[Congressional Record (Bound Edition), Volume 150 (2004), Part 15]
[House]
[Pages 20594-20596]
[From the U.S. Government Publishing Office, www.gpo.gov]




     CLARIFICATION OF TREATMENT OF SUPPLEMENTAL APPROPRIATIONS IN 
     CALCULATING RATE FOR OPERATIONS FOR CONTINUING APPROPRIATIONS

  Mr. YOUNG of Florida. Mr. Speaker, I move to suspend the rules and 
pass the bill (H.R. 5202) to clarify the treatment of supplemental 
appropriations in

[[Page 20595]]

calculating the rate for operations applicable for continuing 
appropriations for fiscal year 2005.
  The Clerk read as follows:

                               H.R. 5202

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. CLARIFICATION OF TREATMENT OF SUPPLEMENTAL 
                   APPROPRIATIONS IN CALCULATING RATE FOR 
                   OPERATIONS.

       For purposes of the application of section 103 of Public 
     Law 108-309, supplemental appropriations shall be included in 
     the calculation of the rate for operations only in accordance 
     with the attachments to Office of Management and Budget 
     Bulletin No. 04-05 entitled ``Apportionment of the Continuing 
     Resolution(s) for Fiscal Year 2005''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Florida (Mr. Young) and the gentleman from Wisconsin (Mr. Obey) each 
will control 20 minutes.
  The Chair recognizes the gentleman from Florida (Mr. Young).


                             General Leave

  Mr. YOUNG of Florida. Mr. Speaker, I ask unanimous consent that all 
Members may have 5 legislative days within which to revise and extend 
their remarks and include extraneous material on H.R. 5202.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Florida?
  There was no objection.
  Mr. YOUNG of Florida. Mr. Speaker, I yield myself such time as I 
might consume.
  Mr. Speaker, the legislation before the House, H.R. 5202, is to 
assist the Members of the House in understanding scoring relevant to 
the continuing resolution that we passed last week.
  As my colleagues know, the current CR expires on November 20, 2004. 
As I explained last week, the CR continues all ongoing activities at 
current rates, including supplemental funding, under the same terms and 
conditions as fiscal year 2004. As in past CRs, it does not allow new 
starts, and it restricts obligations on high initial spend-out 
programs. So the annualized funding levels in this bill will not 
impinge on our final budget deliberations.
  As a courtesy to those in this body who do not understand how OMB 
determines the rate of operations, I have been asked to put this bill 
on the floor today to clarify that the term ``rate for operations'' for 
2004 supplementals will be apportioned pursuant to OMB Bulletin Number 
04-05.
  So, in reality, this bill does not change anything. However, some 
believe it is needed to clarify for CBO the amount of money the 
executive branch intends to spend during the period of the CR.
  The deficit will not change by one dime as a result of this bill. How 
much money the government spends will not change by one dime as a 
result of this bill.
  CBO's and the Committee on the Budget's job under the Budget Act is 
to provide an estimate of bills that are being considered and then are 
enacted into law. Let me emphasize the word estimate, which is based on 
a set of assumptions made at the time. Those estimates are sometimes 
good, and sometimes, they are off. An example where they were off was 
the Medicare bill.
  But thankfully, these estimates do not become the actual balance in 
our checkbook. That is a real number, based on the checks actually 
issued by the U.S. Treasury. That is the real number that drives the 
surplus or deficit.
  CBO scoring is only relevant to keep a scorecard on how Congress is 
doing relative to the budget assumptions. As we all know, during the 
year, we often wait for a revision by CBO of its scoring to determine 
the level of a deficit. This revision comes when CBO marries its 
numbers with the reality that is driven by actual spending.
  So we are doing this bill today because some feel that we need to set 
the record straight. I believe the record is already straight and the 
OMB apportionment process will dictate the actual level of spending of 
the CR. By the way, under OMB's apportionment process, the CR will 
actually save $5 billion from the level that was allocated for fiscal 
year 2005 discretionary spending in the budget.
  This savings is going to happen with or without this bill, but I urge 
that we pass the bill.

