So there is very little disagreement about us except I am 
wondering about the arithmetic.
  Budget resolution motions to instruct are nonbinding. They are a 
valid part of the process. But they do present a problem. They single 
out specific elements of a budget resolution without looking at how one 
goal, such as tax reduction, interacts with another goal, such as 
deficit reduction. In that respect, what my colleagues on the other 
side of the aisle have offered is a resolution that calls for support 
of all of the tax cuts they laid out plus a surplus of $96 billion.
  Could I ask the gentleman from Wisconsin, what does this assume about 
the bottom line before the tax cuts? How big a surplus would you have 
to have in 2012 in order for there to be, after taking these tax cuts, 
a $96 billion remaining surplus?
  Mr. RYAN of Wisconsin. Mr. Speaker, will the gentleman yield?
  Mr. SPRATT. I yield to the gentleman from Wisconsin.
  Mr. RYAN of Wisconsin. This assumes a $96 billion unified budget 
surplus after those tax cuts are extended.
  Mr. SPRATT. How much?
  Mr. RYAN of Wisconsin. A $96 billion cash surplus unified budget 
after the extension of those taxes.
  Mr. SPRATT. So what is the surplus before these tax cuts are taken?
  Mr. RYAN of Wisconsin. I don't know off the top of my head.
  Mr. SPRATT. It would have to be pretty substantial. Isn't the cost of 
these tax cuts in the first year $180 billion or more?
  Mr. RYAN of Wisconsin. The gentleman's budget resolution that passed 
the House had, I think, about a $150 billion cash surplus and raised 
all those taxes; so he had a sizable surplus.
  Mr. SPRATT. It's my understanding, roughly speaking, that the cost of 
these tax cuts, the revenue impact of these tax cuts, in the first year 
was about $180 billion. If you take that kind of charge against the 
surplus and still have a surplus left of $96 billion, then you've got 
about a $276 billion surplus in that year.
  Mr. RYAN of Wisconsin. If the gentleman will yield, not only did the 
Republican budget substitute accommodate for that, it accommodated for 
an extension of all of the tax cuts that expire in 2010 in addition to 
having a surplus equal to or greater than the unified Social Security 
cash surplus. So the Republican budget substitute accommodated all of 
these tax cuts and stopped the raid on Social Security.
  Mr. SPRATT. Is this the CBO number?
  Mr. RYAN of Wisconsin. Yes.
  Mr. SPRATT. CBO's projection.
  Mr. RYAN of Wisconsin. Yes.
  Mr. SPRATT. And what you would then expect is a $276 billion surplus 
before the tax cuts?
  Mr. RYAN of Wisconsin. I can't speak to that number. I don't know 
that number off the top of my head.
  The SPEAKER pro tempore. The time of the gentleman has expired.

[[Page H4586]]

