[House Report 106-198]
[From the U.S. Government Publishing Office]



106th Congress                                            Rept. 106-198
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     Part 3

======================================================================



 
            COMPREHENSIVE BUDGET PROCESS REFORM ACT OF 1999

                                _______
                                

 August 5, 1999.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

  Mr. Dreier, from the Committee on the Rules, submitted the following

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 853]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on the Rules, to whom was referred the bill 
(H.R. 853) to amend the Congressional Budget Act of 1974 to 
provide for joint resolutions on the budget, reserve funds for 
emergency spending, strengthened enforcement of budgetary 
decisions, increased accountability for Federal spending, 
accrual budgeting for Federal insurance programs, mitigation of 
the bias in the budget process toward higher spending, 
modifications in paygo requirements when there is an on-budget 
surplus, and for other purposes, having considered the same, 
reports favorably thereon with an amendment and recommend that 
the bill as amended do pass.
  The amendment is as follows:
  Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Comprehensive Budget 
Process Reform Act of 1999''.
  (b) Table of Contents.--

Sec. 1. Short title; table of contents.
Sec. 2. Purpose.
Sec. 3. Effective date.
Sec. 4. Declaration of purposes for the Budget Act.

                   TITLE I--BUDGET WITH FORCE OF LAW

Sec. 101. Purposes.
Sec. 102. The timetable.
Sec. 103. Annual joint resolutions on the budget.
Sec. 104. Budget required before spending bills may be considered; 
fall-back procedures if President vetoes joint budget resolution.
Sec. 105. Conforming amendments to effectuate joint resolutions on the 
budget.

                 TITLE II--RESERVE FUND FOR EMERGENCIES

Sec. 201. Purpose.
Sec. 202. Repeal of adjustments for emergencies.
Sec. 203. OMB emergency criteria.
Sec. 204. Development of guidelines for application of emergency 
definition.
Sec. 205. Reserve fund for emergencies in President's budget.
Sec. 206. Adjustments and reserve fund for emergencies in joint budget 
resolutions.
Sec. 207. Up-to-date tabulations.
Sec. 208. Prohibition on amendments to emergency reserve fund.
Sec. 209. Effective date.

             TITLE III--ENFORCEMENT OF BUDGETARY DECISIONS

Sec. 301. Purposes.

  Subtitle A--Application of Points of Order to Unreported Legislation

Sec. 311. Application of Budget Act points of order to unreported 
legislation.

             Subtitle B--Compliance with Budget Resolution

Sec. 321. Budget compliance statements.

            Subtitle C--Justification for Budget Act Waivers

Sec. 331. Justification for Budget Act waivers in the House of 
Representatives.

             Subtitle D--CBO Scoring of Conference Reports

Sec. 341. CBO scoring of conference reports.

             TITLE IV--ACCOUNTABILITY FOR FEDERAL SPENDING

Sec. 401. Purposes.

               Subtitle A--Limitations on Direct Spending

Sec. 411. Fixed-year authorizations required for new programs.
Sec. 412. Amendments to subject new direct spending to annual 
appropriations.

     Subtitle B--Enhanced Congressional Oversight Responsibilities

Sec. 421. Ten-year congressional review requirement of permanent budget 
authority.
Sec. 422. Justifications of direct spending.
Sec. 423. Survey of activity reports of House committees.
Sec. 424. Continuing study of additional budget process reforms.
Sec. 425. GAO reports.

                Subtitle C--Strengthened Accountability

Sec. 431. Ten-year CBO estimates.
Sec. 432. Repeal of rule XXIII of the Rules of the House of 
Representatives.

    TITLE V--BUDGETING FOR UNFUNDED LIABILITIES AND OTHER LONG-TERM 
                              OBLIGATIONS

Sec. 501. Purposes.

     Subtitle A--Budgetary Treatment of Federal Insurance Programs

Sec. 511. Federal insurance programs.

           Subtitle B--Reports on Long-Term Budgetary Trends

Sec. 521. Reports on long-term budgetary trends.

   TITLE VI--BASELINE, BYRD RULE, LOCK-BOX, AND AUTOMATIC CONTINUING 
                               RESOLUTION

Sec. 601. Purpose.

                        Subtitle A--The Baseline

Sec. 611. The President's budget.
Sec. 612. The congressional budget.
Sec. 613. Congressional Budget Office reports to committees.
Sec. 614. Outyear assumptions for discretionary spending.

                       Subtitle B--The Byrd Rule

Sec. 621. Limitation on Byrd rule.

              Subtitle C--Spending Accountability Lock-Box

Sec. 631. Short title.
Sec. 632. Spending accountability lock-box ledger.
Sec. 633. Downward adjustment of section 302(a) allocations and section 
302(b) suballocations.
Sec. 634. Periodic reporting of ledger statements.
Sec. 635. Downward adjustment of discretionary spending limits.

              Subtitle D--Automatic Continuing Resolution

Sec. 641. Automatic continuing resolution.

              TITLE VII--BUDGETING IN AN ERA OF SURPLUSES

Sec. 701. Paygo requirements and the on-budget surplus.

SEC. 2. PURPOSE.

  The purposes of this Act are to--
          (1) give the budget the force of law;
          (2) budget for emergencies;
          (3) display the unfunded liabilities of Federal insurance 
        programs;
          (4) strengthen enforcement of budgetary decisions;
          (5) increase accountability for Federal spending;
          (6) mitigate the bias in the budget process toward higher 
        spending; and
          (7) modify paygo requirements when there is an on-budget 
        surplus.

SEC. 3. EFFECTIVE DATE.

  Except as otherwise specifically provided, this Act and the 
amendments made by this Act shall become effective on the date of 
enactment of this Act and shall apply with respect to fiscal years 
beginning after September 30, 2000.

SEC. 4. DECLARATION OF PURPOSES FOR THE BUDGET ACT.

  Paragraphs (1) and (2) of section 2 of the Congressional Budget and 
Impoundment Control Act of 1974 are amended to read as follows:
          ``(1) to assure effective control over the budgetary process;
          ``(2) to facilitate the determination each year of the 
        appropriate level of Federal revenues and expenditures by the 
        Congress and the President;''.

                   TITLE I--BUDGET WITH FORCE OF LAW

SEC. 101. PURPOSES.

  The purposes of this title are to--
          (1) focus initial budgetary deliberations on aggregate levels 
        of Federal spending and taxation;
          (2) encourage cooperation between Congress and the President 
        in developing overall budgetary priorities; and
          (3) reach budgetary decisions early in the legislative cycle.

SEC. 102. THE TIMETABLE.

  Section 300 of the Congressional Budget Act of 1974 is amended to 
read as follows:
                              ``timetable
  ``Sec. 300. The timetable with respect to the congressional budget 
process for any fiscal year is as follows:

``On or before:                     Action to be completed:
    First Monday in February
                                        President submits his budget.
    February 15
                                        Congressional Budget Office 
                                                submits report to 
                                                Budget Committees.
    Not later than 6 weeks after 
        President submits budget
                                        Committees submit views and 
                                                estimates to Budget 
                                                Committees.
    April 1
                                        Senate Budget Committee reports 
                                                joint resolution on the 
                                                budget.
    April 15
                                        Congress completes action on 
                                                joint resolution on the 
                                                budget.
    June 10
                                        House Appropriations Committee 
                                                reports last annual 
                                                appropriation bill.
    June 15
                                        Congress completes action on 
                                                reconciliation 
                                                legislation.
    June 30
                                        House completes action on 
                                                annual appropriation 
                                                bills.
    October 1
                                        Fiscal year begins.''.

SEC. 103. ANNUAL JOINT RESOLUTIONS ON THE BUDGET.

  (a) Content of Annual Joint Resolutions on the Budget.--Section 
301(a) of the Congressional Budget Act of 1974 is amended as follows:
          (1) Strike paragraph (4) and insert the following new 
        paragraph:
          ``(4) subtotals of new budget authority and outlays for 
        nondefense discretionary spending, defense discretionary 
        spending, direct spending (excluding interest), and interest; 
        and for fiscal years to which the amendments made by title II 
        of the Comprehensive Budget Process Reform Act of 1999 apply, 
        subtotals of new budget authority and outlays for 
        emergencies;''.
          (2) Strike the last sentence of such subsection.
  (b) Additional Matters in Joint Resolution.--Section 301(b) of the 
Congressional Budget Act of 1974 is amended as follows:
          (1) Strike paragraphs (2), (4), (6), (8), and (9) and 
        redesignate paragraph (7) as paragraph (6).
          (2) After paragraph (1), insert the following new paragraph:
          ``(2) if submitted by the Committee on Ways and Means of the 
        House of Representatives or the Committee on Finance of the 
        Senate to the Committee on the Budget of that House of 
        Congress, amend section 3101 of title 31, United States Code, 
        to change the statutory limit on the public debt;''.
          (3) After paragraph (3), insert the following new paragraph:
          ``(4) require such other congressional procedures, relating 
        to the budget, as may be appropriate to carry out the purposes 
        of this Act;''.
  (c) Required Contents of Report.--Section 301(e)(2) of the 
Congressional Budget Act of 1974 is amended as follows:
          (1) Redesignate subparagraphs (A), (B), (C), (D), (E), and 
        (F) as subparagraphs (B), (C), (E), (F), (H), and (I), 
        respectively.
          (2) Before subparagraph (B) (as redesignated), insert the 
        following new subparagraph:
                  ``(A) new budget authority and outlays for each major 
                functional category, based on allocations of the total 
                levels set forth pursuant to subsection (a)(1);''.
          (3) In subparagraph (C) (as redesignated), strike 
        ``mandatory'' and insert ``direct spending''.
          (4) After subparagraph (C) (as redesignated), insert the 
        following new subparagraph:
                  ``(D) a measure, as a percentage of gross domestic 
                product, of total outlays, total Federal revenues, the 
                surplus or deficit, and new outlays for nondefense 
                discretionary spending, defense spending, and direct 
                spending as set forth in such resolution;''.
          (5) After subparagraph (F) (as redesignated), insert the 
        following new subparagraph:
                  ``(G) if the joint resolution on the budget includes 
                any allocation to a committee (other than the Committee 
                on Appropriations) of levels in excess of current law 
                levels, a justification for not subjecting any program, 
                project, or activity (for which the allocation is made) 
                to annual discretionary appropriations;''.
  (d) Additional Contents of Report.--Section 301(e)(3) of the 
Congressional Budget Act of 1974 is amended as follows:
          (1) Redesignate subparagraphs (A) and (B) as subparagraphs 
        (B) and (C), respectively, strike subparagraphs (C) and (D), 
        and redesignate subparagraph (E) as subparagraph (D).
          (2) Before subparagraph (B), insert the following new 
        subparagraph:
                  ``(A) reconciliation directives described in section 
                310;''.
  (e) President's Budget Submission to the Congress.--(1) The first two 
sentences of section 1105(a) of title 31, United States Code, are 
amended to read as follows:
``On or after the first Monday in January but not later than the first 
Monday in February of each year the President shall submit a budget of 
the United States Government for the following fiscal year which shall 
set forth the following levels:
          ``(A) totals of new budget authority and outlays;
          ``(B) total Federal revenues and the amount, if any, by which 
        the aggregate level of Federal revenues should be increased or 
        decreased by bills and resolutions to be reported by the 
        appropriate committees;
          ``(C) the surplus or deficit in the budget;
          ``(D) subtotals of new budget authority and outlays for 
        nondefense discretionary spending, defense discretionary 
        spending, direct spending, and interest; and for fiscal years 
        to which the amendments made by title II of the Comprehensive 
        Budget Process Reform Act of 1999 apply, subtotals of new 
        budget authority and outlays for emergencies; and
          ``(E) the public debt.
Each budget submission shall include a budget message and summary and 
supporting information and, as a separately delineated statement, the 
levels required in the preceding sentence for at least each of the 9 
ensuing fiscal years.''.
  (2) The third sentence of section 1105(a) of title 31, United States 
Code, is amended by inserting ``submission'' after ``budget''.
  (f) Limitation on Contents of Budget Resolutions.--Section 305 of the 
Congressional Budget Act of 1974 is amended by adding at the end the 
following new subsection:
  ``(e) Limitation on Contents.--(1) It shall not be in order in the 
House of Representatives or in the Senate to consider any joint 
resolution on the budget or any amendment thereto or conference report 
thereon that contains any matter referred to in paragraph (2).
  ``(2) Any joint resolution on the budget or any amendment thereto or 
conference report thereon that contains any matter not permitted in 
section 301(a) or (b) shall not be treated in the House of 
Representatives or the Senate as a budget resolution under subsection 
(a) or (b) or as a conference report on a budget resolution under 
subsection (c) of this section.''.

SEC. 104. BUDGET REQUIRED BEFORE SPENDING BILLS MAY BE CONSIDERED; 
                    FALL-BACK PROCEDURES IF PRESIDENT VETOES JOINT 
                    BUDGET RESOLUTION.

  (a) Amendments to Section 302.--Section 302(a) of the Congressional 
Budget Act of 1974 is amended by striking paragraph (5).
  (b) Amendments to Section 303 and Conforming Amendments.--(1) Section 
303 of the Congressional Budget Act of 1974 is amended--
          (A) in subsection (b), by striking paragraph (2), by 
        inserting ``or'' at the end of paragraph (1), and by 
        redesignating paragraph (3) as paragraph (2); and
          (B) by striking its section heading and inserting the 
        following new section heading: ``consideration of budget-
        related legislation before budget becomes law''.
  (2) Section 302(g)(1) of the Congressional Budget Act of 1974 is 
amended by striking ``and, after April 15, section 303(a)''.
  (3)(A) Section 904(c)(1) of the Congressional Budget Act of 1974 is 
amended by inserting ``303(a),'' before ``305(b)(2),''.
  (B) Section 904(d)(2) of the Congressional Budget Act of 1974 is 
amended by inserting ``303(a),'' before ``305(b)(2),''.
  (c) Expedited Procedures Upon Veto of Joint Resolution on the 
Budget.--(1) Title III of the Congressional Budget Act of 1974 is 
amended by adding after section 315 the following new section:
   ``expedited procedures upon veto of joint resolution on the budget
  ``Sec. 316. (a) Special Rule.--If the President vetoes a joint 
resolution on the budget for a fiscal year, the majority leader of the 
House of Representatives or Senate (or his designee) may introduce a 
concurrent resolution on the budget or joint resolution on the budget 
for such fiscal year. If the Committee on the Budget of either House 
fails to report such concurrent or joint resolution referred to it 
within five calendar days (excluding Saturdays, Sundays, or legal 
holidays except when that House of Congress is in session) after the 
date of such referral, the committee shall be automatically discharged 
from further consideration of such resolution and such resolution shall 
be placed on the appropriate calendar.
  ``(b) Procedure in the House of Representatives and the Senate.--
          ``(1) Except as provided in paragraph (2), the provisions of 
        section 305 for the consideration in the House of 
        Representatives and in the Senate of joint resolutions on the 
        budget and conference reports thereon shall also apply to the 
        consideration of concurrent resolutions on the budget 
        introduced under subsection (a) and conference reports thereon.
          ``(2) Debate in the Senate on any concurrent resolution on 
        the budget or joint resolution on the budget introduced under 
        subsection (a), and all amendments thereto and debatable 
        motions and appeals in connection therewith, shall be limited 
        to not more than 10 hours and in the House such debate shall be 
        limited to not more than 3 hours.
  ``(c) Contents of Concurrent Resolutions.--Any concurrent resolution 
on the budget introduced under subsection (a) shall be in compliance 
with section 301.
  ``(d) Effect of Concurrent Resolution on the Budget.--Notwithstanding 
any other provision of this title, whenever a concurrent resolution on 
the budget described in subsection (a) is agreed to, then the 
aggregates, allocations, and reconciliation directives (if any) 
contained in the report accompanying such concurrent resolution or in 
such concurrent resolution shall be considered to be the aggregates, 
allocations, and reconciliation directives for all purposes of sections 
302, 303, and 311 for the applicable fiscal years and such concurrent 
resolution shall be deemed to be a joint resolution for all purposes of 
this title and the Rules of the House of Representatives and any 
reference to the date of enactment of a joint resolution on the budget 
shall be deemed to be a reference to the date agreed to when applied to 
such concurrent resolution.''.
  (2) The table of contents set forth in section 1(b) of the 
Congressional Budget and Impoundment Control Act of 1974 is amended by 
inserting after the item relating to section 315 the following new 
item:

``Sec. 316. Expedited procedures upon veto of joint resolution on the 
budget.''.

SEC. 105. CONFORMING AMENDMENTS TO EFFECTUATE JOINT RESOLUTIONS ON THE 
                    BUDGET.

  (a) Conforming Amendments to the Congressional Budget and Impoundment 
Control Act of 1974.--(1)(A) Sections 301, 302, 303, 305, 308, 310, 
311, 312, 314, 405, and 904 of the Congressional Budget Act of 1974 (2 
U.S.C. 621 et seq.) are amended by striking ``concurrent'' each place 
it appears and by inserting ``joint''.
  (B)(i) Sections 302(d), 302(g), 308(a)(1)(A), and 310(d)(1) of the 
Congressional Budget Act of 1974 are amended by striking ``most 
recently agreed to concurrent resolution on the budget'' each place it 
occurs and inserting ``most recently enacted joint resolution on the 
budget or agreed to concurrent resolution on the budget (as 
applicable)''.
  (ii) The section heading of section 301 is amended by striking 
``adoption of concurrent resolution'' and inserting ``joint 
resolutions'';
  (iii) Section 304 of such Act is amended to read as follows:
             ``permissible revisions of budget resolutions
  ``Sec. 304. At any time after the joint resolution on the budget for 
a fiscal year has been enacted pursuant to section 301, and before the 
end of such fiscal year, the two Houses and the President may enact a 
joint resolution on the budget which revises or reaffirms the joint 
resolution on the budget for such fiscal year most recently enacted. If 
a concurrent resolution on the budget has been agreed to pursuant to 
section 316, then before the end of such fiscal year, the two Houses 
may adopt a concurrent resolution on the budget which revises or 
reaffirms the concurrent resolution on the budget for such fiscal year 
most recently agreed to.''.
  (C) Sections 302, 303, 310, and 311, of such Act are amended by 
striking ``agreed to'' each place it appears and by inserting 
``enacted''.
  (2)(A) Paragraph (4) of section 3 of the Congressional Budget and 
Impoundment Control Act of 1974 is amended by striking ``concurrent'' 
each place it appears and by inserting ``joint''.
  (B) The table of contents set forth in section 1(b) of such Act is 
amended--
          (i) in the item relating to section 301, by striking 
        ``adoption of concurrent resolution'' and inserting ``joint 
        resolutions'';
          (ii) by striking the item relating to section 303 and 
        inserting the following:

``Sec. 303. Consideration of budget-related legislation before budget 
becomes law.'';

          (iii) in the item relating to section 304, by striking 
        ``concurrent'' and inserting ``budget'' the first place it 
        appears and by striking ``on the budget''; and
          (iv) by striking ``concurrent'' and inserting ``joint'' in 
        the item relating to section 305.
  (b) Conforming Amendments to the Rules of the House of 
Representatives.--(1) Clauses 1(e)(1), 4(a)(4), 4(b)(2), 4(f)(1)(A), 
and 4(f)(2) of rule X, clause 10 of rule XVIII, and clause 10 of rule 
XX of the Rules of the House of Representatives are amended by striking 
``concurrent'' each place it appears and inserting ``joint''.
  (2) Clause 10 of rule XVIII of the Rules of the House of 
Representatives is amended--
          (A) in paragraph (b)(2), by striking ``(5)'' and inserting 
        ``(6)''; and
          (B) by striking paragraph (c).
  (c) Conforming Amendments to the Balanced Budget and Emergency 
Deficit Control Act of 1985.--Section 258C(b)(1) of the Balanced Budget 
and Emergency Deficit Control Act of 1985 (2 U.S.C. 907d(b)(1)) is 
amended by striking ``concurrent'' and inserting ``joint''.
  (d) Conforming Amendments to Section 310 Regarding Reconciliation 
Directives.--(1) The side heading of section 310(a) of the 
Congressional Budget Act of 1974 (as amended by section 105(a)) is 
further amended by inserting ``Joint Explanatory Statement Accompanying 
Conference Report on'' before ``Joint''.
  (2) Section 310(a) of such Act is amended by striking ``A'' and 
inserting ``The joint explanatory statement accompanying the conference 
report on a''.
  (3) The first sentence of section 310(b) of such Act is amended by 
striking ``If'' and inserting ``If the joint explanatory statement 
accompanying the conference report on''.
  (4) Section 310(c)(1) of such Act is amended by inserting ``the joint 
explanatory statement accompanying the conference report on'' after 
``pursuant to''.
  (5) Subsection (g) of section 310 of such Act is repealed.
  (e) Conforming Amendments to Section 3 Regarding Direct Spending.--
Section 3 of the Congressional Budget and Impoundment Control Act of 
1974 is amended by adding at the end the following new paragraph:
          ``(11) The term `direct spending' has the meaning given to 
        such term in section 250(c)(8) of the Balanced Budget and 
        Emergency Deficit Control Act of 1985.''.
  (f) Technical Amendment Regarding Revised Suballocations.--Section 
314(d) of the Congressional Budget Act of 1974 is amended by--
          (1) striking ``Reporting'' in the side heading, by inserting 
        ``the chairmen of'' before ``the Committees'', and by striking 
        ``may report'' and inserting ``shall make and have published in 
        the Congressional Record''; and
          (2) adding at the end the following new sentence: ``For 
        purposes of considering amendments (other than for amounts for 
        emergencies covered by subsection (b)(1)), suballocations shall 
        be deemed to be so adjusted.''.

                 TITLE II--RESERVE FUND FOR EMERGENCIES

SEC. 201. PURPOSE.

  The purposes of this title are to--
          (1) develop budgetary and fiscal procedures for emergencies;
          (2) subject spending for emergencies to budgetary procedures 
        and controls; and
          (3) establish criteria for determining compliance with 
        emergency requirements.

SEC. 202. REPEAL OF ADJUSTMENTS FOR EMERGENCIES.

  (a) Discretionary Spending Limits.--(1) Section 251(b)(2)(A) of the 
Balanced Budget and Emergency Deficit Control Act of 1985 is repealed.
  (2) Such section 251(b)(2) is further amended by redesignating 
subparagraphs (B) through (G) as subparagraphs (A) through (F).
  (b) Direct Spending.--Sections 252(e) and 252(d)(4)(B) of the 
Balanced Budget and Emergency Deficit Control Act of 1985 are repealed.
  (c) Emergency Designation.--Clause 2 of rule XXI of the Rules of the 
House of Representatives is amended by repealing paragraph (e) and by 
redesignating paragraph (f) as paragraph (e).
  (d) Amount of Adjustments.--Section 314(b) of the Congressional 
Budget Act of 1974 is amended by striking paragraph (1) and by 
redesignating paragraphs (2) through (6) as paragraphs (1) through (5), 
respectively.

SEC. 203. OMB EMERGENCY CRITERIA.

  Section 3 of the Congressional Budget and Impoundment Control Act of 
1974 (as amended by section 105(e)) is further amended by adding at the 
end the following new paragraph:
          ``(12)(A) The term `emergency' means a situation that--
                  ``(i) requires new budget authority and outlays (or 
                new budget authority and the outlays flowing therefrom) 
                for the prevention or mitigation of, or response to, 
                loss of life or property, or a threat to national 
                security; and
                  ``(ii) is unanticipated.
          ``(B) As used in subparagraph (A), the term `unanticipated' 
        means that the situation is--
                  ``(i) sudden, which means quickly coming into being 
                or not building up over time;
                  ``(ii) urgent, which means a pressing and compelling 
                need requiring immediate action;
                  ``(iii) unforeseen, which means not predicted or 
                anticipated as an emerging need; and
                  ``(iv) temporary, which means not of a permanent 
                duration.''.

SEC. 204. DEVELOPMENT OF GUIDELINES FOR APPLICATION OF EMERGENCY 
                    DEFINITION.

  Not later than 5 months after the date of enactment of this Act, the 
chairmen of the Committees on the Budget (in consultation with the 
President) shall, after consulting with the chairmen of the Committees 
on Appropriations and applicable authorizing committees of their 
respective Houses and the Directors of the Congressional Budget Office 
and the Office of Management and Budget, jointly publish in the 
Congressional Record guidelines for application of the definition of 
emergency set forth in section 3(12) of the Congressional Budget and 
Impoundment Control Act of 1974.

SEC. 205. RESERVE FUND FOR EMERGENCIES IN PRESIDENT'S BUDGET.

  Section 1105(f) of title 31, United States Code is amended by adding 
at the end the following new sentences: ``Such budget submission shall 
also comply with the requirements of section 317(b) of the 
Congressional Budget Act of 1974 and, in the case of any budget 
authority requested for an emergency, such submission shall include a 
detailed justification of why such emergency is an emergency within the 
meaning of section 3(12) of the Congressional Budget Act of 1974.''.

SEC. 206. ADJUSTMENTS AND RESERVE FUND FOR EMERGENCIES IN JOINT BUDGET 
                    RESOLUTIONS.

  (a) Emergencies.--Title III of the Congressional Budget Act of 1974 
(as amended by section 104(c)) is further amended by adding at the end 
the following new section:
                             ``emergencies
  ``Sec. 317. (a) Adjustments.--
          ``(1) In general.--After the reporting of a bill or joint 
        resolution or the submission of a conference report thereon 
        that provides budget authority for any emergency as identified 
        pursuant to subsection (c), the Committee on the Budget of the 
        House of Representatives or the Senate shall--
                  ``(A) determine and certify, pursuant to the 
                guidelines referred to in section 204 of the 
                Comprehensive Budget Process Reform Act of 1999, the 
                portion (if any) of the amount so specified that is for 
                an emergency within the meaning of section 3(12); and
                  ``(B) make the adjustment set forth in paragraph (2) 
                for the amount of new budget authority (or outlays) in 
                that measure and the outlays flowing from that budget 
                authority.
          ``(2) Matters to be adjusted.--The adjustments referred to in 
        paragraph (1) are to be made to the allocations made pursuant 
        to the appropriate joint resolution on the budget (or 
        concurrent resolution on the budget, as the case may be) 
        pursuant to section 302(a) and shall be in an amount not to 
        exceed the amount reserved for emergencies pursuant to the 
        requirements of subsection (b).
  ``(b) Reserve Fund for Emergencies.--
          ``(1) Amounts.--The amount set forth in the reserve fund for 
        emergencies for budget authority and outlays for a fiscal year 
        pursuant to section 301(a)(4) shall equal--
                  ``(A) the average of the enacted levels of budget 
                authority for emergencies in the 5 fiscal years 
                preceding the current year; and
                  ``(B) the average of the levels of outlays for 
                emergencies in the 5 fiscal years preceding the current 
                year flowing from the budget authority referred to in 
                subparagraph (A), but only in the fiscal year for which 
                such budget authority first becomes available for 
                obligation.
          ``(2) Average levels.--For purposes of paragraph (1), the 
        amount used for a fiscal year to calculate the average of the 
        enacted levels when one or more of such 5 preceding fiscal 
        years is any of fiscal years 1994 through 1998 is as follows: 
        the amount of enacted levels of budget authority and the amount 
        of new outlays flowing therefrom for emergencies, but only in 
        the fiscal year for which such budget authority first becomes 
        available for obligation for each of such 5 fiscal years, which 
        shall be determined by the Committees on the Budget of the 
        House of Representatives and the Senate after receipt of a 
        report on such matter transmitted to such committees by the 
        Director of the Congressional Budget Office 6 months after the 
        date of enactment of this section and thereafter in February of 
        each calendar year.
  ``(c) Committee Notification of Emergency Legislation.--Whenever any 
committee of either House (including a committee of conference) reports 
any bill or joint resolution that provides budget authority for any 
emergency, the report accompanying that bill or joint resolution (or 
the joint explanatory statement of managers in the case of a conference 
report on any such bill or joint resolution) shall identify all 
provisions that provide budget authority and the outlays flowing 
therefrom for such emergency and include a statement of the reasons why 
such budget authority meets the definition of an emergency pursuant to 
the guidelines referred to in section 204 of the Comprehensive Budget 
Process Reform Act of 1999.''.
  (b) Conforming Amendment.--The table of contents set forth in section 
1(b) of the Congressional Budget and Impoundment Control Act of 1974 is 
amended by inserting after the item relating to section 316 the 
following new item:

``Sec. 317. Emergencies.''.

SEC. 207. UP-TO-DATE TABULATIONS.

  Section 308(b)(2) of the Congressional Budget Act of 1974 is amended 
by striking ``and'' at the end of subparagraph (B), by striking the 
period at the end of subparagraph (C) and inserting ``; and'', and by 
adding at the end the following new subparagraph:
                  ``(D) shall include an up-to-date tabulation of 
                amounts remaining in the reserve fund for 
                emergencies.''.

SEC. 208. PROHIBITION ON AMENDMENTS TO EMERGENCY RESERVE FUND.

  (a) Point of Order.--Section 305 of the Congressional Budget Act of 
1974 (as amended by section 103(c)) is further amended by adding at the 
end the following new subsection:
  ``(f) Point of Order Regarding Emergency Reserve Fund.--It shall not 
be in order in the House of Representatives or in the Senate to 
consider an amendment to a joint resolution on the budget (or 
concurrent resolution on the budget, as the case may be) which changes 
the amount of budget authority and outlays set forth in section 
301(a)(4) for emergency reserve fund.''.
  (b) Technical Amendment.--(1) Section 904(c)(1) of the Congressional 
Budget Act of 1974 is amended by inserting ``305(e), 305(f),'' after 
``305(c)(4),''.
  (2) Section 904(d)(2) of the Congressional Budget Act of 1974 is 
amended by inserting ``305(e), 305(f),'' after ``305(c)(4),''.

SEC. 209. EFFECTIVE DATE.

  The amendments made by this title shall apply to fiscal year 2001 and 
subsequent fiscal years, but such amendments shall take effect only 
after the enactment of legislation changing or extending for any fiscal 
year the budgetary procedures set forth in sections 251 and 252 of the 
Balanced Budget and Emergency Deficit Control Act of 1985.

             TITLE III--ENFORCEMENT OF BUDGETARY DECISIONS

SEC. 301. PURPOSES.

  The purposes of this title are to--
          (1) close loopholes in the enforcement of budget resolutions;
          (2) require committees of the House of Representatives to 
        include budget compliance statements in reports accompanying 
        all legislation; and
          (3) require committees of the House of Representatives to 
        justify the need for waivers of the Congressional Budget Act of 
        1974;
          (4) provide cost estimates of conference reports.

  Subtitle A--Application of Points of Order to Unreported Legislation

SEC. 311. APPLICATION OF BUDGET ACT POINTS OF ORDER TO UNREPORTED 
                    LEGISLATION.

  (a) Section 315 of the Congressional Budget Act of 1974 is amended by 
striking ``reported'' the first place it appears.
  (b) Section 303(b) of the Congressional Budget Act of 1974 (as 
amended by section 104(b)(1)) is further amended--
          (1) in paragraph (1), by striking ``(A)'' and by 
        redesignating subparagraph (B) as paragraph (2) and by striking 
        the semicolon at the end of such new paragraph (2) and 
        inserting a period; and
          (2) by striking paragraph (2) (as redesignated by such 
        section 104(b)(1)).

             Subtitle B--Compliance with Budget Resolution

SEC. 321. BUDGET COMPLIANCE STATEMENTS.

  Clause 3(d) of rule XIII of the Rules of the House of Representatives 
is amended by adding at the end the following new subparagraph:
          ``(4) A budget compliance statement prepared by the chairman 
        of the Committee on the Budget, if timely submitted prior to 
        the filing of the report, which shall include assessment by 
        such chairman as to whether the bill or joint resolution 
        complies with the requirements of sections 302, 303, 306, 311, 
        and 401of the Congressional Budget Act of 1974 and may include 
the budgetary implications of that bill or joint resolution under 
section 251 or 252 of the Balanced Budget and Emergency Deficit Control 
Act of 1985, as applicable.''.

            Subtitle C--Justification for Budget Act Waivers

SEC. 331. JUSTIFICATION FOR BUDGET ACT WAIVERS IN THE HOUSE OF 
                    REPRESENTATIVES.

  Clause 6 of rule XIII of the Rules of the House of Representatives is 
amended by adding at the end the following new paragraph:
  ``(h) It shall not be in order to consider any resolution from the 
Committee on Rules for the consideration of any reported bill or joint 
resolution which waives section 302, 303, 311, or 401 of the 
Congressional Budget Act of 1974, unless the report accompanying such 
resolution includes a description of the provision proposed to be 
waived, an identification of the section being waived, the reasons why 
such waiver should be granted, and an estimated cost of the provisions 
to which the waiver applies.''.

             Subtitle D--CBO Scoring of Conference Reports

SEC. 341. CBO SCORING OF CONFERENCE REPORTS.

  (a) The first sentence of section 402 of the Congressional Budget Act 
of 1974 is amended as follows:
          (1) Insert ``or conference report thereon,'' before ``and 
        submit''.
          (2) In paragraph (1), strike ``bill or resolution'' and 
        insert ``bill, joint resolution, or conference report''.
          (3) At the end of paragraph (2) strike ``and'', at the end of 
        paragraph (3) strike the period and insert ``; and'', and after 
        such paragraph (3) add the following new paragraph:
          ``(4) A determination of whether such bill, joint resolution, 
        or conference report provides direct spending.''.
  (b) The second sentence of section 402 of the Congressional Budget 
Act of 1974 is amended by inserting before the period the following: 
``, or in the case of a conference report, shall be included in the 
joint explanatory statement of managers accompanying such conference 
report if timely submitted before such report is filed''.

             TITLE IV--ACCOUNTABILITY FOR FEDERAL SPENDING

SEC. 401. PURPOSES.

  The purposes of this title are to--
          (1) require committees to develop a schedule for 
        reauthorizing all programs within their jurisdictions;
          (2) facilitate amendments to subject new entitlement programs 
        to annual discretionary appropriations;
          (3) require the Committee on the Budget to justify any 
        allocation to an authorizing committee for legislation that 
        would not be subject to annual discretionary appropriation;
          (4) provide estimates of the long-term impact of spending and 
        tax legislation;
          (5) provide a point of order for legislation creating a new 
        direct spending program that does not expire within 10 years; 
        and
          (6) require a vote in the House of Representatives on any 
        measure that increases the statutory limit on the public debt.

               Subtitle A--Limitations on Direct Spending

SEC. 411. FIXED-YEAR AUTHORIZATIONS REQUIRED FOR NEW PROGRAMS.

  (a) In General.--Section 401 of the Congressional Budget Act of 1974 
is amended--
          (1) by striking subsections (a) and (b) and inserting the 
        following new subsection:
  ``(a) Limitation on Direct Spending.--It shall not be in order in the 
House of Representatives or in the Senate to consider a bill or joint 
resolution, or an amendment, motion, or conference report that provides 
direct spending for a new program, unless such spending is limited to a 
period of 10 or fewer fiscal years.'';
          (2) by redesignating subsection (c) as subsection (b) and by 
        striking ``Subsections (a) and (b) each place it appears and 
        inserting ``Subsection (a)'' in such redesignated subsection 
        (b); and
          (3) by amending the section heading to read as follows:
      ``fixed-year authorizations required for direct spending''.
  (b) Conforming Amendment.--The item relating to section 401 in the 
table of contents set forth in section 1(b) of the Congressional Budget 
and Impoundment Control Act of 1974 is amended to read as follows:

``Sec. 401. Fixed-year authorizations required for direct spending.''.

  (c) Limitation on Authorization of Discretionary Appropriations.--
Rule XXI of the Rules of the House of Representatives is amended by 
adding at the end the following new clause:
  ``6. It shall not be in order to consider any bill, joint resolution, 
amendment, or conference report that authorizes the appropriation of 
new budget authority (as defined in section 3(2)(C) of the 
Congressional Budget and Impoundment Control Act of 1974) for a new 
program, unless such authorization is specifically provided for a 
period of 10 or fewer fiscal years.''.

SEC. 412. AMENDMENTS TO SUBJECT NEW DIRECT SPENDING TO ANNUAL 
                    APPROPRIATIONS.

  (a) House Procedures.--Clause 5 of rule XVIII of the Rules of the 
House of Representatives is amended by adding at the end the following 
new paragraph:
  ``(c)(1) In the Committee of the Whole, an amendment only to subject 
a new program which provides direct spending to discretionary 
appropriations, if offered by the chairman of the Committee on the 
Budget (or his designee) or the chairman of the Committee of 
Appropriations (or his designee), may be precluded from consideration 
only by the specific terms of a special order of the House. Any such 
amendment, if offered, shall be debatable for twenty minutes equally 
divided and controlled by the proponent of the amendment and a Member 
opposed and shall not be subject to amendment.
  ``(2) As used in subparagraph (1), the term `direct spending' has the 
meaning given such term in section 3(11) of the Congressional Budget 
and Impoundment Control Act of 1974.''.
  (b) Adjustment of Discretionary Spending Limits for Discretionary 
Appropriations Offset by Direct Spending Savings.--
          (1) Purpose.--The purpose of the amendments made by this 
        subsection is to hold the discretionary spending limits and the 
        allocations made to the Committee on Appropriations under 
        section 302(a) of the Congressional Budget Act of 1974 harmless 
        for legislation that offsets a new discretionary program with a 
        designated reduction in direct spending.
          (2) Designating direct spending savings in authorization 
        legislation for new discretionary programs.--Section 252 of the 
        Balanced Budget and Emergency Deficit Control Act of 1985 (as 
        amended by section 202) is further amended by adding at the end 
        the following new subsection:
  ``(e) Offsets.--If a provision of direct spending legislation is 
enacted that--
          ``(1) decreases direct spending for any fiscal year; and
          ``(2) is designated as an offset pursuant to this subsection 
        and such designation specifically identifies an authorization 
        of discretionary appropriations (contained in such legislation) 
        for a new program,
then the reductions in new budget authority and outlays in all fiscal 
years resulting from that provision shall be designated as an offset in 
the reports required under subsection (d).''.
          (3) Exempting such designated direct spending savings from 
        paygo scorecard.--Section 252(d)(4) of the Balanced Budget and 
        Emergency Deficit Control Act of 1985 (as amended by section 
        202(b)) is further amended by adding at the end the following 
        new subparagraph:
                  ``(B) offset provisions as designated under 
                subsection (e).''.
          (4) Adjustment in discretionary spending limits.--Section 
        251(b)(2) of the Balanced Budget and Emergency Deficit Control 
        Act of 1985 (as amended by section 202(a)(2)) is further 
        amended by adding at the end the following new subparagraph:
                  ``(G) Discretionary authorization offsets.--If an Act 
                other than an appropriation Act includes any provision 
                reducing direct spending andspecifically identifies any 
such provision as an offset pursuant to section 252(e), the adjustments 
shall be an increase in the discretionary spending limits for budget 
authority and outlays in each fiscal year equal to the amount of the 
budget authority and outlay reductions, respectively, achieved by the 
specified offset in that fiscal year, except that the adjustments for 
the budget year in which the offsetting provision takes effect shall 
not exceed the amount of discretionary new budget authority provided 
for the new program (authorized in that Act) in an Act making 
discretionary appropriations and the outlays flowing therefrom.''.
          (5) Adjustment in appropriation committee's allocations.--
        Section 314(b) of the Congressional Budget Act of 1974 (as 
        amended by section 202(d)) is further amended by striking ``; 
        or'' at the end of paragraph (4), by striking the period and 
        inserting ``; or'' at the end of paragraph (5), and by adding 
        at the end the following new paragraph:
          ``(6) the amount provided in an Act making discretionary 
        appropriations for the program for which an offset was 
        designated pursuant to section 252(e) of the Balanced Budget 
        and Emergency Deficit Control Act of 1985 and any outlays 
        flowing therefrom, but not to exceed the amount of the 
        designated decrease in direct spending for that year for that 
        program in a prior law.''.
          (6) Adjustment in authorizing committee's allocations.--
        Section 314 of the Congressional Budget Act of 1974 is amended 
        by adding at the end the following new subsection:
  ``(f) Adjustment in Authorizing Committee's Allocations by Amount of 
Direct Spending Offset.--After the reporting of a bill or joint 
resolution (by a committee other than the Committee on Appropriations), 
or the offering of an amendment thereto or the submission of a 
conference report thereon, that contains a provision that decreases 
direct spending for any fiscal year and that is designated as an offset 
pursuant to section 252(e) of the Balanced Budget and Emergency Deficit 
Control Act of 1985, the chairman of the Committee on the Budget shall 
reduce the allocations of new budget authority and outlays made to such 
committee under section 302(a)(1) by the amount so designated.''.

     Subtitle B--Enhanced Congressional Oversight Responsibilities

SEC. 421. TEN-YEAR CONGRESSIONAL REVIEW REQUIREMENT OF PERMANENT BUDGET 
                    AUTHORITY.

  (a) Timetable for Review.--Clause 2(d)(1) of rule X of the Rules of 
the House of Representatives is amended by striking subdivisions (B) 
and (C) and inserting the following new subdivision:
          ``(B) provide in its plans a specific timetable for its 
        review of those laws, programs, or agencies within its 
        jurisdiction, including those that operate under permanent 
        budget authority or permanent statutory authority and such 
        timetable shall demonstrate that each law, program, or agency 
        within the committee's jurisdiction will be reauthorized at 
        least once every ten years.''.
  (b) Review of Permanent Budget Authority by the Committee on 
Appropriations.--Clause 4(a) of rule X of the Rules of the House of 
Representatives is amended--
          (1) by striking subparagraph (2); and
          (2) by redesignating subparagraphs (3) and (4) as 
        subparagraphs (2) and (3) and by striking ``from time to time'' 
        and inserting ``at least once each Congress'' in subparagraph 
        (2) (as redesignated).
  (c) Conforming Amendment.--Clause 4(e)(2) of rule X of the Rules of 
the House of Representatives is amended by striking ``from time to 
time'' and inserting ``at least once every ten years''.

SEC. 422. JUSTIFICATIONS OF DIRECT SPENDING.

  (a) Section 302 Allocations.--Section 302(a) of the Congressional 
Budget Act of 1974 (as amended by section 104(a)) is further amended by 
adding at the end the following new paragraph:
          ``(5) Justification of certain spending allocations.--The 
        joint explanatory statement accompanying a conference report on 
        a joint resolution on the budget that includes any allocation 
        to a committee (other than the Committee on Appropriations) of 
        levels in excess of current law levels shall set forth a 
        justification for not subjecting any program, project, or 
        activity (for which the allocation is made) to annual 
        discretionary appropriation.''.
  (b) Presidents' Budget Submissions.--Section 1105(a) of title 31, 
United States Code, is amended by adding at the end the following new 
paragraph:
          ``(33) a justification for not subjecting each new program, 
        project, or activity to discretionary appropriations.''.
  (c) Committee Justification for Direct Spending.--Clause 4(e)(2) of 
rule X of the Rules of the House of Representatives is amended by 
inserting before the period the following: ``, and will provide 
specific information in any report accompanying such bills and joint 
resolutions to the greatest extent practicable to justify why the 
programs, projects, and activities involved would not be subject to 
annual appropriation''.

SEC. 423. SURVEY OF ACTIVITY REPORTS OF HOUSE COMMITTEES.

  Clause 1(d) of rule XI of the Rules of the House of Representatives 
is amended by redesignating paragraph (4) as paragraph (5) and by 
inserting after paragraph (3) the following new paragraph:
  ``(4) Such report shall include a summary of and justifications for 
all bills and joint resolutions reported by such committee that--
          ``(A) were considered before the adoption of the appropriate 
        budget resolution and did not fall within an exception set 
        forth in section 303(b) of the Congressional Budget Act of 
        1974;
          ``(B) exceeded its allocation under section 302(a) of such 
        Act or breached an aggregate level in violation of section 311 
        of such Act; or
          ``(C) contained provisions in violation of section 401(a) of 
        such Act pertaining to indefinite direct spending authority.
Such report shall also specify the total amount by which legislation 
reported by that committee exceeded its allocation under section 302(a) 
or breached the revenue floor under section 311(a) of such Act for each 
fiscal year during that Congress.''.

SEC. 424. CONTINUING STUDY OF ADDITIONAL BUDGET PROCESS REFORMS.

  Section 703 of the Congressional Budget Act of 1974 is amended as 
follows:
          (1) In subsection (a), strike ``and'' at the end of paragraph 
        (3), strike the period at the end of paragraph (4) and insert 
        ``; and'', and at the end add the following new paragraph:
          ``(5) evaluating whether existing programs, projects, and 
        activities should be subject to discretionary appropriations 
        and establishing guidelines for subjecting new or expanded 
        programs, projects, and activities to annual appropriation and 
        recommend any necessary changes in statutory enforcement 
        mechanisms and scoring conventions to effectuate such 
        changes.''.
          (2) In subsection (b), strike ``from time to time'' and 
        insert ``during the One Hundred Sixth Congress''.

SEC. 425. GAO REPORTS.

    The last sentence of section 404 of the Congressional Budget Act of 
1974 is amended to read as follows: ``Such report shall be revised at 
least once every five years and shall be transmitted to the chairman 
and ranking minority member of each committee of the House of 
Representatives and the Senate.''.

                Subtitle C--Strengthened Accountability

SEC. 431. TEN-YEAR CBO ESTIMATES.

  (a) CBO Reports on Legislation.--Section 308(a)(1)(B) of the 
Congressional Budget Act of 1974 is amended by striking ``four'' and 
inserting ``nine''.
  (b) Analysis by CBO.--Section 402(1) of the Congressional Budget Act 
of 1974 is amended by striking ``4'' and inserting ``nine''.
  (c) Cost Estimates.--Clause 3(d)(2)(A) of rule XIII of the Rules of 
the House of Representatives is amended by striking ``five'' each place 
it appears and inserting ``10''.

SEC. 432. REPEAL OF RULE XXIII OF THE RULES OF THE HOUSE OF 
                    REPRESENTATIVES.

  Rule XXIII of the Rules of the House of Representatives (relating to 
the establishment of the statutory limit on the public debt) is 
repealed.

    TITLE V--BUDGETING FOR UNFUNDED LIABILITIES AND OTHER LONG-TERM 
                              OBLIGATIONS

SEC. 501. PURPOSES.

  The purposes of this title are to--
          (1) budget for the long-term costs of Federal insurance 
        programs;
          (2) improve congressional control of those costs; and
          (3) periodically report on long-term budgetary trends.

     Subtitle A--Budgetary Treatment of Federal Insurance Programs

SEC. 511. FEDERAL INSURANCE PROGRAMS.

  (a) In General.--The Congressional Budget Act of 1974 is amended by 
adding after title V the following new title:

     ``TITLE VI--BUDGETARY TREATMENT OF FEDERAL INSURANCE PROGRAMS

``SEC. 601. SHORT TITLE.

  ``This title may be cited as the `Federal Insurance Budgeting Act of 
1999'.

``SEC. 602. BUDGETARY TREATMENT.

  ``(a) President's Budget.--Beginning with fiscal year 2006, the 
budget of the Government pursuant to section 1105(a) of title 31, 
United States Code, shall be based on the risk-assumed cost of Federal 
insurance programs.
  ``(b) Budget Accounting.--For any Federal insurance program--
          ``(1) the program account shall--
                  ``(A) pay the risk-assumed cost borne by the taxpayer 
                to the financing account, and
                  ``(B) pay actual insurance program administrative 
                costs;
          ``(2) the financing account shall--
                  ``(A) receive premiums and other income,
                  ``(B) pay all claims for insurance and receive all 
                recoveries,
                  ``(C) transfer to the program account on not less 
                than an annual basis amounts necessary to pay insurance 
                program administrative costs;
          ``(3) a negative risk-assumed cost shall be transferred from 
        the financing account to the program account, and shall be 
        transferred from the program account to the general fund; and
          ``(4) all payments by or receipts of the financing accounts 
        shall be treated in the budget as a means of financing.
  ``(c) Appropriations Required.--(1) Notwithstanding any other 
provision of law, insurance commitments may be made for fiscal year 
2006 and thereafter only to the extent that new budget authority to 
cover their risk-assumed cost is provided in advance in an 
appropriation Act.
  ``(2) An outstanding insurance commitment shall not be modified in a 
manner that increases its risk-assumed cost unless budget authority for 
the additional cost has been provided in advance.
  ``(3) Paragraph (1) shall not apply to Federal insurance programs 
that constitute entitlements.
  ``(d) Reestimates.--The risk-assumed cost for a fiscal year shall be 
reestimated in each subsequent year. Such reestimate can equal zero. In 
the case of a positive reestimate, the amount of the reestimate shall 
be paid from the program account to the financing account. In the case 
of a negative reestimate, the amount of the reestimate shall be paid 
from the financing account to the program account, and shall be 
transferred from the program account to the general fund. Reestimates 
shall be displayed as a distinct and separately identified subaccount 
in the program account.
  ``(e) Administrative Expenses.--All funding for an agency's 
administration of a Federal insurance program shall be displayed as a 
distinct and separately identified subaccount in the program account.

``SEC. 603. TIMETABLE FOR IMPLEMENTATION OF ACCRUAL BUDGETING FOR 
                    FEDERAL INSURANCE PROGRAMS.

