[House Report 107-200]
[From the U.S. Government Publishing Office]




107th Congress                                            Rept. 107-200
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     Part 2

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



 
            BUDGET RESPONSIBILITY AND EFFICIENCY ACT OF 2001

                                _______
                                

 November 14, 2001.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

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

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 981]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Rules, to whom was referred the bill (H.R. 
981) to provide a biennial budget for the United States 
Government, having considered the same, report favorably 
thereon with amendments and recommend that the bill as amended 
do pass.
  The amendments (stated in terms of the page and line numbers 
of the introduced bill) are as follows:
  Page 6, line 13, strike ``(as amended by section 3)''.
  Page 6, line 16, strike ``(13)'' and insert ``(11)''.
  Page 10, line 21, insert ``after `May 15' '' before the 
period.
  Page 25, line 3, strike ``(as amended by section 6(a) is 
further'' and insert ``is''.
  Page 25, line 6, strike ``318.'' and insert ``316.''.
  Page 26, line 1, strike `` `(3) For'' and insert `` `(b) 
For'' and strike ``subsection'' and insert ``section''.
  Page 26, line 7, strike ``317'' and insert ``315'' and after 
line 8, strike ``318.'' and insert ``316.''.
  Page 26, line 14, strike ``2004'' and insert ``2003''.
  Page 26, amend lines 16 and 17 to read as follows:

          (A) by striking ``at least every three years'' and 
        all that follows thereafter and inserting ``at least 
        every 4 years, except that strategic plans submitted by 
        September 30, 2003, shall be updated and revised by 
        September 30, 2006.''; and

  Page 26, line 23, strike ``2004'' and insert ``2003''.
  Page 28, line 18, insert ``two'' before `` `years' ''.
  Page 29, strike lines 1 through 7 and redesignate the 
succeeding subsections accordingly.
  Page 29, line 11, strike ``2004'' and insert ``2003''.
  Page 29, line 13, after ``4 years'' insert ``except that 
strategic plans submitted by September 30, 2003, shall be 
updated and revised by September 30, 2006''.
  Page 29, line 14, insert ``in subsection (b),'' after 
``(3)''.
  Page 29, line 19, strike ``2004'' and insert ``2003''.
  Page 32, line 16, strike ``319.'' and insert ``317.''.
  Page 33, line 4, strike ``318'' and insert ``316'' and after 
line 4, strike ``319.'' and insert ``317.''.

Purpose of the Bill

    The purpose of H.R. 981, the Budget Responsibility and 
Efficiency Act of 2001, is to: (1) increase Congressional 
control of the budget process by reducing the amount of time 
spent on budget matters while improving the quality of those 
deliberations; and (2) encourage longer time horizons in policy 
planning and greater stability in fiscal policy.

                          Summary of the Bill

    H.R. 981 establishes a two-year budgeting and 
appropriations cycle and timetable, defining the budget 
biennium as the two consecutive fiscal years beginning October 
1 of any odd-numbered year.
    H.R. 981 requires the President to submit a two-year budget 
at the beginning of the first session of Congress. This budget 
would cover each year in the biennium and planning levels for 
the four out-years. In addition to submitting a Mid-Session 
Review by July 16 of each year, the President will also be 
required to also submit a Mid-Biennium Review on or before 
February 15 of each even numbered year (the second year of the 
biennium).
    H.R. 981 requires Congress to enact two-year appropriations 
bills (which specify the amount of appropriations provided for 
each fiscal year) during the first session of each Congress. 
The bill provides a new point of order against appropriations 
bills, other than supplemental appropriations bills, that fail 
to cover two years.
    Under H.R. 981, the second session of a Congress will be 
devoted to consideration of biennial or multi-year 
authorization bills and oversight of federal programs. The bill 
provides a majority point of order against authorization 
legislation that covers less than two years except those 
measures limited to temporary programs or activities lasting 
less than two years.
    H.R. 981 modifies the Government Performance and Results 
Act (GPRA) to fit the government performance planning and 
reporting process into the two-year budget cycle to enhance 
oversight of federal programs.
    The bill further allows the House and Senate to consider 
reconciliation legislation, if necessary, during this second 
session of a Congress.

                   Background and Legislative History

    The Congressional Budget and Impoundment Control Act of 
1974 (Public Law 93-344) provides Congress with an overall 
framework for considering separate and revenue legislation. The 
primary purpose of this Act were to reassert the congressional 
role in budgeting, to add some centralizing influence to the 
Federal budget process, and to constrain the use of 
impoundments.
    General agreement exists that the Congressional Budget Act 
has been successful at increasing the attention of Congress to 
the whole budget, reasserting the congressional role in 
budgeting and controlling impoundments, but the Act is now 
viewed as an overwhelming success in every respect. First, it 
has not brought the order and timeliness to congressional 
budget action for which advocates had hoped. Deadlines for 
enacting budget resolutions and the passing of appropriation 
bills have routinely been missed. Second, establishing the 
Budget Committees and a centralized decision-making process may 
have increased the level of budgetary conflict in the Congress. 
Authority and power were not significantly redistributed among 
committees and the leadership; rather new layers of 
responsibilities and procedures were added to those that 
already existed. The result has been to create a good deal of 
repetition where the same issue--for example, the fate of the 
B-2 bomber--can be debated three times (during consideration of 
the budget resolution, the defense authorization bill, and the 
defense appropriation bill).

TABLE 1.--HISTORY OF REGULAR AND CONTINUING APPROPRIATIONS, FY 1974-2001
------------------------------------------------------------------------
                                                 Regular
                                             appropriations   Continuing
                                              bills enacted  resolutions
                Fiscal year                   by the start   enacted for
                                              of the fiscal   the fiscal
                                                  year           year
------------------------------------------------------------------------
1974.......................................              3             7
1975.......................................              7             4
1976.......................................              2             3
1977.......................................             13             2
1978.......................................              9             3
1979.......................................              5             1
1980.......................................              3             2
1981.......................................              1             2
1982.......................................              0             5
1983.......................................              1             2
1984.......................................              4             4
1985.......................................              4             4
1986.......................................              0             5
1987.......................................              0             5
1988.......................................              0             5
1989.......................................             13             0
1990.......................................              1             3
1991.......................................              0             5
1992.......................................              3             4
1993.......................................              1             1
1994.......................................              2             3
1995.......................................             13             0
1996.......................................              0             5
1997.......................................             13             0
1998.......................................              1             6
1999.......................................              1             6
2000.......................................              4             7
2001.......................................              2            21
------------------------------------------------------------------------
Sources: CRS Reports (98-800 GOV, 96-224 GOV, 94-799 GOV, and RL 30343).

    During the 27-year history of the Budget Act, Congress has 
met the deadline for completion of a budget resolution only 
four times. Also since 1974, Congress has failed to complete 
action on the thirteen individual appropriation bills to fully 
fund the government before the start of the fiscal year for 
every year except three. In 1988, 1994 and 1996, the Congress 
barely made the fiscal year deadline. When action on regular 
appropriations bills is delayed, this requires Congress and the 
President to agree on a continuing resolution (CR) to provide 
interim funding the Federal government's operations until a 
specific date or until the enactment of the applicable regular 
appropriations acts. If the appropriations bills are not passed 
by the date specified in the CR, then another CR must be 
passed. The passage of multiple successive CR's in one 
appropriations cycle is not uncommon.
    The annual rush to complete action on budget, 
authorizations and appropriations items not only produces a 
poor budget process, it also comes at the expense of careful 
deliberation on matters that are not related to the budget. 
During the 1993 Joint Committee on the Organization of Congress 
hearings, one theme predominated the review of Congress: 
Members of Congress are spread too thin to adequately carry 
their duties. Senator Byrd captured this problem by referring 
to the ``fractured attention spans'' of Senators. Congress 
rarely meets its deadlines, frequently debates the same issues 
again and again, and devotes more and more of its time to the 
budget process.
    The annual process of developing budgets and justifications 
has also kept federal agencies on a perpetual budget cycle 
treadmill, leaving little time to step back and review the 
management and effectiveness of the programs they run. 
Executing an annual budget requires nearly three years of 
combined effort by the Congress and the Administration. The 
Federal government expends an enormous amount of effort to 
prepare, review, submit and ultimately legislate the budget.

        the benefits of biennial budgeting--reducing repetition

    The current budget process is overly repetitive, 
inefficient and bureaucratic, and filled with time-consuming 
budget votes. Effective oversight gets crowded out.
    Currently, Congress completes at least four separate budget 
processes annually following Presidential submission of the 
Administration's budget: (1) the concurrent budget resolution, 
(2) program authorizations, (3) budget reconciliation, and (4) 
consideration of thirteen individual appropriation bills. H.R. 
981 would not eliminate any of these processes, but it would 
require their consideration biennial instead of annually. As 
Table 2 show, Congress devotes much of its time to budget-
related measures, which because of their repetitive nature, 
have become confusing to the public. Between 1990 and 2000, x% 
of all roll call votes were budget-related.

          TABLE 2.--HOUSE BUDGET-RELATED ROLL-CALL VOTES, BY TYPE OF MEASURE, CALENDAR YEARS 1990-2000
----------------------------------------------------------------------------------------------------------------
                                                                   Calendar years--
              Measure               ----------------------------------------------------------------------------
                                      1990   1991   1992   1993   1994   1995   1996   1997   1998   1999   2000
----------------------------------------------------------------------------------------------------------------
Appropriations \1\.................    112    105    138    176    113    292    147    155    124    156    178
Authorization \2\..................     96     79     76     98     81     67     57     52     48     57     66
Tax \1\............................      0      1     17      0      2     15      9      3     11      9     35
Budget Resolution \1\..............      8      9     10     13      9     14      8     10      4      9     12
Reconciliation \1\.................      7      0      0      9      0      9      9     12      0      4     12
Debt Ceiling \1\...................      6      0      0      4      0     11     10      0      0      0      0
Miscellaneous \3\..................      5      3     12     11     19     30      4      6      9      9      9
                                    ----------------------------------------------------------------------------
      Total Budget-Related Votes...    234    197    253    311    224    438    244    238    196    244    312
      Total Votes..................    536    444    488    615    507    885    455    640    547    611    603
                                    ============================================================================
Percentage Budget-Related Votes....     44     44     52     51     44     49     54     37     36     40     52
----------------------------------------------------------------------------------------------------------------
Notes:
\1\ Includes votes on amendments, motions to recommit, measures, and conference reports, as well as all
  procedural issues.
\2\ Includes votes on amendments, motions to recommit, conference reports, and motions to instruct conferees.
  Excludes most procedural votes.
\3\ Includes votes on amendments, motions to recommit, measures, conference reports, and motions to instruct
  conferees. Excludes most procedural votes. [``Miscellaneous'' covers votes not included in other categories,
  such as measures to change the budget process, override the President's line item veto, change revenues
  directly through tariff revisions, and reduce spending directly.]

Source: Congressional Quarterly Almanac 1990-1998 and 2000 and Congressional Quarterly Weekly Reports, 1999
  (Washington, Congressional Quarterly, Inc.). Compiled by Congressional Research Service, Government and
  Finance Division.

    Congress' annual struggle to complete the budget, 
authorization, and appropriations processes results in all 
three processes falling short. The solution is not to eliminate 
any one of these important functions. The solution is to do 
them less often.
    Although the annual budget process is encumbered by missed 
deadlines, redundancies and waste, the Federal government can 
govern effectively under a biennial budget. A biennial budget 
dovetails with the two-year session of a Congress. Members of 
Congress already are personally aware of how such budgeting can 
be more efficient. Since 1990 for the Senate and 1995 for the 
House, committee funding has been provided in two-year funding 
bills. A survey of 50 federal agencies done by Senator Domenici 
found that thirty-seven agencies supported biennial budgeting. 
None opposed it. The agencies generally responded they could 
operate more efficiently under a biennial budget.

        The Benefits of Biennial Budgeting--Improving Oversight

    The current overwhelming appropriations workload upsets the 
intended balance between the authorization and appropriations 
committees. Biennial budgeting would help restore the influence 
of the authorization process.
    Congress has a clear constitutional responsibility to 
conduct oversight to improve the efficiency, economy, and 
effectiveness of governmental operations and programs. In 
Watkins v. United States, the Supreme Court described Congress' 
oversight power by stating that the ``power of the Congress to 
conduct investigations is inherent in the legislative process. 
That power is broad.'' The Supreme Court also observed that ``a 
legislative body cannot legislative wisely or effectively in 
the absence of information respecting the conditions which the 
legislation is intended to affect or change.''
    The fact is that the annual appropriations process is so 
time-consuming has led to neglect of the authorization process, 
where most programmatic oversight is conducted. As a result, 
large portions of the discretionary federal budget are left 
unauthorized each year. The programs which receive taxpayer's 
dollars to function each year are not receiving the careful 
scrutiny that they should from the committees in Congress with 
the greatest expertise. Every year the Congressional Budget 
Office (CBO) generates a thick report identifying the programs 
that are operating without current authorization. In fiscal 
year 2001, $112 billion in appropriations were provided for 112 
federal programs whose authorizations had expired.
    H.R. 981 converts the annual budget and appropriations 
process to a biennial or two-year cycle. Biennial budgeting 
would divide each Congress into a budget year and an 
authorization year. In that second year, the legislative branch 
could more effectively use the authorization process to 
inspect, examine and review the executive branch and its 
agencies. Increased oversight will also contribute to more 
appropriate funding decisions in biennial appropriations bills 
and deliberative consideration of any necessary supplemental or 
recission legislation.
    In its report to Congress, the Joint Committee on the 
Organization of Congress recommended that the Budget Committees 
``use the second year of each biennium to study issues with 
long-term budgetary and economic implications which would 
include holding hearings to receive testimony from committees 
of jurisdiction to identify problem areas and to report on the 
results of oversight; and by January 1 of each odd-numbered 
year, issuing a report to the Speaker which identifies the key 
issue facing the Congress in the next biennium.'' This 
provision is included in H.R. 981.

