[House Report 107-26]
[From the U.S. Government Publishing Office]



107th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES                 
 lst Session                                                     107-26
_______________________________________________________________________

                                     

                                                  Union Calendar No. 17



                         CONCURRENT RESOLUTION

                         ON THE BUDGET--FISCAL

                               YEAR 2002

                               __________

                              R E P O R T

                                 of the

                        COMMITTEE ON THE BUDGET

                        HOUSE OF REPRESENTATIVES

                              to accompany

                            H. Con. Res. 83

ESTABLISHING THE CONGRESSIONAL BUDGET FOR THE UNITED STATES GOVERNMENT 
FOR FISCAL YEAR 2002, REVISING THE CONGRESSIONAL BUDGET FOR THE UNITED 
       STATES GOVERNMENT FOR FISCAL YEAR 2001, AND SETTING FORTH 
APPROPRIATE BUDGETARY LEVELS FOR EACH OF FISCAL YEARS 2003 THROUGH 2011

                             together with

                             MINORITY VIEWS




 March 23, 2001.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed


                            C O N T E N T S

                                                                   Page
Introduction.....................................................     3
Economic Assumptions.............................................     5
    Labor Productivity Trends (Table E1).........................     7
    Economic Assumptions of the Budget Resolution (Table E2).....     7
    Comparison of Economic Assumptions (Table E3)................     8
Debt Reduction...................................................     9
Revenue (Including Total Revenue Table)..........................11, 12
    Comparison of Total Budget Revenues for President's Request 
      and Committee Recommendation (Table R1)....................    13
    Comparison of On-Budget Revenues for President's Budget and 
      Committee Recommendation (Table R2)........................    14
    CBO Baseline Revenues by Source, in Billions of Dollars, 
      Under Past and Current Law (Table R3)......................    15
    CBO Baseline Revenues by Source, as Percent of GDP, Under 
      Past and Current Law (Table R4)............................    15
    Comparison of Total Budget Revenues for CBO Baseline and 
      Committee Recommendation (Table R5)........................    16
    Comparison of Total Budget Revenues, as Percent of GDP, for 
      CBO Baseline and Committee Recommendation (Table R6).......    17
    Tax Expenditure Estimates by Function (Table R7).............    18
Function-by-Function Presentation:
    050 National Defense.........................................    27
    150 International Affairs....................................    29
    250 Science, Space, and Technology...........................    31
    270 Energy...................................................    33
    300 Natural Resources and Environment........................    35
    350 Agriculture..............................................    37
    370 Commerce and Housing Credit..............................    39
    400 Transportation...........................................    41
    450 Community and Regional Development.......................    43
    500 Education, Training, Employment, and Social Services.....    44
    550 Health...................................................    48
    570 Medicare.................................................    50
    600 Income Security..........................................    53
    650 Social Security..........................................    55
    700 Veterans Benefits........................................    57
    750 Administration of Justice................................    59
    800 General Government.......................................    60
    900 Net Interest.............................................    61
    920 Allowances...............................................    62
    950 Undistributed Offsetting Receipts........................    63
Summary Tables:
    Budget Resolution Total Spending and Revenues (Table S1).....    64
    Budget Resolution Discretionary Spending (Table S2)..........    67
    Budget Resolution Mandatory Spending (Table S3)..............    70
    Committee Recommendation Minus the President's Request: Total 
      Spending and Revenues (Table S4)...........................    73
    Committee Recommendation Compared to 2001: Total Spending and 
      Revenues (Table S5)........................................    76
    Committee Recommendation Compared to 2001: Total Spending and 
      Revenues--Percentage Change (Table S6).....................    79
Reconciliation...................................................    83
    Reconciliation by House Committee (Table C1).................    85
Section-by-Section Description...................................    87
The Congressional Budget Process.................................    95
    Appropriations Committee.....................................    95
    Authorizing Committees.......................................    96
    Enforcement..................................................    97
    Appropriations Committee Allocation (Table A1)...............    97
    Authorizing Committee Allocations (Table A2).................    98
Enforcing the Budget Resolution..................................   103
Statutory Controls Over the Budget...............................   105
    Discretionary Spending Limits................................   105
    Pay-As-You-Go Requirements...................................   106
Votes of the Committee...........................................   109
Additional Report Language.......................................   135
Other Matters to be Discussed Under the Rules of the House.......   141
    Committee on the Budget Oversight Findings and 
      Recommendations............................................   141
    New Budget Authority, Entitlement Authority, and Tax 
      Expenditures...............................................   141
    General Performance Goals and Objectives.....................   141
    Views of Committee Members...................................   141
    Additional, Supplemental, Dissenting, and Minority Views.....   142
Appendix--The Concurrent Resolution on the Budget................   155
  

                                                                       
107th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     107-26

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



 
         CONCURRENT RESOLUTION ON THE BUDGET--FISCAL YEAR 2002

                                _______
                                

 March 23, 2001.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

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

                              R E P O R T

                             together with

                             MINORITY VIEWS

                     [To accompany H. Con. Res. 83]
                       SECURING AMERICA'S FUTURE

                              ----------                              


                 introduction to the budget resolution

    The peace and prosperity ardently sought by past 
generations are at hand. They have been won by vision and 
sacrifice, and now provide extraordinary hope and opportunity. 
This is the time to secure those benefits, and build on them 
for the future. That is the goal of this budget.
    But budgeting is still about setting priorities. Even in an 
age when taxpayers are providing Government far more money than 
it needs, Government retains an obligation to manage those 
funds in the best interest of the Nation. Resources available 
to the Government may be ample--but they are not infinite.
    With that in mind, this budget resolution supports the 
priorities clearly defined by the President. They are the 
following:

   Paying Down the Debt. The budget eliminates $2.3 
        trillion of public debt by 2011. This will reduce the 
        Government's public debt to 7 percent of gross domestic 
        product [GDP], its lowest level in more than 80 years.

   Tax Reduction for Every Taxpayer. The budget allows 
        taxpayers to keep roughly one-fourth of projected 
        surpluses over the next 10 years (29 percent of $5.61 
        trillion) through lower tax bills for all taxpayers. 
        Overall, taxpayers will keep $1.62 trillion more of 
        their own earnings. Key tax reduction measures 
        anticipated by the budget are retroactive marginal rate 
        reduction (as already passed by the House), doubling of 
        the child tax credit, marriage penalty relief, and 
        death tax relief.

   Education Reform. The budget assumes the President's 
        ``No Child Left Behind'' education reform strategy, 
        which emphasizes achievement and accountability. The 
        budget also creates a $1.25-billion reserve fund for 
        the Individuals With Disabilities Education Act [IDEA] 
        Part B grants to States.

   Strengthening National Defense. The budget provides 
        an increase of $14.3 billion, or 4.6 percent, 
        principally to address immediate needs of the Nation's 
        military personnel--including pay, housing, and health 
        benefits. The budget also provides for additional 
        funds, as may be needed, following the administration's 
        review of future defense needs.

   Protecting and Modernizing Social Security. The 
        budget preserves ever dollar of Social Security funds 
        for Social Security. It also supports the President's 
        call for Social Security reform that preserves the 
        benefits of current and near retirees, but also meets 
        the program's growing needs when the baby-boom 
        generation begins retiring.

   Reforming Medicare. The budget supports the goal of 
        Medicare reform, including prescription drug coverage.

    The budget provides for inflationary growth in nondefense 
discretionary spending, and a $5.6-billion emergency set-aside 
for natural disasters. It provides a mechanism to expand 
support for the Nation's farmers as they continue the 
transition to a market-based (as opposed to Government-
dictated) farm economy. It boosts veterans' medical care by 
$1.7 billion (or 7.6 percent compared with fiscal year 2001. It 
continues pursuing the goal of doubling the 1998 funding level 
of the National Institutes of Health [NIH] by 2003.
    This is only a brief summary. More of the detail appears in 
the text that follows. In the coming months, the committees of 
Congress will address the legislative actions needed to realize 
the vision outlined here. The vision is to secure the Nation's 
future--and the priorities supported by this budget define what 
the Government can do to make that possible.

    [Please note: This budget supports a range of presidential 
initiatives and recommendations, and its funding levels are 
designed to accommodate them. But as always, the actual 
policies will be determined by the authorizing and 
appropriating committees with jurisdiction in the program areas 
involved.]
                          ECONOMIC ASSUMPTIONS

                              ----------                              


    The Committee's budget resolution uses the economic 
assumptions developed by the Congressional Budget Office [CBO] 
and presented in CBO's The Budget and Economic Outlook: Fiscal 
Years 2002-2011 (January 2001). These assumptions comprise a 
short-term forecast for 2001 and 2002--which reflects the 
current state of the economy relative to the business cycle--
and a medium-term projection for 2003 through 2011, based on 
longer-term economic trends.
    The growth of real gross domestic product [GDP] dropped 
substantially in the 3d quarter of last year and continued to 
slow in the 4th quarter. Although economic growth remains 
positive, this rapid slowdown of economic activity has led to a 
talk of possible recession. Nevertheless, many economists 
believe that growth will remain positive and that, if a 
recession occurred, it would be short-lived. CBO as well as the 
Office of Management and Budget [OMB] expect a rebound in the 
rate of growth later in the year. Private forecasts also 
anticipate a rebound despite their recent downward adjustments 
in the rate of growth for the current year. Overall, all 
forecasts indicate that the economy will operate closer to its 
potential (the highest sustainable level of output without 
accelerating inflation) next year, reflecting the view that the 
increases in productivity since the mid-1990s are more than 
transitory.

                 REVIEW OF RECENT ECONOMIC DEVELOPMENTS

    Economic activity began slowing in the 2d half of last 
year. Growth in consumer spending, residential investment, and 
business fixed investment markedly decelerated, and stock 
prices fell substantially. Consumer spending, after taking 
account of inflation, declined from an annual growth rate of 
5.4 percent in the 2d quarter to 4.5 percent in the 3d quarter. 
Investment in housing fell by 10.6 percent from the 1st half to 
the 3d quarter of 2000. For the same period, real (inflation 
adjusted) business fixed investment deteriorated from an annual 
rate of 17.7 percent to 7.7 percent. The Standard & Poor's 500 
stock price index, which grew at an annual rate of almost 15 
percent in 1999 and the 1st half of 2000, started falling at an 
annual rate of 17 percent later last year. Such a slowdown in 
growth is inevitable to some extent because both consumer and 
business spending grew rapidly in the earlier periods. In 
addition, fundamental factors that contributed to deceleration: 
sharp decreases in stock prices last year reduced consumers' 
wealth, raised businesses' cost of capital, and resulted in 
weakening consumers' expectations and businesses' confidence 
about future economic activity.
    During the 1st half of last year, the Federal Reserve 
raised the Federal funds rate to 6.5 percent in response to 
rapid expansion in aggregate demand. As the economy slowed, 
however, the Federal Reserve made a surprise move in January of 
this year and lowered the rate twice by 0.5 percentage point, 
bringing it down to 5.5 percent. Consumers and businesses 
responded to the easing in credit market conditions, generating 
a modest rebound. Although the current quarter's GDP growth 
remains weak, aggregate demand appears to be holding up well, 
while excess inventories are being liquidated.

           SUMMARY OF CBO'S ECONOMIC PROJECTIONS THROUGH 2011

    The growth of the U.S. economy in the past 5 years has been 
exceptional. Not only has GDP grown rapidly, but inflation has 
remained relatively low despite the inflationary pressures from 
low unemployment. This outstanding performance is largely due 
to the growth of labor productivity that accelerated from a 
rate of 1.5 percent a year during the 1974-1995 period to 2.9 
percent for the 1996-2000 period. The acceleration of 
investment in information technology [IT] accounts for the 
recent surge, and it appears likely to continue contributing to 
the economy's underlying ability to produce goods and services. 
For the period 2001-2011, the average annual rate of labor 
productivity growth is expected to be 2.5 percent (see Table 
E1). Other factors that contributed to the extraordinary 
economic growth are: changes in corporate behavior (which were 
facilitated by the IT revolution), economic weakness in other 
countries (which provided financial capital to the United 
States where returns to investment were higher and kept the 
cost of imports low), and significant improvement in the 
Federal budget. On the whole, the economic outlook for this 
projection period is good.
    CBO anticipates real GDP growth of 2.4 percent for 2001 and 
3.4 percent for 2002, and an average growth rate of 3.1 percent 
for 2002 through 2011 (see Table E2). The agency expects energy 
prices to decline and to slow the rate of consumer price 
inflation to 2.8 percent for this year and next year. Inflation 
is projected to be 2.7 percent for 2003 and then 2.5 percent 
for the rest of the period. Lower interest rates also are 
projected, given slower growth of economic activity. Short-term 
interest rates are projected to be 4.8 percent for 2001 and 4.9 
percent for 2002, averaging 4.9 percent for the 10-year 
projection period. Long-term interest rates are projected to be 
4.9 percent for 2001 and 5.3 percent for 2002, rising gradually 
to 5.8 percent by 2006. The unemployment rate is expected to 
increase to 4.4 percent for 2001 and 4.5 percent for 2002, 
eventually reaching 4.9 percent in 2006 and thereafter.

                        COMPARISON OF FORECASTS

    CBO's economic forecast is typically compared with that of 
OMB and the Blue Chip. Blue Chip Consensus reports an average 
of approximately 50 private-sector forecasts with no attempt to 
make them internally consistent, unlike CBO and OMB forecasts. 
Generally speaking, forecasts by CBO and OMB tend to be more 
conservative than that of Blue Chip. In recent years, CBO and 
OMB were very close in their economic projections, with 
discrepancies well within the average errors of such forecasts. 
Although they underestimated the strength of economic growth in 
the past few years, they have adjusted upward their underlying 
trend in the growth of real GDP, reflecting increases in labor 
productivity and total factor productivity that stemmed from 
progress in information technology and the growth of capital 
input.
    Although Blue Chip Consensus forecasts substantially lower 
real GDP growth for 2001 than the other two, all three forecast 
a rise in the growth rate next year. Blue Chip Consensus 
projects growth rates that are 0.2 percentage point to 0.4 
percentage point higher than CBO from 2004 through 2007 (see 
Table E3). CBO's and OMB's projections are very close, except 
that OMB anticipates slightly higher growth rates from 2004 
through 2009. CBO anticipates higher consumer price inflation. 
Further, CBO's projections of unemployment rates are much 
higher than those of OMB and Blue Chip, indicating its view 
that the growth of GDP will be lower than that of potential 
GDP. CBO expects short-term interest rates to be lower and 
long-term interest rates to be higher than the others. Overall, 
CBO's projections are the most conservative.

                  TABLE E1.--LABOR PRODUCTIVITY TRENDS
                              [Percentage]
------------------------------------------------------------------------
                                                     Average Annual Rate
                                                   ---------------------
                                                      Actual   Projected
------------------------------------------------------------------------
1951-1973.........................................        2.7  .........
1974-1995.........................................        1.5  .........
1996-2000.........................................        2.9  .........
2001-2011.........................................  .........        2.5
------------------------------------------------------------------------
Source: CBO.


                            TABLE E2.--ECONOMIC ASSUMPTIONS OF THE BUDGET RESOLUTION
                                           [Calendar years 2001-2011]
----------------------------------------------------------------------------------------------------------------
                                                2001  2002  2003  2004  2005  2006  2007  2008  2009  2010  2011
----------------------------------------------------------------------------------------------------------------
Real GDP (percentage change year over year)...   2.4   3.4   3.3   3.0   3.0   3.0   3.0   3.0   3.0   3.1   3.1
GDP Price Index (percentage change year over     2.3   2.1   2.0   1.9   1.9   1.9   1.9   1.9   1.9   1.9   1.9
 year)........................................
Consumer Price Inflation (percentage change      2.8   2.8   2.7   2.5   2.5   2.5   2.5   2.5   2.5   2.5   2.5
 year over year)..............................
Unemployment Rate (percent, annual rate)......   4.4   4.5   4.5   4.7   4.8   4.9   4.9   4.9   4.9   4.9   4.9
3-month Treasury Bill Rate (percent, annual      4.8   4.9   5.0   4.9   4.9   4.9   4.9   4.9   4.9   4.9   4.9
 rate)........................................
10-year Treasury Note Rate (percent, annual      4.9   5.3   5.5   5.6   5.7   5.8   5.8   5.8   5.8   5.8   5.8
 rate)........................................
----------------------------------------------------------------------------------------------------------------


                                                      TABLE E3.--COMPARISON OF ECONOMIC ASSUMPTIONS
                                                               [Calendar years 2001-2011]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                           Forecast                                         Projected
                                            Estimated --------------------------------------------------------------------------------------------------
                                              2000       2001     2002     2003     2004     2005     2006     2007     2008     2009     2010     2011
--------------------------------------------------------------------------------------------------------------------------------------------------------
Real GDP (percentage change year over
 year):
    CBO..................................        5.1      2.4      3.4      3.3      3.0      3.0      3.0      3.0      3.0      3.0      3.1      3.1
    OMB..................................        5.1      2.4      3.3      3.2      3.2      3.1      3.1      3.1      3.1      3.1      3.1      3.1
    Blue Chip............................        5.0      1.9      3.4      3.5      3.4      3.4      3.4      3.3   .......  .......  .......  .......
GDP Price Index (percentage change year
 over year):
    CBO..................................        2.1      2.3      2.1      2.0      1.9      1.9      1.9      1.9      1.9      1.9      1.9      1.9
    OMB..................................        2.1      2.1      2.1      2.1      2.1      2.1      2.1      2.1      2.1      2.1      2.1      2.1
    Blue Chip............................        2.1      2.1      2.0      2.1      2.1      2.1      2.2      2.2   .......  .......  .......  .......
Consumer Price Inflation (percentage
 change year over year):
    CBO..................................        3.4      2.8      2.8      2.7      2.5      2.5      2.5      2.5      2.5      2.5      2.5      2.5
    OMB..................................        3.4      2.7      2.6      2.6      2.5      2.5      2.5      2.5      2.5      2.5      2.5      2.5
    Blue Chip............................        3.4      2.8      2.4      2.6      2.6      2.5      2.6      2.6   .......  .......  .......  .......
Unemployment Rate (percent, annual rate):
    CBO..................................        4.0      4.4      4.5      4.5      4.7      4.8      4.9      4.9      4.9      4.9      4.9      4.9
    OMB..................................        4.0      4.4      4.6      4.5      4.5      4.5      4.5      4.5      4.6      4.6      4.6      4.6
    Blue Chip............................        4.0      4.5      4.6      4.6      4.6      4.6      4.6      4.6   .......  .......  .......  .......
3-month Treasury Bill Rate (percent,
 annual rate):
    CBO..................................        5.8      4.8      4.9      5.0      4.9      4.9      4.9      4.9      4.9      4.9      4.9      4.9
    OMB..................................        5.8      5.3      5.6      6.6      6.6      6.3      5.0      5.0      5.0      5.0      5.0      5.0
    Blue Chip............................        5.8      4.6      4.8      5.2      6.3      6.3      5.2      5.2   .......  .......  .......  .......
10-year Treasury Note Rate (percent,
 annual rate):
    CBO..................................        6.0      4.9      5.3      5.5      5.6      5.7      5.8      5.8      5.8      5.8      5.8      5.8
    OMB..................................        6.0      5.4      5.6      5.7      5.7      5.7      5.7      5.7      5.7      5.7      5.7      5.7
    Blue Chip............................        6.0      5.1      5.4      5.7      5.7      5.7      5.7      5.7   .......  .......  .......  .......
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ First three quarters are actual and the fourth quarter is an estimate.

Sources: CBO, OMB, Blue Chip Economic Indicators (March 10, 2001).

                             DEBT REDUCTION

                              ----------                              


    The budget resolution pays down $2.3 trillion of debt held 
by the public over the next 10 years. As a result, the 
Government's publicly held debt would decline to 7 percent of 
Gross Domestic Product [GDP], its lowest level in more than 80 
years. For comparison, debt held by the public was 80 percent 
of GDP in 1950 (following World War II), 42 percent in 1990 
(following the cold war), and 35 percent as recently as 2000.
    The resolution pays off the maximum amount of public debt 
that can reasonably be retired by 2011. The roughly $1 trillion 
remaining debt in 2011 is considered ``non-retireable'' or 
``non-redeemable.'' It consists of marketable bonds that will 
not have matured, savings bonds, and special bonds for State 
and local governments, among others. The Federal Government 
would have to pay a ``premium'' as high as $150 billion to 
persuade bond holders to sell back these bonds--and even then 
the holders would not be required to release the bonds before 
maturity, because these instruments are not ``callable.''
    In this environment, the Government is in the position, 
under current law, of accumulating ``excess cash balances'' 
(when surpluses exceed the amount of maturing debt). This 
excess cash could force the Government to begin buying up 
private assets, leading to substantial--and undesirable--
Government ownership of the private economy.
    The House Majority Leader has warned that excess surpluses 
invested in private assets could have serious political 
consequences. ``In no time, the Federal Government would use 
its vast new economic influence to advance any number of 
politically correct causes,'' he wrote in a February 6 
memorandum to Members of the House. ``It would forever change 
the relationship between the Government and our people.''
    From an economic perspective, Federal Reserve Chairman 
Greenspan has warned that the political pressure connected with 
such investments would risk ``sub-optimal performance'' by 
capital markets, a less efficient economy, and weaker growth in 
living standards. As a result, Chairman Greenspan calls this 
``the critical longer-term fiscal policy issue'' facing 
Congress and the administration.
                                REVENUES

                              ----------                              


                            FUNCTION SUMMARY

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

                SUMMARY OF COMMITTEE-REPORTED RESOLUTION

    The resolution allows taxpayers to keep roughly one-fourth 
of projected surpluses over the next 10 years (29 percent of 
$5.61 trillion) through lower tax bills for all taxpayers. 
Overall, taxpayers will keep $1.62 trillion of their earnings 
over the next 10 years, under the reconciliation instructions 
in this budget.
    The budget implements this tax reduction through four 
reconciliation bills--the four pillars of the tax reduction 
plan:

   Marginal rate reduction, as already passed by the 
        House.

   Doubling the per-child tax credit.

   Providing relief from the marriage penalty.

   Providing death tax relief.

    The budget also could accommodate significant additional 
tax reduction--subject to the discretion of the Committee on 
Ways and Means--proposed by the President. These measures might 
include charitable deduction expansion; refundable tax credits 
for private health insurance; Education Savings Account 
expansion and other education provisions; Individual Retirement 
Account [IRA] increases and other pension reform; and permanent 
extension of the research and development [R&D] tax credit. The 
resolution allows for further tax reduction should the 
Congressional Budget Office's summer update indicate additional 
non-Social Security surpluses--which could allow for measures 
such as extension of Medical Savings Accounts, repeal of 
transportation deficit reduction fuel taxes, and reduction of 
the capital gains rate. It also assumes the revenue effect of a 
proposed reduction in fees levied by the Securities and 
Exchange Commission.

