[House Report 106-73]
[From the U.S. Government Publishing Office]



_______________________________________________________________________

106th Congress                                                   Report
1st Session             HOUSE OF REPRESENTATIVES                 106-73

_______________________________________________________________________


 
         CONCURRENT RESOLUTION ON THE BUDGET--FISCAL YEAR 2000
                              

                               __________

                              R E P O R T

                                 of the

                        COMMITTEE ON THE BUDGET

                        HOUSE OF REPRESENTATIVES

                              to accompany

                            H. Con. Res. 68

ESTABLISHING THE CONGRESSIONAL BUDGET FOR THE UNITED 
  STATES GOVERNMENT FOR FISCAL YEAR 2000 AND SETTING 
  FORTH APPROPRIATE BUDGETARY LEVELS FOR EACH OF 
  FISCAL YEARS 2001 THROUGH 2009

                             together with

                     MINORITY AND ADDITIONAL VIEWS




 March 23, 1999.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                            C O N T E N T S

                              ----------                              
                                                                   Page
Securing the Future: Introduction to the Budget Resolution.......     2
Budgeting and Governing: Historical Background of the Budget.....     8
Toward Long-Term Prosperity: Economic Background and Assumptions 
  in the Budget Resolution.......................................    12
Function-by-Function Presentation................................    21
Summary Tables...................................................    43
The Congressional Budget Process.................................    73
    Spending Allocations.........................................    73
        Committee on Appropriations..............................    73
        Authorizing Committees...................................    74
    Safe Deposit Box for Social Security Surpluses...............    80
    Reserve Funds................................................    80
    Reconciliation Instructions..................................    82
Enforcing the Budget Resolution..................................    84
Statutory Controls Over the Budget...............................    86
    Discretionary Spending Limits................................    86
    Pay-As-You-Go Requirements...................................    87
Senses of House and Congress.....................................    88
Rollcall Votes and Other Items Required Under House Rules........    89
    Committee Votes..............................................    89
    Budget Committee Oversight Findings..........................    99
    Oversight Findings and Recommendations of the Committee on 
      Government Reform..........................................    99
    Miscellaneous Budgetary Information..........................   100
    Establishment of the Statutory Limit on the Public Debt......   100
    Views of Committee Members...................................   100
Appendix--The Concurrent Resolution on the Budget................   117

106th Congress                                                   Report
 1st Session            HOUSE OF REPRESENTATIVES                 106-73

_______________________________________________________________________



         CONCURRENT RESOLUTION ON THE BUDGET--FISCAL YEAR 2000
                                _______
                                

 March 23, 1999.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

   Mr. Kasich, from the Committee on Budget, submitted the following

                              R E P O R T

                             together with

                     MINORITY AND ADDITIONAL VIEWS

                     [To accompany H. Con. Res. 68]



                          SECURING THE FUTURE



                 Introduction to the Budget Resolution

                              ----------                              


                  Principles of the Budget Resolution

    The Balanced Budget Act of 1997 completed the first step of 
an effort to return the Federal Government to its proper role. 
It reaffirmed the fundamental principle that the government 
should live within its means. It also produced, last year, the 
first Federal budget surplus in nearly 3 decades--and did so 4 
years ahead of schedule. Chronic deficits have been transformed 
into growing surpluses.
    The opportunity created by this astonishing turnaround must 
not be squandered. The projected budget surpluses should be 
used to meet the significant budgetary challenges ahead--such 
as the retirement of the 78-million-member baby boom 
generation--and promote the Nation's long-term prosperity in 
the new century. Therefore, this budget resolution is built on 
the following seven principles:

--It locks away the entire Social Security Trust Fund surplus 
    for our Nation's elderly--almost $1.8 trillion over 10 
    years to save, strengthen, and preserve Social Security 
    and, as necessary, Medicare.

--It sets aside $100 billion more than the President's budget 
    proposal to save, strengthen, and preserve Social Security 
    and Medicare.

--It creates a ``safe deposit box'' to assure the Social 
    Security Trust Funds cannot be raided for other spending. 
    The President's budget, on the other hand, spends $341 
    billion of the Social Security surplus over 10 years 
    (including government purchases of stock).

--It pays down $450 billion more debt held by the public than 
    the President's budget does.

--It maintains the spending discipline of the 1997 Balanced 
    Budget Act.

--It provides additional resources to properly train, equip, 
    and retain our men and women in uniform.

--It enacts historic tax relief to return working Americans--
    present tax overpayment.

    Because budgeting is about governing, the way Congress 
budgets now, in an era of surpluses, is just as critical as 
reaching a balanced budget was. More important than the size of 
the surplus is how Congress uses this opportunity. The late 
Professor Aaron Wildavsky put it this way:

    It appears that people are concerned solely about the size 
        of the gap between spending and revenue. The real issue 
        is different: what kind of government are we going to 
        have, and therefore what kind of people are we going to 
        be? Will we balance the budget at much higher levels of 
        revenue and expenditure, or will we balance it at much 
        lower levels of revenue and expenditure? \1\
---------------------------------------------------------------------------
    \1\ Aaron Wildavsky, ``If You Can't Budget, How Can You Govern?'' 
from Thinking About America: The United States in the 1900s, edited by 
Annelise Anderson and Dennis L. Bark.

    Professor Wildavsky was talking about deficits, but the 
real issue has not changed: what kind of government we are 
going to have and therefore what kind of people we are going to 
be. The 1997 Balanced Budget Act was coupled with the Taxpayer 
Relief Act--a pairing that clearly called for lower taxes and 
less government. It is a philosophy that started with President 
Reagan, and that has sustained 17 years of growing prosperity, 
only modestly interrupted by the recession of 1991 and 1992.
    That is why this fiscal year 2000 budget is important--for 
both the present and the future. Projected budget surpluses 
must not become the pretext for higher levels of spending and 
bigger government--reversing the successful formula that was 
reaffirmed less than 2 years ago. Building on the success of 
the Balanced Budget Act, this budget keeps restraint on 
government spending and leverages budget surpluses to help 
assure prosperity and security for the future.
    The balance of this introduction reflects the fundamental 
differences between this budget and the President's spending 
plan. The two sections that follow discuss the economic and 
governmental foundations of this budget proposal.

                          Budgeting Surpluses


                        what the president does

    Given budget surpluses, the President raises spending, 
raises taxes, and reserves $100 billion less than the 
Republican budget for Social Security and Medicare.


    His budget for fiscal year 2000 extends taxes at post-World 
War II high levels, and collects about $730 billion more in 
taxes than the Republican budget. Moreover, the President 
proposes about $172 billion in gross tax increases over 10 
years, and $1.2 trillion in higher spending. His budget pays 
down less debt held by the public than if he had submitted no 
budget at all. It creates 120 new government programs. Even as 
he claims to be saving funds for Social Security and Medicare, 
his budget spends $341 billion of the Social Security surplus 
over 10 years (including government stock purchases) (see 
Figure 1), and cuts Medicare by $11.9 billion over 5 years. 
According to the Congressional Budget Office [CBO], the 
President's budget also breaks the Balanced Budget Act [BBA] 
spending caps for fiscal year 2000: it proposes $22 billion 
more in budget authority and $30 billion more in outlays than 
is allowed under current law.2
---------------------------------------------------------------------------
    \2\ Congressional Budget Office, An Analysis of the President's 
Budgetary Proposals for Fiscal Year 2000: A Preliminary Report, 3 March 
1999, p. 6.
---------------------------------------------------------------------------
    In short, the President uses the budget surplus to expand 
the size and scope of government.

                          what our budget does

    As noted previously, this budget resolution seeks to 
leverage projected surpluses to meet future budget challenges 
and to promote the Nation's long-term prosperity. Following the 
seven principles described at the outset, the major provisions 
of the budget are the following:

--Retirement Security--The budget locks away all of the Social 
    Security Trust Fund surpluses--payroll taxes and interest--
    for the Nation's elderly. The reserved funds--almost $1.8 
    trillion over 10 years--will be available to save, 
    strengthen, and preserve Social Security and Medicare. This 
    is approximately $100 billion more than the $1.68 trillion 
    the President claims to set aside. This budget also rejects 
    the President's $11.9 billion in Medicare cuts, including 
    those he has proposed for certain prescription drugs.

    The budget's reserved funds would be held in a ``safe 
deposit box,'' which could be used only to repay the public 
debt, unless the Chairman of the Budget Committee activated the 
``reserve fund'' to allow the funds to be used for Social 
Security or Medicare reform.

--Debt Reduction--The budget pays down approximately $1.8 
    trillion in debt held by the public over 10 years, about 
    $450 billion more than the President. It would reduce debt 
    held by the public from more than $3.6 trillion in 1999 to 
    less than $1.9 trillion in 2009. Under the President's 
    plan, debt held by the public would exceed $2.3 trillion in 
    2009.
--Spending Control--The budget maintains the spending 
    discipline of the bipartisan Balanced Budget Act of 1997.

--National Defense--The budget resolution makes national 
    defense a priority, providing approximately $290 billion in 
    discretionary budget authority in fiscal year 2000--an 
    increase of $14.6 billion in budget authority and $6.8 
    billion in outlays above BBA levels--giving additional 
    resources to properly train, equip, and retain our men and 
    women in uniform.

    The U.S. military is facing an unprecedented number of 
deployments ordered by the administration, including Iraq, 
Bosnia, and possibly Kosovo. The military branches are failing 
to meet recruitment goals. Retaining Navy and Air Force pilots 
is becoming a serious problem. This budget is designed to 
address these concerns. The President, on the other hand, makes 
his defense spending increase contingent on enactment of Social 
Security reform.

--Tax Relief--Over the next 10 years, Americans will pay 
    approximately $17 trillion in taxes not counting those for 
    Social Security. More than $800 billion of these non-Social 
    Security taxes will be in excess of the government's 
    projected needs. These are tax overpayments; they should be 
    returned to taxpayers. (See Figure 2.)
    
    
    This budget provides for historic tax relief--up to $15 
billion in 2000 and about $800 billion over 10 years--to return 
working Americans' tax overpayment. The President's budget 
proposal raises taxes by $172 billion over 10 years, and calls 
for about $730 billion more in taxes than the Republican 
budget.
     Total Federal revenues consume 20.7 percent of America's 
Gross Domestic Product [GDP] this year, and are expected to 
match that level during fiscal year 2000. This represents the 
highest level of tax revenues since 1944. Tax revenues were 
17.8 percent of GDP in 1993, the year President Clinton signed 
his $268-billion tax increase. According to the Census Bureau, 
Federal income taxes rose from 12.1 percent of the average 
family's income in 1992 to 14.9 percent in 1997. Total taxes 
cost the average family more than what they spend on food, 
shelter, and clothing, according to the Tax Foundation. 
Returning taxpayers' overpayment is clearly justified.

--Education--Education is another priority. The budget 
    resolution provides $22 billion in fiscal year 2000 budget 
    authority for elementary, secondary, and vocational 
    education--$1.2 billion more than the President. Among the 
    key elements:

    Special Education--The budget increases Federal funding for 
        the Individuals with Disabilities Education Act [IDEA]. 
        It also includes language allowing the Chairman of the 
        Budget Committee to increase the Appropriations 
        Committee's allocation to allow more IDEA funding, if 
        CBO identifies a greater surplus during the year.

    Flexibility to Use Additional Funds--The budget provides 
        States the flexibility to use unspent welfare block 
        grant funds for education.

    Dollars to the Classroom--The budget resolution supports 
        the goal of assuring that 95 percent of Federal 
        education dollars reach classrooms.

--Incomes for Rural America--This budget provides the necessary 
    funding to ensure that real change in the crop insurance 
    program will occur. The President chose not to address this 
    issue in his budget. Furthermore, he reduces the Export 
    Enhancement Program [EEP] by $578 million over 5 years 
    (according to the administration's figures).

--Veterans--The budget resolution recognizes veterans' health 
    care as a priority. It provides a $1.1-billion increase in 
    fiscal year 2000 for veterans' health care. The President 
    provides a mere $27-million increase.

                               Conclusion

    As noted above, this budget views the Balanced Budget Act 
as the first step in addressing long-term budgetary challenges 
and securing the Nation's long-term prosperity. Now that budget 
surpluses are in hand, Congress should leverage these funds to 
help prepare the Nation for the next century.
    The seven principles listed at the beginning of this 
discussion were developed with that goal in mind. They have 
guided the choices and priorities outlined here. Budgeting is 
about governing--and the goal of governing, as reflected by 
this budget, is to secure America's future.



                        BUDGETING AND GOVERNING



                  Historical Background of the Budget

                              ----------                              

    The discussion below briefly examines some of the history 
of how today's economic prosperity and budget surpluses were 
reached. It is intended to illuminate the philosophical 
foundations of the budget resolution.

                            How We Got Here

           the republican approach to budgeting and governing

    When the Republican congressional majorities arrived in 
January 1995, the Members faced a Federal budget deficit of 
$176 billion. The red ink was projected to reach $207 billion 
the following year, and continue growing every year after that, 
according to the Congressional Budget Office [CBO].3 
Even the President's own budget, submitted in February that 
year, foresaw deficits of about $200 billion a year every year 
as far as the eye could see 4 (see Figure 3).
---------------------------------------------------------------------------
    \3\ Congressional Budget Office, The Economic and Budget Outlook: 
Fiscal Years 1996-2000, p. xvi.
    \4\ Budget of the United States Government--Fiscal Year 1996: 
Historical Tables, p. 14.
---------------------------------------------------------------------------
    Following President Reagan's example of less government 
spending and lower taxes, the Republican Congress that took 
office at the beginning of 1995 set out not just to restrain 
spending and reduce deficits, but actually to balance the 
Federal budget. Although advocates brandished an arsenal of 
economic projections to justify this goal, American taxpayers 
understood it--and staunchly supported it--for a more 
fundamental reason: balancing the budget made sense. The 
chronic deficit spending of the 1970s and 1980s told 
taxpayers--who balance their own checkbooks every month--that 
Congress could not handle their money properly. If Congress 
could not budget, they came to wonder, then how could Congress 
govern?


    But balancing the budget was only part of a broader 
strategy of governing. The principle--again consistent with 
President Reagan's view--involved restoring the power and 
influence of the people in their States, communities, and 
neighborhoods. It was a philosophy (called Federalism) that 
encouraged the Nation to grow from the bottom up, not from 
Washington down.
    An integral part of this approach was tax relief. Budget 
``experts'' in Washington scoffed that balancing the budget and 
cutting taxes at the same time was contradictory; and Clinton 
administration officials constantly claimed it would ``blow a 
hole in the deficit.'' What these critics never understood was 
that balancing the budget and cutting taxes were two sides of 
the same coin. By enacting both simultaneously, Congress would 
empower taxpayers--letting them keep more of their own money--
while the Washington government eased its influence on their 
lives. The twin policies worked together toward the same goal.
    Moreover, tax reductions assured spending restraint, by 
restraining the amount of revenue there was to spend. This 
notion, too, was born under the administration of President 
Reagan, as Professor Wildavsky explained:

    President Reagan thought of budgets as political 
        instruments . . . If you took the tax money away, 
        Congress wouldn't have it to spend. Believing the 
        budget was about political economy, not just economic 
economy, the President radically reversed the conventional wisdom, 
which held that spending had to be cut before taxes could be 
lowered.5
---------------------------------------------------------------------------
    \5\ Aaron Wildavsky,``If You Can't Budget, How Can You Govern?'' 
from Thinking About America. The United States in the 1990s, edited by 
Annelise Anderson and Dennis L. Bark.
---------------------------------------------------------------------------

                             interim gains

    Even before the Balanced Budget Act, the success of the 
Republican governing strategy became evident through other 
measures. One shining example was welfare reform. By 1996, a 
number of States--including Wisconsin, Michigan, Virginia, and 
California--had begun reforming their welfare policies by 
obtaining waivers from federally imposed limitations. Their 
welfare recipients began taking responsibility for their own 
lives, getting jobs or learning work skills, and quickly 
leaving the welfare rolls. In 1995 and 1996, Congress sought to 
spread the benefits of State flexibility nationwide, through 
the Personal Responsibility and Work Opportunity Reconciliation 
Act--commonly known as welfare reform. Twice Congress sent 
welfare reform legislation to the President, and twice he 
vetoed it. Finally, on Congress's third attempt, the President 
signed the legislation.
    The results speak for themselves: welfare rolls have 
declined by more than one-third since enactment of the law, and 
States have amassed about $6 billion in unspent welfare block 
grant funds. All this occurred because States were empowered to 
tailor their welfare programs to the needs of their 
populations, and to expect a degree of personal responsibility 
on the part of those receiving public assistance.
    A second demonstration of State and local initiative has 
occurred in education. States and localities have taken the 
lead in pushing reforms. Some now let students transfer out of 
low-performing schools, or allow State governments to take over 
failing schools. Forty-three States are drafting new reading 
and math tests, and 28 are developing history and science 
tests. Thirty-five States have joined a consortium that, 
beginning in 2003, will test and license new teachers, and 21 
States already have adopted standards that new teachers have to 
meet to earn licenses. Thirty-four States have passed charter 
school laws; there are now 1,128 charter schools, serving more 
than 250,000 students; and 157 more charter schools had been 
approved as of October 1998. Thirty-six States will publish 
annual report cards on individual schools this year, or require 
schools or districts to do so; 13 States require report cards 
to be sent home to parents. Twenty-six States have halted 
``social promotion.''
    Although Federal education dollars fund approximately 7 
percent of total State education spending, it takes an average 
of more than half of each State's education department staff to 
administer the funds. The Republican Congress has sought to 
improve education by lessening the States' administrative 
burden and encouraging the State and local initiatives already 
under way. Congress has expanded ``Ed-Flex,'' so that all 50 
States can waive Federal education regulations and better use 
Federal aid to address local education priorities. House 
Members have introduced legislation (H.R. 2) to encourage an 
increase in the Federal dollars going directly to classrooms 
and relax public bond regulations so State and local 
governments can have greater flexibility and lower costs to 
construct and renovate their schools. Senators Coverdell and 
Torricelli and Representative Hulshof have reintroduced 
legislation letting families and relatives, as well as 
companies and private foundations, invest up to $2,000 a year 
in after-tax money into ``education savings accounts.''
    Welfare and education are only two areas in which the 
``bottom-up,'' Federalist approach has proved successful. But 
they help demonstrate why this budget resolution seeks to 
continue promoting State and local innovation in these and 
other areas.

                   getting to the balanced budget law

    Congress suffered 2 years of demagoguery and game-playing 
by the Clinton administration before the President accepted the 
inevitability of the Republican approach. In the spring of 
1997, he finally joined Congress in developing a balanced-
budget tax-reduction plan. The budget blueprint was agreed to 
in May. In August--4 years after enactment of the Clinton tax 
increase--Congress passed, and the President signed, the twin 
bills completing the course correction in governing that 
President Reagan had started. The two historic bills were the 
Balanced Budget Act of 1997, and the Taxpayer Relief Act of 
1997--enacted in tandem, as had been intended.
    The Republican budget strategy clearly has been successful. 
It sustained and reinforced the economic gains Americans now 
enjoy--gains that were driven, as they always are, by the 
positive response of working families and entrepreneurs and 
investors. The Nation's working people have built an economy 
that keeps growing, and that keeps defying the ``experts.''
    The coupling of spending restraint and tax reduction 
yielded a balanced budget within a single year, 4 years ahead 
of schedule. The official forecasters in both the 
administration and Congress at first failed to predict the 
budget surplus, and then underestimated it by amounts in the 
$100-billion range. They still haven't figured out why tax 
revenues keep pouring in at higher-than-expected rates. But 
chronic budget deficits have been transformed into growing 
budget surpluses.
    Again, this is only 4 years after President Clinton 
predicted budget deficits of $200 billion a year or more as far 
as the eye could see.



                      TOWARD LONG-TERM PROSPERITY



      Economic Background and Assumptions of the Budget Resolution

                              ----------                              


                         The Republican Economy

    Three factors have stood out in promoting the economic 
stability that now exists in the United States: low inflation, 
declining interest rates, and technology.
    According to economist Lawrence A. Kudlow, declining 
inflation has had a pervasive tax cut effect throughout the 
economy, boosting real incomes. Today's low inflation is, in 
fact, the product of a long-term effort that began with the 
Reagan administration. President Reagan recognized that high 
inflation punished everyone, and he vowed to reverse the 
inflationary trend that he inherited when he took office in 
1981. Economists long have known that price stability is a 
necessary foundation for a growing economy.
    So are low interest rates. Long-term interest rates have 
declined from 7.8 percent in January 1995, when the Republican 
majorities in Congress took office, to approximately 5.0 
percent now (see Figure 4). ``It has been that decline [in 
long-term interest rates] which perhaps more than anything else 
in our economy has been the factor which has been driving this 
really quite extraordinary . . . economic expansion,'' says 
Alan Greenspan, Chairman of the Board of Governors of the 
Federal Reserve System.6
---------------------------------------------------------------------------
    \6\ Testimony to the House Banking and Financial Services 
Subcommittee on Domestic and International Monetary Policy, 24 February 
1998.
---------------------------------------------------------------------------
    Chairman Greenspan also has credited this decline largely 
to Congress's determined effort to balance the Federal budget. 
He often advised Congress that financial markets would respond 
favorably to credible deficit reduction. As the return to a 
balanced budget was nearing reality, Chairman Greenspan said: 
``A substantial part . . . of the very considerable decline in 
long-term interest rates has been a function of the decline in 
the budget deficit, because it's removed pressures of the 
Federal Government's borrowing from the marketplace.'' 
7
---------------------------------------------------------------------------
    \7\ Testimony to the House Banking and Financial Services 
Subcommittee on Domestic and International Monetary Policy, 24 February 
1998.
---------------------------------------------------------------------------
    The nearly 3-percentage-point decline in interest rates 
since the beginning of 1995 has had real benefits for working 
families. It has saved the average family $65,400 on their 
mortgage, $1,862 on a college loan, and $1,169 on a modest car 
(see Figure 5). These savings are tantamount to an across-the-
board tax cut.
    This is the reverse of what happened with President 
Clinton's 1993 tax bill. A year after his tax increase was 
enacted, interest rates had moved up about 2.5 percentage 
points and the trend of real economic growth slowed. Interest 
rates peaked on November 7, 1994.
    The next day, the Nation's voters set a new direction. On 
November 8, 1994, voters rejected the failing Clinton-Democrat 
strategy of high taxes and regulation, and installed Republican 
majorities in the House and Senate.
    By this time, even the President--who had promised to focus 
on the economy ``like a laser''--recognized his 1993 package 
was not working as planned. His fiscal year 1996 budget 
(submitted in February 1995) said in part:

    For 1995 as a whole, real GDP growth is expected to average 
        2.4 percent, well below the 3.6 percent rate assumed 
        for the previous year. The economy is then projected to 
        settle in on the potential rate of real output growth 
        of 2\1/2\ percent in 1996 and beyond. As real GDP 
        growth slows during 1995, the unemployment rate is 
        forecast to edge up . . .8
---------------------------------------------------------------------------
    \8\ Budget of the United States Government: Fiscal Year 1996--
Analytical Perspectives, p. 4.

    But the arrival of the Republican congressional majorities 
was greeted by a decline in interest rates that has continued, 
almost uninterrupted, to this day. The effect was no accident. 
Republicans had campaigned on a pledge to balance the budget 
and ease the tax burden. As noted above, Fed Chairman Greenspan 
had predicted that credible spending restraint would be 
rewarded with falling interest rates. It was. 


    Further, as interest rates declined, economic growth picked 
up. Far from ``settling in'' at 2.5 percent, as the President 
predicted, real Gross Domestic Product [GDP] grew (4th quarter 
to 4th quarter) 3.9 percent in 1996, 3.8 percent in 1997, and 
4.3 percent in 1998. Unemployment has tumbled from 5.6 percent 
in 1995 to 4.3 percent at the end of last year.
    One way to assess the economic effects of different budget 
policies is to compare major indicators during the 1993-1995 
period--which was solely governed by the Clinton-Democrat 
approach--and during the period since Republicans took control 
of Congress in January 1995. Some examples (see Figure 6):


--Real GDP grew 2.7 percent in the 1993-1995 period, but 
    increased 3.75 percent from 1995 through 1998.
--Real per-capita GDP increased 1.68 percent in 1993 through 
    1995, but 2.82 percent for 1995 through 1998.
--Labor productivity picked up a mere 0.33 percent in 1993-
    1995, but gained 2.2 percent in 1995-1998.
--Real wages actually declined 0.57 percent in 1993-1995, but 
    grew 1.53 percent in 1995-1998.

                      Part of a Longstanding Trend

    Such economic performance grew not from one Congress or one 
Federal budget, but from President Reagan's basic philosophy 
about governing--a framework of economic expansion coupled with 
spending restraint by the Federal Government.
    According to Mr. Kudlow, the Reagan philosophy has produced 
the longest continuous prosperity of the 20th century. It 
began, Mr. Kudlow says, in 1982, and was only slowed by a 
shallow recession in 1990-91; and it has triumphed despite 6 
years of the Clinton administration's attempts to raise taxes 
and expand government.9
---------------------------------------------------------------------------
    \9\ Lawrence A. Kudlow, ``The Road to 10000,'' The Wall Street 
Journal, 16 March 1999.
---------------------------------------------------------------------------
    In this 17-year stretch, according to Kudlow, the economy 
has experienced the following:

--The second longest stock market boom this century.
--Thirty-nine million new jobs, and 11 million new business 
    startups.
--Economic growth at 3.2 percent yearly, and corporate profit 
    growth of 6 percent yearly.
--The creation of $25.7 trillion in new household wealth.

    This dynamic economic growth, says Mr. Kudlow, thrived in 
Reagan-era policies that inspired risk-taking and 
entrepreneurship `` all based on the premise of freedom.

--Inflation has been brought to nearly zero today. The 
    Greenspan policy of disinflation has neutralized the 
    Clinton tax increases.
--Low inflation and lowered capital gains have led to an 
    information technology explosion--fueling even more 
    productivity, growth, and wealth creation.
--Nearly half of all Americans own at least $5,000 worth of 
    stock, bonds, or mutual funds.

                     The Meaning of Economic Growth

    It is important to understand, however, why economic growth 
is necessary. It is not a matter simply of producing better 
numbers and higher dollar amounts. It is fundamental to 
sustaining a free, democratic system.
    American families treasure their ability to improve their 
conditions through their own efforts. This is the foundation of 
the work ethic on which America has been built, and on which it 
continues to prosper. This can only occur in a climate of 
economic growth.
    Such a climate also is necessary to maintain support for 
the democratic system. Michael Novak explains as follows:

          A democratic system depends for its legitimacy . . . 
        upon a sense of equal opportunity. Such legitimacy 
        flows from the belief of all individuals that they can 
        better their condition. This belief can be realized 
        only under the conditions of economic growth. Liberty 
        requires expanse and openness.10
---------------------------------------------------------------------------
    \10\ Michael Novak, ``The Spirit of Capitalism.''

    Economic growth is not just about numbers. It is about the 
values on which America and its people thrive.

                Review of Economic Developments in 1998

    The economy in 1998 continued to perform on a path of high 
growth and low inflation, despite severe economic downturns 
abroad, and global financial market turmoil. Real GDP growth 
again grew about 4 percent, for the third successive year. The 
unemployment rate is the lowest in 28 years, with 2 and 3/4 
million jobs created in 1998. Inflation fell to its lowest 
levels in several decades. Real compensation also grew, 
supported by labor productivity gains, which partly reflects 
the investment boom of the past few years. Budget surpluses for 
fiscal year 1998 allowed $51 billion in the debt held by the 
public to be reduced for the first time in a generation. 
Official budget forecasts now predict surpluses.
    Consumer spending benefitted from robust growth in real 
incomes, employment, and increased wealth.
    Sound fiscal and monetary policies contributed to the good 
results. Fiscal restraint by the Federal Government allowed the 
Fed to maintain low interest rates. Labor markets continue to 
improve, to a monthly unemployment rate of 4.4 percent at the 
end of 1998, the lowest in a quarter century. This is 
substantially lower than even the 4.9 percent rate in 1997.
    Contrary to expectations, inflation remained under control. 
The Consumer Price Index [CPI] increased only 1.6 percent in 
1998, the lowest in 30 years and half of its pace in 1996. 
Several factors of the past few years have contributed, 
including: continued price drops for computers, strength of the 
dollar, and a continued sharp slowdown in medical care costs.
    Housing also has benefitted from the improved economic 
environment. Strong household income gains, high levels of 
consumer confidence, and home mortgage rates among the lowest 
in the last 30 years have lead to record home ownership rate, 
highest since tabulations started 34 years ago. Sales of new 
homes are nearly the highest since record keeping started in 
1963. Yet prices have picked up only slightly.

             Summary of CBO Economic Forecast Through 2009

    CBO projects real economic growth of 2.3 percent in 1999 
and 1.7 percent in 2000, with the trend then turning toward 
CBO's projected potential growth rate of the economy. Table 1 
compares the forecasts of CBO with OMB and the Blue Chip's 
latest forecasts. As shown, CBO is well below private-sector 
forecasts.
    Typically, as expansions continue, imbalances and 
weaknesses occur that lead to downturns. Most analysts, and CBO 
agrees, that there are no obvious signs of imbalance. CBO 
increased its estimate of labor productivity to an average of 
1.8 percent over 1999-2009, much higher than the measured rate 
since 1973 of 1.1 percent. About half of the difference is due 
to the increase in capital stock from the investment boom of 
the past few years.
    After 2001, CBO projects the economy will grow between 2.1 
percent and 2.4 percent, adjusted for inflation. Also, CBO's 
long-term projections assume that the Fed will pursue a low-
inflation environment that supports a rate of economic growth 
close to its long-term potential.
    On income shares (the projected distribution of income 
among various categories), which are taxed at different rates 
and so affect calculations of budget forecasts of surpluses, 
CBO expects that the total share in output of taxable income 
will decline. CBO accounts for the difference in measured 
incomes compared to output in part by assuming that incomes 
will grow slower than total output. CBO also assumes that the 
average share of taxable income should be lower, as it 
typically is in a recession. Finally, the large growth in 
capital stock from the boom in investment in the last four 
years should increase depreciation which is not taxed.

                        Comparison of Forecasts

    The CBO economic forecast is typically compared with the 
administration's Office of Management and Budget [OMB] and the 
Blue Chip Consensus Forecasts [Blue Chip], an average of 50 
private forecasts. In the past 2 years, the Blue Chip has been 
more optimistic than both CBO and OMB.
    In the long term projections, both CBO and OMB project that 
the economy will return to a long-term trend that is about 2.4 
percent for both, with a slight increase in inflation, 
unchanged from their summer forecasts.

                                  TABLE 1.--COMPARISON OF ECONOMIC ASSUMPTIONS
                                           [Calendar years 1999-2004]
----------------------------------------------------------------------------------------------------------------
                                                                Forecast                   Projected
                                                    Actual -----------------------------------------------------
                                                     1998     1999     2000     2001     2002     2003     2004
----------------------------------------------------------------------------------------------------------------
Real GDP (percent year over year):
    House Budget Committee (HBC).................      3.9      2.4      2.0      2.2      2.4      2.4      2.4
    CBO..........................................  .......      2.3      1.7      2.2      2.4      2.4      2.4
    OMB..........................................  .......      2.4      2.0      2.0      2.2      2.4      2.4
    Blue Chip....................................  .......      3.3      2.2      2.3      2.5      2.5      2.6
GDP Price Index (percent year over year):
    CBO and HBC..................................      1.0      1.7      2.0      2.1      2.1      2.1      2.1
    OMB..........................................  .......      1.5      2.1      2.1      2.1      2.1      2.1
    Blue Chip....................................  .......      1.3      1.8      2.2      2.2      2.1      2.2
Consumer Price Inflation (percent year over
 year):
    CBO and HBC..................................      1.5      2.5      2.6      2.6      2.6      2.6      2.6
    OMB..........................................  .......      2.2      2.3      2.3      2.3      2.3      2.3
    Blue Chip....................................  .......      1.9      2.3      2.5      2.5      2.5      2.5
Unemployment Rate (annual rate):
    CBO and HBC..................................      4.5      4.6      5.1      5.4      5.6      5.7      5.7
    OMB..........................................  .......      4.8      5.0      5.3      5.3      5.3      5.3
    Blue Chip....................................  .......      4.4      4.6      5.0      5.1      5.1      5.1
3-month Treasury Bills rate (annual rate):
    CBO and HBC..................................      4.8      4.5      4.5      4.5      4.5      4.5      4.5
    OMB..........................................  .......      4.2      4.3      4.3      4.4      4.4      4.4
    Blue Chip....................................  .......      4.5      4.6      4.8      4.7      4.6      4.7
10-year Treasury Note rate (annual rate):
    CBO and HBC..................................      5.3      5.1      5.3      5.4      5.4      5.4      5.4
    OMB..........................................  .......      4.9      5.0      5.2      5.3      5.4      5.4
    Blue Chip....................................  .......      5.0      5.2      5.4      5.5      5.4      5.5
Corporate (Economic) Profits (percent of GDP):
    CBO and HBC..................................      9.7      9.2      8.5      8.5      8.6      8.6      8.6
    OMB..........................................  .......      9.3      9.0      8.9      8.9      8.9      8.9
Wage and Salary (percent of GDP):
    CBO and HBC..................................     48.8     49.3     49.7     49.5     49.3     49.2     49.1
    OMB..........................................  .......     49.2     49.2     49.1     48.9     48.8    48.8
----------------------------------------------------------------------------------------------------------------
Sources: CBO, OMB, Blue Chip Economic Indicators (March 10, 1999).

             Economic Assumptions of the Budget Resolution

    Economic growth figures in the forecast period do not 
reflect the improvement in the economy since the forecasts were 
made. Economic statistics available since these official 
forecasts show the economy maintaining its high growth with a 
low inflation path. Consequently, most forecasts have been 
revised upward. CBO's forecast is now substantially below other 
forecasts for 1999 and 2000. The Blue Chip forecasts, for 
example, show much bigger improvements in real GDP, by 1.0 
percent for 1999 and 0.5 percent for 2000.
    At the March 3 hearing before the Budget Committee, the 
Director of the Congressional Budget Office was asked whether 
the surplus for fiscal year 2000 might be larger than currently 
projected. His response was ``yes.''
    In the past, when there have been particularly large 
deviations from the official forecasts due to new data, the 
Committee has applied appropriate updates. Therefore, the 
budget resolution assumptions below have been modified to 
prudently reflect a slightly stronger near-term economy than 
CBO--by 0.1 percentage points for 1999 and 0.3 percentage 
points for 2000. This results in a slightly higher level of 
revenues, totaling about $10 billion over the three years from 
1999 to 2001.
    These changes are relatively minor, and are small compared 
to the typical revision between forecasts. The resolution 
retains CBO's forecast with regard to other variables, and also 
retains CBO's long-term projections.

                                                 TABLE 2.--ECONOMIC ASSUMPTIONS OF THE BUDGET RESOLUTION
                                                               [Calendar years 1999--2009]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                   1999    2000    2001    2002    2003    2004    2005    2006    2007    2008    2009
--------------------------------------------------------------------------------------------------------------------------------------------------------
Real GDP (percent year over year)...............................     2.4     2.0     2.2     2.4     2.4     2.4     2.4     2.4     2.3     2.3     2.3
GDP Price Index (percent year over year)........................     1.7     2.0     2.1     2.1     2.1     2.1     2.1     2.1     2.1     2.1     2.1
Consumer Price Inflation (percent year over year)...............     2.5     2.6     2.6     2.6     2.6     2.6     2.6     2.6     2.6     2.6     2.6
Unemployment Rate (annual rate).................................     4.6     5.1     5.4     5.6     5.7     5.7     5.7     5.7     5.7     5.7     5.7
3-month Treasury Bills rate (annual rate).......................     4.5     4.5     4.5     4.5     4.5     4.5     4.5     4.5     4.5     4.5     4.5
10-year Treasury Note rate (annual rate)........................     5.1     5.3     5.4     5.4     5.4     5.4     5.4     5.4     5.4     5.4     5.4
Corporate Profits Income Share (percent of GDP).................     9.2     8.5     8.5     8.6     8.6     8.6     8.6     8.5     8.4     8.3     8.2
Wage and Salary Income Share (percent of GDP)...................    49.3    49.7    49.5    49.3    49.2    49.1    49.1    49.1    49.1    49.1    49.1
--------------------------------------------------------------------------------------------------------------------------------------------------------


                   FUNCTION-BY-FUNCTION PRESENTATION

                              ----------                              

    Please note the following:

--In the tables accompanying these functional presentations, 
    numbers may not add due to rounding.
--Because the fiscal year 2000 budget will be in balance 
    without counting Social Security, the functional totals 
    shown exclude Social Security revenues and benefit 
    payments, as well as other amounts designated as ``off 
    budget.''
                     Function 050: National Defense

                              ----------                              


                            function summary

    The National Defense function includes funds to develop, 
maintain, and equip the military forces of the United States. 
Roughly 95 percent of the funding in this function goes to 
Department of Defense-Military Activities, including funds for 
ballistic missile defense. That component also includes pay and 
benefits for military and civilian personnel; research, 
development, testing, and evaluation; procurement of weapons 
systems; military construction and family housing; and 
operations and maintenance of the defense establishment. The 
remaining funding in the function goes toward atomic energy 
defense activities of the Department of Energy, and other 
defense-related activities.

                summary of committee-reported resolution

    For discretionary spending, the budget resolution calls for 
$290.0 billion in budget authority [BA] and $275.8 billion in 
outlays in fiscal year 2000, and $3,210.6 billion in BA and 
$3,059.9 billion in outlays over 10 years. Mandatory spending 
would be -$1.2 billion in BA and outlays in fiscal year 2000, 
and -$10.0 billion in BA and -$10.1 billion in outlays over 10 
years.

                     Function 050: National Defense
                        [in billions of dollars]
------------------------------------------------------------------------
                                       2000      2000-2004    2000-2009
------------------------------------------------------------------------
Budget Authority.................        288.8      1,546.1      3,200.7
Outlays..........................        274.6      1,469.3      3,049.9
------------------------------------------------------------------------

                  Function 150: International Affairs

                              ----------                              


                            function summary

    Funds distributed through the International Affairs 
function provide for international development and humanitarian 
assistance; international security assistance; the conduct of 
foreign affairs; foreign information and exchange activities; 
and international financial programs. The major departments and 
agencies in this function include the Department of State, the 
Department of the Treasury, and the Agency for International 
Development.

                summary of committee-reported resolution

    For discretionary spending, the budget resolution calls for 
$16.4 billion in budget authority [BA] and $18.1 billion in 
outlays in fiscal year 2000. The 10-year spending totals are 
$155.4 billion in BA and $165.8 billion in outlays. Mandatory 
spending in this function would be -$5.2 billion in BA and 
-$3.7 billion in outlays in fiscal year 2000, and -$29.2 
billion in BA and -$32.7 billion in outlays over 10 years.