     THE BENEFITS OF BIENNIAL BUDGETING--INCREASING STABILITY AND 
                   PREDICTABILITY IN FEDERAL FUNDING

    A major source of budgetary uncertainty at the state level 
is the result of matters involving federal action. In addition, 
under the annual budget process, individuals and nonprofits 
receiving government benefits or paying government fees may not 
know from year to year exactly what level of resources will be 
available to them.
    Biennial budgeting will provide more predictability for 
those served by federal funding and those who administer it. 
Under a biennial budget, states, localities and private 
organizations will become more efficient in the long-term 
planning and management of their programs due to more 
predictable federal funding streams. For those citizens who are 
served by federal programs, biennial budgeting will provide 
more predictability and peace of mind.
    Biennial budgeting will strengthen fiscal management. Given 
the enactment of the Government Performance and Results Act, 
the Chief Financial Officers Act, the Government Management 
Reform Act, and the Information Technology Management Reform 
Act, a biennial budget process would be a logical next step in 
promoting long-term planning, and improving the efficiency of 
government and the use of taxpayer dollars.
    Some charge that there is too much uncertainty to project 
for a two-year period. CBO's analyses indicate the opposite is 
true: most federal funding is predictable anyway. A CBO study 
indicates that only 5.6% of discretionary spending in FY 2001 
($36 billion of the $642 billion appropriated) required annual 
funding due to volatile spending patterns. Additionally, from 
1997 to 1998 (the last time period for which data is currently 
available), 70% of the 872 discretionary spending accounts 
changed less than 10%. Those few programs that do change (most 
of which relate to international or emergency activities) can 
be accommodated during the normal supplemental appropriations 
process.

                STATE EXPERIENCE WITH BIENNIAL BUDGETING

    Since 1980, four states have switched from an annual cycle 
to a biennial cycle or a partial biennial cycle. Currently, 
more than twenty states operate under biennial budgets, 
providing ample precedent for the two-year budget cycle. While 
significant differences exist between the Federal budget and 
state budgets, this Committee believes that the experience of 
states can provide valuable insights for the Federal 
government, including specific implementation strategies. The 
most important lesson from the states' experience with biennial 
budgeting is that the degree and nature of any power shift that 
occurs has more to do with the political culture of a state 
than with the actual nature of a state's budget process. In 
addition, a 1988 study conducted by Texas A&M University for 
the State government of Texas found that biennial budgeting did 
not result in increased micromanagement of programs by the 
legislatures but, the legislatures did retain a significant 
influence over the flow of funds throughout the state budget.

                           ADDITIONAL ISSUES

    H.R. 981 does not shift power to the executive branch. Some 
changes will occur in the current roles played by both the 
executive and the legislative branches in the budget process. 
However, these changes will not result in massive shifts of 
power but rather will allow the legislative branch to more 
efficiently exercise its constitutional oversight 
responsibility. Congress will continue to decide, down to the 
account level, the exact amount of spending in every 
appropriation bill just as is done under current law. Under a 
biennial appropriations process, agencies would not be given a 
lump sum of money, even at the account level, to spendover a 
two-year period. Rather, Congress will appropriate a separate 
individual sum for each of the two fiscal years covered by the biennial 
appropriation bill. Additionally, the President will be able to spend 
only the amount that Congress has provided in each of those years and 
all of the current mechanisms and procedures for moving funds between 
accounts would remain in place. Also, Congress would still exercise its 
significant oversight and enforcement role through the reprogramming 
authority of the House and Senate Appropriations Committees. Finally, 
it should be remembered that biennial appropriations, like the current 
annual appropriations process, cover only one-third of the Federal 
budget, since two-thirds of the budget is considered mandatory spending 
and is not under Congress' annual control.
    H.R. 981 will not lock Congress into policy decisions that 
will need to be changed as a result of changing 
circumstances.--Biennial budgeting does not mean that Congress 
and the President cannot appropriate money or modify previous 
appropriations during the second year. The supplemental 
appropriations process would still exist and would continue to 
be used. If biennial budgeting and appropriations were combined 
with a mechanism to budget in advance for emergencies and 
unintended contingencies, a biennial budgeting process would be 
more than able to respond to these unpredictable situations.
    H.R. 981 will not necessarily lead to an increase in the 
size and number of supplemental appropriations.--It is 
important to remember that supplemental appropriation bills 
will always be a part of the budget process. Supplemental 
appropriations bills are vehicles used by Congress and the 
President to reconcile the current fiscal year's budget with 
the nation's current needs and priorities. Whether biennial 
budgeting will increase or decrease the number of supplementals 
is an open question, but since there has been one or more every 
year since the adoption of the Budget Act in 1974 (see Table 
3), everyone can agree that there will always be at least one 
supplemental.

      TABLE 3.--SUPPLEMENTAL APPROPRIATIONS, FISCAL YEARS 1974-2001
                          [Dollars in millions]
------------------------------------------------------------------------
                                                 Number of    Amount of
                 Fiscal year                   supplemental     budget
                                                   bills      authority
------------------------------------------------------------------------
1974.........................................             5      $14,796
1975.........................................             7       27,587
1976.........................................             5       24,636
1977.........................................             5       49,482
1978.........................................             8        8,219
1979.........................................             2       13,784
1980.........................................             5       19,575
1981.........................................             3       12,461
1982.........................................             4       21,020
1983.........................................             2       22,654
1984.........................................             4       16,357
1985.........................................             3       14,804
1986.........................................             3        8,191
1987.........................................             2        9,370
1988.........................................             2        1,310
1989.........................................             1        3,295
1990.........................................             2        2,039
1991.........................................             3       19,786
1992.........................................             1        2,806
1993.........................................             3        9,848
1994.........................................             2        7,822
1995.........................................             2       -9,847
1996.........................................             6        1,523
1997.........................................             1        1,670
1998.........................................             5        3,409
1999.........................................  ............  ...........
2000.........................................  ............  ...........
2001.........................................  ............  ...........
------------------------------------------------------------------------

    Under biennial budgeting, instead of guaranteeing that 
Congress will consider 18 budget-related bills (13 
appropriations bills, 1 budget resolution, and on average, 3 
supplemental bills), Congress may only consider 3 bills in off-
budgeted years. All supplemental bills in a biennial budgeting 
system will be subject to the same budgetary constraints that 
currently exist; while many argue that these constraints should 
be tighter, biennial budgeting in no way weakens the existing 
constraints of our budget laws. In fact, it could be argued 
that with a longer planning horizon we can meet enforcement 
targets every two years instead of year to year as with the 
current budget system. The bottom line is that the existing 
annual budget process does not always function the way in which 
it was intended. Similar problems will occur with biennial 
budgeting but the opportunities for the process not to work as 
promised will be less frequent because we will be opening up 
the whole process half as much.
    It is not difficult to budget two years in advance.--The 
Committee would note that under the current budget process, 
many advance projections already are done for a much longer 
period than just two years--most often for 5 or 10 years. 
According to the Office of Management and Budget, second year 
numbers and projections are not only as precise as those for 
the current fiscal year but they also serve as ceilings for the 
next year's budget requests. Both the President and the 
Congress are already required to prepare multi-year budgets.
    Nothing in the biennial budget proposal (or in the existing 
annual process) states that Congress and the President cannot 
revisit a budgetary decision. Section 304 of the Budget Act 
currently allows for revisions to any already agreed to budget 
resolution when necessary. Biennial budgeting would in no way 
interfere with the use and availability of this fail-safe 
mechanism. In addition, the biennial budgeting process retains 
the ability to revisit prior budgetary decisions, to exercise 
corrective action to provide a great deal of budgetary 
enforcement in that, the budget situation would have to be 
universally recognized as a problem, in order to utilize the 
revision process.
    Under H.R. 981, the Congressional Budget Office is required 
to provide quarterly reports to the Budget Committees comparing 
the assumptions of the levels of revenues and spending included 
in the budget resolution to reality. In addition, the Office of 
Management and Budget must provide regular six-month reports on 
the current state of the budget.
    H.R. 981 will not reduce Congressional control over Federal 
agencies. The concern that Congress would relinquish control 
over Federal agencies assumes that the appropriations process 
is the only way in which Congress can exercise control over 
agencies. While use of the appropriations process to keep 
federal agencies in check is very important, it is only one of 
the ways Congress can oversee federal agencies' spending. Under 
our current process, the appropriations committees are treated 
as the first string of the team and the authorization 
committees as bench players.
    The authorization committees must be integrated into the 
first team as both authorizers and appropriators play an 
important and distinct role in the budget process. If the 
authorization process is more vigorous and committees are more 
active in their programmatic oversight, Congress will play an 
even greater role in controlling not just the funding of 
agencies but their overall operations and policies as well.
    More long term budget planning will result in more long 
term control over federal agencies, not only fiscally, but from 
a policy standpoint as well.

               history of biennial budgeting legislation

    1974 (93rd Congress)--The Congressional Budget Act of 1974 
required the Congressional Budget Office (CBO) to issue a 
report on the ``feasibility and advisability'' of budgeting and 
appropriating a full year in advance.
    1977 (95th Congress)--In response to 1974 directive, CBO 
issued ``Advance Budgeting: A Report to Congress.'' This 
included a study of two-year appropriations, and concluded that 
if ``committees did not have to spend so much time each year on 
routine `budgetary' matters, they would in fact have more time 
for their oversight work. * * *'' A parallel report made in 
1977 by the Office of Management and Budget, entitled ``A Study 
of the Advisability of Submitting the President's Budget and 
Enacting Budget Authority in Advance of the Current 
Timetable,'' also advocated the concept of multi-year 
budgeting, on the grounds that, ``Both the President and 
Congress will reap significantly greater benefits from multi 
year budgeting. * * *'' Also in 1977, Representative Panetta 
introduced the first legislation to establish a biennial budget 
process. Panetta's legislation, the Biennial Budget Act, sought 
to create a two-year budget process devoted in the first year 
to oversight of Executive branch agencies.
    1979 (96th Congress)--Representative Panetta again 
introduced a biennial budget bill. In the Senate, Senator 
Bumpers introduced a resolution directing a study of the 
feasibility of a biennial budget. No action was taken on either 
bill.
    1981-82 (97th Congress)--Four bills (Ford, Roth, Cochran, 
and Quayle) to establish a biennial budget process were 
introduced in the Senate. Representative Panetta again 
sponsored a House bill. In 1981, biennial budgeting was 
discussed during Government Affairs Committee hearings on the 
Congressional Budget and Impoundment Act of 1974. Separate 
hearings on Senator Roth's biennial budget bill also were held 
by the Committee.
    1983-84 (98th Congress)--Several biennial budget bills were 
again introduced. Governmental Affairs held hearings on Senator 
Roth's bill. Also in 1984, the Temporary Select Committee to 
Study the Senate Committee System recommended that a select 
committee be established to study the feasibility of biennial 
budgeting. No committee was formed.
    1985-86 (99th Congress)--The FY 1986 Defense Authorization 
bill included an amendment proposed by Senator Nunn to, among 
other things, require the President to submit two-year budget 
proposals for the Defense Department. The provision was 
retained through conference, and the conferees expressed their 
belief that a biennial budget would ``substantially improve DOD 
management and congressional oversight.'' They further 
indicated that it was preferable for all Federal spending to be 
under a two-year system. While DOD submits a two-year budget, 
Congress continues with the annual cycle--so the long-term 
planning benefit is still not realized.
    1987-88 (100th Congress)--President Reagan and 
congressional leadership approved the Budget Summit Agreement, 
setting specific funding totals for domestic, international, 
and defense discretionary spending for FY 1988 and VY 1989. 
Longstanding supporters of biennial budgeting note that the 
``biennial character'' of the summit agreement demonstrates 
that the time had come to move to a two-year budget cycle. The 
Balanced Budget and emergency Deficit Control Act of 1987 
directed the appropriate congressional committees to develop a 
plan to experiment with multi-year authorization and 
appropriations.
    1989-90 (101st Congress)--As Chairman of the Governmental 
Affairs Committee, Senator John Glenn held hearings and ordered 
favorable reported S. 29 (sponsored by Senators Ford, Roth and 
Domenici) providing for a two-year budget resolution and 
appropriations. Thebill was not taken up by the full Senate.
    1993-94 (103rd Congress)--Senators Boren and Domenici in 
1994 introduced S. 1824 to implement the recommendations of the 
Joint Committee on the Organization of Congress, which included 
a provision to shift to a biennial budget cycle. The bill 
reported by the Rules Committee as an outgrowth of the Joint 
Committee's included the provision for biennial budget and 
appropriations. Senator Domenici offered the Joint Committee's 
legislative recommendations as an amendment to the District of 
Columbia Appropriations bill. Senator Byrd raised a point of 
order under section 306 of the Budget Act, and the Senate voted 
58 to 41 in favor of the motion to waive the Budget Act with 
respect to consideration of the amendment. Since the motion did 
not gain the 60 votes necessary, the amendment failed.
    1995-96 (104th Congress)--Four bills providing for a 
biennial cycle were introduced. In July 1996, Senator Fred 
Thompson, Chairman of the Financial Management and 
Accountability Subcommittee of the Governmental Affairs 
Committee, held a hearing on biennial budgeting. In September 
1996, Senator Thompson introduced a biennial budget bill (S. 
2049), emphasizing the need to provide Members of Congress with 
time for increased legislative oversight and time at home.
    1997-1998 (105th Congress)--One bill, S. 261, was 
introduced by Senator Domenici on February 4, 1997. On February 
13, 1997 the Budget Committee held a hearing on S. 261. On 
April 23, 1997 Senator Thompson held a full Governmental 
Affairs Committee Hearing on S. 261. On May 22, 1997, the 
Governmental Affairs Committee ordered to be reported S. 261, 
with an amendment in the nature of a substitute, and the bill 
was reported to the Senate on September 4, 1997. On October 6, 
1997 the Senate Committee on Budget discharged S. 261 and it 
was placed on Senate Legislative Calendar under General Orders. 
No further action was taken.
    1999-2000 (106th Congress)--During the 106th Congress, no 
less than four biennial budgeting bills were introduced in the 
House of Representatives. Each of these bills were referred to 
the Committee on Rules and the Committee on the Budget. In 
addition, 245 Members signed onto a sense of the House 
resolution (H. Res. 396) calling for the enactment of a 
biennial budget process in the second session of the 106th 
Congress. Accordingly, the Committee held a series of lengthy 
hearings to examine proposals from various Members of Congress, 
the Executive Branch, and outside experts on establishing a 
two-year budget and appropriations cycle in an effort to 
develop consensus legislation that would streamline the budget 
process, enhance programmatic oversight, strengthen the 
management of government programs and bureaucracies, and reform 
Congress. These hearings laid the groundwork for a bipartisan 
biennial budgeting amendment during floor consideration of H.R. 
853, the Comprehensive Budget Process Reform Act. This 
amendment was narrowly defeated on May 16, 2000, by a record 
vote of 201 to 217. The House also defeated the broader bill, 
but by a much larger margin.