                      THE CONTEXT OF TAX REDUCTION

    The Federal Government is collecting taxes at an 
unprecedented rate in peacetime--and consequently is running up 
substantial amounts of excess funds not needed for any 
Government purpose. Federal taxes will consume more than 20 
percent of total income (gross domestic product [GDP]) 
throughout the 2002-2011 period, the highest rate since World 
War II. Just 8 years ago, in 1993, tax revenues were only 17.6 
percent of GDP.
    Most of the tax growth in the recent past and the projected 
future is from individual income taxes. In fiscal year 2000, 
individual income tax receipts increased by more than 14 
percent, and at current rates these collections would reach 
10.5 percent of GDP by 2011, their highest level ever. The two 
principal contributing factors were, and will continue to be: 
1) rapid growth of taxable income, such as wages, interest, and 
business income; and 2) increases in the effective tax rate, 
because more of taxpayers' incomes fell into higher tax 
brackets. Both trends are projected to continue, although at 
slower rates.
    Consequently, the Government will collect approximately 
$21.2 trillion in taxes, excluding Social Security, over the 
next 10 years. The budget proposes that taxpayers keep about 
7.5 percent of this non-Social Security tax burden, or about 6 
percent of total taxes. The Government then would collect the 
full $6.7 trillion for Social Security and another $19.6 
trillion for the rest of Government. By comparison, the Federal 
Government collected $15.6 trillion in taxes over the previous 
10 years (1992-2001).
    Federal revenues will grow by 68 percent over 10 years 
after the tax cut (compared with 79 percent without tax 
reduction). The Federal Government will still collect $10.7 
trillion more from taxpayers over the next 10 years after the 
tax relief package is enacted than it did over the previous 10 
years.
    This tax reduction plan still leaves ample resources for 
the following priorities:

   Fully protecting the Social Security and Medicare 
        Hospital Insurance [HI] surpluses.

   Paying down all the debt held by the public that 
        reasonably can be paid.

   Financing the President's initiatives in education, 
        national defense, and elsewhere.

   Still leaving a cushion of about one-half trillion 
        dollars in non-Social Security funds for other 
        purposes.

                                               ON-BUDGET REVENUES
                                            [In billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                     2001       2002     2002-2006    2002-2011
----------------------------------------------------------------------------------------------------------------
Total Revenues..................................................    1,624.7    1,635.8      8,779.4     19,556.5
----------------------------------------------------------------------------------------------------------------

                          REVENUE COMPARISONS

                              ----------                              


TABLE R1.--COMPARISON OF TOTAL BUDGET REVENUES FOR PRESIDENT'S REQUEST 
                      AND COMMITTEE RECOMMENDATION

                        [In billions of dollars]

                                                                  Amount
Fiscal Year:
    1991 Actual..................................................1,055.0
    1992 Actual..................................................1,091.3
    1993 Actual..................................................1,154.4
    1994 Actual..................................................1,258.6
    1995 Actual..................................................1,351.8
    1996 Actual..................................................1,453.1
    1997 Actual..................................................1,579.3
    1998 Actual..................................................1,721.8
    1999 Actual..................................................1,827.5
    2000 Actual..................................................2,025.2
Fiscal Year 2001:
    Administration's Request (February 2001).....................2,136.9
    Committee Level..............................................2,128.8
Fiscal Year 2002:
    Administration's Request (February 2001).....................2,190.5
    Committee Level..............................................2,168.1
Fiscal Year 2003:
    Administration's Request (February 2001).....................2,258.1
    Committee Level..............................................2,259.9
Fiscal Year 2004:
    Administration's Request (February 2001).....................2,338.6
    Committee Level..............................................2,344.4
Fiscal Year 2005:
    Administration's Request (February 2001).....................2,436.3
    Committee Level..............................................2,436.8
Fiscal Year 2006:
    Administration's Request (February 2001).....................2,527.8
    Committee Level..............................................2,521.4
Fiscal Year 2007:
    Administration's Request (February 2001).....................2,643.2
    Committee Level..............................................2,628.5
Fiscal Year 2008:
    Administration's Request (February 2001).....................2,770.3
    Committee Level..............................................2,754.2
Fiscal Year 2009:
    Administration's Request (February 2001).....................2,905.1
    Committee Level..............................................2,889.6
Fiscal Year 2010:
    Administration's Request (February 2001).....................3,058.9
    Committee Level..............................................3,038.6
Fiscal Year 2011:
    Administration's Request (February 2001).....................3,233.1
    Committee Level..............................................3,206.2


TABLE R2.--COMPARISON OF ON-BUDGET REVENUES FOR PRESIDENT'S BUDGET AND 
                        COMMITTEE RECOMMENDATION

                        [In billions of dollars]

                                                                  Amount
Fiscal Year:
    1991 Actual................................................... 761.2
    1992 Actual................................................... 788.9
    1993 Actual................................................... 842.5
    1994 Actual................................................... 923.6
    1995 Actual..................................................1,000.8
    1996 Actual..................................................1,085.6
    1997 Actual..................................................1,187.3
    1998 Actual..................................................1,306.0
    1999 Actual..................................................1,383.0
    2000 Actual..................................................1,544.6
Fiscal Year 2001:
    Administration's Request (February 2001).....................1,633.1
    Committee Level..............................................1,624.7
Fiscal Year 2002:
    Administration's Request (February 2001).....................1,659.5
    Committee Level..............................................1,635.8
Fiscal Year 2003:
    Administration's Request (February 2001).....................1,697.3
    Committee Level..............................................1,699.0
Fiscal Year 2004:
    Administration's Request (February 2001).....................1,748.3
    Committee Level..............................................1,755.7
Fiscal Year 2005:
    Administration's Request (February 2001).....................1,807.3
    Committee Level..............................................1,816.7
Fiscal Year 2006:
    Administration's Request (February 2001).....................1,869.3
    Committee Level..............................................1,872.2
Fiscal Year 2007:
    Administration's Request (February 2001).....................1,949.9
    Committee Level..............................................1,948.6
Fiscal Year 2008:
    Administration's Request (February 2001).....................2,044.1
    Committee Level..............................................2,041.7
Fiscal Year 2009:
    Administration's Request (February 2001).....................2,144.2
    Committee Level..............................................2,143.2
Fiscal Year 2010:
    Administration's Request (February 2001).....................2,255.3
    Committee Level..............................................2,256.6
Fiscal Year 2011:
    Administration's Request (February 2001).....................2,386.8
    Committee Level..............................................2,387.0

         TABLE R3.--CBO BASELINE REVENUES BY SOURCE, IN BILLIONS OF DOLLARS, UNDER PAST AND CURRENT LAW
                              [Includes on- and off-budget revenues, fiscal years]
----------------------------------------------------------------------------------------------------------------
                                                                                                    Projected
                                               1950    1960    1970    1980     1990     2000  -----------------
                                                                                                  2001     2002
----------------------------------------------------------------------------------------------------------------
Individual Income Tax.......................    15.8    40.7    90.4   244.1    466.9  1,004.5  1,075.7  1,124.8
Corporate Income Tax........................    10.4    21.5    32.8    64.6     93.5    207.3    215.2    216.8
Social Insurance Tax and contributions......     4.3    14.7    44.4   157.8    380.0    652.9    686.0    724.8
Excises.....................................     7.6    11.7    15.7    24.3     35.3     68.9     70.9     73.6
Estate and Gift taxes.......................     0.7     1.6     3.6     6.4     11.5     29.0     29.6     31.9
Customs Duties..............................     0.4     1.1     2.4     7.2     16.7     19.9     21.3     23.0
Miscellaneous Receipts......................     0.2     1.2     3.4    12.7     28.0     42.8     36.0     40.9
                                             -------------------------------------------------------------------
      Total \1\.............................    39.4    92.5   192.8   517.1  1,032.0  2,025.2  2,134.6  2,235.8
On-Budget Revenues..........................    37.3    81.9   159.3   403.9    750.3  1,544.6  1,630.5  1,703.5
Off-Budget Revenues\2\......................     2.1    10.6    33.5   113.2    281.7    480.6    504.1    532.3
----------------------------------------------------------------------------------------------------------------
\1\ Details may not sum to totals due to rounding.
\2\ Social Security (OASDI) revenues.

Source: CBO March 2000 baseline revenues.


            TABLE R4.--CBO BASELINE REVENUES BY SOURCE, AS PERCENT OF GDP, UNDER PAST AND CURRENT LAW
                              [Includes on- and off-budget revenues, fiscal years]
----------------------------------------------------------------------------------------------------------------
                                                                                                      Projected
                                                           1950   1960   1970   1980   1990   2000 -------------
                                                                                                     2001   2002
----------------------------------------------------------------------------------------------------------------
Individual Income Tax...................................    5.8    7.9    8.9    8.9    8.1   10.2   10.4   10.3
Corporate Income Tax....................................    3.8    4.1    3.2    2.4    1.6    2.1    2.1    2.0
Social Insurance Tax and Contributions..................    1.6    2.8    4.4    5.8    6.6    6.6    6.6    6.7
Excises.................................................    2.8    2.3    1.5    0.9    0.6    0.7    0.7    0.7
Estate and Gift taxes...................................    0.2    0.3    0.4    0.2    0.2    0.3    0.3    0.3
Customs Duties..........................................    0.1    0.2    0.2    0.3    0.3    0.2    0.2    0.2
Miscellaneous Receipts..................................    0.1    0.2    0.3    0.5    0.5    0.4    0.3    0.4
                                                         -------------------------------------------------------
      Total \1\.........................................   14.4   17.8   19.0   18.9   18.0   20.6   20.7   20.5
On-Budget Revenues......................................   13.6   15.8   15.7   14.8   13.1   15.7   15.8   15.7
Off-Budget Revenues\2\..................................    0.8    2.1    3.3    4.1    4.9    4.9    4.9    4.9
----------------------------------------------------------------------------------------------------------------
\1\ Details may not sum to totals due to rounding.
\2\ Social Security (OASDI) revenues.

Source: CBO March 2000 baseline revenues.

  TABLE R5.--COMPARISON OF TOTAL BUDGET REVENUES FOR CBO BASELINE AND 
                        COMMITTEE RECOMMENDATION

                        [In billions of dollars]

                                                                  Amount
Fiscal Year:
    1991 Actual..................................................1,055.0
    1992 Actual..................................................1,091.3
    1993 Actual..................................................1,154.4
    1994 Actual..................................................1,258.6
    1995 Actual..................................................1,351.8
    1996 Actual..................................................1,453.1
    1997 Actual..................................................1,579.3
    1998 Actual..................................................1,721.8
    1999 Actual..................................................1,827.5
    2000 Actual..................................................2,025.2
Fiscal Year 2001:
    CBO Projection (January 2001)................................2,134.6
    Committee Level..............................................2,128.8
Fiscal Year 2002:
    CBO Projection (January 2001)................................2,235.8
    Committee Level..............................................2,168.1
Fiscal Year 2003:
    CBO Projection (January 2001)................................2,343.0
    Committee Level..............................................2,259.9
Fiscal Year 2004:
    CBO Projection (January 2001)................................2,453.0
    Committee Level..............................................2,344.4
Fiscal Year 2005:
    CBO Projection (January 2001)................................2,569.8
    Committee Level..............................................2,436.8
Fiscal Year 2006:
    CBO Projection (January 2001)................................2,688.8
    Committee Level..............................................2,521.4
Fiscal Year 2007:
    CBO Projection (January 2001)................................2,815.7
    Committee Level..............................................2,628.5
Fiscal Year 2008:
    CBO Projection (January 2001)................................2,955.3
    Committee Level..............................................2,754.2
Fiscal Year 2009:
    CBO Projection (January 2001)................................3,106.6
    Committee Level..............................................2,889.6
Fiscal Year 2010:
    CBO Projection (January 2001)................................3,271.3
    Committee Level..............................................3,038.6
Fiscal Year 2011:
    CBO Projection (January 2001)................................3,447.1
    Committee Level..............................................3,206.2


TABLE R6.--COMPARISON OF TOTAL BUDGET REVENUES, AS PERCENT OF GDP, FOR 
               CBO BASELINE AND COMMITTEE RECOMMENDATION

                                                                 Percent
Fiscal Year:
    1991 Actual...................................................  17.8
    1992 Actual...................................................  17.5
    1993 Actual...................................................  17.6
    1994 Actual...................................................  18.1
    1995 Actual...................................................  18.5
    1996 Actual...................................................  18.9
    1997 Actual...................................................  19.3
    1998 Actual...................................................  19.9
    1999 Actual...................................................  20.0
    2000 Actual...................................................  20.6
Fiscal Year 2001:
    CBO Projection (January 2001).................................  20.7
    Committee Level...............................................  20.6
Fiscal Year 2002:
    CBO Projection (January 2001).................................  20.5
    Committee Level...............................................  19.9
Fiscal Year 2003:
    CBO Projection (January 2001).................................  20.4
    Committee Level...............................................  19.7
Fiscal Year 2004:
    CBO Projection (January 2001).................................  20.3
    Committee Level...............................................  19.4
Fiscal Year 2005:
    CBO Projection (January 2001).................................  20.3
    Committee Level...............................................  19.3
Fiscal Year 2006:
    CBO Projection (January 2001).................................  20.2
    Committee Level...............................................  19.0
Fiscal Year 2007:
    CBO Projection (January 2001).................................  20.2
    Committee Level...............................................  18.9
Fiscal Year 2008:
    CBO Projection (January 2001).................................  20.2
    Committee Level...............................................  18.8
Fiscal Year 2009:
    CBO Projection (January 2001).................................  20.3
    Committee Level...............................................  18.8
Fiscal Year 2010:
    CBO Projection (January 2001).................................  20.3
    Committee Level...............................................  18.9
Fiscal Year 2011:
    CBO Projection (January 2001).................................  20.4
    Committee Level...............................................  18.9