                   FUNCTION 150: INTERNATIONAL AFFAIRS
                        [In billions of dollars]
------------------------------------------------------------------------
                                       2000      2000-2004    2000-2009
------------------------------------------------------------------------
Budget Authority.................         11.2         56.7        126.2
Outlays..........................         14.5         70.9        133.1
------------------------------------------------------------------------

          Function 250: General Science, Space, and Technology

                              ----------                              


                            function summary

    The General Science, Space, and Technology function 
consists of funds in two major categories: general science and 
basic research, and space flight, research, and supporting 
activities. The general science component includes the budgets 
for the National Science Foundation [NSF], and the high-energy 
and nuclear physics research programs of the Department of 
Energy [DOE]. But the largest component of the function--about 
71 percent of its total outlays--is for space flight, research, 
and supporting activities of the National Aeronautics and Space 
Administration [NASA] (except for NASA's air transportation 
programs, which are included in Function 400).

                summary of committee-reported resolution

    For discretionary spending, the budget resolution calls for 
$17.9 billion in budget authority [BA] and $18.2 billion in 
outlays in fiscal year 2000. The 10-year spending totals are 
$179.0 billion in BA and $177.7 billion in outlays. Mandatory 
spending in this function would be $100 million in BA and 
outlays in fiscal year 2000, and $200 million in BA and $300 
million in outlays over 10 years.

          FUNCTION 250: GENERAL SCIENCE, SPACE, AND TECHNOLOGY
                        [In billions of dollars]
------------------------------------------------------------------------
                                       2000      2000-2004    2000-2009
------------------------------------------------------------------------
Budget Authority.................         18.0         89.6        179.1
Outlays..........................         18.2         89.6        178.6
------------------------------------------------------------------------

                          Function 270: Energy

                              ----------                              


                            function summary

    The Energy function reflects the civilian activities in the 
Department of Energy. Through this function, spending is 
provided for energy supply programs; rural electricity and 
telecommunications loans, administered through the Department 
of Agriculture; electric power generation and transmission 
programs for the three Power Marketing Administrations; and 
power generation and transmission programs of the Tennessee 
Valley Authority [TVA]. The function also provides funds for 
energy conservation programs; emergency energy preparedness; 
and energy information, policy, and regulation programs, and 
the operations of the Nuclear Regulatory Commission, which 
oversees the nuclear power industry.

                summary of committee-reported resolution

    For discretionary spending, the budget resolution calls for 
$1.8 billion in budget authority [BA] and $2.6 billion in 
outlays in fiscal year 2000, and $17.5 billion in BA and $18.7 
billion in outlays over 10 years. Mandatory spending in this 
function would be -$1.8 billion in BA and -$3.2 billion in 
outlays in fiscal year 2000, and -$21.1 billion in BA and 
-$33.1 billion in outlays over 10 years.

                          FUNCTION 270: ENERGY
                        [In billions of dollars]
------------------------------------------------------------------------
                                       2000      2000-2004    2000-2009
------------------------------------------------------------------------
Budget Authority.................          0.0         -2.0         -3.7
Outlays..........................         -0.7         -7.5        -14.1
------------------------------------------------------------------------

            Function 300: Natural Resources and Environment

                              ----------                              


                        FUNCTION SUMMARY

    Funds distributed through the Natural Resources and 
Environment function are intended to develop, manage, and 
maintain the Nation's natural resources, and to promote a clean 
environment. Funding is provided for water resources, 
conservation and land management, recreational resources, 
pollution control and abatement, and other natural resources. 
The major departments and agencies in this function are the 
Department of the Interior, including the National Park 
Service, the Bureau of Land Management, the Bureau of 
Reclamation, and the Fish and Wildlife Service; certain 
agencies in the Department of Agriculture, including 
principally the Forest Service; the National Oceanic and 
Atmospheric Administration [NOAA], in the Department of 
Commerce; the Army Corps of Engineers; and the Environmental 
Protection Agency.

                summary of committee-reported resolution

    The Budget Committee recognizes the importance of 
stewardship and management of our National Wildlife Refuges, 
National Forests, National Parks, and Bureau of Land Management 
Lands, and for continued permanent protection of land, water, 
and recreational opportunities through the Land and Water 
Conservation Fund. In addition, the budget resolution assumes 
that the program of Pacific Northwest salmon recovery ought to 
be made a high priority item as the appropriate committees in 
Congress create their priorities.
    For discretionary spending, the budget resolution calls for 
$22.0 billion in budget authority [BA] and $21.9 billion in 
outlays in fiscal year 2000. The 10-year spending totals are 
$226.8 billion in BA and $224.8 billion in outlays. Mandatory 
spending in this function would be $800 million in BA and 
outlays in fiscal year 2000, and $5.6 billion in BA and $5.0 
billion in outlays over 10 years.

             FUNCTION 300: NATURAL RESOURCES AND ENVIRONMENT
                        [In billions of dollars)]
------------------------------------------------------------------------
                                       2000      2000-2004    2000-2009
------------------------------------------------------------------------
Budget Authority.................         22.8        113.7        232.2
Outlays..........................         22.6        112.1        229.5
------------------------------------------------------------------------

                       Function 350: Agriculture

                              ----------                              


                            function summary

    The Agriculture function includes funds for direct 
assistance and loans to food and fiber producers, export 
assistance, market information and inspection services, and 
agricultural research and services.

                summary of committee-reported resolution

    It is the intent of the Budget Committee that Function 350 
allow for the implementation of a new, comprehensive, flexible 
crop insurance program for all geographic regions of the 
country. To assist in reforming the current crop insurance 
program, the budget resolution provides $6 billion in mandatory 
spending through fiscal year 2004. The Budget Committee will 
work with the Agriculture Committee to ensure the crop 
insurance program fits within the budget.
    For discretionary spending, the budget resolution calls for 
$3.9 billion in budget authority [BA] and $4.0 billion in 
outlays in fiscal year 2000. The 10-year spending totals are 
$36.5 billion in BA and $36.7 billion in outlays. Mandatory 
spending in this function would be $10.4 billion in BA and $9.1 
billion in outlays in fiscal year 2000, and $80.3 billion in BA 
and $65.0 billion in outlays over 10 years.

                        FUNCTION 350: AGRICULTURE
                        [In billions of dollars]
------------------------------------------------------------------------
                                       2000      2000-2004    2000-2009
------------------------------------------------------------------------
Budget Authority.................         14.3         63.7        117.3
Outlays..........................         13.2         55.3        101.8
------------------------------------------------------------------------

               Function 370: Commerce and Housing Credit

                              ----------                              


                            function summary

    The mortgage credit component of this function includes 
housing assistance through the Federal Housing Administration 
[FHA], and rural housing programs of the Department of 
Agriculture. The function includes net postal service spending 
and spending for deposit insurance activities related to banks, 
thrifts, and credit unions. Also included is funding for the 
Commerce Department's National Institute of Standards and 
Technology, including the Advanced Technology Program [ATP] and 
the Manufacturing Extension Program [MEP]; the National 
Telecommunications and Information Administration; the Bureau 
of the Census; and independent agencies such as the Securities 
and Exchange Commission, the Commodity Futures Trading 
Commission, and the Federal Communications Commission.

                summary of committee-reported resolution

    For on-budget discretionary spending, the budget resolution 
calls for $3.7 billion in budget authority [BA] and $3.9 
billion in outlays in fiscal year 2000. The 10-year spending 
totals are $21.1 billion in BA and $20.9 billion in outlays. 
On-budget mandatory spending in this function would be $6.1 
billion in BA and $600 million in outlays in fiscal year 2000, 
and $106.2 billion in BA and $65.5 billion in outlays over 10 
years.
    (Please note: because the budget now is balanced without 
counting Social Security, the figures below reflect totals 
excluding Social Security revenues and benefits, as well as 
other amounts designated as ``off budget.'')

          FUNCTION 370: COMMERCE AND HOUSING CREDIT (on-budget)
                        [In billions of dollars]
------------------------------------------------------------------------
                                       2000      2000-2004    2000-2009
------------------------------------------------------------------------
Budget Authority.................          9.9         63.4        127.4
Outlays..........................          4.5         41.8         86.5
------------------------------------------------------------------------

                      Function 400: Transportation

                              ----------                              


                            function summary

    This function supports all major Federal transportation 
programs. About two-thirds of the funding provided here is for 
ground transportation programs. This includes the Federal-aid 
highway program, and mass transit operating and capital 
assistance. Also under ground transportation are rail 
transportation through the National Rail Passenger Corporation 
[Amtrak], and high-speed rail and rail safety programs. 
Additional components of this function are air transportation, 
including the Federal Aviation Administration [FAA] airport 
improvement program, the facilities and equipment program, and 
the operation of the air traffic control system; water 
transportation through the Coast Guard and the Maritime 
Administration; and other transportation support activities. 
Funds for air transportation programs under the auspices of 
NASA are distributed through this function as well.

                summary of committee-reported resolution

    For discretionary spending, the budget resolution calls for 
$12.2 billion in budget authority [BA] and $43.4 billion in 
outlays in fiscal year 2000. The 10-year spending totals are 
$113.8 billion in BA and $445.5 billion in outlays. Mandatory 
spending in this function would be $39.5 billion in BA and $2.4 
billion in outlays in fiscal year 2000, and $406.0 billion in 
BA and $18.6 billion in outlays over 10 years.

                      FUNCTION 400: TRANSPORTATION
                        [In billions of dollars]
------------------------------------------------------------------------
                                       2000      2000-2004    2000-2009
------------------------------------------------------------------------
Budget Authority.................         51.8        258.2        520.0
Outlays..........................         45.8        233.9        464.2
------------------------------------------------------------------------

            Function 450: Community and Regional Development

                              ----------                              


                            function summary

    The Community and Regional Development function reflects 
programs that provide Federal funding for economic and 
community development in both urban and rural areas. Funding 
for disaster relief and insurance--including activities of the 
Federal Emergency Management Agency--also are provided in this 
function.

                summary of committee-reported resolution

    For discretionary spending, the budget resolution calls for 
$7.4 billion in budget authority [BA] and $11.1 billion in 
outlays in fiscal year 2000. The 10-year spending totals are 
$57.4 billion in BA and $66.1 billion in outlays. Mandatory 
spending in this function would be $0 in BA and -$500 million 
in outlays in fiscal year 2000, and $0 in BA and -$5.5 billion 
in outlays over 10 years.

            FUNCTION 450: COMMUNITY AND REGIONAL DEVELOPMENT
                        [In billions of dollars]
------------------------------------------------------------------------
                                       2000      2000-2004    2000-2009
------------------------------------------------------------------------
Budget Authority.................          7.4         29.3         57.3
Outlays..........................         10.7         38.4         60.7
------------------------------------------------------------------------

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

                              ----------                              


                            function summary

    Roughly one-third of the funding in the Education, 
Training, Employment, and Social Services function is for 
Federal programs in elementary, secondary, and vocational 
education.
    Also shown here are funds for higher education programs, 
accounting for about 21 percent of the function's spending; 
research and general education aids, including the National 
Endowment for the Arts and the National Endowment for the 
Humanities; training and employment services; other labor 
services; and grants to States for general social services and 
rehabilitation services, such as the Social Services Block 
Grant and vocational rehabilitation.

                summary of committee-reported resolution

          subfunction 501: elementary and secondary education

    For discretionary spending, the budget resolution calls for 
$22.0 billion in budget authority [BA] and $20.1 billion in 
outlays in fiscal year 2000, and $257.9 billion in BA and 
$248.9 billion in outlays over 10 years. There is no mandatory 
spending in this subfunction.
    The $22 billion in fiscal year 2000 budget authority for 
elementary, secondary, and vocational education is $1.2 billion 
more than the President's request for fiscal year 2000.

                       SUBFUNCTION 501: EDUCATION
                        [In billions of dollars]
------------------------------------------------------------------------
                                       2000      2000-2004    2000-2009
------------------------------------------------------------------------
Budget Authority.................         22.0        123.4        257.9
Outlays..........................         20.1        114.8        248.9
------------------------------------------------------------------------

    Among the key elements in the resolutions assumptions are 
the following:
    The Committee considers special education of the highest 
priority among Federal education programs. The Federal 
Government has mandated that all children with disabilities 
have access to a free and appropriate public education. 
Although the Individuals with Disabilities Education Act [IDEA] 
authorized the Federal Government to provide 40 percent of the 
average per-pupil expenditure for children with disabilities, 
IDEA has not received full funding at its authorized levels. To 
relieve the enormous burden this unfunded mandate places on 
local schools, the Committee supports increased funding for 
IDEA. Furthermore, the Committee believes that before the 
Federal Government pursues new spending initiatives, it should 
strive to meet its current commitment to help local communities 
fund special education.
    The budget provides States the flexibility to use unspent 
welfare block grant funds (from Function 600) for education. 
The budget resolution also includes Sense of the House language 
supporting a requirement that 95 percent of Federal elementary 
and secondary education funds reach classrooms.

                summary of committee-reported resolution

    subfunctions 502-506: training, employment, and social services

    For discretionary spending, the budget resolution calls for 
$28.1 billion in budget authority [BA] and $28.2 billion in 
outlays in fiscal year 2000, and $261.9 billion in BA and 
$259.0 billion in outlays over 10 years. Mandatory spending in 
this function would be $15.2 billion in BA and $15.3 billion in 
outlays in fiscal year 2000, and $177.2 billion in BA and 
$173.6 billion in outlays over 10 years.

     SUBFUNCTIONS 502-506: TRAINING, EMPLOYMENT, AND SOCIAL SERVICES
                        [In billions of dollars]
------------------------------------------------------------------------
                                       2000      2000-2004    2000-2009
------------------------------------------------------------------------
Budget Authority.................         43.3        211.6        438.6
Outlays..........................         43.5        210.5        432.6
------------------------------------------------------------------------

                          Function 550: Health

                              ----------                              


                            function summary

    The Health function consists of health care services, 
including Medicaid, the Nation's major program covering medical 
and long-term care costs for low-income persons; health 
research and training; and consumer and occupational health and 
safety. Medicaid represents about 88 percent of the spending in 
this function.

                summary of committee-reported resolution

    The budget resolution assumes that the current authority 
for the Federal Government to recoup monies from the States' 
tobacco settlement will be overturned.
    For discretionary spending, the budget resolution calls for 
$29.3 billion in budget authority [BA] and $28.3 billion in 
outlays in fiscal year 2000. The 10-year spending totals are 
$271.7 billion in BA and $267.1 billion in outlays. Mandatory 
spending in this function would be $126.9 billion in BA and 
$124.7 billion in outlays in fiscal year 2000, and $1,842.7 
billion in BA and $1,841.5 billion in outlays over 10 years.

                          FUNCTION 550: HEALTH
                        [In billions of dollars]
------------------------------------------------------------------------
                                       2000      2000-2004    2000-2009
------------------------------------------------------------------------
Budget Authority.................        156.2        876.2      2,114.4
Outlays..........................        153.0        873.0      2,108.7
------------------------------------------------------------------------


                         Function 570: Medicare

                              ----------                              


                            function summary

    This budget function reflects the Medicare Part A Hospital 
Insurance [HI] Program, Part B Supplementary Medical Insurance 
[SMI] Program, and premiums paid by qualified aged and disabled 
beneficiaries. It also includes the ``Medicare+Choice'' 
Program, which covers Part A and Part B benefits and allows 
beneficiaries to choose certain private health insurance plans. 
Medicare+Choice plans may include health maintenance 
organizations, preferred provider organizations, provider-
sponsored organizations, medical savings accounts (up to 
390,000 covered individuals), and private fee-for-service 
plans. Such plans may add benefits and cover premiums, 
copayments, and deductibles required by the traditional 
Medicare Program.

                summary of committee-reported resolution

    The budget resolution rejects the President's $11.9 billion 
in Medicare cuts, including those he has proposed for certain 
prescription drugs.
    For discretionary spending, the budget resolution calls for 
$3.0 billion in budget authority [BA] and outlays in fiscal 
year 2000, and $30.0 billion in BA and outlays over 10 years. 
Mandatory spending in this function would be $205.7 billion in 
BA and outlays in fiscal year 2000, and $2,850.6 billion in BA 
and $2,850.3 billion in outlays over 10 years.

                         FUNCTION 570: MEDICARE
                        [In billions of dollars]
------------------------------------------------------------------------
                                       2000      2000-2004    2000-2009
------------------------------------------------------------------------
Budget Authority.................        208.7      1,180.7      2,880.4
Outlays..........................        208.7      1,180.8      2,880.1
------------------------------------------------------------------------

                     Function 600: Income Security


                            function summary

    The Income Security function covers most of the Federal 
Government's income support programs. The function includes 
general retirement and disability insurance (excluding Social 
Security)--mainly through the Pension Benefit Guaranty 
Corporation [PBGC]--and benefits to railroad retirees. Other 
components are Federal employee retirement and disability 
benefits (including military retirees); unemployment 
compensation; low-income housing assistance; food and nutrition 
assistance; and other income security programs. This last 
category includes Temporary Assistance to Needy Families 
[TANF], the government's principal welfare program; 
Supplemental Security Income [SSI]; and spending for the 
refundable portion of the Earned Income Credit [EIC]. Agencies 
involved in these programs include the Departments of 
Agriculture, Health and Human Services, Housing and Urban 
Development, and Education; the Social Security Administration 
(for SSI); and the Office of Personnel Management (for Federal 
retirement benefits).

                summary of committee-reported resolution

    As noted under subfunction 501, the budget resolution 
assumes that States will be granted flexibility to use a 
portion of unspent TANF block grant funds for education.
    For discretionary spending, the budget resolution calls for 
$28.7 billion in budget authority [BA] and $39.4 billion in 
outlays in fiscal year 2000. The 10-year spending totals are 
$339.3 billion in BA and $399.3 billion in outlays. Mandatory 
spending in this function would be $215.7 billion in BA and 
$208.7 billion in outlays in fiscal year 2000, and $2,553.4 
billion in BA and $2,512.5 billion in outlays over 10 years.

                      FUNCTION 600: INCOME SECURITY
                        [In billions of dollars]
------------------------------------------------------------------------
                                       2000      2000-2004    2000-2009
------------------------------------------------------------------------
Budget Authority.................        244.4      1,320.8      2,892.8
Outlays..........................        248.1      1,335.3      2,911.8
------------------------------------------------------------------------

                     Function 650: Social Security


                            function summary

    Function 650 consists of the Social Security Program, or 
Old Age, Survivors, and Disability Insurance [OASDI]. Under 
provisions of the Budget Enforcement Act, Social Security trust 
funds are ``off-budget.'' Nevertheless, the administrative 
expenses of the Social Security Administration [SSA], which 
manages the program, are on-budget. Social Security is the 
largest budget function in terms of total outlays, and provides 
funds for the government's largest entitlement program; but the 
``on-budget'' totals `` the ones reflected below--are 
relatively small.

                summary of committee-reported resolution

    For on-budget discretionary spending, the budget resolution 
calls for $3.2 billion in budget authority [BA] and $3.3 
billion in outlays in fiscal year 2000. The 10-year on-budget 
totals are $32.0 billion in BA and $31.2 billion in outlays. 
On-budget mandatory spending in this function would be $11.1 
billion in BA and outlays in fiscal year 2000, and $145.3 
billion in BA and outlays over 10 years.
    (Please note: Because the budget is balanced without 
counting Social Security, the figures below reflect totals 
excluding Social Security revenues and benefits.)

                FUNCTION 650: SOCIAL SECURITY (on-budget)
                        [In billions of dollars]
------------------------------------------------------------------------
                                       2000      2000-2004    2000-2009
------------------------------------------------------------------------
Budget Authority.................         14.2         77.0        177.0
Outlays..........................         14.3         77.1        177.0
------------------------------------------------------------------------

              Function 700: Veterans Benefits and Services

                              ----------                              


                            function summary

    The Veterans Benefits and Services function reflects 
funding for the Department of Veterans Affairs [VA], which 
provides benefits to veterans who meet various eligibility 
rules. Benefits range from income security for veterans; 
veterans education, training, and rehabilitation services; and 
hospital and medical care for veterans. There are about 25.6 
million veterans and more than 40 million members of their 
families.

                summary of committee-reported resolution

    The budget provides a $1.1 billion-increase in fiscal year 
2000 for veterans' health care. The Budget Committee believe 
veterans' health care should be a priority during fiscal year 
2000.
    For discretionary spending, the budget resolution calls for 
$20.2 billion in budget authority [BA] and $20.4 billion in 
outlays in fiscal year 2000. The 10-year spending totals are 
$190.9 billion in BA and $191.3 billion in outlays. Mandatory 
spending in this function would be $24.5 billion in BA and 
$24.6 billion in outlays in fiscal year 2000, and $276.3 
billion in BA and $278.9 billion in outlays over 10 years.

              FUNCTION 700: VETERANS BENEFITS AND SERVICES
                        [In billions of dollars]
------------------------------------------------------------------------
                                       2000      2000-2004    2000-2009
------------------------------------------------------------------------
Budget Authority.................         44.7        225.8        467.3
Outlays..........................         45.1        228.3        470.3
------------------------------------------------------------------------

                Function 750: Administration of Justice

                              ----------                              


                            function summary

    The first component of the Administration of Justice 
function consists of funding for Federal law enforcement 
activities. This includes criminal investigations by the 
Federal Bureau of Investigation [FBI] and the Drug Enforcement 
Administration [DEA], and border enforcement and the control of 
illegal immigration by the Customs Service and Immigration and 
Naturalization Service [INS]. Also funded through this function 
are the Federal courts; Federal prison construction; and 
criminal justice assistance.

                summary of committee-reported resolution

    For discretionary spending, the budget resolution calls for 
$23.1 billion in budget authority [BA] and $25.1 billion in 
outlays in fiscal year 2000. The 10-year spending totals are 
$242.3 billion in BA and $245.3 billion in outlays. Mandatory 
spending in this function would be $300 million in BA and $200 
million in outlays in fiscal year 2000, and $13.2 billion in BA 
and $12.1 billion in outlays over 10 years.

                 FUNCTION 750: ADMINISTRATION OF JUSTICE
                        [In billions of dollars]
------------------------------------------------------------------------
                                       2000      2000-2004    2000-2009
------------------------------------------------------------------------
Budget Authority.................         23.4        123.6        255.7
Outlays..........................         25.3        125.8        257.2
------------------------------------------------------------------------

                    Function 800: General Government

                              ----------                              


                            function summary

    The General Government function consists of the activities 
of the Legislative Branch; the Executive Office of the 
President; general tax collection and fiscal operations of the 
Department of Treasury (including the Internal Revenue 
Service); the property and personnel costs of the General 
Services Administration and the Office of Personnel Management; 
general purpose fiscal assistance to States, localities, the 
District of Columbia, and U.S. territories; and other general 
government activities. The Internal Revenue Service accounts 
for about half of the spending in this function.

                summary of committee-reported resolution

    For discretionary spending, the budget resolution calls for 
$11.4 billion in budget authority [BA] and $12.3 billion in 
outlays in fiscal year 2000. The 10-year spending totals are 
$111.2 billion in BA and $112.1 billion in outlays. Mandatory 
spending in this function would be $900 million in BA and $1.2 
billion in outlays in fiscal year 2000, and $9.8 billion in BA 
and $10.2 billion in outlays over 10 years.

                    FUNCTION 800: GENERAL GOVERNMENT
                        [In billions of dollars]
------------------------------------------------------------------------
                                       2000      2000-2004    2000-2009
------------------------------------------------------------------------
Budget Authority.................         12.3         60.5        121.3
Outlays..........................         13.5         62.8        122.4
------------------------------------------------------------------------

                       Function 900: Net Interest

                              ----------                              


                            function summary

    Net Interest is the interest paid for the Federal 
Government's borrowing. Function 900 is a mandatory payment, 
with no discretionary components. Because the budget is 
balanced without counting Social Security, the figures below 
reflect totals excluding Social Security.

                 FUNCTION 900: NET INTEREST (on-budget)
                        [In billions of dollars]
------------------------------------------------------------------------
                                       2000      2000-2004    2000-2009
------------------------------------------------------------------------
Budget Authority.................        275.5      1,342.4      2,626.4
Outlays..........................        275.5      1,342.4      2,226.4
------------------------------------------------------------------------

                        Function 920: Allowances

                              ----------                              


                            function summary

    The Allowances function is used for planning purposes to 
address the budgetary effects of proposals or assumptions that 
cross various other budget functions. Once such changes are 
enacted, the budgetary effects are distributed to the 
appropriate budget functions.

                summary of committee-reported resolution

    For discretionary spending, the budget resolution calls for 
-$8.0 billion in budget authority [BA] and -$8.1 billion in 
outlays in fiscal year 2000. The 10-year spending totals are 
-$56.7 billion in BA and -$78.7 billion in outlays. There is no 
mandatory spending in this function.

                        FUNCTION 920: ALLOWANCES
                        [In billions of dollars]
------------------------------------------------------------------------
                                       2000      2000-2004    2000-2009
------------------------------------------------------------------------
Budget Authority.................         -8.0        -31.8        -56.7
Outlays..........................         -8.1        -50.8        -78.7
------------------------------------------------------------------------

            Function 950: Undistributed Offsetting Receipts

                              ----------                              


                            function summary

    Receipts recorded in this function are either 
intrabudgetary (a payment from one Federal agency to another, 
such as agency payments to the retirement trust funds) or 
proprietary (a payment from the public for some kind of 
business transaction with the government). The main types of 
receipts recorded in this function are: the payments Federal 
employees and agencies make to employee retirement trust funds; 
payments made by companies for the right to explore and produce 
oil and gas on the Outer Continental Shelf; and payments by 
those who bid for the right to buy or use public property or 
resources, such as the electromagnetic spectrum. These receipts 
are treated as negative spending.

                summary of committee-reported resolution

    There is no discretionary spending in this function. 
Mandatory spending in this function would be -$34.3 billion in 
BA and outlays in fiscal year 2000, and -$388.6 billion in BA 
and outlays over 10 years.
    (Please note: because the budget is balanced without 
counting Social Security, the figures below reflect totals 
excluding Social Security.)

       FUNCTION 950: UNDISTRIBUTED OFFSETTING RECEIPTS (on-budget)
                        [In billions of dollars]
------------------------------------------------------------------------
                                       2000      2000-2004    2000-2009
------------------------------------------------------------------------
Budget Authority.................        -34.3       -188.9       -388.6
Outlays..........................        -34.3       -188.9       -388.6
------------------------------------------------------------------------

                                REVENUES

                              ----------                              


                            function summary

    The Revenues function reflects all of the Federal 
Government's various tax receipts. This includes individual 
income taxes; corporate income taxes; social insurance taxes, 
such as the Social Security payroll tax; excise taxes, such as 
the gasoline tax; and other taxes, such as estate and gift 
taxes.

                summary of committee-reported resolution

    In addition to the need to continue restraining the growth 
of government--there are other reasons why tax relief now is 
important.
    Total Federal revenues are at 20.7 percent of Gross 
Domestic Product [GDP] this year. This is the highest level of 
tax revenues since 1944. Tax revenues were 17.8 percent of GDP 
in 1993, the year President Clinton signed his $268-billion tax 
increase.
    According to the Census Bureau, Federal income taxes rose 
from 12.1 percent of the average family's income in 1992 to 
14.9 percent in 1997. Total taxes cost the average family more 
than what they spend on food, shelter, and clothing, according 
to the Tax Foundation.
    The budget resolution provides for historic tax relief--up 
to $15 billion in 2000 and about $800 billion over 10 years--to 
return working Americans' current tax overpayment. The 
President raises taxes by $172 billion over 10 years.
    (Please note: Because the budget is balanced without 
counting Social Security, the figures below reflect totals 
excluding Social Security revenues, as well as other amounts 
designated as ``off budget.'')

                          REVENUES (on-budget)
                        [In billions of dollars]
------------------------------------------------------------------------
                                       2000      2000-2004    2000-2009
------------------------------------------------------------------------
Total Revenues...................      1,408.5      7,416.8     16,155.7
------------------------------------------------------------------------

                             SUMMARY TABLES


                                                               HOUSE BUDGET COMMITTEE RECOMMENDATION--TOTAL SPENDING AND REVENUES
                                                                                    [In billions of dollars]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                        Fiscal year--
                                                           -------------------------------------------------------------------------------------------------------------------------------------
                                                              1999      2000      2001      2002      2003      2004      2005      2006      2007      2008      2009     2000-2004   2000-2009
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                             SUMMARY
Total Spending:
    BA....................................................   1,749.1   1,753.6   1,795.6   1,836.8   1,920.5   1,987.0   2,055.1   2,101.7   2,172.7   2,251.9   2,333.9     9,293.5    20,208.8
    O.....................................................   1,703.9   1,735.1   1,774.8   1,804.6   1,894.7   1,959.2   2,028.1   2,071.1   2,136.4   2,219.3   2,300.8     9,168.4    19,924.1
    On-Budget:
        BA................................................   1,432.8   1,426.6   1,456.1   1,487.3   1,558.3   1,611.7   1,665.6   1,697.0   1,752.2   1,813.8   1,874.4     7,540.0    16,343.0
        O.................................................   1,387.6   1,408.1   1,435.3   1,455.1   1,532.5   1,583.9   1,638.6   1,666.4   1,715.9   1,781.2   1,841.3     7,414.9    16,058.3
    Off-Budget:
        BA................................................     316.3     327.0     339.5     349.5     362.2     375.3     389.5     404.7     420.5     438.1     459.5     1,753.5     3,865.8
        O.................................................     316.3     327.0     339.5     349.5     362.2     375.3     389.5     404.7     420.5     438.1     459.5     1,753.5     3,865.8
Revenues:
    Total.................................................   1,816.1   1,876.5   1,923.0   1,962.6   2,059.9   2,134.0   2,227.8   2,286.2   2,361.5   2,457.2   2,548.8     9,956.0    21,837.5
    On-Budget.............................................   1,369.9   1,408.5   1,435.3   1,456.3   1,532.6   1,584.1   1,651.0   1,684.4   1,733.2   1,802.8   1,867.5     7,416.8    16,155.7
    Off-Budget............................................     446.2     468.0     487.7     506.3     527.3     549.9     576.8     601.8     628.3     654.4     681.3     2,539.2     5,681.8
Surplus/Deficit (-):
    Total.................................................     112.2     141.4     148.2     158.0     165.2     174.8     199.7     215.1     225.1     237.9     248.0       787.6     1,913.4
    On-Budget.............................................     -17.7       0.4         0       1.2       0.1       0.2      12.4      18.0      17.3      21.6      26.2         1.9        97.4
    Off-Budget............................................     129.9     141.0     148.2     156.8     165.1     174.6     187.3     197.1     207.8     216.3     221.8       785.7     1,816.0
Debt Held by the Public (end of year).....................   3,626.8   3,501.8   3,369.3   3,227.4   3,076.2   2,918.6   2,733.1   2,531.5   2,319.0   2,092.4   1,855.7          NA          NA
Debt Subject to Limit (end of year).......................   5,543.6   5,627.7   5,707.7   5,791.5   5,875.0   5,954.8   6,019.6   6,075.4   6,128.7   6,168.1   6,198.1          NA          NA
                                                                                           BY FUNCTION

National Defense (050):
    BA....................................................     279.0     288.8     303.6     308.2     318.3     327.2     328.4     329.6     330.9     332.2     333.5     1,546.1     3,200.7
    O.....................................................     273.1     274.6     285.9     291.7     303.6     313.5     316.7     315.1     313.7     317.1     318.0     1,469.3     3,049.9
International Affairs (150):
    BA....................................................      34.4      11.2      10.6       9.8      11.6      13.5      13.7      13.9      13.9      14.0      14.0        56.7       126.2
    O.....................................................      14.8      14.5      15.1      14.4      13.6      13.3      12.9      12.6      12.4      12.2      12.1        70.9       133.1
General Science, Space, and Technology (250):
    BA....................................................      18.8      18.0      17.9      17.9      17.9      17.9      17.9      17.9      17.9      17.9      17.9        89.6       179.1
    O.....................................................      18.2      18.2      17.9      17.9      17.8      17.8      17.8      17.8      17.8      17.8      17.8        89.6       178.6
Energy (270):
    BA....................................................       1.1       0.0      -1.4      -0.2      -0.1      -0.3      -0.4      -0.5      -0.5      -0.2      -0.1        -2.0        -3.7
    O.....................................................       0.7      -0.7      -3.1      -1.1      -1.2      -1.4      -1.5      -1.5      -1.4      -1.1      -1.1        -7.5       -14.1
Natural Resources and Environment (300):
    BA....................................................      24.2      22.8      22.5      22.4      22.5      23.5      23.5      23.6      23.7      23.7      24.0       113.7       232.2
    O.....................................................      23.4      22.6      22.0      21.4      22.6      23.5      23.4      23.5      23.4      23.4      23.7       112.1       229.5
Agriculture (350):
    BA....................................................      22.5      14.3      13.5      11.8      12.0      12.1      10.6      10.6      10.7      10.8      10.9        63.7       117.3
    O.....................................................      20.4      13.2      11.3      10.0      10.3      10.5       9.9       9.1       9.1       9.2       9.2        55.3       101.8
Commerce and Housing Credit (370):
    BA....................................................       1.9       9.7      10.3      13.9      14.5      13.9      12.7      12.6      12.7      12.6      13.4        62.3       126.3
    O.....................................................       0.8       4.3       5.5       9.6      10.9      10.4       9.4       9.1       8.9       8.5       8.8        40.7        85.4
    On-budget:
        BA................................................       1.9       9.9      10.6      14.5      14.5      13.9      12.7      12.6      12.7      12.6      13.4        63.4       127.4
        O.................................................       0.8       4.5       5.8      10.2      10.9      10.4       9.4       9.1       8.9       8.5       8.8        41.8        86.5
    Off-budget:
        BA................................................       0.0      -0.2      -0.3      -0.6       0.0       0.0       0.0       0.0       0.0       0.0       0.0        -1.1        -1.1
        O.................................................       0.0      -0.2      -0.3      -0.6       0.0       0.0       0.0       0.0       0.0       0.0       0.0        -1.1        -1.1
Transportation (400):
    BA....................................................      51.3      51.8      51.0      50.8      52.3      52.3      52.3      52.3      52.4      52.4      52.4       258.2       520.0
    O.....................................................      44.0      45.8      47.7      47.3      46.8      46.3      46.1      46.0      46.0      46.1      46.1       233.9       464.2
Community and Regional Development (450):
    BA....................................................      10.2       7.4       5.3       5.3       5.7       5.6       5.6       5.6       5.6       5.6       5.6        29.3        57.3
    O.....................................................      11.4      10.7       9.1       7.0       6.1       5.5       4.8       4.5       4.4       4.3       4.3        38.4        60.7
Elementary and Secondary Education (501):
    BA....................................................      16.8      22.0      24.1      24.5      25.9      26.9      26.9      26.9      26.9      26.9      26.9       123.4       257.9
    O.....................................................      17.8      20.1      21.9      22.7      24.5      25.6      26.6      26.8      26.9      26.9      26.9       114.8       248.9
Training, Employment and Social Services (502-506):
    BA....................................................      44.2      43.3      41.4      41.2      42.7      43.0      43.9      44.6      45.5      46.5      46.5       211.6       438.6
    O.....................................................      42.0      43.5      41.9      40.9      41.9      42.3      42.9      43.7      44.5      45.5      45.5       210.5       432.6
Health (550):
    BA....................................................     147.5     156.2     164.1     173.3     184.7     197.9     212.8     228.4     246.3     265.2     285.5       876.2     2,114.4
    O.....................................................     140.7     153.0     162.4     173.8     185.3     198.5     212.6     228.3     245.5     264.4     284.9       873.0     2,108.7
Medicare (570):
    BA....................................................     195.2     208.7     222.1     230.6     250.7     268.6     295.6     306.8     337.6     365.6     394.1     1,180.7     2,880.4
    O.....................................................     194.6     208.7     222.3     230.2     250.9     268.7     295.2     306.9     337.8     365.2     394.2     1,180.8     2,880.1
Income Security (600):
    BA....................................................     235.2     244.4     250.5     262.7     277.0     286.2     298.5     304.8     310.6     323.9     334.2     1,320.8     2,892.8
    O.....................................................     238.2     248.1     257.4     267.0     276.8     286.0     298.7     305.2     311.5     325.4     335.7     1,335.3     2,911.8
Social Security (650):
    BA....................................................     390.6     407.2     426.1     445.9     467.0     489.8     514.6     540.9     568.7     599.0     633.6       2,236     5,092.8
    O.....................................................     390.8     407.3     426.1     445.9     467.0     489.8     514.5     540.9     568.7     599.0     633.6     2,236.1     5,092.8
    On-budget:
        BA................................................      14.5      14.2      13.8      15.6      16.3      17.1      18.0      18.9      19.9      21.0      22.2        77.0       177.0
        O.................................................      14.7      14.3      13.8      15.6      16.3      17.1      17.9      18.9      19.9      21.0      22.2        77.1       177.0
    Off-budget:
        BA................................................     376.1     393.0     412.3     430.3     450.7     472.7     496.6     522.0     548.8     578.0     611.4     2,159.0     4,915.8
        O.................................................     376.1     393.0     412.3     430.3     450.7     472.7     496.6     522.0     548.8     578.0     611.4     2,159.0     4,915.8
Veterans Benefits and Services (700):
    BA....................................................      43.0      44.7      44.3      44.7      45.9      46.2      48.8      47.3      47.8      48.5      49.1       225.8       467.3
    O.....................................................      42.9      45.1      45.0      45.1      46.4      46.7      49.3      47.8      46.2      49.0      49.7       228.3       470.3
Administration of Justice (750):
    BA....................................................      26.7      23.4      24.7      24.7      24.6      26.2      26.3      26.4      26.4      26.5      26.5       123.6       255.7
    O.....................................................      25.1      25.3      25.1      24.9      24.4      26.1      26.2      26.2      26.3      26.3      26.4       125.8       257.2
General Government (800):
    BA....................................................      17.2      12.3      11.9      12.1      12.1      12.1      12.1      12.1      12.2      12.2      12.2        60.5       121.3
    O.....................................................      15.7      13.5      12.6      12.3      12.2      12.2      11.9      11.8      11.9      12.1      11.9        62.8       122.4
Net Interest (900):
    BA....................................................     229.4     217.7     207.0     196.3     186.4     176.5     165.2     153.3     141.5     128.5     115.4       983.9     1,687.8
    O.....................................................     229.4     217.7     207.0     196.3     186.4     176.5     165.2     153.3     141.5     128.5     115.4       983.9     1,687.8
    On-budget:
        BA................................................     281.8     275.5     271.0     267.4     265.1     263.4     261.0     258.6     257.0     254.7     252.7     1,342.4     2,626.4
        O.................................................     281.8     275.5     271.0     267.4     265.1     263.4     261.0     258.6     257.0     254.7     252.7     1,342.4     2,626.4
    Off-budget:
        BA................................................     -52.4     -57.8     -64.0     -71.1     -78.7     -86.9     -95.8    -105.3    -115.5    -126.2    -137.3      -358.5      -938.6
        O.................................................     -52.4     -57.8     -64.0     -71.1     -78.7     -86.9     -95.8    -105.3    -115.5    -126.2    -137.3      -358.5      -938.6
Allowances (920):
    BA....................................................       0.0      -8.0      -8.5      -6.4      -4.4      -4.5      -4.5      -4.6      -5.2      -5.3      -5.3       -31.8       -56.7
    O.....................................................       0.0      -8.1     -12.9     -20.0      -4.8      -5.0      -5.1      -5.2      -5.8      -5.9      -5.9       -50.8       -78.7
Undistributed Offsetting Receipts (950):
    BA....................................................     -40.1     -42.3     -45.4     -52.7     -46.8     -47.6     -49.4     -50.8     -52.9     -54.6     -56.4      -234.8      -498.9
    O.....................................................     -40.1     -42.3     -45.4     -52.7     -46.8     -47.6     -49.4     -50.8     -52.9     -54.6     -56.4      -234.8      -498.9
    On-budget:
        BA................................................     -32.7     -34.3     -36.9     -43.6     -37.0     -37.1     -38.1     -38.8     -40.1     -40.9     -41.8      -188.9      -388.6
        O.................................................     -32.7     -34.3     -36.9     -43.6     -37.0     -37.1     -38.1     -38.8     -40.1     -40.9     -41.8      -188.9      -388.6
    Off-budget:
        BA................................................      -7.4      -8.0      -8.5      -9.1      -9.8     -10.5     -11.3     -12.0     -12.8     -13.7     -14.6       -45.9      -110.3
        O.................................................      -7.4      -8.0      -8.5      -9.1      -9.8     -10.5     -11.3     -12.0     -12.8     -13.7     -14.6       -45.9      -110.3
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