                        Committee Consideration

    At the beginning of the 107th Congress, Representative 
Charles Bass of New Hampshire, a Member of the House Budget 
Committee, introduced H.R. 981, which was referred to the 
Committee on the Budget and in addition to the Committee on 
Rules and the Committee on Government Reform.
    On July 25, 2001, the Rules Subcommittee on Legislative and 
Budget Process held a hearing on biennial budgeting. Mitchell 
E. Daniels, Jr., Director of the Office of Managementand 
Budget, noted that ``This idea [biennial budgeting] has had the support 
of at least two Administrations and Members of Congress from both 
parties. We should not spend a whole lot more time talking about the 
pros and cons * * *. Let's make this the year we finally act on this 
reform proposal''.
    The Committee heard testimony from the following Members of 
Congress: Representatives Charles F. Bass (R-NH), Bill Luther 
(D-MN), Bob Clement (D-TN) [testimony submitted for the 
record], Joe Barton (R-TX), David L. Hobson (R-OH), Joe 
Knollenberg (R-MI), David E. Price (D-NC), and James T. Walsh 
(R-NY).
    On August 3, 2001, the Budget Committee reported a 
substitute version of H.R. 981 out of Committee by voice vote. 
The Budget Committee's version would create a Commission on 
Federal Budget Concepts to study the idea of biennial 
budgeting, among other things.
    On November 1, 2001, the Rules Committee met in open 
session and ordered favorably reported the bill H.R. 981, with 
amendment, by voice vote, a quorum being present.
    The bill was discharged from the House Committee on 
Government Reform on November 9, 2001, after its referral 
expired.

                       Section-by-Section Summary


Section 1. Findings

    States the title of the legislation, the ``Biennial 
Budgeting and Efficiency Act of 2001,'' and outlines nine 
congressional findings on the budget process and biennial 
budgeting.

Section 2. Revision of timetable

    Amends section 300 of the Congressional Budget and 
Impoundment Control Act of 1974 to revise the timetable of the 
congressional budget process to reflect a biennial budget 
schedule. The first session of any Congress is primarily 
devoted to the consideration of the budget resolution, the 
regular appropriations bill, and any necessary reconciliation 
legislation. In general, the revised timetable is similar to 
the current timetable except that most of the milestones only 
apply to the first session of a Congress. The timetable is 
modified to extend the deadline for completion of the biennial 
budget resolution to May 15th. The revised timetable contains 
only three deadlines for the second session: (1) the President 
must submit a mid-biennium budget review to Congress by 
February 15th; (2) the Congressional Budget Office must submit 
its annual report to the Budget Committees of the House and the 
Senate no longer than six weeks after the President submits the 
budget review; and (3) Congress must complete action on bills 
and resolutions authorizing new budget authority for the 
succeeding biennium by the last day of the session. This 
section also creates a new section 300(b) of the Budget Act 
that establishes a special timetable for the submission and 
consideration of a budget in the case of any first session of 
Congress that begins in any year during which the term of a 
President (except a President who succeeds himself) begins. 
Generally, the budget deadlines are extended by 6 weeks to give 
a new President more time to prepare and submit the budget.

Section 3. Amendments to the Congressional Budget and Impoundment 
        Control Act of 1974

    Section 3(a) amends section 2(2) of the Budget Act relating 
to the ``Declaration of Purposes'' of the Budget Act to account 
for the congressional determination biennially of the 
appropriate level of Federal revenues and expenditures.
    Section 3(b)(1) amends the definition of a budget 
resolution in section 3(4) of the Budget Act to reflect its 
application to a biennium as opposed to a fiscal year.
    Section 3(b)(2) amends section 3 of the Budget Act by 
adding a new paragraph (13) to define the term biennium as 
``the period of two consecutive fiscal years beginning on 
October 1 of any odd-numbered year.''
    Section 3(c) amends the Budget Act to make the budget 
resolution a biennial concurrent resolution on the budget.
    Section 3(c)(1) amends section 301(a) of the Budget Act 
regarding the required contents of the budget resolution to 
conform its application to the biennium beginning on October 1 
of each odd-numbered year and its consideration tothe biennial 
timetable for completion, which is by May 15 of each odd-
numbered year.
    Section 3(c)(2) amends section 301(b) of the Budget Act to 
ensure that the additional matters which may be included in the 
budget resolution apply to a biennium.
    Section 3(c)(3) amends section 301(d) of the Budget Act to 
conform the submission of committee views and estimates to the 
Budget Committees to a biennial cycle.
    Section 3(c)(4) amends section 301(d) of the Budget Act to 
conform the requirements of the Budget Committee's hearings on 
the budget and the Budget Committee's reporting of the budget 
resolution to a biennial schedule. The House Budget Committee 
would report a biennial budget resolution by April 1st of each 
odd-numbered year.
    Section 3(c)(5) amends section 301(f) of the Budget Act 
relating to the achievement of goals for reducing unemployment 
to conform it to a biennial cycle.
    Section 3(c)(6) amends section 301(g)(1) of the Budget Act 
to conform the provisions relating to the economic assumptions 
of the budget resolution to a biennial schedule.
    Sections 3(c)(7) and (8) amend section 301 to make 
conforming changes to the section heading and the table of 
contents of the Budget Act.
    Section 3(d) amends section 302(a) of the Budget Act, 
regarding committee allocations in the budget resolution, to 
require the conference report on a budget resolution to include 
an allocation of budget authority and outlays to each committee 
for each year in the biennium and the total of all fiscal years 
covered by the resolution as well as makes conforming change to 
subsections (f) and (g) of section 302 to reflect a biennial 
cycle and the biennial timetable.
    Section 3(e)(1) amends section 303(a) of the Budget Act, 
which prohibits consideration of legislation, as reported, 
providing new budget authority, changes in revenues, or changes 
in the public debt for a fiscal year until the budget 
resolution for that year has been agreed to, to reflect the 
application of the budget resolution to a biennium.
    Section 3(e)(2) amends section 303(b) of the Budget Act 
relating to the exceptions in the House of Representatives from 
the application of this point of order, to account for a 
biennialbudget cycle. The application of these exceptions are 
also amended to reflect the special biennial timetable utilized during 
the first term of a new President.
    Section 3(e)(3) amends section 303(c)(1) of the Budget Act 
to conform the application of this point of order in the Senate 
to a biennial budget cycle.
    Section 3(f) amends section 304 of the Budget Act, 
regarding permissible revisions of budget resolutions, to 
conform to the biennial budget cycle. This subsection maintains 
current law which allows Congress to revise the budget 
resolution at any time during the biennium.
    Section 3(g) amends section 305(a)(3) of the Budget Act, 
relating to the procedures for consideration of the budget 
resolution, to conform references to the budget resolution to 
account for its application to a biennium.
    Section 3(h) amends section 307 of the Budget Act to 
conform the timetable for completing House Appropriations 
Committee action on regular appropriations bills by June 10 to 
a biennial cycle. This section also makes conforming amendments 
to reflect the special biennial timetable utilized during the 
first term of a new President.
    Section 3(i) amends section 308 of the Budget Act to 
require the Congressional Budget Office to file quarterly 
budget reports with the House and Senate Budget Committees. 
These reports are to compare revenues, spending, and the 
deficit or surplus for the current fiscal year with the 
assumptions used in the congressional budget resolution. CBO is 
also required to make the reports available to other interested 
parties upon request. These reports will enable the Congress to 
compare actual budget results to earlier estimates. The 
frequent periodic reports by CBO on the progress of fiscal 
policy and economic developments since action on the budget 
resolution will inform the Congress about current status of the 
budget and its earlier underlying projections by using updated 
projections and actual budget figures to date. The reports can 
also serve to facilitate additional reconciliation legislation 
(between biennial budget resolutions) as necessary due to 
changes in the economy or policy emphasis.
    Section 3(j) amends section 309 of the Budget Act to 
conform the timetable for completion of all House action on the 
regular appropriation bills before the House adjourns for more 
than three calendar days during the month of July. This section 
also makes conforming amendments to reflect the special 
biennial timetable utilized during the first term of a new 
President.
    Section 3(k) amends section 310 of the Budget Act to 
conform the reconciliation process to a biennial budget cycle. 
It also strikes subsection (f) which currently prohibits the 
House from adjourning for more than 3 calendar days during the 
month of July until all required reconciliation legislation is 
completed. This is necessary to reflect the budget resolution's 
application to the biennium and the possibility of considering 
reconciliation legislation during the second session.
    Sections 3(l)(1) and (2) amend section 311(a)(1) and (2) of 
the Budget Act respectively, to prohibit consideration in the 
House or Senate of any legislation that would cause the total 
levels of budget authority or total levels of outlays to be 
exceeded or that would cause the total level of revenues to be 
less than those levels set forth in the most recently agreed to 
budget resolution for either fiscal year of the biennium or for 
the total of each fiscal year in the biennium and the ensuing 
fiscal years for which allocations are provided in the budget 
resolution.
    Section 3(l)(3) amends section 311(a)(3) of the Budget Act 
to conform the point of order in the Senate against any 
legislation that would cause a decrease in the Social Security 
levels set forth in the budget resolution for a biennial budget 
cycle.
    Section 3(m) amends section 312(c) of the Budget Act to 
conform the Senate's maximum deficit amount point of order for 
a biennial budget cycle.

Section 4. Amendments to the Rules of the House of Representatives

    Section 4(a) amends clause 4(a)(1)(A) of rule X of the 
Rules of the House of Representatives, relating to the required 
Appropriations Committee hearings on the President's budget 
submission, to conform to the biennial timetable.
    Section 4(b) amends clause 4(a)(4) of rule X of the Rules 
of the House, relating to the suballocations of the 
Appropriations Committee, to conform to a biennial budget 
resolution.
    Section 4(c) amends clause 4(b)(2) of rule X of the Rules 
of the House, relating to the Budget Committee's hearings on 
the budget, to conform to a biennial budget resolution.
    Section 4(d) amends clause 4(b) of rule X of the Rules of 
the House to add a new subparagraph (7), to require the House 
Budget Committee to use the second session of each Congress to 
study issues with long-term budgetary and economic 
implications, including holding hearings and receiving 
testimony from committees of jurisdiction to identify problem 
areas and to report on the results of their oversight 
activities. The Budget Committee should issue to the Speaker by 
January 1 of each odd-numbered year a report identifying the 
key issues facing the Congress in the next biennium.
    Section 4(e) amends clause 11(i) of rule X of the Rules of 
the House, relating to the duties of the Permanent Select 
Committee on Intelligence, to conform to a biennial cycle.
    Section 4(f) amends clause 4(e) of rule X of the Rules of 
the House, relating to the duties of the standing committees of 
the House to maximize annual appropriations for the programs 
and actives within their jurisdictions, to establish a new 
preference of biennial appropriations.
    Section 4(g) amends clause 4(f) of rule X of the Rules of 
the House, relating to the Budget Act responsibilities of the 
standing committees of the House, to conform to a biennial 
timetable.
    Section 4(h) amends clause 3(d)(2)(A) of rule XIII of the 
Rules of the House, relating to committee cost estimates, to 
conform to a biennial timetable.
    Section 4(i) amends clause 5(a)(1) of rule XIII of the 
Rules of the House, relating to privileged reports from the 
Appropriations Committee, to conform to a biennial timetable.