  Mr. SPRATT. Mr. Speaker, I reserve the balance of my time.
  Mr. RYAN of Wisconsin. At this time, Mr. Speaker, I would like to 
yield 2 minutes to the vice ranking member of the Budget Committee, Mr. 
Barrett from South Carolina.
  Mr. BARRETT of South Carolina. I thank the gentleman for yielding.
  Mr. Speaker, I rise in support of the Republican motion to instruct 
conferees on the fiscal year 2008 budget. This budget motion rests on 
one simple premise: to reject the largest tax increase in American 
history contained in the Democrats' House-passed budget.
  By not addressing the Bush tax cuts, the Democratic budget resolution 
calls for a $393 billion tax hike, Mr. Speaker. In my home State of 
South Carolina, approximately 1.5 million people will see an average 
$2,400 increase in their tax bills. In my district alone, about 2,448 
people will be forced to pay higher taxes, and estimates indicate a 
$182 million loss to the local economy, which translates in about 2,200 
jobs being lost.
  Mr. Speaker, the government spends too much money as it is. I can't 
imagine what it would be like with an additional $400 billion of 
spending. We have serious challenges facing this Nation and more money 
is not the solution. Instead of increasing the burden on American 
citizens, we have an obligation to find real workable solutions.
  The Republican motion to instruct calls for a simple up-or-down vote 
on whether Congress should increase taxes on working Americans by $393 
billion, as the House Democrat budget does. It directs conferees to 
commit to two things: Number one, reject the massive tax increase in 
the House budget that increases marginal tax rates, reimposes the 
marriage penalty, reimposes the death tax, cuts the child credit in 
half, and raises a range of other taxes as well.
  And, number two, stop the raid on Social Security cash surpluses. 
Conferees should produce a budget with a surplus sufficient to halt the 
raid on cash surpluses in the Social Security trust funds by fiscal 
year 2012.
  Mr. Speaker, these challenges aren't going to go away, and delaying 
addressing them just makes them worse and burdens future generations. 
The Republican alternative offers solutions, and for this reason I urge 
my colleagues to support the Republican motion to instruct.
  Mr. SPRATT. Mr. Speaker, I yield 3 minutes to the gentleman from New 
Jersey (Mr. Andrews).
  (Mr. ANDREWS asked and was given permission to revise and extend his 
remarks.)
  Mr. ANDREWS. I thank the chairman for yielding.
  Mr. Speaker, it's not surprising to me why there is such 
disorientation from the erstwhile majority about the budget resolution 
that will be going to conference. It's because it contains a principle 
that they don't understand, which is called deficit reduction.
  The erstwhile majority made a living out of borrowing money, spending 
more, taxing less, borrowing more; spending more, taxing less, 
borrowing more. They turned a huge projected budget surplus into an 
immense budget deficit and debt, which will be paid for by the children 
and grandchildren of the Members of this institution.
  Mr. Speaker, here are the facts about the budget resolution the House 
passed: The fact is not one dollar of taxes is raised on anyone in the 
fiscal year covered by the first year of this resolution or the second 
year. Now, we get to a point at the end of 2009 where the tax cuts 
which the erstwhile majority enacted a few years ago expire. They 
passed a law that said that those tax cuts expire. We say let's pause 
at that point and decide what is in the best interest of the country. 
And there are options. Perhaps the surplus will have grown to the point 
where we can finance all of those tax cuts and not increase the 
deficit. Perhaps there will be greater revenues that have been 
projected under our conservative revenue estimates and we will be able 
to afford to extend all the tax cuts. Perhaps we will look at the state 
of the economy at that time and decide that the best thing to do is to 
extend all the tax cuts to try to engender some economic growth. Or 
perhaps we will decide that a rigid discipline that emphasizes deficit 
reduction, as is in this resolution, is the right thing to do.
  The erstwhile majority practiced the principle of leap first and look 
later. This resolution says look before you leap. It says when we reach 
the point where the tax cuts expire, we will make a judgment about 
whether spending cuts, tax cut renewal, or some other strategy is in 
the best interest of the country.
  Not one dollar of taxes is raised in the first fiscal year covered by 
this budget, and nothing in this resolution necessitates the raising of 
any taxes on anyone. It simply says, Mr. Speaker, that Congress should 
do something the erstwhile majority never did: Look before you leap. 
Make decisions based on good economic evidence, not blind faith.
  Mr. RYAN of Wisconsin. Mr. Speaker, at this time I yield myself 30 
seconds.
  I say to my articulate friend from New Jersey, I think what he 
mentioned was a real good highlight on the philosophical differences 
between our two parties. The question is, who is first in line, the 
taxpayer or the government? We believe that the taxpayer ought to be 
first in line by keeping more of their hard-earned money, not the 
government. The State of New Jersey, which is a high tax-paying State, 
on average under these tax increases will pay an average of $3,780 more 
under Democrat-passed budget per taxpayer in the State of New Jersey.
  Mr. Speaker, I would like to yield 2 minutes to the gentleman from 
Florida (Mr. Diaz-Balart).
  Mr. MARIO DIAZ-BALART of Florida. Mr. Speaker, I listened to the 
terms of the gentleman from New Jersey speaking about not leaping 
first. It's kind of a very aesthetic way to say to it. No, what he's 
taking about is leaping on the American taxpayer. That's what the 
Democratic budget does. It does leap on the American taxpayer because 
it does increase $392 billion on the American taxpayer. This budget 
does. And all Americans are going to be paying for this. Middle-income 
families, low-income earners, families with children, and small 
businesses.
  And we have heard again that they don't want to raise taxes in this 
budget. But if that's true, Mr. Speaker, then let's instruct the 
conferees to extend these popular tax provisions, these tax relief 
provisions.
  Unfortunately, at the committee markup, Mr. Speaker, the Republicans 
offered several amendments to do just that, aimed at helping the 
hardworking American taxpayers. Not one single Democrat voted in favor 
of these commonsense tax cut provisions. And what were they, Mr. 
Speaker? Because they always like to say, oh, it's tax cuts for the 
rich. No. Let's talk about what they are, what they voted against in 
committee, without one dissenting vote.
  They voted against extending the $1,000 per child tax credit. Not 
only the wealthy have kids in this country, Mr. Speaker. They voted 
against extending the marriage penalty tax relief. Not only the wealthy 
get married, at least not in the State of Florida that I represent. 
They voted against elimination of the death tax. That's right. They 
want dead people to pay more taxes. And they voted against extending 
the State and local tax deduction.
  How does this affect regular middle-class Americans? Mr. Speaker, a 
middle-income family of four earning $60,000 will look at over a 60 
percent tax increase by the year 2011. One hundred and fifteen million 
taxpayers will see their taxes increase an average of $1,700 by 2011. 
In Florida that I am privileged to represent, over 6.7 million 
taxpayers will see their taxes increase increased by over $3,000.
  Mr. SPRATT. Mr. Speaker, I yield 4 minutes to the gentleman from 
Oregon (Mr. Blumenauer).
  Mr. BLUMENAUER. Mr. Speaker, I appreciate the gentleman's courtesy.
  It is an interesting debate that is going on here today because in 
terms of the motion to instruct, there really isn't that great a 
difference of opinion. We are, in fact, going to be able to meet the 
objectives. We are working hard in our budget to make sure that we deal 
meaningfully with tax relief for those who need it.
  The difference between the Republicans and the Democrats is that they 
are not willing to make any distinction. For them it is Paris Hilton 
who is first in line. We have made it clear that we are going to work 
to make sure that

[[Page H4587]]

real priorities for American families are adopted. We have proven that 
in terms of what we have stood for in the past as well as what we are 
working for in the future.
  Democrats have repeatedly voted for a lowered tax bracket on lower-
income people, the expansion of the earned income tax credit, marriage 
penalty relief, increase in the child tax credit, acceleration of the 
expansion of the 10-percent bracket, increased expensing for small 
businesses. These were things that people here on the floor who are on 
our side of the aisle offered up as a responsible alternative when our 
friends on the other side were engaged in a rather extensive and 
unfocused effort to try to provide tax benefits for those who need them 
the least while ignoring the needs of those who need it the most.
  They have given some modest bones to a few in America. Those that 
merit our support will, in fact, be continued. And, more important, we 
are going to deal with what is the largest tax increase in American 
history, which the Bush administration and my Republican friends on the 
other side of the aisle have set the stage for, and that is the tsunami 
of the alternative minimum tax. That is going to cost $1 trillion over 
the next 10 years, and we have made it clear that that is our number 
one priority to solve, as in the House Committee on Ways and Means we 
working on this.
  We don't have to accede to every single detail for Paris Hilton in 
order to make sure that we deal with the needs of working Americans and 
the tax tsunami of the alternative minimum tax, which has been ignored 
session after session after session by the Republicans when they were 
in charge.
  I find no small amount of irony to hear my good friend from Wisconsin 
talking about how he has proven it is possible to have a unified budget 
surplus when for 12 consecutive years of ironclad Republican control 
they wrote all the fiscal rules, wrote the budgets, wrote the tax 
policy.