  ``(a) Agency Requirements.--Agencies with responsibility for Federal 
insurance programs shall develop models to estimate their risk-assumed 
cost by year through the budget horizon and shall submit those models, 
all relevant data, a justification for critical assumptions, and the 
annual projected risk-assumed costs to OMB with their budget requests 
each year starting with the request for fiscal year 2002. Agencies will 
likewise provide OMB with annual estimates of modifications, if any, 
and reestimates of program costs.
  ``(b) Disclosure.--When the President submits a budget of the 
Government pursuant to section 1105(a) of title 31, United States Code, 
for fiscal year 2002, OMB shall publish a notice in the Federal 
Register advising interested persons of the availability of information 
describing the models, data (including sources), and critical 
assumptions (including explicit or implicit discount rate assumptions) 
that it or other executive branch entities would use to estimate the 
risk-assumed cost of Federal insurance programs and giving such persons 
an opportunity to submit comments. At the same time, the chairman of 
the Committee on the Budget shall publish a notice for CBO in the 
Federal Register advising interested persons of the availability of 
information describing the models, data (including sources), and 
critical assumptions (including explicit or implicit discount rate 
assumptions) that it would use to estimate the risk-assumed cost of 
Federal insurance programs and giving such interested persons an 
opportunity to submit comments.
  ``(c) Revision.--(1) After consideration of comments pursuant to 
subsection (b), and in consultation with the Committees on the Budget 
of the House of Representatives and the Senate, OMB and CBO shall 
revise the models, data, and major assumptions they would use to 
estimate the risk-assumed cost of Federal insurance programs.
  ``(2) When the President submits a budget of the Government pursuant 
to section 1105(a) of title 31, United States Code, for fiscal year 
2003, OMB shall publish a notice in the Federal Register advising 
interested persons of the availability of information describing the 
models, data (including sources), and critical assumptions (including 
explicit or implicit discount rate assumptions) that it or other 
executive branch entities used to estimate the risk-assumed cost of 
Federal insurance programs.
  ``(d) Display.--
          ``(1) In general.--For fiscal years 2003, 2004, and 2005 the 
        budget submissions of the President pursuant to section 1105(a) 
        of title 31, United States Code, and CBO's reports on the 
        economic and budget outlook pursuant to section 202(e)(1) and 
        the President's budgets, shall for display purposes only, 
        estimate the risk-assumed cost of existing or proposed Federal 
        insurance programs.
          ``(2) OMB.--The display in the budget submissions of the 
        President for fiscal years 2003, 2004, and 2005 shall include--
                  ``(A) a presentation for each Federal insurance 
                program in budget-account level detail of estimates of 
                risk-assumed cost;
                  ``(B) a summary table of the risk-assumed costs of 
                Federal insurance programs; and
                  ``(C) an alternate summary table of budget functions 
                and aggregates using risk-assumed rather than cash-
                based cost estimates for Federal insurance programs.
          ``(3) CBO.--In the second session of the 107th Congress and 
        the 108th Congress, CBO shall include in its estimates under 
        section 308, for display purposes only, the risk-assumed cost 
        of existing Federal insurance programs, or legislation that 
        CBO, in consultation with the Committees on the Budget of the 
        House of Representatives and the Senate, determines would 
        create a new Federal insurance program.
  ``(e) OMB, CBO, and GAO Evaluations.--(1) Not later than 6 months 
after the budget submission of the President pursuant to section 
1105(a) of title 31, United States Code, for fiscal year 2005, OMB, 
CBO, and GAO shall each submit to the Committees on the Budget of the 
House of Representatives and the Senate a report that evaluates the 
advisability and appropriate implementation of this title.
  ``(2) Each report made pursuant to paragraph (1) shall address the 
following:
          ``(A) The adequacy of risk-assumed estimation models used and 
        alternative modeling methods.
          ``(B) The availability and reliability of data or information 
        necessary to carry out this title.
          ``(C) The appropriateness of the explicit or implicit 
        discount rate used in the various risk-assumed estimation 
        models.
          ``(D) The advisability of specifying a statutory discount 
        rate (such as the Treasury rate) for use in risk-assumed 
        estimation models.
          ``(E) The ability of OMB, CBO, or GAO, as applicable, to 
        secure any data or information directly from any Federal agency 
        necessary to enable it to carry out this title.
          ``(F) The relationship between risk-assumed accrual budgeting 
        for Federal insurance programs and the specific requirements of 
        the Balanced Budget and Emergency Deficit Control Act of 1985.
          ``(G) Whether Federal budgeting is improved by the inclusion 
        of risk-assumed cost estimates for Federal insurance programs.
          ``(H) The advisability of including each of the programs 
        currently estimated on a risk-assumed cost basis in the Federal 
        budget on that basis.

``SEC. 604. DEFINITIONS.

  ``For purposes of this title:
          ``(1) The term `Federal insurance program' means a program 
        that makes insurance commitments and includes the list of such 
        programs included in the joint explanatory statement of 
        managers accompanying the conference report on the 
        Comprehensive Budget Process Reform Act of 1999.
          ``(2) The term `insurance commitment' means an agreement in 
        advance by a Federal agency to indemnify a nonfederal entity 
        against specified losses. This term does not include loan 
        guarantees as defined in title V or benefit programs such as 
        social security, medicare, and similar existing social 
        insurance programs.
          ``(3)(A) The term `risk-assumed cost' means the net present 
        value of the estimated cash flows to and from the Government 
        resulting from an insurance commitment or modification thereof.
          ``(B) The cash flows associated with an insurance commitment 
        include--
                  ``(i) expected claims payments inherent in the 
                Government's commitment;
                  ``(ii) net premiums (expected premium collections 
                received from or on behalf of the insured less expected 
                administrative expenses);
                  ``(iii) expected recoveries; and
                  ``(iv) expected changes in claims, premiums, or 
                recoveries resulting from the exercise by the insured 
                of any option included in the insurance commitment.
          ``(C) The cost of a modification is the difference between 
        the current estimate of the net present value of the remaining 
        cash flows under the terms of the insurance commitment, and the 
        current estimate of the net present value of the remaining cash 
        flows under the terms of the insurance commitment as modified.
          ``(D) The cost of a reestimate is the difference between the 
        net present value of the amount currently required by the 
        financing account to pay estimated claims and other 
        expenditures and the amount currently available in the 
        financing account. The cost of a reestimate shall be accounted 
        for in the current year in the budget of the Government 
        pursuant to section 1105(a) of title 31, United States Code.
          ``(E) For purposes of this definition, expected 
        administrative expenses shall be construed as the amount 
        estimated to be necessary for the proper administration of the 
        insurance program. This amount may differ from amounts actually 
        appropriated or otherwise made available for the administration 
        of the program.
          ``(4) The term `program account' means the budget account for 
        the risk-assumed cost, and for paying all costs of 
        administering the insurance program, and is the account from 
        which the risk-assumed cost is disbursed to the financing 
        account.
          ``(5) The term `financing account' means the nonbudget 
        account that is associated with each program account which 
        receives payments from or makes payments to the program 
        account, receives premiums and other payments from the public, 
        pays insurance claims, and holds balances.
          ``(6) The term `modification' means any Government action 
        that alters the risk-assumed cost of an existing insurance 
        commitment from the current estimate of cash flows. This 
        includes any action resulting from new legislation, or from the 
        exercise ofadministrative discretion under existing law, that 
directly or indirectly alters the estimated cost of existing insurance 
commitments.
          ``(7) The term `model' means any actuarial, financial, 
        econometric, probabilistic, or other methodology used to 
        estimate the expected frequency and magnitude of loss-producing 
        events, expected premiums or collections from or on behalf of 
        the insured, expected recoveries, and administrative expenses.
          ``(8) The term `current' has the same meaning as in section 
        250(c)(9) of the Balanced Budget and Emergency Deficit Control 
        Act of 1985.
          ``(9) The term `OMB' means the Director of the Office of 
        Management and Budget.
          ``(10) The term `CBO' means the Director of the Congressional 
        Budget Office.
          ``(11) The term `GAO' means the Comptroller General of the 
        United States.

``SEC. 605. AUTHORIZATIONS TO ENTER INTO CONTRACTS; ACTUARIAL COST 
                    ACCOUNT.

  ``(a) Authorization of Appropriations.--There is authorized to be 
appropriated $600,000 for each of fiscal years 2000 through 2005 to the 
Director of the Office of Management and Budget and each agency 
responsible for administering a Federal program to carry out this 
title.
  ``(b) Treasury Transactions With the Financing Accounts.--The 
Secretary of the Treasury shall borrow from, receive from, lend to, or 
pay the insurance financing accounts such amounts as may be 
appropriate. The Secretary of the Treasury may prescribe forms and 
denominations, maturities, and terms and conditions for the 
transactions described above. The authorities described above shall not 
be construed to supersede or override the authority of the head of a 
Federal agency to administer and operate an insurance program. All the 
transactions provided in this subsection shall be subject to the 
provisions of subchapter II of chapter 15 of title 31, United States 
Code. Cash balances of the financing accounts in excess of current 
requirements shall be maintained in a form of uninvested funds, and the 
Secretary of the Treasury shall pay interest on these funds.
  ``(c) Appropriation of Amount Necessary To Cover Risk-Assumed Cost of 
Insurance Commitments at Transition Date.--(1) A financing account is 
established on September 30, 2005, for each Federal insurance program.
  ``(2) There is appropriated to each financing account the amount of 
the risk-assumed cost of Federal insurance commitments outstanding for 
that program as of the close of September 30, 2005.
  ``(3) These financing accounts shall be used in implementing the 
budget accounting required by this title.

``SEC. 606. EFFECTIVE DATE.

  ``(a) In General.--This title shall take effect immediately and shall 
expire on September 30, 2007.
  ``(b) Special Rule.--If this title is not reauthorized by September 
30, 2007, then the accounting structure and budgetary treatment of 
Federal insurance programs shall revert to the accounting structure and 
budgetary treatment in effect immediately before the date of enactment 
of this title.''.
  (b)  Conforming Amendment.--The table of contents set forth in 
section 1(b) of the Congressional Budget and Impoundment Control Act of 
1974 is amended by inserting after the item relating to section 507 the 
following new items:

     ``TITLE VI--BUDGETARY TREATMENT OF FEDERAL INSURANCE PROGRAMS

``Sec. 601. Short title.
``Sec. 602. Budgetary treatment.
``Sec. 603. Timetable for implementation of accrual budgeting for 
Federal insurance programs.
``Sec. 604. Definitions.
``Sec. 605. Authorizations to enter into contracts; actuarial cost 
account.
``Sec. 606. Effective date.''.

           Subtitle B--Reports on Long-Term Budgetary Trends

SEC. 521. REPORTS ON LONG-TERM BUDGETARY TRENDS.

  (a) The President's Budget.--Section 1105(a) of title 31, United 
States Code (as amended by section 404), is further amended by adding 
at the end the following new paragraph:
          ``(34) an analysis based upon current law and an analysis 
        based upon the policy assumptions underlying the budget 
        submission for every fifth year of the period of 75 fiscal 
        years beginning with such fiscal year, of the estimated levels 
        of total new budget authority and total budget outlays, 
        estimated revenues, estimated surpluses and deficits, and, for 
        social security, medicare, medicaid, and all other direct 
        spending, estimated levels of total new budget authority and 
        total budget outlays; and a specification of its underlying 
        assumptions and asensitivity analysis of factors that have a 
significant effect on the projections made in each analysis; and a 
comparison of the effects of each of the two analyses on the economy, 
including such factors as inflation, foreign investment, interest 
rates, and economic growth.''.
  (b) CBO Reports.--Section 202(e)(1) of the Congressional Budget Act 
of 1974 is amended by adding at the end the following new sentences: 
``Such report shall also include an analysis based upon current law for 
every fifth year of the period of 75 fiscal years beginning with such 
fiscal year, of the estimated levels of total new budget authority and 
total budget outlays, estimated revenues, estimated surpluses and 
deficits, and, for social security, medicare, medicaid, and all other 
direct spending, estimated levels of total new budget authority and 
total budget outlays. The report described in the preceding sentence 
shall also specify its underlying assumptions and set forth a 
sensitivity analysis of factors that have a significant effect on the 
projections made in the report.''.

              TITLE VI--BASELINES, BYRD RULE, AND LOCK-BOX

SEC. 601. PURPOSE.

The purposes of this title are to--
          (1) require budgetary comparisons to prior year levels;
          (2) restrict the application of the Byrd rule to measures 
        other than conference reports; and
          (3) establish a procedure to allow savings from spending cuts 
        in appropriation measures to be locked-in to increase the 
        surplus or reduce the deficit.

                        Subtitle A--The Baseline

SEC. 611. THE PRESIDENT'S BUDGET.

  (a) Paragraph (5) of section 1105(a) of title 31, United States Code, 
is amended to read as follows:
          ``(5) except as provided in subsection (b) of this section, 
        estimated expenditures and appropriations for the current year 
        and estimated expenditures and proposed appropriations the 
        President decides are necessary to support the Government in 
        the fiscal year for which the budget is submitted and the 4 
        fiscal years following that year, and, except for detailed 
        budget estimates, the percentage change from the current year 
        to the fiscal year for which the budget is submitted for 
        estimated expenditures and for appropriations.''.
  (b) Section 1105(a)(6) of title 31, United States Code, is amended to 
read as follows:
          ``(6) estimated receipts of the Government in the current 
        year and the fiscal year for which the budget is submitted and 
        the 4 fiscal years after that year under--
                  ``(A) laws in effect when the budget is submitted; 
                and
                  ``(B) proposals in the budget to increase revenues,
        and the percentage change (in the case of each category 
        referred to in subparagraphs (A) and (B)) between the current 
        year and the fiscal year for which the budget is submitted and 
        between the current year and each of the 9 fiscal years after 
        the fiscal year for which the budget is submitted.''.
  (c) Section 1105(a)(12) of title 31, United States Code, is amended 
to read as follows:
          ``(12) for each proposal in the budget for legislation that 
        would establish or expand a Government activity or function, a 
        table showing--
                  ``(A) the amount proposed in the budget for 
                appropriation and for expenditure because of the 
                proposal in the fiscal year for which the budget is 
                submitted;
                  ``(B) the estimated appropriation required because of 
                the proposal for each of the 4 fiscal years after that 
                year that the proposal will be in effect; and
                  ``(C) the estimated amount for the same activity or 
                function, if any, in the current fiscal year,
        and, except for detailed budget estimates, the percentage 
        change (in the case of each category referred to in 
        subparagraphs (A), (B), and (C)) between the current year and 
        the fiscal year for which the budget is submitted.''.
  (d) Section 1105(a)(18) of title 31, United States Code, is amended 
by inserting ``new budget authority and'' before ``budget outlays''.
  (e) Section 1105(a) of title 31, United States Code, (as amended by 
sections 412(b) and 521(a)) is further amended by adding at the end the 
following new paragraphs:
          ``(35) a comparison of levels of estimated expenditures and 
        proposed appropriations for each function and subfunction in 
        the current fiscal year and the fiscal year for which the 
        budget is submitted, along with the proposed increase or 
        decrease of spending in percentage terms for each function and 
        subfunction.
          ``(36) a table on sources of growth in total direct spending 
        under current law and as proposed in this budget submission for 
        the budget year and the ensuing 9 fiscal years, which shall 
        include changes in outlays attributable to the following: cost-
        of-living adjustments; changes in the number of program 
        recipients; increases in medical care prices, utilization and 
        intensity of medical care; and residual factors.''.
  (f) Section 1109(a) of title 31, United States Code, is amended by 
inserting after the first sentence the following new sentence: ``For 
discretionary spending, these estimates shall assume the levels set 
forth in the discretionary spending limits under section 251(c) of the 
Balanced Budget and Emergency Deficit Control Act of 1985, as adjusted, 
for the appropriate fiscal years (and if no such limits are in effect, 
these estimates shall assume the adjusted levels for the most recent 
fiscal year for which such levels were in effect).''.

SEC. 612. THE CONGRESSIONAL BUDGET.

  Section 301(e) of the Congressional Budget Act of 1974 (as amended by 
section 103) is further amended--
          (1) in paragraph (1), by inserting at the end the following: 
        ``The basis of deliberations in developing such joint 
        resolution shall be the estimated budgetary levels for the 
        preceding fiscal year. Any budgetary levels pending before the 
        committee and the text of the joint resolution shall be 
        accompanied by a document comparing such levels or such text to 
        the estimated levels of the prior fiscal year. Any amendment 
        offered in the committee that changes a budgetary level and is 
        based upon a specific policy assumption for a program, project, 
        or activity shall be accompanied by a document indicating the 
        estimated amount for such program, project, or activity in the 
        current year.''; and
          (2) in paragraph (2), by striking ``and'' at the end of 
        subparagraph (H) (as redesignated), by striking the period and 
        inserting ``; and'' at the end of subparagraph (I) (as 
        redesignated), and by adding at the end the following new 
        subparagraph:
                  ``(J) a comparison of levels for the current fiscal 
                year with proposed spending and revenue levels for the 
                subsequent fiscal years along with the proposed 
                increase or decrease of spending in percentage terms 
                for each function.''.

SEC. 613. CONGRESSIONAL BUDGET OFFICE REPORTS TO COMMITTEES.

  (a) The first sentence of section 202(e)(1) of the Congressional 
Budget Act of 1974 is amended by inserting ``compared to comparable 
levels for the current year'' before the comma at the end of 
subparagraph (A) and before the comma at the end of subparagraph (B).
  (b) Section 202(e)(1) of the Congressional Budget Act of 1974 is 
amended by inserting after the first sentence the following new 
sentence: ``Such report shall also include a table on sources of 
spending growth in total direct spending for the budget year and the 
ensuing 9 fiscal years, which shall include changes in outlays 
attributable to the following: cost-of-living adjustments; changes in 
the number of program recipients; increases in medical care prices, 
utilization and intensity of medical care; and residual factors.''.
  (c) Section 308(a)(1)(B) of the Congressional Budget Act of 1974 is 
amended by inserting ``and shall include a comparison of those levels 
to comparable levels for the current fiscal year'' before ``if timely 
submitted''.

SEC. 614. OUTYEAR ASSUMPTIONS FOR DISCRETIONARY SPENDING.

  For purposes of chapter 11 of title 31 of the United States Code, or 
the Congressional Budget Act of 1974, unless otherwise expressly 
provided, in making budgetary projections for years for which there are 
no discretionary spending limits, the Director of the Office of 
Management and Budget and the Director of the Congressional Budget 
Office shall assume discretionary spending levels at the levels for the 
last fiscal year for which such levels were in effect.

                       Subtitle B--The Byrd Rule

SEC. 621. LIMITATION ON BYRD RULE.

  (a) Protection of Conference Reports.--Section 313 of the 
Congressional Budget Act of 1974 is amended--
          (1) in subsection (c), by striking ``and again upon the 
        submission of a conference report on such a reconciliation bill 
        or resolution,'';
          (2) by striking subsection (d);
          (3) by redesignating subsection (e) as subsection (d); and
          (4) in subsection (e), as redesignated--
                  (A) by striking ``, motion, or conference report'' 
                the first place it appears and inserting ``, or 
                motion''; and
                  (B) by striking ``, motion, or conference report'' 
                the second and third places it appears and inserting 
                ``or motion''.
  (b) Conforming Amendment.--The first sentence of section 312(e) of 
the Congressional Budget Act of 1974 is amended by inserting ``, except 
for section 313,'' after ``Act''.

              Subtitle C--Spending Accountability Lock-box

SEC. 631. SHORT TITLE.

  This subtitle may be cited as the ``Spending Accountability Lock-box 
Act of 1999''.

SEC. 632. SPENDING ACCOUNTABILITY LOCK-BOX LEDGER.

  (a) Establishment of Ledger.--Title III of the Congressional Budget 
Act of 1974 (as amended by sections 104(c) and 206(a)) is further 
amended by adding after section 317 the following new section:
               ``spending accountability lock-box ledger
  ``Sec. 318. (a) Establishment of Ledger.--The chairman of the 
Committee on the Budget of the House of Representatives and the 
chairman on the Committee on the Budget of the Senate shall each 
maintain a ledger to be known as the `Spending Accountability Lock-box 
Ledger'. The Ledger shall be divided into entries corresponding to the 
subcommittees of the Committees on Appropriations. Each entry shall 
consist of three components: the `House Lock-box Balance'; the `Senate 
Lock-box Balance'; and the `Joint House-Senate Lock-box Balance'.
  ``(b) Components of Ledger.--Each component in an entry shall consist 
only of amounts credited to it under subsection (c). No entry of a 
negative amount shall be made.
  ``(c) Credit of Amounts to Ledger.--(1) In the House of 
Representatives or the Senate, whenever a Member offers an amendment to 
an appropriation bill to reduce new budget authority in any account, 
that Member may state the portion of such reduction that shall be--
          ``(A) credited to the House or Senate Lock-box Balance, as 
        applicable; or
          ``(B) used to offset an increase in new budget authority in 
        any other account;
          ``(C) allowed to remain within the applicable section 302(b) 
        suballocation.
If no such statement is made, the amount of reduction in new budget 
authority resulting from the amendment shall be credited to the House 
or Senate Lock-box Balance, as applicable, if the amendment is agreed 
to.
  ``(2)(A) Except as provided by subparagraph (B), the chairmen of the 
Committees on the Budget shall, upon the engrossment of any 
appropriation bill by the House of Representatives and upon the 
engrossment of Senate amendments to that bill, credit to the applicable 
entry balance of that House amounts of new budget authority and outlays 
equal to the net amounts of reductions in new budget authority and in 
outlays resulting from amendments agreed to by that House to that bill.
  ``(B) When computing the net amounts of reductions in new budget 
authority and in outlays resulting from amendments agreed to by the 
House of Representatives or the Senate to an appropriation bill, the 
chairmen of the Committees on the Budget shall only count those 
portions of such amendments agreed to that were so designated by the 
Members offering such amendments as amounts to be credited to the House 
or Senate Lock-box Balance, as applicable, or that fall within the last 
sentence of paragraph (1).
  ``(3) The chairmen of the Committees on the Budget shall, upon the 
engrossment of Senate amendments to any appropriation bill, credit to 
the applicable Joint House-Senate Lock-box Balance the amounts of new 
budget authority and outlays equal to--
          ``(A) an amount equal to one-half of the sum of (i) the 
        amount of new budget authority in the House Lock-box Balance 
        plus (ii) the amount of new budget authority in the Senate 
        Lock-box Balance for that subcommittee; and
          ``(B) an amount equal to one-half of the sum of (i) the 
        amount of outlays in the House Lock-box Balance plus (ii) the 
        amount of outlays in the Senate Lock-box Balance for that 
        subcommittee.
  ``(4) Calculation of Lock-Box Savings in Senate.--For purposes of 
calculating under this section the net amounts of reductions in new 
budget authority and in outlays resulting from amendments agreed to by 
the Senate on an appropriation bill, the amendments reported to the 
Senate by its Committee on Appropriations shall be considered to be 
part of the original text of the bill.
  ``(d) Definition.--As used in this section, the term `appropriation 
bill' means any general or special appropriation bill, and any bill or 
joint resolution making supplemental, deficiency, or continuing 
appropriations through the end of a fiscal year.
  ``(e) Tally During House Consideration.--The chairman of the 
Committee on the Budget of the House of Representatives shall maintain 
a running tally of the amendments adopted reflecting increases and 
decreases of budget authority in the bill as reported. This tally shall 
be available to Members in the House of Representatives during 
consideration of any appropriations bill by the House.''.
  (b) Conforming Amendment.--The table of contents set forth in section 
1(b) of the Congressional Budget and Impoundment Control Act of 1974 is 
amended by inserting after the item relating to section 317 the 
following new item:

``Sec. 318. Spending accountability lock-box ledger.''.

SEC. 633. DOWNWARD ADJUSTMENT OF SECTION 302(A) ALLOCATIONS AND SECTION 
                    302(B) SUBALLOCATIONS.

  (a) Allocations.--Section 302(a) of the Congressional Budget Act of 
1974 (as amended by section 422) is further amended by adding at the 
end the following new paragraph:
          ``(6) Adjustment of allocations.--Upon the engrossment of 
        Senate amendments to any appropriation bill (as defined in 
        section 318(d)) for a fiscal year, the amounts allocated under 
        paragraph (1) or (2) to the Committee on Appropriations of each 
        House upon the adoption of the most recent joint resolution on 
        the budget for that fiscal year shall be adjusted downward by 
        the amounts credited to the applicable Joint House-Senate Lock-
        box Balance under section 318(c)(2). The revised levels of new 
        budget authority and outlays shall be submitted to each House 
        by the chairman of the Committee on the Budget of that House 
        and shall be printed in the Congressional Record.''.
  (b) Suballocations.--Section 302(b) of the Congressional Budget Act 
of 1974 is amended by adding at the end the following new sentence: 
``Whenever an adjustment is made under subsection (a)(7) to an 
allocation under that subsection, the Committee on Appropriations of 
each House shall make downward adjustments in the most recent 
suballocations of new budget authority and outlays under this 
subparagraph to the appropriate subcommittees of that committee in the 
total amounts of those adjustments under section 318(c)(2). The revised 
suballocations shall be submitted to each House by the chairman of the 
Committee on Appropriations of that House and shall be printed in the 
Congressional Record.''.

SEC. 634. PERIODIC REPORTING OF LEDGER STATEMENTS.

  Section 308(b)(1) of the Congressional Budget Act of 1974 is amended 
by adding at the end the following new sentence: ``Such reports shall 
also include an up-to-date tabulation of the amounts contained in the 
ledger and each entry established by section 318(a).''.

SEC. 635. DOWNWARD ADJUSTMENT OF DISCRETIONARY SPENDING LIMITS.

  The discretionary spending limits for new budget authority and 
outlays for any fiscal year set forth in section 251(c) of the Balanced 
Budget and Emergency Deficit Control Act of 1985, shall be reduced by 
the amounts set forth in the final regular appropriation bill for that 
fiscal year or joint resolution making continuing appropriations 
through the end of that fiscal year. Those amounts shall be the sums of 
the Joint House-Senate Lock-box Balances for that fiscal year, as 
calculated under section 302(a)(6) of the Congressional Budget Act of 
1974. That bill or joint resolution shall contain the following 
statement of law: ``As required by section 636 of the Spending 
Accountability Lock-box Act of 1999, for fiscal year [insert 
appropriatefiscal year] and each outyear, the adjusted discretionary 
spending limit for new budget authority shall be reduced by $ [insert 
appropriate amount of reduction] and the adjusted discretionary limit 
for outlays shall be reduced by $ [insert appropriate amount of 
reduction] for the fiscal year and each outyear.''. Notwithstanding 
section 904(c) of the Congressional Budget Act of 1974, section 306 as 
it applies to this statement shall not apply. This adjustment shall be 
reflected in reports under sections 254(f) and 254(g) of the Balanced 
Budget and Emergency Deficit Control Act of 1985.

              Subtitle D--Automatic Continuing Resolution

SEC. 641. AUTOMATIC CONTINUING RESOLUTION.

  (a) Amendment to Title 31.--Chapter 13 of title 31, United States 
Code, is amended by inserting after section 1310 the following new 
section:

``Sec. 1311. Continuing appropriations

  ``(a)(1) If any regular appropriation bill for a fiscal year does not 
become law prior to the beginning of such fiscal year or a joint 
resolution making continuing appropriations is not in effect, there is 
appropriated, out of any moneys in the Treasury not otherwise 
appropriated, and out of applicable corporate or other revenues, 
receipts, and funds, such sums as may be necessary to continue any 
program, project, or activity for which funds were provided in the 
preceding fiscal year--
          ``(A) in the corresponding regular appropriation Act for such 
        preceding fiscal year; or
          ``(B) if the corresponding regular appropriation bill for 
        such preceding fiscal year did not become law, then in a joint 
        resolution making continuing appropriations for such preceding 
        fiscal year.
  ``(2)(A) Except as provided by subparagraph (B), appropriations and 
funds made available, and authority granted, for a program, project, or 
activity for any fiscal year pursuant to this section shall be at a 
rate of operations not in excess of the rate of operations provided for 
in the regular appropriation Act providing for such program, project, 
or activity for the preceding fiscal year, or in the absence of such an 
Act, the rate of operations provided for such program, project, or 
activity pursuant to a joint resolution making continuing 
appropriations for such preceding fiscal year (but not including 
amounts for such program, project, or activity designated as an 
emergency for that fiscal year before the date of enactment of this 
section).
  ``(B) The applicable rate of operations for a program, project, or 
activity pursuant to this section shall exclude amounts--
          ``(i) for which any adjustment was made under section 
        251(b)(2)(A) or section 252(e) of the Balanced Budget and 
        Emergency Deficit Control Act of 1985 before the date of 
        enactment of this section; or
          ``(ii) for which any adjustment is made under section 
        251(b)(2)(D) or (E) of such Act.
  ``(3) Appropriations and funds made available, and authority granted, 
for any fiscal year pursuant to this section for a program, project, or 
activity shall be available for the period beginning with the first day 
of a lapse in appropriations and ending with the earlier of--
          ``(A) the date on which the applicable regular appropriation 
        bill for such fiscal year becomes law (whether or not such law 
        provides for such program, project, or activity) or a 
        continuing resolution making appropriations becomes law, as the 
        case may be, or
          ``(B) the last day of such fiscal year.
  ``(b) An appropriation or funds made available, or authority granted, 
for a program, project, or activity for any fiscal year pursuant to 
this section shall be subject to the terms and conditions imposed with 
respect to the appropriation made or funds made available for the 
preceding fiscal year, or authority granted for such program, project, 
or activity under current law.
  ``(c) Appropriations and funds made available, and authority granted, 
for any program, project, or activity for any fiscal year pursuant to 
this section shall cover all obligations or expenditures incurred for 
such program, project, or activity during the portion of such fiscal 
year for which this section applies to such program, project, or 
activity.
  ``(d) Expenditures made for a program, project, or activity for any 
fiscal year pursuant to this section shall be charged to the applicable 
appropriation, fund, or authorization whenever a regular appropriation 
bill or a joint resolution making continuing appropriations until the 
end of a fiscal year providing for such program, project, or activity 
for such period becomes law.
  ``(e) This section shall not apply to a program, project, or activity 
during a fiscal year if any other provision of law (other than an 
authorization of appropriations)--
          ``(1) makes an appropriation, makes funds available, or 
        grants authority for such program, project, or activity to 
        continue for such period, or
          ``(2) specifically provides that no appropriation shall be 
        made, no funds shall be made available, or no authority shall 
        be granted for such program, project, or activity to continue 
        for such period; or
  ``(f) For purposes of this section, the term `regular appropriation 
bill' means any annual appropriation bill making appropriations, 
otherwise making funds available, or granting authority, for any of the 
following categories of programs, projects, and activities:
          ``(1) Agriculture, rural development, and related agencies 
        programs.
          ``(2) The Departments of Commerce, Justice, and State, the 
        judiciary, and related agencies.
          ``(3) The Department of Defense.
          ``(4) The government of the District of Columbia and other 
        activities chargeable in whole or in part against the revenues 
        of the District.
          ``(5) The Departments of Labor, Health and Human Services, 
        and Education, and related agencies.
          ``(6) The Department of Housing and Urban Development, and 
        sundry independent agencies, boards, commissions, corporations, 
        and offices.
          ``(7) Energy and water development.
          ``(8) Foreign assistance and related programs.
          ``(9) The Department of the Interior and related agencies.
          ``(10) Military construction.
          ``(11) The Department of Transportation and related agencies.
          ``(12) The Treasury Department, the U.S. Postal Service, the 
        Executive Office of the President, and certain independent 
        agencies.
          ``(13) The legislative branch.''.
  (b) Conforming Amendment.--Section 202(e)(3) of the Congressional 
Budget Act of 1974 is amended by inserting ``and on or before September 
30'' before ``of each year''.
  (c) Chapter Analysis.--The analysis of chapter 13 of title 31, United 
States Code, is amended by inserting after the item relating to section 
1310 the following new item:

``1311. Continuing appropriations.''.

  (d) Effect of Amendments.--Nothing in the amendments made by this 
section shall be construed to affect Government obligations mandated by 
other law, including obligations with respect to social security, 
medicare, and medicaid.

              TITLE VII--BUDGETING IN AN ERA OF SURPLUSES

SEC. 701. PAYGO REQUIREMENTS AND THE ON-BUDGET SURPLUS.

  (a) Section 252(a) of the Balanced Budget and Emergency Deficit 
Control Act of 1985 is amended to read as follows:
  ``(a) Purpose.--The purpose of this section is to trigger an 
offsetting sequestration in the amount by which any excess of decreases 
in receipts and increases in direct spending over increases in receipts 
and decreases in direct spending, caused by all direct spending and 
receipts legislation enacted prior to October 1, 2002, exceeds 
estimates of the on-budget surplus.''.
  (b) Timing and Calculation of Sequestration.--Section 252(b) of the 
Balanced Budget and Emergency Deficit Control Act of 1985 is amended to 
read as follows:
  ``(b) Sequestration.--
          ``(1) Timing.--Not later than 15 calendar days after the date 
        Congress adjourns to end a session and on the same day as a 
        sequestration (if any) under section 251, there shall be a 
        sequestration to offset an amount equal to--
                  ``(A) any excess of decreases in receipts and 
                increases in direct spending over increases in receipts 
                and decreases in direct spending for legislation 
                enacted prior to October 1, 2002; minus
                  ``(B) the estimated on-budget surplus,
        as calculated under paragraph (2).
          ``(2) Calculation of sequestration.--OMB shall calculate the 
        amount of the sequestration by adding--
                  ``(A) all OMB estimates for the budget year of direct 
                spending and receipts legislation transmitted under 
                subsection (d) for legislation enacted prior to October 
                1, 2002;
                  ``(B) the estimated amount of savings in direct 
                spending programs applicable to the budget year 
                resulting from the prior year's sequestration under 
                this section, if any, as published in OMB's final 
                sequestration report for that prior year; and
                  ``(C) all OMB estimates for the current year that 
                were not reflected in the final OMB sequestration 
                report for that year; and
        then by subtracting from such sum the OMB estimate for the 
        budget year of the on-budget surplus (if any) as set forth in 
        the OMB sequestration update report.''.
  (c) Preview Reports.--Section 254(c)(3) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 is amended by redesignating 
subparagraph (C) as subparagraph (D) and by adding after subparagraph 
(B) the following new subparagraph:
                  ``(C) The estimated on-budget surplus for the budget 
                year (if any) shall exclude all estimates of direct 
                spending and receipts legislation for such year enacted 
                after the date of enactment of this subparagraph (as 
                estimated by OMB when such legislation was originally 
                enacted). Except as provided by the preceding sentence, 
                the following assumptions shall apply to the 
                calculation of such estimated surplus: Budgetary 
                resources other than unobligated balances shall be at 
                the level provided for the budget year in a regular 
                appropriation Act or a joint resolution (other than 
                pursuant to section 1311 of title 31, United States 
                Code) continuing appropriations through the end of the 
                budget year, but if for any account a full-year 
                appropriation has not yet been enacted, budgetary 
                resources other than unobligated balances shall be at 
                the level available in the current year, adjusted using 
                the assumptions set forth in section 257(c).''.
  (d) Final Sequestration Report.--Section 254(f)(3) of the Balanced 
Budget and Emergency Deficit Control Act of 1985 is amended by adding 
at the end the following new sentence: ``In calculating the estimated 
on-budget surplus pursuant to section 252(b)(2), notwithstanding 
section 254(j), OMB shall use economic and technical assumptions that 
are up-to-date as of the date of issuance of the sequestration preview 
reports.''.
  (e) Definition of On-budget Surplus.--Section 250(c) of the Balanced 
Budget and Emergency Deficit Control Act of 1985 is amended by adding 
at the end the following new paragraph:
          ``(20) The term `on-budget surplus' means, with respect to a 
        fiscal year, the amount by which receipts exceed outlays for 
        all spending and receipt accounts of the United States 
        Government that are designated as on-budget. Such term does not 
        include outlays and receipts of the Federal Old-Age and 
        Survivors Insurance Trust Fund, the Federal Disability 
        Insurance Trust Fund, or any other off-budget entity.''.
  (f) Expedited Reconciliation Process.--Section 258C of the Balanced 
Budget and Emergency Deficit Control Act of 1985 is amended as follows:
          (1) The side heading of subsection (a) is amended by 
        inserting ``or in the House of Representatives'' after 
        ``Senate''.
          (2) In paragraphs (1), (2), (3), and (4) of subsection (a), 
        insert ``or House'' after ``Senate'' each place it appears.
          (3) In subsection (a)(7), strike ``For'' and insert ``In the 
        Senate, for''.
          (4) In subsection (b)(1), insert ``or House'' after 
        ``Senate''.
          (5) In the side heading of subsection (b)(4), insert 
        ``other'' after ``the''.
          (6) In subsection (b)(4), strike ``in the Senate from the 
        House'' and insert ``in the Senate or House of Representatives 
        from the other House'', strike ``Senate'' the second place it 
        appears and insert ``Senate or House of Representatives, as the 
        case may be,'', and strike ``Senate'' the third place it 
        appears and insert ``in the applicable House''.

                        Purposes of Legislation

    The purpose of H.R. 853 is to give the budget the force of 
law by providing for joint resolutions on the budget; to budget 
prospectively for emergencies by creating reserve funds for 
emergency spending; to strengthen enforcement of budgetary 
decisions by providing for more informed decision-making; to 
increase accountability for Federal spending by allowing for 
accrual budgeting for federal insurance programs; to increase 
accountability for entitlement spending by limiting indefinite 
spending authorizations; to mitigate the bias in the budget 
process toward higher spending by eliminating various 
procedural impediments to spending restraint; and to move the 
budget process into the 21st century by modifying PAYGO 
requirements when there is an on-budget surplus.

                Legislative History and Committee Action

    H.R. 853 was introduced by a bipartisan coalition of 
Members on February 25, 1999. Included among the bill's prime 
sponsors are Rules Committee Chairman David Dreier and 
Legislative and Budget Process Subcommittee Chairman Porter 
Goss. The legislation, which is nearly identical to a bill 
introduced at the end of the 105th Congress (H.R. 4837), is the 
product of approximately two years of cooperative work between 
the Rules Committee and the Budget Committee (the two House 
committees with primary jurisdiction over the Congressional 
budget process). H.R. 853 was referred to the Committee on 
Budget and Rules, and additionally to the Committee on 
Appropriations. The legislation currently carries 30 bipartisan 
cosponsors.
    On Thursday, June 17, the Budget Committee marked up the 
measure during a four-hour meeting in which it adopted an 
amendment in the nature of a substitute, offered by the bill's 
prime sponsor Mr. Nussle (R-IA). The amendment in the nature of 
a substitute was amended by one amendment to title II (relating 
to emergencies), offered, by Mr. Bentsen (D-TX). The amendment 
in nature of a substitute incorporated a series of technical 
and clarifying changes to the introduced text.
    On Wednesday, June 23, 1999, the Rules Committee exercised 
its original jurisdiction in marking up the procedural 
provisions of H.R. 853, which seeks to fundamentally reform the 
Congressional budget process through a series of changes to the 
Congressional Budget Act of 1974 and the rules of the House. 
H.R. 853, as amended, was favorably reported by a voice vote. 
On Tuesday, June 22, 1999, the Committee on Appropriations 
ordered H.R. 853 reported adversely with an amendment striking 
out section 641 relating to an automatic continuing 
appropriation.
    Starting in 1995, staff of the Rules Committee and the 
Budget Committee, by direction of their two chairmen, have met 
to review the existing process, assess proposals for change and 
devise a comprehensive reform package. During the 104th and 
105th Congress, the Rules Committee held three joint 
subcommittee hearings on budget process reform issues (July 13, 
July 19 and September 13, 1995), and conducted a Member 
briefing on the existing parameters of the process (September 
26, 1997). For a more detailed discussion of these reform 
hearings, see the following Rules Committee Prints: ``Joint 
hearings before the Subcommittee on Legislative and Budget 
Process and the Subcommittee on Rules and Organization of the 
House'' 104th Congress, First Session; ``The Congressional 
Budget Process: September 26, 1997 Briefing and Selected 
Printed Materials before the Subcommittee on Legislative and 
Budget Process'', 105th Congress, First Session.
    In 1997, the Budget Committee established a bipartisan 
Budget Process Task Force, whose chairman was Representative 
Jim Nussle (IA) and whose ranking member was Representative Ben 
Cardin (MD). The Task Force held a series of hearings 
throughout the 105th Congress on issues relating to the Budget 
process.
    The culmination of the bipartisan, two-committee effort was 
the introduction, in October 1998, of H.R. 4837. The 
legislative product, modified to reflect the recodification of 
House rules that occurred at the outset of the 106th Congress, 
is reflected in H.R. 853. This two-year bipartisan coalition 
could not have been successful without the commitment of 
Members of both the Budget and the Rules Committees to 
reforming the budget process. The Budget Committee and its Task 
Force in the 105th Congress contributed mightily to this effort 
and the resulting legislative product epitomized in H.R. 853.
    In the 106th Congress, the Rules Committee held two days of 
hearings on H.R. 853. On May 12, the Committee heard from the 
Director of the Congressional Budget Office, Dan Crippen; the 
Associate Director for Budget Issues at the General Accounting 
Office, Susan Irving; Ms. Martha Phillips of the Concord 
Coalition; Professor Tim Muris of the George Mason School of 
Law; Mr. Robert Greenstein of the Center for Budget and Policy 
Priorities; and Representatives Jim Nussle (R-IA), Ben Cardin 
(D-MD) and David Minge (D-MN), three of the primary sponsors of 
the legislation. On May 13, the Committee heard testimony from 
Representatives Joe Barton (R-TX), Nick Smith (R-MI), George 
Gekas (R-PA), Mike Castle (R-DE), Ralph Regula (R-OH) and John 
Spratt (D-SC).
    Many of the major provisions of H.R. 853 are based on the 
work of a variety of bipartisan Members who have developed 
innovative proposals for reform. H.R. 853 reflects the work of 
Representative Chris Cox (R-CA) and Representative Joe Barton 
(TX) on the fundamental question of the form of the budget 
resolution and was to increase accountability for federal 
spending. Likewise, the work of Representative Mike Castle (DE) 
on emergency spending, Representative Nick Smith (MI) on the 
debt limit and Representatives George Gekas (PA) and Dana 
Rohrabacher (R-CA) onautomatic continuing resolutions is 
reflected in H.R. 853 as well. The bill also includes provisions 
similar to legislation authored in the past by Representative Joe 
Moakley (D-MA) on the application of Budget Act points of order to 
unreported bills, by Representative Martin Sabo (D-MN) on the Senate's 
Byrd Rule, by Representative Charles Stenholm (D-TX) and former 
Representative Tim Penny (D-MN) on baselines, by Senator Bob Kerrey (D-
NE) and former Senator Alan Simpson (R-WY) on long-term budgetary 
trends, and by former Representatives (now Senators) Mike Crapo (R-ID) 
and Charles Schumer (D-NY) on the spending accountability lock-box.

                  Background and Need for Legislation

    The effort to reform the existing congressional budget 
process is certainly not new. Since the inception of the 
Congressional Budget Act of 1974 (formally the Congressional 
Budget and Impoundment Control Act of 1974 P.L. 93-344), 
proposals for modification of the procedures governing the 
consideration by Congress of the nation's spending and revenue 
plans have been plentiful.
    The Rules Committee, as part of its original jurisdiction 
is charged under clause 3(i) of House rule X to ``review and 
study on a continuing basis the congressional budget process, 
[to] report its findings and recommendations to the House from 
time to time.'' The development of H.R. 853 is a culmination of 
four years of work by the Rules Committee in reviewing the 
current process, assessing its strengths and weaknesses, 
studying proposals for reform and considering a comprehensive 
overhaul of the existing process.
    The Committee notes that the House has already responded to 
the need to bolster the protection given to Social Security 
within the budget process. Through the FY 2000 Congressional 
Budget Resolution (H. Con. Res. 68), and in the overwhelming, 
bipartisan House vote in favor of H.R. 1259, the Social 
Security and Medicare Safe Deposit Lock Box Act, Members have 
guaranteed their commitment to locking away the Social Security 
trust fund. It is the view of the Committee that, because of 
the unquestioned importance of protecting Social Security, it 
was necessary to address this issue as a separate legislative 
effort, rather than incorporating it as part of this budget 
process reform initiative.

           HISTORY OF THE PROCESS: 25 YEARS OF THE BUDGET ACT

    In the quarter century since the landmark Congressional 
Budget Act was enacted into law, much has changed in the 
environment in which Congress and the President must develop, 
implement and manage the nation's budget.
    According to the historical tables presented in the 
President's 2000 Budget Submission, in 1974 the nation's Gross 
Domestic Product (GDP) was more than $1.4 trillion and the 
nation carried a budget deficit of $6.1 billion, or .4 percent 
of GDP. For 1999 the President's Budget Submission estimates 
GDP to be more than $8.74 trillion with a surplus of nearly $80 
billion, or .9 percent of GDP. At its peak in the intervening 
years, the budget deficit logged in at $290 billion, or 4.7 
percent of GDP in 1992. As a percentage of GDP, the deficit was 
at its highest in 1983, at 6.1 percent of $3.4 trillion, or 
$207.8 billion.
    Looking back an additional 25 years to 1949, the pendulum 
moved in much less dramatic swings, with the budget moving from 
deficit to surplus and back again, reflecting much smaller 
percentages of GDP. After 1969, deficits began to rise 
markedly, and persistently through 1997.
    Development and enactment of the Congressional Budget Act 
in 1974 was fueled in large part by the conflict that existed 
at the time between the Congress and the Executive regarding 
the President's use of impoundment authority. The 93rd Congress 
responded in an effort to assert the prerogatives of the 
Legislative branch into the budget cycle in a more formal way 
than had occurred previously. ``The fact of the matter is that 
there is no congressional budget process, only an agglomeration 
of separate actions and decisions,'' (``Background Section,'' 
House Report No. 93-658 to accompany H.R. 7130, the Budget and 
Impoundment Control Act of 1973, November 20, 1973).
    Prior to 1974, for example, there was no formal process for 
a Congressional budget resolution. The development of a formal 
congressional budget process was a long evolutionary process 
since the beginning of the Republic. ``Budgeting in the 19th 
century was thus quite different from the way it is understood 
and practiced today; there was an annual statement of what the 
Federal Government had done with revenues in the previous year, 
including whether there was a surplus or deficit, but no 
unified, formal proposal for the coming year and little 
attention to spending as a whole.'' (``Policy Analysis and 
Historical Background,'' Final Report of the Joint Committee on 
the Organization of Congress, December 1993).
    The Congressional Budget Act sought to exert the role of 
the Legislative Branch more forcefully into the process of 
budgeting. ``Budget reform and impoundment control have a joint 
purpose: to restore responsibility for the spending policy of 
the United States to the legislative branch. One without the 
other would leave Congress in a weak and ineffective position * 
* * By joining budget and impoundment control in a complete 
overhaul of the budget process, H.R. 7130 seeks to ensure that 
thepower of appropriation assigned to Congress by the 
Constitution is responsibly and effectively exercised.'' (``Purpose and 
Brief Summary Section'', House Report No. 93-658 to accompany H.R. 
7130, the Budget and Impoundment Control Act of 1973, November 20, 
1973).
    In the legislative history of the Congressional Budget Act, 
Congress declared that ``it is essential to provide for the 
Congressional determination each year of the appropriate level 
of Federal revenues and expenditures.'' (Section 2(2), 
Declaration of Purposes). At that time, the Congress determined 
that the process should not be pre-disposed to any particular 
budgetary outcome, but rather should remain neutral on fiscal 
policy.
    However, in the years following 1974, as federal deficits 
began to mount and the nation began to conclude that stricter 
enforcement for fiscal discipline was necessary, Congress 
enacted several major reforms to its process. These reforms, 
unlike the original budget law, were geared toward a desired 
outcome of eventual elimination of the federal deficit. Among 
the most significant revisions of the budget process were the 
Balanced Budget and Emergency Deficit Control Act of 1985 (P.L. 
99-177), known as Gramm-Rudman-Hollings for its chief sponsors 
in the Senate, the Balanced Budget and Emergency Deficit 
Control Reaffirmation Act of 1987 (P.L. 100-119) and the Budget 
Enforcement Act of 1990 (Title XIII of the Omnibus Budget 
Reconciliation Act of 1990, P.L. 101-508). Additional changes 
were made after the budget summit in 1993, with the enactment 
of Title XIV of the Omnibus Budget Reconciliation Act of 1993. 
Most recently, with the enactment of the Budget Enforcement Act 
of 1997 (Title X of the Balanced Budget Act of 1997, P.L. 105-
33), Congress and the President extended through 2002 the 
fundamental enforcement mechanisms of the current process: the 
discretionary spending limits known as ``the caps'' and the 
pay-as-you-go requirement known as PAYGO.

The Balanced Budget and Emergency Deficit Control Act of 1985 (GRH)

    In an effort to gain control over mounting federal budget 
deficits, Congress developed a new framework for the budget 
process, one that was geared toward the desired outcome of a 
balanced budget. The Balanced Budget and Emergency Deficit 
Control Act (known as Gramm-Rudman-Hollings or GRH) established 
a series of declining annual deficit targets and implemented an 
across-the-board sequestration process of enforcement. 
Sequestration is carried out by Presidential order that 
permanently cancels budgetary resources to achieve the 
necessary amount of savings in all programs (except those 
specifically exempted) using an established formula. This 
formula stipulated that half of any savings needed must come 
from defense accounts and the other half from non-defense 
programs.

The Budget Enforcement Act of 1990 (BEA)

    After five years of experience with the requirements of the 
GRH deficit targets, the Congress recognized the difficulty in 
meeting such targets, especially given the many factors that 
were beyond the direct control of the legislative process. As a 
result, in 1990, the Congress and the President enacted the 
Budget Enforcement Act (BEA), which changed the focus of 
enforcement away from deficit targets and toward spending and 
revenue levels. The BEA established adjustable annual limits 
for discretionary spending, to be enforced by sequester, with 
separate limits for budget authority and outlays in three 
categories: defense; international and domestic spending. After 
1993 those categories were collapsed into one, and a separate 
but parallel process was set up for the Violent Crime Control 
Trust Fund. In 1997, the categories were once again broken out, 
this time to reflect defense and non-defense discretionary 
spending.
    The BEA also implemented the pay-as-you-go (PAYGO) process 
for mandatory spending revenues, creating a scorecard on which 
legislation affecting either would be reflected and, if a net 
increase in the deficit occurred, a sequester would be 
triggered. This process requires that legislation creating a 
net decrease in revenues or increase in mandatory spending must 
be offset either by an increase in revenues or a decrease in 
mandatory spending. Exempt from this requirement are increases 
in the cost of mandatory spending programs under existing law. 
The point of the law is to hold the Congress and the President 
accountable for the spending and revenue implications of 
changes in existing law, and to hold them harmless for changes 
that occur outside the legislative arena.
    The BEA of 1997 extended the discretionary spending limits 
and the PAYGO process until 2002 and made minor revisions to 
the Congressional Budget Act of 1974.