                                    Table R-7.--Tax Expenditure Estimates By Budget Function, Fiscal Years 2001-2005*
                                                                  [Billions of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                      Corporations                                 Individuals
                      Function                       ------------------------------------------------------------------------------------------   Total
                                                        2001     2002     2003     2004     2005     2001     2002     2003     2004     2005    2001-05
--------------------------------------------------------------------------------------------------------------------------------------------------------
National Defense
  Exclusion of benefits and allowances to Armed       .......  .......  .......  .......  .......      1.9      2.0      2.0      2.0      2.0       9.9
   Forces personnel.................................
  Exclusion of military disability benefits.........  .......  .......  .......  .......  .......      0.1      0.1      0.1      0.1      0.1       0.5
International Affairs
  Exclusion of income earned abroad by U.S. citizens  .......  .......  .......  .......  .......      2.4      2.5      2.7      2.9      3.0      13.5
  Exclusion of certain allowances for Federal         .......  .......  .......  .......  .......      0.2      0.2      0.3      0.3      0.3       1.3
   employees abroad.................................
  Exclusion of extraterritorial income..............      4.4      4.7      5.1      5.5      5.9  .......  .......  .......  .......  .......      25.6
  Deferral of active income of controlled foreign         3.7      4.0      4.2      4.5      4.8  .......  .......  .......  .......  .......      21.2
   corporations.....................................
  Inventory property sales source rule exception....      4.5      4.8      5.2      5.6      6.0  .......  .......  .......  .......  .......      26.1
  Deferral of certain financing income..............      0.9      0.5      0.1  .......  .......  .......  .......  .......  .......  .......       1.5
General Science, Space, and Technology
  Tax credit for qualified research expenditures....      3.3      3.4      3.6      3.0      1.8  .......  .......  .......  .......  .......      15.0
  Expensing of research and experimental                  2.9      2.6      2.5      2.5      2.5  .......  .......  .......  .......  .......      13.0
   expenditures.....................................
Energy
  Expensing of exploration and development costs:
    Oil and gas.....................................      0.6      0.6      0.6      0.4      0.3    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)       3.1
    Other fuels.....................................    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)       0.2
  Excess of percentage over cost depletion:
    Oil and gas.....................................      0.3      0.3      0.3      0.3      0.4    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)       1.7
    Other fuels.....................................    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)       0.1
  Tax credit for enhanced oil recovery costs........      0.1      0.1      0.1      0.1      0.1      0.1      0.1      0.1      0.1      0.1       1.0
  Tax credit for production of non-conventional           1.2      1.3      0.8      0.5      0.5      0.3      0.3      0.2      0.1      0.1       5.3
   fuels............................................
  Tax credits for alcohol fuels \2\.................    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)  .......  .......  .......  .......  .......     (\1\)
  Exclusion of interest on State and local              (\1\)    (\1\)    (\1\)    (\1\)    (\1\)      0.1      0.1      0.1      0.1      0.1       0.7
   government industrial development bonds for
   energy production facilities.....................
  Exclusion of energy conservation subsidies          .......  .......  .......  .......  .......    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)       0.1
   provided by public utilities.....................
  Tax credit for investments in solar and geothermal    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)       0.1
   energy facilities................................
  Tax credit for electricity production from wind,      (\1\)    (\1\)    (\1\)    (\1\)    (\1\)      0.1      0.1      0.1      0.1      0.1       0.4
   biomass, and poultry waste.......................
Natural Resources and Environment
  Expensing of exploration and development costs,       (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)       0.2
   nonfuel minerals.................................
  Excess of percentage over cost depletion, nonfuel       0.1      0.1      0.1      0.1      0.1      0.1      0.1      0.1      0.1      0.1       0.7
   minerals.........................................
  Expensing of multiperiod timber-growing costs.....      0.2      0.2      0.2      0.2      0.2    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)       1.0
  Exclusion of interest on State and local                0.2      0.2      0.2      0.2      0.2      0.4      0.4      0.4      0.4      0.4       2.9
   government sewage, water, and hazardous waste
   facilities bonds.................................
  Special rules for mining reclamation reserves.....    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)       0.2
  Special tax rate for nuclear decommissioning            0.1      0.2      0.2      0.2      0.2  .......  .......  .......  .......  .......       0.9
   reserve fund.....................................
  Exclusion of contributions in aid of construction     (\1\)    (\1\)    (\1\)    (\1\)    (\1\)  .......  .......  .......  .......  .......       0.1
   for water and sewer utilities....................
Agriculture
  Expensing of soil and water conservation              (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)       0.2
   expenditures.....................................
  Expensing of fertilizer and soil conditioner costs    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)       0.3
  Expensing of the costs of raising dairy and           (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)       0.1
   breeding cattle..................................
  Exclusion of cost-sharing payments................    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)       0.1
  Exclusion of cancellation of indebtedness income    .......  .......  .......  .......  .......    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)       0.2
   of farmers.......................................
  Cash accounting for agriculture...................    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)      0.3      0.4      0.4      0.4      0.5       2.2
  Income averaging for farmers......................  .......  .......  .......  .......  .......    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)       0.1
  Five-year carryback period for net operating          (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)       0.2
   losses attributable to farming...................
Commerce and Housing
  Financial institutions:
    Exemption of credit union income................      0.7      0.7      0.8      0.8      0.8  .......  .......  .......  .......  .......       3.9
  Insurance companies:
    Exclusion of investment income on life insurance      1.3      1.3      1.4      1.4      1.5     23.0     23.6     24.2     24.9     25.5     128.2
     and annuity contracts..........................
    Small life insurance company taxable income           0.1      0.1      0.1      0.1      0.1  .......  .......  .......  .......  .......       0.7
     adjustment.....................................
    Special treatment of life insurance company           1.2      1.2      1.3      1.3      1.4  .......  .......  .......  .......  .......       6.4
     reserves.......................................
    Deduction of unpaid property loss reserves for        2.9      2.9      3.0      3.0      3.1  .......  .......  .......  .......  .......      14.9
     property and casualty insurance companies......
    Special deduction for Blue Cross and Blue Shield      0.1      0.1      0.1      0.1      0.1  .......  .......  .......  .......  .......       0.5
     companies......................................
  Housing:
    Deduction for mortgage interest on owner-         .......  .......  .......  .......  .......     62.7     66.0     69.1     72.4     76.1     346.3
     occupied residences............................
    Deduction for property taxes on owner-occupied    .......  .......  .......  .......  .......     21.0     21.6     22.3     23.0     23.6     111.6
     residences.....................................
    Exclusion of capital gains on sales of principal  .......  .......  .......  .......  .......     13.3     13.4     13.5     13.6     13.8      67.6
     residences.....................................
    Exclusion of interest on State and local              0.3      0.3      0.3      0.3      0.3      0.8      0.8      0.8      0.7      0.7       5.4
     government bonds for owner-occupied housing....
    Exclusion of interest on State and local              0.1      0.1      0.1      0.1      0.1      0.2      0.2      0.2      0.1      0.1       1.1
     government bonds for rental housing............
    Depreciation of rental housing in excess of           0.3      0.3      0.3      0.3      0.3      2.5      2.6      2.8      3.0      3.3      15.9
     alternative depreciation system................
    Tax credit for low-income housing...............      2.7      2.7      2.9      3.0      3.2      1.1      1.2      1.2      1.3      1.4      20.8
    Tax credit for first-time homebuyers in the       .......  .......  .......  .......  .......    (\1\)    (\1\)    (\1\)  .......  .......     (\1\)
     District of Columbia...........................
    Tax credit for rehabilitation of historic             0.3      0.4      0.4      0.4      0.4      0.1      0.1      0.1      0.1      0.1       2.3
     structures.....................................
  Other business and commerce:
    Reduced rates of tax on long-term capital gains.  .......  .......  .......  .......  .......     38.7     40.6     41.8     43.1     44.9     209.1
    Exclusion of capital gains at death.............  .......  .......  .......  .......  .......     26.0     27.6     29.5     30.9     35.1     149.1
    Carryover basis of capital gains on gifts.......  .......  .......  .......  .......  .......      2.6      2.8      3.1      3.4      3.6      15.5
    Deferral of gain on non-dealer installment sales      0.6      0.6      0.6      0.6      0.7      0.4      0.4      0.4      0.4      0.4       5.2
    Deferral of gain on like-kind exchanges.........      1.2      1.3      1.4      1.4      1.5      0.4      0.4      0.4      0.5      0.5       9.0
    Deferral of gain on involuntary conversions       .......  .......  .......  .......  .......    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)       0.1
     resulting from Presidentially-declared
     disasters......................................
    Depreciation of buildings other than rental           1.2      1.2      1.1      0.9      0.8      0.5      0.5      0.4      0.4      0.3       7.4
     housing in excess of alternative depreciation
     system.........................................
    Depreciation of equipment in excess of               27.7     30.3     31.1     30.5     29.8      7.5      8.2      8.4      8.1      7.7     189.2
     alternative depreciation system................
    Expensing of depreciable business property......      0.3      0.3      0.2      0.1    (\1\)      1.2      1.2      0.7      0.4      0.2       4.7
    Amortization of business startup costs..........    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)      0.4      0.4      0.4      0.4      0.4       2.0
    Reduced rates on first $10,000,000 of corporate       4.3      4.4      4.5      4.6      4.7  .......  .......  .......  .......  .......      22.4
     taxable income.................................
    Permanent exemption from imputed interest rules.    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)      0.2      0.2      0.3      0.3      0.3       1.3
    Expensing of magazine circulation expenditures..    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)       0.2
    Special rules for magazine, paperback book, and     (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)       0.1
     record returns.................................
    Completed contract rules........................      0.2      0.2      0.2      0.2      0.2    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)       1.1
    Cash accounting, other than agriculture.........    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)      0.1      0.1      0.1      0.1      0.1       0.5
    Exclusion of interest on State and local              0.1      0.1      0.1      0.1      0.1      0.3      0.3      0.3      0.3      0.3       1.9
     government small-issue industrial development
     bonds..........................................
    Exception from net operating loss limitations         0.5      0.5      0.5      0.5      0.5  .......  .......  .......  .......  .......       2.5
     for corporations in bankruptcy proceedings.....
    Tax credit for employer-paid FICA taxes on tips.      0.1      0.1      0.1      0.1      0.1      0.2      0.2      0.2      0.2      0.2       1.6
Transportation
  Deferral of tax on capital construction funds of        0.1      0.1      0.1      0.1      0.1  .......  .......  .......  .......  .......       0.5
   shipping companies...............................
  Exclusion of employer-paid transportation benefits  .......  .......  .......  .......  .......      3.6      3.7      3.7      3.8      3.8      18.6
  Exclusion of interest on State and local              (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)       0.5
   government bonds for high-speed rail.............
Community and Regional Development
  Empowerment zone tax incentives...................      0.1      0.2      0.3      0.3      0.3      0.1      0.3      0.4      0.4      0.4       2.8
  Renewal community tax incentives..................  .......      0.1      0.1      0.1      0.2  .......      0.3      0.4      0.4      0.4       2.0
  New markets tax credit............................    (\1\)    (\1\)      0.1      0.1      0.2    (\1\)    (\1\)      0.1      0.1      0.2       0.8
  District of Columbia tax incentives...............    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)      0.1      0.1       0.5
  Indian reservation tax incentives.................      0.2      0.2      0.2      0.1    (\1\)      0.1      0.1      0.1      0.1    (\1\)       1.1
  Expensing of environmental remediation costs          (\1\)    (\1\)      0.1      0.1    (\1\)    (\1\)      0.1      0.1      0.1    (\1\)       0.7
   (``Brownfields'')................................
  Tax credit for rehabilitation of structures, other    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)       0.1
   than historic structures.........................
  Exclusion of interest on State and local                0.2      0.2      0.2      0.2      0.2      0.5      0.5      0.5      0.5      0.5       3.6
   government bonds for private airports, docks, and
   mass-commuting facilities........................
Education, Training, Employment, and Social Services
  Education and training:
    Tax credits for tuition for post-secondary        .......  .......  .......  .......  .......      4.2      4.3      4.3      4.3      4.3      21.4
     education......................................
    Deduction for interest on student loans.........  .......  .......  .......  .......  .......      0.4      0.4      0.4      0.5      0.5       2.2
    Exclusion of earnings of trust accounts for       .......  .......  .......  .......  .......    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)       0.2
     higher education (``education IRAs'')..........
    Exclusion of interest on educational savings      .......  .......  .......  .......  .......    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)       0.1
     bonds..........................................
    Deferral of tax on earnings of qualified State    .......  .......  .......  .......  .......      0.1      0.1      0.1      0.1      0.2       0.6
     tuition programs...............................
    Exclusion of scholarship and fellowship income..  .......  .......  .......  .......  .......      1.2      1.3      1.4      1.5      1.5       6.9
    Exclusion of employer-provided education          .......  .......  .......  .......  .......      0.4      0.1  .......  .......  .......       0.5
     assistance benefits............................
    Parental personal exemption for students age 19   .......  .......  .......  .......  .......      0.8      0.8      0.8      0.8      0.8       4.0
     to 23..........................................
    Exclusion of interest on State and local              0.1      0.1      0.1      0.1      0.1      0.3      0.3      0.2      0.2      0.2       1.7
     government student loan bonds..................
    Exclusion of interest on State and local              0.3      0.3      0.2      0.2      0.2      0.7      0.7      0.6      0.6      0.6       4.5
     government bonds for private nonprofit
     educational facilities.........................
    Tax credit for holders of qualified zone academy    (\1\)    (\1\)      0.1      0.1      0.1  .......  .......  .......  .......  .......       0.3
     bonds..........................................
    Deduction for charitable contributions to             0.9      1.0      1.1      1.2      1.3      4.2      4.4      4.6      4.8      5.1      28.6
     educational institutions.......................
  Employment:
    Exclusion of employee meals and lodging (other    .......  .......  .......  .......  .......      0.8      0.8      0.9      0.9      0.9       4.3
     than military).................................
    Exclusion of benefits provided under cafeteria    .......  .......  .......  .......  .......      9.0      9.6     10.2     10.8     11.5      51.2
     plans \3\......................................
    Exclusion of housing allowances for ministers...  .......  .......  .......  .......  .......      0.4      0.4      0.4      0.4      0.5       2.1
    Exclusion of miscellaneous fringe benefits......  .......  .......  .......  .......  .......      7.3      7.9      8.4      9.0      9.7      42.3
    Exclusion of employee awards....................  .......  .......  .......  .......  .......      0.1      0.1      0.1      0.1      0.1       0.7
    Exclusion of income earned by voluntary           .......  .......  .......  .......  .......      1.5      1.6      1.7      1.7      1.8       8.3
     employees' beneficiary associations............
    Special tax provisions for employee stock             0.8      0.9      0.9      0.9      0.9      0.2      0.2      0.2      0.3      0.3       5.7
     ownership plans (ESOPs)........................
    Work opportunity tax credit.....................      0.4      0.3      0.1      0.1    (\1\)      0.1      0.1    (\1\)    (\1\)  .......       1.0
    Welfare-to-work tax credit......................      0.1      0.1    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)  .......       0.3
  Social services:
    Tax credit for children under age 17 \4\........  .......  .......  .......  .......  .......     19.1     18.7     18.3     17.9     17.4      91.4
    Tax credit for child and dependent care expenses  .......  .......  .......  .......  .......      2.4      2.4      2.3      2.2      2.2      11.6
    Exclusion of employer-provided child care \5\...  .......  .......  .......  .......  .......      0.5      0.6      0.6      0.6      0.7       3.0
    Exclusion of certain foster care payments.......  .......  .......  .......  .......  .......      0.5      0.5      0.5      0.6      0.6       2.6
    Adoption credit and employee adoption benefits    .......  .......  .......  .......  .......      0.2      0.1    (\1\)    (\1\)    (\1\)       0.4
     exclusion......................................
    Deduction for charitable contributions, other         1.6      1.7      1.9      2.1      2.2     22.6     23.8     25.0     26.3     27.5     134.7
     than for education and health..................
    Tax credit for disabled access expenditures.....    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)      0.1      0.1      0.1      0.1      0.1       0.4
Health
  Exclusion of employer contributions for health      .......  .......  .......  .......  .......     65.7     70.4     74.7     79.2     84.1     374.0
   care, health insurance premiums, and long-term
   care insurance premiums \6\......................
  Exclusion of medical care and CHAMPUS/TRICARE       .......  .......  .......  .......  .......      1.6      1.6      1.6      1.6      1.7       8.1
   medical insurance for military dependents,
   retirees, and retiree dependents.................
  Deduction for health insurance premiums and long-   .......  .......  .......  .......  .......      1.4      1.6      2.5      2.9      3.0      11.4
   term care insurance premiums by the self-employed
  Deduction for medical expenses and long-term care   .......  .......  .......  .......  .......      5.1      5.4      5.6      6.0      6.3      28.3
   expenses.........................................
  Exclusion of workers' compensation benefits         .......  .......  .......  .......  .......      4.7      4.9      5.1      5.4      5.6      25.7
   (medical benefits)...............................
  Medical savings accounts..........................  .......  .......  .......  .......  .......    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)       0.1
  Exclusion of interest on State and local                0.4      0.4      0.4      0.4      0.4      1.1      1.1      1.0      1.0      1.0       7.3
   government bonds for private nonprofit hospital
   facilities.......................................
  Deduction for charitable contributions to health        0.9      1.0      1.0      1.1      1.2      2.9      3.1      3.2      3.4      3.5      21.3
   organizations....................................
  Tax credit for orphan drug research...............      0.1      0.1      0.1      0.1      0.1  .......  .......  .......  .......  .......       0.5
Medicare
  Exclusion of untaxed Medicare benefits:
    Hospital insurance..............................  .......  .......  .......  .......  .......     16.1     17.1     18.3     19.7     21.5      92.7
    Supplementary medical insurance.................  .......  .......  .......  .......  .......      9.1     10.0     11.0     12.1     13.2      55.4
Income Security
  Exclusion of workers' compensation benefits         .......  .......  .......  .......  .......      5.2      5.5      5.7      5.9      6.1      28.4
   (disability and survivors payments)..............
  Exclusion of special benefits for disabled coal     .......  .......  .......  .......  .......      0.1      0.1      0.1      0.1      0.1       0.4
   miners...........................................
  Exclusion of cash public assistance benefits......  .......  .......  .......  .......  .......      0.7      0.7      0.8      0.8      0.8       3.7
  Net exclusion of pension contributions and
   earnings:
    Employer plans..................................  .......  .......  .......  .......  .......     85.0     84.1     82.4     83.9     87.4     422.8
    Individual retirement plans.....................  .......  .......  .......  .......  .......     13.3     13.7     13.8     14.4     15.6      70.8
    Keogh plans.....................................  .......  .......  .......  .......  .......      5.5      5.5      5.3      5.2      5.4      27.0
  Exclusion of other employee benefits:
    Premiums on group term life insurance...........  .......  .......  .......  .......  .......      2.1      2.2      2.3      2.4      2.5      11.5
    Premiums on accident and disability insurance...  .......  .......  .......  .......  .......      2.2      2.3      2.4      2.6      2.7      12.3
  Additional standard deduction for the blind and     .......  .......  .......  .......  .......      2.1      2.2      2.3      2.4      2.5      11.7
   the elderly......................................
  Tax credit for the elderly and disabled...........  .......  .......  .......  .......  .......    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)       0.1
  Deduction for casualty and theft losses...........  .......  .......  .......  .......  .......      0.2      0.2      0.2      0.2      0.2       1.1
  Earned income credit (EIC) \7\....................  .......  .......  .......  .......  .......      4.2      4.3      4.3      4.4      4.5      21.6
Social Security and Railroad Retirement
  Exclusion of untaxed social security and railroad   .......  .......  .......  .......  .......     24.9     25.6     26.6     27.6     28.4     133.1
   retirement benefits..............................
Veterans' Benefits and Services
  Exclusion of veterans' disability compensation....  .......  .......  .......  .......  .......      2.2      2.3      2.4      2.4      2.5      11.8
  Exclusion of veterans' pensions...................  .......  .......  .......  .......  .......      0.1      0.1      0.1      0.1      0.1       0.6
  Exclusion and veterans' readjustment benefits.....  .......  .......  .......  .......  .......      0.1      0.1      0.1      0.1      0.1       0.7
  Exclusion of interest on State and local              (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)       0.2
   government bonds for veterans' housing...........
General Purpose Fiscal Assistance
  Exclusion of interest on public purpose State and       6.6      6.6      6.2      6.0      6.1     17.1     17.1     16.0     15.5     15.7     113.0
   local government debt............................
  Deduction of nonbusiness State and local            .......  .......  .......  .......  .......     40.0     41.4     43.0     44.4     46.1     214.9
   government income and personal property taxes....
  Tax credit for Puerto Rico and possession income,       4.0      3.6      3.2      3.0      2.8  .......  .......  .......  .......  .......      16.6
   and Puerto Rico economic activity................
Interest
  Deferral of interest on savings bonds.............  .......  .......  .......  .......  .......      1.6      1.6      1.6      1.6      1.6       8.0
--------------------------------------------------------------------------------------------------------------------------------------------------------
*The determination of whether a provision is a tax expenditure is made on the basis of a broad concept of income that is larger in scope than ``income''
  as defined under general U.S. income tax principles. For that reason, Table 1 includes for example an estimate for the exclusion of extraterritorial
  income, as well as other exclusions, notwithstanding that such exclusions define income under the general rule of U.S. income taxation.

\1\ Positive tax expenditure of less than $50 million.
\2\ In addition, the exemption from excise tax for alcohol fuels results in a reduction in excise tax receipts, net of income tax effect, of $0.6
  billion per year in fiscal years 2001 through 2005.
\3\ Estimate includes amounts of employer-provided health insurance purchased through cafeteria plans and employee-provided child care purchased through
  dependent care flexible spending accounts. These amounts are also included in other line items in this table.
\4\ The figures in the table show the effect of the child credit on receipts. The increase in outlays is: $0.8 billion in 2001, $0.8 billion in 2002,
  $0.8 billion in 2003, $0.8 billion in 2004, and $0.8 billion in 2005.
\5\ Estimate includes employer-provided child care purchased through dependent care flexible spending accounts.
\6\ Estimate includes employer-provided health insurance purchased through cafeteria plans.
\7\ The figures in the table show the effect of the earned income credit on receipts. The increase in outlays is: $25.8 billion in 2001, $26.4 billion
  in 2002, $26.7 billion in 2003, $27.2 billion in 2004, and $27.8 billion in 2005.

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

Source: Joint Committee on Taxation.

                     FUNCTION 050: NATIONAL DEFENSE

                              ----------                              


                            FUNCTION SUMMARY

    The National Defense function includes funds to develop, 
maintain, and equip the military forces of the United States. 
More than 95 percent of the funding in this function goes to 
Department of Defense-military activities, including funds for 
ballistic missile defense. That component also includes pay and 
benefits for military and civilian personnel; research, 
development, testing, and evaluation; procurement of weapons 
systems; military construction and family housing; and 
operations and maintenance of the defense establishment. The 
remaining funding in the function goes toward atomic energy 
defense activities of the Department of Energy, and other 
defense-related activities.
    After declining by 11.2 percent from 1990 through 1997, the 
defense budget increased by an average annual rate of 4.6 
percent from 1998 through 2001, reaching $310.3 billion. This 
increase occurred because Congress added $34.4 billion to the 
defense requests of the previous administration. The most rapid 
increases during that period were in procurement, which grew 
from $44.8 billion to $59.3 billion, a 9.8-percent average 
annual increase--reflecting the need to replace aging weapons 
bought in the 1970s and 1980s, and to reverse the sharp decline 
in procurement spending that occurred during the early and mid-
1990s.
    Nevertheless, the increases could not catch up with the 
mounting readiness and retention shortfalls that remained--
especially following the open-ended peacekeeping operations and 
uncertain budget priorities of the 1993-2000 period.

                SUMMARY OF COMMITTEE-REPORTED RESOLUTION

    The resolution calls for $324.6 billion in budget authority 
[BA] and $319.3 billion in outlays in fiscal year 2002, an 
increase of 4.5 percent in BA compared with 2001. The function 
totals are $1.71 trillion in BA and $1.68 trillion in outlays 
over 5 years, and $3.68 trillion in BA and $3.61 trillion in 
outlays over 10 years.
    For fiscal year 2002 discretionary spending, the resolution 
calls for $324.9 billion in BA and $319.7 billion in outlays. 
The 5-year discretionary spending totals are $1.72 trillion in 
BA and $1.68 trillion in outlays. The 10-year discretionary 
spending totals are $3.69 trillion in BA and $3.61 trillion in 
outlays.
    Mandatory spending in this function is -$384 million in BA 
and -$407 million in outlays in fiscal year 2002; -$1.1 billion 
in BA and outlays over 5 years; and $2.1 billion in BA and -
$2.2 billion in outlays over 10 years. Mandatory totals appear 
as negative numbers because they represent receipts to the 
Government from trust funds, stock fund sales, and the like.
    Quality of life for armed forces personnel remains a 
priority. Funding in the resolution accommodates the 
President's proposal to increase military pay and other 
compensation by $1.4 billion in 2002. The pay raise is set at 
the Economic Cost Index plus 0.5 percent. The resolution 
assumes an additional $400 million to improve the quality of 
housing for military personnel and their families. The 
resolution also provides $3.9 billion for the first year of 
expanded health benefits for over-65 military retirees.
    The resolution also includes a $2.6-billion initiative ($20 
billion over 5 years) to fund research and development of new 
technologies. The Department of Defense intends to apply this 
funding to create new capabilities to defend against projected 
future threats, following a comprehensive review by the 
Secretary of Defense to assess national security needs.
    The resolution permits the Chairman to adjust the budget 
authority level for fiscal year 2002 not later than 25 July 
2001 if a bill incorporating the recommendations of the 
President's National Defense Review is reported to the House by 
11 July 2001. The Chairman may also adjust the budget authority 
level for fiscal year 2001 at any time to reflect reported 
legislation to eliminate shortfalls in the Department of 
Defense.

                     FUNCTION 050: NATIONAL DEFENSE
                        [In billions of dollars]
------------------------------------------------------------------------
                                        2002     2002-2006    2002-2011
------------------------------------------------------------------------
Budget Authority...................      324.6      1,714.7      3,684.0
Outlays............................      319.3      1,680.6      3,611.5
------------------------------------------------------------------------

                  FUNCTION 150: INTERNATIONAL AFFAIRS

                              ----------                              


                            FUNCTION SUMMARY

    Funds distributed through the International Affairs 
function provide for international development and humanitarian 
assistance, such as the Child Survival and Disease Programs 
Fund; international security assistance, including economic and 
military assistance to Israel and Egypt; international 
narcotics control and law enforcement; the conduct of foreign 
affairs, including embassies and other diplomatic missions 
abroad; foreign information and exchange activities; and 
international financial programs, including Export-Import Bank 
activities. The major departments and agencies in this function 
include the Department of State, the Department of the 
Treasury, the Agency for International Development, and the 
Broadcasting Board of Governors.
    Over the period 1998-2001, total budget authority [BA] in 
Function 150 rose from $14.8 billion to $18.6 billion, an 8.1 
percent average annual increase.

                SUMMARY OF COMMITTEE-REPORTED RESOLUTION

    The resolution calls for $23.9 billion in budget authority 
[BA] and $19.6 billion in outlays in fiscal year 2002, an 
increase of 6.4 percent in BA compared with 2001. The function 
totals are $123.8 billion in BA and $102.0 billion in outlays 
over 5 years, and $264.2 billion in BA and $219.7 billion in 
outlays over 10 years.
    For discretionary spending, the resolution calls for $23.9 
billion in BA and $23.2 billion in outlays in fiscal year 2002. 
The 5-year discretionary spending totals are $123.3 billion in 
BA and $119.9 billion in outlays. The 10-year discretionary 
spending totals are $263.3 billion in BA and $254.2 billion in 
outlays. Mandatory spending in this function is $8 million in 
BA and -$3.6 billion in outlays in fiscal year 2002; $458 
million in BA and -$17.8 billion in outlays over 5 years; and 
$1 billion in BA and -$34.5 billion in outlays over 10 years. 
The negative outlays result primarily from interest income 
earned on U.S. Government securities held by the Exchange 
Stabilization Fund and the liquidation of obligations made 
prior to the enactment of the Federal Credit Reform Act of 
1992.
    The worldwide operations of the Department of State remains 
a priority. Funding in this resolution accommodates the 
President's proposal to increase Administration of Foreign 
Affairs funding by $888 million above the 2001 level, to a 
total of $5.7 billion for fiscal year 2002.
    The resolution accommodates the President's request to 
increase military assistance to Israel by $60 million. In 
addition, to maintain and expand programs to stem the flow of 
cocaine and heroin from Colombia and its Andean neighbors, the 
budget assumes the President's $624-million increase for 
international narcotics control and law enforcement. The 
resolution also assumes sufficient resources for the Tropical 
Forest Conservation Act [TFCA].

                   FUNCTION 150: INTERNATIONAL AFFAIRS
                        [In billions of dollars]
------------------------------------------------------------------------
                                        2002     2002-2006    2002-2011
------------------------------------------------------------------------
Budget Authority...................       23.9        123.8        264.2
Outlays............................       19.6        102.0        219.7
------------------------------------------------------------------------

          FUNCTION 250: GENERAL SCIENCE, SPACE, AND TECHNOLOGY

                              ----------                              


                            FUNCTION SUMMARY

    The General Science, Space, and Technology function 
consists of funds in two major categories: general science and 
basic research; and space flight, research, and supporting 
activities. The general science component includes the budgets 
for the National Science Foundation [NSF], and the high-energy 
and nuclear physics research programs of the Department of 
Energy [DOE]. But the largest component of the function is for 
space flight, research, and supporting activities of the 
National Aeronautics and Space Administration [NASA] (except 
for NASA's air transportation programs, which are included in 
Function 400).
    Over the period 1998-2001, total budget authority [BA] in 
Function 250 rose from $17.9 billion to $20.9 billion, a 4.1 
percent average annual increase.

                SUMMARY OF COMMITTEE-REPORTED RESOLUTION

    The resolution calls for $22.2 billion in budget authority 
[BA] and $21.0 billion in outlays in fiscal year 2002, an 
increase of 5.7 percent in BA compared with 2001. The function 
totals are $115.9 billion in BA and $112.4 billion in outlays 
over 5 years, and $247.1 billion in BA and $240.2 billion in 
outlays over 10 years.
    For discretionary spending, the resolution calls for $22.0 
billion in BA and $21.0 billion in outlays in fiscal year 2002. 
The 5-year discretionary spending totals are $115.4 billion in 
BA and $111.8 billion in outlays. The 10-year discretionary 
spending totals are $246.4 billion in BA and $239.4 billion in 
outlays. Mandatory spending in this function is $163 million in 
BA and $75 million in outlays in fiscal year 2002; $456 million 
in BA and $600 million in outlays over 5 years; and $662 
million in BA and $820 million in outlays over 10 years.
    The budget accommodates the following priorities identified 
in the President's proposal:

   National Science Foundation [NSF]: The resolution 
        assumes $4.5 billion for the National Science 
        Foundation [NSF], a $56-million increase from 2001. 
        This total includes $1.5 billion for new research and 
        education awards in 2002, funding nearly 10,000 new 
        competitively reviewed awards. Among these are $200 
        million to begin the President's Math and Science 
        Partnership initiative, which provides States with 
        funds to join with institutions of higher learning in 
        strengthening math and science education in grades K-
        12; and $20 million for multi-disciplinary mathematics 
        research, aimed at transferring the results of 
        mathematical research to the science and engineering 
        disciplines.

   National Aeronautics and Space Administration 
        [NASA]: The budget provides $14.5 billion for NASA, a 
        2-percent increase over 2001. This total allows for the 
        President's recommendations, including increased funds 
        for International Space Station development and 
        operations consistent with a strategy of constraining 
        Space Station cost growth; a 64-percent increase over 
        2001 for NASA's Space Launch Initiative, helping to 
        meet the launching needs of commercial industry and 
        dramatically reducing space transportation costs while 
        improving safety and reliability; six space shuttle 
        flights per year; and continued funding for safety 
        improvements within NASA to establish safety investment 
        priorities.

          FUNCTION 250: GENERAL SCIENCE, SPACE, AND TECHNOLOGY
                        [In billions of dollars]
------------------------------------------------------------------------
                                        2002     2002-2006    2002-2011
------------------------------------------------------------------------
Budget Authority...................       22.2        115.9        247.1
Outlays............................       21.0        112.4        240.2
------------------------------------------------------------------------

                          FUNCTION 270: ENERGY

                              ----------                              


                            FUNCTION SUMMARY

    The Energy function reflects civilian activities in the 
Department of Energy. Through this function, spending is 
provided for energy supply programs, such as solar and 
renewable research at the Department of Energy; rural 
electricity and telecommunications loans, administered through 
the Department of Agriculture; electric power generation and 
transmission programs of the Power Marketing Administrations 
(the Southeastern Power Administration, the Southwestern Power 
Administration, the Western Area Power Administration, and the 
Bonneville Power Administration); and power generation and 
transmission programs of the Tennessee Valley Authority [TVA]. 
This function also provides funds for energy conservation 
programs; emergency energy preparedness (mainly the Strategic 
Petroleum Reserve); and energy information, policy, and 
regulation programs, including spending by the Office of the 
Secretary of Energy and the operations of the Nuclear 
Regulatory Commission, which oversees the nuclear power 
industry.
    Government spending in this function peaked in 1981, then 
began declining with oil industry deregulation. In recent 
years, energy supply spending has been shifted to the defense 
and general science functions. Offsetting receipts often exceed 
expenditures, resulting in negative budget authority and/or 
negative outlays.

