[Congressional Record (Bound Edition), Volume 149 (2003), Part 7]
[House]
[Pages 9296-9333]
[From the U.S. Government Publishing Office, www.gpo.gov]




                  Conference Report (H. Rept. 108-71)

       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. 95), establishing the congressional 
     budget for the United States Government for fiscal year 2004 
     and setting forth appropriate budgetary levels for fiscal 
     years 2003 and 2005 through 2013, 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 2004.

         (a) Declaration.--The Congress declares that the 
     concurrent resolution on the budget for fiscal year 2004 is 
     hereby established and that the appropriate budgetary levels 
     for fiscal years 2003 and 2005 through 2013 are hereby set 
     forth.
         (b) Table of Contents.--The table of contents for this 
     concurrent resolution is as follows:

Sec. 1. Concurrent resolution on the budget for fiscal year 2004.

                TITLE I--RECOMMENDED LEVELS AND AMOUNTS

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

                        TITLE II--RECONCILIATION

Sec. 201. Reconciliation for economic growth and tax simplification and 
              fairness.
Sec. 202. Limit on Senate consideration of reconciliation.

      TITLE III--SUBMISSIONS TO ELIMINATE WASTE, FRAUD, AND ABUSE

Sec. 301. Submissions of findings providing for the elimination of 
              waste, fraud, and abuse in mandatory programs.

[[Page 9297]]

           TITLE IV--RESERVE FUNDS AND CONTINGENCY PROCEDURE

 Subtitle A--Reserve Funds for Legislation Assumed in Budget Aggregates

Sec. 401. Reserve fund for medicare modernization and prescription 
              drugs.
Sec. 402. Reserve fund for medicaid reform.
Sec. 403. Reserve fund for State children's health insurance program.
Sec. 404. Reserve fund for project bioshield.
Sec. 405. Reserve fund for health insurance for the uninsured.
Sec. 406. Reserve fund for children with special needs.

                   Subtitle B--Contingency Procedure

Sec. 411. Contingency procedure for surface transportation.

           Subtitle C--Adjustments to Fiscal Year 2003 Levels

Sec. 421. Supplemental appropriations for fiscal year 2003.

                      TITLE V--BUDGET ENFORCEMENT

Sec. 501. Restrictions on advance appropriations.
Sec. 502. Emergency legislation.
Sec. 503. Extension of supermajority enforcement.
Sec. 504. Discretionary spending limits in the Senate.
Sec. 505. Pay-as-you-go point of order in the Senate.
Sec. 506. Compliance with section 13301 of the Budget Enforcement Act 
              of 1990.
Sec. 507. Application and effect of changes in allocations and 
              aggregates.
Sec. 508. Adjustments to reflect changes in concepts and definitions.

                     TITLE VI--SENSE OF THE SENATE

Sec. 601. Sense of the Senate on Federal employee pay.
Sec. 602. Sense of the Senate regarding Pell Grants.
Sec. 603. Sense of the Senate on emergency and disaster assistance for 
              livestock and agriculture producers.
Sec. 604. Social security restructuring.
Sec. 605. Sense of the Senate concerning State fiscal relief.
Sec. 606. Federal agency review commission.
Sec. 607. Sense of the Senate regarding highway spending.
Sec. 608. Sense of the Senate on reports on liabilities and future 
              costs.
Sec. 609. Sense of the Senate concerning an expansion in health care 
              coverage.
Sec. 610. Sense of the Senate concerning programs of the Corps of 
              Engineers.
Sec. 611. Sense of the Senate concerning Native American health.
Sec. 612. Sense of the Senate on providing tax and other incentives to 
              revitalize rural America.
Sec. 613. Sense of the Senate concerning children's graduate medical 
              education.
Sec. 614. Sense of the Senate on funding for criminal justice.
Sec. 615. Sense of the Senate concerning funding for drug treatment 
              programs.
Sec. 616. Sense of Senate concerning free trade agreement with the 
              United Kingdom.
                TITLE I--RECOMMENDED LEVELS AND AMOUNTS

     SEC. 101. RECOMMENDED LEVELS AND AMOUNTS.

       The following budgetary levels are appropriate for each of 
     fiscal years 2003 through 2013:
       (1) Federal revenues.--For purposes of the enforcement of 
     this resolution:
       (A) The recommended levels of Federal revenues are as 
     follows:
       Fiscal year 2003: $1,303,111,000,000.
       Fiscal year 2004: $1,325,452,000,000.
       Fiscal year 2005: $1,493,875,000,000.
       Fiscal year 2006: $1,657,511,000,000.
       Fiscal year 2007: $1,790,251,000,000.
       Fiscal year 2008: $1,901,844,000,000.
       Fiscal year 2009: $2,053,762,000,000.
       Fiscal year 2010: $2,167,937,000,000.
       Fiscal year 2011: $2,270,540,000,000.
       Fiscal year 2012: $2,409,572,000,000.
       Fiscal year 2013: $2,553,985,000,000.
       (B) The amounts by which the aggregate levels of Federal 
     revenues should be reduced are as follows:
       Fiscal year 2003: $56,723,000,000.
       Fiscal year 2004: $140,918,000,000.
       Fiscal year 2005: $123,151,000,000.
       Fiscal year 2006: $83,161,000,000.
       Fiscal year 2007: $62,915,000,000.
       Fiscal year 2008: $61,133,000,000.
       Fiscal year 2009: $24,568,000,000.
       Fiscal year 2010: $25,105,000,000.
       Fiscal year 2011: $156,956,000,000.
       Fiscal year 2012: $240,207,000,000.
       Fiscal year 2013: $250,225,000,000.
       (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 2003: $1,862,613,000,000.
       Fiscal year 2004: $1,861,004,000,000.
       Fiscal year 2005: $1,990,236,000,000.
       Fiscal year 2006: $2,122,301,000,000.
       Fiscal year 2007: $2,232,829,000,000.
       Fiscal year 2008: $2,348,872,000,000.
       Fiscal year 2009: $2,454,439,000,000.
       Fiscal year 2010: $2,555,612,000,000.
       Fiscal year 2011: $2,669,462,000,000.
       Fiscal year 2012: $2,754,007,000,000.
       Fiscal year 2013: $2,875,121,000,000.
       (3) Budget outlays.--For purposes of the enforcement of 
     this resolution, the appropriate levels of total budget 
     outlays are as follows:
       Fiscal year 2003: $1,815,395,000,000.
       Fiscal year 2004: $1,883,834,000,000.
       Fiscal year 2005: $1,981,402,000,000.
       Fiscal year 2006: $2,089,299,000,000.
       Fiscal year 2007: $2,190,576,000,000.
       Fiscal year 2008: $2,307,259,000,000.
       Fiscal year 2009: $2,419,846,000,000.
       Fiscal year 2010: $2,527,898,000,000.
       Fiscal year 2011: $2,651,220,000,000.
       Fiscal year 2012: $2,723,935,000,000.
       Fiscal year 2013: $2,855,491,000,000.
       (4) Deficits (on-budget).--For purposes of the enforcement 
     of this resolution, the amounts of the deficits (on-budget) 
     are as follows:
       Fiscal year 2003: $512,284,000,000.
       Fiscal year 2004: $558,382,000,000.
       Fiscal year 2005: $487,527,000,000.
       Fiscal year 2006: $431,788,000,000.
       Fiscal year 2007: $400,325,000,000.
       Fiscal year 2008: $405,415,000,000.
       Fiscal year 2009: $366,084,000,000.
       Fiscal year 2010: $359,961,000,000.
       Fiscal year 2011: $380,680,000,000.
       Fiscal year 2012: $314,363,000,000.
       Fiscal year 2013: $301,506,000,000.
       (5) Debt subject to limit.--Pursuant to section 301(a)(5) 
     of the Congressional Budget Act of 1974, the appropriate 
     levels of the public debt are as follows:
       Fiscal year 2003: $6,747,000,000,000.
       Fiscal year 2004: $7,384,000,000,000.
       Fiscal year 2005: $7,978,000,000,000.
       Fiscal year 2006: $8,534,000,000,000.
       Fiscal year 2007: $9,064,000,000,000.
       Fiscal year 2008: $9,602,000,000,000.
       Fiscal year 2009: $10,102,000,000,000.
       Fiscal year 2010: $10,601,000,000,000.
       Fiscal year 2011: $11,125,000,000,000.
       Fiscal year 2012: $11,588,000,000,000.
       Fiscal year 2013: $12,040,000,000,000.
         (6) Debt held by the public.--The appropriate levels of 
     debt held by the public are as follows:
       Fiscal year 2003: $3,917,000,000,000.
       Fiscal year 2004: $4,299,000,000,000.
       Fiscal year 2005: $4,599,000,000,000.
       Fiscal year 2006: $4,829,000,000,000.
       Fiscal year 2007: $5,007,000,000,000.
       Fiscal year 2008: $5,169,000,000,000.
       Fiscal year 2009: $5,272,000,000,000.
       Fiscal year 2010: $5,349,000,000,000.
       Fiscal year 2011: $5,428,000,000,000.
       Fiscal year 2012: $5,424,000,000,000.
       Fiscal year 2013: $5,394,000,000,000.

     SEC. 102. SOCIAL SECURITY.

       (a) Social Security Revenues.--For purposes of Senate 
     enforcement under sections 302 and 311 of the Congressional 
     Budget Act of 1974, the amounts of revenues of the Federal 
     Old-Age and Survivors Insurance Trust Fund and the Federal 
     Disability Insurance Trust Fund are as follows:
       Fiscal year 2003: $531,607,000,000.
       Fiscal year 2004: $557,821,000,000.
       Fiscal year 2005: $587,775,000,000.
       Fiscal year 2006: $619,062,000,000.
       Fiscal year 2007: $651,148,000,000.
       Fiscal year 2008: $684,429,000,000.
       Fiscal year 2009: $719,132,000,000.
       Fiscal year 2010: $755,754,000,000.
       Fiscal year 2011: $792,152,000,000.
       Fiscal year 2012: $829,568,000,000.
       Fiscal year 2013: $869,690,000,000.
       (b) Social Security Outlays.--For purposes of Senate 
     enforcement under sections 302 and 311 of the Congressional 
     Budget Act of 1974, the amounts of outlays of the Federal 
     Old-Age and Survivors Insurance Trust Fund and the Federal 
     Disability Insurance Trust Fund are as follows:
       Fiscal year 2003: $366,278,000,000.
       Fiscal year 2004: $380,389,000,000.
       Fiscal year 2005: $390,148,000,000.
       Fiscal year 2006: $402,413,000,000.
       Fiscal year 2007: $415,269,000,000.
       Fiscal year 2008: $429,061,000,000.
       Fiscal year 2009: $445,442,000,000.
       Fiscal year 2010: $463,613,000,000.
       Fiscal year 2011: $482,034,000,000.
       Fiscal year 2012: $504,888,000,000.
       Fiscal year 2013: $531,118,000,000.
       (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 2003:
       (A) New budget authority, $3,812,000,000.
       (B) Outlays, $3,838,000,000.
       Fiscal year 2004:
       (A) New budget authority, $4,257,000,000.
       (B) Outlays, $4,207,000,000.
       Fiscal year 2005:
       (A) New budget authority, $4,338,000,000.
       (B) Outlays, $4,301,000,000.
       Fiscal year 2006:
       (A) New budget authority, $4,424,000,000.
       (B) Outlays, $4,409,000,000.
       Fiscal year 2007:
       (A) New budget authority, $4,522,000,000.
       (B) Outlays, $4,505,000,000.
       Fiscal year 2008:
       (A) New budget authority, $4,638,000,000.
       (B) Outlays, $4,617,000,000.
       Fiscal year 2009:
       (A) New budget authority, $4,792,000,000.
       (B) Outlays, $4,766,000,000.
       Fiscal year 2010:
       (A) New budget authority, $4,954,000,000.
       (B) Outlays, $4,924,000,000.
       Fiscal year 2011:
       (A) New budget authority, $5,121,000,000.
       (B) Outlays, $5,091,000,000.
       Fiscal year 2012:
       (A) New budget authority, $5,292,000,000.

[[Page 9298]]

       (B) Outlays, $5,260,000,000.
       Fiscal year 2013:
       (A) New budget authority, $5,471,000,000.
       (B) Outlays, $5,439,000,000.

     SEC. 103. MAJOR FUNCTIONAL CATEGORIES.

         The Congress determines and declares that the appropriate 
     levels of new budget authority and outlays for fiscal years 
     2003 through 2013 for each major functional category are:
       (1) National Defense (050):
       Fiscal year 2003:
       (A) New budget authority, $392,494,000,000.
       (B) Outlays, $386,229,000,000.
       Fiscal year 2004:
       (A) New budget authority, $400,546,000,000.
       (B) Outlays, $400,916,000,000.
       Fiscal year 2005:
       (A) New budget authority, $420,071,000,000.
       (B) Outlays, $414,237,000,000.
       Fiscal year 2006:
       (A) New budget authority, $440,185,000,000.
       (B) Outlays, $426,011,000,000.
       Fiscal year 2007:
       (A) New budget authority, $460,435,000,000.
       (B) Outlays, $438,656,000,000.
       Fiscal year 2008:
       (A) New budget authority, $480,886,000,000.
       (B) Outlays, $462,861,000,000.
       Fiscal year 2009:
       (A) New budget authority, $491,951,000,000.
       (B) Outlays, $479,249,000,000.
       Fiscal year 2010:
       (A) New budget authority, $502,301,000,000.
       (B) Outlays, $493,195,000,000.
       Fiscal year 2011:
       (A) New budget authority, $511,859,000,000.
       (B) Outlays, $508,131,000,000.
       Fiscal year 2012:
       (A) New budget authority, $520,553,000,000.
       (B) Outlays, $510,509,000,000.
       Fiscal year 2013:
       (A) New budget authority, $529,428,000,000.
       (B) Outlays, $524,494,000,000.
       (2) International Affairs (150):
       Fiscal year 2003:
       (A) New budget authority, $22,506,000,000.
       (B) Outlays, $19,283,000,000.
       Fiscal year 2004:
       (A) New budget authority, $25,681,000,000.
       (B) Outlays, $24,207,000,000.
       Fiscal year 2005:
       (A) New budget authority, $29,734,000,000.
       (B) Outlays, $24,917,000,000.
       Fiscal year 2006:
       (A) New budget authority, $32,308,000,000.
       (B) Outlays, $26,539,000,000.
       Fiscal year 2007:
       (A) New budget authority, $33,603,000,000.
       (B) Outlays, $28,464,000,000.
       Fiscal year 2008:
       (A) New budget authority, $34,611,000,000.
       (B) Outlays, $29,604,000,000.
       Fiscal year 2009:
       (A) New budget authority, $35,413,000,000.
       (B) Outlays, $30,733,000,000.
       Fiscal year 2010:
       (A) New budget authority, $36,258,000,000.
       (B) Outlays, $31,689,000,000.
       Fiscal year 2011:
       (A) New budget authority, $37,136,000,000.
       (B) Outlays, $32,565,000,000.
       Fiscal year 2012:
       (A) New budget authority, $38,005,000,000.
       (B) Outlays, $33,408,000,000.
       Fiscal year 2013:
       (A) New budget authority, $38,885,000,000.
       (B) Outlays, $34,298,000,000.
       (3) General Science, Space, and Technology (250):
       Fiscal year 2003:
       (A) New budget authority, $23,153,000,000.
       (B) Outlays, $21,556,000,000.
       Fiscal year 2004:
       (A) New budget authority, $23,927,000,000.
       (B) Outlays, $22,799,000,000.
       Fiscal year 2005:
       (A) New budget authority, $24,433,000,000.
       (B) Outlays, $23,861,000,000.
       Fiscal year 2006:
       (A) New budget authority, $25,217,000,000.
       (B) Outlays, $24,485,000,000.
       Fiscal year 2007:
       (A) New budget authority, $26,055,000,000.
       (B) Outlays, $25,221,000,000.
       Fiscal year 2008:
       (A) New budget authority, $26,832,000,000.
       (B) Outlays, $25,948,000,000.
       Fiscal year 2009:
       (A) New budget authority, $27,462,000,000.
       (B) Outlays, $26,639,000,000.
       Fiscal year 2010:
       (A) New budget authority, $28,121,000,000.
       (B) Outlays, $27,296,000,000.
       Fiscal year 2011:
       (A) New budget authority, $28,805,000,000.
       (B) Outlays, $27,963,000,000.
       Fiscal year 2012:
       (A) New budget authority, $29,492,000,000.
       (B) Outlays, $28,639,000,000.
       Fiscal year 2013:
       (A) New budget authority, $30,185,000,000.
       (B) Outlays, $29,319,000,000.
       (4) Energy (270):
       Fiscal year 2003:
       (A) New budget authority, $2,074,000,000.
       (B) Outlays, $439,000,000.
       Fiscal year 2004:
       (A) New budget authority, $2,634,000,000.
       (B) Outlays, $873,000,000.
       Fiscal year 2005:
       (A) New budget authority, $2,797,000,000.
       (B) Outlays, $947,000,000.
       Fiscal year 2006:
       (A) New budget authority, $2,714,000,000.
       (B) Outlays, $1,272,000,000.
       Fiscal year 2007:
       (A) New budget authority, $2,540,000,000.
       (B) Outlays, $1,069,000,000.
       Fiscal year 2008:
       (A) New budget authority, $3,080,000,000.
       (B) Outlays, $1,419,000,000.
       Fiscal year 2009:
       (A) New budget authority, $3,090,000,000.
       (B) Outlays, $1,686,000,000.
       Fiscal year 2010:
       (A) New budget authority, $3,194,000,000.
       (B) Outlays, $1,794,000,000.
       Fiscal year 2011:
       (A) New budget authority, $3,296,000,000.
       (B) Outlays, $1,976,000,000.
       Fiscal year 2012:
       (A) New budget authority, $3,408,000,000.
       (B) Outlays, $2,357,000,000.
       Fiscal year 2013:
       (A) New budget authority, $3,520,000,000.
       (B) Outlays, $2,326,000,000.
       (5) Natural Resources and Environment (300):
       Fiscal year 2003:
       (A) New budget authority, $30,816,000,000.
       (B) Outlays, $28,940,000,000.
       Fiscal year 2004:
       (A) New budget authority, $31,623,000,000.
       (B) Outlays, $30,782,000,000.
       Fiscal year 2005:
       (A) New budget authority, $32,504,000,000.
       (B) Outlays, $31,654,000,000.
       Fiscal year 2006:
       (A) New budget authority, $32,962,000,000.
       (B) Outlays, $32,830,000,000.
       Fiscal year 2007:
       (A) New budget authority, $33,386,000,000.
       (B) Outlays, $33,127,000,000.
       Fiscal year 2008:
       (A) New budget authority, $34,064,000,000.
       (B) Outlays, $33,527,000,000.
       Fiscal year 2009:
       (A) New budget authority, $35,183,000,000.
       (B) Outlays, $34,544,000,000.
       Fiscal year 2010:
       (A) New budget authority, $36,021,000,000.
       (B) Outlays, $35,360,000,000.
       Fiscal year 2011:
       (A) New budget authority, $36,829,000,000.
       (B) Outlays, $36,163,000,000.
       Fiscal year 2012:
       (A) New budget authority, $37,529,000,000.
       (B) Outlays, $36,836,000,000.
       Fiscal year 2013:
       (A) New budget authority, $38,214,000,000.
       (B) Outlays, $37,600,000,000.
       (6) Agriculture (350):
       Fiscal year 2003:
       (A) New budget authority, $24,418,000,000.
       (B) Outlays, $23,365,000,000.
       Fiscal year 2004:
       (A) New budget authority, $24,583,000,000.
       (B) Outlays, $23,656,000,000.
       Fiscal year 2005:
       (A) New budget authority, $27,003,000,000.
       (B) Outlays, $25,763,000,000.
       Fiscal year 2006:
       (A) New budget authority, $26,828,000,000.
       (B) Outlays, $25,593,000,000.
       Fiscal year 2007:
       (A) New budget authority, $26,299,000,000.
       (B) Outlays, $25,107,000,000.
       Fiscal year 2008:
       (A) New budget authority, $25,507,000,000.
       (B) Outlays, $24,381,000,000.
       Fiscal year 2009:
       (A) New budget authority, $26,092,000,000.
       (B) Outlays, $25,128,000,000.
       Fiscal year 2010:
       (A) New budget authority, $25,545,000,000.
       (B) Outlays, $24,716,000,000.
       Fiscal year 2011:
       (A) New budget authority, $24,991,000,000.
       (B) Outlays, $24,180,000,000.
       Fiscal year 2012:
       (A) New budget authority, $24,573,000,000.
       (B) Outlays, $23,778,000,000.
       Fiscal year 2013:
       (A) New budget authority, $24,297,000,000.
       (B) Outlays, $23,498,000,000.
       (7) Commerce and Housing Credit (370):
       Fiscal year 2003:
       (A) New budget authority, $8,812,000,000.
       (B) Outlays, $5,881,000,000.
       Fiscal year 2004:
       (A) New budget authority, $7,516,000,000.
       (B) Outlays, $3,574,000,000.
       Fiscal year 2005:
       (A) New budget authority, $8,743,000,000.
       (B) Outlays, $4,050,000,000.
       Fiscal year 2006:
       (A) New budget authority, $8,280,000,000.
       (B) Outlays, $3,116,000,000.
       Fiscal year 2007:
       (A) New budget authority, $8,626,000,000.
       (B) Outlays, $2,651,000,000.
       Fiscal year 2008:
       (A) New budget authority, $8,743,000,000.
       (B) Outlays, $2,243,000,000.
       Fiscal year 2009:
       (A) New budget authority, $8,526,000,000.
       (B) Outlays, $2,019,000,000.
       Fiscal year 2010:
       (A) New budget authority, $8,407,000,000.
       (B) Outlays, $1,538,000,000.
       Fiscal year 2011:
       (A) New budget authority, $8,386,000,000.
       (B) Outlays, $934,000,000.
       Fiscal year 2012:
       (A) New budget authority, $8,489,000,000.
       (B) Outlays, $642,000,000.
       Fiscal year 2013:
       (A) New budget authority, $8,563,000,000.
       (B) Outlays, $756,000,000.
       (8) Transportation (400):
       Fiscal year 2003:
       (A) New budget authority, $64,091,000,000.
       (B) Outlays, $67,847,000,000.

[[Page 9299]]

       Fiscal year 2004:
       (A) New budget authority, $69,506,000,000.
       (B) Outlays, $69,869,000,000.
       Fiscal year 2005:
       (A) New budget authority, $70,489,000,000.
       (B) Outlays, $69,442,000,000.
       Fiscal year 2006:
       (A) New budget authority, $72,496,000,000.
       (B) Outlays, $70,191,000,000.
       Fiscal year 2007:
       (A) New budget authority, $75,278,000,000.
       (B) Outlays, $71,786,000,000.
       Fiscal year 2008:
       (A) New budget authority, $76,927,000,000.
       (B) Outlays, $73,659,000,000.
       Fiscal year 2009:
       (A) New budget authority, $78,878,000,000.
       (B) Outlays, $75,632,000,000.
       Fiscal year 2010:
       (A) New budget authority, $77,747,000,000.
       (B) Outlays, $77,233,000,000.
       Fiscal year 2011:
       (A) New budget authority, $78,624,000,000.
       (B) Outlays, $78,291,000,000.
       Fiscal year 2012:
       (A) New budget authority, $79,527,000,000.
       (B) Outlays, $79,317,000,000.
       Fiscal year 2013:
       (A) New budget authority, $80,466,000,000.
       (B) Outlays, $80,346,000,000.
       (9) Community and Regional Development (450):
       Fiscal year 2003:
       (A) New budget authority, $12,251,000,000.
       (B) Outlays, $15,994,000,000.
       Fiscal year 2004:
       (A) New budget authority, $14,063,000,000.
       (B) Outlays, $15,823,000,000.
       Fiscal year 2005:
       (A) New budget authority, $14,138,000,000.
       (B) Outlays, $15,872,000,000.
       Fiscal year 2006:
       (A) New budget authority, $14,321,000,000.
       (B) Outlays, $14,961,000,000.
       Fiscal year 2007:
       (A) New budget authority, $14,536,000,000.
       (B) Outlays, $14,664,000,000.
       Fiscal year 2008:
       (A) New budget authority, $14,745,000,000.
       (B) Outlays, $14,123,000,000.
       Fiscal year 2009:
       (A) New budget authority, $14,980,000,000.
       (B) Outlays, $14,298,000,000.
       Fiscal year 2010:
       (A) New budget authority, $15,233,000,000.
       (B) Outlays, $14,501,000,000.
       Fiscal year 2011:
       (A) New budget authority, $15,492,000,000.
       (B) Outlays, $14,750,000,000.
       Fiscal year 2012:
       (A) New budget authority, $15,755,000,000.
       (B) Outlays, $14,992,000,000.
       Fiscal year 2013:
       (A) New budget authority, $16,023,000,000.
       (B) Outlays, $15,259,000,000.
       (10) Education, Training, Employment, and Social Services 
     (500):
       Fiscal year 2003:
       (A) New budget authority, $82,699,000,000.
       (B) Outlays, $81,455,000,000.
       Fiscal year 2004:
       (A) New budget authority, $90,035,000,000.
       (B) Outlays, $84,205,000,000.
       Fiscal year 2005:
       (A) New budget authority, $91,442,000,000.
       (B) Outlays, $87,020,000,000.
       Fiscal year 2006:
       (A) New budget authority, $93,428,000,000.
       (B) Outlays, $90,541,000,000.
       Fiscal year 2007:
       (A) New budget authority, $95,569,000,000.
       (B) Outlays, $92,986,000,000.
       Fiscal year 2008:
       (A) New budget authority, $97,925,000,000.
       (B) Outlays, $95,118,000,000.
       Fiscal year 2009:
       (A) New budget authority, $99,813,000,000.
       (B) Outlays, $97,440,000,000.
       Fiscal year 2010:
       (A) New budget authority, $101,551,000,000.
       (B) Outlays, $99,289,000,000.
       Fiscal year 2011:
       (A) New budget authority, $103,529,000,000.
       (B) Outlays, $101,117,000,000.
       Fiscal year 2012:
       (A) New budget authority, $105,790,000,000.
       (B) Outlays, $102,985,000,000.
       Fiscal year 2013:
       (A) New budget authority, $107,265,000,000.
       (B) Outlays, $104,934,000,000.
       (11) Health (550):
       Fiscal year 2003:
       (A) New budget authority, $222,913,000,000.
       (B) Outlays, $217,881,000,000.
       Fiscal year 2004:
       (A) New budget authority, $240,554,000,000.
       (B) Outlays, $238,785,000,000.
       Fiscal year 2005:
       (A) New budget authority, $259,701,000,000.
       (B) Outlays, $259,403,000,000.
       Fiscal year 2006:
       (A) New budget authority, $279,236,000,000.
       (B) Outlays, $279,024,000,000.
       Fiscal year 2007:
       (A) New budget authority, $299,614,000,000.
       (B) Outlays, $298,681,000,000.
       Fiscal year 2008:
       (A) New budget authority, $322,061,000,000.
       (B) Outlays, $320,731,000,000.
       Fiscal year 2009:
       (A) New budget authority, $345,548,000,000.
       (B) Outlays, $344,059,000,000.
       Fiscal year 2010:
       (A) New budget authority, $370,626,000,000.
       (B) Outlays, $369,097,000,000.
       Fiscal year 2011:
       (A) New budget authority, $396,818,000,000.
       (B) Outlays, $395,280,000,000.
       Fiscal year 2012:
       (A) New budget authority, $415,790,000,000.
       (B) Outlays, $414,384,000,000.
       Fiscal year 2013:
       (A) New budget authority, $445,484,000,000.
       (B) Outlays, $444,082,000,000.
       (12) Medicare (570):
       Fiscal year 2003:
       (A) New budget authority, $248,586,000,000.
       (B) Outlays, $248,434,000,000.
       Fiscal year 2004:
       (A) New budget authority, $266,018,000,000.
       (B) Outlays, $266,283,000,000.
       Fiscal year 2005:
       (A) New budget authority, $282,682,000,000.
       (B) Outlays, $285,630,000,000.
       Fiscal year 2006:
       (A) New budget authority, $321,623,000,000.
       (B) Outlays, $318,384,000,000.
       Fiscal year 2007:
       (A) New budget authority, $343,717,000,000.
       (B) Outlays, $343,987,000,000.
       Fiscal year 2008:
       (A) New budget authority, $369,244,000,000.
       (B) Outlays, $369,119,000,000.
       Fiscal year 2009:
       (A) New budget authority, $395,368,000,000.
       (B) Outlays, $395,107,000,000.
       Fiscal year 2010:
       (A) New budget authority, $423,288,000,000.
       (B) Outlays, $423,546,000,000.
       Fiscal year 2011:
       (A) New budget authority, $453,285,000,000.
       (B) Outlays, $456,642,000,000.
       Fiscal year 2012:
       (A) New budget authority, $485,951,000,000.
       (B) Outlays, $482,125,000,000.
       Fiscal year 2013:
       (A) New budget authority, $526,553,000,000.
       (B) Outlays, $526,809,000,000.
       (13) Income Security (600):
       Fiscal year 2003:
       (A) New budget authority, $326,390,000,000.
       (B) Outlays, $334,177,000,000.
       Fiscal year 2004:
       (A) New budget authority, $319,518,000,000.
       (B) Outlays, $324,840,000,000.
       Fiscal year 2005:
       (A) New budget authority, $333,821,000,000.
       (B) Outlays, $337,123,000,000.
       Fiscal year 2006:
       (A) New budget authority, $341,816,000,000.
       (B) Outlays, $344,292,000,000.
       Fiscal year 2007:
       (A) New budget authority, $349,199,000,000.
       (B) Outlays, $350,945,000,000.
       Fiscal year 2008:
       (A) New budget authority, $361,697,000,000.
       (B) Outlays, $362,808,000,000.
       Fiscal year 2009:
       (A) New budget authority, $373,372,000,000.
       (B) Outlays, $374,083,000,000.
       Fiscal year 2010:
       (A) New budget authority, $384,844,000,000.
       (B) Outlays, $385,347,000,000.
       Fiscal year 2011:
       (A) New budget authority, $400,266,000,000.
       (B) Outlays, $400,688,000,000.
       Fiscal year 2012:
       (A) New budget authority, $403,738,000,000.
       (B) Outlays, $404,146,000,000.
       Fiscal year 2013:
       (A) New budget authority, $418,672,000,000.
       (B) Outlays, $419,245,000,000.
       (14) Social Security (650):
       Fiscal year 2003:
       (A) New budget authority, $13,255,000,000.
       (B) Outlays, $13,255,000,000.
       Fiscal year 2004:
       (A) New budget authority, $14,294,000,000.
       (B) Outlays, $14,293,000,000.
       Fiscal year 2005:
       (A) New budget authority, $15,471,000,000.
       (B) Outlays, $15,471,000,000.
       Fiscal year 2006:
       (A) New budget authority, $16,421,000,000.
       (B) Outlays, $16,421,000,000.
       Fiscal year 2007:
       (A) New budget authority, $17,919,000,000.
       (B) Outlays, $17,919,000,000.
       Fiscal year 2008:
       (A) New budget authority, $19,704,000,000.
       (B) Outlays, $19,704,000,000.
       Fiscal year 2009:
       (A) New budget authority, $21,810,000,000.
       (B) Outlays, $21,810,000,000.
       Fiscal year 2010:
       (A) New budget authority, $24,283,000,000.
       (B) Outlays, $24,283,000,000.
       Fiscal year 2011:
       (A) New budget authority, $28,170,000,000.
       (B) Outlays, $28,170,000,000.
       Fiscal year 2012:
       (A) New budget authority, $31,357,000,000.
       (B) Outlays, $31,357,000,000.
       Fiscal year 2013:
       (A) New budget authority, $34,347,000,000.
       (B) Outlays, $34,347,000,000.
       (15) Veterans Benefits and Services (700):
       Fiscal year 2003:
       (A) New budget authority, $57,597,000,000.
       (B) Outlays, $57,486,000,000.
       Fiscal year 2004:
       (A) New budget authority, $63,779,000,000.
       (B) Outlays, $63,209,000,000.
       Fiscal year 2005:
       (A) New budget authority, $67,135,000,000.
       (B) Outlays, $66,553,000,000.
       Fiscal year 2006:
       (A) New budget authority, $65,397,000,000.
       (B) Outlays, $64,995,000,000.
       Fiscal year 2007:
       (A) New budget authority, $63,874,000,000.
       (B) Outlays, $63,442,000,000.

[[Page 9300]]

       Fiscal year 2008:
       (A) New budget authority, $67,666,000,000.
       (B) Outlays, $67,398,000,000.
       Fiscal year 2009:
       (A) New budget authority, $69,279,000,000.
       (B) Outlays, $68,924,000,000.
       Fiscal year 2010:
       (A) New budget authority, $70,992,000,000.
       (B) Outlays, $70,588,000,000.
       Fiscal year 2011:
       (A) New budget authority, $75,669,000,000.
       (B) Outlays, $75,249,000,000.
       Fiscal year 2012:
       (A) New budget authority, $72,618,000,000.
       (B) Outlays, $72,097,000,000.
       Fiscal year 2013:
       (A) New budget authority, $77,455,000,000.
       (B) Outlays, $76,989,000,000.
       (16) Administration of Justice (750):
       Fiscal year 2003:
       (A) New budget authority, $38,543,000,000.
       (B) Outlays, $37,712,000,000.
       Fiscal year 2004:
       (A) New budget authority, $37,626,000,000.
       (B) Outlays, $40,788,000,000.
       Fiscal year 2005:
       (A) New budget authority, $37,946,000,000.
       (B) Outlays, $39,193,000,000.
       Fiscal year 2006:
       (A) New budget authority, $37,984,000,000.
       (B) Outlays, $38,329,000,000.
       Fiscal year 2007:
       (A) New budget authority, $38,461,000,000.
       (B) Outlays, $38,252,000,000.
       Fiscal year 2008:
       (A) New budget authority, $39,477,000,000.
       (B) Outlays, $39,128,000,000.
       Fiscal year 2009:
       (A) New budget authority, $40,497,000,000.
       (B) Outlays, $40,212,000,000.
       Fiscal year 2010:
       (A) New budget authority, $41,599,000,000.
       (B) Outlays, $41,299,000,000.
       Fiscal year 2011:
       (A) New budget authority, $42,889,000,000.
       (B) Outlays, $42,472,000,000.
       Fiscal year 2012:
       (A) New budget authority, $44,207,000,000.
       (B) Outlays, $43,760,000,000.
       Fiscal year 2013:
       (A) New budget authority, $45,576,000,000.
       (B) Outlays, $45,120,000,000.
       (17) General Government (800):
       Fiscal year 2003:
       (A) New budget authority, $18,185,000,000.
       (B) Outlays, $18,110,000,000.
       Fiscal year 2004:
       (A) New budget authority, $20,202,000,000.
       (B) Outlays, $20,066,000,000.
       Fiscal year 2005:
       (A) New budget authority, $20,635,000,000.
       (B) Outlays, $20,714,000,000.
       Fiscal year 2006:
       (A) New budget authority, $20,656,000,000.
       (B) Outlays, $20,485,000,000.
       Fiscal year 2007:
       (A) New budget authority, $21,126,000,000.
       (B) Outlays, $20,876,000,000.
       Fiscal year 2008:
       (A) New budget authority, $21,236,000,000.
       (B) Outlays, $21,013,000,000.
       Fiscal year 2009:
       (A) New budget authority, $21,946,000,000.
       (B) Outlays, $21,504,000,000.
       Fiscal year 2010:
       (A) New budget authority, $22,695,000,000.
       (B) Outlays, $22,212,000,000.
       Fiscal year 2011:
       (A) New budget authority, $23,458,000,000.
       (B) Outlays, $22,946,000,000.
       Fiscal year 2012:
       (A) New budget authority, $24,255,000,000.
       (B) Outlays, $23,880,000,000.
       Fiscal year 2013:
       (A) New budget authority, $25,076,000,000.
       (B) Outlays, $24,520,000,000.
       (18) Net Interest (900):
       Fiscal year 2003:
       (A) New budget authority, $240,176,000,000.
       (B) Outlays, $240,176,000,000.
       Fiscal year 2004:
       (A) New budget authority, $259,414,000,000.
       (B) Outlays, $259,414,000,000.
       Fiscal year 2005:
       (A) New budget authority, $310,630,000,000.
       (B) Outlays, $310,630,000,000.
       Fiscal year 2006:
       (A) New budget authority, $352,219,000,000.
       (B) Outlays, $352,219,000,000.
       Fiscal year 2007:
       (A) New budget authority, $380,574,000,000.
       (B) Outlays, $380,574,000,000.
       Fiscal year 2008:
       (A) New budget authority, $405,647,000,000.
       (B) Outlays, $405,647,000,000.
       Fiscal year 2009:
       (A) New budget authority, $429,542,000,000.
       (B) Outlays, $429,542,000,000.
       Fiscal year 2010:
       (A) New budget authority, $450,651,000,000.
       (B) Outlays, $450,651,000,000.
       Fiscal year 2011:
       (A) New budget authority, $473,381,000,000.
       (B) Outlays, $473,381,000,000.
       Fiscal year 2012:
       (A) New budget authority, $496,015,000,000.
       (B) Outlays, $496,015,000,000.
       Fiscal year 2013:
       (A) New budget authority, $514,513,000,000.
       (B) Outlays, $514,513,000,000.
       (19) Allowances (920):
       Fiscal year 2003:
       (A) New budget authority, $74,758,000,000.
       (B) Outlays, $38,279,000,000.
       Fiscal year 2004:
       (A) New budget authority, -$7,621,000,000.
       (B) Outlays, $22,346,000,000.
       Fiscal year 2005:
       (A) New budget authority, -$6,541,000,000.
       (B) Outlays, $1,520,000,000.
       Fiscal year 2006:
       (A) New budget authority, -$7,331,000,000.
       (B) Outlays, -$5,930,000,000.
       Fiscal year 2007:
       (A) New budget authority, -$8,947,000,000.
       (B) Outlays, -$8,796,000,000.
       Fiscal year 2008:
       (A) New budget authority, -$9,959,000,000.
       (B) Outlays, -$9,951,000,000.
       Fiscal year 2009:
       (A) New budget authority, -$11,526,000,000.
       (B) Outlays, -$9,978,000,000.
       Fiscal year 2010:
       (A) New budget authority, -$12,888,000,000.
       (B) Outlays, -$10,880,000,000.
       Fiscal year 2011:
       (A) New budget authority, -$16,414,000,000.
       (B) Outlays, -$12,671,000,000.
       Fiscal year 2012:
       (A) New budget authority, -$21,460,000,000.
       (B) Outlays, -$15,707,000,000.
       Fiscal year 2013:
       (A) New budget authority, -$25,618,000,000.
       (B) Outlays, -$19,181,000,000.
       (20) Undistributed Offsetting Receipts (950):
       Fiscal year 2003:
       (A) New budget authority, -$41,104,000,000.
       (B) Outlays, -$41,104,000,000.
       Fiscal year 2004:
       (A) New budget authority, -$42,894,000,000.
       (B) Outlays, -$42,894,000,000.
       Fiscal year 2005:
       (A) New budget authority, -$52,598,000,000.
       (B) Outlays, -$52,598,000,000.
       Fiscal year 2006:
       (A) New budget authority, -$54,459,000,000.
       (B) Outlays, -$54,459,000,000.
       Fiscal year 2007:
       (A) New budget authority, -$49,035,000,000.
       (B) Outlays, -$49,035,000,000.
       Fiscal year 2008:
       (A) New budget authority, -$51,221,000,000.
       (B) Outlays, -$51,221,000,000.
       Fiscal year 2009:
       (A) New budget authority, -$52,785,000,000.
       (B) Outlays, -$52,785,000,000.
       Fiscal year 2010:
       (A) New budget authority, -$54,856,000,000.
       (B) Outlays, -$54,856,000,000.
       Fiscal year 2011:
       (A) New budget authority, -$57,007,000,000.
       (B) Outlays, -$57,007,000,000.
       Fiscal year 2012:
       (A) New budget authority, -$61,585,000,000.
       (B) Outlays, -$61,585,000,000.
       Fiscal year 2013:
       (A) New budget authority, -$63,783,000,000.
       (B) Outlays, -$63,783,000,000.
                        TITLE II--RECONCILIATION

     SEC. 201. RECONCILIATION FOR ECONOMIC GROWTH AND TAX 
                   SIMPLIFICATION AND FAIRNESS.

       (a) In the House.--The House Committee on Ways and Means 
     shall report a reconciliation bill not later than May 8, 
     2003, that consists of changes in laws within its 
     jurisdiction sufficient to reduce revenues by not more than 
     $535,000,000,000 for the period of fiscal years 2003 through 
     2013 and increase the total level of outlays by not more than 
     $15,000,000,000 for the period of fiscal years 2003 through 
     2013.
       (b) In the Senate.--The Senate Committee on Finance shall 
     report a reconciliation bill not later than May 8, 2003, that 
     consists of changes in laws within its jurisdiction 
     sufficient to reduce revenues by not more than 
     $522,524,000,000 and increase the total level of outlays by 
     not more than $27,476,000,000 for the period of fiscal years 
     2003 through 2013.

     SEC. 202. LIMIT ON SENATE CONSIDERATION OF RECONCILIATION.

       (a) Point of Order.--It shall not be in order for the 
     Senate to consider a bill reported pursuant to section 201, 
     or an amendment thereto, which would cause the total revenue 
     reduction to exceed $322,524,000,000 or the total outlay 
     increase to exceed $27,476,000,000 for the period of fiscal 
     years 2003 through 2013, except for the purpose of inserting 
     the text of a Senate-passed measure and requesting a 
     conference with the House of Representatives.
       (b) 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.
       (c) Appeals.--An affirmative vote of three-fifths of the 
     Members of the Senate, duly chosen and sworn, shall be 
     required to sustain an appeal of the ruling of the Chair on 
     the point of order raised under this section.
      TITLE III--SUBMISSIONS TO ELIMINATE WASTE, FRAUD, AND ABUSE

     SEC. 301. SUBMISSIONS OF FINDINGS PROVIDING FOR THE 
                   ELIMINATION OF WASTE, FRAUD, AND ABUSE IN 
                   MANDATORY PROGRAMS.