                     SUMMARY OF THE CURRENT PROCESS

    The Congressional budget process envisions a series of 
milestones involving action by one or both Houses of Congress. 
It begins and ends with the President, who must submit a budget 
at the start of the cycle and who, ultimately, must sign into 
law the legislation enacting the details of the budget plan.
    It is certainly true that the process has not, in recent 
years, adhered strictly to these basic milestones. For example 
in 1990, 1993 and 1997 the Congress and the White House engaged 
in so-called ``budget summits'' which involved efforts to bring 
the two branches of government to agreement on the outlines of 
an overall budget plan and the details necessary to implement 
it. In other years, the end of a fiscal year has seen occasions 
where all regular appropriations bill were not enacted in time, 
leading to the enactment of one or more continuing resolutions 
covering certain elements of thegovernment for a specific 
period of time. Recently, failure to conclude individual appropriations 
bills by the end of the fiscal year has led to the passage of omnibus 
spending bills, covering more than one of the regular spending bills. 
Finally, recent years have also seen a series of supplemental spending 
bills originated during the fiscal year to cover emergency matters that 
often end up carrying a variety of additional, less urgent spending 
elements. (See appendix A)
    Despite the aberrations from year to year, however, the 
underlying guideposts of the Congressional process remain 
constant. What follows is a basic summary of how the process is 
designed to work.
    Although the Constitution does not require the President to 
present an annual budget, in 1921 the Budget and Accounting Act 
became law and lay the foundation for the modern budget 
process, which includes the President's budget. The Budget Act 
established a timetable for the annual budget process, which is 
kicked off each year by the Presidential budget submission. The 
Budget Act specifies that the President's budget should be 
presented to the Congress on or before the first Monday in 
February.
    The President's budget is generally viewed as a detailed 
outline of the Administration's policy and funding priorities, 
as well as a presentation of the economic outlook for the 
coming fiscal year. The President's budget, which estimates 
spending, revenue and borrowing levels, is compiled from input 
by the various federal agencies, with funding broken down by 
budget function categories.
    The Congressional Budget Act specifies a series of 
provisions that must be included in the annual Congressional 
Budget Resolution, a concurrent resolution that must ultimately 
pass both the House and the Senate in identical form--but does 
not require signature by the President.
    The budget resolution provides the Congress with an 
opportunity to lay out its spending, revenue, borrowing and 
economic goals--as well as providing the vehicle for imposing 
internal budget discipline through established enforcement 
mechanisms.
    The budget resolution, which covers the upcoming fiscal 
year and at least five ensuing fiscal years, must contain 
spending allocations that serve as an internal control on 
spending through the appropriations and authorization process.
    The congressional budget resolution also classifies federal 
budgetary activities into functional and subfunctional 
categories that represent the major purposes of the federal 
government. Each budgetary activity of the federal government, 
including budget authority, outlays, tax expenditures, and 
credit authority, is classified into a subfunction based on the 
primary purpose it serves without regard to the agency or other 
unit responsible for it. The functional categories provide a 
broad statement of budget priorities and facilitate the 
analysis of trends in related programs regardless of the type 
of financial transaction or agency organization.
    While the use of functional classifications can be traced 
historically back to the first appropriation acts, the current 
federal budget uses 20 functional categories as well as 
subfunctions. General, the first 17 functional categories 
reflect major policy areas, while the remaining three represent 
non-programmatic elements of the budget that must be included 
to complete the presentation. Every budgetary account is 
assigned an identification code, and the last three digits of 
these codes designate the subfunction into which it is 
classified. This allows for a relatively organized budgeting 
structure.
    The current 20 budget functions include the following: 
National Defense, International Affairs, General Science, 
Space, and Technology, Energy, Natural Resources and 
Environment, Agriculture, Commerce and Housing Credit, 
Transportation, Community and Regional Development, Education, 
Training, Employment, and Social Services, Health, Medicare, 
Income Security, Social Security, Veterans Benefits and 
Services, Administration of Justice, General Government, Net 
Interest, Allowances, and Undistributed Offsetting Receipts.
    The budget resolution may contain reconciliation 
instructions for various committees of the House and Senate to 
make changes in the laws governing mandatory spending programs 
or changes in our nation's laws. In addition the budget 
resolution must include a projection of annual budget deficits 
or surplus, as well as a statement of the aggregate federal 
debt.
    The Budget Act timetable specifies that the Budget 
Committees of the House and Senate should receive the views on 
the President's Budget Submission from other committees by 
February 25 of each year. The Budget Act also specifies that 
the Senate Budget Committee should report its versions of the 
budget resolution by April 1 of each year. No specific 
reporting date is specified for the House although it is 
generally understood that House Budget Committee action will 
proceed concurrently with or prior to that in the Senate.
    Once the Budget Committees have marked-up and reported 
their budget resolutions, the full House and Senate take 
action. Section 305 of the Budget Act outlines the procedures 
for floor consideration of the budget resolution in both 
bodies. However, in the House the budget resolution 
traditionally is granted a special rule by the Rules Committee 
to dictate the terms of floor consideration.
    Both the House and the Senate must pass (by majority vote) 
the conference agreement version of the budget resolution. In 
the House, this conference agreement usually is considered 
first by the Rules Committee, which sets the terms of the floor 
debate. In the Senate, debate on the conference agreement is 
proscribed by the Budget Act or by unanimous consent agreements 
on the Senate floor. The Budget Act specifies that Congress 
should complete action on its budget resolution by April 15 of 
each year.
    The aggregate spending allocations required by section 
302(a) of the Budget Act and provided by the budget resolution 
for discretionary and direct spending (budget authority and 
outlays) serve as an internal control, enforceable through 
points of order and other procedural mechanisms. The committees 
in the House and the Senate may not exceed these aggregate 
totals in their work on the annual appropriations process or in 
authorizing direct spending.
    When the Appropriations Committees receive the totals from 
the budget resolution, they divide the aggregate allocations 
into suballocations (known as 302(b)'s after the operative 
section of the Budget Act) for each of their 13 Appropriations 
subcommittees. Once the subcommittees complete their work, the 
13 spending bills are considered, can be amended and ultimately 
must be approved by the full Appropriations Committee.
    The ideal model for this process is that all funding that 
is approved for spending programs through the appropriations 
cycle should have already been authorized (established in law) 
by the Congress. The authorizing committees cover all aspects 
of the federal government and frequently consider one or multi-
year authorization bills for the programs in their 
jurisdiction. Clause 2 of rule XXI prohibits appropriating 
funds for programs that have not been authorized.
    By tradition Appropriations bills originate in the House. 
The Budget Act specifies that the House may begin consideration 
of annual Appropriations bills by May 15 and the Appropriations 
Committee should be finished with its committee work on the 13 
bills by June 10. In the House, Appropriations bills have 
privileged status and may come straight from the Appropriations 
Committee to the floor, unless they violate any of the standing 
rules of the House.
    The Budget Act specifies that final House action on 
conference agreements for the 13 spending bills should occur by 
June 30. All 13 Appropriations bills must be completed before 
the start of the new fiscal year on October 1.
    Because discretionary spending accounts for only one-third 
of the total funding budget, in order to maintain control of 
the entire federal budget picture and enforce fiscal 
discipline, Congress must grapple with the spending that occurs 
through entitlement and other mandatory spending programs and 
make decisions about appropriate levels of federal revenues. 
Since there is no requirement that these spending and revenue 
policies be addressed on an annual basis--because they are 
provided for in permanent law--Congress has instituted a 
process known as reconciliation.
    If the Congress determines that it wishes to trigger the 
reconciliation process, the budget resolution that is adopted 
will contain reconciliation instructions. These provisions are 
instructions to the authorizing committees with jurisdiction 
over entitlement and tax policy. The instructions require those 
committees to make changes in those programs to effect a 
specified level of budgetary savings. When the Congress adopts 
an annual budget resolution that includes reconciliation 
instructions, it agrees to enforce those levels of savings, 
although the authorizing committees have some leeway in terms 
of how they wish to achieve them.
    The budget resolution normally includes a timetable by 
which the authorizing committees must report legislation that 
meets the savings specified in the reconciliation instructions. 
Once the relevant authorizing committees have reported their 
legislation to the Budget Committees, it is the Budget 
Committees' responsibility to combine those bills into a 
reconciliation package (or packages) as specified by the budget 
resolution.
    The Budget Committees' function is largely administrative 
at this point in the process, since the Budget Act provides 
that, if the savings targets are met, the Budget Committee may 
not make substantive changes in the legislation. However, if 
one or more authorizing committees do not report legislation 
meeting the savings targets specified in the reconciliation 
instructions, then the Budget Committees are authorized to 
develop legislation to find that savings. The Rules Committee 
serves as the ``facilitator'' for ensuring that these 
reconciliation targets are met and also claims an original 
jurisdictional referral for any matters contained within the 
budget resolution or a reconciliation bill that seek to amend 
House rules.
    The Budget Act specifies that Congressional action on 
reconciliation legislation should be complete by June 15. The 
Budget Act also provides specific procedures and restrictions 
for floor consideration of reconciliation measures, 
particularly in the Senate, to ensure timely completion. In the 
House, reconciliation legislation is brought from the Budget 
Committee to the Rules Committee, which grants special rules 
governing floor consideration of the measure.
    The House and Senate must each by majority vote pass the 
conference agreement on the reconciliation legislation. 
Although conference reports are privileged for floor 
consideration under the Rules of the House, generally a 
conference agreement on reconciliation goes first to the 
RulesCommittee for a special rule waiving points of order. In the 
Senate, the floor debate is governed by Senate rules and specific 
provisions of the Budget Act.

Enforcement

    Within the Congressional budget process there are a series 
of mechanisms in place to enforce the fiscal decisions made by 
the Congress. In general, the Budget Act relies on points of 
order to enforce its requirements of timing, deadlines and the 
allocations found in the budget resolution. These points of 
order are established in law and are in force through the 
rulemaking authority of the House and Senate. In the House, 
points of order can be waived by special rule granted from the 
Rules Committee or by unanimous consent, just as requirements 
of the rules of the House may be waived. In the Senate, waivers 
of certain points of order in the Budget Act require a 
supermajority 60-vote margin. Points of order are not self-
enforcing; they must be raised at the appropriate time during 
floor consideration.
    Among the most significant enforcement mechanisms related 
to the budget process is the prohibition on consideration of 
legislation that would cause total spending to exceed the level 
set in the budget resolution or total revenues to fall below 
the budgeted level (Section 311 of the Budget Act). 
Additionally, there is a prohibition on consideration of 
legislation that would exceed a particular committee's spending 
allocation, or in the case of the Appropriations Committee, the 
subcommittee's suballocation (Section 302 of the Budget Act).
    The Budget Act also relies on points of order to enforce 
the rigors of the budget process, including requirements 
relating to the order and timing of consideration of 
legislation. For example, no revenue, spending, entitlement or 
debt-limit measure may be considered prior to the adoption of 
the budget resolution (Section 303 of the Budget Act). This 
prohibition currently includes an exception, however allowing 
the House to begin work on its annual appropriations bills 
after May 15, even if a budget resolution is not in place.
    Enforcement of the Congressional budget process operates in 
concert with the statutory requirements, most significantly the 
discretionary spending limits and the pay-as-you-go (PAYGO) 
requirement for mandatory spending and revenues. The 
discretionary spending limits (often referred to as ``the 
caps'') were implemented in 1990 by the Budget enforcement Act 
(BEA) and have been extended twice. They remain in force until 
2002. PAYGO relies on a scorecard approach which takes into 
account all legislation that impacts upon mandatory spending 
and revenues. If there is a breach of either the discretionary 
limits or the PAYGO scorecard, a sequester is ordered by the 
Director of the Office of Management and Budget for relevant 
programs, subject to a series of exceptions that have been 
written into the law.

                        JUSTIFICATION FOR REFORM

    After 25 years of experience with the Budget Act, and 
despite several major modifications to the process, Members and 
the public still conclude that the process does not work. Layer 
upon layer of procedures have combined to make the process 
confusing, lacking in accountability, inefficient and 
vulnerable to break downs. The result has been a pervasive lack 
of public trust.
    The Committee recognizes that process alone cannot 
substitute for political will on the part of Members and the 
President. It is a basic tenet of our representative democracy 
that elected leaders must make tough decisions and balance 
competing priorities. However, it is equally clear that the 
process can provide obstacles to achieving those results. It 
can provide cover for avoidance of the tough decisions, while 
offering the temptation for scoring political points at the 
expense of responsibly accomplishing the nation's business.
    Sue Irving, Associate Director of Budget Issue at the 
General Accounting Office (GAO) put it this way in her 
testimony to the Committee: ``[E]veryone involved in the budget 
process shares some frustration with it. The public finds it 
confusing. Executive branch agencies say it is burdensome and 
time-consuming. Members of Congress say it seems too lengthy 
with too many votes on authorizations, budget resolutions, 
reconciliation, appropriations, emergency supplementals, and 
the debt limit.'' Professor Tim Muris, of the George Mason 
School of Law testified that ``[T]he budget process has lost 
its flexibility to respond quickly to unforeseen events, at 
least to unpleasant ones.'' In her prepared statement to the 
Committee, Martha Phillips, of the Concord coalition, said 
``[A]s with discipline in almost any situation, it's understood 
that limits are, on balance, good for us. But often we don't 
like them when they get in the way of what we want to do. So, 
the natural response is to test the limits in an attempt to get 
our way without getting caught. And, as loopholes are 
discovered and exploited, it becomes necessary to amend the 
budget process to close them.''
    The Committee shares the view of many who have testified on 
this subject that the current process, as it has evolved over 
25 years, is in need of fundamental reform.

                             AREAS OF FOCUS

Securing agreement

    Under the current process, there is little incentive for 
the Congress and the President to come to agreement on the big 
budget picture before working on the details of spending and 
revenue legislation. Rather, the process by which a President 
submits his budget--which oftens serves more as a political 
statement than a realistic outline of the possible outcome of 
the budget cycle--and then Congress develops its own blueprint, 
tends to encourage political rhetoric to supplant serious 
negotiating for most of the year. The process spawns posturing 
for protracted periods of time while lines are drawn in the 
sand.
    This often leaves the two branches far apart in their 
positions when the time comes to implement the spending bills 
necessary to fund the government. As a result, as has been the 
case too often in recent years, the fiscal year draws to a 
frantic and chaotic close. There is a flurry of legislative 
activity ending with enactment of large spending and revenue 
bills whose details are not known and generally not well 
understood by the Members asked to consider them.
    Martha Phillips of the Concord Coalition described the 
problem as follows: ``[l]ately, the closing days of the session 
have deteriorated into a very costly and unstatesmanlike cross 
between a food fight and a game of budgetary chicken in which 
the aim of each side seems to be to inflict maximum political 
embarrassment on the other while getting as much as possible 
for one's own spending or tax priorities.//
    Members and the public reacted with dismay to the most 
recent example of this spending spiral that occurred in the 
fall of 1998, when a massive spending bill, the Omnibus 
Appropriations Act for 1999, incorporated several regular 
appropriations bills and billions of dollars of emergency 
spending and far exceeded the fiscal controls that were in 
place.
    Additionally, the process suffers from the threat of a 
government shutdown in the event of failure to enact spending 
bills prior to the October 1 start of a new fiscal year. This 
threat and the actual partial shutdowns that have occurred have 
further erodes public trust in the ability of public officials 
to get this job done.
    The most recent of these situations occurred in the winter 
of 1995-1996, when the Congress and the President were unable 
to enact necessary appropriations bills and the stalement led 
to an extended shutdown of parts of the government. 
Historically, shutdowns have been narrow in their scope and 
their duration, often occurring over a weekend and thus viewed 
to have limited impact on the public. Based on that history, 
some have argued that the threat of shutdown is an important 
deterrent to inaction and stalemate.
    However, a growing census--based on experience at the 
federal and state level--has developed among members and the 
public that the process is not productive. Every state in the 
union has a requirement that both the legislature and the 
governor must approve the state budget (with most states 
requiring that this budget be in balance). (See appendix B)
    The Committee believes that the federal government could 
take a lesson from the states and make the effort to secure 
government between the Congress and the President regarding the 
``big picture'' on the budget early in the process.

Emergencies

    The Committee is also troubled by the process by which the 
Congress and the President respond to emergency situations. 
Most states have established contingency or reserve funds in 
the knowledge that while the specifies may not be knowable in 
advance, it can be predicted that some form of emergency 
situation will occur every year.
    The federal government, on the other hand, generally reacts 
to emergencies--natural disasters or national security crises--
by moving a supplemental spending bill for the current fiscal 
year, and using an ``emergency designation'' to circumvent 
existing budget controls.
    The only constraint on this process is that the President 
and the Congress must agree about what spending should be 
classified as ``emergency,'' a requirement that typically leads 
to more spending (including spending for programs that most 
Americans would not view as necessary to meet ``emergency'' 
needs) to take into account the priorities of both branches of 
government.
    As the stringent fiscal controls enacted in recent years in 
pursuant of a balanced budget have clamped down on spending 
through the normal annual appropriations process, the use of 
``emergency supplementals has become a popular release valve 
for pressure to spend more of the taxpayers' money without 
having to acknowledge that the fiscal controls in place are not 
being upheld. Data from the Congressional Budget Office (CBO) 
confirms that, for fiscal year 1999, emergency spendigng 
totaled more than $34 billion, which is more than three times 
the annual average of emergency appropriations, excluding the 
Desert Storm/Desert Shielf funding. (See appendix C).
    The Committee shares the view espoused by the Concord 
Coalition's Martha Phillips that``[E]mergency spending, 
particularly end of session appropriations, has become arguably the 
largest loophole in the Congressional budget process * * * in the last 
several months, all sense of restraint and proportion regarding the 
emergency designation has been lost.''
    The Committee sees this as another area where the states 
can teach the federal government a lesson in planning ahead and 
gaining more control over expenditures. The Committee concludes 
that the ``emergency designation'' process has not worked and 
needs fundamental revision.

Enforcement and accountability

    The enforcement mechanisms that govern the budget process 
are primarily implemented through the rules of the House and 
Senate. Points of order in the Budget Act, as well as the 
constraints imposed by the standing rules of the House, seek to 
require adherence to fiscal decisions that have been made. It 
is clear, however, that the Congress has had a mixed record in 
maintaining its commitment to fiscal discipline.
    The Committee notes certain loopholes in the process, 
specifically in the exemption from Budget Act points or order 
that exist for unreported legislation. In addition, the 
Committee sees a need to increase the understanding of the 
budget process among other committees of the House, and 
specifically to boost committees' accountability for living 
within budget constraints as legislation moves through the 
process.
    One area that is ripe for improvement is the way in which 
conference agreements are reached. Not only are House and 
Senate rules different in many ways, but the timing of the 
completion of conference agreements often makes it difficult to 
ensure that detailed information--particularly related to 
budget constraints--is available to Members and the public in a 
timely way. The Committee notes the inherent difficulty in this 
effort, but believes that there is opportunity to make 
meaningful change in this area.
    Over the years, attempts have been made to address a 
serious problem involving the failure of Congress and the 
President to periodically re-authorize spending programs. The 
process is built around the model that Congress should first 
authorize programs and then, subsequently, should appropriate 
the funds necessary to carry them out. However, as has been 
documented annually by the Congressional Budget Office (CBO), a 
multitude of ongoing federal programs do not receive regular 
reauthorization--or, in some cases, any renewal in 
authorization at all. (See appendix D) The result is the 
impression that, once created, a program will live on forever 
and may never receive the proper oversight review by the 
Congress to determine whether it has outlived its usefulness, 
or whether it is redundant or wasteful.
    The standing rules of the House already prohibit 
appropriations for unauthorized programs (clause 2 of rule 
XXI), but because so many programs have not been authorized, 
this prohibition is not always effective.

    Further, the Committee believes that periodic review should 
also apply to mandatory spending programs, which are often 
referred to as ``uncontrollables'' in the federal budget 
because they exist outside the annual appropriations process. 
The General Accounting Office (GAO) found that in 1996 there 
were 145 more mandatory programs then there had been a decade 
earlier. The Committee hopes to reverse this trend, making the 
House more accountable for its decision not to subject a 
program to annual appropriations and bringing about more 
frequent and regular review of all federal spending. It is the 
Committee's view that no program should be exempt from 
congressional oversight.

Bias toward higher spending

    The Congress has repeatedly grappled with the problem of 
year-to-year comparisons of spending levels for federal 
programs. Because of the complexity of the U.S. economy, as 
well as changes in the implementation of beneficiary-based 
programs that are not due to legislation initiatives, it has 
been difficult to ensure an accurate portrayal of the impact 
that new legislation will have on existing spending.
    As a result, there has been ongoing confusion about what 
constitutes a ``cut'' in spending. Some have argued that the 
comparisons from one year to the next should take into account 
economic and other factors in developing the ``baseline'' for 
provision of current services. However, this has led to a 
situation in which a legislative initiative that simply reduces 
the rate of projected growth of an existing program can be 
described as a ``cut.'' The resulting political dynamic has led 
to an insidious bias within the process toward higher and 
higher spending.
    Professor Muris stated his critique of the baseline in this 
way: ``Created to give policy makes a better handle on 
budgetary decisions, in practice the current policy baseline 
has given rise to a charade divorced from political realities. 
It should be scrapped.'' The Committee believes that more can 
and should be done to correct the higher spending bias in the 
baseline.
    With respect to the nation's debt, which continues to rise 
despite recent success in enhancing annual fiscal discipline, 
the Committee sees a need to revise House rules (rule XXIII), 
which provide the opportunity for Members to avoid 
accountability for increasing the nation's debt limit. Although 
recent years have seen a commitment by the House leadership to 
avoid the temptation to provide Members with a ``free pass'' on 
having to vote for an increase in the debt, the Committee 
believes that the temptation that now exists within the rules 
should be removed. As in most areas, greater accountability for 
Members and an enhanced transparency of the process should help 
to reverse the bias toward higher federal spending.
    An issue that has attracted bipartisan concern relates to 
the process by which, despite a vote ofthe House or Senate to 
cut funding for a program within an appropriations bill, that funding 
can be redesignated for that or any other program by the Appropriations 
Committee, thus negating any real savings to the taxpayer. The 
Committee sees a need to attempt once again to implement a savings 
lockbox for such circumstances, as yet another means to reduce the bias 
toward spending. The Committee notes that the full House has 
overwhelmingly approved the lockbox on four different occasions since 
1995.

Looming unfunded liabilities

    An issue that Members on both sides of the aisle have begun 
to grapple with is the long-term implications of our budgetary 
decision-making. Much credit should be given to the 1993-1994 
Bipartisan Commission on Entitlement and Tax Reform, chaired by 
Senator Bob Kerrey (D-NE), for focusing the attention of policy 
makers on the critical task at hand. The work of that 
commission clearly demonstrated that the present budgetary 
trends are not sustainable. As we enter an era of unprecedented 
changes in demographics, where the ratio of workers to retirees 
will shrink from 5:1 to 3:1 or even 2:1, we simply cannot 
afford to ignore the long-term budget picture. The first 
recommendation of the so-called ``Kerrey Commission'' was to 
begin long-term budgeting.
    Testimony from budget experts as well as Members on both 
sides of the aisle underscored this point. Sue Irving, 
Associate Director for Federal Budget Issues at the General 
Accounting Office, testified that the committee's long-term 
budgeting provision allows Members to look ahead and understand 
the implied commitments of our budget decisions in context and 
not merely in isolation. As the first Congressional support 
agency to utilize long-term forecasting, it was her experience 
that this type of provision could give Congress an important 
``sense of direction and order of magnitude.''
    The phase-in of accrual accounting for major federal 
insurance programs is a complementary provision to the long-
term forecasting model. Representative Jim Nussle (R-IA), 
Chairman of the Budget Process Reform Task Force of the Budget 
Committee in the 105th Congress and Representative Ben Cardin 
(D-MD), the Ranking Member on that task force, both strongly 
supported this provision in their testimony before the 
committee. In her testimony, Ms. Irving stressed that while it 
will be difficult to construct a good model, the approach the 
committee endorsed in this legislation ``has a lot to recommend 
it.''

Reflecting the era of surplus

    As the pendulum has swung from deficit to surplus, there 
have been calls from across the political spectrum for 
decisions about how the surplus should be used, once Social 
Security's trust fund has been locked away. Some have argued 
for more spending, which effectively translates into increasing 
the size and reach of the federal government. Others have 
argued that it is necessary now to provide a return to the 
taxpayers in the form of tax cuts. However, current budget 
rules, based upon years of soaring deficits, are out of date 
and ill-equipped to address the new circumstance of surplus. 
The Committee believes it is necessary to revise the current 
pay-as-you-go (PAYGO) process to allow for prudent use of the 
burgeoning surplus.

                         MEETING THE CHALLENGE

    Defenders of the status quo argue that the ``process has 
worked.'' In testimony before the Committee and in other 
venues, opponents of reform credited the current process with 
the remarkable transformation of our budget situation from one 
of serial deficits to one of substantial surplus today and far 
into the future.
    The Committee has reached the opposite conclusion: the 
current era of budget surplus has come about in spite of, not 
because of, our existing budget process. After years of 
exhortations on the part of those advocating fiscal discipline, 
the American people and the majority in Congress committed to 
the idea of achieving balance in the federal budget. The 
challenge now is to use this historic opportunity to bring 
about meaningful reform in the budget process to help maintain 
balance and continue the effort of making government more 
responsive to the people it serves and more efficient in its 
use of taxpayers' money. It is the Committee's view that H.R. 
853 meets that challenge.

                       Section-By-Section Summary


Sec. 1. Short title; table of contents

    The title of this bill is the ``Comprehensive Budget 
Process Reform Act of 1999.'' This section also outlines the 
table of contents of the seven titles of the bill.

Sec. 2. Purpose

    The purpose of this bill is to give the budget the force of 
law, to budget prospectively for emergencies, to strengthen 
enforcement of budgetary decisions, to increase accountability 
for Federal spending, to increase accountability for 
entitlement spending, to mitigate the bias in the budgetprocess 
toward higher spending, and to modify PAYGO requirements when there is 
an on-budget surplus.

Sec. 3. Effective date

    This Act and the amendments made by it become effective on 
the date of enactment and apply to fiscal years beginning after 
September 30, 1999, except as otherwise specifically provided 
for by this Act.

                   TITLE I--BUDGET WITH FORCE OF LAW

Sec. 101. Purposes

    The purposes of this title are to focus initial budgetary 
deliberations on the aggregate levels of Federal spending and 
taxation; to encourage cooperation between Congress and the 
President in developing overall budgetary priorities; and to 
reach budgetary decisions early in the legislative cycle.

Sec. 102. The timetable

    Section 102 amends section 300 of the Congressional Budget 
Act of 1974 to modify the timetable of the congressional budget 
process. The main effect of these modifications is to change 
the action to be completed from action on a concurrent 
resolution on the budget to action on a joint resolution on the 
budget. This section also removes the May 15 exception that 
allows the Committee on Appropriations of the House of 
Representatives to move appropriations bills in the absence of 
an agreement on a budget resolution.

Sec. 103. Annual joint resolutions on the budget

    Section 103(a)(1) amends section 301(a) of the 
Congressional Budget Act of 1974 to change the current 
concurrent resolution on the budget to the structure of a joint 
resolution on the budget. This amended section 301(a) sets 
forth both the required and optional contents of the joint 
resolution on the budget. Under section 301, as amended, the 
joint resolution shall set forth the appropriate levels for the 
fiscal year and for at least each of the 4 ensuing fiscal years 
for the following: (1) totals of new budget authority and 
outlays; (2) total Federal revenues and the amount, if any, by 
which the aggregate level of Federal revenues should be 
increased or decreased by bills and resolutions to be reported 
by the appropriate committees; (3) the surplus or deficit in 
the budget; (4) subtotals of new budget authority and outlays 
for non-defense discretionary spending, defense discretionary 
spending, and direct spending (excluding interest), and 
interest, and subtotals of new budget authority and outlays for 
emergencies. Section 103 (a) (2) makes conforming amendments to 
section 301 (a).
    Section 103 (b) (1) strikes subsections 301(b)(2), (4), 
(6), (8), and (9). These subsections detail some of the 
additional matters which may be included in the budget 
resolution, namely reconciliation directives to committees, any 
matters and procedures necessary to carry out the purposes of 
the Budget Act, a ``Display of Federal Retirement Trust Fund 
Balances,'' Senate procedures allowing for deficit neutral 
revisions in allocations, aggregates and other levels, House 
procedures to effectuate pay-as-you-go procedures, and direct 
loan obligation and primary loan guarantee commitment levels.
    Sections 103(b)(2) and (3) adds two new optional matters 
which may be included in the joint resolution. If submitted by 
the Committee on Ways and Means of the House of Representatives 
or the Committee on Finance of the Senate to the Committees on 
the Budget of the House and Senate, respectively, a change in 
the statutory limit on the public debt may be included in the 
budget resolution. The budget resolution may also include other 
congressional procedures, relating to the budget, as may be 
appropriate to carry out the purposes of the Budget Act.
    Section 103(c)(1) makes conforming changes and 
redesignations to section 301(e)(2) of the Congressional Budget 
Act of 1974. Section 103(c)(2) amends section 301(e)(2) to 
require that the report accompanying the joint resolution 
include the new budget authority and outlays for each major 
functional category, based on the allocations of the total 
levels set forth pursuant to subsection 301(a)(1).
    Section 103(c)(3) amends section 301(e)(2)(C), as 
redesignated, of the Congressional Budget Act of 1974 to strike 
the term mandatory spending and replace it with the term direct 
spending.
    Section 103(c)(4) amends section 301(e)(2) of the 
Congressional Budget Act of 1974 to require that the report 
accompanying the joint resolution include a measure, as a 
percentage of the gross domestic product, of total outlays, 
total Federal revenues, the surplus or deficit, and new outlays 
for nondefense discretionary spending, defense spending, and 
direct spending as called for in the budget resolution.
    Section 103(c)(5) amends section 301(e)(2) of the 
Congressional Budget Act of 1974 to require that the report 
accompanying the joint resolution include a justification for 
not subjecting any program, project or activity (for which an 
allocation to a committee is made) to annual discretionary 
appropriations. This applies only if the joint resolution on 
the budget includes any allocation to a committee other than 
the Committee on Appropiations of levels in excess of current 
law levels.Section 103(d)(1) makes conforming changes and 
redesignations to section 301(e)(3) of the Congressional Budget Act of 
1974. Section 103(d)(2) amends section 301(e)(3) of the Congressional 
Budget Act of 1974 to provide that the report accompanying the joint 
resolution on the budget may contain reconciliation directives to 
committees pursuant to section 310 of the Congressional Budget Act of 
1974.
    Section 103(e)(1) amends section 1105(a) of title 31 of the 
United States Code to modify the required elements of the 
President's annual budget submission. The President is required 
to submit on or after the first Monday in January but not later 
than the first Monday in February of each year a budget for the 
United States government that sets forth the following levels: 
totals of new budget authority and outlays; total Federal 
revenues and the amount, if any by which the aggregate level of 
Federal revenues should be increased or decreased by bills and 
resolutions reported by the appropriate committees; the surplus 
or deficit in the budget; subtotals of new budget authority and 
outlays for nondefense discretionary spending, and direct 
spending, and interest and subtotals of new budget authority 
and outlays for emergencies; and the public debt. This section 
further provides that each budget submission shall include a 
budget message and summary and supporting information, and as a 
separately delineated statement, the levels required by this 
section for at least each of the nine ensuing fiscal years. 
Section 103(e)(2) contains a conforming amendment.
    Section 103(f) amends section 305 of the Congressional 
Budget Act of 1974 to place a limit on the contents of the 
budget resolution. The new section 305(e)(1) provides that it 
shall not be in order in the House or the Senate to consider 
any joint resolution on the budget or any amendment thereto or 
conference report thereon that contains matters not referred to 
in section 301(a) or (b) of the Congressional Budget Act of 
1974, as amended. Section 305(e)(2) provides that any joint 
resolution on the budget or any amendment thereto or conference 
report thereon that contains any matter not referred to in 
section 301(a) or (b) shall not be treated in the House or the 
Senate as a budget resolution or a conference report thereon 
under section 305(a), (b), or (c).

Sec. 104. Budget required before spending bills may be considered; 
        fall-back procedures if President vetoes joint budget 
        resolution

    Section 104(a) amends section 302(a) of the Congressional 
Budget Act of 1974 by striking paragraph (5) relating to the 
adjustment of the allocation for discretionary spending of the 
Committee on Appropriations in the House of Representatives 
when the budget resolution has not been adopted by April 15.
    Section 104(b)(1) amends section 303 of the Congressional 
Budget Act of 1974 to strike paragraph (b)(2), relating to the 
May 15th exception to the prohibition on considering budget-
related legislation prior to the completion of the budget 
resolution for House consideration of appropriation bills. This 
section makes further conforming amendments.
    Section 104(b)(2) amends section 302(g)(1) of the 
Congressional Budget Act of 1974 to strike the exception from 
section 303(a) of the Congressional Budget Act and PAYGO 
granted to the House consideration of budget-related 
legislation after April 15th of a fiscal year.
    Section 104(b)(3)(A) amends section 904(c)(1) of the 
Congressional Budget Act of 1974 to add section 303(a) of the 
Budget Act as another point of order that requires the 
affirmative vote of three-fifths of the Senate to be waived or 
suspended.
    Section 104(b)(3)(B) amends section 904(d)(2) of the 
Congressional Budget Act of 1974 to add section 303(a) of the 
Budget Act as another point of order that requires the 
affirmative vote of three-fifths of the Senate to sustain an 
appeal of the ruling of the Chair on any point of order raised 
under section 303(a).
    Section 104(c)(1) amends title III of the Congressional 
Budget Act of 1974 to add a new section 316 of the Budget Act 
which establishes expedited procedures for consideration of a 
concurrent resolution on the budget if the joint resolution on 
the budget has been vetoed. This new section 316(a) of the 
Budget Act provides that if the President vetoes a joint 
resolution on the budget for a fiscal year, the chairman of the 
Committee on Budget of the House of Representatives or Senate 
may introduce a concurrent resolution on the budget or joint 
resolution on the budget for such fiscal year. If the Committee 
on the Budget of either House fails to report such concurrent 
or joint resolution referred to it within five legislative days 
after the date of such referral, the committee shall be 
automatically discharged from further consideration of such 
resolution and such resolution shall be placed on the 
appropriate calendar. Section 316(b)(1) provides that, except 
as provided in paragraph (2), the provisions of section 305 of 
the Congressional Budget Act of 1974 providing for the 
consideration in the House and the Senate of joint resolutions 
on the budget and conference reports thereon shall also apply 
to the consideration of concurrent resolutions on the budget 
introduced under subsection (a) and conference reports thereon.
    Section 316(b)(1) provides that debate in the Senate on any 
concurrent resolution on the budget or joint resolution on the 
budget introduced under subsection (a), and all amendments 
thereto and debatable motions and appeals in connection 
therewith, shall be limited to not more than 10 hours and in 
the House such debate shall be limited to not more than 3 
hours.Section 316(c) provides that the contents of any 
concurrent resolution on the budget introduced under subsection (a) 
must be in compliance with sections 301 and 305 of the Congressional 
Budget Act of 1974 which specify the required contents of any joint 
resolution on the budget.
    Section 316(d) provides that notwithstanding any other 
provision of this title, whenever a concurrent resolution on 
the budget described in subsection (a) is agreed to, then the 
aggregates, allocations, and reconciliation directives (if any) 
contained in the accompanying report to such a concurrent 
resolution shall be considered to be the aggregates, 
allocations, and reconciliation directives for all purposes of 
sections 301, 303 and 311 of the Congressional Budget Act of 
1974 for the applicable fiscal years. It further provides that 
such concurrent resolution shall be deemed to be a joint 
resolution for all purposes of this title and the Rules of the 
House of Representatives and any reference to the date of 
enactment of a joint resolution on the budget shall be deemed 
to be a reference to the date agreed to when applied to such a 
concurrent resolution on the budget.
    Section 104(b) makes conforming amendments to the table of 
contents of the Budget Act.
Sec. 105. Conforming amendments to effective joint resolutions on the 
        budget
    Section 105(a)(1)(A) makes conforming amendments to 
sections 301, 302, 303, 305, 308, 310, 311, 312, 314, 405, and 
904 of the Congressional Budget Act of 1974 to replace the 
terms ``concurrent resolution on the budget'' with the terms 
``joint resolution on the budget.''
    Section 105(a)(1)(B)(i) makes conforming amendments to 
sections 302(d), 302(g), 308(a)(1)(A), and 310(d)(1) of the 
Congressional Budget Act of 1974 to replace the terms ``most 
recently agreed to concurrent resolution on the budget'' with 
the terms ``most recently enacted joint resolution on the 
budget or agreed to concurrent resolution on the budget (as 
applicable).''
    Section 105(a)(1)(B)(ii) makes conforming amendments to 
section 301 of the Congressional Budget Act of 1974 by striking 
the terms ``adoption of concurrent resolution'' and inserting 
the terms ``joint resolutions.''
    Section 105(a)(1)(B)(iii) amends section 304 of the 
Congressional Budget Act of 1974 regarding permissible 
revisions of budget resolutions. This new section 304 provides 
that at any time after the joint resolution on the budget for a 
fiscal year has been enacted pursuant to section 301 of the 
Budget Act, and before the end of such fiscal year, the two 
Houses and the President may enact a joint resolution on the 
budget which revises or reaffirms the joint resolution on the 
budget for such fiscal year most recently enacted. If a 
concurrent resolution on the budget has been agreed to pursuant 
to section 316 of the Budget Act, then before the end of such 
fiscal year, the two Houses may adopt a concurrent resolution 
on the budget which revises or reaffirms the concurrent 
resolution most recently agreed to.
    Section 105(a)(1)(C) amends sections 302, 303, 310, and 311 
of the Congressional Budget Act of 1974 to strike the terms 
``agreed to'' and insert in its place the term ``enacted.''
    Section 105(a)(2)(A) amends paragraph 4 of section 3 of the 
Congressional Budget Act of 1974 to strike the term 
``concurrent'' each place it appears and replace it with the 
term ``joint.''
    Section 105(a)(2)(B) amends the table of contents set forth 
in section 1(b) of the Congressional Budget Act of 1974 to 
account for the conversion of the concurrent resolution on the 
budget into a joint resolution on the budget.
    Section 105(b)(1) makes conforming amendments to clauses 
1(e)(1), 4(a)(4), 4(b)(2), 4(f)(1)(A) and 4(f)(2) of rule X and 
clause 10 of rule XVIII and clause 10 of rule XX of the Rules 
of the House of Representatives to replace the term 
``concurrent'' with the term ``joint.'' Sections (b)(2)(A) and 
(B) make conforming amendments to clause 10 of House rule XVIII 
relating to the consideration of budget resolutions in the 
Committee of the Whole House on the state of the Union.
    Section 105(c) makes conforming amendments to section 
258C(b)(1) of the Balanced Budget and Emergency Deficit Control 
Act of 1985 to strike the term ``concurrent'' and replace it 
with the term ``joint.''
    Sections 105(d)(1), (d)(2), (d)(3), (d)(4), and (d)(5) make 
conforming amendments to section 310 of the Congressional 
Budget Act of 1974, regarding reconciliation directives, to 
account for the role of the joint explanatory statement 
accompanying a conference report on a joint resolution on the 
budget.
    Section 105(e) amends section 3 of the Congressional Budget 
Act of 1974 to provide that the term ``direct spending'' shall 
have the meaning given to such term in section 250(c)(8) of the 
Balanced Budget and Emergency Deficit Control Act of 1985.
    Section 105(f) makes several technical amendments to 
section 314(d) of the Congressional Budget Act of 1974 
regarding revised suballocations.

                 TITLE II--RESERVE FUND FOR EMERGENCIES

Sec. 201. Purpose

    The purposes of this title are to develop budgetary and 
fiscal procedures for emergencies; subject spending for 
emergencies to budgetary procedures and controls; and establish 
criteria for determining compliance with emergency 
requirements.

Sec. 202. Repeal of adjustments for emergencies

    Section 202(a) repeals section 251(b)(2)(A) of the Balanced 
Budget and Emergency Deficit Control Act of 1985 relating to 
adjustments in the discretionary spending limits pursuant to an 
emergency designation and makes conforming amendments to the 
section.
    Section 202(b) repeals section 252(e) of the Balanced 
Budget and Emergency Deficit Control Act of 1985 relating to 
the designation of direct spending or receipts legislation as 
an emergency and makes conforming amendments to the section.
    Section 202(c) repeals clause 2(e) of rule XXI of the Rules 
of the House of Representatives relating to the inclusion of 
non-emergency provisions in any appropriation bill or joint 
resolution containing an emergency designation pursuant to 
section 251(b)(2)(D) or section 252(e) of the Balanced Budget 
and Emergency Deficit Control Act, or the offering of any 
amendment thereto not designated as an emergency.

Sec. 203. OMB emergency criteria

    Section 203 amends section 3 of the Congressional Budget 
Act of 1974 to define the terms ``emergency'' and 
``unanticipated'' using as a basis the definition laid out in 
the OMB A-11 Circular. The term ``emergency'' is defined as a 
situation that requires new budget authority and outlays for 
the prevention or mitigation of, or response to, loss of life 
or property, or a threat to national security and a situation 
that is unanticipated. The term ``unanticipated'' means that 
the underlying situation is ``sudden,'' which means quickly 
coming into being or not building up over time; ``urgent,'' 
which means a pressing and compelling need requiring immediate 
action; ``unforeseen,'' which means not predictable or 
anticipated as an emerging need; and, ``temporary,'' which 
means not of a permanent duration.

Sec. 204. Development of guidelines for application of emergency 
        definition

    Section 204 of the bill provides that not later than five 
months after the date of enactment of this Act, the chairmen of 
the Committees on the Budget (in consultation with the 
President) shall, after consulting with the chairmen of the 
Committees on Appropriations and applicable authorizing 
committees of their respective Houses and the Directors of the 
Congressional Budget Office and the Office of Management and 
Budget, jointly publish in the Congressional Record guidelines 
for the application of the definition of emergency set forth in 
section 3(13) of the Congressional Budget Act of 1974.

Sec. 205. Reserve funds for emergencies in President's budget

    Section 205 of the bill amends section 1105(f) of title 31 
of the United States Code to conform the President's budget 
submission to the requirements of section 317 of the 
Congressional Budget Act of 1974 with respect to the allocation 
of budget authority and outlays (based on the preceding five 
year rolling average of enacted levels of such spending) into 
reserve funds for emergencies and to require the President, 
when requesting budget authority for an emergency, to include a 
detailed justification of why such emergency is an emergency 
within the meaning of section 3(12) of the Congressional Budget 
Act of 1974.

Sec. 206. Adjustments and reserve funds for emergencies in joint budget 
        resolutions

    Section 206(a) further amends title III of the 
Congressional Budget Act of 1974 by adding at the end a new 
section 317 on Emergencies. This new section provides that the 
Committee on the Budget shall determine or certify whether 
amounts specified as an emergency in any bill, joint resolution 
or conference report meet the criteria, pursuant to the 
guidelines published pursuant to section 204 of this Act.
    Section 206(a) further provides that, if such a 
determination of certification is made, the Committee on the 
Budget shall adjust the allocations of new budget authority or 
outlays made pursuant to the appropriate joint resolution on 
the budget in an amount not to exceed the amount reserved for 
emergencies.
    Section 206(b) requires a separate reserve fund for 
emergency spending and stipulates that the reserve fund must 
equal the historical average for the five preceding years. For 
calculation of such average when one or more of the five 
preceding years is any of the fiscal years 1994 through 1998, 
the amount used shall be the enacted levels of budget authority 
and the amount of new outlays flowing therefrom for 
emergencies, but only in the first fiscal year for which such 
budget authority first becomes available for obligation for 
each of those five fiscal years. This amount shall be 
determined by the Budget Committees of the House and Senate 
after receipt of a report from the Congressional Budget Office 
due six months after the enactment of this section, and every 
February thereafter.
    Section 206(c) provides that whenever any committee of the 
House or Senate (including a committee of conference) reports 
any bill or joint resolution that provides budget authority for 
any emergency, the report accompanying that bill or joint 
resolution (or the joint explanatory statement of managers in 
the case of a conference report on any such bill or joint 
resolution) shall identify all provisions that providebudget 
authority and the outlays flowing therefrom for such emergency and 
shall include a statement of the reasons why such budget authority 
meets the definition of an emergency pursuant to the guidelines 
referred to in section 204 of this Act.

Sec. 207. Up-to-date tabulations

    Section 207 amends section 308(b)(2) of the Congressional 
Budget Act of 1974 to require that the Congressional Budget 
Office include an up-to-date tabulation of amounts remaining in 
the reverse funds for emergencies in its reports on reported 
legislation providing new budget authority or changes in 
revenues or tax expenditures.

Sec. 208. Prohibition on amendments to emergency reserve funds

    Section 208 amends section 305 of the Congressional Budget 
Act of 1974 by adding at the end a new point of order 
prohibiting consideration in the House or the Senate of an 
amendment to a joint resolution on the budget which changes the 
amount of budget authority and outlays set forth in section 
301(a)(4) for emergency reserve funds.
    Section 208(b) provides that this point of order, and the 
limitation specified in section 305(e) relating to the contents 
of the budget resolution, may only be waived by a three-fifths 
vote in the Senate as provided in section 904 of the 
Congressional Budget Act of 1974.

Sec. 209. Effective date

    Section 209 provides that the amendments made by this title 
shall apply to fiscal year 2001 and subsequent fiscal years, 
but shall only take effect after the enactment of legislation 
changing or extending for any fiscal year the budgetary 
procedures in sections 251 and 252 of the Balanced Budget and 
Emergency Deficit Control Act of 1985.

             TITLE III--ENFORCEMENT OF BUDGETARY DECISIONS

Sec. 301. Purposes

    The purposes of this title are to close loopholes in the 
enforcement of budget resolutions, require committees of the 
House of Representatives to include budget compliance 
statements in reports accompanying all legislation, require 
committees of the House of Representatives to justify the need 
for waivers of the Congressional Budget Act of 1974, and 
provide cost estimates of conference reports.

  Subtitle A--Application of Points of Order to Unreported Legislation


Sec. 311. Application of Budget Act points of order to unreported 
        legislation

    Section 311(a) amends section 315 of the Congressional 
Budget Act of 1974 to apply it to all bills or joint 
resolutions. Therefore, the special effect of the adoption of 
any special order of business in the House of Representatives 
that corrects a Budget Act violation under titles 3 or 4 
provided by section 315 would now apply to all bills or joint 
resolutions. This has the effect of closing an existing 
loophole that exempts unreported legislation from Budget Act 
points of order.
    Section 311(b) further amends section 303(b) of the 
Congressional Budget Act of 1974 to make those points of order 
arising under section 303, prohibiting the consideration of new 
budget authority, changes in revenues or changes in the public 
debt for a fiscal year until the budget resolution for that 
year has been agreed to, applicable to all bills or joint 
resolutions.

             Subtitle B--Compliance with Budget Resolution


Sec. 321. Budget compliance statements

    Section 321 amends clause 3(d) of rule XIII of the House of 
Representatives to add a new required item to the contents of 
reports accompanying each bill or joint resolution of a public 
character reported by a committee. This new clause 3(d) will 
require committees to include a budget compliance statement 
prepared by the Chairman of the Committee on the Budget, if 
timely submitted prior to the filing of the report, in any 
report filed on any bill or joint resolution. This report shall 
include an assessment by the Chairman of the Budget Committee 
as to whether the bill or joint resolution complies with 
sections 302, 303, 306, 311 and 401 of the Congressional Budget 
Act of 1974 and may include the budgetary implications of that 
bill or joint resolution under sections 251 or 252 of the 
Balanced Budget and Emergency Deficit Control Act of 1984, as 
applicable.

            Subtitle C--Justification for Budget Act Waivers


Sec. 331. Justification for Budget Act waivers in the House of 
        Representatives

    Section 331 amends clause 6 of rule XI of the House of 
Representatives to prohibit consideration of resolutions from 
the Committee on Rules unless the reports accompanying such 
resolutions contain certain information. Any special rule that 
waives sections 302, 303, 311 or 401 of the Congressional 
Budget Act of 1974 must include in its report a description of 
the waiver, the object of the waiver, any justification for the 
waiver submitted to the Committee on Rules by the committee of 
jurisdiction, and anestimated cost of the provisions to which 
the waiver applies.

             Subtitle D--CBO Scoring of Conference Reports


Sec. 341. Scoring of conference reports

    Section 341 amends section 402 of the Congressional Budget 
Act of 1974 to require the Congressional Budget Office (CBO) to 
score conference reports. Such cost estimates would be included 
in the joint explanatory statement of managers accompanying the 
conference report. Section 341 would also require CBO to 
determine whether or not a bill, resolution or conference 
report provides direct spending.

             TITLE IV--ACCOUNTABILITY FOR FEDERAL SPENDING

Sec. 401. Purposes

    The purposes of this title are to require committees to 
develop a schedule for reauthorizing all programs within their 
jurisdiction, to facilitate amendments to subject new 
entitlement programs to annual discretionary appropriations, to 
require the Committee on the Budget to justify any allocation 
to an authorizing committee for legislation that would not be 
subject to annual discretionary appropriations, to provide 
estimates of the long-term impact of spending and tax 
legislation, to provide a point of order for legislation 
creating a new entitlement program that does not expire within 
10 years, and to require a vote in the House of Representatives 
on any measure that increases the statutory limit on the public 
debt.

               Subtitle A--Limitations on Direct Spending


Sec. 411. Fixed-year authorizations required for new program

    Section 411(a) amends section 401 of the Congressional 
Budget Act of 1974 by striking the existing subsections (a) and 
(b) and inserting a new (a). This new section 401(a) limits the 
consideration in the House of Representatives or in the Senate 
of any bill, joint resolution, amendment, motion or conference 
report that provides direct spending for a new program unless 
such spending is limited to a period of 10 or fewer fiscal 
years. Section 411(a) contains further conforming amendments to 
section 401.
    Section 411(b) of the bill contains a conforming amendment 
to the table of contents of the Congressional Budget Act of 
1974 reflecting the addition of the new section 401 ``Fixed-
year Authorizations Required for Direct Spending.''
    Section 411(c) amends rule XXI of the House of 
Representatives by adding a new clause 6. This new clause would 
prohibit the consideration of any bill, joint resolution, 
amendment, or conference report that authorizes new budget 
authority, as defined in section 3(2)(C) of the Congressional 
Budget Act of 1974, unless such authorization is specifically 
provided for a period of 10 or fewer fiscal years.