                SUMMARY OF COMMITTEE-REPORTED RESOLUTION

    The resolution calls for $835 million in budget authority 
[BA] and -$234 million in outlays in fiscal year 2002, a 
decrease of 33 percent in BA compared with 2001. The 5-year 
function totals are $4.4 billion in BA and -$2.2 billion in 
outlays; and the 10-year totals are $14.5 billion in BA and 
$598 million in outlays.
    For discretionary spending, the resolution calls for $2.8 
billion in BA and $2.9 billion in outlays in fiscal year 2002; 
$14.8 billion in BA and $14.7 billion in outlays over 5 years; 
and $34.3 billion in BA and $33.6 billion in outlays over 10 
years. Mandatory spending is -$1.9 billion in BA and -$3.2 
billion in outlays in fiscal year 2002; -$10.3 billion in BA 
and -$16.9 billion in outlays over 5 years; and -$19.8 billion 
in BA and -$33.0 billion in outlays over 10 years.
    The resolution assumes the following proposals by the 
President:

   A total of $1.4 billion over 10 years (a $120-
        million increase) for the Department of Energy's 
        Weatherization Assistance Program to help low-income 
        families who live in poorly insulated housing or have 
        insufficient heating or cooling systems.

   A total of $8 million to support the Northeast 
        Heating Oil Reserve that was established because of low 
        heating oil stocks.

    Finally, in light of past management and security problems, 
the resolution supports the President's efforts to reform the 
Department of Energy.

                          FUNCTION 270: ENERGY
                        [In billions of dollars]
------------------------------------------------------------------------
                                        2002     2002-2006    2002-2011
------------------------------------------------------------------------
Budget Authority...................      0.835          4.4         14.5
Outlays............................     -0.234         -2.2        0.598
------------------------------------------------------------------------

            FUNCTION 300: NATURAL RESOURCES AND ENVIRONMENT

                              ----------                              


                            FUNCTION SUMMARY

    Funds distributed through this function are intended to 
develop, manage, and maintain the Nation's natural resources, 
and to promote a clean environment. Funding is provided for 
water resources, conservation and land management, recreational 
resources, pollution control and abatement, and other natural 
resources. The major departments and agencies in this function 
are the Department of the Interior, including the National Park 
Service, the Bureau of Land Management, the Bureau of 
Reclamation, and the Fish and Wildlife Service; certain 
agencies in the Department of Agriculture, including 
principally the Forest Service; the National Oceanic and 
Atmospheric Administration [NOAA], in the Department of 
Commerce; the Army Corps of Engineers; and the Environmental 
Protection Agency [EPA].
    Over the period 1998-2001, total budget authority [BA] in 
Function 300 rose from $24.3 billion to $28.8 billion, a 4.6-
percent average annual increase.

                SUMMARY OF COMMITTEE-REPORTED RESOLUTION

    The resolution calls for $26.7 billion in budget authority 
[BA] and 26.4 billion in outlays in fiscal year 2002, an 
decrease of 7.3 percent in BA compared with 2001. The 5-year 
function totals are $137.1 billion in BA and $136.3 billion in 
outlays; and the 10-year totals are $289.3 billion in BA and 
285.3 billion in outlays.
    For discretionary spending, the resolution calls for $26.4 
billion in BA and $26.2 billion in outlays in fiscal year 2002; 
$134.8 billion in BA and $134.3 billion in outlays over 5 
years; and $283.0 billion in BA and $279.5 billion in outlays 
over 10 years. Mandatory spending is $296 million in BA and 
$245 million in outlays in fiscal year 2002; $2.3 billion in BA 
and $2.0 billion in outlays over 5 years; and $6.3 billion in 
BA and $5.8 billion in outlays over 10 years.
    Included in the resolution's assumptions are the following 
recommendations by the President:

   Fully funding the Land and Water Conservation [LWC] 
        Fund at $900 million starting in 2002, an increase of 
        $356 million over 2001. This funding, which comes from 
        receipts for oil and gas drilling primarily on the 
        Outer Continental Shelf, is used by Federal and State 
        governments for local conservation projects, natural 
        resource protection, and outdoor recreation. This is 
        the highest LWC budget request in history.

   An addition of $440 million in 2002 as a down 
        payment on eliminating the National Park Service's 
        deferred maintenance backlog, currently pegged at $4.9 
        billion. This is a 30-percent increase in park 
        maintenance funds over 2001.

   An additional $20 million for the National Parks to 
        accelerate biological resource inventories, control 
        non-native species, and preserve endangered and 
        threatened species habitat on park lands.

   More than $1 billion in EPA grants for States and 
        tribes to administer environmental programs, the 
        highest level in the EPA's history.

   A total of $3.7 billion in funding for the EPA's 
        Operating Program, which comprises the agency's core 
        regulatory, research, and enforcement activities. This 
        is the second highest level of funding for the program 
        ever, and higher than 2001 if unrequested projects are 
        excluded.

   A level of wastewater grants to States $500 million 
        higher than requested by the previous administration 
        for 2001. The President has recommended directing a 
        portion of these funds to newly authorized sewer 
        overflow control grants.

   A continued high level of funding for the wildland 
        fire program to reduce fire risk and minimize the 
        damage of wildfires.

   Implementation of five recently authorized Indian 
        land and water settlements in California, Colorado, 
        Michigan, New Mexico, and Utah.

   A substantial reduction in the backlog of school 
        repairs and maintenance in the Bureau of Indian 
        Affairs, with the goal of eliminating the backlog 
        within 5 years. The resolution also assumes funding for 
        the replacement of six dilapidated schools on Indian 
        reservations.

   Increased funding for the Army Corps of Engineers 
        program evaluating proposed development in wetlands.

             FUNCTION 300: NATURAL RESOURCES AND ENVIRONMENT
                        [In billions of dollars]
------------------------------------------------------------------------
                                        2002     2002-2006    2002-2011
------------------------------------------------------------------------
Budget Authority...................       26.7        137.1        289.3
Outlays............................       26.4        136.3        285.3
------------------------------------------------------------------------

                       FUNCTION 350: AGRICULTURE

                              ----------                              


                            FUNCTION SUMMARY

    The Agriculture function includes funds for direct 
assistance and loans to food and fiber producers, export 
assistance, market information and inspection services, and 
agricultural research and services. Farm policy is driven by 
the Federal Agricultural Improvement and Reform [FAIR] Act of 
1996, which gave farmers flexibility to make planting decisions 
based on market conditions, not Government directives. The act 
terminated Depression-era production control programs and 
provided a market transition into the 21st century.
    Over the period 1998-2001, total budget authority [BA] in 
Function 350, excluding emergency funding, rose from $12.7 
billion in fiscal year 1998 to $20.7 billion in fiscal year 
2001, a 17.7-percent average annual increase. A total of $27 
billion in additional emergency funding was provided in fiscal 
years 1999 through 2001, principally to address the impact of 
historically low commodity prices on producers or to remedy the 
effects of natural disasters such as last year's forest fires. 
It should also be noted, however, that certain components of 
the broader policy envisioned under the FAIR Act--such as 
deregulation, tax relief, and the expansion of overseas 
markets--were unfulfilled by the previous administration.

                SUMMARY OF COMMITTEE-REPORTED RESOLUTION

    The budget seeks to help farmers compete in the world 
marketplace, as well as to maintain competitive markets at 
home. Another priority is providing farmers and ranchers with a 
strong safety net and a means to manage economic downturns.
    The proposed repeal of the death tax--a potential part of 
the tax reduction assumed in this budget--would be vitally 
important to the Nation's farmers and ranchers. Individuals, 
family partnerships, or family corporations own 99 percent of 
U.S. farms. The death tax can destroy family-owned farms and 
ranches when it forces farmers and ranchers to sell land, 
buildings, or equipment to pay the Government after the death 
of a benefactor.
    In terms of spending in this function, the budget 
resolution provides $19.1 billion in budget authority [BA] in 
fiscal year 2002, and $17.5 billion in outlays. The resolution 
permits the Chairman to adjust the budget authority level for 
fiscal year 2002 not later than 25 July 2001 if a bill to 
reauthorize title I of the FAIR Act is reported to the House by 
11 July 2001. The Chairman also may adjust the budget authority 
level for fiscal year 2001 at any time to reflect reported 
legislation for assistance to program and specialty crops. The 
5-year function totals are $92.5 billion in BA and $84.7 
billion in outlays; and the 10-year totals are $172.5 billion 
in BA and $157.3 billion in outlays.
    For discretionary spending, the resolution calls for $4.8 
billion in BA and outlays in fiscal year 2002; $25.9 billion in 
BA and $25.6 billion in outlays over 5 years; and $55.4 billion 
in BA and $54.6 billion in outlays over 10 years. Mandatory 
spending is $14.3 billion in BA and $12.7 billion in outlays in 
fiscal year 2002; $66.5 billion in BA and $59.1 billion in 
outlays over 5 years; and $117.1 billion in BA and $102.7 
billion in outlays over 10 years.
    The resolution assumes the President's recommendation to 
fund Department of Agriculture [USDA] bureaus in general at or 
above the 2001 enacted level, not including the one-time 
emergency funding and unrequested projects provided in 2001. In 
addition, the resolution supports the President's proposal to 
redirect funds for the continued implementation of other major 
initiatives, including crop insurance reform.
    The budget also assumes the following presidential 
recommendations:

   Support of USDA food safety activities, including 
        providing 7,600 meat and poultry inspectors.

   Allocation of conservation assistance to 650,000 
        landowners, farmers, and ranchers.

   Maintaining funding for priority activities in the 
        Forest Service's wildland fire management plan, 
        including hazardous fuels reduction.

   Redirecting USDA research to provide new emphasis in 
        key areas such as biotechnology, the development of new 
        agricultural products, and improved protection against 
        emerging exotic plant and animal diseases as well as 
        crop and animal pests.

   Expanding overseas markets for American agricultural 
        products by strengthening USDA's market intelligence 
        capabilities and the Department's expertise for 
        resolving technical trade issues with foreign trading 
        partners.

                        FUNCTION 350: AGRICULTURE
                        [In billions of dollars]
------------------------------------------------------------------------
                                        2002     2002-2006    2002-2011
------------------------------------------------------------------------
Budget Authority...................       19.1         92.5        172.5
Outlays............................       17.5         84.7        157.3
------------------------------------------------------------------------

               FUNCTION 370: COMMERCE AND HOUSING CREDIT

                              ----------                              


                            FUNCTION SUMMARY

    The mortgage credit component of this function includes 
housing assistance through the Federal Housing Administration 
[FHA], the Federal National Mortgage Association [Fannie Mae], 
the Federal Home Loan Mortgage Corporation [Freddie Mac], the 
Government National Mortgage Association [Ginnie Mae], and 
rural housing programs of the Department of Agriculture. The 
function also includes net postal service spending and spending 
for deposit insurance activities of banks, thrifts, and credit 
unions; the Commerce Department's International Trade 
Administration, Bureau of Economic Analysis, Patent and 
Trademark Administration, National Institute of Standards and 
Technology, the National Telecommunications and Information 
Administration, and the Bureau of the Census; and independent 
agencies such as the Securities and Exchange Commission, the 
Commodity Futures Trading Commission, and the Federal 
Communications Commission.
    Over the period 1998-2001, the deposit insurance funds, the 
Bank Insurance Fund and Savings Association Insurance Fund, 
became fully capitalized, resulting in reduced receipts to the 
Government from bank and savings institution deposit insurance 
premium payments. Additionally, the period saw the cyclical 
growth in spending associated with conducting the decennial 
census in calendar year 2000, which has now been completed.

                SUMMARY OF COMMITTEE-REPORTED RESOLUTION

    For on-budget spending in this function, the resolution 
calls for $7.4 billion in budget authority [BA] and $4.4 
billion in outlays in fiscal year 2002, an increase of 195 
percent in BA compared with 2001. The on-budget function totals 
are $54.2 billion in BA and $33.5 billion in outlays over 5 
years, and $128.1 billion in BA and $84.3 billion in outlays 
over 10 years.
    For fiscal year 2002 on-budget discretionary spending, the 
resolution calls for -$234 million in BA and $127 million in 
outlays. The 5-year on-budget discretionary spending totals are 
-$2.2 billion in BA and -$2.4 billion in outlays. The 10-year 
on-budget discretionary spending totals are $5.2 billion in BA 
and $3.7 in outlays.
    On-budget mandatory spending in this function is $7.6 
billion in BA and $4.2 billion in outlays in fiscal year 2002; 
$56.4 billion in BA and $35.9 billion in outlays over 5 years; 
and $122.9 billion in BA and $80.6 billion in outlays over 10 
years.
    The resolution assumes the President's recommendation that 
premiums for some FHA programs, such as condominiums, 
rehabilitation loans, and multifamily loans are to be increased 
so that all single-family FHA borrowers pay the same premiums, 
and that the programs operate without the need for a subsidy.
    The resolution also assumes in this function the outlay 
effect of a proposed reduction in fees levied by the Securities 
and Exchange Commission.

                FUNCTION 370: COMMERCE AND HOUSING CREDIT
               [On-budget totals, in billions of dollars]
------------------------------------------------------------------------
                                        2002     2002-2006    2002-2011
------------------------------------------------------------------------
Budget Authority...................        7.4         54.2        128.1
Outlays............................        4.4         33.5         84.3
------------------------------------------------------------------------

                      FUNCTION 400: TRANSPORTATION

                              ----------                              


                            FUNCTION SUMMARY

    This function supports all major Federal transportation 
programs. About two-thirds of the funding provided here is for 
ground transportation programs. This includes the Federal-aid 
highway program, and mass transit operating and capital 
assistance. Also under ground transportation are rail 
transportation through the National Rail Passenger Corporation 
[Amtrak], and high-speed rail and rail safety programs. Among 
additional components of this function are air transportation, 
including the Federal Aviation Administration [FAA] airport 
improvement program, the facilities and equipment program, and 
the operation of the air traffic control system; water 
transportation through the Coast Guard and the Maritime 
Administration; and other transportation support activities.
    Over the period 1998-2001, total budget authority [BA] in 
Function 400 rose from $45.3 billion to $61.6 billion, a 10.8 
percent average annual increase. The largest component of this 
growth was highway and highway safety spending, which increased 
from $21.9 billion to $30.3 billion, an 11.5 percent average 
annual increase.

                SUMMARY OF COMMITTEE-REPORTED RESOLUTION

    The resolution calls for $61.0 billion in BA and $55.6 in 
outlays in fiscal year 2002; $298.9 billion in BA and $299.8 
billion in outlays over 5 years; and $608.1 billion in BA and 
$639.6 billion in outlays over 10 years.
    For discretionary spending, the resolution calls for $16.2 
billion in BA and $53.9 billion in outlays in fiscal year 2002. 
The 5-year discretionary spending totals are $85.2 billion in 
BA and $289.9 billion in outlays. The 10-year discretionary 
spending totals are $182.3 billion in BA and $619.7 billion in 
outlays. Mandatory spending in this function would be $44.8 
billion in BA and $1.7 billion in outlays in fiscal year 2002; 
$213.7 billion in BA and $9.9 billion in outlays over 5 years; 
and $425.8 billion in BA and $19.9 billion in outlays over 10 
years.
    This resolution accommodates the President's proposal to 
fully fund the authorized levels provided for highways ($32.3 
billion) and transit ($6.7 billion) under the Transportation 
Equity Act for the 21st Century and for the Federal Aviation 
Administration's operating ($6.9 billion), capital ($2.9 
billion), and airport grants ($3.3 billion) programs under the 
Aviation Investment and Reform Act for the 21st Century.
    To assist Americans with disabilities in overcoming 
transportation barriers to work, the resolution assumes the 
President's $145 million proposal to fund two new programs 
under his New Freedom Initiative to increase the ability of 
individuals with disabilities to integrate into the workforce.
    The Committee has assumed an increase in Coast Guard 
operating expenses of $250 million above the fiscal year 2002 
level recommended by the President. This increase is provided 
to eliminate Coast Guard vessel and aircraft spare parts 
problems, to improve personnel training, to fund new Department 
of Defense entitlements, and to operate drug interdiction 
assets at optimal levels.
    The Committee recognizes that the Office of Management and 
Budget's budget submission contained recently identified errors 
in the transportation function. The Committee intends to make 
every effort to address these errors in conference.

                      FUNCTION 400: TRANSPORTATION
                        [In billions of dollars]
------------------------------------------------------------------------
                                        2002     2002-2006    2002-2011
------------------------------------------------------------------------
Budget Authority...................       61.0        298.9        608.1
Outlays............................       55.6        299.8        639.6
------------------------------------------------------------------------

            FUNCTION 450: COMMUNITY AND REGIONAL DEVELOPMENT

                              ----------                              


                            FUNCTION SUMMARY

    This function reflects programs that provide Federal 
funding for economic and community development in both urban 
and rural areas. This includes programs such as Community 
Development Block Grants [CDBGs]--about half the BA in the 
function. Also reflected are the nonpower activities of the 
Tennessee Valley Authority, the non-roads activities of the 
Appalachian Regional Commission, the Economic Development 
Administration, and partial funding for the Bureau of Indian 
Affairs. Funding for disaster relief and insurance--including 
activities of the Federal Emergency Management Agency [FEMA]--
also appear here.
    Over the period 1998-2001, funding remained relatively 
constant, although disaster assistance payments though FEMA and 
congressional initiatives through the CDBG program caused minor 
fluctuations in annual budget authority.

                SUMMARY OF COMMITTEE-REPORTED RESOLUTION

    The resolution calls for $10.1 billion in budget authority 
[BA] and $11.4 billion in outlays in fiscal year 2002, a 
decrease of 9.8 percent in BA compared with 2001. The 5-year 
totals are $53.2 billion in BA and $53.7 billion in outlays; 
and the 10-year totals are $113.9 billion in BA and $108.8 
billion in outlays.
    For discretionary spending, the resolution calls for $10.1 
billion in BA and $11.7 billion in outlays in fiscal year 2002; 
$53.1 billion in BA and $55.9 billion in outlays over 5 years; 
and $113.6 billion in BA and $113.8 billion in outlays over 10 
years. Mandatory spending is $31 million in BA and -$318 
million in outlays in fiscal year 2002; $48 million in BA and -
$2.2 billion in outlays over 5 years; and $271 million in BA 
and -$5.0 billion in outlays over 10 years.
    Consistent with the President's recommendations, the budget 
assumes continuation of Community Development Block Grant 
[CDBG] formula funding at the 2001 level. It also assumes that 
the Rural Housing and Economic Development Program, begun in 
1999, will be terminated due to its duplication of other 
programs, such as CDBGs.

            FUNCTION 450: COMMUNITY AND REGIONAL DEVELOPMENT
                        [In billions of dollars]
------------------------------------------------------------------------
                                        2002     2002-2006    2002-2011
------------------------------------------------------------------------
Budget Authority...................       10.1         53.2        113.9
Outlays............................       11.4         53.7        108.8
------------------------------------------------------------------------

   FUNCTION 500: EDUCATION, TRAINING, EMPLOYMENT, AND SOCIAL SERVICES

                              ----------                              


                            FUNCTION SUMMARY

    More than one-third of the funding in the Education, 
Training, Employment, and Social Services function is for 
Federal programs in elementary, secondary, and vocational 
education. Also displayed here are funds for higher education 
programs, accounting for about 16 percent of the function's 
spending; research and general education aids, including the 
National Endowment for the Arts and the National Endowment for 
the Humanities; training and employment services; other labor 
services; and grants to States for general social services and 
rehabilitation services, such as the Social Services Block 
Grant and vocational rehabilitation. This last category 
accounts for the remainder of the function's spending.
    Over the period 1998-2001, total budget authority [BA] in 
Function 500 rose from $60.9 billion to $76.9 billion, a 26-
percent increase. Most of the increase in this area during that 
period occurred within the Department of Education's 
discretionary budget authority, which rose from $29.8 billion 
to $39.9 billion.

                SUMMARY OF COMMITTEE-REPORTED RESOLUTION

    The resolution calls for $82.1 billion in budget authority 
[BA] and $76.2 billion in outlays in fiscal year 2002, an 
increase of 6.8 percent in BA compared with 2001. The 5-year 
function totals are $425.6 billion in BA and $412.7 billion in 
outlays; and the 10-year totals are $917.7 billion in BA and 
$891.7 billion in outlays.
    For discretionary spending, the resolution calls for $65.3 
billion in BA and $59.7 billion in outlays in fiscal year 2002; 
$339.5 billion in BA and $328.2 billion in outlays over 5 
years; and $726.6 billion in BA and $705.4 billion in outlays 
over 10 years. Mandatory spending is $16.8 billion in BA and 
$16.6 billion in outlays in fiscal year 2002; $86.1 billion in 
BA and $84.5 billion in outlays over 5 years; and $191.1 
billion in BA and $186.3 billion in outlays over 10 years.

Education

    The budget creates a $1.25-billion reserve fund for the 
Individuals with Disabilities Education Act [IDEA] Part B 
grants to States. This reserve can be accessed if the 
Appropriations Committee reports a bill allocating funds for 
special education above the current level, with the increase 
ceiling set at $1.25 billion. A $1.25-billion increase would 
raise the percent of the average per-pupil expenditure [APPE] 
covered by Federal funds above the current 15-percent level, 
moving the Government closer to its original promise of 
providing 40 percent of APPE to the States.
    The budget further assumes the President's proposal to 
redirect the $1.2 billion provided for school renovation, first 
funded in 2001, allowing States to reallocate the 2001 funds 
among school renovation, technology, or special education. For 
2002, the budget allows States to use this funding stream for 
priorities such as special education, help for low-performing 
schools, or accountability reforms.
    The resolution also accommodates the President's proposed 
increase in program spending of the Department of Education by 
$4.6 billion, or 11.5 percent, in fiscal year 2002. It provides 
sufficient funding in elementary and secondary education for 
the President's ``No Child Left Behind'' education reform plan. 
Key initiatives include the following:

   A tripling of reading education funds, to $900 
        million in 2002, and a total increase in reading 
        education spending of $5 billion over 5 years.

   The provision of $2.6 billion for States to improve 
        teacher quality through high-quality professional 
        development, recruitment and retention activities.

   Sufficient funds to help States to develop annual 
        assessments of students, establish strong 
        accountability systems, and expand State participation 
        in the National Assessment of Education Progress, so 
        that parents, teachers and policymakers can ensure that 
        students are improving.

   Consolidation and streamlining of existing Federal 
        elementary and secondary education programs.

    The resolution also assumes the following recommendations 
by the President:

   An increase of $62 million for the Impact Aid 
        construction program, which currently receives only 
        $12.8 million. This is intended to improve the quality 
        of public school buildings and eliminate the backlog of 
        repairs and construction for schools on or near 
        military bases and those serving Native American lands.