                                                                              HOUSE BUDGET COMMITTEE RECOMMENDATION
                                                                                     DISCRETIONARY SPENDING
                                                                                    [In billions of dollars]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                         Fiscal year--
                                                             -----------------------------------------------------------------------------------------------------------------------------------
                                                                1999      2000      2001      2002      2003      2004      2005      2006      2007      2008      2009    2000-2004  2000-2009
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                             SUMMARY

Total Discretionary Spending:
    BA......................................................     572.8     536.3     541.3     550.4     568.6     580.6     581.9     583.1     583.8     585.0     586.5    2,777.2    5,697.5
    O.......................................................     574.1     570.9     571.0     567.0     592.9     602.5     605.2     603.1     600.8     603.9     604.8    2,904.3    5,922.1
    Defense:
        BA..................................................     280.1     290.0     304.8     309.3     319.4     328.1     329.3     330.5     331.8     333.1     334.3    1,551.6    3,210.6
        O...................................................     274.2     275.8     287.1     292.8     304.7     314.4     317.6       316     314.6       318     318.9    1,474.8    3,059.9
    Nondefense:
        BA..................................................     292.7     246.3     236.6     241.1     249.3     252.5     252.6     252.6     252.0     252.0     252.1    1,225.8    2,487.1
        O...................................................     299.9     295.2     283.9     274.2     288.2     288.1     287.6     287.1     286.2     285.9     285.9    1,429.6    2,862.3

                                                                                           BY FUNCTION

National Defense (050):
    BA......................................................     280.1     290.0     304.8     309.3     319.4     328.1     329.3     330.5     331.8     333.1     334.3    1,551.5    3,210.6
    O.......................................................     274.2     275.8     287.1     292.8     304.7     314.4     317.6     316.0     314.6     318.0     318.9    1,474.8    3,059.9
International Affairs (150):
    BA......................................................      39.4      16.4      15.4      15.0      15.0      15.9      15.8      15.7      15.5      15.4      15.3       77.7      155.4
    O.......................................................      18.7      18.1      18.7      17.8      16.9      16.5      16.0      15.8      15.5      15.3      15.2       87.9      165.8
General Science, Space, and Technology (250):
    BA......................................................      18.8      17.9      17.9      17.9      17.9      17.9      17.9      17.9      17.9      17.9      17.9       89.4      179.0
    O.......................................................      18.2      18.2      17.8      17.8      17.7      17.7      17.7      17.7      17.7      17.7      17.7       89.3      177.7
Energy (270):
    BA......................................................       3.0       1.8       0.5       1.9       1.9       1.9       1.9       1.9       1.9       1.9       1.9        8.0       17.5
    O.......................................................       3.2       2.6       0.8       2.0       1.9       1.9       1.9       1.9       1.9       1.9       1.9        9.3       18.7
Natural Resources and Environment (300):
    BA......................................................      23.5      22.0      22.0      22.0      22.0      23.0      23.1      23.1      23.2      23.2      23.2      111.0      226.8
    O.......................................................      22.7      21.9      21.4      21.0      22.1      23.1      23.1      23.1      23.0      23.0      23.1      109.5      224.8
Agriculture (350):
    BA......................................................       4.3       3.9       3.7       3.7       3.6       3.6       3.6       3.6       3.6       3.6       3.6       18.6       36.5
    O.......................................................       4.3       4.0       3.8       3.7       3.6       3.6       3.6       3.6       3.6       3.6       3.6       18.7       36.7
Commerce and Housing:
    BA......................................................       3.5       3.7       2.1       1.7       1.8       1.8       1.8       1.8       1.8       1.8       2.8       11.2       21.1
    O.......................................................       3.2       3.9       2.2       1.7       1.8       1.7       1.7       1.7       1.8       1.7       2.7       11.4       20.9
Credit (370):
    On-budget:
        BA..................................................       3.5       3.7       2.1       1.7       1.8       1.8       1.8       1.8       1.8       1.8       2.8       11.2       21.1
        O...................................................       3.2       3.9       2.2       1.7       1.8       1.7       1.7       1.7       1.8       1.7       2.7       11.4       20.9
    Off-budget:
        BA..................................................       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0        0.0        0.0
        O...................................................       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0        0.0        0.0
Transportation (400):
    BA......................................................      14.4      12.2      11.9      11.3      11.2      11.2      11.2      11.2      11.2      11.2      11.2       57.9      113.8
    O.......................................................      42.0      43.4      45.4      45.8      44.9      44.5      44.3      44.3      44.3      44.3      44.3      223.9      445.5
Community and Regional Development (450):
    BA......................................................      10.1       7.4       5.4       5.4       5.6       5.6       5.6       5.6       5.6       5.6       5.6       29.4       57.4
    O.......................................................      11.8      11.1       9.6       7.6       6.6       6.0       5.3       5.1       5.0       4.9       4.9       40.9       66.1
Elementary and Secondary Education (501):
    BA......................................................      16.8      22.0      24.1      24.5      25.9      26.9      26.9      26.9      26.9      26.9      26.9      123.3      257.9
    O.......................................................      17.8      20.1      21.9      22.7      24.5      25.6      26.6      26.8      26.9      26.9      26.9      114.9      248.9
Training, Employment and Social Services (502-506):
    BA......................................................      29.8      28.1      26.1      26.1      26.1      26.1      26.1      26.1      26.1      26.1      25.0      132.3      261.9
    O.......................................................      28.2      28.2      26.1      25.8      25.7      25.7      25.7      25.7      25.7      25.7      24.7      131.4      259.0
Health (550):
    BA......................................................      30.1      29.3      27.9      27.7      27.5      27.3      27.0      26.7      26.4      26.1      25.8      139.7      271.7
    O.......................................................      26.8      28.3      27.4      27.3      27.2      26.9      26.6      26.3      26.0      25.7      25.4      137.1      267.1
Medicare (570):
    BA......................................................       3.0       3.0       3.0       3.0       3.0       3.0       3.0       3.0       3.0       3.0       3.0       14.9       30.0
    O.......................................................       2.8       3.0       3.0       3.0       3.0       3.0       3.0       3.0       3.0       3.0       3.0       14.9       30.0
Income Security (600):
    BA......................................................      33.1      28.7      27.5      29.6      34.6      35.2      35.7      36.2      36.7      37.2      37.9      155.5      339.3
    O.......................................................      40.6      39.4      39.4      39.4      39.3      39.4      39.7      40.0      40.4      40.9      41.4      196.9      399.3
Social Security (650):
    BA......................................................       3.2       3.2       3.2       3.2       3.2       3.2       3.2       3.2       3.2       3.2       3.2       15.8       32.0
    O.......................................................       3.3       3.3       3.1       3.1       3.1       3.1       3.1       3.1       3.1       3.1       3.1       15.9       31.2
    On-budget:
        BA..................................................       3.2       3.2       3.2       3.2       3.2       3.2       3.2       3.2       3.2       3.2       3.2       15.8       32.0
        O...................................................       3.3       3.3       3.1       3.1       3.1       3.1       3.1       3.1       3.1       3.1       3.1       15.9       31.2
    Off-budget:
        BA..................................................       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0        0.0        0.0
        O...................................................       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0        0.0        0.0
Veterans Benefits and Services (700):
    BA......................................................      19.3      20.2      19.1      19.0      19.0      19.0      19.0      18.9      18.9      18.9      18.9       96.4      190.9
    O.......................................................      19.1      20.4      19.5      19.1      19.1      19.0      18.9      18.9      18.8      18.8      18.8       97.2      191.3
Administration of Justice (750):
    BA......................................................      26.1      23.1      24.4      24.4      24.4      24.4      24.4      24.3      24.3      24.3      24.3      120.8      242.3
    O.......................................................      24.3      25.1      25.0      24.8      24.4      24.4      24.4      24.3      24.3      24.3      24.3      123.7      245.3
General Government (800):
    BA......................................................      14.3      11.4      11.0      11.1      11.1      11.1      11.1      11.1      11.1      11.1      11.1       55.6      111.2
    O.......................................................      12.9      12.3      11.7      11.4      11.2      11.0      10.9      10.9      10.9      10.9      10.9       57.5      112.1
Net Interest (900):
    BA......................................................       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0        0.0        0.0
    O.......................................................       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0        0.0        0.0
    On-budget:
        BA..................................................       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0        0.0        0.0
        O...................................................       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0        0.0        0.0
    Off-budget:
        BA..................................................       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0        0.0        0.0
        O...................................................       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0        0.0        0.0
Allowances (920):
    BA......................................................       0.0      -8.0      -8.5      -6.4      -4.4      -4.5      -4.5      -4.6      -5.2      -5.3      -5.3      -31.8      -56.7
    O.......................................................       0.0      -8.1     -12.9     -20.0      -4.8      -5.0      -5.1      -5.2      -5.8      -5.9      -5.9      -50.8      -78.7
Undistributed Offsetting Receipts (950):
    BA......................................................       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0        0.0        0.0
    O.......................................................       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0        0.0        0.0
    On-budget:
        BA..................................................       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0        0.0        0.0
        O...................................................       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0        0.0        0.0
    Off-budget:
        BA..................................................       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0        0.0        0.0
        O...................................................       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0        0.0        0.0
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


                                                                              HOUSE BUDGET COMMITTEE RECOMMENDATION
                                                                                       MANDATORY SPENDING
                                                                                    [In billions of dollars]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                        Fiscal year--                           1999      2000      2001      2002      2003      2004      2005      2006      2007      2008      2009    2000-2004  2000-2009
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                             SUMMARY

Total Mandatory Spending

    BA......................................................   1,176.5   1,217.5   1,254.3   1,286.3   1,351.7   1,406.2   1,473.1   1,518.5   1,589.0   1,666.8   1,747.3    6,516.0   14,510.7
    O.......................................................   1,129.9   1,164.2   1,203.6   1,237.6   1,301.5   1,356.5   1,423.0   1,468.2   1,535.8   1,615.3   1,696.0    6,263.4   14,001.7
    On-budget:
        BA..................................................     860.2     890.4     914.8     936.9     989.5   1,030.9   1,083.6   1,113.9   1,168.4   1,228.7   1,287.8    4,762.5   10,644.9
          O.................................................     813.6     837.1     864.2     888.1     939.3     981.3   1,033.5   1,063.6   1,115.2   1,177.2   1,236.5    4,510.0   10,136.0
    Off-budget:
          BA................................................     316.3     327.1     339.5     349.5     362.2     375.3     389.5     404.6     420.6     438.1     459.5    1,753.6    3,865.9
          O.................................................     316.3     327.1     339.5     349.5     362.2     375.3     389.5     404.6     420.6     438.1     459.5    1,753.6    3,865.9

                                                                                           BY FUNCTION

National Defense (050):
    BA......................................................      -1.1      -1.2      -1.1      -1.1      -1.1      -1.0      -0.9      -0.9      -0.9      -0.9      -0.9       -5.5      -10.0
    O.......................................................      -1.1      -1.2      -1.2      -1.1      -1.1      -1.0      -0.9      -0.9      -0.9      -0.9      -0.9       -5.6      -10.1
International Affairs (150):
    BA......................................................        -5      -5.2      -4.7      -5.2      -3.5      -2.4      -2.1      -1.8      -1.6      -1.4      -1.3      -21.0      -29.2
    O.......................................................      -3.9      -3.7      -3.6      -3.4      -3.3      -3.2      -3.1      -3.1      -3.1      -3.1      -3.1      -17.2      -32.7
General Science, Space, and Technology (250):
    BA......................................................       0.1       0.1       0.1       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0        0.2        0.2
    O.......................................................       0.0       0.1       0.1       0.2       0.0       0.0       0.0       0.0       0.0       0.0       0.0        0.3        0.3
Energy (270):
    BA......................................................      -1.8      -1.8      -1.9      -2.1      -2.0      -2.2      -2.3      -2.4      -2.4      -2.1      -2.0      -10.0      -21.2
    O.......................................................      -2.6      -3.2      -3.9      -3.2      -3.2      -3.3      -3.4      -3.4      -3.4      -3.1      -3.0      -16.8      -33.1
Natural Resources and Environment (300):
    BA......................................................       0.7       0.8       0.5       0.5       0.5       0.5       0.5       0.5       0.5       0.5       0.8        2.8        5.6
    O.......................................................       0.8       0.8       0.7       0.4       0.5       0.4       0.4       0.4       0.4       0.3       0.7        2.8        5.0
Agriculture (350):
    BA......................................................      18.1      10.4       9.8       8.1       8.3       8.4       6.9       7.0       7.1       7.1       7.2       45.0       80.3
    O.......................................................      16.1       9.1       7.5       6.3       6.7       6.9       6.3       5.5       5.5       5.6       5.6       36.5       65.0
Commerce and Housing Credit (370):
    BA......................................................      -1.6       6.0       8.1      12.1      12.7      12.1      10.9      10.8      10.9      10.8      10.7       51.0      105.1
    O.......................................................      -2.3       0.4       3.2       7.8       9.1       8.7       7.7       7.4       7.1       6.7       6.2       29.2       64.3
    On-budget:
        BA..................................................      -1.6       6.1       8.5      12.7      12.7      12.1      10.9      10.8      10.9      10.8      10.7       52.1      106.2
        O...................................................      -2.3       0.6       3.5       8.5       9.1       8.7       7.7       7.4       7.1       6.7       6.2       30.4       65.5
    Off-budget:
        BA..................................................       0.0      -0.2      -0.3      -0.6       0.0       0.0       0.0       0.0       0.0       0.0       0.0       -1.1       -1.1
        O...................................................       0.0      -0.2      -0.3      -0.6       0.0       0.0       0.0       0.0       0.0       0.0       0.0       -1.1       -1.1
Transportation (400):
    BA......................................................      36.8      39.5      39.1      39.5      41.0      41.1      41.1      41.1      41.2      41.2      41.2      200.2      406.0
    O.......................................................       1.9       2.4       2.3       1.5       1.9       1.8       1.7       1.7       1.7       1.8       1.8        9.9       18.6
Community and Regional Development (450):
    BA......................................................       0.1       0.0      -0.0       0.1       0.1       0.0       0.0       0.0       0.0       0.0       0.0        0.0        0.0
    O.......................................................      -0.4      -0.5      -0.5      -0.5      -0.5      -0.5      -0.6      -0.6      -0.6      -0.6      -0.6       -2.5       -5.5
Elementary and Secondary Education (501):
    BA......................................................       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0        0.0        0.0
    O.......................................................       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0        0.0        0.0
Training, Employment and Social Services (502-506):
    BA......................................................      14.4      15.2      15.4      15.1      16.7      17.0      17.8      18.6      19.5      20.5      21.4       79.4      177.2
    O.......................................................      13.8      15.3      15.8      15.1      16.3      16.6      17.2      18.0      18.8      19.8      20.7       79.1      173.6
Health (550):
    BA......................................................     117.4     126.9     136.2     145.6     157.2     170.6     185.8     201.7     219.9     239.1     259.7      736.5    1,842.7
    O.......................................................     114.0     124.7     135.0     146.4     158.1     171.6     186.0     202.0     219.5     238.7     259.5      735.8    1,841.5
Medicare (570):
    BA......................................................     192.2     205.7     219.1     227.6     247.8     265.6     292.6     303.8     334.6     362.7     391.1    1,165.8    2,850.6
    O.......................................................     191.8     205.7     219.3     227.2     247.9     265.8     292.2     303.9     334.8     362.2     391.3    1,165.9    2,850.3
Income Security (600):
    BA......................................................     202.1     215.7     223.0     233.1     242.4     251.0     262.8     268.5     273.9     286.7     296.3    1,165.2    2,553.4
    O.......................................................     197.6     208.7     218.0     227.6     237.4     246.6     259.0     265.2     271.2     284.5     294.3    1,138.3    2,512.5
Social Security (650):
    BA......................................................     387.5     404.1     422.9     442.7     463.8     486.6     511.4     537.7     565.6     595.8     630.5    2,220.1    5,061.1
    O.......................................................     387.5     404.1     422.9     442.7     463.8     486.6     511.4     537.7     565.6     595.8     630.5    2,220.1    5,061.1
    On-budget:
        BA..................................................      11.4      11.1      10.6      12.4      13.1      13.9      14.8      15.7      16.7      17.9      19.1       61.1      145.3
        O...................................................      11.4      11.1      10.6      12.4      13.1      13.9      14.8      15.7      16.7      17.9      19.1       61.1      145.3
    Off-budget:
        BA..................................................     376.1     393.0     412.3     430.3     450.7     472.7     496.6     522.0     548.8     578.0     611.4      2,159    4,915.8
        O...................................................     376.1     393.0     412.3     430.3     450.7     472.7     496.6     522.0     548.8     578.0     611.4      2,159    4,915.8
Veterans Benefits and Services (700):
    BA......................................................      23.8      24.5      25.1      25.7      26.9      27.3      29.8      28.3      28.9      29.6      30.2      129.5      276.3
    O.......................................................      23.9      24.6      25.5      26.0      27.3      27.7      30.4      28.9      27.4      30.2      30.9      131.1      278.9
Administration of Justice (750):
    BA......................................................       0.5       0.3       0.2       0.2       0.2       1.8       2.0       2.0       2.1       2.2       2.2        2.7       13.2
    O.......................................................       0.7       0.2       0.1       0.1       0.0       1.7       1.9       1.9       2.0       2.1       2.1        2.1       12.1
General Government (800):
    BA......................................................       2.9       0.9       0.9       1.0       1.0       1.0       1.0       1.0       1.0       1.0       1.0        4.8        9.8
    O.......................................................       2.9       1.2       0.9       0.9       1.0       1.1       1.0       0.9       1.0       1.2       1.0        5.1       10.2
Net Interest (900):
    BA......................................................     229.4     217.7     207.0     196.4     186.4     176.5     165.2     153.3     141.6     128.6     115.3      984.0    1,688.0
    O.......................................................     229.4     217.7     207.0     196.4     186.4     176.5     165.2     153.3     141.6     128.6     115.3      984.0    1,688.0
    On-budget:
        BA..................................................     281.8     275.5     271.0     267.4     265.1     263.4     261.0     258.6     257.0     254.7     252.7    1,342.4    2,626.4
        O...................................................     281.8     275.5     271.0     267.4     265.1     263.4     261.0     258.6     257.0     254.7     252.7    1,342.4    2,626.4
    Off-budget:
        BA..................................................     -52.4     -57.8     -64.0     -71.1     -78.7     -86.9     -95.8    -105.3    -115.5    -126.2    -137.3     -358.5     -938.6
        O...................................................     -52.4     -57.8     -64.0     -71.1     -78.7     -86.9     -95.8    -105.3    -115.5    -126.2    -137.3     -358.5     -938.6
Allowances (920):
    BA......................................................       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0        0.0        0.0
    O.......................................................       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0        0.0        0.0
Undistributed Offsetting
    BA......................................................     -40.1     -42.2     -45.3     -52.8     -46.8     -47.6     -49.4     -50.8     -52.8     -54.6     -56.4     -234.7     -498.7
    O.......................................................     -40.1     -42.2     -45.3     -52.8     -46.8     -47.6     -49.4     -50.8     -52.8     -54.6     -56.4     -234.7     -498.7
Receipts (950):
    On-budget:
        BA..................................................     -32.7     -34.3     -36.9     -43.6     -37.0     -37.1     -38.1     -38.8     -40.1     -40.9     -41.8     -188.9     -388.6
        O...................................................     -32.7     -34.3     -36.9     -43.6     -37.0     -37.1     -38.1     -38.8     -40.1     -40.9     -41.8     -188.9     -388.6
    Off-budget:
        BA..................................................      -7.4      -8.0      -8.5      -9.1      -9.8     -10.5     -11.3     -12.0     -12.8     -13.7     -14.6      -45.9     -110.3
        O...................................................      -7.4      -8.0      -8.5      -9.1      -9.8     -10.5     -11.3     -12.0     -12.8     -13.7     -14.6      -45.9     -110.3
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


                                                         TABLE 1.--TAX EXPENDITURE ESTIMATES BY BUDGET FUNCTION, FISCAL YEARS 2000-2009
                                                                                    [In billions of dollars]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                            Corporations                                                            Individuals                                      Total
           Function            -----------------------------------------------------------------------------------------------------------------------------------------------------------------
                                 2000   2001   2002   2003   2004   2005   2006   2007   2008   2009   2000   2001   2002   2003   2004   2005   2006   2007   2008    2009    2000-04   2000-09
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
National Defense
    Exclusion of benefits and   .....  .....  .....  .....  .....  .....  .....  .....  .....  .....     20     20    2.1    2.1    2.1    2.2    2.2    2.2     2.3     2.3      10.3      21.5
     allowances to Armed
     Forces personnel.........
    Exclusion of military       .....  .....  .....  .....  .....  .....  .....  .....  .....  .....    0.1    0.1    0.1    0.1    0.1    0.1    0.1    0.1     0.1     0.2       0.5       1.3
     disability benefits......
International Affairs
    Exclusion of income earned  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....    2.0    2.2    2.3    2.5    2.7    2.8    3.0    3.2     3.4     3.5      11.7      27.6
     abroad by U.S. citizens..
    Exclusion of certain        .....  .....  .....  .....  .....  .....  .....  .....  .....  .....    0.2    0.2    0.2    0.2    0.2    0.2    0.3    0.3     0.3     0.3       1.0       2.4
     allowances for Federal
     employees abroad.........
    Exclusion of income of        1.9    2.0    2.1    2.2    2.3    2.3    2.4    2.5    2.6    2.7  .....  .....  .....  .....  .....  .....  .....  .....  ......  ......      10.5      23.0
     foreign sales
     corporations (FSCs)......
    Deferral of active income     1.4    1.4    1.5    1.6    1.6    1.7    1.8    1.9    2.0    2.1  .....  .....  .....  .....  .....  .....  .....  .....  ......  ......       7.5      17.0
     of controlled foreign
     corporations.............
    Inventory property sales      4.0    4.1    4.2    4.3    4.4    4.5    4.6    4.7    4.8    4.9  .....  .....  .....  .....  .....  .....  .....  .....  ......  ......      21.0      44.5
     sources rule exception...
    Deferral of certain           0.3  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  ......  ......       0.3       0.3
     financing income.........
General Science, Space, and
 Technology
    Tax credit for qualified      0.9    0.5    0.3    0.1    (1)  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  ......  ......       1.9       1.9
     research expenditures....
    Expensing of research and     2.4    2.7    2.8    3.0    2.8    2.9    2.9    3.1    3.2    3.4  .....  .....  .....  .....  .....  .....  .....  .....  ......  ......      13.2      28.7
     experimental expenditures
Energy
    Expensing of exploration
     and development costs:
        Oil and gas...........    0.4    0.4    0.5    0.5    0.5    0.6    0.6    0.7    0.7    0.7    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)     (1)     (1)       2.4       5.7
        Other fuels...........    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)     (1)     (1)       0.1       0.1
    Excess of percentage over
     cost depletion:
        Oil and gas...........    0.4    0.4    0.4    0.4    0.5    0.5    0.5    0.5    0.5    0.5    0.1    0.1    0.1    0.1    0.2    0.2    0.2    0.2     0.2     0.2       2.8       6.1
        Other fuels...........    0.2    0.2    0.2    0.2    0.2    0.2    0.2    0.2    0.2    0.2    0.1    0.1    0.1    0.1    0.1    0.1    0.1    0.1     0.1     0.1       1.5       3.0
    Tax credit for enhanced       (1)    (1)    (1)    (1)    0.1    0.1    0.1    0.1    0.1    0.1    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)     (1)     (1)       0.3       0.7
     oil recovery costs.......
    Tax credit for production     1.0    1.0    1.0    0.8    0.5    0.3    0.2    0.1    0.1    (1)    0.3    0.3    0.3    0.2    0.1    0.1    (1)    (1)     (1)     (1)       5.5       6.4
     of non-conventional fuels
    Tax credits for alcohol       (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)  .....  .....  .....  .....  .....  .....  .....  .....  ......  ......       (1)       0.1
     fules \2\................
    Exclusion of interest on      (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    0.1    0.1    0.1    0.1    0.1    0.1    0.1    0.1     0.1     0.1       0.9       1.9
     State and local
     government industrial
     development bonds for
     energy production
     facilities...............
    Exclusion of energy         .....  .....  .....  .....  .....  .....  .....  .....  .....  .....    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)     (1)     (1)       0.1       0.3
     conservation subsidies
     provided by public
     utilities................
    Tax credit for investments    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)     (1)     (1)       0.2       0.3
     in solar and geothermal
     energy facilities........
    Tax credit for electricity    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    0.1    0.1    0.1    0.1    0.1    0.1    0.1    0.1     0.1     0.1       0.3       0.5
     production from wind and
     biomass..................
Natural Resources and
 Environment
    Expensing of exploration      (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)     (1)     (1)       0.2       0.6
     and development costs,
     nonfuel minerals.........
    Excess of percentage over     0.2    0.2    0.2    0.2    0.2    0.2    0.2    0.2    0.2    0.2    0.1    0.1    0.1    0.1    0.1    0.1    0.1    0.1     0.1     0.1       1.5       3.0
     cost depletion, nonfuel
     minerals.................
    Expensing of multiperiod      0.1    0.2    0.2    0.2    0.2    0.2    0.2    0.2    0.2    0.2    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)     (1)     (1)       0.9       1.9
     timber-growing costs.....
    Exclusion of interest on      0.2    0.2    0.2    0.2    0.2    0.2    0.2    0.2    0.2    0.2    0.5    0.5    0.5    0.5    0.5    0.5    0.5    0.5     0.5     0.5       3.2       6.5
     State and local
     government sewage, water,
     and hazardous waste
     facilities bonds.........
    Special rules for mining      (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)     (1)     (1)       0.2       0.4
     reclamation reserves.....
    Exclusion of contribution     (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    0.1  .....  .....  .....  .....  .....  .....  .....  .....  ......  ......       (1)       0.1
     in aid of construction
     for water and sewer
     utilities................
Agriculture
    Expensing of soil and         (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    0.1    0.1    0.1     0.1     0.1       0.2       0.5
     water conservation
     expenditures.............
    Expensing of fertilizer       (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    0.1    0.1    0.1    0.1    0.1    0.1    0.1     0.1     0.1       0.3       0.6
     and soil conditioner
     costs....................
    Expensing of the costs of     (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    0.2    0.2    0.2    0.2    0.2    0.2    0.2    0.2    0.2     0.2     0.2       0.9       2.1
     raising dairy and
     breeding cattle..........
    Exclusion of cost-sharing     (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)     (1)     (1)       0.1       0.2
     payments.................
    Exclusion of cancellation   .....  .....  .....  .....  .....  .....  .....  .....  .....  .....    0.1    0.1    (1)    (1)    (1)    (1)    (1)    (1)     (1)     (1)       0.2       0.4
     of indebtedness income of
     farmers..................
    Cash accounting for           (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    0.5    0.6    0.6    0.6    0.6    0.6    0.6    0.7     0.7     0.7       3.0       6.5
     agriculture..............
    Income averaging for        .....  .....  .....  .....  .....  .....  .....  .....  .....  .....    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)     (1)     (1)       0.1       0.2
     farmers..................
    Five-year carryback period    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    0.1    0.1    (1)    (1)    (1)    (1)    (1)    (1)     (1)     (1)       0.3       0.4
     for net operating losses
     attributable to farming..
Commerce and Housing
    Financial institutions:
        Exemption of credit       0.9    1.0    1.0    1.1    1.1    1.2    1.2    1.3    1.3    1.4  .....  .....  .....  .....  .....  .....  .....  .....  ......  ......       5.1      11.5
         union income.........
    Insurance companies:
        Exclusion of              1.3    1.4    1.4    1.5    1.5    1.5    1.6    1.6    1.7    1.8   23.3   24.0   24.8   25.6   26.4   27.2   28.1   28.9    29.9    30.8     131.2     284.2
         investment income on
         life insurance and
         annuity contracts....
        Small life insurance      0.1    0.1    0.1    0.1    0.1    0.1    0.2    0.2    0.2    0.2  .....  .....  .....  .....  .....  .....  .....  .....  ......  ......       0.7       1.5
         company taxable
         income adjustment....
        Special treatment of      1.4    1.4    1.5    1.5    1.6    1.7    1.7    1.8    1.9    1.9  .....  .....  .....  .....  .....  .....  .....  .....  ......  ......       7.4      16.3
         life insurance
         company reserves.....
        Deduction of unpaid       3.4    3.4    3.5    3.5    3.6    3.7    3.8    3.9    3.9    4.0  .....  .....  .....  .....  .....  .....  .....  .....  ......  ......      17.4      36.7
         property loss
         reserves for property
         and casualty
         insurance companies..
        Special deduction for     0.4    0.4    0.4    0.3    0.3    0.3    0.3    0.3    0.3    0.3  .....  .....  .....  .....  .....  .....  .....  .....  ......  ......       1.8       3.5
         Blue Cross and Blue
         Shield companies.....
    Housing:
        Deduction for mortgage  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....   50.4   52.4   54.5   56.8   59.2   61.6   64.1   66.7    69.5    72.3     273.2     607.4
         interest on owner-
         occupied residences..
        Deduction for property  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....   18.4   19.1   19.7   20.3   21.0   21.8   22.5   23.3    24.1    24.9      98.5     215.0
         taxes on owner-
         occupied residences..
        Exclusion of capital    .....  .....  .....  .....  .....  .....  .....  .....  .....  .....    6.0    6.2    6.4    6.6    6.8    7.0    7.2    7.4     7.6     7.9      32.0      69.1
         gains on sales of
         principal residences.
        Exclusion of interest     0.6    0.6    0.7    0.7    0.7    0.8    0.8    0.9    0.9    0.9    1.5    1.5    1.6    1.7    1.8    1.9    2.0    .21     2.2     2.3      11.4      26.2
         on State and local
         government bonds for
         owner-occupied
         housing..............
        Exclusion of interest     0.3    0.3    0.3    0.3    0.4    0.4    0.4    0.4    0.4    0.5    0.8    0.8    0.8    0.8    0.9    0.9    1.0    1.0     1.0     1.0       5.7      13.0
         on State and local
         government bonds for
         rental housing.......
        Depreciation of rental    0.2    0.2    0.2    0.2    0.2    0.3    0.3    0.3    0.3    0.4    1.5    1.5    1.6    1.7    1.8    2.0    2.3    2.6     3.0     3.5       9.1      24.1
         housing in excess of
         alternative
         depreciation system..
        Tax credit for low-       1.4    1.5    1.7    1.9    1.9    1.9    1.9    1.9    1.9    1.9    2.6    2.8    3.1    3.4    3.4   .3.4    3.4    3.4     3.4     3.4      23.7      50.0
         income housing.......
        Tax credit for first-   .....  .....  .....  .....  .....  .....  .....  .....  .....  .....    (1)    (1)  .....  .....  .....  .....  .....  .....  ......  ......       (1)       (1)
         time homebuyers in
         the District of
         Columbia.............
        Tax credit for            0.4    0.4    0.4    0.4    0.4    0.5    0.5    0.5    0.5    0.5    0.1    0.1    0.1    0.1    0.1    0.1    0.1    0.1     0.1     0.1       2.5       5.5
         rehabilitation of
         historic structures..
    Other business and
     commerce:
        Reduced rates of tax    .....  .....  .....  .....  .....  .....  .....  .....  .....  .....   32.0   33.8   34.9   36.1   37.5   39.0   41.0   43.5    46.5    50.2     174.3     394.5
         on long-term capital
         gains................
        Exclusion of capital    .....  .....  .....  .....  .....  .....  .....  .....  .....  .....   20.7   22.2   23.9   25.2   26.2   27.3   28.6   30.3    32.5    35.1     118.2     272.0
         gains at death.......
        Carryover basis of      .....  .....  .....  .....  .....  .....  .....  .....  .....  .....    2.1    2.3    2.5    2.7    2.8    2.9    3.1    3.3     3.5     3.8      12.4      29.0
         capital gains on
         gifts................
        Deferral of gain on       0.5    0.5    0.5    0.6    0.6    0.6    0.6    0.6    0.6    0.6    0.4    0.4    0.4    0.4    0.4    0.5    0.5    0.5     0.5     0.5       4.7      10.2
         non-dealer
         installment sales....
        Deferral of gain on       0.4    0.4    0.4    0.4    0.4    0.5    0.5    0.5    0.5    0.5    0.3    0.3    0.3    0.3    0.3    0.4    0.4    0.4     0.4     0.4       3.5       8.0
         like-kind exchanges..
        Deferral of gain on     .....  .....  .....  .....  .....  .....  .....  .....  .....  .....    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)     (1)     (1)       0.1       0.2
         involuntary
         conversions resulting
         from Presidentially-
         declared disasters...
        Depreciation of           1.5    1.2    1.2   1.1.    0.9    0.8    1.0    1.3    1.7    2.2    0.7    0.5    0.5    0.4    0.3    0.3    0.3    0.4     0.5     0.7       8.3      17.5
         buildings other than
         rental housing in
         excess of alternative
         depreciation system..
        Depreciation of          24.8   25.3   25.7   26.1   26.2   26.3   26.3   26.4   26.5   26.6    6.7    6.9    6.8    6.7    6.6    6.5    6.3    6.2     6.1     6.0     161.8     325.0
         equipment in excess
         of alternative
         depreciation system..
        Expensing of              0.5    0.7    0.7    0.5    0.2    0.1    0.1    (1)    (1)    (1)    0.2    0.3    0.4    0.2    0.1    (1)    (1)    (1)     (1)     (1)       3.8       4.0
         depreciable business
         property.............
        Amortization of           (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    0.1    0.3    0.3    0.3    0.3    0.3    0.3    0.3    0.4     0.4     0.4       1.5       3.4
         business startup
         costs................
        Reduced rates on first    4.4    4.4    4.4    4.5    4.5    4.5    4.5    4.5    4.5    4.5  .....  .....  .....  .....  .....  .....  .....  .....  ......  ......      22.2      44.7
         $10,000,000 of
         corporate taxable
         income...............
        Permanent exemption       (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    0.2    0.2    0.2    0.2    0.2    0.2    0.3    0.3     0.3     0.3       1.0       2.4
         from imputed interest
         rules................
        Expensing of magazine     (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)     (1)     (1)       0.0       0.0
         circulation
         expenditures.........
        Special rules for         (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)     (1)     (1)       0.0       0.0
         magazine, paperback
         book, and record
         returns..............
        Completed contract        0.2    0.2    0.2    0.2    0.2    0.2    0.2    0.2    0.3    0.3    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)     (1)     (1)       1.0       2.2
         rules................
        Cash accounting, other    (1)    (1)    (1)    (1)    (1)    (1)    (1)    0.1    0.1    0.1    0.1    0.1    0.1    0.1    0.1    0.2    0.2    0.2     0.2     0.2       0.5       1.8
         than agriculture.....
        Exclusion of interest     0.1    0.1    0.1    0.1    0.1    0.1    0.1    (1)    (1)    (1)    0.2    0.2    0.2    0.2    0.1    0.1    0.1    0.1     0.1     0.1       1.2       2.1
         on State and local
         government small-
         issue industrial
         development bonds....
        Exception from net        0.5    0.5    0.4    0.4    0.4    0.4    0.4    0.4    0.5    0.5  .....  .....  .....  .....  .....  .....  .....  .....  ......  ......       2.2       4.4
         operating loss
         limitations for
         corporations in
         bankruptcy
         proceedings..........
        Tax credit for            0.2    0.2    0.2    0.2    0.2    0.2    0.2    0.2    0.2    0.2    0.2    0.3    0.3    0.3    0.3    0.3    0.3    0.3     0.3     0.3       2.4       4.9
         employer-paid FICA
         taxes on tips........
Transportation
        Deferral of tax on        0.1    0.1    0.1    0.1    0.1    0.1    0.1    0.1    0.1    0.1  .....  .....  .....  .....  .....  .....  .....  .....  ......  ......       0.5       1.0
         capital construction
         funds of shipping
         companies............
        Exclusion of employer-  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....    3.6    3.6    3.7    3.7    3.7    3.8    3.8    3.8     3.9     3.9      18.1      37.3
         paid transportation
         benefits.............
        Exclusion of interest     (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)     (1)     (1)       0.5       1.0
         on State and local
         government bonds for
         high-speed rail......
Community and Regional
 Development
        Empowerment zone tax      0.2    0.2    0.2    0.2    0.1    0.1    (1)    (1)    (1)    (1)    0.1    0.2    0.1    0.1    (1)    (1)    (1)    (1)     (1)     (1)       1.2       1.7
         incentives...........
        District of Columbia      0.1    0.1    0.1    0.1    (1)    (1)    (1)    (1)    (1)    (1)    0.1    0.1    0.1    0.1    0.1    0.1    0.1    0.1     0.1     0.1       0.8       1.1
         tax incentives.......
        Indian reservation tax    0.1    0.1    0.1    (1)    (3)    (3)    (3)    (3)    (3)    (3)    0.1    0.1    (1)    (1)    (3)    (3)    (3)    (3)     (3)     (3)       0.6       0.5
         incentives...........
        Expensing of              0.1    0.1    (1)    (1)    (1)    (3)    (3)    (3)    (3)    (3)    (1)    (1)    (1)    (1)    (1)    (3)    (3)    (3)     (3)     (3)       0.3       0.1
         redevelopment costs
         in certain
         environmentally
         contaminated areas
         (``Brownfields'')....
        Tax credit for            (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)     (1)     (1)       0.3       0.6
         rehabilitation of
         structures, other
         than historic
         structures...........
        Exclusion of interest     0.3    0.3    0.4    0.4    0.4    0.5    0.5    0.6    0.6    0.7    0.8    0.9    0.9    1.0    1.0    1.2    1.3    1.4     1.5     1.6       6.6      16.5
         on State and local
         government bonds for
         private airports,
         docks, and mass-
         commuting facilities.
Education, Training,
 Employment, and Social
 Services
    Education and training:
        Tax credits for         .....  .....  .....  .....  .....  .....  .....  .....  .....  .....    6.4    6.2    6.2    6.2    6.1    6.1    6.0    6.0     5.8     5.8      31.1      60.9
         tuition for post-
         secondary education..
        Deduction for interest  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....    0.2    0.2    0.3    0.3    0.3    0.3    0.4    0.4     0.4     0.4       1.3       3.2
         on student loans.....
        Exclusion of earnings   .....  .....  .....  .....  .....  .....  .....  .....  .....  .....    0.5    0.5    0.6    0.7    0.8    0.8    0.9    1.0     1.1     1.1       3.1       8.0
         of trust accounts for
         higher education
         (``education IRAs'').
        Exclusion of interest   .....  .....  .....  .....  .....  .....  .....  .....  .....  .....    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)     (1)     (1)       (1)       (1)
         on educational
         savings bonds........
        Deferral of tax on      .....  .....  .....  .....  .....  .....  .....  .....  .....  .....    0.2    0.2    0.3    0.4    0.4    0.5    0.6    0.7     0.9     1.0       1.5       5.2
         earnings of qualified
         State tuition program
        Exclusion of            .....  .....  .....  .....  .....  .....  .....  .....  .....  .....    1.0    1.0    1.1    1.2    1.3    1.4    1.5    1.7     1.8     1.9       5.7      14.0
         scholarship and
         fellowship income....
        Exclusion of employer-  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....    0.2    0.2    0.2    0.2    0.3    0.3    0.3    0.3     0.4     0.4       1.1       2.9
         provided education
         assistance benefits..
        Parental personal       .....  .....  .....  .....  .....  .....  .....  .....  .....  .....    0.8    0.8    0.9    0.9    0.9    0.9    0.9    0.9     1.0     1.0       4.3       9.0
         exemption for
         students age 19 to 23
        Exclusion of interest     0.1    0.1    0.1    0.1    0.1    0.1    0.1    0.1    0.1    0.1    0.2    0.2    0.2    0.2    0.2    0.2    0.2    0.2     0.2     0.2       1.3       2.4
         on State and local
         government student
         loan bonds...........
        Exclusion of interest     0.3    0.3    0.4    0.4    0.4    0.5    0.5   0.5.    0.6    0.6    0.8    0.8    0.9    0.9    1.0    1.1    1.2    1.3     1.4     1.5       6.3      15.6
         on State and local
         government bonds for
         private nonprofit
         education............
        Tax credit for holders    0.1    0.1    0.1    0.1    0.1    0.1    0.1    0.1    0.1    0.1  .....  .....  .....  .....  .....  .....  .....  .....  ......  ......  ........  ........
         of qualified
         education bonds......
        Deduction for             1.1    1.2    1.4    1.5    1.6    1.8    2.0    2.2    2.4    2.6    2.9    3.1    3.3    3.5    3.6    3.8    4.1    4.3     4.5     4.8      23.2      55.7
         charitable
         contributions to
         educational
         institutions.........
    Employment:
        Exclusion of employee   .....  .....  .....  .....  .....  .....  .....  .....  .....  .....    0.8    0.8    0.8    0.9    0.9    0.9    0.9    1.0     1.0     1.0       4.2       9.0
         meals and lodging
         (other than military)
        Exclusion of benefits   .....  .....  .....  .....  .....  .....  .....  .....  .....  .....    4.5    4.9    5.3    5.7    6.3    6.9    7.6    8.3     9.2    10.1      26.7      68.8
         provided under
         cafeteria plans \1\..
        Exclusion of housing    .....  .....  .....  .....  .....  .....  .....  .....  .....  .....    0.4    0.4    0.4    0.4    0.4    0.5    0.5    0.5     0.5     0.5       2.0       4.6
         allowances for
         ministers............
        Exclusion of            .....  .....  .....  .....  .....  .....  .....  .....  .....  .....    6.5    6.9    7.3    7.8    8.3    8.6    8.9    9.2     9.5     9.8      36.8      82.8
         miscellaneous fringe
         benefits.............
        Exclusion of employee   .....  .....  .....  .....  .....  .....  .....  .....  .....  .....    0.1    0.1    0.1    0.1    0.1    0.1    0.1    0.1     0.1     0.1       0.5       1.1
         awards...............
        Exclusion of income     .....  .....  .....  .....  .....  .....  .....  .....  .....  .....    0.5    0.6    0.6    0.6    0.7    0.7    0.7    0.7     0.7     0.8       3.0       6.6
         earned by voluntary
         employees'
         beneficiary
         associations.........
        Special tax provisions    0.8    0.9    0.9    0.9    1.0    1.0    1.1    1.1    1.1    1.2    (1)    (1)    (1)    (1)    (1)    (1)    0.1    0.1     0.1     0.1       4.8      10.6
         for employee stock
         ownership plans
         (ESOPs)..............
        Work opportunity tax      0.2    0.1    (1)    (1)    (1)  .....  .....  .....  .....  .....    (1)    (1)    (1)  .....  .....  .....  .....  .....  ......  ......       0.4       0.4
         credit...............
        Welfare-to-work tax       (1)    (1)    (1)    (1)    (1)  .....  .....  .....  .....  .....    (1)    (1)  .....  .....  .....  .....  .....  .....  ......  ......       0.1       0.1
         credit...............
    Social services:
        Tax credit for          .....  .....  .....  .....  .....  .....  .....  .....  .....  .....   20.0   20.0   19.8   19.5   19.2   18.9   18.7   18.4    18.1    17.8      98.5     190.4
         children under under
         age 17 \5\...........
        Tax credit for child    .....  .....  .....  .....  .....  .....  .....  .....  .....  .....    2.5    2.5    2.5    2.5    2.5    2.5    2.4    2.2     2.1     2.0      12.7      23.8
         and dependent care
         expenses.............
        Exclusion of employer-  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....    0.4    0.5    0.5    0.6    0.5    0.5    0.6    0.6     0.6     0.6       2.5       5.4
         provided child care
         \6\..................
        Exclusion of certain    .....  .....  .....  .....  .....  .....  .....  .....  .....  .....    (1)    (1)   1(1)    (1)    (1)    (1)    (1)    1[]     (1)     (1)       0.2       0.5
         foster care payments.
        Adoption credit and     .....  .....  .....  .....  .....  .....  .....  .....  .....  .....    0.4    0.4    0.2    0.1    0.1    0.1    0.1    0.1     0.1     0.1       1.0       1.3
         employee adoption
         benefits exclusion...
        Deduction for             1.1    1.2    1.3    1.4    1.5    1.7    1.8    2.0    2.2    2.4   20.9   22.1   23.3   24.6   26.0   27.4   29.0   30.6    32.3    34.1     123.4     286.9
         charitable
         contributions, other
         than for education
         and health...........
        Tax credit for            (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    0.1    0.1    0.1    0.1    0.1    0.1    0.1    0.1     0.1     0.1       0.4       0.7
         disabled access
         expenditures.........
Health
    Exclusion of employer       .....  .....  .....  .....  .....  .....  .....  .....  .....  .....   61.3   65.1   69.2   73.8   78.7   83.9   89.5   95.5   101.8   108.6     348.1     827.4
     contributions for health
     care, health insurance
     premiums, and long-term
     care insurance premiums
     \7\......................
    Exclusion of medical care   .....  .....  .....  .....  .....  .....  .....  .....  .....  .....    1.6    1.6    1.6    1.6    1.6    1.7    1.7    1.7     1.7     1.7       8.0      16.5
     and CHAMPUS/TRICARE
     medical insurance for
     military dependents,
     retirees, and retiree
     dependents...............
    Deduction for health        .....  .....  .....  .....  .....  .....  .....  .....  .....  .....    1.2    1.2    1.5    2.4    2.8    3.0    3.2    3.4     3.6     3.8       9.1      26.1
     insurance premiums and
     long-term care insurance
     premiums by the self-
     employed.................
    Deduction for medical       .....  .....  .....  .....  .....  .....  .....  .....  .....  .....    4.3    4.5    4.7    4.9    5.0    5.1    5.2    5.3     5.5     5.7      23.5      50.2
     expenses and long-term
     care expenses............
    Exclusion of workers'       .....  .....  .....  .....  .....  .....  .....  .....  .....  .....    4.5    4.7    4.9    5.1    5.4    5.6    5.9    6.1     6.4     6.7      24.6      55.3
     compensation benefits
     (medical benefits).......
    Medical savings accounts..  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)     (1)     (1)       0.1       0.2
    Exclusion of interest on      0.6    0.6    0.7    0.7    0.8    0.9    0.9    1.0    1.1    1.1    1.5    1.5    1.6    1.7    1.9    2.1    2.3    2.4     2.6     2.8      11.6      28.7
     State and local
     government bonds for
     private nonprofit
     hospital facilities......
    Deduction for charitable      0.8    0.9    1.0    1.1    1.2    1.3    1.4    1.5    1.7    1.9    2.1    2.3    2.4    2.5    2.6    2.8    2.9    3.1     3.3     3.5      16.9      40.3
     contributions to health
     organizations............
    Tax credit for orphan drug    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)  .....  .....  .....  .....  .....  .....  .....  .....  ......  ......       0.2       0.4
     research.................
Medicare
    Exclusion of untaxed
     medicare benefits:
        Hospital insurance....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....   15.2   15.9   16.8   17.8   18.5   20.0   21.6   23.2    25.0    26.9      84.2     200.9
        Supplemtary medical     .....  .....  .....  .....  .....  .....  .....  .....  .....  .....    8.0    9.1   10.4   11.8   13.2   14.7   16.4   18.2    20.1    22.2      52.5     144.1
         insurance............
Income Security
    Exclusion of workers'       .....  .....  .....  .....  .....  .....  .....  .....  .....  .....    3.8    3.9    4.0    4.2    4.4    4.5    4.7    4.8     5.0     5.2      20.3      44.7
     compensation benefits
     (disability and survivors
     payments)................
    Exclusion of special        .....  .....  .....  .....  .....  .....  .....  .....  .....  .....    0.1    0.1    0.1    0.1    0.1    0.1    0.1    (1)     (1)     (1)       0.4       0.6
     benefits for disabled
     coal miners..............
    Exclusion of cash public    .....  .....  .....  .....  .....  .....  .....  .....  .....  .....    0.5    0.5    0.5    0.5    0.5    0.5    0.5    0.5     0.5     0.5       2.5       5.0
     assistance benefits......
    Net exclusion of pension
     contributions and
     earnings:
        Employer plans........  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....   78.3   78.2   78.1   78.4   79.8   81.2   82.6   84.0    85.5    87.0     392.8     813.0
        Individual retirement   .....  .....  .....  .....  .....  .....  .....  .....  .....  .....   12.4   13.1   14.2   15.5   16.8   18.0   19.3   20.6    22.1    23.6      72.0     175.5
         plans................
        Keough plans..........  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....    5.1    5.2    5.4    5.7    5.6    5.4    5.5    5.8     6.0     6.3      27.0      56.0
    Exclusion of other
     employee benefits:
        Premiums on group term  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....    2.0    2.1    2.2    2.3    2.4    2.5    2.6    2.7     2.8     2.9      10.9      24.2
         life insurance.......
        Premiums on accident    .....  .....  .....  .....  .....  .....  .....  .....  .....  .....    0.2    0.2    0.2    0.2    0.2    0.2    0.2    0.2     0.2     0.2       1.0       2.0
         and disability
         insurance............
    Additional standard         .....  .....  .....  .....  .....  .....  .....  .....  .....  .....    2.0    2.0    2.1    2.2    2.3    2.3    2.4    2.4     2.5     2.6      10.6      22.8
     deduction for the blind
     and the elderly..........
    Tax credit for the elderly  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)     (1)     (1)       0.1       0.1
     and disabled.............
    Deduction for casualty and  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....    0.3    0.3    0.3    0.4    0.4    0.4    0.4    0.4     0.4     0.5       1.7       3.6
     theft losses.............
    Earned income credit (EIC)  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....    4.3    4.5    4.6    4.7    4.8    4.9    5.0    5.1     5.2     5.3      22.9      48.6
     \8\......................
Social Security and Railroad
 Retirement
    Exclusion of untaxed        .....  .....  .....  .....  .....  .....  .....  .....  .....  .....   26.1   27.0   28.0   28.9   30.4   32.0   33.2   34.8    36.3    37.6     140.4     314.3
     social security and
     railroad retirement
     benefits.................
Veterans' Benefits and
 Services
    Exclusion of veterans'      .....  .....  .....  .....  .....  .....  .....  .....  .....  .....    2.1    2.2    2.2    2.3    2.3    2.4    2.4    2.5     2.6     2.6      11.1      23.6
     disability compensation..
    Exclusion of veterans'      .....  .....  .....  .....  .....  .....  .....  .....  .....  .....    0.1    0.1    0.1    0.1    0.1    0.1    0.1    0.2     0.2     0.2       0.6       1.4
     pensions.................
    Exclusion of GI bill        .....  .....  .....  .....  .....  .....  .....  .....  .....  .....    0.1    0.1    0.1    0.1    0.1    0.1    0.1    0.1     0.1     0.1       0.5       1.0
     benefits.................
    Exclusion of interest on      (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    (1)    0.1    0.1    0.1    0.1    0.1    0.1    0.1    0.1     0.1     0.1       0.4       0.7
     State and local
     government bonds for
     veterans' housing........
General Purpose Fiscal
 Assistance
    Exclusion of interest on      4.8    4.9    5.2    5.6    6.0    6.8    7.3    7.8    8.4    9.0   11.7   11.9   12.8   13.8   14.8   16.6   17.8   19.1    20.5    22.0      91.5     226.7
     public purpose State and
     local government debt....
    Deduction of nonbusiness    .....  .....  .....  .....  .....  .....  .....  .....  .....  .....   32.1   33.0   33.9   34.8   35.7   36.7   37.6   38.6    39.7    40.7     169.5     362.8
     State and local
     government income and
     personal property taxes..
    Tax credit for Puerto Rico    3.8    4.0    3.6    3.2    2.8    2.4    0.9  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  ......  ......      17.4      20.7
     and possession income....
Interest
    Deferral of interest on     .....  .....  .....  .....  .....  .....  .....  .....  .....  .....    1.2    1.2    1.2    1.2    1.2    1.2    1.2    1.2     1.2     1.2       6.0      12.0
     savings bonds............
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Positive tax expenditure of less than $50 million.
\2\ In addition, the exemption from excise tax for alcohol fuels results in a reduction in excise tax receipts, net of income tax effect, of $0.5 billion per year in fiscal years 2000 through
  2009.
\3\ Negative tax expenditure of less than $50 billion.
\4\ Estimate includes amounts of employer-provided health insurance purchased through cafeteria plans and employer-provided child care purchased dependent care flexible spending accounts.
  These accounts are also included in other line items in this table.
\5\ The figures in the table show the effect of the child credit on receipts. The increase in outlays is: $0.9 billion in 1999, $1.2 billion in 2000, $1.2 billion in 2001, $1.2 billion in
  2002, $1.2 billion in 2003, $1.2 billion in 2004, $1.2 billion in 2005. $1.2 billion in 2006, $1.2 billion in 2007, $1.3 billion in 2008, and $1.3 billion in 2009.
\6\ Estimate includes employer-provided child care purchased through dependent care flexibile spending accounts.
\7\ Estimate includes employee-provided health insurance purchased throgh cafeteria plans.
\8\ The figures in the table show the effect of the earned income credit on receipts. The increase in outlays is: $25.6 billion in 1999, $26.2 billion in 2000, $26.8 billion in 2001, $27.3
  billion in 2002, $27.9 billion in 2003, $28.7 billion in 2004, $29.3 billion in 2005, $29.9 billion in 2006, $30.5 billion in 2007, $31.0 billion in 2008, and $31.6 billion in 2009.