Sec. 412. Amendments to subject new entitlements to annual 
        appropriations

    Section 412(a) amends clause 5 of rule XVII of the Rules of 
the House of Representatives to allow for amendments in the 
Committee of the Whole to subject a new program providing 
direct spending, contained in the measure under consideration, 
to discretionary appropriations. This privileged amendment may 
be offered by the chairman of the Committee on the Budget (or 
his designee) or the chairman of the Committee on 
Appropriations (or his designee). It is not in order for such 
an amendment to be precluded from consideration unless done so 
by the specific terms of a special order of the House. Any such 
amendment, if offered, shall be debatable for twenty minutes 
equally divided and controlled by the proponent of the 
amendment and a Member opposed and shall not be subject to 
amendment. The section further provides that the term direct 
spending shall have the meaning given such term in section 
3(12) of the Congressional Budget and Impoundment Control Act 
of 1974.
    Section 412(b) provides for the adjustment of the 
discretionary spending limits for any discretionary 
appropriations offset by direct spending savings. Section 
412(b)(1) provides that the purpose of the amendments made by 
this subsection is to hold the discretionary spending limits 
and the allocations made to the Committee on Appropriations 
under section 302(a) of the Congressional Budget Act of 1974 
harmless for legislation that offsets a new discretionary 
spending program with a designated reduction in direct 
spending.
    Section 412(b)(2) amends section 252 of the Balanced Budget 
and Emergency Deficit Control Act of 1985, as amended, to 
address the designation of direct spending savings in 
authorization legislation for new discretionary spending 
programs. If a provision of direct spending legislation is 
enacted that (1) decreases direct spending for any fiscal year; 
and, (2) is designated as an offset pursuant to section 252 and 
such designation specifically identifies an authorization of 
discretionary appropriations (contained in such legislation) 
for the new program, then the reductions in new budget 
authority and outlays in all fiscal years resulting from that 
provision shall be designated as an offset in the reports 
required by the Office of Management and Budget and the 
Congressional Budget Office under section 252(d). Section 
421(b)(3) amends section 252(d)(4) of the Balanced Budget and 
Emergency Deficit Control Act of 1985, as amended, to exempt 
such designated direct spending savings from the PAYGO 
scorecard.Section 412(b)(4) amends section 251(b)(2) of the 
Balanced Budget and Emergency Deficit Control Act of 1985, as amended, 
to adjust the discretionary spending limits. If an Act other than an 
appropriation Act includes any provision reducing direct spending and 
specifically identifies any such provision as an offset pursuant to 
section 252(e) of the Balanced Budget and Emergency Deficit Control Act 
of 1985, the adjustments shall be an increase in the budget authority 
and outlay caps in each fiscal year equal to the amount of the budget 
authority and outlay reductions, respectively, achieved by the 
specified offset in that fiscal year, except that the adjustments for 
the budget year in which the offsetting provision takes effect shall 
not exceed the amount of discretionary new budget authority enacted for 
the new program (authorized in that Act) in an Act making discretionary 
appropriations, and the outlays flowing therefrom.
    Section 412(b)(5) amends section 314(b) of the 
Congressional Budget Act of 1974, as amended, to provide for an 
adjustment in the respective Appropriation Committee's 
allocation. The amount of such an adjustment shall be the 
amount provided in the Act making discretionary appropriations 
for the program for which an offset was designated pursuant to 
section 252(e) of the Balanced Budget and Emergency Deficit 
Control Act of 1985 and any outlays flowing therefrom. However, 
this amount cannot exceed the amount of the designated decrease 
in direct spending for that year for that program in a prior 
law.
    Section 412(b)(6) amends section 314 of the Congressional 
Budget Act of 1974 to provide for an adjustment in the 
respective authorizing committee's allocation by the amount of 
the direct spending offset. After the reporting of a bill or 
joint resolution (by a committee other than the Committee on 
Appropriations), or the offering of an amendment thereto, or 
the submission of a conference report thereon, that contains a 
provision that decreases direct spending for any fiscal year 
and that is designated as an offset pursuant to section 252(e) 
of the Balanced Budget and Emergency Deficit Control Act of 
1985, the chairman of the Committee on the Budget shall reduce 
the allocations of new budget authority and outlays made to 
such committee under section 302(a)(1) of the Budget Act by the 
amount so designated.

     Subtitle B--Enhanced Congressional Oversight Responsibilities


Sec. 421. Ten-year congressional review requirement of permanent budget 
        authority

    Section 403(a) amends clause 2(d)(1) of rule X of the House 
of Representatives by striking subdivisions (B) and (C) and 
inserting a new (B). This new clause 2(d)(1)(B) of rule X 
directs standing committees of the House to provide in their 
oversight plans a specific timetable for review of those laws, 
programs, or agencies within their jurisdiction, including 
those that operate under permanent budget authority or 
permanent statutory authority. This new clause further provides 
that such a timetable must demonstrate that each law, program, 
or agency within a committee's jurisdiction will be authorized 
at least once every ten years.
    Section 421(b)(1) amends clause 4(a) of rule X of the Rules 
of the House of Representatives to strike the current 
subparagraph (2), relating to the referral of a bill or joint 
resolution providing new entitlement authority as defined in 
section 3(9) of the Congressional Budget Act of 1974 to the 
Committee on Appropriations of The House of Representatives. 
Section 421(b)(2) further amends clause 4(a) of rule X of the 
Rules of the House of Representatives with respect to the 
requirement that the Committee on Appropriations study on a 
continuing basis those provisions of law that provide spending 
authority or permanent budget authority and that the Committee 
report to the House its recommendations for terminating or 
modifying such programs. Specifically, this subsection requires 
the Committee on Appropriations to report its findings at least 
once every ten years.

Sec. 422. Justifications of direct spending

    Section 422(a) amends section 302(a) of the Congressional 
Budget Act of 1974 to add a new paragraph (5) which would 
require any joint explanatory statement of managers 
accompanying a conference report on a joint resolution that 
includes an allocation to a committee (other than the Committee 
on Appropriations) that creates or increases direct spending 
for any program, project or activity to also set forth a 
justification for not subjecting that new or increased spending 
to annual discretionary appropriation.
    Section 422(b) amends section 1105(a) of title 31 of the 
United States Code to require the President in the annual 
budget submission to provide a justification for not subjecting 
each new program, project or activity to discretionary 
appropriations.
    Section 422(c) amends clause 4(e)(2) of rule X of the Rules 
of the House of Representatives to require that each standing 
committee review at least once every ten years (instead of 
``from time to time'' as under current practice) each 
continuing program within its jurisdiction for which 
appropriations are not made annually to ascertain whether the 
program should be modified to provide for annual 
appropriations. This section further provides that each 
standing committee provide specific information in any report 
accompanying such bills and joint resolutions to the greatest 
extent practicable to justify why the programs, projects, and 
activities involved would not be subject to annual 
appropriations.

Sec. 423. Survey of activity reports of House committees

    Section 423 amends clause 1(d) of rule XI of the Rules of 
the House of Representatives to add a new paragraph (4). This 
section would expand the catalogue of information required to 
be included in committee activity reports to include a summary 
of and justification for all bills and joint resolutions reported by 
that committee that violate Sections 302(a), 303(b), 311 or 401(a) of 
the Congressional Budget Act of 1974. This section also requires 
committees to specify the total amount by which legislation reported by 
that committee exceeded that committee's allocation under section 
302(a) or breached the revenue floor under section 311(a) of the Budget 
Act for each fiscal year during that Congress.

Sec. 424. Continuing study of additional budget process reforms

    Section 424 amends Section 703 of the Congressional Budget 
Act of 1974 to add a new requirement that the Committees on the 
Budget of the House of Representatives and the Senate evaluate 
whether existing programs, projects, and activities should be 
subject to annual appropriations. Section 424 also requires the 
Committees on the Budget to establish guidelines for funding 
new and expanded programs, projects or activities by means 
other than annual appropriations and to recommend during the 
106th Congress any necessary changes in statutory enforcement 
mechanisms and scoring changes to effectuate such changes.

Sec. 425. GAO reports

    Section 425 amends section 404 of the Congressional Budget 
Act of 1974 to require the General Accounting Office to revise 
its reports on direct spending programs and activities once 
every five years, instead of ``from time to time'' as under 
current law.

                Subtitle C--Strengthened Accountability


Sec. 431. Ten-year CBO estimates

    Section 431(a) amends Section 308(a)(1)(B) of the 
Congressional Budget Act of 1974 and section 431(b) amends 
Section 402(1) of the Budget Act to require the Congressional 
Budget Office (CBO) to provide ten-year cost estimates for 
bills and resolutions, reported by any committee of the House 
of Representatives or Senate, that provide new budget authority 
or provide an increase or decrease in revenues or tax 
expenditures.
    Section 431(c) amends clause 3(d)(2)(A) of rule XIII of the 
Rules of the House of Representatives to require committees to 
provide ten-year cost estimates for bills and joint resolutions 
reported by any committee of the House.

Sec. 432. Repeal of rule XXIII of the Rules of the House of 
        Representatives

    Section 432 repeals rule XXIII of the Rules of the House of 
Representatives, relating to the establishment of a statutory 
limit on the public debt.

    TITLE V--BUDGETING FOR UNFUNDED LIABILITIES AND OTHER LONG-TERM 
                              OBLIGATIONS

Sec. 501. Purposes

    The purposes of this title are to budget for unfunded 
liabilities of federal insurance and to periodically report on 
long-term budgetary trends.

     Subtitle A--Budgetary Treatment of Federal Insurance Programs


Sec. 511. Federal insurance programs

    Section 511 adds a new Title VI to the Congressional Budget 
Act of 1974 which contains the ``Federal Insurance Budgeting 
Act of 1974.'' This Act requires that the President's budget be 
based on the risk-assumed cost of federal insurance programs 
beginning with fiscal year 2006. An accounting system is 
established for all federal insurance programs.
    The new section 601 contains the short title for the act. 
New section 602 requires that annual appropriations for 
discretionary insurance programs be made on a risk-assumed 
basis beginning in fiscal year 2006. New section 603 provides 
the timetable for phasing in accrual budgeting, including the 
development and refinement of models for estimating risk, the 
display of accrual measures alongside traditional cash 
measures, and the ultimate integration into the Federal budget 
is established. New section 604 defines the terms Federal 
insurance program, insurance commitment, risk-assumed cost, 
cash flows associated with an insurance commitment, financing 
account, the cost of a modification, the cost of a re-estimate, 
expected administrative expenses, program account, financing 
account, modification, model, current, GAO, OMB and CBO.
    New section 605 authorizes appropriations for the Director 
of Office of Management and Budget at $600,000 for each of the 
fiscal years 2000 through 2005. New section 606 sets the 
effective date for the new title as enactment and the 
expiration date as September 30, 2007.

           Subtitle B--Reports on Long-Term Budgetary Trends


Sec. 521. Reports on long-term budgetary trends

    Section 521(a) further amends Section 1105(a) of title 31 
of the United States Code to require the Director of the Office 
of Management and Budget (OMB) to provide an analysis based 
upon current law and an analysis based upon the policy 
assumptions underlying the budget submission for every fifth 
year of the period of 75 fiscal years of total new budget 
authority and total budget outlays, estimated revenues, 
estimated surpluses and deficits, and, for Social Security, 
Medicare, Medicaid, and all other direct spending, estimated 
levels of total newbudget authority and total budget outlays. 
Section 521(a) would also require OMB to provide a specification of its 
underlying assumptions as well as a sensitivity analyses of factors 
that have a significant effect on the projections made in each 
analysis. The Director of OMB would also be required to provide a 
comparison of the effects of each of the two analysis on the economy, 
including such factors as inflation, foreign investment, interest rates 
and economic growth. Such analysis shall also include the Social 
Security trust funds.
    Section 521(b) amends section 202(e)(1) of the 
Congressional Budget Act of 1974 to require the Director of the 
Congressional Budget Office to prepare a similar analysis in 
the required reports to the Committees on the Budget of the 
House and Senate made on or before February 15 of each year.

              Title VI--Baselines, Byrd Rule and Lock-Box


Sec. 601. Purposes

    The purposes of this title are to require budgetary 
comparisons to prior year levels, to restrict the application 
of the Senate's Byrd rule to measures other than conference 
reports, and to establish a procedure to allow savings from 
spending cuts in appropriation measures to be locked-in to 
increase the surplus or reduce the deficit.

                        Subtitle A--The Baseline


Sec. 611. The President's budget

    Section 611(a), (b), (c), and (d) amends paragraphs (5), 
(6), (12) and (18) of section 1105(a) of title 31 of the United 
States Code to require the President's budget submission to 
include comparisons of his budget proposals for the ensuing 
four fiscal years to the comparable levels of the prior fiscal 
year. The President's budget submission would also be required 
to include the percentage change from the current year to the 
fiscal year for which the budget is submitted for estimated 
expenditures and appropriations.
    Section 611(e) further amends section 1105(a) to add a new 
paragraph (35) to require a comparison of the levels of 
estimated expenditures and proposed appropriations for each 
function and subfunction in the current fiscal year and the 
fiscal year for which the budget is submitted, along with the 
proposed increase or decrease of spending in percentage terms 
for each function and subfunction. A new paragraph (36) is also 
added to require a table on the sources of growth in total 
direct spending under current law and as proposed in the budget 
submission for the budget year and the ensuing 9 fiscal years. 
This table must include changes in outlays attributable to the 
following: cost-of-living adjustments; changes in the number of 
program recipients; increases in medical care prices, 
utilization and intensity of medical care; and residual 
factors.
    Section 611(f) amends section 1109(a) of title 31 of the 
United States Code to stipulate that these budgetary 
projections shall not include an adjustment for discretionary 
spending but shall assume the levels set forth under section 
251(c) of the Balanced Budget and Emergency Deficit Control Act 
of 1985, as adjusted, for the appropriate fiscal years. This 
section further provides that if no such limits are in effect, 
these estimates shall assume the adjusted levels of the most 
recent fiscal year for which such discretionary spending levels 
were in effect.

Sec. 612. The Congressional Budget

    Section 612(1) amends section 301(e)(1) of the 
Congressional Budget Act of 1974 to require that the basis of 
deliberations in developing a joint budget resolution in the 
Committee on the Budget be the estimated budgetary levels for 
the preceding fiscal year. Any budgetary levels pending before 
the Committee on the Budget and the text of the joint budget 
resolution is to be accompanied by a document, such as the 
committee report, comparing such levels or such text to the 
estimated levels of the prior fiscal year. This section also 
requires that any amendment offered in the Committee on the 
Budget that changes a budgetary level and is based upon a 
specific policy assumption for a program, project or activity 
must be accompanied by a document indicating the estimated 
amount for such program, project to activity in the current 
year.
    Section 612(2) amends section 301(e)(2) of the Budget Act 
to direct the Committee on the Budget to express reconciliation 
instructions as total levels of spending and revenue and in 
percentage terms for each function.

Sec. 613. Congressional Budget Office reports to committees

    Section 613(a) amends section 202(e)(1) of the 
Congressional Budget Act of 1974 to require the Congressional 
Budget Office (CBO) to issue cost estimates compared to 
comparable levels for the current fiscal year.
    Section 613(b) also amends section 202(e)(1) to require 
that CBO reports include a table on the sources of spending 
growth in total direct spending under current law and as 
proposed in the budget submission for the budget year and the 
ensuing 9 fiscal years. This table must include changes in 
outlays attributable to the following: cost-of-living 
adjustments; changes in the number of program recipients; 
increases in medical care prices, utilization and intensity of 
medical care; and residual factors.Section 613(c) amends 
section 308(a)(1)(B) of the Congressional Budget Act of 1974 to require 
that the Congressional Budget Office's reports to committees of the 
House of Representatives and the Senate contain estimates compared to 
comparable levels for the current fiscal year.

Sec. 614. Outyear assumptions for discretionary spending

    Section 614 provides that, for the purposes of chapter 11 
of title 31 of the United States Code or the Congressional 
Budget Act of 1974, the Director of the Office of Management 
and Budget and the Director of the Congressional Budget Office 
should assume the discretionary levels of the last year for 
which discretionary spending limits were in effect when making 
budgetary projections for years for which there are no such 
limits.

                       Subtitle B--The Byrd Rule


Sec. 621. Limitation on Byrd rule

    Section 621(a) amends section 313 of the Congressional 
Budget Act of 1974 to provide that the application of a point 
of order against extraneous material in a reconciliation bill 
shall apply to the bill or resolution or to any amendment 
thereto and not to any conference report on such reconciliation 
bill.
    Section 621(b) contains a conforming amendment to section 
312(e) of the Congressional Budget Act of 1974 to provide that 
the point of order under section 313 does not apply to 
amendments between the Houses.

              Subtitle C--Spending Accountability Lock-box


Sec. 631. Short title

    The short title of this subtitle is the ``Spending 
Accountability Lock-box Act of 1999.''

Sec. 632. Spending Accountability Lock-box Ledger

    Subsection (a) of the subtitle would add a new section 320 
to Title III of the Congressional Budget Act of 1974, entitled, 
``Spending Accountability Lock-Box Ledger.'' Section 320(a) 
would establish a ``Spending Accountability Lock-box Ledger'' 
to be maintained by the Chairman of the Committee on the Budget 
of the House and the Chairman of the Committee on the Budget of 
the Senate. The Ledger would be divided into 13 entries 
corresponding to the 13 subcommittees of the Committees on 
Appropriations of the House and Senate. Each entry would 
consist of three parts: the ``House Lock-box Balance,'' the 
``Senate Lock-box Balance,'' and the ``Joint House-Senate Lock-
box Balance.'' Section 320(b) provides that each component of 
an entry would consist only of amounts credited to it under 
subsection (c), but that no negative amount would be entered.
    Section 320(c)(1) specifies the manner in which amounts are 
to be credited to the entry of each House. Each entry for the 
House and Senate would consist of amounts credited to it by the 
Chairman of the Committee on the Budget of the House and Senate 
upon the engrossment of any appropriations bill or resolution 
by the House and by the Senate. The amount to be credited to 
the balance of the House involved would equal the net amounts 
of reductions in budget authority and outlays resulting from 
amendments agreed to by that House, as calculated by the 
respective chairman of the Committee on the Budget. A Member 
may state the portion of such reduction that would be credited 
to the House Lock-Box Balance or used to offset an increase in 
new budget authority in any other account or allowed to remain 
within the applicable allocation or any combination thereof. If 
no such statement is made by the Member, the amount of the 
reduction in budget authority would be credited to the 
applicable Lock-box balance, should that amendment be adopted.
    Section 320(c)(2) specifies the methods by which the 
amounts to be credited to the House or Senate Lock-box Balance, 
as applicable, would be calculated by the Chairman of the 
Committees on the Budget of each House.
    Section 320(c)(3) and (4) specifies the manner in which 
amounts are to be credited to the Joint House-Senate Lock-box 
Balance. The joint lock-box balance would be the average of the 
House and Senate balances for that bill at the time the Senate 
bill or Senate amendments to a House bill is engrossed, as 
calculated by the Chairman of the Committees on the Budget of 
the House and Senate.
    Section 320(d) defines an appropriation bill as any general 
or special appropriation bill, and any bill or joint resolution 
making supplemental, deficiency, or continuing appropriations 
through the end of a fiscal year.
    Section 632(b) of the bill contains a conforming amendment 
to the table of contents of the Congressional Budget Act of 
1974 reflecting the addition to the new section 320 ``Spending 
Accountability Lock-box Ledger.''

Sec. 633. Tally during House consideration

    Section 633 of the bill requires that a running tally be 
made available to Members of the House during the consideration 
of any appropriations bill resulting from the adoption of 
amendments which increase or decrease budget authority in the 
bill as reported.

Sec. 634. Downward adjustment of 302(a) allocations and section 302(b) 
        suballocations

    Section 634 of the bill provides for the downward 
adjustments of the 302(a) allocations and section 302(b) 
suballocations.
    Subsection (a), ``Allocations,'' amends section 302(a) of 
the Budget Act by adding a new paragraph (5) providing that, 
upon the engrossment of any appropriation bill by the House or 
Senate, the amounts allocated to the Committee on 
Appropriations of each House under the most recent budget 
resolution would be adjusted downward by the amounts credited 
to the applicable Joint House-Senate Lock-box Balance under 
section 314(c)(2), as calculated by the Chairmen of the 
Committee on the Budget of each House, and the revised levels 
of budget authority and outlays would be submitted to each 
House in the Congressional Record.
    Subsection (b), ``Suballocations,'' amends section 
302(b)(1) of the Budget Act by adding at the end a new sentence 
providing that whenever an adjustment is made under subsection 
(a)(5) to an allocation, the Committee on Appropriations would 
make downward adjustments in the most recent suballocations to 
the appropriate subcommittees of that House. The Chairmen of 
the Committees on Appropriations of each House would submit the 
revised suballocations to that House in the Congressional 
Record.

Sec. 635. Periodic reporting of account statements

    Section 308(b)(1) of the Congressional Budget Act of 1974 
would be amended to require the Director of CBO to include in 
the periodic score-keeping reports an up-to-date tabulation of 
the amounts contained in the Spending Accountability Lock-box 
Ledger and each subaccount established by section 320(a).

Sec. 636. Downward adjustment of discretionary spending limits

    The Director of OMB would be required to adjust the 
statutory discretionary spending limits for new budget 
authority, as adjusted, by the amounts of reductions in the 
302(a) allocations made under section 302(a)(5), as calculated 
by the Chairmen of the Committees on the Budget of the House 
and Senate. The amounts of the adjusted discretionary spending 
for outlays would be reduced for that fiscal year as a result 
of the reduction of budget authority, as calculated by the 
Director of OMB. The reductions would be made upon the 
enactment of all regular appropriations bills for a fiscal year 
or a resolution making continuing appropriations through the 
end of that fiscal year. The adjustments would be reflected in 
the reports required to be made by the OMB Director under 
sections 254(g) and 254(h) of the Balanced Budget and Emergency 
Deficit Control Act.

              Subtitle D--Automatic Continuing Resolution


Sec. 641. Automatic continuing resolution

    Section 641(a) amends chapter 13 of title 31 of the United 
States Code to add a new section 1311 dealing with continuing 
appropriations. This section provides that if any regular 
appropriation bill for a fiscal year does not become law prior 
to the beginning of such fiscal year or a joint resolution 
making continuing appropriations is not in effect, there is 
appropriated, out of any moneys in the Treasury not otherwise 
appropriated, and out of applicable corporate or other 
revenues, receipts, and funds, such sums as may be necessary to 
continue any program, project or activity for which funds were 
provided in the preceding fiscal year in the corresponding 
regular appropriation Act for such preceding fiscal year; or if 
the corresponding regular appropriation bill for such preceding 
fiscal year did not become law, then in a joint resolution 
making continuing appropriations for such preceding fiscal 
year.
    Appropriations and funds made available, and authority 
granted, for a program, project or activity for any fiscal year 
shall be at a rate of operations not in excess of the rate of 
operation provided for in the regular appropriation Act 
providing for such program, project or activity for the 
preceding fiscal year, or in the absence of such an Act, the 
rate of operations provided for such program, project or 
activity pursuant to a joint resolution making continuing 
appropriations for such preceding fiscal year.
    Appropriations and funds made available, and authority 
granted, for any fiscal year for a program, project or activity 
shall be available for the period beginning with the first day 
of a lapse in appropriations and ending with the earlier of the 
date on which the applicable regular appropriation bill for 
such fiscal year becomes law (whether or not such law provides 
for such project or activity) or a continuing resolution making 
appropriations becomes law, as the case may be, or the last day 
of such fiscal year.
    An appropriation or funds made available, or authority 
granted, for a program, project or activity for any fiscal year 
pursuant to this section shall be subject to the terms and 
conditions imposed with respect to the appropriation made or 
funds made available for the preceding fiscal year, or 
authority granted for such program, project or activity under 
current law. Appropriations and funds made available, and 
authority granted, for any program, project or activity for any 
fiscal year pursuant to this section shall cover all 
obligations or expenditures incurred for such program, project 
or activity during the portion of such fiscal year for which 
this section applies to such program, project or activity.
    Expenditures made for a program, project or activity for 
any fiscal year pursuant to this section shall be charged to 
the applicable appropriation, fund, or authorization whenever a 
regular appropriation bill or a joint resolution making 
continuing appropriations until the end of a fiscal year 
providing for suchprogram, project or activity for such period 
becomes law. This section shall not apply to a program, project or 
activity during a fiscal year if any other provision of law (other than 
an authorization of appropriations) makes an appropriation, makes funds 
available, or grants authority for such program, project or activity to 
continue for such period, or specifically provides that no 
appropriation shall be made, no funds shall be made available, or no 
authority shall be granted for such program, project or activity to 
continue for such period.
    For the purposes of this section, the term ``regular 
appropriation bill'' means any annual appropriation bill making 
appropriations, otherwise making funds available, or granting 
authority, for any of the thirteen regular appropriation bills 
including: Agriculture; Commerce, Justice, and State; Defense, 
District of Columbia; Labor, Health and Human Services, and 
Education; Housing and Urban Development, and sundry 
independent agencies; Energy and Water Development; Foreign 
Assistance; Interior; Military Construction; Transportation; 
Treasury, Postal Service, and the Executive Office of the 
President; and the Legislative Branch.
    Section 641(b) makes conforming amendments to section 
202(e)(3) of the Congressional Budget Act of 1974. Section 
641(c) makes conforming amendments to chapter 13 of title 31, 
United States Code.
    Section 641(d) provides that nothing in the amendments made 
by this subsection shall be construed to affect Government 
obligations mandated by other law, including obligations with 
respect to social security, medicare, and medicaid.

              TITLE VII--BUDGETING IN AN ERA OF SURPLUSES

Sec. 701. Paygo requirements and the on-budget surplus

    Title VII restates many of the PAYGO requirements stated in 
section 252 of the Balanced Budget and Emergency Deficit 
Control Act of 1985 to ensure that there is no sequester if 
there is an on-budget surplus, to require additional offsets if 
the on-budget surplus declines, and to clarify that the costs 
of all direct spending or receipts legislation are included in 
sequestration calculations.
    Section 701(a) amends Section 252(a) of the Balanced Budget 
and Emergency Deficit Control Act of 1985 to state that the 
purpose of this section is to trigger an offsetting 
sequestration in the amount by which any excess of decreases in 
receipts and increases in direct spending over increases in 
receipts and decreases in direct spending, caused by all direct 
spending and receipts legislation enacted prior to October 1, 
2002, exceeds estimates of the on-budget surplus.
    Section 701(b)(1) amends section 252(b) of the Balanced 
Budget and Emergency Deficit Control Act of 1985 to reduce the 
amount of any sequester by the Office of Management and Budget 
(OMB), which is determined by the net costs of all PAYGO 
legislation for that fiscal year, by the amount of OMB's 
estimate of the non-budget surplus. Section 701(b)(2) adds a 
new section 252(b)(3) of the Deficit Control Act of 1985 that 
specifies that such excess of receipts over outlays do not 
include the balances from Social Security and other off-budget 
entities.
    Section 701(c) amends section 254(c)(3) of the Balanced 
Budget and Emergency Deficit Control Act of 1985 by 
redesignating subparagraph (C) as subparagraph (D) and adding a 
new subparagraph (C) requiring the Office of Management and 
Budget to include the estimated on-budget surplus for the 
budget year in its preview reports. This section also specifies 
several assumptions for OMB and CBO to make in estimating the 
on-budget surplus, if any, in the sequester reports.
    Section 701(d) amends section 254(f)(3) of the Balanced 
Budget and Emergency Deficit Control Act of 1985 to require the 
Office of Management and Budget to use economic and technical 
assumptions that are up-to-date as of the date of the 
sequestration preview reports. Consequently, OMB is required to 
re-estimate its projection of the on-budget deficit in its 
Preview Report that is submitted with the President's budget 
submission in January or early February. This section further 
provides that it is on the basis of this projection of the on-
budget surplus that OMB calculates the amount of any sequester. 
The significance of this update is that sequestration is not 
held harmless in any change in the on-budget surplus to the 
extent that such surplus is being used to offset the costs of 
enacted PAYGO legislation.
    Section 701(e) amends section 250(c) of the Balanced Budget 
and Emergency Deficit Control Act of 1985 to again clarify that 
the estimates of the on-budget surplus do not include the 
outlays of the Social Security trust funds (both retirement and 
disability) and other off-budget entities. By excluding these 
cash flows, these PAYGO changes will have no bearing on the 
amounts credited to the Social Security trust funds or the 
actuarial status of these funds. An on-budget surplus is 
defined as the amount by which receipts exceed outlays for all 
spending and receipt accounts that are designated as on-budget, 
and specifically excludes the Social Security Trust Fund.
    Section 701(f) amends section 258(C) of the Balanced Budget 
and Emergency Deficit Control Act of 1985 to extend to the 
House a Senate expedited procedure for considering 
reconciliation legislation designed to preempt any PAYCO 
sequester. Under this procedure, each standing committee can 
submit to the Budget Committee of its House legislative 
alternatives to avoid such a sequester. Afterthe standing 
committees have submitted such a report and not later than October 15, 
the House and Senate may pass a simple resolution instructing the 
committees to submit legislation offsetting at least part of the 
sequester. The standing committees are then required to report their 
recommendations to the Committee on the Budget, which shall report the 
recommendations in the form of a reconciliation bill to its House.

                        Analysis of Legislation

    The Congressional Budget Act of 1974 was proposed under the 
banner of reasserting congressional prerogatives in the budget 
process vis-a-vis the executive branch. The budget resolution 
provides an annual statement of Congressional priorities, or 
more simply stated, an annual vision of the government's 
priorities. For 25 years this role has evolved to the point 
where congressional consideration of a budget resolution--the 
first of the legislative branch in the budget proces--is often 
done without consultation with the executive branch. This 
policy developed in isolation often leads to a protracted 
budget process and an unmanageable budgeting scenario at the 
end of the fiscal year. Because the decision made by the budget 
resolution provide procedural restraints on the rest of the 
congressional budget process, negotiations with Administration 
are often hampered, discouraged and, as a result, are generally 
difficult to implement.
    The Committee believes that this balance between the roles 
of the executive and legislative branches must be retooled in a 
manner that encourages early cooperation on the macro targets 
in the budget while allowing the micro elements of the federal 
budget to be worked out through the regular, orderly 
legislative process. To this end, H.R. 853 converts the 
concurrent resolution on the budget into a joint resolution on 
the budget.
    The mechanics of this proposal operate in many respects 
similar to that under current law with a few notable 
exceptions. First, the timing for consideration of he budget 
resolution under section 300 of the Budget Act remains the same 
except that appropriation bills are not longer granted 
consideration in the House of Representatives after May 15th in 
the absence of the final adoption of the budget resolution. 
This exception under the current law is intended to ensure that 
the appropriation process is not held up so long that 
completion of the entire process by the beginning of the fiscal 
year becomes jeopardized. Removing this exception provides a 
greater incentive for the two branches to come to an early 
agreement in the budget year on the broad parameters of the 
budget as outlined in the joint budget resolution. In the 
absence of such an agreement, considering appropriations bills 
would run afoul of section 303 of the Budget Act in the House. 
The Committee believes that the current law exception provides 
an escape valve on the process that, contrary to its intent, 
actually fosters greater delay in reaching an agreement on the 
budget resolution.
    The Committee also notes that despite H.R. 853's proposed 
changes in the timetable of the budget process and the 
conversion of the budget resolution to a joint resolution, the 
enforcement nature of these deadlines remains the same. 
Currently, the deadlines, in and of themselves, are not binding 
in the House or Senate unless otherwise stated in the Budget 
Act or the rules of the House or Senate. Specifically, these 
changes are not designed to alter the current manner in which 
the deadlines are utilized for enforcement purposes and points 
of order in the Senate.
    Second, the contents of the joint budget resolution have 
been simplified to require only the inclusion of broad 
categories for spending and revenue including: (1) totals of 
new budget authority and outlays; (2) total Federal revenues 
and the amount, if any, by which the aggregate level of Federal 
revenues should be increased or decreased by bills and 
resolutions to be reported by the appropriate committees; (3) 
the surplus or deficit in the budget; (4) subtotals of new 
budget authority and outlays for non-defense discretionary 
spending; (5) subtotals of new budget authority and outlays for 
defense discretionary spending; (6) subtotals of new budget 
authority and outlays for direct spending (excluding interest); 
(7) subtotals of new budget authority and outlays for interest; 
and (8) subtotals of new budget authority and outlays for 
emergencies. This is intended to simplify the contents of the 
joint budget resolution, thereby fostering an agreement on the 
broad macro parameters of the budget prior to negotiations on 
specific programs, project or activities.
    Among the most familiar elements included in the concurrent 
resolution on the budget under current law are the spending 
allocations and reconciliation directives to committees on the 
House and Senate. H.R. 853 moves these allocations and 
directives to the report accompanying the joint resolution on 
the budget in recognition of the fact that these two primary 
functions of the budget resolution are sole congressional 
prerogatives. However, it is anticipated that the committee 
allocations and reconciliation directives would be commensurate 
with the total levels of budget authority, outlays and revenues 
included in the text of the joint resolution.
    The Committee would also note that these newly constructed 
content requirements include for the first time one category 
encompassing all budget authority and outlays of direct 
spending, excluding interest. Under the current construct of 
the budget resolution, there is no similar unified category. 
The Committee believes that this highlighted measurement will 
increase the accountability of the Congress and the President 
in determining the nature or type of Federal spending as well 
as add further transparency to the budget process.
    Nevertheless, these levels in the joint resolution have no 
direct enforcement relationship to the sequestration mechanisms 
under the Balanced Budget and Emergency Deficit Control Act of 
1985, as amended. These levels are also not intended to 
supersede or replace the procedural enforcement for revenues 
and direct spending of the PAYGO scorecard or the enforcement 
of the discretionary spending limits.
    Another important item which may be included in the joint 
resolution is the statutory limit on the public debt. Under 
current law, the concurrent resolution may include a line item 
which sets out the level of the public debt. However, since 
this resolution is not presented to the President for 
signature, it cannot bring about a direct change in the 
statutory limit on the public debt. As a result, House rule 
XXIII currently provides for a spin-off joint resolution 
carrying a change in such a limit should the levels assumed in 
the budget resolution require such a change. In this way, under 
the existing process the House is not required to vote directly 
on a measure containing such a change. In addition to repealing 
House rule XXIII under Title IV, H.R. 853 actually provides for 
the inclusion of the debt limit change in the text of the 
budget resolution. The Committees on the Budget of the House 
and Senate may only include a change in the statutory limit on 
the public debt only if submitted by the Committee on Ways and 
Means of the Committee on Finance. The Committee notes that 
this submission is pursuant to a collegial action by the 
Committee on Ways and Means or the Committee on Finance. These 
committees would act as a body and then submit the approved 
change to the Budget Committees for inclusion in the joint 
budget resolution.
    If the change in the debt limit included in the joint 
resolution pursuant to this procedure, the reporting of a joint 
resolution on the budget containing it would trigger a referral 
to the Ways and Means Committee after the resolution as 
reported by the Budget Committee. It is also intended that the 
inclusion of such a provision should not trigger a violation of 
clause 5(a) of rule XXI of the Rules of the House of 
Representatives, which prohibits a tax or tariff provision from 
being included in a bill unless that bill has been reported by 
a committee with jurisdiction over revenue measures.
    Finally, H.R. 853 provides that the joint resolution may 
contain matters ``which require such other congressional 
procedures, relating to the budget, as may be appropriate to 
carry out the purposes of [the Budget] Act.'' This takes the 
place of the existing section 301(d)(4) which states that the 
resolution may ``set forth such other matters, and require such 
other procedures, relating to the budget, as may be appropriate 
to carry out the purposes of [the Budget] Act.'' This current 
``elastic clause,'' as this subparagraph is often called, 
allows for the resolution to contain other matters, many of 
which have no direct implications on the budget. These matters 
have most often taken the form of Sense of the House and/or 
Senate resolutions on various policy matters. The Committee 
notes that H. Con. Res. 68 the concurrent resolution on the 
budget for FY 2000 contained 8 Sense of the House resolutions 
and 62 Sense of the Senate resolutions when passed by each 
House respectively and contained 35 such resolutions in the 
conference report.
    Since under H.R. 853 the budget resolution becomes a joint 
resolution, the bill seeks to narrow the scope of this elastic 
clause. The repeal of the existing clause is intended to break 
with the precedent of its broad application and replace it with 
a new, more narrowly tailored one. The Committee specifically 
notes that this clause allows for the inclusion of matters 
relating to congressional procedures, not just general 
procedures relating to the budget. These may include matters 
within the jurisdiction of the Committee on the Budget and the 
Committee on Rules but should follow the procedures laid out in 
sections 301 and 306 of the Budget Act relating to committee 
considerations of such matters. The Committee particularly 
urges that matters relating to the rules of the House be 
addressed pursuant to section 301(c) of the Budget Act, while 
noting the committee's preference that such matters not be 
included in any such joint resolution.
    This new narrowed elastic clause should also be viewed in 
context with the new section 305(e) of the Budget Act. This 
section places a strict limitation on the contents of the 
budget resolution enforceable through points of order on the 
floors of the House and Senate. Specifically, any joint 
resolution or any amendment thereto or any conference report 
thereon may not contain any matter that is not permitted to be 
included in such resolution, amendment, or conference report 
pursuant to section 301(a) of (b), as amended by H.R. 853. If a 
joint resolution contains such a prohibited matter, a point of 
order may lie against its consideration in the House and the 
Senate, it is ineligible for the expedited procedures outlined 
in sections 301 and 316 for the consideration of joint and 
concurrent resolutions (respectively) and it forgoes the 
protections from unlimited amendments granted budget 
resolutions in the Senate.
    Taken together these two provisions of H.R. 853--the 
narrowed elastic clause and the limitation on the contents of 
the budget resolultion--are designed to provide Congress with 
somenecessary flexibility to reach agreement with the President 
and/or to achieve the broad objectives of the budget resolution. 
However, this flexibility is granted within a procedural box to 
preserve the sanctity of the budget resolutions as a vehicle for a 
broad agreement on budgetary aggregates.
    Third, the required contents of the report accompanying the 
joint resolution and the joint explanatory statement 
accompanying any conference report on the joint resolution have 
been modified. Under current law, the text of the budget 
resolution is required to contain the allocations of budget 
authority and outlays outlined in section 302(a) of the Budget 
Act for each relevant committee of the House and Senate. H.R. 
853 moves these required elements from the text of the 
resolution to required elements of the committee report and 
joint explanatory statement accompanying any such resolution. 
The Committee notes that allocations of spending authority to 
committees of the House and Senate are solely congressional 
prerogatives and should remain so under the construct of a 
joint resolution on the budget. Likewise, the reconciliation 
directives under section 310, now an optional matter for 
inclusion in the concurrent resolution, are changed to be an 
optional matter for inclusion in the committee report and joint 
explanatory statement accompanying any such budget resolution, 
if they are necessary.
    H.R. 853 also adds a number of new matters to the list of 
optional items which may be included in the report accompanying 
the joint resolution. First, the report may include a measure, 
as a percentage of the gross domestic product, of total 
outlays, total Federal revenues, the surplus or deficit, and 
new outlays for nondefense discretionary spending, defense 
spending and direct spending as outlined in the joint 
resolution. This is designed to provide the Congress, the 
President, and the public with a regular measure of budgetary 
aggregates as a percentage of the economy.
    H.R. 853 also establishes a fallback concurrent resolution 
on the budget should the joint resolution be vetoed by the 
President. This soft landing for disagreements in the budget 
process will ensure that Congress can complete its work on the 
annual appropriation bills and any necessary reconciliation 
legislation even when there is a failure to reach an up front 
agreement with the Administration. However, this fallback 
procedure does not kick in until a joint resolution on the 
budget is actually vetoed. The Committee notes the concerns of 
some cynics that the mere existence of a fallback concurrent 
resolution will guarantee that its use will become the norm 
rather than the exception. The assertion is that a joint 
resolution will actually make the budget resolution even more 
of a political document than it is under the current budget 
process.
    To the contrary, the Committee believes that since the 
expedited procedures and the option of a concurrent resolution 
only kick in once the entire process for considering a joint 
resolution (including House and Senate Budget Committee 
consideration, House and Senate floor consideration, conference 
consideration, House and Senate consideration of the conference 
report and presentment of the conference report to the 
President) is complete the budget and legislative processes 
provide a strong disincentive to presenting the President with 
a purely political joint resolution. Furthermore, the Committee 
notes that H.R. 853 repeals the existing loopholes in the 
budget process for considering the annual appropriation bills 
in the House in the absence of completing agreement on the 
budget resolution. Not being able to proceed in the House on 
these appropriation bills will provide an additional hammer on 
both the Congress and the President to reach some form of an 
agreement on the budget resolution.
    To ensure that Congress can still complete its work in the 
event of a Presidential veto of the joint budget resolution, 
consideration of this fallback concurrent resolution would 
occur under expedited procedures in the House and the Senate. 
Upon the veto of the joint resolution, the Majority Leader of 
the House and Senate may introduce either a concurrent or 
another joint resolution on the budget. If the Committee on the 
Budget of the respective House fails to report the resolution 
within five calendar days from the day in which the matter was 
referred to it, the committee is automatically discharged from 
further consideration of the resolution and the resolution is 
placed on the appropriate calendar of the House or Senate. The 
five calendar days excludes Saturdays, Sundays or legal 
holidays unless that House is in session one of those days. 
Once discharged consideration of the budget resolution, 
amendments thereto or a conference report thereon will be in 
accordance with consideration of the provisions of section 305 
of the Budget Act with a few minor modifications. In the 
Senate, debate on the budget resolution, amendments thereto or 
a conference report thereon shall be limited to not more than 
10 hours and in the House to not more than 3 hours. H.R. 853 
further provides that the content of the budget resolution 
considered pursuant to these expedited procedures must conform 
to the content requirements outlined in section 301 for the 
report accompanying the resolution and the resolution itself.
    Finally, H.R. 853 provides that, for the purposes of the 
Rules of the House of Representatives and sections 302, 303, 
and 311 of the Budget Act, the adoption of such a concurrent 
resolution on the budget is considered to be the adoption of a 
joint resolution. This specifically applies to the 
implementation of the aggregates, allocations and 
reconciliation directives called for in such a resolution. 
Consequently, a concurrent resolution agreed to by both Houses 
pursuant to these expedited procedures is deemed to have the 
same procedural force and effect as the enactment of a joint 
resolution.

                         TITLE II--EMERGENCIES

    There is nearly universal agreement that the manner in 
which the federal government responds with financial assistance 
to emergencies is in need of fundamental reform. The lack of 
predictability of natural disasters and national security 
crises makes this a difficult problem. What makes it even more 
vexing is the way in which emergencies are handled within the 
budget process and the complex set of pressures and counter-
pressures that have resulted in costly and embarrassing delay 
and partisan wrangling over disaster relief.
    Under the current process, the President and the Congress 
together determine that funding is necessary to meet an 
emergency, and, when that occurs, money can be spent beyond the 
reach of the procedural constraints in the budget process. This 
framework provides significant opportunity for spending excess, 
as the incentives are there to pad emergency spending bills 
with funding for non-emergency matters as a way to get around 
the discipline imposed by the spending limits. Recent history 
is replete with examples of legislative ``Christmas trees,'' 
where bona fide emergencies have become the underlying vehicle 
for legislators and the Administration to secure billions of 
dollars of non-emergency funding for unrelated programs.
    The Committee recommends revising the process to put an end 
to this kind of abuse, establishing instead a reserve fund for 
emergency spending based on an historical rolling-average of 
spending on emergencies in the previous five years. This 
recommendation is based in large part on the work of 
Representative Mike Castle (R-DE), who has repeatedly presented 
to the Congress legislation to establish a so-called ``rainy 
day fund'' for responding to emergencies in much the same way 
as the process is handled by most states.
    The process envisioned by H.R. 853 is based upon 
implementation of a set of criteria for determining whether a 
situation meets the test of ``emergency,'' and expanding 
accountability by requiring the Budget Committee to certify 
whether funds may be allocated from the emergency reserve fund.
    In section 203, the bill establishes a statutory definition 
for emergency, relying on the criteria already in use by the 
Administration and outlined in an Office of Management and 
Budget (OMB) Circular (A-11). This definition is designed to 
assist the Congress and the Administration in ensuring that 
funds drawn from the emergency reserve fund are used only for 
circumstances that can truly be described as emergencies. It is 
the view of the Committee that the term ``unanticipated'', 
defined in H.R. 853 as ``sudden,'' ``urgent,'' ``unforeseen,'' 
and ``temporary'' provides a workable framework for this 
process. The Committee believes that the definition is specific 
enough to accomplish this goal, while providing sufficient 
flexibility to be practical in meeting unforeseen events in the 
future.
    Section 204 provides that, in implementing this new 
process, the chairmen of the Budget Committees in each House 
are charged with establishing guidelines for applying this 
definition within five months of enactment of this bill. The 
Committee expects that the chairman of either Budget Committee, 
if no agreement can be reached between the two Houses, would 
file guidelines for that House within the allotted time. 
Further, the Committee expects that those guidelines would be 
reviewed periodically.
    The Committee has reviewed the types of events in recent 
months and years that have prompted calls for emergency 
spending--including acts of nature and rapidly evolving 
national security crises. There is little disagreement about 
whether a massive earthquake, flood, hurricane or tornado 
qualifies as a true emergency. The problem is that spending for 
unrelated programs--a program for midnight basketball for 
troubled young people, for example--is often tacked onto these 
so-called ``must pass'' bills. In addition, the Committee notes 
that Administration requests for responding to the onset of the 
Year 2000 computer crisis or ongoing funding of military 
action, such as the mission in Bosnia, while legitimate matters 
for debate and competition for federal funds, do not 
necessarily constitute emergencies. The Committee intends that, 
with a specific statutory definition and guidelines for 
applying that definition, the Administration and the Congress 
should limit their use of emergency funds to those situations 
that truly meet the test.
    H.R. 853 repeals the current ``emergency designation'' and 
the procedures associated with it in the Balanced Budget and 
Emergency Deficit Control Act of 1985. This designation is no 
longer necessary under the new procedures as outlined in the 
bill.
    As part of the annual budget process as proposed by H.R. 
853, section 205 provides that, when the President and the 
Congress agree on the aggregate numbers for the joint budget 
resolution, they would also agree on a level for budget 
authority and outlays in the emergency reserve fund. This level 
is to be based upon historical data reflecting a rolling 
average of spending for emergencies during the past five years.
    If the President has vetoed the joint resolution on the 
budget, and the Congress has agreed to a concurrent resolution, 
that concurrent resolution would also contain the levels for 
the reserve fund for emergencies.
    In order to ensure that the process is not manipulated at 
the outset in an effort to pad the fund up front to allow for 
enhanced spending later on, section 208 of H.R. 853 creates a 
point of order in the House and Senate against any amendment to 
a budget resolution that seeks to change the amount of budget 
authority and outlays that is set for the emergency reserve 
fund. This point of order may only be waived by a three-fifths 
vote in the Senate.
    H.R. 853 provides a series of accountability measures to 
ensure that funding from the reserve is used for bona fide 
emergencies. Under section 205 of the bill, when the President 
submits a request for spending for an emergency, he is required 
to justify why that situation meets the definition of an 
emergency. Once a committee reports a bill providing budget 
authority for an emergency that it believes complies with the 
new definition, it must identify all provisions that provide 
budget authority for an emergency and explain how that 
emergency meets the definition. The Budget Committee is then 
charged with certifying that the test has been met and then 
making the necessary adjustment to the allocation for the 
reserve fund under section 302(a). The amount of the adjustment 
may not exceed the total that is provided in the reserve fund.
    The Committee has modified H.R. 853 from its introduced 
form and from the form reported by the Budget Committee, to 
delete the provision of the bill that provides for amounts in 
excess of the reserve. It is the view of the Committee that 
establishing a complex procedure for addressing amounts beyond 
those provided in the reserve fund could result in a costly 
hoophole to the fiscal discipline and advance planning that the 
legislation seeks to accomplish. A review of the historical 
data suggests that, when only those situations that 
legitimately can be described as emergencies are taken into 
account, there is some consistency in amounts needed on an 
annual basis to cover natural disaster and national security 
crises. The Committee does not believe it is necessary to 
assume at the outset of this new process that the reserve fund 
will be exhausted.
    Under the existing budget process, in order for spending to 
occur outside of the budget constraints (i.e. the discretionary 
spending limits and the PAYGO scorecard) such spending must 
either be designated as an emergency and consequently as 
exempted from these constraints or this spending must be 
accompanied by a change in the statutory levels assumed in 
these constraints. This averts a sequester of the requisite 
amounts of already expended funds. In recent years, both of 
these approaches have been utilized by Congress and the 
Administration to expend funds for an emergency. H.R. 853 
repeals the process by which Congress and the President 
designate certain spending as emergency spending. This repeal 
precludes the Budget Act from assuming that there will be 
``allowable spending'' outside of the budget constraints. 
However, H.R. 853 continues and assumes that the regular 
legislative process with Congress and the President calling for 
emergency spending and their answering this call with a change 
in the statutory constraints. The Committee believes this 
process provides a legitimate, above broad approach to 
responding to emergency spending needs above and beyond the 
levels budgeted up front in the emergency reserve fund.
    This title of H.R. 853 applies beginning in fiscal year 
2001, but it only takes effect after the discretionary spending 
limits and PAYGO requirements outlined in sections 251 and 252 
of the Balanced Budget and Emergency Deficit Control Act of 
1985 have been changed or extended. The Committee notes that 
this is necessary in order to allow for adjustments to those 
statutory constraints that will take into account this new 
process for emergencies.

             TITLE III--ENFORCEMENT OF BUDGETARY DECISIONS

    The Committee notes the frustration among members and the 
public that existing strictures on the process are not always 
enforced. It is certainly true that no amount of procedural 
roadblocks can force an unwilling Congress and/or 
Administration to make sound fiscal decisions or even to resist 
the temptation to circumvent the rules. However, it is possible 
to tighten up the existing process and to make it harder to 
avoid fiscal discipline. In addition, it is vital to establish 
public accountability for the decisions that are made in this 
regard, to ensure that Members and the President are open to 
public scrutiny for their actions.
    Based on those goals, the purposes of this title are to 
close loopholes in the enforcement of budget resolutions, to 
require committees of the House of Representatives to include 
budget compliance statements in reports accompanying all 
legislation, to require committees of the House of 
Representatives to justify the need for waivers of the 
Congressional Budget Act of 1974, and to provide cost estimates 
of conference reports.