Section 5. Amendments to Title 31, United States Code

    Section 5(a) amends section 1101 of Title 31 to define the 
term biennium as ``the period of two consecutive fiscal years 
beginning on October 1 of any odd-numbered year.'' This is the 
same definition given such term in paragraph (11) of section 3 
of the Budget Act.
    Section 5(b)(1) amends section 1105 of Title 31 to require 
that on or before the first Monday in February of each odd-
numbered year (or, if applicable, as provided by section 
300(b)of the Budget Act), the President shall transmit to Congress, the 
budget for the biennium beginning on October 1 of such calendar year. 
The President must include a budget message and summary and supporting 
information with the budget submission.
    Section 5(b)(2) amends section 1105(a)(5) of Title 31 to 
conform the required contents of the budget submission with 
respect to expenditures to account for a biennial budget cycle.
    Section 5(b)(3) amends section 1105(a)(6) of Title 31 to 
conform the required contents of the budget submission with 
respect to receipts to account for a biennial budget cycle.
    Section 5(b)(4) amends section 1105(a)(9)(C) of Title 31 to 
conform the required contents of the budget submission with 
respect to balance statements to account for a biennial budget 
cycle.
    Section 5(b)(5) amends section 1105(a)(12) of Title 31 to 
conform the required contents of the budget submission with 
respect to government functions and activities to account for a 
biennial budget cycle.
    Section 5(b)(6) amends section 1105(a)(13) of Title 31 to 
conform the required contents of the budget submission with 
respect to allowances to account for a biennial budget cycle.
    Section 5(b)(7) amends section 1105(a)(14) of Title 31 to 
conform the required contents of the budget submission with 
respect to allowances for unanticipated and uncontrollable 
expenditures to account for a biennial budget cycle.
    Section 5(b)(8) amends section 1105(a)(16) of Title 31 to 
conform the required contents of the budget submission with 
respect to tax expenditures to account for a biennial budget 
cycle.
    Section 5(b)(9) amends section 1105(a)(17) of Title 31 to 
conform the required contents of the budget submission with 
respect to estimates for future fiscal years to account for a 
biennial budget cycle.
    Section 5(b)(10) amends section 1105(a)(18) of Title 31 to 
conform the required contents of the budget submission with 
respect to prior year outlays to account for a biennial budget 
cycle.
    Section 5(b)(11) amends section 1105(a)(19) of Title 31 to 
conform the required contents of the budget submission with 
respect to prior year receipts to account for a biennial budget 
cycle.
    Section 5(c) amends section 1105(b) of Title 31, regarding 
estimated expenditures and proposed appropriations for the 
legislative and judicial branches, to required the submission 
of these proposals to the President by October 16th of even-
number years.
    Section 5(d) amends section 1105(c) of Title 31, regarding 
the President's recommendations if there is a proposed deficit 
or surplus, to conform to a biennial budget cycle.
    Section 5(e) amends section 1105(e)(1) of Title 31, 
regarding capital investment analyses, to conform to a biennial 
budget cycle.
    Sections 5(f)(1) and (2) amend section 1106(a) and (b) of 
Title 31 respectively, relating to the President's submission 
of supplemental budget estimates and changes, ton conform to a 
biennial budget cycle. The President is still rerquired to 
submit a Mid-Session Review of thebudget by July 16 of each 
year as well as will now be required to also submit a Mid-Biennium 
Review on or before February 15 of each even numbered year.
    Section 5(g)(1) amends section 1109(a) of Title 31, 
regarding the President's submission of current program and 
activity estimates, to conform to a biennial budget cycle and 
require its submission with the overall budget submission for 
each odd-numbered year as required by section 1105.
    Section 5(g)(2) amends section 1109(b) of Title 31, 
regarding the Joint Economic Committee's analysis of the 
President's current program and activity estimates, to require 
the Joint Economic Committee to submit an economic evaluation 
of such estimates to the Budget Committee as part of its views 
and estimates within 6 weeks of the President's budget 
submission for each odd-numbered year.
    Section 5(h) amends section 1110 of Title 31, regarding 
advance requests for authorization legislation to require the 
President to submit requests for authorization legislation by 
March 31st of even-numbered years.

Section 6. Two-year appropriations; title and style of appropriations 
        acts

    Section 6 amends section 105 of Title I of the U.S. Code to 
conform the statutory style and definition of appropriations 
Acts to require that they cover each of two fiscal years of a 
biennium.

Section 7. Multi-year authorizations

    Section 7(a) amends Title III of the Budget Act by adding a 
new section 318 that establishes a new point of order in the 
House and Senate against the consideration of any bill, joint 
resolution, amendment, motion or conference report that does 
contains a specific authorization of appropriations for any 
purpose for less than each fiscal year in one or more 
bienniums. This prohibition does not apply to an authorization 
of appropriations for a single fiscal year for any program, 
project or activity if the measure (defined as a bill, joint 
resolution, amendment, motion or conference report) containing 
that authorization includes a provision expressly stating the 
following: ``Congress finds that no authorization of 
appropriation will be required for [Insert name of applicable 
program, project, or activity] for any subsequent fiscal 
year.'' It further defines a specific authorization of 
appropriations as an authorization for the enactment of an 
amount of appropriations or amounts not to exceed an amount of 
appropriations (whether stated as a sum certain, as a limit, or 
as such sums as may be necessary) for any purpose for a fiscal 
year.

Section 8. Government strategic and performance plans on a biennial 
        basis

    Section 8 amends the Government and Performance and Results 
Act of 1993 (the Results Act) to incorporate GPRA into the 
biennial budget cycle. The Results Act requires federal 
agencies to develop strategic plans, performance plans, and 
performance reports. Strategic plans set out the agencies' 
missions and general goals. Performance plans lay out the 
specific quantifiable goals and measures. Performance reports 
compare actual performance with the goals of past performance 
plans. The Results Act currently requires federal agencies to 
consult with congressional committees as they develop their 
strategic plans. The Results Act requires all federal agencies 
to submit their strategic and performance plans to the Office 
of Managementand Budget, along with their budget submissions, 
by September 30 of each year. Finally, the Results Act requires the 
President to include a performance plan for the entire government.
    Sections 8(a) through (g) amend section 306 of title 5, 
sections 1105, 1119 and 9703 of title 31, and sections 2802 and 
2803 of title 39 requires agencies to prepare strategic and 
performance plans every two years, in conjunction with the 
President's development of a biennial budget. In addition, 
these amendments make other changes to conform strategic and 
performance plans to a biennial budget cycle.
    Section 8(h) amends section 301(d) of the Budget Act to 
require Congressional committees to review the strategic plans, 
performance plans, and performance reports of agencies in their 
jurisdiction. Committees may then provide their views on the 
agency's plans or reports as part of their views and estimates 
on the President's budget submitted to the Budget Committees.
    Section 8(i) provides that the amendments by this section 
shall take effect on March 1, 2005.

Section 9. Biennial appropriations bills

    Section 9(a)(1) amends clause 2(a) of House Rule XXI to 
provide that in the House of Representatives an appropriation 
may not be reported in a general appropriation bill (other than 
a supplemental appropriation bill), and may not be in order as 
an amendment thereto, unless it provides a new budget authority 
or establishes a level of obligations under contract authority 
for each fiscal year of a biennium. It further provides that 
this prohibition shall not apply with respect to an 
appropriation for a single fiscal year for any program, 
project, or activity if the bill or amendment thereto 
containing that appropriation includes a provision expressly 
stating the following: Congress finds that no additional 
funding beyond one fiscal year will be required and the [Insert 
name of applicable program, project, or activity] will be 
completed or terminated after the amount provided has been 
expended. The subparagraph is further amended to provide that 
such a statement shall not constitute legislating on an 
appropriation bill if it is included with an appropriation for 
a single fiscal year for any program, project, or activity.
    Section 9(a)(2) amends clause 5(b)(1) of House Rule XXII to 
apply similar prohibitions against appropriation conference 
reports.
    Section 9(b)(1) amends Title III of the Congressional 
Budget Act of 1974 to add a new section 319 to create a point 
of order in the Senate against consideration in any odd-
numbered year of any regular appropriation bill providing new 
budget authority or a limitation on obligations under the 
jurisdiction of the Committee on Appropriations for only the 
first fiscal year of a biennium, unless the program, project, 
or activity for which the new budget authority or obligation 
limitation is provided will require no additional authority 
beyond one year and will be completed or terminated after the 
amount provided has been expended.
    Section 9(b)(2) amends section 1(b) of the Budget Act to 
conform the table of contents of the Budget Act to account for 
this new section 319.

Section 10. Assistance by Federal agencies to standing committees of 
        the House of Representatives and the Senate

    Section 10(a) requires the head of each Federal agency 
under the jurisdiction of a standing committee to provide to 
the committee those studies, information, analyses, reports, 
and assistance as may be requested by the chairman and ranking 
minority member of the committee.
    Section 10(b) requires the head of each Federal agency to 
furnish to such committee documentation containing information 
received, compiled, or maintained by the agency as part of the 
operation or administration of a program, or specifically 
compiled pursuant to a request in support of a review of a 
program, as may be requested by the chairman and ranking 
minority member of such committee.
    Section 10(c) requires that, within 30 days after the 
receipt of a request from a chairman and ranking minority 
member of a standing committee having jurisdiction over a 
program being reviewed, the Comptroller General furnish to the 
committee summaries of any audits or reviews of such program 
the Comptroller General has completed during the preceding six 
years.
    Section 10(d) reaffirms the role of the Comptroller 
General, the Director of the Congressional Research Service, 
and the Director of the Congressional Budget Office to furnish 
(consistent with established protocols) to each standing 
committee of the House and Senate such information, studies, 
analyses, and reports as the chairman and ranking minority 
member may request to assist the committee in conducting 
reviews and studies of programs under its jurisdiction.

Section 11. Report on two-year fiscal period

    Requires that, not later than 180 days after the enactment 
of this Act, the Director of OMB shall determine the impact of 
changing the definition of a fiscal year and the budget process 
based on that definition to a 2 year fiscal period with a 
biennial budget process based on the 2 year period, and shall 
report his findings to the Committee on Budget in the House and 
Senate and the Committee on Rules in the House.

Section 12. Special transition period for the 107th Congress

    Section 12(a) requires the President to include in the FY 
2004 budget submission an identification of the budget accounts 
for which an appropriation should be made for each fiscal year 
of the FY 2004-2005 biennium and any necessary budget authority 
that should be provided for each such fiscal year for those 
identified budget account.
    Section 12(b) requires the Appropriations Committees of 
each House to review the President's recommendations and 
include an assessment of those recommendations and any 
recommendations of their own in the committee's overall views 
and estimates on the President's budget which they are required 
to submit to their respective Budget Committees.
    Section 12(c)(1) requires the Budget Committees of each 
House to review the recommendations of both the President and 
the Appropriations Committees with respect to those budget 
accounts that should be funded for the biennium.
    Section 12(c)(2) requires the report of the Committee on 
the Budget of each House and the joint explanatory statement of 
the managers accompanying the budget resolution for FY 2004 to 
include an allocation to the Appropriations Committees for FY 
2005 from which the Appropriations Committee can fund certain 
accounts in the FY 2004 appropriation bills for each of the 
fiscal years in the FY 2004-2005 biennium.
    Section 12(c)(3) requires the report of the Committee on 
the Budget of each House and the joint explanatory statement of 
the managers accompanying the budget resolution for FY 2004to 
include the assumptions upon which the allocation to the Appropriations 
Committees for FY 2005 is made.
    Section 12(d)(1) directs the GAO to work with the 
Committees of Congress during the first session of 108th 
Congress to develop plans to transition program authorizations 
to a multi-year schedule.
    Section 12(d)(2) requires GAO to continue to provide 
assistance to the Congress with respect to programmatic 
oversight and in particular to assist committees in designing 
and conforming programmatic oversight procedures for the Fiscal 
Year 2005-2006 biennium.
    Section 12(e) provides for a CBO report to Congress (before 
January 15, 2004) listing all those programs and activities 
that were funded during FY 2004 with no authorization and all 
those programs and activities whose authorizations will expire 
during that fiscal year, FY 2005 and FY 2006.
    Section 12(f) requires the President's budget submission 
for FY 2005 to include an evaluation of an recommendations 
regarding the transitional biennial budget process for the 
fiscal year 2004-2005 biennium.
    Section 12(g) requires CBO to issue a report on or before 
March 31, 2004 include an evaluation of an recommendations 
regarding the transitional biennial budget process for the 
fiscal year 2004-2005 biennium.

Section 13. Effective date

    Except as provided by sections 8, 11 and 12, the Act is 
effective January 1, 2005, and applicable to budget, 
authorization and appropriations legislation for the biennium 
beginning with fiscal year 2006.

             Matters Required Under the Rules of the House


                             Committee Vote

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee Report to include for 
each record vote on a motion to report the measure or matter 
and on any amendments offered to the measure or matter, the 
total number of votes for and against, and the names of the 
Members voting for and against. No rollcall votes were 
requested during consideration of H.R. 981.

                        Committee Cost Estimate

    Clause 3(d)(2) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs that would be incurred in carrying out 
H.R. 981. However, clause 3(d)(3)(B) of that rule provides that 
this requirement does not apply when the Committee has included 
in its report a timely submitted cost estimate of the bill 
prepared by the Director of the Congressional Budget Office 
under section 402 of the Congressional Budget Act. An estimate 
prepared by the Congressional Budget Office is included below.

                  Congressional Budget Office Estimate

                                     U.S. Congress,
                               Congressional Budget Office,
                                  Washington, DC, November 7, 2001.
Hon. David Dreier,
Chairman, Committee on Rules,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 981, the Budget 
Responsibility and Efficiency Act of 2001.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Sandy Davis.
            Sincerely,
                                          Barry B. Anderson
                                    (For Dan L. Crippen, Director).
    Enclosure.