Note.--Details may not add to total due to rounding.

Source: Joint Committee on Taxation.

                          REVENUE COMPARISONS

             Table 1.--Comparison of Total Budget Revenues

Fiscal Year:            [In billions of dollars]
                                                                  Amount
    1994 Actual...............................................   1,258.6
    1995 Actual...............................................   1,351.8
    1996 Actual...............................................   1,453.1
    1997 Actual...............................................   1,579.3
    1998 Actual...............................................   1,721.8
    1999 Estimated (CBO)......................................   1,816.1
Fiscal Year 2000:
    Administration's Request (February 1999)..................   1,874.0
    Committee Level...........................................   1,876.5
Fiscal Year 2001:
    Administration's Request (February 1999)..................   1,933.1
    Committee Level...........................................   1,923.1
Fiscal Year 2002:
    Administration's Request (February 1999)..................   2,014.2
    Committee Level...........................................   1,962.6
Fiscal Year 2003:
    Administration's Request (February 1999)..................   2,090.1
    Committee Level...........................................   2,059.9
Fiscal Year 2004
    Administration's Request (February 1999)..................   2,181.7
    Committee Level...........................................   2,134.0
Fiscal Year 2005
    Administration's Request (February 1999)..................   2,285.0
    Committee Level...........................................   2,227.8
Fiscal Year 2006
    Administration's Request (February 1999)..................   2,384.0
    Committee Level...........................................   2,286.2
Fiscal Year 2007
    Administration's Request (February 1999)..................   2,489.1
    Committee Level...........................................   2,361.5
Fiscal Year 2008
    Administration's Request (February 1999)..................   2,600.2
    Committee Level...........................................   2,457.2
Fiscal Year 2009
    Administration's Request (February 1999)..................   2,715.5
    Committee Level...........................................   2,548.8

                          REVENUE COMPARISONS

             Table 2.--Comparison of Total Budget Revenues

Fiscal Year:            [In billions of dollars]
    1994 Actual...............................................    923.60
    1995 Actual...............................................  1,000.80
    1996 Actual...............................................  1,085.60
    1997 Actual...............................................  1,187.30
    1998 Actual...............................................  1,292.40
    1999 Estimated (CBO)......................................  1,369.90
Fiscal year 2000
    Administration's Request (February 1999)..................  1,406.03
    Committee Level...........................................  1,408.48
Fiscal year 2001
    Administration's Request (February 1999)..................  1,445.31
    Committee Level...........................................  1,435.35
Fiscal year 2002
    Administration's Request (February 1999)..................  1,507.94
    Committee Level...........................................  1,456.28
Fiscal year 2003
    Administration's Request (February 1999)..................  1,562.82
    Committee Level...........................................  1,532.62
Fiscal year 2004
    Administration's Request (February 1999)..................  1,631.84
    Committee Level...........................................  1,584.15
Fiscal year 2005
    Administration's Request (February 1999)..................  1,708.13
    Committee Level...........................................  1,651.00
Fiscal year 2006
    Administration's Request (February 1999)..................  1,782.14
    Committee Level...........................................  1,684.41
Fiscal year 2007
    Administration's Request (February 1999)..................  1,860.83
    Committee Level...........................................  1,733.20
Fiscal year 2008
    Administration's Request (February 1999)..................  1,945.80
    Committee Level...........................................  1,802.81
Fiscal year 2009
    Administration's Request (February 1999)..................  2,034.17
    Committee Level...........................................  1,867.51

                      TABLE 3.--CBO BASELINE REVENUES BY SOURCE, UNDER PAST AND CURRENT LAW
                  [includes on- and off-budget revenues, fiscal years, in billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                                       Projected
                                                       1950      1960      1970      1980      1990       2000
----------------------------------------------------------------------------------------------------------------
Individual Income Tax..............................      15.8      40.7      90.4     244.1     466.9      899.8
Corporate Income Tax...............................      10.4      21.5      32.8      64.6      93.5      188.4
Social Insurance Tax and contributions.............       4.3      14.7      44.4     157.8     380.0      640.2
Excises............................................       7.6      11.7      15.7      24.3      35.3       66.4
Estate and Gift taxes..............................       0.7       1.6       3.6       6.4      11.5       26.8
Customs Duties.....................................       0.4       1.1       2.4       7.2      16.7       19.1
Miscellaneous Receipts.............................       0.2       1.2       3.4      12.7      28.0       35.8
                                                    ------------------------------------------------------------
      Total \1\....................................      39.4      92.5     192.7     517.1   1,031.9    1,876.5
On-Budget Revenues.................................      37.3      81.9     159.2     403.9     750.2    1,408.5
Off-Budget Revenues \2\............................       2.1      10.6      33.5     113.2     281.7     468.0
----------------------------------------------------------------------------------------------------------------
\1\ Details may not sum to totals due to rounding.
\2\ Social Security (OASDI) revenues.

 Source: CBO February 1999 baseline revenues.


            TABLE 4.--CBO BASELINE REVENUES BY SOURCE, AS PERCENT OF GDP, UNDER PAST AND CURRENT LAW
                  [includes on- and off-budget revenues, fiscal years, in billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                                       Projected
                                                       1950      1960      1970      1980      1990       2000
----------------------------------------------------------------------------------------------------------------
Individual Income Tax..............................       5.8       7.9       9.0       9.0       8.2        9.9
Corporate Income Tax...............................       3.8       4.1       3.3       2.4       1.6        2.1
Social Insurance Tax and contributions.............       1.6       2.8       4.4       5.8       6.7        7.0
Excises............................................       2.8       2.3       1.6       0.9       0.6        0.7
Estate and Gift taxes..............................       0.2       0.3       0.4       0.2       0.2        0.3
Customs Duties.....................................       0.1       0.2       0.2       0.3       0.3        0.2
Miscellaneous Receipts.............................       0.1       0.2       0.3       0.5       0.5        0.4
                                                    ------------------------------------------------------------
      Total \1\....................................      14.4      17.8      19.1      19.0      18.2       20.6
On-Budget Revenues.................................      13.6      15.8      15.8      14.9      13.2       15.4
Off-Budget Revenues \2\............................       0.8       2.1       3.3       4.2       5.0        5.1
----------------------------------------------------------------------------------------------------------------
\1\ Details may not sum to totals due to rounding.
\2\ Social Security (OASDI) revenues.

 Source: CBO February 1999 baseline revenues.


                                                HOUSE BUDGET COMMITTEE RECOMMENDATION MINUS THE PRESIDENT'S REQUEST--TOTAL SPENDING AND REVENUES
                                                                                    [In billions of dollars]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                        Fiscal year--
                                                           -------------------------------------------------------------------------------------------------------------------------------------
                                                              1999      2000      2001      2002      2003      2004      2005      2006      2007      2008      2009     2000-2004   2000-2009
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                             SUMMARY

Total Spending:
    BA....................................................      -2.8     -54.2     -71.8     -80.2     -76.7     -84.7    -103.8    -127.5    -150.4    -173.2    -197.1      -367.6    -1,119.6
    O.....................................................      -0.9     -58.6     -68.8     -99.0     -86.4     -94.1    -110.2    -135.9    -159.6    -182.8    -205.8      -406.9    -1,201.2
    On-Budget:
        BA................................................      -2.8    -122.6    -132.6    -160.7    -160.0    -187.3    -221.0    -275.8    -327.0    -380.9    -437.7      -763.2    -2,405.6
        O.................................................      -0.9    -127.0    -129.6    -179.5    -169.7    -196.7    -227.4    -284.2    -336.2    -390.5    -446.4      -802.5    -2,487.2
    Off-Budget:
        BA................................................       0.0      68.4      60.8      80.5      83.3     102.6     117.2     148.3     176.6     207.7     240.6       395.6     1,286.0
        O.................................................       0.0      68.4      60.8      80.5      83.3     102.6     117.2     148.3     176.6     207.7     240.6       395.6     1,286.0
Revenues:
    Total.................................................       0.4      -4.0     -12.5     -51.7     -30.2     -47.7     -57.1     -97.7    -127.6    -143.0    -166.7      -146.1      -738.2
    On-Budget.............................................       0.4      -4.0     -12.5     -51.7     -30.2     -47.7     -57.1     -97.7    -127.6    -143.0    -166.7      -146.1      -738.2
    Off-Budget............................................       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0        00.0         0.0
Surplus/Deficit (-):
    Total.................................................       1.2      54.5      56.4      47.2      56.3      46.4      53.1      38.2      32.0      39.7      39.2       260.9       463.1
    On-Budget.............................................       1.2     122.9     117.2     127.7     139.6     149.0     170.3     186.5     208.6     247.5     279.8       656.5     1,749.2
    Off-Budget............................................       0.0     -68.4     -60.8     -80.5     -83.3    -102.6    -117.2    -148.3    -176.6    -207.7    -240.6      -395.6    -1,286.1


                                                                                           BY FUNCTION

National Defense (050):
    BA....................................................       0.9       8.3       3.4       6.2       5.9       5.9      -4.2     -14.8     -26.1     -37.9     -50.1        29.7      -103.4
    O.....................................................       0.0      -8.7       1.0      -2.0      -0.2      -0.3      -9.4     -20.6     -32.8     -45.0     -56.7       -10.2      -174.7
International Affairs (150):
    BA....................................................      -0.9      -4.9      -5.7      -5.7      -5.9      -5.1      -5.4      -4.6      -4.8      -4.9      -5.0       -27.3       -52.0
    O.....................................................      -0.5      -2.3      -2.4      -3.4      -3.8      -4.3      -4.8      -4.8      -4.9      -4.9      -4.9       -16.2       -40.5
General Science, Space, and Technology (250):
    BA....................................................       0.0      -1.3      -1.5      -1.5      -1.5      -1.5      -1.4      -1.4      -1.4      -1.4      -1.4        -7.3       -14.3
    O.....................................................       0.0      -0.6      -1.2      -1.4      -1.4      -1.4      -1.4      -1.4      -1.4      -1.4      -1.4        -6.0       -13.0
Energy (270):
    BA....................................................       0.0      -1.1      -2.8      -1.2      -1.2      -1.2      -1.2      -1.2      -1.2      -1.2      -1.2        -7.5       -13.5
    O.....................................................       0.0      -0.8      -2.5      -1.2      -1.2      -1.2      -1.2      -1.2      -1.2      -1.2      -1.2        -6.9       -12.9

Natural Resources and Environment (300):
    BA....................................................       0.0      -1.8      -1.5      -1.4      -1.5      -0.5      -0.5      -0.4      -0.4      -0.3      -0.3        -6.7        -8.6
    O.....................................................       0.0      -1.4      -2.2      -2.5      -1.5      -0.5      -0.5      -0.4      -0.4      -0.4      -0.4        -8.1       -10.2
Agriculture (350):
    BA....................................................       0.0      -0.8       0.5       0.5       0.5       0.6      -1.0      -1.0      -1.0      -1.0      -1.0         1.3        -3.7
    O.....................................................       0.0      -0.4      -0.1       0.5       0.5       0.5      -0.2      -1.0      -1.0      -1.0      -1.0         1.0        -3.2
Commerce and Housing Credit (370):
    BA....................................................       0.0      -1.2      -1.2      -1.1      -1.1      -1.2      -1.1      -1.1      -1.3      -1.3      -0.3        -5.8       -10.9
    O.....................................................       0.0      -1.3      -1.2      -1.1      -1.0      -1.1      -1.0      -1.0      -1.1      -1.1      -0.1        -5.7       -10.0
    On-budget:
        BA................................................       0.0      -1.2      -1.2      -1.1      -1.1      -1.2      -1.1      -1.1      -1.3      -1.3      -0.3        -5.8       -10.9
        O.................................................       0.0      -1.3      -1.2      -1.1      -1.0      -1.1      -1.0      -1.0      -1.1      -1.1      -0.1        -5.7       -10.0
    Off-budget:
        BA................................................       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0         0.0         0.0
        O.................................................       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0         0.0         0.0
Transportation (400):
    BA....................................................       0.0      -2.5      -3.5      -4.7      -5.6      -6.8      -8.0      -9.3     -10.6     -12.0     -13.4       -23.1       -76.4
    O.....................................................       0.0      -2.2      -2.7      -3.5      -5.9      -7.5      -9.0     -10.4     -11.8     -13.2     -14.6       -21.8       -80.8
Community and Regional Development (450):
    BA....................................................       0.0      -4.5      -3.8      -3.8      -3.6      -3.6      -3.6      -3.6      -3.6      -3.6      -3.6       -19.3       -37.3
    O.....................................................       0.0      -0.2      -1.9      -3.9      -4.1      -4.2      -4.3      -4.2      -4.3      -4.4      -4.4       -14.3       -35.9
Elementary and Secondary Education (501):
    BA....................................................       0.0       1.2       1.3       1.7       3.1       4.1       4.1       4.1       4.1       4.1       4.1        11.4        31.9
    O.....................................................       0.0       0.1         0       0.1       1.7       2.8       3.9       4.2       4.3       4.3       4.3         4.7        25.7
Training, Employment and Social Services (502-506):
    BA....................................................       0.5      -3.3      -5.1      -5.0      -5.0      -5.0      -5.0      -5.1      -5.1      -5.0      -6.1       -23.4       -49.7
    O.....................................................       0.5      -0.8      -5.0      -5.5      -5.7      -5.4      -5.4      -5.4      -5.4      -5.3      -6.3       -22.4       -50.2
Health (550):
    BA....................................................       0.0      -1.5      -2.7      -3.0      -3.8      -4.1      -4.6      -5.3      -6.0      -6.6      -7.4       -15.1       -45.0
    O.....................................................       0.0      -0.6      -3.0      -3.4      -4.1      -4.3      -4.8      -5.4      -6.0      -6.7      -7.4       -15.4       -45.7
Medicare (570):
    BA....................................................       0.0       1.3       2.1       1.8       1.9       1.9       2.0       2.0       2.2       2.4       2.6         9.0        20.2
    O.....................................................       0.0       1.4       2.2       1.8       1.9       1.9       2.0       2.0       2.2       2.4       2.6         9.2        20.4

Income Security (600):
    BA....................................................       0.0     -12.2     -18.4     -19.3     -14.1     -15.6     -16.5     -19.3     -21.0     -22.6     -24.4       -79.6      -183.4
    O.....................................................       0.0     -11.5     -14.3     -18.3     -18.4     -18.0     -16.9     -19.5     -21.2     -22.6     -24.4       -80.5      -185.1
Social Security (650):
    BA....................................................       0.0     -17.9     -14.9     -19.3     -19.3     -23.2     -25.6     -32.1     -37.5     -43.2     -49.1       -94.6      -282.1
    O.....................................................       0.0     -17.9     -14.9     -19.3     -19.3     -23.2     -25.6     -32.1     -37.5     -43.2     -49.1       -94.6      -282.1
    On-budget:
    BA....................................................       0.0     -84.8     -71.1     -91.7     -90.4    -109.0    -120.6    -151.7    -177.4    -204.7    -232.4      -447.0    -1,333.8
    O.....................................................       0.0     -84.8     -71.1     -91.7     -90.4    -109.0    -120.6    -151.7    -177.4    -204.7    -232.4      -447.0    -1,333.8
    Off-budget:
    BA....................................................       0.0      66.9      56.2      72.4      71.1      85.8      95.0     119.5     139.8     161.4     183.2       352.4     1,051.3
    O.....................................................       0.0      66.9      56.2      72.4      71.1      85.8      95.0     119.5     139.8     161.4     183.2       352.4     1,051.3
Veterans Benefits and Services (700):
    BA....................................................       0.0       0.9      -0.2      -0.3       0.4       0.4       0.4       0.4       0.3       0.4       0.4         1.2         3.1
    O.....................................................       0.0       1.1       0.1      -0.2       0.5       0.4       0.5       0.4       0.4       0.4       0.4         1.9         4.0
Administration of Justice (750):
    BA....................................................       0.0      -3.2      -2.3      -2.5      -2.3      -0.7      -0.5      -0.4      -0.2      -0.1       0.1       -11.0       -12.1
    O.....................................................       0.0      -1.3      -2.1      -2.2      -2.6      -0.9      -0.6      -0.4      -0.3      -0.1       0.1        -9.1       -10.4
General Government (800):
    BA....................................................       0.0      -1.4      -2.7      -2.2      -2.3      -2.3      -2.3      -2.3      -2.3      -2.4      -2.3       -10.9       -22.5
    O.....................................................       0.0      -1.4      -2.1      -2.1      -2.1      -2.2      -2.3      -2.4      -2.4      -2.4      -2.3        -9.9       -21.7
Net Interest (900):
    BA....................................................       0.0      -1.1      -3.8      -6.5      -9.1     -11.7     -14.3     -16.7     -18.5     -20.3     -22.3       -32.2      -124.3
    O.....................................................       0.0      -1.1      -3.8      -6.5      -9.1     -11.7     -14.3     -16.7     -18.5     -20.3     -22.3       -32.2      -124.3
    On-budget:
        BA................................................       0.0      -2.6      -8.4     -14.6     -21.3     -28.5     -36.5     -45.5     -55.3     -66.6     -79.7       -75.4      -359.0
        O.................................................       0.0      -2.6      -8.4     -14.6     -21.3     -28.5     -36.5     -45.5     -55.3     -66.6     -79.7       -75.4      -359.0
    Off-budget:
    BA....................................................       0.0       1.5       4.6       8.1      12.2      16.8      22.2      28.8      36.8      46.3      57.4        43.2       234.7
    O.....................................................       0.0       1.5       4.6       8.1      12.2      16.8      22.2      28.8      36.8      46.3      57.4        43.2       234.7
Allowances (920):
    BA....................................................      -3.3      -8.0     -11.5     -12.4     -13.4     -16.5     -16.8     -17.3     -18.2     -18.7     -19.1       -61.8      -151.9
    O.....................................................      -0.9      -9.5     -15.2     -24.4     -11.8     -14.9     -16.6     -17.5     -18.5     -19.1     -19.4       -75.8      -166.9
Undistributed Offsetting Receipts (950):
    BA....................................................       0.0       0.8       2.5      -0.5       1.2       1.4       1.7       2.0       2.3       2.5       2.8         5.4        16.7
    O.....................................................       0.0       0.8       2.5      -0.5       1.2       1.4       1.7       2.0       2.3       2.5       2.8         5.4        16.7
    On-budget:
        BA................................................       0.0       0.8       2.5      -0.5       1.2       1.4       1.7       2.0       2.3       2.5       2.8         5.4        16.7
        O.................................................       0.0       0.8       2.5      -0.5       1.2       1.4       1.7       2.0       2.3       2.5       2.8         5.4        16.7

    Off-budget:
        BA................................................       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0         0.0         0.0
        O.................................................       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0       0.0         0.0         0.0
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


                                                 HOUSE BUDGET COMMITTEE RECOMMENDATION COMPARED TO 1999
                                                               TOTAL SPENDING AND REVENUES
                                                                 [In billion of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                            Fiscal year--
                                           -------------------------------------------------------------------------------------------------------------
                                               2000       2001       2002       2003       2004       2005       2006       2007       2008       2009
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                         SUMMARY

Total Spending:
    BA....................................       22.4       64.2      105.1      188.9      255.3      323.3      370.0      441.3      520.2      602.3
    O.....................................       31.3       70.7      100.5      190.2      255.0      324.3      367.2      432.4      514.9      596.7
    On-Budget:
        BA................................       11.7       41.0       72.0      143.0      196.3      250.2      281.7      337.1      398.4      459.1
        O.................................       20.6       47.5       67.4      144.3      196.0      251.2      278.9      328.2      393.1      453.5
    Off-Budget:
        BA................................       10.7       23.2       33.1       45.9       59.0       73.1       88.3      104.2      121.8      143.2
        O.................................       10.7       23.2       33.1       45.9       59.0       73.1       88.3      104.2      121.8      143.2
Revenues:
    Total.................................       60.5      107.1      146.5      243.9      318.0      411.8      470.2      545.4      641.2      732.7
    On-Budget.............................       38.6       65.5       86.4      162.7      214.3      281.1      314.5      363.3      432.9      497.6
    Off-Budget............................       21.9       41.6       60.1       81.2      103.7      130.7      155.7      182.1      208.3      235.1
Surplus/Deficit (-):
    Total.................................       29.3       36.4       45.9       53.5       62.9       87.6      102.9      112.8      126.0      135.9
    On-Budget.............................       18.2       17.9       18.9       18.2       18.1       30.1       35.5       35.0       39.5       43.9
    Off-Budget............................       11.1       18.5       27.0       35.3       44.8       57.5       67.4       77.8       86.5       92.0

