[Congressional Record (Bound Edition), Volume 147 (2001), Part 5]
[House]
[Pages 7364-7411]
[From the U.S. Government Publishing Office, www.gpo.gov]



  CONFERENCE REPORT ON H. CON. RES. 83, CONCURRENT RESOLUTION ON THE 
                      BUDGET FOR FISCAL YEAR 2002

  Mr. NUSSLE submitted the following conference report and statement on 
the concurrent resolution (H. Con. Res. 83) establishing the 
congressional budget for the United States Government for fiscal year 
2002, revising the congressional budget for the United States 
Government for fiscal year 2001, and setting forth appropriate 
budgetary levels for each of fiscal years 2003 through 2011:

                  Conference Report (H. Rept. 107-60)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the Senate to the concurrent 
     resolution (H. Con. Res. 83), establishing the congressional 
     budget for the United States Government for fiscal year 2002, 
     revising the congressional budget for the United States 
     Government for fiscal year 2001, and setting forth 
     appropriate budgetary levels for each of fiscal years 2003 
     through 2011, having met, after full and free conference, 
     have agreed to recommend and do recommend to their respective 
     Houses as follows:
       That the House recede from its disagreement to the 
     amendment of the Senate and agree to the same with an 
     amendment as follows:
       In lieu of the matter proposed to be inserted by the Senate 
     amendment, insert the following:

     SECTION 1. CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL 
                   YEAR 2002.

       (a) Declaration.--Congress determines and declares that the 
     concurrent resolution on the budget for fiscal year 2001 is 
     revised and replaced and that this resolution is the 
     concurrent resolution on the budget for fiscal year 2002 
     including the appropriate budgetary levels for fiscal years 
     2003 through 2011 as authorized by section 301 of the 
     Congressional Budget Act of 1974 (2 U.S.C. 632).
       (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 2002.

                TITLE I--RECOMMENDED LEVELS AND AMOUNTS

Sec. 101. Recommended levels and amounts.
Sec. 102. Major functional categories.
Sec. 103. Reconciliation in the Senate.
Sec. 104. Reconciliation in the House.

              TITLE II--BUDGET ENFORCEMENT AND RULEMAKING

                     Subtitle A--Budget Enforcement

Sec. 201. Restrictions on advance appropriations in the House.
Sec. 202. Restrictions on advance appropriations in the Senate.
Sec. 203. Mechanism for implementing increase of fiscal year 2002 
              discretionary spending limits.
Sec. 204. Compliance with section 13301 of the Budget Enforcement Act 
              of 1990. 

                       Subtitle B--Reserve Funds

Sec. 211. Reserve fund for Medicare.
Sec. 212. Reserve fund for Family Opportunity Act.
Sec. 213. Reserve fund for agriculture.
Sec. 214. Reserve fund for additional tax cuts and debt reduction.
Sec. 215. Technical reserve fund for student loans.
Sec. 216. Reserve fund for health insurance for the uninsured.
Sec. 217. Reserve fund for defense in the Senate.
Sec. 218. Strategic reserve fund in the House.

                  Subtitle C--Miscellaneous Provisions

Sec. 221. Application and effect of changes in allocations and 
              aggregates.
Sec. 222. Exercise of rulemaking powers.

         TITLE III--SENSE OF THE SENATE AND CONGRESS PROVISIONS

                    Subtitle A--Sense of the Senate

Sec. 301. Sense of the Senate on conservation.

[[Page 7365]]

Sec. 302. Sense of the Senate on AIDS and other infectious diseases.
Sec. 303. Sense of the Senate on consolidated health centers.
Sec. 304. Funding for Department of Justice programs for State and 
              local law enforcement assistance.
Sec. 305. Sense of the Senate regarding United States Coast Guard 
              fiscal year 2002 funding.
Sec. 306. Strengthening our national food safety infrastructure.
Sec. 307. Sense of the Senate with respect to increasing funds for 
              renewable energy research and development. 
Sec. 308. Sense of the Senate with respect to increased education 
              funding.

                   Subtitle B--Sense of the Congress

Sec. 311. Asset building for the working poor.
Sec. 312. Federal fire prevention assistance.
Sec. 313. Funding for graduate medical education at children's teaching 
              hospitals. 
Sec. 314. Concurrent retirement and disability benefits to retired 
              members of the Armed Forces.
Sec. 315. Federal employee pay. 
Sec. 316. Sales tax deduction. 
                TITLE I--RECOMMENDED LEVELS AND AMOUNTS

     SEC. 101. RECOMMENDED LEVELS AND AMOUNTS.

       The following budgetary levels are appropriate for the 
     fiscal years 2001 through 2011:
       (1) Federal revenues.--For purposes of the enforcement of 
     this resolution--
       (A) The recommended levels of Federal revenues are as 
     follows:
       Fiscal year 2001: $1,630,462,000,000.
       Fiscal year 2002: $1,638,202,000,000.
       Fiscal year 2003: $1,706,044,000,000.
       Fiscal year 2004: $1,780,310,000,000.
       Fiscal year 2005: $1,852,646,000,000.
       Fiscal year 2006: $1,901,304,000,000.
       Fiscal year 2007: $1,994,674,000,000.
       Fiscal year 2008: $2,089,726,000,000.
       Fiscal year 2009: $2,193,954,000,000.
       Fiscal year 2010: $2,318,055,000,000.
       Fiscal year 2011: $2,436,550,000,000.
       (B) The amounts by which the aggregate levels of Federal 
     revenues should be changed are as follows:
       Fiscal year 2001: $0.
       Fiscal year 2002: -$65,286,000,000.
       Fiscal year 2003: -$76,067,000,000.
       Fiscal year 2004: -$84,025,000,000.
       Fiscal year 2005: -$97,124,000,000.
       Fiscal year 2006: -$138,279,000,000.
       Fiscal year 2007: -$141,081,000,000.
       Fiscal year 2008: -$153,084,000,000.
       Fiscal year 2009: -$166,162,000,000.
       Fiscal year 2010: -$171,247,000,000.
       Fiscal year 2011: -$191,343,000,000.
       (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 2001: $1,653,681,000,000.
       Fiscal year 2002: $1,510,948,000,000.
       Fiscal year 2003: $1,668,530,000,000.
       Fiscal year 2004: $1,733,617,000,000.
       Fiscal year 2005: $1,814,079,000,000.
       Fiscal year 2006: $1,866,139,000,000.
       Fiscal year 2007: $1,945,112,000,000.
       Fiscal year 2008: $2,025,075,000,000.
       Fiscal year 2009: $2,102,398,000,000.
       Fiscal year 2010: $2,186,341,000,000.
       Fiscal year 2011: $2,277,143,000,000.
       (3) Budget outlays.--For purposes of the enforcement of 
     this resolution, the appropriate levels of total budget 
     outlays are as follows:
       Fiscal year 2001: $1,600,529,000,000.
       Fiscal year 2002: $1,476,841,000,000.
       Fiscal year 2003: $1,641,515,000,000.
       Fiscal year 2004: $1,709,251,000,000.
       Fiscal year 2005: $1,790,389,000,000.
       Fiscal year 2006: $1,837,846,000,000.
       Fiscal year 2007: $1,912,602,000,000.
       Fiscal year 2008: $1,994,838,000,000.
       Fiscal year 2009: $2,071,497,000,000.
       Fiscal year 2010: $2,154,203,000,000.
       Fiscal year 2011: $2,243,394,000,000.
       (4) Surpluses.--For purposes of the enforcement of this 
     resolution, the amounts of the surpluses are as follows:
       Fiscal year 2001: $29,933,000,000.
       Fiscal year 2002: $161,361,000,000.
       Fiscal year 2003: $64,529,000,000.
       Fiscal year 2004: $71,059,000,000.
       Fiscal year 2005: $62,257,000,000.
       Fiscal year 2006: $63,458,000,000.
       Fiscal year 2007: $82,072,000,000.
       Fiscal year 2008: $94,888,000,000.
       Fiscal year 2009: $122,457,000,000.
       Fiscal year 2010: $163,852,000,000.
       Fiscal year 2011: $193,156,000,000.
       (5) Public debt.--The appropriate levels of the public debt 
     are as follows:
       Fiscal year 2001: $5,660,699,000,000.
       Fiscal year 2002: $5,603,812,000,000.
       Fiscal year 2003: $5,654,952,000,000.
       Fiscal year 2004: $5,700,089,000,000.
       Fiscal year 2005: $5,751,561,000,000.
       Fiscal year 2006: $5,803,295,000,000.
       Fiscal year 2007: $5,832,676,000,000.
       Fiscal year 2008: $5,847,714,000,000.
       Fiscal year 2009: $5,988,315,000,000.
       Fiscal year 2010: $6,343,661,000,000.
       Fiscal year 2011: $6,720,963,000,000.
       (6) Debt held by the public.--The appropriate levels of the 
     debt held by the public are as follows:
       Fiscal year 2001: $3,243,211,000,000.
       Fiscal year 2002: $2,924,234,000,000.
       Fiscal year 2003: $2,691,176,000,000.
       Fiscal year 2004: $2,437,771,000,000.
       Fiscal year 2005: $2,170,550,000,000.
       Fiscal year 2006: $1,882,764,000,000.
       Fiscal year 2007: $1,555,637,000,000.
       Fiscal year 2008: $1,194,633,000,000.
       Fiscal year 2009: $939,000,000,000.
       Fiscal year 2010: $878,000,000,000.
       Fiscal year 2011: $818,000,000,000.
       (7) Social security.--
       (A) Social security revenues.--For purposes of Senate 
     enforcement under section 311 of the Congressional Budget Act 
     of 1974 (2 U.S.C. 642), 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 2001: $504,109,000,000.
       Fiscal year 2002: $532,308,000,000.
       Fiscal year 2003: $560,938,000,000.
       Fiscal year 2004: $588,674,000,000.
       Fiscal year 2005: $620,060,000,000.
       Fiscal year 2006: $649,221,000,000.
       Fiscal year 2007: $679,935,000,000.
       Fiscal year 2008: $712,454,000,000.
       Fiscal year 2009: $746,439,000,000.
       Fiscal year 2010: $782,029,000,000.
       Fiscal year 2011: $819,185,000,000.
       (B) Social security outlays.--For purposes of Senate 
     enforcement under section 311 of the Congressional Budget Act 
     of 1974 (2 U.S.C. 642), 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 2001: $343,562,000,000.
       Fiscal year 2002: $356,646,000,000.
       Fiscal year 2003: $369,521,000,000.
       Fiscal year 2004: $382,488,000,000.
       Fiscal year 2005: $394,844,000,000.
       Fiscal year 2006: $407,020,000,000.
       Fiscal year 2007: $419,285,000,000.
       Fiscal year 2008: $432,293,000,000.
       Fiscal year 2009: $448,317,000,000.
       Fiscal year 2010: $465,780,000,000.
       Fiscal year 2011: $483,963,000,000.
       (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 2001:

       (A) New budget authority, $3,431,000,000.
       (B) Outlays, $3,371,000,000.

       Fiscal year 2002:

       (A) New budget authority, $3,579,000,000.
       (B) Outlays, $3,525,000,000.

       Fiscal year 2003:

       (A) New budget authority, $3,695,000,000.
       (B) Outlays, $3,655,000,000.

       Fiscal year 2004:

       (A) New budget authority, $3,819,000,000.
       (B) Outlays, $3,763,000,000.

       Fiscal year 2005:

       (A) New budget authority, $3,939,000,000.
       (B) Outlays, $3,881,000,000.

       Fiscal year 2006:

       (A) New budget authority, $4,064,000,000.
       (B) Outlays, $4,004,000,000.

       Fiscal year 2007:

       (A) New budget authority, $4,194,000,000.
       (B) Outlays, $4,132,000,000.

       Fiscal year 2008:

       (A) New budget authority, $4,331,000,000.
       (B) Outlays, $4,267,000,000.

       Fiscal year 2009:

       (A) New budget authority, $4,471,000,000.
       (B) Outlays, $4,405,000,000.

       Fiscal year 2010:

       (A) New budget authority, $4,619,000,000.
       (B) Outlays, $4,551,000,000.

       Fiscal year 2011:

       (A) New budget authority, $4,773,000,000.
       (B) Outlays, $4,702,000,000.

     SEC. 102. MAJOR FUNCTIONAL CATEGORIES.

       Congress determines and declares that the appropriate 
     levels of new budget authority, budget outlays, new direct 
     loan obligations, and new primary loan guarantee commitments 
     for fiscal years 2002 through 2011 for each major functional 
     category are:
       (1) National Defense (050):
       Fiscal year 2001:
       (A) New budget authority, $316,873,000,000.
       (B) Outlays, $302,371,000,000.
       Fiscal year 2002:
       (A) New budget authority, $324,832,000,000.
       (B) Outlays, $319,137,000,000.
       Fiscal year 2003:
       (A) New budget authority, $333,646,000,000.
       (B) Outlays, $326,643,000,000.
       Fiscal year 2004:
       (A) New budget authority, $342,294,000,000.
       (B) Outlays, $335,184,000,000.
       Fiscal year 2005:
       (A) New budget authority, $350,876,000,000.
       (B) Outlays, $347,073,000,000.
       Fiscal year 2006:
       (A) New budget authority, $359,807,000,000.
       (B) Outlays, $353,482,000,000.
       Fiscal year 2007:
       (A) New budget authority, $369,023,000,000.
       (B) Outlays, $359,774,000,000.
       Fiscal year 2008:
       (A) New budget authority, $378,505,000,000.
       (B) Outlays, $372,416,000,000.
       Fiscal year 2009:
       (A) New budget authority, $388,323,000,000.
       (B) Outlays, $382,242,000,000.
       Fiscal year 2010:
       (A) New budget authority, $398,338,000,000.
       (B) Outlays, $392,227,000,000.
       Fiscal year 2011:
       (A) New budget authority, $408,821,000,000.
       (B) Outlays, $402,579,000,000.
       (2) International Affairs (150):

[[Page 7366]]

       Fiscal year 2001:
       (A) New budget authority, $22,424,000,000.
       (B) Outlays, $19,670,000,000.
       Fiscal year 2002:
       (A) New budget authority, $23,214,000,000.




       (B) Outlays, $19,082,000,000.
       Fiscal year 2003:
       (A) New budget authority, $23,750,000,000.
       (B) Outlays, $19,554,000,000.
       Fiscal year 2004:
       (A) New budget authority, $24,214,000,000.
       (B) Outlays, $20,164,000,000.
       Fiscal year 2005:
       (A) New budget authority, $24,911,000,000.
       (B) Outlays, $20,431,000,000.
       Fiscal year 2006:
       (A) New budget authority, $25,504,000,000.
       (B) Outlays, $20,900,000,000.
       Fiscal year 2007:
       (A) New budget authority, $26,107,000,000.
       (B) Outlays, $21,494,000,000.
       Fiscal year 2008:
       (A) New budget authority, $26,482,000,000.
       (B) Outlays, $22,031,000,000.
       Fiscal year 2009:
       (A) New budget authority, $26,937,000,000.
       (B) Outlays, $22,650,000,000.
       Fiscal year 2010:
       (A) New budget authority, $27,458,000,000.
       (B) Outlays, $23,235,000,000.
       Fiscal year 2011:
       (A) New budget authority, $28,065,000,000.
       (B) Outlays, $23,766,000,000.
       (3) General Science, Space, and Technology (250):
       Fiscal year 2001:
       (A) New budget authority, $21,043,000,000.
       (B) Outlays, $19,612,000,000.
       Fiscal year 2002:
       (A) New budget authority, $21,583,000,000.
       (B) Outlays, $20,725,000,000.
       Fiscal year 2003:
       (A) New budget authority, $22,055,000,000.
       (B) Outlays, $21,361,000,000.
       Fiscal year 2004:
       (A) New budget authority, $22,379,000,000.
       (B) Outlays, $21,945,000,000.
       Fiscal year 2005:
       (A) New budget authority, $22,839,000,000.
       (B) Outlays, $22,429,000,000.
       Fiscal year 2006:
       (A) New budget authority, $23,323,000,000.
       (B) Outlays, $22,847,000,000.
       Fiscal year 2007:
       (A) New budget authority, $23,812,000,000.
       (B) Outlays, $23,280,000,000.
       Fiscal year 2008:
       (A) New budget authority, $24,303,000,000.
       (B) Outlays, $23,743,000,000.
       Fiscal year 2009:
       (A) New budget authority, $24,816,000,000.
       (B) Outlays, $24,239,000,000.
       Fiscal year 2010:
       (A) New budget authority, $25,335,000,000.
       (B) Outlays, $24,749,000,000.
       Fiscal year 2011:
       (A) New budget authority, $25,879,000,000
       (B) Outlays, $25,274,000,000.
       (4) Energy (270):
       Fiscal year 2001:
       (A) New budget authority, $1,225,000,000.
       (B) Outlays, -$115,000,000.
       Fiscal year 2002:
       (A) New budget authority, $1,360,000,000.
       (B) Outlays, -$19,000,000.
       Fiscal year 2003:
       (A) New budget authority, $1,328,000,000.
       (B) Outlays, -$72,000,000.
       Fiscal year 2004:
       (A) New budget authority, $1,309,000,000.
       (B) Outlays, -$120,000,000.
       Fiscal year 2005:
       (A) New budget authority, $1,254,000,000.
       (B) Outlays, -$91,000,000.
       Fiscal year 2006:
       (A) New budget authority, $1,336,000,000.
       (B) Outlays, -$3,000,000.
       Fiscal year 2007:
       (A) New budget authority, $1,411,000,000.
       (B) Outlays, $71,000,000.
       Fiscal year 2008:
       (A) New budget authority, $1,882,000,000.
       (B) Outlays, $440,000,000.
       Fiscal year 2009:
       (A) New budget authority, $1,998,000,000.
       (B) Outlays, $579,000,000.
       Fiscal year 2010:
       (A) New budget authority, $2,021,000,000.
       (B) Outlays, $703,000,000.
       Fiscal year 2011:
       (A) New budget authority, $1,990,000,000.
       (B) Outlays, $691,000,000.
       (5) Natural Resources and Environment (300):
       Fiscal year 2001:
       (A) New budget authority, $28,833,000,000.
       (B) Outlays, $26,361,000,000.
       Fiscal year 2002:
       (A) New budget authority, $30,381,000,000.
       (B) Outlays, $28,652,000,000.
       Fiscal year 2003:
       (A) New budget authority, $31,263,000,000.
       (B) Outlays, $30,368,000,000.
       Fiscal year 2004:
       (A) New budget authority, $32,249,000,000.
       (B) Outlays, $31,506,000,000.
       Fiscal year 2005:
       (A) New budget authority, $33,091,000,000.
       (B) Outlays, $32,365,000,000.
       Fiscal year 2006:
       (A) New budget authority, $33,965,000,000.
       (B) Outlays, $33,281,000,000.
       Fiscal year 2007:
       (A) New budget authority, $34,767,000,000.
       (B) Outlays, $34,126,000,000.
       Fiscal year 2008:
       (A) New budget authority, $35,691,000,000.
       (B) Outlays, $34,903,000,000.
       Fiscal year 2009:
       (A) New budget authority, $37,064,000,000.
       (B) Outlays, $36,194,000,000.
       Fiscal year 2010:
       (A) New budget authority, $38,111,000,000.
       (B) Outlays, $37,190,000,000.
       Fiscal year 2011:
       (A) New budget authority, $39,137,000,000.
       (B) Outlays, $38,190,000,000.
       (6) Agriculture (350):
       Fiscal year 2001:
       (A) New budget authority, $31,790,000,000.
       (B) Outlays, $29,154,000,000.
       Fiscal year 2002:
       (A) New budget authority, $26,265,000,000.
       (B) Outlays, $24,593,000,000.
       Fiscal year 2003:
       (A) New budget authority, $26,507,000,000.
       (B) Outlays, $24,924,000,000.
       Fiscal year 2004:
       (A) New budget authority, $26,562,000,000.
       (B) Outlays, $25,120,000,000.
       Fiscal year 2005:
       (A) New budget authority, $26,406,000,000.
       (B) Outlays, $24,915,000,000.
       Fiscal year 2006:
       (A) New budget authority, $25,452,000,000.
       (B) Outlays, $23,853,000,000.
       Fiscal year 2007:
       (A) New budget authority, $24,083,000,000.
       (B) Outlays, $22,509,000,000.
       Fiscal year 2008:
       (A) New budget authority, $22,723,000,000.
       (B) Outlays, $21,134,000,000.
       Fiscal year 2009:
       (A) New budget authority, $21,921,000,000.
       (B) Outlays, $20,441,000,000.
       Fiscal year 2010:
       (A) New budget authority, $21,553,000,000.
       (B) Outlays, $20,174,000,000.
       Fiscal year 2011:
       (A) New budget authority, $21,703,000,000.
       (B) Outlays, $20,319,000,000.
       (7) Commerce and Housing Credit (370):
       Fiscal year 2001:
       (A) New budget authority, $2,516,000,000.
       (B) Outlays, -$771,000,000.
       Fiscal year 2002:
       (A) New budget authority, $10,174,000,000.
       (B) Outlays, $6,587,000,000.
       Fiscal year 2003:
       (A) New budget authority, $11,394,000,000.
       (B) Outlays, $5,952,000,000.
       Fiscal year 2004:
       (A) New budget authority, $16,042,000,000.
       (B) Outlays, $11,733,000,000.
       Fiscal year 2005:
       (A) New budget authority, $16,163,000,000.
       (B) Outlays, $12,387,000,000.
       Fiscal year 2006:
       (A) New budget authority, $16,138,000,000.
       (B) Outlays, $11,790,000,000.
       Fiscal year 2007:
       (A) New budget authority, $16,245,000,000.
       (B) Outlays, $12,061,000,000.
       Fiscal year 2008:
       (A) New budget authority, $16,404,000,000.
       (B) Outlays, $11,894,000,000.
       Fiscal year 2009:
       (A) New budget authority, $16,479,000,000.
       (B) Outlays, $11,934,000,000.
       Fiscal year 2010:
       (A) New budget authority, $16,597,000,000.
       (B) Outlays, $11,889,000,000.
       Fiscal year 2011:
       (A) New budget authority, $16,714,000,000.
       (B) Outlays, $11,915,000,000.
       (8) Transportation (400):
       Fiscal year 2001:
       (A) New budget authority, $62,130,000,000.
       (B) Outlays, $51,681,000,000.
       Fiscal year 2002:
       (A) New budget authority, $64,965,000,000.
       (B) Outlays, $56,167,000,000.
       Fiscal year 2003:
       (A) New budget authority, $62,392,000,000.
       (B) Outlays, $60,521,000,000.
       Fiscal year 2004:
       (A) New budget authority, $64,154,000,000.
       (B) Outlays, $62,662,000,000.
       Fiscal year 2005:
       (A) New budget authority, $65,907,000,000.
       (B) Outlays, $64,225,000,000.
       Fiscal year 2006:
       (A) New budget authority, $67,794,000,000.
       (B) Outlays, $65,702,000,000.
       Fiscal year 2007:
       (A) New budget authority, $69,637,000,000.
       (B) Outlays, $66,577,000,000.
       Fiscal year 2008:
       (A) New budget authority, $71,490,000,000.
       (B) Outlays, $67,775,000,000.
       Fiscal year 2009:
       (A) New budget authority, $73,377,000,000.
       (B) Outlays, $69,221,000,000.
       Fiscal year 2010:
       (A) New budget authority, $76,412,000,000.
       (B) Outlays, $70,588,000,000.
       Fiscal year 2011:
       (A) New budget authority, $78,652,000,000.
       (B) Outlays, $72,183,000,000.
       (9) Community and Regional Development (450):
       Fiscal year 2001:
       (A) New budget authority, $11,225,000,000.
       (B) Outlays, $11,366,000,000.
       Fiscal year 2002:
       (A) New budget authority, $11,892,000,000.
       (B) Outlays, $11,730,000,000.
       Fiscal year 2003:
       (A) New budget authority, $12,067,000,000.
       (B) Outlays, $11,731,000,000.
       Fiscal year 2004:
       (A) New budget authority, $12,350,000,000.
       (B) Outlays, $11,967,000,000.