       (a) Findings and Purpose.--The Congress finds that--
       (1) the Inspector General of the Department of Education 
     has found that nearly 23 percent of recipients whose loans 
     were discharged due to disability claims were gainfully 
     employed;
       (2) based on data provided by the Office of Management and 
     Budget, it is estimated that more than $8 billion in 
     erroneous earned income tax payments are made each year;
       (3) the Office of Management and Budget estimates that 
     erroneous payments for food stamps account for almost 9 
     percent of total benefits;
       (4) mismanagement of more than $3 billion in trust funds 
     controlled by the Bureau of Indian Affairs led the Congress 
     to take extraordinary measures to regain control of these 
     funds;

[[Page 9301]]

       (5) in its semiannual reports to Congress, the Inspector 
     General of the Office of Personnel Management has documented 
     numerous instances of the Government continuing to make 
     electronic payments for retirement benefits through the Civil 
     Service Retirement System after the death of the eligible 
     annuitants; and
       (6) numerous other examples of waste, fraud, and abuse are 
     reported regularly by government watchdog agencies.
       (b) Submissions Providing for the Elimination of Waste, 
     Fraud, and Abuse in Mandatory Programs.--Not later than 
     September 2, 2003, the House committees named in subsection 
     (c) and the Senate committees named in subsection (d) shall 
     submit findings that identify changes in law within their 
     jurisdictions that would achieve the specified level of 
     savings through the elimination of waste, fraud, and abuse. 
     After receiving those recommendations, the Committees on the 
     Budget may use them in the development of future concurrent 
     resolutions on the budget. For purposes of this subsection, 
     the specified level of savings for each committee shall be 
     inserted in the Congressional Record by the chairmen of the 
     Committee on the Budget by May 16, 2003.
       (c) House Committees.--The following committees of the 
     House of Representatives shall submit findings to the House 
     Committee on the Budget pursuant to subsection (b): the 
     Committee on Agriculture, the Committee on Armed Services, 
     the Committee on Education and the Workforce, the Committee 
     on Energy and Commerce, the Committee on Financial Services, 
     the Committee on Government Reform, the Committee on House 
     Administration, the Committee on International Relations, the 
     Committee on the Judiciary, the Committee on Resources, the 
     Committee on Science, the Committee on Small Business, the 
     Committee on Transportation and Infrastructure, the Committee 
     on Veterans' Affairs, and the Committee on Ways and Means.
       (d) Senate Committees.--The following committees of the 
     Senate shall submit their findings to the Senate Committee on 
     the Budget pursuant to subsection (b): the Committee on 
     Agriculture, Nutrition, and Forestry, the Committee on Armed 
     Services, the Committee Banking, Housing, and Urban Affairs, 
     the Committee Commerce, Science, and Transportation, the 
     Committee on Energy and Natural Resources, the Committee on 
     Environment and Public Works, the Committee on Finance, the 
     Committee on Foreign Relations, the Committee on Governmental 
     Affairs, the Committee on Health, Education, Labor, and 
     Pensions, the Committee on the Judiciary, and the Committee 
     on Veterans' Affairs.
       (e) GAO Report.--By August 1, 2003, the Comptroller General 
     shall submit to the Committees on the Budget a comprehensive 
     report identifying instances in which the committees of 
     jurisdiction may make legislative changes to improve the 
     economy, efficiency, and effectiveness of programs within 
     their jurisdiction.
           TITLE IV--RESERVE FUNDS AND CONTINGENCY PROCEDURE
 Subtitle A--Reserve Funds for Legislation Assumed in Budget Aggregates

     SEC. 401. RESERVE FUND FOR MEDICARE MODERNIZATION AND 
                   PRESCRIPTION DRUGS.

       (a) In the House.--(1) In the House, if the Committee on 
     Ways and Means or the Committee on Energy and Commerce 
     reports a bill or joint resolution, or if an amendment 
     thereto is offered or a conference report thereon is 
     submitted, that provides a prescription drug benefit and 
     modernizes medicare, and provides adjustments to the medicare 
     program on a fee-for-service, capitated, or other basis, the 
     chairman of the Committee on the Budget may revise the 
     appropriate allocations described in paragraph (3) for such 
     committees and other appropriate levels in this resolution by 
     the amount provided by that measure for that purpose, but not 
     to exceed $7,000,000,000 in new budget authority and 
     $7,000,000,000 in outlays for fiscal year 2004 and 
     $400,000,000,000 in new budget authority and $400,000,000,000 
     in outlays for the period of fiscal years 2004 through 2013.
       (2) After the consideration of any measure for which an 
     adjustment is made pursuant to paragraph (1), the chairman of 
     the Committee on the Budget shall make any further 
     appropriate adjustments in allocations and budget aggregates.
       (3) In the House, there shall be a separate section 302(a) 
     allocation to the appropriate committees for medicare. For 
     purposes of enforcing such separate allocation under section 
     302(f) of the Congressional Budget Act of 1974, the ``first 
     fiscal year'' and the ``total of fiscal years'' shall be 
     deemed to refer to fiscal year 2004 and the total of fiscal 
     years 2004 through 2013 included in the joint explanatory 
     statement of managers accompanying this resolution, 
     respectively. Such separate allocation shall be the exclusive 
     allocation for medicare under section 302(a) of such Act.
       (b) In the Senate.--If the Committee on Finance of the 
     Senate reports a bill or joint resolution, or an amendment is 
     offered thereto or a conference report thereon is submitted, 
     that strengthens and enhances 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 or promotes geographic equity 
     payments, the chairman of the Committee on the Budget, may 
     revise appropriate budgetary aggregates and committee 
     allocations of new budget authority and outlays provided by 
     that measure for that purpose, but not to exceed 
     $7,000,000,000 for fiscal year 2004 and $400,000,000,000 for 
     the period of fiscal years 2004 through 2013.

     SEC. 402. RESERVE FUND FOR MEDICAID REFORM.

       If the Committee on Energy and Commerce of the House or the 
     Committee on Finance of the Senate reports a bill or joint 
     resolution, or if an amendment thereto is offered or a 
     conference report thereon is submitted, that modernizes 
     medicaid, the appropriate chairman of the Committee on the 
     Budget may revise appropriate budgetary aggregates and 
     committee allocations of new budget authority and outlays 
     provided by that measure for that purpose, but not to exceed 
     $3,258,000,000 in new budget authority and outlays for fiscal 
     year 2004, $8,944,000,000 in new budget authority and outlays 
     for the period of fiscal years 2004 through 2008, and 
     $12,782,000,000 in budget authority and outlays for the 
     period of fiscal years 2004 through 2010, if the legislation 
     would not increase the deficit over the period of fiscal 
     years 2004 through 2013.

     SEC. 403. RESERVE FUND FOR STATE CHILDREN'S HEALTH INSURANCE 
                   PROGRAM.

       If the Committee on Energy and Commerce of the House or the 
     Committee on Finance of the Senate reports a bill or joint 
     resolution, or if an amendment thereto is offered or a 
     conference report thereon is submitted, that extends the 
     availability of fiscal year 1998 and 1999 expired State 
     Children's Health Insurance Program allotments and the 
     expiring fiscal year 2000 allotments, the appropriate 
     chairman of the Committee on the Budget may revise 
     appropriate budgetary aggregates and committee allocations of 
     new budget authority and outlays by the amount provided by 
     that measure for that purpose, but not to exceed 
     $1,260,000,000 in new budget authority and $85,000,000 in 
     outlays for fiscal year 2003, $1,330,000,000 in new budget 
     authority and $85,000,000 in outlays for fiscal year 2004, 
     $690,000,000 in new budget authority and $760,000,000 in 
     outlays for the period of fiscal years 2004 through 2008, and 
     $565,000,000 in new budget authority and $890,000,000 in 
     outlays for the period of fiscal years 2004 through 2013.

     SEC. 404. RESERVE FUND FOR PROJECT BIOSHIELD.

       (a) In the House.--In the House, if the appropriate 
     committee of jurisdiction reports a bill or joint resolution, 
     or if an amendment thereto is offered or a conference report 
     thereon is submitted, that establishes a program to 
     accelerate the research, development, and purchase of 
     biomedical threat countermeasures and--
       (1) such measure provides new budget authority to carry out 
     such program; or
       (2) such measure authorizes discretionary new budget 
     authority to carry out such program and the Committee on 
     Appropriations reports a bill or joint resolution that 
     provides new budget authority to carry out such program,

     the chairman of the Committee on the Budget may revise the 
     allocations for the committee providing such new budget 
     authority, and other appropriate levels in this resolution, 
     by the amount provided for that purpose, but, in the case of 
     a measure described in paragraph (1), not to exceed 
     $890,000,000 in new budget authority for fiscal year 2004 and 
     outlays flowing therefrom and $3,418,000,000 in new budget 
     authority for the period of fiscal years 2004 through 2008 
     and outlays flowing therefrom or, in the case of a measure 
     described in paragraph (2), not to exceed $890,000,000 in new 
     budget authority for fiscal year 2004 and outlays flowing 
     therefrom. Notwithstanding the preceding sentence, the total 
     such revision for fiscal year 2004 may not exceed 
     $890,000,000 in new budget authority and outlays flowing 
     therefrom.
       (b) In the Senate.--In the Senate, if the Committee on 
     Health, Education, Labor, and Pensions reports a bill or 
     joint resolution, or if an amendment thereto is offered or a 
     conference report thereon is submitted, that provides for the 
     Department of Homeland Security to procure countermeasures 
     necessary to protect the public health from current and 
     emerging threats of chemical, biological, radiological, or 
     nuclear agents for inclusion by the Secretary of Health and 
     Human Services in the Strategic National Stockpile, the 
     chairman of the Committee on the Budget may revise 
     appropriate budgetary aggregates and committee allocations of 
     new budget authority and outlays provided by that measure for 
     that purpose, but not to exceed $890,000,000 in new budget 
     authority and $575,000,000 in outlays for fiscal year 2004, 
     and $5,593,000,000 in new budget authority and $5,593,000,000 
     in outlays for the period of fiscal years 2004 through 2013.

     SEC. 405. RESERVE FUND FOR HEALTH INSURANCE FOR THE 
                   UNINSURED.

       If the committee of jurisdiction in the House or the 
     Committee on Finance of the Senate reports 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 
     allocations of new budget authority and outlays, the revenue 
     aggregates, and other appropriate aggregates by the amount 
     provided by that measure for that purpose, but not to exceed 
     $28,457,000,000 for the period of fiscal years 2004 through 
     2008 and $49,965,000,000 for the period of fiscal years 2004 
     through 2013.

     SEC. 406. RESERVE FUND FOR CHILDREN WITH SPECIAL NEEDS.

       If the Committee on Energy and Commerce of the House or the 
     Committee on Finance of the Senate reports a bill or joint 
     resolution, or if an amendment thereto is offered or a 
     conference report thereon is submitted, that provides States

[[Page 9302]]

     with the option to expand Medicaid coverage for children with 
     special needs, allowing families of disabled children to 
     purchase coverage under the Medicaid Program for such 
     children, 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 outlays by the amount provided by 
     that measure for that purpose, but not to exceed $43,000,000 
     in new budget authority and $42,000,000 in outlays for fiscal 
     year 2004, $1,627,000,000 in new budget authority and 
     $1,566,000,000 in outlays for the period of fiscal years 2004 
     through 2008, and $7,462,000,000 in new budget authority and 
     $7,261,000,000 in outlays for the period of fiscal years 2004 
     through 2013.
                   Subtitle B--Contingency Procedure

     SEC. 411. CONTINGENCY PROCEDURE FOR SURFACE TRANSPORTATION.

       (a) In General.--If the Committee on Transportation and 
     Infrastructure of the House or the Committee on Environment 
     and Public Works, the Committee on Banking, Housing, and 
     Urban Affairs, or the Committee on Commerce, Science, and 
     Transportation of the Senate reports a bill or joint 
     resolution, or if an amendment thereto is offered or a 
     conference report thereon is submitted, that provides new 
     budget authority for the budget accounts or portions thereof 
     in the highway and transit categories as defined in sections 
     250(c)(4)(B) and (C) of the Balanced Budget and Emergency 
     Deficit Control Act of 1985 in excess of the following 
     amounts:
       (1) for fiscal year 2004: $41,740,000,000,
       (2) for fiscal year 2005: $42,743,000,000,
       (3) for fiscal year 2006: $43,721,000,000,
       (4) for fiscal year 2007: $45,795,000,000,
       (5) for fiscal year 2008: $47,031,000,000, or
       (6) for fiscal year 2009: $47,818,000,000,

     the chairman of the appropriate Committee on the Budget may 
     adjust the appropriate budget aggregates and increase the 
     allocation of new budget authority to such committee for 
     fiscal year 2004 and for the period of fiscal years 2004 
     through 2008 to the extent such excess is offset by a 
     reduction in mandatory outlays from the Highway Trust Fund or 
     an increase in receipts appropriated to such fund for the 
     applicable fiscal year caused by such legislation or any 
     previously enacted legislation. In the Senate, any increase 
     in receipts must be reported from the Committee on Finance.
       (b) Adjustment for Outlays.--(1) For fiscal year 2004, in 
     the House and in the Senate, if a bill or joint resolution is 
     reported, or if an amendment thereto is offered or a 
     conference report thereon is submitted, that changes 
     obligation limitations such that the total limitations are in 
     excess of $39,684,000,000 for fiscal year 2004, for programs, 
     projects, and activities within the highway and transit 
     categories as defined in sections 250(c)(4)(B) and (C) of the 
     Balanced Budget and Emergency Deficit Control Act of 1985 and 
     if legislation has been enacted that satisfies the conditions 
     set forth in subsection (a) for such fiscal year, the 
     appropriate chairman of the Committee on the Budget may 
     increase the allocation of outlays and appropriate aggregates 
     for such fiscal year for the committee reporting such measure 
     by the amount of outlays that corresponds to such excess 
     obligation limitations, but not to exceed the amount of such 
     excess that was offset pursuant to subsection (a).
       (2) For fiscal year 2005, in the Senate, if a bill or joint 
     resolution is reported, or if an amendment thereto is offered 
     or a conference report thereon is submitted, that changes 
     obligation limitations such that the total limitations are in 
     excess of $40,788,000,000 for fiscal year 2005, for programs, 
     projects, and activities within the highway and transit 
     categories as defined in sections 250(c)(4)(B) and (C) of the 
     Balanced Budget and Emergency Deficit Control Act of 1985 and 
     if legislation has been enacted that satisfies the conditions 
     set forth in subsection (a) for such fiscal year, the 
     chairman of the Committee on the Budget may increase the 
     allocation of outlays and appropriate aggregates for such 
     fiscal year for the committee reporting such measure by the 
     amount of outlays that corresponds to such excess obligation 
     limitations, but not to exceed the amount of such excess that 
     was offset pursuant to subsection (a).
       (c) Statement of Intent.--It is the intent of Congress that 
     the increase in new budget authority and outlays above the 
     baseline assumed for highways and highway safety in section 
     103 of this resolution is derived from the resources 
     available to the Highway Trust Fund.
           Subtitle C--Adjustments to Fiscal Year 2003 Levels

     SEC. 421. SUPPLEMENTAL APPROPRIATIONS FOR FISCAL YEAR 2003.

       If legislation making supplemental appropriations for 
     fiscal year 2003 is enacted before May 1, 2003, the 
     appropriate chairman of the Committee on the Budget shall 
     make the appropriate adjustments in the appropriate 
     allocations and aggregates of new budget authority and 
     outlays to reflect the difference between such measure and 
     the corresponding levels assumed in this resolution.
                      TITLE V--BUDGET ENFORCEMENT

     SEC. 501. RESTRICTIONS ON ADVANCE APPROPRIATIONS.

       (a) In the House.--(1)(A) In the House, except as provided 
     in paragraph (2), 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.
       (B) Managers on the part of the House may not agree to a 
     Senate amendment that would violate subparagraph (A) unless 
     specific authority to agree to the amendment first is given 
     by the House by a separate vote with respect thereto.
       (2) In the House, an advance appropriation may be provided 
     for fiscal year 2005 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, Part A'' in 
     an aggregate amount not to exceed $23,158,000,000 in new 
     budget authority, and an advance appropriation may be 
     provided for fiscal year 2006 for any program identified in 
     such statement under the heading ``Accounts Identified for 
     Advance Appropriations, Part B''.
       (3) In this subsection, 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 2004 that first becomes 
     available for any fiscal year after 2004.
       (b) In the Senate.--(1) Except as provided in paragraph 
     (2), it shall not be in order in the Senate to consider any 
     bill, joint resolution, motion, amendment, or conference 
     report that would provide an advance appropriation.
       (2) An advance appropriation may be provided for fiscal 
     years 2005 and 2006 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 $23,158,000,000 in new budget 
     authority in each year.
       (3)(A) In the Senate, paragraph (1) may be waived or 
     suspended only by an affirmative vote of three-fifths of the 
     Members, duly chosen and sworn. An affirmative vote of three-
     fifths of the Members of the Senate, duly chosen and sworn, 
     shall be required to sustain an appeal of the ruling of the 
     Chair on a point of order raised under paragraph (1).
       (B) A point of order under paragraph (1) may be raised by a 
     Senator as provided in section 313(e) of the Congressional 
     Budget Act of 1974.
       (C) If a point of order is sustained under paragraph (1) 
     against a conference report in the Senate, the report shall 
     be disposed of as provided in section 313(d) of the 
     Congressional Budget Act of 1974.
       (4) In this subsection, 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 2004 that first becomes 
     available for any fiscal year after 2004 or making general 
     appropriations or continuing appropriations for fiscal year 
     2005 that first becomes available for any fiscal year after 
     2005.

     SEC. 502. EMERGENCY LEGISLATION.

       (a) Purpose.--It is the purpose of this section, in the 
     absence of an extension of the discretionary spending limits 
     and PAYGO requirements under the Balanced Budget and 
     Emergency Deficit Control Act of 1985, to enable the Congress 
     to designate provisions of legislation as an emergency in 
     order to exempt such measures from enforcement of this 
     resolution with respect to the new budget authority, outlays, 
     and receipts resulting from such provisions.
       (b) In the House.--
       (1) Exemption of emergency provisions.--In the House, any 
     new budget authority, new entitlement authority, outlays, and 
     receipts resulting from any provision designated in that 
     provision as an emergency requirement, pursuant to this 
     section, in any bill, joint resolution, amendment, or 
     conference report shall not count for purposes of sections 
     302, 303, 311, and 401 of the Congressional Budget Act of 
     1974.
       (2) Designations.--
       (A) Guidance.--In the House, if a provision of legislation 
     is designated as an emergency requirement under this section, 
     the committee report and any statement of managers 
     accompanying that legislation shall include an explanation of 
     the manner in which the provision meets the criteria in 
     subparagraph (B). If such legislation is to be considered by 
     the House without being reported, then the committee shall 
     cause the explanation to be published in the Congressional 
     Record in advance of floor consideration.
       (B) Criteria.--
       (i) In general.--Any such provision is an emergency 
     requirement if the situation addressed by such provision is--

       (I) necessary, essential, or vital (not merely useful or 
     beneficial);

       (II) sudden, quickly coming into being, and not building up 
     over time;
       (III) an urgent, pressing, and compelling need requiring 
     immediate action;
       (IV) subject to clause (ii), unforeseen, unpredictable, and 
     unanticipated; and
       (V) not permanent, temporary in nature.
       (ii) Unforeseen.--An emergency that is part of an aggregate 
     level of anticipated emergencies, particularly when normally 
     estimated in advance, is not unforeseen.
       (c) In the Senate.--
       (1) Authority to designate.--In the Senate, with respect to 
     a provision of direct spending or receipts legislation or 
     appropriations for discretionary accounts that the President 
     designates as an emergency requirement and that the Congress 
     so designates in such measure, the amounts of new budget 
     authority, outlays, and receipts in all fiscal years 
     resulting from that provision shall be treated as an 
     emergency requirement for the purpose of this section.
       (2) Exemption of emergency provisions.--In the Senate, any 
     new budget authority, outlays, and receipts resulting from 
     any provision

[[Page 9303]]

     designated as an emergency requirement, pursuant to this 
     section, in any bill, joint resolution, amendment, or 
     conference report shall not count for purposes of sections 
     302, 303, 311, and 401 of the Congressional Budget Act of 
     1974 and sections 504 (relating to discretionary spending 
     limits in the Senate) and 505 (relating to the paygo 
     requirement in the Senate) of this resolution.
       (3) Designations.--
       (A) Guidance.--In the Senate, if a provision of legislation 
     is designated as an emergency requirement under this section, 
     the committee report and any statement of managers 
     accompanying that legislation shall include an explanation of 
     the manner in which the provision meets the criteria in 
     subparagraph (B).
       (B) Criteria.--
       (i) In general.--Any such provision is an emergency 
     requirement if the situation addressed by such provision is--
       (I) necessary, essential, or vital (not merely useful or 
     beneficial);
       (II) sudden, quickly coming into being, and not building up 
     over time;
       (III) an urgent, pressing, and compelling need requiring 
     immediate action;
       (IV) subject to clause (ii), unforeseen, unpredictable, and 
     unanticipated; and
       (V) not permanent, temporary in nature.
       (ii) Unforeseen.--An emergency that is part of an aggregate 
     level of anticipated emergencies, particularly when normally 
     estimated in advance, is not unforeseen.
       (4) Definitions.--In this subsection, the terms ``direct 
     spending'', ``receipts'', and ``appropriations for 
     discretionary accounts'' means any provision of a bill, joint 
     resolution, amendment, motion, or conference report that 
     affects direct spending, receipts, or appropriations as those 
     terms have been defined and interpreted for purposes of the 
     Balanced Budget and Emergency Deficit Control Act of 1985.
       (5) Point of order.--When the Senate is considering a bill, 
     resolution, amendment, motion, or conference report, if a 
     point of order is made by a Senator against an emergency 
     designation in that measure, that provision making such a 
     designation shall be stricken from the measure and may not be 
     offered as an amendment from the floor.
       (6) Waiver and appeal.--Paragraph (5) 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 to sustain an appeal of 
     the ruling of the Chair on a point of order raised under this 
     section.
       (7) Definition of an emergency designation.--For purposes 
     of paragraph (5), a provision shall be considered an 
     emergency designation if it designates any item as an 
     emergency requirement pursuant to this section.
       (8) Form of the point of order.--A point of order under 
     paragraph (5) may be raised by a Senator as provided in 
     section 313(e) of the Congressional Budget Act of 1974.
       (9) Conference reports.--If a point of order is sustained 
     under paragraph (5) against a conference report, the report 
     shall be disposed of as provided in section 313(d) of the 
     Congressional Budget Act of 1974.
       (10) Exception for defense spending.--Paragraph (5) shall 
     not apply against an emergency designation for a provision 
     making discretionary appropriations in the defense category.

     SEC. 503. EXTENSION OF SUPERMAJORITY ENFORCEMENT.

       (a) In General.--Notwithstanding any provision of the 
     Congressional Budget Act of 1974, subsections (c)(2) and 
     (d)(3) of section 904 of the Congressional Budget Act of 1974 
     shall remain in effect for purposes of Senate enforcement 
     through September 30, 2008.
       (b) Repeal.--Senate Resolution 304, agreed to October 16, 
     2002 (107th Congress), is repealed.

     SEC. 504. DISCRETIONARY SPENDING LIMITS IN THE SENATE.

       (a) Discretionary Spending Limits.--In the Senate and as 
     used in this section, the term ``discretionary spending 
     limit'' means--
       (1) for fiscal year 2003--
       (A) $839,118,000,000 in new budget authority and 
     $805,146,000,000 in outlays for the discretionary category;
       (B) for the highway category, $31,264,000,000 in outlays; 
     and
       (C) for the mass transit category, $1,436,000,000 in new 
     budget authority, and $6,551,000,000 in outlays;
       (2) for fiscal year 2004--
       (A) $782,999,000,000 in new budget authority and 
     $822,563,000,000 in outlays for the discretionary category;
       (B) for the highway category, $31,555,000,000 in outlays; 
     and
       (C) for the mass transit category, $1,461,000,000 in new 
     budget authority, and $6,634,000,000 in outlays; and
       (3) for fiscal year 2005--
       (A) $812,598,000,000 in new budget authority, and 
     $817,883,000,000 in outlays for the discretionary category;
       (B) for the highway category, $33,393,000,000 in outlays; 
     and
       (C) for the mass transit category $1,488,000,000 in new 
     budget authority, and $6,726,000,000 in outlays;
     as adjusted in conformance with subsection (c).
       (b) Discretionary Spending Point of Order in the Senate.--
       (1) In general.--Except as otherwise provided in this 
     subsection, it shall not be in order in the Senate to 
     consider any bill or resolution (or amendment, motion, or 
     conference report on that bill or resolution) that would 
     exceed any of the discretionary spending limits in this 
     section.
       (2) Waiver.--This subsection may be waived or suspended in 
     the Senate only by the affirmative vote of three-fifths of 
     the Members, duly chosen and sworn.
       (3) Appeals.--Appeals in the Senate from the decisions of 
     the Chair relating to any provision of this subsection shall 
     be limited to 1 hour, to be equally divided between, and 
     controlled by, the appellant and the manager of the bill or 
     joint resolution, as the case may be. An affirmative vote of 
     three-fifths of the Members of the Senate, duly chosen and 
     sworn, shall be required to sustain an appeal of the ruling 
     of the Chair on a point of order raised under this 
     subsection.
       (c) Adjustments.--
       (1) In general.--
       (A) Chairman.--After the reporting of a bill or joint 
     resolution, or the offering of an amendment thereto or the 
     submission of a conference report thereon, the chairman of 
     the Committee on the Budget may make the adjustments set 
     forth in subparagraph (B) for the amount of new budget 
     authority in that measure (if that measure meets the 
     requirements set forth in paragraph (2)) and the outlays 
     flowing from that budget authority.
       (B) Matters to be adjusted.--The adjustments referred to in 
     subparagraph (A) are to be made to--
       (i) the discretionary spending limits, if any, set forth in 
     the appropriate concurrent resolution on the budget;
       (ii) the allocations made pursuant to the appropriate 
     concurrent resolution on the budget pursuant to section 
     302(a) of the Congressional Budget Act of 1974; and
       (iii) the budgetary aggregates as set forth in the 
     appropriate concurrent resolution on the budget.
       (2) Amounts of adjustments.--The adjustment referred to in 
     paragraph (1) shall be--
       (A) an amount provided for transportation under section 
     411; and
       (B) an amount provided for the fiscal year 2003 
     supplemental appropriation pursuant to section 421.
       (3) Reporting revised suballocations.--Following any 
     adjustment made under paragraph (1), the Committee on 
     Appropriations of the Senate shall report appropriately 
     revised suballocations under section 302(b) to carry out this 
     subsection.

     SEC. 505. PAY-AS-YOU-GO POINT OF ORDER IN THE SENATE.

       (a) Point of Order.--
       (1) In general.--It shall not be in order in the Senate to 
     consider any direct spending or revenue legislation that 
     would increase the on-budget deficit or cause an on-budget 
     deficit for any one of the three applicable time periods as 
     measured in paragraphs (5) and (6).
       (2) Applicable time periods.--For purposes of this 
     subsection, the term ``applicable time period'' means any 1 
     of the 3 following 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 in the most recently adopted concurrent 
     resolution on the budget.
       (3) Direct-spending legislation.--For purposes of this 
     subsection and except as provided in paragraph (4), the term 
     ``direct-spending legislation'' means any bill, joint 
     resolution, amendment, motion, or conference report that 
     affects direct spending as that term is defined by, and 
     interpreted for purposes of, the Balanced Budget and 
     Emergency Deficit Control Act of 1985.
       (4) Exclusion.--For purposes of this subsection, the terms 
     ``direct-spending legislation'' and ``revenue legislation'' 
     do not include--
       (A) any concurrent resolution on the budget; or
       (B) any provision of legislation that affects the full 
     funding of, and continuation of, the deposit insurance 
     guarantee commitment in effect on the date of enactment of 
     the Budget Enforcement Act of 1990.
       (5) Baseline.--Estimates prepared pursuant to this section 
     shall--
       (A) use the baseline surplus or deficit used for the most 
     recently adopted concurrent resolution on the budget as 
     adjusted for any changes in revenues or direct spending 
     assumed by such resolution; and
       (B) be calculated under the requirements of subsections (b) 
     through (d) of section 257 of the Balanced Budget and 
     Emergency Deficit Control Act of 1985 for fiscal years beyond 
     those covered by that concurrent resolution on the budget.
       (6) Prior surplus.--If direct spending or revenue 
     legislation increases the on-budget deficit or causes an on-
     budget deficit when taken individually, it must also increase 
     the on-budget deficit or cause an on-budget deficit when 
     taken together with all direct spending and revenue 
     legislation enacted since the beginning of the calendar year 
     not accounted for in the baseline under paragraph (5)(A), 
     except that direct spending or revenue effects resulting in 
     net deficit reduction enacted pursuant to reconciliation 
     instructions since the beginning of that same calendar year 
     shall not be available.
       (b) 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.
       (c) 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

[[Page 9304]]

     equally divided between, and controlled by, the appellant and 
     the manager of the bill or joint resolution, as the case may 
     be. An affirmative vote of three-fifths of the Members of the 
     Senate, duly chosen and sworn, shall be required to sustain 
     an appeal of the ruling of the Chair on a point of order 
     raised under this section.
       (d) 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.
       (e) Sunset.--This section shall expire on September 30, 
     2008.

     SEC. 506. COMPLIANCE WITH SECTION 13301 OF THE BUDGET 
                   ENFORCEMENT ACT OF 1990.

       (a) In General.--In the House, notwithstanding section 
     302(a)(1) of the Congressional Budget Act of 1974 and section 
     13301 of the Budget Enforcement Act of 1990, the joint 
     explanatory statement accompanying the conference report on 
     any concurrent resolution on the budget shall include in its 
     allocation under section 302(a) of the Congressional Budget 
     Act of 1974 to the Committee on Appropriations amounts for 
     the discretionary administrative expenses of the Social 
     Security Administration.
       (b) Special Rule.--In the House, except as provided by 
     section 401(a), for purposes of applying section 302(f) of 
     the Congressional Budget Act of 1974, estimates of the level 
     of total new budget authority and total outlays provided by a 
     measure shall include any discretionary amounts provided for 
     the Social Security Administration.

     SEC. 507. 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 
     appropriate Committee on the Budget; and
       (2) such chairman may make any other necessary adjustments 
     to such levels to carry out this resolution.
       (d) Enforcement in the House.--In the House, 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 2004 and the total for fiscal year 
     2004 and the four ensuing fiscal years.

     SEC. 508. ADJUSTMENTS TO REFLECT CHANGES IN CONCEPTS AND 
                   DEFINITIONS.

       In the House or in the Senate, upon the enactment of a bill 
     or joint resolution providing for a change in concepts or 
     definitions, the appropriate chairman of the Committee on the 
     Budget shall make adjustments to the levels and allocations 
     in this resolution in accordance with section 251(b) of the 
     Balanced Budget and Emergency Deficit Control Act of 1985 (as 
     in effect prior to September 30, 2002).
                     TITLE VI--SENSE OF THE SENATE

     SEC. 601. SENSE OF THE SENATE ON FEDERAL EMPLOYEE PAY.

       It is the sense of the Senate 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. 602. SENSE OF THE SENATE REGARDING PELL GRANTS.

       It is the sense of the Senate that the levels in this 
     resolution assume that within the discretionary allocation 
     provided to the Committee on Appropriations the maximum Pell 
     Grant award should be raised to the maximum extent 
     practicable.

     SEC. 603. SENSE OF THE SENATE ON EMERGENCY AND DISASTER 
                   ASSISTANCE FOR LIVESTOCK AND AGRICULTURE 
                   PRODUCERS.

       It is the sense of the Senate that the Senate develop a 
     long-term drought plan that effectively recognizes the 
     recurring nature of drought cycles and adequately supports 
     emergency and disaster assistance to livestock and 
     agricultural producers hurt by drought and that the Senate 
     establish an agricultural reserve to fund these activities.

     SEC. 604. SOCIAL SECURITY RESTRUCTURING.

       It is the sense of the Senate that--
       (1) the President, the Congress and the American people 
     (including seniors, workers, women, minorities, and disabled 
     persons) should work together at the earliest opportunity to 
     enact legislation to achieve a solvent and permanently 
     sustainable Social Security system; and
       (2) Social Security reform must--
       (A) protect current and near retirees from any changes to 
     Social Security benefits;
       (B) reduce the pressure on future taxpayers and on other 
     budgetary priorities;
       (C) provide benefit levels that adequately reflect 
     individual contributions to the Social Security System; and
       (D) preserve and strengthen the safety net for vulnerable 
     populations, including the disabled and survivors.

     SEC. 605. SENSE OF THE SENATE CONCERNING STATE FISCAL RELIEF.

       It is the Sense of the Senate that the functional totals in 
     this resolution assume that any legislation enacted to 
     provide economic growth for the United States should include 
     not less than $30,000,000,000 for State fiscal relief over 
     the next 18 months (of which at least half should be provided 
     through a temporary increase in the Federal medical 
     assistance percentage (FMAP)).

     SEC. 606. FEDERAL AGENCY REVIEW COMMISSION.

       It is the sense of the Senate that a commission should be 
     established to review Federal domestic agencies, and programs 
     within such agencies, with the express purpose of providing 
     Congress with recommendations, and legislation to implement 
     those recommendations, to realign or eliminate government 
     agencies and programs that are duplicative, wasteful, 
     inefficient, outdated, or irrelevant, or have failed to 
     accomplish their intended purpose.

     SEC. 607. SENSE OF THE SENATE REGARDING HIGHWAY SPENDING.

       (a) Findings.--The Senate makes the following findings:
       (1) Highway construction funding should increase over 
     current levels.
       (2) The Senate Budget Committee-passed budget resolution 
     increases highway funding above the President's request.
       (3) All vehicles, whether they are operated by gasoline, 
     gasohol, or electricity, do damage to our highways.
       (4) As set out in TEA-21, the direct relationship between 
     excise taxes and highway spending makes sense and should be 
     maintained.
       (5) Highways should be funded through user fees such as 
     excise taxes and not through the General Fund of the 
     Treasury.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that the Senate should only consider legislation that 
     increases highway spending if such legislation changes 
     highway user fees to pay for such increased spending.

     SEC. 608. SENSE OF THE SENATE ON REPORTS ON LIABILITIES AND 
                   FUTURE COSTS.

       It is the sense of the Senate that the Congressional Budget 
     Office shall consult with the Committee on the Budget of the 
     Senate in order to prepare a report containing--
       (1) an estimate of the unfunded liabilities of the Federal 
     Government;
       (2) an estimate of the contingent liabilities of Federal 
     programs; and
       (3) an accrual-based estimate of the current and future 
     costs of Federal programs.

     SEC. 609. SENSE OF THE SENATE CONCERNING AN EXPANSION IN 
                   HEALTH CARE COVERAGE.

       It is the sense of the Senate that the functional totals in 
     this resolution assume that--
       (1) expanded access to health care coverage throughout the 
     United States is a top priority for national policymaking; 
     and
       (2) to the extent that additional funds are made available, 
     a significant portion of such funds should be dedicated to 
     expanding access to health care coverage so that fewer 
     individuals are uninsured and fewer individuals are likely to 
     become uninsured.

     SEC. 610. SENSE OF THE SENATE CONCERNING PROGRAMS OF THE 
                   CORPS OF ENGINEERS.

       It is the sense of the Senate that the Corps of Engineers 
     requires additional funding to perform its vital functions 
     and the budgetary totals in this resolution assume that the 
     level of funding provided for programs of the Corps will not 
     be reduced below current baseline spending levels.

     SEC. 611. SENSE OF THE SENATE CONCERNING NATIVE AMERICAN 
                   HEALTH.

       It is the sense of the Senate that Congress has recognized 
     the importance of Native American health. In 1997, Congress 
     enacted a program to spend $30,000,000 a year on research and 
     treatment on diabetes in the Native American community. This 
     amount was increased to $100,000,000 a year in 2000 and 
     further increased to $150,000,000 a year in 2002. This is a 
     500 percent increase since 1997. This priority focuses on 
     prevention and treatment for a major disease in the Native 
     American community.

     SEC. 612. SENSE OF THE SENATE ON PROVIDING TAX AND OTHER 
                   INCENTIVES TO REVITALIZE RURAL AMERICA.

       It is the sense of the Senate that if tax relief measures 
     are enacted in accordance with the assumptions in the budget 
     resolution in this session of Congress, such legislation 
     should include incentives to help rural communities attract 
     individuals to live and work and start and grow a business in 
     those communities.

     SEC. 613. SENSE OF THE SENATE CONCERNING CHILDREN'S GRADUATE 
                   MEDICAL EDUCATION.

       It is the sense of the Senate that, for fiscal year 2004, 
     children's graduate medical education should be funded at 
     $305,000,000.

     SEC. 614. SENSE OF THE SENATE ON FUNDING FOR CRIMINAL 
                   JUSTICE.

       It is the sense of the Senate that the funding levels in 
     this resolution assume that the programs authorized under the 
     Crime Identification Technology Act of 1998 to improve the 
     justice system will be fully funded at the levels authorized 
     for each of the fiscal years 2004 through 2007.

[[Page 9305]]



     SEC. 615. SENSE OF THE SENATE CONCERNING FUNDING FOR DRUG 
                   TREATMENT PROGRAMS.

       It is the sense of the Senate that the functional totals in 
     this resolution assume that up to $20,000,000 from funds 
     designated, but not obligated, for travel and administrative 
     expenses, from drug interdiction activities should be used 
     for service-oriented targeted grants for the utilization of 
     substances that block the craving for heroin and that are 
     newly approved for such use by the Food and Drug 
     Administration.

     SEC. 616. SENSE OF SENATE CONCERNING FREE TRADE AGREEMENT 
                   WITH THE UNITED KINGDOM.

       It is the sense of the Senate that the President should 
     negotiate a free trade agreement with the United Kingdom.
       And the Senate agree to the same.

     Jim Nussle,
     Christopher Shays,
                                Managers on the Part of the House.

     Don Nickles,
     Pete V. Domenici,
     Chuck Grassley,
     Judd Gregg,
                               Managers on the Part of the Senate.

       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

       The managers on the part of the House and the Senate at the 
     conference on disagreeing votes of the two Houses on the 
     amendment of the Senate to the concurrent resolution (H. Con. 
     Res. 95), establishing the congressional budget for the 
     United States Government for fiscal year 2004 and setting 
     forth appropriate budgetary levels for fiscal years 2003 
     through 2005 through 2013, submit the following joint 
     statement to the House and the Senate in explanation of the 
     effect of the action agreed upon by the managers and 
     recommended in the accompanying conference report:
       The Senate amendment struck all out of the House bill after 
     the enacting clause and inserted a substitute text.
       The House recedes from its disagreement to the amendment of 
     the Senate with an amendment that is a substitute for the 
     House bill and the Senate amendment. The differences between 
     the House bill, the Senate amendment, and the substitute 
     agreed to in conference are noted below, except for clerical 
     corrections, conforming changes made necessary by agreements 
     reached by the conferees, and minor drafting and clarifying 
     changes.

                          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 101(6) 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.

                     AGGREGATE AND FUNCTION LEVELS

       The following tables are included in this section:

     Conference Report on the Fiscal Year 2004 Budget Resolution: 
         Total Spending and Revenues
     Conference Report on the Fiscal Year 2004 Budget Resolution: 
         Discretionary Spending
     Conference Report on the Fiscal Year 2004 Budget Resolution: 
         Mandatory Spending
     House-Passed Fiscal Year 2004 Budget Resolution: Total 
         Spending and Revenues
     House-Passed Fiscal Year 2004 Budget Resolution: 
         Discretionary Spending
     House Passed Fiscal Year 2004 Budget Resolution: Mandatory 
         Spending
     Senate-Passed Fiscal Year 2004 Amendment: Aggregate and 
         Function Levels

                                                    CONFERENCE REPORT ON THE FISCAL YEAR 2004 BUDGET RESOLUTION: TOTAL SPENDING AND REVENUES
                                                                                      [Dollars in billions]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
           Fiscal Year               2003        2004        2005        2006        2007        2008        2009        2010        2011        2012        2013        2004-08       2004-13
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                             SUMMARY
Total Spending:
  BA............................   2,231.122   2,247.860   2,387.012   2,529.740   2,652.819   2,782.789   2,905.038   3,024.490   3,156.932   3,264.724   3,412.316    12,600.220    28,363.720
  OT............................   2,181.910   2,268.230   2,375.351   2,493.643   2,607.179   2,737.405   2,866.279   2,992.306   3,133.830   3,229.310   3,386.854    12,481.808    28,090.387
On-Budget:
  BA............................   1,862.613   1,861.004   1,990.236   2,122.301   2,232.829   2,348.872   2,454.439   2,555.612   2,669.462   2,754.007   2,875.121    10,555.242    23,863.883
  OT............................   1,815.395   1,883.834   1,981.402   2,089.299   2,190.576   2,307.259   2,419.846   2,527.898   2,651.220   2,723.935   2,855.491    10,452.370    23,630.760
Off-Budget:
  BA............................     368.509     386.856     396.776     407.439     419.990     433.917     450.599     468.878     487.470     510.717     537.195     2,044.978     4,499.837
  OT............................     366.515     384.396     393.949     404.344     416.603     430.146     446.433     464.408     482.610     505.375     531.363     2,029.438     4,459.627
Revenues
  Total.........................   1,834.718   1,883.273   2,081.650   2,276.573   2,441.399   2,586.273   2,772.894   2,923.691   3,062.692   3,239.140   3,423.675    11,269.168    26,691.260
  On-budget.....................   1,303.111   1,325.452   1,493.875   1,657.511   1,790.251   1,901.844   2,053.762   2,167.937   2,270.540   2,409.572   2,553.985     8,168.933    19,624.729
  Off-budget....................     531.607     557.821     587.775     619.062     651.148     684.429     719.132     755.754     792.152     829.568     869.690     3,100.235     7,066.531
Surplus/Deficit (-):
  Total.........................    -347.192    -384.957    -293.701    -217.070    -165.780    -151.132     -93.385     -68.615     -71.138       9.830      36.821    -1,212.640    -1,399.127
  On-budget.....................    -512.284    -558.382    -487.527    -431.788    -400.325    -405.415    -366.084    -359.961    -380.680    -314.363    -301.506    -2,283.437    -4,006.031
  Off-budget....................     165.092     173.425     193.826     214.718     234.545     254.283     272.699     291.346     309.542     324.193     338.327     1,070.797     2,606.904
Debt Held by the Public (end of        3,917       4,299       4,599       4,829       5,007       5,169       5,272       5,349       5,428       5,424       5,394            na            na
 year)..........................
Debt Subject to Limit (end of          6,747       7,384       7,978       8,534       9,064       9,602      10,102      10,601      11,125      11,588      12,040            na            na
 year)..........................
 