H.R. 981--Budget Responsibility and Efficiency Act of 2001

    H.R. 981 would amend the Congressional Budget and 
Impoundment Control Act of 1974, Title 5 of the U.S. Code, 
other laws, and the Rules of the House of Representatives to 
establish a biennial budget cycle for the federal government. 
The bill would revise the budget timetable, change the number 
of years covered by certain budget legislation, and make 
conforming changes in various budget rules and procedures, but 
would not directly affect spending or receipts. Thus, pay-as-
you-go procedures would not apply. The bill contains no 
intergovernmental or private-sector mandates as defined in the 
Unfunded Mandates Reform Act and would not affect the budgets 
of state, local, or tribal governments.
    H.R. 981 would establish a two-year budgeting and 
appropriations cycle. A biennium, defined in the bill as a 
period of two consecutive fiscal years beginning on October 1 
of each odd-numbered year, would become the standard fiscal 
period. The President's budget and the Congressional budget 
resolution would be conformed to a biennial framework, 
appropriation acts would be required to provide new budget 
authority for each fiscal year in the upcoming biennium, and 
authorization laws would be required to cover two or more 
fiscal years.
    The budget timetable would be changed to a biennial cycle. 
Most major budgetary actions--the President's budget 
submission, Congressional action on the budget resolution, and 
the enactment of appropriation and reconciliation legislation--
would generally occur in the first session of each Congress 
under a schedule that parallels the current annual timetable. 
If the first session followed a year in which a new President 
was elected, the bill would establish a revised budget 
timetable allowing more time for the President and the Congress 
to develop their respective budget plans. The second session 
generally would be reserved for authorization bills and 
oversight by Congressional committees.
    The bill also would conform reporting requirements under 
the Government Performance and Results Act to the new two-year 
budget cycle, and would require federal agencies to provide 
Congressional committees with additional information, as 
requested, on the programs within the committee's jurisdiction. 
The CBO Director would be required to submit quarterlybudget 
reports comparing actual spending and revenue amounts for the current 
fiscal year with the estimates for that year.
    H.R. 981 would establish a special transition period, 
during which the biennial budget cycle would be phased in over 
the 2004-2005 biennium. The bill would require the Director of 
the Office of Management and Budget, within six months of its 
enactment, to evaluate the impact of the change to a biennial 
budget cycle. It would also require the President, in his 
budget for fiscal year 2005, and the CBO Director, in a 
separate report due by March 31, 2004, to evaluate and make 
recommendations regarding the transitional biennial budget 
process for 2004-2005. The biennial budget process would take 
effect fully on January 1, 2005, for the biennium that begins 
with fiscal year 2006.
    The CBO staff contact for this estimate is Sandy Davis. 
This estimate was approved by Robert A. Sunshine, Assistant 
Director for Budget Analysis.

                   constitutional authority statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that the 
Constitutional authority for this legislation is provided in 
Article I, section 8, clause 18, which grants Congress the 
general legislative power to make all laws necessary and proper 
for carrying into execution the enumerated powers of Congress.

                       federal mandates statement

    Section 423 of the Congressional Budget Act of 1974 
requires the report of any committee on a bill or joint 
resolution that includes any Federal mandate to include 
specific information about such mandates. The Committee states 
that H.R. 981 does not include any Federal mandate.

                        preemption clarification

    Section 423 of the Congressional Budget Act of 1974 
requires the report of any committee on a bill or joint 
resolution to include a committee statement on the extent to 
which the bill or joint resolution is intended to preempt state 
or local law. The Committee states that H.R. 981 is not 
intended to preempt any state or local law.

                           oversight findings

    In compliance with clause 3(c)(1) of rule XIII and clause 
(2)(b)(1) of rule X of the Rules of the House of 
Representatives, the Committee's oversight findings and 
recommendations are reflected in the body of this report.

                       general performance goals

    In accordance with clause (3)(c)(4) of House Rule XIII, the 
goal of H.R. 981 is to improve the management of Federal 
resources by enhancing Congressional oversight of Federal 
agencies and program by reducing the time spent budgeting and 
appropriating funds; reduce time spent by Federal agencies 
preparing and justifying their annual budgets; and create a 
more stable and predictable federal budget environment that 
allows state and local governments to better plan their own 
budgets.

         Changes in Existing Law Made by the Bill, as Reported

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

                    CONGRESSIONAL BUDGET ACT OF 1974

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

                    short titles; table of contents

  Section 1. (a) * * *
  (b) Table of Contents.--

Sec. 1. Short titles; table of contents.

                 TITLE III--CONGRESSIONAL BUDGET PROCESS

Sec. 300. Timetable.
Sec. 301. [Annual] Biennial adoption of concurrent resolution on the 
          budget.
     * * * * * * *
Sec. 316. Multiyear authorizations of appropriations.
Sec. 317. Consideration of biennial appropriation bills.

           *       *       *       *       *       *       *


                        declaration of purposes

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

           *       *       *       *       *       *       *


                              definitions

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

           *       *       *       *       *       *       *

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

           *       *       *       *       *       *       *

          (11) The term ``biennium'' means the period of 2 
        consecutive fiscal years beginning on October 1 of any 
        odd-numbered year.

           *       *       *       *       *       *       *


TITLE III--CONGRESSIONAL BUDGET PROCESS

           *       *       *       *       *       *       *


                               [timetable

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

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


                               timetable


  Sec. 300. (a) In General.--Except as provided by subsection 
(b), the timetable with respect to the congressional budget 
process for any Congress (beginning with the One Hundred Ninth 
Congress) is as follows:

                      First Session

On or before:       Action to be completed:

  First Monday in FePresident submits budget recommendations............
  February 15.......Congressional Budget Office submits report to Budget 
                    Committees.
  Not later than 6 wCommittees submit views and estimates to Budget ....
                    Committees.
  April 1...........Budget Committees report concurrent resolution on ..
                    the biennial budget.
  May 15............Congress completes action on concurrent resolution .
                    on the biennial budget.
  May 15............Biennial appropriation bills may be considered in ..
                    the House.
  June 10...........House Appropriations Committee reports last biennial 
                    appropriation bill.
  June 30...........House completes action on biennial appropriation ...
                    bills.
  October 1.........Biennium begins.....................................

                      Second Session

On or before:       Action to be completed:

  February 15.......President submits budget review.....................
  Not later than 6 wCongressional Budget Office submits report to Budget 
                    Committees.
  The last day of thCongress completes action on bills and resolutions .
                    authorizing new budget authority for the succeeding 
                    biennium.
  (b) Special Rule.--In the case of any first session of 
Congress that begins in any year during which the term of a 
President (except a President who succeeds himself) begins, the 
following dates shall supersede those set forth in subsection 
(a):

                      First Session

On or before:       Action to be completed:

  First Monday in ApPresident submits budget recommendations............
  April 20..........Committees submit views and estimates to Budget ....
                    Committees.
  May 15............Budget Committees report concurrent resolution on ..
                    the biennial budget.
  June 1............Congress completes action on concurrent resolution .
                    on the biennial budget.
  June 1............Biennial appropriation bills may be considered in ..
                    the House.
  July 1............House Appropriations Committee reports last biennial 
                    appropriation bill.
  July 20...........House completes action on biennial appropriation ...
                    bills.
  October 1.........Biennium begins.....................................

   [annual] biennial adoption of concurrent resolution on the budget

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

           *       *       *       *       *       *       *

          (6) For purposes of Senate enforcement under this 
        title, outlays of the old-age, survivors, and 
        disability insurance program established under title II 
        of the Social Security Act [for the fiscal year] for 
        each fiscal year in the biennium of the resolution and 
        for each of the 4 succeeding fiscal years; and
          (7) For purposes of Senate enforcement under this 
        title, revenues of the old-age, survivors, and 
        disability insurance program established under title II 
        of the Social Security Act (and the related provisions 
        of the Internal Revenue Code of 1986)[for the fiscal 
year] for each fiscal year in the biennium of the resolution and for 
each of the 4 succeeding fiscal years.
  (b) Additional Matters in Concurrent Resolution.--The 
concurrent resolution on the budget may--
          (1) * * *

           *       *       *       *       *       *       *

          (3) require a procedure under which all or certain 
        bills or resolutions providing new budget authority or 
        new entitlement authority [for such fiscal year] for 
        either fiscal year in such biennium shall not be 
        enrolled until the Congress has completed action on any 
        reconciliation bill or reconciliation resolution or 
        both required by such concurrent resolution to be 
        reported in accordance with section 310(b);

           *       *       *       *       *       *       *

          (7) set forth procedures in the Senate whereby 
        committee allocations, aggregates, and other levels can 
        be revised for legislation if that legislation would 
        not increase the deficit, or would not increase the 
        deficit when taken with other legislation enacted after 
        the adoption of the resolution, [for the first fiscal 
        year] for each fiscal year in the biennium or the total 
        period of fiscal years covered by the resolution;

           *       *       *       *       *       *       *

  (d) Views and Estimates of Other Committees.--Within 6 weeks 
after the President submits a budget under section 1105(a) of 
title 31, United States Code (or, if applicable, as provided by 
section 300(b)), or at such time as may be requested by the 
Committee on the Budget, each committee of the House of 
Representatives having legislative jurisdiction shall submit to 
the Committee on the Budget of the House and each committee of 
the Senate having legislative jurisdiction shall submit to the 
Committee on the Budget of the Senate its views and estimates 
(as determined by the committee making such submission) with 
respect to all matters set forth in subsections (a) and (b) 
which relate to matters within the jurisdiction or functions of 
such committee. The Joint Economic Committee shall submit to 
the Committees on the Budget of both Houses its recommendations 
as to the fiscal policy appropriate to the goals of the 
Employment Act of 1946. Any other committee of the House of 
Representatives or the Senate may submit to the Committee on 
the Budget of its House, and any joint committee of the 
Congress may submit to the Committees on the Budget of both 
Houses, its views and estimates with respect to all matters set 
forth in subsections (a) and (b) which relate to matters within 
its jurisdiction or functions. Any Committee of the House of 
Representatives or the Senate that anticipates that the 
committee will consider any proposed legislation establishing, 
amending, or reauthorizing any Federal program likely to have a 
significant budgetary impact on any State, local, or tribal 
government, or likely to have a significant financial impact on 
the private sector, including any legislative proposal 
submitted by the executive branch likely to have such a 
budgetary or financial impact, shall include its views and 
estimates on that proposal to the Committee on the Budget of 
the applicable House. Each committee of the Senate or the House 
of Representatives shall review the strategic plans, 
performance plans, and performance reports, required under 
section 306 of title 5, United States Code, and sections 1115 
and 1116 of title 31, United States Code, of all agencies under 
the jurisdiction of the committee. Each committee may provide 
its views on such plans or reports to the Committee on the 
Budget of the applicable House.
  (e) Hearings and Report.--
          (1) In general.--In developing the concurrent 
        resolution on the budget referred to in subsection (a) 
        for each [fiscal year] biennium, the Committee on the 
        Budget of each House shall hold hearings and shall 
        receive testimony from Members of Congress and such 
        appropriate representatives of Federal departments and 
        agencies, the general public, and national 
        organizations as the committee deems desirable. Each of 
        the recommendations as to short-term and medium-term 
        goal set forth in the report submitted by the members 
        of the Joint Economic Committee under subsection (d) 
        may be considered by the Committee on the Budget of 
        each House as part of its consideration of such 
        concurrent resolution, and its report may reflect its 
        views thereon, including its views on how the estimates 
        of revenues and levels of budget authority and outlays 
        set forth in such concurrent resolution are designed to 
        achieve any goals it is recommending. On or before 
        April 1 of each odd-numbered year (or, if applicable, 
        as provided by section 300(b)), the Committee on the 
        Budget of each House shall report to its House the 
        concurrent resolution on the budget referred to in 
        subsection (a) for the biennium beginning on October 1 
        of that year.

           *       *       *       *       *       *       *

  (f) Achievement of Goals for Reducing Unemployment.--
          (1) If, pursuant to section 4(c) of the Employment 
        Act of 1946, the President recommends in the Economic 
        Report that the goals for reducing unemployment set 
        forth in section 4(b) of such Act be achieved in a year 
        after the close of the five-year period prescribed by 
        such subsection, the concurrent resolution on the 
        budget for the [fiscal year] biennium beginning after 
        the date on which such Economic Report is received by 
        the Congress may set forth theyear in which, in the 
opinion of the Congress, such goals can be achieved.
          (2) After the Congress has expressed its opinion 
        pursuant to paragraph (1) as to the year in which the 
        goals for reducing unemployment set forth in section 
        4(b) of the Employment Act of 1946 can be achieved, if, 
        pursuant to section 4(e) of such Act, the President 
        recommends in the Economic Report that such goals be 
        achieved in a year which is different from the year in 
        which the Congress has expressed its opinion that such 
        goals should be achieved, either in its action pursuant 
        to paragraph (1) or in its most recent action pursuant 
        to this paragraph, the concurrent resolution on the 
        budget for the [fiscal year] biennium beginning after 
        the date on which such Economic Report is received by 
        the Congress may set forth the year in which, in the 
        opinion of the Congress, such goals can be achieved.

           *       *       *       *       *       *       *

  (g) Economic Assumptions.--
          (1) It shall not be in order in the Senate to 
        consider any concurrent resolution on the budget [for a 
        fiscal year] for a biennium, or any amendment thereto, 
        or any conference report thereon, that sets forth 
        amounts and levels that are determined on the basis of 
        more than one set of economic and technical 
        assumptions.

           *       *       *       *       *       *       *


                         committee allocations

  Sec. 302. (a) Committee Spending Allocations.--
          (1) Allocation among committees.--The joint 
        explanatory statement accompanying a conference report 
        on a concurrent resolution on the budget shall include 
        an allocation, consistent with the resolution 
        recommended in the conference report, of the levels 
        [for the first fiscal year of the resolution,] for each 
        fiscal year in the biennium, for at least each of the 
        ensuing 4 fiscal years, and a total [for that period of 
        fiscal years] for all fiscal years covered by the 
        resolution (except in the case of the Committee on 
        Appropriations only [for the fiscal year of that 
        resolution] for each fiscal year in the biennium) of--
                  (A) total new budget authority; and
                  (B) total outlays;
        among each committee of the House of Representatives or 
        the Senate that has jurisdiction over legislation 
        providing or creating such amounts.