[[Page 7367]]

       Fiscal year 2005:
       (A) New budget authority, $12,664,000,000.
       (B) Outlays, $11,913,000,000.
       Fiscal year 2006:
       (A) New budget authority, $12,933,000,000.
       (B) Outlays, $11,936,000,000.
       Fiscal year 2007:
       (A) New budget authority, $13,198,000,000.
       (B) Outlays, $12,181,000,000.
       Fiscal year 2008:
       (A) New budget authority, $13,476,000,000.
       (B) Outlays, $12,444,000,000.
       Fiscal year 2009:
       (A) New budget authority, $13,759,000,000.
       (B) Outlays, $12,696,000,000.
       Fiscal year 2010:
       (A) New budget authority, $14,048,000,000.
       (B) Outlays, $12,962,000,000.
       Fiscal year 2011:
       (A) New budget authority, $14,340,000,000.
       (B) Outlays, $13,233,000,000.
       (10) Education, Training, Employment, and Social Services 
     (500):
       Fiscal year 2001:
       (A) New budget authority, $76,951,000,000.
       (B) Outlays, $69,850,000,000.
       Fiscal year 2002:
       (A) New budget authority, $81,234,000,000.
       (B) Outlays, $76,742,000,000.
       Fiscal year 2003:
       (A) New budget authority, $82,805,000,000.
       (B) Outlays, $81,479,000,000.
       Fiscal year 2004:
       (A) New budget authority, $84,386,000,000.
       (B) Outlays, $83,574,000,000.
       Fiscal year 2005:
       (A) New budget authority, $87,122,000.000.
       (B) Outlays, $85,819,000,000.
       Fiscal year 2006:
       (A) New budget authority, $89,233,000,000.
       (B) Outlays, $87,924,000,000.
       Fiscal year 2007:
       (A) New budget authority, $91,327,000,000.
       (B) Outlays, $89,955,000,000.
       Fiscal year 2008:
       (A) New budget authority, $93,501,000,000.
       (B) Outlays, $92,115,000,000.
       Fiscal year 2009:
       (A) New budget authority, $95,780,000,000.
       (B) Outlays, $94,341,000,000.
       Fiscal year 2010:
       (A) New budget authority, $98,113,000,000.
       (B) Outlays, $96,654,000,000.
       Fiscal year 2011:
       (A) New budget authority, $100,517,000,000.
       (B) Outlays, $99,017,000,000.
       (11) Health (550):
       Fiscal year 2001:
       (A) New budget authority, $180,104,000,000.
       (B) Outlays, $173,012,000,000.
       Fiscal year 2002:
       (A) New budget authority, $198,775,000,000.
       (B) Outlays, $196,668,000,000.
       Fiscal year 2003:
       (A) New budget authority, $221,150,000,000.
       (B) Outlays, $219,770,000,000.
       Fiscal year 2004:
       (A) New budget authority, $235,474,000,000.
       (B) Outlays, $234,672,000,000.
       Fiscal year 2005:
       (A) New budget authority, $242,661,000,000.
       (B) Outlays, $241,084,000,000.
       Fiscal year 2006:
       (A) New budget authority, $259,125,000,000.
       (B) Outlays, $257,594,000,000.
       Fiscal year 2007:
       (A) New budget authority, $278,882,000,000.
       (B) Outlays, $276,575,000,000.
       Fiscal year 2008:
       (A) New budget authority, $299,116,000,000.
       (B) Outlays, $297,091,000,000.
       Fiscal year 2009:
       (A) New budget authority, $320,791,000,000.
       (B) Outlays, $319,017,000,000.
       Fiscal year 2010:
       (A) New budget authority, $345,380,000,000.
       (B) Outlays, $343,729,000,000.
       Fiscal year 2011:
       (A) New budget authority, $372,407,000,000.
       (B) Outlays, $370,945,000,000.
       (12) Medicare (570):
       Fiscal year 2001:
       (A) New budget authority, $217,531,000,000.
       (B) Outlays, $217,708,000,000.
       Fiscal year 2002:
       (A) New budget authority, $229,179,000,000.
       (B) Outlays, $229,121,000,000.
       Fiscal year 2003:
       (A) New budget authority, $244,838,000,000.
       (B) Outlays, $244,596,000,000.
       Fiscal year 2004:
       (A) New budget authority, $271,378,000,000.
       (B) Outlays, $271,579,000,000.
       Fiscal year 2005:
       (A) New budget authority, $306,158,000,000.
       (B) Outlays, $306,079,000,000.
       Fiscal year 2006:
       (A) New budget authority, $326,564,000,000.
       (B) Outlays, $326,298,000,000.
       Fiscal year 2007:
       (A) New budget authority, $363,686,000,000.
       (B) Outlays, $363,901,000,000.
       Fiscal year 2008:
       (A) New budget authority, $393,686,000,000.
       (B) Outlays, $393,578,000,000.
       Fiscal year 2009:
       (A) New budget authority, $424,278,000,000.
       (B) Outlays, $423,993,000,000.
       Fiscal year 2010:
       (A) New budget authority, $458,957,000,000.
       (B) Outlays, $459,194,000,000.
       Fiscal year 2011:
       (A) New budget authority, $497,379,000,000.
       (B) Outlays, $497,366,000,000.
       (13) Income Security (600):
       Fiscal year 2001:
       (A) New budget authority, $255,942,000,000.
       (B) Outlays, $256,932,000,000.
       Fiscal year 2002:
       (A) New budget authority, $273,840,000,000.
       (B) Outlays, $272,122,000,000.
       Fiscal year 2003:
       (A) New budget authority, $283,864,000,000.
       (B) Outlays, $282,611,000,000.
       Fiscal year 2004:
       (A) New budget authority, $295,030,000,000.
       (B) Outlays, $293,420,000,000.
       Fiscal year 2005:
       (A) New budget authority, $309,192,000,000.
       (B) Outlays, $307,667,000,000.
       Fiscal year 2006:
       (A) New budget authority, $316,761,000,000.
       (B) Outlays, $315,312,000,000.
       Fiscal year 2007:
       (A) New budget authority, $324,056,000,000.
       (B) Outlays, $322,627,000,000.
       Fiscal year 2008:
       (A) New budget authority, $338,278,000,000.
       (B) Outlays, $336,950,000,000.
       Fiscal year 2009:
       (A) New budget authority, $349,561,000,000.
       (B) Outlays, $347,987,000,000.
       Fiscal year 2010:
       (A) New budget authority, $360,308,000,000.
       (B) Outlays, $358,600,000,000.
       Fiscal year 2011:
       (A) New budget authority, $371,593,000,000.
       (B) Outlays, $369,419,000,000.
       (14) Social Security (650):
       Fiscal year 2001:
       (A) New budget authority, $9,805,000,000.
       (B) Outlays, $9,805,000,000.
       Fiscal year 2002:
       (A) New budget authority, $11,004,000,000.
       (B) Outlays, $11,003,000,000.
       Fiscal year 2003:
       (A) New budget authority, $11,733,000,000.
       (B) Outlays, $11,733,000,000.
       Fiscal year 2004:
       (A) New budget authority, $12,496,000,000.
       (B) Outlays, $12,496,000,000.
       Fiscal year 2005:
       (A) New budget authority, $13,308,000,000.
       (B) Outlays, $13,308,000,000.
       Fiscal year 2006:
       (A) New budget authority, $14,207,000,000.
       (B) Outlays, $14,207,000,000.
       Fiscal year 2007:
       (A) New budget authority, $15,168,000,000.
       (B) Outlays, $15,168,000,000.
       Fiscal year 2008:
       (A) New budget authority, $16,241,000,000.
       (B) Outlays, $16,241,000,000.
       Fiscal year 2009:
       (A) New budget authority, $17,483,000,000.
       (B) Outlays, $17,483,000,000.
       Fiscal year 2010:
       (A) New budget authority, $18,878,000,000.
       (B) Outlays, $18,878,000,000.
       Fiscal year 2011:
       (A) New budget authority, $20,388,000,000.
       (B) Outlays, $20,388,000,000.
       (15) Veterans Benefits and Services (700):
       Fiscal year 2001:
       (A) New budget authority, $46,675,000,000.
       (B) Outlays, $45,926,000,000.
       Fiscal year 2002:
       (A) New budget authority, $51,512,000,000.
       (B) Outlays, $50,921,000,000.
       Fiscal year 2003:
       (A) New budget authority, $53,801,000,000.
       (B) Outlays, $53,408,000,000.
       Fiscal year 2004:
       (A) New budget authority, $56,161,000,000.
       (B) Outlays, $55,744,000,000.
       Fiscal year 2005:
       (A) New budget authority, $60,317,000,000.
       (B) Outlays, $59,847,000,000.
       Fiscal year 2006:
       (A) New budget authority, $59,863,000,000.
       (B) Outlays, $59,368,000,000.
       Fiscal year 2007:
       (A) New budget authority, $59,345,000,000.
       (B) Outlays, $58,853,000,000.
       Fiscal year 2008:
       (A) New budget authority, $63,407,000,000.
       (B) Outlays, $62,971,000,000.
       Fiscal year 2009:
       (A) New budget authority, $64,981,000,000.
       (B) Outlays, $64,570,000,000.
       Fiscal year 2010:
       (A) New budget authority, $66,973,000,000.
       (B) Outlays, $66,555,000,000.
       Fiscal year 2011:
       (A) New budget authority, $69,063,000,000.
       (B) Outlays, $68,632,000,000.
       (16) Administration of Justice (750):
       Fiscal year 2001:
       (A) New budget authority, $30,577,000,000.
       (B) Outlays, $30,003,000,000.
       Fiscal year 2002:
       (A) New budget authority, $32,431,000,000.
       (B) Outlays, $31,436,000,000.
       Fiscal year 2003:
       (A) New budget authority, $32,545,000,000.
       (B) Outlays, $32,809,000,000.
       Fiscal year 2004:
       (A) New budget authority, $35,330,000,000.
       (B) Outlays, $35,543,000,000.
       Fiscal year 2005:
       (A) New budget authority, $36,420,000,000.
       (B) Outlays, $36,347,000,000.
       Fiscal year 2006:
       (A) New budget authority, $37,466,000,000.
       (B) Outlays, $37,036,000,000.
       Fiscal year 2007:
       (A) New budget authority, $38,543,000,000.
       (B) Outlays, $38,013,000,000.
       Fiscal year 2008:
       (A) New budget authority, $39,665,000,000.
       (B) Outlays, $39,152,000,000.
       Fiscal year 2009:

[[Page 7368]]

       (A) New budget authority, $40,822,000,000.
       (B) Outlays, $40,292,000,000.
       Fiscal year 2010:
       (A) New budget authority, $42,021,000,000.
       (B) Outlays, $41,483,000,000.
       Fiscal year 2011:
       (A) New budget authority, $43,284,000,000.
       (B) Outlays, $42,728,000,000.
       (17) General Government (800):
       Fiscal year 2001:
       (A) New budget authority, $16,307,000,000.
       (B) Outlays, $16,065,000,000.
       Fiscal year 2002:
       (A) New budget authority, $16,496,000,000.
       (B) Outlays, $16,193,000,000.
       Fiscal year 2003:
       (A) New budget authority, $16,651,000,000.
       (B) Outlays, $16,493,000,000.
       Fiscal year 2004:
       (A) New budget authority, $17,082,000,000.
       (B) Outlays, $16,978,000,000.
       Fiscal year 2005:
       (A) New budget authority, $17,560,000,000.
       (B) Outlays, $17,201,000,000.
       Fiscal year 2006:
       (A) New budget authority, $18,068,000,000.
       (B) Outlays, $17,641,000,000.
       Fiscal year 2007:
       (A) New budget authority, $18,609,000,000.
       (B) Outlays, $18,144,000,000.
       Fiscal year 2008:
       (A) New budget authority, $18,791,000,000.
       (B) Outlays, $18,445,000,000.
       Fiscal year 2009:
       (A) New budget authority, $19,377,000,000.
       (B) Outlays, $18,882,000,000.
       Fiscal year 2010:
       (A) New budget authority, $19,968,000,000.
       (B) Outlays, $19,437,000,000.
       Fiscal year 2011:
       (A) New budget authority, $20,599,000,000.
       (B) Outlays, $20,048,000,000.
       (18) Net Interest (900):
       Fiscal year 2001:
       (A) New budget authority, $275,467,000,000.
       (B) Outlays, $275,467,000,000.
       Fiscal year 2002:
       (A) New budget authority, $259,162,000,000.
       (B) Outlays, $259,162,000,000.
       Fiscal year 2003:
       (A) New budget authority, $252,364,000,000.
       (B) Outlays, $252,364,000,000.
       Fiscal year 2004:
       (A) New budget authority, $247,310,000,000.
       (B) Outlays, $247,310,000,000.
       Fiscal year 2005:
       (A) New budget authority, $240,115,000,000.
       (B) Outlays, $240,115,000,000.
       Fiscal year 2006:
       (A) New budget authority, $235,642,000,000.
       (B) Outlays, $235,642,000,000.
       Fiscal year 2007:
       (A) New budget authority, $232,136,000,000.
       (B) Outlays, $232,136,000,000.
       Fiscal year 2008:
       (A) New budget authority, $227,484,000,000.
       (B) Outlays, $227,484,000,000.
       Fiscal year 2009:
       (A) New budget authority, $221,933,000,000.
       (B) Outlays, $221,933,000,000.
       Fiscal year 2010:
       (A) New budget authority, $214,899,000,000.
       (B) Outlays, $214,899,000,000.
       Fiscal year 2011:
       (A) New budget authority, $207,328,000,000.
       (B) Outlays, $207,328,000,000.
       (19) Allowances (920):
       Fiscal year 2001:
       (A) New budget authority, $84,528,000,000.
       (B) Outlays, $84,697,000,000.
       Fiscal year 2002:
       (A) New budget authority, -$103,548,000,000.
       (B) Outlays, -$99,379,000,000.
       Fiscal year 2003:
       (A) New budget authority, -$6,115,000,000.
       (B) Outlays, -$5,222,000,000.
       Fiscal year 2004:
       (A) New budget authority, -$6,268,000,000.
       (B) Outlays, -$5,912,000,000.
       Fiscal year 2005:
       (A) New budget authority, -$6,423,000,000.
       (B) Outlays, -$6,263,000,000.
       Fiscal year 2006:
       (A) New budget authority, -$6,580,000,000.
       (B) Outlays, -$6,503,000,000.
       Fiscal year 2007:
       (A) New budget authority, -$6,744,000,000.
       (B) Outlays, -$6,665,000,000.
       Fiscal year 2008:
       (A) New budget authority, -$6,908,000,000.
       (B) Outlays, -$6,828,000,000.
       Fiscal year 2009:
       (A) New budget authority, -$7,079,000,000.
       (B) Outlays, -$6,994,000,000.
       Fiscal year 2010:
       (A) New budget authority, -$7,251,000,000.
       (B) Outlays, -$7,165,000,000.
       Fiscal year 2011:
       (A) New budget authority, -$7,429,000,000.
       (B) Outlays, -$7,340,000,000.
       (20) Undistributed Offsetting Receipts (950):
       Fiscal year 2001:
       (A) New budget authority, -$38,265,000,000.
       (B) Outlays, -$38,265,000,000.
       Fiscal year 2002:
       (A) New budget authority, -$38,803,000,000.
       (B) Outlays, -$38,803,000,000.
       Fiscal year 2003:
       (A) New budget authority, -$49,508,000,000.
       (B) Outlays, -$49,508,000,000.
       Fiscal year 2004:
       (A) New budget authority, -$56,315,000,000.
       (B) Outlays, -$56,315,000,000.
       Fiscal year 2005:
       (A) New budget authority, -$46,463,000,000.
       (B) Outlays, -$46,463,000,000.
       Fiscal year 2006:
       (A) New budget authority, -$50,461,000,000.
       (B) Outlays, -$50,461,000,000.
       Fiscal year 2007:
       (A) New budget authority, -$48,179,000,000.
       (B) Outlays, -$48,179,000,000.
       Fiscal year 2008:
       (A) New budget authority, -$49,141,000,000.
       (B) Outlays, -$49,141,000,000.
       Fiscal year 2009:
       (A) New budget authority, -$50,203,000,000.
       (B) Outlays, -$50,203,000,000.
       Fiscal year 2010:
       (A) New budget authority, -$51,778,000,000.
       (B) Outlays, -$51,778,000,000.
       Fiscal year 2011:
       (A) New budget authority, -$53,287,000,000.
       (B) Outlays, -$53,287,000,000.

     SEC. 103. RECONCILIATION IN THE SENATE.

       (a) In General.--Subject to subsection (b), the Senate 
     Committee on Finance shall report a reconciliation bill not 
     later than May 18, 2001, that consists of changes in laws 
     within its jurisdiction sufficient to reduce revenues by not 
     more than $1,250,000,000,000 and increase the total level of 
     outlays by not more than $100,000,000,000 for the period of 
     fiscal years 2001 through 2011: Provided, That 
     $100,000,000,000 of these revenues and outlays shall only be 
     available for fiscal years 2001 through 2002.
       (b) Surplus.--Legislation described in subsection (a) may 
     not, when taken together with all other previously-enacted 
     legislation (except for legislation enacted pursuant to 
     section 211), reduce the on-budget surplus below the level of 
     the Medicare Hospital Insurance Trust Fund surplus in any 
     fiscal year covered by this resolution.
       (c) Sense of Congress.--It is the sense of the Congress 
     that of the total amount reconciled in subsection (a), 
     $100,000,000,000 will be for an economic stimulus package 
     over the next 2 years.

     SEC. 104. RECONCILIATION IN THE HOUSE.

       (a) In General.--Subject to subsection (b), the Committee 
     on Ways and Means of the House of Representatives shall 
     report to the House of Representatives a reconciliation bill 
     not later than May 18, 2001 that consists of changes in laws 
     within its jurisdiction sufficient to reduce revenues by not 
     more than $1,250,000,000,000 for the period of years 2001 
     through 2011 and the total level of outlays may be increased 
     by not more than $100,000,000,000 for the period of fiscal 
     years 2001 through 2011.
       (b) Surplus.--Legislation described in subsection (a) may 
     not, when taken together with all other previously-enacted 
     legislation (except for legislation enacted pursuant to 
     section 211), reduce the on-budget surplus below the level of 
     the Medicare Hospital Insurance Trust Fund surplus in any 
     fiscal year covered by this resolution.
       (c) Sense of Congress.--It is the sense of the Congress 
     that of the total amount reconciled in subsection (a), 
     $100,000,000,000 will be for an economic stimulus package 
     over the next 2 years.
              TITLE II--BUDGET ENFORCEMENT AND RULEMAKING
                     Subtitle A--Budget Enforcement

     SEC. 201. RESTRICTIONS ON ADVANCE APPROPRIATIONS IN THE 
                   HOUSE.

       (a) In General.--(1) In the House, except as provided in 
     subsection (b), an advance appropriation may not be reported 
     in a bill or joint resolution making a general appropriation 
     or continuing appropriation, and may not be in order as an 
     amendment thereto.
       (2) Managers on the part of the House may not agree to a 
     Senate amendment that would violate paragraph (1) unless 
     specific authority to agree to the amendment first is given 
     by the House by a separate vote with respect thereto.
       (b) Exception.--In the House, an advance appropriation may 
     be provided--
       (1) for fiscal year 2003 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 $23,159,000,000 in new budget 
     authority; and
       (2) for the Corporation for Public Broadcasting.
       (c) Definition.--In this section, the term ``advance 
     appropriation'' means any discretionary new budget authority 
     in a bill or joint resolution making general appropriations 
     or continuing appropriations for fiscal year 2002 that first 
     becomes available for any fiscal year after 2002.

     SEC. 202. RESTRICTIONS ON ADVANCE APPROPRIATIONS IN THE 
                   SENATE.

       (a) In General.--Except as provided in subsection (b), it 
     shall not be in order in the Senate to consider any reported 
     bill or joint resolution, or amendment thereto or conference 
     report thereon, that would provide an advance appropriation.
       (b) Exception.--An advance appropriation may be provided--
       (1) for fiscal year 2003 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 $23,159,000,000 in new budget 
     authority; and
       (2) for the Corporation for Public Broadcasting.
       (c) Application of Point of Order in the Senate.--
       (1) Waiver and appeal.--In the Senate, subsection (a) may 
     be waived or suspended in the

[[Page 7369]]

     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 
     subsection (a).
       (2) Form of the 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.
       (3) Conference reports.--If a point of order is sustained 
     under subsection (a) 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.
       (d) Definition.--In this section, the term ``advance 
     appropriation'' means any discretionary new budget authority 
     in a bill or joint resolution making general appropriations 
     or continuing appropriations for fiscal year 2002 that first 
     becomes available for any fiscal year after 2002.
       (e) Sense of Congress.--It is the sense of Congress that 
     the Budget Enforcement Act of 1990 should be amended to 
     address procedures for advance appropriations for fiscal 
     years beginning with fiscal year 2003.

     SEC. 203. MECHANISM FOR IMPLEMENTING INCREASE OF FISCAL YEAR 
                   2002 DISCRETIONARY SPENDING LIMITS.

       (a) Findings.--The Senate finds the following:
       (1) Unless and until the discretionary spending limit for 
     fiscal year 2002 (as set out in section 251(c) of the 
     Balanced Budget and Emergency Deficit Control Act of 1985) is 
     increased, aggregate appropriations which exceed the current 
     law limits would still be out of order in the Senate and 
     subject to a supermajority vote.
       (2) Except for a necessary adjustment included in function 
     920 (to comply with section 312(b) of the Congressional 
     Budget Act of 1974), the functional totals contained in this 
     concurrent resolution envision a level of discretionary 
     spending for fiscal year 2002 as follows:
       (A) For the discretionary category: $659,540,000,000 in new 
     budget authority and $647,780,000,000 in outlays.
       (B) For the highway category: $28,489,000,000 in outlays.
       (C) For the mass transit category: $5,275,000,000 in 
     outlays.
       (D) For the conservation category: $1,760,000,000 in new 
     budget authority and $1,232,000,000 in outlays.
       (3) To facilitate the Senate completing its legislative 
     responsibilities for the 1st Session of the 107th Congress in 
     a timely fashion, it is imperative that the Senate consider 
     legislation which establishes appropriate discretionary 
     spending limits for fiscal year 2002 through 2006 as soon as 
     possible.
       (b) Adjustment to Allocations and Other Budgetary 
     Aggregates and Levels.--Whenever a bill or joint resolution 
     becomes law that increases the discretionary spending limit 
     for fiscal year 2002 set out in section 251(c) of the 
     Balanced Budget and Emergency Deficit Control Act of 1985, 
     the chairman of the Committee on the Budget of the Senate 
     shall increase the allocation called for in section 302(a) of 
     the Congressional Budget Act of 1974 (2 U.S.C. 633(a)) to the 
     appropriate Committee on Appropriations and shall also 
     appropriately adjust all other budgetary aggregates and 
     levels contained in this resolution.
       (c) Senate Defense Firewall.--
       (1) Definition.--In this subsection, for purposes of 
     enforcement in the Senate for fiscal year 2002, the term 
     ``discretionary spending limit'' means--
       (A) for the defense category, $325,070,000,000 in new 
     budget authority; and
       (B) for the nondefense category, $336,230,000,000 in new 
     budget authority.
       (2) Point of order in the senate.--
       (A) In general.--After the adjustment to the section 302(a) 
     allocation to the Committee on Appropriations is made 
     pursuant to subsection (b) and except as provided in 
     subparagraph (B), it shall not be in order in the Senate to 
     consider any bill, joint resolution, amendment, motion, or 
     conference report that exceeds any discretionary spending 
     limit set forth in this subsection.
       (B) Exception.--This paragraph shall not apply if a 
     declaration of war by Congress is in effect.
       (3) Waiver and appeal.--This subsection 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 subsection.

     SEC. 204. COMPLIANCE WITH SECTION 13301 OF THE BUDGET 
                   ENFORCEMENT ACT OF 1990.

       (a) In General.--In the House of Representatives, 
     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 such 
     Act to the Committee on Appropriations amounts for the 
     discretionary administrative expenses of the Social Security 
     Administration.
       (b) Special Rule.--In the House of Representatives, 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.
                       Subtitle B--Reserve Funds

     SEC. 211. RESERVE FUND FOR MEDICARE.

       (a) Medicare Reform and Prescription Drugs.--If the 
     Committee on Finance of the Senate or the Committee on Ways 
     and Means or the Committee on Energy and Commerce of the 
     House of Representatives reports a bill or joint resolution, 
     or an amendment is offered thereto, or a conference report 
     thereon is submitted, which reforms the medicare program 
     under title XVIII of the Social Security Act (42 U.S.C. 1395 
     et seq.) and improves the access of beneficiaries under that 
     program to prescription drugs, the appropriate chairman of 
     the Committee on the Budget may revise committee allocations 
     for that committee and other appropriate budgetary aggregates 
     and allocations of new budget authority (and the outlays 
     resulting therefrom) in this resolution by the amount 
     provided by that measure for that purpose, but not to exceed 
     $0 for fiscal year 2002, $59,100,000,000 for the period of 
     fiscal years 2002 through 2006, and $300,000,000,000 for the 
     period of fiscal years 2002 through 2011.
       (b) Medicare Payments to Home Health Agencies.--
       (1) In general.--Subject to paragraph (2), if the Senate 
     Committee on Finance or the House Committee on Ways and Means 
     or Committee on Energy and Commerce report a bill, or if an 
     amendment thereto is offered or a conference report thereon 
     is submitted, that repeals the 15 percent reduction in 
     payments under the medicare program to home health agencies 
     enacted by the Balanced Budget Act of 1997 and now scheduled 
     to go into effect on October 1, 2002, the appropriate 
     chairman of the Committee on the Budget may increase the 
     allocation of new budget authority and outlays to that 
     committee and other appropriate budgetary aggregates and 
     levels by the amount the amount provided by that measure for 
     that purpose, but not to exceed $0 in new budget authority 
     and outlays in 2002, $4,000,000,000 for the period 2002 
     through 2006, and $13,700,000,000 for the period 2002 through 
     2011.
       (2) Surplus.--Legislation described in paragraph (1) may 
     not, when taken together with all other previously-enacted 
     legislation (except for legislation enacted pursuant to 
     subsection (a)), reduce the on-budget surplus below the level 
     of the Medicare Hospital Insurance Trust Fund surplus in any 
     fiscal year covered by this resolution.