                                                                                           BY FUNCTION
National Defense (050):
  BA............................     392.494     400.546     420.071     440.185     460.435     480.886     491.951     502.301     511.859     520.553     529.428     2,202.123     4,758.215
  OT............................     386.229     400.916     414.237     426.011     438.656     462.861     479.249     493.195     508.131     510.509     524.494     2,142.681     4,658.259
International Affairs (150):
  BA............................      22.506      25.681      29.734      32.308      33.603      34.611      35.413      36.258      37.136      38.005      38.885       155.937       341.634
  OT............................      19.283      24.207      24.917      26.539      28.464      29.604      30.733      31.689      32.565      33.408      34.298       133.731       296.424
General Science, Space, and Technology (250):
  BA............................      23.153      23.927      24.433      25.217      26.055      26.832      27.462      28.121      28.805      29.492      30.185       126.464       270.529
  OT............................      21.556      22.799      23.861      24.485      25.221      25.948      26.639      27.296      27.963      28.639      29.319       122.314       262.170
Energy (270):
  BA............................       2.074       2.634       2.797       2.714       2.540       3.080       3.090       3.194       3.296       3.408       3.520        13.765        30.273
  OT............................       0.439       0.873       0.947       1.272       1.069       1.419       1.686       1.794       1.976       2.357       2.326         5.580        15.719
Natural Resources and Environment (300):
  BA............................      30.816      31.623      32.504      32.962      33.386      34.064      35.183      36.021      36.829      37.529      38.214       164.539       348.315
  OT............................      28.940      30.782      31.654      32.830      33.127      33.527      34.544      35.360      36.163      36.836      37.600       161.920       342.423
Agriculture (350):
  BA............................      24.418      24.583      27.003      26.828      26.299      25.507      26.092      25.545      24.991      24.573      24.297       130.220       255.718
  OT............................      23.365      23.656      25.763      25.593      25.107      24.381      25.128      24.716      24.180      23.778      23.498       124.500       245.800
Commerce and Housing Credit (370):
  BA............................       5.212       7.316       8.243       5.802       5.455       5.211       4.751       4.278       3.871       3.716       3.369        32.027        52.012
  OT............................       2.281       3.374       3.550       0.638      -0.520      -1.289      -1.756      -2.591      -3.581      -4.131      -4.438         5.753       -10.744
On-budget:
  BA............................       8.812       7.516       8.743       8.280       8.626       8.743       8.526       8.407       8.386       8.489       8.563        41.908        84.279
  OT............................       5.881       3.574       4.050       3.116       2.651       2.243       2.019       1.538       0.934       0.642       0.756        15.634        21.523
Off-budget:
  BA............................      -3.600      -0.200      -0.500      -2.478      -3.171      -3.532      -3.775      -4.129      -4.515      -4.773      -5.194        -9.881       -32.267
  OT............................      -3.600      -0.200      -0.500      -2.478      -3.171      -3.532      -3.775      -4.129      -4.515      -4.773      -5.194        -9.881       -32.267
Transportation (400):
  BA............................      64.091      69.506      70.489      72.496      75.278      76.927      78.878      77.747      78.624      79.527      80.466       364.696       759.938
  OT............................      67.847      69.869      69.442      70.191      71.786      73.659      75.632      77.233      78.291      79.317      80.346       354.947       745.766
Community and Regional Development (450):
  BA............................      12.251      14.063      14.138      14.321      14.536      14.745      14.980      15.233      15.492      15.755      16.023        71.803       149.286
  OT............................      15.994      15.823      15.872      14.961      14.664      14.123      14.298      14.501      14.750      14.992      15.259        75.443       149.243
Education, Training, Employment and Social Services (500):
  BA............................      82.699      90.035      91.442      93.428      95.569      97.925      99.813     101.551     103.529     105.790     107.265       468.399       986.347
  OT............................      81.455      84.205      87.020      90.541      92.986      95.118      97.440      99.289     101.117     102.985     104.934       449.870       955.635
Health (550):
  BA............................     222.913     240.554     259.701     279.236     299.614     322.061     345.548     370.626     396.818     415.790     445.484     1,401.166     3,375.432

[[Page 9306]]

 
  OT............................     217.881     238.785     259.403     279.024     298.681     320.731     344.059     369.097     395.280     414.384     444.082     1,396.624     3,363.526
Medicare (570):
  BA............................     248.586     266.018     282.682     321.623     343.717     369.244     395.368     423.288     453.285     485.951     526.553     1,583.284     3,867.729
  OT............................     248.434     266.283     285.630     318.384     343.987     369.119     395.107     423.546     456.642     482.125     526.809     1,583.403     3,867.632
Income Security (600):
  BA............................     326.390     319.518     333.821     341.816     349.199     361.697     373.372     384.844     400.266     403.738     418.672     1,706.051     3,686.943
  OT............................     334.177     324.840     337.123     344.292     350.945     362.808     374.083     385.347     400.688     404.146     419.245     1,720.008     3,703.517
Social Security (650):
  BA............................     478.882     501.140     521.499     546.735     575.008     606.071     641.105     679.322     720.505     766.154     816.195     2,750.453     6,373.734
  OT............................     476.888     498.679     518.672     543.640     571.621     602.300     636.939     674.852     715.645     760.812     810.363     2,734.912     6,333.523
On-budget:
  BA............................      13.255      14.294      15.471      16.421      17.919      19.704      21.810      24.283      28.170      31.357      34.347        83.809       223.776
  OT............................      13.255      14.293      15.471      16.421      17.919      19.704      21.810      24.283      28.170      31.357      34.347        83.808       223.775
Off-budget:
  BA............................     465.627     486.846     506.028     530.314     557.089     586.367     619.295     655.039     692.335     734.797     781.848     2,666.644     6,149.958
  OT............................     463.633     484.386     503.201     527.219     553.702     582.596     615.129     650.569     687.475     729.455     776.016     2,651.104     6,109.748
Veterans Benefits and Services (700):
  BA............................      57.597      63.779      67.135      65.397      63.874      67.666      69.279      70.992      75.669      72.618      77.455       327.851       693.864
  OT............................      57.486      63.209      66.553      64.995      63.442      67.398      68.924      70.588      75.249      72.097      76.989       325.597       689.444
Administration of Justice (750):
  BA............................      38.543      37.626      37.946      37.984      38.461      39.477      40.497      41.599      42.889      44.207      45.576       191.494       406.262
  OT............................      37.712      40.788      39.193      38.329      38.252      39.128      40.212      41.299      42.472      43.760      45.120       195.690       408.553
General Government (800):
  BA............................      18.185      20.202      20.635      20.656      21.126      21.236      21.946      22.695      23.458      24.255      25.076       103.855       221.285
  OT............................      18.110      20.066      20.714      20.485      20.876      21.013      21.504      22.212      22.946      23.880      24.520       103.154       218.216
Net Interest (900):
  BA............................     156.067     169.656     212.681     243.313     258.818     269.793     278.541     283.448     288.931     293.336     292.764     1,154.261     2,591.281
  OT............................     156.067     169.656     212.681     243.313     258.818     269.793     278.541     283.448     288.931     293.336     292.764     1,154.261     2,591.281
On-budget:
  BA............................     240.176     259.414     310.630     352.219     380.574     405.647     429.542     450.651     473.381     496.015     514.513     1,708.484     4,072.586
  OT............................     240.176     259.414     310.630     352.219     380.574     405.647     429.542     450.651     473.381     496.015     514.513     1,708.484     4,072.586
Off-budget:
  BA............................     -84.109     -89.758     -97.949    -108.906    -121.756    -135.854    -151.001    -167.203    -184.450    -202.679    -221.749      -554.223    -1,481.305
  OT............................     -84.109     -89.758     -97.949    -108.906    -121.756    -135.854    -151.001    -167.203    -184.450    -202.679    -221.749      -554.223    -1,481.305
Allowances (920):
  BA............................      74.758      -7.621      -6.541      -7.331      -8.947      -9.959     -11.526     -12.888     -16.414     -21.460     -25.618       -40.399      -128.305
  OT............................      38.279      22.346       1.520      -5.930      -8.796      -9.951      -9.978     -10.880     -12.671     -15.707     -19.181        -0.811       -69.228
Undistributed Offsetting Receipts (950):
  BA............................     -50.513     -52.926     -63.401     -65.950     -61.207     -64.285     -66.705     -69.685     -72.907     -78.213     -81.493      -307.769      -676.772
  OT............................     -50.513     -52.926     -63.401     -65.950     -61.207     -64.285     -66.705     -69.685     -72.907     -78.213     -81.493      -307.769      -676.772
On-budget:
  BA............................     -41.104     -42.894     -52.598     -54.459     -49.035     -51.221     -52.785     -54.856     -57.007     -61.585     -63.783      -250.207      -540.223
  OT............................     -41.104     -42.894     -52.598     -54.459     -49.035     -51.221     -52.785     -54.856     -57.007     -61.585     -63.783      -250.207      -540.223
Off-budget:
  BA............................      -9.409     -10.032     -10.803     -11.491     -12.172     -13.064     -13.920     -14.829     -15.900     -16.628     -17.710       -57.562      -136.549
  OT............................      -9.409     -10.032     -10.803     -11.491     -12.172     -13.064     -13.920     -14.829     -15.900     -16.628     -17.710       -57.562      -136.549
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


                                                       CONFERENCE REPORT ON THE FISCAL YEAR 2004 BUDGET RESOLUTION: DISCRETIONARY SPENDING
                                                                                      [Dollars in billions]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
           Fiscal Year               2003        2004        2005        2006        2007        2008        2009        2010        2011        2012        2013        2004-08       2004-13
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                             SUMMARY
Total Spending:
  BA............................     840.554     784.460     814.086     842.470     872.461     903.983     924.775     944.195     962.135     978.491     995.126     4,217.460     9,022.182
  OT............................     842.961     860.752     858.003     870.434     892.160     926.475     955.305     980.114   1,004.818   1,016.239   1,038.931     4,407.824     9,403.231
Defense:
  BA............................     392.137     400.058     419.437     439.507     459.729     480.129     491.172     501.487     511.015     519.702     528.537     2,198.860     4,750.773
  OT............................     386.373     400.561     413.682     425.379     437.995     462.157     478.522     492.435     507.345     509.721     523.668     2,139.774     4,651.465
Nondefense:
  BA............................     448.417     384.402     394.649     402.963     412.732     423.854     433.603     442.708     451.120     458.789     466.589     2,018.600     4,271.409
  OT............................     456.588     460.191     444.321     445.055     454.165     464.318     476.783     487.679     497.473     506.518     515.263     2,268.050     4,751.766
 
                                                                                           BY FUNCTION
National Defense (050):
  BA............................     392.137     400.058     419.437     439.507     459.729     480.129     491.172     501.487     511.015     519.702     528.537     2,198.860     4,750.773
  OT............................     386.373     400.561     413.682     425.379     437.995     462.157     478.522     492.435     507.345     509.721     523.668     2,139.774     4,651.465
International Affairs (150):
  BA............................      25.407      28.651      30.034      31.579      32.854      33.845      34.630      35.459      36.322      37.176      38.037       156.963       338.587
  OT............................      26.000      26.775      27.522      29.195      31.084      32.119      33.225      34.179      35.072      35.935      36.778       146.695       321.884
General Science, Space, and Technology (250):
  BA............................      23.047      23.897      24.402      25.186      26.023      26.799      27.429      28.087      28.770      29.456      30.149       126.307       270.198
  OT............................      21.457      22.701      23.766      24.421      25.176      25.915      26.607      27.263      27.929      28.605      29.284       121.979       261.667
Energy (270):
  BA............................       3.237       3.672       3.975       3.914       3.902       4.858       4.975       5.096       5.227       5.357       5.489        20.321        46.465
  OT............................       3.151       3.577       3.869       3.971       3.901       4.647       4.911       5.031       5.157       5.286       5.415        19.965        45.765
Natural Resources and Environment (300):
  BA............................      29.238      29.327      29.802      30.097      30.583      31.319      31.998      32.705      33.448      34.196      34.970       151.128       318.445
  OT............................      27.857      29.014      29.554      29.983      30.464      30.965      31.542      32.199      32.899      33.595      34.342       149.980       314.557
Agriculture (350):
  BA............................       5.727       5.243       5.609       5.734       5.876       6.037       6.208       6.386       6.575       6.767       6.962        28.499        61.397
  OT............................       5.852       5.589       5.533       5.613       5.758       5.958       6.128       6.303       6.487       6.679       6.871        28.451        60.919
Commerce and Housing Credit (370):
  BA............................       0.150      -0.496      -0.269      -0.554       0.534       0.878       0.767       0.661       0.534       0.625       0.574         0.093         3.254
  OT............................       0.054       0.092      -0.393      -0.650       0.449       0.686       0.633       0.549       0.414       0.502       0.450         0.184         2.732
On-budget:
  BA............................       0.150      -0.496      -0.269      -0.554       0.534       0.878       0.767       0.661       0.534       0.625       0.574         0.093         3.254
  OT............................       0.054       0.092      -0.393      -0.650       0.449       0.686       0.633       0.549       0.414       0.502       0.450         0.184         2.732
Off-budget:
  BA............................  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ............  ............
  OT............................  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ............  ............
Transportation (400):
  BA............................      22.611      23.205      23.134      24.192      24.882      25.276      26.393      26.221      27.040      27.875      28.739       120.689       256.957
  OT............................      65.184      67.608      67.257      68.142      69.802      71.732      73.676      75.266      76.289      77.269      78.245       344.541       725.286
Community and Regional Development (450):
  BA............................      11.725      13.826      13.999      14.188      14.401      14.688      14.921      15.168      15.425      15.686      15.950        71.102       148.252
  OT............................      16.054      15.912      15.992      15.124      14.884      14.390      14.602      14.835      15.079      15.313      15.569        76.302       151.700
Education, Training, Employment and Social Services (500):
  BA............................      72.875      80.507      81.005      82.245      84.023      86.086      87.707      89.283      90.924      92.938      94.086       413.866       868.804
  OT............................      71.958      75.206      77.152      80.039      82.172      83.975      86.043      87.652      89.250      90.886      92.523       398.544       844.898
Health (550):
  BA............................      49.468      49.620      50.667      51.800      52.950      54.299      55.607      56.972      58.387      59.806      61.246       259.336       551.354
  OT............................      44.349      47.742      49.376      50.414      51.631      52.576      53.801      55.102      56.460      57.851      59.252       251.739       534.205
Medicare (570):
  BA............................       3.798       3.739       3.807       3.906       4.014       4.138       4.353       4.572       4.809       5.089       5.396        19.604        43.823

[[Page 9307]]

 
  OT............................       3.797       3.726       3.811       3.897       3.992       4.113       4.309       4.524       4.757       5.027       5.327        19.539        43.483
Income Security (600):
  BA............................      44.020      45.712      48.760      50.311      52.004      53.714      55.441      57.295      59.143      61.023      62.884       250.501       546.287
  OT............................      50.781      51.544      52.373      53.424      54.643      56.116      57.505      58.954      60.560      62.215      63.908       268.100       571.242
Social Security (650):
  BA............................       3.833       4.282       4.363       4.450       4.549       4.665       4.820       4.983       5.151       5.323       5.503        22.309        48.089
  OT............................       3.859       4.231       4.326       4.435       4.532       4.644       4.794       4.953       5.121       5.291       5.471        22.168        47.798
On-budget:
  BA............................       0.021       0.025       0.025       0.026       0.027       0.027       0.028       0.029       0.030       0.031       0.032         0.130         0.280
  OT............................       0.021       0.024       0.025       0.026       0.027       0.027       0.028       0.029       0.030       0.031       0.032         0.129         0.279
Off-budget:
  BA............................       3.812       4.257       4.338       4.424       4.522       4.638       4.792       4.954       5.121       5.292       5.471        22.179        47.809
  OT............................       3.838       4.207       4.301       4.409       4.505       4.617       4.766       4.924       5.091       5.260       5.439        22.039        47.519
Veterans Benefits and Services (700):
  BA............................      26.532      29.957      28.386      28.812      29.272      29.838      30.796      31.789      32.824      33.887      35.000       146.265       310.561
  OT............................      26.902      29.600      28.183      28.495      29.024      29.662      30.530      31.497      32.521      33.576      34.663       144.964       307.751
Administration of Justice (750):
  BA............................      36.289      33.529      35.762      36.664      37.621      38.694      39.771      40.931      42.288      43.674      45.117       182.270       394.051
  OT............................      35.484      37.495      36.611      36.824      37.483      38.455      39.596      40.741      41.977      43.331      44.764       186.868       397.277
General Government (800):
  BA............................      15.702      17.352      17.754      17.770      18.191      18.679      19.313      19.988      20.667      21.371      22.105        89.746       193.190
  OT............................      15.570      17.033      17.869      17.658      17.966      18.316      18.859      19.511      20.172      20.864      21.582        88.842       189.830
Allowances (920):
  BA............................      74.758      -7.621      -6.541      -7.331      -8.947      -9.959     -11.526     -12.888     -16.414     -21.460     -25.618       -40.399      -128.305
  OT............................      38.279      22.346       1.520      -5.930      -8.796      -9.951      -9.978     -10.880     -12.671     -15.707     -19.181        -0.811       -69.228
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


                                                         CONFERENCE REPORT ON THE FISCAL YEAR 2004 BUDGET RESOLUTION: MANDATORY SPENDING
                                                                                      [Dollars in billions]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
           Fiscal Year               2003        2004        2005        2006        2007        2008        2009        2010        2011        2012        2013        2004-08       2004-13
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                             SUMMARY
Total Spending:
  BA............................   1,390.568   1,463.400   1,572.926   1,687.270   1,780.358   1,878.806   1,980.263   2,080.295   2,194.797   2,286.233   2,417.190     8,382.760    19,341.538
  OT............................   1,338.949   1,407.478   1,517.348   1,623.209   1,715.019   1,810.930   1,910.974   2,012.192   2,129.012   2,213.071   2,347.923     8,073.984    18,687.156
On-budget:
  BA............................   1,025.871   1,080.801   1,180.488   1,284.255   1,364.890   1,449.527   1,534.456   1,616.371   1,712.448   1,780.808   1,885.466     6,359.961    14,889.510
  OT............................     976.272   1,027.289   1,127.700   1,223.274   1,302.921   1,385.401   1,469.307   1,552.708   1,651.493   1,712.956   1,821.999     6,066.585    14,275.048
Off-budget:
  BA............................     364.697     382.599     392.438     403.015     415.468     429.279     445.807     463.924     482.349     505.425     531.724     2,022.799     4,452.028
  OT............................     362.677     380.189     389.648     399.935     412.098     425.529     441.667     459.484     477.519     500.115     525.924     2,007.399     4,412.108
 
                                                                                           BY FUNCTION
National Defense (050):
  BA............................       0.357       0.488       0.634       0.678       0.706       0.757       0.779       0.814       0.844       0.851       0.891         3.263         7.442
  OT............................      -0.144       0.355       0.555       0.632       0.661       0.704       0.727       0.760       0.786       0.788       0.826         2.907         6.794
International Affairs (150):
  BA............................      -2.901      -2.970      -0.300       0.729       0.749       0.766       0.783       0.799       0.814       0.829       0.848        -1.026         3.047
  OT............................      -6.717      -2.568      -2.605      -2.656      -2.620      -2.515      -2.492      -2.490      -2.507      -2.527      -2.480       -12.964       -25.460
General Science, Space, and Technology (250):
  BA............................       0.106       0.030       0.031       0.031       0.032       0.033       0.033       0.034       0.035       0.036       0.036         0.157         0.331
  OT............................       0.099       0.098       0.095       0.064       0.045       0.033       0.032       0.033       0.034       0.034       0.035         0.335         0.503
Energy (270):
  BA............................      -1.163      -1.038      -1.178      -1.200      -1.362      -1.778      -1.885      -1.902      -1.931      -1.949      -1.969        -6.556       -16.192
  OT............................      -2.712      -2.704      -2.922      -2.699      -2.832      -3.228      -3.225      -3.237      -3.181      -2.929      -3.089       -14.385       -30.046
Natural Resources and Environment (300):
  BA............................       1.578       2.296       2.702       2.865       2.803       2.745       3.185       3.316       3.381       3.333       3.244        13.411        29.870
  OT............................       1.083       1.768       2.100       2.847       2.663       2.562       3.002       3.161       3.264       3.241       3.258        11.940        27.866
Agriculture (350):
  BA............................      18.691      19.340      21.394      21.094      20.423      19.470      19.884      19.159      18.416      17.806      17.335       101.721       194.321
  OT............................      17.513      18.067      20.230      19.980      19.349      18.423      19.000      18.413      17.693      17.099      16.627        96.049       184.881
Commerce and Housing Credit (370):
  BA............................       5.062       7.812       8.512       6.356       4.921       4.333       3.984       3.617       3.337       3.091       2.795        31.934        48.758
  OT............................       2.227       3.282       3.943       1.288      -0.969      -1.975      -2.389      -3.140      -3.995      -4.633      -4.888         5.569       -13.476
On-budget:
  BA............................       8.662       8.012       9.012       8.834       8.092       7.865       7.759       7.746       7.852       7.864       7.989        41.815        81.025
  OT............................       5.827       3.482       4.443       3.766       2.202       1.557       1.386       0.989       0.520       0.140       0.306        15.450        18.791
Off-budget:
  BA............................      -3.600      -0.200      -0.500      -2.478      -3.171      -3.532      -3.775      -4.129      -4.515      -4.773      -5.194        -9.881       -32.267
  OT............................      -3.600      -0.200      -0.500      -2.478      -3.171      -3.532      -3.775      -4.129      -4.515      -4.773      -5.194        -9.881       -32.267
Transportation (400):
  BA............................      41.480      46.301      47.355      48.304      50.396      51.651      52.485      51.526      51.584      51.652      51.727       244.007       502.981
  OT............................       2.663       2.261       2.185       2.049       1.984       1.927       1.956       1.967       2.002       2.048       2.101        10.406        20.480
Community and Regional Development (450)
  BA............................       0.526       0.237       0.139       0.133       0.135       0.057       0.059       0.065       0.067       0.069       0.073         0.701         1.034
  OT............................      -0.060      -0.089      -0.120      -0.163      -0.220      -0.267      -0.304      -0.334      -0.329      -0.321      -0.310        -0.859        -2.457
Education, Training, Employment and Social Services (500):
  BA............................       9.824       9.528      10.437      11.183      11.546      11.839      12.106      12.268      12.605      12.852      13.179        54.533       117.543
  OT............................       9.497       8.999       9.868      10.502      10.814      11.143      11.397      11.637      11.867      12.099      12.411        51.326       110.737
Health (550):
  BA............................     173.445     190.934     209.034     227.436     246.664     267.762     289.941     313.654     338.431     355.984     384.238     1,141.830     2,824.078
  OT............................     173.532     191.043     210.027     228.610     247.050     268.155     290.258     313.995     338.820     356.533     384.830     1,144.885     2,829.321
Medicare (570):
  BA............................     244.788     262.279     278.875     317.717     339.703     365.106     391.015     418.716     448.476     480.862     521.157     1,563.680     3,823.906
  OT............................     244.637     262.557     281.819     314.487     339.995     365.006     390.798     419.022     451.885     477.098     521.482     1,563.864     3,824.149
Income Security (600):
  BA............................     282.370     273.806     285.061     291.505     297.195     307.983     317.931     327.549     341.123     342.715     355.788     1,455.550     3,140.656
  OT............................     283.396     273.296     284.750     290.868     296.302     306.692     316.578     326.393     340.128     341.931     355.337     1,451.908     3,132.275
Social Security (650):
  BA............................     475.049     496.858     517.136     542.285     570.459     601.406     636.285     674.339     715.354     760.831     810.692     2,728.144     6,325.645
  OT............................     473.029     494.448     514.346     539.205     567.089     597.656     632.145     669.899     710.524     755.521     804.892     2,712.744     6,285.725
On-budget:
  BA............................      13.234      14.269      15.446      16.395      17.892      19.677      21.782      24.254      28.140      31.326      34.315        83.679       223.496
  OT............................      13.234      14.269      15.446      16.395      17.892      19.677      21.782      24.254      28.140      31.326      34.315        83.679       223.496
Off-budget:
  BA............................     461.815     482.589     501.690     525.890     552.567     581.729     614.503     650.085     687.214     729.505     776.377     2,644.465     6,102.149
  OT............................     459.795     480.179     498.900     522.810     549.197     577.979     610.363     645.645     682.384     724.195     770.577     2,629.065     6,062.229
Veterans Benefits and Services (700):
  BA............................      31.065      33.822      38.749      36.585      34.602      37.828      38.483      39.203      42.845      38.731      42.455       181.586       383.303
  OT............................      30.584      33.609      38.370      36.500      34.418      37.736      38.394      39.091      42.728      38.521      42.326       180.633       381.693
Administration of Justice (750):
  BA............................       2.254       4.097       2.184       1.320       0.840       0.783       0.726       0.668       0.601       0.533       0.459         9.224        12.211
  OT............................       2.228       3.293       2.582       1.505       0.769       0.673       0.616       0.558       0.495       0.429       0.356         8.822        11.276
General Government (800):
  BA............................       2.483       2.850       2.881       2.886       2.935       2.557       2.633       2.707       2.791       2.884       2.971        14.109        28.095

[[Page 9308]]

 
  OT............................       2.540       3.033       2.845       2.827       2.910       2.697       2.645       2.701       2.774       3.016       2.938        14.312        28.386
Net Interest (900):
  BA............................     156.067     169.656     212.681     243.313     258.818     269.793     278.541     283.448     288.931     293.336     292.764     1,154.261     2,591.281
  OT............................     156.067     169.656     212.681     243.313     258.818     269.793     278.541     283.448     288.931     293.336     292.764     1,154.261     2,591.281
On-budget:
  BA............................     240.176     259.414     310.630     352.219     380.574     405.647     429.542     450.651     473.381     496.015     514.513     1,708.484     4,072.586
  OT............................     240.176     259.414     310.630     352.219     380.574     405.647     429.542     450.651     473.381     496.015     514.513     1,708.484     4,072.586
Off-budget:
  BA............................     -84.109     -89.758     -97.949    -108.906    -121.756    -135.854    -151.001    -167.203    -184.450    -202.679    -221.749      -554.223    -1,481.305
  OT............................     -84.109     -89.758     -97.949    -108.906    -121.756    -135.854    -151.001    -167.203    -184.450    -202.679    -221.749      -554.223    -1,481.305
Allowances (920):
  BA............................  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ............  ............
  OT............................  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ............  ............
Undistributed Offsetting Receipts (950):
  BA............................     -50.513     -52.926     -63.401     -65.950     -61.207     -64.285     -66.705     -69.685     -72.907     -78.213     -81.493      -307.769      -676.772
  OT............................     -50.513     -52.926     -63.401     -65.950     -61.207     -64.285     -66.705     -69.685     -72.907     -78.213     -81.493      -307.769      -676.772
On-budget:
  BA............................     -41.104     -42.894     -52.598     -54.459     -49.035     -51.221     -52.785     -54.856     -57.007     -61.585     -63.783      -250.207      -540.223
  OT............................     -41.104     -42.894     -52.598     -54.459     -49.035     -51.221     -52.785     -54.856     -57.007     -61.585     -63.783      -250.207      -540.223
Off-budget:
  BA............................      -9.409     -10.032     -10.803     -11.491     -12.172     -13.064     -13.920     -14.829     -15.900     -16.628     -17.710       -57.562      -136.549
  OT............................      -9.409     -10.032     -10.803     -11.491     -12.172     -13.064     -13.920     -14.829     -15.900     -16.628     -17.710       -57.562      -136.549
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


                                                          HOUSE-PASSED FISCAL YEAR 2004 BUDGET RESOLUTION: TOTAL SPENDING AND REVENUES
                                                                                      [Dollars in billions]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
           Fiscal Year               2003        2004        2005        2006        2007        2008        2009        2010        2011        2012        2013        2004-08       2004-13
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                             SUMMARY
Total Spending:
  BA............................   2,158.555   2,225.395   2,349.552   2,483.786   2,597.355   2,716.161   2,834.044   2,950.169   3,084.734   3,215.178   3,369.698    12,372.249    27,826.072
  OT............................   2,143.410   2,232.365   2,337.286   2,450.075   2,555.757   2,674.646   2,797.065   2,916.177   3,057.083   3,172.626   3,335.342    12,250.129    27,528.422
On-Budget:
  BA............................   1,790.046   1,838.519   1,952.639   2,076.319   2,177.306   2,282.248   2,383.491   2,481.237   2,597.191   2,704.406   2,832.479    10,327.031    23,325.835
  OT............................   1,776.895   1,847.887   1,943.164   2,045.680   2,139.077   2,244.487   2,350.662   2,451.698   2,574.381   2,667.177   2,803.936    10,220.295    23,068.149
Off-Budget:
  BA............................     368.509     386.876     396.913     407.467     420.049     433.913     450.553     468.932     487.543     510.772     537.219     2,045.218     4,500.237
  OT............................     366.515     384.478     394.122     404.395     416.680     430.159     446.403     464.479     482.702     505.449     531.406     2,029.834     4,460.273
Revenues:
  Total.........................   1,855.336   1,908.024   2,107.162   2,281.891   2,444.370   2,587.249   2,736.597   2,886.701   3,028.028   3,194.074   3,372.405    11,328.696    26,546.501
  On-budget.....................   1,323.729   1,350.138   1,519.267   1,662.729   1,793.142   1,902.740   2,017.385   2,130.867   2,235.796   2,364.426   2,502.635     8,228.016    19,479.125
  Off-budget....................     531.607     557.886     587.895     619.162     651.228     684.509     719.212     755.834     792.232     829.648     869.770     3,100.680     7,067.376
Surplus/Deficit (-):
  Total.........................    -288.074    -324.341    -230.124    -168.184    -111.387     -87.397     -60.468     -29.476     -29.055      21.448      37.063      -921.433      -981.921
  On-budget.....................    -453.166    -497.749    -423.897    -382.951    -345.935    -341.747    -333.277    -320.831    -338.585    -302.751    -301.301    -1,992.279    -3,589.024
  Off-budget....................     165.092     173.408     193.773     214.767     234.548     254.350     272.809     291.355     309.530     324.199     338.364     1,070.846     2,607.103
Debt Held by the Public (end of        3,858       4,179       4,416       4,597       4,720       4,819       4,889       4,926       4,963       4,949       4,918            na            na
 year)..........................
Debt Subject to Limit (end of          6,687       7,264       7,794       8,302       8,777       9,251       9,719      10,179      10,660      11,112      11,564            na            na
 year)..........................
 
                                                                                           BY FUNCTION
National Defense (050):
  BA............................     392.494     400.546     420.071     440.185     460.435     480.886     494.067     507.840     522.103     536.531     551.323     2,202.123     4,813.987
  OT............................     386.229     400.916     414.237     426.011     438.656     462.861     480.650     497.348     516.338     523.884     543.541     2,142.681     4,704.442
International Affairs (150):
  BA............................      22.506      24.750      28.631      31.090      32.271      33.120      33.775      34.466      35.315      36.148      37.006       149.862       326.572
  OT............................      19.283      23.654      24.090      25.557      27.344      28.303      29.284      30.078      30.916      31.716      32.576       128.948       283.518
General Science, Space, and Technology (250):
  BA............................      23.153      22.771      23.591      24.344      25.153      25.899      26.504      27.140      27.800      28.464      29.134       121.758       260.800
  OT............................      21.556      22.348      23.082      23.690      24.425      25.127      25.799      26.435      27.079      27.735      28.393       118.672       254.113
Energy (270):
  BA............................       2.074       2.583       2.707       2.609       2.431       2.988       2.977       3.085       3.181       3.288       3.401        13.318        29.250
  OT............................       0.439       0.928       0.961       1.244       1.022       1.400       1.660       1.781       1.955       2.316       2.293         5.555        15.560
Natural Resources and Environment (300):
  BA............................      30.816      29.240      30.253      30.945      31.453      32.230      33.463      34.432      35.438      36.354      37.251       154.121       331.059
  OT............................      28.940      29.868      30.276      31.203      31.335      31.713      32.843      33.768      34.752      35.626      36.600       154.395       327.984
Agriculture (350):
  BA............................      24.418      24.192      26.481      26.197      25.567      24.607      24.998      24.293      23.781      23.390      23.155       127.044       246.661
  OT............................      23.365      23.363      25.205      25.000      24.430      23.543      24.091      23.526      23.030      22.654      22.413       121.541       237.255
Commerce and Housing Credit (370):
  BA............................       5.212       7.205       8.137       5.673       6.000       5.103       4.999       4.621       4.437       4.269       4.065        32.118        54.509
  OT............................       2.281       3.294       3.457       0.487      -0.068      -1.562      -1.793      -2.584      -3.374      -3.945      -4.138         5.608       -10.226
On-budget:
  BA............................       8.812       7.405       8.637       8.151       9.171       8.635       8.774       8.750       8.952       9.042       9.259        41.999        86.776
  OT............................       5.881       3.494       3.957       2.965       3.103       1.970       1.982       1.545       1.141       0.828       1.056        15.489        22.041
Off-budget:
  BA............................      -3.600      -0.200      -0.500      -2.478      -3.171      -3.532      -3.775      -4.129      -4.515      -4.773      -5.194        -9.881       -32.267
  OT............................      -3.600      -0.200      -0.500      -2.478      -3.171      -3.532      -3.775      -4.129      -4.515      -4.773      -5.194        -9.881       -32.267
Transportation (400):
  BA............................      64.091      65.430      65.806      66.718      67.726      68.692      69.881      71.084      72.789      74.498      76.283       334.372       698.907
  OT............................      67.847      69.225      66.917      66.538      67.264      68.297      69.552      70.915      72.410      74.004      75.640       338.241       700.762
Community and Regional Development (450):
  BA............................      12.251      14.137      14.356      14.647      14.968      15.351      15.702      16.076      16.468      16.858      17.256        73.459       155.819
  OT............................      15.994      15.923      15.991      15.119      14.918      14.500      14.803      15.146      15.524      15.892      16.288        76.451       154.104
Education, Training, Employment and Social Services (500):
  BA............................      86.169      84.748      84.381      86.670      88.650      90.811      92.393      93.935      95.832      97.635      99.536       435.260       914.591
  OT............................      81.340      85.706      83.598      84.639      86.417      88.355      90.486      92.170      93.936      95.713      97.602       428.715       898.622
Health (550):
  BA............................     221.878     235.103     248.663     265.462     284.237     303.780     324.153     345.696     370.681     395.391     423.754     1,337.245     3,196.920
  OT............................     218.021     235.479     248.358     264.949     283.363     302.637     322.870     344.412     369.399     394.133     422.447     1,334.786     3,188.047
Medicare (570):
  BA............................     248.586     266.538     282.932     322.237     344.656     370.545     396.931     424.989     452.618     489.873     528.586     1,586.908     3,879.905
  OT............................     248.434     266.865     285.912     319.017     344.943     370.436     396.685     425.263     455.994     486.064     528.861     1,587.173     3,880.040
Income Security (600):
  BA............................     326.588     315.485     325.921     331.772     336.386     344.748     352.988     360.370     374.372     377.623     391.496     1,654.312     3,511.161
  OT............................     334.373     321.120     329.359     334.216     338.308     345.993     353.901     361.147     375.115     378.358     392.351     1,668.996     3,529.868
Social Security (650):
  BA............................     478.882     501.089     521.493     546.791     575.122     606.191     641.237     679.459     720.651     766.311     816.362     2,750.686     6,374.706
  OT............................     476.888     498.690     518.702     543.719     571.753     602.437     637.087     675.006     715.810     760.988     810.549     2,735.301     6,334.741
On-budget:
  BA............................      13.255      14.223      15.330      16.451      17.975      19.827      21.982      24.357      28.235      31.450      34.481        83.806       224.311
  OT............................      13.255      14.222      15.330      16.451      17.975      19.827      21.982      24.357      28.235      31.450      34.481        83.805       224.310
Off-budget:
  BA............................     465.627     486.866     506.163     530.340     557.147     586.364     619.255     655.102     692.416     734.861     781.881     2,666.880     6,150.395
  OT............................     463.633     484.468     503.372     527.268     553.778     582.610     615.105     650.649     687.575     729.538     776.068     2,651.496     6,110.431

[[Page 9309]]

 
Veterans Benefits and Services (700):
  BA............................      57.597      61.567      65.847      64.000      62.348      65.696      66.939      68.222      72.714      69.867      74.518       319.458       671.718
  OT............................      57.486      61.119      65.632      63.830      62.074      65.557      66.695      67.938      72.418      69.477      74.198       318.212       668.938
Administration of Justice (750):
  BA............................      38.543      37.313      37.676      37.586      37.966      38.884      39.846      40.891      42.160      43.459      44.808       189.425       400.589
  OT............................      37.712      40.898      39.007      38.030      37.862      38.639      39.669      40.703      41.855      43.131      44.471       194.436       404.265
General Government (800):
  BA............................      18.178      19.779      20.038      19.672      19.976      19.789      20.208      20.620      21.342      22.090      22.881        99.254       206.395
  OT............................      18.103      19.597      20.226      19.731      19.737      19.584      19.800      20.175      20.874      21.751      22.374        98.875       203.849
Net Interest (900):
  BA............................     155.632     166.912     205.969     233.138     245.717     253.445     259.512     262.464     265.793     268.782     267.822     1,105.181     2,429.554
  OT............................     155.632     166.912     205.969     233.138     245.717     253.445     259.512     262.464     265.793     268.782     267.822     1,105.181     2,429.554
On-budget:
  BA............................     239.741     256.670     303.916     342.042     367.472     389.300     410.519     429.676     450.251     471.470     489.580     1,659.400     3,910.896
  OT............................     239.741     256.670     303.916     342.042     367.472     389.300     410.519     429.676     450.251     471.470     489.580     1,659.400     3,910.896
Off-budget:
  BA............................     -84.109     -89.758     -97.947    -108.904    -121.755    -135.855    -151.007    -167.212    -184.458    -202.688    -221.758      -554.219    -1,481.342
  OT............................     -84.109     -89.758     -97.947    -108.904    -121.755    -135.855    -151.007    -167.212    -184.458    -202.688    -221.758      -554.219    -1,481.342
Allowances (920):
  BA............................  ..........      -1.067  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........        -1.067        -1.067
  OT............................  ..........      -0.614      -0.292      -0.093      -0.036      -0.015  ..........  ..........  ..........  ..........  ..........        -1.050        -1.050
Undistributed Offsetting Receipts (950):
  BA............................     -50.513     -52.926     -63.401     -65.950     -63.707     -66.604     -66.529     -69.514     -72.741     -75.653     -78.939      -312.588      -675.964
  OT............................     -50.513     -52.926     -63.401     -65.950     -63.707     -66.604     -66.529     -69.514     -72.741     -75.653     -78.939      -312.588      -675.964
On-budget:
  BA............................     -41.104     -42.894     -52.598     -54.459     -51.535     -53.540     -52.609     -54.685     -56.841     -59.025     -61.229      -255.026      -539.415
  OT............................     -41.104     -42.894     -52.598     -54.459     -51.535     -53.540     -52.609     -54.685     -56.841     -59.025     -61.229      -255.026      -539.415
Off-budget:
  BA............................      -9.409     -10.032     -10.803     -11.491     -12.172     -13.064     -13.920     -14.829     -15.900     -16.628     -17.710       -57.562      -136.549
  OT............................      -9.409     -10.032     -10.803     -11.491     -12.172     -13.064     -13.920     -14.829     -15.900     -16.628     -17.710       -57.562      -136.549
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


                                                             HOUSE-PASSED FISCAL YEAR 2004 BUDGET RESOLUTION: DISCRETIONARY SPENDING
                                                                                      [Dollars in billions]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
           Fiscal Year               2003        2004        2005        2006        2007        2008        2009        2010        2011        2012        2013        2004-08       2004-13
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                             SUMMARY
Total Spending:
  BA............................     765.796     775.386     802.587     830.682     860.381     891.601     915.318     939.877     965.492     991.479   1,018.043     4,160.637     8,990.846
  OT............................     804.682     831.265     841.708     857.651     878.630     911.456     940.851     968.691     999.228   1,018.712   1,050.542     4,320.710     9,298.734
Defense
  BA............................     392.137     400.058     419.437     439.507     459.729     480.129     493.288     507.026     521.259     535.680     550.432     2,198.860     4,806.545
  OT............................     386.373     400.561     413.682     425.379     437.995     462.157     479.923     496.588     515.552     523.096     542.715     2,139.774     4,697.648
Nondefense
  BA............................     373.659     375.328     383.150     391.175     400.652     411.472     422.030     432.851     444.233     455.799     467.611     1,961.777     4,184.301
  OT............................     418.309     430.704     428.026     432.272     440.635     449.299     460.928     472.103     483.676     495.616     507.827     2,180.936     4,601.086
 
                                                                                           BY FUNCTION
National Defense (050):
  BA............................     392.137     400.058     419.437     439.507     459.729     480.129     493.288     507.026     521.259     535.680     550.432     2,198.860     4,806.545
  OT............................     386.373     400.561     413.682     425.379     437.995     462.157     479.923     496.588     515.552     523.096     542.715     2,139.774     4,697.648
International Affairs (150):
  BA............................      25.407      27.843      29.122      30.620      31.842      32.791      33.546      34.351      35.187      36.016      36.851       152.218       328.169
  OT............................      26.000      26.376      26.888      28.455      30.266      31.234      32.310      33.233      34.097      34.935      35.754       143.219       313.548
General Science, Space, and Technology (250):
  BA............................      23.047      22.741      23.561      24.314      25.122      25.867      26.472      27.108      27.767      28.430      29.100       121.605       260.482
  OT............................      21.457      22.251      22.989      23.627      24.381      25.095      25.768      26.404      27.047      27.703      28.360       118.343       253.625
Energy (270):
  BA............................       3.237       3.625       3.888       3.813       3.794       4.752       4.840       4.960       5.086       5.211       5.344        19.872        45.313
  OT............................       3.151       3.614       3.856       3.915       3.816       4.562       4.804       4.919       5.043       5.167       5.297        19.763        44.993
Natural Resources and Environment (300):
  BA............................      29.238      27.018      27.588      28.150      28.751      29.646      30.518      31.431      32.374      33.340      34.320       141.153       303.136
  OT............................      27.857      28.167      28.205      28.427      28.771      29.305      30.073      30.914      31.800      32.700      33.657       142.875       302.019
Agriculture (350):
  BA............................       5.727       5.109       5.467       5.569       5.691       5.838       6.005       6.177       6.354       6.538       6.728        27.674        59.476
  OT............................       5.852       5.537       5.334       5.462       5.599       5.783       5.943       6.116       6.287       6.471       6.658        27.715        59.190
Commerce and Housing Credit (370):
  BA............................       0.150      -0.503      -0.217      -0.489       0.595       0.916       1.225       1.280       1.369       1.439       1.521         0.302         7.136
  OT............................       0.054       0.147      -0.314      -0.564       0.523       0.730       1.042       1.150       1.234       1.333       1.387         0.522         6.668
On-budget:
  BA............................       0.150      -0.503      -0.217      -0.489       0.595       0.916       1.225       1.280       1.369       1.439       1.521         0.302         7.136
  OT............................       0.054       0.147      -0.314      -0.564       0.523       0.730       1.042       1.150       1.234       1.333       1.387         0.522         6.668
Off-budget:
  BA............................  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ............  ............
  OT............................  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ............  ............
Transportation (400):
  BA............................      22.611      22.225      22.140      22.544      23.010      23.554      24.279      25.042      25.828      26.635      27.468       113.473       242.725
  OT............................      65.184      66.995      64.772      64.536      65.335      66.443      67.687      69.059      70.519      72.070      73.653       328.081       681.069
Community and Regional Development (450):
  BA............................      11.725      13.909      14.227      14.527      14.849      15.313      15.668      16.043      16.434      16.824      17.218        72.825       155.012
  OT............................      16.054      16.016      16.116      15.289      15.145      14.775      15.116      15.491      15.866      16.227      16.614        77.341       156.655
Education, Training, Employment and Social Services (500):
  BA............................      72.875      75.390      74.170      75.775      77.459      79.444      80.873      82.381      83.947      85.515      87.091       382.238       802.045
  OT............................      71.958      74.172      73.051      74.414      75.943      77.662      79.647      81.218      82.757      84.313      85.892       375.242       789.069
Health (550):
  BA............................      49.468      48.063      49.093      50.183      51.285      52.591      53.850      55.162      56.522      57.887      59.271       251.215       533.907
  OT............................      44.349      47.097      48.243      49.086      50.216      51.105      52.282      53.540      54.849      56.186      57.537       245.747       520.141
Medicare (570):
  BA............................       3.798       3.619       3.687       3.785       3.888       4.009       4.221       4.433       4.662       4.936       5.234        18.988        42.474
  OT............................       3.797       3.668       3.723       3.795       3.883       4.000       4.192       4.401       4.629       4.891       5.184        19.069        42.366
Income Security (600):
  BA............................      44.020      44.436      45.235      46.150      46.305      46.540      47.533      48.538      49.589      50.639      51.691       228.666       476.656
  OT............................      50.781      50.570      48.947      49.387      49.075      48.944      49.724      50.427      51.286      52.128      52.985       246.923       503.473
Social Security (650):
  BA............................       3.833       4.160       4.226       4.310       4.407       4.519       4.671       4.829       4.991       5.158       5.333        21.622        46.604
  OT............................       3.859       4.171       4.225       4.318       4.408       4.515       4.661       4.816       4.980       5.145       5.320        21.637        46.559
On-budget:
  BA............................       0.021       0.024       0.024       0.025       0.026       0.026       0.027       0.028       0.029       0.030       0.031         0.125         0.270
  OT............................       0.021       0.023       0.024       0.025       0.026       0.026       0.027       0.028       0.029       0.030       0.031         0.124         0.269
Off-budget:
  BA............................       3.812       4.136       4.202       4.285       4.381       4.493       4.644       4.801       4.962       5.128       5.302        21.497        46.334
  OT............................       3.838       4.148       4.201       4.293       4.382       4.489       4.634       4.788       4.951       5.115       5.289        21.513        46.290
Veterans Benefits and Services (700):
  BA............................      26.532      28.162      27.729      28.153      28.610      29.174      30.128      31.102      32.116      33.159      34.234       141.828       302.567