           *       *       *       *       *       *       *

  (f) Legislation Subject to Point of Order.--
          (1) In the house of representatives.--After the 
        Congress has completed action on a concurrent 
        resolution on the budget [for a fiscal year] for a 
        biennium, it shall not be in order in the House of 
        Representatives to consider any bill, joint resolution, 
        or amendment providing new budget authority for any 
        fiscal year, or any conference report on any such bill 
        or joint resolution, if--
                  (A) * * *

           *       *       *       *       *       *       *

        would cause the applicable allocation of new budget 
        authority made under subsection (a) or (b) for the 
        [first fiscal year] either fiscal year of the biennium 
        or the total of fiscal years to be exceeded.
          (2) In the senate.--After a concurrent resolution on 
        the budget is agreed to, it shall not be in order in 
        the Senate to consider any bill, joint resolution, 
        amendment, motion, or conference report that would 
        cause--
                  (A) in the case of any committee except the 
                Committee on Appropriations, the applicable 
                allocation of new budget authority or outlays 
                under subsection (a) for the [first fiscal year 
                or the total of fiscal years] each fiscal year 
                of the biennium or the total of all fiscal 
                years covered by the resolution to be exceeded; 
                or

           *       *       *       *       *       *       *

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

           *       *       *       *       *       *       *


   concurrent resolution on the budget must be adopted before budget-
                   related legislation is considered

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

           *       *       *       *       *       *       *

  (b) Exceptions in the House.--In the House of 
Representatives, subsection (a) does not apply--
          (1)(A) to any bill or joint resolution, as reported, 
        providing advance discretionary new budget authority 
        that first becomes available for the first or second 
        fiscal year after [the budget year] the biennium; or
          (B) to any bill or joint resolution, as reported, 
        first increasing or decreasing revenues in a fiscal 
        year following [the fiscal year] the biennium to which 
        the concurrent resolution applies;
          (2) after May 15 (or June 1 whenever section 300(b) 
        is applicable), to any general appropriation bill or 
        amendment thereto; or

           *       *       *       *       *       *       *

  (c) Application to Appropriation Measures in the Senate.--
          (1) In general.--Until the concurrent resolution on 
        the budget for a [fiscal year] biennium has been agreed 
        to and an allocation has been made to the Committee on 
        Appropriations of the Senate under section 302(a) for 
        that year, it shall not be in order in the Senate to 
        consider any appropriation bill or joint resolution, 
        amendment or motion thereto, or conference report 
        thereon for [that year] each fiscal year of that 
        biennium or any subsequent year.

           *       *       *       *       *       *       *


     permissible revisions of concurrent resolutions on the budget

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

 provisions relating to the consideration of concurrent resolutions on 
                               the budget

  Sec. 305. (a) Procedure in House of Representatives After 
Report of Committee; Debate.--
          (1) * * *

           *       *       *       *       *       *       *

          (3) Following the presentation of opening statements 
        on the concurrent resolution on the budget for a 
        [fiscal year] biennium by the chairman and ranking 
        minority member of the Committee on the Budget of the 
        House, there shall be a period of up to four hours for 
        debate on economic goals and policies.

           *       *       *       *       *       *       *


 house committee action on all appropriation bills to be completed by 
                                june 10

  Sec. 307. On or before June 10 of [each year] each odd-
numbered year (or, if applicable, as provided by section 
300(b), July 1), the Committee on Appropriations of the House 
of Representatives shall report [annual] biennial appropriation 
bills providing new budget authority under the jurisdiction of 
all of its subcommittees for the [fiscal year] biennium which 
begins on October 1 of [that year] each odd-numbered year.

  reports, summaries, and projections of congressional budget actions

  Sec. 308. (a) * * *

           *       *       *       *       *       *       *

  (d) Quarterly Budget Reports.--The Director of the 
Congressional Budget Office shall, as soon as practicable after 
the completion of each quarter of the fiscal year, prepare an 
analysis comparing revenues, spending, and the deficit or 
surplus for the current fiscal year to assumptions included in 
the congressional budget resolution. In preparing this report, 
the Director of the Congressional Budget Office shall combine 
actual budget figures to date with projected revenue and 
spending for the balance of the fiscal year. The Director of 
the Congressional Budget Office shall include any other 
information in this report that it deems useful for a full 
understanding of the current fiscal position of the Federal 
Government. The reports mandated by this subsection shall be 
transmitted by the Director to the Senate and House Committees 
on the Budget, and the Congressional Budget Office shall make 
such reports available to any interested party upon request.

             house approval of regular appropriation bills

  Sec. 309. [It] Except whenever section 300(b) is applicable, 
it shall not be in order in the House of Representatives to 
consider any resolution providing for an adjournment period of 
more than three calendar days during the month of July of any 
odd-numbered calendar year until the House of Representatives 
has approved [annual] biennial appropriation bills providing 
new budget authority under the jurisdiction of all the 
subcommittees of the Committee on Appropriations for the 
[fiscal year] biennium beginning on October 1 of such year. For 
purposes of this section, the chairman of the Committee on 
Appropriations of the House of Representatives shall 
periodically advise the Speaker as to changes in jurisdiction 
among its various subcommittees.

                             reconciliation

  Sec. 310. (a) Inclusion of Reconciliation Directives in 
Concurrent Resolutions on the Budget.--A concurrent resolution 
on the budget for [any fiscal year] any biennium, to the extent 
necessary to effectuate the provisions and requirements of such 
resolution, shall--
          (1) specify the total amount by which--
                  (A) new budget authority for [such fiscal 
                year] any fiscal year covered by such 
                resolution;

           *       *       *       *       *       *       *

                  (C) new entitlement authority which is to 
                become effective during [such fiscal year] any 
                fiscal year covered by such resolution; and
                  (D) credit authority for [such fiscal year] 
                any fiscal year covered by such resolution,
        contained in laws, bills, and resolutions within the 
        jurisdiction of a committee is to be changed and direct 
        that committee to determine and recommend changes to 
        accomplish a change of such total amount;

           *       *       *       *       *       *       *

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

      budget-related legislation must be within appropriate levels

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

           *       *       *       *       *       *       *


                   determinations and points of order

  Sec. 312. (a) * * *

           *       *       *       *       *       *       *

  (c) Maximum Deficit Amount Point of Order in the Senate.--It 
shall not be in order in the Senate to consider any concurrent 
resolution on the budget [for a fiscal year] for a biennium, or 
to consider any amendment to that concurrent resolution, or to 
consider a conference report on that concurrent resolution, 
if--
          (1) the level of total outlays for the [first fiscal 
        year] either fiscal year in the biennium set forth in 
        that concurrent resolution or conference report 
        exceeds; or
          (2) the adoption of that amendment would result in a 
        level of total outlays for [that fiscal year] either 
        fiscal year in the biennium that exceeds;
the recommended level of Federal revenues for [that fiscal 
year] the applicable fiscal year, by an amount that is greater 
than the maximum deficit amount, if any, specified in the 
Balanced Budget and Emergency Deficit Control Act of 1985 for 
that fiscal year.

           *       *       *       *       *       *       *



               multiyear authorizations of appropriations


  Sec. 316. (a) Point of Order.--(1)(A) It shall not be in 
order in the House of Representatives or the Senate to consider 
any measure that contains a specific authorization of 
appropriations for any purpose unless the measure includes such 
a specific authorization of appropriations for that purpose for 
not less than each fiscal year in one or more bienniums.
  (B) For purposes of this paragraph, a specific authorization 
of appropriations is an authorization for the enactment of an 
amount of appropriations or amounts not to exceed an amount of 
appropriations (whether stated as a sum certain, as a limit, or 
as such sums as may be necessary) for any purpose for a fiscal 
year.
  (2) Paragraph (1) does not apply with respect to an 
authorization of appropriations for a single fiscal year for 
any program, project, or activity if the measure containing 
that authorization includes a provision expressly stating the 
following: ``Congress finds that no authorization of 
appropriation will be required for [Insert name of applicable 
program, project, or activity] for any subsequent fiscal 
year.''.
  (b) For purposes of this section, the term ``measure'' means 
a bill, joint resolution, amendment, motion, or conference 
report.


             consideration of biennial appropriation bills


  Sec. 317. It shall not be in order in the Senate in any odd-
numbered year to consider any regular appropriation bill 
providing new budget authority or a limitation on obligations 
under the jurisdiction of the Committee on Appropriations for 
only the first fiscal year of a biennium, unless the program, 
project, or activity for which the new budget authority or 
obligation limitation is provided will require no additional 
authority beyond one year and will becompleted or terminated 
after the amount provided has been expended.

           *       *       *       *       *       *       *

                              ----------                              


RULES OF THE HOUSE OF REPRESENTATIVES, 107TH CONGRESS

           *       *       *       *       *       *       *


                                RULE X.

Organization of Committees.

           *       *       *       *       *       *       *


Additional functions of committees
  4. (a)(1)(A) The Committee on Appropriations shall, within 30 
days after the transmittal of the Budget to Congress each odd-
numbered year, hold hearings on the Budget as a whole with 
particular reference to--
          (i) * * *

           *       *       *       *       *       *       *

  (4) In the manner provided by section 302 of the 
Congressional Budget Act of 1974, the Committee on 
Appropriations (after consulting with the Committee on 
Appropriations of the Senate) shall subdivide any allocations 
made to it in the joint explanatory statement accompanying the 
conference report on such concurrent resolution, and promptly 
report the subdivisions to the House as soon as practicable 
after a concurrent resolution on the budget for a [fiscal year] 
biennium is agreed to.
  (b) The Committee on the Budget shall--
          (1) * * *
          (2) hold hearings and receive testimony from Members, 
        Senators, Delegates, the Resident Commissioner, and 
        such appropriate representatives of Federal departments 
        and agencies, the general public, and national 
        organizations as it considers desirable in developing 
        concurrent resolutions on the budget for [each fiscal 
        year] the biennium;

           *       *       *       *       *       *       *

          (5) study on a continuing basis proposals designed to 
        improve and facilitate the congressional budget 
        process, and report to the House from time to time the 
        results of such studies, together with its 
        recommendations; [and]
          (6) request and evaluate continuing studies of tax 
        expenditures, devise methods of coordinating tax 
        expenditures, policies, and programs with direct budget 
        outlays, and report the results of such studies to the 
        House on a recurring basis[.]; and
          (7) use the second session of each Congress to study 
        issues with long-term budgetary and economic 
        implications, which would include--
                  (A) hold hearings to receive testimony from 
                committees of jurisdiction to identify problem 
                areas and to report on the results of 
                oversight; and
                  (B) by January 1 of each odd-numbered year, 
                issuing a report to the Speaker which 
                identifies the key issues facing the Congress 
                in the next biennium.
  (e)(1) Each standing committee shall, in its consideration of 
all public bills and public joint resolutions within its 
jurisdiction, ensure that appropriations for continuing 
programs and activities of the Federal Government and the 
government of the District of Columbia will be made [annually] 
biennially to the maximum extent feasible and consistent with 
the nature, requirement, and objective of the programs and 
activities involved. In this subparagraph programs and 
activities of the Federal Government and the government of the 
District of Columbia includes programs and activities of any 
department, agency, establishment, wholly owned Government 
corporation, or instrumentality of the Federal Government or of 
the government of the District of Columbia.
  (2) Each standing committee shall review from time to time 
each continuing program within its jurisdiction for which 
appropriations are not made [annually] biennially to ascertain 
whether the program should be modified to provide for [annual] 
biennial appropriations.
Budget Act responsibilities
  (f)(1) Each standing committee shall submit to the Committee 
on the Budget not later than six weeks after the President 
submits his budget during each odd-numbered year, or at such 
time as the Committee on the Budget may request--
          (A) its views and estimates with respect to all 
        matters to be set forth in the concurrent resolution on 
        the budget for the ensuing [fiscal year] biennium that 
        are within its jurisdiction or functions; and
          (B) an estimate of the total amounts of new budget 
        authority, and budget outlays resulting therefrom, to 
        be provided or authorized in all bills and resolutions 
        within its jurisdiction that it intends to be effective 
        during [that fiscal year] each fiscal year in such 
        ensuing biennium.

           *       *       *       *       *       *       *

Permanent Select Committee on Intelligence
  11. (a) * * *

           *       *       *       *       *       *       *

  (i) Subject to the Rules of the House, funds may not be 
appropriated for a fiscal year, with the exception of a bill or 
joint resolution continuing appropriations, or an amendment 
thereto, or a conference report thereon, to, or for use of, a 
department or agency of the United States to carry out any of 
the following activities, unless the funds shall previously 
have been authorized by a bill or joint resolution passed by 
the House [during the same or preceding fiscal year] to carry 
out such activity for such fiscal year:
          (1) * * *

           *       *       *       *       *       *       *


                               RULE XIII.


Calendars and Committee Reports.

           *       *       *       *       *       *       *


Content of reports
  3. (a) * * *

           *       *       *       *       *       *       *

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

           *       *       *       *       *       *       *

Privileged reports, generally
  5. (a) The following committees shall have leave to report at 
any time on the following matters, respectively:
          (1) The Committee on Appropriations, on general 
        appropriation bills and on joint resolutions continuing 
        appropriations for a [fiscal year after September 15 in 
        the preceding fiscal year] biennium after September 15 
        of the year in which such biennium begins.

           *       *       *       *       *       *       *


RULE XXI.

           *       *       *       *       *       *       *



                     Restrictions on Certain Bills.

General appropriation bills and amendments
  2. (a)(1) * * *

           *       *       *       *       *       *       *

  (3)(A) Except as provided by subdivision (B), an 
appropriation may not be reported in a general appropriation 
bill (other than a supplemental appropriation bill), and may 
not be in order as an amendment thereto, unless it provides new 
budget authority or establishes a level of obligations under 
contract authority for each fiscal year of a biennium.
  (B) Subdivision (A) does not apply with respect to an 
appropriation for a single fiscal year for any program, 
project, or activity if the bill or amendment thereto 
containing that appropriation includes a provision expressly 
stating the following: ``Congress finds that no additional 
funding beyond one fiscal year will be required and the [Insert 
name of applicable program, project, or activity] will be 
completed or terminated after the amount provided has been 
expended.''.
  (C) For purposes of paragraph (b), the statement set forth in 
subdivision (B) with respect to an appropriation for a single 
fiscal year for any program, project, or activity may be 
included in a general appropriation bill or amendment thereto.