         Executive Office of the President, Office of Management 
           and Budget,
                               Washington, DC, September 30, 2004.
     Bulletin No. 04-05
     To the Heads of Executive Departments and Establishments.
     Subject: Apportionment of the Continuing Resolution(s) for 
         Fiscal Year 2005.
       1. Purpose and Background. H.J. Res. 107 (continuing 
     resolution) will provide continuing appropriations for the 
     period October 1 through November 20, 2004. I am providing an 
     automatic apportionment for amounts provided by this 
     continuing resolution (CR) as specified in section 2. This 
     Bulletin supplements instructions for apportionment of CRs in 
     OMB Circular No. A-11, section 123, and applies to this CR 
     and any extensions of this CR.
       2. Automatic Apportionments. Calculate the amount 
     automatically apportioned through the period ending November 
     20th (and any extensions of that period) by multiplying the 
     rate (amount) provided by the CR by the lower of: the 
     percentage of the year covered by the CR (e.g., for H.J. Res. 
     107 use 13.97 percent), or the historical seasonal rate of 
     obligations for the period of the year covered by the CR.
       See Attachments A and B to this Bulletin for more detailed 
     instructions on calculating the amount provided by the CR and 
     the amount automatically apportioned. Sec. 111 of the CR 
     requires that the resolution be implemented so that only the 
     most limited funding action permitted in the CR is taken. The 
     Administration has interpreted this section to mandate that 
     agencies in general spend at a minimum level, so as not to 
     infringe upon the prerogative of Congress to set full-year 
     funding levels. Funding apportioned under the CR excludes 
     one-time, non-recurring projects and activities that were 
     funded in FY 2004, which includes most projects and 
     activities funded by FY 2004 supplemental appropriations. The 
     only FY 2004 supplemental projects and activities that may be 
     factored into the ``not to exceed current rate'' can be found 
     in Attachment B.
       Under an automatic apportionment, all of the footnotes and 
     conditions placed on the prior year apportionment remain in 
     effect.
       H.J. Res. 107 expires at midnight on Saturday, November 20, 
     2004.
       3. Written Apportionments. If a program requires an amount 
     different from the total amount automatically apportioned, 
     you must request a written apportionment from OMB. Once a 
     written apportionment is approved, the terms and conditions 
     of the automatic apportionment bulletin cease to apply.
                                                 Joshua B. Bolten,
                                                         Director.
       Attachments.

 Attachment A--Calculating the Amount Made Available by the CR and the 
                        Automatic Apportionment

       Calculate the amount automatically apportioned (whole 
     dollars) through the period ending November 20, 2004, (and 
     any extensions of that period) by multiplying the rate 
     (amount) provided by the CR by the lower of: the percentage 
     of the year covered by the CR (rounded to the nearest 
     hundredth); (for a seven-week CR, use 51 days/365 
     days=13.97%); or the historical seasonal rate of obligations 
     for the period of the year covered by the CR.
       1. What is the rate (annualized, full-year amount) provided 
     by the continuing resolution (CR)? The rate (full-year 
     amount) provided by the CR for all accounts is the rate of 
     operations not exceeding the current rate, calculated as 
     follows:
       Take the net amount enacted in FY 2004, i.e., add only the 
     supplemental appropriations amounts listed in Attachment B of 
     OMB Bulletin 04-05; subtract any rescissions (e.g., across-
     the-board reductions), and factor in transfers mandated by 
     law;
       Add the unobligated balance (including those for 
     emergencies) carried forward to FY 2004 start-of-the-year 
     (SOY), if any; and
       Subtract the unobligated balance (including those for 
     emergencies) at the end of FY 2004 end of year (EOY), if any.
       2. Which estimates of FY 2004 (EOY) unobligated balances 
     should agencies use in the calculation? Agencies are required 
     to use current estimates of FY 2004 (EOY) unobligated 
     balances. You can adjust the unobligated balances with the 
     following conditions:
       FY 2004 SOY unobligated balances: Use the amount shown on 
     the most recent FY 2004 apportionment/reapportionment. This 
     would be shown on line 2a (``Unobligated balance: brought 
     forward, October 1 (actual)'') of the SF 132/letter 
     apportionment.
       FY 2004 EOY unobligated balances: Again, you must use the 
     most recently approved apportionment. For the majority of the 
     accounts, this should be the FY 2005 initial apportionment.
       You may request OMB to apportion the revised estimates of 
     unobligated balances, SOY FY 2005, and if apportioned by OMB, 
     you may use the revised amounts to calculate the amount 
     available under the CR.
       3. How should mandatory appropriations and balances be 
     treated? A continuing resolution is an appropriations bill. 
     As such, it normally does not affect mandatory appropriations 
     provided in substantive or authorizing legislation. 
     Therefore, for accounts

[[Page 20596]]

     with a mix of discretionary and mandatory appropriations, 
     take the mandatory component out before calculating the 
     amount provided by the CR. This includes both the budget 
     authority and unobligated balances.
       4. What is the amount of the automatic apportionment under 
     a CR? Multiple the rate (annualized, full-year amount) 
     provided by the CR (see note 1) by:
       The percentage of the year covered by the CR (rounded to 
     the nearest hundredth);
       The historical seasonal rate of obligations for the period 
     of the year covered by the CR; or
       The lower number will be the amount automatically 
     apportioned.
       5. Are entitlement and other mandatory payments whose 
     budget authority was provided in Appropriations Acts for 
     fiscal year 2004 continued at the FY 2004 level or FY 2005 
     program level?
       Sec. 126 of H.J. Res. 107 allows entitlements and other 
     mandatory payments whose BA was provided in Appropriations 
     Acts for FY 2004 to continue at the ``rate to maintain 
     program levels under current law, under the authority and 
     conditions provided in the applicable appropriations Act for 
     fiscal year 2004, etc.'' In other words, these programs can 
     operate at the FY 2005 level but the appropriated 
     administrative expenses associated with these programs must 
     be based on the FY 2004 levels.