Subtitle A--Application of points of order to unreported legislation

    Under the Congressional Budget and Impoundment Control Act 
of 1974, as amended, points of order against legislative 
measures under sections 302, 303, 311 and 401 do not apply to 
any measure that has not been reported by a committee. Current 
law often provides a proponent of legislation with a 
significant incentive to bypass the committee system if that 
legislation contains significant violations of the Budget Act. 
Committee hearings and mark-ups provide the entire House and 
the public the opportunity to review legislation and to force 
it rigorous consideration. The bias in the Budget Actshould not 
be against such deliberative and violation-preventing debate. The 
Committee notes that often major legislation moves to the House floor 
for consideration without having passed through the formal committee 
process. The result is that procedural constraints in the Budget Act 
have been avoided, as has the accountability that accompanies the act 
of waiving the structures of fiscal discipline.
    Also, recent history has shown that while an unreported 
measure may not be subject to the constraint of the Budget Act, 
amendments to that measure are. House consideration of an 
unreported bill, advocated by the majority, often requires the 
Rules Committee to waive the Budget Act against an amendment in 
the nature of a substitute to that bill, advocated by the 
minority. Thus under regular order the budget process 
establishes an inequity between the application of points of 
order to measures of original text and amendments to that base 
text. This inequity is erased by the provisions of H.R. 853.
    Furthermore, applying the Budget Act to unreported 
legislation brings House procedures in line with the Senate. In 
the Senate the provisions of Titles III and IV are already 
applied to unreported bills. It makes little sense to have the 
same rule but to enforce it differently in each House. Under 
current law, this makes the House more dependent on the Senate 
to enforce the budget resolution. Finally, the disparity in the 
treatment of unreported bills in the House and Senate 
contributes to the inefficiency of the current process. It 
makes no sense to agree to a common set of levels between the 
House and the Senate, with or without the President's formal 
input in the process, if the House can unilaterally circumvent 
any budgetary level as it agreed to in a budget resolution. 
H.R. 853 corrects this disparity.
    Numerous proposals have been advanced by Members of both 
parties over the years to close this loophole in the budget 
process. Most recently, the ranking minority Member of the 
Committee on Rules, Representative Moakley introduced H.R. 4343 
on July 29, 1998, to amend sections 303 and 315 of the Budget 
Act to apply points of order to unreported measures in the 
House of Representatives. The language included in this 
subtitle of H.R. 853 is similar to that included in the bill 
introduced by Representative Moakley in the 105th Congress.
    In the Balanced Budget Act of 1997 a new section 315 was 
added to the Budget Act. This new section corrected a sort of 
``double jeopardy'' that had previously existed in the world of 
Budget Act waivers. This new section 315 provided that it is no 
longer necessary to waive the Budget Act when the source of the 
Budget Act violation in the reported bill is eliminated through 
a special rule or unanimous consent request. However, the 
application of this section keys off the words ``as reported'', 
continuing the practice of allowing unreported bills to avoid 
being subject to Budget Act points of order.
    The Committee believes that the change made by H.R. 853 is 
an important step in the ongoing effort of making sure that 
budget constraints are consistently enforced.

Subtitle B--Compliance with budget resolution

    One of the consistent laments that is heard throughout the 
budget process is that Members, and entire committees, do not 
generally maintain enough focus on the constraints of the 
Budget Act. The result is that legislation often moves through 
the committee process and is brought to the Rules Committee 
without having enough attention paid to whether it squares with 
budget restrictions. The following charts breaks down each of 
the specific Budget Act waivers granted by the Rules Committee 
during the 105th, 104th, and 103th Congress by the committee of 
jurisdiction.

    Currently, there exists an informal mechanism within the 
process whereby the Budget Committee provides input to 
legislative committees and the Rules Committee regarding Budget 
Act compliance. The Committee proposes formalizing that process 
by incorporating an additional item--a budget compliance 
report--into committee reports, one that requires committees to 
work with the Budget Committee in assessing whether legislation 
complies with the Budget Act. It is the Committee's view that 
this requirement will add an important new level of 
accountability into the early stages of the legislative 
process. The result should be that more Members and committee 
chairmen are more cognizant of their responsibilities within 
the budget process, and that the outcome will be fewer bills 
headed to the floor with major Budget Act violations.
    The Committee recognizes, however, that it may not always 
be possible for the Budget Committee to provide the Budget 
Compliance Statement in time for filing of a committee report, 
and for that reason H.R. 853 incorporates the reference to 
timely submission of those compliance reports. Nonetheless, the 
Committee intends and expects committees to make their work 
with the Budget Committee an ongoing process to allow for the 
time necessary to have these compliance reports complete. 
Likewise, the Committee intends and expects the Budget 
Committee to make every effort to complete compliance 
statements in a timely and efficient fashion.

Subtitle C--Justification for Budget Act waivers

    Currently the Rules Committee is required, where 
practicable, to provide supporting information to explain the 
object of and reasons for waivers granted in special rules for 
consideration of legislation. One of the fundamental principles 
underlying the Rules Committees' approach to all waivers of 
rules is to force the committees of the House of 
Representatives and sponsors of the legislation to justify why 
they require such waivers.
    One of the frequent problems the Rules Committee confronts 
is the lack of attention often given by other committees to 
adhering to the rules of the House and the Budget Act. Bills 
are drafted, introduced and even often marked up before 
committees check to see whether the bill violates the rules of 
the House or the Budget Act. The presumption should be on 
compliance rather than on a waiver.
    To this end, H.R. 853 proposes that the rules of the House 
be amended to require that any report accompanying a rule from 
the Rules Committee that includes a waiver of sections 302, 
303, 311 or 401 of the Budget Act include the following: a 
description of the waiver, the object of the waiver inthe bill, 
the justification for the waiver submitted to the Rules Committee by 
the committee of jurisdiction and an estimated cost of the provisions 
to which the waiver applies. This approach maximizes the flexibility of 
the Rules Committee, places the burden for justifying the need for the 
waiver on the committees of jurisdiction, and provides greater 
information to the House on the waiver and its implications than what 
is required under current law.
    Furthermore, should the Rules Committee fail to provide 
such information in its report, the rule would be subject to a 
point of order on the floor of the House. The Committee has 
included in this list those points of order relating to the 
timing of legislation within the budget process, allocation 
levels and creation of new direct spending.
    The Committee would also note that some Members of the 
House, from both sides of the aisle, continue to advocate that 
a three-fifths supermajority requirement be placed on the 
ability of the House Rules Committee to waive the Budget Act. 
While the intent of placing these stringent requirements on the 
House is laudable, namely to enforce the budget, the impact of 
these proposals could significantly prevent a majority of the 
House from implementing priority legislative initiatives and 
cripple the inherent ability of the Rules Committee to draft 
and pass rules for the majority.
    The House of Representatives is a majoritarian institution 
and has been since its inception in 1789. As stated by Lewis D. 
Deschler in ``Deschler's Precedents'' (v. 1, p. viii), ``[i]f 
the precedents of the House can be said to have an overriding 
function, it is to enable the Members to govern themselves 
democratically and fairly and at the same time execute the will 
of the majority. The precedents of the House are utilized in 
such a way as to expedite business and protect the minority, 
and at the same time enable the assembly to take action in 
accordance with the views of the majority.'' Requiring a 
supermajority vote to waive violations of the Budget Act would 
undermine this overriding function of the House's 210 years of 
rule and precedent.
    Furthermore, there are serious technical concerns with 
these proposals which have been raised by the Parliamentarians. 
First, with respect to the sections of the Budget Act involved, 
the Rules Committee waived these sections 126 times during the 
105th Congress, 151 times during the 104th Congress and 123 
times during the 103rd Congress. The following charts 
demonstrate the extent to which the Budget Act is waived in the 
House of Representatives.

    Many of these waivers were technical in nature, i.e., not 
resulting in any real budgetary effect. Secondly, under such a 
proposal every time the Rules Committee provides a waiver of 
all points of order for anything--a bill, an amendment or a 
motion--the Committee is in effect waiving all of these 
provisions of the Budget Act. This means that potentially every 
blanket waiver could require a supermajority vote to adopt it 
on the Floor. In contrast to this approach the Committee 
believes that H.R. 853 increases the accountability of the 
Rules Committee and of the House as a whole without undermining 
the ability of a majority of the House to govern. H.R. 853 
provides an alternative approach that still strengthens budget 
enforcement, provides the House with more detailed information 
upon which to cast votes on Budget Act waivers, and preserves 
the prerogative of the majority to advance its agenda.

Subtitle D--CBO scoring of conference reports

    It is often said that Congress does something ``in the dead 
of night'' when a conference committee takes action on 
legislation, the conference report moves quickly through both 
Houses and the President signs it into law, often before the 
budget implications of that legislation are fully understood. 
Members and the public have responded to these situations by 
expressing outrage that better and more complete information 
about the budget impact of bills was not available prior to 
final consideration of a conference agreement. The Committee 
believes that this problem could be addressed by requiring 
Congressional Budget Office (CBO) scoring of conference 
reports.
    Currently, CBO scores House and Senate bills as they move 
through their respective Houses, but not conference agreements. 
Although the Committee is aware that the timing of conference 
negotiations and the speed with which bills often move through 
their final steps in the legislative process make this new 
requirement a challenge for CBO to meet, it is the intent and 
expectation of the Committee that the effort should be made.

             TITLE IV--ACCOUNTABILITY FOR FEDERAL SPENDING

    Accountability is a goal in the budget process that all 
Members, regardless of political stripes, seek, yet there are 
many different approaches to securing it. H.R. 853 seeks to 
enhance existing accountability mechanisms in the Budget Act 
and the rules of the House. It would foster greater oversight 
by committees of the House of Representatives particularly over 
programs that provide directspending and are of an indefinite 
duration and by providing disincentives in the congressional budget 
process for creating new direct spending programs.

Subtitle A--Limitations on direct spending

    The Committee believes that direct spending should be the 
exception, rather than the rule. When committees take the 
extraordinary step of moving spending away from the annual 
appropriations process of the Congress, they should provide a 
justification for that action up front and as early in the 
legislative process as possible. Similarly, the President 
should be required to provide the same justification for any 
direct spending that the Executive Branch proposes in its 
annual budget submissions. To this end, H.R. 853 establishes a 
number of new requirements and procedural mechanisms in the 
Budget Act, Title 31 of the United States Code and House rules.
    First, H.R. 853 repeals the current restrictions on 
mandatory spending in section 401 of the Budget Act, which 
prohibit consideration of budget-related legislation, as 
reported, that is not subject to annual appropriations. In its 
place, H.R. 853 places a limitation on the consideration in the 
House or the Senate of any bill, joint resolution, amendment, 
motion, or conference report that provides direct spending 
authority for a new program that is not limited to a period of 
10 or fewer years. Direct spending is defined in section 
250(c)(8) of the Balanced Budget and Emergency Deficit Control 
Act of 1985, as amended, to be budget authority provided by law 
other than appropriation acts, entitlement authority and the 
food stamp program.
    The report of the Committee on the Budget and this report 
of the Committee on Rules on H.R. 853 both contain the 
following identical language with respect to the application of 
this new section 401 point or order.
            Section 411: Fixed-year authorizations required for new 
                    programs
    This point of order applies only to ``new'' programs. It 
neither applies to expansions in existing programs nor the 
underlying programs that may be subject to amendment. The 
Committee does not intend for the exception for new programs to 
provide a loophole for fundamentally new programs that are 
grafting new direct spending programs into existing programs. 
Therefore, the burden falls on the proponents of a bill or 
amendment that is subject to the point of order to show that it 
does not create a new entitlement.
    In applying this point of order, it is essential to 
determine whether a program is ``new'' or simply a change in an 
existing one. Such a determination is made by assessing the 
qualities and nature of the legislative language, rather than 
any baseline projections.
    A program is new if it meets any of the following three 
criteria:
          It has a fundamental purpose that is distinct from an 
        existing program,
          It has a substantially different method by which a 
        fundamental purpose is carried out or administered, or
          It serves a class of persons or entities distinct 
        from the existing program to which the authorizing 
        language may be appended.
    The Fundamental Purpose.--If a program has a fundamental 
purpose which is distinct from any other program, and does not 
relate to an existing program, then it would be considered new. 
In determining the fundamental purpose of authorizing language, 
the broad scope and the stated purpose of the language are 
indicative, and ancillary purposes merely suggested by the 
language need not be determinative. Authorizing language which 
would amend an existing program to such an extent as to change 
its fundamental purpose would also be considered new. This 
might include broadening a very specific purpose to a more 
general one. Expanding on the fundamental purpose, such as 
offering additional services, does not constitute changing it, 
and hence language which might offer a new benefit, if it is 
related to the fundamental purpose of an existing program would 
not be considered a new program.
    A Substantially Different Method.--Authorizing language 
which may have a similar fundamental purpose as an existing 
program, but contemplates a method of accomplishing that end 
that is not closely similar to the existing program, then that 
authorization would be considered as creating a new program. 
For instance, under the existing Medicare program, expenses for 
prescription drugs are not now provided for in the overall 
benefit for senior Americans. Legislation that would expand the 
basic Medicare benefit to include prescription drugs would 
serve the same fundamental purpose as the existing Medicare 
program because it is a related facet of the health care 
coverage benefit. Were Medicare, on the other hand, to be 
reformed by providing a voucher to Seniors so that they were 
ableto purchase their entire health insurance benefit on the 
private market, the method by which the assistance is provided would be 
substantially different and thus constitute a new program.
    If an existing program has a fundamental purpose which is 
broad in scope and has a general method of achieving that 
purpose, and authorizing language is included in a modification 
or reform of the program which proposes to achieve the same end 
through a related but more specific method, then the 
authorizing language would not be considered to have created a 
new program. The reverse would not be the case, a program which 
has a very specific method of achieving its fundamental purpose 
which would be reformed by providing a related but more general 
method would be considered to be creating a new program.
    A Distinct Class of Persons or Entities.--A program may 
have a fundamental purpose to assist a class. A class may be 
made up of persons or entities, the latter having a broad range 
of possibilities like local governments, states, corporations, 
non-profit groups or schools. A class may be defined as any 
identifiable group that relates to the fundamental purpose of a 
program. If the fundamental purpose seeks to achieve a policy 
goal by benefiting or serving an identifiable group, then that 
group would constitute a class. When authorizing language has 
the same fundamental purpose as an exiting program, and would 
use the same method of achieving that purpose, but would serve 
a wholly new class, then that authorizing language would be 
considered to create a new program. However, authorizing 
language that provides for additional benefits or services to a 
more specific group that is substantially within the class, 
then that would not constitute a new program. Authorizing 
language which provides for a substantially broader class, even 
though wholly including the existing program class, would also 
be considered to create a new program.
    Second, H.R. 853 creates a new mechanism in the rules of 
the House to facilitate amendments to subject new entitlement 
programs to annual discretionary appropriations. Patterned 
after the motion to strike unfunded intergovernmental mandates 
in the Committee of the Whole created in the Unfunded Mandate 
Reform Act of 1995, this new clause of rule XVIII provides a 
new obstacle to the creation of new entitlement programs. This 
privileged amendment may be offered by the Chairman of the 
Committee on the Budget (or his designee) of the Chairman of 
the Committee on Appropriations (or his designee). It is not in 
order for such an amendment to be precluded from consideration 
unless done so by the specific terms of a special order of the 
House. Any such amendment, if offered, shall be debatable for 
twenty minutes equally divided and controlled by the proponent 
of the amendment and a Member opposed and shall not be subject 
to amendment. The reason for limiting the right to offer such 
amendments to the chairman of the Appropriations and Budget 
Committees is two-fold: to ensure that Members with 
institutional interests in curbing the proliferation of 
mandatory spending programs have the opportunity to offer the 
amendments; and to prevent dilatory amendments whose intent is 
to delay legislative deliberations rather than to curb the 
proliferation of mandatory programs.
    In an attempt to shift the balance in favor of creating an 
annually appropriated program as opposed to a mandatory 
spending program, H.R. 853 creates an additional incentive to 
the Appropriations Committee to offer such a privileged 
amendment. If such an amendment is agreed to, the discretionary 
spending limits and allocations to the Appropriations Committee 
for that fiscal year would be held harmless for any legislation 
that offsets a new discretionary program with a designated 
reduction in direct spending.
    H.R. 853 also amends the Rules of the House to establish a 
new point of order under House rule XXI that no new program 
authorization of budget authority may be provided for an 
indefinite period of time. A point of order would lie in the 
House against any bill, joint resolution, amendment or 
conference report that authorized spending for a new program if 
that authorization was not limited to 10 or fewer years. This 
point of order is intended to cover all bills and joint 
resolutions providing new budget authority as defined in 
section 3(2)(c) of the Budget Act. The Committee again believes 
that programs should be periodically reviewed to determine the 
appropriate method of financing for that program within the 
Federal budget.

Subtitle B--Enhanced Congressional oversight responsibilities

    H.R. 853 also establishes a number of new incentives within 
the Budget Act and the Rules of the House to encourage more of 
a systematic review of all Federal programs, projects and 
agencies. Congressional programmatic oversight is an aspect of 
the legislative process that all Members, regardless of 
political affiliation, believe should be improved. In its 1994 
report, the Joint Committee on the Organization of Congress 
stated the following in its recommendations with respect to 
committee oversight agendas and reports:

          These changes will make oversight more regularized 
        systematic, and comprehensive. Better coordination 
        among committees will eliminate duplication while 
        preventing matters from being overlooked. Requiring 
        oversight at least every 10 years assures that nothing 
        falls between the cracks and mitigates against ``crisis 
        oversight.'' Giving priority to permanent programs 
        guarantees oversight of programs not scrutinized 
        regularly as part of the funding process.

    H.R. 853 requires each committee of the House to set out 
within the oversight plans it is required to adopt by February 
15th (under clause 2(d) of rule X) a specific timetable for the 
periodic authorization of all programs within that committee's 
jurisdiction. This timetable must provide for a specific review 
of those laws, programs, and agencies, including those that 
operate under permanent budget authority, that will allow for 
each of these laws, programs and agencies to be reauthorized at 
least once every ten years. Committees are encouraged to 
coordinate their reauthorization activity with the performance 
budgeting requirements set forth under the Government 
Performance and Results Act. The Committee also advises all 
House committees to stagger the schedule for reauthorizing all 
programs, projects or activities within their jurisdictions so 
that their workload is evenly distributed over the 10-year 
period of the review cycle.
    This bill also revises the current requirement in House 
rules that the Committee on Appropriations study on a 
continuing basis those provisions of law that provide permanent 
spending authority and whether these provisions should retain 
such a status to require that the Committee report its findings 
to the House at least once every Congress. In keeping with the 
Committee's fundamental principle that an annually controlled 
spending program is a preferred budgetary status than that of a 
permanent spending program, this rule change further charges 
the Appropriations Committee with this responsibility.
    H.R. 853 also places new requirements on the Budget 
Committee, the President and other House Committees who may 
seek to provide new direct spending for an existing or a new 
federal program, project or activity. Whenever a budget 
resolution includes an allocation to a committee in excess of 
current law, the Budget Committee must include in the report 
accompanying the resolution a justification for not subjecting 
that spending to an annual appropriation. Whenever the 
President submits a budget that specifically calls for direct 
spending, the budget submission must also contain a 
justification for granting this status to this spending. 
Finally, whenever a committee provides an authorization of 
direct spending in a reported bill or joint resolution, it must 
include in the committee report accompanying the measure a 
justification for doing so. However, it should be noted that a 
failure to include such a justification does not give rise to a 
point of order against consideration of the bill or joint 
resolution.
    As stated earlier, the Committee has also sought to 
increase the accountability of committees that draft 
legislation and then request special rules from the Rules 
Committee providing for consideration of that legislation as 
well as for members of the House at large with respect to the 
constraints of the Budget Act. Specifically, Committees will 
not be required in their survey of activity reports to include 
a look-back section that will include a summary and 
justification for each bill and joint resolution reported by 
the committee that did one or more of the following: was 
considered before the adoption of the budget resolution and 
violated section 303(a) of the Budget Act; exceeded a committee 
allocation under section 302(a) of the Budget Act or breached 
an aggregate level under section 311 of the Budget Act; or 
contained provisions in violation of section 401(a) of the 
Budget Act relating to the provision of indefinite spending 
authority.
    Rounding out this required new examination of the status of 
spending authority granted to federal programs, projects and 
activities is a new requirement on the Committees on the Budget 
of the House and Senate. Section 703 of the Budget Act already 
requires the Budget Committees to perform such an evaluation of 
federal programs, however, a report to Congress on these 
evaluations is not a routine function of these committees. H.R. 
853 requires these committees to issue such a report during the 
106th Congress. The Committee would also hope that this report 
would become a regular part of the budget Committees' annual 
oversight of the nature of spending authority and its 
implications on the matters within the jurisdiction of our two 
committees.
    Finally, H.R. 853 also amends section 404 of the Budget Act 
to require the General Accounting Office to revise these 
reports on direct spending programs and activities at least 
once every 5 years. These reports are intended to be an 
analysis of the provisions of law that provide direct spending 
and of whether the GAO recommends changes in this form of 
financing. While the GAO has prepared this report a number of 
times, the Committee believes such an analysis should become a 
regular report to the committees of the House and Senate. The 
Committee also intends and expects the Office of Management and 
Budget and the agencies of the Executive Branch to cooperate 
and assist GAO in its procurement of the information necessary 
to timely preparation and completion of these reports.

Subtitle C--Strengthened accountability

    H.R. 853 would also repeal rule XXIII of the Rules of the 
House of Representatives, commonly referred to as the 
``Gephardt Rule.'' Public Law 96-78, approved on September 29, 
1979, amended the Rules of the House of Representatives by 
adding a new Rule XLIX. With the recodification of the rules of 
the House on the opening day of the 106th Congress, rule XLIX 
was changed to House Rule XXIII. Rule XXIII provides for an 
automatic increase or decrease in the public debt limit by 
authorizing the Enrolling Clerk of the House of Representatives 
to prepare a joint resolution for delivery to the Senate 
containing the debt limit figure approved by the House 
ofRepresentatives by virtue of its adoption of a conference report of a 
concurrent budget resolution.
    Section 432 attempts to restore needed accountability to 
the budget process by requiring a separate vote on an increase 
in the debt limit. Rule XXIII was a transparent attempt to 
avoid the politically sensitive issue of raising the debt 
limit. Unlike many budget-related rules, Rule XXIII is almost 
always implemented. The majority of the last three Congresses 
has specifically sought not to hide behind this rule when it 
was necessary to vote to increase the debt limit. In fact, it 
has only been waived five times since its implementation. Rule 
XXIII was waived in the 98th Congress for consideration of the 
FY 1984 Budget Resolution; in the 101st Congress for 
consideration of the Conference Report on the FY 1991 Budget 
Resolution; in the 103rd Congress for consideration of the 
Conference Report on the FY 1995 Budget Resolution; and in the 
104th Congress for consideration of the FY 1996 and FY 1997 
Budget Resolution. Further, the budget resolution for FY 1996 
(H. Con. Res. 67) included a sense of the House statement in 
section 313 calling for a repeal of Rule XLIX. By repealing 
Rule XXIII, Congress will restore needed oversight over the 
public debt limit to Members of the House of Representatives.
    The Committee would also note that Title I of H.R. 853 
allows the proposed joint resolution on the budget to include 
an increase in the statutory debt. However, the Committee would 
also note that this proposed stripped down and simplified 
budget resolution would allow such an increase in the debt to 
be a highlighted provision of such a resolution. Furthermore, 
under the rules changes adopted at the beginning of the 104th 
Congress, any increase in the debt limit in guaranteed a record 
vote on the floor of the House of Representatives. Clause 10 of 
rule XX states the following:

          The yeas and nays shall be considered as ordered when 
        the Speaker puts the question on passage of a bill or 
        joint resolution, or on adoption of a conference 
        report, making general appropriations, or increasing 
        Federal income tax rates (within the meaning of clause 
        5 of rule XXI), or on final adoption of concurrent 
        resolution on the budget or conference report thereon.

    Thus, a record floor vote on a budget resolution is 
automatically ordered under the rules of the House.

    TITLE V--BUDGETING FOR UNFUNDED LIABILITIES AND OTHER LONG-TERM 
                              OBLIGATIONS

    The federal budget contains a number of insurance-based 
programs but the manner in which we budget for those unique 
needs remains an antiquated one. While the private sector has 
improved its procedures for accrual accounting, the federal 
government continues to utilize static models that do not truly 
reflect the total federal commitments made to many large 
insurance programs. Put simply, Congress and the president do 
not always have an accurate reflection of the long-term 
consequences of their actions. H.R. 853 seeks to address these 
problems.
    Many outside think tanks, congressional support agencies 
and Members of Congress have increasingly expressed concerns 
regarding the long term liabilities of the federal government. 
Specifically, these concerns have centered around how the 
government anticipates the long term accounting and fiscal 
pressures in its current budget process. Currently, the budget 
process only considers the current liabilities (1-5-10 year 
budget windows) of proposed legislative actions. There is a 
growing call for the budget process to develop methods for 
requiring current costs estimates to base projections on 
expected future costs or to move in the direction of accrual-
based budgeting.
    The concern over unfunded liabilities is particularly 
relevant in the federal insurance-based programs. As defined by 
GAO, these include Bank Deposit Insurance, Thrift Deposit 
Insurance, Credit Union Share Insurance, Flood Insurance, Crop 
Insurance, OPIC's Political Risk Insurance, Federal Employees' 
Group Life Insurance, PBGC's Pension Insurance, Service-
Disabled Veterans Service, Veterans Mortgage Life Insurance, 
Vaccine Injury Compensation, Aviation War-Risk Insurance and 
Maritime War-Risk Insurance.
    Moving cost estimates to an accrual basis for pure 
insurance-based programs would require any new legislative 
initiative to pay for the short-and long-term costs up-front. 
Such a new scoring procedure is akin to the Credit Reform Act 
of 1990 which instituted a similar mechanism for the direct 
loan and loan guarantee programs of the federal government. The 
GAO has done an extensive study on looming liabilities (GAO 97-
16) in which they review the pros and cons of these budgeting 
changes for pure insurance based programs.
    Many programs contain looming liabilities which in the 
perfect world would best be deliberated in the context of their 
long term implications. However, as a shift to accrual-based 
budgeting would be a significant change in the budget process 
and even in the way in which Members, the press and the public 
characterize budget debates, it is prudent to distinguish 
between non-insurance-based programs such as Social Security 
and Medicaid and pure insurance-based programs such as crop and 
flood insurance.
    The Committee recognizes that this type of major structural 
change cannot happen overnight. For that reason, Subtitle A 
accommodates a gradual phase-in and phase-out trial period for 
accrual accounting. By providing this flexibility, the 
committee believes Members and the public will be able to 
evaluate whether a permanent shift to accrual accounting will 
be beneficial. The Budget Committee has primary jurisdiction 
over these provisions. For an expanded analysis of the impact 
of these provisions, refer to Part 2 of the committee reports 
on H.R. 853, which was filed by the House Committee on the 
Budget.
    The Committee also believes that it is important for 
Members to have a wider ``snapshot'' picture of the economic 
effects of proposed budget resolutions because the current 
short-term outlook lulls Members into complacency and, often, a 
false sense of security. The provisions of H.R. 853 are almost 
identical to S. 823, legislation introduced in the 104th 
Congress by Senators Simpson (R-WY) and Kerrey (D-NE), both 
members of the Bipartisan Commission on Entitlement and Tax 
Reform. In fact, long-term budgeting was the first and most 
important recommendation endorsed by a majority of the members 
of that commission, commonly referred to as the ``Kerrey 
Commission'' after its chairman.
    When discretionary spending was the largest share of our 
budget, five year planning may have been appropriate. But now 
that the majority of federal spending is direct spending, we 
need to have a larger framework in which to make budgetary 
decisions. H.R. 853 is intended to show the ramifications of 
policy decisions for future generations, and not merely what 
may occur in the next four or five years.

              TITLE VI--BASELINES, BYRD RULE AND LOCK-BOX

    Twenty-five years of an evolving budget process has 
produced many procedural mechanisms that have been true to 
their original objectives, only to have created newly perceived 
procedural dilemmas. This is particularly true in the area of 
baseline budgeting, House-Senate relations, and the 
consideration of appropriation bills.

Subtitle A--The baseline

    For years the problems associated with baseline budgeting 
have been well known to both Members and to the public. The 
baseline is the projection of revenue, spending and deficit or 
surplus levels into future years based on the status quo. These 
projections rest upon technical and economic assumptions that 
assume that the policies consistent with existing law will be 
maintained. As a result the baseline becomes the benchmark for 
assessing policy changes inherent in budget proposals. Both the 
legislative and executive branches develop separate baselines 
for the fulfillment of their respective responsibilities. 
Currently, the baseline is also the foundation for enforcement 
of PAYGO under section 257 of the Balanced Budget and Emergency 
Deficit Control Act of 1985. Prior to 1995, the appropriations 
committees used inflated baselines as benchmarks for comparing 
annual spending levels.
    Some Members think that with rules changes enacted at the 
beginning of the 104th Congress, many of these problems were 
addressed. Clause 3(b)(2) of rule XIII states that any 
committee report on a measure approved by the committee shall 
include, separately set out and clearly identified the 
statement required by Section 308(a) of the Congressional 
Budget Act of 1974, except that an estimate of new budget 
authority shall include, when practicable, a comparison of the 
total estimated funding level for the relevant programs to the 
appropriate levels under current law. These cost estimates show 
aggregate levels as they exist under current law. This has also 
led to committees using the prior year's spending levels as 
comparisons in committee markups. The House Budget Committee 
has a committee rule requiring that all cost estimates utilized 
by the committee during a markup reflect this new approach. 
Since the beginning of the 104th Congress, the Committee 
believes that the provision of this supplementary information 
by committees of the House has assisted Members in their 
deliberations on pending legislation. H.R. 853 seeks to codify 
this House rule in the Budget Act and Title 31 of the United 
States Code.

Subtitle B--The Byrd rule

    For years Members of the House from both parties have been 
frustrated by the Senate's Byrd rule, named after its author 
Senator Robert C. Byrd (D-WV). The Byrd rule states that a 
point of order can be raised on the Senate floor against the 
inclusion of any extraneous material included in a 
reconciliation bill, any amendment thereto or any conference 
report thereon. The Byrd rule originated on October 24, 1985, 
as an amendment offered by Senator Byrd to the Consolidated 
Omnibus Budget Reconciliation Act of 1985. The temporary rule 
was extended and modified six times and made permanent in 1990 
as Section 313 of the Congressional Budget Act of 1974 (2 
U.S.C. 644). Section 313 of the Congressional Budget Act of 
1974, as amended, defines matter to be extraneous in six cases:
          (1) if it does not produce a change in outlays or 
        revenues;
          (2) if it produces an outlay increase or revenue 
        decrease when the instructed committee is not in 
        compliance with its instructions;
          (3) if it is outside the jurisdiction of the 
        committee that submitted the title or provision for 
        inclusion in the reconciliation measure;
          (4) if it produces a change in outlays or revenues 
        which is merely incidental to the non-budgetary 
        components of the provision;
          (5) if it would increase the deficit for a fiscal 
        year beyond those covered by the reconciliation 
        measure; and
          (6) if it recommends changes in Social Security.
    The Byrd rule has increasingly become a poster child for 
the protection of the House's institutional prerogatives in its 
negotiations with the Senate. In 1993, the House of 
Representatives ran into the Byrd rule when 11 provisions were 
stripped from the Omnibus Budget Reconciliation Act of 1993 and 
its conference report by a point of order on the Senate floor. 
In 1995, the House of Representatives again ran into the Byrd 
rule when 50 provisions (primarily dealing with welfare reform) 
were stripped from the Balanced Budget Act of 1995 and its 
conference report on the Senate floor. The Personal 
Responsibility and Work Opportunity Reconciliation Act of 1996 
saw 24 provisions stripped by the Byrd rule. In 1997 the 
Balanced Budget Act had 4 provisions struck by a point of order 
and the Taxpayer Relief Act had one provision struck.
    Overall the Byrd rule has been applied to 10 reconciliation 
measures considered by the Senate from 1985 through 1997. On 
the whole, actions under the Byrd rule have occurred more 
frequently in recent years and opponents of extraneous matter 
in reconciliation bills have used the rule successfully. In 36 
of the 47 actions involving the Byrd rule, opponents were able 
to strike extraneous matter from legislation (17 cases) or bar 
the consideration of extraneous amendments (19 cases) by 
raising points of order. Eight of 34 motions to waive the Byrd 
rule, in order to retain or add extraneous matter, were 
successful.
    H.R. 853 is patterned after a bill introduced by Rep. 
Martin Sabo (D-MN) in the 103rd Congress (while he was chairman 
of the House Budget Committee). In an attempt to reassert the 
House's prerogatives in conferencing with the Senate, H.R. 853 
limits the application of the Byrd rule to only apply to the 
initial consideration of a reconciliation bill or any amendment 
thereto. Consequently, the provisions of the Byrd rule would 
not apply to a conference report on a budget reconciliation 
bill.
    Four major reasons have been advanced for eliminating the 
application of the Byrd rule to conference reports. First, it 
will remove an obstacle to enacting policies that are often 
critical to achieving savings required by the budget 
resolution. Second, it removes a source of leverage that the 
Senate has during negotiations on conference reports. Third, it 
will eliminate a source of enormous power for unelected 
congressional staff. Fourth, it will eliminate a procedure that 
leads to poorly designed policies and awkward drafting. H.R. 
853 achieves these objectives through this slight modification 
to section 313 of the Budget Act.

Subtitle C--Spending Accountability Lock-box

    Proposals to capture savings made during consideration of 
appropriations bills and credit them toward spending or deficit 
reduction--commonly known as Lock-box proposals--have been 
offered repeatedly in recent congresses. The various proposals, 
although differing in their approach, all seek to ensure that 
reductions in spending achieved through the legislative process 
are used to lower overall spending and that the spending 
``saved'' is not allocated to other programs. Many members have 
become increasingly concerned about this issue in recent years, 
when funds ``cut'' from appropriations bill through floor 
amendments were subsequently ``spent'' on other projects 
(particularly through the conference committee process), rather 
than being used to lower spending.
    H.R. 853, established a procedure to ensure that savings 
from reductions in spending in Appropriations measures during 
House and Senate Floor consideration will be captured for 
spending reduction. This legislation amends the Congressional 
Budget Act of 1974 to establish a spending accountability Lock-
box process and to provide for the downward adjustment of the 
discretionary spending caps.
    H.R. 853 amends Title III of the Congressional Budget Act 
of 1974 to add a new Section 320 entitled the ``Spending 
Accountability Lock-Box.'' This Section establishes, in the 
House and Senate Committees on the Budget a ``Spending 
Accountability Lock-box Ledger,'' to be divided into entries 
corresponding to each of the thirteen subcommittees of the 
Committees on Appropriations. Each entry shall consist of three 
parts: the ``House Lock-box Balance''; the ``Senate Lock-box 
Balance''; and the ``Joint House-Senate Lock-box Balance''. No 
negative amounts shall be placed into these entries.
    Each entry for the House and Senate would consist of 
amounts credited to it by the chairmen of the Committee on the 
Budget of the House and Senate upon the engrossment of any 
appropriations bill or resolution by the House and by the 
Senate. The amount to be credited to the balance of the House 
involved would equal the net amounts of reductions in budget 
authority and outlays resulting from amendments agreed to by 
that House, as calculated by the respective chairman of the 
Committee on the Budget. A Member may state (orally on the 
House or Senate floor) the portion of such reduction that would 
be credited to the House Lock-Box Balance or used to offset an 
increase in new budgetauthority in any other account or allowed 
to remain within the applicable allocation or any combination thereof.
    In other words, Members have the ability designate savings 
to be placed in the lock-box, to be spent on another program or 
to be made available for the Members of the Appropriations 
Committee to reallocate elsewhere in that bill as the 
legislative process moves forward. If no such statement is made 
by the member, the amount of the reduction in budget authority 
would be credited to the applicable Lock-box balance, should 
that amendment be adopted. This places the bias in the process 
against spending the cut funds.
    H.R. 853 provides that the chairmen of the Committee on the 
Budget of the House and Senate shall credit to the applicable 
entry balance for each House amounts of new budget authority 
and outlays equal to the net amounts of reductions resulting 
from amendments designated for the applicable lock-box and 
agreed to by each House to that bill. This credit shall be made 
upon the engrossment of any appropriation bill by the House and 
by the Senate.
    In addition, the bill provides that the chairmen of the 
Committee on the Budget of the House and Senate shall credit to 
the applicable Joint-House Senate Lock-box Balance the amounts 
of new budget authority and outlays equal to one half the sum 
of the amounts in the House Lock-box Balance and the amounts in 
the Senate Lock-box Balance. This credit shall be made upon 
engrossment of any appropriation bill by the Senate. In other 
words, the amount of savings credited to the Joint House-Senate 
Lock-box Balance for any appropriation bill shall be an amount 
that splits the difference between savings agreed to through 
cutting amendments by the House and savings agreed to through 
cutting amendments by the Senate.
    The bill defines ``appropriation bill'' to include any 
general or special appropriations bill, and any bill or joint 
resolution making supplemental, deficiency, or continuing 
appropriations through the end of a fiscal year.
    To help ensure that members and the public are aware of 
actions taken through the amendment process on each 
appropriation bill in the House, H.R. 853 provides that there 
shall be a running tally kept of the amendments adopted by the 
House reflecting increases and decreases of budget authority in 
the bill as reported by the Appropriations Committee. This 
provision is designed to inform members about the level of 
savings for the Lock-box accomplished by each amendment--and to 
ensure that people understand that amendments designed to add 
back money into a spending bill would be reducing the total 
savings that could be credited to the Spending Accountability 
Lock-box.
    To guarantee that savings credited to the Lock-box are 
truly ``locked in'' for spending reduction, the H.R. 853 
provides for the downward adjustment of the 302(a) allocations 
for the House and the Senate, upon engrossment of any 
amendments to any appropriation bill by the Senate. The 302(a) 
allocation will be reduced by the amount credited to the Joint 
House-Senate Lock-box for that bill, as calculated by the 
chairmen of the Committee on the Budget of the House and 
Senate. The revised levels of budget authority and outlays 
shall be submitted to each House by the Chairman of the 
Committee on the Budget of that House and such revisions shall 
be printed in the Congressional Record. When this occurs, the 
chairmen of the Committee on the Appropriations of the House 
and Senate shall make downward adjustments in the most recent 
suballocations (302)(b)'s) to the appropriate subcommittees to 
reflect the new, lower 302(a) allocations. These revised 
suballocations shall be submitted to each House by the Chairman 
of the Committee on Appropriations for that House and shall be 
printed in the Congressional Record.
    By reducing the 302(a) allocations before the House-Senate 
conference on any appropriation bill, this provision locks in 
savings for spending or deficit reduction and ensures that 
conferees cannot spend money set aside for such reduction. This 
provision also attempts to ensure that savings cannot be 
syphoned off from one appropriations bill to be spent in 
another. The revisions in the 302(b) suballocations that follow 
from the revised 302(a) allocations are done in a formulaic 
manner to reflect mathematical consistency.
    H.R. 853 amends Section 308(b)(1) of the Congressional 
Budget Act of 1974 to require that reports made under that 
Section include an up-to-date tabulation of the amounts 
contained in the Spending Accountability Lock-box Account and 
each entry.
    The bill further provides for a downward adjustment in the 
discretionary spending limit for new budget authority set forth 
in section 251(c) of the Balanced Budget and Emergency Deficit 
Control Act of 1985 by the amount of the adjustment to the 
302(a) allocation. The discretionary spending limit for outlays 
shall be similarly adjusted. These adjustments shall be based 
on the levels set forth in the final regular appropriation bill 
for that fiscal year or joint resolution making continuing 
appropriations through the end of that fiscal year. This final 
appropriation measure is required to contain a statement of law 
that sets forth the fiscal year (or years) and the amount of 
new budget authority and outlays for which and by which the 
discretionary spending limits will be reduced by the Director 
of the Office of Management and Budget. This statement is 
intended to reflect the sums of the Joint House-Senate Lock-box 
Balances for that fiscal year. As this statement of law will be 
included in an appropriation measure and the content of this 
statement will include provisions within the jurisdiction of 
the Committeeon the Budget, the point of order under Section 
306 in the House and under Section 904(c) in the Senate of the 
Congressional Budget Act of 1974 shall not apply to this final bill 
required to carry such a provision. Finally, these adjustments shall be 
reflected in the reports from the Office of Management and Budget under 
sections 254(f) and 254(g) of the Balanced Budget and Emergency Deficit 
Control Act of 1985.

Subtitle D--Automatic continuing resolution

    The Committee recognizes and shares the concern of many 
Americans and members regarding the annual ``game of 
legislative chicken'' that occurs surrounding the end of the 
fiscal year. Although the threat of a government shutdown--at 
least of temporary shutdowns of certain agencies and programs--
is viewed by some as a necessary incentive to bring conclusion 
to the appropriations process, recent experiences with 
prolonged shutdowns have led many to seek change.
    The most dramatic of recent events was the extended 
shutdown during the winter of 1995-1996. Despite the fact that 
the Congress did pass and submit to the President legislation 
that could have averted the closures of many federal agencies, 
the President's vetoes left a gap in funding that resulted in 
hardship and anxiety for many families. The public responded 
with a call for Congress to revise the process by which the 
budgetary endgames are concluded.
    H.R. 853 responds to that call. Section 641 of the 
legislation establishes an automatic continuing resolution--a 
fail-safe mechanism to fund programs, projects and activities 
of the government that are subject to annual appropriations at 
the prior year's level of spending until new appropriations 
bills are enacted. This provision is modeled after legislation 
introduced persistently by Representative George Gekas (R-PA).
    The Committee views this provision as offering the 
necessary incentives for Congress and the President to reach 
agreement on the annual spending bills each year, while 
offering some comfort to the public that failure to achieve 
agreement will not disrupt the proceedings of the government. 
By relying on prior year's funding levels, H.R. 853 encourages 
those seeking to spend more for a program or less for a 
program, or seeking to change the mix of programs, to seek to 
avoid the automatic continuing resolution. The Committee 
rejects the notion that reliance on prior year's levels will 
bias the process toward the status quo. Given the lengthy and 
often heated debates that accompany consideration of annual 
spending bills, and the significant differences that result 
from one year to the next, the Committee concludes that the 
fail-safe option will not be overly attractive to most people.
    The Committee is aware of the concerns expressed by Members 
of the Appropriations Committee with regard to further 
complicating the important annual work that they do. The 
Committee intends and expects that Members and the 
Administration will continue to work in good faith toward 
achieving timely enactment of annual spending legislation. In 
developing this legislation, the Committee explored competing 
proposals for percentage reductions from prior year's levels, 
to make the automatic continuing resolution more ``painful'' in 
terms of cutting programs. The Committee rejected this 
approach, however, because it did not want to develop 
incentives against the annual spending process.
    Section 641 of H.R. 853 should be viewed in context of the 
reforms made elsewhere in the bill specifically establishment 
of a joint budget resolution, which proposes to bring the 
President into the process at the beginning. With an automatic 
continuing resolution in place should the appropriations 
process break down, the President will know that failing to 
achieve agreement early in the process cannot yield him the 
advantage of threatening to shut down the government at the end 
of the process. This is an important leveling of the playing 
field with respect to leverage in the negotiations and 
tradeoffs of implementing the federal budget.
    The Committee also recognizes that many believe that 
breakdowns in the appropriations process at the end of the 
fiscal year stem from the Appropriations Committee being 
granted an ``initial discretionary spending allocation that is 
too low.'' The recent history of budget resolutions in the last 
two congresses would seem to indicate that the discretionary 
spending allocation was too low for the President not for the 
Congress. At the end of the fiscal year when omnibus 
appropriation measures often contain levels of discretionary 
spending in excess of the committee's allocation, this is 
usually in sharp contrast to the levels utilized during the 
initial individual consideration of these measures by the House 
and Senate. The House and Senate adopted bills within the 
discretionary spending allocation and then the conference 
committees on these bills, after negotiations with the White 
House, would recommend conference reports that exceed the 
allocation in the budget resolution. The Committee notes that 
requiring the Congress and the President to negotiate an 
overall discretionary spending level, in the context of a joint 
budget resolution, which would result in an agreed upon 
allocation of discretionary spending to the Appropriations 
Committee, would force many of these end of the year closed-
door spending sprees out into the open six months earlier in 
the legislative process.
    H.R. 853 is designed to force more Executive and 
Legislative Branch negotiations earlier in the budget year to 
create less such negotiations at the end of the budget year. 
Furthermore, this bill will actually move the role of the 
budget resolution back to its original intent--a mechanism for 
reachingcongressional agreement on the aggregate levels of 
spending. It will also let the appropriations process return to its 
original intent--a debate over the distribution of resources among 
individually competing government programs.
    The Committee agrees that the appropriations process should 
not be used as a surrogate for macro federal budget 
negotiations but should be focused on the micro elements of 
distributing limited fiscal resources among a set number of 
government programs, projects and activities. The Committee 
believes that the combination of the joint budget resolution 
and the automatic continuing resolution at the prior year's 
spending levels achieves this objective.
    The Committee has recommended a revision to section 641 of 
the bill to remove from calculation of prior year's funding 
levels for purposes of the automatic continuing resolution any 
one-time increase to certain accounts that occur in response to 
emergencies.
    Section 641 reinforces that fact that nothing in the 
automatic continuing resolution procedures shall be constructed 
to impact upon the government's ongoing obligations with 
respect to important entitlement programs such as social 
security, medicare and medicaid.

              TITLE VII--BUDGETING IN AN ERA OF SURPLUSES

    The PAYGO provisions of current law were first enacted in 
the Budget Enforcement Act 1990, at a time when deficits soared 
and the Congress and the President agreed that the process 
needed to include tougher measures to enforce fiscal 
discipline, particularly with respect to direct spending and 
revenue measures. The resulting procedures, which rely on a 
scorecard and the sequester process, have resulted in a debate 
of experience with the idea of ``paying as you go'' for tax 
cuts and new mandatory spending.
    In the current budget environment, however, the era of 
budget surpluses demands a review of the existing procedures. 
The Committee believes it is necessary to modify and update 
PAYGO to reflect the changing times, without abandoning the 
structuring that are in place to prevent future deficits. It is 
the Committee's view that this minor process change offers the 
necessary flexibility for future policy decisions with respect 
to either tax cuts or new mandatory spending,
    Title VII, therefore, establishes the procedures necessary 
to turn off PAYGO when there is an on-budget surplus. An on-
budget surplus is defined as the amount by which receipts 
exceed outlays for all spending and receipt accounts that are 
designated as on-budget, and specifically excludes the Social 
Security Tax Fund.
    First, title VII restate much of the PAYGO requirements in 
section 252 of the Balanced Budget and Emergency Deficit 
Control Act of 1985 to ensure there is no sequester if there is 
an on-budget surplus, to require additional offsets if the on-
budget surplus declines, and to clarify that the costs of all 
direct spending or receipts legislation are included in 
sequestration calculations.
    The purpose of PAYGO set forth in section 252(a) of the 
Deficit Control Act is modified from that of assuring that 
direct spending and receipts legislation do not increase the 
deficit to that of assuring that the costs of such legislation 
do not exceed the on-budget deficit. Further more, the 
calculation of any sequester under section 252(b) of the 
Deficit Control Act is modified to reduce the amount of any 
sequester by OMB, which is determined by the net costs of all 
PAYGO legislation for that fiscal year, by the amount of OMB's 
estimate of the on-budget surplus. In other words, if the 
estimated on-budget surplus is larger than the net cost of all 
PAYGO legislation for that year there is no sequester. If the 
on-budget surplus is less than the costs of the legislation, 
then the amount of the sequester is reduced by the difference 
between the costs of the legislation and the amount of the 
PAYGO surplus.
    To take a simple example, there would be no sequester, if, 
for a given fiscal year, legislation was enacted providing for 
a $2 billion tax cut and a $1 billion entitlement expansion if 
the on-budget surplus is at least $3 billion in that same 
fiscal year (assuming no other direct spending or receipts 
legislation have been enacted). It is important to note that 
section 701 does not require the Congress to use the on-budget 
surplus to offset tax cuts. If Congress does not pass 
legislation that reduces revenues by the amount of the surplus, 
then the surplus would be implicitly used to reduce the Federal 
debt. Similarly, the Congress could use the surplus to offset 
an entitlement expansion.
    Secondly, Title VII also specifies several assumptions for 
OMB and CBO to use in estimating the on-budget surplus, if any, 
in the sequester reports. First of all, these estimates are to 
exclude any savings or costs associated with PAYGO legislation 
because the budgetary effects of such legislation is already 
counted in the sequester calculation required under section 
252(b)(2) of the Deficit Control Act. Secondly, the estimates 
of the on-budget surplus are to assume the enacted level of 
discretionary appropriations and if no such appropriations were 
enacted for the budget year, an amount from the prior year 
adjusted for inflation.
    OMB is also required to re-estimate its projection of the 
on-budget deficit in its Preview Report which is submitted with 
the President's budget submission in January or early February. 
It is on the basis of this projection of the on-budget surplus 
that OMB calculates the amount of any sequester. The 
significance of this update is that sequestration is not held 
harmless in any change in the on-budget surplus to the extent 
that such a surplus is being used to offset the costs of 
enacted PAYGO legislation.
    Consequently, it may be necessary to realize additional 
savings in order to prevent a PAYGO sequester if legislation is 
enacted reducing revenue or increasing direct spending that is 
offset with a current estimate of the surplus which is 
subsequently revised downward. To take another example, assume 
a tax bill is passed that reduces revenues by $20 billion in 
each of five fiscal years. No offsets were initially necessary 
because the on-budget surplus exceeded the revenue loss from 
the tax cuts in each year. In the final year, however, the 
estimated on-budget surplus drops to zero. Assuming no other 
legislation has been enacted for that fiscal year, Congress and 
the Administration would have to enact $20 billion in offsets 
to avoid triggering a sequester. Thus, the fiscal discipline of 
PAYGO and the protection of Social Security are maintained by 
H.R. 853.
    H.R. 853 also clarifies that the estimates of the on-budget 
surplus do not include the outlays of the Social Security trust 
funds (both retirement and disability) or any other off-budget 
entities. By excluding these cash flows, these PAYGO changes 
will have no bearing on the amounts credited to the Social 
Security trust funds or the actuarial status of these funds.
    Finally, H.R. 853 extends to the House a Senate expedited 
procedure for considering reconciliation legislation designed 
to preempt any PAYGO sequester. Under this procedure, each 
standing committee can submit to the Budget Committee of its 
House legislative alternatives to avoid such a sequester. After 
these standing committees have submitted such a report and not 
later than October 15, the House and Senate may pass a simple 
resolution instructing the committees to submit legislation 
offsetting at least part of the sequester. The standing 
committees are then required to report their recommendations to 
the Committee on the Budget, which shall report the 
recommendations in the form of a reconciliation bill to its 
House.