           *       *       *       *       *       *       *


                               RULE XXII.

House and Senate Relations.

           *       *       *       *       *       *       *


  5. (a) * * *
  (b) The managers on the part of the House may not agree to a 
Senate amendment described in paragraph (a) that--
          (1) would violate clause 2(a)(1) [or (c)] or (3) or 
        2(c) of rule XXI if originating in the House; or

           *       *       *       *       *       *       *

                              ----------                              


TITLE 31, UNITED STATES CODE

           *       *       *       *       *       *       *


SUBTITLE II--THE BUDGET PROCESS

           *       *       *       *       *       *       *


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

Sec. 1101. Definitions

  In this chapter--
          (1) * * *

           *       *       *       *       *       *       *

          (3) ``biennium'' has the meaning given to such term 
        in paragraph (13) of section 3 of the Congressional 
        Budget and Impoundment Control Act of 1974 (2 U.S.C. 
        622(13)).

           *       *       *       *       *       *       *


Sec. 1105. Budget contents and submission to Congress

  [(a) On or after the first Monday in January but not later 
than the first Monday in February of each year the President 
shall submit a budget of the United States Government for the 
following fiscal year. Each budget shall include a budget 
message and summary and supporting information. The President 
shall include in each budget the following:]
  (a) On or before the first Monday in February of each odd-
numbered year (or, if applicable, as provided by section 300(b) 
of the Congressional Budget Act of 1974), beginning with the 
One Hundred Ninth Congress, the President shall transmit to the 
Congress, the budget for the biennium beginning on October 1 of 
such calendar year. The budget transmitted under this 
subsection shall include a budget message and summary and 
supporting information. The President shall include in each 
budget the following:
          (1) * * *

           *       *       *       *       *       *       *

          (5) except as provided in subsection (b) of this 
        section, estimated expenditures and proposed 
        appropriations the President decides are necessary to 
        support the Government in [the fiscal year for which 
        the budget is submitted and the 4 fiscal years after 
        that year] each fiscal year in the biennium for which 
        the budget is submitted and in the succeeding 4 years.
          (6) estimated receipts of the Government in [the 
        fiscal year for which the budget is submitted and the 4 
        fiscal years after that year] each fiscal year in the 
        biennium for which the budget is submitted and in the 
        succeeding 4 years under--
                  (A) * * *

           *       *       *       *       *       *       *

          (9) balanced statements of the--
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) estimated condition of the Treasury at 
                the end of [the fiscal year] each fiscal year 
                in the biennium for which the budget is 
                submitted if financial proposals in the budget 
                are adopted.

           *       *       *       *       *       *       *

          (12) for each proposal in the budget for legislation 
        that would establish or expand a Government activity or 
        function, a table showing--
                  (A) the amount proposed in the budget for 
                appropriation and for expenditure because of 
                the proposal in [the fiscal year] each fiscal 
                year in the biennium for which the budget is 
                submitted; and

           *       *       *       *       *       *       *

          (13) an allowance for additional estimated 
        expenditures and proposed appropriations for [the 
        fiscal year] each fiscal year in the biennium for which 
        the budget is submitted.
          (14) an allowance for unanticipated uncontrollable 
        expenditures for [that year] each fiscal year in the 
        biennium for which the budget is submitted.

           *       *       *       *       *       *       *

          (16) the level of tax expenditures under existing law 
        in the tax expenditures budget (as defined in section 
        3(a)(3) of the Congressional Budget Act of 1974 (2 
        U.S.C. 622(a)(3)) for [the fiscal year] each fiscal 
        year in the biennium for which the budget is submitted, 
        considering projected economic factors and changes in 
        the existing levels based on proposals in the budget.
          (17) information on estimates of appropriations for 
        [the fiscal year following the fiscal year] each fiscal 
        year in the biennium following the biennium for which 
        the budget is submitted for grants, contracts, and 
        other payments under each program for which there is an 
        authorization of appropriations for [that following 
        fiscal year] each such fiscal year when the 
        appropriations are authorized to be included in an 
        appropriation law for the [fiscal year before the 
        fiscal year] biennium before the biennium in which the 
        appropriation is to be available for obligation.
          (18) a comparison of the total amount of budget 
        outlays for [the prior fiscal year,] each of the 2 most 
        recently completed fiscal years, estimated in the 
        budget submitted [for that year] with respect to those 
        fiscal years, for each major program having relatively 
        uncontrollable outlays with the total amount of outlays 
        for that program [in that year] in those fiscal years.
          (19) a comparison of the total amount of receipts for 
        [the prior fiscal year] each of the 2 most recently 
        completed fiscal years, estimated in the budget 
        submitted [for that year] with respect to those fiscal 
        years, with receipts received [in that year] in those 
        fiscal years, and for each major source of receipts, a 
        comparison of the amount of receipts estimated in that 
        budget with the amount of receipts from that source [in 
        that year] in those fiscal years.

           *       *       *       *       *       *       *

          (28) [beginning with fiscal year 1999, a] beginning 
        with fiscal year 2006, a biennial Federal Government 
        performance plan for the overall budget as provided for 
        under section 1115.
  (b) Estimated expenditures and proposed appropriations for 
the legislative branch and the judicial branch to be included 
in each budget under subsection (a)(5) of this section shall be 
submitted to the President before October 16 of [each year] 
each even-numbered year and included in the budget by the 
President without change.

           *       *       *       *       *       *       *

  (c) The President shall recommend in the budget appropriate 
action to meet an estimated deficiency when the estimated 
receipts for [the fiscal year for] each fiscal year in the 
biennium for which the budget is submitted (under laws in 
effect when the budget is submitted) and the estimated amounts 
in the Treasury at the end of the current fiscal year available 
for expenditure in [the fiscal year for] each fiscal year of 
the biennium, as the case may be, which the budget is 
submitted, are less than the estimated expenditures for [that 
year] for each year of the biennium. The President shall make 
recommendations required by the public interest when the 
estimated receipts and estimated amounts in the Treasury are 
more than the estimated expenditures.

           *       *       *       *       *       *       *

  (e)(1) The President shall submit with materials related to 
each budget transmitted under subsection (a) on or after 
January 1, 1985, an analysis for the [ensuing fiscal year] 
biennium to which such budget relates that shall identify 
requested appropriations or new obligational authority and 
outlays for each major program that may be classified as a 
public civilian capital investment program and for each major 
program that may be classified as a military capital investment 
program, and shall contain summaries of the total amount of 
such appropriations or new obligational authority and outlays 
for public civilian capital investment programs and summaries 
of the total amount of such appropriations or newobligational 
authority and outlays for military capital investment programs. In 
addition, the analysis under this paragraph shall contain--
          (A) * * *

           *       *       *       *       *       *       *


Sec. 1106. Supplemental budget estimates and changes

  (a) Before July 16 of each year and before February 15 of 
each even numbered-year, the President shall submit to Congress 
a supplemental summary of the budget for the [fiscal year] 
biennium for which the budget is submitted under section 
1105(a) of this title. The summary shall include--
          (1) for [that fiscal year] each fiscal year in such 
        biennium--
                  (A) * * *

           *       *       *       *       *       *       *

          (2) for the [4 fiscal years following the fiscal 
        year] 4 fiscal years following the biennium for which 
        the budget is submitted, information on estimated 
        expenditures for programs authorized to continue in 
        future years, or that are considered mandatory, under 
        law; and
          (3) for future fiscal years, information on estimated 
        expenditures of balances carried over from the [fiscal 
        year] biennium for which the budget is submitted.
  (b) Before July 16 of each year and before February 15 of 
each even numbered-year, the President shall submit to Congress 
a statement of changes in budget authority requested, estimated 
budget outlays, and estimated receipts for [the fiscal year] 
each fiscal year in the biennium for which the budget is 
submitted (including prior changes proposed for the executive 
branch of the Government) that the President decides are 
necessary and appropriate based on current information. The 
statement shall include the effect of those changes on the 
information submitted under section 1105(a)(1)-(14) and (b) of 
this title and shall include supporting information as 
practicable. The statement submitted before July 16 may be 
included in the information submitted under subsection (a)(1) 
of this section.

           *       *       *       *       *       *       *


Sec. 1109. Current programs and activities estimates

  (a) [On or before the first Monday after January 3 of each 
year (on or before February 5 in 1986)] At the same time the 
budget required by section 1105 is submitted for a biennium, 
the President shall submit to both Houses of Congress the 
estimated budget outlays and proposed budget authority that 
would be included in the budget for [the following fiscal year] 
each fiscal year of such period if programs and activities of 
the United States Government were carried on during that year 
at the same level as the current fiscal year without a change 
in policy. The President shall state the estimated budget 
outlays and proposed budget authority by function and 
subfunction under the classifications in the budget summary 
table under the heading ``Budget Authority and Outlays by 
Function and Agency'', by major programs in each function, and 
by agency. The President also shall include a statement of the 
economic and program assumptions on which those budget outlays 
and budget authority are based, including inflation, real 
economic growth, and unemployment rates, program caseloads, and 
pay increases.
  (b) The Joint Economic Committee shall review the estimated 
budget outlays and proposed budget authority and submit an 
economic evaluation of the budget outlays and budget authority 
to the Committees on the Budget of both Houses before [March 1 
of each year] within 6 weeks of the President's budget 
submission for each odd-numbered year (or, if applicable, as 
provided by section 300(b) of the Congressional Budget Act of 
1974).

Sec. 1110. Year-ahead requests for authorizing legislation

  A request to enact legislation authorizing new budget 
authority to continue a program or activity for a fiscal year 
shall be submitted to Congress before [May 16] March 31 of the 
[year before the year in which the fiscal year begins] calendar 
year preceding the calendar year in which the biennium begins. 
If a new program or activity will continue for more than one 
year, the request must be submitted for at least the first and 
2d fiscal years.

           *       *       *       *       *       *       *


Sec. 1115. Performance plans

  (a) In carrying out the provisions of [section 1105(a)(29)] 
section 1105(a)(28), the Director of the Office of Management 
and Budget shall require each agency to prepare [an annual] a 
biennial performance plan covering each program activity set 
forth in the budget of such agency. Such plan shall--
          (1) establish performance goals to define the level 
        of performance to be achieved by a program activity for 
        both years 1 and 2 of the biennial plan;

           *       *       *       *       *       *       *

          (5) provide a basis for comparing actual program 
        results with the established performance goals; [and]
          (6) describe the means to be used to verify and 
        validate measured values[.]; and
          (7) cover each fiscal year of the biennium beginning 
        with the first fiscal year of the next biennial budget 
        cycle.

           *       *       *       *       *       *       *

  (d) An agency may submit with its [annual] biennial 
performance plan an appendix covering any portion of the plan 
that--
          (1) * * *

           *       *       *       *       *       *       *

  (f) For purposes of this section and sections 1116 through 
1119, and sections 9703 and 9704 the term--
          (1) * * *

           *       *       *       *       *       *       *

          (6) ``program activity'' means a specific activity or 
        project as listed in the program and financing 
        schedules of the [annual] biennial budget of the United 
        States Government; and

           *       *       *       *       *       *       *


SUBTITLE VI--MISCELLANEOUS

           *       *       *       *       *       *       *


CHAPTER 97--MISCELLANEOUS

           *       *       *       *       *       *       *



Sec. 9703. Managerial accountability and flexibility

  (a) Beginning with fiscal year 1999, the performance plans 
required under section 1115 may include proposals to waive 
administrative procedural requirements and controls, including 
specification of personnel staffing levels, limitations on 
compensation or remuneration, and prohibitions or restrictions 
on funding transfers among budget object classification 20 and 
subclassifications 11, 12, 31, and 32 of each [annual] budget 
submitted under section 1105, in return for specific individual 
or organization accountability to achieve a performance goal. 
In preparing and submitting the performance plan under [section 
1105(a)(29)] section 1105(a)(28), the Director of the Office of 
Management and Budget shall review and may approve any proposed 
waivers. A waiver shall take effect at the beginning of the 
fiscal year for which the waiver is approved.

           *       *       *       *       *       *       *

  (e) A waiver shall be in effect for [one or] two years as 
specified by the Director of the Office of Management and 
Budget in approving the waiver. A waiver may be renewed for [a 
subsequent year] for a subsequent 2-year period. After a waiver 
has been in effect for [three] four consecutive years, the 
performance plan prepared under section 1115 may propose that a 
waiver, other than a waiver of limitations on compensation or 
remuneration, be made permanent.

           *       *       *       *       *       *       *

                              ----------                              


               SECTION 105 OF TITLE 1, UNITED STATES CODE


[Sec. 105. Title of appropriation Acts

  [The style and title of all Acts making appropriations for 
the support of Government shall be as follows: ``An Act making 
appropriations (here insert the object) for the year ending 
September 30 (here insert the calendar year).''.]