[[Page 9310]]

 
  OT............................      26.902      27.922      27.886      28.066      28.515      29.124      29.969      30.924      31.931      32.968      34.036       141.513       301.341
Administration of Justice (750):
  BA............................      36.289      33.314      35.592      36.372      37.247      38.266      39.328      40.482      41.819      43.190      44.612       180.791       390.222
  OT............................      35.484      37.693      36.532      36.636      37.212      38.127      39.256      40.398      41.614      42.961      44.373       186.200       394.802
General Government (800):
  BA............................      15.702      17.284      17.642      17.399      17.797      18.252      18.873      19.532      20.188      20.882      21.595        88.374       189.444
  OT............................      15.570      16.922      17.865      17.516      17.583      17.910      18.454      19.093      19.737      20.418      21.120        87.796       186.618
Allowances (920):
  BA............................  ..........      -1.067  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........        -1.067        -1.067
  OT............................  ..........      -0.614      -0.292      -0.093      -0.036      -0.015  ..........  ..........  ..........  ..........  ..........        -1.050        -1.050
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


                                                               HOUSE-PASSED FISCAL YEAR 2004 BUDGET RESOLUTION: MANDATORY SPENDING
                                                                                      [Dollars in billions]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
           Fiscal Year               2003        2004        2005        2006        2007        2008        2009        2010        2011        2012        2013        2004-08       2004-13
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                             SUMMARY
Total Spending:
  BA............................   1,392.759   1,450.009   1,546.965   1,653.104   1,736.974   1,824.560   1,918.726   2,010.292   2,119.242   2,223.699   2,351.655     8,211.612    18,835.226
  OT............................   1,338.728   1,401.100   1,495.578   1,592.424   1,677.127   1,763.190   1,856.214   1,947.486   2,057.855   2,153.914   2,284.800     7,929.419    18,229.688
On-budget:
  BA............................   1,028.062   1,067.269   1,154.254   1,249.922   1,321.306   1,395.140   1,472.817   1,546.161   1,636.661   1,718.055   1,819.738     6,187.891    14,381.323
  OT............................     976.051   1,020.770   1,105.657   1,192.322   1,264.829   1,337.520   1,414.445   1,487.795   1,580.104   1,653.580   1,758.683     5,921.098    13,815.705
Off-budget:
  BA............................     364.697     382.740     392.711     403.182     415.668     429.420     445.909     464.131     482.581     505.644     531.917     2,023.721     4,453.903
  OT............................     362.677     380.330     389.921     400.102     412.298     425.670     441.769     459.691     477.751     500.334     526.117     2,008.321     4,413.983
 
                                                                                           BY FUNCTION
National Defense (050):
  BA............................       0.357       0.488       0.634       0.678       0.706       0.757       0.779       0.814       0.844       0.851       0.891         3.263         7.442
  OT............................      -0.144       0.355       0.555       0.632       0.661       0.704       0.727       0.760       0.786       0.788       0.826         2.907         6.794
International Affairs (150):
  BA............................      -2.901      -3.093      -0.491       0.470       0.429       0.329       0.229       0.115       0.128       0.132       0.155        -2.356        -1.597
  OT............................      -6.717      -2.722      -2.798      -2.898      -2.922      -2.931      -3.026      -3.155      -3.181      -3.219      -3.178       -14.271       -30.030
General Science, Space, and Technology (250):
  BA............................       0.106       0.030       0.030       0.030       0.031       0.032       0.032       0.032       0.033       0.034       0.034         0.153         0.318
  OT............................       0.099       0.097       0.093       0.063       0.044       0.032       0.031       0.031       0.032       0.032       0.033         0.329         0.488
Energy (270):
  BA............................      -1.163      -1.042      -1.181      -1.204      -1.363      -1.764      -1.863      -1.875      -1.905      -1.923      -1.943        -6.554       -16.063
  OT............................      -2.712      -2.686      -2.895      -2.671      -2.794      -3.162      -3.144      -3.138      -3.088      -2.851      -3.004       -14.208       -29.433
Natural Resources and Environment (300):
  BA............................       1.578       2.222       2.665       2.795       2.702       2.584       2.945       3.001       3.064       3.014       2.931        12.968        27.923
  OT............................       1.083       1.701       2.071       2.776       2.564       2.408       2.770       2.854       2.952       2.926       2.943        11.520        25.965
Agriculture (350):
  BA............................      18.691      19.083      21.014      20.628      19.876      18.769      18.993      18.116      17.427      16.852      16.427        99.370       187.185
  OT............................      17.513      17.826      19.871      19.538      18.831      17.760      18.148      17.410      16.743      16.183      15.755        93.826       178.065
Commerce and Housing Credit (370):
  BA............................       5.062       7.708       8.354       6.162       5.405       4.187       3.774       3.341       3.068       2.830       2.544        31.816        47.373
  OT............................       2.227       3.147       3.771       1.051      -0.591      -2.292      -2.835      -3.734      -4.608      -5.278      -5.525         5.086       -16.894
On-budget:
  BA............................       8.662       7.908       8.854       8.640       8.576       7.719       7.549       7.470       7.583       7.603       7.738        41.697        79.640
  OT............................       5.827       3.347       4.271       3.529       2.580       1.240       0.940       0.395      -0.093      -0.505      -0.331        14.967        15.373
Off-budget:
  BA............................      -3.600      -0.200      -0.500      -2.478      -3.171      -3.532      -3.775      -4.129      -4.515      -4.773      -5.194        -9.881       -32.267
  OT............................      -3.600      -0.200      -0.500      -2.478      -3.171      -3.532      -3.775      -4.129      -4.515      -4.773      -5.194        -9.881       -32.267
Transportation (400):
  BA............................      41.480      43.205      43.666      44.174      44.716      45.138      45.602      46.042      46.961      47.863      48.815       220.899       456.182
  OT............................       2.663       2.230       2.145       2.002       1.929       1.854       1.865       1.856       1.891       1.934       1.987        10.160        19.693
Community and Regional Development (450):
  BA............................       0.526       0.228       0.129       0.120       0.119       0.038       0.034       0.033       0.034       0.034       0.038         0.634         0.807
  OT............................      -0.060      -0.093      -0.125      -0.170      -0.227      -0.275      -0.313      -0.345      -0.342      -0.335      -0.326        -0.890        -2.551
Education, Training, Employment and Social Services (500):
  BA............................      13.294       9.358      10.211      10.895      11.191      11.367      11.520      11.554      11.885      12.120      12.445        53.022       112.546
  OT............................       9.382      11.534      10.547      10.225      10.474      10.693      10.839      10.952      11.179      11.400      11.710        53.473       109.553
Health (550):
  BA............................     172.410     187.040     199.570     215.279     232.952     251.189     270.303     290.534     314.159     337.504     364.483     1,086.030     2,663.013
  OT............................     173.672     188.382     200.115     215.863     233.147     251.532     270.588     290.872     314.550     337.947     364.910     1,089.039     2,667.906
Medicare (570):
  BA............................     244.788     262.919     279.245     318.452     340.768     366.536     392.710     420.556     447.956     484.937     523.352     1,567.920     3,837.431
  OT............................     244.637     263.197     282.189     315.222     341.060     366.436     392.493     420.862     451.365     481.173     523.677     1,568.104     3,837.674
Income Security (600):
  BA............................     282.568     271.049     280.686     285.622     290.081     298.208     305.455     311.832     324.783     326.984     339.805     1,425.646     3,034.505
  OT............................     283.592     270.550     280.412     284.829     289.233     297.049     304.177     310.720     323.829     326.230     339.366     1,422.073     3,026.395
Social Security (650):
  BA............................     475.049     496.929     517.267     542.481     570.715     601.672     636.566     674.630     715.660     761.153     811.029     2,729.064     6,328.102
  OT............................     473.029     494.519     514.477     539.401     567.345     597.922     632.426     670.190     710.830     755.843     805.229     2,713.664     6,288.182
On-budget:
  BA............................      13.234      14.199      15.306      16.426      17.949      19.801      21.955      24.329      28.206      31.420      34.450        83.681       224.041
  OT............................      13.234      14.199      15.306      16.426      17.949      19.801      21.955      24.329      28.206      31.420      34.450        83.681       224.041
Off-budget:
  BA............................     461.815     482.730     501.961     526.055     552.766     581.871     614.611     650.301     687.454     729.733     776.579     2,645.383     6,104.061
  OT............................     459.795     480.320     499.171     522.975     549.396     578.121     610.471     645.861     682.624     724.423     770.779     2,629.983     6,064.141
Veterans Benefits and Services (700):
  BA............................      31.065      33.405      38.118      35.847      33.738      36.522      36.811      37.120      40.598      36.708      40.284       177.630       369.151
  OT............................      30.584      33.197      37.746      35.764      33.559      36.433      36.726      37.014      40.487      36.509      40.162       176.699       367.597
Administration of Justice (750):
  BA............................       2.254       3.999       2.084       1.214       0.719       0.618       0.518       0.409       0.341       0.269       0.196         8.634        10.367
  OT............................       2.228       3.205       2.475       1.394       0.650       0.512       0.413       0.305       0.241       0.170       0.098         8.236         9.463
General Government (800):
  BA............................       2.476       2.495       2.396       2.273       2.179       1.537       1.335       1.088       1.154       1.208       1.286        10.880        16.951
  OT............................       2.533       2.675       2.361       2.215       2.154       1.674       1.346       1.082       1.137       1.333       1.254        11.079        17.231
Net Interest (900):
  BA............................     155.632     166.912     205.969     233.138     245.717     253.445     259.512     262.464     265.793     268.782     267.822     1,105.181     2,429.554
  OT............................     155.632     166.912     205.969     233.138     245.717     253.445     259.512     262.464     265.793     268.782     267.822     1,105.181     2,429.554
On-budget:
  BA............................     239.741     256.670     303.916     342.042     367.472     389.300     410.519     429.676     450.251     471.470     489.580     1,659.400     3,910.896
  OT............................     239.741     256.670     303.916     342.042     367.472     389.300     410.519     429.676     450.251     471.470     489.580     1,659.400     3,910.896
Off-budget:
  BA............................     -84.109     -89.758     -97.947    -108.904    -121.755    -135.855    -151.007    -167.212    -184.458    -202.688    -221.758      -554.219    -1,481.342
  OT............................     -84.109     -89.758     -97.947    -108.904    -121.755    -135.855    -151.007    -167.212    -184.458    -202.688    -221.758      -554.219    -1,481.342
Allowances (920):
  BA............................  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ............  ............
  OT............................  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ............  ............
Undistributed Offsetting Receipts (950):
  BA............................     -50.513     -52.926     -63.401     -65.950     -63.707     -66.604     -66.529     -69.514     -72.741     -75.653     -78.939      -312.588      -675.964

[[Page 9311]]

 
  OT............................     -50.513     -52.926     -63.401     -65.950     -63.707     -66.604     -66.529     -69.514     -72.741     -75.653     -78.939      -312.588      -675.964
On-budget:
  BA............................     -41.104     -42.894     -52.598     -54.459     -51.535     -53.540     -52.609     -54.685     -56.841     -59.025     -61.229      -255.026      -539.415
  OT............................     -41.104     -42.894     -52.598     -54.459     -51.535     -53.540     -52.609     -54.685     -56.841     -59.025     -61.229      -255.026      -539.415
Off-budget:
  BA............................      -9.409     -10.032     -10.803     -11.491     -12.172     -13.064     -13.920     -14.829     -15.900     -16.628     -17.710       -57.562      -136.549
  OT............................      -9.409     -10.032     -10.803     -11.491     -12.172     -13.064     -13.920     -14.829     -15.900     -16.628     -17.710       -57.562      -136.549
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


                                                                            SENATE-PASSED FY 2004 BUDGET RESOLUTION AMENDMENT: AGGREGATE AND FUNCTION LEVELS
                                                                                                          [Dollars in billions]
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                   2002
                           Function                               Actual       2003        2004        2005        2006        2007        2008        2009        2010        2011        2012        2013       2004-08      2004-13
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
050--National Defense:
  BA..........................................................     362.106     395.494     400.658     420.402     440.769     461.400     482.340     489.209     495.079     502.947     510.984     519.393    2,205.569    4,723.181
  OT..........................................................     348.555     389.229     401.064     414.536     426.591     439.621     464.315     477.989     487.993     500.478     501.628     514.885    2,146.127    4,629.100
Discretionary:
  BA..........................................................     360.988     395.137     400.058     419.437     439.507     459.729     480.129     486.788     492.526     500.259     508.180     516.432    2,198.860    4,703.045
  OT..........................................................     348.511     389.373     400.561     413.682     425.379     437.995     462.157     475.620     485.494     497.848     498.887     511.989    2,139.774    4,609.612
Mandatory:
  BA..........................................................       1.118       0.357       0.600       0.965       1.262       1.671       2.211       2.421       2.553       2.688       2.804       2.961        6.709       20.136
  OT..........................................................       0.044      -0.144       0.503       0.854       1.212       1.626       2.158       2.369       2.499       2.630       2.741       2.896        6.353       19.488
150--International Affairs:
  BA..........................................................      25.144      22.506      25.681      29.734      32.308      33.603      34.611      35.413      36.258      37.136      38.005      38.885      155.937      341.634
  OT..........................................................      22.357      19.283      24.207      24.917      26.539      28.464      29.604      30.733      31.689      32.565      33.408      34.298      133.730      296.422
Discretionary:
  BA..........................................................      25.208      25.407      28.651      30.034      31.579      32.854      33.845      34.630      35.459      36.322      37.176      38.037      156.963      338.587
  OT..........................................................      26.229      26.000      26.775      27.522      29.195      31.084      32.119      33.225      34.179      35.072      35.935      36.778      146.694      321.882
Mandatory:
  BA..........................................................      -0.064      -2.901      -2.970      -0.300       0.729       0.749       0.766       0.783       0.799       0.814       0.829       0.848       -1.026        3.047
  OT..........................................................      -3.872      -6.717      -2.568      -2.605      -2.656      -2.620      -2.515      -2.492      -2.490      -2.507      -2.527      -2.480      -12.964      -25.460
250--General Science, Space and Technology:
  BA..........................................................      22.016      23.153      23.603      24.433      25.217      26.055      26.832      27.462      28.121      28.805      29.492      30.185      126.140      270.205
  OT..........................................................      20.772      21.556      22.728      23.715      24.420      25.202      25.942      26.639      27.296      27.963      28.639      29.319      122.007      261.863
Discretionary:
  BA..........................................................      21.922      23.047      23.573      24.402      25.186      26.023      26.799      27.429      28.087      28.770      29.456      30.149      125.983      269.874
  OT..........................................................      20.715      21.457      22.630      23.620      24.356      25.157      25.909      26.607      27.263      27.929      28.605      29.284      121.672      261.360
Mandatory:
  BA..........................................................       0.094       0.106       0.030       0.031       0.031       0.032       0.033       0.033       0.034       0.035       0.036       0.036        0.157        0.331
  OT..........................................................       0.057       0.099       0.098       0.095       0.064       0.045       0.033       0.032       0.033       0.034       0.034       0.035        0.335        0.503
270--Energy:
  BA..........................................................       0.400       2.074       2.634       2.797       2.714       2.540       3.080       3.090       3.194       3.296       3.408       3.520       13.765       30.273
  OT..........................................................       0.483       0.439       0.873       0.947       1.272       1.069       1.419       1.686       1.794       1.976       2.357       2.326        5.578       15.718
Discretionary:
  BA..........................................................       3.248       3.237       3.672       3.975       3.914       3.902       4.858       4.975       5.096       5.227       5.357       5.489       20.321       46.465
  OT..........................................................       2.974       3.151       3.577       3.869       3.971       3.901       4.647       4.911       5.031       5.157       5.286       5.415       19.963       45.764
Mandatory:
  BA..........................................................      -2.848      -1.163      -1.038      -1.178      -1.200      -1.362      -1.778      -1.885      -1.902      -1.931      -1.949      -1.969       -6.556      -16.192
  OT..........................................................      -2.491      -2.712      -2.704      -2.922      -2.699      -2.832      -3.228      -3.225      -3.237      -3.181      -2.929      -3.089      -14.385      -30.046
300--Natural Resources and Environment:
  BA..........................................................      30.636      30.816      35.253      32.639      33.261      33.576      34.245      35.370      36.198      36.958      37.592      38.316      168.974      353.408
  OT..........................................................      29.459      28.940      31.378      32.325      33.889      34.128      34.119      34.701      35.512      36.267      36.874      37.677      165.840      346.870
Discretionary:
  BA..........................................................      29.124      29.238      32.836      29.802      30.097      30.583      31.319      31.998      32.705      33.448      34.196      34.970      154.637      321.954
  OT..........................................................      28.949      27.857      29.489      30.090      30.936      31.392      31.431      31.542      32.199      32.899      33.595      34.342      153.339      317.915
Mandatory:
  BA..........................................................       1.512       1.578       2.417       2.837       3.164       2.993       2.926       3.372       3.493       3.510       3.396       3.346       14.337       31.454
  OT..........................................................       0.510       1.083       1.889       2.235       2.954       2.736       2.688       3.159       3.313       3.368       3.279       3.335       12.501       28.955
350--Agriculture:
  BA..........................................................      23.821      24.418      24.457      26.844      26.661      26.141      25.363      25.943      25.407      24.864      24.455      24.185      129.466      254.320
  OT..........................................................      22.188      23.365      23.530      25.604      25.426      24.949      24.237      24.979      24.578      24.053      23.660      23.386      123.746      244.402
Discretionary:
  BA..........................................................       5.688       5.727       5.243       5.609       5.734       5.876       6.037       6.208       6.386       6.575       6.767       6.962       28.499       61.397
  OT..........................................................       5.306       5.852       5.589       5.533       5.613       5.758       5.958       6.128       6.303       6.487       6.679       6.871       28.451       60.919
Mandatory:
  BA..........................................................      18.133      18.691      19.214      21.235      20.927      20.265      19.326      19.735      19.021      18.289      17.688      17.223      100.967      192.923
  OT..........................................................      16.882      17.513      17.941      20.071      19.813      19.191      18.279      18.851      18.275      17.566      16.981      16.515       95.295      183.483
370--Commerce and Housing Credit:
  BA..........................................................      11.262       5.212       7.228       8.155       5.714       5.367       5.123       4.663       4.190       3.783       3.628       3.281       31.587       51.132
  OT..........................................................      -0.385       2.281       3.286       3.462       0.550      -0.608      -1.377      -1.844      -2.679      -3.669      -4.219      -4.526        5.313      -11.624
Discretionary:
  BA..........................................................       0.693       0.150      -0.496      -0.269      -0.554       0.534       0.878       0.767       0.661       0.534       0.625       0.574        0.093        3.254
  OT..........................................................       1.230       0.054       0.092      -0.393      -0.650       0.449       0.686       0.633       0.549       0.414       0.502       0.450        0.184        2.732
Mandatory:
  BA..........................................................      10.569       5.062       7.724       8.424       6.268       4.833       4.245       3.896       3.529       3.249       3.003       2.707       31.494       47.878
  OT..........................................................      -1.615       2.227       3.194       3.855       1.200      -1.057      -2.063      -2.477      -3.228      -4.083      -4.721      -4.976        5.129      -14.356
370 on-budget:
  BA..........................................................       8.191       8.812       7.428       8.655       8.192       8.538       8.655       8.438       8.319       8.298       8.401       8.475       41.468       83.399
  OT..........................................................       0.266       5.881       3.486       3.962       3.028       2.563       2.155       1.931       1.450       0.846       0.554       0.668       15.194       20.643
Discretionary:
  BA..........................................................       0.693       0.150      -0.496      -0.269      -0.554       0.534       0.878       0.767       0.661       0.534       0.625       0.574        0.093        3.254
  OT..........................................................       1.230       0.054       0.092      -0.393      -0.650       0.449       0.686       0.633       0.549       0.414       0.502       0.450        0.184        2.732
Mandatory:
  BA..........................................................       7.498       8.662       7.924       8.924       8.746       8.004       7.777       7.671       7.658       7.764       7.776       7.901       41.375       80.145
  OT..........................................................      -0.964       5.827       3.394       4.355       3.678       2.114       1.469       1.298       0.901       0.432       0.052       0.218       15.010       17.911
400--Transportation:
  BA..........................................................      68.887      64.091      75.783      76.502      77.515      79.931      82.747      85.361      72.323      73.183      74.067      74.987      392.478      772.399
  OT..........................................................      61.862      67.847      71.555      71.581      73.035      74.938      77.285      79.865      79.035      75.687      74.864      75.124      368.394      752.969
Discretionary:
  BA..........................................................      23.820      22.611      25.715      25.040      24.857      25.840      26.936      28.756      26.221      27.040      27.875      28.739      128.388      267.019
  OT..........................................................      57.292      65.184      69.294      69.396      70.986      72.954      75.358      77.909      77.068      73.685      72.816      73.023      357.988      732.489
Mandatory:
  BA..........................................................      45.067      41.480      50.068      51.462      52.658      54.091      55.811      56.605      46.102      46.143      46.192      46.248      264.090      505.380
  OT..........................................................       4.570       2.663       2.261       2.185       2.049       1.984       1.927       1.956       1.967       2.002       2.048       2.101       10.406       20.480
450--Community and Regional Development:
  BA..........................................................      23.361      15.751      14.323      14.398      14.581      14.796      15.005      15.240      15.493      15.752      16.015      16.283       73.103      151.886
  OT..........................................................      12.991      17.569      16.716      16.696      15.553      15.096      14.383      14.558      14.761      15.010      15.252      15.519       78.444      153.543
Discretionary:
  BA..........................................................      23.051      15.225      13.826      13.999      14.188      14.401      14.688      14.921      15.168      15.425      15.686      15.950       71.102      148.252
  OT..........................................................      14.108      17.629      16.787      16.517      15.474      15.059      14.390      14.602      14.835      15.079      15.313      15.569       78.227      153.624
Mandatory:
  BA..........................................................       0.310       0.526       0.497       0.399       0.393       0.395       0.317       0.319       0.325       0.327       0.329       0.333        2.001        3.634
  OT..........................................................      -1.117      -0.060      -0.071       0.179       0.079       0.037      -0.007      -0.044      -0.074      -0.069      -0.061      -0.050        0.217       -0.081

[[Page 9312]]

 
500--Education, Training, Employment, and Social Services:
  BA..........................................................      79.861      82.974      97.610      91.777      92.818      95.959      99.315     102.203     104.059     106.160     108.544     110.143      477.479    1,008.588
  OT..........................................................      70.544      81.531      86.279      91.286      91.964      92.948      95.279      98.470     101.281     103.536     105.570     107.642      457.757      974.256
Discretionary:
  BA..........................................................      71.275      72.875      86.322      81.280      81.575      84.353      87.416      90.037      91.731      93.495      95.632      96.904      420.946      888.745
  OT..........................................................      62.751      71.958      75.843      81.012      81.317      82.028      84.040      87.013      89.584      91.609      93.411      95.171      404.241      861.029
Mandatory:
  BA..........................................................       8.586      10.099      11.288      10.497      11.243      11.606      11.899      12.166      12.328      12.665      12.912      13.239       56.533      119.843
  OT..........................................................       7.793       9.573      10.436      10.274      10.647      10.920      11.239      11.457      11.697      11.927      12.159      12.471       53.516      113.227
550--Health:
  BA..........................................................     205.120     222.913     248.464     264.948     284.216     304.438     326.942     350.373     375.419     401.552     415.777     445.554    1,429.008    3,417.683
  OT..........................................................     196.521     217.881     246.671     264.680     284.024     303.522     325.618     348.889     373.890     400.014     414.359     444.147    1,424.514    3,405.813
Discretionary:
  BA..........................................................      45.789      49.468      52.712      50.667      51.800      52.950      54.299      55.607      56.972      58.387      59.806      61.246      262.428      554.446
  OT..........................................................      39.426      44.349      50.799      49.394      50.423      51.637      52.576      53.801      55.102      56.460      57.851      59.252      254.828      537.294
Mandatory:
  BA..........................................................     159.331     173.445     195.752     214.281     232.416     251.488     272.643     294.766     318.447     343.165     355.971     384.308    1,166.580    2,863.237
  OT..........................................................     157.095     173.532     195.872     215.286     233.601     251.885     273.042     295.088     318.788     343.554     356.508     384.895    1,169.686    2,868.519
570--Medicare:
  BA..........................................................     231.399     248.586     265.178     282.869     322.045     344.178     369.577     395.685     422.684     453.721     488.367     526.981    1,583.847    3,871.285
  OT..........................................................     230.855     248.434     265.443     285.817     318.806     344.448     369.452     395.424     422.942     457.078     484.541     527.237    1,583.966    3,871.188
Discretionary:
  BA..........................................................       3.653       3.798       3.739       3.807       3.906       4.014       4.138       4.353       4.572       4.809       5.089       5.396       19.604       43.823
  OT..........................................................       3.156       3.797       3.726       3.811       3.897       3.992       4.113       4.309       4.524       4.757       5.027       5.327       19.539       43.483
Mandatory:
  BA..........................................................     227.746     244.788     261.439     279.062     318.139     340.164     365.439     391.332     418.112     448.912     483.278     521.585    1,564.243    3,827.462
  OT..........................................................     227.699     244.637     261.717     282.006     314.909     340.456     365.339     391.115     418.418     452.321     479.514     521.910    1,564.427    3,827.705
600--Income Security:
  BA..........................................................     309.367     326.390     319.513     333.810     341.805     349.191     362.006     373.681     385.152     400.573     404.045     418.978    1,706.325    3,688.754
  OT..........................................................     312.511     334.169     324.701     337.157     344.322     350.983     363.115     374.384     385.671     401.003     404.453     419.551    1,720.278    3,705.341
Discretionary:
  BA..........................................................      42.379      44.020      45.712      48.760      50.311      52.004      53.714      55.441      57.295      59.143      61.023      62.884      250.501      546.287
  OT..........................................................      48.081      50.781      51.544      52.373      53.424      54.643      56.116      57.505      58.954      60.560      62.215      63.908      268.100      571.243
Mandatory:
  BA..........................................................     266.988     282.370     273.801     285.050     291.494     297.187     308.292     318.240     327.857     341.430     343.022     356.094    1,455.824    3,142.467
  OT..........................................................     264.430     283.388     273.157     284.784     290.898     296.340     306.999     316.879     326.717     340.443     342.238     355.643    1,452.178    3,134.098
650--Social Security:
  BA..........................................................     462.363     478.882     501.140     521.499     546.735     575.008     606.071     641.105     679.322     720.505     766.154     816.195    2,750.453    6,373.734
  OT..........................................................     455.999     476.888     498.679     518.672     543.640     571.621     602.300     636.939     674.852     715.645     760.812     810.363    2,734.912    6,333.523
Discretionary:
  BA..........................................................       3.523       3.833       4.282       4.363       4.450       4.549       4.665       4.820       4.983       5.151       5.323       5.503       22.309       48.089
  OT..........................................................       3.925       3.859       4.231       4.326       4.435       4.532       4.644       4.794       4.953       5.121       5.291       5.471       22.168       47.798
Mandatory:
  BA..........................................................     458.840     475.049     496.858     517.136     542.285     570.459     601.406     636.285     674.339     715.354     760.831     810.692    2,728.144    6,325.645
  OT..........................................................     452.074     473.029     494.448     514.346     539.205     567.089     597.656     632.145     669.899     710.524     755.521     804.892    2,712.744    6,285.725
650 on-budget:
  BA..........................................................      13.997      13.255      14.294      15.471      16.421      17.919      19.704      21.810      24.283      28.170      31.357      34.347       83.809      223.776
  OT..........................................................      13.988      13.255      14.293      15.471      16.421      17.919      19.704      21.810      24.283      28.170      31.357      34.347       83.808      223.775
Discretionary:
  BA..........................................................       0.019       0.021       0.025       0.025       0.026       0.027       0.027       0.028       0.029       0.030       0.031       0.032        0.130        0.280
  OT..........................................................       0.019       0.021       0.024       0.025       0.026       0.027       0.027       0.028       0.029       0.030       0.031       0.032        0.129        0.279
Mandatory:
  BA..........................................................      13.978      13.234      14.269      15.446      16.395      17.892      19.677      21.782      24.254      28.140      31.326      34.315       83.679      223.496
  OT..........................................................      13.969      13.234      14.269      15.446      16.395      17.892      19.677      21.782      24.254      28.140      31.326      34.315       83.679      223.496
700--Veterans Benefits and Services:
  BA..........................................................      52.126      57.597      63.773      67.125      65.388      63.859      67.645      69.254      70.967      75.643      72.592      77.429      327.790      693.675
  OT..........................................................      50.983      57.486      63.200      66.530      64.970      63.416      67.374      68.899      70.563      75.223      72.071      76.963      325.490      689.209
Discretionary:
  BA..........................................................      24.074      26.532      29.957      28.386      28.812      29.272      29.838      30.796      31.789      32.824      33.887      35.000      146.265      310.561
  OT..........................................................      23.959      26.902      29.600      28.183      28.495      29.024      29.662      30.530      31.497      32.521      33.576      34.663      144.964      307.751
Mandatory:
  BA..........................................................      28.052      31.065      33.816      38.739      36.576      34.587      37.807      38.458      39.178      42.819      38.705      42.429      181.525      383.114
  OT..........................................................      27.024      30.584      33.600      38.347      36.475      34.392      37.712      38.369      39.066      42.702      38.495      42.300      180.526      381.458
750--Administration of Justice:
  BA..........................................................      36.171      38.543      37.757      38.077      37.965      38.442      39.458      40.478      41.580      42.870      44.188      45.557      191.699      406.372
  OT..........................................................      34.310      37.712      40.882      39.324      38.348      38.233      39.109      40.193      41.280      42.453      43.741      45.101      195.896      408.664
Discretionary:
  BA..........................................................      34.676      36.289      33.679      35.912      36.664      37.621      38.694      39.771      40.931      42.288      43.674      45.117      182.570      394.351
  OT..........................................................      33.153      35.484      37.608      36.761      36.862      37.483      38.455      39.596      40.741      41.977      43.331      44.764      187.169      397.578
Mandatory:
  BA..........................................................       1.495       2.254       4.078       2.165       1.301       0.821       0.764       0.707       0.649       0.582       0.514       0.440        9.129       12.021
  OT..........................................................       1.157       2.228       3.274       2.563       1.486       0.750       0.654       0.597       0.539       0.476       0.410       0.337        8.727       11.086
800--General Government:
  BA..........................................................      18.384      18.195      20.012      20.341      22.396      21.147      21.646      21.957      22.706      23.469      24.267      25.138      105.542      223.079
  OT..........................................................      17.380      18.120      19.876      20.420      22.225      20.897      21.423      21.515      22.223      22.957      23.892      24.582      104.841      220.010
Discretionary:
  BA..........................................................      15.602      15.702      17.102      17.364      17.760      18.181      18.669      19.303      19.977      20.656      21.360      22.094       89.076      192.466
  OT..........................................................      14.640      15.570      16.783      17.479      17.648      17.956      18.306      18.849      19.500      20.161      20.853      21.571       88.172      189.106
Mandatory:
  BA..........................................................       2.782       2.493       2.910       2.977       4.636       2.966       2.977       2.654       2.729       2.813       2.907       3.044       16.466       30.613
  OT..........................................................       2.740       2.550       3.093       2.941       4.577       2.941       3.117       2.666       2.723       2.796       3.039       3.011       16.669       30.904
900--Net Interest:
  BA..........................................................     170.955     155.592     166.095     203.823     230.541     243.499     252.354     259.782     263.974     267.195     267.392     261.100    1,096.312    2,415.755
  OT..........................................................     170.957     155.592     166.095     203.823     230.541     243.499     252.354     259.782     263.974     267.195     267.392     261.100    1,096.312    2,415.755
Discretionary:
  BA..........................................................       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000        0.000        0.000
  OT..........................................................       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000        0.000        0.000
Mandatory:
  BA..........................................................     170.955     155.592     166.095     203.823     230.541     243.499     252.354     259.782     263.974     267.195     267.392     261.100    1,096.312    2,415.755
  OT..........................................................     170.957     155.592     166.095     203.823     230.541     243.499     252.354     259.782     263.974     267.195     267.392     261.100    1,096.312    2,415.755
900 on-budget:
  BA..........................................................     247.775     239.682     255.775     301.673     339.281     364.919     387.674     410.022     430.164     450.345     468.452     480.870    1,649.322    3,889.175
  OT..........................................................     247.777     239.682     255.775     301.673     339.281     364.919     387.674     410.022     430.164     450.345     468.452     480.870    1,649.322    3,889.175
Discretionary:
  BA..........................................................       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000        0.000        0.000
  OT..........................................................       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000        0.000        0.000
Mandatory:
  BA..........................................................     247.775     239.682     255.775     301.673     339.281     364.919     387.674     410.022     430.164     450.345     468.452     480.870    1,649.322    3,889.175
  OT..........................................................     247.777     239.682     255.775     301.673     339.281     364.919     387.674     410.022     430.164     450.345     468.452     480.870    1,649.322    3,889.175
920--Allowances:
  BA..........................................................       0.000       0.115     -16.122      -5.943      -2.104      -1.467      -6.263     -19.939     -41.290     -19.883     -23.031     -27.371      -31.899     -163.413
  OT..........................................................       0.000       0.115      -8.342      -6.134      -5.959      -3.698      -7.163     -17.617     -38.356     -16.729     -19.546     -24.228      -31.297     -147.771
Discretionary:
  BA..........................................................       0.000       0.115     -15.202      -5.623      -1.784      -1.147      -5.943     -19.619     -40.970     -19.563     -22.711     -27.051      -29.699     -159.613
  OT..........................................................       0.000       0.115      -7.763      -5.685      -5.657      -3.381      -6.843     -17.297     -38.036     -16.409     -19.226     -23.908      -29.330     -144.204

[[Page 9313]]

 
Mandatory:
  BA..........................................................       0.000       0.000      -0.920      -0.320      -0.320      -0.320      -0.320      -0.320      -0.320      -0.320      -0.320      -0.320       -2.200       -3.800
  OT..........................................................       0.000       0.000      -0.579      -0.449      -0.302      -0.317      -0.320      -0.320      -0.320      -0.320      -0.320      -0.320       -1.967       -3.567
950--Undistributed Offsetting Receipts:
  BA..........................................................     -47.806     -50.513     -52.926     -63.411     -69.375     -61.259     -65.185     -66.882     -69.937     -73.259     -78.640     -82.068     -312.156     -682.942
  OT..........................................................     -47.392     -50.513     -52.926     -63.411     -69.375     -61.259     -65.185     -66.882     -69.937     -73.259     -78.640     -82.068     -312.156     -682.942
Discretionary:
  BA..........................................................       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000        0.000        0.000
  OT..........................................................       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000        0.000        0.000
Mandatory:
  BA..........................................................     -47.806     -50.513     -52.926     -63.411     -69.375     -61.259     -65.185     -66.882     -69.937     -73.259     -78.640     -82.068     -312.156     -682.942
  OT..........................................................     -47.392     -50.513     -52.926     -63.411     -69.375     -61.259     -65.185     -66.882     -69.937     -73.259     -78.640     -82.068     -312.156     -682.942
950 on-budget:
  BA..........................................................     -38.514     -41.104     -42.894     -52.608     -57.884     -49.087     -52.121     -52.962     -55.108     -57.359     -62.012     -64.358     -254.594     -546.393
  OT..........................................................     -38.514     -41.104     -42.894     -52.608     -57.884     -49.087     -52.121     -52.962     -55.108     -57.359     -62.012     -64.358     -254.594     -546.393
Discretionary:
  BA..........................................................       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000        0.000        0.000
  OT..........................................................       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000       0.000        0.000        0.000
Mandatory:
  BA..........................................................     -38.514     -41.104     -42.894     -52.608     -57.884     -49.087     -52.121     -52.962     -55.108     -57.359     -62.012     -64.358     -254.594     -546.393
  OT..........................................................     -38.514     -41.104     -42.894     -52.608     -57.884     -49.087     -52.121     -52.962     -55.108     -57.359     -62.012     -64.358     -254.594     -546.393
Total:
  BA..........................................................   2,085.573   2,162.789   2,260.114   2,390.819   2,531.170   2,656.404   2,782.913   2,889.448   2,970.900   3,125.270   3,227.301   3,366.670   12,621.420   28,201.009
  OT..........................................................   2,010.950   2,147.924   2,245.894   2,371.946   2,490.782   2,607.468   2,733.603   2,849.302   2,948.361   3,105.447   3,191.109   3,338.397   12,449.692   27,882.308
Discretionary:
  BA..........................................................     734.713     772.411     791.381     816.945     848.002     881.539     910.979     916.981     909.590     950.790     968.401     984.394    4,248.847    8,979.003
  OT..........................................................     734.405     809.372     837.164     857.489     876.104     901.663     933.724     950.277     949.739     991.328     999.948   1,019.939    4,406.144    9,317.374
Mandatory:
  BA..........................................................   1,350.860   1,390.378   1,468.733   1,573.874   1,683.168   1,774.865   1,871.933   1,972.467   2,061.310   2,174.480   2,258.900   2,382.276    8,372.573   19,222.006
  OT..........................................................   1,276.545   1,338.552   1,408.730   1,514.457   1,614.678   1,705.805   1,799.879   1,899.025   1,998.622   2,114.119   2,191.161   2,318.458    8,043.549   18,564.934
Total on-budget:
  BA..........................................................   1,720.248   1,794.261   1,873.180   1,993.944   2,123.565   2,236.078   2,348.462   2,438.088   2,501.009   2,636.500   2,714.965   2,827.496   10,575.229   23,693.287
  OT..........................................................   1,655.288   1,781.390   1,861.420   1,977.898   2,086.272   2,190.529   2,302.923   2,402.108   2,482.940   2,621.537   2,684.115   2,805.055   10,419.041   23,414.796
Discretionary:
  BA..........................................................     731.209     768.599     787.124     812.607     843.578     877.017     906.341     912.189     904.636     945.669     963.109     978.923    4,226.668    8,931.194
  OT..........................................................     730.499     805.534     832.957     853.188     871.695     897.158     929.107     945.511     944.815     986.237     994.688   1,014.500    4,384.105    9,269.855
Mandatory:
  BA..........................................................     989.039   1,025.662   1,086.056   1,181.337   1,279.987   1,359.061   1,442.120   1,525.899   1,596.373   1,690.831   1,751.856   1,848.573    6,348.561   14,762.093
  OT..........................................................     924.789     975.856   1,028.463   1,124.710   1,214.577   1,293.371   1,373.816   1,456.597   1,538.125   1,635.300   1,689.427   1,790.555    6,034.937   14,144.941
Revenues......................................................   1,853.173   1,865.468   1,958.615   2,153.829   2,321.376   2,479.341   2,619.660   2,762.435   2,897.122   3,102.068   3,292.730   3,497.075   11,532.821   27,084.251
Revenues on-budget............................................   1,337.852   1,333.861   1,400.789   1,566.044   1,702.314   1,828.213   1,935.251   2,043.323   2,141.398   2,309.946   2,463.192   2,627.425    8,432.611   20,017.895
Deficit/Surplus...............................................    -157.777    -282.456    -287.279    -218.117    -169.406    -128.127    -113.943     -86.867     -51.239      -3.379     101.621     158.678     -916.871     -798.057
  On-budget...................................................    -317.436    -447.529    -460.631    -411.854    -383.958    -362.316    -367.672    -358.785    -341.542    -311.591    -220.923    -177.630   -1,986.430   -3,396.901
  Off-budget..................................................     159.659     165.073     173.352     193.737     214.552     234.189     253.729     271.918     290.303     308.212     322.544     336.308    1,069.559    2,598.844
Notes and Miscellaneous Info:
Revenues:
  On-budget...................................................   1,337.852   1,333.861   1,400.789   1,566.044   1,702.314   1,828.213   1,935.251   2,043.323   2,141.398   2,309.946   2,463.192   2,627.425    8,432.611   20,017.895
  Off-budget..................................................     515.321     531.607     557.826     587.785     619.062     651.128     684.409     719.112     755.724     792.122     829.538     869.650    3,100.210    7,066.356
Outlays:
  On-budget:
    BA........................................................   1,720.248   1,794.261   1,873.180   1,993.944   2,123.565   2,236.078   2,348.462   2,438.088   2,501.009   2,636.500   2,714.965   2,827.496   10,575.229   23,693.287
    OT........................................................   1,655.288   1,781.390   1,861.420   1,977.898   2,086.272   2,190.529   2,302.923   2,402.108   2,482.940   2,621.537   2,684.115   2,805.055   10,419.041   23,414.796
  Off-budget:
    BA........................................................     365.325     368.528     386.934     396.875     407.605     420.326     434.451     451.360     469.891     488.770     512.336     539.174    2,046.191    4,507.722
    OT........................................................     355.662     366.534     384.474     394.048     404.510     416.939     430.680     447.194     465.421     483.910     506.994     533.342    2,030.651    4,467.512
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

                         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 and revenue totals are discussed in the following 
     section. The Conference Agreement provides aggregate 
     discretionary spending in 2004 of $784.460 billion in budget 
     authority (BA) and $860.752 billion in outlays.
       These two aggregate numbers are allocated to the 
     Appropriations Committees to be suballocated to their 13 
     individual appropriation subcommittees.