             Matters Required Under the Rules of the House


                             COMMITTEE VOTE

    Clause 2(l)(2)(B) of rule XI requires, with respect to each 
record vote on a motion to report any measure or matter of a 
public character, and on any amendment offered to the measure 
or matter, each committee report to include the total number of 
votes cast for an against, and the names of those members 
voting for and against.

Rules Committee Record Vote No. 47

    Date: June 23, 1999.
    Measure: H.R. 853, the Comprehensive Budget Process Reform 
Act of 1999.
    Motion By: Mr. Moakley.
    Summary of Motion: To report H.R. 853 adversely.
    Results: Defeated 2 to 8.
    Vote By Member: Goss--Nay; Linder--Nay; Pryce--Nay; 
Hastings (WA)--Nay; Myrick--Nay; Sessions--Nay; Reynolds--Nays; 
Moakley--Yea; Frost--Yea; Dreier--Nay.

                        Committee Cost Estimate

    Clause 2(l)(3)(B) of rule XI requires each committee report 
that accompanies a measure providing new budget authority, new 
spending authority, or new credit authority or changing 
revenues or tax expenditures to contain a cost estimate, as 
required by section 308(a)(1) of the Congressional Budget Act 
of 1974, as amended, and, where practicable with respect to 
estimates of new budget authority, a comparison of the total 
estimated funding level for the relevant program (or programs) 
to the appropriate levels under current law.
    Clause 7(a) of rule XIII requires committees to include 
their own cost estimates in certain committee reports, which 
include, when practicable, a comparison of the total estimated 
funding level for the relevant program (or programs) with the 
appropriate levels under current law.
    The Committee has reviewed the cost estimate for this 
legislation provided by the Congressional Budget Office (CBO) 
and adopts that estimate as its own. Nevertheless, the 
Committee wishes to reinforce the explanation CBO provided for 
its conclusion regarding the $566 billion in direct spending 
for fiscal year 2000.
    CBO is required to asses direct spending implications of 
legislation based on a definition of direct spending as budget 
authority provided by law other than appropriation acts. The 
automatic continuing resolution envisioned by section 641 of 
H.R. 853 is not, strictly speaking, an appropriation act, and 
therefore the spending that could result from it would be 
considered to be direct spending for the purpose of scoring by 
CBO. However, the Committee notes that this is an anomaly 
caused by thenecessities of a strict definition. In fact, 
spending resulting from the automatic continuing resolution would occur 
only if enactment of regular appropriations bills did not occur prior 
to the start of the fiscal year. this spending would in effect be 
discretionary spending--spending subject to appropriation at the prior 
year's levels.

                 Congressional Budget Office Estimates

    Clause 2(1)(3)(C) of rule XI requires each committee to 
include a cost estimate prepared by the Director of the 
Congressional Budget Office, pursuant to section 403 of the 
Congressional Budget Act of 1974, if the cost estimate is 
timely submitted. The following is the CBO cost estimate as 
required:

                                     U.S. Congress,
                                Congressional Budget Office
                                     Washington, DC, June 24, 1999.
Hon. David Dreier,
Chairman, Committee on Rules,
House of Representatives, Washington, DC.
    Dear Mr. Chairman. The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 853, the 
Comprehensive Budget Process Reform Act of 1999.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Mary B. 
Maginniss, James R. Horney, and Priscilla M. Aycock.
            Sincerely,
                                          Barry B. Anderson
                                    (For Dan L. Crippen, Director).
    Enclosure.

H.R. 853--Comprehensive Budget Process Reform Act of 1999

    Summary: H.R. 853 would make a number of changes to the 
process used to develop, analyze, and control the federal 
budget. Only one provision of the bill--the automatic 
continuing resolution--would affect direct spending. CBO 
estimates that the administrative costs of implementing the 
proposed changes in the budget process would largely affect 
discretionary programs and would total about $2 million 
annually, assuming appropriation of the necessary amounts. The 
budgetary procedures established by the bill could further 
alter budgetary outcomes, but any additional changes in 
spending or receipts would depend on future legislation.
    To avoid future government shutdowns, the bill would put in 
place an automatic continuing resolution beginning in fiscal 
year 2000 that would take effect if the Congress and the 
President fail to agree on regular or temporary appropriation 
bills by October 1 of each fiscal year. The appropriation for 
each project or activity would be the lower of the previous 
year's appropriated level or the annualized level provided in 
the most recent continuing resolution if the regular bill for 
that year did not become law. By providing an automatic funding 
source for 2000 that would take effect without further 
legislative action, H.R. 853 would provide direct spending 
authority, and pay-as-you-go procedures would apply to the 
bill. CBO estimates that enacting H.R. 853 would provide budget 
authority of about $566 billion in 2000, resulting in outlays 
of $338 billion in 2000 and $571 billion over the 2000-2004 
period. By itself, the bill would not provide any new funding 
for 2001 or beyond.
    H.R. 853 contains no intergovernmental mandates as defined 
in the Unfunded Mandates Reform Act (UMRA) and would impose no 
costs on the budgets of state, local, or tribal governments.
    Description of the bill's major provisions: H.R. 853 would 
change the budget process by:
          Converting the budget resolution into a measure that 
        would become law;
          Creating a reserve fund for emergency spending;
          Establishing new requirements for the review and 
        reauthorization of federal programs;
          Shifting the budgeting for federal insurance programs 
        from a cash to an accrual basis;
          Providing for automatic continuing appropriations;
          Modifying pay-as-you-go rules to permit a tax cut or 
        new direct spending up to the level of projected on-
        budget surpluses;
          Establishing a lock-box that would allow reductions 
        in total discretionary spending if an individual 
        appropriation bill is amended to reduce spending; and
          Requiring additional reporting on long-term budgetary 
        trends.
    Estimated cost to the Federal government: The estimated 
budgetary impact of H.R. 853 is shown in the following table. 
For the purposes of this estimate, CBO assumes the bill will be 
enacted by the end of fiscal year 1999. The costs of this 
legislation fall within multiple budget functions.

Basis of estimate

            Direct spending
    H.R. 853 would provide funding for fiscal year 2000 for 
projects and activities funded in 1999 appropriation acts. The 
appropriation provided for each project or activity would be 
the amount sufficient to continue funding for that project and 
activity at the level of operations provided in 1999 
appropriation acts. Upon enactment of an applicable regular 
appropriation bill or a continuing resolution for 2000, the 
appropriation for a project or activity provided by H.R. 853 
would no longer be available.

----------------------------------------------------------------------------------------------------------------
                                                                    By fiscal year, in millions of dollars--
                                                               -------------------------------------------------
                                                                  2000      2001      2002      2003      2004
----------------------------------------------------------------------------------------------------------------
                                           CHANGES IN DIRECT SPENDING

Estimated budget authority....................................       566         0         0         0         0
Estimated outlays \1\.........................................       338       131        60        30        12

                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Authorization level
    Specified.................................................         1         1         1         1         1
    Estimated.................................................         1         1         1         1         1
                                                               -------------------------------------------------
      Total...................................................         2         2         2         2         2
Estimated Outlays.............................................         1         2         2         2         2
----------------------------------------------------------------------------------------------------------------
\1\ Outlays include amounts for transportation programs that are controlled by annual obligation limitations set
  in appropriation acts. Such limitations are not considered budget authority.

    Because scorekeeping guidelines adopted by the Congress and 
the Administration require that estimates of a bill not take 
into account possible future legislation, and no regular 
appropriation bills or continuing resolution for 2000 have been 
enacted, CBO estimates the effect that H.R. 853 would have if 
no appropriation bills providing funding for 2000 are enacted. 
In addition, though H.R. 853 would provide funding for 
discretionary programs, budget authority provided by law other 
than appropriation acts is defined as direct spending for 
purposes of budget enforcement. (If the same provisions were 
enacted in an appropriation bill, the resulting spending would 
be considered discretionary.)
    CBO estimates that continuing projects and activities 
funded in 1999 appropriations acts would require new budget 
authority of about $566 billion in 2000. (This figure does not 
include almost $10 billion already enacted as advance 
appropriations for 2000.) CBO estimates that the new budget 
authority for 2000 would result in outlays of $338 billion in 
2000 and about $571 billion over the 2000-2004 period.
    H.R. 853 also would establish an automatic continuing 
resolution at the previous year's level in the absence of 
regular appropriations for a given year. Because the 
appropriations for 2001 (and beyond) provided by H.R. 853 are 
contingent on future appropriation bills, H.R. 853 by itself 
would not provide any new funding for 2001 or any subsequent 
years. Under the provisions of H.R. 853, however, enactment of 
an appropriation bill for a given year would trigger 
appropriations for the following year to continue the projects 
and activities funded for the preceding fiscal year in the 
appropriation acts.
            Spending subject to appropriation
    Title V would change the budgetary treatment of federal 
insurance from a cash to an accrual basis. To allow the Office 
of Management and Budget (OMB), CBO, and the various agencies 
with operating responsibilities for insurance programs 
sufficient time to develop, test, and revise the models needed 
to implement the change, the bill would provide a lengthy 
transition, delaying full implementation until fiscal year 
2006. H.R. 853 would authorize the appropriation of $600,000 
for each fiscal year 2000 through 2005 for OMB and the 11 
agencies responsible for administering the insurance programs 
affected by title V.
    In addition, the bill would impose other new requirements 
on OMB and on Congressional staff, including the General 
Accounting Office, CBO, the budget committees, and the 
appropriations committees. CBO estimates these costs would 
total about $1 million annually, assuming appropriation of the 
necessary amounts.
    Pay-as-you-go considerations: The Balanced Budget and 
Emergency Deficit Control Act sets up pay-as-you-go procedures 
for legislation affecting direct spending or receipts. The net 
changes in outlays that are subject to pay-as-you-go procedures 
are shown in the following table. The bill would not affect 
governmental receipts.

----------------------------------------------------------------------------------------------------------------
         By fiscal year, in billions of dollars--             1999     2000     2001     2002     2003     2004
----------------------------------------------------------------------------------------------------------------
Changes in outlays........................................        0      338      131       60       30       12
Changes in receipts.......................................                     Not applicable
----------------------------------------------------------------------------------------------------------------

    Intergovernmental and private-sector impact: H.R. 853 
contains no intergovernmental mandates as defined in UMRA and 
would impose no costs on the budgets of state, local, or tribal 
governments.
    Previous CBO estimate: On June 23, 1999, CBO prepared a 
cost estimate for H.R. 853, as ordered reported by the House 
Committee on the Budget on June 17, 1999. The Rules Committee 
deleted procedures in title II allowing emergency spending in 
excess of amounts in the proposed reserve fund.
    Estimate prepared by: Mary B. Maginniss; James R. Horney; 
Priscilla M. Aycock.
    Estimate approved by: Paul N. Van de Water, Assistant 
Director for Budget Analysis.

                        Constitutional Authority

    Clause 2(l)(4) of rule XI requires each committee report on 
a bill or joint resolution of a public character to include a 
statement citing the specific powers granted to the Congress in 
the Constitution to enact the law proposed by the bill or joint 
resolution. The Committee cites Article 1, Section 5, paragraph 
2 which grants each House of Congress the authority to 
determine the rules of its proceedings.

                            Federal Mandates

    Section 423 of the Congressional Budget Act of 1974 
requires the report of any committee on a bill or joint 
resolution that includes any Federal mandate to include 
specific information about such mandates. The Committee states 
that H.R. 853 does not include any Federal mandate.

                        Preemption Clarification

    Section 423 of the Congressional Budget Act of 1974 
requires the report of any committee on a bill or joint 
resolution to include a committee statement on the extent to 
which the bill or joint resolution is intended to preempt state 
or local law. The Committee states that H.R. 853 is not 
intended to preempt any state or local law.

                           Oversight Findings

    Clause 2(l)(3)(A) of rule XI requires each committee report 
to contain oversight findings and recommendations reuired 
pursuant to clause 2(b)(1) of rule X. Clause 2(b)(1) of rule X 
calls on each standing committee, other than the Committees on 
Appropriations and Budget, to review and study the 
effectiveness of laws and other matters within its 
jurisdiction. The oversight findings and recommendations of the 
Committee on Rules are reflected in the body of this report.
    Under clause 3(i) of rule X the Committee on Rules has the 
function of reviewing and studying, on a continuing basis, the 
congressional budget process and to report its findings and 
recommendations to the House from time to time. Under this 
authority the Committee recommends the passage of H.R. 853 as 
means to improve the effectiveness of the congressional budget 
process.

 Oversight findings and Recommendations of the Committee on Government 
                          Reform and Oversight

    Clause 2(l)(3)(D) of rule XI requires each committee report 
to contain a summary of the oversight findings and 
recommendations made by the Government Reform and Oversight 
Committee pursuant to clause 4(c)(2) of rule X, whenever such 
findings have been timely submitted.
    The Committee has received no such findings or 
recommendations.

                           Comparative Print

    Clauses 3(e) (1) and (2) of rule XIII require each 
committee report on a bill or joint resolution proposing to 
repeal or amend a statute or part of a statute to include the 
text of the statute or part that is proposed to be repealed and 
a comparative print showing the changes proposed to the 
statute.
    Clause 4(d) of rule XI requires that, whenever the 
Committee on Rules reports a resolution amending or repealing 
the Rules of the House of Representatives, the accompanying 
report must contain a comparative print showing the changes in 
existing rules proposed to be made by the resolution.
    H.R. 853, as amended, makes the following changes in 
existing law and the rules of the House.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

        CONGRESSIONAL BUDGET AND IMPOUNDMENT CONTROL ACT OF 1974


                    SHORT TITLES; TABLE OF CONTENTS

  Section 1. (a) Short Titles.--This Act may be cited as the 
``Congressional Budget and Impoundment Control Act of 1974''. 
Titles I through IX may be cited as the ``Congressional Budget 
Act of 1974''. Parts A and B of title X may be cited as the 
``Impoundment Control Act of 1974''. Part C of title X may be 
cited as the ``Line Item Veto Act of 1996''.
  (b) Table of Contents.--

Sec. 1. Short titles; table of contents.
     * * * * * * *

                 TITLE III--CONGRESSIONAL BUDGET PROCESS

Sec. 300. Timetable.
Sec. 301. Annual [adoption of concurrent resolution] joint resolutions 
          on the budget.
Sec. 302. Committee allocations.
[Sec. 303. Concurrent resolution on the budget must be adopted before 
          budget-related legislation is considered.]
Sec. 303. Consideration of budget-related legislation before budget 
          becomes law.
Sec. 304. Permissible revisions of [concurrent] budget resolutions [on 
          the budget].
Sec. 305. Procedures relating to consideration of [concurrent] joint 
          resolutions on the budget.
     * * * * * * *
Sec. 316. Expedited procedures upon veto of joint resolution on the 
          budget.
Sec. 317. Emergencies.
Sec. 318. Spending accountability lock-box ledger.

      TITLE IV--ADDITIONAL PROVISIONS TO IMPROVE FISCAL PROCEDURES

                       Part A--General Provisions

[Sec. 401. Budget-related legislation not subject to appropriations.]
Sec. 401. Fixed-year authorizations required for direct spending.
     * * * * * * *

       TITLE VI--BUDGETARY TREATMENT OF FEDERAL INSURANCE PROGRAMS

Sec. 601. Short title.
Sec. 602. Budgetary treatment.
Sec. 603. Timetable for implementation of accrual budgeting for Federal 
          insurance programs.
Sec. 604. Definitions.
Sec. 605. Authorizations to enter into contracts; actuarial cost 
          account.
Sec.  606. Effective date.

           *       *       *       *       *       *       *


                        DECLARATION OF PURPOSES

  Sec. 2. The Congress declares that it is essential--
          [(1) to assure effective congressional control over 
        the budgetary process;
          [(2) to provide for the congressional determination 
        each year of the appropriate level of Federal revenues 
        and expenditures;]
          (1) to assure effective control over the budgetary 
        process;
          (2) to facilitate the determination each year of the 
        appropriate level of Federal revenues and expenditures 
        by the Congress and the President;

           *       *       *       *       *       *       *


                              DEFINITIONS

  Sec. 3. In General.--For purposes of this Act--
          (1) * * *

           *       *       *       *       *       *       *

          (4) The term ``[concurrent] joint resolution on the 
        budget'' means--
                  (A) a [concurrent] joint resolution setting 
                forth the congressional budget for the United 
                States Government for a fiscal year as provided 
                in section 301; and
                  (B) any other [concurrent] joint resolution 
                revising the congressional budget for the 
                United States Government for a fiscal year as 
                described in section 304.

           *       *       *       *       *       *       *

          (11) The term ``direct spending'' has the meaning 
        given to such term in section 250(c)(8) of the Balanced 
        Budget and Emergency Deficit Control Act of 1985.
          (12)(A) The term ``emergency'' means a situation 
        that--
                  (i) requires new budget authority and outlays 
                (or new budget authority and the outlays 
                flowing therefrom) for the prevention or 
                mitigation of, or response to, loss of life or 
                property, or a threat to national security; and
                  (ii) is unanticipated.
          (B) As used in subparagraph (A), the term 
        ``unanticipated'' means that the situation is--
                  (i) sudden, which means quickly coming into 
                being or not building up over time;
                  (ii) urgent, which means a pressing and 
                compelling need requiring immediate action;
                  (iii) unforeseen, which means not predicted 
                or anticipated as an emerging need; and
                  (iv) temporary, which means not of a 
                permanent duration.

TITLE II--CONGRESSIONAL BUDGET OFFICE

           *       *       *       *       *       *       *


                          DUTIES AND FUNCTIONS

  Sec. 202. (a) * * *

           *       *       *       *       *       *       *

  (e) Reports to Budget Committees.--
          (1) On or before February 15 of each year, the 
        Director shall submit to the Committees on the Budget 
        of the House of Representatives and the Senate, a 
        report for the fiscal year commencing on October 1 of 
        that year, with respect to fiscal policy, including (A) 
        alternative levels of total revenues, total new budget 
        authority, and total outlays (including related 
        surpluses and deficits) compared to comparable levels 
        for the current year, (B) the levels of tax 
        expenditures under existing law, taking into account 
        projected economic factors and any changes in such 
        levels based on proposals in the budget submitted by 
        the President for such fiscal year compared to 
        comparable levels for the current year, and (C) a 
        statement of the levels of budget authority and outlays 
        for each program assumed to be extended in the 
        baseline, as provided in section 257(b)(2)(A) and for 
        excise taxes assumed to be extended under section 
        257(b)(2)(C) of the Balanced Budget and Emergency 
        Deficit Control Act of 1985. Such report shall also 
        include a table on sources of spending growth in total 
        direct spending for the budget year and the ensuing 9 
        fiscal years, which shall include changes in outlays 
        attributable to the following: cost-of-living 
        adjustments; changes in the number of program 
        recipients; increases in medical care prices, 
        utilization and intensity of medical care; and residual 
        factors. Such report shall also include a discussion of 
        national budget priorities, including alternative ways 
        of allocating new budget authority and budget outlays 
        for such fiscal year among major programs or functional 
        categories, taking into account how such alternative 
        allocations will meet major national needs and affect 
        balanced growth and development of the United States. 
        Such report shall also include an analysis based upon 
        current law for every fifth year of the period of 75 
        fiscal years beginning with such fiscal year, of the 
        estimated levels of total new budget authority and 
        total budget outlays, estimated revenues, estimated 
        surpluses and deficits, and, for social security, 
        medicare, medicaid, and all other direct spending, 
        estimated levels of total new budget authority and 
        total budget outlays. The report described in the 
        preceding sentence shall also specify its underlying 
        assumptions and set forth a sensitivity analysis of 
        factors that have a significant effect on the 
        projections made in the report.

           *       *       *       *       *       *       *


                TITLE III--CONGRESSIONAL BUDGET PROCESS

                               TIMETABLE

  [Sec. 300. The timetable with respect to the congressional 
budget process for any fiscal year is as follows:

[On or before:      Action to be completed:
  First Monday in FePresident submits his budget........................
  February 15.......Congressional Budget Office submits report to Budget 
                    Committees.
  Not later than 6 wCommittees submit views and estimates to Budget ....
                    Committees.
  April 1...........Senate Budget Committee reports concurrent .........
                    resolution on the budget.
  April 15..........Congress completes action on concurrent resolution .
                    on the budget.
  May 15............Annual appropriation bills may be considered in the 
                    House.
  June 10...........House Appropriations Committee reports last annual .
                    appropriation bill.
  June 15...........Congress completes action on reconciliation ........
                    legislation.
  June 30...........House completes action on annual appropriation .....
                    bills.
  October 1.........Fiscal year begins.]................................

                               TIMETABLE

  Sec. 300. The timetable with respect to the congressional 
budget process for any fiscal year is as follows:

On or before:       Action to be completed:
  First Monday in FePresident submits his budget........................
  February 15.......Congressional Budget Office submits report to Budget 
                    Committees.
  Not later than 6 wCommittees submit views and estimates to Budget ....
                    Committees.
  April 1...........Senate Budget Committee reports joint resolution on 
                    the budget.
  April 15..........Congress completes action on joint resolution on the 
                    budget.
  June 10...........House Appropriations Committee reports last annual .
                    appropriation bill.
  June 15...........Congress completes action on reconciliation ........
                    legislation.
  June 30...........House completes action on annual appropriation .....
                    bills.
  October 1.........Fiscal year begins..................................

  ANNUAL [ADOPTION OF CONCURRENT RESOLUTION] JOINT RESOLUTIONS ON THE 
                                 BUDGET

  Sec. 301. (a) Content of [Concurrent] Joint  Resolution on 
the Budget.--On or before April 15 of each year, the Congress 
shall complete action on a [concurrent] joint resolution on the 
budget for the fiscal year beginning on October 1 of such year. 
The [concurrent] joint resolution shall set forth appropriate 
levels for the fiscal year beginning on October 1 of such year 
and for at least each of the 4 ensuing fiscal years for the 
following--
          (1)  * * *

           *       *       *       *       *       *       *

          [(4) new budget authority and outlays for each major 
        functional category, based on allocations of the total 
        levels set forth pursuant to paragraph (1);]
          (4) subtotals of new budget authority and outlays for 
        nondefense discretionary spending, defense 
        discretionary spending, direct spending (excluding 
        interest), and interest; and for fiscal years to which 
        the amendments made by title II of theComprehensive 
Budget Process Reform Act of 1999 apply, subtotals of new budget 
authority and outlays for emergencies;

           *       *       *       *       *       *       *

          (7) For purposes of Senate enforcement under this 
        title, revenues of the old-age, survivors, and 
        disability insurance program established under title II 
        of the Social Security Act (and the related provisions 
        of the Internal Revenue Code of 1986) for the fiscal 
        year of the resolution and for each of the 4 succeeding 
        fiscal years.
The [concurrent] joint resolution shall not include the outlays 
and revenue totals of the old age, survivors, and disability 
insurance program established under title II of the Social 
Security Act or the related provisions of the Internal Revenue 
Code of 1986 in the surplus or deficit totals required by this 
subsection or in any other surplus or deficit totals required 
by this title.
  (b) Additional Matters in Concurrent Resolution.--The 
concurrent resolution on the budget may--
          (1) set forth, if required by subsection (f), the 
        calendar year in which, in the opinion of the Congress, 
        the goals for reducing unemployment set forth in 
        section 4(b) of the Employment Act of 1946 should be 
        achieved;
          [(2) include reconciliation directives described in 
        section 310;]
          (2) if submitted by the Committee on Ways and Means 
        of the House of Representatives or the Committee on 
        Finance of the Senate to the Committee on the Budget of 
        that House of Congress, amend section 3101 of title 31, 
        United States Code, to change the statutory limit on 
        the public debt;
          (3) require a procedure under which all or certain 
        bills or resolutions providing new budget authority or 
        new entitlement authority for such fiscal year shall 
        not be enrolled until the Congress has completed action 
        on any reconciliation bill or reconciliation resolution 
        or both required by such concurrent resolution to be 
        reported in accordance with section 310(b);
          [(4) set forth such other matters, and require such 
        other procedures, relating to the budget, as may be 
        appropriate to carry out the purposes of this Act;]
          (4) require such other congressional procedures, 
        relating to the budget, as may be appropriate to carry 
        out the purposes of this Act;
          (5) include a heading entitled ``Debt Increase as 
        Measure of Deficit'' in which the concurrent resolution 
        shall set forth the amounts by which the debt subject 
        to limit (in section 3101 of title 31 of the United 
        States Code) has increased or would increase in each of 
        the relevant fiscal years;
          [(6) include a heading entitled ``Display of Federal 
        Retirement Trust Fund Balances'' in which the 
        concurrent resolution shall set forth the balances of 
        the Federal retirement trust funds;]
          [(7)] (6) set forth procedures in the Senate whereby 
        committee allocations, aggregates, and other levels can 
        be revised for legislation if that legislation would 
        not increase the deficit, or would not increase the 
        deficit when taken with other legislation enacted after 
        the adoption of the resolution, for the first fiscal 
        year or the total period of fiscal years covered by the 
        resolution;
          [(8) set forth procedures to effectuate pay-as-you-go 
        in the House of Representatives; and]
          [(9) set forth direct loan obligation and primary 
        loan guarantee commitment levels.]
  (c) Consideration of Procedures or Matters Which Have the 
Effect of Changing any Rule of the House of Representatives.--
If the Committee on the Budget of the House of Representatives 
reports any [concurrent] joint resolution on the budget which 
includes any procedure or matter which has the effect of 
changing any rule of the House of Representatives, such 
[concurrent] joint resolution shall then be referred to the 
Committee on Rules with instructions to report it within five 
calendar days (not counting any day on which the House is not 
in session). The Committee on Rules shall have jurisdiction to 
report any [concurrent] joint resolution referred to it under 
this paragraph with an amendment or amendments changing or 
striking out any such procedure or matter.

           *       *       *       *       *       *       *

  (e) Hearings and Report.--
          (1) In general.--In developing the [concurrent] joint 
        resolution on the budget referred to in subsection (a) 
        for each fiscal year, the Committee on the Budget of 
        each House shall hold hearings and shall receive 
        testimony from Members of Congress and such appropriate 
        representatives of Federal departments and agencies, 
        the general public, and national organizations as the 
        committee deems desirable. Each of the recommendations 
        as to short-term and medium-term goals set forth in the 
        report submitted by the members of the Joint Economic 
        Committee under subsection (d) may be considered by the 
        Committee on the Budget of each House as part of its 
        consideration of such [concurrent] joint resolution, 
        and its report may reflect its views thereon, including 
        its views on how the estimates of revenues and levels 
        of budget authority and outlays set forth in such 
        [concurrent] joint resolution are designed to achieve 
        any goals it is recommending. The basis of 
        deliberations in developing such joint resolution shall 
        be the estimated budgetary levels for the preceding 
        fiscal year. Any budgetary levels pending before the 
        committee and the text of the joint resolution shall be 
        accompanied by a document comparing such levels or such 
        text to the estimated levels of the prior fiscal year. 
        Any amendment offered in the committee that changes a 
        budgetary level and is based upon a specific policy 
        assumption for a program, project, or activity shall be 
        accompanied by a document indicating the estimated 
        amount for such program, project, or activity in the 
        current year.
          (2) Required contents of report.--The report 
        accompanying the resolution shall include--
                  (A) new budget authority and outlays for each 
                major functional category, based on allocations 
                of the total levels set forth pursuant to 
                subsection (a)(1);
                  [(A)] (B) a comparison of the levels of total 
                new budget authority, total outlays, total 
                revenues, and the surplusor deficit for each 
fiscal year set forth in the resolution with those requested in the 
budget submitted by the President;
                  [(B)] (C) with respect to each major 
                functional category, an estimate of total new 
                budget authority and total outlays, with the 
                estimates divided between discretionary and 
                [mandatory] direct spending amounts;
                  (D) a measure, as a percentage of gross 
                domestic product, of total outlays, total 
                Federal revenues, the surplus or deficit, and 
                new outlays for nondefense discretionary 
                spending, defense spending, and direct spending 
                as set forth in such resolution;
                  [(C)] (E) the economic assumptions that 
                underlie each of the matters set forth in the 
                resolution and any alternative economic 
                assumptions and objectives the committee 
                considered;
                  [(D)] (F) information, data, and comparisons 
                indicating the manner in which, and the basis 
                on which, the committee determined each of the 
                matters set forth in the resolution;
                  (G) if the joint resolution on the budget 
                includes any allocation to a committee (other 
                than the Committee on Appropriations) of levels 
                in excess of current law levels, a 
                justification for not subjecting any program, 
                project, or activity (for which the allocation 
                is made) to annual discretionary 
                appropriations;
                  [(E)] (H) the estimated levels of tax 
                expenditures (the tax expenditures budget) by 
                major items and functional categories for the 
                President's budget and in the resolution; [and]
                  [(F)] (I) allocations described in section 
                302(a)[.]; and
                  (J) a comparison of levels for the current 
                fiscal year with proposed spending and revenue 
                levels for the subsequent fiscal years along 
                with the proposed increase or decrease of 
                spending in percentage terms for each function.
          (3) Additional contents of report.--The report 
        accompanying the resolution may include--
                  (A) reconciliation directives described in 
                section 310;
                  [(A)] (B) a statement of any significant 
                changes in the proposed levels of Federal 
                assistance to State and local governments;
                  [(B)] (C) an allocation of the level of 
                Federal revenues recommended in the resolution 
                among the major sources of such revenues;
                  [(C) information, data, and comparisons on 
                the share of total Federal budget outlays and 
                of gross domestic product devoted to investment 
                in the budget submitted by the President and in 
                the resolution;
                  [(D) the assumed levels of budget authority 
                and outlays for public buildings, with a 
                division between amounts for construction and 
                repair and for rental payments; and]
                  [(E)] (D) other matters, relating to the 
                budget and to fiscal policy, that the committee 
                deems appropriate.
  (f) Achievement of Goals for Reducing Unemployment.--
          (1) If, pursuant to section 4(c) of the Employment 
        Act of 1946, the President recommends in the Economic 
        Report that the goals for reducing unemployment set 
        forth in section 4(b) of such Act be achieved in a year 
        after the close of the five-year period prescribed by 
        such subsection, the [concurrent] joint resolution on 
        the budget for the fiscal year beginning after the date 
        on which such Economic Report is received by the 
        Congress may set forth the year in which, in the 
        opinion of the Congress, such goals can be achieved.
          (2) After the Congress has expressed its opinion 
        pursuant to paragraph (1) as to the year in which the 
        goals for reducing unemployment set forth in section 
        4(b) of the Employment Act of 1946 can be achieved, if, 
        pursuant to section 4(e) of such Act, the President 
        recommends in the Economic Report that such goals be 
        achieved in a year which is different from the year in 
        which the Congress has expressed its opinion that such 
        goals should be achieved, either in its action pursuant 
        to paragraph (1) or in its most recent action pursuant 
        to this paragraph, the [concurrent] joint resolution on 
        the budget for the fiscal year beginning after the date 
        on which such Economic Report is received by the 
        Congress may set forth the year in which, in the 
        opinion of the Congress, such goals can be achieved.

           *       *       *       *       *       *       *

  (g) Economic Assumptions.--
          (1) It shall not be in order in the Senate to 
        consider any [concurrent] joint resolution on the 
        budget for a fiscal year, or any amendment thereto, or 
        any conference report thereon, that sets forth amounts 
        and levels that are determined on the basis of more 
        than one set of economic and technical assumptions.
          (2) The joint explanatory statement accompanying a 
        conference report on a [concurrent] joint resolution on 
        the budget shall set forth the common economic 
        assumptions upon which such joint statement and 
        conference report are based, or upon which any 
        amendment contained in the joint explanatory statement 
        to be proposed by the conferees in the case of 
        technical disagreement, is based.
          (3) Subject to periodic reestimation based on changed 
        economic conditions or technical estimates, 
        determinations under titles III and IV of the 
        Congressional Budget Act of 1974 shall be based upon 
        such common economic and technical assumptions.

           *       *       *       *       *       *       *

  (i) Social Security Point of Order.--It shall not be in order 
in the Senate to consider any [concurrent] joint resolution on 
the budget (or amendment, motion, or conference report on the 
resolution) that would decrease the excess of social security 
revenues over social security outlays in any of the fiscal 
years covered by the [concurrent] joint resolution. No change 
in chapter 1 of the Internal Revenue Code of 1986 shall be 
treated as affecting the amount of social security revenues 
unless such provision changes the income tax treatment of 
social security benefits.

                         COMMITTEE ALLOCATIONS

  Sec. 302. (a) Committee Spending Allocations.--
          (1) Allocation among committees.--The joint 
        explanatory statement accompanying a conference report 
        on a [concurrent] joint resolution on the budget shall 
        include an allocation, consistent with the resolution 
        recommended in the conference report, of the levels for 
        the first fiscal year of the resolution, for at least 
        each of the ensuing 4 fiscal years, and a total for 
        that period of fiscal years (except in the case of the 
        Committee on Appropriations only for the fiscal year of 
        that resolution) of--
                  (A) * * *

           *       *       *       *       *       *       *

          [(5) Adjusting allocation of discretionary spending 
        in the house of representatives.--(A) If a concurrent 
        resolution on the budget is not adopted by April 15, 
        the chairman of the Committee on the Budget of the 
        House of Representatives shall submit to the House, as 
        soon as practicable, an allocation under paragraph (1) 
        to the Committee on Appropriations consistent with the 
        discretionary spending levels in the most recently 
        agreed to concurrent resolution on the budget for the 
        appropriate fiscal year covered by that resolution.
          [(B) As soon as practicable after an allocation under 
        paragraph (1) is submitted under this section, the 
        Committee on Appropriations shall make suballocations 
        and report those suballocations to the House of 
        Representatives.]
          (5) Justification of certain spending allocations.--
        The joint explanatory statement accompanying a 
        conference report on a joint resolution on the budget 
        that includes any allocation to a committee (other than 
        the Committee on Appropriations) of levels in excess of 
        current law levels shall set forth a justification for 
        not subjecting any program, project, or activity (for 
        which the allocation is made) to annual discretionary 
        appropriation.
          (6) Adjustment of allocations.--Upon the engrossment 
        of Senate amendments to any appropriation bill (as 
        defined in section 318(d)) for a fiscal year, the 
        amounts allocated under paragraph (1) or (2) to the 
        Committee on Appropriations of each House upon the 
        adoption of the most recent joint resolution on the 
        budget for that fiscal year shall be adjusted downward 
        by the amounts credited to the applicable Joint House-
        Senate Lock-box Balance under section 318(c)(2). The 
        revised levels of new budget authority and outlays 
        shall be submitted to each House by the chairman of the 
        Committee on the Budget of that House and shall be 
        printed in the Congressional Record.
  (b) Suballocations by Appropriations Committees.--As soon as 
practicable after a [concurrent] joint resolution on the budget 
is [agreed to] enacted, the Committee on Appropriations of each 
House (after consulting with the Committee on Appropriations of 
the other House) shall suballocate each amount allocated to it 
for the budget year under subsection (a) among its 
subcommittees. Each Committee on Appropriations shall promptly 
report to its House suballocations made or revised under this 
subsection. The Committee on Appropriations of the House of 
Representatives shall further divide among its subcommittees 
the divisions made under subsection (a)(3)(B) and promptly 
report those divisions to the House. Whenever an adjustment is 
made under subsection (a)(7) to an allocation under that 
subsection, the Committee on Appropriations of each House shall 
make downward adjustments in the most recent suballocations of 
new budget authority and outlays under this subparagraph to the 
appropriate subcommittees of that committee in the total 
amounts of those adjustments under section 318(c)(2). The 
revised suballocations shall be submitted to each House by the 
chairman of the Committee on Appropriations of that House and 
shall be printed in the Congressional Record.

           *       *       *       *       *       *       *

  (d) Subsequent [Concurrent] Joint Resolutions.--In the case 
of a [concurrent] joint resolution on the budget referred to in 
section 304, the allocations under subsection (a) and the 
subdivisions under subsection (b) shall be required only to the 
extent necessary to take into account revisions made in the 
[most recently agreed to concurrent resolution on the budget] 
most recently enacted joint resolution on the budget or agreed 
to concurrent resolution on the budget (as applicable).

           *       *       *       *       *       *       *

  (f) Legislation Subject to Point of Order.--
          (1) * * *
          (2) In the senate.--After a [concurrent] joint 
        resolution on the budget is [agreed to] enacted, it 
        shall not be in order in the Senate to consider any 
        bill, joint resolution, amendment, motion, or 
        conference report that would cause--
                  (A) * * *

           *       *       *       *       *       *       *

  (g) Pay-as-You-Go Exception in the House.--
          (1) In general.--(A) Subsection (f)(1) [and, after 
        April 15, section 303(a)] shall not apply to any bill 
        or joint resolution, as reported, amendment thereto,or 
conference report thereon if, for each fiscal year covered by the [most 
recently agreed to concurrent resolution on the budget] most recently 
enacted joint resolution on the budget or agreed to concurrent 
resolution on the budget (as applicable)--
                  (i) * * *

           *       *       *       *       *       *       *

        would not increase the deficit, and, if the sum of any 
        revenue increases provided in legislation already 
        enacted during the current session (when added to 
        revenue increases, if any, in excess of any outlay 
        increase provided by the legislation proposed for 
        consideration) is at least as great as the sum of the 
        amount, if any, by which the aggregate level of Federal 
        revenues should be increased as set forth in that 
        [concurrent] joint resolution and the amount, if any, 
        by which revenues are to be increased pursuant to pay-
        as-you-go procedures under section 301(b)(8), if 
        included in that [concurrent] joint resolution.
          (B) Section 311(a), as that section applies to 
        revenues, shall not apply to any bill, joint 
        resolution, amendment thereto, or conference report 
        thereon if, for each fiscal year covered by the most 
        recently [agreed to concurrent] enacted joint 
        resolution on the budget--
                  (i) * * *

           *       *       *       *       *       *       *

        would not increase the deficit, and, if the sum of any 
        outlay reductions provided in legislation already 
        enacted during the current session (when added to 
        outlay reductions, if any, in excess of any revenue 
        reduction provided by the legislation proposed for 
        consideration) is at least as great as the sum of the 
        amount, if any, by which the aggregate level of Federal 
        outlays should be reduced as required by that 
        [concurrent] joint resolution and the amount, if any, 
        by which outlays are to be reduced pursuant to pay-as-
        you-go procedures under section 301(b)(8), if included 
        in that [concurrent] joint resolution.
          (2) Revised allocations.--(A) * * *
          (B) Such revised allocations, functional levels, and 
        budget aggregates shall be considered for the purposes 
        of this Act as allocations, functional levels, and 
        budget aggregates contained in the [most recently 
        agreed to concurrent resolution on the budget] most 
        recently enacted joint resolution on the budget or 
        agreed to concurrent resolution on the budget (as 
        applicable).

   [CONCURRENT JOINT RESOLUTION ON THE BUDGET MUST BE ADOPTED BEFORE 
               BUDGET-RELATED LEGISLATION IS CONSIDERED]

 CONSIDERATION OF BUDGET-RELATED LEGISLATION BEFORE BUDGET BECOMES LAW

  Sec. 303. (a) In General.--Until the [concurrent] joint 
resolution on the budget for a fiscal year has been [agreed to] 
enacted, it shall not be in order in the House of 
Representatives, with respect to the first fiscal year covered 
by that resolution, or the Senate, with respect to any fiscal 
year covered by that resolution, to consider any bill or joint 
resolution, amendment or motion thereto, or conference report 
thereon that--
          (1) * * *

           *       *       *       *       *       *       *

  (b) Exceptions in the House.-- In the House of 
Representatives, subsection (a) does not apply--
          (1)[(A)] to any bill or joint resolution, as 
        reported, providing advance discretionary new budget 
        authority that first becomes available for the first or 
        second fiscal year after the budget year; or
          [(B)] (2) to any bill or joint resolution, as 
        reported, first increasing or decreasing revenues in a 
        fiscal year following the fiscal year to which the 
        [concurrent] joint resolution applies[;].
          [(2) after May 15, to any general appropriation bill 
        or amendment thereto; or
          [(3) to any bill or joint resolution unless it is 
        reported by a committee.]
  (c) Application to Appropriation Measures in the Senate.--
          (1) In general.--Until the [concurrent] joint 
        resolution on the budget for a fiscal year has been 
        [agreed to] enacted and an allocation has been made to 
        the Committee on Appropriations of the Senate under 
        section 302(a) for that year, it shall not be in order 
        in the Senate to consider any appropriation bill or 
        joint resolution, amendment or motion thereto, or 
        conference report thereon for that year or any 
        subsequent year.

           *       *       *       *       *       *       *


     [PERMISSIBLE REVISIONS OF CONCURRENT RESOLUTIONS ON THE BUDGET

  [Sec. 304. At any time after the concurrent resolution on the 
budget for a fiscal year has been agreed to pursuant to section 
301, and before the end of such fiscal year, the two Houses may 
adopt a concurrent resolution on the budget which revises or 
reaffirms the concurrent resolution on the budget for such 
fiscal year most recently agreed to.]

              PERMISSIBLE REVISIONS OF BUDGET RESOLUTIONS

  Sec. 304. At any time after the joint resolution on the 
budget for a fiscal year has been enacted pursuant to section 
301, and before the end of such fiscal year, the two Houses and 
the President may enact a joint resolution on the budget which 
revises or reaffirms the joint resolution on the budget for 
such fiscal year most recently enacted. If a concurrent 
resolution on the budget has been agreed to pursuant to section 
316, then before the end of such fiscal year, the two Houses 
may adopt a concurrent resolution on the budget which revises 
or reaffirms the concurrent resolution on the budget for such 
fiscal year most recently agreed to.

 PROVISIONS RELATING TO THE CONSIDERATION OF CONCURRENT RESOLUTIONS ON 
                               THE BUDGET

  Sec. 305. (a) Procedure in House of Representatives After 
Report of Committee; Debate.--
          (1) When a [concurrent] joint resolution on the 
        budget has been reported by the Committee on the Budget 
        of the House of Representatives and has been referred 
        to the appropriate calendar of the House, it shall be 
        in order on any day thereafter, subject to clause 
        2(l)(6) of rule XI of the Rules of the House of 
        Representatives, to move to proceed to the 
        consideration of the [concurrent] joint resolution. The 
        motion is highly privileged and is not debatable. An 
        amendment to the motion is not in order and it is not 
        in order to move to reconsider the vote by which the 
        motion is agreed to or disagreed to.
          (2) General debate on any [concurrent] joint 
        resolution on the budget in the House of 
        Representatives shall be limited to not more than 10 
        hours, which shall be divided equally between the 
        majority and minority parties, plus such additional 
        hours of debate as are consumed pursuant to paragraph 
        (3). A motion further to limit debate is not debatable. 
        A motion to recommit the [concurrent] joint resolution 
        is not in order, and it is not in order to move to 
        reconsider the vote by which the [concurrent] joint 
        resolution is agreed to or disagreed to.
          (3) Following the presentation of opening statements 
        on the [concurrent] joint resolution on the budget for 
        a fiscal year by the chairman and ranking minority 
        member of the Committee on the Budget of the House, 
        there shall be a period of up to four hours for debate 
        on economic goals and policies.
          (4) Only if a [concurrent] joint resolution on the 
        budget reported by the Committee on the Budget of the 
        House sets forth the economic goals (as described in 
        sections 3(a)(2) and (4)(b) of the Full Employment Act 
        of 1946) which the estimates, amounts, and levels (as 
        described in section 301(a)) set forth in such 
        resolution are designed to achieve, shall it be in 
        order to offer to such resolution an amendment relating 
        to such goals, and such amendment shall be in order 
        only if it also proposes to alter such estimates, 
        amounts, and levels in germane fashion in order to be 
        consistent with the goals proposed in such amendment.
          (5) Consideration of any [concurrent] joint 
        resolution on the budget by the House of 
        Representatives shall be in the Committee of the Whole, 
        and the resolution shall be considered for amendment 
        under the five-minute rule in accordance with the 
        applicable provisions of rule XXIII of the Rules of the 
        House of Representatives. After the Committee rises and 
        reports the resolution back to the House, the previous 
        question shall be considered as ordered on the 
        resolution and any amendments thereto to final passage 
        without intervening motion; except that it shall be in 
        order at any time prior to final passage 
        (notwithstanding any other rule or provision of law) to 
        adopt an amendment (or a series of amendments) changing 
        any figure or figures in the resolution as so reported 
        to the extent necessary to achieve mathematical 
        consistency.
          (6) Debate in the House of Representatives on the 
        conference report on any [concurrent] joint resolution 
        on the budget shall be limited to not more than 5 
        hours, which shall be divided equally between the 
        majority and minority parties. A motion further to 
        limit debate is not debatable. A motion to recommit the 
        conference report is not in order, and it is not in 
        order to move to reconsider the vote by which the 
        conference report is agreed to or disagreed to.
          (7) Appeals from decisions of the Chair relating to 
        the application of the Rules of the House of 
        Representatives to the procedure relating to any 
        [concurrent] joint resolution on the budget shall be 
        decided without debate.
  (b) Procedure in Senate After Report of Committee; Debate; 
Amendments.--
          (1) Debate in the Senate on any [concurrent]joint 
resolution on the budget, and all amendments thereto and debatable 
motions and appeals in connection therewith, shall be limited to not 
more than 50 hours, except that with respect to any [concurrent] joint 
resolution referred to in section 304(a) all such debate shall be 
limited to not more than 15 hours. The time shall be equally divided 
between, and controlled by, the majority leader and the minority leader 
or their designees.
          (2) Debate in the Senate on any amendment to a 
        [concurrent] joint resolution on the budget shall be 
        limited to 2 hours, to be equally divided between, and 
        controlled by, the mover and the manager of the 
        [concurrent] joint resolution, and debate on any 
        amendment to an amendment, debatable motion, or appeal 
        shall be limited to 1 hour, to be equally divided 
        between, and controlled by, the mover and the manager 
        of the [concurrent] joint resolution, except that in 
        the event the manager of the [concurrent] joint 
        resolution is in favor of any such amendment, motion, 
        or appeal, the time in opposition thereto shall be 
        controlled by the minority leader or his designee. No 
        amendment that is not germane to the provisions of such 
        [concurrent] joint resolution shall be received. Such 
        leaders, or either of them, may, from the time under 
        their control on the passage of the [concurrent] joint 
        resolution, allot additional time to any Senator during 
        the consideration of any amendment, debatable motion, 
        or appeal.
          (3) Following the presentation of opening statements 
        on the [concurrent] joint resolution on the budget for 
        a fiscal year by the chairman and ranking minority 
        member of the Committee on the Budget of the Senate, 
        there shall be a period of up to four hours for debate 
        on economic goals and policies.
          (4) Subject to the other limitations of this Act, 
        only if a [concurrent] joint resolution on the budget 
        reported by the Committee on the Budget of the Senate 
        sets forth the economic goals (as described in sections 
        3(a)(2) and 4(b) of the Employment Act of 1946) which 
        the estimates, amounts, and levels (as described in 
        section 301(a)) set forth in such resolution are 
        designed to achieve, shall it be in order to offer to 
        such resolution an amendment relating to such goals, 
        and such amendment shall be in order only if it also 
        proposes to alter such estimates, amounts, and levels 
        in germane fashion in order to be consistent with the 
        goals proposed in such amendment.
          (5) A motion to further limit debate is not 
        debatable. A motion to recommit (except a motion to 
        recommit with instructions to report back within a 
        specified number of days, not to exceed 3, not counting 
        any day on which the Senate is not in session) is not 
        in order. Debate on any such motion to recommit shall 
        be limited to 1 hour, to be equally divided between, 
        and controlled by, the mover and the manager of the 
        [concurrent] joint resolution.
          (6) Notwithstanding any other rule, an amendment or 
        series of amendments to a [concurrent] joint resolution 
        on the budget proposed in the Senate shall always be in 
        order if such amendment or series of amendments 
        proposes to change any figure or figures then contained 
        in such [concurrent] joint resolution so as to make 
        such [concurrent] joint resolution mathematically 
        consistent or so as to maintain such consistency.
  (c) Action on Conference Reports in the Senate.--
          (1) A motion to proceed to the consideration of the 
        conference report on any [concurrent] joint resolution 
        on the budget (or a reconciliation bill or resolution) 
        may be made even though a previous motion to the same 
        effect has been disagreed to.
          (2) During the consideration in the Senate of the 
        conference report (or a message between Houses) on any 
        [concurrent] joint resolution on the budget, and all 
        amendments in disagreement, and all amendments thereto, 
        and debatable motions and appeals in connection 
        therewith, debate shall be limited to 10 hours, to be 
        equally divided between, and controlled by, the 
        majority leader and minority leader or their designees. 
        Debate on any debatable motion or appeal related to the 
        conference report (or a message between Houses) shall 
        be limited to 1 hour, to be equally divided between, 
        and controlled by, the mover and the manager of the 
        conference report (or a message between Houses).

           *       *       *       *       *       *       *

  (d) [Concurrent] Joint Resolution Must be Consistent in the 
Senate.--It shall not be in order in the Senate to vote on the 
question of agreeing to--
          (1) a [concurrent] joint resolution on the budget 
        unless the figures then contained in such resolution 
        are mathematically consistent; or
          (2) a conference report on a [concurrent] joint 
        resolution on the budget unless the figures contained 
        in such resolution, as recommended in such conference 
        report, are mathematically consistent.
  (e) Limitation on Contents.--(1) It shall not be in order in 
the House of Representatives or in the Senate to consider any 
joint resolution on the budget or any amendment thereto or 
conference report thereon that contains any matter referred to 
in paragraph (2).
  (2) Any joint resolution on the budget or any amendment 
thereto or conference report thereon that contains any matter 
not permitted in section 301(a) or (b) shall not be treated in 
the House of Representatives or the Senate as a budget 
resolution under subsection (a) or (b) or as a conference 
report on a budget resolution under subsection (c) of this 
section.
  (f) Point of Order Regarding Emergency Reserve Fund.--It 
shall not be in order in the House of Representatives or in the 
Senate to consider an amendment to a joint resolution on the 
budget (or concurrent resolution on the budget, as the case may 
be) which changes the amount of budget authority and outlays 
set forth in section 301(a)(4) for emergency reserve fund.