   Consolidation and increased funding for teacher 
        training and recruiting. The Plan creates a $2.6-
        billion fund that provides States the flexibility to 
        improve teacher quality while ensuring increased 
        accountability.

   A sum of $150 million to help charter schools 
        acquire, construct, or renovate facilities.

   An increase for ``character education'' from $9.3 
        million to $25 million.

   An increase for the Troops to Teachers program to 
        $30 million.

   An expansion of the teacher student loan forgiveness 
        program by increasing the loan forgiveness limit from 
        $5,000 to $17,500 for math and science majors who teach 
        those subjects in high-need high schools for 5 years. 
        This is a mandatory spending initiative with an 
        estimated cost of $5 million in 2002 and $87 million 
        over 10 years.

    To provide financial assistance to low-income college 
students, the budget accommodates the President's proposal to 
increase the Pell Grant program by $1 billion. This will 
increase the maximum award for all qualifying students above 
the current level of $3,750.
    The budget also assumes an increase of 6.4 percent in 
funding for historically black colleges and graduate 
institutions, and Hispanic serving institutions, with a goal of 
increasing these programs 30 percent by 2005.

Training and employment

    With regard to training and employment, the resolution 
assumes the following presidential recommendations:

   Maintaining labor law enforcement agencies at their 
        2001 levels, with a renewed emphasis on compliance 
        assistance.

   More than $5 billion in 2002 to support the 
        Department of Labor's [DOL's] youth and adult training 
        activities, offering services to more than 2 million 
        participants.

   A $20-million increase for the Office of Disability 
        Employment Policy, nearly doubling the office's 
        funding. This will allow it to undertake new activities 
        to integrate individuals with disabilities into the 
        work force.

   Establishing an administrative surcharge on the 
        amount billed to Federal agencies for workers' 
        compensation benefits, financing DOL's program 
        administration expenses and boosting agencies' 
        incentives to improve the safety of their workplaces.

Other assumptions

    Additional funding assumptions concerning programs in this 
function are the following:

   Providing States an additional $776 million over 5 
        years for preventive services to families in crisis to 
        keep children in, or to return them to, their homes 
        whenever possible, and establishing a goal of 
        ``permanence'' within the child welfare system to 
        ensure children are placed in a safe and stable 
        biological family, or, if that is not possible, to 
        speed the process of adoption.

   Providing $233 million over 5 years for vouchers to 
        young people who ``age out'' of foster care. The 
        vouchers could be used for college tuition or for 
        vocational training. Vouchers could be worth up to 
        $5,000 per child transitioning from foster care.

   A sum of $733 million, as recommended by the 
        President, for the Corporation for National and 
        Community Service [CNS]. This will help to support 
        50,000 AmeriCorps members. The resolution also assumes 
        the President's recommended $14-million increase to the 
        National Senior Service Corps, as well as a $35-million 
        increase for new senior initiatives.

   The continuation of programmatic activities of the 
        National Endowment for the Arts [NEA] and the National 
        Endowment for the Humanities [NEH] at the 2001 levels. 
        NEA receives $105 million currently; NEH receives $120 
        million. Minor increases are assumed for both agencies 
        to fund Federal staff costs. In the case of NEA, States 
        also would be offered a greater say in how funding is 
        spent.

   A total of $494 million to the Smithsonian 
        Institution, an increase of $40 million, or 9 percent, 
        over 2001. A $30.8 million increase is assumed for 
        repair, restoration and construction of Smithsonian 
        buildings.

   FUNCTION 500: EDUCATION, TRAINING, EMPLOYMENT, AND SOCIAL SERVICES
                        [In billions of dollars]
------------------------------------------------------------------------
                                        2002     2002-2006    2002-2011
------------------------------------------------------------------------
Budget Authority...................       82.1        425.6        917.7
Outlays............................       76.2        412.7        891.7
------------------------------------------------------------------------

                          FUNCTION 550: HEALTH

                              ----------                              


                            FUNCTION SUMMARY

    The Health function consists of health care services, 
including Medicaid, the Nation's major program covering medical 
and long-term care costs for low-income persons; the State 
Children's Health Insurance Program [SCHIP], health research 
and training, including the National Institutes of Health [NIH] 
and substance abuse prevention and treatment; and consumer and 
occupational health and safety, including the Occupational 
Safety and Health Administration. Medicaid represents about 69 
percent of the spending in this function.
    Over the period 1998-2001, total budget authority [BA] in 
Function 550 rose from $135.1 billion to $182.6 billion, a 
10.3-percent average annual increase. The largest component of 
this growth was Medicaid, which increased from $101.1 billion 
to $129.8 billion, an 8.7-percent average annual increase. The 
moderation of Medicaid growth over the past 5 years is a 
dramatic change from the experience a decade earlier, when 
Medicaid spending more than doubled between 1990 and 1995.
    The NIH has been a priority for Congress during the past 
several years. Consequently, funding for the Institutes has 
been boosted at a rate of 14-percent a year or higher for the 
past 3 years.

                SUMMARY OF COMMITTEE-REPORTED RESOLUTION

    The resolution calls for $204.0 billion in BA and $201.1 
billion in outlays in fiscal year 2002, an increase of 11.7 
percent in BA compared with 2001. The function totals are $1.20 
trillion in BA and $1.19 trillion in outlays over 5 years, and 
$2.86 trillion in BA and $2.84 trillion in outlays over 10 
years.
    For discretionary spending, the resolution calls for $41.0 
billion in BA and $38.1 billion in outlays in fiscal year 2002. 
The 5-year discretionary spending totals are $232.0 billion in 
BA and $219.0 billion in outlays. The 10-year discretionary 
spending totals are $501.6 billion in BA and $480.0 billion in 
outlays. Mandatory spending in this function would be $163.0 
billion in BA and outlays in fiscal year 2002; $968.8 billion 
in BA and $968.7 billion in outlays over 5 years; and $2.36 
trillion in BA and outlays over 10 years.
    NIH remains a priority. Funding in this resolution 
accommodates the President's proposal to double the NIH 1998 
funding level of $13.6 billion by 2003. To accomplish this, the 
2002 budget assumes $23.1 billion for NIH, a $2.8 billion 
increase above the 2001 level.
    To strengthen the health care safety net, the budget 
assumes the President's $124-million increase for community 
health centers.
    Further, as proposed in the President's budget, to help 
lower-income families purchase private health insurance, the 
budget assumes in the enactment of a new refundable tax credit 
for individuals and families who do not have access to 
employer-sponsored health insurance. The outlay impact of this 
assumption is reflected in this function; the impact on 
revenues is shown elsewhere.
    The budget also assumes the enactment of H.R. 600, the 
Family Opportunity Act of 2001. Under the Act, States would 
have the option to expand Medicaid coverage for children with 
special needs, allowing families of disabled children with the 
opportunity to purchase coverage under the Medicaid program for 
such children.
    Function 550 incorporates $41.9 billion (fiscal years 2002-
2005) of the President's Medicare reform, including the 
Immediate Helping Hand Prescription Drug Plan (See Function 
570).

                          FUNCTION 550: HEALTH
                        [In billions of dollars]
------------------------------------------------------------------------
                                        2002     2002-2006    2002-2011
------------------------------------------------------------------------
Budget Authority...................      204.0      1,200.8      2,861.7
Outlays............................      201.1      1,187.7      2,837.4
------------------------------------------------------------------------

                         FUNCTION 570: MEDICARE

                              ----------                              


                            FUNCTION SUMMARY

    This budget function reflects the Medicare Part A Hospital 
Insurance [HI] Program, Part B Supplementary Medical Insurance 
[SMI] Program, and premiums paid by qualified aged and disabled 
beneficiaries. It also includes the ``Medicare+Choice'' 
Program, which covers Part A and Part B benefits and allows 
beneficiaries to choose certain private health insurance plans. 
Medicare+Choice plans may include health maintenance 
organizations, preferred provider organizations, provider-
sponsored organizations, medical savings accounts (up to 
390,000 covered individuals), and private fee-for-service 
plans. Such plans may add benefits and cover copayments and 
deductibles required by the traditional Medicare program.
    Over the period 1998-2001, total budget authority [BA] in 
Function 570 rose from $193.7 billion to $217.5 billion, a 3.9-
percent average annual increase. The pace of spending growth 
was a contrast to the early 1990s, when Medicare spending 
increased more than 50 percent over a 5-year period. Medicare 
spending is expected to double over the next 10 years.

                SUMMARY OF COMMITTEE-REPORTED RESOLUTION

    The resolution calls for $229.1 billion in budget authority 
[BA] and outlays in fiscal year 2002, an increase of 5.3 
percent in BA compared with 2001. The function totals are $1.34 
trillion in BA and $1.33 trillion in outlays over 5 years, and 
$3.31 trillion in BA and outlays over 10 years.
    For discretionary spending, the resolution calls for $3.4 
billion in BA and outlays in fiscal year 2002. The 5-year 
discretionary spending totals are $17.8 billion in BA and $17.7 
billion in outlays. The 10-year discretionary spending totals 
are $38.1 billion in BA and $37.7 billion in outlays. Mandatory 
spending in this function would be $225.7 billion in BA and 
outlays in fiscal year 2002; $1.32 trillion in BA and outlays 
over 5 years; and $3.27 trillion in BA and outlays over 10 
years.

The President's Medicare reform proposal

    As proposed in the President's budget, the budget 
resolution assumes $153 billion over 10 years for Medicare 
Reform, including the Immediate Helping Hand Prescription Drug 
Plan. This total is shared by Function 550 and Function 570; 
Function 570 incorporates $109.9 billion of the total over 10 
years.
    The budget is consistent with the provisions of the Social 
Security and Medicare Lock-Box Act of 2001, which passed the 
House on 13 February by a vote of 407-2. The measure creates a 
procedural ``lock-box'' so that the Medicare Hospital Insurance 
[HI] surplus can be used only for debt reduction or Medicare 
reform. The resolution also provides access to additional 
funds, if needed, for Medicare reform with prescription drug 
coverage.
    The resolution also supports the reform principles 
identified by the President. They are the following:

   Medicare's current guarantee of access to seniors 
        must be preserved.

   Every Medicare recipient must have a choice of 
        health plans with the option of purchasing prescription 
        drugs coverage.

   Medicare must cover expenses for low-income seniors.

   Reform must include streamlined access to the latest 
        medical technologies.

   Medicare payroll taxes must not be increased.

   Reform must establish an accurate measure of the 
        solvency of Medicare.

The need for reform

    Some of the principal arguments for comprehensive Medicare 
reform are the following:

   Medicare's Financial Liabilities. According to the 
        2001 Trustees Report, the Medicare HI Trust Fund is 
        projected to become insolvent by 2029. But that is only 
        part of Medicare's total financial outlook.

      In fact, according to the Congressional Budget Office 
        [CBO], the total Medicare Program is already generating 
        huge liabilities: in 2002, Medicare will require $64 
        billion in general revenue and, over 10 years, Medicare 
        will require $1.1 trillion in general revenue. This is 
        because 75 percent of SMI [Part B] financing comes out 
        of general revenues.
      Beyond the 10-year budget window, Medicare's financial 
        liabilities will be exacerbated by the retirement of 
        the baby-boomers in about 2011. As they retire, the 
        growth of the working population--who will finance new 
        retirees' benefits--will not keep pace with that of the 
        retired population. In fact, there is projected to be a 
        permanent shift in the ratio of workers to 
        beneficiaries, from 4.0 workers-to-beneficiaries today, 
        to 2.3 in 2030 and 2.0 in 2075.
      Equally ominous, the 2001 Trustees Report significantly 
        revised upward the long-range Medicare cost growth 
        assumptions following a recommendation of the 2000 
        Medicare Technical Review Panel. The Panel believed 
        that Medicare costs and overall health care spending 
        will grow faster than gross domestic product [GDP] 
        based on the historical impact of advances in medical 
        technology on health care cost increases. Consequently, 
        the Trustees estimate that total Medicare spending will 
        increase from 2.34 percent of GDP in 2001 to 8.49 
        percent of GDP in 2075. In other words, over the long 
        term, Medicare will nearly quadruple its share of the 
        economy.

   Medicare's Outmoded Benefit. Medicare's benefits 
        consistently lag behind modern medicine, as evidenced 
        by its lack of coverage for prescription drugs and 
        catastrophic costs. Consequently, beneficiaries need 
        other supplemental forms of coverage; on average, 
        Medicare only covers around half of a beneficiary's 
        costs. Moreover, a recent report by the Lewin Group 
        found that it takes between 15 months and 5 years to 
        add new technologies to the Medicare Program.

   The Mismanagement of Medicare. Last year, a number 
        of witnesses testifying to the House Budget Committee 
        Task Force on Health contended that Medicare's complex 
        billing and regulatory schemes can actually influence 
        the decisions doctors make in treating their patients. 
        This, coupled with the increasingly close scrutiny by 
        the program's administrators--specifically the Health 
        Care Financing Administration [HCFA]--led one witness 
        to say: ``The sense of intimidation and fear of HCFA 
        among physicians is widespread and troubling.''

      The Mayo Foundation says there are more than 110,000 
        pages of Medicare regulations and supporting documents, 
        and some interpretations of them contradict others. The 
        result: doctors are forced to take time away from 
        patient care to deal with Medicare's rules--and then 
        may still be left wondering whether they have really 
        complied.
      Medicare's complexity also is wasteful. Says Uwe E. 
        Reinhardt, professor of political economy at Princeton 
        University: ``[T]he statutes and rules governing 
        Medicare * * * now run the risk of becoming themselves 
        a form of waste, fraud, and abuse.'' Yet despite all 
        these rules, improper fee-for-service Medicare payments 
        totaled $11.9 billion in fiscal year 2000--and the 
        measure used to detect them is not even designed to 
        identify fraud.

                         FUNCTION 570: MEDICARE
                        [In billions of dollars]
------------------------------------------------------------------------
                                        2002     2002-2006    2002-2011
------------------------------------------------------------------------
Budget Authority...................      229.1      1,335.0      3,308.0
Outlays............................      229.1      1,334.6      3,307.6
------------------------------------------------------------------------

                     FUNCTION 600: INCOME SECURITY

                              ----------                              


                            FUNCTION SUMMARY

    The Income Security function covers most of the Federal 
Government's income support programs. The function includes 
general retirement and disability insurance (excluding Social 
Security)--mainly through the Pension Benefit Guaranty 
Corporation [PBGC]--and benefits to railroad retirees. Other 
components are Federal employee retirement and disability 
benefits (including military retirees); unemployment 
compensation; low-income housing assistance, including Section 
8 housing; food and nutrition assistance, including food stamps 
and school lunch subsidies; and other income security programs. 
This last category includes Temporary Assistance to Needy 
Families [TANF], the government's principal welfare program; 
Supplemental Security Income [SSI]; spending for the refundable 
portion of the Earned Income Credit [EIC]; and the Low-Income 
Home Energy Assistance Program [LIHEAP]. Agencies involved in 
these programs include the Departments of Agriculture, Health 
and Human Services, Housing and Urban Development, and 
Education; the Social Security Administration (for SSI); and 
the Office of Personnel Management (for Federal retirement 
benefits).
    Over the period 1998-2001, total budget authority [BA] in 
Function 600 rose from $231.5 billion to $262.1 billion, a 3.3 
percent average annual increase.

                SUMMARY OF COMMITTEE-REPORTED RESOLUTION

    The resolution calls for $271.5 billion in budget authority 
[BA] and $272.1 billion in outlays in fiscal year 2002, an 
increase of 6 percent in BA compared with 2001. The function 
totals are $1.47 trillion in BA and outlays over 5 years, and 
$3.21 trillion in BA and $3.20 trillion in outlays over 10 
years.
    For fiscal year 2002 discretionary spending, the resolution 
calls for $42.8 billion in BA and $45.9 billion in outlays. The 
5-year discretionary spending totals are $230.9 billion in BA 
and $238.8 billion in outlays. The 10-year discretionary 
spending totals are $500.0 billion in BA and $507.5 billion in 
outlays.
    Mandatory spending in this function is $228.7 billion in BA 
and $226.2 billion in outlays in fiscal year 2002; $1.24 
trillion in BA and $1.23 trillion in outlays over 5 years; and 
$2.71 trillion in BA and $2.69 trillion in outlays over 10 
years.
    Consistent with the President's budget, the resolution 
encourages continued State innovation, and the mobilization of 
private-sector, corporate, and faith-based sources, for 
addressing the needs of low-income Americans--a process that 
began with the historic 1996 welfare reform law. In particular, 
the budget proposes a number of initiatives to encourage more 
charitable giving to community organizations that are 
effectively helping disadvantaged Americans to improve their 
lives and increase their families' well-being. Other 
initiatives are intended to strengthen low-income families and 
to address the needs of children caught in the Nation's foster 
care system.
    The budget also supports the President's proposals for the 
Department of Housing and Urban Development [HUD], which 
reflect the overall effort to restrain the rate of growth among 
Federal agencies relative to recent years. The budget provides 
sufficient funding to renew all expiring public housing 
contracts, and adds funding for 34,000 new section 8 vouchers. 
Additionally, the budget provides new funding to increase home-
ownership among low-income families. Beyond these priorities, 
the focus in fiscal year 2002 will be to improve management of 
HUD's programs, several of which have been designated among the 
General Accounting Office's ``High Risk'' programs, vulnerable 
to substantial amounts of fraud and mismanagement.
    Among the administration's policy proposals aimed at 
helping low-income families and children are the following:

Faith-based and other compassionate conservative proposals

   Creating a Compassion Capital Fund to invest in 
        charitable best practices.

   Providing $60 million in fiscal year 2002 for 
        competitive grants to community and faith-based 
        organizations for initiatives to promote responsible 
        fatherhood and to combat the crisis of father absence. 
        Grants also will be awarded to organizations that 
        conduct marriage education courses and teach conflict 
        resolution.

   Launching a pilot program for inmates nearing 
        release, and making Federal funds available on a 
        competitive basis for faith-based pre-release programs 
        at Federal prisons.

   Making grants available to faith-based and community 
        groups focused on improving the prospects of low-income 
        children of prisoners.

   Providing $33 million in 2002 to establish Second 
        Chance Homes for unwed teenage mothers and providing 
        them with adult supervision when they can no longer 
        remain in their parents' homes.

Other proposals

   Providing $1.4 billion for LIHEAP funding to help 
        low-income families heat their homes.

   Funding the Special Supplemental Nutrition Program 
        for Women, Infants and Children [WIC] at 7.25 million 
        individuals per month, maintaining current program 
        level.

   Maintaining current law policies for the Food Stamp 
        Program, which will result in $20 billion in outlays 
        for benefits and program administration in fiscal year 
        2002.

                      FUNCTION 600: INCOME SECURITY
                        [In billions of dollars]
------------------------------------------------------------------------
                                        2002     2002-2006    2002-2011
------------------------------------------------------------------------
Budget Authority...................      271.5      1,470.6      3,212.8
Outlays............................      272.1      1,467.9      3,201.6
------------------------------------------------------------------------

                     FUNCTION 650: SOCIAL SECURITY

                              ----------                              


                            FUNCTION SUMMARY

    Function 650 consists of the Social Security Program, or 
Old Age, Survivors, and Disability Insurance [OASDI]. It is the 
largest budget function in terms of outlays, and provides funds 
for the Government's largest entitlement program. Under 
provisions of the Budget Enforcement Act, Social Security trust 
funds are ``off-budget.'' Nevertheless, certain expenses, such 
as the Office of the Inspector General of the Social Security 
Administration [SSA], are on-budget.

                SUMMARY OF COMMITTEE-REPORTED RESOLUTION

    For on-budget spending in this function, the resolution 
calls for $11.0 billion in budget authority [BA] and outlays in 
fiscal year 2002, an increase of 12.2 percent in BA compared 
with 2001. The on-budget function totals are $62.8 billion in 
BA and $62.7 billion in outlays over 5 years, and $150.9 
billion in BA and outlays over 10 years.
    For fiscal year 2002 on-budget discretionary spending, the 
resolution calls for $19 million in BA and $18 million in 
outlays. The 5-year on-budget discretionary spending totals are 
$99 million in BA and $98 million in outlays. The 10-year on-
budget discretionary spending totals are $211 million in BA and 
$210 million in outlays.
    On-budget mandatory spending in this function is $11.0 
billion in BA and outlays in fiscal year 2002; $62.7 billion in 
BA and outlays over 5 years; and $150.7 billion in BA and 
outlays over 10 years.
    Social Security's spending path is unsustainable in the 
long run. This trend is driven largely by demographics. As 
demographics change and costs increase, the challenge is to 
ensure that the Social Security system is strengthened for 
tomorrow's retirees. The President intends to meet that 
challenge by establishing a bipartisan Presidential Commission 
this spring to put Social Security on a sound and sustainable 
foundation over the long haul through reform. The Commission 
will make its recommendations this fall and Congress can act by 
the end of the year.
    This budget resolution supports the President's approach 
through the following specific measures:

   It assumes provisions of the Social Security and 
        Medicare Lock-Box Act of 2001 (H.R. 2), recently passed 
        by the House, which prohibits using Social Security 
        surpluses for any purpose other than debt reduction or 
        Social Security reform.

   It assumes the President's proposal to provide $7.7 
        billion for the SSA, an increase of $456 million, or 
        6.3 percent, above fiscal year 2001. The increase will 
        allow SSA to process 100,000 more initial disability 
        claims in 2002 than in 2001.

   It makes no changes in current Social Security 
        benefits or taxes.

                      FUNCTION 650: SOCIAL SECURITY
               [On-budget totals, in billions of dollars]
------------------------------------------------------------------------
                                        2002     2002-2006    2002-2011
------------------------------------------------------------------------
Budget Authority...................       11.0         62.8        150.9
Outlays............................       11.0         62.7        150.9
------------------------------------------------------------------------

              FUNCTION 700: VETERANS BENEFITS AND SERVICES

                              ----------                              


                            FUNCTION SUMMARY

    The Veterans Benefits and Services function includes 
funding for the Department of Veterans Affairs [VA], which 
provides benefits to veterans who meet various eligibility 
rules. Benefits range from income security for veterans, 
principally disability compensation and pensions; veterans 
education, training, and rehabilitation services; hospital and 
medical care for veterans; and other veterans' benefits and 
services, such as home loan guarantees. There are about 24.8 
million veterans.
    Over the period 1998-2001, total budget authority [BA] in 
Function 700 rose from $42.8 billion to $46.7 billion, a 3.7-
percent average annual increase. The largest component of this 
growth was medical care, which increased from $17.7 billion to 
$20.9 billion, a 6.0-percent average annual increase.