                              {time}  1430

  I invite anybody to look at what the now minority proved that they 
could do. It's a pretty sorry record of fiscal irresponsibility.
  Mr. Speaker, my point is simply that the budget resolution that we 
brought forward is a reasonable, meaningful approach to deal with these 
fiscal problems.
  Independent observers agree that there is no tax increase this year 
or the next. And we are on a path allowed for in our budget resolution 
and the work we are doing in the Ways and Means Committee right now to 
make sure that we solve the tax tsunami of the alternative minimum tax.
  I look forward to our getting past this type of discussion here, as 
my friends on the other side of the aisle seek to substitute rhetoric 
for their sorry record of non-accomplishment, and look forward to 
moving forward.
  Mr. RYAN of Wisconsin. Mr. Speaker, at this time I would like to 
yield 3 minutes to a distinguished member of the Budget Committee, Mr. 
Hensarling from Texas.
  Mr. HENSARLING. I thank the gentleman for yielding.
  I have listened very carefully to the previous speaker talk about 
rhetoric. And indeed, the rhetoric I hear from the other side of the 
aisle is pure Orwellian; up is down, black is white, victory is defeat 
and the largest tax increase in American history is somehow actually 
tax relief.
  You cannot state good intentions and then instead act with cruel 
actions. The numbers of this budget lead to the largest single tax 
increase in American history. And Mr. Speaker, let me quote from the 
Washington Post again, not exactly a bastion of conservative thought, I 
will quote from their March 29th edition, ``And while House Democrats 
say they want to preserve key parts of Bush's signature tax cuts, they 
project a surplus in 2012 only by assuming that all these cuts expire 
on schedule in 2010.'' And then they somehow say that we contrive 
temporary tax relief. Well, as the chairman knows, he has had plenty of 
opportunities to make this tax relief permanent, but he and everyone 
else on that side of the aisle have declined that opportunity.
  And again, it's a matter of priorities. Democrat friends decide to 
prioritize the Federal budget over the family budget. But let's look at 
how their single largest tax increase in American history is going to 
impact family budgets. Let's hear from Joan from Mesquite, who wrote, 
``An additional $2,200 raise in taxes for my husband and me would mean 
that we would not be able to meet our budget obligations. I drive an 
11-year-old car. And sometimes it breaks. And it costs me more to fix 
than what it's worth. I was hoping to buy a newer car, but if taxes go 
up, I won't be able to do that.''
  Let's hear from Robert of Garland. ``I'm unemployed on Social 
Security and my wife works. At this point, between taxes and utilities, 
we're at the breaking point of being able to keep our home. If we have 
an increase of over $2,000 per year, it may well mean the straw that 
broke the camel's back; we would lose our home.'' That's how the single 
largest tax increase in American history is affecting that family.
  Let's see how it affects Linda in Rowlett. ``It would mean the 
difference of whether my daughter or husband would be able to purchase 
a car or not. For my husband and I, it helps us continue with his 
radiation treatments for his prostate cancer and allows us to continue 
providing in-home assistance for my elderly parents. Please allow us to 
retain this money for our needs. Please don't let government take 
additional tax dollars from us.''
  That's the cruel actions. It's not the Orwellian rhetoric that we 
want to somehow preserve the tax relief. They are imposing the single 
largest tax increase in American history, a cruel hoax on American 
families as they try to meet their education budgets and their 
transportation budgets.
  Mr. RYAN of Wisconsin. Mr. Speaker, may I inquire how much time is 
remaining on either side.
  The SPEAKER pro tempore. The gentleman from Wisconsin has 17\1/2\ 
minutes, and the gentleman from South Carolina has 19 minutes 
remaining.
  Mr. SPRATT. I yield 3 minutes to the gentleman from Virginia (Mr. 
Scott).
  Mr. SCOTT of Virginia. Mr. Speaker, I thank the gentleman for 
yielding.
  I think it's important to put up a chart so we will know who's saying 
what about fiscal responsibility, because this chart shows what 
happened in the nineties when, with President Clinton's veto vetoing 
Republican bills after the Democrats set the budget off in the right 
direction, we were able to create a surplus that when this 
administration came in in 2001, we had a projected $5.5 trillion 
surplus. As a result of Republican initiatives, that surplus looks like 
it's going to come in, a 10-year surplus, at about a $3 trillion 
deficit, a swing of $8.5 trillion. And to put that in perspective, 
we've spent about $500 billion in Iraq; $8.5 trillion deterioration of 
the budget, $500 billion in Iraq, that is $0.5 trillion; $8.5 trillion 
deterioration, $0.5 trillion attributable to the war. And the 
Democratic budget, again, responsibly digs us out of this mess.
  The important thing to note is, we talk about 9/11. We were broke. We 
spent the surplus, other than Social Security and Medicare, before 9/
11. So you can't blame 9/11 for the fiscal decline that has happened 
here.
  This budget is responsible. It shows how we can dig ourselves out. 
Unfortunately, we have, first of all, no leadership from the White 
House. Even the Republican budget pretty much ignores the President's 
budget. The President's budget had us in a ditch, never coming into 
surplus. At least the Republican budget has us coming out of the 
deficit and into surplus in 2012, but it does it in such a way that is 
not responsible and not predictable.
  The Republicans' budget assumes that we're going to whack about $250 
billion out of Medicare and Medicaid, about $250 billion cut out of 
health care. This is at a time when doctors are telling us now that 
they can't absorb the cuts. We are having situations now when States 
are not paying dentists enough for dentists to even take Medicaid. $250 
billion cut. It's not going to happen. We're not going to go into 
surplus under the Republican budget.
  The main factor that we have to look at is, who's talking? The 
Democrats dug us out of the ditch; Republicans put us back in the 
ditch; and the Democrats are digging us out again with a responsible 
budget. The Republicans have a budget that is so draconian on health 
care that 40 Republicans even voted against the Republican budget.