                                                                       BY FUNCTION

National Defense (050):
    BA....................................        9.8       24.6       29.1       39.2       48.1       49.3       50.6       51.8       53.1       54.4
    O.....................................        1.5       12.8       18.6       30.5       40.3       43.6       42.0       40.6       44.0       44.9
International Affairs (150):
    BA....................................       -5.3       -5.9       -6.8       -5.0       -3.1       -2.9       -2.7       -2.6       -2.6       -2.6
    O.....................................       -0.3        0.3       -0.4       -1.2       -1.5       -1.9       -2.2       -2.4       -2.6       -2.7
General Science, Space, and Technology
 (250):
    BA....................................       -0.9       -0.9       -0.9       -0.9       -0.9       -0.9       -0.9       -0.9       -0.9       -0.9
    O.....................................        0.0       -0.3       -0.4       -0.5       -0.5       -0.5       -0.5       -0.5       -0.5       -0.5
Energy (270):
    BA....................................       -1.1       -2.6       -1.3       -1.2       -1.5       -1.6       -1.6       -1.6       -1.3       -1.2
    O.....................................       -1.3       -3.8       -1.8       -1.9       -2.1       -2.1       -2.1       -2.1       -1.8       -1.7
Natural Resources and Environment (300):
    BA....................................       -1.4       -1.7       -1.8       -1.7       -0.7       -0.7       -0.6       -0.5       -0.6       -0.2
    O.....................................       -0.8       -1.4       -2.0       -0.9        0.1        0.0        0.0        0.0       -0.1        0.3
Agriculture (350):
    BA....................................       -8.1       -8.9      -10.7      -10.5      -10.4      -11.9      -11.9      -11.7      -11.7      -11.6
    O.....................................       -7.3       -9.1      -10.4      -10.2       -9.9      -10.5      -11.3      -11.3      -11.3      -11.2
Commerce and Housing Credit (370):
    BA....................................        7.7        8.4       11.9       12.6       11.9       10.7       10.7       10.7       10.7       11.5
    O.....................................        3.4        4.6        8.7       10.0        9.6        8.6        8.3        8.0        7.6        8.0
    On-budget:
        BA................................        7.9        8.7       12.5       12.6       11.9       10.7       10.7       10.7       10.7       11.5
        O.................................        3.6        4.9        9.3       10.0        9.6        8.6        8.3        8.0        7.6        8.0
    Off-budget:
        BA................................       -0.2       -0.3       -0.6        0.0        0.0        0.0        0.0        0.0        0.0        0.0
        O.................................       -0.2       -0.3       -0.6        0.0        0.0        0.0        0.0        0.0        0.0        0.0
Transportation (400):
    BA....................................        0.5       -0.3       -0.4        1.0        1.0        1.1        1.1        1.1        1.2        1.2
    O.....................................        1.9        3.7        3.3        2.8        2.3        2.1        2.1        2.1        2.1        2.1
Community and Regional Development (450):
    BA....................................       -2.8       -4.9       -4.9       -4.6       -4.6       -4.6       -4.6       -4.6       -4.6       -4.6
    O.....................................       -0.7       -2.3       -4.3       -5.3       -5.9       -6.6       -6.9       -7.0       -7.1       -7.1
Elementary and Secondary Education (501):
    BA....................................        5.2        7.2        7.6        9.0       10.0       10.0       10.0       10.0       10.0       10.0
    O.....................................        2.3        4.1        4.9        6.6        7.8        8.7        9.0        9.0        9.0        9.0
Training, Employment and Social Services
 (502-506):
    BA....................................       -0.9       -2.7       -3.0       -1.5       -1.1       -0.3        0.4        1.3        2.3        2.3
    O.....................................        1.5       -0.1       -1.0        0.0        0.3        0.9        1.7        2.5        3.5        3.5
Health (550):
    BA....................................        8.7       16.6       25.8       37.2       50.4       65.3       80.9       98.9      117.7      138.0
    O.....................................       12.3       21.6       33.1       44.6       57.8       71.9       87.6      104.8      123.7      144.2
Medicare (570):
    BA....................................       13.4       26.9       35.4       55.5       73.3      100.3      111.5      142.3      170.4      198.8
    O.....................................       14.1       27.7       35.6       56.3       74.1      100.6      112.3      143.2      170.6      199.6
Income Security (600):
    BA....................................        9.2       15.2       27.5       41.8       51.0       63.3       69.5       75.4       88.7       98.9
    O.....................................        9.9       19.3       28.8       38.6       47.8       60.6       67.0       73.4       87.2       97.5
Social Security (650):
    BA....................................       16.6       35.5       55.3       76.4       99.2      123.9      150.3      178.1      208.4      243.0
    O.....................................       16.6       35.3       55.1       76.2       99.0      123.8      150.1      177.9      208.2      242.8
    On-budget:
        BA................................       -0.3       -0.7        1.1        1.8        2.6        3.4        4.4        5.4        6.5        7.7
        O.................................       -0.3       -0.9        0.9        1.6        2.4        3.3        4.2        5.2        6.3        7.5
    Off-budget:
        BA................................       16.9       36.2       54.2       74.6       96.6      120.5      145.9      172.7      201.9      235.3
        O.................................       16.9       36.2       54.2       74.6       96.6      120.5      145.9      172.7      201.9      235.3
Veterans Benefits and Services (700):
    BA....................................        1.7        1.2        1.7        2.9        3.2        5.7        4.2        4.8        5.4        6.1
    O.....................................        2.1        2.0        2.2        3.4        3.8        6.4        4.9        3.3        6.1        6.7
Administration of Justice (750):
    BA....................................       -3.2       -2.2       -2.2       -2.1       -0.5       -0.3       -0.3       -0.3       -0.2       -0.2
    O.....................................        0.3        0.0       -0.2       -0.7        1.0        1.1        1.2        1.2        1.3        1.3
General Government (800):
    BA....................................       -4.9       -5.3       -5.2       -5.1       -5.1       -5.1       -5.1       -5.1       -5.1       -5.3
    O.....................................       -2.3       -3.1       -3.5       -3.6       -3.6       -3.8       -3.9       -3.9       -3.7       -3.8
Net Interest (900):
    BA....................................      -11.7      -22.4      -33.1      -43.0      -52.9      -64.2      -76.1      -87.9     -100.9     -114.0
    O.....................................      -11.7      -22.4      -33.1      -43.0      -52.9      -64.2      -76.1      -87.9     -100.9     -114.0
    On-budget:
        BA................................       -6.3      -10.8      -14.4      -16.7      -18.4      -20.8      -23.2      -24.8      -27.1      -29.1
        O.................................       -6.3      -10.8      -14.4      -16.7      -18.4      -20.8      -23.2      -24.8      -27.1      -29.1
    Off-budget:
        BA................................       -5.4      -11.6      -18.7      -26.3      -34.5      -43.4      -52.9      -63.1      -73.8      -84.9
        O.................................       -5.4      -11.6      -18.7      -26.3      -34.5      -43.4      -52.9      -63.1      -73.8      -84.9
Allowances (920):
    BA....................................       -8.0       -8.5       -6.4       -4.4       -4.5       -4.5       -4.6       -5.2       -5.3       -5.3
    O.....................................       -8.1      -12.9      -20.0       -4.8       -5.0       -5.1       -5.2       -5.8       -5.9       -5.9
Undistributed Offsetting:
    BA....................................       -2.1       -5.3      -12.7       -6.7       -7.5       -9.3      -10.8      -12.7      -14.5      -16.3
    O.....................................       -2.1       -5.3      -12.7       -6.7       -7.5       -9.3      -10.8      -12.7      -14.5      -16.3
Receipts (950):
    On-budget:
        BA................................       -1.5       -4.2      -10.9       -4.3       -4.4       -5.3       -6.1       -7.3       -8.2       -9.1
        O.................................       -1.5       -4.2      -10.9       -4.3       -4.4       -5.3       -6.1       -7.3       -8.2       -9.1
    Off-budget:
        BA................................       -0.6       -1.1       -1.8       -2.4       -3.1       -4.0       -4.7       -5.4       -6.3       -7.2
        O.................................       -0.6       -1.1       -1.8       -2.4       -3.1       -4.0       -4.7       -5.4       -6.3      -7.2
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Function 150 Budget Authority excludes 1999 IMF budget authority in the amount of $17.9 billion.


                                                 HOUSE BUDGET COMMITTEE RECOMMENDATION COMPARED TO 1999
                                                               TOTAL SPENDING AND REVENUES
                                                                   [Percentage change]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                            Fiscal year--
                                           -------------------------------------------------------------------------------------------------------------
                                               2000       2001       2002       2003       2004       2005       2006       2007       2008       2009
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                         SUMMARY

Total Spending:
    BA....................................        0.2        2.6        5.0        9.8       13.6       17.5       20.1       24.2       28.7       33.4
    O.....................................        1.8        4.1        5.9       11.2       15.0       19.0       21.6       25.4       30.2       35.0
    On-Budget:
        BA................................       -0.4        1.6        3.8        8.7       12.5       16.2       18.4       22.3       26.6       30.8
        O.................................        1.5        3.4        4.9       10.4       14.1       18.1       20.1       23.7       28.3       32.7
    Off-Budget:
        BA................................        3.4        7.3       10.5       14.5       18.6       23.1       27.9       33.0       38.5       45.3
        O.................................        3.4        7.3       10.5       14.5       18.6       23.1       27.9       33.0       38.5       45.3
Revenues:
    Total.................................        3.3        5.9        8.1       13.4       17.5       22.7       25.9       30.0       35.3       40.3
    On-Budget.............................        2.8        4.8        6.3       11.9       15.6       20.5       23.0       26.5       31.6       36.3
    Off-Budget............................        4.9        9.3       13.5       18.2       23.2       29.3       34.9       40.8       46.7       52.7
Surplus/Deficit (-):
    Total.................................       26.2       32.5       41.0       47.8       56.2       78.2       91.9      100.7      112.5      121.3
    On-Budget.............................     -102.3     -100.8     -106.5     -102.4     -101.8     -169.0     -199.6     -196.8     -222.1     -247.1
    Off-Budget............................        8.6       14.2       20.8       27.2       34.5       44.3       51.9       60.0       66.6       70.9

                                                                       BY FUNCTION

National Defense (050):
    BA....................................        3.5        8.8       10.4       14.1       17.3       17.7       18.1       18.6       19.0       19.5
    O.....................................        0.5        4.7        6.8       11.2       14.8       15.9       15.4       14.9       16.1       16.4
International Affairs (150):
    BA....................................      -32.3      -35.7      -40.9      -30.0      -18.5      -17.5      -16.2      -15.9      -15.4      -15.7
    O.....................................       -2.2        1.9       -2.7       -8.1      -10.0      -12.7      -14.6      -15.9      -17.3      -18.3
General Science, Space, and Technology
 (250):
    BA....................................       -4.7       -4.8       -5.0       -5.0       -5.0       -5.0       -5.0       -5.0       -5.0       -5.0
    O.....................................       -0.1       -1.8       -2.0       -2.5       -2.5       -2.5       -2.6       -2.6       -2.6       -2.6
Energy (270):
    BA....................................      -95.7     -226.0     -114.3     -107.4     -128.0     -139.2     -139.7     -144.4     -118.3     -106.7
    O.....................................     -196.0     -563.2     -268.1     -283.6     -304.0     -314.5     -314.6     -311.4     -267.9     -257.6
Natural Resources and Environment (300):
    BA....................................       -5.7       -7.1       -7.3       -7.1       -3.0       -2.8       -2.7       -2.2       -2.3       -0.7
    O.....................................       -3.4       -6.0       -8.6       -3.7        0.3        0.0        0.1       -0.1       -0.3        1.3
Agriculture (350):
    BA....................................      -36.2      -39.8      -47.5      -46.8      -46.2      -53.0      -52.8      -52.3      -52.1      -51.7
    O.....................................      -35.6      -44.8      -50.9      -49.8      -48.5      -51.6      -55.5      -55.2      -55.1      -54.9
Commerce and Housing Credit (370):
    BA....................................      401.2      432.6      614.8      652.0      617.3      555.3      554.0      555.6      554.3      594.4
    O.....................................      408.9      543.4     1032.6     1190.0     1138.3     1019.5      983.0      953.3      902.4      946.7
    On-budget:
        BA................................      410.6      449.7      647.9      652.0      617.3      555.3      554.0      555.6      554.3      594.4
        O.................................      430.2      582.6     1108.5     1190.0     1138.3     1019.5      983.0      953.3      902.4      946.7
    Off-budget:
        BA................................         NA         NA         NA         NA         NA         NA         NA         NA         NA         NA
        O.................................         NA         NA         NA         NA         NA         NA         NA         NA         NA         NA
Transportation (400):
    BA....................................        1.0       -0.5       -0.8        1.9        2.0        2.1        2.1        2.2        2.2        2.3
    O.....................................        4.2        8.5        7.5        6.4        5.2        4.8        4.7        4.7        4.7        4.8
Community and Regional Development (450):
    BA....................................      -27.6      -47.9      -47.8      -44.6      -45.0      -45.1      -45.1      -45.2      -45.2      -45.1
    O.....................................       -6.5      -20.3      -38.1      -46.4      -51.7      -57.9      -60.2      -61.2      -62.1      -62.4
Elementary and Secondary Education (501):
    BA....................................       31.1       43.0       45.4       53.7       59.7       59.7       59.7       59.7       59.7       59.7
    O.....................................       12.8       23.0       27.4       37.1       43.6       48.9       50.3       50.6       50.6       50.6
Training, Employment and Social Services
 (502-506):
    BA....................................       -2.1       -6.2       -6.8       -3.3       -2.6       -0.7        1.0        3.0        5.3        5.1
    O.....................................        3.6       -0.3       -2.5       -0.1        0.7        2.2        4.1        6.1        8.4        8.3
Health (550):
    BA....................................        5.9       11.3       17.5       25.2       34.2       44.3       54.8       67.0       79.8       93.6
    O.....................................        8.7       15.4       23.5       31.7       41.1       51.1       62.3       74.5       87.9      102.5
Medicare (570):
    BA....................................        6.9       13.8       18.1       28.4       37.6       51.4       57.1       72.9       87.3      101.9
    O.....................................        7.2       14.2       18.3       28.9       38.1       51.7       57.7       73.6       87.7      102.6
Income Security (600):
    BA....................................        3.9        6.5       11.7       17.8       21.7       26.9       29.6       32.1       37.7       42.1
    O.....................................        4.2        8.1       12.1       16.2       20.1       25.4       28.1       30.8       36.6       41.0
Social Security (650):
    BA....................................        4.3        9.1       14.1       19.6       25.4       31.7       38.5       45.6       53.4       62.2
    O.....................................        4.2        9.0       14.1       19.5       25.3       31.7       38.4       45.5       53.3       62.1
    On-budget:
        BA................................       -1.9       -5.1        7.3       12.3       17.7       23.7       30.2       37.1       44.9       53.2
        O.................................       -2.2       -6.3        6.0       10.9       16.3       22.2       28.6       35.5       43.2       51.3
    Off-budget
        BA................................        4.5        9.6       14.4       19.8       25.7       32.0       38.8       45.9       53.7       62.6
        O.................................        4.5        9.6       14.4       19.8       25.7       32.0       38.8       45.9       53.7       62.6
Veterans Benefits and Services (700):
    BA....................................        3.9        2.8        3.9        6.6        7.4       13.3        9.8       11.1       12.6       14.1
    O.....................................        5.0        4.8        5.1        8.0        8.8       14.8       11.4        7.7       14.1       15.7
Administration of Justice (750):
    BA....................................      -12.2       -7.6       -7.6       -7.9       -1.8       -1.3       -1.2        1.0       -0.9       -0.7
    O.....................................        1.0        0.1       -0.6       -2.7        4.0        4.5        4.6        4.8        5.0        5.1
General Government (800):
    BA....................................      -28.4      -30.8      -30.0      -29.8      -29.8      -29.7      -29.5      -29.5      -29.3      -29.3
    O.....................................      -14.4      -20.0      -22.0      -22.9      -22.6      -24.4      -24.8      -24.6      -23.4      -24.2
Net Interest (900):
    BA....................................       -5.1       -9.8      -14.4      -18.8      -23.1      -28.0      -33.2      -38.3      -44.0      -49.7
    O.....................................       -5.1       -9.8      -14.4      -18.8      -23.1      -28.0      -33.2      -38.3      -44.0      -49.7
    On-budget:
        BA................................       -2.2       -3.8       -5.1       -5.9       -6.5       -7.4       -8.2       -8.8       -9.6      -10.3
        O.................................       -2.2       -3.8       -5.1       -5.9       -6.5       -7.4       -8.2       -8.8       -9.6      -10.3
    Off-budget:
        BA................................       10.3       22.2       35.6       50.2       65.9       82.8      101.0      120.4      140.8      162.1
        O.................................       10.3       22.2       35.6       50.2       65.9       82.8      101.0      120.4      140.8      162.1
Allowances (920):
    BA....................................         NA         NA         NA         NA         NA         NA         NA         NA         NA         NA
    O.....................................         NA         NA         NA         NA         NA         NA         NA         NA         NA         NA
Undistributed Offsetting:
    BA....................................        5.4       13.1       31.6       16.7       18.7       23.2       26.8       31.8       36.2       40.7
    O.....................................        5.4       13.1       31.6       16.7       18.7       23.2       26.8       31.8       36.2       40.7
Receipts (950):
    On-budget:
        BA................................        4.7       12.7       33.3       13.1       13.4       16.3       18.5       22.4       25.0       27.7
        O.................................        4.7       12.7       33.3       13.1       13.4       16.3       18.5       22.4       25.0       27.7
    Off-budget:
        BA................................        8.4       14.9       24.0       32.9       42.5       53.8       63.6       73.4       86.0       98.1
        O.................................        8.4       14.9       24.0       32.9       42.5       53.8       63.6       73.4       86.0      98.1
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Function 150 Budget Authority excludes 1999 IMF budget authority in the amount of $17.9 billion.


                    THE CONGRESSIONAL BUDGET PROCESS

    The spending and revenue levels established in the budget 
resolution are executed through two parallel, but separate, 
mechanisms: allocations to the appropriations and authorizing 
committees, and reconciliation directives to the authorizing 
committees. The budget resolution may include instructions 
directing the authorizing committees to report legislation 
complying with entitlement, revenue, or deficit reduction 
targets. The report accompanying the budget resolution 
allocates to the Appropriations Committee and authorizing 
committees their respective shares of spending authority.

                          spending allocations

     As required under Section 302(a) of the Congressional 
Budget Act of 1974, the discretionary spending levels 
established in the budget resolution are allocated to the 
Appropriations Committee and the mandatory spending levels are 
allocated to each of the authorizing committees with mandatory 
spending authority. These levels can be enforced through points 
of order as discussed in the section ``Enforcing the Budget 
Resolution.'' Amounts provided under current law encompass 
programs that affect direct spending--entitlement and other 
programs that have spending authority or offsetting receipts. 
Amounts subject to discretionary action refer to programs that 
require subsequent legislation to provide the necessary 
spending authority.
    Budget resolutions have traditionally included 5-year 
allocations of budget authority and outlays for each of the 
authorizing committees. This budget resolution provides for 10-
year allocations of budget authority and outlays for each of 
the authorizing committees. The flexibility to provide 10-year 
allocations is found in section 302 of the Budget Act (as 
modified by the Balanced Budget Act of 1997) which requires 
that allocations of budget authority be provided in the budget 
resolution for the first fiscal year and at least the 4 ensuing 
fiscal years (except for the Committee on Appropriations).
Committee on Appropriations
    The report accompanying the budget resolution allocates a 
lump sum of discretionary budget authority that is assumed in 
the resolution and corresponding outlays to the Committee on 
Appropriations.
    Term. The allocation to the Appropriations Committee is for 
the fiscal year commencing on October 1, 1999. Unlike the 
authorizing committees, the Appropriations Committee does not 
receive a 10-year allocation of budget authority and outlays.
    Allocations. Upon receiving its 302(a) allocation, the 
Appropriations Committee is required to divide the allocation 
among its 13 subcommittees. The amount that each subcommittee 
receives constitutes its allocation under 302(b).
    Adjustments Made Under the Congressional Budget Act. 
Section 314 of the Congressional Budget Act of 1974 establishes 
a process by which the budget resolution can accommodate 
programs for which spending authority was not assumed in the 
budget resolution. Section 314 directs the Chairman of the 
Budget Committee to make adjustments to the 302(a) allocations 
and the budgetary aggregates for five purposes. Through these 
adjustments, additional budget authority and outlays will be 
made available for Continuing Disability Reviews, special 
drawing rights, arrearages to international organizations, 
designated emergencies, and an Earned Income Tax Credit 
Compliance Initiative. The Office of Management and Budget 
makes similar adjustments to the discretionary spending limits 
under section 251 of the Balanced Budget and Emergency Deficit 
Control Act of 1985 (see section on Statutory Controls Over the 
Budget).
Authorizing committees
    The authorizing committees are allocated a lump sum of new 
budget authority along with the corresponding outlays. This 
spending authority must be provided through subsequent 
legislation and is not controlled through the annual 
appropriations process. The budget authority allocated to these 
committees is categorized as subject to discretionary action 
when the resolution assumes a new or expanded mandatory program 
or a reduction in an existing program.
    Term. Since the spending authority for the authorizing 
committees is multiyear or permanent, the allocations are for 
the forthcoming budget year commencing on October 1 and the 10-
year total for fiscal year 2000 through fiscal year 2009. 
Authorizing committees are not required to file 302(b) 
allocations.
    In order to enforce these allocations, Members may raise a 
point of order against spending legislation that exceeds a 
committee's allocation (see section on Enforcing the Budget 
Resolution).
    As required by the Balanced Budget Act of 1997, the 
allocations are divided into general purpose discretionary, 
highway, and mass transit spending. These levels do not 
constitute separate allocations and hence are not subject to 
points of order under section 302(f) of the Budget Act.
    The allocations for fiscal year 2000, and fiscal years 2000 
through 2009, are as follows:

          ALLOCATIONS OF SPENDING AUTHORITY TO HOUSE COMMITTEES
                        Appropriations Committee
                        [In millions of dollars]
------------------------------------------------------------------------
                                              Budgut
            Fiscal year 2000                 authority        Outlays
------------------------------------------------------------------------
General Purpose \1\.....................         531,771         536,700
Violent Crime Reduction \1\.............           4,500           5,554
Highways \1\............................               0          24,574
Mass Transit \1\........................               0           4,117
                                         -------------------------------
      Total Discretionary Action........         536,271         570,945
Current Law Mandatory...................         321,108         303,938
------------------------------------------------------------------------
\1\ Shown for display purposes only.


                               ALLOCATIONS OF SPENDING AUTHORITY TO HOUSE COMMITTEES--COMMITTEES OTHER THAN APPROPRIATIONS
                                                                    [By budget year]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                     Total       Total
                                2000      2001      2002      2003      2004      2005      2006      2007      2008      2009     20002004    20002009
--------------------------------------------------------------------------------------------------------------------------------------------------------
    AGRICULTURE COMMITTEE

Current Law:
    BA......................    11,042     8,795     6,983     2,709     2,579     2,637     2,686     2,743     2,792     3,222      32,108      46,188
    OT......................     8,134     5,109     3,999      -259      -174      -160      -169      -146      -196       172      16,809      16,310
Reauthorizations:
    BA......................         0         0         0    28,391    29,177    29,873    30,549    31,282    31,964    32,701      57,568     213,937
    OT......................         0         0         0    27,737    29,167    29,864    30,530    31,262    31,945    32,681      56,904     213,186
Discretionary Action:
    BA......................         0     1,415     1,465     1,525     1,595         0         0         0         0         0       6,000       6,000
    OT......................         0       700     1,411     1,495     1,559       835         0         0         0         0       5,165       6,000
Total:
    BA......................    11,042    10,210     8,448    32,625    33,351    32,510    33,235    34,025    34,756    35,923      95,676     266,125
    OT......................     8,134     5,809     5,410    28,973    30,552    30,539    30,361    31,116    31,749    32,853      78,878     235,496

  ARMED SERVICES COMMITTEE

Current Law:
    BA......................    49,330    50,977    52,705    54,405    56,367    58,198    60,111    62,038    63,980    66,038     263,784     574,149
    OT......................    49,415    50,940    52,597    54,315    56,276    58,107    60,018    61,944    63,885    65,942     263,543     573,439

    BANKING AND FINANCIAL
     SERVICES COMMITTEE

Current Law:
    BA......................     4,676     5,345     5,319     5,619     4,946     5,303     5,488     5,748     5,924     6,075      25,905      54,443
    OT......................    -1,839      -675      -169       327       -80       386       235        54      -178      -387      -2,436      -2,326

 COMMITTEE ON EDUCATION AND
        THE WORKFORCE

Current Law:
    BA......................     4,790     5,222     5,508     5,403     5,154     5,367     5,578     5,807     6,021     6,234      26,077      55,084
    OT......................     4,188     4,618     4,969     5,016     4,811     4,871     5,070     5,277     5,477     5,668      23,602      49,965
Reauthorizations:
    BA......................  ........  ........       305       305       810       835       859     3,692     3,791     3,893       1,420      14,490
    OT......................  ........  ........        58       244       721       831       856     2,846     3,680     3,864       1,023      13,100
Discretionary Action:
    BA......................         0         0         0         0         0         0         0         0         0         0           0           0
    OT......................         0         0         0         0         0         0         0         0         0         0           0           0

Total:
    BA......................     4,790     5,222     5,813     5,708     5,964     6,202     6,437     9,499     9,812    10,127      27,497      69,574
    OT......................     4,188     4,618     5,027     5,260     5,532     5,702     5,926     8,123     9,157     9,532      24,625      63,065

     COMMERCE COMMITTEE

Current Law:
    BA......................    10,268    12,255    15,762    16,037    16,327    17,417    17,508    18,551    18,643    18,638      70,649     161,406
    OT......................     8,365    10,951    16,470    16,962    17,327    17,630    17,849    18,072    18,300    18,335      70,075     160,261

   INTERNATIONAL RELATIONS
          COMMITTEE
Current Law:
    BA......................     9,362     9,171     8,509     7,860     7,734     7,876     7,740     7,721     7,965     7,924      42,636      81,862
    OT......................    11,984    11,553    11,608     9,397     8,411     8,384     8,018     7,898     8,014     7,992      52,953      93,259

 GOVERNMENT REFORM COMMITTEE

Current Law:
    BA......................    59,501    61,320    63,344    65,557    67,979    70,502    73,076    75,755    78,591    81,514     317,701     697,139
    OT......................    57,941    59,703    61,674    63,848    66,208    68,662    71,162    73,746    76,482    78,953     309,374     678,379

     COMMITTEE ON HOUSE
       ADMINISTRATION

Current Law:
    BA......................       114        95        93        93        93        94        92        92        92        92         488         950
    OT......................       289        45        28        57       241        56        30        63       233        98         660       1,140

     RESOURCES COMMITTEE

Current Law:
    BA......................     2,398     2,301     2,127     2,166     2,098     2,111     2,150     2,190     2,238     2,367      11,090      22,146
    OT......................     2,271     2,319     2,125     2,191     2,161     2,175     2,247     2,315     2,378     2,444      11,067      22,626

     JUDICIARY COMMITTEE

Current Law:
    BA......................     4,759     4,737     4,704     4,773     4,818     3,364     3,445     3,502     3,566     3,647      23,791      41,315
    OT......................     4,235     4,529     4,620     4,681     4,727     3,283     3,339     3,393     3,449     3,519      22,792      39,775

     TRANSPORTATION AND
  INFRASTRUCTURE COMMITTEE

Current Law:
    BA......................    51,081    50,632    51,684    52,832    15,100    15,178    15,371    15,528    16,091    16,520     221,329     300,017
    OT......................    16,152    16,151    15,992    15,997    15,694    15,482    15,489    15,537    16,040    16,441      79,986     158,975
Reauthorizations:
    BA......................         0         0         0         0    37,673    37,673    37,673    37,673    37,673    37,673      37,673     226,038
    OT......................         0         0         0         0       104       306       452       538       590       615         104       2,605

Discretionary Action:
    BA......................     2,410     2,410     2,410     2,410     2,410     2,410     2,410     2,410     2,410     2,410      12,050      24,100
    OT......................         0         0         0         0         0         0         0         0         0         0           0           0
Total:
    BA......................    53,491    53,042    54,094    55,242    55,183    55,261    55,454    55,611    56,174    56,603     271,052     550,155
    OT......................    16,152    16,151    15,992    15,997    15,798    15,788    15,941    16,075    16,630    17,056      80,090     161,580

      SCIENCE COMMITTEE

Current Law:
    BA......................        92        83        49        49        49        49        49        49        49        49         322         567
    OT......................        72        80        80        58        51        49        49        49        49        49         341         586

  SMALL BUSINESS COMMITTEE
Current Law:
    BA......................         0         0         0         0         0         0         0         0         0         0           0           0
    OT......................      -155      -140      -125      -110       -95       -75       -55       -35       -20       -10        -625        -820

 VETERANS' AFFAIRS COMMITTEE

Current Law:
    BA......................     1,106     1,058     1,002     1,044       887       813       746       689       629       566       5,097       8,540
    OT......................     1,377     1,440     1,371     1,481     1,416     1,380     1,358     1,331     1,312     1,280       7,085      13,746
Discretionary Action:
    BA......................       394       874     1,367     1,868     2,390     3,132     3,475     4,036     4,610     5,199       6,893      27,345
    OT......................       360       833     1,325     1,824     2,347     3,132     3,475     3,694     4,562     5,150       6,689      26,702
Total:
    BA......................     1,500     1,932     2,369     2,912     3,277     3,945     4,221     4,725     5,239     5,765      11,990      35,885
    OT......................     1,737     2,273     2,696     3,305     3,763     4,512     4,833     5,025     5,874     6,430      13,774      40,448

  WAYS AND MEANS COMMITTEE

Current Law:
    BA......................   668,264   685,703   697,617   702,501   724,818   754,418   766,064   796,757   822,906   848,254   3,478,903   7,467,302
    OT......................   663,521   681,362   693,683   701,623   723,563   752,546   764,688   795,366   820,845   846,731   3,463,752   7,443,928
Reauthorizations:
    BA......................         0         0         0    19,542    19,542    19,542    19,542    19,542    19,542    19,542      39,084     136,794
    OT......................         0         0         0    17,559    18,667    19,317    19,967    20,667    21,367    22,117      36,226     139,661

Discretionary Action:
    BA......................         0       400       400       600       600       600       600       600       600       600       2,000       5,000
    OT......................         0       400       400       600       600       600       600       600       600       600       2,000       5,000
Total:
    BA......................   668,264   686,103   698,017   722,643   744,960   774,560   786,206   816,899   843,048   868,396   3,519,987   7,609,096
    OT......................   663,521   681,762   694,083   719,782   742,830   772,463   785,255   816,633   842,812   869,448   3,501,978   7,588,589
--------------------------------------------------------------------------------------------------------------------------------------------------------

            safe deposit box for social security trust funds

    Section 5 establishes a safe deposit box for Social 
Security surpluses. Subsection (a) finds that Social Security 
is off-budget for purposes of the President's budget submission 
and the congressional budget process; the Old Age Survivors and 
Disability Insurance [OASDI] trust funds have been running 
surpluses for 17 years; and that these surpluses have been 
implicitly used to finance general operations of the Federal 
government. Subsection (a) also finds that this resolution is 
the first budget resolution to balance the budget without 
counting the Social Security surpluses. It also finds that the 
only way to ensure that Social Security surpluses are not used 
for other purposes is to balance the budget without using the 
Social Security surpluses.
    Subsection (b) establishes a freestanding rule prohibiting 
the consideration in the House and Senate of any budget 
resolution that sets forth an on-budget deficit. It recognizes 
that to the extent the budget resolution establishes an on-
budget deficit, it is implicitly relying on Social Security to 
finance the general operations of the Federal government. 
Paragraph (1) clarifies that, for purposes of this section, the 
deficit levels are those set forth in the resolution pursuant 
to section 301 of the Budget Act. They may not include any 
adjustment to those aggregates for rulemaking provisions that 
provide for contingent adjustments in the aggregates for 
legislation that would strengthen retirement security, or 
extend the solvency of Medicare or reform its benefit or 
payment structure. Consistent with the enforcement of 
comparable requirements in the Congressional Budget Act, this 
rule may only be waived by a majority of the House and 60 
Members of the Senate.
    Subsection (c) states that it is the sense of Congress that 
Congress should consider legislation that changes the budgetary 
treatment of Social Security in two ways. First of all, 
paragraph (1) provides that Congress should consider 
legislation that would establish a statutory limit on debt held 
by the public at levels that assume a reduction equal the 
amount of the Social Security surpluses. By reducing the debt 
held by the public by the amount of the Social Security 
surpluses, these surpluses would effectively be used to reduce 
the Federal debt.
    Secondly, paragraph (2) states that legislation should be 
considered that would require that any official statement on 
the surpluses or deficit totals of the Federal government to 
exclude the outlays and receipts of the Social Security trust 
funds and related provisions in the Internal Revenue Code. This 
requirement specifically extends to the Office of Management 
and Budget, the Congressional Budget Office, and ``any other 
agency or instrumentality of the Federal Government'' (italics 
added). Similar language has beenintroduced as part of such 
freestanding bills as H.R. 863, offered by Representatives Herger and 
Minge; and H.R. 853, offered by Representatives Nussle, Cardin, and 
Goss (which is virtually identical to H.R. 4837 (105th Congress)).

                             reserve funds

    Section 6 establishes a reserve fund for retirement 
security and Medicare legislation. This so-called reserve fund 
is actually a set of procedures for adjusting the levels in the 
budget resolution to accommodate retirement security and 
Medicare legislation. The sum of any adjustments under this 
section may not exceed the projected Social Security surpluses.
    The adjustments are solely for legislation that would 
strengthen retirement security or reform Medicare. The 
committee intends that any retirement security legislation 
under this section would augment and strengthen the Social 
Security program without directly amending the Social Security 
Act (since the Social Security program is technically outside 
the congressional budget process). It similarly intends that 
any Medicare legislation considered under this section would be 
in response to the President's Medicare Commission. Although 
the legislation need not be actually recommended by the 
Commission, it must extend the solvency of Medicare or reform 
its benefit or payment structure.
    Any adjustments are at the discretion of the Budget 
Committee chairman, but if the chairman makes the adjustments 
it must be in the amount the spending authority or revenue loss 
provided by, or resulting from, the legislation. However, the 
maximum adjustments for all bills considered pursuant to this 
section is an amount equal to the projected Social Security 
surpluses. If such legislation is considered before the mid-
session report, the projected on-budget surplus is based on the 
levels set forth in this report. If the legislation is 
considered after CBO's mid-session report, then the levels are 
based on the projected levels in that report. Finally, 
subsection (c) specifies that no adjustment may be made if the 
legislation, together with any other legislation considered 
under this section, would exceed the estimated Social Security 
surplus for any of the following intervals: fiscal year 2000, 
the 5-year total, or the 10-year total. Accordingly, the 
Congressional Budget Office [CBO] is directed to include an up-
to-date estimate of the Social Security surpluses in its mid-
session report.
    The adjustments are to be made when the bill is reported 
from committee, an amendment is offered to the bill, or the 
conference report accompanying the bill is filed. The 
adjustments must be made at the specified times or the 
legislation could breech the appropriate allocations and 
aggregates in the budget resolution and hence be subject to a 
point of order.
    Section 7 also provides a reserve fund for special 
education. Like the reserve fund for retirement security and 
Medicare in section 6, this reserve fund includes procedures to 
increase the appropriate levels in the budget resolution for 
legislation providing appropriations for special education. The 
amount of any adjustment is capped at an amount equal to any 
projected increase in the on-budget surplus.
    The adjustment is at the discretion of the Budget Committee 
chairman who will consult with the other members of the Budget 
Committee in making any adjustments. The adjustment may be in 
any amount up to the amount appropriated for special education, 
but not to exceed an amount consistent with a Federal 
contribution of 40 percent of the authorized levels. To ensure 
that appropriations for special education do not come out of 
the Social Security surpluses, the maximum adjustment in any 
fiscal year may not exceed an up-to-date projection of the on-
budget surplus for that fiscal year.
    The adjustments are to be made when the appropriate bill is 
reported, an amendment to the bill is offered, or the 
conference report accompanying the bill is filed. Subsection 
(c) directs the Director of the Congressional Budget Office to 
provide up-to-date estimates of the surplus at the request of 
the chairman of the House Budget Committee.
    Section 8 clarifies the applications and effect of any 
adjustments pursuant to sections 6 and 7. Subsection (a) 
clarifies that the adjustment applies only when the bill is 
under consideration and does not permanentlytake effect until 
the bill is enacted. Subsection (a) also requires the Budget Committee 
Chairman to submit any revised allocations in the Congressional Record.
    Subsection (b) clarifies that the adjusted allocations and 
aggregates are effective for ``all purposes under the Budget 
Act.'' In other words, any bill that exceeds the adjusted 
allocations or aggregates is subject to a point of order under 
302(f) and 311(a) of the Congressional Budget Act. Similarly, 
any tax bill that would reduce revenues below the adjusted 
revenue levels would be subject to a point of order under 
section 311(a).

CBO's updated budget projections

    Section 9 directs the Director of the Congressional Budget 
Office to make up-to-date budgetary estimates of the current 
fiscal year on a quarterly basis. These estimates are to 
include the estimated outlays, receipts, and surplus. 
Additionally, these estimates must include both on and off-
budget amounts. Currently, CBO makes adjustments in its Budget 
and Economic Outlook in early February, the re-estimate of the 
President's budget in March or April, and in the mid session 
update in August. In addition, CBO provides monthly comparisons 
between CBO's budgetary projections and actual cash flows based 
on monthly statements from the Department of the Treasury.

                      reconciliation instructions

    As provided in Section 310(a) of the Congressional Budget 
Act of 1974, the budget resolution includes reconciliation 
instructions to the Ways and Means Committee to report to the 
House changes in tax law necessary to achieve the revenue 
targets in the budget resolution.
    Term. The reconciliation targets are for fiscal year 2000; 
the 5-year total for fiscal years 2000 through 2004; and 10-
year total for fiscal years 2000 through 2009. The Ways and 
Means Committee has discretion in the levels that it would 
achieve in any given year in fiscal years 2001 through fiscal 
year 2009, so long as the committee complies with its targets 
for the first year and the 5-year and 10-year totals.

                                      HOUSE BUDGET COMMITTEE RECOMMENDATION
                      FISCAL YEAR 2000 BUDGET RESOLUTION RECONCILIATION BY HOUSE COMMITTEE
                                            [In billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                          2000 to      2000 to
                          Committee                            1999 Base       2000         2004         2009
----------------------------------------------------------------------------------------------------------------
Ways & Means
      Total Revenues........................................      1,369.9      1,408.5      7,416.8     16,155.7
----------------------------------------------------------------------------------------------------------------


                    ENFORCING THE BUDGET RESOLUTION

    The budget resolution is more than a planning document. The 
allocations of spending authority and the aggregate levels of 
both spending authority and revenues are binding on the 
Congress when it considers subsequent spending and tax 
legislation. Legislation that would breach the levels set forth 
in the budget resolution is subject to points of order on the 
floor.
    Any Member of the House may raise a point of order against 
any tax or spending that creates new entitlement authority 
during certain points in a calendar year, or breeches the 
allocations and aggregate spending levels established in the 
budget resolution. If the point of order is sustained, the 
House is precluded from further consideration of the measure.
    The major Budget Act requirements are as follows:
    Section 302(f). Prohibits consideration of legislation that 
exceeds a committee's allocation of new budget authority. 
Section 302(f) applies to the budget year and the 10-year total 
for authorizing committees. For appropriations bills, however, 
it applies only to the budget year. An exception is provided 
for legislation that is offset by tax increases above and 
beyond those required by the budget resolution.
    Section 303(a). Prohibits consideration of spending and tax 
legislation before the House has passed a budget resolution. 
Section 303(a) does not apply to budget authority and revenue 
provisions first effective in an outyear or to appropriation 
bills after May 15.
    Section 311(a)(1). Prohibits consideration of legislation 
that exceeds the ceiling on budget authority and outlays or 
reduces revenue below the revenue floor. Section 311(a)(1) 
applies to the budget year and 10-year total for bills 
increasing revenue, but only to the budget year for 
appropriations bills. Section 311 does not apply to spending 
bills that are under their 302(a) allocations.
    Section 401(a). Prohibits consideration of legislation 
providing borrowing authority, new credit authority, or 
contract authority that is not subject to discretionary 
appropriations.
    Section 401(b)(1). Prohibits consideration of legislation 
creating new entitlement authority in the year preceding the 
budget year. Does not apply to trust funds primarily financed 
by earmarked taxes.
    Under sections 303(g), 308(b)(2), and 311(c) of the Budget 
Act, the Budget Committee advises the presiding officer on the 
application of points of order against specific legislation 
pending before the House. House Budget Committee rules also 
authorize the chairman to poll the committee on recommendations 
to the Rules Committee to enforce the Budget Act by not waiving 
points of order against specific legislation.
    Senate Enforcement Procedures. In the Balanced Budget Act, 
the Senate reaffirmed the extension of the pay-as-you-go point 
of order through fiscal year 2002. This point of order 
prohibits the consideration of any mandatory spending or tax 
legislation that would increase the deficit in the first fiscal 
year, the first 5 fiscal years or the second 5 fiscal years 
covered by the most recently passed budget resolution. Sixty 
votes are required to waive the point of order.