                SUMMARY OF COMMITTEE-REPORTED RESOLUTION

    The resolution calls for $52.3 billion in BA and $51.6 
billion in outlays in fiscal year 2002, an increase of 12 
percent in BA compared with 2001. The function totals are 
$278.7 billion in BA and $276.5 in outlays over 5 years, and 
$594.0 billion in BA and $589.8 billion in outlays over 10 
years.
    For discretionary spending, the resolution calls for $24.2 
billion in BA and $23.9 billion in outlays in fiscal year 2002. 
The 5-year discretionary spending totals are $122.1 billion in 
BA and $121.2 billion in outlays. The 10-year discretionary 
spending totals are $260.0 billion in BA and $257.7 billion in 
outlays. Mandatory spending in this function would be $28.0 
billion in BA and $27.7 billion in outlays in fiscal year 2002; 
$156.6 billion in BA and $155.3 billion in outlays over 5 
years; and $334.0 billion in BA and $332.1 billion in outlays 
over 10 years.
    Discretionary spending is $1.7 billion above the fiscal 
year 2001 level. These levels will ensure that veterans receive 
high-quality health care, and accurate and timely entitlement 
benefits. It also continues the commitment to ensure that 
veterans' cemeteries remain national shrines. The budget levels 
represent an increase in net discretionary authority of 7.6 
percent over the fiscal year 2001 level.
    The budget assumes the enactment of veterans' benefits 
enhancements in H.R. 801, the Veterans' Opportunity Act of 
2001. It also assumes increases in mandatory spending for 
Montgomery GI Bill education benefits improvements. The budget 
assumes the permanent extension of several expiring provisions 
of existing law pertaining to veterans benefits. These include 
IRS income verification for means-tested veterans and survivor 
benefits; limiting VA pension to Medicaid recipients in nursing 
homes; and continuing current housing loan fees.

              FUNCTION 700: VETERANS BENEFITS AND SERVICES
                        [In billions of dollars]
------------------------------------------------------------------------
                                        2002     2002-2006    2002-2011
------------------------------------------------------------------------
Budget Authority...................       52.3        278.7        594.0
Outlays............................       51.6        276.5        589.8
------------------------------------------------------------------------

                FUNCTION 750: ADMINISTRATION OF JUSTICE

                              ----------                              


                            FUNCTION SUMMARY

    The first component of the Administration of Justice 
function consists of funding for Federal law enforcement 
activities. This includes criminal investigations by the 
Federal Bureau of Investigation [FBI] and the Drug Enforcement 
Administration [DEA], and border enforcement and the control of 
illegal immigration by the Customs Service and the Immigration 
and Naturalization Service [INS]. Also funded through this 
function are the Federal courts, Federal prison construction, 
and criminal justice assistance. The last category is used for 
local law enforcement programs, such as the Violence Against 
Women Act program. Most of the programs in this function have 
received part of their funding from the Violent Crime Reduction 
Trust Fund, which expired at the end of fiscal year 2000.
    Criminal justice assistance has increased rapidly since 
1995 due to increases in State and local grant programs, INS 
border patrol activities, and anti-terrorism and anti-drug 
activities of the FBI and the DEA. Over the period 1998-2001, 
total budget authority [BA] in Function 750 rose from $25.9 
billion to $30.0 billion, a 5.2-percent average annual 
increase.

                SUMMARY OF COMMITTEE-REPORTED RESOLUTION

    The resolution calls for $30.9 billion in budget authority 
[BA] and $30.3 billion in outlays in fiscal year 2002, an 
increase of 1.0 percent in BA compared with 2001. The function 
totals are $166.6 billion in BA and $166.5 billion in outlays 
over 5 years, and $359.3 billion in BA and $356.8 billion in 
outlays over 10 years.
    For discretionary spending, the resolution calls for $29.7 
billion in BA and $29.5 billion in outlays in fiscal year 2002. 
The 5-year discretionary spending totals are $158.4 billion in 
BA and $158.3 billion in outlays. The 10-year discretionary 
spending totals are $338.6 billion in BA and $336.8 billion in 
outlays. Mandatory spending in this function would be $1.1 
billion in BA and $798 million in outlays in fiscal year 2002; 
$8.3 billion in BA and $8.2 billion in outlays over 5 years; 
and $20.7 billion in BA and $20.0 billion in outlays over 10 
years.
    This resolution accommodates the President's proposals to 
increase funding for the Drug Enforcement Agency by 9 percent; 
the Federal Bureau of Investigation by 8 percent; the Federal 
Bureau of Prisons by 8 percent; the U.S. Attorneys by 7 
percent; and to hire and train 550 new Border Control agents.

                 FUNCTION 750: ADMINISTRATION OF JUSTICE
                        [In billions of dollars]
------------------------------------------------------------------------
                                        2002     2002-2006    2002-2011
------------------------------------------------------------------------
Budget Authority...................       30.9        166.6        359.3
Outlays............................       30.3        166.5        356.8
------------------------------------------------------------------------

                    FUNCTION 800: GENERAL GOVERNMENT

                              ----------                              


                            FUNCTION SUMMARY

    The General Government function consists of the activities 
of the Legislative Branch; the Executive Office of the 
President; general tax collection and fiscal operations of the 
Department of Treasury (including the Internal Revenue 
Service); the property and personnel costs of the General 
Services Administration and the Office of Personnel Management; 
general purpose fiscal assistance to States, localities, the 
District of Columbia, and U.S. territories; and other general 
government activities. The Internal Revenue Service accounts 
for about half of the spending in this function.
    Over the period 1998-2001, total budget authority [BA] in 
Function 800 rose from $16.0 billion to $16.3 billion, a 0.4 
percent average annual increase. (Any analysis)

                SUMMARY OF COMMITTEE-REPORTED RESOLUTION

    The resolution calls for $16.7 billion in budget authority 
[BA] and $16.3 billion in outlays in fiscal year 2002, an 
increase of 2.2 percent in BA compared with 2001. The function 
totals are $84.2 billion in BA and $83.0 billion in outlays 
over 5 years, and $176.7 billion in BA and $173.4 billion in 
outlays over 10 years.
    For fiscal year 2002 discretionary spending, the resolution 
calls for $14.8 billion in BA and $14.5 billion in outlays. The 
5-year discretionary spending totals are $76.3 billion in BA 
and $75.1 billion in outlays. The 10-year discretionary 
spending totals are $162.8 billion in BA and $159.4 in outlays.
    Mandatory spending in this function is $1.9 billion in BA 
and outlays in fiscal year 2002; $7.9 billion in BA and $8.0 
billion in outlays over 5 years; and $13.9 billion in BA and 
$14.0 billion in outlays over 10 years.

                    FUNCTION 800: GENERAL GOVERNMENT
                        [In billions of dollars]
------------------------------------------------------------------------
                                        2002     2002-2006    2002-2011
------------------------------------------------------------------------
Budget Authority...................       16.7         84.2        176.7
Outlays............................       16.3         83.0        173.4
------------------------------------------------------------------------

                       FUNCTION 900: NET INTEREST

                              ----------                              


                            FUNCTION SUMMARY

    Net interest is the interest paid for the Federal 
Government's borrowing. Function 900 is a mandatory payment, 
with no discretionary components.

                SUMMARY OF COMMITTEE-REPORTED RESOLUTION

    The accounting of net interest in the budget includes only 
the on-budget component of interest spending. This spending 
declines at a relatively steady but moderate pace from $274 
billion in 2001 to $219 billion in 2011. But even this decline 
understates--by significant amounts--the benefits to taxpayers 
of the debt reduction incorporated in this budget.
    When off-budget interest is taken into account (the 
increasing Federal credit accruing to the Social Security Trust 
Fund surplus in the form of government IOUs, and entered as 
negative spending), the overall net interest spending of the 
Federal Government is being virtually eliminated. It declines 
from $205 billion in 2001 to just $21 billion in 2011.

                  FUNCTION 900: ON-BUDGET NET INTEREST
               [On-budget totals, in billions of dollars]
------------------------------------------------------------------------
                                        2002     2002-2006    2002-2011
------------------------------------------------------------------------
Budget Authority...................      257.6      1,240.7      2,383.3
Outlays............................      257.6      1,240.7      2,383.3
------------------------------------------------------------------------

                        FUNCTION 920: ALLOWANCES

                              ----------                              


                            FUNCTION SUMMARY

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

                SUMMARY OF COMMITTEE-REPORTED RESOLUTION

    For discretionary spending, the budget resolution calls for 
$5.0 billion in budget authority [BA] and $1.8 billion in 
outlays in fiscal year 2002. The 5-year spending totals are 
$29.1 billion in BA and $22.4 billion in outlays; and the 10-
year totals are $64.0 billion in BA and $55.5 billion in 
outlays. There is no mandatory spending in this function.
    The funds identified constitute a set-aside fund for 
unanticipated emergency needs during the fiscal year.

                        FUNCTION 920: ALLOWANCES
                        [In billions of dollars]
------------------------------------------------------------------------
                                        2002     2002-2006    2002-2011
------------------------------------------------------------------------
Budget Authority...................        5.0         29.1         64.0
Outlays............................        1.8         22.4         55.5
------------------------------------------------------------------------

            FUNCTION 950: UNDISTRIBUTED OFFSETTING RECEIPTS

                              ----------                              


                            FUNCTION SUMMARY

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

                SUMMARY OF COMMITTEE-REPORTED RESOLUTION

    The resolution calls for -$42.3 billion in budget authority 
[BA] and outlays in fiscal year 2002, a decrease of 10.6 
percent in BA compared with 2001, (or an increase of 10.6 
percent in receipts compared with 2001). The 5-year function 
totals are -$239.8 billion in BA and outlays; and the 10-year 
totals are -$492.3 billion in BA and outlays.
    These totals are entirely mandatory spending. There is no 
discretionary spending in this function.
    The resolution does not assume lease bonuses from the 
Arctic National Wildlife Refuge or an analog spectrum license 
fee or other spectrum offsets. It also assumes permanent 
extension of the Balanced Budget Act [BBA] provision that 
increased, by 1.51 percentage points, Federal agency 
contributions to the Civil Service Retirement and Disability 
Trust Fund [CSRDF] on behalf of their CSRS-participant 
employees. That provision had been scheduled to sunset after 
fiscal year 2002.

             FUNCTION 950: UNDISTRIBUTED OFFSETTING RECEIPTS
               [On-budget totals, in billions of dollars]
------------------------------------------------------------------------
                                        2002     2002-2006    2002-2011
------------------------------------------------------------------------
Budget Authority...................      -42.3       -239.8       -492.3
Outlays............................      -42.3       -239.8       -492.3
------------------------------------------------------------------------


                                      TABLE S1.--FISCAL YEAR 2002 BUDGET RESOLUTION AS REPORTED BY THE HOUSE BUDGET COMMITTEE, TOTAL SPENDING AND REVENUES
                                                                                    [In billions of dollars]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                         Fiscal year                            2001      2002      2003      2004      2005      2006      2007      2008      2009      2010      2011    2002-2006  2002-2011
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
SUMMARY

Total Spending:
    BA......................................................   1,906.9   1,977.3   2,035.5   2,112.7   2,200.7   2,264.8   2,343.6   2,437.7   2,532.5   2,634.0   2,743.5   10,591.0   23,282.3
    OT......................................................   1,856.8   1,941.2   2,007.4   2,085.8   2,176.1   2,236.5   2,312.9   2,409.9   2,505.9   2,609.7   2,718.2   10,447.0   23,003.6
On-budget:
    BA......................................................   1,556.9   1,613.7   1,660.3   1,723.2   1,799.9   1,851.6   1,918.0   1,998.5   2,077.0   2,161.5   2,252.8    8,648.7   19,056.5
    OT......................................................   1,508.9   1,579.8   1,634.6   1,698.6   1,777.6   1,825.7   1,889.9   1,973.7   2,053.6   2,139.9   2,230.2    8,516.3   18,803.6
Off-budget:
    BA......................................................     350.0     363.6     375.2     389.5     400.8     413.2     425.6     439.2     455.5     472.5     490.7    1,942.3    4,225.8
    OT......................................................     347.9     361.4     372.8     387.2     398.5     410.8     423.0     436.2     452.3     469.8     488.0    1,930.7    4,200.0
Revenues:
    Total...................................................   2,128.8   2,168.1   2,259.9   2,344.4   2,436.8   2,521.4   2,628.5   2,754.2   2,889.6   3,038.6   3,206.2   11,730.6   26,247.7
    On-Budget...............................................   1,624.7   1,635.8   1,699.0   1,755.7   1,816.7   1,872.2   1,948.6   2,041.7   2,143.2   2,256.6   2,387.0    8,779.4   19,556.5
    Off-Budget..............................................     504.1     532.3     560.9     588.7     620.1     649.2     679.9     712.5     746.4     782.0     819.2    2,951.2    6,691.2
Surplus/Deficit (-):
    Total...................................................     272.0     226.9     252.5     258.6     260.7     284.9     315.6     344.3     383.7     428.9     488.0    1,283.6    3,244.1
    On-Budget...............................................     115.8      56.0      64.4      57.1      39.1      46.5      58.7      68.0      89.6     116.7     156.8      263.1      752.9
    Off-Budget..............................................     156.2     170.9     188.1     201.5     221.6     238.4     256.9     276.3     294.1     312.2     331.2    1,020.5    2,491.2
Debt Held by the Public (end of year).......................     3,157     2,944     2,710     2,471     2,226     1,955     1,651     1,316       939       878       818       na         na
Debt Subject to Limit (end of year).........................     5,575     5,623     5,674     5,733     5,807     5,903     6,394     6,972     7,596     8,623     9,436       na         na

BY FUNCTION

National Defense (050):
    BA......................................................     310.3     324.6     333.3     342.6     352.2     362.1     372.2     382.7     393.5     404.5     416.3    1,714.8    3,684.0
    OT......................................................     300.6     319.3     325.5     334.0     347.2     354.6     361.9     375.6     386.5     397.6     409.2    1,680.6    3,611.4
International Affairs (150):
    BA......................................................      22.4      23.9      23.9      24.5      25.4      26.2      26.9      27.4      28.0      28.4      29.6      123.9      264.2
    OT......................................................      19.7      19.6      19.9      20.4      20.8      21.4      22.1      22.8      23.6      24.2      25.0      102.1      219.8
General Science, Space, and Technology (250):
    BA......................................................      21.0      22.2      22.6      23.1      23.6      24.3      24.9      25.6      26.2      26.7      27.8      115.8      247.0
    OT......................................................      19.6      21.0      21.9      22.6      23.2      23.7      24.3      24.9      25.6      26.1      26.9      112.4      240.2
Energy (270):
    BA......................................................       1.2       0.8       0.8       0.9       0.9       1.0       1.1       2.2       2.3       2.3       2.2        4.4       14.5
    OT......................................................      -0.1      -0.2      -0.5      -0.6      -0.5      -0.4      -0.2       0.4       0.8       1.0       0.9       -2.2        0.7
Natural Resources and Environment (300):
    BA......................................................      28.8      26.7      26.8      27.7      27.9      28.0      28.6      29.3      30.6      31.2      32.4      137.1      289.2
    OT......................................................      26.4      26.4      27.0      27.5      27.7      27.8      28.3      28.8      29.9      30.5      31.5      136.4      285.4
Agriculture (350):
    BA......................................................      20.7      19.1      18.6      18.5      18.3      17.9      16.5      15.6      15.8      15.9      16.1       92.4      172.3
    OT......................................................      18.2      17.5      17.0      17.1      16.9      16.3      14.9      14.1      14.4      14.5      14.7       84.8      157.4
Agriculture Emergencies (350):
    BA......................................................       5.6  ........  ........  ........  ........  ........  ........  ........  ........  ........  ........  .........  .........
    OT......................................................       5.5  ........  ........  ........  ........  ........  ........  ........  ........  ........  ........  .........  .........
Commerce and Housing Credit (370):
    BA......................................................       3.5       8.7       8.5      14.1      12.7      12.7      13.5      13.9      14.3      18.7      13.5       56.7      130.6
    OT......................................................       0.2       5.7       3.1       9.9       9.0       8.4       9.2       9.3       9.6      12.8       9.8       36.1       86.8
    On-Budget:
        BA..................................................       2.5       7.4       8.6      12.8      12.7      12.7      13.5      13.9      14.3      18.7      13.5       54.2      128.1
        OT..................................................      -0.8       4.4       3.2       8.6       9.0       8.4       9.2       9.3       9.6      12.8       9.8       33.6       84.3
    Off-Budget:
        BA..................................................       1.0       1.3      -0.1       1.3  ........  ........  ........  ........  ........  ........  ........        2.5        2.5
        OT..................................................       1.0       1.3      -0.1       1.3  ........  ........  ........  ........  ........  ........  ........        2.5        2.5
Transportation (400):
    BA......................................................      62.1      61.0      58.7      59.2      59.7      60.3      60.8      61.3      61.8      62.2      63.1      298.9      608.1
    OT......................................................      51.7      55.6      58.3      60.2      62.0      63.7      64.9      66.4      68.0      69.3      71.2      299.8      639.6
Community and Regional Development (450):
    BA......................................................      11.2      10.1      10.3      10.6      10.9      11.2      11.5      11.8      12.1      12.3      12.8       53.1      113.6
    OT......................................................      11.4      11.4      11.0      10.7      10.4      10.3      10.5      10.8      11.0      11.3      11.6       53.8      109.0
Education, Training, Employment and Social Services (500):
    BA......................................................      76.9      82.1      82.0      83.9      87.3      90.2      92.8      95.7      98.4     100.5     104.6      425.5      917.5
    OT......................................................      69.8      76.2      81.7      82.3      84.8      87.7      90.4      93.0      95.9      98.4     101.4      412.7      891.8
Health (550):
    BA......................................................     182.6     204.0     229.7     246.5     253.8     266.8     287.0     307.6     329.7     354.2     382.4    1,200.8    2,861.7
    OT......................................................     175.5     201.1     225.8     244.7     251.5     264.6     284.2     305.2     327.6     352.5     380.2    1,187.7    2,837.4
Medicare (570):
    BA......................................................     217.5     229.1     243.9     260.2     291.8     309.9     336.1     362.8     391.1     423.4     459.4    1,334.9    3,307.7
    OT......................................................     217.7     229.1     243.7     260.4     291.7     309.7     336.4     362.7     390.8     423.7     459.4    1,334.6    3,307.6
Income Security (600):
    BA......................................................     255.9     271.5     281.8     293.3     308.1     315.9     323.4     337.9     349.3     359.9     371.6    1,470.6    3,212.7
    OT......................................................     256.9     272.1     282.3     292.5     306.7     314.4     321.9     336.5     347.6     358.2     369.4    1,468.0    3,201.6
Social Security (650):
    BA......................................................     435.2     457.2     479.6     503.8     529.2     555.8     584.1     614.7     649.5     686.2     725.5    2,525.6    5,785.6
    OT......................................................     433.1     455.0     477.2     501.5     526.9     553.4     581.5     611.7     646.3     683.5     722.8    2,514.0    5,759.8
    On-Budget:
        BA..................................................       9.8      11.0      11.7      12.5      13.3      14.2      15.2      16.2      17.5      18.9      20.4       62.7      150.9
        OT..................................................       9.8      11.0      11.7      12.5      13.3      14.2      15.2      16.2      17.5      18.9      20.4       62.7      150.9
    Off-Budget:
        BA..................................................     425.4     446.2     467.9     491.3     515.9     541.6     568.9     598.5     632.0     667.3     705.1    2,462.9    5,634.7
        OT..................................................     423.3     444.0     465.5     489.0     513.6     539.2     566.3     595.5     628.8     664.6     702.4    2,451.3    5,608.9
Veterans Benefits and Services (700):
    BA......................................................      46.7      52.3      53.0      55.3      59.3      58.8      58.1      62.0      63.4      64.7      67.1      278.7      594.0
    OT......................................................      45.9      51.6      52.8      54.9      58.9      58.3      57.7      61.6      63.0      64.4      66.7      276.5      589.9
Administration of Justice (750):
    BA......................................................      30.6      30.9      31.9      33.6      34.6      35.7      36.6      37.6      38.5      39.2      40.8      166.7      359.4
    OT......................................................      30.0      30.3      32.1      34.1      34.7      35.3      36.1      37.1      38.1      38.8      40.2      166.5      356.8
General Government (800):
    BA......................................................      16.3      16.7      16.3      16.7      17.0      17.5      17.9      18.0      18.4      18.7      19.4       84.2      176.6
    OT......................................................      16.1      16.3      16.3      16.6      16.7      17.1      17.5      17.7      18.0      18.3      18.9       83.0      173.4
Net Interest (900):
    BA......................................................     205.1     182.2     169.8     155.3     138.0     122.0     105.4      87.1      66.8      44.6      20.9      767.3    1,092.1
    OT......................................................     205.1     182.2     169.8     155.3     138.0     122.0     105.4      87.1      66.8      44.6      20.9      767.3    1,092.1
    On-Budget:
        BA..................................................     273.6     257.6     253.2     248.5     242.4     239.0     236.5     233.3     229.3     224.4     219.1    1,240.7    2,383.3
        OT..................................................     273.6     257.6     253.2     248.5     242.4     239.0     236.5     233.3     229.3     224.4     219.1    1,240.7    2,383.3
    Off-Budget:
        BA..................................................     -68.5     -75.4     -83.4     -93.2    -104.4    -117.0    -131.1    -146.2    -162.5    -179.8    -198.2     -473.4   -1,291.2
        OT..................................................     -68.5     -75.4     -83.4     -93.2    -104.4    -117.0    -131.1    -146.2    -162.5    -179.8    -198.2     -473.4   -1,291.2
Allowances (920):
    BA......................................................      -0.5       5.0       5.5       6.0       6.2       6.4       6.6       6.7       7.0       7.2       7.5       29.1       64.1
    OT......................................................      -0.3       1.8       4.0       4.8       5.7       6.1       6.3       6.4       6.6       6.8       7.0       22.4       55.5
Undistributed Offsetting Receipts (950):
    BA......................................................     -46.2     -50.8     -61.5     -63.1     -56.2     -57.9     -60.4     -62.2     -64.2     -66.8     -69.5     -289.5     -612.6
    OT......................................................     -46.2     -50.8     -61.5     -63.1     -56.2     -57.9     -60.4     -62.2     -64.2     -66.8     -69.5     -289.5     -612.6
    On-Budget:
        BA..................................................     -38.3     -42.3     -52.3     -53.2     -45.5     -46.5     -48.2     -49.1     -50.2     -51.8     -53.3     -239.8     -492.4
        OT..................................................     -38.3     -42.3     -52.3     -53.2     -45.5     -46.5     -48.2     -49.1     -50.2     -51.8     -53.3     -239.8     -492.4
    Off-Budget:
        BA..................................................      -7.9      -8.5      -9.2      -9.9     -10.7     -11.4     -12.2     -13.1     -14.0     -15.0     -16.2      -49.7     -120.2
        OT..................................................      -7.9      -8.5      -9.2      -9.9     -10.7     -11.4     -12.2     -13.1     -14.0     -15.0     -16.2      -49.7     -120.2
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


                     TABLE S2.--FISCAL YEAR 2002 BUDGET RESOLUTION AS REPORTED BY THE HOUSE BUDGET COMMITTEE, DISCRETIONARY SPENDING
                                                                [In billions of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                Fiscal year                  2001    2002    2003    2004    2005    2006    2007    2008    2009    2010    2011   2002-2006  2002-2011
--------------------------------------------------------------------------------------------------------------------------------------------------------
SUMMARY

Total Discretionary Spending:
    BA....................................   635.5   660.6   678.7   697.5   717.0   737.0   758.1   779.4   801.5   823.6   846.9    3,490.8    7,500.3
    OT....................................   645.5   683.8   707.7   725.3   747.8   765.8   784.7   809.5   832.2   855.7   878.3    3,630.4    7,790.8
Defense:
    BA....................................   311.1   324.9   333.4   342.8   352.4   362.3   372.4   382.9   393.7   404.7   416.5    1,715.8    3,686.0
    OT....................................   301.3   319.7   325.7   334.3   347.4   354.7   362.1   375.8   386.7   397.8   409.4    1,681.8    3,613.6
Nondefense:
    BA....................................   324.4   335.7   345.3   354.7   364.6   374.7   385.7   396.5   407.8   418.9   430.4    1,775.0    3,814.3
    OT....................................   344.2   364.1   382.0   391.0   400.4   411.1   422.6   433.7   445.5   457.9   468.9    1,948.6    4,177.2