           *       *       *       *       *       *       *


  REPORTS, SUMMARIES, AND PROJECTIONS OF CONGRESSIONAL BUDGET ACTIONS

  Sec. 308. (a) Reports on Legislation Providing New Budget 
Authority or Providing an Increase or Decrease in Revenues or 
Tax Expenditures.--
          (1) Whenever a committee of either House reports to 
        its House a bill or joint resolution, or committee 
        amendment thereto, providing new budget authority 
        (other than continuing appropriations) or providing an 
        increase or decrease in revenues or tax expenditures 
        for a fiscal year (or fiscal years), the report 
        accompanying that bill or joint resolution shall 
        contain a statement, or the committee shall make 
        available such a statement in the case of an approved 
        committee amendment which is not reported to its House, 
        prepared after consultation with the Director of the 
        Congressional Budget Office--
                  (A) comparing the levels in such measure to 
                the appropriate allocations in the reports 
                submitted under section 302(b) for the [most 
                recently agreed to concurrent resolution on the 
                budget] most recently enacted joint resolution 
                on the budget or agreed to concurrent 
                resolution on the budget (as applicable) for 
                such fiscal year (or fiscal years);
                  (B) containing a projection by the 
                Congressional Budget Office of how such measure 
                will affect the levels of such budget 
                authority, budget outlays, revenues, or tax 
                expenditures under existing law for such fiscal 
                year (or fiscal years) and each of the [four] 
                nine ensuing fiscal years, and shall include a 
                comparison of those levels to comparable levels 
                for the current fiscal year if timely submitted 
                before such report is filed; and

           *       *       *       *       *       *       *

  (b) Up-To-Date Tabulations of Congressional Budget Action.--
          (1) The Director of the Congressional Budget Office 
        shall issue to the committees of the House of 
        Representatives and the Senate reports on at least a 
        monthly basis detailing and tabulating the progress of 
        congressional action on bills and joint resolutions 
        providing new budget authority or providing an increase 
        or decrease in revenues or tax expenditures for each 
        fiscal year covered by a [concurrent] joint resolution 
        on the budget. Such reports shall include but are not 
        limited to an up-to-date tabulation comparing the 
        appropriate aggregate and functional levels (including 
        outlays) included in the most recently adopted 
        [concurrent] joint resolution on the budget with the 
        levels provided in bills and joint resolutions reported 
        by committees or adopted by either House or by the 
        Congress, and with the levels provided by law for the 
        fiscal year preceding the first fiscal year covered by 
        the appropriate [concurrent] joint resolution. Such 
        reports shall also include an up-to-date tabulation of 
        the amounts contained in the ledger and each entry 
        established by section 318(a).
          (2) The Committee on the Budget of each House shall 
        make available to Members of its House summary budget 
        scorekeeping reports. Such reports--
                  (A) shall be made available on at least a 
                monthly basis, but in any case frequently 
                enough to provide Members of each House an 
                accurate representation of the current status 
                of congressional consideration of the budget;
                  (B) shall include, but are not limited to 
                summaries of tabulations provided under 
                subsection (b)(1); [and]
                  (C) shall be based on information provided 
                under subsection (b)(1) without substantive 
                revision[.]; and
                  (D) shall include an up-to-date tabulation of 
                amounts remaining in the reserve fund for 
                emergencies.
The chairman of the Committee on the Budget of the House of 
Representatives shall submit such reports to the Speaker.

           *       *       *       *       *       *       *


                             RECONCILIATION

  Sec. 310. (a) Inclusion of Reconciliation Directives in 
[Concurrent]  Joint Explanatory Statement Accompanying 
Conference Report on Joint Resolutions on the Budget.--[A] The 
joint explanatory statement accompanying the conference report 
on a [concurrent] joint resolution on the budget for any fiscal 
year, to the extent necessary to effectuate the provisions and 
requirements of such resolution, shall--
          (1) * * *

           *       *       *       *       *       *       *

  (b) Legislative Procedure.--[If] If the joint explanatory 
statement accompanying the conference report on a [concurrent] 
joint resolution containing directives to one or more 
committees to determine and recommend changes in laws, bills, 
or resolutions is [agreed to] enacted in accordance with 
subsection (a), and--
          (1) only one committee of the House or the Senate is 
        directed to determine and recommend changes, that 
        committee shall promptly make such determination and 
        recommendations and report to its House reconciliation 
        legislation containing such recommendations; or
          (2) more than one committee of the House or the 
        Senate is directed to determine and recommend changes, 
        each such committee so directed shall promptly make 
        such determination and recommendations and submit such 
        recommendations to the Committee on the Budget of its 
        House, which upon receiving all such recommendations, 
        shall report to its House reconciliation legislation 
        carrying out all such make in order amendments to 
        achieve changes specified by reconciliation directives 
        contained in a [concurrent] joint resolution on the 
        budget if a committee or committees of the House fail 
        to submit recommended changes to its Committee on the 
        Budget pursuant to its instruction.
  (c) Compliance With Reconciliation Directions.--(1) Any 
committee of the House of Representatives or the Senate that is 
directed, pursuant to the joint explanatory statement 
accompanying the conference report on a [concurrent] joint 
resolution on the budget, to determine and recommend changes of 
the type described in paragraphs (1) and (2) of subsection (a) 
with respect to laws within its jurisdiction, shall be deemed 
to have complied with such directions--
          (A) if--
                  (i) the amount of the changes of the type 
                described in paragraph (1) of such subsection 
                recommended by such committee do not exceed or 
                fall below the amount of the changes such 
                committee was directed by such [concurrent] 
                joint resolution to recommend under that 
                paragraph by more than--
                          (I) * * *

           *       *       *       *       *       *       *

                  (ii) the amount of the changes of the type 
                described in paragraph (2) of such subsection 
                recommended by such committee do not exceed or 
                fall below the amount of the changes such 
                committee was directed by such [concurrent] 
                joint resolution to recommend under that 
                paragraph by more than--
                          (I) * * *

           *       *       *       *       *       *       *

          (2)(A) * * *

           *       *       *       *       *       *       *

          (C) Allocations, functional levels, and aggregates 
        revised pursuant to this paragraph shall be considered 
        to be allocations, functional levels, and aggregates 
        contained in the [concurrent] joint resolution on the 
        budget pursuant to section 301.
          (D) Upon the filing of revised allocations pursuant 
        to this paragraph, the reporting committee shall report 
        revised allocations pursuant to section 302(b) to carry 
        out this subsection.
  (d) Limitation on Amendments to Reconciliation Bills and 
Resolutions.--
          (1) It shall not be in order in the House of 
        Representatives to consider any amendment to a 
        reconciliation bill or reconciliation resolution if 
        such amendment would have the effect of increasing any 
        specific budget outlays above the level of such outlays 
        provided in the bill or resolution (for the fiscal 
        years covered by the reconciliation instructions set 
        forth in the [most recently agreed to concurrent 
        resolution on the budget] most recently enacted joint 
        resolution on the budget or agreed to concurrent 
        resolution on the budget (as applicable)), or would 
        have the effect of reducing any specific Federal 
        revenues below the level of such revenues provided in 
        the bill or resolution (for such fiscal years), unless 
        such amendment makes at least an equivalent reduction 
        in other specific budget outlays, an equivalent 
        increase in other specific Federal revenues, or an 
        equivalent combination thereof (for such fiscal years), 
        except that a motion to strike a provision providing 
        new budget authority or new entitlement authority may 
        be in order.

           *       *       *       *       *       *       *

          (5) The Committee on Rules of the House of 
        Representatives may make in order amendments to achieve 
        changes specified by reconciliation directives 
        contained in a [concurrent] joint resolution on the 
        budget if a committee or committees of the House fail 
        to submit recommended changes to its Committee on the 
        Budget pursuant to its instruction.
  (e) Procedure in the Senate.--
          (1) Except as provided in paragraph (2), the 
        provisions of section 305 for the consideration in the 
        Senate of [concurrent] joint resolutions on the budget 
        and conference reports thereon shall also apply to the 
        consideration in the Senate of reconciliation bills 
        reported under subsection (b) and conference reports 
        thereon.

           *       *       *       *       *       *       *

  (f) Completion of Reconciliation Process.--It shall not be in 
order in the House of Representatives to consider any 
resolution providing for an adjournment period of more than 
three calendardays during the month of July until the House of 
Representatives has completed action on the reconciliation legislation 
for the fiscal year beginning on October 1 of the calendar year to 
which the adjournment resolution pertains, if reconciliation 
legislation is required to be reported by the [concurrent] joint 
resolution on the budget for such fiscal year.
  [(g) Limitation on Changes to the Social Security Act.--
Notwithstanding any other provision of law, it shall not be in 
order in the Senate or the House of Representatives to consider 
any reconciliation bill or reconciliation resolution reported 
pursuant to a concurrent resolution on the budget agreed to 
under section 301 or 304, or a joint resolution pursuant to 
section 258C of the Balanced Budget and Emergency Deficit 
Control Act of 1985, or any amendment thereto or conference 
report thereon, that contains recommendations with respect to 
the old-age, survivors, and disability insurance program 
established under title II of the Social Security Act.]

      BUDGET-RELATED LEGISLATION MUST BE WITHIN APPROPRIATE LEVELS

  Sec. 311. (a) Enforcement of Budget Aggregates.--
          (1) In the house of representatives.--Except as 
        provided by subsection (c), after the Congress has 
        completed action on a [concurrent] joint resolution on 
        the budget for a fiscal year, it shall not be in order 
        in the House of Representatives to consider any bill, 
        joint resolution, amendment, motion, or conference 
        report providing new budget authority or reducing 
        revenues, if--
                  (A) the enactment of that bill or resolution 
                as reported;
                  (B) the adoption and enactment of that 
                amendment; or
                  (C) the enactment of that bill or resolution 
                in the form recommended in that conference 
                report;
        would cause the level of total new budget authority or 
        total outlays set forth in the applicable [concurrent] 
        joint resolution on the budget for the first fiscal 
        year to be exceeded, or would cause revenues to be less 
        than the level of total revenues set forth in that 
        [concurrent] joint resolution for the first fiscal year 
        or for the total of that first fiscal year and the 
        ensuing fiscal years for which allocations are provided 
        under section 302(a), except when a declaration of war 
        by the Congress is in effect.
          (2) In the senate.--After a [concurrent] joint 
        resolution on the budget is [agreed to] enacted, it 
        shall not be in order in the Senate to consider any 
        bill, joint resolution, amendment, motion, or 
        conference report that--
                  (A) * * *

           *       *       *       *       *       *       *

          (3) Enforcement of social security levels in the 
        senate.--After a [concurrent] joint resolution on the 
        budget is [agreed to] enacted, it shall not be in order 
        in the Senate to consider any bill, joint resolution, 
        amendment, motion, or conference report that would 
        cause a decrease in social security surpluses or an 
        increase in social security deficits relative to the 
        levels set forth in the applicable resolution for the 
        first fiscal year or for the total of that fiscal year 
        and the ensuing fiscal years for which allocations are 
        provided under section 302(a).

           *       *       *       *       *       *       *


                   DETERMINATIONS AND POINTS OF ORDER

  Sec. 312. (a) * * *

           *       *       *       *       *       *       *

  (c) Maximum Deficit Amount Point of Order in the Senate.--It 
shall not be in order in the Senate to consider any 
[concurrent] joint resolution on the budget for a fiscal year, 
or to consider any amendment to that [concurrent] joint 
resolution, or to consider a conference report on that 
[concurrent] joint resolution, if--
          (1) the level of total outlays for the first fiscal 
        year set forth in that [concurrent] joint resolution or 
        conference report exceeds; or

           *       *       *       *       *       *       *

  (e) Points of Order in the Senate Against Amendments Between 
the Houses.--Each provision of this Act, except for section 
313, that establishes a point of order against an amendment 
also establishes a point of order in the Senate against an 
amendment between the Houses. If a point of order under this 
Act is raised in the Senate against an amendment between the 
Houses and the point of order is sustained, the effect shall be 
the same as if the Senate had disagreed to the amendment.

           *       *       *       *       *       *       *


            EXTRANEOUS MATTER IN RECONCILIATION LEGISLATION

  Sec. 313. (a) * * *

           *       *       *       *       *       *       *

  (c) Extraneous Materials.--Upon the reporting or discharge of 
a reconciliation bill or resolution pursuant to section 310 in 
the Senate, [and again upon the submission of a conference 
report on such a reconciliation bill or resolution,] the 
Committee on the Budget of the Senate shall submit for the 
record a list of material considered to be extraneous under 
subsections (b)(1)(A), (b)(1)(B), and (b)(1)(E) of this section 
to the instructions of a committee as provided in this section. 
The inclusion or exclusion of a provision shall not constitute 
a determination of extraneousness by the Presiding Officer of 
the Senate.
  [(d) Conference Reports.--When the Senate is considering a 
conference report on, or an amendment between the Houses in 
relation to, a reconciliation bill or reconciliation resolution 
pursuant to section 310, upon--
          [(1) a point of order being made by any Senator 
        against extraneous material meeting the definition of 
        subsections (b)(1)(A), (b)(1)(B), (b)(1)(D), (b)(1)(E), 
        or (b)(1)(F), and
          [(2) such point of order being sustained,
such material contained in such conference report or amendment 
shall be deemed stricken, and the Senate shall proceed, without 
intervening action or motion, to consider the question of 
whether the Senate shall recede from its amendment and concur 
with a further amendment, or concur in the House amendment with 
a further amendment, as the case may be, which further 
amendment shall consist of only that portion of the conference 
report or House amendment, as the case may be, not so stricken. 
Any such motion in the Senate shall be debatable for two hours. 
In any case in which such point of order is sustained against a 
conference report (or Senate amendment derived from such 
conference report by operation of this subsection), no further 
amendment shall be in order.]
  [(e)] (d) General Point of Order.--Notwithstanding any other 
law or rule of the Senate, it shall be in order for a Senator 
to raise a single point of order that several provisions of a 
bill, resolution, amendment[, motion, or conference report], or 
motion violate this section. The Presiding Officer may sustain 
the point of order as to some or all of the provisions against 
which the Senator raised the point of order. If the Presiding 
Officer so sustains the point of order as to some of the 
provisions (including provisions of an amendment[, motion, or 
conference report] or motion) against which the Senator raised 
the point of order, then only those provisions (including 
provisions of an amendment[, motion, or conference report] or 
motion) against which the Presiding Officer sustains the point 
of order shall be deemed stricken pursuant to this section. 
Before the Presiding Officer rules on such a point of order, 
any Senator may move to waive such a point of order as it 
applies to some or all of the provisions against which the 
point of order was raised. Such a motion to waive is amendable 
in accordance with the rules and precedents of the Senate. 
After the Presiding Officer rules on such a point of order, any 
Senator may appeal the ruling of the Presiding Officer on such 
a point of order as it applies to some or all of the provisions 
on which the Presiding Officer ruled.

                              ADJUSTMENTS

  Sec. 314. (a) Adjustments.--
          (1) * * *
          (2) Matters to be adjusted.--The adjustments referred 
        to in paragraph (1) are to be made to--
                  (A) the discretionary spending limits, if 
                any, set forth in the appropriate [concurrent] 
                joint resolution on the budget;
                  (B) the allocations made pursuant to the 
                appropriate [concurrent] joint resolution on 
                the budget pursuant to section 302(a); and
                  (C) the budgetary aggregates as set forth in 
                the appropriate [concurrent] joint resolution 
                on the budget.
  (b) Amounts of Adjustments.--The adjustment referred to in 
subsection (a) shall be--
          [(1) an amount provided and designated as an 
        emergency requirement pursuant to section 251(b)(2)(A) 
        or 252(e) of the Balanced Budget and Emergency Deficit 
        Control Act of 1985;]
          [(2)] (1) an amount provided for continuing 
        disability reviews subject to the limitations in 
        section 251(b)(2)(C) of that Act;
          [(3)] (2) for any fiscal year through 2002, an amount 
        provided that is the dollar equivalent of the Special 
        Drawing Rights with respect to--
                  (A) * * *

           *       *       *       *       *       *       *

          [(4)] (3) an amount provided not to exceed 
        $1,884,000,000 for the period of fiscal years 1998 
        through 2000 for arrearages for international 
        organizations, international peacekeeping, and 
        multilateral development banks;
          [(5)] (4) an amount provided for an earned income tax 
        credit compliance initiative but not to exceed--
                  (A) * * *

           *       *       *       *       *       *       *

                  (E) with respect to fiscal year 2002, 
                $146,000,000 in new budget authority; [or]
          [(6)] (5) in the case of an amount for adoption 
        incentive payments (as defined in section 251(b)(2)(G) 
        of the Balanced Budget and Emergency Deficit Control 
        Act of 1985) for fiscal year 1999, 2000, 2001, 2002, or 
        2003 for the Department of Health and Human Services, 
        an amount not to exceed $20,000,000[.]; or
          (6) the amount provided in an Act making 
        discretionary appropriations for the program for which 
        an offset was designated pursuant to section 252(e) of 
        the Balanced Budget and Emergency Deficit Control Act 
        of 1985 and any outlays flowing therefrom, but not to 
        exceed the amount of the designated decrease in direct 
        spending for that year for that program in a prior law.

           *       *       *       *       *       *       *

  (d) [Reporting] Revised Suballocations.--Following any 
adjustment made under subsection (a), the chairmen of the 
Committees on Appropriations of the Senate and the House of 
Representatives [may report] shall make and have published in 
the Congressional Record appropriately revised suballocations 
under section 302(b) to carry out this section. For purposes of 
considering amendments (other than for amounts for emergencies 
covered by subsection (b)(1)), suballocations shall be deemed 
to be so adjusted.

           *       *       *       *       *       *       *

  (f) Adjustment in Authorizing Committee's Allocations by 
Amount of Direct Spending Offset.--After the reporting of a 
bill or joint resolution (by a committee other than the 
Committee on Appropriations), or the offering of an amendment 
thereto or the submission of a conference report thereon, that 
contains a provision that decreases direct spending for any 
fiscal year and that is designated as an offset pursuant to 
section 252(e) of the Balanced Budget and Emergency Deficit 
Control Act of 1985, the chairman of the Committee on the 
Budget shall reduce the allocations of new budget authority and 
outlays made to such committee under section 302(a)(1) by the 
amount so designated.

   EFFECT OF ADOPTION OF A SPECIAL ORDER OF BUSINESS IN THE HOUSE OF 
                            REPRESENTATIVES

  Sec. 315. For purposes of a [reported] bill or joint 
resolution considered in the House of Representatives pursuant 
to a special order of business, the term ``as reported'' in 
this title or title IV shall be considered to refer to the text 
made in order as an original bill or joint resolution for the 
purpose of amendment or to the text on which the previous 
question is ordered directly to passage, as the case may be.

    EXPEDITED PROCEDURES UPON VETO OF JOINT RESOLUTION ON THE BUDGET

  Sec. 316. (a) Special Rule.--If the President vetoes a joint 
resolution on the budget for a fiscal year, the majority leader 
of the House of Representatives or Senate (or his designee) may 
introduce a concurrent resolution on the budget or joint 
resolution on the budget for such fiscal year. If the Committee 
on the Budget of either House fails to report such concurrent 
or joint resolution referred to it within five calendar days 
(excluding Saturdays, Sundays, or legal holidays except when 
that House of Congress is in session) after the date of such 
referral, the committee shall be automatically discharged from 
further consideration of such resolution and such resolution 
shall be placed on the appropriate calendar.
  (b) Procedure in the House of Representatives and the 
Senate.--
          (1) Except as provided in paragraph (2), the 
        provisions of section 305 for the consideration in the 
        House of Representatives and in the Senate of joint 
        resolutions on the budget and conference reports 
        thereon shall also apply to the consideration of 
        concurrent resolutions on the budget introduced under 
        subsection (a) and conference reports thereon.
          (2) Debate in the Senate on any concurrent resolution 
        on the budget or joint resolution on the budget 
        introduced under subsection (a), and all amendments 
        thereto and debatable motions and appeals in connection 
        therewith, shall be limited to not more than 10 hours 
        and in the House such debate shall be limited to not 
        more than 3 hours.
  (c) Contents of Concurrent Resolutions.--Any concurrent 
resolution on the budget introduced under subsection (a) shall 
be in compliance with section 301.
  (d) Effect of Concurrent Resolution on the Budget.--
Notwithstanding any other provision of this title, whenever a 
concurrent resolution on the budget described in subsection (a) 
is agreed to, then the aggregates, allocations, and 
reconciliation directives (if any) contained in the report 
accompanying such concurrent resolution or in such concurrent 
resolution shall be considered to be the aggregates, 
allocations, and reconciliation directives for all purposes of 
sections 302, 303, and 311 for the applicable fiscal years and 
such concurrent resolution shall be deemed to be a joint 
resolution for all purposes of this title and the Rules of the 
House of Representatives and any reference to the date of 
enactment of a joint resolution on the budget shall be deemed 
to be a reference to the date agreed to when applied to such 
concurrent resolution.

                              EMERGENCIES

  Sec. 317. (a) Adjustments.--
          (1) In general.--After the reporting of a bill or 
        joint resolution or the submission of a conference 
        report thereon that provides budget authority for any 
        emergency as identified pursuant to subsection (c), the 
        Committee on the Budget of the House of Representatives 
        or the Senate shall--
                  (A) determine and certify, pursuant to the 
                guidelines referred to in section 204 of the 
                Comprehensive Budget Process Reform Act of 
                1999, the portion (if any) of the amount so 
                specified that is for an emergency within the 
                meaning of section 3(12); and
                  (B) make the adjustment set forth in 
                paragraph (2) for the amount of new budget 
                authority (or outlays) in that measure and the 
                outlays flowing from that budget authority.
          (2) Matters to be adjusted.--The adjustments referred 
        to in paragraph (1) are to be made to the allocations 
        made pursuant to the appropriate joint resolution on 
        the budget (or concurrent resolution on the budget, as 
        the case may be) pursuant to section 302(a) and shall 
        be in an amount not to exceed the amount reserved for 
        emergencies pursuant to the requirements of subsection 
        (b).
  (b) Reserve Fund for Emergencies.--
          (1) Amounts.--The amount set forth in the reserve 
        fund for emergencies for budget authority and outlays 
        for a fiscal year pursuant to section 301(a)(4) shall 
        equal--
                  (A) the average of the enacted levels of 
                budget authority for emergencies in the 5 
                fiscal years preceding the current year; and
                  (B) the average of the levels of outlays for 
                emergencies in the 5 fiscal years preceding the 
                current year flowing from the budget authority 
                referred to in subparagraph (A), but only in 
                the fiscal year for which such budget authority 
                first becomes available for obligation.
          (2) Average levels.--For purposes of paragraph (1), 
        the amount used for a fiscal year to calculate the 
        average of the enacted levels when one or more of such 
        5 preceding fiscal years is any of fiscal years 1994 
        through 1998 is as follows: the amount of enacted 
        levels of budget authority and the amount of new 
        outlays flowing therefrom for emergencies, but only in 
        the fiscal year for which such budget authority first 
        becomes available for obligation for each of such 5 
        fiscal years, which shall be determined by the 
        Committees on the Budget of the House of 
        Representatives and the Senate after receipt of a 
        report on such matter transmitted to such committees by 
        the Director of the Congressional Budget Office 6 
        months after the date of enactment of this section and 
        thereafter in February of each calendar year.
  (c) Committee Notification of Emergency Legislation.--
Whenever any committee of either House (including a committee 
of conference) reports any bill or joint resolution that 
provides budget authority for any emergency, the report 
accompanying that bill orjoint resolution (or the joint 
explanatory statement of managers in the case of a conference report on 
any such bill or joint resolution) shall identify all provisions that 
provide budget authority and the outlays flowing therefrom for such 
emergency and include a statement of the reasons why such budget 
authority meets the definition of an emergency pursuant to the 
guidelines referred to in section 204 of the Comprehensive Budget 
Process Reform Act of 1999.

                SPENDING ACCOUNTABILITY LOCK-BOX LEDGER

  Sec. 318. (a) Establishment of Ledger.--The chairman of the 
Committee on the Budget of the House of Representatives and the 
chairman on the Committee on the Budget of the Senate shall 
each maintain a ledger to be known as the ``Spending 
Accountability Lock-box Ledger''. The Ledger shall be divided 
into entries corresponding to the subcommittees of the 
Committees on Appropriations. Each entry shall consist of three 
components: the ``House Lock-box Balance''; the ``Senate Lock-
box Balance''; and the ``Joint House-Senate Lock-box Balance''.
  (b) Components of Ledger.--Each component in an entry shall 
consist only of amounts credited to it under subsection (c). No 
entry of a negative amount shall be made.
  (c) Credit of Amounts to Ledger.--(1) In the House of 
Representatives or the Senate, whenever a Member offers an 
amendment to an appropriation bill to reduce new budget 
authority in any account, that Member may state the portion of 
such reduction that shall be--
          (A) credited to the House or Senate Lock-box Balance, 
        as applicable; or
          (B) used to offset an increase in new budget 
        authority in any other account;
          (C) allowed to remain within the applicable section 
        302(b) suballocation.
If no such statement is made, the amount of reduction in new 
budget authority resulting from the amendment shall be credited 
to the House or Senate Lock-box Balance, as applicable, if the 
amendment is agreed to.
  (2)(A) Except as provided by subparagraph (B), the chairmen 
of the Committees on the Budget shall, upon the engrossment of 
any appropriation bill by the House of Representatives and upon 
the engrossment of Senate amendments to that bill, credit to 
the applicable entry balance of that House amounts of new 
budget authority and outlays equal to the net amounts of 
reductions in new budget authority and in outlays resulting 
from amendments agreed to by that House to that bill.
  (B) When computing the net amounts of reductions in new 
budget authority and in outlays resulting from amendments 
agreed to by the House of Representatives or the Senate to an 
appropriation bill, the chairmen of the Committees on the 
Budget shall only count those portions of such amendments 
agreed to that were so designated by the Members offering such 
amendments as amounts to be credited to the House or Senate 
Lock-box Balance, as applicable, or that fall within the last 
sentence of paragraph (1).
  (3) The chairmen of the Committees on the Budget shall, upon 
the engrossment of Senate amendments to any appropriation bill, 
credit to the applicable Joint House-Senate Lock-box Balance 
the amounts of new budget authority and outlays equal to--
          (A) an amount equal to one-half of the sum of (i) the 
        amount of new budget authority in the House Lock-box 
        Balance plus (ii) the amount of new budget authority in 
        the Senate Lock-box Balance for that subcommittee; and
          (B) an amount equal to one-half of the sum of (i) the 
        amount of outlays in the House Lock-box Balance plus 
        (ii) the amount of outlays in the Senate Lock-box 
        Balance for that subcommittee.
  (4) Calculation of Lock-Box Savings in Senate.--For purposes 
of calculating under this section the net amounts of reductions 
in new budget authority and in outlays resulting from 
amendments agreed to by the Senate on an appropriation bill, 
the amendments reported to the Senate by its Committee on 
Appropriations shall be considered to be part of the original 
text of the bill.
  (d) Definition.--As used in this section, the term 
``appropriation bill'' means any general or special 
appropriation bill, and any bill or joint resolution making 
supplemental, deficiency, or continuing appropriations through 
the end of a fiscal year.
  (e) Tally During House Consideration.--The chairman of the 
Committee on the Budget of the House of Representatives shall 
maintain a running tally of the amendments adopted reflecting 
increases and decreases of budget authority in the bill as 
reported. This tally shall be available to Members in the House 
of Representatives during consideration of any appropriations 
bill by the House.

      TITLE IV--ADDITIONAL PROVISIONS TO IMPROVE FISCAL PROCEDURES

                       Part A--General Provisions

       [BUDGET-RELATED LEGISLATION NOT SUBJECT TO APPROPRIATIONS]

         FIXED-YEAR AUTHORIZATIONS REQUIRED FOR DIRECT SPENDING

  Sec. 401. [(a) Controls on Certain Budget-related Legislation 
Not Subject to Appropriations.--It shall not be in order in 
either the House of Representatives or the Senate to consider 
any bill or joint resolution (in the House of Representatives 
only, as reported), amendment, motion, or conference report 
that provides--
          [(1) new authority to enter into contracts under 
        which the United States is obligated to make outlays;
          [(2) new authority to incur indebtedness (other than 
        indebtedness incurred under chapter 31 of title 31 of 
        the United States Code) for the repayment of which the 
        United States is liable; or
          [(3) new credit authority;
unless that bill, joint resolution, amendment, motion, or 
conference report also provides that the new authority is to be 
effective for any fiscal year only to the extent or in the 
amounts provided in advance in appropriation Acts.
  [(b) Legislation Providing New Entitlement Authority.--
          [(1) Point of order.--It shall not be in order in 
        either the House of Representatives or the Senate to 
        consider any bill orjoint resolution (in the House of 
Representatives only, as reported), amendment, motion, or conference 
report that provides new entitlement authority that is to become 
effective during the current fiscal year.
          [(2) If any committee of the House of Representatives 
        or the Senate reports any bill or resolution which 
        provides new entitlement authority which is to become 
        effective during a fiscal year and the amount of new 
        budget authority which will be required for such fiscal 
        year if such bill or resolution is enacted as so 
        reported exceeds the appropriate allocation of new 
        budget authority reported under section 302(b) in 
        connection with the most recently agreed to concurrent 
        resolution on the budget for such fiscal year, such 
        bill or resolution shall then be referred to the 
        Committee on Appropriations of the Senate or may then 
        be referred to the Committee on Appropriations of the 
        House, as the case may be, with instructions to report 
        it, with the committee's recommendations, within 15 
        calendar days (not counting any day on which that House 
        is not in session) beginning with the day following the 
        day on which it is so referred. If the Committee on 
        Appropriations of either House fails to report a bill 
        or resolution referred to it under this paragraph 
        within such 15-day period, the committee shall 
        automatically be discharged from further consideration 
        of such bill or resolution and such bill or resolution 
        shall be placed on the appropriate calendar.
          [(3) The Committee on Appropriations of each House 
        shall have jurisdiction to report any bill or 
        resolution referred to it under paragraph (2) with an 
        amendment which limits the total amount of new spending 
        authority provided in such bill or resolution.]
  (a) Limitation on Direct Spending.--It shall not be in order 
in the House of Representatives or in the Senate to consider a 
bill or joint resolution, or an amendment, motion, or 
conference report that provides direct spending for a new 
program, unless such spending is limited to a period of 10 or 
fewer fiscal years.
  [(c)] (b) Exceptions.--
          (1) [Subsections (a) and (b)] Subsection (a) shall 
        not apply to new spending authority if the budget 
        authority for outlays which will result from such new 
        spending authority is derived--
                  (A) * * *

           *       *       *       *       *       *       *

          (2) [Subsections (a) and (b)] Subsection (a) shall 
        not apply to new authority described in those 
        subsections to the extent that--
                  (A) * * *

           *       *       *       *       *       *       *


                ANALYSIS BY CONGRESSIONAL BUDGET OFFICE

  Sec. 402. The Director of the Congressional Budget Office 
shall, to the extent practicable, prepare for each bill or 
resolution of a public character reported by any committee of 
the House of Representatives or the Senate (except the 
Committee on Appropriations of each House), or conference 
report thereon, and submit to such committee--
          (1) an estimate of the costs which would be incurred 
        in carrying out such [bill or resolution] bill, joint 
        resolution, or conference report in the fiscal year in 
        which it is to become effective and in each of the [4] 
        nine fiscal years following such fiscal year, together 
        with the basis for each such estimate;
          (2) a comparison of the estimates of costs described 
        in paragraph (1), with any available estimates of costs 
        made by such committee or by any Federal agency; [and]
          (3) a description of each method for establishing a 
        Federal financial commitment contained in such bill or 
        resolution[.]; and
          (4) A determination of whether such bill, joint 
        resolution, or conference report provides direct 
        spending.
The estimates, comparison, and description so submitted shall 
be included in the report accompanying such bill or resolution 
if timely submitted to such committee before such report is 
filed, or in the case of a conference report, shall be included 
in the joint explanatory statement of managers accompanying 
such conference report if timely submitted before such report 
is filed .

           *       *       *       *       *       *       *


 STUDY BY THE GENERAL ACCOUNTING OFFICE OF FORMS OF FEDERAL FINANCIAL 
         COMMITMENT THAT ARE NOT REVIEWED ANNUALLY BY CONGRESS

  Sec. 404. The General Accounting Office shall study those 
provisions of law which provide mandatory spending and report 
to the Congress its recommendations for the appropriate form of 
financing for activities or programs financed by such 
provisions not later than eighteen months after the effective 
date of this section. [Such report shall be revised from time 
to time.] Such report shall be revised at least once every five 
years and shall be transmitted to the chairman and ranking 
minority member of each committee of the House of 
Representatives and the Senate.

             OFF-BUDGET AGENCIES, PROGRAMS, AND ACTIVITIES

  Sec. 405. (a) Notwithstanding any other provision of law, 
budget authority, credit authority, and estimates of outlays 
and receipts for activities of the Federal budget which are 
off-budget immediately prior to the date of enactment of this 
section, not including activities of the Federal Old-Age and 
Survivors Insurance and Federal Disability Insurance Trust 
Funds, shall be included in a budget submitted pursuant to 
section 1105 of title 31, United States Code, and in a 
[concurrent] joint resolution on the budget reported pursuant 
to section 301 or section 304 of this Act and shall be 
considered, for purposes of this Act, budget authority, 
outlays, and spending authority in accordance with definitions 
set forth in this Act.

           *       *       *       *       *       *       *


      TITLE VI--BUDGETARY TREATMENT OF FEDERAL INSURANCE PROGRAMS

SEC. 601. SHORT TITLE.

  This title may be cited as the ``Federal Insurance Budgeting 
Act of 1999''.

SEC. 602. BUDGETARY TREATMENT.

  (a) President's Budget.--Beginning with fiscal year 2006, the 
budget of the Government pursuant to section 1105(a) of title 
31, United States Code, shall be based on the risk-assumed cost 
of Federal insurance programs.
  (b) Budget Accounting.--For any Federal insurance program--
          (1) the program account shall--
                  (A) pay the risk-assumed cost borne by the 
                taxpayer to the financing account, and
                  (B) pay actual insurance program 
                administrative costs;
          (2) the financing account shall--
                  (A) receive premiums and other income,
                  (B) pay all claims for insurance and receive 
                all recoveries,
                  (C) transfer to the program account on not 
                less than an annual basis amounts necessary to 
                pay insurance program administrative costs;
          (3) a negative risk-assumed cost shall be transferred 
        from the financing account to the program account, and 
        shall be transferred from the program account to the 
        general fund; and
          (4) all payments by or receipts of the financing 
        accounts shall be treated in the budget as a means of 
        financing.
  (c) Appropriations Required.--(1) Notwithstanding any other 
provision of law, insurance commitments may be made for fiscal 
year 2006 and thereafter only to the extent that new budget 
authority to cover their risk-assumed cost is provided in 
advance in an appropriation Act.
  (2) An outstanding insurance commitment shall not be modified 
in a manner that increases its risk-assumed cost unless budget 
authority for the additional cost has been provided in advance.
  (3) Paragraph (1) shall not apply to Federal insurance 
programs that constitute entitlements.
  (d) Reestimates.--The risk-assumed cost for a fiscal year 
shall be reestimated in each subsequent year. Such reestimate 
can equal zero. In the case of a positive reestimate, the 
amount of the reestimate shall be paid from the program account 
to the financing account. In the case of a negative reestimate, 
the amount of the reestimate shall be paid from the financing 
account to the program account, and shall be transferred from 
the program account to the general fund. Reestimates shall be 
displayed as a distinct and separately identified subaccount in 
the program account.
  (e) Administrative Expenses.--All funding for an agency's 
administration of a Federal insurance program shall be 
displayed as a distinct and separately identified subaccount in 
the program account.

SEC. 603. TIMETABLE FOR IMPLEMENTATION OF ACCRUAL BUDGETING FOR FEDERAL 
                    INSURANCE PROGRAMS.

  (a) Agency Requirements.--Agencies with responsibility for 
Federal insurance programs shall develop models to estimate 
their risk-assumed cost by year through the budget horizon and 
shall submit those models, all relevant data, a justification 
for critical assumptions, and the annual projected risk-assumed 
costs to OMB with their budget requests each year starting with 
the request for fiscal year 2002. Agencies will likewise 
provide OMB with annual estimates of modifications, if any, and 
reestimates of program costs.
  (b) Disclosure.--When the President submits a budget of the 
Government pursuant to section 1105(a) of title 31, United 
States Code, for fiscal year 2002, OMB shall publish a notice 
in the Federal Register advising interested persons of the 
availability of information describing the models, data 
(including sources), and critical assumptions (including 
explicit or implicit discount rate assumptions) that it or 
other executive branch entities would use to estimate the risk-
assumed cost of Federal insurance programs and giving such 
persons an opportunity to submit comments. At the same time, 
the chairman of the Committee on the Budget shall publish a 
notice for CBO in the Federal Register advising interested 
persons of the availability of information describing the 
models, data (including sources), and critical assumptions 
(including explicit or implicit discount rate assumptions) that 
it would use to estimate the risk-assumed cost of Federal 
insurance programs and giving such interested persons an 
opportunity to submit comments.
  (c) Revision.--(1) After consideration of comments pursuant 
to subsection (b), and in consultation with the Committees on 
the Budget of the House of Representatives and the Senate, OMB 
and CBO shall revise the models, data, and major assumptions 
they would use to estimate the risk-assumed cost of Federal 
insurance programs.
  (2) When the President submits a budget of the Government 
pursuant to section 1105(a) of title 31, United States Code, 
for fiscal year 2003, OMB shall publish a notice in the Federal 
Register advising interested persons of the availability of 
information describing the models, data (including sources), 
and critical assumptions (including explicit or implicit 
discount rate assumptions) that it or other executive branch 
entities used to estimate the risk-assumed cost of Federal 
insurance programs.
  (d) Display.--
          (1) In general.--For fiscal years 2003, 2004, and 
        2005 the budget submissions of the President pursuant 
        to section 1105(a) of title 31, United States Code, and 
        CBO's reports on the economic and budget outlook 
        pursuant to section 202(e)(1) and the President's 
        budgets, shall for display purposes only, estimate the 
        risk-assumed cost of existing or proposed Federal 
        insurance programs.
          (2) OMB.--The display in the budget submissions of 
        the President for fiscal years 2003, 2004, and 2005 
        shall include--
                  (A) a presentation for each Federal insurance 
                program in budget-account level detail of 
                estimates of risk-assumed cost;
                  (B) a summary table of the risk-assumed costs 
                of Federal insurance programs; and
                  (C) an alternate summary table of budget 
                functions and aggregates using risk-assumed 
                rather than cash-based cost estimates for 
                Federal insurance programs.
          (3) CBO.--In the second session of the 107th Congress 
        and the 108th Congress, CBO shall include in its 
        estimates under section 308, for display purposes only, 
        the risk-assumed cost of existing Federal insurance 
        programs, or legislation that CBO, in consultation with 
        the Committees on the Budget of the House of 
        Representatives and the Senate, determines would create 
        a new Federal insurance program.
  (e) OMB, CBO, and GAO Evaluations.--(1) Not later than 6 
months after the budget submission of the President pursuant to 
section 1105(a) of title 31, United States Code, for fiscal 
year 2005, OMB, CBO, and GAO shall each submit to the 
Committees on the Budget of the House of Representatives and 
the Senate a report that evaluates the advisability and 
appropriate implementation of this title.
  (2) Each report made pursuant to paragraph (1) shall address 
the following:
          (A) The adequacy of risk-assumed estimation models 
        used and alternative modeling methods.
          (B) The availability and reliability of data or 
        information necessary to carry out this title.
          (C) The appropriateness of the explicit or implicit 
        discount rate used in the various risk-assumed 
        estimation models.
          (D) The advisability of specifying a statutory 
        discount rate (such as the Treasury rate) for use in 
        risk-assumed estimation models.
          (E) The ability of OMB, CBO, or GAO, as applicable, 
        to secure any data or information directly from any 
        Federal agency necessary to enable it to carry out this 
        title.
          (F) The relationship between risk-assumed accrual 
        budgeting for Federal insurance programs and the 
        specific requirements of the Balanced Budget and 
        Emergency Deficit Control Act of 1985.
          (G) Whether Federal budgeting is improved by the 
        inclusion of risk-assumed cost estimates for Federal 
        insurance programs.
          (H) The advisability of including each of the 
        programs currently estimated on a risk-assumed cost 
        basis in the Federal budget on that basis.

SEC. 604. DEFINITIONS.

  For purposes of this title:
          (1) The term ``Federal insurance program'' means a 
        program that makes insurance commitments and includes 
        the list of such programs included in the joint 
        explanatory statement of managers accompanying the 
        conference report on the Comprehensive Budget Process 
        Reform Act of 1999.
          (2) The term ``insurance commitment'' means an 
        agreement in advance by a Federal agency to indemnify a 
        nonfederal entity against specified losses. This term 
        does not include loan guarantees as defined in title V 
        or benefit programs such as social security, medicare, 
        and similar existing social insurance programs.
          (3)(A) The term ``risk-assumed cost'' means the net 
        present value of the estimated cash flows to and from 
        the Government resulting from an insurance commitment 
        or modification thereof.
          (B) The cash flows associated with an insurance 
        commitment include--
                  (i) expected claims payments inherent in the 
                Government's commitment;
                  (ii) net premiums (expected premium 
                collections received from or on behalf of the 
                insured less expected administrative expenses);
                  (iii) expected recoveries; and
                  (iv) expected changes in claims, premiums, or 
                recoveries resulting from the exercise by the 
                insured of any option included in the insurance 
                commitment.
          (C) The cost of a modification is the difference 
        between the current estimate of the net present value 
        of the remaining cash flows under the terms of the 
        insurance commitment, and the current estimate of the 
        net present value of the remaining cash flows under the 
        terms of the insurance commitment as modified.
          (D) The cost of a reestimate is the difference 
        between the net present value of the amount currently 
        required by the financing account to pay estimated 
        claims and other expenditures and the amount currently 
        available in the financing account. The cost of a 
        reestimate shall be accounted for in the current year 
        in the budget of the Government pursuant to section 
        1105(a) of title 31, United States Code.
          (E) For purposes of this definition, expected 
        administrative expenses shall be construed as the 
        amount estimated to be necessary for the proper 
        administration of the insurance program. This amount 
        may differ from amounts actually appropriated or 
        otherwise made available for the administration of the 
        program.
          (4) The term ``program account'' means the budget 
        account for the risk-assumed cost, and for paying all 
        costs of administering the insurance program, and is 
        the account from which the risk-assumed cost is 
        disbursed to the financing account.
          (5) The term ``financing account'' means the 
        nonbudget account that is associated with each program 
        account which receives payments from or makes payments 
        to the program account, receives premiums and other 
        payments from the public, pays insurance claims, and 
        holds balances.
          (6) The term ``modification'' means any Government 
        action that alters the risk-assumed cost of an existing 
        insurance commitment from the current estimate of cash 
        flows. This includes any action resulting from new 
        legislation, or from the exercise of administrative 
        discretion under existing law, that directly or 
        indirectly alters the estimated cost of existing 
        insurance commitments.
          (7) The term ``model'' means any actuarial, 
        financial, econometric, probabilistic, or other 
        methodology used to estimatethe expected frequency and 
magnitude of loss-producing events, expected premiums or collections 
from or on behalf of the insured, expected recoveries, and 
administrative expenses.
          (8) The term ``current'' has the same meaning as in 
        section 250(c)(9) of the Balanced Budget and Emergency 
        Deficit Control Act of 1985.
          (9) The term ``OMB'' means the Director of the Office 
        of Management and Budget.
          (10) The term ``CBO'' means the Director of the 
        Congressional Budget Office.
          (11) The term ``GAO'' means the Comptroller General 
        of the United States.

SEC. 605. AUTHORIZATIONS TO ENTER INTO CONTRACTS; ACTUARIAL COST 
                    ACCOUNT.

  (a) Authorization of Appropriations.--There is authorized to 
be appropriated $600,000 for each of fiscal years 2000 through 
2005 to the Director of the Office of Management and Budget and 
each agency responsible for administering a Federal program to 
carry out this title.
  (b) Treasury Transactions With the Financing Accounts.--The 
Secretary of the Treasury shall borrow from, receive from, lend 
to, or pay the insurance financing accounts such amounts as may 
be appropriate. The Secretary of the Treasury may prescribe 
forms and denominations, maturities, and terms and conditions 
for the transactions described above. The authorities described 
above shall not be construed to supersede or override the 
authority of the head of a Federal agency to administer and 
operate an insurance program. All the transactions provided in 
this subsection shall be subject to the provisions of 
subchapter II of chapter 15 of title 31, United States Code. 
Cash balances of the financing accounts in excess of current 
requirements shall be maintained in a form of uninvested funds, 
and the Secretary of the Treasury shall pay interest on these 
funds.
  (c) Appropriation of Amount Necessary To Cover Risk-Assumed 
Cost of Insurance Commitments at Transition Date.--(1) A 
financing account is established on September 30, 2005, for 
each Federal insurance program.
  (2) There is appropriated to each financing account the 
amount of the risk-assumed cost of Federal insurance 
commitments outstanding for that program as of the close of 
September 30, 2005.
  (3) These financing accounts shall be used in implementing 
the budget accounting required by this title.

SEC. 606. EFFECTIVE DATE.

  (a) In General.--This title shall take effect immediately and 
shall expire on September 30, 2007.
  (b) Special Rule.--If this title is not reauthorized by 
September 30, 2007, then the accounting structure and budgetary 
treatment of Federal insurance programs shall revert to the 
accounting structure and budgetary treatment in effect 
immediately before the date of enactment of this title.

TITLE VII--PROGRAM REVIEW AND EVALUATION

           *       *       *       *       *       *       *


         CONTINUING STUDY OF ADDITIONAL BUDGET REFORM PROPOSALS

  Sec. 703. (a) The Committees on the Budget of the House of 
Representatives and the Senate shall study on a continuing 
basis proposals designed to improve and facilitate methods of 
congressional budgetmaking. The proposals to be studied shall 
include, but are not limited to, proposals for--
          (1) * * *

           *       *       *       *       *       *       *

          (3) establishing maximum and minimum time limitations 
        for program authorization; [and]
          (4) developing techniques of human resource 
        accounting and other means of providing noneconomic as 
        well as economic evaluation measures[.]; and
          (5) evaluating whether existing programs, projects, 
        and activities should be subject to discretionary 
        appropriations and establishing guidelines for 
        subjecting new or expanded programs, projects, and 
        activities to annual appropriation and recommend any 
        necessary changes in statutory enforcement mechanisms 
        and scoring conventions to effectuate such changes.
  (b) The Committee on the Budget of each House shall, [from 
time to time] during the One Hundred Sixth Congress, report to 
its House the results of the study carried on by it under 
subsection (a), together with its recommendations.

           *       *       *       *       *       *       *


TITLE IX--MISCELLANEOUS PROVISIONS; EFFECTIVE DATES

           *       *       *       *       *       *       *


                     EXERCISE OF RULEMAKING POWERS

  Sec. 904. (a) * * *

           *       *       *       *       *       *       *

  (c) Waivers.--
          (1) Permanent.--Sections 303(a), 305(b)(2), 
        305(c)(4), 305(e), 305(f), 306, 310(d)(2), 313, 904(c), 
        and 904(d) of this Act may be waived or suspended in 
        the Senate only by the affirmative vote of three-fifths 
        of the Members, duly chosen and sworn.

           *       *       *       *       *       *       *

  (d) Appeals.--
          (1) Procedure.--Appeals in the Senate from the 
        decisions of the Chair relating to any provision of 
        title III or IV or section 1017 shall, except as 
        otherwise provided therein, be limited to 1 hour, to be 
        equally divided between, and controlled by, the mover 
        and the manager of the resolution, [concurrent] joint 
        resolution, reconciliation bill, or rescission bill, as 
        the case may be.
          (2) Permanent.--An affirmative vote of three-fifths 
        of the Members, duly chosen and sworn, shall be 
        required in the Senate to sustain an appeal of the 
        ruling of the Chair on a pointof order raised under 
sections 303(a), 305(b)(2), 305(c)(4), 305(e), 305(f), 306, 310(d)(2), 
313, 904(c), and 904(d) of this Act.

           *       *       *       *       *       *       *

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TITLE 31, UNITED STATES CODE

           *       *       *       *       *       *       *


Subtitle II--The Budget Process

           *       *       *       *       *       *       *


CHAPTER 11--THE BUDGET AND FISCAL, BUDGET, AND PROGRAM INFORMATION

           *       *       *       *       *       *       *



Sec. 1105. Budget contents and submission to Congress

  (a) [On or after the first Monday in January but not later 
than the first Monday in February of each year the President 
shall submit a budget of the United States Government for the 
following fiscal year. Each budget shall include a budget 
message and summary and supporting information.] On or after 
the first Monday in January but not later than the first Monday 
in February of each year the President shall submit a budget of 
the United States Government for the following fiscal year 
which shall set forth the following levels:
          (A) totals of new budget authority and outlays;
          (B) total Federal revenues and the amount, if any, by 
        which the aggregate level of Federal revenues should be 
        increased or decreased by bills and resolutions to be 
        reported by the appropriate committees;
          (C) the surplus or deficit in the budget;
          (D) subtotals of new budget authority and outlays for 
        nondefense discretionary spending, defense 
        discretionary spending, direct spending, and interest; 
        and for fiscal years to which the amendments made by 
        title II of the Comprehensive Budget Process Reform Act 
        of 1999 apply, subtotals of new budget authority and 
        outlays for emergencies; and
          (E) the public debt.
Each budget submission shall include a budget message and 
summary and supporting information and, as a separately 
delineated statement, the levels required in the preceding 
sentence for at least each of the 9 ensuing fiscal years. The 
President shall include in each budget submission the 
following:
          (1)  * * *

           *       *       *       *       *       *       *

          [(5) except as provided in subsection (b) of this 
        section, estimated expenditures and proposed 
        appropriations the President decides are necessary to 
        support the Government in the fiscal year for which the 
        budget is submitted and the 4 fiscal years after that 
        year.
          [(6) estimated receipts of the Government in the 
        fiscal year for which the budget is submitted and the 4 
        fiscal years after that year under--
                  [(A) laws in effect when the budget is 
                submitted; and
                  [(B) proposals in the budget to increase 
                revenues.]
          (5) except as provided in subsection (b) of this 
        section, estimated expenditures and appropriations for 
        the current year and estimated expenditures and 
        proposed appropriations the President decides are 
        necessary to support the Government in the fiscal year 
        for which the budget is submitted and the 4 fiscal 
        years following that year, and, except for detailed 
        budget estimates, the percentage change from the 
        current year to the fiscal year for which the budget is 
        submitted for estimated expenditures and for 
        appropriations.
          (6) estimated receipts of the Government in the 
        current year and the fiscal year for which the budget 
        is submitted and the 4 fiscal years after that year 
        under--
                  (A) laws in effect when the budget is 
                submitted; and
                  (B) proposals in the budget to increase 
                revenues,
        and the percentage change (in the case of each category 
        referred to in subparagraphs (A) and (B)) between the 
        current year and the fiscal year for which the budget 
        is submitted and between the current year and each of 
        the 9 fiscal years after the fiscal year for which the 
        budget is submitted.