                                Revenue

       The component of the budget resolution classified as 
     revenue reflects all of the Federal Government's various tax 
     receipts that are classified as ``on-budget.'' This includes 
     individual income taxes; corporate income taxes; excise 
     taxes, such as the gasoline tax; various other taxes, such as 
     estate and gift taxes; and social insurance taxes, except for 
     Social Security. Customs duties, tariffs, and other 
     miscellaneous receipts also are included in the revenue 
     function.
       Social insurance taxes collected for the Social Security 
     system--the Old Age and Survivors and Disability Insurance 
     [OASDI] payroll tax--are off budget. The remaining social 
     insurance taxes (the Hospital Insurance [HI] payroll tax 
     portion of Medicare, the Federal Unemployment Tax Act [FUTA] 
     payroll tax, railroad retirement, and other retirement 
     systems) are all on budget. Pursuant to the Congressional 
     Budget Act of 1974 and the Budget Enforcement Act of 1990,
       Social Security payroll taxes, which constitute slightly 
     more than a quarter of all Federal receipts, are not 
     reflected in the budget resolution.
     House Resolution
       The House resolution calls for on-budget revenue of $1.32 
     trillion in fiscal year 2003; $1.35 trillion in 2004; $8.23 
     trillion from 2004 through 2008; and $19.48 trillion from 
     2004 through 2013. When off-budget Social Security taxes are 
     added, total revenue is estimated to be $1.86 trillion in 
     fiscal year 2003, $1.91 trillion in 2004, $11.33 trillion 
     over the next 5 years, and $26.55 trillion over the next 10 
     years.
       The resolution directs the Committee on Ways and Means to 
     report legislation to the House floor by 11 April 2003, 
     making adjustments in current law to effect a reduction in 
     revenue of $35.4 billion in 2003; $112.8 billion in 2004; 
     $387.7 billion from 2004 through 2008; and $698.3 billion in 
     2003-2013. This ``reconciles'' an economic growth and job 
     creation plan similar to the President's under the expedited 
     reconciliation rules of the Budget Act. (Also reconciled to 
     the Ways and Means Committee is $27.5 billion in new 
     mandatory spending authority to cover the refundable 
     component of an accelerated increase in the child tax 
     credit.)
       The resolution also assumes the permanent extension of the 
     expiring tax cuts in the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 that otherwise will expire in 
     2010. This will reduce revenue over 11 years by $601.9 
     billion below the baseline. This adjustment is not 
     reconciled.
       Finally, the budget accommodates, but does not reconcile, 
     $49.9 billion in additional tax relief over the next 11 
     years. Policies would be determined by the Committee on Ways 
     and Means, but could include incentives for charitable 
     giving, affordable single-family housing, and energy 
     production, conservation, and reliability; simplifying the 
     tax laws; and other House policies. Tariff and other revenue 
     effects of various trade initiatives are also possible.
     Senate Amendment
       The Senate amendment assumes an overall reduction in 
     revenues of $802.2 billion over the 11-year period, 2003-13. 
     The Senate amendment instructs the Finance Committee to 
     report legislation by 8 April 2003 to reduce revenues by 
     $322.5 billion over 2003-2013 and to increase direct spending 
     related to tax policy changes by $27.5 billion over 2003-13 
     (reflected in Function 600). The Senate amendment assumes, 
     but does not reconcile, an additional $479.6 billion in tax 
     relief over 11 years with a related, but

[[Page 9314]]

     unreconciled, increase in direct spending (related to tax 
     policy changes) of $22.3 billion over 11 years (reflected in 
     Function 600).
       The Committee-reported resolution reconciled the Finance 
     Committee for a reduction in revenues and an increase in 
     outlays consistent with President Bush's jobs and growth tax 
     relief plan. The President's plan provides tax relief of $698 
     billion over the 2003-13 period. It includes three main 
     components: tax relief for working families (by speeding up 
     individual income tax marginal rate reductions already in 
     law, accelerating marriage penalty relief already in law, 
     increasing the child credit immediately to $1,000, and 
     increasing the alternative minimum tax exemption amount); 
     elimination of the double taxation of dividends; and a 
     permanent increase in small business expensing. Since the 
     child credit is partially refundable, the Committee-reported 
     resolution assumed outlay increases sufficient to accommodate 
     the President's growth plan--$27.5 billion in new spending 
     over the next 11 years.
       During consideration of the Committee-reported resolution, 
     the Senate adopted several amendments that had the combined 
     effect of reducing the revenue reconciliation instruction to 
     the Finance Committee to $322.5 billion over 11 years.
       The Committee-reported resolution assumed, but did not 
     reconcile, the permanent extension of the provisions of the 
     Economic Growth and Tax Relief Reconciliation Act of 2001 
     [EGTRRA], which are currently scheduled to expire after 2010. 
     The 11-year tax relief assumption for the EGTRRA extensions 
     is $601.9 billion, with $592.6 billion of the revenue loss 
     (98 percent) occurring in years 2011-13. The permanent 
     extension of the EGTRRA provisions also results in an 
     increase in direct spending of $22.3 billion over 11 years. 
     The Committee-reported resolution also assumed, but did not 
     reconcile, about $13 billion in tax relief over 11 years from 
     several measures expected to be considered in the upcoming 
     year.
       During the Senate's consideration of the Committee-reported 
     resolution, the Senate adopted eight amendments affecting the 
     amount of tax relief assumed outside of reconciliation. The 
     Senate adopted one amendment providing for $45 billion in 
     additional tax relief consistent with making the repeal of 
     the estate tax permanent beginning in 2009. The Senate also 
     adopted seven amendments that reduced the level of tax relief 
     assumed outside of reconciliation by $181 billion. The 
     Committee-reported resolution assumed $614.7 billion of tax 
     relief outside of reconciliation; the Senate amendment 
     assumes $478.7 billion of tax relief outside of 
     reconciliation.
     Conference Agreement
       The Conference Agreement calls for a jobs and growth plan 
     with goals similar to the President's proposal: supporting 
     broad, sustained economic growth and job creation.
       With these goals, the Conference Agreement assumes $626 
     billion over the 2003-13 period for tax relief and associated 
     outlays for a jobs and growth plan. The Agreement directs the 
     Senate Finance Committee to report legislation by 8 May 2003 
     to reduce revenue by $522.524 billion over 2003-2013, and to 
     increase direct spending related to tax policy changes by 
     $27.476 billion over 2003-2013 (reflected in function 600). 
     The Agreement also directs the House Ways and Means Committee 
     to report legislation by 30 May 2003 to reduce revenue by 
     $535.0 billion over 2003-13, and to increase direct spending 
     related to tax policy changes by $15.0 billion over 2003-
     2013.
       The Conference Agreement assumes, but does not reconcile, 
     an additional $690.9 billion in tax relief over 11 years, and 
     associated increases in direct spending. The assumed 
     additional tax relief could accommodate the permanent 
     extension of the provisions of the Economic Growth and Tax 
     Relief Reconciliation Act of 2001 [EGTRRA], the tax 
     provisions of energy policy legislation, the revenue impacts 
     of trade legislation, and several miscellaneous tax 
     provisions proposed by the President or Congress.

                     National Defense: Function 050

     Function Summary
       The National Defense function includes funds to develop, 
     maintain, and equip the military forces of the United States. 
     More than 95 percent of the funding in this function goes to 
     Department of Defense [DOD] military activities. The function 
     also includes pay and benefits for military and civilian 
     personnel; research, development, testing, and evaluation; 
     procurement of weapon systems; military construction and 
     family housing; and operations and maintenance of the defense 
     establishment. The remaining funding in the function is for 
     atomic energy defense activities of the Department of Energy, 
     and other defense-related activities.
     House Resolution
       The House resolution calls for $400.6 billion in BA and 
     $400.9 billion in outlays in fiscal year 2004, an increase of 
     2.0 percent in BA compared with fiscal year 2003. The 
     function totals are $2,202.1 billion in BA and $2,142.7 
     billion in outlays over 5 years; and $4,814.0 billion in BA 
     and $4,704.4 billion in outlays over 10 years.
       The BA and outlay funding levels for National Defense will 
     support critical military and homeland security initiatives, 
     and are consistent with the President's recommendations. The 
     resolution assumes $70 million in additional mandatory BA to 
     permit proceeds from facilities that were acquired, 
     constructed, or improved with commissary surcharges or 
     nonappropriated funds, and that were closed under Base 
     Realignment and Closure authority, to be reapplied to 
     nonappropriated fund activities without an appropriation.
     Senate Amendment
       For discretionary programs, the Senate amendment assumes 
     the President's request for National Defense in 2004 
     totalling $400.1 billion in BA and $400.6 billion in outlays 
     for 2004. This is an increase of $7.9 billion in BA (2.0 
     percent) and $14.2 billion in outlays (3.7 percent) from the 
     2003 level.
       For 2003, the Committee-reported resolution assumed the 
     full-year appropriations already enacted. An amendment to the 
     resolution adopted by the Senate assumed an increase of $3.0 
     billion in BA and outlays in 2003 to provide pay and benefits 
     for active duty, National Guard and Reserve forces, and to 
     modernize National Guard and Reserve equipment and weapons.
       For defense activities in the Department of Defense only, 
     the Senate amendment assumes $380.8 billion in discretionary 
     BA in 2004, an increase of $6.2 billion (1.6 percent) above 
     the 2003 level of $374.6 billion.
       Within DOD, the Senate amendment assumes $231.9 billion in 
     discretionary BA for readiness accounts (military personnel 
     and operations and maintenance) in 2004. This represents an 
     increase of $2.4 billion in BA (1.0 percent) above the 2003 
     level of $229.5 billion. These appropriations would support 
     an active duty end strength of 1,388,100 and a Selected 
     Reserves strength of 863,000. It would also support pay 
     raises ranging from 2.0 percent to 6.3 percent, targeted by 
     rank and years of service.
       The Senate amendment also assumes $136.2 billion for 
     investment accounts (procurement and research, development, 
     testing, and evaluation) in 2004. This represents an increase 
     of $4.8 billion in BA (3.9 percent) above the 2003 
     appropriated level of $131.4 billion. Major purchases include 
     a Virginia Class submarine, 3 DDG-51 destroyers, 42 F/A-18E/F 
     fighter aircraft, and 22 F-22 fighter aircraft.
       For military construction and family housing, the Senate 
     amendment assumes $9.1 billion in discretionary budget 
     authority for 2004 representing a 13.8-percent decrease from 
     the 2003 level of $10.5 billion.
       During floor consideration, the Senate adopted an amendment 
     that would allow the Appropriations Committee to provide up 
     to $100 billion for the costs associated with disarming Iraq.
       For defense activities in the Department of Energy, the 
     Senate amendment assumes $16.9 billion in discretionary BA in 
     2004, representing an increase of $1.1 billion (6.9 percent) 
     above the 2003 enacted level of $15.8 billion.
       The Senate amendment assumes $8.8 billion in discretionary 
     BA for the National Nuclear Security Administration in 2004, 
     representing an increase of $796 million (10.0 percent) above 
     the 2003 enacted level of $8.0 billion.
       The Senate amendment assumes $7.7 billion in discretionary 
     BA for the Department of Energy's environmental and other 
     defense activities in 2004, representing an increase of $185 
     million (2.5 percent) above the 2003 enacted level of $7.6 
     billion.
       The Senate-reported resolution assumed no mandatory 
     increases or decreases in this function. Of note, the Senate-
     reported amendment assumed full funding for the so-called the 
     Purple Heart Plus program, which was included in last year's 
     Defense Authorization Act. The provision allows all disabled 
     military retirees whose disabilities are a direct result of 
     combat, and those most severely disabled (60 percent or 
     greater) military retirees whose disabilities are a direct 
     result of combat-related injury, to receive their full 
     military retirement pay as well as a special compensation 
     equal to the amount of veterans' disability compensation 
     without offset. The Senate amendment reflects an amendment to 
     the Committee-reported resolution adopted by the Senate to 
     cover the incremental mandatory cost of phased-in concurrent 
     receipt of retirement pay and disability for all veterans 
     with service-related disabilities rated at 60 percent or 
     higher ($182 million in BA and outlays in 2004, and $12.8 
     billion in BA and outlays over the 2004-13 period).
     Conference Agreement
       The Conference Agreement assumes enactment of the fiscal 
     year 2003 supplemental appropriations bill for addressing the 
     conflict in Iraq. The provision allows an adjustment for the 
     finally enacted level.
       The Agreement calls for function totals of $400.5 billion 
     in BA and $400.9 billion in outlays for fiscal year 2004; 
     $2,202.1 billion in BA and $2,142.7 billion in outlays over 5 
     years; and $4,758.2 billion in BA and $4,658.3 billion in 
     outlays over 10 years.
       The discretionary levels in this function are consistent 
     with the President's request. The levels will support 
     military forces capable of prevailing decisively in the near 
     term, and accommodate the military's longer-term 
     transformation goals.

[[Page 9315]]



                  International Affairs: Function 150

     Function Summary
       As part of the Global War on Terrorism, the Department of 
     State and international assistance programs play a vital role 
     in maintaining and expanding support of the international 
     coalition against terrorism. Funds distributed through the 
     International Affairs function provide for international 
     development and humanitarian assistance; international 
     security assistance; the conduct of foreign affairs; foreign 
     information and exchange activities; and international 
     financial programs. The major departments and agencies in 
     this function include the Department of State, the Department 
     of the Treasury, and the United States Agency for 
     International Development [USAID].
     House Resolution
       The budget resolution calls for $24.8 billion in BA and 
     $23.7 billion in outlays in fiscal year 2004, an increase of 
     9.8 percent in BA compared with fiscal year 2003. The 
     function totals are $149.9 billion in BA and $128.9 billion 
     in outlays over 5 years, and $326.6 billion in BA and $283.5 
     billion in outlays over 10 years.
       The House resolution calls for $2 billion as the first 
     installment toward the President's Emergency Plan for AIDS 
     Relief, a 5-year, $15-billion initiative to turn the tide in 
     the global effort to combat the HIV/AIDS pandemic. This 
     initiative--funded through USAID, the Department of Health 
     and Human Services, and the Centers for Disease Control--
     virtually triples U.S. funding to fight the international 
     AIDS pandemic. The resolution also recommends funds 
     sufficient for the President's proposal to create a new 
     Government corporation--the Millennium Challenge 
     Corporation--to administer a $1.3 billion fund designed to 
     promote just governance and sound free-market economic 
     policies in International Development Association-eligible 
     countries (with yearly per-capita incomes below $1,435).
     Senate Amendment
       For discretionary programs, the Senate amendment assumes 
     the President's request for 2004 totaling $28.7 billion in BA 
     and $26.8 billion in outlays. This represents an increase of 
     $3.2 billion in BA (12.8 percent) and $0.8 billion in outlays 
     (3.0 percent) from the 2003 level.
       The Senate amendment assumes $12.5 billion in discretionary 
     BA for International Development and Humanitarian Assistance, 
     an increase of $2.1 billion (20.1 percent) above the 2003 
     appropriated level of $10.4 billion. Within International 
     Development and Humanitarian Assistance, the Senate amendment 
     assumes a new development assistance organization, called the 
     Millennium Challenge Corporation, with an initial funding 
     level of $1.3 billion for 2004 and $14.3 billion over 2004-
     13. The Senate amendment also assumes a new Global AIDS 
     Initiative ($450 million in 2004 and $22.3 billion over 10 
     years), and a new fund for dealing with famine ($200 million 
     in 2004, and $2.2 billion over 10 years).
       The Senate amendment assumes $7.6 billion in discretionary 
     BA for International Security Assistance, an increase of $0.9 
     billion (13.2 percent) above the 2003 appropriated level of 
     $6.7 billion. Within International Security Assistance, the 
     Senate amendment assumes the creation of a new fund to deal 
     with Complex Foreign Crises, with initial funding of $100 
     million for 2004.
       The Senate amendment assumes $7.5 billion in discretionary 
     BA for the Conduct of Foreign Affairs, an increase of $636 
     million (9.2 percent) above the 2003 appropriated level of 
     $6.9 billion. The Senate amendment also assumes $983 million 
     in discretionary BA for Foreign Information and Exchange 
     Activities, an increase of $152 million (18.3 percent) above 
     the 2003 appropriated level of $831 million.
       The Senate amendment assumes no mandatory increases or 
     decreases in this function.
     Conference Agreement
       The Conference Agreement calls for $25.7 billion in BA and 
     $24.2 billion in outlays in fiscal year 2004; $155.9 billion 
     in BA and $133.7 billion in outlays over 5 years; and $341.6 
     billion in BA and $296.4 billion in outlays over 10 years. 
     The Conference Agreement fully accommodates the President's 
     request for this function. This includes funding for the 
     President's Millennium Challenge Corporation initiative and 
     the Global AIDS Initiative.

          General Science, Space, and Technology: Function 250

     Function Summary
       Function 250 consists of General Science, Space and 
     Technology programs. The largest component of this function--
     about two-thirds of total spending--is for the space flight, 
     research, and supporting activities of the National 
     Aeronautics and Space Administration [NASA]. The function 
     also reflects general science funding, including the budgets 
     for the National Science Foundation [NSF], and the 
     fundamental science programs of the Department of Energy 
     [DOE].
     House Resolution
       The House resolution calls for $22.8 billion in BA and 
     $22.3 billion in outlays in fiscal year 2004, a decrease of 
     1.6 percent in BA compared with fiscal year 2003. The 
     function totals are $121.8 billion in BA and $118.7 billion 
     in outlays over 5 years; and $260.8 billion in BA and $254.1 
     billion in outlays over 10 years.
     Senate Amendment
       For discretionary programs the Senate amendment assumes a 
     discretionary total of $23.6 billion in BA and $22.6 billion 
     in outlays for 2004. This represents an increase of $0.5 
     billion (2.3 percent) in BA and $1.2 billion (5.5 percent) in 
     outlays from the 2003 level. The Senate amendment includes 
     the following specific assumptions.
       For NASA, the Senate amendment assumes funding the 
     President's request of $14.5 billion for Function 250 
     activities (this excludes NASA aeronautics funding that falls 
     in Function 400). Included is $6.7 billion for Science, 
     Aeronautics, and Exploration and $7.8 billion for Space 
     Flight Capabilities. The President's request of $4.0 billion 
     (on a full-cost basis) is assumed for the Space Shuttle.
       The Senate amendment assumes funding the President's 
     request of $5.4 billion in discretionary funding for National 
     Science Foundation activities, a 3.2 percent increase over 
     the 2003 level.
       For Department of Energy science programs, the Senate 
     amendment assumes a $100 million increase over the 
     President's request, bringing total funding for DOE science 
     programs to $3.4 billion in 2004, a 4.6 percent increase over 
     the 2003 level.
       The Senate amendment includes $273 million for the 
     Department of Homeland Security in 2004. These funds support 
     the advance of homeland security through scientific research.
       The Senate amendment assumes no mandatory increases or 
     decreases in this function.
     Conference Agreement
       The Conference Agreement for Function 250 calls for $23.9 
     billion in BA and $22.8 billion in outlays in fiscal year 
     2004. The functional totals are $126.5 billion in BA and 
     $122.3 billion in outlays over 5 years, and $270.5 billion in 
     BA and $262.2 billion in outlays over 10 years. The Agreement 
     accommodates an increase of $324 million above the 
     administration's request for NSF research and related 
     activities. The Agreement also supports a $100 million 
     increase over the administration's request for DOE science 
     programs.

                          Energy: Function 270

     Function Summary
       The Energy function reflects civilian energy and 
     environmental activities and programs of the Federal 
     Government. Through this function, spending is provided for 
     energy supply programs, such as solar and renewable, fossil 
     and nuclear research at the Department of Energy [DOE]; rural 
     electricity and telecommunications loans, administered 
     through the Rural Utilities Service of the Department of 
     Agriculture; electric power generation and transmission 
     programs of the Power Marketing Administrations (the 
     Southeastern Power Administration, the Southwestern Power 
     Administration, the Western Area Power Administration, and 
     the Bonneville Power Administration); and power generation 
     and transmission programs of the Tennessee Valley Authority. 
     This function also provides funds for energy conservation 
     programs; emergency energy preparedness (mainly the Strategic 
     Petroleum Reserve); and energy information, policy, and 
     regulation programs, including spending by the Office of the 
     Secretary of Energy and the operations of the Federal Energy 
     Regulatory Commission, the Nuclear Regulatory Commission and 
     the U.S. Enrichment Corporation.
       Function 270 does not include DOE's national security 
     activities--the National Nuclear Security Administration--
     which are in Function 050 (Defense), or its basic research 
     and science activities, which are in Function 250 (General 
     Science, Space, and Technology).
     House Resolution
       The House resolution calls for $2.6 billion in BA and $0.9 
     billion in outlays in fiscal year 2004, an increase of 25 
     percent in BA compared with fiscal year 2003. The function 
     totals are $13.3 billion in BA and $5.6 billion in outlays 
     over 5 years, and $29.3 billion in BA and $15.6 billion in 
     outlays over 10 years.
       Pursuant to the Homeland Security Act of 2002, the 
     functions of the National Simulation and Analysis Center and 
     the energy security and assurance programs of the Department 
     of Energy are transferred to the new Department's Directorate 
     of Information Analysis and Infrastructure Protection.
       The resolution accommodates resources outside the 
     Department of Homeland Security necessary for certain aspects 
     of homeland security. A sum of $619 million is assumed in 
     fiscal year 2004 for the Nuclear Regulatory Commission to 
     continue to review and strengthen NRC's physical facilities 
     and information technology infrastructure to enhance nuclear 
     plant security. Of this amount, $572 million is provided by 
     fees and receipts.
     Senate Amendment
       The Senate amendment assumes spending in this function 
     would total $2.6 billion in BA and $0.9 billion in outlays 
     for 2004. This represents an increase of $0.6 billion in BA 
     (7

[[Page 9316]]

     percent), and $0.4 billion in outlays from the 2003 level. 
     The Senate amendment includes the following specific 
     assumptions.
       For discretionary programs, the Senate amendment assumes a 
     total of $3.7 billion in BA and $3.6 billion in outlays for 
     2004. This represents an increase of $0.4 billion (13 
     percent) in BA above the 2003 level.
       The Senate amendment assumes $881 million for non-defense 
     environmental management activities. This is an increase of 
     $213 million, or 32 percent, above the 2003 enacted level. 
     (An additional $6.3 billion for environmental management 
     activities is included in Function 050.)
       The Senate amendment assumes $802 million for Energy Supply 
     activities. This is $106 million (15 percent) above the 2003 
     enacted level. This increase includes funding for the 
     President's Freedom Fuel Initiative, which would help reverse 
     America's growing dependence on foreign oil, by providing 
     funds for research for a commercially viable hydrogen-powered 
     fuel cell technology.
       The Senate amendment assumes no mandatory increases or 
     decreases in this function.
     Conference Agreement
       The Conference Agreement for Function 270 calls for $2.6 
     billion in BA and $0.9 billion in outlays in fiscal year 
     2004. The functional totals are $13.8 billion in BA and $5.6 
     billion in outlays over 5 years, and $30.3 billion in BA and 
     $15.7 billion in outlays over 10 years. The Conference 
     Agreement fully supports the President's budget request for 
     this function.

            Natural Resources and Environment: Function 300

     Function Summary
       Programs within Function 300 consist of water resources, 
     conservation, land management, pollution control and 
     abatement, and recreational resources. Major departments and 
     agencies in this function are the Department of Interior, 
     including the National Park Service [NPS], the Bureau of Land 
     Management [BLM], the Bureau of Reclamation, and the Fish and 
     Wildlife Service [FWS]; conservation-oriented and land 
     management agencies within the Department of Agriculture 
     [USDA] including the Forest Service; the National Oceanic and 
     Atmospheric Administration [NOAA] in the Department of 
     Commerce; the Army Corps of Engineers; and the Environmental 
     Protection Agency [EPA].
     House Resolution
       The House resolution calls for $29.2 billion in BA and 
     $29.9 billion in outlays in fiscal year 2004. The function 
     totals are $154.1 billion in BA and $154.4 billion in outlays 
     over 5 years, and $331.0 billion in BA and $327.9 billion in 
     outlays over 10 years.
       The resolution assumes legislation allowing the Bureau of 
     Land Management to use updated management plans to identify 
     publicly owned areas suitable for sale; the permanent 
     extension of the Recreation Fee Program, which allows parks, 
     refuges, forests, and other publicly-owned units to spend 
     fees within the units from which they are collected; 
     legislation to prevent the United Mine Workers of America 
     Combined Benefit Fund from financial crisis by transferring 
     to it any additional interest from the Abandoned Mine Land 
     Reclamation Fund; the Water Resources Development Act of 
     2002, which authorizes the Corps of Engineers to conduct 
     water resource studies and undertake specified projects and 
     programs for flood control, inland navigation, shoreline 
     protection, and environmental restoration; and the Central 
     Utah Project [CUP] Completion Act, which clarifies and 
     streamlines completion of project goals. The CUP provides 
     water for agricultural, industrial, and municipal uses.
     Senate Amendment
       The Senate amendment assumes spending in this function of 
     $35.3 billion in BA and $31.4 billion in outlays for 2004. 
     This represents an increase of $4.4 billion in BA (14 
     percent), and $2.4 billion in outlays from the 2003 level. 
     The Senate amendment includes the following specific 
     assumptions.
       For discretionary programs, the Senate amendment assumes a 
     total of $32.8 billion in BA and $29.5 billion in outlays for 
     2004. This represents an increase of $3.6 billion (12 
     percent) in BA above the 2003 level.
       The Senate amendment assumes $3.1 billion for the National 
     Fire Plan, which is $880 million above the President's 
     request. This reflects an amendment to the resolution adopted 
     by the Senate that added $500 million to the National Fire 
     Plan. The Senate believes it is critical to fund the National 
     Fire Plan at a realistic level that will allow the Forest 
     Service and Department of Interior to pay for wildfire 
     suppression, while maintaining its ongoing operations.
       The Senate amendment assumes $900 million for the Land and 
     Water Conservation Fund [LWCF], the same as the President's 
     budget.
       The Senate amendment assumes $11.3 billion for the 
     Environmental Protection Agency. This is $3 billion (36 
     percent) above the 2003 enacted level. The Senate did not 
     accept the President's cut to the State and Tribal Assistance 
     Grants, instead funding them at $6.8 billion, which is $3 
     billion more than the 2003 enacted level. (This increase to 
     the State and Tribal Assistance Grants is due to an amendment 
     adopted by the Senate, which added $3 billion in 2004 to the 
     Clean Water and Safe Drinking Water State Revolving Fund.) 
     Within the EPA, there is $1.4 billion for Superfund, which is 
     $125 million or 9.9 percent more than the 2003 enacted level. 
     The Senate amendment also includes $2.2 billion for 
     environmental programs and management. This is $122 million, 
     or 5.8 percent, more than the 2003 enacted level.
       The Senate amendment assumes $4.5 billion for the Corps of 
     Engineers, the same as the 2003 level, and $546 million more 
     than the President's request. It does not include the 
     President's proposal to fund operations and maintenance and 
     construction from the Inland Waterways Trust Fund or from the 
     Harbor Maintenance Trust Fund.
       The Senate amendment assumes the President's proposal to 
     make the Recreation Fee Demonstration Program permanent. This 
     program allows the Forest Service and Department of Interior 
     to collect entrance fees and use a portion of those fees 
     without further appropriation for maintenance and other 
     projects. Over 10 years, this program would have a net cost 
     of $803 million.
       The Senate amendment reflects the administration's proposal 
     for the Federal Land Transaction Facilitation Act. This 
     proposal would allow the Bureau of Land Management to use 
     updated management plans to identify property suitable for 
     disposal as well as allow a certain portion of receipts to be 
     used by the BLM for restoration projects. It would cap 
     receipt retention at $100 million per year. The proposal 
     costs $86 million over 10 years.
       The Senate amendment assumes $3.4 billion over 10 years for 
     the Conservation Security Program in the Department of 
     Agriculture.
     Conference Agreement
       The Conference Agreement calls for $31.6 billion in BA and 
     $30.8 billion in outlays in fiscal year 2004. The function 
     totals are $164.5 billion in BA and $161.9 billion in outlays 
     over 5 years, and $348.3 billion in BA and $342.4 billion in 
     outlays over 10 years.
       For discretionary programs, the Conference Agreement 
     provides for a total of $29.3 billion in BA and $29.0 billion 
     in outlays in fiscal year 2004.
       The Conference Agreement recognizes the importance of the 
     National Fire Plan and calls for $2.6 billion for the plan, 
     $380 million above the President's request. The Congress 
     believes it is critical to fund the National Fire Plan at a 
     level that will allow the Forest Service and the Department 
     of the Interior to pay for wildfire suppression, while 
     maintaining their normal operations. In particular, Congress 
     places a priority on wildfire suppression; rehabilitation and 
     restoration of areas burned during recent fire seasons; and 
     the reduction of hazardous fuels, which will help prevent 
     wildfires in the future.
       The Conference Agreement accommodates $8.3 billion for the 
     Environmental Protection Agency, $250 million greater than 
     the 2003 enacted level. The Congress restored funding for the 
     State and Tribal Assistance Grants to $3.8 billion, the same 
     as the 2003 enacted level. Within the EPA, there is $1.4 
     billion for Superfund, which is $125 million (9.9 percent) 
     more than the 2003 enacted level; and $2.2 billion for 
     environmental programs and management, which is $122 million 
     (5.8 percent) more than the 2003 enacted level.
       The Conference Agreement also accommodates the Senate's 
     $4.5 billion for the Corps of Engineers.
       For mandatory programs, the Agreement assumes the 
     President's proposal allowing the Forest Service and 
     Department of Interior to collect entrance fees and use a 
     portion of those fees for maintenance and other projects 
     without further appropriation. It also assumes an amendment 
     allowing the Bureau of Land Management [BLM] to use updated 
     management plans to identify property suitable for disposal, 
     as well as permit a certain portion of receipts to be used by 
     the BLM for restoration projects. The Agreement also assumes 
     $3.4 billion over 10 years for the Conservation Security 
     Program in the Department of Agriculture; legislation passed 
     in the House last year to authorize the Army Corps of 
     Engineers to conduct water resource studies and undertake 
     specific projects and programs for flood control, inland 
     navigation, shoreline protection, and environmental 
     restoration; and enactment of the Central Utah Project 
     Completion Act, which passed in the House last year.

                       Agriculture: Function 350

     Function Summary
       The Agriculture function includes funds for direct 
     assistance and loans to food and fiber producers, export 
     assistance, market information, inspection services, and 
     agricultural research. Farm policy is driven by the Farm 
     Security and Rural Investment Act of 2002, which provides 
     producers with continued planting flexibility while 
     protecting them against unique uncertainties such as poor 
     weather conditions and unfavorable market conditions.
     House Resolution
       The House resolution calls for $24.0 billion in BA and 
     $23.4 billion in outlays in fiscal year 2004. The function 
     totals are $125.1 billion in BA and $121.5 billion in outlays 
     over 5 years, and $240.8 billion in BA and $237.1 billion in 
     outlays over 10 years.

[[Page 9317]]

       Included in these funding levels is the continuation of the 
     2002 farm bill.
     Senate Amendment
       The Senate amendment assumes spending in this function 
     would total $24.5 billion in BA and $23.5 billion in outlays 
     for 2004. This represents an increase of $39 million in BA 
     over the 2003 level.
       For discretionary programs, the Senate amendment assumes a 
     total of $5.2 billion in BA and $5.6 billion in outlays for 
     2004. This represents a decrease of $0.5 billion or 8.5 
     percent in BA from the 2003 level.
       The Senate amendment assumes the President's request that 
     several mandatory agriculture programs will provide 
     discretionary savings of $321 million in 2004 and $1.1 
     billion over 10 years.
       The Senate amendment also assumes a decrease of $1.4 
     billion over 10 years in the mandatory programs administered 
     by the Department of Agriculture.
     Conference Agreement
       The conference agreement calls for $24.6 billion in BA and 
     $23.7 billion in outlays in fiscal year 2004. The function 
     totals are $130.2 billion in BA and $124.5 billion in outlays 
     over 5 years, and $255.7 billion in BA and $245.8 billion in 
     outlays over 10 years. Included in these funding levels is 
     the continuation of the 2002 Farm Bill. The Conference 
     Agreement fully supports the President's overall request for 
     this function.

               Commerce and Housing Credit: Function 370

     Function Summary
       Function 370 includes four components: mortgage credit 
     (usually negative BA because receipts tend to exceed the 
     losses from defaulted mortgages); the Postal Service (mostly 
     off budget); deposit insurance (negligible spending due to 
     deposit insurance premiums); and other advancement of 
     commerce (the majority of the discretionary and mandatory 
     spending in this function).
       The mortgage credit component of this function includes 
     housing assistance through the Federal Housing Administration 
     [FHA], the Government National Mortgage Association [Ginnie 
     Mae], and rural housing programs of the Department of 
     Agriculture. The function also includes net Postal Service 
     spending and spending for deposit insurance for banks, 
     thrifts, and credit unions. Finally, most, but not all, of 
     the Commerce Department is provided for in this function 
     including the International Trade Administration, Bureau of 
     Economic Analysis, Patent and Trademark Office, National 
     Institute of Standards and Technology, National 
     Telecommunications and Information Administration, and the 
     Bureau of the Census; as well as independent agencies such as 
     the Securities and Exchange Commission [SEC], the Commodity 
     Futures Trading Commission, the Federal Trade Commission, the 
     Federal Communications Commission [FCC], and the majority of 
     the Small Business Administration [SBA].
       More than two-thirds of the spending in Function 370 is out 
     of the FCC's Universal Service Fund. Spending from this fund 
     exactly offsets the receipts (classified as taxes on the 
     revenue side of the budget) that certain telecommunications 
     operators charge their customers to promote service to low- 
     income users and high-cost areas, as well as new services.
     House Resolution
       The House resolution calls for $7.4 billion in BA and $3.6 
     billion in outlays in fiscal year 2004, a decline of 16 
     percent in BA compared with fiscal year 2003. The function 
     totals are $42.0 billion in BA and $16.5 billion in outlays 
     over 5 years, and $86.8 billion in BA and $26.6 in outlays 
     over 10 years.
       For the Department of Homeland Security, $21 million is 
     provided for Departmentwide technology investments, as is $9 
     million for the Critical Infrastructure Assurance Office 
     under Information Analysis and Infrastructure Protection.
       The resolution assumes other funding for homeland security 
     purposes of the Commerce Department, including: $83.9 million 
     for the Bureau of Industry and Security to inhibit the global 
     spread of dual-use technologies that could be used in 
     biological, chemical, and nuclear weapons of mass destruction 
     (formerly the Bureau of Export Administration); $10.3 million 
     for the National Institute of Standards and Technology; and 
     $3.7 million for the International Trade Administration.
     Senate Amendment
       For discretionary programs, the Senate amendment assumes 
     discretionary spending in this function would total -$0.5 
     billion in BA and $0.1 billion in outlays for 2004. This 
     represents a decrease of $0.6 billion in BA, but an increase 
     of $38 million in outlays from the 2003 level. The Senate 
     amendment includes the following specific assumptions.
       The Senate amendment for 2004 reflects all the President's 
     requested increases over 2003 (shown as percentage increase) 
     for export control and enforcement (47 percent), the 
     activities of the Census Bureau (20 percent), economic and 
     statistical analysis (18-percent), and homeland security 
     investments in the Department of Commerce (43 percent). The 
     Senate amendment also assumes the President's request of $842 
     million (an 18-percent increase) for the Securities and 
     Exchange Commission to implement the corporate responsibility 
     activities under the Sarbanes-Oxley bill.
       The President's budget proposes to eliminate the Advanced 
     Technology Program, which would save $0.7 billion over the 
     next 10 years and is reflected in the Senate amendment. The 
     President's proposal to discontinue the Manufacturing 
     Extension Program, however, is not assumed by the Senate 
     amendment.
       For mandatory programs, the Senate amendment assumes the 
     President's proposal to merge the deposit insurance funds for 
     banks and thrifts--the Bank Insurance Fund and the Savings 
     Association Insurance Fund. According to CBO estimates, this 
     proposal would be nearly budget neutral over the next 10 
     years.
       The Senate amendment also assumes legislation (S. 380, as 
     cleared for the President on 8 April 2003) that would reduce 
     the Postal Service payment to the Civil Service Retirement 
     [CSRS] trust fund for 2003-05, but then would reinstate and 
     redirect the payment to an escrow fund until Congress can 
     enact subsequent law regarding how the Postal Service should 
     address its retiree health liabilities and other concerns. 
     This proposal would increase the unified deficit by $7.3 
     billion over the 2003-13 period. The budgetary effect on the 
     Postal Service is reflected in this function, and the effect 
     on the receipts of the CSRS fund are shown in Function 950 (a 
     small interest effect appears in Function 900).
     Conference Agreement
       The Conference Agreement calls for on-budget amounts as 
     follows: $7.5 billion in BA and $3.6 billion in outlays in 
     fiscal year 2004; $41.9 billion in BA and $15.6 billion in 
     outlays over 5 years; and $84.3 billion in BA and $21.5 
     billion in outlays over 10 years. For mandatory programs, the 
     agreement assumes a merger of the Bank Insurance Fund and the 
     Savings Association Insurance Fund; legislation to pay 
     interest on bank deposits with the Federal Reserve; and 
     regulatory relief for certain financial services companies. 
     For discretionary programs, the Agreement is consistent with 
     the Senate amendment.

                      Transportation: Function 400

     Function Summary
       This function funds all major Federal transportation modes 
     and programs including the Transportation Security 
     Administration; the Federal Highway Administration; the 
     Federal Transit Administration; the National Rail Passenger 
     Corporation [Amtrak]; highway, motor carrier and rail safety 
     programs; the Federal Aviation Administration; the 
     aeronautical activities of the National Aeronautics and Space 
     Administration [NASA]; the Coast Guard; the Maritime 
     Administration; and other transportation support activities.
     House Resolution
       The House resolution calls for $65.4 billion in BA and 
     $69.2 billion in outlays in fiscal year 2004, an increase of 
     2.1 percent in BA compared with fiscal year 2003. Function 
     totals are $334.2 billion in BA and $338.2 billion in outlays 
     over 5 years, and $698.9 billion in BA and $700.8 billion in 
     outlays over 10 years.
       The resolution assumes an increase in Federal-aid Highway 
     contract authority and obligation limitation from $32.1 
     billion in 2004 to $39.0 billion in 2013; a freeze of Transit 
     Category contract authority and obligation limitation at $5.7 
     billion; transfer of the receipts from the 2.5-cent gasohol 
     deficit reduction tax from the General Fund to the Highway 
     Trust Fund; and establishment of a contingency procedure to 
     increase spending above the level in the budget resolution on 
     highways, highway safety, and transit should additional 
     resources be made available to the Highway Trust Fund.
     Senate Amendment
       For Function 400, the Senate amendment includes $75.8 
     billion in BA and $71.6 billion in outlays for 2004. This 
     represents an increase of $11.7 billion in BA, or 18 percent.
       The Senate amendment includes major increases in the 
     Federal-aid Highways program, reflecting an amendment adopted 
     by the Senate that set contract authority at levels that 
     cannot be sustained with trust fund receipts under current 
     law. For 2004, the Senate amendment assumes an obligation 
     limitation of $35.6 billion, an 11-percent increase from the 
     Committee-reported resolution of $32.1 billion and contract 
     authority of $39.3 billion, a 29-percent increase from the 
     Committee-reported resolution of $30.5 billion.
       For 2004-09, the Senate amendment includes $233.3 billion 
     in obligation limitation, a 20-percent increase from the 
     Committee-reported resolution of $194.4 billion and the 
     amendment includes contract authority of $255.7 billion, a 
     24-percent increase in the Committee-reported resolution of 
     $206.5 billion.
       For Essential Air Service, the Senate amendment assumes 
     $103 million for 2004, which is $53 million above the 
     President's request.
       For Port Security, the Senate amendment included $850 
     million in 2004, and $850 million in 2005 due to an amendment 
     adopted on the floor.
       For the Coast Guard, the Senate amendment assumes the 
     President's request of $6.1 billion, the same as the 2003 
     enacted level.

[[Page 9318]]

     This request would recapitalize much of the Coast Guard's 
     budget which was diverted for more urgent needs, following 
     September 11, 2001.
       The Senate amendment assumes full funding for the 
     President's request for NASA programs within this function at 
     $993 million, a 20-percent increase from the enacted 2003 
     level.
       The Senate amendment includes $1.8 billion for Amtrak, a 
     100-percent increase over the committee-passed resolution of 
     $900 million due to an amendment adopted on the Senate floor 
     that added $912 million.
     Conference Agreement
       The Conference Agreement calls for $69.5 billion in BA and 
     $69.9 billion in outlays in fiscal year 2004; $364.7 billion 
     in BA and $354.9 billion in outlays over 5 years; and $759.9 
     billion in BA and $745.8 billion in outlays over 10 years.
       The Conference Agreement provides contract authority for 
     Federal-aid highways of $35.482 billion in 2004, and $231.078 
     billion for 2004-09, representing a compromise midway between 
     the House- and Senate-passed level.
       The Conference Agreement also provides transit budget 
     authority of $5.841 billion in 2004 and $49.1 billion for 
     2004-09, which is also a compromise midway between the House- 
     and Senate-passed.
       The Conference Agreement establishes a contingency 
     procedure to increase spending above the level in the budget 
     resolution on highways, highway safety, and transit should 
     new offsetting resources be made available to the Highway 
     Trust Fund. The conferees intend that the increase provided 
     for in this Conference Agreement above the baseline will be 
     constrained by the resources available to the Highway Trust 
     Fund.