BY FUNCTION

National Defense (050):
    BA....................................   311.1   324.9   333.4   342.8   352.4   362.3   372.4   382.9   393.7   404.7   416.5    1,715.8    3,686.0
    OT....................................   301.3   319.7   325.7   334.3   347.4   354.7   362.1   375.8   386.7   397.8   409.4    1,681.8    3,613.6
International Affairs (150):
    BA....................................    22.6    23.9    23.8    24.5    25.2    25.9    26.6    27.3    28.0    28.4    29.6      123.3      263.2
    OT....................................    23.3    23.2    23.5    24.0    24.3    24.9    25.6    26.2    26.9    27.4    28.3      119.9      254.3
General Science, Space, and Technology
 (250):
    BA....................................    20.9    22.0    22.5    23.1    23.6    24.3    24.9    25.5    26.2    26.6    27.7      115.5      246.4
    OT....................................    19.6    21.0    21.8    22.4    23.0    23.6    24.3    24.9    25.5    26.0    26.8      111.8      239.3
Energy (270):
    BA....................................     3.1     2.8     2.7     3.0     3.1     3.2     3.3     4.0     4.0     4.1     4.1       14.8       34.3
    OT....................................     3.1     2.9     2.8     2.9     3.0     3.1     3.2     3.6     3.9     4.0     4.1       14.7       33.5
Natural Resources and Environment (300):
    BA....................................    28.7    26.4    26.5    27.2    27.4    27.4    28.1    28.8    29.7    30.2    31.4      134.9      283.1
    OT....................................    26.4    26.2    26.6    27.0    27.2    27.3    27.7    28.3    29.0    29.6    30.6      134.3      279.5
Agriculture (350):
    BA....................................     4.8     4.8     5.2     5.2     5.3     5.5     5.6     5.7     5.9     6.0     6.2       26.0       55.4
    OT....................................     4.7     4.8     5.1     5.1     5.2     5.4     5.5     5.7     5.8     5.9     6.1       25.6       54.6
Commerce and Housing Credit (370):
    BA....................................     1.4    -0.2    -0.2    -0.5    -0.6    -0.6     0.3     0.5     1.0     5.4     0.2       -2.1        5.3
    OT....................................     2.0     0.1    -0.3    -0.6    -0.8    -0.8     0.2     0.3     0.6     4.0     1.0       -2.4        3.7
On-budget:
    BA....................................     1.4    -0.2    -0.2    -0.5    -0.6    -0.6     0.3     0.5     1.0     5.4     0.2       -2.1        5.3
    OT....................................     2.0     0.1    -0.3    -0.6    -0.8    -0.8     0.2     0.3     0.6     4.0     1.0       -2.4        3.7
Off-budget:
    BA....................................  ......  ......  ......  ......  ......  ......  ......  ......  ......  ......  ......  .........  .........
    OT....................................  ......  ......  ......  ......  ......  ......  ......  ......  ......  ......  ......  .........  .........
Transportation (400):
    BA....................................    19.0    16.2    16.6    17.0    17.5    18.0    18.5    18.9    19.4    19.7    20.5       85.3      182.3
    OT....................................    49.7    53.9    56.2    58.2    59.9    61.7    63.0    64.4    66.0    67.3    69.2      289.9      619.8
Community and Regional Development (450):
    BA....................................    11.6    10.1    10.4    10.6    10.9    11.2    11.5    11.8    12.1    12.3    12.8       53.2      113.7
    OT....................................    12.0    11.7    11.5    11.1    10.8    10.8    11.0    11.3    11.6    11.9    12.2       55.9      113.9
Education, Training, Employment and Social
 Services (500):
    BA....................................    61.2    65.3    65.6    67.6    69.5    71.5    73.5    75.6    77.5    78.7    82.0      339.5      726.8
    OT....................................    54.0    59.7    65.4    66.0    67.6    69.6    71.6    73.4    75.6    77.2    79.4      328.3      705.5
Health (550):
    BA....................................    38.8    41.0    45.5    47.0    48.5    50.1    51.4    52.6    54.0    54.8    56.9      232.1      501.8
    OT....................................    33.8    38.1    41.5    44.7    46.5    48.1    49.6    51.0    52.3    53.4    54.8      218.9      480.0
Medicare (570):
    BA....................................     3.4     3.4     3.4     3.5     3.6     3.8     3.9     4.0     4.1     4.1     4.3       17.7       38.1
    OT....................................     3.3     3.4     3.5     3.5     3.6     3.7     3.8     3.9     4.0     4.1     4.2       17.7       37.7
Income Security (600):
    BA....................................    39.5    42.8    44.5    46.2    48.0    49.4    50.8    52.2    53.8    55.1    57.2      230.9      500.0
    OT....................................    44.0    45.9    47.2    47.5    48.5    49.7    51.0    52.5    53.7    54.9    56.5      238.8      507.4
Social Security (650):
    BA....................................     3.4     3.5     3.5     3.6     3.7     3.8     3.9     4.0     4.1     4.2     4.3       18.1       38.6
    OT....................................     3.4     3.5     3.5     3.6     3.6     3.8     3.9     4.0     4.1     4.1     4.3       18.0       38.4
On-budget:
    BA....................................  ......  ......  ......  ......  ......  ......  ......  ......  ......  ......  ......  .........  .........
    OT....................................  ......  ......  ......  ......  ......  ......  ......  ......  ......  ......  ......  .........  .........
Off-budget:
    BA....................................     3.4     3.5     3.5     3.6     3.7     3.8     3.9     4.0     4.1     4.2     4.3       18.1       38.6
    OT....................................     3.4     3.5     3.5     3.6     3.6     3.8     3.9     4.0     4.1     4.1     4.3       18.0       38.4
Veterans Benefits and Services (700):
    BA....................................    22.5    24.2    23.4    24.1    24.8    25.5    26.2    26.9    27.6    27.9    29.2      122.0      259.8
    OT....................................    22.1    23.9    23.5    24.0    24.6    25.3    26.0    26.6    27.3    27.7    28.9      121.3      257.8
Administration of Justice (750):
    BA....................................    30.0    29.7    31.6    31.4    32.3    33.3    34.2    35.1    36.1    36.6    38.2      158.3      338.5
    OT....................................    29.3    29.5    31.5    31.8    32.4    33.1    33.9    34.8    35.7    36.4    37.7      158.3      336.8
General Government (800):
    BA....................................    14.0    14.8    14.8    15.2    15.6    16.0    16.4    16.9    17.3    17.6    18.3       76.4      162.9
    OT....................................    13.8    14.5    14.7    15.0    15.3    15.7    16.0    16.4    16.9    17.2    17.8       75.2      159.5
Allowances (920):
    BA....................................    -0.5     5.0     5.5     6.0     6.2     6.4     6.6     6.7     7.0     7.2     7.5       29.1       64.1
    OT....................................    -0.3     1.8     4.0     4.8     5.7     6.1     6.3     6.4     6.6     6.8     7.0       22.4       55.5
--------------------------------------------------------------------------------------------------------------------------------------------------------


                                           TABLE S3.--FISCAL YEAR 2002 BUDGET RESOLUTION AS REPORTED BY THE HOUSE BUDGET COMMITTEE, MANDATORY SPENDING
                                                                                    [In billions of dollars]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                        Fiscal year                           2001      2002      2003      2004      2005      2006      2007      2008      2009      2010      2011     2002-2006   2002-2011
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
SUMMARY

Total Mandatory Spending:
    BA....................................................   1,271.8   1,316.5   1,357.1   1,415.2   1,483.9   1,527.7   1,585.7   1,658.1   1,731.1   1,810.2   1,896.4     7,100.4    15,781.9
    OT....................................................   1,211.5   1,257.6   1,299.7   1,360.6   1,427.9   1,470.6   1,528.3   1,600.2   1,673.6   1,753.7   1,839.8     6,816.4    15,212.0
On-budget:
    BA....................................................     925.3     956.4     985.4   1,029.3   1,086.8   1,118.3   1,164.0   1,222.9   1,279.7   1,341.9   1,410.1     5,176.2    11,594.8
    OT....................................................     867.0     899.6     930.4     976.9   1,033.1   1,063.5   1,109.1   1,167.9   1,225.4   1,288.1   1,356.1     4,903.5    11,050.1
Off-budget:
    BA....................................................     346.5     360.1     371.7     385.9     397.1     409.4     421.7     435.2     451.4     468.3     486.3     1,924.2     4,187.1
    OT....................................................     344.5     358.0     369.3     383.7     394.8     407.1     419.2     432.3     448.2     465.6     483.7     1,912.9     4,161.9

BY FUNCTION

National Defense (050):
    BA....................................................      -0.7      -0.4      -0.2      -0.2      -0.2      -0.2      -0.2      -0.2      -0.2      -0.2      -0.2        -1.2        -2.2
    OT....................................................      -0.7      -0.4      -0.2      -0.2      -0.2      -0.2      -0.2      -0.2      -0.2      -0.2      -0.2        -1.2        -2.2
International Affairs (150):
    BA....................................................      -0.2  ........  ........  ........       0.2       0.2       0.3       0.2  ........  ........  ........         0.4         0.9
    OT....................................................      -3.6      -3.6      -3.7      -3.6      -3.5      -3.5      -3.4      -3.4      -3.3      -3.3      -3.3       -17.9       -34.6
General Science, Space, and Technology (250):
    BA....................................................       0.1       0.2       0.2  ........  ........  ........  ........  ........  ........  ........  ........         0.4         0.4
    OT....................................................       0.1       0.1       0.1       0.1       0.2       0.1       0.1  ........  ........  ........  ........         0.6         0.7
Energy (270):
    BA....................................................      -1.9      -1.9      -2.0      -2.1      -2.2      -2.2      -2.2      -1.8      -1.8      -1.8      -1.9       -10.4       -19.9
    OT....................................................      -3.2      -3.2      -3.3      -3.5      -3.5      -3.5      -3.5      -3.2      -3.1      -3.1      -3.2       -17.0       -33.1
Natural Resources and Environment (300):
    BA....................................................       0.1       0.3       0.4       0.5       0.5       0.6       0.5       0.5       0.9       1.0       1.0         2.3         6.2
    OT....................................................  ........       0.2       0.4       0.4       0.5       0.5       0.5       0.5       0.9       0.9       0.9         2.0         5.7
Agriculture (350):
    BA....................................................      15.9      14.3      13.4      13.3      13.0      12.4      10.9       9.9       9.9       9.9       9.9        66.4       116.9
    OT....................................................      13.5      12.7      11.9      12.0      11.6      10.9       9.4       8.4       8.5       8.6       8.6        59.1       102.6
Agriculture Emergencies (350):
    BA....................................................       5.6  ........  ........  ........  ........  ........  ........  ........  ........  ........  ........  ..........  ..........
    OT....................................................       5.5  ........  ........  ........  ........  ........  ........  ........  ........  ........  ........  ..........  ..........
Commerce and Housing Credit (370):
    BA....................................................       2.2       8.9       8.7      14.6      13.4      13.3      13.3      13.3      13.3      13.3      13.3        58.9       125.4
    OT....................................................      -1.8       5.5       3.4      10.5       9.8       9.2       9.0       9.0       9.0       8.9       8.8        38.4        83.1
On-budget:
    BA....................................................       1.2       7.6       8.8      13.3      13.4      13.3      13.3      13.3      13.3      13.3      13.3        56.4       122.9
    OT....................................................      -2.8       4.2       3.5       9.2       9.8       9.2       9.0       9.0       9.0       8.9       8.8        35.9        80.6
Off-budget:
    BA....................................................       1.0       1.3      -0.1       1.3  ........  ........  ........  ........  ........  ........  ........         2.5         2.5
    OT....................................................       1.0       1.3      -0.1       1.3  ........  ........  ........  ........  ........  ........  ........         2.5         2.5
Transportation (400):
    BA....................................................      43.2      44.8      42.2      42.2      42.2      42.3      42.3      42.4      42.4      42.5      42.5       213.7       425.8
    OT....................................................       2.0       1.7       2.1       2.1       2.0       2.0       1.9       2.0       2.0       2.0       2.0         9.9        19.8
Community and Regional Development (450):
    BA....................................................      -0.4  ........  ........  ........  ........  ........  ........  ........  ........  ........  ........  ..........  ..........
    OT....................................................      -0.7      -0.3      -0.5      -0.4      -0.5      -0.5      -0.5      -0.5      -0.5      -0.6      -0.6        -2.2        -4.9
Education, Training, Employment and Social Services (500):
    BA....................................................      15.7      16.8      16.4      16.3      17.9      18.7      19.4      20.1      21.0      21.8      22.7        86.1       191.1
    OT....................................................      15.8      16.6      16.3      16.3      17.2      18.1      18.8      19.5      20.3      21.2      22.0        84.5       186.3
Health (550):
    BA....................................................     143.8     163.0     184.2     199.6     205.3     216.7     235.6     255.0     275.7     299.4     325.5       968.8     2,360.0
    OT....................................................     141.7     163.0     184.3     200.0     205.0     216.5     234.6     254.2     275.3     299.1     325.4       968.8     2,357.4
Medicare (570):
    BA....................................................     214.2     225.7     240.5     256.7     288.1     306.2     332.3     358.9     387.1     419.3     455.1     1,317.2     3,269.9
    OT....................................................     214.4     225.7     240.3     256.9     288.1     305.9     332.6     358.8     386.8     419.6     455.2     1,316.9     3,269.9
Income Security (600):
    BA....................................................     216.5     228.7     237.4     247.1     260.1     266.5     272.6     285.6     295.5     304.8     314.4     1,239.8     2,712.7
    OT....................................................     213.0     226.2     235.1     244.9     258.2     264.7     270.9     284.0     293.9     303.3     312.9     1,229.1     2,694.1
Social Security (650):
    BA....................................................     431.7     453.7     476.1     500.2     525.5     552.0     580.1     610.7     645.4     682.0     721.1     2,507.5     5,746.8
    OT....................................................     429.7     451.6     473.7     498.0     523.2     549.7     577.6     607.8     642.2     679.3     718.5     2,496.2     5,721.6
On-budget:
    BA....................................................       9.8      11.0      11.7      12.5      13.3      14.2      15.1      16.2      17.5      18.9      20.4        62.7       150.8
    OT....................................................       9.8      11.0      11.7      12.5      13.3      14.2      15.1      16.2      17.5      18.9      20.4        62.7       150.8
Off-budget:
    BA....................................................     421.9     442.7     464.4     487.7     512.2     537.8     565.0     594.5     627.9     663.1     700.7     2,444.8     5,596.0
    OT....................................................     419.9     440.6     462.0     485.5     509.9     535.5     562.5     591.6     624.7     660.4     698.1     2,433.5     5,570.8
Veterans Benefits and Services (700):
    BA....................................................      24.2      28.0      29.6      31.1      34.5      33.3      31.9      35.1      35.7      36.8      37.9       156.5       333.9
    OT....................................................      23.9      27.7      29.3      30.9      34.3      33.0      31.7      34.9      35.7      36.7      37.8       155.2       332.0
Administration of Justice (750):
    BA....................................................       0.6       1.1       0.3       2.2       2.3       2.3       2.4       2.4       2.5       2.5       2.6         8.2        20.6
    OT....................................................       0.7       0.8       0.6       2.3       2.3       2.2       2.3       2.3       2.4       2.4       2.5         8.2        20.1
General Government (800):
    BA....................................................       2.3       1.9       1.6       1.5       1.5       1.5       1.5       1.1       1.1       1.1       1.1         8.0        13.9
    OT....................................................       2.3       1.9       1.6       1.7       1.4       1.4       1.5       1.2       1.1       1.1       1.1         8.0        14.0
Net Interest (900):
    BA....................................................     205.1     182.2     169.8     155.3     138.0     122.0     105.4      87.1      66.8      44.6      20.9       767.3     1,092.1
    OT....................................................     205.1     182.2     169.8     155.3     138.0     122.0     105.4      87.1      66.8      44.6      20.9       767.3     1,092.1
On-budget:
    BA....................................................     273.6     257.6     253.2     248.5     242.4     239.0     236.5     233.3     229.3     224.4     219.1     1,240.7     2,383.3
    OT....................................................     273.6     257.6     253.2     248.5     242.4     239.0     236.5     233.3     229.3     224.4     219.1     1,240.7     2,383.3
Off-budget:
    BA....................................................     -68.5     -75.4     -83.4     -93.2    -104.4    -117.0    -131.1    -146.2    -162.5    -179.8    -198.2      -473.4    -1,291.2
    OT....................................................     -68.5     -75.4     -83.4     -93.2    -104.4    -117.0    -131.1    -146.2    -162.5    -179.8    -198.2      -473.4    -1,291.2
Undistributed Offsetting Receipts (950):
    BA....................................................     -46.2     -50.8     -61.5     -63.1     -56.2     -57.9     -60.4     -62.2     -64.2     -66.8     -69.5      -289.5      -612.6
    OT....................................................     -46.2     -50.8     -61.5     -63.1     -56.2     -57.9     -60.4     -62.2     -64.2     -66.8     -69.5      -289.5      -612.6
On-budget:
    BA....................................................     -38.3     -42.3     -52.3     -53.2     -45.5     -46.5     -48.2     -49.1     -50.2     -51.8     -53.3      -239.8      -492.4
    OT....................................................     -38.3     -42.3     -52.3     -53.2     -45.5     -46.5     -48.2     -49.1     -50.2     -51.8     -53.3      -239.8      -492.4
Off-budget:
    BA....................................................      -7.9      -8.5      -9.2      -9.9     -10.7     -11.4     -12.2     -13.1     -14.0     -15.0     -16.2       -49.7      -120.2
    OT....................................................      -7.9      -8.5      -9.2      -9.9     -10.7     -11.4     -12.2     -13.1     -14.0     -15.0     -16.2       -49.7      -120.2
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


                       TABLE S4.--HOUSE BUDGET COMMITTEE RECOMMENDATION MINUS THE PRESIDENT'S REQUEST: TOTAL SPENDING AND REVENUES
                                                                [In billions of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                Fiscal year                  2001    2002    2003    2004    2005    2006    2007    2008    2009    2010    2011   2002-2006  2002-2011
--------------------------------------------------------------------------------------------------------------------------------------------------------
SUMMARY

Total Spending:
    BA....................................    15.7    -4.4    -2.9    13.0    13.2    10.9     3.1     3.1    -0.8     0.6    -7.4       29.8       28.4
    OT....................................     0.5   -18.1    -4.1    14.5    12.4    15.5    11.0    11.4    12.9     9.8     9.1       20.2       74.4
    On-budget:
        BA................................    16.6    -7.3    -6.4     6.9     9.2     9.2     4.3     7.3     8.6    13.9    12.4       11.6       58.1
        OT................................    -0.5   -19.9    -9.5     6.9     6.2    10.9    10.8    14.0    18.7    20.3    24.8       -5.4       83.2
    Off-budget:
        BA................................    -0.9     2.9     3.5     6.1     4.0     1.7    -1.2    -4.2    -9.4   -13.3   -19.8       18.2      -29.7
    OT....................................     1.0     1.8     5.4     7.6     6.2     4.6     0.2    -2.6    -5.8   -10.5   -15.7       25.6       -8.8
Revenues:
    Total.................................    -8.1   -22.4     1.8     5.8     0.5    -6.5   -14.7   -16.1   -15.6   -20.3   -26.9      -20.7     -114.3
    On-budget.............................    -8.4   -23.8     1.7     7.4     9.4     2.8    -1.3    -2.4    -1.0     1.2     0.2       -2.4       -5.7
    Off-budget............................     0.2     1.4     0.1    -1.6    -8.9    -9.3   -13.4   -13.8   -14.6   -21.5   -27.1      -18.3     -108.6
Surplus/Deficit (-):
    Total.................................    -8.6    -4.3     6.0    -9.0   -11.7   -22.1   -25.5   -27.6   -28.4   -30.1   -36.1      -41.1     -188.8
    On-budget.............................    -7.8    -3.8    11.3     0.2     3.4    -8.2   -12.0   -16.4   -19.7   -19.1   -24.7        2.9      -88.9
    Off-budget............................    -0.7    -0.5    -5.3    -9.3   -15.1   -13.9   -13.6   -11.2    -8.7   -11.0   -11.4      -44.0      -99.9