Sec. 105. Title and style of appropriations Acts

  (a) The style and title of all Acts making appropriations for 
the support of the Government shall be as follows: ``An Act 
making appropriations (here insert the object) for each fiscal 
year in the biennium of fiscal years (here insert the fiscal 
years of the biennium).''.
  (b) All Acts making regular appropriations for the support of 
the Government shall be enacted for a biennium and shall 
specify the amount of appropriations provided for each fiscal 
year in such period.
  (c) For purposes of this section, the term ``biennium'' has 
the same meaning as in section 3(11) of the Congressional 
Budget and Impoundment Control Act of 1974 (2 U.S.C. 622(11)).
                              ----------                              


               SECTION 306 OF TITLE 5, UNITED STATES CODE

Sec. 306. Strategic plans

  (a) No later than September 30, [1997] 2003, the head of each 
agency shall submit to the Director of the Office of Management 
and Budget and to the Congress a strategic plan for program 
activities. Such plan shall contain--
          (1) * * *

           *       *       *       *       *       *       *

  (b) The strategic plan shall cover a period of not less than 
[five years forward] six years forward from the fiscal year in 
which it is submitted. The strategic plan shall be updated and 
revised [at least every three years, except that the strategic 
plan for the Department of Defense shall be updated and revised 
at least every four years.] at least every 4 years, except that 
strategic plans submitted by September 30, 2003, shall be 
updated and revised by September 30, 2006.
  (c) The performance plan required by section 1115 of title 31 
shall be consistent with the agency's strategic plan. A 
performance plan may not be submitted for a fiscal year not 
covered by a current strategic plan under this section 
including a strategic plan submitted by September 30, 2003, 
meeting the requirements of subsection (a).

           *       *       *       *       *       *       *

                              ----------                              


TITLE 39, UNITED STATES CODE

           *       *       *       *       *       *       *


PART III--MODERNIZATION AND FISCAL ADMINISTRATION

           *       *       *       *       *       *       *


CHAPTER 28--STRATEGIC PLANNING AND PERFORMANCE MANAGEMENT

           *       *       *       *       *       *       *


Sec. 2802. Strategic plans

  (a) No later than September 30, [1997] 2003, the Postal 
Service shall submit to the President and the Congress a 
strategic plan for its program activities. Such plan shall 
contain--
          (1) * * *

           *       *       *       *       *       *       *

  (b) The strategic plan shall cover a period of not less than 
[five] six years forward from the fiscal year in which it is 
submitted, and shall be updated and revised [at least every 
three years] at least every 4 years except that strategic plans 
submitted by September 30, 2003, shall be updated and revised 
by September 30, 2006.
  (c) The performance plan required under section 2803 shall be 
consistent with the Postal Service's strategic plan. A 
performance plan may not be submitted for a fiscal year not 
covered by a current strategic plan under this section 
including a strategic plan submitted by September 30, 2003, 
meeting the requirements of subsection (a).

           *       *       *       *       *       *       *


Sec. 2803. Performance plans

  (a) The Postal Service shall prepare [an annual] a biennial 
performance plan covering each program activity set forth in 
the Postal Service budget, which shall be included in the 
comprehensive statement presented under section 2401(g) of this 
title. Such plan shall--
          (1) establish performance goals to define the level 
        of performance to be achieved by a program activity for 
        both years 1 and 2 of the biennial plan;

           *       *       *       *       *       *       *

          (5) provide a basis for comparing actual program 
        results with the established performance goals; [and]
          (6) describe the means to be used to verify and 
        validate measured values[.]; and
          (7) cover each fiscal year of the biennium beginning 
        with the first fiscal year of the next biennial budget 
        cycle.

           *       *       *       *       *       *       *


                            DISSENTING VIEWS

    The Rules Committee has, over at least the past 25 years, 
examined the federal budget process time and again in what now 
seems to be a biennial ritual. During that time, many, both in 
and outside the Congress have complained that the existing 
budget process does not work, yet no major overhaul of the 
fundamental process has ever been enacted. The Congress has 
tinkered around the edges, has enacted major limits on spending 
and overspending, but has never successfully fashioned a 
complete package of reforms that has met the approval of both 
houses. Yet, during those years and in spite of the complaints 
about the inefficiencies of the system, the work of the 
Congress has gone on as required by the Constitution and the 
1974 Congressional Budget Act. Budgets have been enacted, 
committees have conducted oversight, and appropriations bills 
have been sent to the President.
    The Congressional Budget and Impoundment Act of 1974 itself 
came about as a result of what was then an increasingly 
inefficient process that ceded too much spending decision-
making authority to the Executive. The Act was envisioned as a 
means to enable the Congress to more efficiently make budget 
decisions by requiring the timely enactment of authorizations 
for federal programs, passage of a budget resolution which 
would outline the spending priorities for the coming year based 
on those authorizations, and enactment of appropriations acts 
which would fund them. The Act was also designed to take back 
control of the Constitutionally-mandated power of the purse 
responsibilities of the Congress by requiring that the 
Executive submit to Congress, for its approval, any proposed 
rescission of spending authority.
    The Act did not, and could not, anticipate the economic and 
budgetary rollercoaster of the 1980's, nor could it anticipate 
the change in the political dynamics that took place during 
those years. The first change in the 1974 Act came about as a 
result of the soaring deficits of the early 1980's and the 
desire of the Congress to gain a measure of control over its 
spending. The Balanced Budget and Emergency Deficit Control Act 
of 1985 (Gramm-Rudman-Hollings) changed the process by 
establishing deficit targets for six fiscal years beginning in 
FY 1986 and created a new budget tool known as sequestration. 
Sequestration was designed to cut spending across-the-board 
when total spending exceeded those deficit targets set in law. 
Gramm-Rudman Hollings did not, however, make other major 
procedural changes in the budget process and it kept in place 
the annual process of appropriating funds for the government. 
Ultimately, the Congress, working with the Executive in two 
succeeding Administrations, made budgetary choices and 
decisions that led to the reappearance of budget surpluses 
which, until this summer, seemed to stretch far into the 
future.
    The notion of changing the current budget and 
appropriations process from an annual cycle to a biennial cycle 
is not new and, in fact, the first proposal to move to a two-
year cycle was introduced in 1977. Since then, over 60 
proposals to move to biennial budgeting have been introduced. 
In the 106th Congress, an amendment offered by the Chairman of 
this Committee to wide-ranging budget process reform bill 
failed by only 16 votes. It is obvious many Members of Congress 
genuinely feel that a two-year budget cycle is preferable to 
the current process. Biennial budgeting, in their view, would 
reduce the amount of time dedicated to making budget decisions 
which would result in an increase in the amount of time 
dedicated to oversight of the programs those budgets fund. They 
argue that a biennial budget would lead to better management of 
federal programs because time would be freed on the 
Congressional calendar for the consideration of authorization 
legislation. Supporters of biennial budgeting claim it is a 
more efficient and less cumbersome process, that it would 
result in a more thoughtful decision-making process, and that 
it would force Congress to be more careful in its spending 
habits. We agree that these goals are worthy, but disagree that 
a two-year cycle would ensure they would be met.
    In fact, we believe a two-year budget cycle would seriously 
undermine the ability of the Congress to control federal 
spending. We submit that to operate under a biennial budget is 
to operate under a budget framework that depends upon an 
endless series of supplemental spending bills. Those 
supplemental bills might or might not adhere to a spending 
framework adopted one or two years before and thus pose a 
threat to any sort of fiscal discipline that proponents of this 
budget scheme say would be enhanced in a two-year cycle. This, 
we believe, is good reason for fiscal conservatives to oppose 
this scheme. We can envision that two-year appropriations will 
have to build in additional spending in anticipation of 
unforeseen future events, yet those funds will more than likely 
not sufficiently cover the myriad of events that could occur 
over a two year period. Experience and academic research 
conform our common sense intuition: states with biennial 
budgets invariably spend more (per capita per year) than do 
states with annual budgets. A lot can happen in two years and 
we submit it would be far better to plan 12 months out rather 
24 or 28 months out.
    In addition, we believe biennial budgeting would, in fact, 
diminish rather than enhance the oversight of federal programs. 
During the round of budget process reform hearings in early 
2000, GAO Associate Director Susan Irving testified before this 
Committee and said, ``A two-year appropriation cycle would 
change--and could lessen--congressional influence over program 
and spending matters, since the process would afford fewer 
scheduled opportunities to affect agency programs and 
budgets.'' We concur that biennial budgeting would weaken 
rather than strengthen Congressional control over the 
administration of federal programs because agencies and 
departments would not be subjected to an annual accounting on 
the Hill. We would like to remind this Committee of an argument 
in support of this position made to the Committee during those 
hearings. Rep. Dave Obey (D-WI), who serves this institution as 
the Ranking Member of the Committee on Appropriations and who 
has some experience dealing with Executive branch agencies and 
department personnel, both political and career, said on 
February 19, 2000:

          The fact that proponents of this legislation have not 
        placed in perspective is that there are numerous 
        agencies in this government that are not even 
        responsive to their own appointed leadership. They are 
        even less responsive to departmental management or the 
        White House and still less responsive to the Congress 
        and this proposition will make matters worse. The 
        healthiest single event that occurs in this town each 
        year is the annual budget review. It is the one moment 
        in time when many senior program managers are 
        confronted with the possibility that they were not 
        ordained by God to set government policies on their 
        own. Removing this requirement will affect not only our 
        ability to ensure that laws are fully and faithfully 
        executed, it also diminishes the ability of House 
        Members to effectively represent and advocate for their 
        constituents.

    We heartily concur with proponents of biennial budgeting 
that committees other than the Appropriations Committee must 
strive to fully examine the programs under their jurisdiction 
in order to hold the Executive accountable. But we do not 
understand how giving the Executive branch a biennial pass on 
answering questions posed to them by the very committees who 
write their checks will ensure that the programs and activities 
administered by the self-same Executive are ``fully and 
faithfully executed.'' Again, we submit a lot can happen in two 
years and that the Congress has a Constitutional responsibility 
to ask questions about money, management, and administration on 
a regular, ongoing basis.
    There is nothing in either law or in the process that 
hinders the ability of the committees of the Congress to 
conduct oversight during any one Session of a Congress. Nor is 
there really any procedural reason why authorization 
legislation cannot move through the system in a timely manner. 
What stands in the way of the conduct of these activities has 
been, and will most likely continue to be, a political problem 
rather than a procedural problem. Authorizations are not 
enacted because agreement cannot be reached about their scope 
and content, not because there isn't time on the floor. In 
fact, this Committee often limits debate and amendments in 
order to assure that the House can meet a two and one half day 
a week legislative schedule. There may have been limited 
oversight of federal programs but we propose that it has been 
because committee chairs have been too busy pursuing 
ideological agendas to focus attention on the work that should 
fall within the purview of their committees. It is a lack of 
political will rather than procedural roadblocks that has kept 
the Congress from meeting its responsibilities in this area. We 
cannot agree that moving to a two-year budget cycle will give 
the Congress any more political will to resolve these issues 
than it has now.
    We would like to return to the point that a lot can happen 
in two years that no one, not even with the collective wisdom 
of Congress, can safely predict. In fact, a lot can happen in a 
day. If the tragic and horrific events of September 11 do not 
point to how dangerous it can be to make plans two years in 
advance, then perhaps the disappearing surpluses of September 
10 might bolster our argument. Formulating a budget for the 
programs and activities of the federal government up to 28 
months before the beginning of a fiscal year seems to defy 
logic. As we have seen, decisions can be outdated in a moment. 
How this Congress could have anticipated the need 28 months ago 
to help rebuild the southern end of Manhattan amidst a 
recession defies reason. How the Congress could have foreseen 
in May that the Federal Reserve would be cutting interest rates 
to 2 percent in order to stave off the worst effects of an 
economic slowdown complicated by a war of indeterminate scope 
and determination is also impossible to comprehend.
    On Monday, October 29, the Director of the Office of 
Management and Budget, Mitch Daniels, issued a statement in 
which he said ``Circumstances have changed radically.'' The 
statement was issued in response to OMB's finding that the 
total surplus for Fiscal Year 2001 is more than $30 billion 
less than what was predicted on September 26 and less than half 
the estimate made when the Administration released its budget 
last Spring. Yes indeed, circumstances have changed radically. 
We believe it is the role and responsibility of the Congress to 
be able to respond to such dramatic changes in an effective and 
expeditious manner that does not shortchange the Nation's 
pressing needs as well as its long-term priorities. We strongly 
believe it is critical that the Congress be able to respond to 
the crisis at hand, a crisis none of us ever wanted, much less 
ever anticipated. In September, shortly after the attacks on 
the World Trade Center and the Pentagon, this Congress passed a 
$40 billion supplemental to provide the money needed to 
immediately respond to the crisis. It is impossible to predict 
what further funding will be required to help rebuild the 
shattered lives created by that attack, nor is it possible to 
predict what will be required to provide our military with the 
funds needed to conduct the war that has ensued from the attack 
or to ensure that our bridges, airports, seaports and harbors, 
information systems, and health systems and citizens are safe 
and can be protected from an enemy operating in the shadows.
    It seems only logical to us that next Spring the Congress 
must fashion a new budget resolution that takes into account 
the long-term effects of September 11, the fact that the U.S. 
economy is in a recession, and the fact that there are still 
pressing needs in our country that need to be addressed. We are 
at a loss to explain how the Congress might have done this a 
year ago. It is clear that a budget prepared two and a half 
years ago could not have anticipated the events of September 11 
or our response to them. But that is also true of a budget 
prepared two and a half months ago. The real issue is the 
difficulty of preparing a two year budget after September 11.
    The concept of biennial budgeting has been examined at some 
length over any number of years, yet we have seen no really 
convincing argument that would change our view that a wholesale 
change to biennial budgeting is a prudent course of action. We 
see the current proposal as a proposal to effect change for the 
sake of change rather than furthering a responsible budget 
framework. We see the current proposal as one that has little 
regard for the complex problems facing this nation as we go to 
war against terrorism, as we seek to protect the American 
public from dangers on our own shores, and as we do this in the 
midst of a recessionary economy. For the reasons enumerated 
above, as well as in previous dissenting views filed in 
preceding committee reports, we urge the defeat of this 
proposal.

                                   Martin Frost.
                                   Louise Slaughter.
                                   Alcee L. Hastings.

                                
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