                   STATUTORY CONTROLS OVER THE BUDGET

    In addition to the allocations and aggregate spending 
levels in the budget resolution, the Federal budget is subject 
to statutorily established spending limits and budgetary 
controls. The Balanced Budget Act revised and extended the caps 
on discretionary spending as well as the pay-as-you-go [PAYGO] 
requirements for entitlement and tax legislation. Both the 
spending caps and PAYGO requirements are enforced with 
automatic spending cuts through a process know as 
sequestration.

                     discretionary spending limits

    Under the BBA there is a combined limit on all 
discretionary appropriations for fiscal years 2000 through 
2003. In addition, the 1998 highway authorization act 
(``Transportation Equity Act for the 21st Century'' or TEA-21) 
set forth separate categories for highway and mass transit 
spending for fiscal years 1999 through 2003.
    The BBA provides automatic adjustments to the spending caps 
for appropriations bills that provide budget authority and the 
resulting outlays (subject to certain limitations) for 
emergencies, estimating differences in outlays, continuing 
disability reviews, the International Monetary Fund [IMF], 
international arrearages, and an Earned Income Tax Credit 
compliance initiative. Similarly, TEA-21 provides for an 
automatic cap adjustment for changes in revenue relating to the 
highway spending category.

                            CURRENT STATUTORY CAPS BY BUDGET ENFORCEMENT ACT CATEGORY
                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                           Fiscal year                                 2000-           2001-           2002
----------------------------------------------------------------------------------------------------------------
General Purpose:
    BA..........................................................         531,771         541,324         550,382
    O...........................................................         536,700         539,940         534,972
Violent Crime Reduction:
    BA..........................................................           4,500              na              na
    O...........................................................           5,554              na              na
Highways:
    BA..........................................................              na              na              na
    O...........................................................          24,574          26,219          26,663
Mass Transit:
    BA..........................................................              na              na              na
    O...........................................................           4,117           4,888           5,384
                                                                 -----------------------------------------------
Total:
    BA..........................................................         536,271         541,324         550,382
    O...........................................................         570,945         571,047         567,019
----------------------------------------------------------------------------------------------------------------
Source: Office of Management and Budget, Budget Enforcement Act.
Preview Report, February 1, 1999.

                       pay-as-you-go requirements

    OBRA 1990 also established a pay-as-you-go [PAYGO] 
requirement for tax and entitlement legislation. Under PAYGO, 
the sum of all tax and entitlement (or otherwise mandatory) 
legislation may not increase the net deficit in any fiscal 
year.
    The Balanced Budget Act of 1997 extended the PAYGO 
requirements through fiscal year 2002. As amended by OBRA 93, 
PAYGO had been scheduled to expire at the end of fiscal year 
2002. PAYGO is enforced through a sequestration applied to all 
non-exempt entitlement programs. The law is somewhat unclear 
whether PAYGO lapses when there is an on-budget surplus. OMB 
has hinted that PAYGO would indeed lapse if the budget was in 
balance without counting excess Social Security receipts.

                      SENSES OF HOUSE AND CONGRESS

    Section 5(c) and sections 10 through 16 express the 
following senses of House and Congress.
    Section 5(c).--Sense of Congress Regarding Social Security 
Surpluses.
    Section 10.--Sense of Congress on the Commission on 
International Religious Freedom.
    Section 11.--Sense of the House on Providing Additional 
Dollars to the Classroom.
    Section 12.--Sense of Congress on Asset-Building for the 
Working Poor.
    Section 13.--Sense of Congress on Access to Health 
Insurance and Preserving Home Health Services for all Medicare 
Beneficiaries.
    Section 14.--Sense of the House on Medicare Payment.
    Section 15.--Sense of the House on Assessment of Welfare-
to-Work Programs.
    Section 16.--Sense of Congress on Providing Honor Guard 
Services for Veterans' Funerals.

       ROLL CALL VOTES AND OTHER ITEMS REQUIRED UNDER HOUSE RULES

                            COMMITTEE VOTES

    Clause 3(b) of House Rule XIII requires each committee 
report to accompany any bill or resolution of a public 
character, ordered to include the total number of votes cast 
for and against on each roll call vote, on a motion to report 
and any amendments offered to the measure or matter, together 
with the names of those voting for and against. Listed below 
are the roll call votes taken in the House Budget Committee on 
the concurrent resolution on the budget for fiscal year 2000.
    On March 17, 1999, the Committee met in open session, a 
quorum being present. The Committee adopted and ordered 
reported the Concurrent Resolution on the Budget for Fiscal 
Year 2000. The following votes were taken in Committee:
    1. Mr. Chambliss made a motion to authorize the Chairman, 
consistent with Rule XVI, clause 4 of the Rules of the House, 
to declare a recess at any time during the Committee meeting. 
The motion was agreed to by voice vote.
    2. Mr. Spratt offered an amendment to add language 
resolving that all unified surpluses shall be saved in a lock-
box for buying down publicly held debt until reforms extending 
the solvency of the Social Security and Medicare programs are 
enacted and that the Budget and Rules Committees should report 
the necessary implementing legislation.
    The amendment offered by Mr. Spratt was defeated on a roll 
call vote of 19 ayes and 23 noes.

----------------------------------------------------------------------------------------------------------------
         Representative             Aye-       No-     Present    Representative      Aye-       No-     Present
----------------------------------------------------------------------------------------------------------------
Mr. Kasich, Chairman............  ........        X   ........  Mr. Spratt,               X   ........  ........
                                                                 Ranking.
Mr. Chambliss...................  ........        X   ........  Mr. McDermott.....        X   ........  ........
Mr. Shays-......................  ........        X   ........  Ms. Rivers........        X   ........  ........
Mr. Herger-.....................  ........        X   ........  Mr. Thompson -....        X   ........  ........
Mr. Franks -....................  ........        X   ........  Mr. Minge--.......        X   ........  ........
Mr. Smith-......................  ........        X   ........  Mr. Bentsen-......        X   ........  ........
Mr. Nussle -....................  ........        X   ........  Mr. Davis--.......        X   ........  ........
Mr. Hoekstra....................  ........        X   ........  Mr. Weygand-......        X   ........  ........
Mr. Radanovich..................  ........        X   ........  Mrs. Clayton-.....        X   ........  ........
Mr. Bass -......................  ........        X   ........  Mr. Price-........        X   ........  ........
Mr. Gutknecht...................  ........        X   ........  Mr. Markey -......        X   ........  ........
Mr. Hilleary....................  ........        X   ........  Mr. Kleczka--.....        X   ........  ........
Mr. Sununu -....................  ........        X   ........  Mr. Clement--.....        X   ........  ........
Mr. Pitts-......................  ........  ........  ........  Mr. Moran.........       X-   ........  ........
Mr. Knollenberg.................  ........        X   ........  Mr. Hooley--......        X   ........  ........
Mr. Thornberry..................  ........        X   ........  Mr. Lucas--.......        X   ........  ........
Mr. Ryun-.......................  ........        X   ........  Mr. Holt--........        X   ........  ........
Mr. Collins-....................  ........        X   ........  Mr. Hoeffel--.....        X   ........  ........
Mr. Wamp-.......................  ........        X   ........  Ms. Baldwin--.....        X   ........  ........
Mr. Green-......................  ........       X-   ........  --................  ........  ........  ........
Mr. Fletcher....................        X         -   ........  ..................  ........  ........      ---
Mr. Miller -....................  ........        X   ........  ..................  ........  ........     ----
Mr. Ryan........................  ........  ........  ........  ..................  ........  ........  ........
Mr. Toomey-.....................  ........        X   ........  ..................  ........  ........       --
----------------------------------------------------------------------------------------------------------------

    3. Mr. Spratt offered an amendment related to transfers 
from the General Fund into the Social Security and the Medicare 
trust funds.
    The amendment offered by Mr. Spratt was defeated on a roll 
call vote of 16 ayes and 21 noes.

----------------------------------------------------------------------------------------------------------------
         Representative             Aye-       No-     Present    Representative      Aye-       No-     Present
----------------------------------------------------------------------------------------------------------------
Mr. Kasich, Chairman............  ........        X   ........  Mr. Spratt,               X   ........  ........
                                                                 Ranking-.
Mr. Chambliss -.................  ........        X   ........  Mr. McDermott-....        -   ........  ........
Mr. Shays--.....................  ........  ........  ........  Ms. Rivers-.......        -         -   ........
Mr. Herger--....................  ........        X   ........  Mr. Thompson --...        X   ........  ........
Mr. Franks --...................  ........        X   ........  Mr. Minge--.......  ........  ........  ........
Mr. Smith--.....................  ........        X   ........  Mr. Bentsen-......       X-   ........  ........
Mr. Nussle --...................  ........        X   ........  Mr. Davis--.......        X   ........  ........
Mr. Hoekstra-...................  ........        X   ........  Mr. Weygand--.....        X   ........  ........
Mr. Radanovich -................  ........  ........  ........  Mrs. Clayton--....  ........       X-   ........
Mr. Bass --.....................  ........        X   ........  Mr. Price --......        X   ........        -
Mr. Gutknecht-..................  ........        X   ........  Mr. Markey --.....       X-   ........  ........
Mr. Hilleary-...................  ........        X   ........  Mr. Kleczka--.....       X-   ........  ........
Mr. Sununu --...................  ........        X   ........  Mr. Clement--.....       X-   ........  ........
Mr. Pitts--.....................  ........        X   ........  Mr. Moran--.......       X-   ........  ........
Mr. Knollenberg-................  ........        X   ........  Mr. Hooley--......        X   ........        -
Mr. Thornberry-.................  ........        X   ........  Mr. Lucas--.......       X-   ........  ........
Mr. Ryun--......................  ........        X   ........  Mr. Holt--........       X-   ........  ........
Mr. Collins--...................  ........        X   ........  Mr. Hoeffel--.....        X   ........  ........
Mr. Wamp--......................  ........        X   ........  Ms. Baldwin--.....       X-   ........  ........
Mr. Green--.....................  ........       X-   ........  --................  ........  ........  ........
Mr. Fletcher-...................  ........       X-   ........  --................        -   ........  ........
Mr. Miller --...................  ........       X-   ........  --................  ........  ........      ---
Mr. Ryan--......................  ........        -   ........  --................  ........  ........      ---
Mr. Toomey--....................  ........       X-   ........  --................  ........  ........      ---
----------------------------------------------------------------------------------------------------------------

    4. Ms. Baldwin offered an amendment increasing new budget 
authority and outlays for function 570 and increasing the 
revenue aggregates to current law levels (assuming increased 
funding for health care for the disabled, a Medicare buy-in, 
home health agency payments and the elimination of the assumed 
tax cuts). In addition, it provides for reinstatement of the 
tax cuts, less the amount necessary to offset the increases in 
function 570, contingent on the enactment of legislation that 
extends the solvency of the Medicare and Social Security trust 
funds. Finally, it establishes a reserve fund within the 
contingent tax cuts for tax credits for long-term care and the 
working disabled and the Patient's Bill of Rights as proposed 
by Rep. Dingell.
    The amendment offered by Ms. Baldwin was defeated on a roll 
call vote of 15 ayes and 23 noes.

----------------------------------------------------------------------------------------------------------------
         Representative              Aye       No      Present    Representative       Aye       No      Present
----------------------------------------------------------------------------------------------------------------
Mr. Kasich, Chairman............  ........       X-   ........  Mr. Spratt,               X   ........        -
                                                                 Ranking.
Mr. Chambliss...................  ........        X   ........  Mr. McDermott.....  ........  ........  ........
Mr. Shays.......................  ........        X   ........  Ms. Rivers........        X   ........  ........
Mr. Herger......................  ........        X   ........  Mr. Thompson......        X   ........  ........
Mr. Franks......................  ........        X   ........  Mr. Minge.........  ........  ........  ........
Mr. Smith.......................  ........        X   ........  Mr. Bentsen.......  ........  ........  ........
Mr. Nussle......................  ........        X   ........  Mr. Davis.........        X   ........  ........
Mr. Hoekstra....................  ........        X   ........  Mr. Weygand.......        X   ........  ........
Mr. Radanovich..................  ........        X   ........  Mrs. Clayton......        X   ........  ........
Mr. Bass........................  ........        X   ........  Mr. Price.........        X   ........  ........
Mr. Gutknecht...................  ........        X   ........  Mr. Markey........        X   ........  ........
Mr. Hilleary....................  ........        X   ........  Mr. Kleczka.......        X   ........  ........
Mr. Sununu......................  ........        X   ........  Mr. Clement.......        X   ........  ........
Mr. Pitts.......................  ........  ........  ........  Mr. Moran.........        X   ........  ........
Mr. Knollenberg.................  ........        X   ........  Mr. Hooley........        X   ........  ........
Mr. Thornberry..................  ........        X   ........  Mr. Lucas.........  ........  ........  ........
Mr. Ryun........................  ........        X   ........  Mr. Holt..........        X   ........  ........
Mr. Collins.....................  ........        X   ........  Mr. Hoeffel-......        X   ........  ........
Mr. Wamp........................  ........        X   ........  Ms. Baldwin.......        X   ........  ........
Mr. Green.......................  ........        X         -
Mr. Fletcher....................  ........        X   ........
Mr. Miller......................  ........        X   ........
Mr. Ryan........................  ........        X   ........
Mr. Toomey......................  ........        X   ........
----------------------------------------------------------------------------------------------------------------

    5. Ms. Hooley offered an amendment increasing new budget 
authority and outlays for function 500, reducing budget 
authority and outlays for function 050 in fiscal year 2000, and 
increasing revenue aggregates to current law levels (assuming 
increased funding for the purpose of hiring 100,000 teachers 
while reducing funding for national security, and eliminating 
the assumed tax cuts). In addition, it provides for 
reinstatement of the tax cuts, less the amount necessary to 
offset the increases in function 500, contingent on the 
enactment of legislation that extends the solvency of the 
Medicare and Social Security trust funds. Finally, it 
establishes a reserve fund within the contingent tax cuts for 
tax credits related to school construction and renovation 
bonds.
    The amendment offered by Ms. Hooley was defeated on a roll 
call vote of 17 ayes and 22 noes.

----------------------------------------------------------------------------------------------------------------
         Representative              Aye       No      Present    Representative       Aye       No      Present
----------------------------------------------------------------------------------------------------------------
Mr. Kasich, Chairman............  ........        X   ........  Mr. Spratt,               X   ........  ........
                                                                 Ranking.
Mr. Chambliss...................  ........        X   ........  Mr. McDermott.....  ........  ........  ........
Mr. Shays-......................  ........        X   ........  Ms. Rivers........        X   ........  ........
Mr. Herger......................  ........        X   ........  Mr. Thompson......        X   ........  ........
Mr. Franks......................  ........        X   ........  Mr. Minge.........        X   ........  ........
Mr. Smith.......................  ........        X   ........  Mr. Bentsen.......        X   ........        -
Mr. Nussle......................  ........        X   ........  Mr. Davis.........  ........  ........  ........
Mr. Hoekstra....................  ........        X   ........  Mr. Weygand.......        X   ........  ........
Mr. Radanovich..................  ........        X   ........  Mrs. Clayton......        X   ........  ........
Mr. Bass........................  ........        X   ........  Mr. Price.........        X   ........  ........
Mr. Gutknecht...................  ........        X   ........  Mr. Markey........        X   ........  ........
Mr. Hilleary....................  ........  ........  ........  Mr. Kleczka-......        X   ........  ........
Mr. Sununu......................  ........        X   ........  Mr. Clement.......        X   ........  ........
Mr. Pitts.......................  ........  ........  ........  Mr. Moran.........        X   ........  ........
Mr. Knollenberg.................  ........        X   ........  Mr. Hooley........        X   ........  ........
Mr. Thornberry..................  ........        X   ........  Mr. Lucas.........        X   ........  ........
Mr. Ryun........................  ........        X   ........  Mr. Holt..........        X   ........  ........
Mr. Collins.....................  ........        X   ........  Mr. Hoeffel.......        X   ........  ........
Mr. Wamp........................  ........        X         -   Ms. Baldwin.......        X   ........        -
Mr. Green.......................  ........        X   ........
Mr. Fletcher....................  ........        X   ........
Mr. Miller......................  ........        X   ........
Mr. Ryan........................  ........        X   ........
Mr. Toomey......................  ........        X   ........
----------------------------------------------------------------------------------------------------------------

    6. Mrs. Clayton offered an amendment increasing new budget 
authority and outlays for functions 500 and 600 and increasing 
revenue aggregates to current law levels (assuming expansions 
in Head Start, 21st Century Learning Centers, the Child Care 
and Development Block Grant and the Early Learning Fund, and 
the elimination of the assumed tax cuts). In addition, it 
provides for reinstatement of the tax cuts, less the amount 
necessary to offset the increases in functions 500 and 600, 
contingent on the enactment of legislation that extends the 
solvency of the Medicare and Social Security trust funds. 
Finally, it establishes a reserve fund within the contingent 
tax cuts for an expansion of the child and dependent care tax 
credit and child care tax credit for families with young 
children and businesses that provide child care for their 
employees.
    The amendment offered by Mrs. Clayton was defeated on a 
roll call vote of 18 ayes and 23 noes.

----------------------------------------------------------------------------------------------------------------
         Representative              Aye       No-     Present    Representative       Aye       No      Present
----------------------------------------------------------------------------------------------------------------
Mr. Kasich, Chairman............  ........        X   ........  Mr. Spratt,               X   ........  ........
                                                                 Ranking-.
Mr. Chambliss...................  ........        X   ........  Mr. McDermott.....  ........  ........  ........
Mr. Shays.......................  ........        X   ........  Ms. Rivers........        X   ........  ........
Mr. Herger......................  ........        X   ........  Mr. Thompson......        X   ........  ........
Mr. Franks......................  ........        X   ........  Mr. Minge.........        X   ........  ........
Mr. Smith.......................  ........        X   ........  Mr. Bentsen.......        X   ........  ........
Mr. Nussle......................  ........        X   ........  Mr. Davis.........        X   ........      ---
Mr. Hoekstra....................  ........        X   ........  Mr. Weygand.......        X   ........      ---
Mr. Radanovich..................  ........        X   ........  Mrs. Clayton......        X   ........      ---
Mr. Bass........................  ........        X   ........  Mr. Price.........        X   ........  ........
Mr. Gutknecht...................  ........        X   ........  Mr. Markey........        X   ........  ........
Mr. Hilleary....................  ........        X   ........  Mr. Kleczka.......        X   ........  ........
Mr. Sununu......................  ........        X   ........  Mr. Clement.......        X   ........  ........
Mr. Pitts.......................  ........  ........  ........  Mr. Moran.........        X   ........  ........
Mr. Knollenberg.................  ........        X   ........  Mr. Hooley........        X   ........  ........
Mr. Thornberry..................  ........        X   ........  Mr. Lucas.........        X   ........  ........
Mr. Ryun........................  ........        X   ........  Mr. Holt..........        X   ........  ........
Mr. Collins.....................  ........        X   ........  Mr. Hoeffel.......        X   ........  ........
Mr. Wamp........................  ........        X   ........  Ms. Baldwin.......        X   ........  ........
Mr. Green.......................  ........        X
Mr. Fletcher....................  ........        X
Mr. Miller......................  ........        X
Mr. Ryan........................  ........        X
Mr. Toomey......................  ........        X
----------------------------------------------------------------------------------------------------------------

    7. Mr. Thompson offered an amendment expressing the sense 
of the Congress language regarding changes in the tax law to 
encourage asset building by low-income workers and their 
families.
    The amendment offered by Mr. Thompson was adopted by voice 
vote.
    8. Messieurs Weygand, Fletcher and Ryun offered an 
amendment expressing the sense of the Congress on the 
importance of home health care for seniors and disabled 
citizens, and that the Congress and the Administration should 
work together on various health related issues.
    The amendment was adopted by unanimous consent.
    9. Mr. Hoeffel offered an amendment increasing new budget 
authority and outlays in functions 300, 400, 450, 500, 750 and 
increasing revenue aggregates above current law levels 
(assuming the President's Livability Agenda and Lands Legacy 
Initiative, the elimination of corporate tax benefits, and the 
elimination of the assumed tax cuts). It would also provide 
funding for a new mandatory land acquisition program. In 
addition, it provides for reinstatement of the tax cuts, less 
the amount necessary to offset the increases in functions 300, 
400, 450, and 750, contingent on the enactment of legislation 
that extends the solvency of the Medicare and Social Security 
trust funds. Finally, it establishes a reserve fund within the 
contingent tax cuts for tax credits related to the issuance of 
bonds used by state and local governments.
    The amendment offered by Mr. Hoeffel was defeated on a roll 
call vote of 18 ayes and 23 noes.

----------------------------------------------------------------------------------------------------------------
         Representative              Aye       No      Present    Representative       Aye       No      Present
----------------------------------------------------------------------------------------------------------------
Mr. Kasich, Chairman............  ........        X   ........  Mr. Spratt,               X   ........  ........
                                                                 Ranking.
Mr. Chambliss...................  ........        X   ........  Mr. McDermott.....        X   ........  ........
Mr. Shays.......................  ........        X   ........  Ms. Rivers........        X   ........  ........
Mr. Herger......................  ........        X   ........  Mr. Thompson......        X   ........  ........
Mr. Franks......................  ........        X   ........  Mr. Minge.........        X   ........  ........
Mr. Smith.......................  ........        X   ........  Mr. Bentsen.......  ........  ........  ........
Mr. Nussle......................  ........        X   ........  Mr. Davis.........        X   ........  ........
Mr. Hoekstra....................  ........        X   ........  Mr. Weygand.......        X   ........  ........
Mr. Radanovich..................  ........        X   ........  Mrs. Clayton......        X   ........  ........
Mr. Bass........................  ........        X   ........  Mr. Price.........        X   ........  ........
Mr. Gutknecht...................  ........        X   ........  Mr. Markey........        X   ........  ........
Mr. Hilleary....................  ........        X   ........  Mr. Kleczka.......        X   ........  ........
Mr. Sununu......................  ........        X   ........  Mr. Clement.......        X   ........  ........
Mr. Pitts.......................  ........  ........  ........  Mr. Moran.........        X   ........  ........
Mr. Knollenberg.................  ........        X   ........  Mr. Hooley........        X   ........  ........
Mr. Thornberry..................  ........        X   ........  Mr. Lucas.........        X   ........  ........
Mr. Ryun........................  ........        X   ........  Mr. Holt..........        X   ........  ........
Mr. Collins.....................  ........        X   ........  Mr. Hoeffel.......        X   ........  ........
Mr. Wamp........................  ........        X   ........  Ms. Baldwin.......        X   ........  ........
Mr. Green.......................  ........        X   ........
Mr. Fletcher....................  ........        X   ........
Mr. Miller......................  ........        X   ........
Mr. Ryan........................  ........        X   ........
Mr. Toomey......................  ........        X   ........
----------------------------------------------------------------------------------------------------------------

    10. Mr. Holt offered an amendment increasing new budget 
authority and outlays for functions 250 and 550, reducing 
budget authority and outlays for function 050 in fiscal year 
2000 and increasing the revenue aggregates to current law 
levels (assuming increased funding for the National Science 
Foundation and the National Institutes of Health and the 
elimination of the assumed tax cuts). In addition, it provides 
for reinstatement of the tax cuts, less the amount necessary to 
offset the increases in functions 250 and 550, contingent on 
the enactment of legislation that extends the solvency of the 
Medicare and Social Security trust funds.
    The amendment offered by Mr. Holt was defeated on a roll 
call vote of 18 ayes and 22 noes.

----------------------------------------------------------------------------------------------------------------
         Representative              Aye       No      Present    Representative       Aye       No      Present
----------------------------------------------------------------------------------------------------------------
Mr. Kasich, Chairman............  ........        X   ........  Mr. Spratt,               X   ........  ........
                                                                 Ranking.
Mr. Chambliss...................  ........        X   ........  Mr. McDermott.....        X   ........  ........
Mr. Shays.......................  ........        X   ........  Ms. Rivers........        X   ........  ........
Mr. Herger......................  ........        X   ........  Mr. Thompson......        X   ........  ........
Mr. Franks......................  ........        X   ........  Mr. Minge.........        X   ........  ........
Mr. Smith.......................  ........        X   ........  Mr. Bentsen.......        X   ........  ........
Mr. Nussle......................  ........        X   ........  Mr. Davis.........        X   ........  ........
Mr. Hoekstra....................  ........        X   ........  Mr. Weygand.......        X   ........  ........
Mr. Radanovich..................  ........  ........  ........  Mrs. Clayton......        X   ........  ........
Mr. Bass........................  ........        X   ........  Mr. Price.........        X   ........  ........
Mr. Gutknecht...................  ........        X   ........  Mr. Markey........        X   ........  ........
Mr. Hilleary....................  ........        X   ........  Mr. Kleczka.......  ........  ........  ........
Mr. Sununu......................  ........        X   ........  Mr. Clement.......        X   ........  ........
Mr. Pitts.......................  ........  ........  ........  Mr. Moran.........        X   ........  ........
Mr. Knollenberg.................  ........        X   ........  Mr. Hooley........        X   ........  ........
Mr. Thornberry..................  ........        X   ........  Mr. Lucas.........        X   ........  ........
Mr. Ryun........................  ........        X   ........  Mr. Holt..........        X   ........  ........
Mr. Collins.....................  ........        X   ........  Mr. Hoeffel.......        X   ........  ........
Mr. Wamp........................  ........        X   ........  Ms. Baldwin.......        X   ........  ........
Mr. Green.......................  ........        X   ........
Mr. Fletcher....................  ........        X   ........
Mr. Miller......................  ........        X   ........
Mr. Ryan........................  ........        X   ........
Mr. Toomey......................  ........        X   ........
----------------------------------------------------------------------------------------------------------------

    11. Mr. Minge offered an amendment increasing new budget 
authority and outlays for function 350 and increasing the 
revenue aggregates to current law levels (assuming increased 
funding for crop insurance reform and the elimination of the 
assumed tax cuts). In addition, it provides for reinstatement 
of the tax cuts, less the amount necessary to offset the 
increases in functions 350, contingent on the enactment of 
legislation that extends the solvency of the Medicare and 
Social Security trust funds.
    Mr. Minge withdrew the amendment.
    12. Ms. Rivers offered an amendment increasing new budget 
authority and outlays for function 500 and increasing revenue 
aggregates to current law levels (assuming an increase in 
funding for special education programs). In addition, it 
provides for reinstatement of the tax cuts, less the amount 
necessary to offset the increases in functions 500, contingent 
on the enactment of legislation that extends the solvency of 
the Medicare and Social Security trust funds.
    The amendment offered by Ms. Rivers was defeated on a roll 
call vote of 17 ayes and 22 noes.

----------------------------------------------------------------------------------------------------------------
         Representative              Aye       No      Present    Representative       Aye       No      Present
----------------------------------------------------------------------------------------------------------------
Mr. Kasich, Chairman............  ........        X   ........  Mr. Spratt,               X   ........  ........
                                                                 Ranking.
Mr. Chambliss...................  ........        X   ........  Mr. McDermott.....  ........  ........  ........
Mr. Shays.......................  ........        X   ........  Ms. Rivers........        X   ........  ........
Mr. Herger......................  ........        X   ........  Mr. Thompson......        X   ........  ........
Mr. Franks......................  ........        X   ........  Mr. Minge.........        X   ........  ........
Mr. Smith.......................  ........        X   ........  Mr. Bentsen.......        X   ........  ........
Mr. Nussle......................  ........        X   ........  Mr. Davis.........        X   ........  ........
Mr. Hoekstra....................  ........        X   ........  Mr. Weygand.......        X   ........  ........
Mr. Radanovich..................  ........  ........  ........  Mrs. Clayton......        X   ........  ........
Mr. Bass........................  ........        X   ........  Mr. Price.........        X   ........  ........
Mr. Gutknecht...................  ........        X   ........  Mr. Markey........        X   ........  ........
Mr. Hilleary....................  ........        X   ........  Mr. Kleczka.......        X   ........  ........
Mr. Sununu......................  ........        X   ........  Mr. Clement.......        X   ........  ........
Mr. Pitts.......................  ........  ........  ........  Mr. Moran.........  ........  ........  ........
Mr. Knollenberg.................  ........        X   ........  Mr. Hooley........        X   ........  ........
Mr. Thornberry..................  ........        X   ........  Mr. Lucas.........        X   ........  ........
Mr. Ryun........................  ........        X   ........  Mr. Holt..........        X   ........  ........
Mr. Collins.....................  ........        X   ........  Mr. Hoeffel.......        X   ........  ........
Mr. Wamp........................  ........        X   ........  Ms. Baldwin.......        X   ........  ........
Mr. Green.......................  ........        X   ........
Mr. Fletcher....................  ........        X   ........
Mr. Miller......................  ........        X   ........
Mr. Ryan........................  ........        X   ........
Mr. Toomey......................  ........        X   ........
----------------------------------------------------------------------------------------------------------------

    13. Mr. Weygand offered an amendment expressing the sense 
of the Congress that committees should make every effort to 
provide resources for honor guards at veterans' funerals.
    The amendment offered by Mr. Weygand was adopted by 
unanimous consent.
    14. Mr. Clement offered an amendment expressing the sense 
of the Congress the resolution assumes $3 million for the 
Commission on International Religious Liberty and urging the 
Appropriations Committee to provide the necessary 
appropriation.
    The amendment offered by Mr. Clement was adopted by 
unanimous consent.
    15. Mrs. Clayton offered an amendment increasing new budget 
authority and outlays for function 500 and increasing the 
revenue aggregates to current law levels (assuming the 
President's requested level for his initiative on welfare-to-
work and the elimination of the assumed tax cuts). In addition, 
it provides for reinstatement of the tax cuts, less the amount 
necessary to offset the increases in function 500, contingent 
on the enactment of legislation that extends the solvency of 
the Medicare and Social Security trust funds.
    The amendment was withdrawn
    16. Mr. Collins offered an amendment in the nature of a 
substitute to Mrs. Clayton's amendment. The amendment urges the 
Secretary of Labor to provide a report analyzing welfare-to-
work programs.
    The amendment was withdrawn.
    17. Mr. Moran offered an amendment expressing the sense of 
the Congress that there should be parity between the 
compensation of members of the uniformed services and civilian 
federal employees.
    The amendment offered by Mr. Moran was defeated by voice 
vote.
    18. Mr. Weygand offered an amendment expressing the sense 
of the Congress regarding the proper use of the federal share 
of the proceeds of the tobacco settlement.
    The amendment was withdrawn.
    19. Mr. Clement offered an amendment increasing new budget 
authority and outlays in function 700, reducing budget 
authority and outlays in function 050 in fiscal year 2000, and 
increasing revenue aggregates to current law levels (assuming 
greater funding for veterans' programs, decreased spending for 
defense programs in the year 2000 and the elimination of the 
assumed tax cuts). In addition, it provides for reinstatement 
of the tax cuts, less the amount necessary to offset the 
increases in functions 700, contingent on the enactment of 
legislation that extends the solvency of the Medicare and 
Social Security trust funds.
    The amendment offered by Mr. Clement was defeated on a vote 
of 17 ayes and 22 noes.

----------------------------------------------------------------------------------------------------------------
          Representative              Aye       No     Present     Representative        Aye       No    Present
----------------------------------------------------------------------------------------------------------------
Mr. Kasich, Chairman..............  .......        X   .......  Mr. Spratt, Ranking.        X   .......  .......
Mr. Chambliss.....................  .......        X   .......  Mr. McDermott.......        X   .......  .......
Mr. Shays.........................  .......        X   .......  Ms. Rivers..........        X   .......  .......
Mr. Herger........................  .......        X   .......  Mr. Thompson........        X   .......  .......
Mr. Franks........................  .......        X   .......  Mr. Minge...........        X   .......  .......
Mr. Smith.........................  .......        X   .......  Mr. Bentsen.........        X   .......  .......
Mr. Nussle........................  .......        X   .......  Mr. Davis...........        X   .......  .......
Mr. Hoekstra......................  .......        X   .......  Mr. Weygand.........        X   .......  .......
Mr. Radanovich....................  .......  ........  .......  Mrs. Clayton........        X   .......  .......
Mr. Bass..........................  .......        X   .......  Mr. Price...........  ........  .......  .......
Mr. Gutknecht.....................  .......        X   .......  Mr. Markey..........        X   .......  .......
Mr. Hilleary......................  .......        X   .......  Mr. Kleczka.........        X   .......  .......
Mr. Sununu........................  .......        X   .......  Mr. Clement.........        X   .......  .......
Mr. Pitts.........................  .......  ........  .......  Mr. Moran...........  ........  .......  .......
Mr. Knollenberg...................  .......        X   .......  Mr. Hooley..........        X   .......  .......
Mr. Thornberry....................  .......        X   .......  Mr. Lucas...........        X   .......  .......
Mr. Ryun..........................  .......        X   .......  Mr. Holt............        X   .......  .......
Mr. Collins.......................  .......        X   .......  Mr. Hoeffel.........        X   .......  .......
Mr. Wamp..........................  .......        X   .......  Ms. Baldwin.........        X   .......  .......
Mr. Green.........................  .......        X   .......  ....................  ........  .......  .......
Mr. Fletcher......................  .......        X   .......  ....................  ........  .......  .......
Mr. Miller........................  .......        X   .......  ....................  ........  .......  .......
Mr. Ryan..........................  .......        X   .......  ....................  ........  .......  .......
Mr. Toomey........................  .......        X   .......  ....................  ........  .......  .......
----------------------------------------------------------------------------------------------------------------

    20. Mrs. Clayton offered an amendment increasing new budget 
authority and outlays for functions 600 and increasing revenue 
aggregates to current law levels (assuming increased funding 
for the summer food service program, the child and adult care 
food program and other nutrition programs, and the elimination 
of the assumed tax cuts). In addition, it provides for 
reinstatement of the tax cuts, less the amount necessary to 
offset the increases in functions 600, contingent on the 
enactment of legislation that extends the solvency of the 
Medicare and Social Security trust funds.
    Mrs. Clayton withdrew her amendment.
    21. Mr. Markey offered an amendment increasing new budget 
authority and outlays for function 550 and increasing the 
revenue aggregates to current law levels (assuming increased 
funding for long-term in home care, community based respite 
care for Medicare beneficiaries and their families, and the 
elimination of the assumed tax cuts). The amendment also 
provided report language to be included in the report on the 
concurrent resolution on the budget. In addition, it provides 
for reinstatement of the tax cuts, less the amount necessary to 
offset the increases in functions 550, contingent on the 
enactment of legislation that extends the solvency of the 
Medicare and Social Security trust funds.
    The amendment offered by Mr. Markey was defeated on a roll 
call vote of 16 ayes and 22 noes.

----------------------------------------------------------------------------------------------------------------
          Representative              Aye       No     Present     Representative        Aye       No    Present
----------------------------------------------------------------------------------------------------------------
Mr. Kasich, Chairman..............  .......        X   .......  Mr. Spratt, Ranking.        X   .......  .......
Mr. Chambliss.....................  .......        X   .......  Mr. McDermott.......        X   .......  .......
Mr. Shays.........................  .......        X   .......  Ms. Rivers..........        X   .......  .......
Mr. Herger........................  .......        X   .......  Mr. Thompson........        X   .......  .......
Mr. Franks........................  .......        X   .......  Mr. Minge...........  ........  .......  .......
Mr. Smith.........................  .......        X   .......  Mr. Bentsen.........        X   .......  .......
Mr. Nussle........................  .......        X   .......  Mr. Davis...........        X   .......  .......
Mr. Hoekstra......................  .......        X   .......  Mr. Weygand.........        X   .......  .......
Mr. Radanovich....................  .......  ........  .......  Mrs. Clayton........        X   .......  .......
Mr. Bass..........................  .......        X   .......  Mr. Price...........        X   .......  .......
Mr. Gutknecht.....................  .......        X   .......  Mr. Markey..........        X   .......  .......
Mr. Hilleary......................  .......        X   .......  Mr. Kleczka.........        X   .......  .......
Mr. Sununu........................  .......        X   .......  Mr. Clement.........        X   .......  .......
Mr. Pitts.........................  .......  ........  .......  Mr. Moran...........  ........  .......  .......
Mr. Knollenberg...................  .......        X   .......  Mr. Hooley..........        X   .......  .......
Mr. Thornberry....................  .......        X   .......  Mr. Lucas...........        X   .......  .......
Mr. Ryun..........................  .......        X   .......  Mr. Holt............        X   .......  .......
Mr. Collins.......................  .......        X   .......  Mr. Hoeffel.........        X   .......  .......
Mr. Wamp..........................  .......        X   .......  Ms. Baldwin.........        X   .......  .......
Mr. Green.........................  .......        X   .......  ....................  ........  .......  .......
Mr. Fletcher......................  .......        X   .......  ....................  ........  .......  .......
Mr. Miller........................  .......        X   .......  ....................  ........  .......  .......
Mr. Ryan..........................  .......        X   .......  ....................  ........  .......  .......
Mr. Toomey........................  .......        X   .......  ....................  ........  .......  .......
----------------------------------------------------------------------------------------------------------------

    22. Mr. Bentsen offered an amendment to reserve amounts 
within the revenue levels for the purpose of repealing the 
Harbor Maintenance Excise Tax and offered report language on 
funding levels for the Army Corps of Engineers.
    The amendment offered by Mr. Bentsen was defeated by voice 
vote.
    23. Ms. Hooley offered report language stating that the 
resolution assumes increased funding for Pacific Northwest 
Salmon recovery that is efficient and expeditiously directed to 
local communities and salmon restoration organizations.
    Ms. Hooley withdrew her proposed report language.
    24. Mr. Bentsen offered an amendment increasing new budget 
authority and outlays for function 550 and increasing the 
revenue aggregates to current law levels (assuming the 
increased funding for state to enroll low-income children in 
Medicaid and to require the Social Security Administration to 
enroll low income seniors to help pay their Medicare premiums 
and deductibles, and the elimination of the assumed tax cuts). 
In addition, it provides for reinstatement of the tax cuts, 
less the amount necessary to offset the increases in function 
550, contingent on the enactment of legislation that extends 
the solvency of the Medicare and Social Security trust funds.
    The amendment offered by Mr. Bentsen was defeated on a roll 
call vote of 18 ayes and 22 noes.