            Community and Regional Development: Function 450

     Function Summary
       Function 450 includes programs that provide Federal funding 
     for economic and community development in both urban and 
     rural areas, including: Community Development Block Grants 
     [CDBGs]; the non-power activities of the Tennessee Valley 
     Authority; the non-roads activities of the Appalachian 
     Regional Commission; the Economic Development Administration 
     [EDA]; and partial funding for the Bureau of Indian Affairs 
     [BIA]. Funding for disaster relief and insurance--including 
     the Federal Emergency Management Agency [FEMA], now part of 
     the new Department of Homeland Security [DHS]--also appear 
     here.
     House Resolution
       The House resolution calls for $14.1 billion in BA and 
     $15.9 billion in outlays in fiscal year 2004, an increase of 
     15.4 percent in BA compared with fiscal year 2003. The 
     function totals are $73.5 billion in BA and $76.5 billion in 
     outlays over 5 years, and $155.8 billion in BA and $154.1 
     billion in outlays over 10 years.
       Resources allow for significant expansions of the First 
     Responder Grant Program, with $3.5 billion in funding for 
     grants for ``first responders'' such as local firefighters, 
     and search-and-rescue or police forces. This is a $1.7 
     billion increase over the 2003 enacted level.
     Senate Amendment
       The Senate amendment assumes funding for this function will 
     total $14.3 billion in BA and $16.7 billion in outlays. This 
     represents a decrease of 9 percent in BA, or $1.4 billion, 
     from 2003. The Senate amendment assumes funding of $151.9 
     billion in BA and $153.5 billion in outlays over 2004-13.
       For discretionary programs, the Senate amendment assumes 
     $13.8 billion in BA and $16.8 billion in outlays for 2004. 
     This represents a decrease of $1.4 billion in BA from the 
     2003 level. The Senate amendment includes the following 
     specific assumptions.
       As part of the newly formed Department of Homeland 
     Security, all the activities of what was once known as the 
     Federal Emergency Management Agency will be managed by the 
     Emergency Preparedness and Response Directorate within DHS. 
     For the Office of Domestic Preparedness, the Committee-
     reported resolution assumed the President's request for $3.5 
     billion in 2004 to ensure that first responders are properly 
     trained and equipped. Then the Senate adopted an amendment to 
     the resolution to add an additional $3.5 billion in 2003 for 
     first responders. The Senate amendment also assumes $3.2 
     billion for Disaster Relief activities. This level is 
     consistent with the average cost of (non-terrorist) disaster 
     events over the past 5 years. This includes $2.0 billion in 
     new money, as well as money left over from prior years. This 
     $2.0 billion in new money represents an increase of $1.2 
     billion over the 2003 level.
       The Senate amendment also incorporates the President's 
     proposal for a new $300 million pre-disaster mitigation 
     program. The Senate amendment also continues to support the 
     protection of the public against flood damage by supporting 
     the Flood Map Modernization Fund and including $200 million 
     to update the inaccurate maps.
       For Community Development Block Grants, the Senate 
     amendment matches the President's request by assuming $4.7 
     billion in 2004. This is $200 million below the enacted 2003 
     level. The President proposes to review this program and 
     develop proposals to better incorporate poorer communities 
     with poverty rates above the national average.
       For the Bureau of Indian Affairs, the Senate amendment 
     assumes $1.1 billion which is an increase of $21 million from 
     2003. The resolution also supports Indian school construction 
     and provides $346 million to improve academic performance at 
     BIA schools and to eliminate the school maintenance and 
     repair backlog.
       Among mandatory activities in this function, the Senate 
     amendment reflects an amendment adopted by the Senate adding 
     $260 million in BA in 2004 (and in each year thereafter 
     through 2013) for a new Homestead Venture Capital Fund.
     Conference Agreement
       The Conference Agreement calls for spending of $14.1 
     billion in BA and $15.8 billion in outlays in 2004, and $71.8 
     billion in BA and $75.4 billion in outlays over the period 
     2004-08. Over the period 2004-13, the agreement calls for 
     spending of $149.3 billion in BA and $149.2 billion in 
     outlays. The conference agreement accommodates the expansion 
     of grants for first responders, and other activities in the 
     new Department of Homeland Security.
       The conferees strongly support the continued funding of the 
     Round II Urban and Rural Empowerment Zone and Enterprise 
     Community [EZ/EC] initiatives at least at the level pledged 
     by the Round II designation of 1999. The conferees recognize 
     that the current EZ/EC initiative is yielding measurable 
     results; improving the economy and quality of life in 
     distressed areas; enabling self-sufficiency of disadvantaged 
     residents; and leveraging private and nonprofit resources. In 
     competing for the designations, these communities were 
     selected for their thoughtful use of Federal funds over a 
     full 10 year cycle, not on how quickly they could withdraw 
     funds from the Treasury. The Round II EZ/EC designees have 
     received only a small portion of the Federal grant funds they 
     were promised to implement their strategic plans for 
     revitalization. This Conference Agreement assumes the program 
     will receive sufficient resources to continue progress on 
     this important work.

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

     Function Summary
       Education spending consumes two-thirds of the Function 500 
     total, including elementary and secondary education services, 
     higher education aid, and research and general education 
     aids--the last category incorporating funding for arts, 
     humanities, museums, libraries, and public broadcasting. Job 
     training and other Labor Department activities are in this 
     function, as are social services--including the Social 
     Services Block Grant, vocational rehabilitation, and national 
     service.
     House Resolution
       The House resolution calls for $84.7 billion in BA and 
     $85.7 billion in outlays in fiscal year 2004. The function 
     totals are $435.2 billion in BA and $428.7 billion in outlays 
     over 5 years, and $914.5 billion in BA and 898.5 billion in 
     outlays over 10 years.
       The resolution levels support priority funding for a number 
     of discretionary spending programs. It assumes an increase of 
     $50 million, to $1.238 billion, for the Impact Aid program. 
     It accommodates an increase of at least $666 million, to 
     $12.35 billion, for Title I funding of low-income school 
     districts. The resolution also provides for at least $12.7 
     billion toward the Pell Grant program for low- income 
     undergraduate students, a $1.34-billion increase from 2003. 
     In the area of special education, the resolution assumes an 
     increase of at least $660 million for Individuals with 
     Disabilities Education Act [IDEA] Part B Grants to States.
       In mandatory spending, the resolution includes 
     reconciliation instructions to the Committee on Education and 
     the Workforce to create re-employment accounts as a temporary 
     new benefit. As recommended in the President's economic 
     growth proposal, $3.6 billion in mandatory BA is provided in 
     2003 for the establishment of these accounts.
     Senate Amendment
       For discretionary programs, the Senate amendment assumes 
     $86.3 billion in BA and $75.8 billion in outlays for 2004. 
     This represents an increase of $13.4 billion (18.5 percent) 
     in BA over the 2003 level. The Senate amendment includes the 
     following specific assumptions.
       For Title I Grants to Local Education Agencies, the 
     Committee-reported resolution assumed a $1 billion increase, 
     bringing funding to $12.7 billion for academic year 2004-05. 
     This represents an 8.6-percent increase over the previous 
     academic year. An amendment adopted by the Senate added an 
     additional $2 billion for No Child Left Behind programs. 
     Another amendment adopted by the Senate added $2 billion for 
     block grants to States for No Child Left Behind, special 
     education, and vocational education programs.
       For the Individuals with Disabilities Education Act [IDEA], 
     the Committee- reported resolution assumed a $1-billion 
     increase for Part B Grants to States, and a $205-million cap 
     adjustment in 2004. In addition to maintaining the previous 
     year's funding level, a $1-billion increase was assumed in 
     each year thereafter through 2009, bringing IDEA funding to 
     $6.2 billion above the baseline level in 2009. During its 
     consideration of the resolution, the Senate adopted an 
     amendment that

[[Page 9319]]

     increased IDEA levels by $970 million in 2004 and $2.3 
     billion in 2005.
       The Committee-reported resolution assumed holding Impact 
     Aid at the 2003 level. The Senate adopted an amendment to 
     increase Impact Aid by $112 million, bringing its funding 
     level to $1.3 billion in 2004.
       For Pell Grants, the Committee-reported resolution assumed 
     a $1.4 billion increase. The Senate adopted an amendment to 
     increase Pell funding by an additional $1.8 billion, which 
     would support a $4,500 maximum award. This brings total 
     funding for Pell Grants to $14.5 billion in 2004.
       The Senate amendment fully funds the President's request of 
     $6.8 billion for Head Start, which would remain in HHS.
       The Senate amendment reflects the President's proposals for 
     reauthorization of the Workforce Investment Act [WIA] as well 
     as an amendment adopted by the Senate to increase WIA funding 
     by $678 million, bringing total funding to $5.6 billion.
       The Senate amendment includes the administration's request 
     for the Labor Department's Office of Labor-Management 
     Standards, which reflects an additional $6 million to improve 
     the transparency of union finances. The Senate amendment also 
     reflects an additional $6-million increase to make whole the 
     chronic under-funding of the Office in prior years.
       The Senate amendment also assumes enactment of the CARE 
     Act, as reported by the Senate Finance Committee, and 
     therefore reflects an additional $275 million for the Social 
     Services Block Grant for 2003 and an additional $1.1 billion 
     for 2004.
       The Senate amendment assumes adoption of the President's 
     student loan forgiveness proposal at a cost of $45 million in 
     2004.
       Among mandatory programs in this function, the Senate 
     amendment reflects an amendment adopted by the Senate to 
     create a New Homestead Venture Capital Fund, costing $1.2 
     billion over 10 years.
     Conference Agreement
       The resolution calls for $90.0 billion in BA and $84.2 
     billion in outlays in fiscal year 2004. The function totals 
     are $468.4 billion in BA and $449.9 billion in outlays over 5 
     years, and $986.3 billion in BA and $955.6 billion in outlays 
     over 10 years.
       These levels accommodate a $3-billion increase from the 
     previous year for the Department of Education, which would 
     provide for a $1.3-billion increase for the Pell Grant 
     program; a $50-million increase for the Impact Aid Program; 
     and a $1-billion increase for Title I of the No Child Left 
     Behind Act. Cumulatively, the Conference Agreement 
     accommodates funding for No Child Left Behind programs of 
     $1.5 billion above the President's proposed level. For the 
     Part B Grants to States program of the Individuals with 
     Disabilities Education Act, a $2.2-billion increase is 
     provided for 2004, followed by an additional $2.5 billion 
     increase in 2005. This increase of $4.7 billion over 2 years 
     would raise the program's level of funding from $8.9 billion 
     to $13.6 billion.
       In mandatory spending, the resolution assumes the 
     President's proposal to increase from $5,000 to $17,500 the 
     maximum level of student loan forgiveness available to math, 
     science, and special education teachers serving in low-income 
     communities.

                          Health: Function 550

     Function Summary
       Medicaid represents about 71 percent of the spending in 
     this function. The function also includes the State 
     Children's Health Insurance Program [SCHIP]; health research 
     and training, including NIH and substance abuse prevention 
     and treatment; and consumer and occupational health and 
     safety, including the Occupational Safety and Health 
     Administration.
       The Department of Health and Human Services [HHS] plays a 
     lead role in addressing bioterrorism. Four key HHS components 
     participate in homeland bioterrorism security: the Centers 
     for Disease Control and Prevention [CDC], the Food and Drug 
     Administration [FDA], the Health Resources and Services 
     Administration [HRSA], and the National Institutes of Health 
     [NIH]. In fiscal year 2004, total spending for HHS's 
     bioterrorism efforts would be $3.6 billion.
     House Resolution
       The House resolution calls for $235.1 billion in BA and 
     $235.5 billion in outlays in fiscal year 2004, an increase of 
     5.9 percent in BA compared with fiscal year 2003. The 
     function totals are $1,337.2 billion in BA and $1,334.8 
     billion in outlays over 5 years, and $3,196.9 billion in BA 
     and $3,188.0 billion in outlays over 10 years.
       For the Department of Homeland Security [DHS], the 
     resolution reserves $5.6 billion over 10 years for BioShield, 
     a program to accelerate research, development, and purchase 
     of bioterrorism threat countermeasures. Also within Function 
     550, the resolution assumes $400 million to maintain and 
     strengthen the Strategic National Stockpile.
       The resolution provides for Medicaid reform to give States 
     greater flexibility and to provide health insurance coverage 
     for new populations. The budget establishes a reserve fund of 
     $3.25 billion in fiscal year 2004 and $8.9 billion over 5 
     years for Medicaid reform. The proposal is budget-neutral 
     over 10 years.
       Other Medicaid policies include assumptions that expiring 
     fiscal year 2000 State Children's Health Insurance Program 
     funds will be extended for 1 year, that Transitional Medicaid 
     Assistance and the QI-1 programs are extended for 5 years, 
     and that the Vaccines for Children program will be modified 
     to allow health departments to give vaccines.
       The resolution also assumes enactment of abstinence 
     education legislation and assumes States will have the option 
     to expand Medicaid coverage for children with special needs, 
     allowing families of disabled children the opportunity to 
     purchase coverage under the Medicaid program for such 
     children.
       The budget assumes that by fiscal year 2004, NIH funding 
     will have more than doubled over the 1998 level, to $27.9 
     billion.
     Senate Amendment
       For discretionary programs, the Senate amendment assumes 
     $52.7 billion in BA and $50.8 billion in outlays for 2004. 
     This represents an increase of $3.2 billion in BA over the 
     2003 level.
       The omnibus appropriations bill of 2003 completed the 
     planned 5-year doubling of the National Institutes of Health 
     [NIH] budget from $13.7 billion in 1998 to $27.1 billion in 
     2003. Nonetheless, the Senate amendment includes an 
     additional 10-percent increase for 2004, bringing total NIH 
     funding to $29.7 billion in BA in 2004.
       For mandatory programs, the Senate amendment includes 
     several reserve funds. The Senate amendment assumes a reserve 
     fund for the Finance Committee to reform Medicaid and the 
     State Children's Health Insurance Program by providing 
     flexibility to the States for innovation and expansion of 
     coverage. The fund is based on the administration's proposal 
     for a new Medicaid and SCHIP program option, under which 
     States may take their Medicaid and SCHIP funding in a single 
     Federal payment.
       The Senate amendment includes another reserve fund for the 
     Finance Committee to report legislation to extend the 
     availability of SCHIP funds that will expire and restore 
     availability of funds from 1998 and 1999 that have expired. 
     According to CBO estimates, approximately $1.26 billion in 
     SCHIP funds reverted to the Treasury on 1 October 2002, and 
     $1.35 billion will return to the Treasury at the end of 2003. 
     Beyond these amounts, the reserve fund would allow such 
     legislation to provide an additional $1.825 billion in BA and 
     $975 million in outlays over 10 years to the States to ease 
     some of the financial strain they face as well as to cover 
     more children under their SCHIP programs.
       The Senate amendment includes an $88 billion reserve fund 
     for the Finance Committee to report legislation that would 
     assist the 41 million uninsured Americans in gaining access 
     to quality, affordable health insurance.
       The Senate amendment includes a reserve fund for the HELP 
     Committee for the creation of Project Bioshield, a 
     comprehensive effort to develop effective countermeasures 
     against biological and other dangerous agents. Over the next 
     10 years, almost $6 billion will be available to purchase new 
     countermeasures for smallpox, anthrax, and botulism toxin as 
     well as to produce and purchase countermeasures for other 
     dangerous agents, such as Ebola and plague, once safe and 
     effective treatments are developed.
       The Senate amendment includes savings of $3.346 billion 
     over 10 years for medical liability reform.
     Conference Agreement
       The Conference Agreement calls for $240.6 billion in BA and 
     $238.8 billion in outlays in fiscal year 2004. The function 
     totals are $1,401.2 billion in BA and $1,396.6 billion in 
     outlays over 5 years, and $3,375.4 billion in BA and $3,363.5 
     billion in outlays over 10 years.
       The Agreement reserves $5.6 billion in funding over 10 
     years to allow the Department of Homeland Security to 
     procure, for inclusion in the Strategic National Stockpile, 
     countermeasures necessary to protect the public health from 
     current and emerging threats of chemical, biological, 
     radiological or nuclear agents. For Medicaid reform, the 
     Agreement establishes a reserve fund of $3.3 billion in 
     fiscal year 2004, and $8.9 billion over 5 years. The fund is 
     budget neutral over 10 years. Other reserve funds in the 
     Agreement include $161 million in new BA in 2004 and $50 
     billion over 10 years to increase access to health insurance 
     for the uninsured; and $43 million in new BA in 2004 and $7.5 
     billion over 10 years for the Family Opportunity Act. Other 
     assumptions include a 1-year extension of certain State 
     Children's Health Insurance Program funds--specifically 
     fiscal year 1998 and 1999 funds that have expired, and fiscal 
     year 2000 funds that are expiring. In addition, the 
     Conference Agreement assumes that Transitional Medicaid 
     Assistance and the QI-1 programs are extended for 5 years. It 
     also assumes funding for abstinence education.
       The Agreement assumes savings of $3.7 billion over 10 years 
     resulting from the impact of medical liability reform on 
     Medicaid, FEHBP, and DOD. The figure reflects an updated cost 
     estimate from the Congressional Budget Office for the 108th 
     Congress.

                         Medicare: Function 570

     Function Summary
       This budget function reflects the Medicare Part A Hospital 
     Insurance [HI] Program,

[[Page 9320]]

     Part B Supplementary Medical Insurance [SMI] Program, and 
     premiums paid by qualified aged and disabled beneficiaries. 
     It also includes the ``Medicare+Choice'' Program, which 
     covers Part A and Part B benefits and allows beneficiaries to 
     choose certain private health insurance plans. 
     Medicare+Choice plans may include health maintenance 
     organizations, preferred provider organizations, provider-
     sponsored organizations, and private fee-for-service plans. 
     In addition to covering all Medicare-covered services, such 
     plans may add benefits or reduce cost-sharing required by the 
     traditional Medicare program.
     House Resolution
       The House resolution calls for $266.5 billion in BA and 
     $266.9 billion in outlays in fiscal year 2004, an increase of 
     7.2 percent in BA compared with fiscal year 2003. The 
     function totals are $1.6 trillion in BA and $1.6 trillion in 
     outlays over 5 years and $3.9 trillion in BA and $3.9 
     trillion in outlays over 10 years. Over the 2004-13 period, 
     Medicare spending grows by 7.8 percent.
       The House budget resolution includes a reserve fund of $400 
     billion over 10 years for Medicare modernization and a 
     prescription drug benefit. The $400 billion amount is equal 
     to the amount the President proposed in his fiscal year 2004 
     budget. This amount is in addition to the $54 billion 
     increase in Medicare spending in the Fiscal Year 2003 Omnibus 
     Appropriations Bill.
     Senate Amendment
       The Senate amendment assumes the President's proposal to 
     provide additional Medicare funds to improve access to 
     prescription drugs for all beneficiaries and to strengthen 
     and modernize the program. This funding is included in a 
     reserve fund, which contains up to $400 billion for the 2004-
     13 period.
       The Senate amendment also assumes savings of $7.9 billion 
     dollars over 10 years in Medicare from the passage of medical 
     liability reform. The Congressional Budget Office has 
     determined that limits on medical malpractice litigation 
     would lower the cost of malpractice insurance for physicians, 
     hospitals, and other health care providers and organizations. 
     That reduction in insurance costs would, in turn, lead to 
     lower charges for health care services and procedures, and 
     ultimately, to a decrease in rates for health insurance 
     premiums.
     Conference Agreement
       The Conference Agreement calls for $266.0 billion in BA and 
     $266.3 billion in outlays in fiscal year 2004, $1,583.3 
     billion in BA and $1,583.4 billion in outlays over 5 years, 
     and $3,867.7 billion in BA and $3,867.6 billion in outlays 
     over 10 years.
       The Conference Agreement includes separate Medicare reserve 
     funds for the House and Senate, each of which provides $7 
     billion in fiscal year 2004 and $400 billion over 10 years. 
     The $400-billion level is equal to the amount the President 
     proposed in his fiscal year 2004 budget.
       The Conference Agreement also assumes savings of $11.2 
     billion over 10 years in Medicare from the passage of medical 
     liability reform legislation. This amount reflects the 
     updated cost estimate from the Congressional Budget Office 
     for the 108th Congress.

                     Income Security: Function 600

     Function Summary
       The Income Security function includes most of the Federal 
     Government's income support programs. These include: general 
     retirement and disability insurance (excluding Social 
     Security)--mainly through the Pension Benefit Guaranty 
     Corporation [PBGC]--and benefits to railroad retirees. Other 
     components are Federal employee retirement and disability 
     benefits (including military retirees); unemployment 
     compensation; low-income housing assistance, including 
     section 8 housing; food and nutrition assistance, including 
     food stamps and school lunch subsidies; and other income 
     security programs.
       This last category includes: Temporary Assistance to Needy 
     Families [TANF], the Government's principal welfare program; 
     Supplemental Security Income [SSI]; spending for the 
     refundable portion of the Earned Income Credit [EIC]; and the 
     Low Income Home Energy Assistance Program [LIHEAP]. Agencies 
     involved in these programs include the Departments of 
     Agriculture, Health and Human Services, Housing and Urban 
     Development, the Social Security Administration (for SSI), 
     and the Office of Personnel Management (for Federal 
     retirement benefits).
       Over the period 1998-03, BA in the function has had an 
     average annual increase of 6.4 percent.
     House Resolution
       The House resolution calls for $315.9 billion in BA and 
     $321.6 billion in outlays in fiscal year 2004. The function 
     totals are $1,658.0 billion in BA and $1,672.7 billion in 
     outlays over 5 years, and $3,524.3 in BA and $3,543.0 in 
     outlays over 10 years. The reauthorization of the contingency 
     fund in the TANF program causes a one-time spike in BA and 
     outlays during fiscal year 2003 relative to the remaining 
     period of the reauthorization.
       The resolution assumes that the TANF block grant, as well 
     as the related child care entitlement to States and other 
     elements of the 1996 welfare reform law will be reauthorized 
     during fiscal year 2003 as passed by the House on 13 February 
     2003 in the Personal Responsibility, Work, and Family 
     Promotion Act of 2003, which accommodates an additional $2.4 
     billion in mandatory spending above the baseline for these 
     programs over 5 years (2003-08). The resolution allows for an 
     additional $1 billion over 5 years above current law for the 
     mandatory child care entitlement to States.
       The resolution also accommodates the President's proposal 
     to offer States an optional block grant for foster care 
     payments. The resolution assumes $6.9 billion in 2004 for 
     Foster Care and Adoption Assistance, including the 
     Independent Living program, which provides assistance to 
     youths who are aging out of foster care.
       The resolution assumes a decline in Unemployment Insurance 
     benefit payments in fiscal year 2004, relative to 2003, 
     because extended Federal Unemployment Insurance benefits 
     enacted on 8 January 2003 will terminate on 31 May 2003, and 
     because economic assumptions assume a drop in the 
     unemployment rate in 2004.
       The resolution seeks to reduce erroneous overpayments in 
     SSI by accommodating $1.4 billion to conduct Continuing 
     Disability Reviews [CDRs] of SSI Disability recipients to 
     ensure that they are sufficiently disabled to remain eligible 
     for benefits.
       The resolution assumes the outlay portions of refundable 
     tax credits contained in the President's economic growth 
     package of tax incentives, together with the outlay effects 
     of making refundable tax credit policies of the 2001 tax cuts 
     permanent. Outlays are assumed for the Earned Income Tax 
     Credit and the Child Tax Credit under these provisions.
       The resolution also assumes enactment of legislation such 
     as H.R. 4069 (from the 107th Congress), providing for 
     enhancement of Social Security benefits for women.
     Senate Amendment
       For discretionary programs, the Senate amendment assumes 
     $45.7 billion in BA and $51.5 billion in outlays for 2004. 
     This represents an increase of $1.7 billion in BA and $763 
     million in outlays from the 2003 level. The Senate amendment 
     includes the following specific assumptions.
       The Senate amendment includes an additional $9 million for 
     the Employee Benefit Security Administration for pension 
     protection and employer education.
       The Senate amendment incorporates the administration's plan 
     to reform the Federal Employee Compensation Act. These 
     changes will save taxpayers approximately $80 million over 10 
     years.
       The Senate amendment incorporates a debt restructuring and 
     interest refinancing plan for the Black Lung Trust Fund.
       The Senate amendment includes the President's proposal for 
     food and nutrition funding totaling $41.7 billion for 2004. 
     The Senate amendment increases funding for the Women's Infant 
     and Children program by $73 million, or 1.6 percent more than 
     2003.
       The Senate amendment assumes reauthorization the Personal 
     Responsibility and Work Act and therefore assumes an increase 
     above the President's request for the Child Care Development 
     Block Grant. The Senate amendment assumes an increase for 
     2004 of $214 million over the 2003 level, a 10.2-percent 
     increase.
       The Senate amendment includes the President's proposal to 
     eliminate a discretionary limit on administrative 
     expenditures for the Pension Benefit Guarantee Corporation.
       Under the Senate amendment, sufficient budget authority is 
     provided to renew all utilized section 8 housing contracts as 
     contemplated in the 2003 Omnibus Appropriations Bill.
       Among mandatory programs in this function, the Senate 
     amendment assumes the President's request to reauthorize the 
     landmark 1996 welfare reform legislation, which replaced the 
     60 year-old Aid to Families with Dependent Children program 
     with the Temporary Assistance to Needy Families block grant. 
     The Senate amendment also assumes the President's priority to 
     promote healthy marriages, fatherhood and family formation. 
     The Senate amendment is supportive of efforts to capitalize 
     and develop the role of sustainable social services, such as 
     Goodwill, which are critical to the success of moving welfare 
     recipients to work.
       The Senate amendment assumes an increase of $200 million 
     annually above the baseline in the Child Care Entitlement to 
     States.
       The Senate amendment also assumes aspects of the 
     President's proposal to enhance Child Support Enforcement 
     collections. Child Support Enforcement efforts will increase 
     collections and direct more of the support collected to 
     children and families.
       The Senate amendment assumes the President's Foster Care 
     and Adoption Assistance proposal, providing States with 
     increased flexibility to better design their child welfare 
     system that supports services to families in crisis and 
     children at risk.
     Conference Agreement
       The conference agreement calls for spending of $319.5 
     billion in BA and $324.8 billion in outlays in 2004, and 
     $1,706.1 billion in BA and $1,720.0 billion in outlays over 
     the period 2004-08. Over the period 2004-13, the agreement 
     calls for spending of $3,686.9 billion in BA and $3,703.5 
     billion in outlays.
       The conference agreement assumes reauthorization of TANF at 
     the level requested

[[Page 9321]]

     by the President, which is largely consistent with H.R. 4 as 
     passed by the House on 13 February, 2003. It also provides 
     $2.0 billion above the baseline level for the mandatory Child 
     Care Entitlement to States, as assumed in the Senate budget 
     resolution. The Agreement assumes funding for the incentive 
     to States to reform child welfare programs as proposed by the 
     President. It also assumes savings from pre-effectuation 
     reviews of applications for Supplemental Security Income 
     benefits.

                     Social Security: Function 650

     Function Summary
       Function 650 consists of the Social Security Program, or 
     Old Age, Survivors, and Disability Insurance [OASDI]. Under 
     provisions of the Congressional Budget Act and the Budget 
     Enforcement Act, Social Security trust funds are ``off 
     budget.'' Nevertheless, a small portion of spending in 
     Function 650--specifically a portion of the budget for the 
     Office of the Inspector General of the Social Security 
     Administration [SSA], the quinquennial adjustment for World 
     War II veterans, and general fund transfers of taxes paid on 
     Social Security benefits--are on budget.
     House Resolution
       Total on-budget spending in the House resolution is $14.2 
     billion in BA and outlays.
     Senate Amendment
       The Senate amendment assumes the on-budget totals for 
     Social Security will be $14.3 billion in BA and outlays for 
     2004 and $223.8 billion in BA and outlays over 2004-13. The 
     Senate amendment assumes discretionary spending in this 
     function, for the administrative expenses of the Social 
     Security Administration, would total $4.3 billion in BA and 
     $4.2 billion in outlays for 2004. This represents an increase 
     of $0.4 billion, or 11.7 percent, in BA above the 2003 level. 
     The Senate amendment assumes no mandatory increases or 
     decreases in this function.
     Conference Agreement
       The Conference Agreement calls for on-budget amounts as 
     follows: $14.3 billion in BA and outlays in 2004; $83.8 
     billion in BA and outlays for 2004-08; and $223.8 billion in 
     BA and outlays over the 2004-13 period. The House accepts the 
     Senate's method of recording certain pension offsets.

              Veterans Benefits and Services: Function 700

     Function Summary
       The Veterans Benefits and Services function includes 
     funding for the Department of Veterans Affairs [VA], which 
     provides benefits to veterans who meet various eligibility 
     rules. Benefits range from income security for veterans, 
     principally disability compensation and pensions; veterans 
     education, training, and rehabilitation services; hospital 
     and medical care for veterans; and other veterans' benefits 
     and services, such as home loan guarantees. There are about 
     25 million veterans, but over the next 20 years this number 
     will decline by one-third, to about 17 million.
     House Resolution
       The House resolution calls for $61.6 billion in BA and 
     $61.1 billion in outlays in fiscal year 2004, an increase of 
     5.4 percent in BA compared with fiscal year 2003. The 
     function totals are $319.5 billion in BA and $318.2 billion 
     in outlays over 5 years; and $671.7 billion in BA and $668.9 
     billion in outlays over 10 years.
       The resolution supports a $1.3-billion increase in veterans 
     medical care. It assumes the expansions and revisions of 
     mandatory benefits proposed by the administration's fiscal 
     year 2004 budget, as well as: continuation of Dependency and 
     Indemnity Compensation for surviving spouses who remarry 
     after age 55; an increase in auto allowance from $9,000 to 
     $11,000 for severely disabled veterans; and accrued benefits 
     for veterans survivors.
     Senate Amendment
       The Senate amendment assumes levels for this function of 
     $63.8 billion in BA and $63.2 billion in outlays. This 
     represents an increase of 10.7 percent, or $6.2 billion, in 
     BA. The Senate amendment assumes funding of $693.7 billion in 
     BA and $689.2 billion in outlays over 2004-13.
       For discretionary spending, the Senate amendment assumes 
     $30.0 billion in BA and $29.6 billion in outlays for 2004. 
     This represents an increase of 12.9 percent, or $3.4 billion, 
     in BA over the 2003 level. The Senate amendment proposes to 
     refocus resources to benefit higher priority veterans.
       The Senate amendment proposes total net funding of $29.0 
     billion for the Department of Veterans Affairs [VA] medical 
     programs. This is an increase of 14.6 percent, or $3.7 
     billion, above the 2003 enacted level, and the largest 
     increase for medical care in the past 5 years. This increase 
     will help the VA in its mission to provide medical care to 
     its core constituency low-income and service-connected 
     disabled veterans.
       The Senate amendment assumes the enactment of legislation 
     to establish the President's proposed $250 enrollment fee for 
     priority level 7 and 8 veterans. Priority 7 and 8 veterans 
     have ailments that are not service connected and have a 
     higher income than other veterans using the VA hospitals. The 
     enrollment fee would generate offsetting receipts of $102 
     million in 2004 for the Medical Care Collections Fund [MCCF].
       The Senate amendment also assumes legislation will be 
     enacted to increase the insurance and prescription drug co-
     payments for Priority 7 and 8 veterans to $20 and $15, 
     respectively, as proposed by the President. In addition, the 
     Senate amendment reflects the President's proposal to 
     eliminate both the insurance and prescription drug co-payment 
     for priority level 2 through 5 veterans. These changes in the 
     prescription drug and insurance co-payments would yield 
     offsetting receipts of $224 million in 2004 into MCCF.
       For mandatory veterans programs, the Senate amendment 
     assumes the President's proposal to enact legislation to 
     restore the original interpretation of section 1110 of title 
     38 U.S. Code will be enacted. Section 1110 prohibits 
     compensation for alcohol or drug abuse that arises 
     secondarily from a service connected disability. In February 
     2001, the U.S. Court of Appeals decided that section 1110 did 
     not preclude compensation for alcohol or drug abuse arising 
     secondarily from a service connected disability. This 
     proposal would save $71 million over 10 years.
     Conference Agreement
       The Conference Agreement calls for $63.8 billion in BA and 
     $63.2 billion in outlays in fiscal year 2004. The function 
     totals are $327.9 billion in BA and $325.6 billion in outlays 
     over 5 years; and $693.9 billion in BA and $689.4 billion in 
     outlays over 10 years. The Agreement assumes no revisions in 
     mandatory programs.
       The Conference Agreement provides for discretionary BA of 
     $29.96 billion for fiscal year 2004, an increase of $3.4 
     billion, or 12.9 percent--nearly all of which is expected to 
     be for Department of Veterans Affairs [VA] medical programs. 
     An increase of this magnitude will help the VA in its mission 
     to provide medical care to its core constituency--low-income 
     and service-connected disabled veterans, as well as the cost 
     of medical care for combat veterans returning from Iraq in 
     accordance with Public Law 105-368.

                Administration of Justice: Function 750

     Function Summary
       Function 750 supports the majority of Federal justice and 
     law enforcement programs and activities. This includes 
     funding for the Department of Justice, much of the newly 
     formed Department of Homeland Security [DHS], as well as the 
     financial law enforcement activities of the Department of the 
     Treasury, Federal courts and prisons, and criminal justice 
     assistance to State and local governments.
     House Resolution
       The House resolution calls for $37.3 billion in BA and 
     $40.9 billion in outlays for this function for fiscal year 
     2004. The function totals over 10 years are $404.2 billion in 
     BA and outlays.
       The House resolution fully funds the Department of Homeland 
     Security [DHS] components reflected in this function, 
     including: securing the Nation's borders; enhancing Federal, 
     State, and local law enforcement efforts; stopping terrorist 
     financing; and bringing terrorist conspirators to justice.
       The resolution also provides for $18.7 billion in 
     discretionary funding for the Department of Justice, and thus 
     allows for the hiring of 2,170 new employees, including 1,911 
     new FBI personnel.
       Also in this function, the resolution assumes $9 million 
     for the mandatory costs associated with creating 62 new 
     Federal judgeships and extending five existing bankruptcy 
     judgeships.
     Senate Amendment
       The Senate amendment assumes funding for this function will 
     total $37.8 billion in BA and $40.9 billion in outlays. This 
     represents a decrease of 2.0 percent, or $0.8 billion, in BA 
     from 2003. The Senate amendment assumes funding of $406.4 
     billion in BA and $408.7 billion in outlays over 2004-13.
       For discretionary programs, the Senate amendment assumes 
     $33.7 billion in BA and $37.6 billion in outlays for 2004. 
     This represents a decrease of $2.6 billion in BA from the 
     2003 level. The Senate amendment includes the following 
     specific assumptions.
       For the Department of Homeland Security, the Senate 
     amendment assumes $5.6 billion in discretionary funds in 2004 
     for the Bureau of Customs and Border Protection, an increase 
     of $800 million (16.7 percent) more than in 2003. For the DHS 
     Bureau of Immigration and Customs Enforcement, the Senate 
     amendment assumes $1.4 billion for 2004, an increase of $0.3 
     billion or 26 percent more than in 2003. The Senate also 
     adopted an amendment to add $150 million in BA in 2004 and 
     2005 for additional port security needs.
       For the Federal Bureau of Investigation [FBI], the Senate 
     amendment assumes a total of $4.1 billion, an increase of 
     $397 million (10.6 percent) from 2003. This increase would be 
     primarily used for intelligence analysts, surveillance 
     personnel, and field investigators, including cybercrime 
     investigators, as well as to support FBI-led interagency task 
     forces.
       The Senate amendment also assumes $500 million for the 
     Office of Domestic Preparedness to be used exclusively for 
     grants to local law enforcement agencies to combat terrorism.
       The Senate amendment assumes two mandatory proposals in the 
     President's budget

[[Page 9322]]

     concerning the extension of expiring Customs user fees. If 
     extended, the combined resulting collections would be $1.3 
     billion in 2004 and $17.8 billion through 2013.
     Conference Agreement
       The function totals for the Conference Agreement are $37.6 
     billion in BA and $40.8 billion in outlays for fiscal year 
     2004; $191.5 billion in BA and $195.7 billion in outlays over 
     5 years; and $406.3 billion in BA and $408.6 billion in 
     outlays over 10 years.
       The Agreement fully funds the President's request for the 
     Department of Justice and the programs and activities of the 
     Department of Homeland Security in Function 750. The 
     Agreement also assumes additional funding for Bankruptcy and 
     other Federal judges.

                    General Government: Function 800

     Function Summary
       The General Government function consists of the activities 
     of the Legislative Branch; the Executive Office of the 
     President; general tax collection and fiscal operations of 
     the Department of Treasury (including the Internal Revenue 
     Service [IRS]); the property and personnel costs of the 
     General Services Administration and the Office of Personnel 
     Management; general purpose fiscal assistance to States, 
     localities, the District of Columbia, and U.S. territories; 
     and other general government activities. The IRS accounts for 
     about half of the spending in this function.
     House Resolution
       The House resolution calls for $19.8 billion in BA and 
     $19.6 billion in outlays in fiscal year 2004, an increase of 
     8.8 percent in BA compared with fiscal year 2003. The 
     function totals are $99.3 billion in BA and $98.9 billion in 
     outlays over 5 years, and $206.4 billion in BA and $203.9 
     billion in outlays over 10 years.
       The House Passed resolution accommodates $500 million for 
     the newly created Election Assistance Commission. It also 
     assumes the President's mandatory spending proposal to pay 
     financial institutions for their services in lieu of 
     providing compensating balances; and continuation of fiscal 
     assistance provided to the Compact of Free Association 
     between the United States Government and the government of 
     the Federated States of Micronesia.
     Senate Amendment
       For discretionary programs, the Senate amendment assumes 
     $17.1 billion in BA and $16.8 billion in outlays for 2004. 
     This represents an increase of $1.4 billion in BA from the 
     2003 level. The Senate amendment includes the following 
     specific assumptions.
       The Senate amendment allocates $10.4 billion for the 
     Internal Revenue Service [IRS], an increase of $550 million 
     or almost 6 percent over 2003. Of that increase, 50 percent 
     is directed into Tax Law Enforcement [TLE], 23 percent toward 
     Processing Assistance and Management [PAM], and 19 percent 
     for reducing fraud in the Earned Income Tax Credit [EITC] 
     program.
       The Senate amendment allocates $223 million for Payments in 
     Lieu of Taxes [PILT] for 2004, $23 million more than the 
     President's request. Over the next decade, this translates 
     into an additional $300 million above the President's 
     request. These payments compensate municipal governments for 
     forgone revenues stemming from the presence of the Federal 
     Government.
       The Senate amendment increases Homeland Security funding 
     within Function 800 by $214 million in 2004. The additional 
     funds are dedicated to developing the site plan for the new 
     headquarters, converting wireless radio communication to 
     narrowband operations and bolstering security at Federal 
     buildings.
       For mandatory programs, the Senate amendment reflects the 
     President's proposal to open ANWR for oil and gas leasing 
     (the total Federal receipts portion appears in Function 950, 
     Offsetting Receipts). The State of Alaska would receive a 
     payment of one-half of the proceeds, or $1.7 billion in 2006, 
     which is reflected in Function 800.
       The Senate amendment assumes that President's $386 million 
     Financial Agent Services proposal is enacted. Currently, 
     financial institutions that operate major collection and 
     payment programs on behalf of the Federal Government are 
     reimbursed via compensating balances. The President's 
     proposal would instead replace the existing barter 
     arrangement with a more transparent fee-for-service 
     agreement.
       In its examination of selected Government programs, OMB 
     determined through the Performance Assessment Rating Tool 
     [PART] that IRS collection efforts do not efficiently utilize 
     its available resources. In response, the President proposes 
     legislation that would permit the IRS to enlist the help of 
     private collection agencies to obtain payment from delinquent 
     taxpayers. The Senate amendment includes $226 million in 
     mandatory funding in 2004 for this proposal.
     Conference Agreement
       The Conference Agreement for Function 800 calls for $20.2 
     billion in BA and $20.1 billion in outlays in fiscal year 
     2004. The functional totals are $103.9 billion in BA and 
     $103.2 billion in outlays over 5 years, and $221.3 billion in 
     BA and $218.2 billion in outlays over 10 years.
       The Conference Agreement reflects the Senate amendment on 
     funding for PILT.
       In fiscal year 2004, the Conference Agreement assumes the 
     President's $386 million Financial Agent Services proposal is 
     enacted. It also assumes that Compacts of Free Association 
     are ratified and therefore accommodates $19 million for this 
     purpose in 2004.

                       Net Interest: Function 900

     Function Summary
       Net interest is the interest paid for the Federal 
     Government's borrowing less the interest received by the 
     Federal Government from trust fund investments and loans to 
     the public. Function 900 is a mandatory payment, with no 
     discretionary components.
       On-budget BA and outlays for net interest has gone from 
     $287.8 billion in fiscal year 1998 to $239.7 billion in 
     fiscal year 2003, an overall decrease of 3.6 percent per 
     year.
     House Resolution
       For on-budget interest, the resolution calls for $256.7 
     billion in BA and outlays in fiscal year 2004, an increase of 
     7.2 percent compared with fiscal year 2003. The function 
     totals are $1,659.4 billion in BA and outlays over 5 years, 
     and $3,910.9 billion in BA and outlays over 10 years. For 
     off-budget interest, it calls for -$89.8 billion in BA and 
     outlays in fiscal year 2004, a decrease of 6.7 percent 
     compared with fiscal year 2003. The function totals are 
     -$554.2 billion in BA and outlays over 5 years, and -$1,481.3 
     billion in BA and outlays over 10 years.
       The resolution assumes a reduction in interest payments of 
     $0.3 billion in BA and outlays in fiscal year 2004 and $5.3 
     billion in BA and outlays over 10 years. This saving arises 
     from replacing Treasury's compensating balances by a 
     permanent indefinite appropriation (see Function 800) that 
     would result in lower borrowing by the Federal Government.
     Senate Amendment
       For 2004, the Senate amendment sets forth on-budget levels 
     of $255.8 billion in BA and outlays. Over the 2004-2013 
     period, it provides on-budget amounts of $3,889.2 billion in 
     BA and outlays.
       The Senate amendment assumes two additional policies that 
     affect net interest. The first is the President's proposal to 
     pay financial institutions for their services in lieu of 
     providing compensating balances (discussed in Function 800), 
     which results in lower borrowing by the Federal Government 
     and saves $5.3 billion in interest over 10 years. The second 
     is the Postal Service pension proposal (discussed in 
     Functions 370 and 950), which results in a reduction in 
     interest received by the Federal Government.
     Conference Agreement
       The Conference Agreement calls for on-budget amounts of 
     259.4 billion in BA and outlays in fiscal year 2004, and 
     $4,072.6 billion over the 2004-13 period.