     SEC. 212. RESERVE FUND FOR FAMILY OPPORTUNITY ACT.

       (a) In General.--Subject to subsection (b), if the 
     Committee on Finance of the Senate or the Committee on Energy 
     and Commerce of the House of Representatives reports a bill 
     or joint resolution, or if an amendment thereto is offered or 
     a conference report thereon is submitted, that provides 
     States with the opportunity to expand medicaid coverage for 
     children with special needs, allowing families of disabled 
     children with the opportunity to purchase coverage under the 
     medicaid program for such children (commonly referred to as 
     the ``Family Opportunity Act of 2001''), the appropriate 
     chairman of the Committee on the Budget may revise committee 
     allocations for that committee and other appropriate 
     budgetary aggregates and allocations of new budget authority 
     (and the outlays resulting therefrom) in this resolution by 
     the amount provided by that measure for that purpose, but not 
     to exceed $227,000,000 in new budget authority and 
     $180,000,000 in outlays for fiscal year 2002, $3,035,000,000 
     in new budget authority and $2,724,000,000 in outlays for the 
     period of fiscal years 2002 through 2006, and $8,337,000,000 
     in new budget authority and $7,867,000,000 in outlays for the 
     period of fiscal years 2002 through 2011.
       (b) Surplus.--Legislation described in subsection (a) may 
     not, when taken together with all other previously-enacted 
     legislation (except for legislation enacted pursuant to 
     section 211), reduce the on-budget surplus below the level of 
     the Medicare Hospital Insurance Trust Fund surplus in any 
     fiscal year covered by this resolution.

     SEC. 213. RESERVE FUND FOR AGRICULTURE .

       (a) In General.--(1) Subject to subsection (b), if the 
     Committee on Agriculture, Nutrition, and Forestry of the 
     Senate or the Committee on Agriculture of the House of 
     Representatives reports a bill, or an amendment thereto is 
     offered, or a conference report thereon is submitted, to 
     reauthorize the Federal Agriculture Improvement Act of 1996, 
     title I of that Act, and other appropriate agricultural 
     production legislation, the appropriate Chairman of the 
     Committee on the Budget may increase the allocation of new 
     budget authority and outlays to that committee for fiscal 
     years 2003 through 2011 by the amount of new budget authority 
     (and the outlays resulting therefrom) provided by that 
     measure for that purpose not to exceed $66,150,000,000 in new 
     budget authority and outlays for fiscal years 2003 through 
     2011.
       (2) In the House of Representatives, if an adjustment is 
     made under paragraph (1), the Chairman of the Committee on 
     the Budget may adjust the fiscal year 2002 level by an amount 
     not to exceed the adjustment that is made for fiscal year 
     2003 (and reduce the adjustment made for fiscal year 2003 by 
     that amount).
       (b) Surplus.--Legislation described in subsection (a) may 
     not, when taken together with all other previously-enacted 
     legislation (except for legislation enacted pursuant to 
     section 211), reduce the on-budget surplus below the level of 
     the Medicare Hospital Insurance Trust Fund surplus in any 
     fiscal year covered by this resolution.

[[Page 7370]]



     SEC. 214. RESERVE FUND FOR ADDITIONAL TAX CUTS AND DEBT 
                   REDUCTION.

       If the report provided pursuant to section 202(e)(2) of the 
     Congressional Budget Act of 1974, the budget and economic 
     outlook: update (for fiscal years 2002 through 2011), 
     estimates an on-budget surplus for any of fiscal years 2001 
     through 2011 that exceeds the estimated on-budget surplus set 
     forth in the Congressional Budget Office's January 2001 
     budget and economic outlook for such fiscal year, the 
     chairman of the Committee on the Budget of the House may, in 
     an amount not to exceed the increase in such surplus for that 
     fiscal year--
       (1) reduce the recommended level of Federal revenues and 
     make other appropriate adjustments (including the 
     reconciliation instructions) for that fiscal year;
       (2) reduce the appropriate level of the public debt, 
     increase the amount of the surplus, and make other 
     appropriate adjustments for that fiscal year; or
       (3) any combination of paragraphs (1) and (2).

     SEC. 215. TECHNICAL RESERVE FUND FOR STUDENT LOANS.

       (a) In General.--Subject to subsection (b), if the 
     Committee on Health, Education, Labor, and Pensions of the 
     Senate reports a bill, or an amendment thereto is offered, or 
     a conference report thereon is submitted, or the Committee on 
     Education and the Workforce of the House of Representatives 
     reports a bill, or an amendment is offered, or a conference 
     report is submitted, that provides additional resources for 
     legislation that repeals the replacement interest rate 
     structure for student loans scheduled to occur on July 1, 
     2003, the appropriate Chairman of the Committee on the Budget 
     may increase the allocation of new budget authority and 
     outlays to the appropriate committee--
       (1) for fiscal years 2001 and 2002 by the amount of new 
     budget authority (and the outlays resulting therefrom) 
     provided by that measure for that purpose not to exceed 
     $110,000,000 in new budget authority and $100,000,000 
     outlays;
       (2) for fiscal years 2001 through 2006 by the amount of new 
     budget authority (and the outlays resulting therefrom) 
     provided by that measure for that purpose not to exceed 
     $3,440,000,000 in new budget authority and $2,840,000,000 
     outlays; and
       (3) for fiscal years 2001 through 2011 by the amount of new 
     budget authority (and the outlays resulting therefrom) 
     provided by that measure for that purpose not to exceed 
     $7,665,000,000 in new budget authority and $6,590,000,000 
     outlays.
       (b) Surplus.--Legislation described in subsection (a) may 
     not, when taken together with all other previously-enacted 
     legislation (except for legislation enacted pursuant to 
     section 211), reduce the on-budget surplus below the level of 
     the Medicare Hospital Insurance Trust Fund surplus in any 
     fiscal year covered by this resolution.

     SEC. 216. RESERVE FUND FOR HEALTH INSURANCE FOR THE 
                   UNINSURED.

       (a) In General.--Subject to subsection (b), if the 
     Committee on Finance of the Senate or the Committee on Energy 
     and Commerce or Committee on Ways and Means of the House of 
     Representatives report a bill or joint resolution, or an 
     amendment thereto is offered, or a conference report thereon 
     is submitted, that provides health insurance for the 
     uninsured (including a measure providing for tax deductions 
     for the purchase of health insurance for, among others, 
     moderate income individuals not receiving health insurance 
     from their employers), the appropriate chairman of the 
     Committee on the Budget may revise committee allocations for 
     that committee and other appropriate budgetary aggregates and 
     allocations of new budget authority (and the outlays 
     resulting therefrom) and may revise the revenue aggregates 
     and other appropriate budgetary aggregates and allocations in 
     this resolution by the amount provided by that measure for 
     that purpose, but not to exceed $28,000,000,000 in new budget 
     authority and outlays for the period of fiscal years 2002 
     through 2004 or $28,000,000,000 in revenues for the period of 
     fiscal years 2002 through 2004 or any combination of budget 
     authority and outlays or revenues as long as the sum of all 
     revisions does not exceed $28,000,000,000. The chairman of 
     the appropriate Committee on the Budget is authorized to 
     allocate these resources over a period of time longer than 
     that specified in the previous sentence.
       (b) Surplus.--Legislation described in subsection (a) may 
     not, when taken together with all other previously-enacted 
     legislation (except for legislation enacted pursuant to 
     section 211), reduce the on-budget surplus below the level of 
     the Medicare Hospital Insurance Trust Fund surplus in any 
     fiscal year covered by this resolution.

     SEC. 217. RESERVE FUND FOR DEFENSE IN THE SENATE.

       (a) In General.--Subject to subsection (b), if the 
     President submits a budget amendment and the Committee on 
     Appropriations or the Committee on Armed Services of the 
     Senate reports a bill, or an amendment thereto is offered, or 
     a conference report thereon is submitted, that provides 
     additional resources for defense spending in response to the 
     recommendations of the President's National Defense Review, 
     the Chairman of the Committee on the Budget may increase the 
     allocation of new budget authority and outlays to that 
     committee for fiscal year 2002 by the amount of new budget 
     authority (and the outlays resulting therefrom) provided by 
     that measure for that purpose.
       (b) Surplus.--Legislation described in subsection (a) may 
     not, when taken together with all other previously-enacted 
     legislation (except for legislation enacted pursuant to 
     section 211), reduce the on-budget surplus below the level of 
     the Medicare Hospital Insurance Trust Fund surplus in any 
     fiscal year covered by this resolution.

     SEC. 218. STRATEGIC RESERVE FUND IN THE HOUSE.

       (a) Adjustments.--In the House of Representatives, the 
     chairman of the Committee on the Budget may adjust the 
     appropriate aggregates and committee allocations of new 
     budget authority (and outlays flowing therefrom) for fiscal 
     year 2002 for a bill making appropriations for the Department 
     of Defense and, for fiscal years 2002 through 2011, a bill 
     making authorizations for the Department of Defense, a bill 
     providing a prescription drug benefit, and any other 
     appropriate legislation. The chairman may also make 
     adjustments for amendments to or conference reports on such 
     bills. In making adjustments under this subsection, the 
     chairman shall consider, as appropriate, the recommendations 
     of the President's National Defense Review and any statement 
     of administrative policy or supplemental budget request 
     relating to any legislation referred to in this subsection.
       (b) Limitations.--(1) The adjustments for any bill referred 
     to in subsection (a) shall be in an amount not to exceed the 
     amount by which such bill breaches the applicable allocation 
     or aggregate.
       (2) Legislation described in subsection (a) may not, when 
     taken together with all other previously-enacted legislation 
     (except for legislation enacted pursuant to section 211), 
     reduce the on-budget surplus below the level of the Medicare 
     Hospital Insurance Trust Fund surplus in any fiscal year 
     covered by this resolution.
                  Subtitle C--Miscellaneous Provisions

     SEC. 221. 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--
       (1) 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 
     Committees on the Budget of the House of Representatives and 
     the Senate; and
       (2) such chairman, as applicable, may make any other 
     necessary adjustments to such levels to carry out this 
     resolution.
       (d) Enforcement in the House.--
       (1) In general.--In the House of Representatives, for the 
     purpose of enforcing this concurrent resolution, sections 
     302(f) and 311(a) of the Congressional Budget Act of 1974 
     shall apply to fiscal year 2002 and the total for fiscal year 
     2002 and the four ensuing fiscal years.
       (2) Appropriate levels.--For purposes of enforcement of the 
     Congressional Budget Act of 1974 in the House of 
     Representatives, the appropriate levels of total new budget 
     authority and total budget outlays for fiscal years 2002 
     through 2011 prescribed by this resolution pursuant to 
     section 301(a)(1) of such Act shall be based upon the table 
     entitled ``Conference Report Fiscal Year 2002, Budget 
     Resolution Total Spending and Revenues'' in conjunction with 
     the provisions of title II of this resolution.
       (e) Enforcement in the Senate.--The Senate, for purposes of 
     enforcement of the Congressional Budget Act of 1974 and this 
     resolution, measures discharged pursuant to Senate Resolution 
     8 shall be considered as if the measure had been reported 
     from the committee of jurisdiction.

     SEC. 222. EXERCISE OF RULEMAKING POWERS.

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

     SEC. 301. SENSE OF THE SENATE ON CONSERVATION.

       It is the sense of the Senate that conservation funding is 
     a priority of the One Hundred Seventh Congress.

     SEC. 302. SENSE OF THE SENATE ON AIDS AND OTHER INFECTIOUS 
                   DISEASES.

       Notwithstanding any other provision of this resolution, it 
     is the sense of the Senate that:
       (1) Findings.--The Senate finds the following:
       (A) HIV/AIDS, having already infected over 58 million 
     people worldwide, is devastating the

[[Page 7371]]

     health, economies, and social structures in dozens of 
     countries in Africa, and increasingly in Asia, the Caribbean 
     and Eastern Europe.
       (B) AIDS has wiped out decades of progress in improving the 
     lives of families in the developing world. As the leading 
     cause of death in Africa, AIDS has killed 17 million and will 
     claim the lives of one quarter of the population, mostly 
     productive adults, in the next decade. In addition, 13 
     million children have been orphaned by AIDS--a number that 
     will rise to 40 million by 2010.
       (C) The Agency for International Development, along with 
     the Centers for Disease Control, Department of Labor, and 
     Department of Defense have been at the forefront of the 
     international battle to control HIV/AIDS, with global 
     assistance totaling $330,000,000 from the United States 
     Agency for International Development and $136,000,000 from 
     other agencies in fiscal year 2001, primarily focused on 
     targeted prevention programs.
       (D) While prevention is key, treatment and care for those 
     affected by HIV/AIDS is an increasingly critical component of 
     the global response. Improving health systems, providing 
     home-based care, treating AIDS-associated diseases like 
     tuberculosis, providing for family support and orphan care, 
     and making antiretroviral drugs against HIV available will 
     reduce social and economic damage to families and 
     communities.
       (E) Pharmaceutical companies recently dramatically reduced 
     the prices of antiretroviral drugs to the poorest countries. 
     With sufficient resources, it is now possible to improve 
     treatment options in countries where health systems are able 
     to deliver and monitor the medications.
       (F) The United Nations AIDS program estimates it will cost 
     at least $3,000,000,000 for basic AIDS prevention and care 
     services in Sub-Saharan Africa alone, and at least 
     $2,000,000,000 more if antiretroviral drugs are provided 
     widely. In Africa, only $500,000,000 is currently available 
     from all donors, lending agencies and African governments 
     themselves.
       (2) Sense of the senate.--It is the sense of the Senate 
     that the spending levels in this budget resolution shall be 
     increased by $200,000,000 in fiscal year 2002 and by 
     $500,000,000 in 2003 and for each year thereafter for the 
     purpose of helping the neediest countries cope with the 
     burgeoning costs of prevention, care and treatment of those 
     affected by HIV/AIDS and associated infectious diseases.

     SEC. 303. SENSE OF THE SENATE ON CONSOLIDATED HEALTH CENTERS.

       It is the sense of the Senate that appropriations for 
     consolidated health centers under section 330 of the Public 
     Health Service Act (42 U.S.C. 254b) should be increased by 
     100 percent over the next 5 fiscal years in order to double 
     the number of individuals who receive health services at 
     community, migrant, homeless, and public housing health 
     centers.

     SEC. 304. FUNDING FOR DEPARTMENT OF JUSTICE PROGRAMS FOR 
                   STATE AND LOCAL LAW ENFORCEMENT ASSISTANCE.

       It is the sense of the Senate that the levels in this 
     resolution assume increased funding for fiscal year 2002 for 
     the Department of Justice State and local law enforcement 
     grant programs.

     SEC. 305. SENSE OF THE SENATE REGARDING UNITED STATES COAST 
                   GUARD FISCAL YEAR 2002 FUNDING.

        It is the sense of the Senate that any level of budget 
     authority and outlays in fiscal year 2002 below the level 
     assumed in this resolution for the Coast Guard would require 
     the Coast Guard to--
       (1) close numerous units and reduce overall mission 
     capability, including the counter narcotics interdiction 
     mission which was authorized under the Western Hemisphere 
     Drug Elimination Act;
       (2) reduce the number of personnel of an already 
     streamlined workforce; and
       (3) reduce operations in a manner that would have a 
     detrimental impact on the sustainability of valuable fish 
     stocks in the North Atlantic and Pacific Northwest and its 
     capacity to stem the flow of illicit drugs and illegal 
     immigration into the United States.

     SEC. 306. STRENGTHENING OUR NATIONAL FOOD SAFETY 
                   INFRASTRUCTURE.

       (a) Finding.--The Senate finds that the United States food 
     supply is one of the safest in the world, but in order to 
     maintain the integrity of our food supply in the face of 
     emerging threats, we must make the necessary investments now, 
     in a time of surplus.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that the levels in this resolution assume that the 
     appropriate amount should be invested at the Food and Drug 
     Administration and the Center for Disease Control food 
     activities next year in order to strengthen our national food 
     safety infrastructure by--
       (1) increasing the number of inspectors within the Food and 
     Drug Administration to enable the Food and Drug 
     Administration to inspect high-risk sites at least annually;
       (2) supporting research that enables us to meet emerging 
     threats;
       (3) improving surveillance to identify and trace the 
     sources and incidence of food-borne illness;
       (4) otherwise maintaining at least current funding levels 
     for food safety initiatives in the Food and Drug 
     Administration and the United States Department of 
     Agriculture; and
       (5) providing additional funds should such needs arise due 
     to emerging food safety threats.

     SEC. 307. SENSE OF THE SENATE WITH RESPECT TO INCREASING 
                   FUNDS FOR RENEWABLE ENERGY RESEARCH AND 
                   DEVELOPMENT.

       It is the sense of the Senate that the Senate recognizes 
     the importance of renewable energy resources and that 
     providing for such technologies should be increased by at 
     least $450,000,000 for fiscal year 2002 and at a rate in 
     excess of inflation in subsequent years.

     SEC. 308. SENSE OF THE SENATE WITH RESPECT TO INCREASED 
                   EDUCATION FUNDING.

       It is the Sense of the Senate that--
       (1) this budget resolution makes available up to $6.2 
     billion in discretionary budget authority for funding 
     domestic priorities in excess of the President's request; and
       (2) funding for discretionary education programs (including 
     Head Start and funds for the Department of Education in 
     excess of the President's request of $44.5 billion in 
     discretionary budget authority for fiscal year 2002) is one 
     such priority; and
       (3) these additional funds for education should be devoted 
     to high priority programs including Head Start, the 
     Individuals with Disabilities Education Act, education for 
     the disadvantaged, Impact Aid, state assessment tests, Pell 
     Grants, reading improvement programs, school construction, 
     and teacher and classroom quality programs.
                   Subtitle B--Sense of the Congress

     SEC. 311. ASSET BUILDING FOR THE WORKING POOR.

       (a) Findings.--Congress find the following:
       (1) For the vast majority of United States households, the 
     pathway to the economic mainstream and financial security is 
     not through spending and consumption, but through savings, 
     investing, and the accumulation of assets.
       (2) One-third of all Americans have no assets available for 
     investment and another 20 percent have only negligible 
     assets. The situation is even more serious for minority 
     households; for example, 60 percent of African-American 
     households have no or negative financial assets.
       (3) Nearly 50 percent of all children in America live in 
     households that have no assets available for investment, 
     including 40 percent of Caucasian children and 73 percent of 
     African-American children.
       (4) Up to 20 percent of all United States households do not 
     deposit their savings in financial institutions and, thus, do 
     not have access to the basic financial tools that make asset 
     accumulation possible.
       (5) Public policy can have either a positive or a negative 
     impact on asset accumulation. Traditional public assistance 
     programs based on income and consumption have rarely been 
     successful in supporting the transition to economic self-
     sufficiency. Tax policy, through $288,000,000,000 in annual 
     tax incentives, has helped lay the foundation for the great 
     middle class.
       (6) Lacking an income tax liability, low-income working 
     families cannot take advantage of asset development 
     incentives available through the Federal tax code.
       (7) Individual Development Accounts have proven to be 
     successful in helping low-income working families save and 
     accumulate assets. Individual Development Accounts have been 
     used to purchase long-term, high-return assets, including 
     homes, postsecondary education and training, and small 
     business.
       (b) Sense of Congress.--It is the sense of Congress that 
     the Federal tax code should support a significant expansion 
     of Individual Development Accounts so that millions of low-
     income, working families can save, build assets, and move 
     their lives forward; thus, making positive contributions to 
     the economic and social well-being of the United States, as 
     well as to its future.

     SEC. 312. FEDERAL FIRE PREVENTION ASSISTANCE.

       (a) Findings.--Congress finds the following:
       (1) Increased demands on firefighting and emergency medical 
     personnel have made it difficult for local governments to 
     adequately fund necessary fire safety precautions.
       (2) The Government has an obligation to protect the health 
     and safety of the firefighting personnel of the United States 
     and to ensure that they have the financial resources to 
     protect the public.
       (3) The high rates in the United States of death, injury, 
     and property damage caused by fires demonstrates a critical 
     need for Federal investment in support of firefighting 
     personnel.
       (b) Sense of Congress.--It is the sense of Congress that 
     the Government should support the core operations of the 
     Federal Emergency Management Agency by providing needed fire 
     grant programs to assist our firefighters and rescue 
     personnel as they respond to more than 17,000,000 emergency 
     calls annually. To accomplish this task, Congress supports 
     preservation of the Assistance to Firefighters grant program. 
     Continued support of the Assistance to Firefighters grant 
     program will enable local firefighters to adequately protect 
     the lives of countless Americans put at risk by insufficient 
     fire protection.

     SEC. 313. FUNDING FOR GRADUATE MEDICAL EDUCATION AT 
                   CHILDREN'S TEACHING HOSPITALS.

       It is the sense of Congress that:
       (1) Function 550 includes an appropriate level of funding 
     for graduate medical education conducted at independent 
     children's teaching hospitals in order to ensure access to 
     care by millions of children nationwide.
       (2) An emphasis should be placed on the role played by 
     community health centers in underserved rural and urban 
     communities.
       (3) Funding under function 550 should also reflect the 
     importance of the Ryan White CARE Act to persons afflicted 
     with HIV/AIDS.

[[Page 7372]]



     SEC. 314. CONCURRENT RETIREMENT AND DISABILITY BENEFITS TO 
                   RETIRED MEMBERS OF THE ARMED FORCES.

       (a) Findings.--Congress finds that the Secretary of Defense 
     is the appropriate official for evaluating the existing 
     standards for the provision of concurrent retirement and 
     disability benefits to retired members of the Armed Forces 
     and the need to change these standards.
       (b) Sense of Congress.--It is the sense of Congress that--
       (1) the Secretary of Defense should report not later than 
     180 days after the date of adoption of this resolution to the 
     congressional committees of jurisdiction on the provision of 
     concurrent retirement and disability benefits to retired 
     members of the Armed Forces;
       (2) the report should address the number of individuals 
     retired from the Armed Forces who would otherwise be eligible 
     for disability compensation, the comparability of the policy 
     to Office of Personnel Management guidelines for civilian 
     Federal retirees, the applicability of this policy to 
     prevailing private sector standards, the number of 
     individuals potentially eligible for concurrent benefits who 
     receive other forms of Federal assistance and the cost of 
     that assistance, and alternative initiatives that would 
     accomplish the same end as concurrent receipt of military 
     retired pay and disability compensation;
       (3) the Secretary of Defense should submit legislation that 
     he considers appropriate;
       (4) upon receiving such report, the committees of 
     jurisdiction, working with the Committees on the Budget of 
     the House and Senate, should consider appropriate 
     legislation; and
       (5) CBO and OMB should report not later than 30 days after 
     the date of adoption of this resolution to the Committees on 
     the Budget on the risk that provision of full concurrent 
     receipt of military retired pay and disability compensation 
     would reduce the surplus below the level of the Medicare 
     Hospital Insurance Trust Fund.

     SEC. 315. FEDERAL EMPLOYEE PAY.

       (a) Findings.--Congress finds the following:
       (1) Members of the uniformed services and civilian 
     employees of the United States make significant contributions 
     to the general welfare of the Nation.
       (2) Increases in the pay of members of the uniformed 
     services and of civilian employees of the United States have 
     not kept pace with increases in the overall pay levels of 
     workers in the private sector, so that there now exists--
       (A) a 32 percent gap between compensation levels of Federal 
     civilian employees and compensation levels of private sector 
     workers; and
       (B) an estimated 10 percent gap between compensation levels 
     of members of the uniformed services and compensation levels 
     of private sector workers.
       (3) The President's budget proposal for fiscal year 2002 
     includes a 4.6 percent pay raise for military personnel.
       (4) The Office of Management and Budget has requested that 
     Federal agencies plan their fiscal year 2002 budgets with a 
     3.6 percent pay raise for civilian Federal employees.
       (5) In almost every year during the past 2 decades, there 
     have been equal adjustments in the compensation of members of 
     the uniformed services and the compensation of civilian 
     employees of the United States.
       (b) Sense of Congress.--It is the sense of Congress 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. 316. SALES TAX DEDUCTION.

       (a) Findings.--Congress finds that--
       (1) in 1986 the ability to deduct State sales taxes was 
     eliminated from the Federal tax code;
       (2) the States of Tennessee, Texas, Wyoming, Washington, 
     Florida, Nevada, and South Dakota have no State income tax;
       (3) the citizens of those seven States continue to be 
     treated unfairly by paying significantly more in taxes to the 
     Government than taxpayers with an identical profile in 
     different States because they are prohibited from deducting 
     their State sales taxes from their Federal income taxes in 
     lieu of a State income tax;
       (4) the design of the Federal tax code is preferential in 
     its treatment of States with State income taxes over those 
     without State income taxes;
       (5) the current Federal tax code infringes upon States' 
     rights to tax their citizens as they see fit in that the 
     Federal tax code exerts unjust influence on States without 
     State income taxes to impose on their citizens;
       (6) the current surpluses that our Government holds provide 
     an appropriate time and opportunity to allow taxpayers to 
     deduct either their State sales taxes or their State income 
     taxes from their Federal income tax returns; and
       (7) over 50 Members of the House of Representatives have 
     cosponsored legislation to restore the sales tax deduction 
     option to the Federal tax code.
       (b) Sense of Congress.--It is the sense of Congress that 
     the Committee on Ways and Means and the Committee on Finance 
     should consider legislation that makes State sales tax 
     deductible against Federal income taxes.