[[Page H4588]]

  And so we have a responsible plan. Let's stick with the responsible 
plan, dig us out of the mess again, and have fiscal responsibility.
  Mr. RYAN of Wisconsin. At this time, Mr. Speaker, I would like to 
yield 2 minutes to the distinguished gentleman from New Jersey (Mr. 
Garrett).
  Mr. GARRETT of New Jersey. Mr. Speaker, despite the hopes of the 
other side of the aisle, the constituents in my district are pretty 
smart people. When they were paying a little over $2 a gallon for 
gasoline a year or so ago and now they're paying upwards of $3 per 
gallon, they know that's an increase out of their pocket. Likewise, 
when it comes to taxes, when they see that they are paying so much for 
their taxes now on the Federal level now, and after this package goes 
through on the other side of the aisle, they will be paying upwards to 
$3,000 or more. They know, they're smart enough to realize that's a tax 
increase as well.
  My colleagues on the other side of the aisle have to look to outside 
nonpartisan groups they call them, really nonpartisan liberal think 
tanks I think is the best term, for those think tanks to say that these 
are not tax increases when they really are. When your taxes go up from 
this year to the next year to the next year, that is a tax increase.
  They talk about the budget planning process and say, don't worry, it 
only comes at the end of the budget. Well, you know, regular families 
plan during the entire budget. If you have a weekly budget for your 
food allotment, you want to make sure you have food at the end of the 
week. If you're doing a monthly budget, you plan the entire month. If 
you have a yearly budget or a 5-year budget as this is, you do it in 
the entire 5 years. And under the Democrats' budget, your taxes during 
the course of that time will go up. In New Jersey, you're looking at a 
$3,000 or more tax increase.
  When it comes to Social Security, my constituents are also very smart 
and loud when they say, ``Keep your hands off of my Social Security.'' 
The Republican plan does that. The Republican plan stops the raid on 
Social Security, and it does so without a tax increase.
  Now, there is some rumor I am hearing by some Democrats on the other 
side of the aisle that they may support our motion to recommit. But 
mind you, mark my words, if they support this motion to recommit, it 
will be as disingenuous as their support and their comments and other 
things they have done in the past this year. When they said that they 
were going to curtail spending, what did they actually do? They 
increased spending by over 11 percent in this budget. When they said 
they weren't going to raise your taxes, what did they do? They 
increased your taxes by $392 billion. And when they said that they were 
going to solve the AMT problem, what did they do? They did not solve it 
at all.
  Support this motion to recommit.
  Mr. SPRATT. Mr. Speaker, I yield myself 5 minutes.
  Mr. Speaker, in response to the last speaker, if we support this 
resolution, it's because we originally provided in our budget 
resolution, in two different aspects of our budget resolution, our 
full, wholehearted support for these middle-income tax cuts. We still 
have, I will have to confess, concern about your arithmetic here, but 
we supported it in the budget resolution we filed, which passed the 
House. We endorsed and pledged that we would seek to the extension of 
the 10 percent individual tax bracket, the child tax credit, research 
and experimentation tax credit, all of these things. Read the 
resolution. They're there. We were there before you were, saying that, 
over the next 3 or 4 years, we need to see that when December 31, 2010, 
comes along, these tax cuts will survive and be preserved. We are 
committed to that, black and white print, budget resolution.
  Mr. GARRETT of New Jersey. Mr. Speaker, will the gentleman yield?
  Mr. SPRATT. I will yield for one question.
  Mr. GARRETT of New Jersey. Because you referred to my comments.
  When you said that you planned this in the budget, are your comments 
referring to reserve accounts?
  Mr. SPRATT. No. I'm talking about statements in our budget resolution 
which state emphatically and clearly, ``It is the policy of this budget 
resolution to preserve, defend and protect the middle-income tax cuts 
adopted in 2001 and 2003, which will expire in 2010.''
  Now, we do believe, and this also is in our budget resolution, we 
believe in the PAYGO principle. We believe that the Tax Code is full of 
deductions and credits and exemptions and exclusions, and you can go 
through a closet cleaning in the Code and come up with enough offsets 
to provide for the extension of many of these tax cuts, maybe not all 
but many, without any adverse impact on the bottom line budget deficit.
  Mr. GARRETT of New Jersey. If the gentleman will yield.
  Mr. SPRATT. I will yield.
  Mr. GARRETT of New Jersey. I understand what you're saying, the first 
part, that those are the heart-felt policy statements of your budget. 
But are you referring then to the other side of the equation, to the 
reserve accounts that are spoken of in the budget as far as, I will use 
the term, for paying for those?
  Mr. SPRATT. There was a provision that allowed for reserve accounts 
so that we could provide for these tax cuts. But basically we took the 
position that this decision does not have to be made now, and indeed it 
can be better made closer in time to December 31, when we see what is 
the bottom line then. How much debt have we accumulated? What is the 
total deficit? What is the forecast for the future? At that point in 
time, we can consider the tax cuts, extension of them.
  By my understanding, if you extend all of the 2001 and 2003 tax cuts 
that expire on December 31, the cost over 10 years is about $2 
trillion. That's a big decision. We think you should make it 
deliberately and closer in point of time to when these tax cuts 
actually expire.
  Let me say also that not only did we put these tax cuts and state our 
support for them in the budget resolution, but in addition, when the 
tax cuts were passed in 2001, we either had substitutes or occasionally 
voted for independent free-standing provisions like the marriage 
penalty relief. Democrats were there when that passed the House. I 
voted for it the first time it came up and voted for it again 
repeatedly. In our substitutes, we had a 12 percent bracket and then a 
10 percent bracket. We had a child tax credit, which we continually 
increase, and we had the R&E tax credit extension. We had expensing for 
small businesses. Many, if not all, of the things you are talking about 
here we voted for, maybe not on your bills but on our bills because 
these are tax policies favoring middle-income Americans for whom we 
think tax relief is well in order.
  Secondly, we have a problem still with the arithmetic that you've got 
here.

                              {time}  1445

  According to my information, looking at CBO's most recent report, the 
Social Security surplus for 2012 is $255 billion. If you want to stay 
out of Social Security, you have got to have a surplus of at least $255 
billion, a unified surplus of at least $255 billion, am I correct?
  Mr. RYAN of Wisconsin. Mr. Speaker, if the gentleman will yield, the 
$96 billion unified surplus reflects the cash surplus, meaning the 
amount of overpayments on FICA taxes, payroll taxes for Social 
Security, that gets spent on other government programs that ought to go 
to Social Security. The interest on top of that is the number that the 
gentleman from South Carolina is talking about. That reflects past 
borrowing, past raiding of the Social Security surplus. We would like 
to fix that, too.
  We think that is a good start. Let's say from now on if you pay FICA 
taxes to Social Security, let's not spend it on all these other 
government programs. So the cash surplus that occurs in 2012, that is 
what we are talking about with that $96 billion, not the interest on 
top that reflects all of the past borrowing and raiding of the Social 
Security trust fund.
  Mr. SPRATT. Mr. Speaker, reclaiming my time, I understand that. But 
the Social Security surplus is $255 billion.
  Mr. RYAN of Wisconsin. That is the cash surplus, plus interest. We 
are talking about the cash surplus.
  Mr. SPRATT. Mr. Speaker, on the other hand, if you look at the 
surplus you are claiming, $96 billion, and also provide for these tax 
cuts, my information is that these tax cuts have a revenue impact of at 
least $180 billion.