                        Allowances: Function 920

     Function Summary
       The Allowances function is used for planning purposes to 
     reflect the aggregate budgetary effects of proposals or 
     assumptions that relate to programs in other budget 
     functions. Once such changes are enacted, the budgetary 
     effects are distributed to the appropriate budget functions.
       There is no spending history in Function 920 for the reason 
     mentioned above.
     House Resolution
       The House resolution calls for -$1.1 billion in BA and 
     -$0.6 billion in outlays in fiscal year 2004, all of it in 
     discretionary spending. The function totals are -$1.1 billion 
     in BA and outlays for both the 5-year and the 10-year 
     periods. There are offsets in Functions 500 and 700: $0.2 
     billion in BA and outlays in Function 500, for Impact Aid; 
     and -$1.1 billion in BA and outlays in Function 700 to match 
     the function total with the President's.
     Senate Amendment
       The Senate Amendment assumes levels for this function would 
     total -$16.1 billion in BA and -$8.3 billion in outlays for 
     2004. Initially, the Committee-reported resolution only 
     assumed discretionary effects in this function (totaling 
     -$3.9 billion in BA and -$3.6 billion in outlays for 2004). 
     These assumptions reflected removal of the effects of pay 
     annualization in the baseline (which would reduce 
     discretionary BA by about $2 billion annually); an alternate 
     growth scenario for the path of nondefense discretionary 
     spending after 2008 (the last year of the President's 2004 
     budget); and an unspecified offset for an increase in 
     veterans medical care.
       During consideration of the Committee-reported resolution, 
     the Senate adopted 10 amendments that provided unspecified 
     discretionary offsets in Function 920 for specific 
     assumptions affecting other portions of the budget, and one 
     amendment for an unspecified mandatory offset in Function 920 
     for spending increases in Functions 450 and 500.
     Conference Agreement
       The Agreement calls for -$7.6 billion in BA and $22.3 
     billion in outlays in fiscal year 2004.

            Undistributed Offsetting Receipts: Function 950

     Function Summary
       Offsetting Receipts recorded in this function are either 
     intragovernmental (a payment from one Federal agency to 
     another,

[[Page 9323]]

     such as agency payments to the retirement trust funds) or 
     proprietary (a payment from the public for some kind of 
     business transaction with the Government). The main types of 
     receipts recorded in this function are: the payments Federal 
     employers make to employee retirement trust funds; 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 public property or 
     resources, such as the electromagnetic spectrum. These 
     receipts are treated as mandatory negative spending.
     House Resolution
       The House resolution calls for -$52.9 billion in BA and 
     outlays for this function in fiscal year 2004, reflecting a 
     -$2.4 billion, or -4.8 percent, increase in receipts (or 
     decrease in spending) compared to the fiscal year 2003 
     budget. This amount is the baseline for offsetting receipts 
     increased by the reduction ($2.7 billion) in the Postal 
     Service's contribution to the Civil Service Retirement 
     System. Over the 2004-08 period, BA and outlays are to 
     further decrease by $16.1 billion due to an average increase 
     for receipts of 5.7 percent per year. Over 10 years, receipts 
     are to total -$676.0 billion in BA and outlays.
       On-Budget Receipts. The resolution calls for -$42.9 billion 
     in BA and outlays in fiscal year 2004, a decrease of 4.4 
     percent in BA compared with fiscal year 2003. The function 
     totals are -$255.0 billion in BA and outlays over 5 years, 
     and -$539.4 billion in BA and outlays over 10 years. Over the 
     2004-08 period, on-budget BA and outlays further decrease an 
     average of 5.4 percent per year.
       Off-Budget Receipts. The resolution assumes -$10.0 billion 
     in BA and outlays in fiscal year 2004, a decrease of 6.6 
     percent in BA compared with fiscal year 2003. The off-budget 
     function totals -$57.6 billion in BA and outlays over 5 
     years, and -$136.5 billion in BA and outlays over 10 years. 
     Over the 2004-08 period, BA and outlays further decrease an 
     average of 6.8 percent per year. The off-budget receipts in 
     this function are agencies' payments to the Social Security 
     trust funds at baseline.
     Senate Amendment
       The Senate amendment assumes additional offsetting receipts 
     of $2.15 billion over the 2004-13 period, consistent with 
     opening up the 1002 area of the Arctic National Wildlife 
     Refuge for oil exploration and production in order to 
     decrease our dependence on foreign oil (the payment of a 
     share of these receipts to the State of Alaska is reflected 
     in Function 800). An amendment to the Committee-reported 
     resolution adopted by the Senate struck the reconciliation 
     instruction to the Senate Energy Committee to report 
     legislation producing that level of savings.
       The Senate amendment also assumes legislation (S. 380, as 
     cleared for the President on 8 April 2003) that would reduce 
     the Postal Service payment to the Civil Service Retirement 
     [CSRS] trust fund for 2003-05, but then would reinstate and 
     redirect the payment to an escrow fund until Congress can 
     enact subsequent law regarding how the Postal Service should 
     address its retiree health liabilities and other concerns. 
     This proposal would increase the unified deficit by $7.3 
     billion over the 2003-13 period. The budgetary effect on the 
     Postal Service is reflected in Function 370, and the effect 
     on the receipts of the CSRS fund are shown in this function 
     (a small interest effect appears in Function 900).
       The Senate amendment assumes the President's proposals to 
     extend the authority of the Federal Communications Commission 
     to auction spectrum (which would otherwise expire at the end 
     of 2007) and to impose an efficiency fee on users of spectrum 
     not acquired through Federal auction.
     Conference Agreement
       On-Budget Receipts. For these receipts, the Agreement 
     assumes -$42.9 billion in BA and outlays in fiscal year 2004; 
     -$250.2 billion over 5 years; and -$540.2 billion over 10 
     years.
       Off-Budget Receipts. The Agreement assumes -$10.0 billion 
     in BA and outlays in fiscal year 2004; -$57.6 billion over 5 
     years; and -$136.5 billion over 10 years.
       The Agreement assumes extended authority to auction the 
     electromagnetic spectrum. It makes no assumption concerning 
     the Arctic National Wildlife Refuge.

                      RECONCILIATION INSTRUCTIONS

       Under section 310(a) of the Congressional 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 level of 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 201. Reconciliation
       Section 201 provides for two different reconciliation 
     bills. The first reconciliation bill is designed to stimulate 
     economic growth and to simplify and reform the tax system. It 
     has two separate directives: The Committee on Ways and Means 
     must reduce the total level of revenues by not more than 
     $35.4 billion for fiscal year 2003, $112.8 billion for fiscal 
     year 2004, $387.7 billion for the period of fiscal years 2004 
     through 2008, and $662.8 billion for the period of fiscal 
     years 2004 through 2013. It must also increase the level of 
     direct spending by $4.4 billion in outlays for fiscal year 
     2003, $1.1 billion in outlays for fiscal year 2004, $17.4 
     billion in outlays for the period of fiscal years 2004 
     through 2008, and $23.1 billion in outlays for the period of 
     fiscal years 2004 through 2013. It also requires the 
     Education and the Workforce to increase direct spending by 
     $3.6 billion for FY2003. These changes must be transmitted to 
     the Budget Committee by 11 April 2003.
       The House resolution also instructs 13 committees to reduce 
     spending on programs within their jurisdiction to the Budget 
     Committee by 18 July 2003. The intent of the instruction is 
     to reduce instances of waste fraud and abuse in these program 
     areas. The committees may choose their own methods of 
     complying with the directives. The committees are as follows: 
     Agriculture, Education and the Workforce, Energy and 
     Commerce, Financial Services, Government Reform, House 
     Administration, International Relations, the Judiciary, 
     Resources, Science, Transportation and Infrastructure, 
     Veterans Affairs, and the Ways and Means. Each committee is 
     required to reduce its spending by one percent.
     Senate Amendment
       Section 104. Reconciliation in the Senate
       The Senate amendment instructs the Finance Committee to 
     report legislation by 8 April 2003 to reduce revenues by 
     $322.5 billion over 2003-2013 and to increase direct spending 
     related to tax policy changes by $27.5 billion over 2003-2013 
     (reflected in function 600). The Committee-reported 
     resolution had reconciled the Finance Committee for a 
     reduction in revenues and an increase in outlays consistent 
     with President Bush's jobs and growth tax relief plan--$725.8 
     billion over the 2003-2013 period. During consideration of 
     the Committee-reported resolution, the Senate adopted several 
     amendments that reduced the revenue reconciliation 
     instruction to the Finance Committee.
     Conference Agreement
       Section 201. Reconciliation for Economic Growth and Tax 
           Simplification and Fairness
       Section 201(a) of the Conference Agreement includes a 
     reconciliation directive to the House Ways and Means 
     Committee to report legislation by 8 May 2003 to stimulate 
     economic growth and to simplify and reform the tax system. 
     The committee must reduce the total level of revenues by not 
     more than $535.0 billion for the period of fiscal years 2003 
     through 2013, and to increase direct spending related to tax 
     policy changes by $15.0 billion over 2003-2013.
       Section 201(b) of the Conference Agreement instructs the 
     Senate Finance Committee to report legislation by 8 May 2003 
     to reduce revenues by $522.524 billion over 2003-2013 and to 
     increase direct spending related to tax policy changes by 
     $27.476 billion over 2003-2013 (reflected in function 600).
       Section 202. Limit on Senate Consideration of 
           Reconciliation
       Section 202 of the Conference Agreement limits initial 
     Senate consideration of a reconciliation bill reported 
     pursuant to Section 201, or any amendment thereto, to no more 
     than $322.524 billion in revenue reductions and $27.476 
     billion in outlay increases for the period of fiscal years 
     2003 through 2013, enforced by a 60-vote point of order. The 
     limitation would not apply to a conference report on 
     legislation considered pursuant to this Title.

            SUBMISSIONS TO ELIMINATE WASTE, FRAUD, AND ABUSE

       Section 301. Submissions to eliminate waste, fraud, and 
           abuse
       Section 301 of the Conference Agreement requires 
     authorizing committees in the House and the Senate to submit 
     findings to the appropriate Budget Committee identifying 
     instances of waste fraud and abuse in programs within their 
     jurisdiction sufficient to reduce outlays by an amount to be 
     specified by the chairmen of the Budget Committees. Such a 
     specified amount must be inserted in the Congressional Record 
     by 19 May 2003. The findings of the authorizing committees 
     must be submitted to the Budget Committees by 2 September 
     2003. These findings will be used by the Budget Committees in 
     the development of future budget resolutions.
       In the House, the authorizing committees directed to report 
     these findings are: Agriculture, Armed Services, Education 
     and the Workforce, Energy and Commerce, Financial Services, 
     Government Reform, House Administration, International 
     Relations, Judiciary, Resources, Science, Small Business, 
     Transportation and Infrastructure, Veterans' Affairs, and 
     Ways and Means.
       In the Senate, the authorizing committees directed to 
     report these findings are: Agriculture, Nutrition and 
     Forestry; Armed Services; Banking, Housing, and Urban 
     Affairs; Commerce, Science, and Transportation; Energy and 
     Natural Resources; Environment and Public Works; Finance; 
     Foreign

[[Page 9324]]

     Relations; Governmental Affairs; Health, Education, Labor, 
     and Pensions; Judiciary; Small Business; Veterans' Affairs; 
     and Indian Affairs.
       Finally, the Comptroller-General of the General Accounting 
     Office is directed to submit to the Budget Committees a 
     report identifying instances in which the committees of 
     jurisdiction can make legislative changes to improve the 
     economy, efficiency, and effectiveness of Federal programs. 
     The report must be submitted by 2 September 2003.

         RESERVE FUNDS, CONTINGENCY PROCEDURES, AND ADJUSTMENTS

     House Resolution
       Section 301. Medicare modernization and prescription drugs
       Section 301 creates a reserve fund for legislation that 
     provides a prescription drug benefit and modernizes Medicare, 
     and provides adjustments to the Medicare program on a fee-
     for-service, capitated, or other basis. It creates a separate 
     allocation for Medicare and then permits the Chairman of the 
     House Budget Committee to make adjustments to that allocation 
     for such legislation. The committees with jurisdiction over 
     Medicare may report legislation for these purposes, though 
     the adjustment made must be no more than $7.5 billion in 
     fiscal year 2004 and $400 billion for fiscal years 2004 
     through 2013. Pursuant to section 321(d), legislation must be 
     within the allocations provided by the budget resolution in 
     the first year and five-year period. Because of the separate 
     Medicare allocation established in section 301(c), Medicare 
     legislation must be within its allocation in the first year 
     and the ten-year period. For legislation other than Medicare, 
     the applicable allocation is for the first and five-year 
     period.
       Section 302. Reserve fund for medicaid
       Section 302 creates a reserve fund that allows the Chairman 
     of the House Budget Committee to adjust the allocation of BA 
     and outlays to the Committee on Energy and Commerce for any 
     measure that combines funding for Medicaid and the State 
     Children's Health Insurance Program [SCHIP]. The purpose of 
     this reserve fund is to ensure, as a condition for setting 
     any increase in the allocation, the bill is deficit neutral 
     over ten years. The adjustments in the allocations may not 
     exceed $3.3 billion in new BA and outlays for fiscal year 
     2004; and $8.9 billion in new BA and outlays for the period 
     of fiscal years 2004 through 2008.
       Section 303. Reserve fund for Bioshield
       In section 303, the Chairman of the House Budget Committee 
     is permitted to adjust the allocation of BA and outlays to 
     the appropriate committees for a bill that establishes a 
     program to accelerate the research, development, and purchase 
     of biomedical threat countermeasures.
       The adjustment can accommodate either a discretionary or 
     mandatory program, depending on the structure of the program 
     in the authorizing legislation. If it is mandatory, the 
     adjustment may not exceed $890 million in new mandatory BA 
     for fiscal year 2004, and $3.4 billion in new mandatory BA 
     for fiscal years 2004 through 2008. If it is discretionary, 
     the adjustment would be made in the Appropriations 
     Committee's 302(a) allocation for fiscal year 2004 because 
     that allocation is made for only a single fiscal year. If the 
     program includes both mandatory and discretionary components 
     or if two bills are enacted, the maximum adjustment the 
     committee may make in fiscal year 2004 is $890 million in BA.
       Section 311: Contingency procedure for surface 
           transportation
       In section 311, the House resolution creates a contingency 
     procedure to permit the Transportation and Infrastructure 
     Committee to increase spending above the level in the budget 
     resolution on highways, highway safety, and transit in the 
     surface transportation reauthorization bill it will consider 
     later this year, should additional resources be made 
     available to the Highway Trust Fund. The offsets may take the 
     form of an increase in receipts to the Highway Trust Fund or 
     a reduction in mandatory outlays from the fund.
       Subsection (a) creates a reserve fund that allows the 
     Chairman of the House Budget Committee to adjust the 
     allocation of BA to the Committee on Transportation and 
     Infrastructure for any measure that reauthorizes surface 
     transportation programs and provides new BA for highway and 
     transit spending. The Budget Committee Chairman may make an 
     adjustment to its allocation if the Transportation Committee 
     reports a measure that exceeds the amounts specified in 
     section 311. The adjustment may only be made if it is offset 
     by changes in law, either included in same measure, or by 
     previously enacted legislation. The changes in law may effect 
     either direct spending or receipts must be appropriated to 
     the Highway Trust Fund. The adjustment may be made in the BA 
     allocation for fiscal year 2004 and the 5 year period, but 
     the additional resources must offset the additional BA and 
     corresponding outlays in each year.
       Subsection (b) creates a reserve fund that allows the 
     Chairman of the House Budget Committee to adjust the 
     allocation of outlays to the Committee on Appropriations for 
     any measure that sets total obligation limitations greater 
     than $38.5 billion for fiscal year 2004 for spending from the 
     Highway Trust Fund. In addition, the amount of the adjustment 
     must be offset by increases in resources dedicated to the 
     Highway Trust Fund in fiscal year 2004 as previously referred 
     to in subsection (a).
     Senate Amendment
       In general, a reserve fund permits the Chairman of the 
     Committee on the Budget to increase the section 302 
     allocation and other appropriate levels set out in this 
     resolution (including in some cases--see sections 211 and 
     212--the discretionary spending limits) once certain 
     conditions specified in the reserve fund have been met. The 
     authority to make these adjustments is solely within the 
     discretion of the Chairman and may be made when the specified 
     committee of jurisdiction reports a measure that satisfies 
     all the conditions set out in the reserve fund.
       Section 211: Adjustment for special education
       The Senate amendment contains a mechanism to make 
     additional resources available to the Committee on 
     Appropriations specifically for the Part B grant program 
     under the Individuals with Disabilities Education Act (IDEA). 
     The mechanism will make available an additional $205 million 
     for fiscal year 2004 and $209 million for fiscal year 2005 
     after enactment of a bill reported by the Committee on 
     Health, Education, Labor and Pensions reauthorizing IDEA and 
     only if the appropriators provide more than the base amounts 
     described in the reserve. Additionally, the amendment 
     requires the reauthorization bill to provide an allowance of 
     uniform discipline policies for all students; local fiscal 
     relief; and to minimize the over-identification of students 
     with disabilities.
       Section 212: Adjustment for highways and highway safety and 
           transit
       The Senate amendment provides a mechanism to make 
     additional resources available to the appropriate authorizing 
     committees and the Committee on Appropriations for highway 
     and transit programs once the reauthorization of the 
     Transportation Equity Act for the 21st Century (TEA-21) is 
     enacted, provided that the reauthorization includes new 
     governmental receipts for the highway trust fund--without 
     increasing the deficit. The amendment makes no assumption 
     with respect to the floor procedures required to bring 
     together the portions of this legislation that fall within 
     the jurisdiction of various committees of the Senate. 
     Therefore the amendment names all three authorizing 
     committees (the Committee on the Environment and Public 
     Works, the Committee on Banking, Housing and Urban Affairs 
     and the Committee on Commerce, Science and Transportation). 
     The amendment further assumes that the additional funding 
     facilitated by this section will be provided in the form of 
     new governmental receipts in a measure reported by the 
     Committee on Finance, net of the 25% income tax offset as is 
     customarily scored by the Joint Committee on Taxation.
       Section 213: Reserve fund for Medicare
       The Senate amendment provides up to $400 billion for the 
     period of fiscal years 2004 through 2013 for legislation that 
     improves the Medicare program and makes prescription drugs 
     more accessible for those covered by Medicare. During the 
     markup an amendment offered by Senator Feingold was agreed to 
     which provides that the legislation may also promote 
     geographic equity payments. The adjustment may be made only 
     if the Committee on Finance reports a bill that strengthens 
     and enhances the Medicare program as well as improves the 
     access of beneficiaries to prescription drugs or promotes 
     geographic equity.
       Section 214: Reserve fund for health insurance for the 
           uninsured
       The Senate amendment provides up to $88 billion for the 
     period of fiscal years 2004 through 2013 for legislation that 
     provides health insurance for the uninsured. The adjustment 
     may be made only if the Committee on Finance reports a bill 
     that provides health insurance for the uninsured--which may 
     include 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.
       Section 215: Reserve fund for children with special needs
       The Senate amendment creates a reserve for legislation that 
     provides states with the option to expand Medicaid coverage 
     for children with special needs. The adjustment may be made 
     only if the Committee on Finance reports a bill that does not 
     exceed $43 million in new budget authority and $42 million in 
     outlays for fiscal year 2004, and $7.462 billion in new 
     budget authority and $7.262 billion in outlays for the period 
     of fiscal years 2004 through 2013.
       Section 216: Reserve fund for Medicaid Reform
       The Senate amendment provides up to $12.782 billion through 
     2010 for legislation that reforms the Medicaid program. The 
     adjustment may be made only if the Committee on Finance 
     reports a bill that provides significant reform of the 
     Medicaid program. The adjustments may be made only if the 
     Finance Committee reports a bill that

[[Page 9325]]

     does not exceed $3.258 billion in new budget authority and 
     outlays for 2004, $8.944 billion in new budget authority and 
     outlays for the period of fiscal years 2004 through 2008, 
     $12.782 billion in new budget authority and outlays for the 
     period of fiscal years 2004 through 2010, and is deficit 
     neutral for the period of fiscal years 2004 through 2013.
       Section 217: Reserve fund for Project Bioshield
       The Senate amendment provides up to $5.593 billion over the 
     life of the resolution for legislation that facilitates 
     procurement for inclusion by the Secretary of Health and 
     Human Services in the Strategic National Stockpile of 
     countermeasures necessary to protect the public health from 
     current and emerging threats of chemical, biological, 
     radiological, or nuclear agents. The adjustments may be made 
     only if the Committee on Health Education, Labor and Pensions 
     reports a bill that provides no more than $890 million in new 
     budget authority (and $575 million in outlays) for fiscal 
     year 2004 and $5.593 billion in new budget authority and 
     outlays for the period of fiscal years 2004 through 2013.
       Section 218: Reserve fund for the state grant program and 
           ANWR receipts
       The Senate amendment provides up to $250 million per year 
     (beginning in fiscal year 2006) for legislation that provides 
     additional resources for the state grant program funded from 
     the Land and Water Conservation Fund. The adjustment is 
     conditioned upon two events: the enactment of legislation 
     that yields offsetting receipts (reflected in the resolution 
     as a reduction in outlays) from the opening of the Arctic 
     National Wildlife Refuge and subsequent reporting of a bill 
     from the Committee on Energy and Natural Resources that 
     dedicates a portion of these receipts to the Land and Water 
     Conservation Trust Fund for the grant program.
       Section 219: Reserve fund for State Children's Health 
           Insurance Program
       The Senate amendment provides up to $1.825 billion in new 
     budget authority for legislation that extends the 
     availability to states of expired State Children's Health 
     Insurance Program allotments (from 1998 and 1999) and 
     expiring 2000 allotments. The adjustments may be made only if 
     the Committee on Finance reports a bill that provides no more 
     than $1.26 billion in new budget authority (and $85 million 
     in outlays) for fiscal year 2003, $1.33 billion in new budget 
     authority (and $85 million in outlays) for fiscal year 2004, 
     $1.95 billion in new budget authority (and $845 million in 
     outlays) for the period of fiscal years 2003 through 2008, 
     and $1.825 billion in new budget authority (and $975 million 
     in outlays) for the period of fiscal years 2003 through 2013.
       Section 319: Reserve fund to strengthen Social Security
       Section 319 of the Senate amendment was adopted as part of 
     an amendment that reduced to $350 billion the reconciliation 
     instruction to the Committee on Finance. It purports to hold 
     in reserve $396 billion to extend the solvency of the Social 
     Security trust funds, but provides no policy directive for 
     how to accomplish this. On its face, it would permit the 
     Committee on Finance to spend $396 billion on any program so 
     long as it was part of legislation that for instance, reduced 
     benefits or increased the retirement age, and thus extended 
     solvency.
       Past practice has been to include the effect of the 
     policies described in a reserve fund in the functional levels 
     and aggregates of the budget resolution but to withhold the 
     funds from the committee's 302(a) allocation. The language of 
     section 319 does not conform to this model. Rather, it 
     entirely eliminates the $396 billion from the budget--or in 
     other words, reduces the deficit. If the authority in this 
     section were invoked it would result in a $396 billion 
     increase in the deficit. It is not clear, how a deficit 
     increase would contribute to the solvency of Social Security 
     trust funds.
       Section 329: Reserve fund for possible military action and 
           reconstruction in Iraq
       Section 329 of the Senate amendment was adopted as part of 
     an amendment that reduced the reconciliation instruction to 
     the Finance Committee by $100 billion and thus increased 
     taxes by $10 billion each year 2004 through 2013. It purports 
     to hold this $100 billion in reserve for the Committee on 
     Appropriations to pay for military action and reconstruction 
     in Iraq over the period of 2003 through 2013. Because this 
     reserve can only be triggered for an appropriations bill, it 
     would more appropriately be a cap adjustment instead of a 
     reserve fund.
       Past practice has been to include the effect of the 
     policies described in a reserve fund in the functional levels 
     and aggregates of the budget resolution but to withhold the 
     funds from the committee's 302(a) allocation. The language of 
     section 329 does not conform to this model. Rather it 
     entirely eliminates the $100 billion from the budget--or in 
     other words, it reduces the deficit by that amount over the 
     10-year period ending in 2013. If the authority in this 
     section were invoked, it would result in up to a $100 billion 
     increase in the deficit.
     Conference Agreement
       Section 401. Reserve Fund for Medicare
       Section 401 of the Conference Agreement permits the 
     appropriate Budget Committee Chairman to adjust committee 
     allocations and other appropriate budgetary aggregates and 
     allocations for reported legislation (and amendments thereto, 
     or any conference report thereon) for Medicare-related 
     legislation.
       Section 401(a) of the Conference Agreement establishes a 
     Medicare reserve fund for the House. The reserve fund permits 
     the Chairman of the Committee on the Budget to adjust the 
     levels in the budget resolution to accommodate certain 
     Medicare-related legislation. The Chairman may make an 
     adjustment to the separate Medicare allocation to the Ways 
     and Means Committee and the Energy and Commerce Committee for 
     legislation that provides a prescription drug benefit and 
     modernizes Medicare, and provides adjustments to the Medicare 
     program on a fee-for-service, capitated, or other basis. The 
     amount of the adjustment for this legislation may not exceed 
     $7.0 billion in budget authority and outlays for fiscal year 
     2004 and $400 billion in budget authority and outlays for 
     fiscal years 2004 through 2013. The adjustment is made to the 
     separate allocation for Medicare, regardless of the committee 
     that reports the measure.
       Section 401(b) of the Conference Agreement sets forth a 
     Medicare reserve fund for the Senate and also provides up to 
     $400 billion for the period of fiscal years 2004 through 2013 
     for legislation that improves the Medicare program and makes 
     prescription drugs more accessible for those covered by 
     Medicare. The legislation may also promote geographic equity 
     payments. The Chairman of the Committee on the Budget may 
     make an adjustment only if the Committee on Finance reports a 
     bill that strengthens and enhances the Medicare program as 
     well as improves the access of beneficiaries to prescription 
     drugs and does not exceed $7.0 billion in new budget 
     authority and outlays for fiscal year 2004 and $400 billion 
     fiscal years 2004-2013.
       The Senate conferees recognize the need to enhance both the 
     benefits and structure of the Medicare program in order to 
     provide a better system for seniors. In addition to providing 
     an integrated prescription drug benefit, the Conferees 
     support efforts to take advantage of competition in order to 
     enhance seniors' medical benefits which are currently lacking 
     in our present system. This could include access to 
     preventive care services, disease management and catastrophic 
     protection against high hospital costs.
       While considering benefit expansions, however, it is 
     critical to recognize the long-term unfunded promises in the 
     Medicare program. The President's budget submission includes 
     sobering information on the extent of Medicare's long- term 
     unfunded promises. According to the Medicare Trustees' most 
     recent report, the Hospital Insurance Trust Fund is expected 
     to be exhausted in 2026--four years earlier than estimated in 
     the 2002 report.
       Medicare actuaries project a 75-year unfunded promise to 
     the HI fund of $5 trillion. However, this only tells half the 
     story. It does not include the Part B program. Medicare 
     beneficiary premiums only cover 25 percent of these costs. 
     The remaining 75 percent of expenses are not covered by any 
     specific or dedicated financing source. The Senate conferees 
     believe it is artificial to separate Part A and B. Policy 
     makers must look at the total expenditures for Medicare. From 
     this perspective Medicare's unfunded promises are $13 
     trillion.
       Section 402. Reserve Fund for Medicaid Reform
       Section 402 of the Conference Agreement includes a reserve 
     fund to reform the Medicaid program. Both the House 
     resolution and the Senate amendment included reserve funds 
     this general purpose. The reserve fund, which applies in both 
     the House and the Senate, permits the appropriate Budget 
     Committee Chairman to adjust the appropriate committee 
     allocations of the Committee on Energy and Commerce in the 
     House, or the Committee on Finance in the Senate, and other 
     budgetary aggregates and allocations for reported legislation 
     (and amendments thereto, or any conference report thereon) 
     that modernizes Medicaid. The adjustments in the allocations 
     may not exceed $3.258 billion in new BA and outlays for 
     fiscal year 2004; and $8.944 billion in new BA and outlays 
     for fiscal years 2004 through 2008, and $12.782 billion for 
     fiscal years 2004 through 2010.
       Section 403. Reserve Fund for State Children's Health 
           Insurance Program
       Section 403 of the Conference Agreement retains the reserve 
     fund for the extension of the State Children's Health 
     Insurance Program [SCHIP] included in section 219 of the 
     Senate amendment. The reserve fund, which applies in both the 
     House and the Senate, permits the appropriate Budget 
     Committee Chairman to adjust the committee allocations for 
     the Committee on Ways and Means in the House, or the 
     Committee Finance in the Senate, and other appropriate 
     budgetary aggregates and allocations for reported legislation 
     (and amendments thereto, or any conference report thereon) 
     that extends the availability of expired and expiring 
     allotments of the State Children's Health Insurance Program 
     [SCHIP]. The adjustments in the allocations may not exceed 
     $1.260 billion in new BA and $85 million in outlays for 
     fiscal year 2003; $1.350 billion in new BA and

[[Page 9326]]

     $105 million in outlays for fiscal year 2004; $1.355 billion 
     in new BA and $1.425 million in outlays for fiscal year 2004 
     through 2008; and $1.355 billion in new BA and $1.680 million 
     in outlays for the period of fiscal years 2004 through 2013.
       Section 404. Reserve Fund for Bioshield
       Section 404 of the Conference Agreement establishes 
     separate procedures in the House and the Senate reserving 
     amounts for legislation providing countermeasures to 
     international terrorism.
       Section 404(a) of the Conference Agreement adopts the 
     reserve fund for bioshield included in section 303 the House 
     resolution. The reserve fund permits the House Budget 
     Committee Chairman to adjust committee allocations and other 
     appropriate budgetary aggregates and allocations for a 
     reported measure (and amendments thereto, or any conference 
     report thereon) that establishes either a new mandatory or 
     discretionary program to accelerate the research, 
     development, and purchase of biomedical threat 
     countermeasures. If the program established is mandatory, the 
     adjustment may not exceed $890 million in new mandatory BA 
     for fiscal year 2004, and $3.418 billion in new BA and 
     outlays for fiscal years 2004 through 2008. If the program 
     authorized is discretionary, the adjustment may not exceed 
     $890 million in new mandatory BA for the measure 
     appropriating funds for the new program. If the program 
     includes both mandatory and discretionary components or if 
     two bills are enacted, the maximum adjustment the chairman 
     may make in fiscal year 2004 is $890 million in BA.
       Section 404(b) of the Conference Agreement adopts the 
     reserve fund for bioshield included in section 217 of the 
     Senate Amendment with minor modifications. The reserve fund 
     permits the appropriate Budget Committee Chairman to adjust 
     committee allocations and other appropriate budgetary 
     aggregates and allocations for reported legislation (and 
     amendments thereto, or any conference report thereon) that 
     establishes a new mandatory program to accelerate the 
     research, development, and purchase of biomedical threat 
     countermeasures. For the adjustment to take place, the 
     measure may provide no more than $890 million in new 
     mandatory BA and $575 million in outlays for fiscal year 
     2004, and $5.593 billion in new mandatory BA and outlays for 
     fiscal years 2004 through 2013.
       Section 405. Reserve Fund for Health Insurance for the 
           Uninsured
       Section 405 of the Conference Agreement retains the Senate 
     reserve fund for health insurance for the uninsured included 
     in section 214 of the Senate amendment. The reserve fund 
     permits the Chairmen of the respective Budget Committees to 
     adjust the allocation of BA and outlays to the appropriate 
     committee of jurisdiction in the House, or the Committee on 
     Finance in the Senate, for any measure 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 for from their employers). The adjustments 
     in the allocations may not exceed $28.5 billion in new BA and 
     outlays for fiscal years 2004 through 2008, and $50 billion 
     in new BA and outlays for the period of fiscal years 2004 
     through 2013.
       Section 406. Reserve Fund for Children With Special Needs
       Section 406 of the Conference Agreement retains the reserve 
     fund for children with special needs included in section 215 
     of the Senate amendment and which was accommodated in the 
     allocations in the House resolution. The reserve fund, which 
     applies in both the House and the Senate, permits the 
     appropriate Budget Committee Chairman to adjust the committee 
     allocations for the Committee on Energy and Commere in the 
     House, or the Committee on Finance in the Senate, and other 
     appropriate budgetary aggregates and allocations for reported 
     legislation (and amendments thereto, or any conference report 
     thereon) that provides states with the option to expand 
     Medicaid coverage for children with special needs, allowing 
     families of disabled children to purchase coverage under the 
     Medicaid program for such children. The adjustments in the 
     allocations may not exceed $43 million in BA and $42 million 
     in outlays for fiscal year 2004, $1.627 billion in BA and 
     $1.566 billion in outlays for the period of fiscal years 2004 
     through 2008. and $7.462 billion in BA and $7.262 billion in 
     outlays for the period of fiscal years 2004 through 2013.
       Section 411. Contingency Procedure for Surface 
           Transportation
       Section 411 of the Conference agreement establishes a 
     separate contingency procedure for the Highway Trust Fund, 
     which will be reauthorized this session of Congress. The 
     contingency procedure, which applies in both the House and 
     the Senate, permits the appropriate Budget Committee Chairman 
     to accommodate legislation providing additional highway 
     spending to the extent it is offset by additional revenues or 
     a reduction in mandatory spending in the Highway Trust Fund. 
     The procedure permits the Budget Committee Chairmen to 
     increase the 302(a) allocation of the Committee on 
     Transportation and Infrastructure in the House, or the 
     Committee on Environment and Public Works, the Committee on 
     Banking, Housing, and Urban Affairs, or the Committee on 
     Commerce, Science, and Transportation in the Senate, for 
     legislation that provides in excess of the level assumed in 
     the budget resolution but only to the extent to which it has 
     been offset by new revenue or savings in mandatory outlays. 
     The offsets must be dedicated to the Highway Trust Fund and 
     can be made in the same measure or legislation enacted 
     earlier in the 108th Congress. In view of the fact that 
     outlays are determined by obligation limits, subsection (a) 
     also permits the chairman to make a corresponding change in 
     outlays for the committee setting the obligation limits. 
     Again, legislation must have first been enacted to offset the 
     increase in contract authority.
       Section 421. Supplemental Appropriations for Fiscal Year 
           2003
       If a measure making supplemental appropriations for fiscal 
     year 2003 is enacted before May 1, 2003, the Chairmen of the 
     Committees on the Budget are permitted to adjust the 
     appropriate allocations and aggregates of budget authority 
     and outlays in the budget resolution to reflect the 
     difference between that measure and the levels assumed in 
     that resolution. The Conference Agreement reflects the 
     President's requested level of $74.7 billion.

                           BUDGET ENFORCEMENT

       Under section 301 of the Budget Act, the budget resolution 
     may include special procedures to enforce the spending and 
     revenue levels contained in the resolution and the 
     allocations found in the accompanying joint statement of 
     managers.
     House Resolution
       Section 301(c). Medicare 302(a) Allocation
       Section 301(c) creates a Medicare allocation to the Ways 
     and Means Committee and Energy and Commerce Committee. 
     Legislation changing the Medicare program must be offset in 
     the first year and the 10-year period. This allocation may be 
     increased should a reserve fund for specific Medicare 
     modernization legislation be released. Such a measure must 
     provide less than $7.5 billion in the first year, and no more 
     than $400 billion over 10 years. If a measure receiving a 
     Medicare allocation adjustment also includes budget authority 
     not directly related to Medicare modernization, that non-
     Medicare spending will be compared to the committee of 
     jurisdiction's allocation.
       Section 321. Application and Effects of Changes In 
           Allocations and Aggregates
       This section sets forth the procedures for making 
     adjustments pursuant to the reserve funds included in this 
     resolution. Subsection (a)(1) and (2) provide 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. This is 
     approximately consistent with the procedures for making 
     adjustments for various initiatives under section 314 of the 
     Congressional Budget Act. Subsection (a)(3) provides that in 
     order to make the adjustments provided for in the reserve 
     funds, the chairman of the House Budget Committee is directed 
     to insert these adjustments in the Congressional Record.
       Subsection (b) clarifies that any adjustments made under 
     any of the reserve funds in the resolution have the same 
     effect as if they were part of the original levels set forth 
     in section 101. Therefore the adjusted levels are used to 
     enforce points of order against legislation inconsistent with 
     the allocations and aggregates included in the concurrent 
     resolution on the budget.
       Subsection (c) clarifies that the House Budget Committee 
     determines the levels and estimates used to enforce points of 
     order, as is the case for enforcing budget-related points of 
     order, and the determination is made pursuant to section 312 
     of the Budget Act. This section of the Budget Act provides 
     the chairman of the Budget Committee with the authority to 
     advise the chairman of the House on the appropriate levels 
     and estimates related to legislation being considered on the 
     floor.
       Subsection (d) provides for 5-year enforcement periods. 
     Though the authorizing committees receive a 10-year 
     allocation, under Section 321 (d) of the House resolution, 
     the Budget Committee will apply the various relevant 
     provisions of the Congressional Budget Act for only the first 
     and 5-year time period.
       Section 401. Restrictions on Advance Appropriations
       Section 401 imposes a limitation on advance appropriations 
     similar to a provision included in the last several budget 
     resolutions. It does two things: (1) It limits the total 
     amount of advance appropriations; and (2) It limits the 
     accounts for which advanced appropriations may be made. It 
     establishes this procedure with regard to any advance 
     appropriation for fiscal year 2004 and any year thereafter. 
     An exception is provided for those programs specified in the 
     Joint Statement of Managers, but the total advance 
     appropriation must be lower than a specified level. The 
     section defines an `advance appropriation' as any new 
     discretionary budget authority making general appropriations 
     or

[[Page 9327]]

     continuing appropriations for fiscal year 2004 that first 
     becomes available after 2004. This limitation is enforced by 
     a point of order that may be raised against any measure 
     including an advance appropriation not falling within the 
     exception. The result of the point of order would be to 
     remove the advance appropriation, but the measure would 
     continue to be considered.
       Section 402. Compliance With Section 13301 of the Budget 
           Enforcement Act of 1990
       Section 402 provides authority to include the 
     administrative expenses related to Social Security in the 
     allocation to the Appropriations Committee. This language is 
     necessary to ensure that the Appropriations Committee retains 
     control of administrative expenses through the Congressional 
     budget process. In the 106th Congress, the Joint Leadership 
     of the House and Senate Budget Committees decided to 
     discontinue including administrative expenses in the budget 
     resolution. This change was intended to make the budget 
     resolution consistent with CBO's baseline which does not 
     include administrative expenses for Social Security. At the 
     same time, the Budget Committees believe that these expenses 
     should continue to be reflected in the 302(a) allocations to 
     the Appropriations Committee. Absent a waiver of section 
     302(a) of the Budget Act, the inclusion of these expenses in 
     the allocation is construed as violating 302(a) of the Budget 
     Act which states that the allocations must reflect the 
     discretionary amounts in the budget resolution (and arguably, 
     section 13301 of the Budget Enforcement Act, which states 
     that Social Security benefits and revenues are off-budget).
     Senate Amendment
       Section 201. Extension of supermajority enforcement
       The Senate amendment extends the 60-vote requirement for 5 
     years (until September 30, 2008), for waivers and appeals 
     with respect to those Budget Act points of order for which 
     this supermajority requirement expired on September 30, 2002 
     (and was temporarily extended through April 15, 2003 in S. 
     Res. 304, 107th Congress).
       Section 202. Discretionary spending limits in the Senate
       The Senate amendment sets out discretionary spending limits 
     for the Senate for the first two years covered by the budget 
     resolution (FY 2004 and 2005) with respect to both budget 
     authority and outlays. It also sets limits for FY 2003 
     because no FY 2003 budget resolution was ever adopted. Since 
     the advent of statutory discretionary spending limits in 
     1990, a majority of budget resolution conference reports have 
     included language dealing with ``congressional caps''.
       The Senate amendment provides that the following amounts 
     will be the discretionary spending limits:
       For fiscal year 2003: $770.860 billion in new budget 
     authority and $771.442 billion in outlays for the 
     discretionary category; $31.264 billion in outlays for the 
     highway category, and $1.436 billion in new budget authority 
     and $6.551 billion in outlays for the transit category, for a 
     total of $772.296 billion in new budget authority and 
     $809.257 billion in outlays.
       For fiscal year 2004: $788.459 billion in new budget 
     authority and $797.890 billion in outlays for the 
     discretionary category; $32.016 billion in outlays for the 
     highway category, and $2.209 billion in new budget authority 
     and $6.746 billion in outlays for the transit category, for a 
     total of $790.668 billion in new budget authority and 
     $836.652 billion in outlays.
       For fiscal year 2005: $813.597 billion in new budget 
     authority and $814.987 billion in outlays for the 
     discretionary category; $34.665 billion in outlays for the 
     highway category, and $2.544 billion in new budget authority 
     and $7.109 billion in outlays for the transit category, for a 
     total of $816.141 billion in new budget authority and 
     $856.761 billion in outlays.
       The Senate amendment also provides for a number of so-
     called cap adjustments. The cap adjustments permit the 
     Chairman of the Committee on the Budget to increase the 
     spending limit, the section 302(a) allocations to the 
     Committee on Appropriations, and any other appropriate levels 
     in the resolution if an appropriations bill provides 
     additional resources for the programs specified in the 
     adjustment. The Senate amendment provides that spending and 
     allocations may be adjusted for: (1) emergency spending, (2) 
     funding for Part B grants under the Individuals with 
     Disabilities Education Act (IDEA), and (3) highway and 
     transit programs.
       These discretionary spending limits are enforced by a 60-
     vote point of order on two fronts: (1) there will be a point 
     of order against the FY 2005 budget resolution if it exceeds 
     the limits set forth in this resolution (or against any 
     revision to the FY 2004 resolution that does so) and (2) 
     there will be a point of order against any appropriations 
     bill that causes the discretionary limits to be exceeded.
       Section 203. Restriction on advance appropriations in the 
           Senate
       The Senate amendment once again includes language limiting 
     the use of advance appropriations. This restriction was first 
     included in the FY 2001 budget resolution and was included 
     and revised in the FY 2002 resolution as well. The Senate 
     amendment continues to limit advance appropriations to an 
     annual limit of $23.158 billion with respect to both the FY 
     2004 and 2005 appropriations bills and to those programs, 
     which are listed in the statement of managers accompanying 
     the conference report on the budget resolution. The amendment 
     also continues the exception for advances with respect to the 
     Corporation for Public Broadcasting.
       The list of permissible advances is as follows:


             Accounts Identified for Advance Appropriations

     Interior
     Elk Hills
     Labor, HHS
     Employment and Training Administration
     Education for the Disadvantaged
     School Improvement
     Children and Family Services (Head Start)
     Special Education
     Vocational and Adult Education
     Treasury, Postal
     Payment to Postal Service
     Veterans', HUD
     Section 8 Renewals
       Section 204. Emergency legislation
       With respect to emergency spending, the Senate amendment 
     addresses two issues: the ability to designate spending as an 
     emergency and the restatement of the 60-vote point of order 
     in the Senate with respect to the use of that designation.
       The authority to designate spending as an ``emergency'' 
     existed as a part of the statutory discretionary spending 
     limits and the pay-as-you-go rules set out in sections 251 
     and 252 of the Balanced Budget and Emergency Deficit Control 
     Act of 1985. The purpose of the designation was to create a 
     ``safety valve'' for unexpected, emergency expenditures with 
     respect to the sequestration mechanism which served as the 
     underlying enforcement mechanism for the caps and PAYGO. With 
     the expiration of section 251 on September 30, 2002 and the 
     de facto expiration of section 252 by virtue of setting the 
     scorecard to zero for all fiscal years, the Senate amendment 
     reestablishes the authority of Congress to designate spending 
     and revenue changes as an emergency. In doing so, the 
     resolution specifies the criteria used in the definition of 
     an emergency and requires committee reports and statements of 
     managers to justify the use of emergency designations vis a 
     vis these criteria. The criteria are as follows:
       An expenditure may be designated an emergency if it is--
       (i) necessary, essential, or vital (not merely useful or 
     beneficial);
       (ii) sudden, quickly coming into being, and not building up 
     over time;
       (iii) an urgent, pressing, and compelling need requiring 
     immediate action;
       (iv) unforeseen (see below), unpredictable, and 
     unanticipated;
       Note: an emergency that is part of an aggregate level of 
     anticipated emergencies, particularly when normally estimated 
     in advance, is not unforeseen.
       If an item of discretionary spending is accompanied by an 
     emergency designation then the discretionary spending limit 
     and the allocation to the Committee on Appropriations will be 
     adjusted accordingly (as well as all other appropriate levels 
     in the resolution). If a revenue reduction or mandatory 
     spending increase is accompanied by an emergency designation, 
     then the committee allocation and the Senate's pay-go 
     scorecard will be adjusted accordingly (again, as well as all 
     other appropriate levels in the resolution).
       The Senate amendment also revises the Senate's emergency 
     designation point of order. This point of order was first 
     included in the FY 2000 budget resolution. This point of 
     order allows any member to question the use of an emergency 
     designation while the bill, amendment or conference report 
     containing the designation is before the Senate. Once the 
     point of order is made, it will require 60-votes to waive the 
     point of order and keep the designation. If the motion to 
     waive is not successful, the designation is removed from the 
     measure while the spending or revenue provision remains, 
     potentially making the measure subject to a Budget Act point 
     of order, which too would require 60-votes to overcome. The 
     removal of the designation is accomplished by the same method 
     as provided for in the Byrd Rule (section 313 of the 
     Congressional Budget Act).
       The language in the Senate amendment differs from past 
     resolutions only to the extent that the references to 
     sections 251 and 252 of the BBEDCA have been replaced with a 
     cross reference to subsection (a) of this section, which 
     provides the authority for the use of the designation. In 
     addition, spending for homeland security programs would be 
     exempt from the point of order as has been the case with 
     defense spending.
       Section 205. Pay-as-you-go point of order in the Senate
       The Senate amendment revises and extends the Senate's pay-
     as-you-go point of order. The original pay-as-you-go point of 
     order first appeared in the FY 1994 budget resolution. Its 
     most recent incarnation expired in its entirety on September 
     30, 2002. The point of order was revised and extended

[[Page 9328]]

     in S. Res. 304 (107th Congress) through April 15, 2003. S. 
     Res 304 included a new provision within the pay-as-you-go 
     rule making the rule applicable to mandatory spending in 
     appropriation bills in order to prevent the exploitation of 
     the fact that there were no limits on discretionary spending 
     for FY 2003 due to the expiration of the discretionary 
     spending limits and the lack of a FY 2003 budget resolution.
       The pay-as-you-go point of order included in the Senate 
     amendment does not retain the expanded application to 
     appropriation bills set out in S. Res. 304. Rather it 
     resembles the previous versions of the rule with one specific 
     exception: it will not apply to any spending or revenue 
     changes that result from the implementation of the 
     reconciliation instruction set out in section 104 of the 
     Senate amendment (up to $350 billion). It will nonetheless 
     apply to all other mandatory spending and revenue changes 
     provided for in the Senate amendment.
       Section 221. Authority to make adjustments for changes in 
           concepts and definitions
       The Senate amendment provides that upon enactment of 
     legislation that changes the nature of funding of an existing 
     program from discretionary to mandatory (or vice versa), the 
     Chairman of the Committee on the Budget will immediately 
     adjust the levels in this resolution (including the 
     discretionary spending limits) to reflect such a change.
       Section 222. Application and effect of changes in 
           allocations and aggregates
       The Senate amendment contains language identical to section 
     221 of the FY 2002 budget resolution, which makes clear when 
     adjustments made under Title II of the budget resolution will 
     take effect.
       Section 223. Exercise of Rulemaking Powers
       The Senate amendment includes language identical to section 
     222 of the FY 2002 budget resolution which simply states 
     Congress' authority to legislate rule of procedure for either 
     chamber.
     Conference Agreement
       Section 501. Restrictions on advance appropriations
       Section 501 of the Conference Agreement retains the 
     language of both section 401 of the House resolution and 
     section 203 of the Senate amendment.
       Subsection (a) applies to the House; it limits which 
     programs may receive an advance appropriation and an overall 
     amount of advanced appropriations. Advance appropriations may 
     be provided for the accounts in the appropriation bills 
     listed below, provided that their sum does not exceed $23.158 
     billion in budget authority. Advance appropriations are 
     defined as any discretionary budget authority in a measure 
     for fiscal year 2004 which first becomes available in a year 
     after that fiscal year. This limitation is enforced by a 
     point of order that may be raised against any measure 
     including an advance appropriation not falling within the 
     exception. The result of the point of order would be to 
     remove the advance appropriation, but the measure would 
     continue to be considered.