       And the Senate agree to the same.

     Pete V. Domenici,
     Chuck Grassley,
     Don Nickles,
     Phil Gramm,
     Kit Bond,
                               Managers on the Part of the Senate.
     Jim Nussle,
     John E. Sununu,
                                Managers on the Part of the House.

       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

       The managers on the part of the Senate and the House at the 
     conference on disagreeing votes of the two Houses on the 
     amendment of the Senate to the concurrent resolution (House 
     Concurrent Resolution 83), establishing the congressional 
     budget for the United States Government for fiscal year 2002, 
     revising the congressional budget for the United States 
     Government for fiscal year 2001, and setting forth 
     appropriate budgetary levels for each of fiscal 2003, through 
     2011, submit the following joint statement to the House and 
     the Senate in explanation of the effect of the action agreed 
     upon by the managers and recommend in the accompanying 
     conference report:
       The Senate amendment struck all out of the House resolution 
     after the resolving clause and inserted a substitute text.
       The House recedes from its disagreement to the amendment of 
     the Senate with an amendment which is a substitute for the 
     House resolution and the Senate amendment.

                          Displays and Amounts

       The contents of concurrent budget resolutions are set forth 
     in section 301(a) of the Congressional Budget Act of 1974. 
     The years in this document are fiscal years unless otherwise 
     indicated.
       House Resolution.--The House budget resolution includes all 
     of the items required as part of a concurrent budget 
     resolution under section 301(a) of the Congressional Budget 
     Act other than the spending and revenue levels for Social 
     Security (which is used to enforce a point of order 
     applicable only in the Senate).
       Senate Amendment.--The Senate amendment includes all of the 
     items required under section 301(a) of the Congressional 
     Budget Act. As permitted under section 301(b) of the 
     Congressional Budget Act, Section 102 of the Senate amendment 
     includes advisory levels on debt held by the public.
       Conference Agreement.--The Conference Agreement includes 
     all of the items required by section 301(a) of the 
     Congressional Budget Act.

                     Aggregates and Function Levels

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                          Economic Assumptions

       Section 301(g)(2) of the Congressional Budget Act requires 
     that the joint explanatory statement accompanying a 
     conference report on a budget resolution set forth the common 
     economic assumptions upon which the joint statement and 
     conference report are based. The Conference Agreement is 
     built upon the economic forecasts developed by the 
     Congressional Budget Office and presented in CBO's ``The 
     Economic and Budget Outlook: Fiscal Years 2002-2011'' 
     (January 2001).
       House Resolution.--CBO's economic assumptions were used.
       Senate Amendment.--CBO's economic assumptions were used.
       Conference Agreement.--CBO's economic assumptions were 
     used.

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[[Page 7390]]



                         Functions and Revenues

       Pursuant to section 301(a)(3) of the Budget Act, the budget 
     resolution must set appropriate levels for each major 
     functional category based on the 302(a) allocations and the 
     budgetary totals.
       The respective levels of the House resolution, the Senate 
     amendment, and the Conference Agreement for each major budget 
     function are discussed in the following section. The 
     Conference Agreement provides aggregate discretionary 
     spending in 2002 of $661.3 billion in budget authority (BA) 
     and $682.8 billion in outlays.
       These two aggregate numbers are allocated to the 
     Appropriations Committees to be suballocated to their 13 
     individual appropriation subcommittees. For the purposes of 
     presentation in this Conference Agreement, functional 
     discretionary numbers are set at fiscal year 2002 
     Congressional Budget Office baseline estimates, and do not 
     reflect any specific policy orientation except for the 
     defense function, which assumes President Bush's budget 
     authority request for fiscal year 2002. For years beyond 2002 
     this report assumes that the 2002 discretionary function 
     levels grow by inflation.
       The only specific discretionary policy decision inherent in 
     this resolution is a $661.3 billion discretionary budget 
     authority allocation. The Appropriations Committees are 
     responsible for allocating this budget authority to their 
     subcommittees to address specific policy priorities.


                     function 050: national defense

       Major Programs in Function.--Under current law, spending 
     for Function 050, National Defense, will total $310.3 billion 
     in BA and $300.6 billion in outlays for 2001. This function 
     includes funding for the Department of Defense (about 95 
     percent of the function), the defense activities of the 
     Department of Energy (about 5 percent of the function), and 
     other defense activities in other departments and agencies, 
     including the Department of Transportation, the Department of 
     Justice, the General Services Administration, and the 
     Selective Service (less than 1% of the function).
       House Resolution.--The resolution establishes levels of 
     $324.6 billion in budget authority [BA] and $319.3 billion in 
     outlays in fiscal year 2002, an increase of 4.6 percent in BA 
     compared with fiscal year 2001. The function totals are $1.71 
     trillion in BA and $1.68 trillion in outlays over 5 years, 
     and $3.68 trillion in BA and $3.61 trillion in outlays over 
     10 years. Funding in the resolution accommodates the 
     President's proposal to increase military pay and other 
     compensation by $1.4 billion in 2002. The resolution also 
     assumes an additional $400 million to improve the quality of 
     housing for military personnel and their families, and $3.9 
     billion for the first year of expanded health benefits for 
     over-65 military retirees (Tricare for Life). In addition, 
     the resolution accommodates the President's proposed $2.6-
     billion initiative ($20 billion over 5 years) to fund 
     research and development of new technologies. The Department 
     of Defense intends to apply this funding to create new 
     capabilities to defend against projected future threats, 
     following a comprehensive review by the Secretary of Defense 
     to assess national security needs. To potentially augment the 
     levels in this function, the resolution creates two reserve 
     funds that could accommodate additional defense spending: 
     one, in fiscal year 2001, to eliminate Department of Defense 
     shortfalls; and a second, in fiscal year 2002, for possible 
     legislation pursuant to the President's defense review. See 
     also section 1218A.
       Senate Amendment.--The Senate amendment provides $334.5 
     billion in BA and $326.8 billion in outlays in 2002, and 
     $3.69 trillion in BA and $3.62 trillion in outlays over 2002-
     2011. These amounts include full funding for the President's 
     request, which for 2002 constitutes a $14.3. billion increase 
     in BA over 2001--a 4.6 percent nominal increase--and which in 
     2002 accommodates increases of $1.4 billion in BA for 
     military personnel pay and retention, $0.4 billion for 
     military housing, $2.6 billion for research and development 
     for missile defense and ``transformation,'' and $3.9 billion 
     for the Tricare for Life program enacted in the 106th 
     Congress. The President's request also incorporated 
     reductions below inflated baseline levels for the Department 
     of Energy defense activities (subfunction 053) and other 
     defense-related activities in subfunction 054, amounting to 
     approximately $1 billion per year over 2002-2011.
       The Senate amendment includes the President's proposal to 
     make the Radiation Exposure Compensation Trust Fund a 
     mandatory program and to delay payments to certain 
     beneficiaries pending the scientific findings of a study by 
     the National Institute of Occupational Safety and Health.
       The Senate amendment also encompasses increases directed by 
     certain amendments adopted by the Senate for 2002. These 
     include an amendment adding $8.5 billion in BA and $6.5 
     billion in outlays to redress serious and pressing Defense 
     Health Program shortfalls ($3.1 billion), unfunded Department 
     of Energy non-proliferation and ``Stockpile Stewardship'' 
     activities ($900 million), and readiness shortages ($4.5 
     billion). Another floor amendment added $1.0 billion in 
     additional BA and $0.7 billion in outlays for the Department 
     of Energy's Environmental Management program.
       Conference Agreement.--For 2001, the Conferees adopted 
     $316.9 billion in BA and $302.4 billion in outlays. This is 
     an increase of $6.5 billion in BA over previously enacted--
     appropriations for 2001. For 2002, the Conferees adopted. 
     $324.8 billion in BA and $319.1 billion in outlays. This is 
     an increase of $14.5 billion above levels enacted to date for 
     2001. For 2002-2011, the Conference Agreement totals $3.65 
     trillion in BA and $3.59 trillion in outlays.
       Regarding discretionary spending, the Conferees adopted the 
     House amendment with certain understandings and alterations. 
     Among the understandings, the primary ones are to redress 
     shortfalls in the National Defense budget function for 2001 
     and 2002 regarding the Defense Health Program, readiness, and 
     certain Department of Energy defense activities. The key 
     alteration is a revised mechanism to accommodate the as yet 
     unspecified additional funding needed for the results of the 
     President's Defense Review to adjust U.S. national security 
     strategy and defense programs to the requirements twenty-
     first century.
       To redress shortfalls in 2001, the Conferees have revised 
     the Section 302(a) allocation up to the level of the 
     statutory cap for 2001 to accommodate a 2001 supplemental for 
     the Department of Defense totaling $6.5 billion in BA and 
     $1.8 billion in outlays. The Conferees assume and urge in the 
     strongest possible terms that this budget authority be used, 
     in the amounts specified, exclusively for urgent shortfalls 
     in the Defense Health Program ($1.4 billion) and immediate 
     readiness needs, including spare parts, training, depot and 
     other maintenance, fuel and energy costs, and base operations 
     ($5.1 billion).
       For discretionary spending in 2002, the Conferees adopted 
     $325.1 billion in BA and $319.4 billion in outlays. These 
     totals match the President's request as scored by CBO, 
     together with the outlays estimated by CBO from the 2001 
     supplemental allocation described above. In addition, the 
     Conferees adopted reserve funds, described more fully in the 
     discussion of Title II, to accommodate a Presidential budget 
     amendment in response to the President's Defense Review.
       The Conferees assume that, taken together, the National 
     Defense budget as originally submitted by the President and 
     the subsequent budget amendment will fully fund the 
     ``transformation'' initiatives recommended by the President 
     and the Secretary of Defense and all pre-existing priority 
     national security programs in the Department of Defense and 
     the Department of Energy. The Conferees are particularly 
     concerned that the amended budget request fully address all 
     shortfalls that have heretofore been identified for 2002, 
     including those in the Defense Health Program (up to $3.1 
     billion), activities where readiness has in recent years 
     fallen below optimal levels (totaling several billions of 
     dollars), and essential national security programs in the 
     Department of Energy, including Stockpile Stewardship ($800 
     million), non-proliferation activities ($100 million), and 
     Environmental Management programs (up to $1 billion, which 
     could occur in the fiscal year deemed most appropriate, 2001 
     or 2002). The Conferees agree that it is essential for the 
     National Defense budget as amended, to fully fund each of 
     these concerns respecting both shortfalls and 
     ``transformation.''
       Regarding mandatory spending, the Conferees adopted the 
     Senate amendment concerning the Radiation Exposure 
     Compensation Trust Fund, revised to reflect more recent CBO 
     scoring. This updated scoring amounts to $172 million in 2002 
     and $655 million for 2002-2011 with an offsetting reduction 
     of expenses in the Energy Occupation Illness Compensation 
     fund that brings net costs to $146 million in 2002 and $440 
     million for 2002-2011.


                  function 150: international affairs

       Major Programs in Function.--Under current law, spending 
     for Function 150, International Affairs, will total $22.4 
     billion in BA and $19.7 billion in outlays for 2001. This 
     function includes funding for the operation of the foreign 
     affairs establishment including embassies and other 
     diplomatic missions abroad, foreign aid loan and technical 
     assistance activities in developing countries, security 
     assistance to foreign governments, activities of the Foreign 
     Military Sales Trust Fund, U.S. contributions to 
     international financial institutions and the United Nations, 
     the Export-Import Bank and other trade promotion activities, 
     and refugee assistance.
       House Resolution.--The resolution fully funds the 
     President's requested levels of $23.9 billion in budget 
     authority [BA] and $19.6 billion in outlays in fiscal year 
     2002, an increase of 6.4 percent in BA compared with fiscal 
     year 2001. The function totals are $123.8 billion in BA and 
     $102.0 billion in outlays over 5 years, and $264.2 billion in 
     BA and $219.7 billion in outlays over 10 years. The levels 
     fully fund the President's request and accommodate his 
     proposal to increase the Administration of Foreign Affairs 
     funding by $888 million above the 2001 level, to a total of 
     $5.7 billion for fiscal year 2002, and his request to 
     increase military assistance to Israel by $60 million. In 
     addition, to maintain and expand programs to stem the flow of 
     cocaine and heroin from Colombia and its Andean neighbors, 
     the budget assumes the President's $624-million increase for 
     international narcotics control and law enforcement. The 
     resolution also assumes sufficient

[[Page 7391]]

     resources for the Tropical Forest Conservation Act [TFCA].
       Senate Amendment.--The Senate amendment provides $24.1 
     billion in BA and $19.8 billion in outlays in 2002, and 
     $265.4 billion in BA and $220.9 billion in outlays over 2002-
     2011. These amounts include full funding for the President's 
     request, which for 2002 constitutes a $1.5 billion increase 
     in BA over 2001--a 6.7 percent nominal increase. The Senate 
     amendment also reflects the Senate's adoption of a floor 
     amendment to increase the President's request by $200 million 
     in BA in 2002 and by $500 million in BA in 2003--with 
     commensurate outlays--for the purpose of assisting the 
     response of needy counties to the international HIV/AIDS 
     pandemic. The Senate also adopted an amendment regarding 
     conservation that affected several budget functions, 
     including the addition of $50 million in BA in every year 
     over the 2002-2011 period in Function 150.
       Conference Agreement.--The Conference Agreement totals 
     $23.2 billion in BA and $19.1 billion in outlays for 2002. 
     For 2002-2011, the Conference Agreement totals $256.6 billion 
     in BA and $213.3 billion in outlays, a reduction of $7.6 
     billion in BA below the request and the House resolution. The 
     BA and outlays for International Affairs equal the amounts of 
     CBO's inflated baseline for 2002-2011, plus the outlays 
     needed in 2002 to address the payment of arrearages to the UN 
     discussed below.
       Regarding discretionary spending, the Conferees strongly 
     support Secretary of State Powell's proposals to reinvigorate 
     the US foreign policy establishment and to expand some 
     international programs. The Senate expressed this support in 
     the form of expanding even further proposed programs to 
     address the HIV/AIDS epidemic in regions, such as Africa.
       Regarding the payment of arrearages to the United Nations, 
     the conferees recognize that Congress has appropriated funds 
     for the payment of arrears to the UN and related agencies in 
     1999 and 2000. Those funds have not been obligated because 
     not all of the reforms required by authorizing statute have 
     been met, in particular the requirement that the United 
     States' assessment for contributions to international 
     peacekeeping activities be reduced to no more than 25 percent 
     of the total. Recognizing the substantial reforms that have 
     been negotiated, the President has proposed legislation, not 
     subject to PAYGO, that would release the funds for 
     obligation. The legislative proposal would increase outlays 
     by $582 million in 2001 and $244 million in 2002. This 
     resolution accommodates the increased spending in its 
     estimates of outlays from prior year's appropriations. The 
     conferees direct that if the legislative proposal is included 
     in authorizing legislation, the cost of such legislation up 
     to the amounts included in the fiscal year 2001 and 2002 
     allocations of the appropriations committee shall not be 
     charged against the allocation of the authorizing committee 
     for purposes of enforcing this resolution.


          function 250: general science, space and technology

       Major Programs in Function.--Under current law, spending 
     for Function 250, General Science, Space and Technology, will 
     total $21.0 billion in BA and $19.7 billion in outlays for 
     2001. The General Science, Space and Technology function 
     consists of funds in two major categories: general science 
     and basic research, and space flight, research, and 
     supporting activities. The general science component includes 
     the budgets for the National Science Foundation [NSF], and 
     the fundamental science programs of the Department of Energy 
     [DOE]. The largest component of the function, nearly two 
     thirds of the total, is for space flight, research, and 
     supporting activities of the National Aeronautics and Space 
     Administration [NASA] (except for NASA's air transportation 
     programs, which are included in Function 400).
       House Resolution.--The resolution establishes levels of 
     $22.2 billion in budget authority [BA] and $21.0 billion in 
     outlays in fiscal year 2002, an increase of 5.7 percent in BA 
     compared with fiscal year 2001. The function totals are 
     $115.9 billion in BA and $112.4 billion in outlays over 5 
     years, and $247.1 billion in BA and $240.2 billion in outlays 
     over 10 years. The resolution assumes $4.5 billion for the 
     National Science Foundation [NSF], a $56-million increase 
     from 2001. It assumes $14.5 billion for the National 
     Aeronautics and Space Administration [NASA], a 2-percent 
     increase over 2001. This total allows for the President's 
     recommendations, including increased funds for International 
     Space Station development and operations; a 64-percent 
     increase over 2001 for NASA's Space Launch Initiative; six 
     space shuttle flights a year; and continued funding for 
     safety improvements in NASA.
       Senate Amendment.--The Senate amendment sets forth $22.8 
     billion in BA and $21.2 billion in outlays in 2002, and 
     $240.1 billion in BA and $232.9 billion in outlays over 2002-
     2011. The total spending within Function 250 was amended by 
     the following two amendments:
       The Senate adopted an amendment that added $1.441 billion 
     in BA and $530 million in outlays in 2002 to the function 
     total proposed by President Bush. The amendment assumed an 
     increase of $674 million for NSF in 2002. The increase is 
     intended to provide additional funding for NSF along a 
     doubling path similar to that of the National Institutes of 
     Health. NASA would also receive an increase of $518 million, 
     and DOE science would increase by $469 million in 2002. The 
     amendment would allow funding for all of the President's 
     initiatives in Function 250, as well as address other needs 
     within the scientific community. The total assumed increase 
     above the 2001 appropriated level is $1.661 billion.
       The Senate also adopted an amendment related to global 
     climate changes that affected several functional categories, 
     including Function 150, 250, 270, 300, and 350. In this 
     function, the amendment reflected an increase in BA of $50 
     million each year for 10 years, for a total increase of $500 
     million in BA from FY2002-2011.
       Conference Agreement.--The Conference Agreement assumes 
     $21.6 billion in BA and $20.7 billion in outlays in 2002, and 
     $236.3 billion in BA and $230.6 billion in outlays over the 
     2002-2011 period.


                          FUNCTION 270: ENERGY

       Major Programs in Function.--Under current law, spending 
     for Function 270 Energy, will total $1.2 billion in BA and 
     -$0.1 billion in outlays for 2001. This Function includes 
     civilian activities of the Department of Energy, the Rural 
     Utilities Service, the power programs of the Tennessee Valley 
     Authority (TVA), and the Nuclear Regulatory Commission (NRC). 
     Mandatory spending in this function contains large levels of 
     offsetting receipts, resulting in net mandatory spending of 
     -$1.9 billion in BA and -$3.2 billion in outlays for 2001. 
     Congress provided $3.1 billion in discretionary BA for 2001.
       House Resolution.--The resolution establishes levels of 
     $835 million in budget authority [BA] and -$234 million in 
     outlays in fiscal year 2002, a decrease of 33 percent in BA 
     compared with fiscal year 2001. The 5-year function totals 
     are $4.4 billion in BA and -$2.2 billion in outlays; and the 
     10-year totals are $14.5 billion in BA and $598 million in 
     outlays. The resolution assumes the President's proposed $1.4 
     billion over 10 years (a $120-million increase) for the 
     Department of Energy's Weatherization Assistance Program to 
     help low-income families who live in poorly insulated housing 
     or have insufficient heating or cooling systems. It also 
     assumes a total of $8 million to support the Northeast 
     Heating Oil Reserve that was established because of low 
     heating oil stocks. Finally, in light of past management and 
     security problems, the resolution accommodates the 
     President's efforts to reform the Department of Energy.
       Senate Amendment.--The Senate amendment sets forth $1.676 
     billion in BA and $.018 billion in outlays in 2002, and 
     $17.162 billion in BA and $2.785 billion in outlays over the 
     2002-2011 period. The Senate amendment assumes the 
     President's budget with the following Senate adopted 
     amendments to discretionary spending: $205 million in BA each 
     year over the 2002-2011 period to reduce greenhouse gas 
     emissions, $450 million in BA in 2002 for Renewable Energy 
     R&D, and $150 million in BA in 2002 for Fossil Energy R&D. 
     The Senate amendment does not assume the President's proposal 
     for the Arctic National Wildlife Refuge (ANWR).
       Conference Agreement.--The Conference Agreement assumes 
     $1.36 billion in BA and -$0.02 in outlays in 2002 and $15.9 
     billion in BA and $2.2 billion in outlays over the 2002-2011 
     period.


          FUNCTION 300: NATURAL RESOURCES AND THE ENVIRONMENT

       Major Programs in Function.--Under current law, spending 
     for Function 300 Natural Resources and the Environment, will 
     total $28.8 billion in BA and $26.4 billion in outlays for 
     2001. This Function includes funding for water resources, 
     conservation and land management, recreation resources, and 
     pollution control and abatement. Agencies with major program 
     activities within the Function include the Environmental 
     Protection Agency (EPA), the Army Corps of Engineers, the 
     National Oceanic and Atmospheric Administration (NOAA), the 
     Forest Service (within the Department of Agriculture), and 
     the Department of the Interior, including the National Park 
     Service, the Fish and Wildlife Service, the U.S. Geological 
     Survey, the Bureau of Land Management and the Bureau of 
     Reclamation, among others.
       House Resolution.--The resolution establishes levels of 
     $26.7 billion in budget authority [BA] and $26.4 billion in 
     outlays in fiscal year 2002, a decrease of 7.3 percent in BA 
     compared with fiscal year 2001. The 5-year function totals 
     are $137.1 billion in BA and $136.3 billion in outlays; and 
     the 10-year totals are $289.3 billion in BA and $285.3 
     billion in outlays. The resolution accommodates the 
     President's recommendation to fully fund the Land and Water 
     Conservation [LWC] Fund at $900 million starting in 2002, an 
     increase of $356 million over 2001. It also provides for an 
     addition of $440 million in 2002 as a down payment on 
     eliminating the National Park Service's deferred maintenance 
     backlog, currently pegged at $4.9 billion. In addition, it 
     assumes more than $1 billion in EPA grants for States and 
     tribes to administer environmental programs, and a total of 
     $3.7 billion in funding for the EPA's Operating Program, 
     which comprises the agency's core

[[Page 7392]]

     regulatory, research, and enforcement activities. The 
     resolution would support substantially reducing the backlog 
     of school repairs and maintenance in the Bureau of Indian 
     Affairs, with the goal of eliminating the backlog within 5 
     years, and assumes increased funding for the Army Corps of 
     Engineers program evaluating proposed development in 
     wetlands. The resolution also accepts the administration's 
     proposed extension of a user fee pilot program in the 
     National Park Service, but does not include increase in Corps 
     of Engineers recreation fees.
       Senate Amendment.--The Senate amendment sets forth $29.6 
     billion in BA and $29.3 billion in outlays in 2002, and 
     $296.4 billion in BA and $292.3 billion in outlays over 2002-
     2011. The Senate amendment assumes the President's budget 
     with the following Senate adopted amendments to discretionary 
     spending: $250 million in BA and $199 million in outlays in 
     2002 to fully fund the Conservation Spending Cap, $44 million 
     in BA in 2002 for water system improvements, $1.3 billion in 
     BA and outlays in 2002 for agriculture conservation programs, 
     $100 million in BA in 2002 to reduce greenhouse gases, $800 
     million in BA in 2002 for wastewater infrastructure 
     improvements, and $100 million in BA in 2002 for the Bureau 
     of Reclamation construction account.
       The Senate amendment assumes mandatory spending of $350 
     million in BA and outlays each year over the 2002-2011 period 
     to address agricultural conservation needs.
       Conference Agreement.--The Conference Agreement assumes 
     $30.4 billion in BA and $28.7 billion in outlays in 2002, and 
     $345.7 billion in BA and $336.8 billion in outlays over the 
     2002-2011 period. The Conference Agreement accepts the Senate 
     position on the extension of the recreational fee 
     demonstration program. The Conference Agreement assumes 
     mandatory agriculture spending of $350 million in BA and 
     outlays in 2002. Section 213 establishes a reserve fund for 
     agriculture that permits the chairman of the appropriate 
     Committee on the Budget to adjust the Agriculture Committee's 
     allocation to accommodate legislation providing, among other 
     things, as much as $350 billion for the period of 2003 
     through 2011 for conservation programs.