----------------------------------------------------------------------------------------------------------------
          Representative              Aye       No     Present     Representative        Aye       No    Present
----------------------------------------------------------------------------------------------------------------
Mr. Kasich, Chairman..............  .......        X   .......  Mr. Spratt, Ranking.        X   .......  .......
Mr. Chambliss.....................  .......        X   .......  Mr. McDermott.......        X   .......  .......
Mr. Shays.........................  .......        X   .......  Ms. Rivers..........        X   .......  .......
Mr. Herger........................  .......        X   .......  Mr. Thompson........        X   .......  .......
Mr. Franks........................  .......        X   .......  Mr. Minge...........        X   .......  .......
Mr. Smith.........................  .......        X   .......  Mr. Bentsen.........        X   .......  .......
Mr. Nussle........................  .......        X   .......  Mr. Davis...........        X   .......  .......
Mr. Hoekstra......................  .......        X   .......  Mr. Weygand.........        X   .......  .......
Mr. Radanovich....................  .......  ........  .......  Mrs. Clayton........        X   .......  .......
Mr. Bass..........................  .......        X   .......  Mr. Price...........        X   .......  .......
Mr. Gutknecht.....................  .......        X   .......  Mr. Markey..........        X   .......  .......
Mr. Hilleary......................  .......        X   .......  Mr. Kleczka.........        X   .......  .......
Mr. Sununu........................  .......        X   .......  Mr. Clement.........        X   .......  .......
Mr. Pitts.........................  .......  ........  .......  Mr. Moran...........  ........  .......  .......
Mr. Knollenberg...................  .......        X   .......  Mr. Hooley..........        X   .......  .......
Mr. Thornberry....................  .......        X   .......  Mr. Lucas...........        X   .......  .......
Mr. Ryun..........................  .......        X   .......  Mr. Holt............        X   .......  .......
Mr. Collins.......................  .......        X   .......  Mr. Hoeffel.........        X   .......  .......
Mr. Wamp..........................  .......        X   .......  Ms. Baldwin.........        X   .......  .......
Mr. Green.........................  .......        X   .......
Mr. Fletcher......................  .......        X   .......
Mr. Miller........................  .......        X   .......
Mr. Ryan..........................  .......        X   .......
Mr. Toomey........................  .......        X   .......
----------------------------------------------------------------------------------------------------------------

    25. Mr. Minge offered an amendment expressing the sense of 
the Congress that the Medicare + Choice program should be a 
priority before financing new Medicare programs and benefits 
that may add to the imbalance of payments and benefits in the 
fee-for-service Medicare and Medicare + Choice programs.
    The amendment offered by Mr. Minge was adopted by a voice 
vote.
    26. Mr. Bentsen offered an amendment expressing the sense 
of the Congress that budget surpluses should be used to reduce 
the publicly held debt, that Congress and the Administration 
should abide by the caps and PAYGO requirements and that the 
firewall, between defense and non-defense discretionary 
spending should be extended in fiscal year 2000.
    The amendment offered by Mr. Bentsen was defeated on a 
voice vote.
    27. Mr. Minge offered an amendment that would exclude 
Social Security transactions from statements and other 
documents on the surplus and deficit totals.
    The amendment offered by Mr. Minge was adopted by voice 
vote.
    28. Mr. Markey offered an amendment to require the 
Congressional Budget Office to prepare monthly estimates of 
receipts, outlays, and the surplus or deficit if any, for the 
current fiscal year.
    The amendment offered by Mr. Markey as amended was adopted 
by voice vote.
    29. Mr. Markey asked unanimous consent to amend his 
amendment by striking ``month'' and inserting ``quarter'' at 
the appropriate place.
    The unanimous consent request was granted and the amendment 
was amended.
    30. Mr. Hoekstra offered an amendment expressing the sense 
of the Congress that federal education programs should be 
consolidated and that 95% of federal funding for elementary and 
secondary education should be directed to the classroom.
    The amendment offered by Mr. Hoekstra was adopted by voice 
vote.
    31. Mr. Price offered an amendment in the nature of a 
substitute to Mr. Hoekstra's amendment increasing new budget 
authority and outlays for function 500, decreasingbudget 
authority and outlays for function 500, decreasing budget authority and 
outlays for function 050 in fiscal year 2000, and increasing the 
revenue aggregates to current law levels (assuming the necessary 
funding for 100,000 new teachers, and decreasing spending on defense 
programs in the year 2000 and the elimination of the assumed tax cuts). 
In addition, it provides for reinstatement of the tax cuts, less the 
amount necessary to offset the increases in function 500, contingent on 
the enactment of legislation that extends the solvency of the Medicare 
and Social Security trust funds.
    The amendment was defeated on a voice vote.
    32. Mrs. Clayton and Mr. Collins offered an amendment 
expressing the sense of the Congress that the Secretary of 
Labor should prepare a report on welfare-to-work programs.
    The amendment offered by Mrs. Clayton and Mr. Collins was 
adopted by voice vote.
    33. Mr. Chambliss made a motion that the Committee adopt 
the aggregates, function totals, and other relevant items as 
the Concurrent Resolution on the Budget for Fiscal Year 2000.
    The motion offered by Mr. Chambliss was agreed to by voice 
vote.
    34. Mr. Chambliss made a motion that the Committee report 
the Concurrent Resolution with a favorable recommendation and 
that the Concurrent Resolution pass. The motion offered by Mr. 
Chambliss was agreed to by a roll call vote of 22 ayes and 18 
noes.

----------------------------------------------------------------------------------------------------------------
          Representative               Aye       No    Present     Representative       Aye       No     Present
----------------------------------------------------------------------------------------------------------------
Mr. Kasich, Chairman..............        X   .......  .......  Mr. Spratt, Ranking.  .......        X   .......
Mr. Chambliss.....................        X   .......  .......  Mr. McDermott.......  .......        X   .......
Mr. Shays.........................        X   .......  .......  Ms. Rivers..........  .......        X   .......
Mr. Herger........................        X   .......  .......  Mr. Thompson........  .......        X   .......
Mr. Franks........................        X   .......  .......  Mr. Minge...........  .......        X   .......
Mr. Smith.........................        X   .......  .......  Mr. Bentsen.........  .......        X   .......
Mr. Nussle........................        X   .......  .......  Mr. Davis...........  .......        X   .......
Mr. Hoekstra......................        X   .......  .......  Mr. Weygand.........  .......        X   .......
Mr. Radanovich....................  ........  .......  .......  Mrs. Clayton........  .......        X   .......
Mr. Bass..........................        X   .......  .......  Mr. Price...........  .......        X   .......
Mr. Gutknecht.....................        X   .......  .......  Mr. Markey..........  .......        X   .......
Mr. Hilleary......................        X   .......  .......  Mr. Kleczka.........  .......        X   .......
Mr. Sununu........................        X   .......  .......  Mr. Clement.........  .......        X   .......
Mr. Pitts.........................  ........  .......  .......  Mr. Moran...........  .......  ........  .......
Mr. Knollenberg...................        X   .......  .......  Mr. Hooley..........  .......        X   .......
Mr. Thornberry....................        X   .......  .......  Mr. Lucas...........  .......        X   .......
Mr. Ryun..........................        X   .......  .......  Mr. Holt............  .......        X   .......
Mr. Collins.......................        X   .......  .......  Mr. Hoeffel.........  .......        X   .......
Mr. Wamp..........................        X   .......  .......  Ms. Baldwin.........  .......        X   .......
Mr. Green.........................        X   .......  .......
Mr. Fletcher......................        X   .......  .......
Mr. Miller........................        X   .......  .......
Mr. Ryan..........................        X   .......  .......
Mr. Toomey........................        X   .......  .......
----------------------------------------------------------------------------------------------------------------

    35. Mr. Chambliss asked for unanimous consent that the 
Chairman be authorized to make a motion to go to conference 
pursuant to clause 1 of House rule XXII, the staff be 
authorized to make any necessary technical and conforming 
corrections in the resolution, and any committee amendments, 
and calculate any remaining elements required in the 
resolution, prior to filing the resolution, and the motion to 
reconsider be laid upon the table.
    The unanimous consent request was granted.

                  Budget Committee Oversight Findings

    Clause 3(c)(1) of rule XIII requires each committee report 
to contain oversight findings and recommendations required 
pursuant to clause 2(b)(1) of rule X. The Committee on the 
Budget has examined its activities over the past year and has 
determined that there are no oversight findings.

 Oversight Findings and Recommendations of the Committee on Government 
                                 Reform

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

                  Miscellaneous Budgetary Information

    Clause 3(c)(2) of rule XIII of the Rules of the House of 
Representatives provides that Committee reports shall contain 
the statement required by Section 308(a)(1) of the 
Congressional Budget Act of 1974. This report does not contain 
such a statement because as a concurrent resolution setting 
forth a blueprint for the Congressional budget, the budget 
resolution does not actually provide new budget authority or 
new entitlement authority or change revenues.

          Establishment of Statutory Limit on the Public Debt

    Clause 3 of rule XXIII requires the report of the committee 
on the Budget of the House accompanying any Concurrent 
Resolution on the Budget to include a clear statement of the 
effect of adoption of the concurrent resolution upon the 
statutory limit on the debt. House rule XXIII provides for the 
automatic engrossment of a bill raising the statutory limit 
upon the conference report on the Concurrent Resolution on the 
Budget.
    The adoption of this budget resolution will have no effect 
on the statutory limit on the debt if, as expected, the rule 
providing for the consideration of the Concurrent Resolution on 
the Budget for fiscal year 2000 waives the applicability of 
House rule XXIII. House Resolution 152 waived the applicability 
of this rule (which was designated as House rule XLIX in the 
105th Congress) during the consideration of House Concurrent 
Resolution 284, the Concurrent Resolution on the Budget for 
fiscal year 1999.
    According to the Views and Estimates submitted by the 
Committee on Ways and Means, the current statutory public debt 
limit of $5.95 trillion will not be reached until sometime 
beyond fiscal year 2009.

                       Views of Committee Members

    Clause 2(l) of rule XI requires each committee to afford a 
2-day opportunity for members of the committee to file 
additional, minority, or dissenting views and to include the 
view in its report. The following views were submitted:

                             MINORITY VIEWS

    Last year, for the first time in the history of the Budget 
Committee, Congress failed to pass a Concurrent Budget 
Resolution. The House passed a resolution diverging so far from 
reality that a conference was never convened to reconcile the 
differences between the House and Senate. This year, the budget 
resolution is equally unrealistic. Even if a conference does 
succeed in working out the differences, the conference report 
is unlikely to set a framework for spending and taxing with any 
hope of enactment.
    Republicans not only bring to the floor a Budget Resolution 
requiring appropriation bills they know they cannot pass; they 
also present no feasible solutions to make Social Security and 
Medicare solvent. This resolution is a poor start for the first 
fiscal year in the next millennium.
    Three times during this decade--in 1990, 1993, and 1997--
Congress passed bold budgets to deal with our enormous 
deficits. This year, the fruits of our efforts are spread 
before us in the form of surpluses, forecast as far as the eye 
can see. We have resolved the problem of annual deficits and 
can operate with a surplus and pay down our mountainous debt, 
provided we hold to disciplines like the pay-go rules that have 
helped achieve these results. But the actuaries at the Social 
Security Administration tell us that Social Security will 
exhaust its trust fund by 2032, and will then be able to pay 
only 75 cents on each dollar of benefits owed out of its 
incoming tax revenues. The Health Care Financing Administration 
tells us that the Hospital Insurance Trust Fund will draw down 
its trust fund even sooner, possibly as early as 2008.
    These are not recent revelations, but until we wiped out 
our annual deficits, the long-run problems of Social Security 
and Medicare were difficult to deal with. This year, Congress 
is in a position to address these problems and take the country 
into the next millennium on strong fiscal footings. But the 
Budget Resolution reported by the Committee does not rise to 
the challenge. While the clock ticks away on Social Security 
and Medicare, Republicans have chosen to waste time. They 
propose tax cuts that grow larger with time and dissipate the 
surpluses that could be used to safeguard Social Security and 
Medicare.

                  failing social security and medicare

    Social Security and Medicare are the bedrock on which 
millions of Americans depend. Both are solvent for now because 
of budget measures Congress passed in 1983 and again in 1990, 
1993, and 1997. But projections show that in the foreseeable 
future both could run short of the funds they need to cover the 
benefits they provide. President Clinton dealt with their 
problems in his budget by proposing a framework for committing 
the budget surpluses to extend the solvency of Social Security 
and Medicare. The President proposed that from FY 2000 to FY 
2014, 62% of our unified budget surpluses should be committed 
to Social Security, extending its solvency to 2056, and 15% of 
our unified budget surpluses should be committed to Medicare, 
extending its solvency by 12 years, or beyond 2020.
    The Republicans reject the President's proposals out of 
hand and offer no alternatives for Medicare in their Budget 
Resolution. They propose instead tax cuts so large that they 
would drain the budget of funds that could be used to keep 
Medicare solvent.
    As for Social Security, Republicans propose a rhetorical 
``lock box'' to require that all Social Security surpluses be 
used to pay down government debt held by the public. But their 
``lock box'' has a loose lid and a trap floor. They stipulate 
that Social Security surpluses will be used only to buy down 
debt held by the public, unless 3/5 of Congress votes otherwise 
or unless a simple majority votes to use the surpluses to 
offset the revenues lost in setting up private retirement 
accounts as a substitute for Social Security. This trap door is 
a threat to the Social Security benefits provided under current 
law. If funds already committed to Social Security 
beneficiaries under current law are diverted to private 
accounts, in time benefits under current law will have to be 
reduced.
    To enforce their ``lock box,'' Republicans propose to lower 
by law the debt ceiling on publicly held debt each year by an 
amount equal to the Social Security surplus. During mark-up, 
the Ranking Member presented the Committee with a letter from 
the Secretary of the Treasury explaining how the Republicans' 
proposal would play havoc with the economy during a recession 
and wreak even worse havoc on the Treasury's management of the 
public debt.
    Secretary Rubin points out in his letter how projections of 
the non-Social Security surplus could prove over-optimistic. 
This could set up situations in which the Treasury could not 
legally pay its obligations, including Social Security 
benefits, and might default on repayments of the public debt. 
Even the possibility of default could lead to a lower credit 
rating and higher borrowing costs for the government.
    New limits on publicly held debt could also aggravate 
downturns in the economy. In a recession, Social Security and 
the overall budget tend to pay out more and take in less, and 
these automatic responses help stabilize the economy. A 
predetermined public debt ceiling could force the government to 
tax more and spend less at a time when either step would make 
the economy worse.
    In addition, the new debt ceiling could invite mischief 
from determined minorities who might use the super-majority 
requirement in the Senate to gain leverage on unrelated issues. 
An obstinate faction could hold the government's finances 
hostage until it got its way on some issue dear to it.
    For all these reasons, Secretary Rubin said that he would 
urge the President to veto this idea if it ever passed.
    Having shown that their ``lockbox'' proposal was a non-
starter, the Ranking Member offered an amendment that would 
accomplish the same aim by different means, reserving all of 
the Social Security surpluses solely for Social Security. 
Republicans rejected it unanimously.
    Aside from being unworkable, the Republican's ``lock box'' 
proposal does nothing to extend Social Security's solvency. By 
acknowledging that the money dedicated to Social Security 
should in fact go to Social Security, the Republican ``lock 
box'' does nothing more than ensure that Social Security goes 
broke on schedule. The Ranking Member confirmed this assessment 
with a letter from Harry C. Ballantyne, Chief Actuary of the 
Social Security Administration, presented at mark-up. Because 
the Republicans provide no additional resources to the OASDI 
trust funds, the Chief Actuary stated: ``The proposal would not 
have any significant effect on the long-range solvency of the 
OASDI programs under the intermediate assumptions of the 1998 
Trustees Report. Thus, the estimated actuarial deficit of 2.19 
percent of taxable payroll would not change, and the year of 
the combined trust funds' exhaustion (2032) would not change.'' 
In plain language, the Republicans' proposal for Social 
Security would not extend its solvency one day.

                           Ignoring Medicare

    Not even the Republicans' press materials mention what they 
have in mind for Medicare. Unspecified Medicare ``reforms'' 
could be funded out of the Social Security surpluses that they 
propose to wall off, but there is no indication of what those 
reforms might be and no commitment of resources from anywhere 
in the budget to buttress Medicare.
    Social Security is scheduled to face insolvency in 2032, 
some years from now. But Medicare is projected to run short of 
funds by 2008. Medicare is, therefore, a more pressing problem 
than Social Security, as well as a program of greater 
complexity. Ignoring this, the third largest program in the 
federal budget, is not just baffling; it is irresponsible.

    Discretionary Spending: Deliberately Opaque, Grossly Inadequate

    The Budget Resolution commits virtually all of the on-
budget surpluses to offset the revenues lost from tax cuts, 
leaving nothing for discretionary spending, let alone Medicare. 
The Committee conceals the political implausibility of its 
Budget Resolution by not providing even minimal information 
about the manner in which Republican spending priorities can be 
accomplished within their constraints. Unlike their Senate 
counterparts who published a two-volume, 106-page package of 
tables along with explanatory narrative, House Republicans 
offered us only four pages of summary tables.
    This Budget Resolution is skeletal for a reason: it needs 
to hide the huge cuts required by the path it plots for 
discretionary spending. Republicans boast of spending 
initiatives without ever specifying the severe cuts necessary 
to meet their overall spending totals. These cuts will meet 
with opposition, on both sides of the aisle, simply because 
they represent bad policy.
    Questioning during mark-up exposed this strategy. When 
asked to reconcile the specific spending increases mentioned in 
their press materials with the declining spending totals, 
Republicans refused to admit any specific cuts. Though they 
claim to have spending initiatives for veterans, defense, 
farmers, education, health care, and scientific research, many 
of the initiatives will not stand scrutiny, and none specifies 
the offsetting cuts required to fund their proposal.
    The futility of this approach was aptly described last year 
by Senator Domenici, reacting to the same ploy House 
Republicans took then. Senator Domenici said: ``The notion that 
it's less onerous because it doesn't ask you to consider 
specifics is just not so . . . Where is it going to come from? 
What is going to be cut?''
    Many of the purported spending initiatives are simply 
specious. Let's examine four different functions to illustrate 
the point: Defense (Function 050), Education (Function 500), 
Health (Function 550), and Veterans (Function 700).

                         Function 050: Defense

Republicans claim to increase defense, but the numbers don't add up

    Republicans claim that they boost defense spending, and 
they do increase budget authority for defense by $8.4 billion 
in FY 2000 and by $29.6 billion (between FY 2000-2004) above 
the President's request. The President had already raised his 
request by $63.8 billion over the levels provided in last 
year's budget. Republicans seek to top this increase, saying 
the service chiefs have told us they could use the extra money. 
But while touting their addition to budget authority, they 
avoid all mention of their allowance for outlays. During the 
same five-year period, the Republicans provide only $5.2 
billion in outlay increases to match their $29.6 billion 
increase in budget authority. The authority to incur 
obligations is increased by almost $30 billion, while the power 
to spend money is increased by only one-sixth of that amount. 
Over three fiscal years--FY 2002, 2003, and 2004--there is no 
increase at all in outlays, and over five fiscal years, the 
Republicans' outlay path essentially tracks the President's.
    The total outlay increase over five years in the Republican 
budget doesn't even support the budget authority increase they 
provide in 2000 alone, much less the additional $21.2 billion 
``provided'' for 2001-2004.

Republicans provide less for defense over 10 years than the President

    In the year 2004, the Republicans' allocation for defense 
bottoms out while the President's keeps rising at a rate of 
roughly 3% a year. As a result, the President's budget provides 
$104 billion more in budget authority than the Republicans' 
budget over the 10-year period, 2000-2009. The difference in 
outlays, or actual spending, is even greater. As the chart 
below indicates, the President's budget allocates $205 billion 
more to outlays for defense than do Republicans between 2004 
and 2009. In choosing between defense spending and taxcutting, 
the Republican Budget Resolution opts for tax cuts, even to the point 
of requiring a freeze in defense from 2004-2009, to accommodate the 
growing loss of revenues caused by tax cuts.

Three Explanations of the So-Called ``Increase'' in Defense

    Explanation One: Promises Unfulfilled. The budget authority 
levels for defense are simply not backed up by the necessary 
outlays. The Budget Resolution may be promising increases that 
cannot be fulfilled. It is noteworthy that neither the House 
nor the Senate Republican Budget Resolution accommodates the 
additional costs of S. 4, a bill passed by the Senate to plus 
up the President's pay and retirement package for military 
personnel. The Administration argued that S. 4 was raising 
expectations that could not be met, and in the absence of any 
follow-through in both resolutions, its criticism appears to be 
vindicated.
    Explanation Two: Republicans Plan to ``Bust the Caps'' and 
Spend the Surplus While Pretending They Don't. Using standard 
DoD outlay rates, Republicans are $21 billion short of the 
outlays needed to support the budget authority levels they 
provide. If the Republicans' increase in budget authority were 
enacted, with the help of directed scorekeeping, DoD could 
obligate the budget authority and outlays could be $21 billion 
more over 2000-2004 than the Republican plan pretends. Budget 
surpluses would come in $21 billion lower than their resolution 
predicts, and their budget would ``bust'' the outlay caps set 
by the Balanced Budget Agreement of 1997.
    Explanation Three: The Republican Budget Authority Increase 
Will Come at the Expense of the Troops. The only way to stay 
within the budget authority/outlay ratios in the Republican 
budget is to shift massive amounts of funding from relatively 
fast-spending accounts, like readiness and personnel, and into 
relatively slow-spending accounts, like procurement and 
research and development. This is particularly true since the 
Republican budget provides no increase in outlays above the 
President's budget in 2002-2004. If this happened, then some or 
all of the following would occur:
    (1) The President's pay and retirement package would have 
to be pared back.
    (2) Health care for personnel, their families and retirees, 
would have to be cut.
    (3) Readiness would have to be slashed.
    In short, the only way to use the budget authority and 
outlay increases in the Budget Resolution is to prefer defense 
contractors over military personnel and their families.

                    Function 700: Veterans Benefits

    Republicans also claim that their Budget Resolution 
increases discretionary funding for veterans, and they do 
provide a $900 million increase in budget authority compared 
with the 1999 level of funding, but this is a non-recurring 
addition that is not carried over to the next fiscal year. In 
fact, over five years, the Budget Resolution cuts discretionary 
funding for veterans by $500 million compared with the 1999 
level.

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

    Republicans likewise talk of committing more to education, 
but in Function 500 of their Budget Resolution, they decrease 
discretionary spending for education, training, employment, and 
social services by $1.2 billion below the 1999 level. Over five 
years, the resolution cuts funding by $900 million compared 
with the 1999 level, representing a 6.9 percent decrease in 
purchasing power by 2004.
    The Budget Resolution does raise spending in 2000 for 
elementary and secondary education by $500 million above the 
1999 level and by $15.8 billion over five years. But this 
increase is provided by making deep reductions in all other 
programs, which are cut by $16.7 billion over five years and by 
$36.5 billion over ten years compared with the 1999 level.
    The resolution does not specify which programs are to be 
cut, but the funding levels over ten years require a 12.2 
percent across-the-board cut in programs other than elementary 
and secondary education. This means deep cuts in higher 
education programs such as Pell Grants and the Work Study 
program that help low-income students attend college, Head 
Start, child welfare services, the Smithsonian, and training 
and employment programs.

                          Function 550: Health

    Funding for the National Institutes of Health (NIH) 
accounts for just over fifty percent of all funding in this 
function. Republicans singled out NIH and announced that they 
were allocating substantially more to NIH than the President's 
request. The House resolution does not spell out any 
assumptions for funding NIH, but the Senate resolution includes 
an explicit increase of $600 million for 2000, or 4 percent 
over the 1999 level, and a freeze in funding thereafter.
    Overall, the House Republican Budget Resolution cuts 
funding for discretionary health programs by $600 million in 
2000 below 1999 levels. Over five years, funding for other 
health programs is cut by $9.8 billion below the 1999 level, 
and over 10 years, by $27.2 billion. By 2002, this represents a 
decrease in purchasing power of 18.2 percent; by 2009, the 
decrease in purchasing power is 31.2 percent.
    It is difficult to see how NIH funding can rise appreciably 
when it takes up more than half of Function 550, and Function 
550 is cut each year over the ten-year time frame of the 
Republicans' resolution.

  Expanding Tax Cuts Bite into Discretionary, Make Solvency of Social 
                Security and Medicare Tougher to Achieve

    There is a reason for the foregoing, for the deep 
reductions and gimmicks to disguise them. The Republicans' 
Budget Resolution is totally committed to tax cuts, tax cuts 
that increase to $779 billion over ten years and grow even 
larger over time. The decimation of discretionary spending, the 
procrastination on Social Security, the neglect of Medicare--
all result from one overriding priority: to pass tax cuts large 
enough to rival the Economic Recovery Tax Act of 1981.
    The Budget Resolution proposes tax cuts that start by 
growing with the on-budget or non-Social Security surplus, and 
then exhaust it. After the first five years, the proposed tax 
cuts being to exceed the projected non-Social Security 
surpluses, and as a result, sharp cuts in discretionary 
spending are required. Using the Republicans' own numbers, the 
increasing loss of revenues forces both defense and non-defense 
discretionary spending to drop from the current level of 6.6 
percent of Gross Domestic Product (GDP) to 4.5 percent by 2009. 
This translates to a 19.6 percent cut in all discretionary 
spending after adjusting for inflation and a 29 percent cut in 
non-defense discretionary accounts.
    The most disturbing results of their tax proposal are 
``over the horizon,'' not seen in their tables because they 
fall in the years beyond their 10-year budget. During these 
years, 2010 through 2014, the ``Baby Boom'' generation begins 
to retire, exerting heavy pressure on the finances of Social 
Security and Medicare. During these same years, the Social 
Security surplus and the non-Social Security surplus will peak 
and start to decline, as payroll taxes become insufficient to 
cover benefit payments.
    Republicans have not specified their tax cuts, but the 
revenue losses of virtually all tax cuts tend to increase with 
time. If their tax cuts follow this pattern, the government 
would face three unappealing choices around 2010:
    (1) To cut even deeper into defense and non-defense 
spending.
    (2) To raise taxes.
    (3) To use Social Security and Medicare payroll taxes to 
offset tax revenues lost to tax cuts, as in the 1980s.
    Having worked so long to rid the budget of deficits and to 
put the government on sound fiscal footings, we do not wish to 
follow Republicans down this path. We do not wish to repeat the 
mistakes of the 1980s, which brought us deficits as far as the 
eye could see and a tripling of the national debt. Targeted tax 
cuts are possible today, and more can be added as the surpluses 
projected actually materialize. But now that we are able to 
address the fiscal challenges of Social Security and Medicare, 
we believe that we have a duty to do so that comes first before 
everything else.

                               Conclusion

    In this Budget Resolution, the majority does not take 
seriously the responsibility to govern. They send a resolution 
to the House requiring appropriation bills they know they 
cannot pass due to opposition on both sides of the aisle. They 
ignore Medicare. They fail to propose practical ideas to 
protect Social Security and do nothing to extend its solvency. 
Before the first on-budget surplus is realized, they propose 
tax cuts that will grow larger with time and wipe out the 
projected surpluses. We voted against this Budget Resolution in 
the Budget Committee, and we urge the House of Representatives 
to reject it.


                                           Social Security,
                                                    March 12, 1999.
Hon. Richard A. Gephardt,
House of Representatives, Washington, DC.
    Dear Mr. Gephardt: This letter addresses the potential 
long-range financial effects on the OASDI program of ``locking 
away'' the annual increases in the Social Security Trust Funds, 
as proposed by Republican leaders in the Senate and the House 
on March 10, 1999. The proposal would require that annual 
increases in the OASI and DI Trust Funds would be used solely 
to purchase long-term special issue U.S. government bonds. In 
addition, the proposal would require that the revenue used for 
the purchase of these bonds would in turn be used solely for 
the purpose of reducing Federal debt held by the public. Of 
course, the net change in the Federal debt held by the public 
in any year would also be affected by the size of any on-budget 
deficit or surplus for that year.
    The proposal would not have any significant effect on the 
long-range solvency of the OASDI program under the intermediate 
assumptions of the 1998 Trustees Report. Thus, the estimated 
long-range actuarial deficit of 2.19 percent of taxable payroll 
and the year of the combined trust funds' exhaustion (2032) 
would not change. The first year in which estimated outgo will 
exceed estimated tax income would not be affected and would 
therefore remain at 2013.
    Any plan that reduces the amount of Federal debt held by 
the public may make later redemption by the Trust Funds of 
special issue U.S. government bonds easier.
            Sincerely,
                                       Harry C. Ballantyne,
                                                     Chief Actuary.
                                ------                                

                                Department of the Treasury,
                                    Washington, DC, March 17, 1999.
Hon. Charles Rangel,
House of Representatives, Washington, DC.
    Dear Charlie: Thank you for inquiring about the impact of 
the new debt limits contained in the Social Security Surplus 
Preservation Act. I appreciate the opportunity to respond to 
your question. In brief, I am deeply concerned that these 
limits could preclude the United States from meeting its future 
financial obligations to repay maturing debt and to honor 
payments--including benefit payments--and could also run the 
risk of worsening a future economic downturn.
    It has been this Administration's view that fiscal 
restraint is best exercised through the tools of the budget 
process. Existing enforcement tools such as the pay-go rules 
and the discretionary spending limits in the Budget Enforcement 
Act have been key elements in maintaining fiscal discipline in 
the 1990's. Debt limits should not be used as an additional 
means of imposing restraint. Debt is incurred solely to pay 
expenditures that have previously been authorized by the 
Congress and for the investment of the Federal trust funds. By 
the time the debt limit is reached, the Government is obligated 
to make payments and must enough money to do so.
    If Treasury were prohibited from issuing any new debt to 
honor the Government's obligations, there could be permanent 
damage to our credit standing. The debt obligations of the 
United States are recognized as having the least credit risk of 
any investment in the world. That credit standing is a precious 
asset of the American people. Even the appearance of a risk 
that the United States of America might not meet in obligations 
because of the absence of necessary debt authority would be 
likely to impose significant additional costs on American 
taxpayers. Yet, in November 1995, a debt crisis was 
precipitated when Government borrowing reached the debt limit 
and in January Moody's credit rating service placed Treasury 
securities on review for possible downgrade.
    As you know, there is currently a statutory limit on the 
amount of money that Treasury can borrow in total from both the 
public and from Federal trust funds. The proposed ``lockbox'' 
provision would add a new statutory limit on debt to the 
public.
    The proposed new debt limit runs the risk of precipitating 
additional debt crises in the future. Although the proposal 
adjusts the debt ceiling for discrepancies between the actual 
and projectedSocial Security surpluses, it does not make 
similar corrections for unanticipated developments on the non-Social 
Security side of the budget. While our forecasts have been 
conservative, the current forecast of the non-Social Security budget 
could prove too optimistic because of changes in the economy, 
demographics, or countless other factors. This could cause the publicly 
held debt to exceed the new debt limit.
    Furthermore, even if the debt limit appears sufficient 
because it covers the annual debt level--measured from end-of-
year to end-of-year--it could easily be inadequate for the 
Government to meet its obligations at a given point during the 
year. Under normal circumstances, every business day, Treasury 
makes payments--including Social Security payments on certain 
days. In any given week, Treasury receives revenues, makes 
payments, and refinances maturing debt. Weekly and monthly 
swings in cash flow can easily exceed on-hand cash balances. 
When this occurs, Treasury then borrows from the public to meet 
its obligations. If the amount of publicly held debt were to 
reach the level of the debt limit--or if the debt limit were to 
decline to below the level of publicly held debt--Treasury 
could be precluded from borrowing additional amounts from the 
public. If Treasury could not borrow to raise cash, it is 
possible that it could simply have to stop honoring any 
payments--including Social Security payments.
    In this case, Treasury could be prohibited from issuing any 
new debt to redeem maturing debt. Every Thursday, approximately 
$20-23 billion of weekly Treasury bills mature and, every 
month, an additional $60-85 billion in debt matures. These 
securities must either be paid off in cash or refinanced by 
issuing new debt. Treasury could be put in the position of 
having to default for the first time in our nation's history.
    Congress could defuse the debt limit problems by 
immediately voting to raise the debt ceiling. Under the 
``lockbox'' proposal, however, it would take sixty votes in the 
Senate to do so. As past experience indicates, obtaining a 
super-majority for this purpose is often time-consuming and 
difficult. Moreover, this requirement would greatly enhance the 
power of a determined minority to use the debt limit to impose 
views on unrelated issues.
    Finally, the proposed debt limits could run the risk of 
worsening an economic downturn. If the economy were to slow 
unexpectedly, the budget balance would worsen. Absent a super-
majority vote to raise the debt limit, Congress would need to 
reduce other spending or raise taxes. Either cutting spending 
or raising taxes in a slowing economy could aggravate the 
economic slowdown and substantially raise the risk of a 
significant recession. And even those measures would not 
guarantee that the debt limit would be not be exceeded. A 
deepening recession would add further to revenue losses and 
increases in outlays. The tax increases and spending cuts could 
turn out to be inadequate to satisfy all existing payment 
obligations and keep the debt under the limit, worsening a 
crisis.
    To summarize, these new debt limits could create 
uncertainty about the Federal government's ability to honor its 
future obligations and should not be used as an instrument of 
fiscal policy. While we certainly share the goal of preserving 
Social Security, this legislation does nothing to extend the 
solvency of the Social Security trust funds, while potentially 
threatening the ability to make Social Security payments to 
millions of Americans. I will recommend that the President veto 
the bill if it contains the debt limit provisions. If you have 
any additional questional, please do not hesitate to contact 
me.
                                           Robert E. Rubin,
                                         Secretary of the Treasury.

                                   John M. Spratt, Jr.
                                   Jim McDermott.
                                   Lynn N. Rivers.
                                   Bennie G. Thompson.
                                   David Minge.
                                   Kenneth E. Bentsen.
                                   Jim Davis.
                                   Bob Weygand.
                                   Eva M. Clayton.
                                   David E. Price.
                                   Edward J. Markey.
                                   Jerry Kleczka.
                                   Bob Clement.
                                   Jim Moran.
                                   Darlene Hooley
                                   Rush Holt.
                                   Joseph M. Hoeffel.
                                   Tammy Baldwin.

            ADDITIONAL VIEWS OF HON. KENNETH E. BENTSEN, JR.

    The Fiscal Year 2000 Budget Resolution reported by the 
House Budget Committee lacks clarity and specifics. There is no 
indication of how to pay for a sizeable tax cut and the 
resolution creates a situation where the pay-as-you-go rule 
will be violated. Those facts, coupled with the elimination of 
the ``firewall'' that prevents Congress from using defense 
spending to finance non-defense discretionary spending and vice 
versa, sets the Congress on a course to bust the spending caps 
with virtually no discussion. If we are going to adopt this 
policy, the Committee and Congress should at least have a 
serious debate. Unfortunately, the Majority failed to do so.
    As the Committee knows, this resolution violates the pay-
as-you-go rule by using projected budget surpluses to pay for 
tax cuts. Since the passage of the Budget Enforcement Act of 
1990, this rule has required that tax cuts be offset by 
mandatory spending cuts so as to not increase the deficit or 
reduce the surplus. This rule, along with caps on discretionary 
spending, was extended in 1993 and 1997; together with strong 
economic growth, these rules helped create a virtuous cycle of 
balanced budgets and stronger economic growth. Now, in an era 
of budget surpluses, some Members assume that additional 
revenue in the form of budget surpluses can be used to offset 
decreases in taxes. That is wrong and would violate the 
bipartisan PAYGO rule. Furthermore, it sets a dangerous 
precedent that could result in future deficit spending if 
projected on-budget surpluses fail to materialize.
    In order to extend Social Security's and Medicare's 
solvency and fund current commitments in health research, 
education, and defense, we may need to raise the spending caps. 
But, the Committee should at least engage the public in a 
debate on the merits of doing so, instead of doing it by 
stealth accounting. The Majority's Budget Resolution calls for 
a tax cut of $142.6 billion over five years and $778.6 billion 
over 10 years; this will require significant reductions in non-
defense discretionary spending and discretionary spending so 
that they will lose up to 30 percent of their purchasing power 
by 2009. This is terribly unrealistic and puts us back to 
square one: how can we finance reductions in taxes and 
increases in new spending without violating the pay-as-you-go 
rule and the caps on discretionary spending?
    The firewall between defense and non-defense discretionary 
spending has created a careful political balance between 
investments in national security and economic security. I 
believe that eliminating the firewall coupled with a risky 
fiscal strategy based upon distant economic projections could 
well result in the fiscal impasses of the 1980s.
    Backsliding into an era of skyrocketing budget deficits has 
dire consequences. Currently, the debt held by the public 
stands at $3.7 trillion and 44 percent of GDP. The President's 
budget dedicates surpluses in the unified federal budget to 
retiring publicly held debt and to extending Social Security's 
and Medicare's solvency. Paying down the debt is critical to 
our future economic health. Reducing the publicly held debt 
lowers market interest rates, boosts private investment, and 
promotes long term economic growth. Excessive spending or 
irresponsible tax cuts create an additional cost in the form of 
higher interest payments and more debt.
    I offered an amending in the form of a Sense of the 
Congress that we continue the existing spending caps, pay-as-
you-go rules, and firewall between defense and non-defense 
spending. Unfortunately, the Majority summarily dismissed this 
proposal, proving that the Majority is willing to abandon the 
fiscal policy constraints established in 1990 for a return to 
the supply side theories, which resulted in a huge run up in 
the national debt.
    If we squander the surplus without retiring the national 
debt, our future financial position is precarious. As the baby 
boom retires, we will have to borrow more to pay off bonds as 
they come due, including to Social Security. We will be 
shortchanging the American people. Without maintaining a course 
of fiscal discipline, the Congress' hard work since 1990 will 
be compromised. Federal budget surpluses will be short lived 
and we will return to deficit spending.

                                                Kenneth E. Bentsen.
                            A P P E N D I X

                              ----------                              


                            H. Con. Res. 68

    A concurrent resolution establishing the congressional 
budget for the United States Government for fiscal year 2000 
and setting forth appropriate budgetary levels for each of 
fiscal years 2001 through 2009.
  Resolved by the House of Representatives (the Senate 
concurring),

SECTION 1. CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL YEAR 2000.

  The Congress declares that this is the concurrent resolution 
on the budget for fiscal year 2000 and that the appropriate 
budgetary levels for fiscal years 2001 through 2009 are hereby 
set forth.