[[Page H4589]]

That would mean in the year 2012 there has to be a bottom line surplus 
of $276 billion before the tax cuts are taken.
  Mr. RYAN of Wisconsin. Mr. Speaker, that is not all in the year 2012, 
I believe. There is a problem with the numbers here.
  Mr. SPRATT. $180 billion I believe is 1 year.
  Mr. RYAN of Wisconsin. We seem to have a difference of opinion. But 
let me make one point: We showed you how to do it.
  Mr. SPRATT. But you haven't shown us the arithmetic. We are not sure 
your arithmetic is correct.
  Mr. RYAN of Wisconsin. We showed you with our budget substitute, we 
do not raise taxes on the American economy and family, and we can also 
stop raiding the cash surplus of Social Security. And the reason I can 
tell you we showed you is that is exactly what the Republican budget 
resolution substitute did, as scored by CBO.
  Mr. SPRATT. Mr. Speaker, I reserve the balance of my time.
  Mr. RYAN of Wisconsin. Mr. Speaker, I yield myself 1\1/2\ minutes to 
make a couple of comments before I yield to the gentleman from Texas.
  Mr. Speaker, I think I made the point on the Social Security cash 
surplus. We are talking about how much overpayments people pay in their 
payroll taxes in any given year. We don't want to keep spending that on 
other government programs. That is point number one.
  Point number two: The very fact that the gentleman from South 
Carolina is suggesting that they are going to accept this motion to 
instruct, that they are going to accept this, means they agree there 
are tax increases in this budget.
  They are saying right now, I just heard him say it, we don't want to 
raise taxes on the middle-class. We don't want to get rid of the child 
tax credit. We don't want to bring back the marriage penalty. We don't 
want to do away with the 10 percent bracket. So we will accept this 
motion to instruct. I.e., the other tax increases in this budget are 
just that, tax increases. Death tax, the marginal income tax rates 
across-the-board, capital gains, dividends.
  Let me just make the point more clearly, by not quoting a think tank 
that may be left of center, right of center, whatever of center. Let me 
quote the Washington Post, clearly no paragon of right-wing thinking.
  The Washington Post, right after the Democrat budget came out: ``And 
while House Democrats say they want to preserve key parts of Bush's 
signature tax cuts, they project a surplus in 2012 only by assuming 
that all of these tax cuts expire on schedule in 2010.''
  They further go on to say about the Democratic budget plan, ``The 
budget plan expresses support for certain cuts, including the extended 
child tax credit, elimination of the marriage penalty, and the 10 
percent bracket, that would require another reserve fund to be filled 
with hundreds of billions of dollars in tax increases to cover the 
cost.''
  Mr. Speaker, I yield 2 minutes to the distinguished member of the 
House Budget Committee, the gentleman from Texas (Mr. Conaway).
  Mr. CONAWAY. I thank the ranking member.
  Mr. Speaker, I think to the other Members in the House listening to 
this debate this sounds like a school yard kind of struggle: Yes, you 
are; no, you're not; yes, you are; no, you're not. We are back and 
forth. We are both using the same set of facts.
  But the truth of the matter is, in 2011 and 2012, however it happens, 
under the current code the revenues of the government will go up $400 
billion. The rhetoric on the other side of the aisle that this does not 
represent a tax increase would have a lot greater credibility with me 
and those on our side of the aisle if in fact our colleagues on the 
Budget Committee hadn't spent that $400 billion.
  The chairman mentioned earlier about waiting until December 31, 2011, 
to fix these things. The problem with that is that at the end of 2010, 
maybe that is the date he was referencing, the estate tax goes from a 
zero tax rate to a 55 percent tax rate.
  I spent a career helping folks comply with a very complex code, and 
estate planning requires generally a lot longer period of time to react 
and put plans in place than from one year to the next. So, to keep 
estates out there hung up with the idea that the tax is going to come 
back fully at 55 percent, I think is unfair.
  The other thing that has to be said is that all of the tax increases 
go in fully. So the 33 percent bracket goes to a 39.6 percent bracket. 
If in fact the Democrats do want to protect the 10 percent bracket from 
going to 15 percent, as they have said, they are going to have to raise 
taxes on the top brackets. They are going to have to raise taxes in 
other places in order to stay within this bill's definition of PAYGO.
  So I am going to speak in favor of the motion to instruct, but just 
for full and fair disclosure, I voted twice, since we did vote on this 
bill twice, against the Democrats' budget.
  Mr. RYAN of Wisconsin. Mr. Speaker, I yield myself 2 minutes.
  One additional point I wanted to make, Mr. Speaker, is the point 
about PAYGO that the gentleman from South Carolina mentioned. As it is 
well known, we have a problem with their version of PAYGO. When PAYGO 
is designed to raise taxes, we don't like it. When PAYGO is designed to 
control spending, we like it. That is why we are for PAYGO on spending, 
not on raising taxes.
  But if this amendment is accepted, if this motion to instruct is 
accepted, let's just be very clear, it does violate their PAYGO. 
Because the Baucus amendment, which is what we are referring to, which 
is the amendment that passed in the Senate, uses their surpluses, 
quote-unquote, to pay for these tax cuts. PAYGO says if you are going 
to reduce taxes, you have to offset them with either a tax increase or 
a spending cut, not with surpluses.
  So this amendment, we believe if you are going to have a surplus, it 
should either go back to the Social Security trust fund and pay down 
debt, or reduce taxes. That is what we are proposing.
  But just so we are very clear with ourselves here, this Baucus 
amendment, this acceptance of this policy of not raising all of these 
taxes, just some of them, which is the best choice we have between the 
two options as the minority, does violate their own PAYGO rule by 
dedicating their surpluses towards this tax relief, rather than having 
offsets, either coming from spending cuts or tax increases.
  Mr. SPRATT. Mr. Speaker, I yield 3 minutes to the gentleman from 
Virginia (Mr. Scott).
  Mr. SCOTT of Virginia. Mr. Speaker, PAYGO is a very simple concept. 
If you are going to increase spending, you pay for it. If you are going 
to cut taxes, you pay for it. You don't go into the ditch. If you have 
a tax cut, you have to pay for it either with increases of other taxes 
or spending cuts to pay for it. If you have spending increases, you 
have to pay for it with cutting spending somewhere else or increasing 
taxes to pay for it. It is a very simple concept.
  Mr. RYAN of Wisconsin. Mr. Speaker, will the gentleman yield?
  Mr. SCOTT of Virginia. I yield to the gentleman from Wisconsin.
  Mr. RYAN of Wisconsin. If you are going to reduce taxes, you have to 
pay for it by either raising taxes or cutting spending. That is what 
your PAYGO is, correct?
  Mr. SCOTT of Virginia. That is correct.
  Mr. RYAN of Wisconsin. Well, you are violating it if you accept this 
amendment then.
  Mr. SCOTT of Virginia. That is the concept, and that is how we got 
out of the ditch that we got into. If you build up a surplus, then you 
have something to spend. That is consistent with PAYGO.
  But the point is that we got out of the ditch with fiscal 
responsibility, and as soon as 2001 came along, you let PAYGO expire, 
passed tax cuts that we couldn't afford and put us right back into the 
ditch. The fact is that the only way the Republican budget makes any 
sense is if you have $250 billion in cuts, mostly in Medicare and 
Medicaid, at a time when we can't even afford the cuts that are already 
in effect.
  To put that $250 billion in context, there are plans out there, 
including the All Healthy Children Act, which can cover all children 
with healthcare for $15 billion a year. You are talking about cutting 
healthcare $250 billion. Obviously, you are not going to do it and so 
obviously the budget is not realistic.