                       FUNCTION 350: AGRICULTURE

       Major Programs in Function.--Under current law, spending 
     for Function 350 Agriculture, is estimated to total $26.3 
     billion in budget authority (BA) and $23.7 billion in outlays 
     for FY 2001. This Function includes funding for federal 
     programs intended to promote the economic stability of 
     agriculture through direct assistance and loans to food and 
     fiber producers; provide regulatory, inspection and reporting 
     services for agricultural markets; and promote research as 
     well as education in agriculture and nutrition.
       House Resolution.--The resolution establishes levels of 
     $19.1 billion in budget authority [BA] in fiscal year 2002, 
     and $17.5 billion in outlays. The 5-year function totals are 
     $92.5 billion in BA and $84.7 billion in outlays; and the 10-
     year totals are $172.5 billion in BA and $157.3 billion in 
     outlays. The resolution accommodates the President's 
     recommendations, including: support of United States 
     Department of Agriculture [USDA] food safety activities, 
     including providing 7,600 meat and poultry inspectors; 
     allocation of conservation assistance to 650,000 landowners, 
     farmers, and ranchers; maintaining funding for priority 
     activities in the Forest Service's wildland fire management 
     plan, including hazardous fuels reduction; redirecting USDA 
     research to provide new emphasis in key areas such as 
     biotechnology, the development of new agricultural products, 
     and improved protection against emerging exotic plant and 
     animal diseases as well as crop and animal pests; and 
     expanding overseas markets for American agricultural products 
     by strengthening USDA's market intelligence capabilities and 
     the Department's expertise for resolving technical trade 
     issues with foreign trading partners. The resolution contains 
     two reserve funds that would accommodate additional 
     agricultural needs: a fiscal year 2001 reserve fund that 
     could be used for emergency Agricultural Market Transition 
     payments; and a fiscal year 2002 reserve fund that could 
     accommodate a reauthorization of the Federal Agricultural 
     Improvement and Reform Act or additional emergency relief.
       Senate Amendment.--The Senate amendment revises the 2001 
     spending levels. It increases BA and outlays by $9 billion to 
     $35.3 and $32.7 respectively. For 2002, the Senate assumes 
     $26.2 billion in BA and $24.5 billion in outlays. Over the 
     ten-year period 2002-2011, the Senate assumes a total of 
     $227.9 billion in BA and $212.8 billion in outlays. The 
     Senate adopted mandatory amendments which increased CCC 
     spending by $9 billion in BA and outlays in 2001 and a total 
     of $55 billion in BA and outlays over the 2002-2011 period. 
     The Senate adopted a discretionary amendment which added 
     $0.045 billion in BA and $0.041 billion in outlays in 2002 
     and $0.45 billion in BA and $0.446 billion in outlays over 
     the ten-year period 2002-2011.
       Conference Agreement.--The Conference Agreement revises the 
     2001 spending levels. It increases both BA and outlays by 
     $5.5 billion to $31.8 billion and $29.2 billion respectively. 
     For 2002, the Conference Agreement assumes $26.3 billion in 
     BA and $24.6 billion in outlays. Over the ten-year period 
     2002-2011, the agreement assumes a total of $243.2 billion in 
     BA and $228.0 billion in outlays. The 2001 and 2002 levels 
     assume $12.5 billion of new mandatory BA and outlays. This 
     money would be allocated to the Senate and House agriculture 
     authorizing committees. It is assumed that the additional 
     funds for 2001 and 2002 will address low income concerns in 
     the agriculture sector today. For 2003 to 2011, the 
     Conference Agreement assumes increased mandatory BA and 
     outlays totaling $63 billion to be made available for the 
     extension and revision of the Federal Agriculture Improvement 
     and Reform Act of 1996, which expires in 2002. Fiscal Year 
     2003 monies may be made available for 2002 crop year support. 
     The money would be placed in a reserve fund for the 
     authorizing committees. This function assumes the necessary 
     funding for the modernization plan of USDA's National Animal 
     Disease Center and National Veterinary Services Laboratory in 
     Ames, IA.


               FUNCTION 370: COMMERCE AND HOUSING CREDIT

       Major Programs in Function.--Under current law, spending 
     for Function 370, Commerce and Housing Credit, will total 
     about $3.5 billion in BA and $0.2 billion in outlays for 
     2001. Function 370 includes both on-budget and an off-budget 
     (Postal Service) components, but the budget resolution text 
     includes only the on-budget portion. Both on-budget and total 
     spending are shown, however, in the summary tables contained 
     in this Conference Agreement. This budget function includes 
     funding for discretionary housing programs, such as subsidies 
     for single and multifamily housing in rural areas and 
     mortgage insurance provided by the Federal Housing 
     Administration; off-budget net spending by the Postal 
     Service; discretionary funding for commerce programs, such as 
     international trade and exports, science and technology, the 
     census, and small business; and mandatory spending for 
     deposit insurance activities related to banks, savings and 
     loans, and credit unions.
       House Resolution.--For on-budget spending in this function, 
     the resolution establishes levels of $7.4 billion in budget 
     authority [BA] and $4.4 billion in outlays in fiscal year 
     2002, an increase of 195 percent in BA compared with fiscal 
     year 2001. The on-budget function totals are $54.2 billion in 
     BA and $33.5 billion in outlays over 5 years, and $128.1 
     billion in BA and $84.3 billion in outlays over 10 years. The 
     resolution assumes the President's recommendation that 
     premiums for specified Federal Housing Administration [FHA] 
     programs, such as condominiums, rehabilitation loans, and 
     multifamily loans, are to be increased so that all single-
     family FHA borrowers pay the same premiums, and that the 
     programs operate without the need for a subsidy.
       Senate Amendment.--The Senate amendment does not revise the 
     levels for 2001. For 2002, the resolution provides $7.7 
     billion in BA and $4.5 billion in outlays. Over 10 years, the 
     resolution provides $128.9 billion in BA and $85.0 billion in 
     outlays. The Senate amendment does not include the House's 
     assumption of a reduction in fees charged by the Securities 
     and Exchange Commission. Because of an amendment adopted by 
     the Senate that dropped the President's proposal to charge 
     exam fees for state-chartered banks, the Senate amendment is 
     now comparable to the House resolution in this regard. 
     Further, the Senate amendment reflects the Senate's adoption 
     of an amendment to increase spending on the International 
     Trade Administration by $655 million over 2002-2011 and of 
     another amendment to restore $264 million in funding in 2002 
     for programs of the Small Business Administration to offset 
     cuts that had been proposed in the President's budget.
       Conference Agreement.--The Conference Agreement does not 
     revise the fiscal year 2001 levels. For 2002, the resolution 
     provides $10.2 billion in BA and $6.6 billion in outlays. 
     Over 10 years, it provides $152.4 billion in BA and $108.1 
     billion in outlays.


                      FUNCTION 400: TRANSPORTATION

       Major Programs in Function.--Under current law, spending 
     for Function 400, Transportation, will total $62.1 billion in 
     BA and $51.7 billion in outlays for 2001. The function 
     primarily comprises funding for the Department of 
     Transportation, including ground transportation programs, 
     such as the federal-aid highway program, mass transit, motor 
     carrier safety, and the National Rail Passenger Corporation 
     (Amtrak); air transportation through the Federal Aviation 
     Administration (FAA) airport improvement program, facilities 
     and equipment program, research, and operation of the air 
     traffic control system; water transportation through the 
     Coast Guard and Maritime Administration; the Surface 
     Transportation Board; the National Transportation Safety 
     Board; and related transportation safety and support 
     activities within the Department of Transportation. In 
     addition, funds for air transportation programs under the 
     auspices of NASA are included within this function.
       House Resolution.--The resolution establishes levels of 
     $61.0 billion in BA and $55.6 in outlays in fiscal year 2002; 
     $298.9 billion in BA and $299.8 billion in outlays over 5 
     years; and $608.1 billion in BA and $639.6 billion in outlays 
     over 10 years. The resolution accommodates the President's 
     proposal to fully

[[Page 7393]]

     fund the authorized levels provided for highways ($32.3 
     billion) and transit ($6.7 billion) under the Transportation 
     Equity Act for the 21st Century and for the Federal Aviation 
     Administration's operating ($6.9 billion), capital ($2.9 
     billion), and airport grants ($3.3 billion) programs under 
     the Aviation Investment and Reform Act for the 21st Century. 
     To assist Americans with disabilities in overcoming 
     transportation barriers to work, the resolution assumes the 
     President's $145-million proposal to fund two new programs 
     under his New Freedom Initiative to increase the ability of 
     individuals with disabilities to integrate into the 
     workforce. The resolution also assumes an increase in Coast 
     Guard operating expenses of $250 million above the fiscal 
     year 2002 level recommended by the President for fiscal year 
     2002 and subsequent years. This increase is provided to 
     eliminate Coast Guard vessel and aircraft spare parts 
     problems, to improve personnel training, to fund new 
     Department of Defense entitlements, and to operate drug 
     interdiction assets at optimal levels. (The resolution 
     acknowledged that the Office of Management and Budget's 
     budget submission contained recently identified errors, and 
     indicated conferees would seek to address them.)
       Senate Amendment.--The Senate amendment does not revise the 
     2001 levels. For 2002, the resolution provides $62.2 billion 
     in BA and $56.1 billion in outlays. Over 10 years, the 
     resolution provides $701.6 billion in BA and $645.8 billion 
     in outlays. The Senate amendment assumes the President's 
     budget plus a Senate adopted amendment to add $250 million in 
     BA and outlays for the Coast Guard in 2002.
       Conference Agreement.--The Conference Agreement does not 
     revise the 2001 levels. For 2002, the resolution provides 
     $65.0 billion in BA and $56.2 billion in outlays. Over 10 
     years, it provides $694.8 billion in BA and $655.6 billion in 
     outlays.


            function 450: community and regional development

       Major Programs in Function.--Under current law, spending 
     for Function 450, Community and Regional Development, will 
     total $11.2 billion in BA and $11.4 billion in outlays for 
     2001. This function reflects programs that provide Federal 
     funding for economic and community development in both urban 
     and rural areas. Funding for disaster relief and insurance--
     including activities of the Federal Emergency Management 
     Agency--also is provided in this function.
       House Resolution.--The resolution establishes levels of 
     $10.1 billion in budget authority [BA] and $11.4 billion in 
     outlays in fiscal year 2002, a decrease of 9.8 percent in BA 
     compared with fiscal year 2001. The 5-year totals are $53.2 
     billion in BA and $53.7 billion in outlays; and the 10-year 
     totals are $113.9 billion in BA and $108.8 billion in 
     outlays. Consistent with the President's recommendations, the 
     budget assumes continuation of Community Development Block 
     Grant [CDBG] formula funding at the 2001 level. It also 
     assumes that the Rural Housing and Economic Development 
     Program, begun in 1999, will be terminated due to its 
     duplication of other programs, such as CDBGs.
       Senate Amendment.--For 2002, the Senate amendment sets 
     forth $11.2 billion in BA and $11.6 billion in outlays. Over 
     the 2002-2011 ten year period, it assumes $115.0 billion in 
     BA and $108.0 billion in outlays. The Senate adopted an 
     amendment to increase by $108 million Federal Emergency 
     Management Agency (FEMA) funds in 2002. Also adopted was an 
     amendment to increase clean water grants by $1.0 billion in 
     2002.
       Conference Agreement.--The Conference Agreement does not 
     revise the fiscal year 2001 levels. For 2002, it sets forth 
     $11.9 billion in BA and $11.7 billion in outlays. Over the 
     2002-2011 ten year period, it sets forth $130.7 billion in BA 
     and $122.8 billion in outlays.


   FUNCTION 500: EDUCATION, TRAINING, EMPLOYMENT AND SOCIAL SERVICES

       Major Programs in Function.--Under current law, spending 
     for Function 500, Education, Training, Employment and Social 
     Services, will total $76.9 billion in BA and $69.8. billion 
     in outlays for 2001. This function includes funding for 
     elementary and secondary, vocational, and higher education; 
     education research and other education activities; job 
     training and employment services; aging services; children 
     and families services; adoption and foster care assistance; 
     and funding for the arts and humanities.
       House Resolution.--The resolution establishes levels of 
     $82.1 billion in budget authority [BA] and $76.2 billion in 
     outlays in fiscal year 2002, an increase of 6.8 percent in BA 
     compared with fiscal year 2001. The 5-year function totals 
     are $425.6 billion in BA and $412.7 billion in outlays; and 
     the 10-year totals are $917.7 billion in BA and $891.7 
     billion in outlays.
       The resolution assumes the President's proposal to redirect 
     the $1.2 billion provided for school renovation, first funded 
     in 2001, allowing States to reallocate the 2001 funds among 
     school renovation, technology, or special education. For 
     2002, the budget assumes States can use this funding stream 
     for priorities such as special education, help for low-
     performing schools, or accountability reforms.
       The resolution also accommodates the President's proposed 
     increase in program spending of the Department of Education 
     by $4.6 billion, or 11.5 percent, in fiscal year 2002. It 
     provides sufficient funding in elementary and secondary 
     education for the President's ``No Child Left Behind'' 
     education reform plan. Key initiatives include the following:
       --A tripling of reading education funds, to $900 million in 
     2002, and a total increase in reading education spending of 
     $5 billion over 5 years.
       --The provision of $2.6 billion for States to improve 
     teacher quality through high-quality professional 
     development, recruitment and retention activities.
       --A total of $320 million to help States to develop annual 
     assessments of students, and to establish strong 
     accountability systems; and $69 million to expand State 
     participation in the National Assessment of Education 
     Progress, so that parents, teachers and policymakers can 
     ensure that students are improving.
       --Consolidation and streamlining of existing Federal 
     elementary and secondary education programs.
       The resolution also assumes the following recommendations 
     by the President: an increase of $137 million for the Impact 
     Aid construction program, which currently receives only $12.8 
     million; consolidation and increased funding for teacher 
     training and recruiting; a sum of $175 million to help 
     charter schools acquire, construct, or renovate facilities; 
     an increase for ``character education'' from $9.3 million to 
     $25 million; an increase for the Troops to Teachers program 
     to $30 million; an expansion of the teacher student loan 
     forgiveness program by increasing the loan forgiveness limit 
     from $5,000 to $17,500 for math and science majors who teach 
     those subjects in high-need schools for 5 years.
       To provide fiscal assistance to low-income college 
     students, the budget accommodates the President's proposal to 
     increase the Pell Grant program by $1 billion. This will 
     increase the maximum award for all qualifying students to 
     $3,850.
       The budget also assumes an increase of 6.4 percent in 
     funding for historically black colleges and graduate 
     institutions, and Hispanic serving institutions, with a goal 
     of increasing these programs 30 percent by 2005. The 
     resolution also accommodates the President's proposed 
     expansion of programs to protect abused and neglected 
     children under the Safe and Stable Families Act, and 
     provision of education or training vouchers to children aging 
     out of foster care.
       The resolution creates a $1.25-billion reserve fund for the 
     Individuals with Disabilities Education Act [IDEA] Part B 
     grants to States.
       Senate Amendment.--The Senate Amendment does not revise the 
     2001 levels. For 2002, the Senate provides $111.9 billion in 
     BA and $79.4 billion in outlays. Over the ten-year period 
     2002-2011, the Senate provides a total of $1,265.4 billion in 
     BA, and $1,194.1 billion in outlays.
       The Senate adopted the following amendments to the 
     President's budget:
       --For unspecified education funding, an amendment adding 
     $8.3 billion in discretionary BA and $1.0 billion in outlays 
     in 2002, and adding $242.0 billion in mandatory BA and $223.6 
     billion in outlays over the period 2003-2011.
       --For IDEA (special education), an amendment adding $70.0 
     billion in mandatory BA and $70.0 billion in outlays over the 
     ten-year period 2002-2011.
       --For the Social Services Block Grant, an amendment adding 
     $680 million in mandatory BA and outlays in 2002.
       --For education technology, an amendment adding $628 
     million in discretionary BA and $35 million in outlays in 
     2002.
       --For Impact Aid, an amendment adding $300 million in 
     discretionary BA and $150 million in outlays in 2002.
       --For children's services, an amendment adding $271 million 
     in discretionary BA and $243 million in outlays in 2002.
       --For American history education, an amendment adding $100 
     million in discretionary BA and $25 million in outlays in 
     2002.
       Conference Agreement.--The Conference Agreement revises 
     2001 levels to $77.0 billion in BA and $69.9 billion in 
     outlays. For 2002, the Conference Agreement provides $81.2 
     billion in BA and $76.7 billion in outlays. Over the ten-year 
     period 2002-2011, the Conference Agreement provides a total 
     of $904.0 billion in BA and $887.6 billion in outlays. The 
     Conferees assume that within these aggregate numbers, the 
     Grants to States program under the Individuals with 
     Disabilities Education Act (IDEA) will receive funds of at 
     least $7.59 billion in 2002, and that further additional 
     resources for education should be focused on this program.


                          FUNCTION 550: HEALTH

       Major Programs in Function.--Under current law, spending 
     for Function 550, Health, will total $180.1 billion in BA and 
     $173.0 billion in outlays for 2001. The major programs in 
     this function include Medicaid, the State Children's Health 
     Insurance Program, health benefits for federal workers and 
     retirees, the National Institutes of Health, the Food and 
     Drug Administration, the Health Resources Services 
     Administration, Indian Health Services, the Centers for 
     Disease Control and Prevention, and the Substance Abuse and 
     Mental Health Services Administration.

[[Page 7394]]

       House Resolution.--The resolution establishes levels of 
     $204.0 billion in BA and $201.1 billion in outlays in fiscal 
     year 2002, an increase of 13.3 percent in BA compared with 
     fiscal year 2001. The function totals are $1.20 trillion in 
     BA and $1.19 trillion in outlays over 5 years, and $2.86 
     trillion in BA and $2.84 trillion in outlays over 10 years. 
     Funding in the resolution accommodates the President's 
     proposal to double the National Institutes of Health [NIH] 
     1998 funding level of $13.6 billion by 2003. To accomplish 
     this, the 2002 budget assumes $23.1 billion for NIH, a $2.8 
     billion increase above the 2001 level. To strengthen the 
     health care safety net, the budget assumes the President's 
     $124-million increase for community health centers. The 
     budget also assumes $8.3 billion over 10 years for the 
     enactment of H.R. 600, the Family Opportunity Act of 2001. 
     Under the Act, States would have the option to expand 
     Medicaid coverage for children with special needs, allowing 
     families of disabled children with the opportunity to 
     purchase coverage under the Medicaid program for such 
     children.
       Finally, Function 550 assumes $43.1 billion (fiscal years 
     2002-2005) of the President's proposed Medicare reform, 
     including the Immediate Helping Hand Prescription Drug Plan. 
     (The costs for fiscal years 2006 through 2011 are reflected 
     in Function 570.) The resolution also assumes the outlay 
     effect of the President's proposed refundable health care tax 
     credits, and the impact of the extension of an OBRA 1990 
     provision limiting Department of Veterans Affairs [VA] 
     pensions for Medicaid recipients in nursing homes.
       Senate Amendment.--The Senate amendment revises 2001 BA and 
     outlays by $2.5 billion for the President's Immediate Helping 
     Hand prescription drug program for seniors. The amendment 
     sets forth $216.1 billion in BA and $213.2 billion in outlays 
     in 2002, and $2,938.3 billion in BA and $2,914.4 billion in 
     outlays over 2002-2011.
       The Senate amendment as introduced assumed the President's 
     budget for both mandatory and discretionary spending. The 
     following provisions were added through floor amendments. For 
     mandatory spending, an additional $28 billion was added over 
     2002-2004 for health spending for the uninsured. A reserve 
     fund of $200 million in 2002 and $7.9 billion over 10 years 
     was included for the Family Opportunity Act. In discretionary 
     spending, an additional $700 million was assumed for NIH 
     spending in 2002. The Indian Health Service was increased by 
     $67.3 billion over 10 years. Budget authority for the FDA was 
     increased by $40 million in 2002 and $400 million over 10 
     years. Amendments were adopted to increase funding for 
     graduate medical education at children's hospitals by $50 
     million in 2002 and to provide an additional $136 million in 
     2002 for both graduate medical education and consolidated 
     health centers.
       Conference Agreement.--The Conference Agreement does not 
     revise the 2001 levels. For 2002, the resolution provides 
     $198.8 billion in BA and $196.7 billion in outlays. Over 10 
     years, it provides $2,773.8 billion in BA and $2,757.1 
     billion in outlays.
       Under the Conference Agreement, funding for the President's 
     Immediate Helping Hand prescription drug proposal ($43.1 
     billion over 2002-2005 plus an additional $2.5 billion in 
     2001) was moved to Function 570 (Medicare). The Conference 
     Agreement includes a reserve fund for the Family Opportunity 
     Act of $227 million in 2002 and $8.3 billion over 10 years. 
     The function totals also include a reserve fund of $28 
     billion over 3 years for additional health spending for the 
     uninsured. This reserve fund can be used for either direct 
     spending or revenue changes associated with legislation to 
     improve health insurance coverage. The Conference Agreement 
     also assumes Medicaid Upper Payment Limit savings of $11.7 
     billion over 10 years.


                         FUNCTION 570: MEDICARE

       Major Programs in Function.--Under current law, spending 
     for Function 570, Medicare, will total $217.5 billion in BA 
     and $217.7 billion in outlays for 2001. Medicare provides 
     health insurance coverage for persons over age 65 and 
     qualified disabled workers.
       House Resolution.--The resolution establishes levels of 
     $229.1 billion in budget authority [BA] and outlays in fiscal 
     year 2002, an increase of 5.3 percent in BA compared with 
     fiscal year 2001. The function totals are $1.34 trillion in 
     BA and $1.33 trillion in outlays over 5 years, and $3.31 
     trillion in BA and outlays over 10 years. As proposed in the 
     President's budget, the budget resolution assumes $153 
     billion over 10 years for Medicare Reform, including the 
     Immediate Helping Hand Prescription Drug Plan. This total is 
     shared by Function 550 and Function 570; Function 570 
     incorporates $109.9 billion of the total over 10 years. The 
     budget is consistent with the provisions of the Social 
     Security and Medicare Lock-Box Act of 2001, which stipulates 
     that the Medicare Hospital Insurance [HI] surplus can be used 
     only for debt reduction or Medicare reform. The resolution 
     establishes a reserve fund that could be used to accommodate 
     an expanded Medicare reform/prescription drug proposal. It 
     also establishes a general purpose reserve fund that could 
     address Medicare initiatives.
       Senate Amendment.--The Senate amendment does not revise 
     2001 levels. For 2002, the amendment provides $229.1 billion 
     in BA and outlays. Over 10 years, the amendment provides 
     $3,308.0 billion in BA and $3,307.6 billion in outlays for 
     this function, the same as the House resolution.
       The Senate amendment as introduced assumed the President's 
     budget for both mandatory and discretionary spending. The 
     following provisions were added through floor amendments. A 
     reserve fund was adopted that allows for additional spending 
     for Medicare reform and prescription drugs that goes beyond 
     the $153 billion over 10 years already included in the 
     functional totals and budget aggregates. (This amount 
     includes $43.1 billion in Function 550 and $109.9 billion in 
     Function 570.) The amount allocated from the reserve fund 
     will be determined by the Chairman of the Senate Budget 
     Committee using a Congressional Budget Office cost estimate 
     of the President's Medicare reform proposal or a comparable 
     proposal submitted by the Committee on Finance. In no case 
     will the amount exceed $300 billion over 10 years (including 
     the $153 already reflected in the budget totals). The Senate 
     amendment also includes a reserve fund of $13.7 billion over 
     10 years for additional Medicare home health spending.
       Conference Agreement.--The Conference Agreement does not 
     revise 2001 levels. For 2002, the resolution provides $229.2 
     billion in BA and $229.1 billion in outlays. Over 10 years, 
     the resolution provides $3,516.1 billion in BA and $3,515.7 
     billion in outlays for this function. The Conference 
     Agreement includes a reserve fund of up to $300 billion for 
     Medicare reform and a prescription drug benefit. The amount 
     allocated from the reserve fund will be determined by the 
     Chairmen of the Budget Committees of the House and Senate. 
     The resolution also includes a reserve fund of $13.7 billion 
     over 10 years for additional Medicare home health spending. 
     This reserve fund is to be used to finance the repeal of the 
     15% reduction in Medicare home health payments, currently 
     scheduled to take effect on October 1, 2002.