SEC. 2. RECOMMENDED LEVELS AND AMOUNTS.

  The following budgetary levels are appropriate for each of 
fiscal years 2000 through 2009:
          (1) Federal revenues.--For purposes of the 
        enforcement of this resolution:
                  (A) The recommended levels of Federal 
                revenues are as follows:
                          Fiscal year 2000: $1,408,500,000,000.
                          Fiscal year 2001: $1,435,300,000,000.
                          Fiscal year 2002: $1,456,300,000,000.
                          Fiscal year 2003: $1,532,600,000,000.
                          Fiscal year 2004: $1,584,100,000,000.
                          Fiscal year 2005: $1,651,000,000,000.
                          Fiscal year 2006: $1,684,400,000,000.
                          Fiscal year 2007: $1,733,200,000,000.
                          Fiscal year 2008: $1,802,800,000,000.
                          Fiscal year 2009: $1,867,500,000,000.
                  (B) The amounts by which the aggregate levels 
                of Federal revenues should be changed are as 
                follows:
                          Fiscal year 2000: $0.
                          Fiscal year 2001: -$9,800,000,000.
                          Fiscal year 2002: -$52,000,000,000.
                          Fiscal year 2003: -$30,700,000,000.
                          Fiscal year 2004: -$50,000,000,000.
                          Fiscal year 2005: -$59,900,000,000.
                          Fiscal year 2006: -$106,300,000,000.
                          Fiscal year 2007: -$138,200,000,000.
                          Fiscal year 2008: -$153,400,000,000.
                          Fiscal year 2009: -$178,200,000,000.
          (2) New budget authority.--For purposes of the 
        enforcement of this resolution, the appropriate levels 
        of total new budget authority are as follows:
                          Fiscal year 2000: $1,426,600,000,000.
                          Fiscal year 2001: $1,456,100,000,000.
                          Fiscal year 2002: $1,487,300,000,000.
                          Fiscal year 2003: $1,558,300,000,000.
                          Fiscal year 2004: $1,611,700,000,000.
                          Fiscal year 2005: $1,665,600,000,000.
                          Fiscal year 2006: $1,697,000,000,000.
                          Fiscal year 2007: $1,752,200,000,000.
                          Fiscal year 2008: $1,813,800,000,000.
                          Fiscal year 2009: $1,874,400,000,000.
          (3) Budget outlays.--For purposes of the enforcement 
        of this resolution, the appropriate levels of total 
        budget outlays are as follows:
                          Fiscal year 2000: $1,408,100,000,000.
                          Fiscal year 2001: $1,435,300,000,000.
                          Fiscal year 2002: $1,455,100,000,000.
                          Fiscal year 2003: $1,532,500,000,000.
                          Fiscal year 2004: $1,583,900,000,000.
                          Fiscal year 2005: $1,638,600,000,000.
                          Fiscal year 2006: $1,666,400,000,000.
                          Fiscal year 2007: $1,715,900,000,000.
                          Fiscal year 2008: $1,781,200,000,000.
                          Fiscal year 2009: $1,841,300,000,000.
          (4) Surpluses.--For purposes of the enforcement of 
        this resolution, the amounts of the surpluses are as 
        follows:
                          Fiscal year 2000: $400,000,000.
                          Fiscal year 2001: $0.
                          Fiscal year 2002: $1,200,000,000.
                          Fiscal year 2003: $100,000,000.
                          Fiscal year 2004: $200,000,000.
                          Fiscal year 2005: $12,400,000,000.
                          Fiscal year 2006: $18,000,000,000.
                          Fiscal year 2007: $17,300,000,000.
                          Fiscal year 2008: $21,600,000,000.
                          Fiscal year 2009: $26,200,000,000.
          (5) Public debt.--The appropriate levels of the 
        public debt are as follows:
                          Fiscal year 2000: $5,627,700,000,000.
                          Fiscal year 2001: $5,707,700,000,000.
                          Fiscal year 2002: $5,791,500,000,000.
                          Fiscal year 2003: $5,875,000,000,000.
                          Fiscal year 2004: $5,954,800,000,000.
                          Fiscal year 2005: $6,019,600,000,000.
                          Fiscal year 2006: $6,075,400,000,000.
                          Fiscal year 2007: $6,128,700,000,000.
                          Fiscal year 2008: $6,168,100,000,000.
                          Fiscal year 2009: $6,198,100,000,000.

SEC. 3. MAJOR FUNCTIONAL CATEGORIES.

  The Congress determines and declares that the appropriate 
levels of new budget authority and budget outlays for fiscal 
years 2000 through 2009 for each major functional category are:
          (1) National Defense (050):
                  Fiscal year 2000:
                          (A) New budget authority, 
                        $288,800,000,000.
                          (B) Outlays, $274,600,000,000.
                  Fiscal year 2001:
                          (A) New budget authority, 
                        $303,600,000,000.
                          (B) Outlays, $285,900,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        $308,200,000,000.
                          (B) Outlays, $291,700,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $318,300,000,000.
                          (B) Outlays, $303,600,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $327,200,000,000.
                          (B) Outlays, $313,500,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $328,400,000,000.
                          (B) Outlays, $316,700,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $329,600,000,000.
                          (B) Outlays, $315,100,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $330,900,000,000.
                          (B) Outlays, $313,700,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $332,200,000,000.
                          (B) Outlays, $317,100,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $333,500,000,000.
                          (B) Outlays, $318,000,000,000.
        (2) International Affairs (150):
                  Fiscal year 2000:
                          (A) New budget authority, 
                        $11,200,000,000.
                          (B) Outlays, $14,500,000,000.
                  Fiscal year 2001:
                          (A) New budget authority, 
                        $10,600,000,000.
                          (B) Outlays, $15,100,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        $9,800,000,000.
                          (B) Outlays, $14,400,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $11,600,000,000.
                          (B) Outlays, $13,600,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $13,500,000,000.
                          (B) Outlays, $13,300,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $13,700,000,000.
                          (B) Outlays, $12,900,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $13,900,000,000.
                          (B) Outlays, $12,600,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $13,900,000,000.
                          (B) Outlays, $12,400,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $14,000,000,000.
                          (B) Outlays, $12,200,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $14,000,000,000
                          (B) Outlays, $12,100,000,000.
        (3) General Science, Space, and Technology (250):
                  Fiscal year 2000:
                          (A) New budget authority, 
                        $18,000,000,000.
                          (B) Outlays, $18,200,000,000.
                  Fiscal year 2001:
                          (A) New budget authority, 
                        $17,900,000,000.
                          (B) Outlays, $17,900,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        $17,900,000,000.
                          (B) Outlays, $17,900,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $17,900,000,000.
                          (B) Outlays, $17,800,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $17,900,000,000.
                          (B) Outlays, $17,800,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $17,900,000,000.
                          (B) Outlays, $17,800,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $17,900,000,000.
                          (B) Outlays, $17,800,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $17,900,000,000.
                          (B) Outlays, $17,800,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $17,900,000,000.
                          (B) Outlays, $17,800,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $17,900,000,000.
                          (B) Outlays, $17,800,000,000.
        (4) Energy (270):
                  Fiscal year 2000:
                          (A) New budget authority, $0.
                          (B) Outlays, -$700,000,000.
                  Fiscal year 2001:
                          (A) New budget authority, 
                        -$1,400,000,000.
                          (B) Outlays, -$3,100,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        -$200,000,000.
                          (B) Outlays, -$1,100,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        -$100,000,000.
                          (B) Outlays, -$1,200,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        -$300,000,000.
                          (B) Outlays, -$1,400,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        -$400,000,000.
                          (B) Outlays, -$1,500,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        -$500,000,000.
                          (B) Outlays, -$1,500,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        -$500,000,000.
                          (B) Outlays, -$1,400,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        -$200,000,000.
                          (B) Outlays, -$1,100,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        -$100,000,000.
                          (B) Outlays, -$1,100,000,000.
          (5) Natural Resources and Environment (300):
                  Fiscal year 2000:
                          (A) New budget authority, 
                        $22,800,000,000.
                          (B) Outlays, $22,600,000,000.
                  Fiscal year 2001:
                          (A) New budget authority, 
                        $22,500,000,000.
                          (B) Outlays, $22,000,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        $22,400,000,000.
                          (B) Outlays, $21,400,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $22,500,000,000.
                          (B) Outlays, $22,600,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $23,500,000,000.
                          (B) Outlays, $23,500,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $23,500,000,000.
                          (B) Outlays, $23,400,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $23,600,000,000.
                          (B) Outlays, $23,500,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $23,700,000,000.
                          (B) Outlays, $23,400,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $23,700,000,000.
                          (B) Outlays, $23,400,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $24,000,000,000.
                          (B) Outlays, $23,700,000,000.
        (6) Agriculture (350):
                  Fiscal year 2000:
                          (A) New budget authority, 
                        $14,300,000,000.
                          (B) Outlays, $13,200,000,000.
                  Fiscal year 2001:
                          (A) New budget authority, 
                        $13,500,000,000.
                          (B) Outlays, $11,300,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        $11,800,000,000.
                          (B) Outlays, $10,000,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $12,000,000,000.
                          (B) Outlays, $10,300,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $12,100,000,000.
                          (B) Outlays, $10,500,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $10,600,000,000.
                          (B) Outlays, $9,900,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $10,600,000,000.
                          (B) Outlays, $9,100,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $10,700,000,000.
                          (B) Outlays, $9,100,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $10,800,000,000.
                          (B) Outlays, $9,200,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $10,900,000,000.
                          (B) Outlays, $9,200,000,000.
        (7) Commerce and Housing Credit (370):
                  Fiscal year 2000:
                          (A) New budget authority, 
                        $9,900,000,000.
                          (B) Outlays, $4,500,000,000.
                  Fiscal year 2001:
                          (A) New budget authority, 
                        $10,600,000,000.
                          (B) Outlays, $5,800,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        $14,500,000,000.
                          (B) Outlays, $10,200,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $14,500,000,000.
                          (B) Outlays, $10,900,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $13,900,000,000.
                          (B) Outlays, $10,400,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $12,700,000,000.
                          (B) Outlays, $9,400,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $12,600,000,000.
                          (B) Outlays, $9,100,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $12,700,000,000.
                          (B) Outlays, $8,900,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $12,600,000,000.
                          (B) Outlays, $8,500,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $13,400,000,000.
                          (B) Outlays, $8,800,000,000.
          (8) Transportation (400):
                  Fiscal year 2000:
                          (A) New budget authority, 
                        $51,800,000,000.
                          (B) Outlays, $45,800,000,000.
                  Fiscal year 2001:
                          (A) New budget authority, 
                        $51,000,000,000.
                          (B) Outlays, $47,700,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        $50,800,000,000.
                          (B) Outlays, $47,300,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $52,300,000,000.
                          (B) Outlays, $46,800,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $52,300,000,000.
                          (B) Outlays, $46,300,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $52,300,000,000.
                          (B) Outlays, $46,100,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $52,300,000,000.
                          (B) Outlays, $46,000,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $52,400,000,000.
                          (B) Outlays, $46,000,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $52,400,000,000.
                          (B) Outlays, $46,100,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $52,400,000,000.
                          (B) Outlays, $46,100,000,000.
          (9) Community and Regional Development (450):
                  Fiscal year 2000:
                          (A) New budget authority, 
                        $7,400,000,000.
                          (B) Outlays, $10,700,000,000.
                  Fiscal year 2001:
                          (A) New budget authority, 
                        $5,300,000,000.
                          (B) Outlays, $9,100,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        $5,300,000,000.
                          (B) Outlays, $7,000,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $5,700,000,000.
                          (B) Outlays, $6,100,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $5,600,000,000.
                          (B) Outlays, $5,500,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $5,600,000,000.
                          (B) Outlays, $4,800,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $5,600,000,000.
                          (B) Outlays, $4,500,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $5,600,000,000.
                          (B) Outlays, $4,400,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $5,600,000,000.
                          (B) Outlays, $4,300,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $5,600,000,000.
                          (B) Outlays, $4,300,000,000.
          (10) Elementary and Secondary Education, and 
        Vocational Education (501):
                  Fiscal year 2000:
                          (A) New budget authority, 
                        $22,000,000,000.
                          (B) Outlays, $20,100,000,000.
                  Fiscal year 2001:
                          (A) New budget authority, 
                        $24,100,000,000.
                          (B) Outlays, $21,900,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        $24,500,000,000.
                          (B) Outlays, $22,700,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $25,900,000,000.
                          (B) Outlays, $24,500,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $26,900,000,000.
                          (B) Outlays, $25,600,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $26,900,000,000.
                          (B) Outlays, $26,600,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $26,900,000,000.
                          (B) Outlays, $26,800,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $26,900,000,000.
                          (B) Outlays, $26,900,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $26,900,000,000.
                          (B) Outlays, $26,900,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $26,900,000,000.
                          (B) Outlays, $26,900,000,000.
          (11) Higher Education, Training, Employment, and 
        Social Services (500, except for 501):
                  Fiscal year 2000:
                          (A) New budget authority, 
                        $43,300,000,000.
                          (B) Outlays, $43,500,000,000.
                  Fiscal year 2001:
                          (A) New budget authority, 
                        $41,400,000,000.
                          (B) Outlays, $41,900,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        $41,200,000,000.
                          (B) Outlays, $40,900,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $42,700,000,000.
                          (B) Outlays, $41,900,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $43,000,000,000.
                          (B) Outlays, $42,300,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $43,900,000,000.
                          (B) Outlays, $42,900,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $44,600,000,000.
                          (B) Outlays, $43,700,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $45,500,000,000.
                          (B) Outlays, $44,500,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $46,500,000,000.
                          (B) Outlays, $45,500,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $46,500,000,000.
                          (B) Outlays, $45,500,000,000.
          (12) Health (550):
                  Fiscal year 2000:
                          (A) New budget authority, 
                        $156,200,000,000.
                          (B) Outlays, $153,000,000,000.
                  Fiscal year 2001:
                          (A) New budget authority, 
                        $164,100,000,000.
                          (B) Outlays, $162,400,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        $173,300,000,000.
                          (B) Outlays, $173,800,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $184,700,000,000.
                          (B) Outlays, $185,300,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $197,900,000,000.
                          (B) Outlays, $198,500,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $212,800,000,000.
                          (B) Outlays, $212,600,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $228,400,000,000.
                          (B) Outlays, $228,300,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $246,300,000,000.
                          (B) Outlays, $245,500,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $265,200,000,000.
                          (B) Outlays, $264,400,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $285,500,000,000.
                          (B) Outlays, $284,900,000,000.
          (13) Medicare (570):
                  Fiscal year 2000:
                          (A) New budget authority, 
                        $208,700,000,000.
                          (B) Outlays, $208,700,000,000.
                  Fiscal year 2001:
                          (A) New budget authority, 
                        $222,100,000,000.
                          (B) Outlays, $222,300,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        $230,600,000,000.
                          (B) Outlays, $230,200,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $250,700,000,000.
                          (B) Outlays, $250,900,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $268,600,000,000.
                          (B) Outlays, $268,700,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $295,600,000,000.
                          (B) Outlays, $295,200,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $306,800,000,000.
                          (B) Outlays, $306,900,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $337,600,000,000.
                          (B) Outlays, $337,800,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $365,600,000,000.
                          (B) Outlays, $365,200,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $394,100,000,000.
                          (B) Outlays, $394,200,000,000.
          (14) Income Security (600):
                  Fiscal year 2000:
                          (A) New budget authority, 
                        $244,400,000,000.
                          (B) Outlays, $248,100,000,000.
                  Fiscal year 2001:
                          (A) New budget authority, 
                        $250,500,000,000.
                          (B) Outlays, $257,400,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        $262,700,000,000.
                          (B) Outlays, $267,000,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $277,000,000,000.
                          (B) Outlays, $276,800,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $286,200,000,000.
                          (B) Outlays, $286,000,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $298,500,000,000.
                          (B) Outlays, $298,700,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $304,800,000,000.
                          (B) Outlays, $305,200,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $310,600,000,000.
                          (B) Outlays, $311,500,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $323,900,000,000.
                          (B) Outlays, $325,400,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $334,200,000,000.
                          (B) Outlays, $335,700,000,000.
          (15) Social Security (650):
                  Fiscal year 2000:
                          (A) New budget authority, 
                        $14,200,000,000.
                          (B) Outlays, $14,300,000,000.
                  Fiscal year 2001:
                          (A) New budget authority, 
                        $13,800,000,000.
                          (B) Outlays, $13,800,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        $15,600,000,000.
                          (B) Outlays, $15,600,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $16,300,000,000.
                          (B) Outlays, $16,300,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $17,100,000,000.
                          (B) Outlays, $17,100,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $18,000,000,000.
                          (B) Outlays, $17,900,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $18,900,000,000.
                          (B) Outlays, $18,900,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $19,900,000,000.
                          (B) Outlays, $19,900,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $21,000,000,000.
                          (B) Outlays, $21,000,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $22,200,000,000.
                          (B) Outlays, $22,200,000,000.
          (16) Veterans Benefits and Services (700):
                  Fiscal year 2000:
                          (A) New budget authority, 
                        $44,700,000,000.
                          (B) Outlays, $45,100,000,000.
                  Fiscal year 2001:
                          (A) New budget authority, 
                        $44,300,000,000.
                          (B) Outlays, $45,000,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        $44,700,000,000.
                          (B) Outlays, $45,100,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $45,900,000,000.
                          (B) Outlays, $46,400,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $46,200,000,000.
                          (B) Outlays, $46,700,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $48,800,000,000.
                          (B) Outlays, $49,300,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $47,300,000,000.
                          (B) Outlays, $47,800,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $47,800,000,000.
                          (B) Outlays, $46,200,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $48,500,000,000.
                          (B) Outlays, $49,000,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $49,100,000,000.
                          (B) Outlays, $49,700,000,000.
          (17) Administration of Justice (750):
                  Fiscal year 2000:
                          (A) New budget authority, 
                        $23,400,000,000.
                          (B) Outlays, $25,300,000,000.
                  Fiscal year 2001:
                          (A) New budget authority, 
                        $24,700,000,000.
                          (B) Outlays, $25,100,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        $24,700,000,000.
                          (B) Outlays, $24,900,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $24,600,000,000.
                          (B) Outlays, $24,400,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $26,200,000,000.
                          (B) Outlays, $26,100,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $26,300,000,000.
                          (B) Outlays, $26,200,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $26,400,000,000.
                          (B) Outlays, $26,200,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $26,400,000,000.
                          (B) Outlays, $26,300,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $26,500,000,000.
                          (B) Outlays, $26,300,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $26,500,000,000.
                          (B) Outlays, $26,400,000,000.
          (18) General Government (800):
                  Fiscal year 2000:
                          (A) New budget authority, 
                        $12,300,000,000.
                          (B) Outlays, $13,500,000,000.
                  Fiscal year 2001:
                          (A) New budget authority, 
                        $11,900,000,000.
                          (B) Outlays, $12,600,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        $12,100,000,000.
                          (B) Outlays, $12,300,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $12,100,000,000.
                          (B) Outlays, $12,200,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $12,100,000,000.
                          (B) Outlays, $12,200,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $12,100,000,000.
                          (B) Outlays, $11,900,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $12,100,000,000.
                          (B) Outlays, $11,800,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $12,200,000,000.
                          (B) Outlays, $11,900,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $12,200,000,000.
                          (B) Outlays, $12,100,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $12,200,000,000.
                          (B) Outlays, $11,900,000,000.
          (19) Net Interest (900):
                  Fiscal year 2000:
                          (A) New budget authority, 
                        $275,500,000,000.
                          (B) Outlays, $275,500,000,000.
                  Fiscal year 2001:
                          (A) New budget authority, 
                        $271,000,000,000.
                          (B) Outlays, $271,000,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        $267,400,000,000.
                          (B) Outlays, $267,400,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $265,100,000,000.
                          (B) Outlays, $265,100,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $263,400,000,000.
                          (B) Outlays, $263,400,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $261,000,000,000.
                          (B) Outlays, $261,000,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $258,600,000,000.
                          (B) Outlays, $258,600,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $257,000,000,000.
                          (B) Outlays, $257,000,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $254,700,000,000.
                          (B) Outlays, $254,700,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $252,700,000,000.
                          (B) Outlays, $252,700,000,000.
          (20) Allowances (920):
                  Fiscal year 2000:
                          (A) New budget authority, 
                        -$8,000,000,000.
                          (B) Outlays, -$8,100,000,000.
                  Fiscal year 2001:
                          (A) New budget authority, 
                        -$8,500,000,000.
                          (B) Outlays, -$12,900,000,000.
                Fiscal year 2002:
                          (A) New budget authority, 
                        -$6,400,000,000.
                          (B) Outlays, -$20,000,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        -$4,400,000,000.
                          (B) Outlays, -$4,800,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        -$4,500,000,000.
                          (B) Outlays, -$5,000,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        -$4,500,000,000.
                          (B) Outlays, -$5,100,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        -$4,600,000,000.
                          (B) Outlays, -$5,200,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        -$5,200,000,000.
                          (B) Outlays, -$5,800,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        -$5,300,000,000.
                          (B) Outlays, -$5,900,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        -$5,300,000,000.
                          (B) Outlays, -$5,900,000,000.
          (21) Undistributed Offsetting Receipts (950):
                  Fiscal year 2000:
                          (A) New budget authority, 
                        -$34,300,000,000.
                          (B) Outlays, -$34,300,000,000.
                  Fiscal year 2001:
                          (A) New budget authority, 
                        -$36,900,000,000.
                          (B) Outlays, -$36,900,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        -$43,600,000,000.
                          (B) Outlays, -$43,600,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        -$37,000,000,000.
                          (B) Outlays, -$37,000,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        -$37,100,000,000.
                          (B) Outlays, -$37,100,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        -$38,100,000,000.
                          (B) Outlays, -$38,100,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        -$38,800,000,000.
                          (B) Outlays, -$38,800,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        -$40,100,000,000.
                          (B) Outlays, -$40,100,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        -$40,900,000,000.
                          (B) Outlays, -$40,900,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        -$41,800,000,000.
                          (B) Outlays, -$41,800,000,000.

SEC. 4. RECONCILIATION.

  Not later than September 30, 1999, the House Committee on 
Ways and Means shall report to the House a reconciliation bill 
that consists of changes in laws within its jurisdiction such 
that the total level of revenues is not less than: 
$1,408,500,000,000 in revenues for fiscal year 2000, 
$7,416,800,000,000 in revenues for fiscal years 2000 through 
2004, and $16,155,700,000,000 in revenues for fiscal years 2000 
through 2009.

SEC. 5. SAFE DEPOSIT BOX FOR SOCIAL SECURITY SURPLUSES.

  (a) Findings.--Congress finds that--
          (1) under the Budget Enforcement Act of 1990, the 
        social security trust funds are off-budget forpurposes 
of the President's budget submission and the concurrent resolution on 
the budget;
          (2) the social security trust funds have been running 
        surpluses for 17 years;
          (3) these surpluses have been used to implicitly 
        finance the general operations of the Federal 
        government;
          (4) in fiscal year 2000, the social security surplus 
        will exceed $137 billion;
          (5) for the first time, a concurrent resolution on 
        the budget balances the Federal budget without counting 
        social security surpluses; and
          (6) the only way to ensure that social security 
        surpluses are not diverted for other purposes is to 
        balance the budget exclusive of such surpluses.
  (b) Point of Order.--(1) It shall not be in order in the 
House of Representatives or the Senate to consider any 
concurrent resolution on the budget, or any amendment thereto 
or conference report thereon, that sets forth a deficit for any 
fiscal year. For purposes of this subsection, a deficit shall 
be the level (if any) set forth in the most recently agreed to 
concurrent resolution on the budget for that fiscal year 
pursuant to section 301(a)(3) of the Congressional Budget Act 
of 1974. In setting forth the deficit level pursuant to such 
section, that level shall not include any adjustments in 
aggregates that would be made pursuant to any reserve fund that 
provides for adjustments in allocations and aggregates for 
legislation that enhances retirement security or extends the 
solvency of the medicare trust funds or makes such changes in 
the medicare payment or benefit structure as are necessary.
  (2) Paragraph (1) may be waived in the Senate only by the 
affirmative vote of three-fifths of the Members voting.
  (c) Sense of Congress.--It is the sense of Congress that--
          (1) legislation should be considered to augment 
        subsection (b) by establishing a statutory limit on 
        debt held by the public and reducing such limit by the 
        amounts of the social security surpluses; and
          (2) beginning with fiscal year 2000, legislation 
        should be enacted to require any official statement 
        issued by the Office of Management and Budget, the 
        Congressional Budget Office, or any other agency or 
        instrumentality of the Government of surplus or deficit 
        totals of the budget of the Government as submitted by 
        the President or of the surplus or deficit totals of 
        the congressional budget, and any description of, or 
        reference to, such totals in any official publication 
        or material issued by either of such offices or any 
        other such agency or instrumentality, should exclude 
        the outlays and receipts of the old-age, survivors, and 
        disability insurance program under title II of the 
        Social Security Act (including the Federal Old-Age and 
        Survivors Insurance Trust Fund and the Federal 
        Disability Insurance Trust Fund) and the related 
        provisions of the Internal Revenue Code of 1986.

SEC. 6. RESERVE FUND FOR RETIREMENT SECURITY AND, AS NEEDED, MEDICARE.

  (a) Retirement Security.--Whenever the Committee on Ways and 
Means of the House reports a bill, or an amendment thereto is 
offered, or a conference report thereon is submitted that 
enhances retirement security, the chairman of the Committee on 
the Budget may--
          (1) increase the appropriate allocations for each of 
        fiscal years 2000 through 2004 and aggregates for each 
        of fiscal years 2000 through 2009 of new budget 
        authority and outlays by the amount of new budget 
        authority provided by such measure (and outlays flowing 
        therefrom) for such fiscal year for that purpose; and
          (2) reduce the revenue aggregates for each of fiscal 
        years 2000 through 2009 by the amount ofthe revenue 
loss resulting from that measure for such fiscal year for that purpose.
  (b) Medicare Program.--Whenever the Committee on Ways and 
Means or the Committee on Commerce of the House reports a bill, 
or an amendment thereto is offered, or a conference report 
thereon is submitted that extends the solvency or reforms the 
benefit or payment structure of the medicare program in 
response to the National Bipartisan Commission on the Future of 
Medicare, the chairman of the Committee on the Budget may 
increase the appropriate allocations and aggregates of new 
budget authority and outlays by the amounts provided in that 
bill for that purpose.
  (c) Limitation.--(1) The chairman of the Committee on the 
Budget may only make adjustments under subsection (a) or (b) if 
the net outlay increase plus revenue reduction resulting from 
any measure referred to in those subsections (including any 
prior adjustments made for any other such measure) for fiscal 
year 2000, the period of fiscal years 2000 through 2004, or the 
period of fiscal years 2000 through 2009 is not greater than an 
amount equal to the projected social security surplus for such 
period, as set forth in the joint explanatory statement of 
managers accompanying this concurrent resolution or, if 
published, the midsession review for fiscal year 2000 ofthe 
Director of the Congressional Budget Office. For purposes of the 
preceding sentence, revenue reductions shall be treated as a positive 
number.
  (2) In the midsession review for fiscal year 2000, the 
Director of the Congressional Budget Office shall make an up-
to-date estimate of the projected surpluses in the social 
security trust funds for fiscal year 2000, for the period of 
fiscal years 2000 through 2004, and for the period of fiscal 
years 2000 through 2009.
  (3) As used in this subsection, the term ``social security 
trust funds'' means the Federal Old-Age and Survivors Insurance 
Trust Fund and the Federal Disability Insurance Trust Fund.

SEC. 7. RESERVE FUND FOR PROGRAMS AUTHORIZED UNDER THE INDIVIDUALS WITH 
                    DISABILITIES EDUCATION ACT.

  (a) In General.--In the House, when the Committee on 
Appropriations reports a bill or joint resolution, or an 
amendment thereto is offered, or a conference report thereon is 
submitted that provides new budget authority for fiscal year 
2000, 2001, 2002, 2003, or 2004 for programs authorized under 
the Individuals with Disabilities Education Act (IDEA), the 
chairman of the Committee on the Budget may increase the 
appropriate allocations and aggregates of new budget authority 
and outlays by an amount not to exceed the amount of new budget 
authority provided by that measure (and outlays flowing 
therefrom) for that purpose up to the maximum amount consistent 
with section 611(a) of the Individuals with Disabilities 
Education Act (20 U.S.C. 1411(a)(2)).
  (b) Adjustments.--The adjustments in outlays (and the 
corresponding amount of new budget authority) made under 
subsection (a) for any fiscal year may not exceed the amount by 
which an up-to-date projection of the on-budget surplus made by 
the Director of the Congressional Budget Office for that fiscal 
year exceeds the on-budget surplus for that fiscal year set 
forth in section 2(4) of this resolution.
  (c) CBO Projections.--Upon the request of the chairman of the 
Committee on the Budget of the House, the Director of the 
Congressional Budget Office shall make an up-to-date estimate 
of the projected on-budget surplus for the applicable fiscal 
year.

SEC. 8. APPLICATION AND EFFECT OF CHANGES IN ALLOCATIONS AND 
                    AGGREGATES.

  (a) Application.--Any adjustments of allocations and 
aggregates made pursuant to this resolution for any measure 
shall--
          (1) apply while that measure is under consideration;
          (2) take effect upon the enactment of that measure; 
        and
          (3) be published in the Congressional Record as soon 
        as practicable.
  (b) Effect of Changed Allocations and Aggregates.--Revised 
allocations and aggregates resulting from these adjustments 
shall be considered for the purposes of the Congressional 
Budget Act of 1974 as allocations and aggregates contained in 
this resolution.

SEC. 9. UPDATED CBO PROJECTIONS.

  Each calendar quarter the Director of the Congressional 
Budget Office shall make an up-to-date estimate of receipts, 
outlays and surplus (on-budget and off-budget) for the current 
fiscal year.

SEC. 10. SENSE OF CONGRESS ON THE COMMISSION ON INTERNATIONAL RELIGIOUS 
                    FREEDOM.

  (a) Findings.--Congress finds that--
          (1) persecution of individuals on the sole ground of 
        their religious beliefs and practices occurs in 
        countries around the world and affects millions of 
        lives;
          (2) such persecution violates international norms of 
        human rights, including those established in the 
        Universal Declaration of Human Rights, the 
        International Covenant on Civil and Political Rights, 
        the Helsinki Accords, and the Declaration on the 
        Elimination of all Forms of Intolerance and 
        Discrimination Based on Religion or Belief;
          (3) such persecution is abhorrent to all Americans, 
        and our very Nation was founded on the principle of the 
        freedom to worship according to the dictates of our 
        conscience; and
          (4) in 1998 Congress unanimously passed, and 
        President Clinton signed into law, the International 
        Religious Freedom Act of 1998, which established the 
        United States Commission on International Religious 
        Freedom to monitor facts and circumstances of 
        violations of religious freedom and authorized 
        $3,000,000 to carry out the functions of the Commission 
        for each of fiscal years 1999 and 2000.
  (b) Sense of Congress.--It is the sense of Congress that--
          (1) this resolution assumes that $3,000,000 will be 
        appropriated within function 150 for fiscal year 2000 
        for the United States Commission on International 
        Religious Freedom to carry out its duties; and
          (2) the House Committee on Appropriations is strongly 
        urged to appropriate such amount for the Commission.

SEC. 11. SENSE OF THE HOUSE ON PROVIDING ADDITIONAL DOLLARS TO THE 
                    CLASSROOM.

  (a) Findings.--The House finds that--
          (1) strengthening America's public schools while 
        respecting State and local control is critically 
        important to the future of our children and our Nation;
          (2) education is a local responsibility, a State 
        priority, and a national concern;
          (3) working with the Nation's governors, parents, 
        teachers, and principals must take place in order to 
        strengthen public schools and foster educational 
        excellence;
          (4) the consolidation of various Federal education 
        programs will benefit our Nation's children, parents, 
        and teachers by sending more dollars directly to the 
        classroom; and
          (5) our Nation's children deserve an educational 
        system that will provide opportunities to excel.
  (b) Sense of the House.--It is the sense of the House that--
          (1) the House should enact legislation that would 
        consolidate thirty-one Federal K-12 education programs; 
        and
          (2) the Department of Education, the States, and 
        local educational agencies should work together to 
        ensure that not less than 95 percent of all funds 
        appropriated for the purpose of carrying out elementary 
        and secondary education programs administered by the 
        Department of Education is spent for our children in 
        their classrooms.

SEC. 12. SENSE OF CONGRESS ON ASSET-BUILDING FOR THE WORKING POOR.

  (a) Findings.--Congress finds that--
          (1) 33 percent of all American households have no or 
        negative financial assets and 60 percent of African-
        American households have no or negative financial 
        assets;
          (2) 46.9 percent of all children in America live in 
        households with no financial assets, including 40 
        percent of caucasian children and 75 percent of 
        African-American children;
          (3) in order to provide low-income families with more 
        tools for empowerment, incentives which encourage 
        asset-building should be established;
          (4) across the Nation numerous small public, private, 
        and public-private asset-building initiatives 
        (including individual development account programs) are 
        demonstrating success at empowering low-income workers;
          (5) the Government currently provides middle and 
        upper income Americans with hundreds of billions of 
        dollars in tax incentives for building assets; and
          (6) the Government should utilize tax laws or other 
        measures to provide low-income Americans with 
        incentives to work and build assets in order to escape 
        poverty permanently.
  (b) Sense of Congress.--It is the sense of Congress that any 
changes in tax law should include provisions which encourage 
low-income workers and their families to save for buying their 
first home, starting a business, obtaining an education, or 
taking other measures to prepare for the future.

SEC. 13. SENSE OF CONGRESS ON ACCESS TO HEALTH INSURANCE AND PRESERVING 
                    HOME HEALTH SERVICES FOR ALL MEDICARE 
                    BENEFICIARIES.

  (a) Access to Health Insurance.--
          (1) Findings.--Congress finds that--
                  (A) 43.4 million Americans are currently 
                without health insurance, and that this number 
                is expected to rise to nearly 60 million people 
                in the next 10 years;
                  (B) the cost of health insurance continues to 
                rise, a key factor in increasing the number of 
                uninsured; and
                  (C) there is a consensus that working 
                Americans and their families and children will 
                suffer from reduced access to health insurance.
          (2) Sense of Congress on Improving Access to Health 
        Care Insurance.--It is the sense of Congress that 
        access to affordable health care coverage for all 
        Americans is a priority of the 106th Congress.
  (b) Preserving Home Health Service For All Medicare 
Beneficiaries.--
          (1) Findings.--Congress finds that--
                  (A) the Balanced Budget Act of 1997 reformed 
                medicare home health care spending by 
                instructing the Health Care Financing 
                Administration to implement a prospective 
                payment system and instituted an interim 
                payment system to achieve savings;
                  (B) the Omnibus Consolidated and Emergency 
                Supplemental Appropriations Act, 1999, reformed 
                the interim payment system to increase 
                reimbursements to low-cost providers, added 
                $900 million in funding, and delayed the 
                automatic 15 percent payment reduction for one 
                year, to October 1, 2000; and
                  (C) patients whose care is more extensive and 
                expensive than the typical medicare patient do 
                not receive supplemental payments in the 
                interim payment system but will receive special 
                protection in the home health care prospective 
                payment system.
          (2) Sense of congress on access to home health 
        care.--It is the sense of Congress that--
                  (A) Congress recognizes the importance of 
                home health care for seniors and disabled 
                citizens;
                  (B) Congress and the Administration should 
                work together to maintain quality care for 
                patients whose care is more extensive and 
                expensive than the typical medicare patient, 
                including the sickest and frailest medicare 
                beneficiaries, while home health care agencies 
                operate in the interim payment system; and
                  (C) Congress and the Administration should 
                work together to avoid the implementation of 
                the 15 percent reduction in the interim payment 
                system and ensure timely implementation of the 
                prospective payment system.

SEC. 14. SENSE OF THE HOUSE ON MEDICARE PAYMENT.

  (a) Findings.--The House finds that--
          (1) a goal of the Balanced Budget Act of 1997 was to 
        expand options for medicare beneficiaries under the new 
        Medicare+Choice program;
          (2) Medicare+Choice was intended to make these 
        choices available to all medicare beneficiaries; and 
        unfortunately, during the first two years of the 
        Medicare+Choice program the blended payment was not 
        implemented, stifling health care options and 
        continuing regional disparity among many counties 
        across the United States; and
          (3) the Balanced Budget Act of 1997 also established 
        the National Bipartisan Commission on the Future of 
        Medicare to develop legislative recommendations to 
        address the long-term funding challenges facing 
        medicare.
  (b) Sense of the House.--It is the sense of the House that 
this resolution assumes that funding of the Medicare+Choice 
program is a priority for the House Committee on the Budget 
before financing new programs and benefits that may potentially 
add to the imbalance of payments and benefits in Fee-for-
Service Medicare and Medicare+Choice.

SEC. 15. SENSE OF THE HOUSE ON ASSESSMENT OF WELFARE-TO-WORK PROGRAMS.

  (a) In General.--It is the sense of the House that, 
recognizing the need to maximize the benefit of the Welfare-to-
Work Program, the Secretary of Labor should prepare a report on 
Welfare-to-Work Programs pursuant to section 403(a)(5) of the 
Social Security Act. This report should include information on 
the following--
          (1) the extent to which the funds available under 
        such section have been used (including the number of 
        States that have not used any of such funds), the types 
        of programs that have received such funds, the number 
        of and characteristics of the recipients of assistance 
        under such programs, the goals of such programs, the 
        duration of such programs, the costs of such programs, 
        any evidence of the effects of such programs on such 
        recipients, and accounting of the total amount expended 
        by the States from such funds, and the rate at which 
        the Secretary expects such funds to be expended for 
        each of the fiscal years 2000, 2001, and 2002;
          (2) with regard to the unused funds allocated for 
        Welfare-to-Work for each of fiscal years 1998 and 1999, 
        identify areas of the Nation that have unmet needs for 
        Welfare-to-Work initiatives; and
          (3) identify possible Congressional action that may 
        be taken to reprogram Welfare-to-Work funds from States 
        that have not utilized previously allocated funds to 
        places of unmet need, including those States that have 
        rejected or otherwise not utilized prior funding.
  (b) Report.--It is the sense of the House that, not later 
than October 1, 1999, the Secretary of Labor should submit to 
the Committee on the Budget and the Committee on Ways and Means 
of the House and the Committee on Finance of the Senate, in 
writing, the report described in subsection (a).

SEC. 16. SENSE OF CONGRESS ON PROVIDING HONOR GUARD SERVICES FOR 
                    VETERANS' FUNERALS.

  It is the sense of Congress that all relevant congressional 
committees should make every effort to provide sufficient 
resources so that an Honor Guard, if requested, is available 
for veterans' funerals.


                                
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