           *       *       *       *       *       *       *

          [(12) for each proposal in the budget for legislation 
        that would establish or expand a Government activity or 
        function, a table showing--
                  [(A) the amount proposed in the budget for 
                appropriation and for expenditure because of 
                the proposal in the fiscal year for which the 
                budget is submitted; and
                  [(B) the estimated appropriation required 
                because of the proposal for each of the 4 
                fiscal years after that year that the proposal 
                will be in effect.]
          (12) for each proposal in the budget for legislation 
        that would establish or expand a Government activity or 
        function, a table showing--
                  (A) the amount proposed in the budget for 
                appropriation and for expenditure because of 
                the proposal in the fiscal year for which the 
                budget is submitted;
                  (B) the estimated appropriation required 
                because of the proposal for each of the 4 
                fiscal years after that year that the proposal 
                will be in effect; and
                  (C) the estimated amount for the same 
                activity or function, if any, in the current 
                fiscal year,
        and, except for detailed budget estimates, the 
        percentage change (in the case of each category 
        referred to in subparagraphs (A), (B), and (C)) between 
        the current year and the fiscal year for which the 
        budget is submitted.

           *       *       *       *       *       *       *

          (18) a comparison of the total amount of new budget 
        authority and budget outlays for the prior fiscal year, 
        estimated in the budget submitted for that year, for 
        each major program having relatively uncontrollable 
        outlays with the total amount of outlays for that 
        program in that year.

           *       *       *       *       *       *       *

          (33) a justification for not subjecting each new 
        program, project, or activity to discretionary 
        appropriations.
          (34) an analysis based upon current law and an 
        analysis based upon the policy assumptions underlying 
        the budget submission for every fifth year of the 
        period of 75 fiscal years beginning with such fiscal 
        year, of the estimated levels of total new budget 
        authority and total budget outlays, estimated revenues, 
        estimated surpluses and deficits, and, for social 
        security, medicare, medicaid, and all other direct 
        spending, estimated levels of total new budget 
        authority and total budget outlays; and a specification 
        of its underlying assumptions and a sensitivity 
        analysis of factors that have a significant effect on 
        the projections made in each analysis; and a comparison 
        of the effects of each of the two analyses on the 
        economy, including such factors as inflation, foreign 
        investment, interest rates, and economic growth.
          (35) a comparison of levels of estimated expenditures 
        and proposed appropriations for each function and 
        subfunction in the current fiscal year and the fiscal 
        year for which the budget is submitted, along with the 
        proposed increase or decrease of spending in percentage 
        terms for each function and subfunction.
          (36) a table on sources of growth in total direct 
        spending under current law and as proposed in this 
        budget submission for the budget year and the ensuing 9 
        fiscal years, which shall include changes in outlays 
        attributable to the following: cost-of-living 
        adjustments; changes in the number of program 
        recipients; increases in medical care prices, 
        utilization and intensity of medical care; and residual 
        factors.

           *       *       *       *       *       *       *

  (f) The budget transmitted pursuant to subsection (a) for a 
fiscal year shall be prepared in a manner consistent with the 
requirements of the Balanced Budget and Emergency Deficit 
Control Act of 1985 that apply to that and subsequent fiscal 
years. Such budget submission shall also comply with the 
requirements of section 317(b) of the Congressional Budget Act 
of 1974 and, in the case of any budget authority requested for 
an emergency, such submission shall include a detailed 
justification of why such emergency is an emergency within the 
meaning of section 3(12) of the Congressional Budget Act of 
1974.

           *       *       *       *       *       *       *


Sec. 1109. Current programs and activities estimates

  (a) On or before the first Monday after January 3 of each 
year (on or before February 5 in 1986), the President shall 
submit to both Houses of Congress the estimated budget outlays 
and proposed budget authority that would be included in the 
budget for the following fiscal year if programs and activities 
of the United States Government were carried on during that 
year at the same level as the current fiscal year without a 
change in policy. For discretionary spending, these estimates 
shall assume the levels set forth in the discretionary spending 
limits under section 251(c) of the Balanced Budget and 
Emergency Deficit Control Act of 1985, as adjusted, for the 
appropriate fiscal years (and if no such limits are in effect, 
these estimates shall assume the adjusted levels for the most 
recent fiscal year for which such levels were in effect). The 
President shall state the estimated budget outlays and proposed 
budget authority by function and subfunction under the 
classifications in the budget summary table under the heading 
``Budget Authority and Outlays by Function and Agency'', by 
major programs in each function, and by agency. The President 
also shall include a statement of the economic and program 
assumptions on which those budget outlays and budget authority 
are based, including inflation, real economic growth, and 
unemployment rates, program caseloads, and pay increases.

           *       *       *       *       *       *       *


                       CHAPTER 13--APPROPRIATIONS

                          SUBCHAPTER I--GENERAL

Sec.
1301.  Application.
     * * * * * * *
1311.  Continuing appropriations.
     * * * * * * *

                         Subchapter I--General

Sec. 1311. Continuing appropriations

  (a)(1) If any regular appropriation bill for a fiscal year 
does not become law prior to the beginning of such fiscal year 
or a joint resolution making continuing appropriations is not 
in effect, there is appropriated, out of any moneys in the 
Treasury not otherwise appropriated, and out of applicable 
corporate or other revenues, receipts, and funds, such sums as 
may be necessary to continue any program, project, or activity 
for which funds were provided in the preceding fiscal year--
          (A) in the corresponding regular appropriation Act 
        for such preceding fiscal year; or
          (B) if the corresponding regular appropriation bill 
        for such preceding fiscal year did not become law, then 
        in a joint resolution making continuing appropriations 
        for such preceding fiscal year.
  (2)(A) Except as provided by subparagraph (B), appropriations 
and funds made available, and authority granted, for a program, 
project, or activity for any fiscal year pursuant to this 
section shall be at a rate of operations not in excess of the 
rate of operations provided for in the regular appropriation 
Act providing for such program, project, or activity for the 
preceding fiscal year, or in the absence of such an Act, the 
rate of operations provided for suchprogram, project, or 
activity pursuant to a joint resolution making continuing 
appropriations for such preceding fiscal year (but not including 
amounts for such program, project, or activity designated as an 
emergency for that fiscal year before the date of enactment of this 
section).
  (B) The applicable rate of operations for a program, project, 
or activity pursuant to this section shall exclude amounts--
          (i) for which any adjustment was made under section 
        251(b)(2)(A) or section 252(e) of the Balanced Budget 
        and Emergency Deficit Control Act of 1985 before the 
        date of enactment of this section; or
          (ii) for which any adjustment is made under section 
        251(b)(2)(D) or (E) of such Act.
  (3) Appropriations and funds made available, and authority 
granted, for any fiscal year pursuant to this section for a 
program, project, or activity shall be available for the period 
beginning with the first day of a lapse in appropriations and 
ending with the earlier of--
          (A) the date on which the applicable regular 
        appropriation bill for such fiscal year becomes law 
        (whether or not such law provides for such program, 
        project, or activity) or a continuing resolution making 
        appropriations becomes law, as the case may be, or
          (B) the last day of such fiscal year.
  (b) An appropriation or funds made available, or authority 
granted, for a program, project, or activity for any fiscal 
year pursuant to this section shall be subject to the terms and 
conditions imposed with respect to the appropriation made or 
funds made available for the preceding fiscal year, or 
authority granted for such program, project, or activity under 
current law.
  (c) Appropriations and funds made available, and authority 
granted, for any program, project, or activity for any fiscal 
year pursuant to this section shall cover all obligations or 
expenditures incurred for such program, project, or activity 
during the portion of such fiscal year for which this section 
applies to such program, project, or activity.
  (d) Expenditures made for a program, project, or activity for 
any fiscal year pursuant to this section shall be charged to 
the applicable appropriation, fund, or authorization whenever a 
regular appropriation bill or a joint resolution making 
continuing appropriations until the end of a fiscal year 
providing for such program, project, or activity for such 
period becomes law.
  (e) This section shall not apply to a program, project, or 
activity during a fiscal year if any other provision of law 
(other than an authorization of appropriations)--
          (1) makes an appropriation, makes funds available, or 
        grants authority for such program, project, or activity 
        to continue for such period, or
          (2) specifically provides that no appropriation shall 
        be made, no funds shall be made available, or no 
        authority shall be granted for such program, project, 
        or activity to continue for such period; or
  (f) For purposes of this section, the term ``regular 
appropriation bill'' means any annual appropriation bill making 
appropriations, otherwise making funds available, or granting 
authority, for any of the following categories of programs, 
projects, and activities:
          (1) Agriculture, rural development, and related 
        agencies programs.
          (2) The Departments of Commerce, Justice, and State, 
        the judiciary, and related agencies.
          (3) The Department of Defense.
          (4) The government of the District of Columbia and 
        other activities chargeable in whole or in part against 
        the revenues of the District.
          (5) The Departments of Labor, Health and Human 
        Services, and Education, and related agencies.
          (6) The Department of Housing and Urban Development, 
        and sundry independent agencies, boards, commissions, 
        corporations, and offices.
          (7) Energy and water development.
          (8) Foreign assistance and related programs.
          (9) The Department of the Interior and related 
        agencies.
          (10) Military construction.
          (11) The Department of Transportation and related 
        agencies.
          (12) The Treasury Department, the U.S. Postal 
        Service, the Executive Office of the President, and 
        certain independent agencies.
          (13) The legislative branch.

           *       *       *       *       *       *       *

                              ----------                              


RULES OF THE HOUSE OF REPRESENTATIVES

           *       *       *       *       *       *       *


                                 RULE X

                       Organization of Committees

Committees and their legislative jurisdictions
  1. There shall be in the House the following standing 
committees, each of which shall have the jurisdiction and 
related functions assigned by this clause and clauses 2, 3, and 
4. All bills, resolutions, and other matters relating to 
subjects within the jurisdiction of the standing committees 
listed in this clause shall be referred to those committees, in 
accordance with clause 2 of rule XII, as follows:
          (a)  * * *

           *       *       *       *       *       *       *

          (e) Committee on the Budget.
                  (1) [Concurrent] Joint resolutions on the 
                budget (as defined in section 3(4) of the 
                Congressional Budget Act of 1974), other 
                matters required to be referred to the 
                committee under titles III and IV of that Act, 
                and other measures setting forth appropriate 
                levels of budget totals for the United States 
                Government.

           *       *       *       *       *       *       *

General oversight responsibilities
  2. (a)  * * *

           *       *       *       *       *       *       *

  (d)(1) Not later than February 15 of the first session of a 
Congress, each standing committee shall, in a meeting that is 
open to the public and with a quorum present, adopt its 
oversight plan for that Congress. Such plan shall be submitted 
simultaneously to the Committee on Government Reform and to the 
Committee on House Administration. In developing its plan each 
committee shall, to the maximum extent feasible--
          (A)  * * *
          [(B) give priority consideration to including in its 
        plan the review of those laws, programs, or agencies 
        operating under permanent budget authority or permanent 
        statutory authority; and
          [(C) have a view toward ensuring that all significant 
        laws, programs, or agencies within its jurisdiction are 
        subject to review every 10 years.]
          (B) provide in its plans a specific timetable for its 
        review of those laws, programs, or agencies within its 
        jurisdiction, including those that operate under 
        permanent budget authority or permanent statutory 
        authority and such timetable shall demonstrate that 
        each law, program, or agency within the committee's 
        jurisdiction will be reauthorized at least once every 
        ten years.

           *       *       *       *       *       *       *

Additional functions of committees
  4. (a)(1)  * * *
  [(2) Pursuant to section 401(b)(2) of the Congressional 
Budget Act of 1974, when a committee reports a bill or joint 
resolution that provides new entitlement authority as defined 
in section 3(9) of that Act, and enactment of the bill or joint 
resolution, as reported, would cause a breach of the 
committee's pertinent allocation of new budget authority under 
section 302(a) of that Act, the bill or joint resolution may be 
referred to the Committee on Appropriations with instructions 
to report it with recommendations (which may include an 
amendment limiting the total amount of new entitlement 
authority provided in the bill or joint resolution). If the 
Committee on Appropriations fails to report a bill or joint 
resolution so referred within 15 calendar days (not counting 
any day on which the House is not in session), the committee 
automatically shall be discharged from consideration of the 
bill or joint resolution, and the bill or joint resolution 
shall be placed on the appropriate calendar.]
  [(3)] (2) In addition, the Committee on Appropriations shall 
study on a continuing basis those provisions of law that (on 
the first day of the first fiscal year for which the 
congressional budget process is effective) provide spending 
authority or permanent budget authority and shall report to the 
House [from time to time] at least once each Congress its 
recommendations for terminating or modifying such provisions.
  [(4)] (3) In the manner provided by section 302 of the 
Congressional Budget Act of 1974, the Committee on 
Appropriations (after consulting with the Committee on 
Appropriations of the Senate) shall subdivide any allocations 
made to it in the joint explanatory statement accompanying the 
conference report on such [concurrent] joint resolution, and 
promptly report the subdivisions to the House as soon as 
practicable after a concurrent resolution on the budget for a 
fiscal year is agreed to.

           *       *       *       *       *       *       *

  (b) The Committee on the Budget shall--
          (1)  * * *
          (2) hold hearings and receive testimony from Members, 
        Senators, Delegates, the Resident Commissioner, and 
        such appropriate representatives of Federal departments 
        and agencies, the general public, and national 
        organizations as it considers desirable in developing 
        [concurrent] joint resolutions on the budget for each 
        fiscal year;

           *       *       *       *       *       *       *

  (e)(1)  * * *
  (2) Each standing committee shall review [from time to time] 
at least once every ten years each continuing program within 
its jurisdiction for which appropriations are not made annually 
to ascertain whether the program should be modified to provide 
for annual appropriations, and will provide specific 
information in any report accompanying such bills and joint 
resolutions to the greatest extent practicable to justify why 
the programs, projects, and activities involved would not be 
subject to annual appropriation.
  (f)(1) Each standing committee shall submit to the Committee 
on the Budget not later than six weeks after the President 
submits his budget, or at such time as the Committee on the 
Budget may request--
          (A) its views and estimates with respect to all 
        matters to be set forth in the [concurrent] joint 
        resolution on the budget for the ensuing fiscal year 
        that are within its jurisdiction or functions; and

           *       *       *       *       *       *       *

  (2) The views and estimates submitted by the Committee on 
Ways and Means under subparagraph (1) shall include a specific 
recommendation, made after holding public hearings, as to the 
appropriate level of the public debt that should be set forth 
in the [concurrent] joint resolution on the budget and serve as 
the basis for an increase or decrease in the statutory limit on 
such debt under the procedures provided by rule XXIII.

           *       *       *       *       *       *       *


                                RULE XI.

           Procedures of Committees and Unfinished Business.

In general
  1. (a)  * * *

           *       *       *       *       *       *       *

  (d)(1)  * * *

           *       *       *       *       *       *       *

  (4) Such report shall include a summary of and justifications 
for all bills and joint resolutions reported by such committee 
that--
          (A) were considered before the adoption of the 
        appropriate budget resolution and did not fall within 
        an exception set forth in section 303(b) of the 
        Congressional Budget Act of 1974;
          (B) exceeded its allocation under section 302(a) of 
        such Act or breached an aggregate level in violation of 
        section 311 of such Act; or
          (C) contained provisions in violation of section 
        401(a) of such Act pertaining to indefinite direct 
        spending authority.
Such report shall also specify the total amount by which 
legislation reported by that committee exceeded its allocation 
under section 302(a) or breached the revenue floor under 
section 311(a) of such Act for each fiscal year during that 
Congress.
  [(4)] (5) After an adjournment sine die of the last regular 
session of a Congress, the chairman of a committee may file an 
activities report under subparagraph (1) with the Clerk at any 
time and without approval of the committee, provided that--
          (A) a copy of the report has been available to each 
        member of the committee for at least seven calendar 
        days; and
          (B) the report includes any supplemental, minority, 
        or additional views submitted by a member of the 
        committee.

           *       *       *       *       *       *       *


                               RULE XIII.

                    Calendars and Committee Reports.

Calendars
  1.  * * *

           *       *       *       *       *       *       *

Content of reports
  3. (a)  * * *

           *       *       *       *       *       *       *

  (d) Each report of a committee on a public bill or public 
joint resolution shall contain the following:
          (1)  * * *
          (2)(A) An estimate by the committee of the costs that 
        would be incurred in carrying out the bill or joint 
        resolution in the fiscal year in which it is reported 
        and in each of the [five] 10 fiscal years following 
        that fiscal year (or for the authorized duration of any 
        program authorized by the bill or joint resolution if 
        less than [five] 10 years);

           *       *       *       *       *       *       *

          (4) A budget compliance statement prepared by the 
        chairman of the Committee on the Budget, if timely 
        submitted prior to the filing of the report, which 
        shall include assessment by such chairman as to whether 
        the bill or joint resolution complies with the 
        requirements of sections 302, 303, 306, 311, and 401 of 
        the Congressional Budget Act of 1974 and may include 
        the budgetary implications of that bill or joint 
        resolution under section 251 or 252 of the Balanced 
        Budget and Emergency Deficit Control Act of 1985, as 
        applicable.
Privileged reports by the Committee on Rules
  6. (a)  * * *

           *       *       *       *       *       *       *

  (h) It shall not be in order to consider any resolution from 
the Committee on Rules for the consideration of any reported 
bill or joint resolution which waives section 302, 303, 311, or 
401 of the Congressional Budget Act of 1974, unless the report 
accompanying such resolution includes a description of the 
provision proposed to be waived, an identification of the 
section being waived, the reasons why such waiver should be 
granted, and an estimated cost of the provisions to which the 
waiver applies.

                              RULE XVIII.

      The Committee of the Whole House on the State of the Union.

Resolving into the Committee of the Whole
  1.  * * *

           *       *       *       *       *       *       *

Reading for amendment
  5. (a)  * * *

           *       *       *       *       *       *       *

  (c)(1) In the Committee of the Whole, an amendment only to 
subject a new program which provides direct spending to 
discretionary appropriations, if offered by the chairman of the 
Committee on the Budget (or his designee) or the chairman of 
the Committee of Appropriations (or his designee), may be 
precluded from consideration only by the specific terms of a 
special order of the House. Any such amendment, if offered, 
shall be debatable for twenty minutes equally divided and 
controlled by the proponent of the amendment and a Member 
opposed and shall not be subject to amendment.
  (2) As used in subparagraph (1), the term ``direct spending'' 
has the meaning given such term in section 3(11) of the 
Congressional Budget and Impoundment Control Act of 1974.

           *       *       *       *       *       *       *

Concurrent Joint resolution on the budget
  10. (a) At the conclusion of general debate in the Committee 
of the Whole House on the state of the Union on a [concurrent] 
joint resolution on the budget under section 305(a) of the 
Congressional Budget Act of 1974, the [concurrent] joint 
resolution shall be considered as read for amendment.
  (b) It shall not be in order in the House or in the Committee 
of the Whole House on the state of the Union to consider an 
amendment to a [concurrent] joint resolution on the budget, or 
an amendment thereto, unless the [concurrent] joint resolution, 
as amended by such amendment or amendments--
          (1) would be mathematically consistent except as 
        limited by paragraph (c); and
          (2) would contain all the matter set forth in 
        paragraphs (1) through [(5)] (6) of section 301(a) of 
        the Congressional Budget Act of 1974.
  [(c)(1) Except as specified in subparagraph (2), it shall not 
be in order in the House or in the Committee of the Whole House 
on the state of the Union to consider an amendment to a 
concurrent resolution on the budget, or an amendment thereto, 
that proposes to change the amount of the appropriate level of 
the public debt set forth in the concurrent resolution, as 
reported.
  [(2) Amendments to achieve mathematical consistency under 
section 305(a)(5) of the Congressional Budget Act of 1974, if 
offered by direction of the Committee on the Budget, may 
propose to adjust the amount of the appropriate level of the 
public debt set forth in the concurrent resolution, as 
reported, to reflect changes made in other figures contained in 
the concurrent resolution.]

           *       *       *       *       *       *       *


                                RULE XX.


                        Voting and Quorum Calls.

  1.  * * *

           *       *       *       *       *       *       *

Automatic yeas and nays
  10. The yeas and nays shall be considered as ordered when the 
Speaker puts the question on passage of a bill or joint 
resolution, or on adoption of a conference report, making 
general appropriations, or increasing Federal income tax rates 
(within the meaning of clause 5 of rule XXI), or on final 
adoption of a [concurrent] joint resolution on the budget or 
conference report thereon.

           *       *       *       *       *       *       *


                               RULE XXI.


                     Restrictions on Certain Bills.

Reservation of certain points of order
  1.  * * *
General appropriation bills and amendments
  2. (a)  * * *

           *       *       *       *       *       *       *

  [(e) A provision other than an appropriation designated an 
emergency under section 251(b)(2) or section 252(e) of the 
Balanced Budget and Emergency Deficit Control Act, a rescission 
of budget authority, or a reduction in direct spending or an 
amount for a designated emergency may not be reported in an 
appropriation bill or joint resolution containing an emergency 
designation under section 251(b)(2) or section 252(e) of such 
Act and may not be in order as an amendment thereto.]
  [(f)] (e) During the reading of an appropriation bill for 
amendment in the Committee of the Whole House on the state of 
the Union, it shall be in order to consider en bloc amendments 
proposing only to transfer appropriations among objects in the 
bill without increasing the levels of budget authority or 
outlays in the bill. When considered en bloc under this 
paragraph, such amendments may amend portions of the bill not 
yet read for amendment (following disposition of any points of 
order against such portions) and is not subject to a demand for 
division of the question in the House or in the Committee of 
the Whole.]

           *       *       *       *       *       *       *

  6. It shall not be in order to consider any bill, joint 
resolution, amendment, or conference report that authorizes the 
appropriation of new budget authority (as defined in section 
3(2)(C) of the Congressional Budget and Impoundment Control Act 
of 1974) for a new program, unless such authorization is 
specifically provided for a period of 10 or fewer fiscal years.

           *       *       *       *       *       *       *


                              [RULE XXIII.

                    [Statutory Limit on Public Debt.

  [1. Upon adoption by Congress of a concurrent resolution on 
the budget under section 301 or 304 of the Congressional Budget 
Act of 1974 that sets forth, as the appropriate level of the 
public debt for the period to which the concurrent resolution 
relates, an amount that is different from the amount of the 
statutory limit on the public debt that otherwise would be in 
effect for that period, the Clerk shall prepare an engrossment 
of a joint resolution increasing or decreasing, as the case may 
be, the statutory limit on the public debt in the form 
prescribed in clause 2. Upon engrossment of the joint 
resolution, the vote by which the concurrent resolution on the 
budget was finally agreed to in the House shall also be 
considered as a vote on passage of the joint resolution in the 
House, and the joint resolution shall be considered as passed 
by the House and duly certified and examined. The engrossed 
copy shall be signed by the Clerk and transmitted to the Senate 
for further legislative action.
  [2. The matter after the resolving clause in a joint 
resolution described in clause 1 shall be as follows: ``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 `$__'.'', with 
the blank being filled with a dollar limitation equal to the 
appropriate level of the public debt set forth pursuant to 
section 301(a)(5) of the Congressional Budget Act of 1974 in 
the relevant concurrent resolution described in clause 1. If an 
adopted concurrent resolution under clause 1 sets forth 
different appropriate levels of the public debt for separate 
periods, only one engrossed joint resolution shall be prepared 
under clause 1; and the blank referred to in the preceding 
sentence shall be filled with the limitation that is to apply 
for each period.
  [3. (a) The report of the Committee on the Budget on a 
concurrent resolution described in clause 1 and the joint 
explanatory statement of the managers on a conference report to 
accompany such a concurrent resolution each shall contain a 
clear statement of the effect the eventual enactment of a joint 
resolution engrossed under this rule would have on the 
statutory limit on the public debt.
  [(b) It shall not be in order for the House to consider a 
concurrent resolution described in clause 1, or a conference 
report thereon,unless the report of the Committee on the Budget 
or the joint explanatory statement of the managers complies with 
paragraph (a).
  [4. Nothing in this rule shall be construed as limiting or 
otherwise affecting--
          [(a) the power of the House or the Senate to consider 
        and pass bills or joint resolutions, without regard to 
        the procedures under clause 1, that would change the 
        statutory limit on the public debt; or
          [(b) the rights of Members, Delegates, the Resident 
        Commissioner, or committees with respect to the 
        introduction, consideration, and reporting of such 
        bills or joint resolutions.
  [5. In this rule the term ``statutory limit on the public 
debt'' means the maximum face amount of obligations issued 
under authority of chapter 31 of title 31, United States Code, 
and obligations guaranteed as to principal and interest by the 
United States (except such guaranteed obligations as may be 
held by the Secretary of the Treasury), as determined under 
section 3101(b) of such title after the application of section 
3101(a) of such title, that may be outstanding at any one 
time.]
                              ----------                              


       BALANCED BUDGET AND EMERGENCY DEFICIT CONTROL ACT OF 1985


  PART C--EMERGENCY POWERS TO ELIMINATE DEFICITS IN EXCESS OF MAXIMUM 
                             DEFICIT AMOUNT


SEC. 250. TABLE OF CONTENTS; STATEMENT OF BUDGET ENFORCEMENT THROUGH 
                    SEQUESTRATION; DEFINITIONS.

  (a)  * * *

           *       *       *       *       *       *       *

  (c) Definitions.--
  As used in this part:
          (1)  * * *

           *       *       *       *       *       *       *

          (20) The term ``on-budget surplus'' means, with 
        respect to a fiscal year, the amount by which receipts 
        exceed outlays for all spending and receipt accounts of 
        the United States Government that are designated as on-
        budget. Such term does not include outlays and receipts 
        of the Federal Old-Age and Survivors Insurance Trust 
        Fund, the Federal Disability Insurance Trust Fund, or 
        any other off-budget entity.

SEC. 251. ENFORCING DISCRETIONARY SPENDING LIMITS.

  (a)  * * *
  (b) Adjustments to Discretionary Spending Limits.--
          (1)  * * *
          (2) Sequestration reports.--When OMB submits a 
        sequestration report under section 254 (e), (f), or (g) 
        for a fiscal year, OMB shall calculate, and the 
        sequestration report and subsequent budgets submitted 
        by the President under section 1105(a) of title 31, 
        United States Code, shall include adjustments to 
        discretionary spending limits (and those limits as 
        adjusted) for the fiscal year and each succeeding year 
        through 2002, as follows:
                  [(A) Emergency appropriations.--If, for any 
                fiscal year, appropriations for discretionary 
                accounts are enacted that the President 
                designates as emergency requirements and that 
                the Congress so designates in statute, the 
                adjustment shall be the total of such 
                appropriations in discretionary accounts 
                designated as emergency requirements and the 
                outlays flowing in all fiscal years from such 
                appropriations. This subparagraph shall not 
                apply to appropriations to cover agricultural 
                crop disaster assistance.]

           *       *       *       *       *       *       *

                  [(B)] (A) Special outlay allowance.--If, in 
                any fiscal year, outlays for a category exceed 
                the discretionary spending limit for that 
                category but new budget authority does not 
                exceed its limit for that category (after 
                application of the first step of a 
                sequestration described in subsection (a)(2), 
                if necessary), the adjustment in outlays for a 
                fiscal year is the amount of the excess but not 
                to exceed 0.5 percent of the sum of the 
                adjusted discretionary spending limits on 
                outlays for that fiscal year.
                  [(C)] (B) Continuing disability reviews.--(i) 
                 * * *

           *       *       *       *       *       *       *

                  [(D)] (C) Allowance for imf.--If an 
                appropriation bill or joint resolution is 
                enacted for a fiscal year through 2002 that 
                includes an appropriation with respect to 
                clause (i) or (ii), the adjustment shall be the 
                amount of budget authority in the measure that 
                is the dollar equivalent of the Special Drawing 
                Rights with respect to--
                          (i)  * * *

           *       *       *       *       *       *       *

                  [(E)] (D) Allowance for international 
                arrearages.--
                          (i)  * * *

           *       *       *       *       *       *       *

                  [(F)] (E) EITC compliance initiative.--If an 
                appropriation bill or joint resolution is 
                enacted for a fiscal year that includes an 
                appropriation for an earned income tax credit 
                compliance initiative, the adjustment shall be 
                the amount of budget authority in that measure 
                for that initiative and the outlays flowing in 
                all fiscal years from that budget authority, 
                but not to exceed--
                          (i)  * * *

           *       *       *       *       *       *       *

                  [(G)] (F) Adoption incentive payments.--
                Whenever a bill or joint resolution making 
                appropriations for fiscal year 1999, 2000, 
                2001, 2002, or 2003 is enacted that specifies 
                an amount for adoption incentive payments 
                pursuant to this part for the Department of 
                Health and Human 
                Services--
                          (i) * * *
                  (G) Discretionary authorization offsets.--If 
                an Act other than an appropriation Act includes 
                any provision reducing direct spending and 
                specifically identifies any such provision as 
                an offset pursuant to section 252(e), the 
                adjustments shall be an increase in the 
                discretionary spending limits for budget 
                authority and outlays in each fiscal year equal 
                to the amount of the budget authority and 
                outlay reductions, respectively, achieved by 
                the specified offset in that fiscal year, 
                except that the adjustments for the budget year 
                in which the offsetting provision takes effect 
                shall not exceed the amount of discretionary 
                new budget authority provided for the new 
                program (authorized in that Act) in an Act 
                making discretionary appropriations and the 
                outlays flowing therefrom.

           *       *       *       *       *       *       *


SEC. 252. ENFORCING PAY-AS-YOU-GO.

  [(a) Purpose.--The purpose of this section is to assure that 
any legislation enacted before October 1, 2002, affecting 
direct spending or receipts that increases the deficit will 
trigger an offsetting sequestration.
  [(b) Sequestration.--
          [(1) Timing.--Not later than 15 calendar days after 
        the date Congress adjourns to end a session and on the 
        same day as a sequestration (if any) under section 251 
        or 253, there shall be a sequestration to offset the 
        amount of any net deficit increase caused by all direct 
        spending and receipts legislation enacted before 
        October 1, 2002, as calculated under paragraph (2).
          [(2) Calculation of deficit increase.--OMB shall 
        calculate the amount of deficit increase or decrease by 
        adding--
                  [(A) all OMB estimates for the budget year of 
                direct spending and receipts legislation 
                transmitted under subsection (d);
                  [(B) the estimated amount of savings in 
                direct spending programs applicable to budget 
                year resulting from the prior year's 
                sequestration under this section or section 
                253, if any, as published in OMB's final 
                sequestration report for that prior year; and
                  [(C) any net deficit increase or decrease in 
                the current year resulting from all OMB 
                estimates for the current year of direct 
                spending and receipts legislation transmitted 
                under subsection (d) that were not reflected in 
                the final OMB sequestration report for the 
                current year.]
  (a) Purpose.--The purpose of this section is to trigger an 
offsetting sequestration in the amount by which any excess of 
decreases in receipts and increases in direct spending over 
increases in receipts and decreases in direct spending, caused 
by all direct spending and receipts legislation enacted prior 
to October 1, 2002, exceeds estimates of the on-budget surplus.
  (b) Sequestration.--
          (1) Timing.--Not later than 15 calendar days after 
        the date Congress adjourns to end a session and on the 
        same day as a sequestration (if any) under section 251, 
        there shall be a sequestration to offset an amount 
        equal to--
                  (A) any excess of decreases in receipts and 
                increases in direct spending over increases in 
                receipts and decreases in direct spending for 
                legislation enacted prior to October 1, 2002; 
                minus
                  (B) the estimated on-budget surplus,
        as calculated under paragraph (2).
          (2) Calculation of sequestration.--OMB shall 
        calculate the amount of the sequestration by adding--
                  (A) all OMB estimates for the budget year of 
                direct spending and receipts legislation 
                transmitted under subsection (d) for 
                legislation enacted prior to October 1, 2002;
                  (B) the estimated amount of savings in direct 
                spending programs applicable to the budget year 
                resulting from the prior year's sequestration 
                under this section, if any, as published in 
                OMB's final sequestration report for that prior 
                year; and
                  (C) all OMB estimates for the current year 
                that were not reflected in the final OMB 
                sequestration report for that year; and
        then by subtracting from such sum the OMB estimate for 
        the budget year of the on-budget surplus (if any) as 
        set forth in the OMB sequestration update report.

           *       *       *       *       *       *       *

  (d) Estimates.--
          (1)  * * *

           *       *       *       *       *       *       *

          (4) Scope of estimates.--The estimates under this 
        section shall include the amount of change in outlays 
        or receipts for the current year (if applicable), the 
        budget year, and each outyear excluding any amounts 
        resulting from--
                  (A) full funding of, and continuation of, the 
                deposit insurance guarantee commitment in 
                effect under current estimates; and
                  [(B) emergency provisions as designated under 
                subsection (e).]
                  (B) offset provisions as designated under 
                subsection (e).

           *       *       *       *       *       *       *

  [(e) Emergency Legislation.--If a provision of direct 
spending or receipts legislation is enacted that the President 
designates as an emergency requirement and that the Congress so 
designates in statute, the amounts of new budget authority, 
outlays, and receipts in all fiscal years resulting from that 
provision shall be designated as an emergency requirement in 
the reports required under subsection (d). This subsection 
shall not apply to direct spending provisions to cover 
agricultural crop disaster assistance.]
  (e) Offsets.--If a provision of direct spending legislation 
is enacted that--
          (1) decreases direct spending for any fiscal year; 
        and
          (2) is designated as an offset pursuant to this 
        subsection and such designation specifically identifies 
        an authorization ofdiscretionary appropriations 
(contained in such legislation) for a new program,
then the reductions in new budget authority and outlays in all 
fiscal years resulting from that provision shall be designated 
as an offset in the reports required under subsection (d).

           *       *       *       *       *       *       *


SEC. 254. REPORTS AND ORDERS.

  (a)  * * *

           *       *       *       *       *       *       *

  (c) Sequestration Preview Reports.--
          (1)  * * *

           *       *       *       *       *       *       *

          (3) Pay-as-you-go sequestration reports.--The preview 
        reports shall set forth, for the current year and the 
        budget year, estimates for each of the following:
                  (A)  * * *

           *       *       *       *       *       *       *

                  (C) The estimated on-budget surplus for the 
                budget year (if any) shall exclude all 
                estimates of direct spending and receipts 
                legislation for such year enacted after the 
                date of enactment of this subparagraph (as 
                estimated by OMB when such legislation was 
                originally enacted). Except as provided by the 
                preceding sentence, the following assumptions 
                shall apply to the calculation of such 
                estimated surplus: Budgetary resources other 
                than unobligated balances shall be at the level 
                provided for the budget year in a regular 
                appropriation Act or a joint resolution (other 
                than pursuant to section 1311 of title 31, 
                United States Code) continuing appropriations 
                through the end of the budget year, but if for 
                any account a full-year appropriation has not 
                yet been enacted, budgetary resources other 
                than unobligated balances shall be at the level 
                available in the current year, adjusted using 
                the assumptions set forth in section 257(c).
                  [(C)] (D) The sequestration percentage or (if 
                the required sequestration percentage is 
                greater than the maximum allowable percentage 
                for medicare) percentages necessary to 
                eliminate a deficit increase under section 
                252(c).

           *       *       *       *       *       *       *

  (f) Final Sequestration Reports.--
          (1)  * * *

           *       *       *       *       *       *       *

          (3) Pay-as-you-go and deficit sequestration 
        reports.--The final reports shall contain all the 
        information required in the pay-as-you-go and deficit 
        sequestration preview reports. In addition, these 
        reports shall contain, for the budget year, for each 
        account to be sequestered, estimates of the baseline 
        level of sequestrable budgetary resources and resulting 
        outlays and the amount of budgetary resources to be 
        sequestered and resulting outlay reductions. The 
        reports shall also contain estimates of the effects on 
        outlays of the sequestration in each outyear for direct 
        spending programs. In calculating the estimated on-
        budget surplus pursuant to section 252(b)(2), 
        notwithstanding section 254(j), OMB shall use economic 
        and technical assumptions that are up-to-date as of the 
        date of issuance of the sequestration preview reports.

           *       *       *       *       *       *       *


SEC. 258C. SPECIAL RECONCILIATION PROCESS.

  (a) Reporting of Resolutions and Reconciliation Bills and 
Resolutions, in the Senate or in the House of Representatives._
          (1) Committee alternatives to presidential order.--
        After the submission of an OMB sequestration update 
        report under section 254 that envisions a sequestration 
        under section 252 or 253, each standing committee of 
        the Senate or House may, not later than October 10, 
        submit to the Committee on the Budget of the Senate or 
        House information of the type described in section 
        301(d) of the Congressional Budget Act of 1974 with 
        respect to alternatives to the order envisioned by such 
        report insofar as such order affects laws within the 
        jurisdiction of the committee.
          (2) Initial budget committee action.--After the 
        submission of such a report, the Committee on the 
        Budget of the Senate or House may, not later than 
        October 15, report to the Senate or House a resolution. 
        The resolution may affirm the impact of the order 
        envisioned by such report, in whole or in part. To the 
        extent that any part is not affirmed, the resolution 
        shall state which parts are not affirmed and shall 
        contain instructions to committees of the Senate or 
        House of the type referred to in section 310(a) of the 
        Congressional Budget Act of 1974, sufficient to achieve 
        at least the total level of deficit reduction contained 
        in those sections which are not affirmed.
          (3) Response of committees.--Committees instructed 
        pursuant to paragraph (2), or affected thereby, shall 
        submit their responses to the Budget Committee no later 
        than 10 days after the resolution referred to in 
        paragraph (2) is agreed to, except that if only one 
        such Committee is so instructed such Committee shall, 
        by the same date, report to the Senate or House a 
        reconciliation bill or reconciliation resolution 
        containing its recommendations in response to such 
        instructions. A committee shall be considered to have 
        complied with all instructions to it pursuant to a 
        resolution adopted under paragraph (2) if it has made 
        recommendations with respect to matters within its 
        jurisdiction which would result in a reduction in the 
        deficit at least equal to the total reduction directed 
        by such instructions.
          (4) Budget committee action.--Upon receipt of the 
        recommendations received in response to a resolution 
        referred to in paragraph (2), the Budget Committee 
        shall report to the Senate or House a reconciliation 
        bill or reconciliation resolution, or both, carrying 
        out all such recommendations without any substantive 
        revisions. In the event that a committee instructed in 
        a resolution referred to in paragraph (2) fails to 
        submit any recommendation (or, when only one committee 
        is instructed, fails to report a reconciliation bill or 
        resolution) in response to such instructions, the 
        Budget Committee shall include in the reconciliation 
        bill or reconciliation resolution reported pursuant to 
        this subparagraph legislative language within the 
        jurisdiction of the noncomplying committee to achieve 
        the amount of deficit reduction directed in such 
        instructions.

           *       *       *       *       *       *       *

          (7) Definition.--[For] In the Senate, for purposes of 
        paragraphs (1), (2), and (3), the term ``day'' shall 
        mean any calendar day on which the Senate is in 
        session.
  (b) Procedures.--
          (1) In general.--Except as provided in paragraph (2), 
        in the Senate or House the provisions of sections 305 
        and 310 of the Congressional Budget Act of 1974 for the 
        consideration of concurrent resolutions on the budget 
        and conference reports thereon shall also apply to the 
        consideration of resolutions, and reconciliation bills 
        and reconciliation resolutions reported under this 
        paragraph and conference reports thereon.

           *       *       *       *       *       *       *

          (4) Bills and resolutions received from the other 
        house.--Any bill or resolution received [in the Senate 
        from the House] in the Senate or House of 
        Representatives from the other House, which is a 
        companion to a reconciliation bill or reconciliation 
        resolution of the [Senate] Senate or House of 
        Representatives, as the case may be, for the purposes 
        of this subsection, shall be considered in the [Senate] 
        in the applicable House pursuant to the provisions of 
        this subsection.

           *       *       *       *       *       *       *


                       Views of Committee members

    Clause 2(l)(5) or rule XI requires each committee, except 
the Committee on Rules, to afford a three-day opportunity for 
members of the committee to file additional, minority or 
dissenting views and to include the views in its report. 
Although the requirement does not apply to the Rules Committee, 
the Committee always makes the maximum effort to provide its 
members with an opportunity to submit their views.
    The following views were submitted.

                            DISSENTING VIEWS

    Congress often finds itself re-inventing the wheel. Here we 
are reinventing the flat tire. H.R. 853 proposes a new way for 
Congress to make budget decisions, one that guarantees a slow, 
bumpy ride.
    We all agree that the budget process has not run smoothly 
in recent years. A few examples of the dips in the road:
    Last year, Congress failed to adopt a budget resolution for 
the first time since the Budget Act was enacted because the 
Republican majority in Congress could not agree with itself on 
a budget resolution.
    In the 104th Congress, the Republican majority would not 
compromise and failed to enact thirteen regular appropriations 
bills on time and as a result shut down the federal government 
for an unprecedented 28 days.
    In the 105th Congress, the Republican majority compromised 
on everything and, as a result, passed a bloated omnibus bill.
    This year alone Congress and the President agreed to 
designate more than $34 billion as `emergencies' and enacted 
another $2 billion for FY 2000 military pay as an `emergency.' 
These emergencies are a transparent ruse to skirt the spending 
caps.
    Are these bumps in the road the fault of the Budget Act? 
Hardly. The procedural changes recommended in H.R. 853 merely 
mask the majority's inability to govern. As long as the 
majority lacks the political will to set realistic spending 
caps, no change to the Budget Act will smooth the bumpy road 
ahead.
    And major provisions of H.R. 853 actually make the ride 
more bumpy:
    H.R. 853 encourages Republicans to use up projected 
surpluses on tax cuts before we fix Social Security and 
Medicare. Current law requires tax cuts to be offset with tax 
increases or entitlement cuts. H.R. 853 weakens current pay-as-
you-go rules, allowing tax cuts to go unpaid for--up to the 
amount of projected surpluses. Projected surpluses are there 
for the taking on a first-come, first served basis until the 
surpluses are completely consumed. By penalizing the last one 
to the trough, this will encourage Republicans to use up all 
the surpluses on tax cuts, not reserving the resources that may 
be needed to fix Social Security and Medicare.
    H.R. 853 makes it more difficult to agree on a budget by 
calling for a joint budget resolution. It is hard enough to 
adopt a congressional budget resolution on time (last year, the 
Republican House and Senate could not even agree). Asking the 
President to sign it will only make it more difficult to come 
to a quick agreement. Now, proponents may reply that the new 
joint budget resolution is scaled down and even less 
substantive than the current congressional resolution. If the 
budget is merely a symbol, there is even less incentive to come 
to early agreement.
    The congressional budget resolution and the President's 
budget are both political documents.
    As long as one party controls the Congress and another 
party controls the White House, there will be more posturing 
than negotiating on a budget resolution. Under H.R. 853, 
Members of Congress can rely on a soft landing--the fallback of 
a congressional budget resolution--if they fail to reach 
agreement with the President. In a divided government, the 
majority in Congress have little reason to accommodate the 
President; instead, they will be strongly tempted to pass a 
budget that forces a presidential veto and delineates the 
differences between the parties. This will further delay the 
process.
    H.R. 853 changes the emergency spending process without 
addressing the reason it has been abused. We can stipulate that 
in 1997 Congress changed the way it makes emergency 
designations and most of those changes were a mistake. 
Emergency spending does not count against spending caps; most 
observers would agree that the term ``emergency'' has been 
overused recently as a way to get around the caps.
    The Budget Agreement Act of 1990 established caps on 
discretionary spending and the emergency spending process to 
allow true emergencies to get around the caps. The Balanced 
Budget Act of 1997 modified the process but kept the basic 
idea.
    Emergency spending in the first year of the new process was 
very high, $45.8 billion. Of that amount, $44.4 billion was for 
the Persian Gulf War and that entire amount was promptly offset 
by foreign contributions, as intended in the appropriations 
language. Excluding spending for Operations Desert Shield/
Desert Storm, emergency spending has been fairly steady. From 
FY 1991 to FY 1998 emergency spending averaged $8 billion 
annually, fluctuating from $5 billion in FY 1996 to $13.8 
billion in FY 1994. FY 1994 was up because of the California 
earthquake.
    It appears that emergency spending before FY 1999 was, as 
intended, for unforeseen and non-recurring events, for true 
emergencies such as Hurricanes Andrew and Iniki, the Loma 
Prieta and the Northridge earthquakes, the Chicago flood and 
flooding in the Dakotas, and the Los Angeles riots. Against 
this background, the $34 billion in emergency spending in FY 
1999 looks suspiciously high.
    When spending caps were tight but manageable, the emergency 
designation was not abused. Now that the caps are impossible to 
live with, Congress has come to rely on gimmicks such as 
designating the decennial census as an emergency. Simply 
tightening the rules on emergencies without addressing the root 
cause of the abuse--unrealistic spending caps--is not helpful.
    The lockbox in H.R. 853 gives extraordinary power to the 
Senate. The ``spending accountability lockbox'' establishes a 
ledger to account for House action, Senate action, and 
conference on each of the regular appropriation bill. If the 
House adopts a floor amendment that reduces budget authority, 
the amount of the cut goes onto the House ledger for that bill 
unless the proponent explicitly reserves all or a portion of it 
for another purpose. When the Senate adopts a cutting 
amendment, that amount goes on the Senate ledger for that bill. 
The Budget Committees then calculate the average of the 
reductions for the bill. The budget allocation and the spending 
caps are automatically reduced by that amount. The conferees 
cannot exceed the new level. Because the Senate traditionally 
acts last on appropriation bills, that body is greatly 
advantaged by this arrangement. The Senate sees the House 
ledger and can unilaterally set the allocation and spending cap 
for the bill.
    There are a handful of smaller ideas in this bill which are 
good. We like Mr. Moakley's proposal to make unreported 
measures subject to Budget Act points of order. We are pleased 
to see that Mr. Goss's substitute struck the definition of 
pocket veto from the bill. We are also pleased that the 
substitute removed a Budget Committee reported provision with 
its convoluted process for considering emergency designations 
that would have prohibited the House from questioning the 
Budget Committee's decisions on those designations.
    However well motivated, and despite a few good ideas, we 
cannot support this bill. Believing that a fix for one part or 
several parts of the bill could not repair the basic problems 
with this measure, Democrats in committee did not offer a 
series of amendments. Instead, we offered a single motion 
urging the committee to report the bill adversely.
    Taken as a whole, this bill contains too many dangerous 
changes to our budget process. The spare is in worse shape than 
the tire it is intended to replace. We are better off summoning 
the political will to make the current process work.

                                   Joe Moakley.
                                   Tony P. Hall.
                                   Martin Frost.
                                   Louise Slaughter.

                 DISSENTING VIEWS OF HON. MARTIN FROST

    There are many reasons to oppose H.R. 853, but chief among 
them is the codification of an automatic continuing resolution. 
While the automatic continuing resolution seeks to ensure that 
the government will not be subjected to the ``train wrecks'' of 
recent years, what it will in fact ensure is an appropriations 
process that has a built-in disincentive to finish the process 
in any given legislative year, and one which can be dictated 
and controlled by a obstinate minority in the Senate.
    This is especially true if the automatic continuing 
resolution is seen in the broader context of the budgetary 
timetable envisioned in H.R. 853. Requiring that the President 
be brought into the process early in the year by transforming 
the budget resolution into a joint resolution, while at the 
same time eliminating the ability of the appropriations 
committees to move forward if a budget resolution has not been 
agreed to by May 15, will more than likely delay rather than 
expedite the process. This might well hold true if spending 
caps continue to shrink in the coming years and congressional 
priorities conflict with executive policies. If budget 
negotiations are protracted or should they break down 
altogether, H.R. 853 will force appropriators to sit on the 
sidelines while the Budget Committees and leadership of both 
houses try to hammer out a ``deal'' with the Administration. In 
addition, once a budget resolution agreement has been reached, 
the fact that the failure to pass appropriations by the 
beginning of the fiscal year has no real penalty, various 
interests within the Congress might attempt to slow the process 
down if it means that their own priorities might be better 
served. The most likely result will be the failure to enact 
most of the 13 appropriations bills by October 1 of each year. 
In this context, it is easy to see how a small minority in the 
Senate because, or in the House for that matter, might well be 
able to coerce the rest of the Congress to implement their 
funding priorities on a particular appropriations bill or risk 
further stalemate. If we consider that an automatic continuing 
resolution will continue spending levels for any given 
appropriations bill for an entire fiscal year at the prior 
year's level, some Members might also think that it would be 
better to continue appropriations at that level rather than 
risk passing an appropriations bill that may include 
significant decreases in spending. Indeed, knowing that a prior 
year's funding level is in fact higher than what has been 
agreed to in the budget resolution, might well serve as an 
incentive to not take action on an appropriations and thus 
avoid alienating interest groups whose projects and programs 
are funded in a particular appropriations bill.
    What an automatic continuing resolution is likely to 
create, in the current atmosphere of political stalemate, is 
permanent appropriations, which are in effect permanent 
entitlements for those programs that are now funded in the 
federal budget. Such a process would be unable to address 
current or changing needs, would provide little or no 
accountability within the political process in the Congress or 
in the administrative process in the executive, and in the end, 
denies Members the ability to represent their constituents 
effectively.
    It is easy to understand how some Members might find the 
idea of an automatic continuing resolution as an appealing 
alternative to the ``train wreck'' that has occurred all too 
often in the Fall. According to the Congressional Research 
Service, continuing resolutions have been enacted for all but 
four fiscal years--FY 1953, 1989, 1995, and 1997 and in most 
years more than one CR was needed as Congress worked to 
complete action on the regular appropriations bills. But the 
fact of the matter is that Congress does get its work done. 
There may be significant delays and titanic political 
struggles, but the Congress has, in my experience, met it 
responsibilities. Codification of an automatic continuing 
resolution will not do a thing to encourage the Congress to 
complete its work in a more timely fashion; instead, an 
automatic continuing resolution takes away the incentive for 
the Congress to finish its work in a timely manner and may, in 
the end, encourage the Congress to take a pass on its most 
fundamental responsibility.

                                                      Martin Frost.
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