Attachment B--FY 2004 Supplemental Projects and Activities (Recurring) 
To Be Included in Determination of Current Rate Amounts Provided by the 
                        Continuing Resolution\1\


        Agency/Account                                       FY 2004 BA
                                                  [Millions of dollars]
Department of Energy:
    Other Defense Activities..........................................3
Department of Homeland Security:
    U.S. Coast Guard.................................................80
International Security Assistance:
    Economic Support Fund...........................................672
    Foreign Military Financing Program..............................287
    Peacekeeping Operations..........................................20
    Non-Proliferation, Antiterrorism, Demining & Related Programs....35
    Migration and Refugee Assistance.................................25
Department of Justice:
    FBI, Salaries and Expenses.......................................15
Department of State:
    Contributions for International Peacekeeping....................245
    International Narcotics Control and Law Enforcement.............170
United States Agency for International Development:
    International Disaster and Famine Assistance.....................70

\1\This list, compiled by OMB, excludes one-time, non-recurring 
projects and activities funded in FY 2004 Supplemental Appropriation 
Acts, including the FY 2004 Emergency Supplemental Appropriations Act 
for Defense and for the Reconstruction of Iraq and Afghanistan (P.L. 
108-106), Title X of the FY 2005 Department of Defense Appropriations 
Act (P.L. 108-287), and the Emergency Supplemental Appropriations for 
Disaster Relief Act, 2004 (P.L. 108-303).

  Mr. Speaker, I reserve the balance of my time.
  Mr. OBEY. Mr. Speaker, I yield myself 5 minutes.
  Mr. Speaker, I think, as the gentleman has so aptly indicated 
already, the best way that this bill can be described is to put it in 
the terms that the old Bowery Boys used to say in those B movies many 
years ago when we were both kids, when Leo Gorcey would say ``dis don't 
do nuthin' to nobody.'' That is exactly what this legislation does. It 
``don't do nuthin' to nobody.''
  It is here simply because, evidently, the folks who are on the 
Committee on the Budget do not, as the gentleman from Florida 
indicates, understand how the OMB goes about dealing with or enforcing 
and implementing the continuing resolutions which we pass. Somehow, it 
seems that the Committee on the Budget or perhaps only the chairman of 
the Committee on the Budget, I do not know, it seems that they feel 
that, without this language, OMB will go on a spending spree.
  Well, the fact is that what this legislation says is that OMB cannot 
do something which OMB is already not planning to do. The 
interpretation that is always given to the continuing resolution by the 
Committee on Appropriations and by OMB is that the most conservative 
approach must be used for obligating funds under a CR. Notwithstanding 
that interpretation, the Committee on the Budget is having its version 
of a heart attack, suggesting that somehow the continuing resolution, 
which the gentleman brought to the floor last week, is going to result 
in runaway spending.
  As the gentleman from Florida says, while it pretends to reign in 
OMB, this resolution will not result in one dime less being spent than 
would have been the case with the CR that passed the House last week.
  I guess all I would say is that I find it interesting that 2 weeks 
before the end of the fiscal year, when this Congress has still not 
passed a single domestic appropriations bill, because the bills that 
were passed in this body have not been accepted by those in the other 
body, and at a time when we still do not have a transportation bill out 
of the authorizing committee, at a time when so many pieces of 
legislation are tied up between the House and the Senate, this House 
has been asked to waste a good amount of time on the budget process 
reform bill, which the Committee on the Budget insisted on bringing to 
the floor earlier in the year, which did a ``brilliant'' job of passing 
so-called budget reform legislation which guaranteed that Members could 
continue to do anything whatsoever that they wanted to do on the tax 
side of the ledger without having to take into account one iota what it 
did to the deficit. Now we are being asked to pass this meaningless 
piece of fluff.
  It does not matter whether Members vote ``yes'' or ``no'' on this 
resolution. The result will be the same. So I guess if it makes the 
chairman of the Committee on the Budget happy, the House may as well go 
ahead and pass it, but do not deceive yourself into thinking that it 
does something for or to anybody. It does not.
  Mr. Speaker, I yield back the balance of my time.
  Mr. YOUNG of Florida. Mr. Speaker, I have no requests for time. I 
just urge a ``yes'' vote, and I yield back my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Florida (Mr. Young) that the House suspend the rules and 
pass the bill, H.R. 5202.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the bill was passed.
  A motion to reconsider was laid on the table.

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