[[Page H4590]]

  But what are your priorities? Tax cuts that we can't afford at a time 
when we need to cover children? We can't even afford the Medicaid 
program we have got now. In most States, you can't find a dentist 
because the reimbursement rates aren't high enough, and here we are 
cutting Medicare and Medicaid $250 billion.
  Mr. Speaker, I would hope that we would adopt the Democratic budget 
and reject the motion to recommit, because it requires us to assume 
$250 billion in cuts that we are not going to make. We have a 
responsible budget. It digs us out of the ditch that the Republicans 
put us in starting in 2001.
  I would hope again we would reject the motion and adopt the 
Democratic budget as we passed it in the House.
  Mr. RYAN of Wisconsin. Mr. Speaker, I yield 2 minutes to the 
gentleman from Texas (Mr. Hensarling).
  Mr. HENSARLING. I thank the gentleman for yielding.
  Mr. Speaker, I listened very carefully to my friend from Virginia. 
The only thing that is being cut here is the family budget, and it is 
being cut by the Democrats. If you look at the numbers of the 
Republican budget, government grows each and every year. Now, it 
doesn't grow as fast as the Democrat budget. And the way the Democrat 
budget grows is by imposing the single largest tax increase in American 
history on hard-working Americans.
  An average in my district, the Fifth Congressional District of Texas, 
an average of $2,700 a year, Mr. Speaker, is going to be imposed on 
those hard-working people as they try to send their children to 
college, as they struggle to try to meet the healthcare payments for 
elderly parents, as they try to make payments on their healthcare 
premiums, as they try to put together that capital to launch their 
American dream and to buy their first home.
  The cutting that is going on here is the cutting out of the heart of 
the family budget by the Democrat budget, imposing the single largest 
tax increase in American history. And as bad as that tax increase is, 
$392 billion over 5 years, it is a pittance compared to the taxes that 
they are going to impose on the next generation, because, Mr. Speaker, 
their budget is silent, absolutely silent, on the number one fiscal 
challenge facing America, out-of-control entitlement spending.
  The Republicans are being responsible in trying to ensure that the 
next generation doesn't see a doubling of their taxes, which we all 
know will happen.
  So this is the kick-the-can-down-the-road budget of the Democrats, 
when they know that our children and grandchildren will see their taxes 
doubled from roughly 20 percent of the economy to 40 percent. Now, how 
many of our children and grandchildren will ever be able to own a home, 
start a business or send their children to college?
  This is the idea of the Democrats' fiscal responsibility, doubling 
taxes on the American people? I want no part of it.
  Mr. SPRATT. Mr. Speaker, Mr. Speaker, I yield 30 seconds to the 
gentleman from Virginia (Mr. Scott).
  Mr. SCOTT of Virginia. Mr. Speaker, I think it is important to note 
that when you talk about average tax cuts, this is an average $250 a 
family tax cut, average $250 for a family of four. But you notice who 
gets it? This is involving personal exemptions and standard deductions.
  If you make a $1 million, $17,000; $650 if you make $200,000 to $1 
million; $11 if you make $100,000 to $200,000; if you make less than 
$100,000, you get on average of zero.
  This is what you call an average $250 a family tax cut.