            Accounts Identified For Advanced Appropriations

          Part A: Advanced Appropriations for Fiscal Year 2005

     Interior Appropriations
     Elk Hills (89 5428 02 271)
     Labor, Health and Human Services, Education Appropriations
     Employment and Training administration (16 0174 01 504)
     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 Appropriations
     Payment to Postal Service (18 1001 01 372)
     Veterans, Housing and Urban Development Appropriations
     Section 8 Renewals (86 0319 01 604)

          Part B: Advanced Appropriations for Fiscal Year 2006

     Labor, Health and Human Services, Education Appropriations
     Corporation for Public Broadcasting (20 0151 01 503)

       Subsection (b) applies in the Senate and is virtually 
     identical to the language in section 203 of the Senate 
     amendment and sets an overall limit of $23.158 billion per 
     year. The Conference Agreement modifies the Senate language 
     only to the extent that the explicit exception for the 
     Corporation for Public Broadcasting is moved from the text of 
     the resolution to the list set out below. A conforming change 
     is made to the definition of an advance appropriation to make 
     clear that its inclusion on the list below, covers the 
     advance for both the 1st and 2nd years.
       The list of permissible advances is as follows:


             Accounts Identified for Advance Appropriations

     Interior
     Elk Hills (89 5428 02 271)
     Labor, HHS
     Corporation for Public Broadcasting (20 0151 01 503)
     Employment and Training Administration (16 0174 01 504)
     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, Postal
     Payment to Postal Service (18 1001 01 372)
     Veterans', HUD
     Section 8 Renewals (86 0319 01 604)
       Section 502. Emergency legislation
       Section 502 the House recedes to the Senate on its regimen 
     relating to the budgetary treatment of emergencies. With some 
     modifications, it extends to the House the authority of 
     Congress to designated spending-related legislation as an 
     emergency for purposes of budget enforcement, adopts criteria 
     for emergency spending, and requires committees to justify 
     emergency-designated provisions. The point of order in the 
     Senate amendment, however, continues to apply only to the 
     Senate.
       Section 502(a) of the Conference Agreement includes a 
     statement of intent that, in the absence of the extension of 
     the discretionary spending limits and PAYGO requirements 
     under the Balanced Budget and Emergency Deficit Control Act 
     of 1985, the section enables Congress to designate provisions 
     of legislation as emergencies. The House conferees note that 
     this regimen is similar to H.R. 853, which was reported by 
     the House Budget Committee in the 106th Congress.
       Subsection (b) sets forth the procedure in the House 
     governing emergencies designated spending (or receipts). It 
     extends the automatic exemption for emergency-designated 
     spending (and receipts) from the budget resolution, which was 
     in effect until the statutory discretionary spending limits 
     and PAYGO requirements expired last September. If an urgent 
     need arises after the budget resolution is adopted, the 
     committee of jurisdiction could designate the emergency-
     related provisions as an emergency requirement pursuant to 
     this section.
       Instead of adjusting the allocations and budget aggregates 
     by the designated amount, subsection (b) provides that 
     spending (or receipts) resulting from such measure would not 
     be counted for purposes of determining whether the measure 
     complies with the budget resolution or related requirements 
     under the Budget Act of 1974. The conferees note that this is 
     consistent with congressional scoring conventions prior to 
     the Balanced Budget Act of 1997. Assuming the measure is 
     otherwise in compliance with the budget resolution, it would 
     not be subject to a point of order under sections 302(f), 
     303(a), 311(a) or 401 of the Congressional Budget Act of 
     1974. The same would be true with a violation of * * *
       In subsection (b)(2), committees reporting legislation that 
     includes an emergency designation are required to include in 
     the accompanying report, or the conference committee in the 
     joint statement of managers, a statement justifying the 
     emergency designation on the basis of the following criteria:
       Necessary, essential, or vital;
       Sudden, quickly coming into being and building up over 
     time;
       Urgent, pressing and completing need requiring immediate 
     action;
       Unforeseen unpredictable and anticipated; and
       Not permanent, temporary in nature.
       The conferees note that this definition was originally 
     developed by the previous Bush Administration as part of an 
     OMB Circular (A-11) on the preparation and submission of 
     budget estimates.
       Section 502(c) of the Conference Agreement retains the 
     language of section 204 of the Senate amendment (which 
     provides the authority to use an emergency designation and 
     creates a supermajority point of order to police the use of 
     the designation) with a number of modifications.
       The Conference Agreement strengthens the requirement that 
     committees in both Houses provide a justification for use of 
     the designation vis a vis the criteria listed in subsection 
     (b)(2) and (c)(3).
       The point of order with respect to the use of the 
     designation applies only in the Senate and contains some 
     technical changes with respect to the execution of the point 
     of order that were recommended by the Parliamentarian of the 
     Senate. It is the view of the Conferees that the exception 
     for ``homeland security'' spending could not be included at 
     this time due to the lack of consensus between the Congress 
     and the Executive branch as to exactly what programs, 
     projects or activities should qualify for the exception. It 
     may be possible to do so in the future.
       Section 503. Extension of supermajority enforcement
       Section 503 of the Conference Agreement retains the 
     language of section 201 of the

[[Page 9329]]

     Senate amendment extending 60-vote enforcement for five 
     years.
       Section 504. Discretionary spending limits in the Senate
       Section 504 of the Conference Agreement retains the 
     language of section 202 of the Senate amendment which sets 
     forth discretionary spending limits in the Senate only for 
     fiscal years 2003, 2004 and 2005 with a number of 
     modifications. The limits BA for FY 2003 now include the 
     amounts included in the supplemental appropriations bill that 
     is being considered at the same time as the conference on the 
     budget resolution, with outlays reflected accordingly.
       The Conference Agreement provides that the following 
     amounts will be the discretionary spending limits in the 
     Senate:
       For fiscal year 2003: $839.118 billion in new budget 
     authority and $805.146 billion in outlays for the 
     discretionary category; $31.264 billion in outlays for the 
     highway category, and $1.436 billion in new budget authority 
     and $6.551 billion in outlays for the transit category, for a 
     total of $840.554 billion in new budget authority and 
     $842.961 billion in outlays.
       For fiscal year 2004: $782.999 billion in new budget 
     authority and $822.563 billion in outlays for the 
     discretionary category; $31.555 billion in outlays for the 
     highway category, and $1.461 billion in new budget authority 
     and $6.634 billion in outlays for the transit category, for a 
     total of $784.460 billion in new budget authority and 
     $860.752 billion in outlays.
       For fiscal year 2005: $812.598 billion in new budget 
     authority and $817.883 billion in outlays for the 
     discretionary category; $33.393 billion in outlays for the 
     highway category, and $1.488 billion in new budget authority 
     and $6.726 billion in outlays for the transit category, for a 
     total of $814.086 billion in new budget authority and 
     $858.002 billion in outlays.
       The Conference Agreement also provides that these limits 
     may be adjusted for emergency spending (pursuant to section 
     502) and for additional resources for transportation 
     (pursuant to section 411).
       Section 505. Pay-as-you-go point of order in the Senate
       The Senate pay-as-you-go point of order included in the 
     Conference Agreement reflects the language in the Senate-
     reported resolution and will apply on a post-budget 
     resolution policy basis; that is, it will not apply to direct 
     spending or revenue changes assumed in this resolution. To 
     accomplish this, a scorecard will be maintained by the 
     Chairman of the Committee on the Budget that will set out the 
     total level of change to the deficit assumed by this budget 
     resolution Conference Agreement. Subsequent legislation will 
     be measured against these balances.
       The following table shows the total of revenue and direct 
     spending policy assumptions in the Conference Agreement on 
     the budget resolution:

                           PAY GO SCORE CARD

2003.............................................................64.789
2004............................................................155.946
2005............................................................149.364
2006............................................................133.611
2007............................................................119.017
2008............................................................121.625
2009.............................................................85.416
2010.............................................................87.650
2011............................................................218.726
2012............................................................302.840
2013............................................................316.973
2004-08.........................................................679.563
2004-13........................................................1691.168
       Section 506. Compliance with Section 13301 of the Budget 
           Enforcement Act of 1990
       Section 506 retains the language of section 402 of the 
     House resolution regarding the budgetary treatment in the 
     House of discretionary spending for the Social Security 
     Administration.
       Section 507. Application and Effect of Changes in 
           Allocations and Aggregates
       Section 507 of the Conference Agreement retains the 
     language of section 321 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. 
     The section also makes clear that, for the purpose of 
     enforcing provisions of the Congressional Budget Act in the 
     House, legislation must be within a reporting committee's 
     allocation for fiscal year 2004 and the period of fiscal 
     years 2004 through 2008.
       Section 508. Adjustments to Reflect Changes in Concepts and 
           Definitions
       Section 508 of the Conference Agreement retains the 
     language of section 221 of the Senate amendment and applies 
     it to the House. It provides that upon enactment of 
     legislation that changes funding of an existing program from 
     discretionary to mandatory (or vice versa), the Chairman of 
     the Committee on the Budget will immediately adjust the 
     levels in this resolution (including the discretionary 
     spending limits) to reflect such a change.

                              ALLOCATIONS

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

   ALLOCATION OF SPENDING AUTHORITY TO HOUSE APPROPRIATIONS COMMITTEE
                        [In millions of dollars]
------------------------------------------------------------------------
                                                    2003         2004
------------------------------------------------------------------------
Discretionary Action:
    BA........................................      840,554      784,460
    OT........................................      842,961      860,752
Current Law Mandatory:
    BA........................................      391,344      426,127
    OT........................................      378,717      409,870
------------------------------------------------------------------------


                                                         ALLOCATIONS OF SPENDING AUTHORITY TO HOUSE COMMITTEES OTHER THAN APPROPRIATIONS
                                                                                      [Dollars in millions]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
            Fiscal year                 2003        2004        2005        2006        2007        2008        2009        2010        2011        2012        2013       2004-08     2004-13
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Agriculture Committee:
Current Law
  BA...............................      19,840      20,509      22,792      22,501      21,709      20,518       5,720       5,897       6,014       6,028       5,991     108,029      137,679
  OT...............................      15,480      16,561      19,201      19,449      18,467      17,078       2,734       3,151       3,429       3,754       3,712      90,756      107,536
Reauthorizations:
  BA...............................  ..........  ..........  ..........  ..........  ..........      26,803      43,206      43,226      43,260      43,405      43,736      26,803      243,636
  OT...............................  ..........  ..........  ..........  ..........  ..........      25,586      43,169      43,188      43,221      43,367      43,696      25,586      242,227
Total:
  BA...............................      19,840      20,509      22,792      22,501      21,709      47,321      48,926      49,123      49,274      49,433      49,727     134,832      381,315
  OT...............................      15,480      16,561      19,201      19,449      18,467      42,664      45,903      46,339      46,650      47,121      47,408     116,342      349,763
Armed Services Committee:
Current Law:
  BA...............................      74,000      77,493      80,663      83,445      86,350      89,324      92,292      95,417      98,608     101,899     105,348     417,275      910,839
  OT...............................      73,476      77,295      80,459      83,291      86,195      89,166      92,132      95,253      98,438     101,723     105,167     416,406      909,119
Discretionary Action:
  BA...............................  ..........          70  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........          70           70
  OT...............................  ..........          34          32           4  ..........  ..........  ..........  ..........  ..........  ..........  ..........          70           70
Total:
  BA...............................      74,000      77,563      80,663      83,445      86,350      89,324      92,292      95,417      98,608     101,899     105,348     417,345      910,909
  OT...............................      73,476      77,329      80,491      83,295      86,195      89,166      92,132      95,253      98,438     101,723     105,167     416,476      909,189
Committee on Education and the Workforce:
Current Law:
  BA...............................       5,069       4,809       5,666       6,357       6,656       6,887       7,091       7,273       7,452       7,630       7,885      30,375       67,706
  OT...............................       4,516       4,121       5,053       5,637       5,942       6,212       6,401       6,572       6,733       6,897       7,138      26,965       60,706
Discretionary Action:
  BA...............................         130          39          38          38          43          43          42          45          44          44          43         201          419
  OT...............................         115          47          47          47          52          52          52          57          57          57          57         245          525
Reauthorizations:
  BA...............................  ..........         393         404         415       3,503       3,583       3,667       3,664       3,843       3,933       4,027       8,298       27,432
  OT...............................  ..........         330         402         413       2,422       3,419       3,629       3,728       3,816       3,906       3,999       6,986       26,064
Total:
  BA...............................       5,199       5,241       6,108       6,810      10,202      10,513      10,800      10,982      11,339      11,607      11,955      38,874       95,557
  OT...............................       4,631       4,498       5,502       6,097       8,416       9,683      10,082      10,357      10,606      10,860      11,194      34,196       87,295
Energy and Commerce Committee:
Current Law:
  BA...............................      10,433      10,710      11,718      11,824      12,845       7,807       7,773       7,882       8,009       8,099       8,234      54,904       94,901
  OT...............................      11,987      12,071      11,900      12,003      12,455      10,289       8,154       7,719       7,615       7,732       7,849      58,718       97,787
Discretionary Action:
  BA...............................  ..........        -170        -480        -910       1,250         749      -1,996      -2,161      -2,296      -4,780      -4,904         439      -15,698
  OT...............................  ..........        -170        -480        -910       1,250         749      -1,996      -2,161      -2,296      -4,780      -4,904         439      -15,698
Reauthorizations:
  BA...............................  ..........  ..........  ..........  ..........  ..........       5,040       5,040       5,040       5,040       5,040       5,040       5,040       30,240

[[Page 9330]]

 
  OT...............................  ..........  ..........  ..........  ..........  ..........       2,345       4,470       5,130       5,446       5,465       5,443       2,345       28,299
Total:
  BA...............................      10,433      10,540      11,238      10,914      14,095      13,596      10,817      10,761      10,753       8,359       8,370      60,383      109,443
  OT...............................      11,987      11,901      11,420      11,093      13,705      13,383      10,628      10,688      10,765       8,417       8,388      61,502      110,388
Financial Services Committee:
Current Law:
  BA...............................       6,100       7,406       8,430       8,365       7,702       7,558       7,456       7,568       7,795       7,938       8,170      39,461       78,388
  OT...............................       1,951       2,139       2,740       1,921         894         650         435         170        -228        -622        -619       8,344        7,480
Discretionary Action:
  BA...............................  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ...........
  OT...............................  ..........         375         525         575          50        -275        -275        -300        -300        -200  ..........       1,250          175
Total:
  BA...............................       6,100       7,406       8,430       8,365       7,702       7,558       7,456       7,568       7,795       7,938       8,170      39,461       78,388
  OT...............................       1,951       2,514       3,265       2,496         944         375         160        -130        -528        -822        -619       9,594        7,655
Government Reform Committee:
Current Law:
  BA...............................      66,645      68,243      71,550      74,376      77,325      80,696      84,320      88,242      92,163      95,997      99,999     372,190      832,911
  OT...............................      65,140      66,710      70,071      72,959      75,902      79,272      82,863      86,817      90,798      94,705      98,875     364,914      818,972
Discretionary Action:
  BA...............................  ..........          -1  ..........          -1  ..........          -1          -1          -1          -1          -1          -1          -3           -8
  OT...............................  ..........  ..........  ..........  ..........          -1  ..........          -1          -1          -1          -1          -1          -1           -6
Total:
  BA...............................      66,645      68,242      71,550      74,375      77,325      80,695      84,319      88,241      92,162      95,996      99,998     372,187      832,903
  OT...............................      65,140      66,710      70,071      72,959      75,901      79,272      82,862      86,816      90,797      94,704      98,874     364,913      818,966
Committee on House Administration:
Current Law:
  BA...............................          82          82          83          82          81          80          79          79          79          79          79         408          803
  OT...............................          85         246          38          23          54         213          79          61          55         208          48         574        1,025
International Relations Committee:
Current Law:
  BA...............................      13,633       9,825      11,398      12,424      12,665      12,912      13,162      13,417      13,679      13,911      14,147      59,224      127,540
  OT...............................      11,441      11,746      10,704      10,749      11,052      11,374      11,680      11,953      12,231      12,503      12,810      55,625      116,802
Resources Committee:
Current Law:
  BA...............................       3,832       3,840       3,676       3,740       3,739       3,050       2,981       3,039       3,112       3,196       3,272      18,045       33,645
  OT...............................       3,412       3,437       3,200       3,540       3,585       3,145       2,969       2,912       2,965       3,040       3,098      16,907       31,891
Discretionary Action:
  BA...............................           7          24         118         124         126         130         133         137         139         143         146         522        1,220
  OT...............................           7          24           9          76         109         124         127         129         132         134         139         342        1,003
Total:
  BA...............................       3,839       3,864       3,794       3,864       3,865       3,180       3,114       3,176       3,251       3,339       3,418      18,567       34,865
  OT...............................       3,419       3,461       3,209       3,616       3,694       3,269       3,096       3,041       3,097       3,174       3,237      17,249       32,894
Judiciary Committee:
Current Law:
  BA...............................       5,914       6,942       5,749       5,783       5,862       5,959       6,154       6,263       6,366       6,466       6,582      30,295       62,126
  OT...............................       5,870       6,082       6,101       5,985       5,838       5,888       6,065       6,137       6,218       6,306       6,418      29,894       61,038
Discretionary Action:
  BA...............................  ..........          19          19          19          19          19          19          19          19          19          19          95          190
  OT...............................  ..........          19          19          19          19          19          19          19          19          19          19          95          190
Total:
  BA...............................       5,914       6,961       5,768       5,802       5,881       5,978       6,173       6,282       6,385       6,485       6,601      30,390       62,316
  OT...............................       5,870       6,101       6,120       6,004       5,857       5,907       6,084       6,156       6,237       6,325       6,437      29,989       61,228
Transportation and Infrastructure Committee:
Current Law:
  BA...............................      69,531       8,038      14,449      13,581      13,345      13,583      13,804      14,129      14,407      14,798      15,284      62,996      135,418
  OT...............................      30,724      13,244      14,935      13,854      13,503      13,642      13,835      14,136      14,403      14,793      15,283      69,178      141,628
Discretionary Action:
  BA...............................  ..........       9,256       5,890       6,868       8,942      10,178      10,965       9,983      10,000      10,019      10,038      41,134       92,139
  OT...............................  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ..........  ...........
Reauthorizations:
  BA...............................  ..........      40,231      40,231      40,231      40,231      40,231      40,231      40,231      40,231      40,231      40,231     201,155      402,310
  OT...............................  ..........         173         441         550         588         613         626         639         639         639         639       2,365        5,547
Total:
  BA...............................      69,531      57,525      60,570      60,680      62,518      63,992      65,000      64,343      64,638      65,048      65,553     305,285      629,867
  OT...............................      30,724      13,417      15,376      14,404      14,091      14,255      14,461      14,775      15,042      15,432      15,922      71,543      147,175
Science Committee:
Current Law:
  BA...............................         130          55          56          57          59          60          61          63          65          67          68         287          611
  OT...............................         122         123         120          90          72          60          60          62          64          65          67         465          783
Small Business Committee:
Current Law:
  BA...............................         864           3           1           1           1  ..........  ..........  ..........  ..........  ..........  ..........           6            6
  OT...............................         792          -6  ..........  ..........  ..........          -1          -1          -1          -1          -1          -1          -7          -12
Veterans' Affairs Committee:
Current Law:
  BA...............................       1,171       1,311       1,297       1,310       1,319       1,324       1,310       1,291       1,254       1,207       1,158       6,561       12,781
  OT...............................       1,042       1,217       1,228       1,250       1,262       1,270       1,262       1,250       1,224       1,185       1,142       6,227       12,290
Reauthorizations:
  BA...............................  ..........         429       1,129       1,766       2,254       3,080       3,791       4,540       5,657       5,566       6,750       8,658       34,962
  OT...............................  ..........         419       1,129       1,746       2,231       3,072       3,773       4,481       5,636       5,505       6,688       8,597       34,680
Total:
  BA...............................       1,171       1,740       2,426       3,076       3,573       4,404       5,101       5,831       6,911       6,773       7,908      15,219       47,743
  OT...............................       1,042       1,636       2,357       2,996       3,493       4,342       5,035       5,731       6,860       6,690       7,830      14,824       46,970
Ways and Means Committee:
Current Law:
  BA...............................     728,516     728,732     792,780     855,434     906,045     955,712   1,009,838   1,064,521   1,123,340   1,164,783   1,214,151   4,238,703    9,815,336
  OT...............................     731,399     732,853     796,856     852,561     906,718     956,342   1,010,200   1,065,527   1,127,592   1,162,020   1,215,640   4,245,330    9,826,309
Discretionary Action:
  BA...............................       4,444       1,334       4,458       3,862       3,343       2,608       2,145         168      -2,219       9,076       8,323      15,605       33,098
  OT...............................       4,380         762       4,486       3,890       3,483       2,781       2,133         221      -2,205       9,087       8,327      15,402       32,965
Reauthorizations:
  BA...............................       3,417      16,889      16,889      16,889      16,889      17,788      17,808      17,829      17,851      17,873      17,897      85,344      174,602
  OT...............................       3,025      15,000      17,250      17,700      17,300      17,298      17,747      17,819      17,840      17,863      17,886      84,548      173,703
Total:
  BA...............................     736,377     746,955     814,127     876,185     926,277     976,108   1,029,791   1,082,518   1,138,972   1,191,732   1,240,371   4,339,652   10,023,036
  OT...............................     738,804     748,615     818,592     874,151     927,501     976,421   1,030,080   1,083,567   1,143,227   1,188,970   1,241,853   4,345,280   10,032,977
Medicare:
Discretionary Action (Reserve Fund):
  BA...............................  ..........       7,000          na          na          na          na          na          na          na          na          na          na      400,000
  OT...............................  ..........       7,000          na          na          na          na          na          na          na          na          na          na      400,000
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 9331]]


  SENATE COMMITTEE BUDGET AUTHORITY AND OUTLAY ALLOCATIONS PURSUANT TO SECTION 302 OF THE CONGRESSIONAL BUDGET
                                           ACT: BUDGET YEAR TOTAL 2003
                                              [Millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                  Direct spending        Entitlements funded in
                                                                   jurisdiction           annual appropriations
                                                           ----------------------------           acts
                         Committee                                                     -------------------------
                                                               Budget        Outlays       Budget
                                                              authority                  authority     Outlays
----------------------------------------------------------------------------------------------------------------
Appropriations:
General purpose discretionary.............................      839,118       805,146   ...........  ...........
    Memo:
        On-budget.........................................      835,306       801,308   ...........  ...........
        Off-budget........................................        3,812         3,838   ...........  ...........
    Highways..............................................  ............       31,264   ...........  ...........
    Mass transit..........................................        1,436         6,551   ...........  ...........
    Mandatory.............................................      391,344       378,717   ...........  ...........
                                                           -----------------------------------------------------
      Total...............................................    1,231,898     1,221,678   ...........  ...........
                                                           =====================================================
Agriculture, Nutrition, and Forestry......................       19,359        14,964        52,763       40,712
Armed Services............................................       73,996        73,473           275          233
Banking, Housing and Urban Affairs........................       12,558         1,599           118           16
Commerce, Science and Transportation......................       10,590         7,255           885          814
Energy and Natural Resources..............................        2,879         2,539            48           63
Environment and Public Works..............................       30,830         2,372   ...........  ...........
Finance...................................................      759,763       763,470       286,512      286,509
Foreign Relations.........................................       13,595        11,366           183          183
Government Affairs........................................       66,931        65,426        16,564       16,564
Judiciary.................................................        6,509         6,441           534          527
Health, Education, Labor and Pensions.....................        5,328         4,805         2,814        2,801
Rules and Administration..................................           82            85           104          103
Intelligence..............................................  ............  ............          223          223
Veterans' Affairs.........................................        1,171         1,109        30,321       29,969
Indian Affairs............................................          456           444   ...........  ...........
Small Business............................................          864           769   ...........  ...........
Unassigned to Committee...................................     (371,644)     (358,647)  ...........  ...........
                                                           -----------------------------------------------------
      Total...............................................    1,865,165     1,819,148       391,344      378,717
----------------------------------------------------------------------------------------------------------------


  SENATE COMMITTEE BUDGET AUTHORITY AND OUTLAY ALLOCATIONS PURSUANT TO SECTION 302 OF THE CONGRESSIONAL BUDGET
                                           ACT: BUDGET YEAR TOTAL 2004
                                              [Millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                  Direct spending        Entitlements funded in
                                                                   jurisdiction           annual appropriations
                                                           ----------------------------           acts
                         Committee                                                     -------------------------
                                                               Budget        Outlays       Budget
                                                              authority                  authority     Outlays
----------------------------------------------------------------------------------------------------------------
Appropriations:
General purpose discretionary.............................      782,999       822,563   ...........  ...........
    Memo:
        On-budget.........................................      778,742       818,356   ...........  ...........
        Off-budget........................................        4,257         4,207   ...........  ...........
    Highways..............................................  ............       31,555   ...........  ...........
    Mass transit..........................................        1,461         6,634   ...........  ...........
    Mandatory.............................................      426,949       410,619   ...........  ...........
                                                           -----------------------------------------------------
      Total...............................................    1,211,409     1,271,371   ...........  ...........
                                                           =====================================================
Agriculture, Nutrition, and Forestry......................       20,801        16,826        55,536       39,472
Armed Services............................................       77,560        77,326           357          376
Banking, Housing and Urban Affairs........................       13,946         2,251           120           12
Commerce, Science and Transportation......................       10,908         6,518           827          843
Energy and Natural Resources..............................        2,669         2,390            64           70
Environment and Public Works..............................       35,654         2,312   ...........  ...........
Finance...................................................      757,606       760,928       315,856      315,780
Foreign Relations.........................................        9,787        11,689           179          179
Government Affairs........................................       68,533        67,000        17,362       17,362
Judiciary.................................................        7,883         7,230           511          523
Health, Education, Labor and Pensions.....................        5,232         4,439         2,888        2,872
Rules and Administration..................................           82           246           109          109
Intelligence..............................................  ............  ............          226          226
Veterans' Affairs.........................................        1,311         1,260        32,914       32,795
Indian Affairs............................................          475           472   ...........  ...........
Small Business............................................            3           (23)  ...........  ...........
Unassigned to Committee...................................     (371,280)     (355,315)  ...........  ...........
                                                           -----------------------------------------------------
      Total...............................................    1,852,579     1,876,920       426,949      410,619
----------------------------------------------------------------------------------------------------------------


  SENATE COMMITTEE BUDGET AUTHORITY AND OUTLAY ALLOCATIONS PURSUANT TO SECTION 302 OF THE CONGRESSIONAL BUDGET
                                          ACT, 5-YEAR TOTAL: 2004-2008
                                              [Millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Direct spending         Entitlements funded in
                                                                   jurisdiction          annual appropriations
                                                           ---------------------------            acts
                         Committee                                                    --------------------------
                                                               Budget       Outlays       Budget
                                                             authority                  authority      Outlays
----------------------------------------------------------------------------------------------------------------
Agriculture...............................................      109,330       91,951       288,857      206,256
Armed Services............................................      417,330      416,461         2,992        3,047
Banking, Housing and Urban Affairs........................       71,267        7,231           626         (104)
Commerce, Science, and Transportation.....................       60,492       38,575         4,538        4,541
Energy and Natural Resources..............................       11,991       10,905           320          333
Environment and Public Works..............................      190,317       10,561   ...........  ............
Finance...................................................    4,501,491    4,510,575     1,824,189    1,823,275
Foreign Relations.........................................       59,034       55,412           876          876
Governmental Affairs......................................      372,971      365,695        93,701       93,701
Judiciary.................................................       25,585       25,756         2,629        2,640
Health, Education, Labor, and Pensions....................       32,738       29,056        15,226       15,126
Rules and Administration..................................          408          574           588          588
Intelligence..............................................  ...........  ............        1,230        1,230
Veterans' Affairs.........................................        6,561        6,382       176,815      176,196
Indian Affairs............................................        2,587        2,569   ...........  ............

[[Page 9332]]

 
Small Business............................................            6          (59)  ...........  ............
----------------------------------------------------------------------------------------------------------------


  SENATE COMMITTEE BUDGET AUTHORITY AND OUTLAY ALLOCATIONS PURSUANT TO SECTION 302 OF THE CONGRESSIONAL BUDGET
                                          ACT, 10-YEAR TOTAL: 2004-2013
                                              [Millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Direct spending         Entitlements funded in
                                                                   jurisdiction          annual appropriations
                                                           ---------------------------            acts
                         Committee                                                    --------------------------
                                                               Budget       Outlays       Budget
                                                             authority                  authority      Outlays
----------------------------------------------------------------------------------------------------------------
Agriculture...............................................      209,130      178,892       600,618      446,118
Armed Services............................................      910,879      909,159         7,129        7,273
Banking, Housing and Urban Affairs........................      141,433        1,859         1,318         (176)
Commerce, Science, and Transportation.....................      113,446       69,687        10,252       10,232
Energy and Natural Resources..............................       22,263       20,458           640          653
Environment and Public Works..............................      393,698       19,403   ...........  ............
Finance...................................................   10,593,061   10,608,189     4,487,111    4,485,223
Foreign Relations.........................................      127,160      116,399         1,733        1,733
Governmental Affairs......................................      833,756      819,817       206,453      206,453
Judiciary.................................................       42,068       41,692         5,459        5,455
Health, Education, Labor, and Pensions....................       71,126       64,104        32,601       32,468
Rules and Administration..................................          803        1,025         1,309        1,309
Intelligence..............................................  ...........  ............        2,648        2,648
Veterans' Affairs.........................................       12,781       12,501       373,770      372,651
Indian Affairs............................................        5,805        5,765   ...........  ............
Small Business............................................            6          (76)  ...........  ............
----------------------------------------------------------------------------------------------------------------

                          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 [CBO] and presented in CBO's 
     ``The Budget and Economic Outlook: Fiscal Years 2004-2013'' 
     (January 2003).
       House Resolution.--CBO's economic assumptions were used.
       Senate Amendment.--CBO's economic assumptions were used.
       Conference Agreement.--CBO's economic assumptions were 
     used.

                                                        ECONOMIC ASSUMPTIONS OF BUDGET RESOLUTION
                                                               [Calendar years 2003-2013]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                   2003    2004    2005    2006    2007    2008    2009    2010    2011    2012    2013
--------------------------------------------------------------------------------------------------------------------------------------------------------
Real GDP (percentage change year over year):....................    2.5     3.6     3.4     3.3     3.2     3.1     3.0     2.9     2.6     2.5     2.7
GDP Price Index (percentage change year over year):.............    1.6     1.7     2.0     2.1     2.1     2.2     2.2     2.2     2.2     2.2     2.2
Consumer Price Index (percentage change year over year):........    2.3     2.2     2.4     2.5     2.5     2.5     2.5     2.5     2.5     2.5     2.5
Unemployment Rate (percent):....................................    5.9     5.7     5.4     5.3     5.2     5.2     5.2     5.2     5.2     5.2     5.2
3-month Treasury Bill Rate (percent):...........................    1.4     3.5     4.8     4.9     4.9     4.9     4.9     4.9     4.9     4.9     4.9
10-year Treasury Note Rate (percent):...........................    4.4     5.2     5.7     5.8     5.8     5.8     5.8     5.8     5.8     5.8     5.8
--------------------------------------------------------------------------------------------------------------------------------------------------------
Source: CBO.

                              PUBLIC DEBT

       The adoption of this Conference Agreement by the two Houses 
     would result in the engrossment of a House Joint Resolution 
     adjusting the level of the statutory limit on the public debt 
     pursuant to House Rule XXVII. In consonance with clause 3 of 
     that rule, the conferees contemplate a joint resolution of 
     the following form:
       ``Resolved, by the Senate and the House of Representatives 
     of the United States of America in Congress assembled, That 
     subsection (b) of section 3101 of title 31, United States 
     Code, is amended by striking out the dollar limitation 
     contained in such subsection and inserting in lieu thereof 
     $7,384,000,000,000.''
       If the joint resolution is enacted to raise the debt limit 
     to the level contemplated by this conference agreement, the 
     limit will be increased from $6.4 trillion to $7.384 
     trillion.
       Legislative jurisdiction over the public debt remains with 
     the Committee on Ways and Means. The debt rule does not 
     preclude that committee from originating public debt limit 
     bills whenever necessary.

                            OTHER PROVISIONS

       The Senate amendment included 4 separate sections dealing 
     with various reserve funds and or adjustments that have not 
     been included in this Conference Agreement. These provisions 
     are discussed below.
       The Agreement does not include any language with respect to 
     section 211 of the Senate amendment which provided an 
     adjustment for Part B grant program under the Individuals 
     with Disabilities Education Act. Additional funding for this 
     program is assumed within the functional levels and 
     discretionary spending limits set out in the Conference 
     Agreement.
       The Agreement also does not include any language with 
     respect to section 218 of the Senate amendment which provided 
     a reserve for the State grant program which is funded through 
     the Land and Water conservation fund. The section 218 
     language was proposed only in conjunction with a 
     reconciliation instruction to the Senate Committee on Energy 
     and Natural Resources designed to facilitate exploration of 
     the Arctic National Wildlife Refuge. This Conference 
     Agreement does not include any such instruction, thus the 
     reserve fund has become irrelevant.
       The Agreement does not include any language with respect to 
     section 319 of the Senate amendment which purported to 
     provide a reserve fund to strengthen Social Security. As 
     discussed above, the language was superfluous and thus was 
     not adopted by the conferees.
       The Agreement does not include any language with respect to 
     section 329 of the Senate amendment which purported to create 
     a $100 billion reserve for the war in Iraq and subsequent 
     reconstruction. Again the language was superfluous and has in 
     fact been superceded by the President's request and Congress' 
     action on a FY 2003 supplemental appropriations bill for just 
     this purpose.

                           SENSES OF CONGRESS

     House Resolution
       The House Resolution did not include any Senses of the 
     House or of Congress.
     Senate Amendment
       The Senate amendment contains twenty-seven ``Sense of the 
     Senate'' provisions that were adopted either during the 
     markup or during consideration on the Senate floor. Two other 
     provisions calling for reserve funds were also adopted and 
     included in Title III of the Senate amendment. They more 
     appropriately should have appeared in Title II with other 
     reserve funds and adjustments. These are non-binding 
     statements.
       Section 301. Sense of the Senate on Federal employee pay.
       Section 302. Sense of the Senate on Tribal colleges and 
     universities.
       Section 303. Sense of the Senate regarding the 504 small 
     business credit program.
       Section 304. Sense of the Senate regarding Pell Grants.
       Section 305. Sense of the Senate regarding the National 
     Guard.
       Section 306. Sense of the Senate regarding weapons of mass 
     destruction civil support teams.

[[Page 9333]]

       Section 307. Sense of the Senate on emergency and disaster 
     assistance for livestock and agriculture producers.
       Section 308. Social Security restructuring.
       Section 309. Sense of the Senate concerning State fiscal 
     relief.
       Section 310. Federal Agency Review Commission.
       Section 311. Sense of the Senate regarding highway 
     spending.
       Section 312. Sense of the Senate concerning an expansion in 
     health care coverage.
       Section 313. Sense of the Senate on the State Criminal 
     Alien Assistance Program.
       Section 314. Sense of the Senate concerning programs of the 
     Corps of Engineers.
       Section 315. Radio interoperability for first responders.
       Section 316. Sense of the Senate on corporate tax haven 
     loopholes.
       Section 317. Sense of the Senate on phased-in concurrent 
     receipt of retired pay and veterans' disability compensation 
     for veterans with service-connected disabilities rated at 60 
     percent or higher.
       Section 318. Sense of the Senate concerning Native American 
     Health.
       Section 319. Reserve fund to strengthen social security.
       Section 320. Sense of the Senate on providing tax and other 
     incentives to revitalize rural America.
       Section 321. Sense of the Senate concerning higher 
     education affordability.
       Section 322. Sense of the Senate concerning children's 
     graduate medical education.
       Section 323. Sense of the Senate on funding for criminal 
     justice.
       Section 324. Sense of the Senate concerning funding for 
     drug treatment programs.
       Section 325. Funding for after-school programs.
       Section 326. Sense of the Senate on the $1,000 child 
     credit.
       Section 327. Sense of the Senate concerning funding for 
     domestic nutrition assistance programs.
       Section 328. Sense of the Senate concerning free trade 
     agreement with the United Kingdom.
       Section 329. Reserve fund for possible military action and 
     reconstruction in Iraq.
     Conference Agreement
       The Conference Agreement contains the following Senses of 
     the Senate:
       Section 601. Sense of the Senate on Federal employee pay.
       Section 602. Sense of the Senate regarding Pell Grants.
       Section 603. Sense of the Senate on emergency and disaster 
     assistance for livestock and agriculture producers.
       Section 604. Social Security restructuring.
       Section 605. Sense of the Senate concerning State fiscal 
     relief.
       Section 606. Federal Agency Review Commission.
       Section 607. Sense of the Senate regarding highway 
     spending.
       Section 608. Sense of the Senate on Reports and Liabilities 
     and Future Costs.
       Section 609. Sense of the Senate concerning an expansion in 
     health care coverage.
       Section 610. Sense of the Senate concerning programs of the 
     Corps of Engineers.
       Section 611. Sense of the Senate concerning Native American 
     Health.
       Section 612. Sense of the Senate on providing tax and other 
     incentives to revitalize rural America.
       Section 613. Sense of the Senate concerning children's 
     graduate medical education.
       Section 614. Sense of the Senate on funding for criminal 
     justice.
       Section 615. Sense of the Senate concerning funding for 
     drug treatment programs.
       Section 616. Sense of the Senate concerning free trade 
     agreement with the United Kingdom.

     Jim Nussle,
     Christopher Shays,
                                Managers on the Part of the House.

     Don Nickles,
     Pete V. Dominici,
     Chuck Grassley,
     Judd Gregg,
                               Managers on the Part of the Senate.