                     FUNCTION 600: INCOME SECURITY

       Major Programs in Function.--Under current law, spending 
     for Function 600, Income Security, will total $255.9 billion 
     in BA and $256.9 billion in outlays for 2001. This function 
     contains: (1) major cash and in-kind means-tested 
     entitlements; (2) general retirement, disability, and pension 
     programs excluding Social Security and Veterans' compensation 
     programs; (3) federal and military retirement programs; (4) 
     unemployment compensation; (5) low-income housing programs; 
     and (6) other low-income support programs. This last category 
     includes Temporary Assistance to Needy Families (TANF), 
     Supplemental Security Income (SSI), and spending for the 
     refundable portion of the Earned Income Credit (EIC).
       House Resolution.--The resolution establishes levels of 
     $271.5 billion in budget authority [BA] and $272.1 billion in 
     outlays in fiscal year 2002, an increase of 6.1 percent in BA 
     compared with fiscal year 2001. The function totals are $1.47 
     trillion in BA and outlays over 5 years, and $3.21 trillion 
     in BA and $3.20 trillion in outlays over 10 years. Consistent 
     with the President's budget, the resolution accommodates 
     continued State innovation, and the mobilization of private-
     sector, corporate, and faith-based sources, for addressing 
     the needs of low-income Americans--a process that began with 
     the historic 1996 welfare reform law. In particular, the 
     budget proposes a number of initiatives to encourage more 
     charitable giving to community organizations that are 
     effectively helping disadvantaged Americans to improve their 
     lives and increase their families' well-being. Other 
     initiatives are intended to strengthen low-income families 
     and to address the needs of children caught in the Nation's 
     foster care system. The budget provides sufficient funding to 
     renew all expiring public housing contracts, and adds funding 
     for 34,000 new section 8 vouchers. Additionally, the budget 
     provides new funding to increase home-ownership among low-
     income families. Beyond these priorities, the focus in fiscal 
     year 2002 will be to improve management of HUD's programs, 
     several of which have been designated among the General 
     Accounting Office's ``High Risk'' programs, vulnerable to 
     substantial amounts of fraud and mismanagement.
       Other assumptions of the resolution are the following:
       --Providing $1.4 billion for Low-Income Home Energy 
     Assistance Program [LIHEAP] funding to help low-income 
     families heat their homes.
       --Funding the Special Supplemental Nutrition Program for 
     Women, Infants and Children [WIC] at 7.25 million individuals 
     per month, maintaining current program level.
       --Maintaining current law policies for the Food Stamp 
     Program, which will result in $20 billion in outlays for 
     benefits and program administration in fiscal year 2002.
       The resolution also accommodates the outlay effects related 
     to the President's refundable tax proposals.
       Senate Amendment.--The Senate amendment does not revise 
     2001 levels. For 2002, the resolution provides $278.8 billion 
     in BA and $274.9 billion in outlays. Over 10 years, the 
     resolution provides $3,210.0 billion in BA and $3,194.5 
     billion in outlays. The Senate adopted three amendments to 
     the President's

[[Page 7395]]

     budget. In mandatory funds for 2002, the Senate amendment 
     includes $319 million to extend TANF supplemental grants. In 
     discretionary funds for 2002, the Senate amendment includes 
     an additional $2.6 billion for Low Income Home Energy 
     Assistance and $870 million for child care. The remaining 
     difference between the House resolution and the Senate 
     amendment is due to the Senate's treatment of advance 
     appropriations and the greater amount of BA and outlays 
     provided in the House resolution for the refundable portion 
     of tax credits.
       Conference Agreement.--The Conference Agreement does not 
     revise 2001 levels. For 2002, the resolution provides $273.8 
     billion in BA and $272.1 billion in outlays. Over 10 years, 
     it provides $3,222.5 billion in BA and $3,206.7 billion in 
     outlays. The Conference Agreement adopts the Senate amendment 
     regarding TANF supplemental grants.


                     FUNCTION 650: SOCIAL SECURITY

       Major Programs in Function.--Under current law, spending 
     for Function 650, Social Security, will total $435.2 billion 
     in BA and $433.1 billion in outlays for 2001. This function 
     includes Social Security benefits and administrative 
     expenses. Under provisions of the Budget Enforcement Act, 
     Social Security trust funds are off-budget. The figures below 
     reflect the on-budget portions of this function, primarily 
     payments from the general fund to the trust funds to credit 
     the trust funds for income taxes collected on Social Security 
     benefits. Both on-budget and off-budget spending are shown, 
     however, in the summary tables contained in the statement of 
     managers accompanying the Conference Agreement.
       House Resolution.--For on-budget spending in this function, 
     the resolution establishes levels of $11.0 billion in budget 
     authority [BA] and outlays in fiscal year 2002, an increase 
     of 12.2 percent in BA compared with fiscal year 2001. The on-
     budget function totals are $62.8 billion in BA and $62.7 
     billion in outlays over 5 years, and $150.9 billion in BA and 
     outlays over 10 years. The resolution supports the 
     President's approach to Social Security reform through the 
     following specific measures:
       --It assumes provisions of the Social Security and Medicare 
     Lock-Box Act of 2001 (H.R. 2), recently passed by the House, 
     which prohibits using Social Security surpluses for any 
     purpose other than debt reduction or Social Security reform.
       --It assumes the President's proposal to provide $7.7 
     billion for the SSA, an increase of $456 million, or 6.3 
     percent, above fiscal year 2001. The increase will allow SSA 
     to process 100,000 more initial disability claims in 2002 
     than in 2001.
       --It makes no changes in current Social Security benefits 
     or taxes.
       Senate Amendment.--The Senate amendment does not revise 
     2001 on-budget totals of $9.8 billion in BA and outlays. For 
     2002, the resolution assumes $10.9 billion in both BA and 
     outlays. Over 10 years, the resolution provides $140.0 
     billion in both BA and outlays.
       The President's budget assumes no changes to Social 
     Security benefits. Indirectly, however, the tax cut proposal 
     would decrease both on-budget spending and the trust fund 
     surplus. The President's tax proposal would reduce marginal 
     income rates, thereby decreasing the amount of income taxes 
     paid on Social Security benefits. This reduces on-budget 
     payments from the general fund to the trust funds to credit 
     the trust funds for income taxes paid on Social Security 
     benefits by $11 billion over 10 years. The difference between 
     the House resolution and the Senate amendment is that the 
     House holds the Social Security trust funds harmless for the 
     impact of the tax cut.
       Conference Agreement.--The Conference Agreement does not 
     revise 2001 on-budget totals. The Senate recedes to the House 
     and agrees to hold the trust funds harmless for the impact of 
     any tax cuts resulting from this agreement. For 2002, the 
     Conference Agreement assumes $11.0 billion in both BA and 
     outlays. Over 10 years, it provides $150.9 billion in BA and 
     $150.9 billion in outlays.


              FUNCTION 700: VETERANS BENEFITS AND SERVICES

       Major Programs in Function.--Under current law, spending 
     for Function 700 Veterans Benefits and Services, will total 
     $46.7 billion in BA and $45.9 billion in outlays for 2001. 
     This budget function includes income security needs of 
     disabled veterans, indigent veterans, and survivors of 
     deceased veterans through compensation benefits, pensions, 
     and life insurance programs. Major education, training, and 
     rehabilitation and readjustment programs include the 
     Montgomery GI Bill, the Veterans Educational Assistance 
     program, and the Vocational Rehabilitation and Counseling 
     program. Veterans can also receive guarantees on home loans. 
     Roughly half of all spending in this function is for the 
     Veterans Health Administration, which is comprised of 
     hospitals, nursing homes, domiciliaries, and outpatient 
     clinics.
       House Resolution.--The resolution establishes levels of 
     $52.3 billion in BA and $51.6 billion in outlays in fiscal 
     year 2002, an increase of 12 percent in BA compared with 
     fiscal year 2001. The function totals are $278.7 billion in 
     BA and $276.5 in outlays over 5 years, and $594.0 billion in 
     BA and $589.8 billion in outlays over 10 years.
       The budget assumes the enactment of veterans' burial 
     benefits enhancements in H.R. 801, the Veterans' Opportunity 
     Act of 2001. It also assumes increases in mandatory spending 
     for Montgomery GI Bill education benefits improvements. The 
     budget assumes the permanent extension of several expiring 
     provisions of existing law pertaining to veterans benefits. 
     These include IRS income verification for means-tested 
     veterans and survivor benefits; limiting VA pension to 
     Medicaid recipients in nursing homes; and continuing current 
     housing loan fees.
       Senate Amendment.--The Senate amendment assumes $53.8 
     billion in BA and $53.1 billion in outlays in 2002, and 
     $600.6 billion in BA and $596.2 billion in outlays over 2002-
     2011. The Senate adopted two amendments to increase funding 
     for Veterans Medical Care. The first amendment added $1.718 
     billion in BA each year from 2002 to 2011 and the second 
     amendment added, $967 million in BA for 2002.
       Conference Agreement.--For 2002, it sets forth $51.5 
     billion in BA and $50.9 billion in outlays. Over 10 years, it 
     provides $605.4 billion in BA and $600.9 billion in outlays.
       The agreement also assumes an increase in funding in 
     mandatory spending for improvements to the Montgomery GI Bill 
     and veterans burial benefits. The agreement also assumes an 
     extension of several expiring provisions of the Omnibus 
     Budget Reconciliation Act of 1990.


                FUNCTION 750: ADMINISTRATION OF JUSTICE

       Major Programs in Function.--Under current law, spending 
     for Function 750, Administration of Justice, will total $30.6 
     billion in BA and $30.0 billion in outlays for 2001. This 
     function provides funding for federal law enforcement 
     activities. These activities include criminal investigations 
     by the Federal Bureau of Investigation and the Drug 
     Enforcement Administration, and border enforcement and the 
     control of illegal immigration by the Customs Service and the 
     Immigration and Naturalization Service. Also funded through 
     this function are the federal courts, federal prison 
     operation and construction, and criminal justice assistance.
       House Resolution.--The resolution establishes levels of 
     $30.9 billion in budget authority [BA] and $30.3 billion in 
     outlays in 2002, an increase of 1.0 percent in BA compared 
     with fiscal year 2001. The function totals are $166.6 billion 
     in BA and $166.5 billion in outlays over 5 years, and $359.3 
     billion in BA and $356.8 billion in outlays over 10 years. 
     The resolution accommodates the President's proposals to 
     increase funding for the Drug Enforcement Agency by 9 
     percent; the Federal Bureau of Investigation by 8 percent; 
     the Federal Bureau of Prisons by 8 percent; the U.S. 
     Attorneys by 7 percent; and to hire and train 550 new Border 
     Control agents.
       Senate Amendment.--For 2002, the resolution sets forth 
     $32.4 billion in BA and $31.8 billion in outlays. Over the 
     2002-2011 ten year period, it sets forth $360.8 billion in BA 
     and $358.3 billion in outlays. These levels reflect adoption 
     of an amendment to increase Department of Justice state and 
     local law enforcement assistance grant programs by $1.5 
     billion in 2002.
       Conference Agreement.--The Conference Agreement sets forth 
     $32.4 billion in BA and $31.4 billion in outlays for 2002. 
     Over the 2002-2011, the agreement sets forth $378.5 billion 
     in BA and $374.8 billion in outlays.


                    FUNCTION 800: GENERAL GOVERNMENT

       Major Programs in Function.--Under current law, spending 
     for Function 800 General Government, will total $16.3 billion 
     in BA and $16.1 billion in outlays for 2001. This function 
     consists of the activities of the Legislative Branch, the 
     Executive Office of the President, U.S. Treasury fiscal 
     operations (including the Internal Revenue Service), 
     personnel and property management, and general purpose fiscal 
     assistance to states, localities, and U.S. territories.
       House Resolution.--The resolution establishes levels of 
     $16.7 billion in budget authority [BA] and $16.3 billion in 
     outlays in fiscal year 2002, an increase of 2.2 percent in BA 
     compared with fiscal year 2001. The function totals are $84.2 
     billion in BA and $83.0 billion in outlays over 5 years, and 
     $176.7 billion in BA and $173.4 billion in outlays over 10 
     years.
       Senate Amendment.--The Senate amendment does not revise the 
     2001 levels. For 2002, the resolution assumes $16.6 billion 
     in BA and $16.3 outlays. Over 10 years, the resolution 
     provides $176.7 billion in BA and $173.4 billion in outlays.
       Conference Agreement.--The Conference Agreement does not 
     revise the 2001 levels. For 2002, the Conference Agreement 
     assumes $16.5 billion in both BA and $16.2 billion outlays. 
     Over 10 years, it provides $183.2 billion in BA and $179.5 
     billion in outlays.


                       FUNCTION 900: NET INTEREST

       Major Programs in Function.--Under current law, on-budget 
     spending for Function 900, Net Interest, will total $254.8 
     billion in BA and outlays for 2002. Net interest is the 
     interest paid for the federal government's borrowing minus 
     the interest income received by the federal government. Net 
     interest includes both on-budget and off-budget components, 
     but the budget resolution text includes only the on-budget 
     portion. Both on-budget and total interest spending are 
     shown, however, in the summary tables contained in the 
     statement of managers accompanying the Conference Agreement. 
     Interest

[[Page 7396]]

     is a mandatory payment, with no discretionary component.
       House Resolution.--The accounting of net interest in the 
     budget includes only the on-budget component of interest 
     spending. This spending declines at a relatively steady but 
     moderate pace from $274 billion in 2001 to $219 billion in 
     2011. But even this decline understates--by significant 
     amounts--the benefits to taxpayers of the debt reduction 
     incorporated in this budget. When off-budget interest is 
     taken into account (the increasing Federal credit accruing to 
     the Social Security Trust Fund surplus in the form of 
     government IOUs, and entered as negative spending), the 
     overall net interest spending of the Federal Government is 
     being virtually eliminated. It declines from $205 billion in 
     2001 to just $21 billion. in 2011.
       Senate Amendment.--The Senate amendment revises the 2001 
     on-budget levels to $275.5 billion in BA and outlays. For 
     2002, it sets forth on-budget levels of $262.1 billion in BA 
     and outlays. Over ten years, it provides on-budget amounts of 
     $2,410.0 billion in BA and outlays.
       Conference Agreement.--The Conference Agreement revises the 
     2001 on-budget levels to $275.5 billion in BA and outlays. 
     For 2002, it sets forth on-budget levels of $262.1 billion in 
     BA and outlays. Over ten years, it provides on-budget amounts 
     of $2,410.0 billion in BA and outlays.


                        FUNCTION 920: ALLOWANCES

       Major Programs in Function.--Under current law, spending 
     for Function 920, Allowances, will total -$0.5 billion in BA 
     and -$0.3 billion in outlays for 2001. This function usually 
     displays the budgetary effects of proposals that cannot be 
     easily distributed across other budget functions. In the case 
     of 2001, it reflects the 0.22% across-the-board cut that was 
     enacted in the Omnibus Consolidated and Emergency 
     Supplemental Appropriations for Fiscal Year 2001. CBO could 
     not display those cuts by account and by function until the 
     Administration could display how the cuts would be 
     implemented in the release of the full President's budget 
     request.
       In past years, Function 920 has also included total savings 
     or costs from proposals associated with emergency spending or 
     proposals contingent on possible future events that have 
     uncertain chances of occurring. Most recently, in the Senate 
     amendment and Conference Agreement on budget resolutions for 
     both 2001 and 2002, the figures expressed in the budget 
     resolution text (as well as the summary tables) for all other 
     budget functions reflect the total level of discretionary 
     spending contemplated by the budget resolution (e.g., as 
     described in section 203 of the Conference Agreement on the 
     2002 budget). These levels are higher than the statutory cap 
     on discretionary spending in place for those years. But 
     because a budget resolution would be out of order in the 
     Senate if it contains a level of discretionary spending 
     higher than the statutory cap, the figures in the budget 
     resolution text in Function 920 have had to reflect a 
     negative entry that reduces the net level of discretionary 
     spending from the contemplated level (as aggregated across 
     all other budget functions) to the statutory level. The 
     summary tables, however, omit this negative entry for 
     Function 920 so that their aggregates reflect the levels 
     ultimately intended by the resolution.
       House Resolution.--For discretionary spending, the budget 
     resolution calls for $5.0 billion in budget authority [BA] 
     and $1.8 billion in outlays in fiscal year 2002. The 5-year 
     spending totals are $29.1 billion in BA and $22.4 billion in 
     outlays; and the 10-year totals are $64.0 billion in BA and 
     $55.5 billion in outlays. There is no mandatory spending in 
     this function.
       The funds identified constitute primarily a set-aside fund 
     for unanticipated emergency needs during the fiscal year.
       Senate Amendment.--The Senate amendment revises the 2001 
     levels to $80.5 billion in BA and $80.7 billion in outlays in 
     2001, reflecting the Senate's adoption of an amendment to 
     further increase a tax refund for that year. For 2002, the 
     resolution sets forth -$6.1 billion in BA and -$8.6 billion 
     in outlays. The resolution provides -$15.9 billion in BA and 
     -$23.1 billion in outlays over 2002-2010. These figures (as 
     shown in the summary tables) reflect the effect of 13 
     amendments adopted by the Senate that sought to suggest an 
     increase in spending in other functions and that appeared to 
     ``offset'' such increased spending by bookkeeping the same 
     amount with a negative value in Function 920. These figures 
     do not include the entry necessary to reduce the overall 
     discretionary level to the statutory cap.
       Conference Agreement.--The Conference Agreement revises the 
     2001 levels to $84.5 billion in BA and $84.7 billion in 
     outlays. For 2002, the resolution provides -$6.0 billion in 
     BA and -$3.7 billion in outlays. Over 10 years, it provides 
     -$66.8 billion in BA and -$62.6 billion in outlays.


            FUNCTION 950: UNDISTRIBUTED OFFSETTING RECEIPTS

       Major Programs in Function.--Under current law, receipts in 
     Function 950, Undistributed Offsetting Receipts, will total 
     about $46.2 billion (negative BA and outlays) for 2001. 
     Function 950 includes both on-budget and off-budget 
     components, but the budget resolution text includes only the 
     on-budget portion. Both on-budget and total receipts are 
     shown, however, in the summary tables contained in this 
     Conference Agreement. This function records offsetting 
     receipts (receipts, not federal revenues or taxes, that the 
     budget shows as offsets to spending programs) that are too 
     large to record in other budget functions. Such receipts are 
     either intrabudgetary (a payment from one federal agency to 
     another, such as agency payments to the retirement trust 
     funds) or proprietary (a payment from the public for some 
     type of business transaction with the government). The main 
     types of receipts recorded as ``undistributed'' in this 
     function are: the payments federal agencies make to 
     retirement trust funds for their employees, payments made by 
     companies for the right to explore and produce oil and gas on 
     the Outer Continental Shelf, and payments by those who bid 
     for the right to buy or use the public property or resources, 
     such as the electromagnetic spectrum.
       House Resolution.--The resolution calls for -$42.3 billion 
     in budget authority [BA] and outlays in fiscal year 2002, a 
     decrease of 10.6 percent in BA compared with fiscal year 
     2001, (or an increase of 10.6 percent in receipts compared 
     with fiscal year 2001). The 5-year function totals are 
     -$239.8 billion in BA and outlays; and the 10-year totals are 
     -$492.3 billion in BA and outlays.
       These totals comprise entirely of mandatory spending. There 
     is no discretionary spending in this function.
       The resolution does not assume lease bonuses from the 
     Arctic National Wildlife Refuge or an analog spectrum license 
     fee or other spectrum offsets. It also assumes permanent 
     extension of the Balanced Budget Act [BBEDCA] provision that 
     increased, by 1.51 percentage points, Federal agency 
     contributions to the Civil Service Retirement and Disability 
     Trust Fund [CSRDF] on behalf of their CSRS-participant 
     employees. That provision had been scheduled to sunset after 
     fiscal year 2002.
       Senate Amendment.--The Senate amendment does not revise the 
     2001 levels. For 2002, the resolution provides -$38.8 billion 
     in BA and outlays. Over 10 years, the resolution provides 
     -$495.7 billion in BA and outlays. The Senate amendment is 
     the same as the House resolution, except that it reflects 
     both the President's proposals to delay certain spectrum 
     auctions and to impose a fee on broadcasters using spectrum 
     channels for analog broadcasts to encourage the transition to 
     digital television.
       Conference Agreement.--The Conference Agreement does not 
     revise the 2001 levels. For 2002, the resolution provides 
     -$38.8 billion in BA and outlays. Over 10 years, it provides 
     -$494.1 billion in BA and outlays. The conferees agree to the 
     President's proposal to delay certain spectrum auctions that 
     was assumed in the Senate amendment, but do not agree to the 
     President's proposal for an analog lease fee.


                                REVENUES

       Federal revenues are taxes and other collections from the 
     public that result from the government's sovereign or 
     governmental powers. Federal revenues include individual 
     income taxes, corporate income taxes, social insurance taxes, 
     excise taxes, estate and gift taxes, custom duties and 
     miscellaneous receipts (which include deposits of earnings by 
     the Federal Reserve System, fines, penalties, fees for 
     regulatory services, and others).
       Under current law, federal tax collections are projected to 
     total $28 trillion over the next ten years. This year, total 
     revenues are projected to equal 20.7 percent of GDP, slightly 
     below the World War II record level of 20.9 percent. Over the 
     projection period 2002-2011, under current law, total 
     revenues are projected to average 20.3 percent of GDP, far 
     above historical averages for any time period, including 
     times of war.
       House Resolution.--The House resolution provides for $1.62 
     trillion in tax reduction over the next 10 years. This level 
     would accommodate the President's priority tax cut proposals: 
     reducing marginal tax rates, doubling the per-child tax 
     credit; providing relief from the marriage penalty, and 
     providing death tax relief. It also provides for additional 
     tax reduction, subject to the discretion of the Committee on 
     Ways and Means. Such measures might include charitable 
     deduction expansion; refundable tax credits for private 
     health insurance; Education Savings Account expansion and 
     other education provisions; Individual Retirement Account 
     [IRA] increases and other pension reform; and permanent 
     extension of the research and development [R&D] tax credit. 
     (The refundable elements of the President's tax proposals, 
     which are treated as spending, appear in the functional areas 
     to which they apply.) It also assumes, but does not 
     reconcile, the revenue effect of a proposed reduction in fees 
     levied by the Securities and Exchange Commission, and a 
     requirement that the Federal Reserve pay interest on deposits 
     at the Reserve. The resolution also establishes a reserve 
     fund for further tax reduction should the Congressional 
     Budget Office's summer update indicate additional non-Social 
     Security surpluses. The reserve fund could allow for measures 
     such as extension of Medical Savings Accounts, repeal of 
     transportation deficit reduction fuel taxes, and reduction of 
     the capital gains rate.
       Senate Amendment.--The Senate amendment revises the 2001 
     on-budget revenue level

[[Page 7397]]

     to $1,630.3 billion. It sets forth on-budget revenues of 
     $1,644.8 billion in 2002, and $20,007.1 billion over the ten 
     years 2002-2011. The Senate amendment assumes a tax 
     reduction, relative to the CBO baseline, of $1,188.1 billion 
     over the period 2002-2011, about $450 billion less than the 
     tax relief assumed in the House resolution. The Senate 
     amendment includes an allowance (in Function 920) for a 
     surplus refund of up to $85 billion in 2001. The refund 
     represents about 88 percent of the $96 billion non-Social 
     Security, non-Hospital Insurance surplus projected under 
     current law for 2001. The tax relief assumed in the Senate 
     amendment represents just four percent of all projected 
     revenues over the next ten years, and less than one percent 
     of GDP over the next ten years.
       Conference Agreement.--The Conference Agreement includes 
     language for reconciliation of tax relief including a surplus 
     refund of $1.350 trillion over the period 2001-2011. (see 
     description of reconciliation). In addition, the Conference 
     Agreement accepts the House position to assume a one-year 
     extension of tax provisions expiring in 2001, legislation to 
     reduce SEC fees, and legislation to permit the Federal 
     Reserve System to pay interest on reserve balances. These 
     three provisions would not be reconciled, and are assumed to 
     reduce revenues by $19 billion over ten years. The total 
     amount of tax relief, surplus refund, and other revenue 
     changes assumed in the Conference Agreement, both reconciled 
     and non-reconciled, is $1.369 trillion over the 2001-2011 
     period.

                              Debt Levels

       Debt held by the public peaked at $3.773 trillion in 1997. 
     At the end of 2001, debt held by the public is projected to 
     be $3.243 trillion, $530 billion lower than just four years 
     ago. This is a reduction of 14 percent from peak levels.
       The table on the following page shows the levels of debt 
     held by the public resulting from the policies assumed in the 
     Conference Agreement. The policies assumed in the Conference 
     Agreement result in a reduction in debt in every year through 
     2011 and total debt reduction of $2.425 trillion from the end 
     of 2001 through the end of 2011. Debt held by the public 
     falls to 4.8 percent of GDP, its lowest level since 1916, 
     prior to World War I.
       The Conference Agreement proposals result in retiring the 
     maximum amount of public debt that can reasonably be retired. 
     Under the budget resolution, the debt remaining in 2010 and 
     2011 is considered (by CBO's estimates) to be the minimum 
     debt level. It consists mostly of marketable bonds that will 
     not have matured and that will be too expensive to buy back, 
     savings bonds, and special bonds for State and local 
     governments.

                                                                                     Debt Held by the Public
                                                                                          [$ billions]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                 2001        2002        2003        2004        2005        2006        2007        2008        2009        2010        2011
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Debt Held by the Public.....................................     3,243.2     3,037.9     2,810.7     2,563.6     2,303.1     2,022.5     1,702.9     1,350.0       947.3       878.0       818.0
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

                      Reconciliation Instructions

       Under section 310(a) of the Budget Act, the budget 
     resolution may include directives to the committees of 
     jurisdiction to make revisions in law necessary to accomplish 
     a specified change in spending or revenues. If the resolution 
     includes directives to only one committee of the House or 
     Senate, then that committee is required to directly report to 
     its House legislative language of its design that would 
     implement the spending or revenue changes provided for in the 
     resolution. Any bill considered pursuant to a reconciliation 
     instruction is subject to special procedures set forth in 
     sections 310 and 313 of the Budget Act.
     House resolution
       Section 4 provides for five different reconciliation bills. 
     It contains directives to the Ways and Means Committee to 
     report three tax-only bills to the floor by May 2, May 23, 
     and June 20 of fiscal year 2001. Additional directives to the 
     Ways and Means and the Energy and Commerce Committees are 
     designed to allow those committees to reform the Medicare 
     program and provide a prescription drug benefit. The 
     Medicare-related legislation must be submitted to the House 
     Budget Committee no later than July 24, 2001. An additional 
     omnibus bill will be composed of submissions from six 
     different committees that will contain both spending and 
     revenue changes. These Committees are required to submit 
     their recommendations to the Budget Committee by September 
     11, 2001.
     Senate amendment
       The Senate amendment provides a reconciliation instruction 
     to the Senate Committee on Finance to reduce revenues for the 
     period of fiscal years 2001 through 2011 by not more than the 
     amount of revenue reductions set out in the revenue 
     aggregates in the resolution. It also instructs the Committee 
     on Finance to increase outlays by not more than $60 billion 
     for the period of fiscal years 2001 through 2011. This 
     reconciliation instruction was added by an amendment offered 
     by Senator Domenici. The reduction in the revenue aggregates 
     plus the $60 billion in outlays would permit up to $1.248 
     trillion in ``tax relief'' over this 11-year period.
     Conference agreement
       The Conference Agreement provides a reconciliation 
     instruction to the Senate Committee on Finance to report by 
     May 18, 2001, legislation to reduce revenues by not more than 
     $1.25 trillion and increase outlays by not more than $100 
     billion for the period of fiscal years 2001 through 2011 
     provided that $100 billion of the revenues and outlays 
     changes shall only be available for 2001 and 2002. The 
     Conference Agreement also provides a reconciliation 
     instruction to the House Committee on Ways and Means to 
     report legislation by May 18, 2001 to reduce revenues by not 
     more than $1.250 trillion for the period of fiscal years 2001 
     through 2011 and to increase outlays by not more than $100 
     billion for the period of fiscal years 2001 through 2011. The 
     total reconciliation instruction to both the House Committee 
     on Ways and Means and the Senate Committee on Finance is for 
     $1.350 trillion over the period 2001 through 2011.