                              {time}  1500

  Mr. SPRATT. Mr. Speaker, I yield myself 2 minutes.
  I have here a copy of the President's budgetary proposals for fiscal 
year 2008 published by the Congressional Budget Office. If you turn to 
page 6, you will see that the cost of the tax cuts, extending the tax 
cuts, which the motion proposes, the cost or the revenue impact of that 
in the year 2012 is $231 billion. That is what CBO says.
  If you now add $96 billion to that, the surplus that year must be 
$327 billion. The surplus, $327 billion. Last year the deficit was $248 
billion. If we move to a surplus of $327 billion in the year 2012, that 
requires a movement in the right direction of $575 billion which is 
hard to believe.
  Mr. RYAN of Wisconsin. Mr. Speaker, will the gentleman yield?
  Mr. SPRATT. I yield to the gentleman from Wisconsin.
  Mr. RYAN of Wisconsin. I wish we were talking about all of the tax 
cuts. Unfortunately, what we have in the Baucus amendment, that is only 
$132 billion in 2012 because the Baucus amendment only extends some of 
the tax cuts.
  The point we are making is, if we want to stop raising taxes and 
raiding Social Security, we are going to have to control spending. That 
is what we propose to do; and sadly, that is not what the majority 
budget does.
  Mr. SPRATT. The point, I am sure, is you are supportive of all of the 
2001 and 2003 tax cuts. You are limited by procedural rules to only 
dealing with that which is in the scope of the two resolutions. But, in 
fact, I am sure you are supportive of that. If that is true, you have 
to acknowledge that the number is $231 billion. That is the revenue 
impact of extending all of the tax cuts. If you add 96, which is the 
surplus you project, you get a big, big number.
  Mr. Speaker, I reserve the balance of my time.
  Mr. RYAN of Wisconsin. Mr. Speaker, I yield 3 minutes to the 
gentleman from California (Mr. Campbell), a member of the House Budget 
Committee.
  Mr. CAMPBELL of California. Mr. Speaker, I have been listening to all 
of this debate, and I guess what I don't really understand is, why? I 
mean, why the Democrats here on the other side of the aisle want to 
oppose this motion to instruct.
  I mean, do you want to raid the Social Security surplus? Do you like 
telling people that they are paying money for their own Social Security 
and retirement and then taking it and using it for other things? Do you 
like that? Do you want to do that? I mean, do you want to enact the 
biggest tax increase in American history? Do you want really to tax 
people more on capital gains and dividends when over 50 percent of 
Americans now own some sort of stock? Do you want to go back to 
penalizing married couples and having them pay more taxes after they 
get married than two people would when they were single? Do you really 
want to reduce the child care tax credit? Do you want to stifle 
economic growth?
  I know some of you say you don't think that these tax cuts caused 
this economic growth. Let's assume they didn't cause it all. It can't 
be a coincidence that since the tax reductions went into place, we have 
had enormous economic growth, enormous job growth and enormous revenue 
growth to the Federal Government.
  Do you really want to do all that? Do you really want to pass the 
largest tax increase in American history; and for what? So you can 
raise spending a lot over the next 5 years because if you just didn't 
increase spending, you could do all of this. You could allow Americans 
to keep their own money.
  But no, you want to take their money from them and spend it on your 
priorities. Now I guess that is what you want to do. I still don't 
understand it. I don't understand why the government having money is so 
much more a priority, but I guess it is because you look at all money 
as the government's, and you allow people to keep some. We look at 
money as belonging to the people who earned it, and we allow the 
government to take that which is necessary.
  But understand that if all you did was keep spending level or 
increase it a little bit over the next 5 years, then you wouldn't have 
to raise taxes and then you wouldn't have to raid the Social Security 
surplus. But apparently that is what you want to do.
  Mr. SPRATT. Mr. Speaker, I yield myself 3 minutes. Mr. Speaker, this 
goes back to something that our President called fuzzy math. And if I 
seem hung up on the topic of math, it is because arithmetic is 
important when you are putting together a budget.
  What they are telling us is they can run a $96 billion surplus in the 
year 2012 even though they are taking tax cuts that will take $231 
billion in revenues out of the Federal Treasury. It is a stretch, to 
say the least. That involves assuming that we will have a surplus in 
the year 2012 of $327 billion.
  How far from that are we today? Last year we had a deficit of $248 
billion. If

[[Page H4591]]

we are to move to a surplus of $327 billion by the year 2012, there has 
to be a movement in the right direction, a positive movement of $575 
billion. Let's hope it happens, but I wouldn't bet the farm on it.
  They then say and just said we are raiding Social Security. How 
absurd can you get? Here it is right here. The Social Security surplus 
is $255 billion. They do not even claim more than $96 billion on the 
surplus. If they left the tax cut out, they would indeed have enough 
bottom line, 96 plus 231, to cover the surplus, but they haven't done 
that.
  Here on the bottom line, the back of an envelope, is a simple chart 
that I bring down to the well with me every time I talk because we need 
to be reminded. When President Bush came to office, the national debt 
was $5.7 trillion. Six years later, the national debt is $8.8 trillion, 
an increase of $3.1 trillion over the last 6 years. That is a 60 
percent increase in the debt of the United States. We have not seen 
anything like it since the Second World War.
  Are we worried about fuzzy math? You better believe we are because 
this is the consequence of it. What the Republican budget resolution 
would have done had it been adopted is it would have extended again and 
again the policy of borrow and spend, leaving the tab to our children.
  Here is what the tab looked like, in addition to the $8.8 trillion: 
You can cut taxes today, but what you leave in the wake of what you 
have done is a debt tax, the one tax that has to be paid because it is 
the amount of money we have to levy and raise every year to pay 
interest on our national debt, which is obligatory. It cannot be 
avoided. It has to be paid.
  Here is the difference between interest on the national debt, which 
is well over $200 billion, headed to $300 billion within the 
foreseeable future, and look what it does to other priorities, things 
that are pressing and important like veterans health care, homeland 
security, and education. All of those things are dwarfed by the 
increase in interest payments on the debt.
  This is a debt tax we have to pay today. All Americans have to pay 
it. Our children will have to pay it because of our irresponsible 
fiscal policy. This is why we need to clear up this fuzzy math and put 
the country back on a firm path to fiscal responsibility.
  Mr. RYAN of Wisconsin. Mr. Speaker, I yield 2 minutes to the 
gentleman from Nebraska (Mr. Smith).
  Mr. SMITH of Nebraska. Mr. Speaker, I rise today with great concern 
for our economy. I rise because we hear about the debt and certainly my 
concern is that if we are not careful, we will make the debt even worse 
than it is now because an economy can turn south with overtaxation. 
Right now we are headed to tax increases that concern me a great deal.
  In Nebraska, the average tax increase per taxpayer is almost $2,400 a 
year as proposed. More than that though, I am concerned about small 
businesses, farmers and ranchers who face tax increases whether it is 
the estate tax or other taxes.
  When I have a small business person come up to me and say, we need to 
do something about the estate tax, the death tax because it will 
devastate their business, that gets my attention.
  My concerns are that we have available capital in our economy 
because, with available capital, we see good things happening, whether 
it is investing in the stock market or whether it is expanding a small 
business or whether it is putting money away for a child or grandchild 
heading to college. The fact is, available capital does great things, 
and that is why I rise with extreme concern about our budget because 
the budget calls for a tax increase, and that is what concerns me so 
much because tax increases are bad for economic growth. Tax increases 
lead to a downturn in the economy.
  I not only believe we can do better than this proposed budget, but we 
must do better.
  Mr. SPRATT. For the clarification of Members, let me give you my take 
on what is before us right now. This motion to instruct conferees calls 
for us to recede, back off the revenue levels in the House amendment 
and insist on, listen to this, policy statement in section 401 of the 
House amendment. That is our budget resolution, the Democratic budget 
resolution.
  It is the place in our resolution where one time we have insisted, 
pledged our support for the extension of these middle-income tax cuts 
passed in 2001 and 2003. That is paragraph A. It is hard for us to 
disagree with the enforcement of the language that we put in the budget 
resolution in the first place.
  Secondly, paragraph B, insist on the lowest possible levels of 
revenue within the scope of the conference.
  It is hard to tell what that level might be, whether or not it is 
consistent with the one above, but we certainly will give some 
consideration to that.
  And finally, set forth a unified surplus of at least $96 billion in 
fiscal year 2012. I hope we can do it, but you have heard me go through 
the arithmetic out here, and I think it is a reach to even imply that 
these three variables can be integrated and solved in this one multi 
varied equation.
  If you can do it, fine. If you can come out of all this still having 
these tax cuts and still having a $96 billion surplus, great. But I 
have to tell you, I think it is fuzzy math.
  But we are wholeheartedly in support of the middle-income tax cuts 
that are enumerated here. Indeed, they have been lifted straight out of 
the Democratic budget resolution, and that is why we are supportive of 
them.
  Mr. RYAN of Wisconsin. Mr. Speaker, I yield myself the balance of my 
time.
  Mr. Speaker, let me concur that the resolution does say what the 
chairman says it does. The reason it points to the words in the House 
budget resolution, which say that the policy of the House is to keep 
these tax cuts, but we refer to the deeds of the Senate is because the 
House didn't pay for those tax cuts, didn't extend those tax cuts. The 
Senate extended those tax cuts.
  The House used the words that said, we hope, we wish, we would like 
to extend these tax cuts, but they didn't do that. They raised the 
taxes. It is the Senate.
  The mere fact that the Senate passed the Baucus amendment in the 
first place is a repudiation of the claim by the House that they are 
actually not raising taxes.
  The Senate looked at the House budget resolution and said, you know 
what, this thing is the largest tax increase in American history. We 
don't want to raise taxes on middle-income earners, child tax credit, 
marriage penalty, 10 percent bracket; and therefore, they passed the 
Baucus amendment.
  What we are saying is we wish we could extend all of the tax cuts. 
Since the scope is limited, we are saying, let's stick with the Senate 
and actually put numbers where the words are in the House by actually 
lowering the revenue number.
  Now, the chairman is right. He is saying it is a reach to reach these 
surpluses. It is too tough to do it to reach these surpluses if you 
accept his premise. And the premise of the chairman's budget is do 
nothing to control spending.
  Mr. Speaker, we don't have a revenue problem in Washington. Just the 
last 7 months alone we had 11 percent revenue growth. That is 3 
straight years of double-digit revenue growth at these lower tax rates. 
We have plenty of money coming in from taxpayers. The problem is we are 
spending it too fast. That is the problem in Washington, not a revenue 
problem, a spending problem.
  If you accept the premise of the chairman, the esteemed gentleman 
from South Carolina (Mr. Spratt), that there is no spending problem in 
Washington, which I don't accept, then he is correct, you can't balance 
the budget. You can't stopped the raid on Social Security and you can't 
extend tax relief.

                              {time}  1515

  We disagree. How tough is it to do it? Let me tell you what our 
budget accomplished, the Republican substitute. We simply said in order 
to stop the raid of the Social Security surplus and make all these tax 
cuts permanent, spend $14.977 trillion over the next 7 years instead of 
the current projection, $15.286 trillion. That is what we are saying. 
We are saying instead of spending over the next 5 years $15.286 
trillion, spend $14.977 trillion. Instead of growing mandatory spending 
by 5.2 percent, grow it at 4.3 percent.
  Is this Draconian, is this crazy, is this hard core? No. It's what 
families do around a kitchen table every day.

[[Page H4592]]

We are simply saying put taxpayers first. Don't make people wait for 3 
years to see if they're going to have their per-child tax credit, if 
they're going to have the marriage penalty, if the estate taxes are 
going to be higher, lower or somewhere in between. Tell them now. Let's 
tell taxpayers, first you get to keep your money; then we're going to 
tighten our belt here in Washington by controlling spending.
  Mr. Speaker, the taxpayers deserve this respect. They don't deserve 
to be jerked around. We should control spending, and by golly, we need 
to prepare for the retirement of these baby boomers. We need to reform 
these entitlement programs so we can extend their solvency, extend 
their reliability, and that is the biggest shame of all.
  Not only does this budget have the largest tax increase in American 
history; it proposes that we do nothing for the next 5 years to control 
and reform entitlements to do anything to control spending. That's a 
shame. That's why we should pass this motion to instruct.
  Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Pomeroy). All time has expired.
  Without objection, the previous question is ordered on the motion to 
instruct.
  There was no objection.
  The SPEAKER pro tempore. The question is on the motion to instruct 
offered by the gentleman from Wisconsin (Mr. Ryan).
  The question was taken; and the Speaker pro tempore announced that 
the ayes appeared to have it.
  Mr. RYAN of Wisconsin. Mr. Speaker, on that I demand the yeas and 
nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further 
proceedings on this question are postponed.

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