                              allocations

       As required in section 302 of the Budget Act, the joint 
     statement of the managers includes an allocation, based on 
     the Conference Agreement, of total budget authority and total 
     budget outlays among each of the appropriate House and Senate 
     committees.
       The allocations are as follows:

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       The Conferees agree that it would be ideal to enforce this 
     resolution using CBO's best cost estimates based on its most 
     recent baseline. Typically, CBO prepares a preliminary 
     baseline published in January and then a revised baseline in 
     March that incorporates information CBO learns in 
     reestimating the President's budget, which is usually 
     released in early February. Almost always, the budget 
     resolution is based on CBO's revised baseline. This year, 
     however, the President's budget was not released until April 
     9, so CBO will not release its full analysis of the 
     President's budget and accompanying revised baseline until 
     May 18. Thus, this budget resolution is still based on CBO's 
     preliminary baseline. Therefore the Conferees intend that the 
     Chairmen of the Committees on the Budget will enforce this 
     resolution (pursuant to Section 312 of the Budget Act) with 
     respect to appropriation measures consistent with the 
     assumptions underlying CBO's revised baseline only after CBO 
     publishes its analysis of the President's budgetary proposals 
     for fiscal year 2002 including its revised baseline and only 
     to reflect the revised baseline, and may use CBO's estimates 
     (that are consistent with the revised baseline) for purposes 
     of enforcing the budget resolution.
       The Conferees also agree that transfers from non-budgetary 
     governmental entities such as the Federal Reserve Banks shall 
     not be used to offset increased on-budget spending when such 
     transfers produce no real budgetary effects. It has long been 
     the view of both Committees on the Budget that transfers of 
     Federal Reserve surpluses to the Treasury are not valid 
     offsets for increased spending. Nonetheless, such transfers 
     have been legislated in the past--as recently as the fall of 
     1999. The Conferees agree to a scoring rule to make clear 
     that such transfers will not be taken into account when 
     determining compliance with the various Budget Act and Senate 
     paygo points of order.

                  Rulemaking and Budgetary Procedures


                         enforcement procedures

       The Budget Act contains procedures for the enforcement of 
     the levels contained therein. In addition, many budget 
     resolutions have contained additional enforcement procedures. 
     In general, enforcement is accomplished by setting forth new 
     scoring rules or new points of order which can be raised by 
     any member of either House. Subtitle A of title II of the 
     Conference Agreement contains 4 such provisions.
     House resolution
       Section 5: Reserve Fund for Emergencies
       Section 5 modifies Congressional procedures related to 
     emergency spending in fiscal year 2001. It establishes a 
     separate allocation to the Appropriations Committee for 
     emergencies of $5.6 billion. In lieu of the current practice 
     of automatically increasing the appropriate levels in the 
     budget resolution for designated emergencies, it permits the 
     Appropriations Committee to make such adjustments only if 
     emergency-designated appropriations meet a statutory 
     definition of an emergency and key disaster accounts have 
     been fully funded.
       Section 13: Restrictions on Advance Appropriations
       Section 13 establishes a scoring rule and budgetary control 
     designed to limit advance appropriations. It provides that 
     for purposes of enforcing the budget resolution, advance 
     appropriations are to be scored in the year in which they are 
     enacted. Under current scorekeeping conventions, 
     appropriations are scored in the year in which they are 
     available for obligation. An exception is provided for 
     programs for which advance appropriations do not exceed a 
     specified level that will be identified in the joint 
     statement of managers.
       Section 12: Compliance with Section 13301
       Section 12 provides the House the authority to include the 
     administrative expenses related to Social Security in the 
     302(a) allocation to the Appropriations Committee. As part of 
     an agreement between the House and Senate Budget Committees 
     in 2000, the administrative expenses of the Social Security 
     trust funds are no longer included in the budget resolution. 
     The Budget Committees, however, continue to include these 
     expenses in the 302(a) allocations of the Appropriations 
     Committee because they are controlled through the annual 
     appropriations process. Absent the authority provided under 
     section 12, these expenses could not be included in the 
     302(a) allocations because the allocations must be consistent 
     with the amounts set forth in the budget resolution.
     Senate amendment
       Section 201: Restrictions on Advance Appropriations
       The Senate amendment contains a new scoring rule with 
     respect to advance appropriations. The new rule provides that 
     both the BA and the outlays for an advance appropriation will 
     be scored for the budget year regardless of the fiscal year 
     in which the funds actually become available for obligation. 
     An exception is provided for advance appropriations which 
     provide full funding for a capital project. The exception is 
     intended to apply to the federal buildings fund within the 
     General Services Administration and not as a means of 
     providing incremental funding to other federal acquisitions.
       Section 202: Mechanism for implementing increase of fiscal 
           year 2002 discretionary spending limits
       The Senate amendment contains a mechanism virtually 
     identical to that which was included in section 206 of the 
     fiscal year 2001 budget resolution. The Senate amendment 
     provides the Chairman of the Senate Committee on the Budget 
     the authority to increase the section 302(a) allocation to 
     the Committee on Appropriations after the statutory 
     discretionary spending limit for fiscal year 2002 (set forth 
     in section 251 of the Balanced Budget and Emergency Deficit 
     Control Act of 1985) has been amended. Such adjustment is 
     limited to the levels set forth in the mechanism. As passed 
     by the Senate, the allocation may be adjusted up to $689.2 
     billion in BA and $666.5 in outlays for the general 
     discretionary category, $28.5 billion in outlays for the 
     highway category, $5.3 billion in outlays for the mass 
     transit category, and $1.76 billion in BA and $1.38 in 
     outlays for the conservation category. Note that with an 
     exception for a necessary adjustment within Function 920 (to 
     bring the Senate-passed resolution in compliance with section 
     312(b) of the Budget Act) these numbers are intended to 
     reflect the sum of the functional totals. However due to 
     mathematical inconsistency within some of the amendments 
     adopted during the Senate debate of the resolution, this may 
     not be the case.
       Section 207: Limitation on consideration of amendments 
           under reconciliation and a budget resolution
       The Senate amendment contains language which modifies the 
     time for debate on budget resolutions, reconciliation bills, 
     and amendments thereto. The language was added by an 
     amendment offered by Senator Byrd. The Senate amendment 
     modifies the procedural rules as follows: (1) limits overall 
     debate time (including the offering of amendments) for both 
     budget resolutions and reconciliation bills to 50 hours 
     (current rules permit 50 hours for budget resolutions and 20 
     for reconciliation bills); (2) eliminates the non-debatable 
     motion to reduce the time, so that time may only be reduced 
     by unanimous consent; (3) reduces time on 1st degree 
     amendments from 2 hours to 1 hour, and reduces time on 
     amendments to amendments (and debatable motions and appeals) 
     from 1 hour to 30 minutes; (4) requires that 1st degree 
     amendments be offered or filed with the Clerk prior to the 
     end of the 10th hour of consideration and that 2nd degree 
     amendments be offered or filed with the Clerk prior to the 
     end of the 20th hour of consideration; (5) requires that 
     after 40 hours of consideration, the resolution be set aside 
     for 1 calendar day; (6) provides that waiver or appeal from 
     these new rules requires 60 votes in the Senate.
     Conference Agreement
       Section 201: Restrictions on Advance Appropriations--House
       Section 201 of the Conference Agreement adopts a limitation 
     on advance appropriations similar to the approach taken in 
     last year's budget resolution. The Conference Agreement 
     establishes a rule against any advance appropriation for 2003 
     and any year thereafter with two exceptions: (1) advance 
     appropriations may be provided for the accounts in the 
     appropriation bills listed below, provided that their sum 
     does not exceed $23.159 billion in budget authority for 2003 
     and (2) advance appropriations may be provided for the 
     Corporation for Public Broadcasting.
       Accounts Identified for Advance Appropriations:

     Commerce, Justice, State
       Patent and Trademark Office (13 1006 01 376)
       Legal Activities and U.S. Marshals, Antitrust Division (15 
           0319 01 752)
       U.S. Trustee System (15 5073 02 752)
       Federal Trade Commission (29 0100 01 376)
     Interior
       Elk Hills (89 5428 02 271)
     Labor, Health and Human Services, Education
       Employment and Training Administration (16 0174 01 504)
       Health Resources (75 0350 01 551)
       Low Income Home Energy Assistance Program (75 1502 01 609)
       Child Care Development Block Grant (75 1515 01 609)
       Elementary and Secondary Education [reading excellence] (91 
           0011 01 501)
       Education for the Disadvantaged (91 0900 01 501)
       School Improvement (91 1000 01 501)
       Children and Family Services [head start] (75 1536 01 506)
       Special Education (91 0300 01 501)
       Vocational and Adult Education (91 0400 01 501)
     Treasury, General Government
       Payment to Postal Service (18 1001 01 372)
       Federal Building Fund (47 4542 04 804)
     Veterans, Housing and Urban Development
       Section 8 Renewals (86 0319 01 604)

       The Conference Agreement adopts the definition of ``advance 
     appropriation'' that was used in section 203(b)(2) of last 
     year's budget resolution (which was the provision applicable 
     in the House of Representatives). This limitation can be 
     enforced by points of order,

[[Page 7407]]

     which may be raised against advance appropriations not 
     falling within the exception. The effect of a point of order 
     under this section, if sustained by the Chair, is to cause 
     the appropriation(s) to be stricken from the bill or joint 
     resolution. The bill itself, however, continues to be 
     considered.
       Section 202: Restrictions on Advance Appropriations--Senate
       Section 201(a) of the Conference Agreement adopts a 
     limitation on advance appropriations similar to the approach 
     taken in last year's budget resolution. The Conference 
     Agreement prohibits any advance appropriation for 2003 and 
     any year thereafter with two exceptions: (1) advance 
     appropriations may be provided for the accounts in the 
     appropriation bills listed below, provided that their sum 
     does not exceed $23.159 billion in budget authority for 2003 
     and (2) advance appropriations may be provided for the 
     Corporation for Public Broadcasting.
       Accounts Identified for Advance Appropriations:

     Commerce, Justice, State
       Patent and Trademark Office (13 1006 01 376)
       Legal Activities and U.S. Marshals, Antitrust Division (15 
           0319 01 752)
       U.S. Trustee System (15 5073 02 752)
       Federal Trade Commission (29 0100 01 376)
     Interior
       Elk Hills (89 5428 02 271)
     Labor, Health and Human Services, Education
       Employment and Training Administration (16 0174 01 504)
       Health Resources (75 0350 01 551)
       Low Income Home Energy Assistance Program (75 1502 01 609)
       Child Care Development Block Grant (75 1515 01 609)
       Elementary and Secondary Education [reading excellence] (91 
           0011 01 501)
       Education for the disadvantaged (91 0900 01 501)
       School Improvement (91 1000 01 501)
       Children and Family Services [head start] (75 1536 01 506)
       Special Education (91 0300 01 501)
       Vocational and Adult Education (91 0400 01 501)
     Treasury, General Government
       Payment to Postal Service (18 1001 01 372)
       Federal Building Fund (47 4542 04 804)
     Veterans, Housing and Urban Development
       Section 8 Renewals (86 0319 01 604)

       The Conference Agreement adopts the definition of ``advance 
     appropriation'' that was used in section 203(b)(2) of last 
     year's budget resolution (which was the provision applicable 
     in the Senate). Both the overall cap on advanced 
     appropriations for fiscal year 2002 for the specified 
     accounts and the prohibition for subsequent fiscal years will 
     be enforced in the Senate by a 60-vote point of order. The 
     effect of a point of order under this section, if sustained 
     by the Chair, is to cause the appropriation(s) to be stricken 
     from the bill or joint resolution. The bill itself, however, 
     continues to be considered.
       Section 203: Mechanism for Implementing Increase of Fiscal 
           Year 2002 Discretionary Spending Limits
       Section 203 of the Conference Agreement retains the 
     language from section 202 of the Senate amendment. Virtually 
     identical language was included in section 206 of last year's 
     budget resolution. It provides the Chairman of the Senate 
     Committee on the Budget the authority to increase the section 
     302(a) allocation to the Committee on Appropriations after 
     the statutory discretionary spending limit for fiscal year 
     2002 (set forth in section 251 of the Balanced Budget and 
     Emergency Deficit Control Act of 1985) has been amended. The 
     Conference Agreement permits the allocation to be adjusted up 
     to $659.540 billion in BA and $647.780 billion in outlays for 
     the general discretionary category, $28.489 billion in 
     outlays for the highway category, $5.275 billion in outlays 
     for the mass transit category, and $1.760 billion in BA and 
     $1.232 billion in outlays for the conservation category. Note 
     that with an exception for a necessary adjustment within 
     Function 920 (to bring the Conference Agreement in to 
     compliance with section 312(b) of the Budget Act), the 
     functional totals of this Conference Agreement reflect a 
     level of discretionary spending equal to the levels provided 
     in this section.
       Section 203 of the Conference Agreement also includes a 
     mechanism for establishing a budget authority firewall in the 
     Senate with respect to defense and nondefense discretionary 
     spending. This firewall would be enforced by a 60-vote point 
     of order only after the section 251 discretionary spending 
     limit for 2002 has been amended. Similar language was 
     included in section 207 of last year's budget resolution. The 
     Conferees feel that a firewall is necessary to add 
     credibility to the total level of discretionary spending 
     provided for in this resolution given the additional 
     authority set out in section 218 of the resolution to 
     increase the section 302(a) allocation to the Committee on 
     Appropriations for additional defense spending. The Conferees 
     stress the need for the President to transmit to Congress a 
     budget amendment requesting additional resources for defense 
     after the completion of the President's National Defense 
     Review prior to the Chairman of the Budget Committee 
     considering any increase in the 302(a) allocation pursuant to 
     section 218.
       Section 204: Compliance with Section 13301 of the Budget 
           Enforcement Act of 1990
       Section 204 of the Conference Agreement retains the 
     language of section 12 of the House Resolution regarding the 
     budgetary treatment in the House of discretionary spending 
     for the Social Security Administration. Similar language was 
     included in section 231 of last year's resolution.
       Other issues
       The Conference Agreement does not include any language 
     reflecting section 206 of the Senate amendment which provided 
     limitations on consideration of amendments to budget 
     resolutions and reconciliation bills in the Senate.
       Senate Pay-as-you-go Point of Order
       For convenience, and in keeping with previous years, the 
     text of the Senate's current Pay-go point of order (see 
     Section 207 of H. Con. Res. 68 (106th Cong. 1st Sess.) and 
     the starting balances for the Senate pay-go scorecard are set 
     out below. The starting balance represents the Congressional 
     Budget Office's baseline estimate of the on-budget surpluses 
     over the ten-year period. The Conferees note that the levels 
     of spending and revenue reductions set out in the Conference 
     Agreement, if enacted, would not result in a violation of the 
     Senate pay-as-you-go point of order.

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

       (a) Purposes.--The Senate declares that it is essential 
     to--
       (1) ensure continued compliance with the balanced budget 
     plan set forth in this resolution; and
        (2) continue the pay-as-you-go enforcement system.
       (b) Point of Order.--
       (1) In general.--It shall not be in order in the Senate to 
     consider any direct spending or revenue legislation that 
     would increase the on-budget deficit or cause an on-budget 
     deficit for any one of the three applicable time periods as 
     measured in paragraphs (5) and (6).
       (2) Applicable time periods.--For the purposes of this 
     subsection the term ``applicable time period'' means any one 
     of the three following time periods:
       (A) The first year covered by the most recently adopted 
     concurrent resolution on the budget.
       (B) The period of the first 5 fiscal years covered by the 
     most recently adopted concurrent resolution on the budget.
       (C) The period of the 5 fiscal years following the first 5 
     fiscal years covered by the most recently adopted concurrent 
     resolution on the budget.
       (3) Direct-spending legislation.--For purposes of this 
     subsection and except as provided in paragraph (4), the term 
     ``direct-spending legislation'' means any bill, joint 
     resolution, amendment, motion, or conference report that 
     affects direct spending as that term is defined by and 
     interpreted for purposes of the Balanced Budget and Emergency 
     Deficit Control Act of 1985.
       (4) Exclusion.--For purposes of this subsection the terms 
     ``direct-spending legislation'' and ``revenue legislation'' 
     do not include--
       (A) any concurrent resolution on the budget; or
       (B) any provision of legislation that affect the full 
     funding of, and continuation of, the deposit insurance 
     guarantee commitment in effect on the date of enactment of 
     the Budget Enforcement Act of 1990.
       (5) Baseline.--Estimates prepared pursuant to this section 
     shall--
       (A) use the baseline used for the most recently adopted 
     concurrent resolution on the budget, and
       (B) be calculated under the requirements of subsection (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 cause an on-
     budget deficit when taken individually, then it must also 
     increase the on-budget deficit or causes 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 the direct spending or revenue effects resulting 
     from legislation enacted pursuant to the reconciliation 
     instruction included in that concurrent resolution on the 
     budget shall not be available.
       (c) Waiver.--This section may be waived or suspended in the 
     Senate only by the affirmative vote of three-fifths of the 
     Members, duly chosen and sworn.
       (d) Appeals.--Appeals in the Senate from the decisions of 
     the Chair relating to any provision of this section shall be 
     limited to 1 hour, to be equally divided between, and 
     controlled by, the appellant and the manager of the bill or 
     joint resolution, as the case may be. An affirmative vote of 
     three-fifths of the Members of the Senate, duly chosen and 
     sworn, shall be required in the Senate to sustain an appeal 
     of the ruling of the Chair on a point of order raised under 
     this section.

[[Page 7408]]

       (e) Determination of Budget Levels.--For purposes of this 
     section, the levels of new budget authority, outlays, and 
     revenues for a fiscal year shall be determined on the basis 
     of estimates made by the Committee on the Budget of the 
     Senate.
       (f) Conforming Amendment.--Section 23 of H. Con. Res. 218 
     (103rd Cong.) is repealed.
       (g) Sunset.--Subsections (a) through (e) of this section 
     shall expire September 30, 2002.

                                                                 2002 BUDGET RESOLUTION
                                                                      [$ Billions]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                     2002        2003        2004        2005        2006        2007        2008        2009        2010        2011
--------------------------------------------------------------------------------------------------------------------------------------------------------
Baseline on-budget surpluses....     142.097     171.286     195.686     211.605     266.799     316.203     359.195     416.669     484.265     558.187
--------------------------------------------------------------------------------------------------------------------------------------------------------

                             Reserve Funds

       Reserve funds are special procedures which permit the 
     consideration of specified legislation by making available 
     the resources that are assumed within the aggregate levels of 
     the budget resolution, but are not initially allocated to the 
     appropriate committee of jurisdiction. In general, such 
     provisions provide that upon the reporting of the legislation 
     by the appropriate committee, the Chairmen of the Committees 
     on the Budget may adjust the appropriate allocations to 
     accommodate the legislation provided that all the terms of 
     the reserve fund have been satisfied. The Chairmen intend to 
     make reserve fund adjustments only for legislation reported 
     by the appropriate committee. Subtitle B of Title II of the 
     Conference Agreement contains nine reserve funds.
     House resolution
       Section 6: Strategic Reserve
       Section 6 establishes a reserve fund for Department of 
     Defense spending following the President's National Defense 
     Review and a potential reauthorization of the Federal 
     Agriculture Improvement Act of 1996. It could also 
     accommodate other legislation. In order to be eligible for 
     adjustments under this section, the legislation must be 
     reported before July 11, 2001.
       Section 7: Supplemental Reserve for Medicare
       Section 7 establishes a reserve fund to accommodate a 
     potentially more expensive Medicare bill than was reflected 
     in the budget resolution. The Budget Committee chairman is 
     authorized to make the adjustment for reconciliation 
     legislation that provides for Medicare reform and 
     prescription drug coverage. The Budget Committee chairman may 
     increase the 302(a) allocations to the appropriate committees 
     of jurisdiction by the amount of the Congressional Budget 
     Office [CBO] reestimate of the cost of the President's 
     Medicare plan or an alternative plan submitted by the Ways 
     and Means and Commerce Committees. As a further limit on the 
     cost of the bill, the adjustment under this section may not 
     cause the on-budget surplus in the budget resolution to be 
     less than $36 billion in fiscal year 2002 and comparable 
     levels in fiscal years 2003 through 2011.
       Section 8: Reserve for FY 2001
       Section 8 establishes a reserve fund for fiscal year 2001. 
     The Chairman of the Budget Committee is authorized to make 
     adjustments for Department of Defense shortfalls, emergency 
     agricultural assistance, and other measures. It also limits 
     the amount of the adjustments to the amount the bill exceeds 
     the Committee's allocation. The adjustments may also not 
     cause the on-budget surplus to be less than $29 billion in 
     fiscal year 2001.
       Section 9: Reserve for Education
       Section 9 establishes a reserve fund to allow additional 
     spending for programs authorized by the Individuals with 
     Disabilities Education Act (IDEA) in fiscal year 2002. It 
     permits the Budget Committee chairman to increase the 
     allocation when an appropriation increases spending for IDEA 
     above the baseline level of $6.37 billion. The adjustment may 
     not exceed $1.25 billion.
       Section 10: Reserve for Additional Tax Cuts and Debt 
           Reduction
       Section 10 permits the budget resolution to be adjusted to 
     accommodate a larger tax cut or debt reduction if the surplus 
     estimates increase in the Congressional Budget Office update 
     of its budget and economic forecast for any fiscal years 2001 
     through 2011. If the estimate of the on-budget surplus 
     increases, the chairman of the Budget Committee may increase 
     the tax cut or reduce the debt levels by up to the amount of 
     the increase in the surplus.
     Senate amendment
       Section 203: Reserve fund for prescription drugs and 
           Medicare reform in the Senate
       The Senate amendment contains language creating a reserve 
     fund for Medicare reform and a prescription drug benefit. 
     This reserve fund replaced the language in the initial 
     substitute amendment offered by Senator Domenici and was 
     added by an amendment offered by Senator Grassley. The Senate 
     amendment permits budget resolution levels and committee 
     allocation to be adjusted for legislation reported from 
     Senate Committee on Finance that reforms medicare and 
     improves access to prescription drugs for beneficiaries. The 
     adjustments may not exceed the Congressional Budget Offices's 
     cost estimate of either a plan submitted by the President or 
     a comparable plan submitted by the Chairman of the Committee 
     on Finance and in no case may total spending exceed $300 
     billion for the period of fiscal years 2002 through 2011. 
     Note that the aggregates and function levels in the Senate 
     amendment assume only $153 billion (of the potential $300 
     billion) over ten years.
       Section 206: Reserve fund for medicare payments to home 
           health agencies
       The Senate amendment contains language creating a reserve 
     fund to restore Medicare payments to home health agencies. 
     This reserve fund was added by an amendment offered by 
     Senator Collins. The Senate amendment permits budget 
     resolution levels and committee allocation to be adjusted for 
     legislation reported from Senate Committee on Finance that 
     repeals the scheduled 15% reduction in home health payments. 
     Adjustments may not exceed $4 billion for the period of 
     fiscal years 2002 through 2006 and $13.7 billion for the 
     period of fiscal years 2002 through 2011. In addition, no 
     adjustments may be made if the cost of such legislation, 
     taken together with all previously enacted legislation would 
     reduce the on-budget surplus before the level of the Medicare 
     HI Trust Fund surplus for any fiscal year covered by this 
     budget resolution. Note that the function levels and 
     aggregates in the Senate amendment assume the reductions 
     would have gone into effect.
       Section 208: Reserve fund for the payment of retired pay 
           and compensation to disabled military retirees
       The Senate amendment contains language creating a reserve 
     fund to provide for the payment of retired pay and veterans' 
     disability benefits to disabled military retirees. This 
     reserve fund was added by an amendment offered by Senator 
     Reid. The Senate amendment permits budget resolution levels 
     and committee allocation to be adjusted for legislation 
     reported from Senate Committee on Armed Services (and the 
     appropriate committee of the House of Representatives) that 
     funds the payment of full retired pay and veterans' 
     disability benefits to disabled military retirees. The 
     amendment does not, however, make any provision for the 
     additional $14.4 billion in discretionary spending that the 
     Congressional Budget Office has estimated would also be 
     required to fully fund these benefits. Adjustments may not 
     exceed $2.9 billion for fiscal year 2002 or $40 billion for 
     the period of fiscal years 2002 through 2011. In addition, no 
     adjustment may be made if the sum of the cost of this 
     legislation taken together with previously enacted 
     legislation would reduce the level of the Medicare Hospital 
     Insurance trust fund for any fiscal year covered by the 
     budget resolution.
       Section 209: Reserve fund for refundable tax credits
       The Senate amendment contains language which in effect 
     provides ``fungibility'' between outlays and revenues in a 
     reconciliation tax legislation. This provision was added by 
     an amendment offered by Senator Bingaman. The Senate 
     amendment permits budget resolution levels, committee 
     allocation, and reconciliation instruction to be adjusted for 
     legislation reported from the Senate Committee on Finance 
     that provides refundable tax credits. Adjustments are limited 
     such that the sum of the spending increase and revenue 
     reductions must not exceed the total amount of the 
     reconciliation instruction. This will have the same effect as 
     the ``fungibility'' language set out in section 310(c) of the 
     Budget Act--and is superfluous in this case since the 
     reconciliation instruction in the Senate amendment to Senate 
     Finance contains an outlay component.
       Section 212: Reserve fund for Family Opportunity Act
       The Senate amendment contains a reserve fund to facilitate 
     the consideration of the Family Opportunity Act in the 
     Senate. This reserve fund was added by an amendment offered 
     by Senator Grassley. The Senate amendment permits budget 
     resolution levels and committee allocation to be adjusted for 
     legislation reported from Senate Committee on Finance that 
     expands Medicaid coverage for children with special needs to 
     permit their parents to purchase such coverage. Adjustments 
     may not exceed $200 million for fiscal year 2002 or $7.9 
     billion for the period of fiscal years 2002 through 2011. In 
     addition, no adjustment may be made if the sum of the cost of 
     this legislation taken together with

[[Page 7409]]

     previously enacted legislation would reduce the level of the 
     Medicare Hospital Insurance trust fund for any fiscal year 
     covered by the budget resolution.
       Section 213: Reserve fund for Veterans' education
       The Senate amendment contains a reserve fund to provide 
     additional resources for veterans' education benefits. This 
     reserve fund was added by an amendment offered by Senator 
     Collins. The Senate amendment permits budget resolution 
     levels and committee allocation to be adjusted for 
     legislation reported from Senate Committee on Veterans' 
     Affairs (and the appropriate committee of the House of 
     Representatives) that increases the basic monthly benefit 
     under the G.I. bill. Adjustments may not exceed $775 million 
     for fiscal year 2002 or $4.3 billion for the period of fiscal 
     years 2002 through 2006 or $9.9 billion for the period of 
     fiscal years 2002 through 2011. In addition, no adjustment 
     may be made if the sum of the cost of this legislation taken 
     together with previously enacted legislation would reduce the 
     level of the Medicare Hospital Insurance trust fund for any 
     fiscal year covered by the budget resolution.
       Section 214: Reserve fund for payments in lieu of taxes
       The Senate amendment contains a reserve fund to provide 
     additional resources for payments in lieu of taxes and for 
     refuge revenue sharing. This reserve fund was added by an 
     amendment offered by Senator Bingaman. The Senate amendment 
     permits budget resolution levels and committee allocation to 
     be adjusted for legislation reported from Senate Committee on 
     Energy and Natural Resources that fully funds payments in 
     lieu of taxes for entitlement lands under chapter 69 of title 
     31 of the U.S. Code. Adjustments may not exceed $353 million 
     for fiscal year 2002 or $3.709 billion for the period of 
     fiscal years 2002 through 2011. In addition, no adjustment 
     may be made if the sum of the cost of this legislation taken 
     together with previously enacted legislation would reduce the 
     level of the Medicare Hospital Insurance trust fund for any 
     fiscal year covered by the budget resolution.
     Conference agreement
       Section 211: Medicare Reserve Fund
       Section 211 of the Conference Agreement is in two parts. 
     Section (a) retains the language from the House and Senate 
     resolutions to accommodate Medicare reform and prescription 
     drug legislation. The language is modeled on section 203 of 
     the Senate Amendment. The aggregate level of spending for 
     such legislation has been assumed within the Function 570 
     levels and the aggregates in the Conference Agreement, but 
     will not be allocated to the committees. The Conference 
     Agreement applies in both the House of Representatives and 
     the Senate and permits the appropriate Budget Committee 
     chairman to adjust committee allocations and other 
     appropriate budgetary aggregates and allocations for 
     legislation which is reported from the Senate Finance 
     Committee and the House Committee on Ways and Means or the 
     Committee on Energy and Commerce if the committee report 
     legislation providing for Medicare reform and a prescription 
     drug benefit provided that the cost of such legislation does 
     not exceed $59.1 billion in BA and outlays for the period of 
     fiscal years 2003 through 2006 and $300 billion in BA and 
     outlays for the period of fiscal years 2003 through 2011. The 
     Conferees note that in the Senate the authority granted under 
     this section does not permit the Chairman of the Committee on 
     the Budget to make any adjustments for floor amendments 
     offered to unrelated legislation.
       The Conferees note that it would be appropriate for the 
     cost of such legislation (but no other legislation) to be 
     funded in whole or in part from the surpluses of the Hospital 
     Insurance Trust Fund.
       Section 211(b) of the Conference Agreement retains the 
     language of section 206 of the Senate Amendment which 
     provides a reserve fund for legislation regarding payments 
     under Medicare to home health providers--with a modification. 
     The Conference Agreement applies in both the House of 
     Representatives and the Senate and permits the appropriate 
     Budget Committee chairman to adjust committee allocations and 
     other appropriate budgetary aggregates and allocations for 
     legislation which is reported (or for amendments thereto or 
     conference report thereon) from the Senate Finance Committee 
     and the House Committee on Ways and Means or the Committee on 
     Energy and Commerce if the committees report legislation that 
     repeals the scheduled 15% reduction in home health payments. 
     The aggregate level of spending for such legislation has been 
     assumed within the Function 570 levels and the aggregates in 
     the Conference Agreement, but will not be allocated to the 
     committees. Adjustments may not exceed $4 billion in BA and 
     outlays for the period of fiscal years 2003 through 2006 and 
     $13.7 billion in BA and outlays for the period of fiscal 
     years 2003 through 2011. The Conferees note that in the 
     Senate the authority granted under this section does not 
     permit the Chairman of the Committee on the Budget to make 
     any adjustments for floor amendments offered to unrelated 
     legislation. Subsection (b) provides, however, that no 
     adjustments may be made if the cost of such legislation, 
     taken together with all previously enacted legislation, would 
     reduce the surplus below the level of the Medicare HI Trust 
     Fund surplus for any fiscal year covered by this budget 
     resolution.
       Section 212: Reserve Fund for the Family Opportunity Act
       Section 212 of the Conference Agreement retains the 
     language of section 212 of the Senate Amendment which 
     provides a reserve fund for legislation to enable the 
     expansion of Medicaid coverage for children with special 
     needs to permit their parents to purchase such coverage--with 
     a modification. The Conference Agreement applies in both the 
     House of Representatives and the Senate and permits the 
     appropriate Budget Committee chairman to adjust committee 
     allocations and other appropriate budgetary aggregates and 
     allocations for legislation which is reported (and amendments 
     thereto, or any conference report thereon) from the Senate 
     Finance Committee and the House Committee on Ways and Means 
     or the Committee on Energy and Commerce if the committees 
     report legislation that expands Medicaid coverage for 
     children with special needs to permit their parents to 
     purchase such coverage. Adjustments may not exceed $227 
     million in BA and $180 million in outlays for fiscal year 
     2002, $3.035 billion in BA and $2.724 billion in outlays for 
     the period of fiscal years 2002 through 2006 and $8.337 
     billion in BA and $7.867 billion in outlays for the period of 
     fiscal years 2002 through 2011.
       The Conferees note that the authority granted under this 
     section does not permit the Chairman of the Committee on the 
     Budget to make any adjustments for floor amendments offered 
     to unrelated legislation. Note that the aggregate level of 
     spending for such legislation has been assumed within the 
     Function 550 levels and the aggregates in the Conference 
     Agreement, but will not be allocated to the committees. The 
     Conference Agreement provides, however, that no adjustments 
     may be made if the cost of such legislation, taken together 
     with all previously enacted legislation would reduce the 
     surplus below the level of the Medicare HI Trust Fund surplus 
     for any fiscal year covered by this budget resolution.
       Section 213: Reserve Fund for Agriculture
       Section 213 of the Conference Agreement includes a new 
     reserve fund for legislation reauthorizing the Federal 
     Agriculture Improvement and Reform (FAIR) Act of 1996, Title 
     I of such act, and other appropriate agriculture production 
     legislation. Funding for agriculture was assumed in the 
     budget totals but not the allocation. The Conference 
     Agreement applies in both the House of Representatives and 
     the Senate and permits the appropriate Budget Committee 
     chairman to adjust committee allocations and other 
     appropriate budgetary aggregates and allocations for 
     legislation which is reported (and amendments thereto, or any 
     conference report thereon) from the Senate Committee on 
     Agriculture, Nutrition and Forestry and the House Committee 
     on Agriculture if the committees report such legislation. 
     Adjustments may not exceed $66.15 billion in BA and outlays 
     for the period of fiscal years 2003 through 2011.
       The Conferees note that the authority granted under this 
     section does not permit the Chairman of the Committee on the 
     Budget to make any adjustments for floor amendments offered 
     to unrelated legislation. Note that the aggregate level of 
     spending for such legislation has been assumed within the 
     levels for Function 300 and 350 and within the aggregates in 
     the Conference Agreement, but will not be allocated to the 
     committees. The Conference Agreement provides however that no 
     adjustments may be made if the cost of such legislation, 
     taken together with all previously enacted legislation would 
     reduce the surplus below the level of the Medicare HI Trust 
     Fund surplus for any fiscal year covered by this budget 
     resolution.
       Section 214: Reserve Fund for Additional Tax Cuts and Debt 
           Reduction
       Section 214 of the Conference Agreement retains the 
     language of Section 10 of the House Resolution, which 
     provides a mechanism by which the assumed tax cuts or debt 
     levels may be adjusted by an increase in CBO's mid-session 
     update of the surplus. Similar language was included in 
     section 213 of last year's budget resolution.
       Section 215: Technical Reserve Fund for Student Loans
       Section 215 of the Conference Agreement includes a new 
     technical reserve for legislation that permanently retains 
     the interest rate schedule currently in effect for student 
     loans and that repeals the switch to a replacement interest 
     rate structure scheduled to occur under current law on July 
     1, 2003. This technical reserve would permit extension of the 
     overwhelmingly bipartisan agreement reached in the Higher 
     Education Amendments of 1998 to support the interest rate 
     structure of the student loan programs as it operates today.
       The Conference Agreement permits the appropriate Budget 
     Committee chairman to adjust committee allocations and other 
     appropriate budgetary aggregates and allocations for 
     legislation (reported from the Senate Committee on Health, 
     Education, Labor and Pensions and within the jurisdiction of 
     House Committee on Education and the Workforce) that repeals 
     an provision (from

[[Page 7410]]

     1993) that, if left in place, would dismantle the existing 
     interest rate structure for student loans starting July 1, 
     2003. The adjustment may not exceed $110 million in BA and 
     $100 million in outlays for the combined period 2001-2002, 
     nor may it exceed $3.440 billion in BA and $2.840 billion in 
     outlays for the combined period 2001-2006, nor may it exceed 
     $7.665 billion in BA and $6.590 billion in outlays over the 
     2001-2011 period. The Conferees note that the Senate the 
     authority granted under this section does not permit the 
     Chairman of the Committee on the Budget to make any 
     adjustments for floor amendments offered to unrelated 
     legislation.
       Section 216: Reserve Fund for the Purchase of Health 
           Insurance by the Uninsured
       Section 216 of the Conference Agreement includes a reserve 
     fund for legislation which provides resources to facilitate 
     the purchase of health insurance for the uninsured. The 
     Conference Agreement applies in both the House of 
     Representatives and the Senate and permits the appropriate 
     Budget Committee chairman to adjust committee allocations and 
     other appropriate budgetary aggregates and allocations 
     (including the revenue aggregates) for legislation which is 
     reported (and amendments thereto, or any conference report 
     thereon) from the Senate Finance Committee and the House 
     Committee on Ways and Means or the Committee on Energy and 
     Commerce if the committees report legislation that enables 
     the uninsured to purchase health insurance. The aggregate 
     level of spending for such legislation has been assumed 
     within the Function 550 levels and the spending aggregates in 
     the Conference Agreement, but will not be allocated to the 
     committees. Adjustments may not exceed $28 billion in BA and 
     outlays or $28 billion in revenues or any combination of 
     spending and revenues for the period of fiscal years 2002 
     through 2004.
       The Conferees note that in the Senate the authority granted 
     under this section does not permit the Chairman of the 
     Committee on the Budget to make any adjustments for floor 
     amendments offered to unrelated legislation. The Conferees 
     intend, however, to provide complete flexibility to the 
     authorizing committees to draft such legislation providing 
     spending or tax changes. The Conference Agreement provides 
     however that no adjustments may be made if the cost of such 
     legislation, taken together with all previously enacted 
     legislation would reduce the surplus below the level of the 
     Medicare HI Trust Fund surplus for any fiscal year covered by 
     this budget resolution.
       Section 217: Reserve Fund for Defense in the Senate
       Section 217 of the Conference Agreement includes a 
     mechanism in the Senate to increase the section 302(a) 
     allocation (and other appropriate budgetary aggregates) to 
     the Committee on Appropriations and the Committee on Armed 
     Services of the Senate for 2002 in order to make additional 
     resources available in response to the President's National 
     Defense Review. The Conference Agreement permits the Chairman 
     of the Committee on the Budget to increase the 302(a) 
     allocation only when two requirements are satisfied. First, 
     the President must submit a specific budget amendment to the 
     Congress requesting additional funding for fiscal year 2002 
     in response to the National Defense Review. Second, the 
     Committee on Appropriations must have reported an 
     appropriations measure which provides funding for such budget 
     amendment.
       The Conferees note that the authority granted under this 
     section does not permit the Chairman of the Committee on the 
     Budget to make any adjustments for floor amendments offered 
     to unrelated legislation. Note that neither the Function 050 
     levels nor the aggregates of the resolution contain any 
     additional resources for this National Defense Review. 
     Therefore, any adjustments made pursuant to the authority in 
     this section will reduce the surplus aggregates contained in 
     the resolution. The Conferees acknowledge that because of the 
     limitation contained in section 302(a)(3)(A) of the Budget 
     Act, the chairman of the Committee on the Budget may not 
     adjust the section 302(a) allocation to the Committee on 
     Appropriations until the discretionary spending limits in 
     section 251(c) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985 has been increased for 2002 by an amount 
     sufficient to accommodate the increase envisioned by this 
     section. The Conference Agreement provides, however, that no 
     adjustments may be made if the cost of such legislation, 
     taken together with all previously enacted legislation would 
     reduce the surplus below the level of the Medicare HI Trust 
     Fund surplus for any fiscal year covered by this budget 
     resolution.
       Section 218: Strategic Reserve Fund in the House
       Section 218 of the Conference Agreement establishes a 
     reserve in the House of Representatives for authorizing or 
     appropriations measures for the Department of Defense, 
     following the President's National Defense Review; it also 
     may be used for legislation that would provide for a 
     prescription drug benefit, or for other appropriate 
     legislation. The adjustment may only be made for the amount 
     that the relevant legislation exceeds the applicable 
     committee's allocation or the aggregate provided for in the 
     budget resolution. The reserve fund is further limited in 
     that the adjustment may not be made if it would cause the on-
     budget surplus to be less than an amount equal to the 
     Medicare Hospital Insurance Trust Fund.
       Additional items
       The Conferees note that the Conference Agreement does not 
     include any reserve fund language from section 9 of the House 
     resolution regarding additional discretionary funding for 
     programs authorized in the Individuals with Disabilities Act.
       The Conferees note that the Conference Agreement does not 
     include any reserve fund language from section 208 of the 
     Senate Amendment regarding the payment of retired pay and 
     veterans' disability benefits to disabled military retirees. 
     The Conference Agreement does however retain the Sense of the 
     Congress language from section 19 of the House Resolution 
     which is set out in section 314.
       Section 314 of the conference report includes a sense of 
     the Congress directing the Secretary of Defense to report 
     within 180 days after the adoption of this Conference 
     Agreement to the relevant congressional defense committees 
     and to the House and Senate Budget Committees on the 
     provision of concurrent retirement and disability benefits 
     for retired members of the Armed Forces. The report shall 
     address the number of individuals retired from the Armed 
     Forces who would otherwise be eligible for disability 
     compensation under the proposed legislation (S. 170 in the 
     Senate and H.R. 303 in the House of Representatives); the 
     comparability of the policy to Office of Personnel Management 
     guidelines for civilian Federal retirees; the comparability 
     of this proposed policy to prevailing private sector 
     standards; the numbers of individuals potentially eligible 
     for concurrent benefits who receive other forms of Federal 
     assistance and the cost of that assistance; and alternative 
     initiatives that would accomplish the same result as 
     concurrent receipt of military retired pay and disability 
     compensation at different levels of cost. The Secretary of 
     Defense may submit legislation that he considers appropriate.
       Section 314 of the Conference Agreement also includes a 
     Sense of Congress requesting the Congressional Budget Office 
     and the Office of Management and Budget to report to the 
     Budget Committees within 30 days after the adoption of this 
     conference report on the risk that providing full concurrent 
     receipt of military retired pay and disability compensation 
     under the proposed legislation identified above could reduce 
     the on-budget surplus below the level of the Medicare 
     Hospital Insurance Trust Fund.
       The Conferees also note that the Conference Agreement does 
     not include any reserve fund language from section 209 of the 
     Senate Amendment which purported to provide ``fungibility'' 
     between outlays and revenues in reconciliation tax 
     legislation. Given the language in section 310(c) of the 
     Budget Act which statutorily provides for ``fungibility,'' 
     the language from section 209 was superfluous.
       The Conference Agreement does not include the language from 
     section 213 of the Senate Amendment regarding increased 
     funding for veterans' education benefits. Instead the 
     Conferees agreed to include the funding within the Function 
     700 levels, the resolution aggregates, and the allocation to 
     the appropriate authorizing committees of the House of 
     Representatives and the Senate.
       The Conference Agreement does not include the language from 
     section 214 of the Senate Amendment regarding additional 
     resources for payments in lieu of taxes and for refuge 
     revenue sharing.

                        Miscellaneous Provisions

       In addition to enforcement provisions and reserve funds, 
     budget resolutions may contain miscellaneous provisions that 
     may affect the level of spending or that provide additional 
     enforcement mechanisms or additional guidance in interpreting 
     the resolution. Subtitle C of Title II of the Conference 
     Agreement contains two of these provisions.
     House resolution
       Section 11. Application and effect of changes in 
           allocations and aggregates
       Section 11 establishes the procedures for making 
     adjustments pursuant to the reserve funds included in this 
     resolution. It provides that the adjustments may only be made 
     during the interval that the legislation is under 
     consideration and do not take effect until the legislation is 
     actually enacted. It also requires the Budget Committee 
     chairman to submit any revisions in the budget resolution 
     pursuant to the reserves for printing in the Congressional 
     Record.
     Senate Amendment
       Section 204: Application and effect of changes in 
           allocations and aggregates
       The Senate amendment contains language which is similar to 
     the language found in section 222 of the fiscal year 2001 
     budget resolution and clarifies the application and 
     effectiveness of the adjustments made by the Chairman of the 
     Committee on the Budget pursuant to the ``reserve funds'' set 
     out in the resolution.
       Section 205: Exercise of rulemaking powers
       The Senate amendment contains language identical to section 
     234 of the fiscal year 2001

[[Page 7411]]

     budget resolution and states the authority by which Congress 
     adopts the various budgetary enforcement rules and procedures 
     for the consideration of certain legislation set out in the 
     resolution.
       Section 210: Additional Revenue reductions
       The Senate amendment contains a provision which states that 
     revenue reductions set out in the underlying resolution 
     should be increased by an additional $69 billion for the 
     period of fiscal years 2002 through 2011--in order to provide 
     marriage penalty relief. The language was added by an 
     amendment offered by Senator Hutchison (TX).
       Section 211: Increase funding for IDEA
       The Senate amendment contains a provision that states that 
     the revenue reductions set out in the underlying resolution 
     should be reduced by $70 billion for the period of fiscal 
     years 2002 through 2011 and an additional $70 billion in BA 
     and outlays should be added to Function 500 (Education) over 
     that same time period--in order to provide additional 
     resources to IDEA. This language was added by an amendment 
     offered by Senator Breaux.
     Conference Agreement
       Section 221: Application and Effect of Changes in 
           Allocations and Aggregates
       Section 221 of the Conference Agreement retains the 
     language of section 11 of the House Resolution (which is 
     virtually identical to Section 204 of the Senate Amendment) 
     clarifying the process for implementing any adjustment made 
     pursuant to the reserve funds and the status of these 
     adjusted levels. It further clarifies that the Budget 
     Committee determines scoring for purposes of points of order. 
     This section also makes clear that levels in the joint 
     statement will be used for purposes of budget enforcement 
     rather than the levels in the conference report. Finally the 
     Budget Committee chairmen are given the authority to score 
     legislation for enforcement purposes based on CBO's updated 
     baseline.
       Section 222: Exercise of Rulemaking Powers
       Section 222 of the Conference Agreement retains the 
     language of section 205 of the Senate Amendment. It states 
     the authority by which Congress adopts the various budgetary 
     enforcement rules and procedures for the consideration of 
     certain legislation set out in the budget resolution. An 
     identical provision was included in section 234 of last 
     year's budget resolution.
       The Conference Agreement does not include the language from 
     either section 210 or 211 of the Senate Amendment because all 
     assumptions regarding revenues are taken into account within 
     the actual revenue aggregates set out in the Conference 
     Agreement. In addition, the issue of the level of funding for 
     programs authorized in the Individuals with Disabilities 
     Education Act is taken into account within the levels for 
     Function 500.

             Sense of Congress, House and Senate Provisions

     House Resolution
       The House budget resolution contains the following Senses 
     of the House or Congress that have no legal force but reflect 
     the Congress' views on a variety of budget-related issues. 
     The section numbers and section headings of these reserve 
     funds are as follows:
       Section 14 states a Sense of the House concerning Federal 
     pay.
       Section 15 states a Sense of Congress relating to 
     Individual Development Accounts and the working poor.
       Section 16 provides a Sense of Congress relating to Federal 
     fire prevention assistance.
       Section 17 states a Sense of the House regarding the 
     deduction of state sales tax from Federal income taxes.
       Section 18 states a Sense of Congress regarding funding for 
     Graduate Medical Education.
     Senate Amendment
       The Senate amendment contains the following Sense of the 
     Senate provisions:
       Section 301 Sense of the Senate on Debt Reduction.
       Section 302 Sense of the Senate on AIDS and Other 
     Infectious Diseases.
       Section 303 Sense of the Senate on Consolidated Health 
     Centers.
       Section 304 Sense of the Senate on Funding for Department 
     of Justice Programs for State and Local Law Enforcement 
     Assistance.
       Section 305 Sense of the Senate on United States Coast 
     Guard Fiscal Year 2002 Funding.
       Section 306 Sense of the Senate on Strengthening our 
     National Food Safety Infrastructure.
       Section 307 Sense of the Senate with Respect to Increasing 
     Funds for Renewable Energy Research and Development.
     Conference agreement
       The Conference Agreement contains the following Sense of 
     the Senate and Sense of Congress provisions:
       Subtitle A--Sense of the Senate provision.
       Section 301 Sense of the Senate on conservation.
       Section 302 Sense of the Senate on AIDS and other 
     infectious diseases.
       Section 303 Sense of the Senate on Consolidated Health 
     Centers.
       Section 304 Sense of the Senate on Funding for Department 
     of Justice Programs for State and Local Law Enforcement 
     Assistance.
       Section 305 Sense of the Senate on United States Coast 
     Guard Fiscal Year 2002 Funding.
       Section 306 Sense of the Senate on Strengthening our 
     National Food Safety Infrastructure.
       Section 307 Sense of the Senate with Respect to Increasing 
     Funds for Renewable Energy Research and Development.
       Section 308 Sense of the Senate with respect to increased 
     education funding.
       Subtitle B--Sense of the Congress provisions.
       Section 311 Asset building for the working poor.
       Section 312 Federal Fire prevention assistance.
       Section 313 Funding for graduate medical education at 
     children's teaching hospitals.
       Section 314 Concurrent retirement and disability benefits 
     to retired members of the armed forces.
       Section 315 Federal Employee Pay.
       Section 316 Sales tax deduction.

     Jim Nussle,
     John E. Sununu,
                                Managers on the Part of the House.

     Pete Domenici,
     Chuck Grassley,
     Don Nickles,
     Phil Gramm,
     Kit Bond,
                               Managers on the Part of the Senate.

     

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