BY FUNCTION

National Defense (050):
    BA....................................    -0.3    -0.2     0.1     0.3     0.4     0.5     0.3     0.4     0.4     0.4     0.4        1.1        3.0
    OT....................................     1.5     0.3     3.9     1.5     0.4     0.8     1.7     2.2     2.3    -1.7     2.3        6.9       13.7
International Affairs (150):
    BA....................................     3.8     0.8     0.9     1.3     1.4     1.3     1.0     0.7     0.6     0.6     0.6        5.7        9.2
    OT....................................     2.2    -1.5    -1.1    -0.7    -0.5    -0.6    -0.6    -0.7    -0.5    -0.5    -0.5       -4.4       -7.2
General Science, Space, and Technology
 (250):
    BA....................................     0.1  ......  ......  ......  ......  ......  ......  ......  ......  ......  ......  .........  .........
    OT....................................    -0.1    -0.2    -0.1    -0.2    -0.1    -0.1    -0.2    -0.2    -0.2    -0.2    -0.3       -0.7       -1.8
Energy (270):
    BA....................................     2.0     1.2     1.1     1.6     1.4     1.3     1.3     0.9     0.5     0.4     0.3        6.6       10.0
    OT....................................     0.5  ......    -0.4     0.2     0.1     0.1     0.1    -0.8    -0.8    -0.7    -0.8  .........       -3.0
Natural Resources and Environment (300):
    BA....................................       -     0.1     0.2     0.3     0.3     0.3     0.3     0.3     0.8     1.0     1.1        1.2        4.7
    OT....................................    -1.2    -1.4    -0.6    -0.3    -0.5    -0.8    -0.8    -0.7  ......     0.4     0.6       -3.6       -4.1
Agriculture (350):
    BA....................................    -3.2     3.4     4.5     4.4     3.9     3.0     1.2     0.1    -0.1    -0.3    -0.4       19.2       19.7
    OT....................................    -2.5    -1.1     2.0     3.1     2.9     1.8     0.2    -1.0    -1.2    -1.4    -1.5        8.7        3.8
Commerce and Housing Credit (370):
    BA....................................    12.3     0.3     0.7     8.1     6.6     6.3     6.3     6.3     4.0     5.1     4.1       22.0       47.8
    OT....................................     1.0    -1.2    -1.5     6.4     5.6     6.2     4.9     5.4     4.8     4.6     4.7       15.5       39.9
    On-budget:
        BA................................    16.1     1.5     2.8     7.7     7.5     7.3     6.9     6.5     5.9     5.5     5.0       26.8       56.6
        OT................................     2.6     0.5    -1.9     4.4     4.3     4.4     4.2     4.0     3.2     2.9     2.7       11.7       28.7
    Off-budget:
        BA................................    -3.8    -1.2    -2.0     0.4    -0.9    -1.0    -0.6    -0.2    -1.9    -0.3    -0.8       -4.7       -8.5
        OT................................    -1.6    -1.8     0.4     2.0     1.3     1.8     0.7     1.4     1.6     1.7     2.0        3.7       11.1
Transportation (400):
    BA....................................     0.6    -0.2    -4.6    -5.8    -7.0    -8.2    -9.5   -10.9   -12.2   -13.5   -14.9      -25.8      -86.8
    OT....................................     0.6     0.9     2.1     1.7     1.0     0.7     0.1    -0.2    -0.4    -0.5    -0.6        6.4        4.8
Community and Regional Development (450):
    BA....................................     0.9     0.1     0.2     0.3     0.4     0.3     0.4     0.4     0.4     0.4     0.3        1.3        3.2
    OT....................................     0.6     0.1    -0.2  ......     0.1     0.4     0.7     0.7     0.7     0.7     0.6        0.4        3.8
Education, Training, Employment and Social
 Services (500):
    BA....................................     6.6     2.2     1.5     1.2     1.8     1.6     1.4     1.4     1.3     1.1     0.8        8.3       14.3
    OT....................................     5.1  ......     1.5     1.2     1.6     1.6     1.4     1.4     1.3     1.1     0.8        5.9       11.9
Health (550):
    BA....................................     1.2    -0.9    -0.1     0.1    -0.6    -2.0    -2.5    -3.0    -3.8    -3.5    -0.9       -3.5      -17.2
    OT....................................     0.1    -0.2     1.1     1.1     0.4    -0.8    -1.1    -1.3    -1.8    -2.3     0.6        1.6       -4.3
Medicare (570):
    BA....................................    -1.4    -0.7     1.7     4.8     9.0    13.7    18.6    23.2    28.4    35.3    35.8       28.5      169.8
    OT....................................    -1.6    -0.7     1.8     4.7     9.1    13.8    18.6    23.2    28.5    35.4    36.0       28.7      170.4
Income Security (600):
    BA....................................    -6.2    -3.0    -3.1    -3.4    -1.3    -2.3    -2.8    -2.9    -3.3    -3.9    -8.0      -13.1      -34.0
    OT....................................    -6.0    -3.6    -3.4    -3.2    -1.9    -2.6    -3.2    -2.5    -1.9    -3.1    -7.1      -14.7      -32.5
Social Security (650):
    BA....................................    -0.2     0.8     0.7     0.1    -1.1    -3.4    -6.6   -10.3   -14.2   -19.9   -26.4       -2.9      -80.3
    OT....................................    -0.5     0.3     0.2  ......    -1.2    -3.3    -6.6   -10.3   -14.1   -19.1   -25.1       -4.0      -79.2
    On-budget:
        BA................................    -2.3    -2.6    -2.7    -3.0    -3.0    -3.1    -3.1    -3.5    -3.9    -4.5    -5.2      -14.4      -34.6
        OT................................    -2.3    -2.6    -2.7    -3.0    -3.0    -3.1    -3.1    -3.5    -3.9    -4.5    -5.2      -14.4      -34.6
    Off-budget:
        BA................................     2.1     3.4     3.4     3.0     1.9    -0.4    -3.5    -6.8   -10.3   -15.4   -21.2       11.3      -45.9
        OT................................     1.8     2.9     2.9     2.9     1.9    -0.3    -3.4    -6.8   -10.2   -14.6   -19.9       10.3      -44.6
Veterans Benefits and Services (700):
    BA....................................    -1.0     0.6    -0.1    -0.1     1.9    -0.7    -3.3    -1.3    -1.8    -1.9    -1.7        1.6       -8.4
    OT....................................     0.6     0.5  ......    -0.2    -0.9    -0.9    -1.1    -1.4    -1.9    -2.0    -1.9       -1.5       -9.8
Administration of Justice (750):
    BA....................................     0.5  ......     0.4     0.3     0.4     0.3     0.3     0.3     0.3     0.2     0.2        1.4        2.7
    OT....................................     0.9    -1.3    -2.3    -0.2     0.6     0.4     0.3     0.3     0.3     0.3     0.2       -2.8       -1.4
General Government (800):
    BA....................................  ......  ......    -0.3    -1.6    -0.4    -0.4    -0.4    -0.5    -0.6    -0.6    -0.7       -2.7       -5.5
    OT....................................    -0.9    -0.1    -0.3    -1.7    -0.5    -0.5    -0.6    -0.7    -0.7    -0.8    -0.8       -3.1       -6.7
Net Interest (900):
    BA....................................    -1.4    -6.1    -5.4    -5.9    -6.2    -4.7    -2.7    -2.5    -1.8    -0.9     1.1      -28.3      -35.1
    OT....................................    -1.4    -6.1    -5.4    -5.8    -6.2    -4.7    -2.7    -2.5    -1.8    -0.9     1.1      -28.2      -35.0
    On-budget:
        BA................................    -1.8    -6.8    -7.4    -8.6    -9.2    -7.7    -5.6    -5.3    -4.6    -3.3    -1.1      -39.7      -59.6
        OT................................    -1.8    -6.8    -7.4    -8.6    -9.2    -7.7    -5.6    -5.3    -4.6    -3.3    -1.1      -39.7      -59.6
    Off-budget:
        BA................................     0.4     0.7     2.1     2.7     3.0     3.1     2.9     2.8     2.8     2.4     2.2       11.6       24.7
        OT................................     0.4     0.7     2.1     2.7     3.0     3.1     2.9     2.8     2.8     2.4     2.2       11.6       24.7
Allowances (920):
    BA....................................    -0.5    -1.0    -0.3    -0.3    -0.3    -0.3    -0.3    -0.3    -0.3    -0.3    -0.3       -2.2       -3.7
    OT....................................    -0.3    -0.9    -0.3    -0.3    -0.3    -0.3    -0.3    -0.3    -0.3    -0.3    -0.3       -2.1       -3.6
Undistributed Offsetting Receipts (950):
    BA....................................     1.9    -1.8    -1.3     7.4     2.6     4.3     0.1     0.8     0.7     0.8     1.1       11.2       14.7
    OT....................................     1.9    -1.8    -1.3     7.4     2.6     4.3     0.1     0.8     0.7     0.8     1.1       11.2       14.7
    On-budget:
        BA................................     1.5    -1.8    -1.2     7.4     2.6     4.3     0.1     0.8     0.6     0.8     1.1       11.3       14.7
        OT................................     1.5    -1.8    -1.2     7.4     2.6     4.3     0.1     0.8     0.6     0.8     1.1       11.3       14.7
    Off-budget:
        BA................................     0.4  ......  ......  ......  ......  ......  ......  ......  ......  ......  ......  .........  .........
        OT................................     0.4  ......  ......  ......  ......  ......  ......  ......  ......  ......  ......  .........  .........
--------------------------------------------------------------------------------------------------------------------------------------------------------


                             TABLE S5.--HOUSE BUDGET COMMITTEE RECOMMENDATION COMPARED TO 2001: TOTAL SPENDING AND REVENUES
                                                                [In billions of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                         Fiscal year                            2002     2003     2004     2005     2006     2007     2008     2009     2010      2011
--------------------------------------------------------------------------------------------------------------------------------------------------------
SUMMARY

Total Spending:
    BA......................................................     70.4    128.5    205.5    293.8    357.3    437.0    530.4    625.9    726.7      836.3
    OT......................................................     84.5    150.7    229.1    319.1    379.7    456.3    552.9    649.1    753.0      861.5
On-budget:
    BA......................................................     56.7    103.3    166.0    243.0    294.2    361.4    441.3    520.3    604.2      695.6
    OT......................................................     71.0    125.8    189.8    268.6    316.9    381.2    464.7    544.7    631.2      721.4
Off-budget:
    BA......................................................     13.7     25.2     39.5     50.8     63.1     75.6     89.1    105.6    122.5      140.7
    OT......................................................     13.5     24.9     39.3     50.5     62.8     75.1     88.2    104.4    121.8      140.1
Revenues:
    Total...................................................     39.3    131.1    215.7    308.0    392.6    499.8    625.3    760.8    909.8    1,077.4
    On-budget...............................................     11.1     74.3    131.1    192.0    247.5    324.0    417.0    518.5    631.9      762.3
    Off-Budget..............................................     28.2     56.8     84.6    116.0    145.1    175.8    208.3    242.3    277.9      315.1
Surplus/Deficit (-):
    Total...................................................    -45.2    -19.5    -13.5    -11.1     13.0     43.6     72.3    111.7    156.9      215.8
    On-budget...............................................    -59.9    -51.4    -58.7    -76.5    -69.3    -57.1    -47.8    -26.3      0.8       40.9
    Off-Budget..............................................     14.7     31.9     45.2     65.4     82.3    100.7    120.1    138.0    156.1      174.9

BY FUNCTION

National Defense (050):
    BA......................................................     14.2     22.9     32.2     41.9     51.8     61.9     72.4     83.2     94.2      106.0
    OT......................................................     18.7     25.0     33.5     46.6     54.0     61.3     75.0     85.9     97.0      108.7
International Affairs (150):
    BA......................................................      1.4      1.5      2.1      2.9      3.7      4.5      5.0      5.6      6.0        7.2
    OT......................................................     -0.1      0.2      0.7      1.1      1.7      2.5      3.2      3.9      4.5        5.3
General Science, Space, and Technology (250):
    BA......................................................      1.2      1.6      2.1      2.6      3.3      3.9      4.5      5.2      5.6        6.7
    OT......................................................      1.4      2.3      3.0      3.6      4.1      4.7      5.3      6.0      6.5        7.3
Energy (270):
    BA......................................................     -0.4     -0.5     -0.3     -0.3     -0.2     -0.1      1.0      1.1      1.0        1.0
    OT......................................................     -0.1     -0.4     -0.5     -0.4     -0.2     -0.1      0.5      0.9      1.1        1.0
Natural Resources and Environment (300):
    BA......................................................     -2.1     -2.0     -1.1     -0.9     -0.9     -0.2      0.5      1.8      2.3        3.6
    OT......................................................  .......      0.6      1.1      1.3      1.5      1.9      2.4      3.5      4.2        5.1
Agriculture (350):
    BA......................................................     -7.1     -7.7     -7.8     -8.0     -8.4     -9.8    -10.6    -10.5    -10.4      -10.2
    OT......................................................     -6.2     -6.7     -6.6     -6.8     -7.4     -8.7     -9.6     -9.3     -9.1       -8.9
Commerce and Housing Credit (370):
    BA......................................................      5.2      4.9     10.6      9.2      9.1     10.0     10.3     10.8     15.2       10.0
    OT......................................................      5.4      2.8      9.7      8.8      8.1      9.0      9.1      9.4     12.6        9.6
On-budget:
    BA......................................................      4.9      6.0     10.3     10.2     10.1     11.0     11.3     11.8     16.2       11.0
    OT......................................................      5.1      3.9      9.4      9.8      9.1     10.0     10.1     10.4     13.6       10.6
Off-budget:
    BA......................................................      0.3     -1.1      0.3     -1.0     -1.0     -1.0     -1.0     -1.0     -1.0       -1.0
    OT......................................................      0.3     -1.1      0.3     -1.0     -1.0     -1.0     -1.0     -1.0     -1.0       -1.0
Transportation (400):
    BA......................................................     -1.1     -3.4     -2.9     -2.4     -1.9     -1.3     -0.8     -0.3      0.1        0.9
    OT......................................................      3.9      6.6      8.6     10.3     12.0     13.2     14.7     16.3     17.6       19.5
Community and Regional Development (450):
    BA......................................................     -1.1     -0.9     -0.7     -0.3  .......      0.3      0.6      0.9      1.1        1.6
    OT......................................................      0.1     -0.4     -0.7     -1.0     -1.1     -0.9     -0.6     -0.3     -0.1        0.2
Education, Training, Employment and Social Services (500):
    BA......................................................      5.2      5.1      7.0     10.5     13.3     16.0     18.8     21.6     23.6       27.7
    OT......................................................      6.4     11.9     12.5     15.0     17.9     20.6     23.2     26.1     28.6       31.6
Health (550):
    BA......................................................     21.4     47.1     63.9     71.2     84.2    104.4    125.0    147.1    171.6      199.8
    OT......................................................     25.6     50.3     69.2     75.9     89.1    108.7    129.7    152.1    177.0      204.7
Medicare (570):
    BA......................................................     11.6     26.4     42.7     74.2     92.4    118.6    145.3    173.6    205.9      241.9
    OT......................................................     11.4     26.0     42.7     74.0     92.0    118.7    145.0    173.1    206.0      241.7
Income Security (600):
    BA......................................................     15.6     25.9     37.4     52.1     60.0     67.5     81.9     93.4    103.9      115.7
    OT......................................................     15.2     25.4     35.5     49.7     57.5     65.0     79.5     90.7    101.3      112.5
Social Security (650):
    BA......................................................     22.1     44.5     68.6     94.0    120.6    148.9    179.6    214.3    251.0      290.3
    OT......................................................     21.9     44.1     68.4     93.7    120.3    148.4    178.6    213.1    250.3      289.7
On-budget:
    BA......................................................      1.2      1.9      2.7      3.5      4.4      5.4      6.4      7.7      9.1       10.6
    OT......................................................      1.2      1.9      2.7      3.5      4.4      5.4      6.4      7.7      9.1       10.6
Off-budget:
    BA......................................................     20.9     42.5     65.9     90.5    116.2    143.5    173.1    206.7    241.9      279.7
    OT......................................................     20.7     42.2     65.7     90.2    115.9    143.0    172.2    205.5    241.2      279.1
Veterans Benefits and Services (700):
    BA......................................................      5.6      6.4      8.6     12.7     12.1     11.5     15.3     16.7     18.1       20.4
    OT......................................................      5.7      6.9      9.0     13.0     12.4     11.7     15.7     17.0     18.5       20.7
Administration of Justice (750):
    BA......................................................      0.3      1.3      3.0      4.1      5.1      6.0      7.0      8.0      8.6       10.2
    OT......................................................      0.3      2.1      4.1      4.7      5.3      6.1      7.1      8.1      8.8       10.2
General Government (800):
    BA......................................................      0.4  .......      0.4      0.7      1.2      1.6      1.7      2.1      2.4        3.1
    OT......................................................      0.3      0.2      0.6      0.7      1.0      1.4      1.6      1.9      2.2        2.8
Net Interest (900):
    BA......................................................    -22.9    -35.2    -49.7    -67.1    -83.2    -99.6   -118.1   -138.3   -160.5     -184.2
    OT......................................................    -22.9    -35.2    -49.7    -67.1    -83.2    -99.6   -118.1   -138.3   -160.5     -184.2
On-budget:
    BA......................................................    -16.0    -20.3    -25.1    -31.2    -34.6    -37.0    -40.3    -44.3    -49.2      -54.5
    OT......................................................    -16.0    -20.3    -25.1    -31.2    -34.6    -37.0    -40.3    -44.3    -49.2      -54.5
Off-budget:
    BA......................................................     -6.9    -14.9    -24.7    -35.9    -48.6    -62.6    -77.8    -94.0   -111.3     -129.7
    OT......................................................     -6.9    -14.9    -24.7    -35.9    -48.6    -62.6    -77.8    -94.0   -111.3     -129.7
Allowances (920):
    BA......................................................      5.5      6.0      6.5      6.7      6.8      7.1      7.2      7.5      7.6        7.9
    OT......................................................      2.1      4.3      5.1      6.0      6.4      6.6      6.7      6.9      7.1        7.3
Undistributed Offsetting Receipts (950):
    BA......................................................     -4.6    -15.3    -16.9    -10.0    -11.7    -14.2    -16.1    -18.0    -20.6      -23.3
    OT......................................................     -4.6    -15.3    -16.9    -10.0    -11.7    -14.2    -16.1    -18.0    -20.6      -23.3
On-budget:
    BA......................................................     -4.0    -14.0    -15.0     -7.2     -8.2     -9.9    -10.9    -11.9    -13.5      -15.0
    OT......................................................     -4.0    -14.0    -15.0     -7.2     -8.2     -9.9    -10.9    -11.9    -13.5      -15.0
Off-budget:
    BA......................................................     -0.6     -1.3     -2.0     -2.8     -3.5     -4.3     -5.2     -6.1     -7.1       -8.3
    OT......................................................     -0.6     -1.3     -2.0     -2.8     -3.5     -4.3     -5.2     -6.1     -7.1       -8.3
--------------------------------------------------------------------------------------------------------------------------------------------------------


                             TABLE S6.--HOUSE BUDGET COMMITTEE RECOMMENDATION COMPARED TO 2001: TOTAL SPENDING AND REVENUES
                                                                   [Percentage change]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                Fiscal year                    2002       2003       2004       2005       2006       2007       2008       2009       2010       2011
--------------------------------------------------------------------------------------------------------------------------------------------------------
SUMMARY

Total Spending:
    BA....................................        3.7        6.7       10.8       15.4       18.7       22.9       27.8       32.8       38.1       43.9
    OT....................................        4.5        8.1       12.3       17.2       20.4       24.6       29.8       35.0       40.6       46.4
    On-budget:
        BA................................        3.6        6.6       10.7       15.6       18.9       23.2       28.3       33.4       38.8       44.7
        OT................................        4.7        8.3       12.6       17.8       21.0       25.3       30.8       36.1       41.8       47.8
    Off-budget:
        BA................................        3.9        7.2       11.3       14.5       18.0       21.6       25.5       30.2       35.0       40.2
        OT................................        3.9        7.2       11.3       14.5       18.0       21.6       25.4       30.0       35.0       40.3
Revenues:
    Total.................................        1.8        6.2       10.1       14.5       18.4       23.5       29.4       35.7       42.7       50.6
    On-budget.............................        0.7        4.6        8.1       11.8       15.2       19.9       25.7       31.9       38.9       46.9
    Off-Budget............................        5.6       11.3       16.8       23.0       28.8       34.9       41.3       48.1       55.1       62.5
Surplus/Deficit (-):
    Total.................................      -16.6       -7.2       -5.0       -4.1        4.8       16.0       26.6       41.1       57.7       79.3
    On-budget.............................      -51.7      -44.4      -50.6      -66.0      -59.8      -49.3      -41.3      -22.7        0.7       35.3
    Off-Budget............................        9.4       20.4       28.9       41.9       52.7       64.5       76.9       88.4       99.9      112.0

BY FUNCTION

National Defense (050):
    BA....................................        4.6        7.4       10.4       13.5       16.7       19.9       23.3       26.8       30.4       34.1
    OT....................................        6.2        8.3       11.1       15.5       18.0       20.4       25.0       28.6       32.3       36.1
International Affairs (150):
    BA....................................        6.4        6.5        9.2       13.1       16.7       20.1       22.4       25.0       26.7       32.0
    OT....................................       -0.6        1.0        3.8        5.6        8.8       12.6       16.0       19.9       22.8       27.1
General Science, Space, and Technology
 (250):
    BA....................................        5.5        7.6        9.8       12.4       15.5       18.6       21.6       24.7       26.7       31.9
    OT....................................        7.3       11.7       15.2       18.2       20.9       23.9       27.1       30.3       33.0       37.0
Energy (270):
    BA....................................      -31.8      -38.0      -25.6      -26.6      -16.5      -10.0       79.3       86.9       85.1       78.9
    OT....................................      103.5      361.7      413.0      331.3      207.8      115.7     -434.8     -781.7     -930.4     -906.1
Natural Resources and Environment (300):
    BA....................................       -7.4       -6.9       -3.9       -3.1       -3.0       -0.7        1.8        6.2        8.1       12.4
    OT....................................        0.2        2.2        4.2        5.0        5.5        7.2        9.2       13.4       15.8       19.5
Agriculture (350):
    BA....................................      -27.2      -29.2      -29.7      -30.3      -32.0      -37.2      -40.5      -39.8      -39.5      -38.7
    OT....................................      -26.0      -28.2      -27.8      -28.8      -31.1      -36.8      -40.6      -39.3      -38.6      -37.7
Commerce and Housing Credit (370):
    BA....................................      147.9      140.3      301.6      262.1      260.1      284.9      293.9      305.8      432.5      284.5
    OT....................................    2,370.3    1,244.1    4,216.6    3,835.8    3,552.8    3,927.5    3,964.6    4,096.1    5,504.4    4,182.5
    On-budget:
        BA................................      194.7      239.8      409.5      406.0      403.2      437.9      450.5      467.1      644.2      437.3
        OT................................     -665.1     -512.2   -1,213.5   -1,269.0   -1,185.0   -1,296.2   -1,307.3   -1,346.3   -1,764.6   -1,372.0
    Off-budget:
        BA................................       30.0     -110.0       30.0     -100.0     -100.0     -100.0     -100.0     -100.0     -100.0     -100.0
        OT................................       30.0     -110.0       30.0     -100.0     -100.0     -100.0     -100.0     -100.0     -100.0     -100.0
Transportation (400):
    BA....................................       -1.8       -5.5       -4.7       -3.9       -3.0       -2.1       -1.3       -0.5        0.1        1.5
    OT....................................        7.6       12.8       16.5       19.9       23.3       25.6       28.4       31.6       34.1       37.8
Community and Regional Development (450):
    BA....................................       -9.8       -8.1       -5.9       -2.7        0.2        2.9        5.5        8.2        9.9       14.4
    OT....................................        0.5       -3.6       -6.2       -8.9       -9.7       -8.0       -5.4       -2.9       -0.5        2.1
Education, Training, Employment and Social
 Services (500):
    BA....................................        6.8        6.7        9.1       13.6       17.3       20.8       24.5       28.0       30.7       36.1
    OT....................................        9.2       17.0       17.9       21.6       25.6       29.5       33.2       37.4       40.9       45.2
Health (550):
    BA....................................       11.7       25.8       35.0       39.0       46.1       57.2       68.5       80.6       94.0      109.4
    OT....................................       14.6       28.7       39.4       43.3       50.7       61.9       73.9       86.6      100.9      116.6
Medicare (570):
    BA....................................        5.3       12.1       19.6       34.1       42.5       54.5       66.8       79.8       94.7      111.2
    OT....................................        5.2       11.9       19.6       34.0       42.2       54.5       66.6       79.5       94.6      111.0
Income Security (600):
    BA....................................        6.1       10.1       14.6       20.4       23.4       26.4       32.0       36.5       40.6       45.2
    OT....................................        5.9        9.9       13.8       19.4       22.4       25.3       31.0       35.3       39.4       43.8
Social Security (650):
    BA....................................        5.1       10.2       15.8       21.6       27.7       34.2       41.3       49.3       57.7       66.7
    OT....................................        5.1       10.2       15.8       21.6       27.8       34.3       41.2       49.2       57.8       66.9
    On-budget:
        BA................................       12.2       19.7       27.5       35.7       44.9       54.7       65.6       78.3       92.5      107.9
        OT................................       12.2       19.7       27.5       35.7       44.9       54.7       65.6       78.3       92.5      107.9
    Off-budget:
        BA................................        4.9       10.0       15.5       21.3       27.3       33.7       40.7       48.6       56.9       65.8
        OT................................        4.9       10.0       15.5       21.3       27.4       33.8       40.7       48.5       57.0       65.9
Veterans Benefits and Services (700):
    BA....................................       12.0       13.6       18.4       27.1       26.0       24.6       32.8       35.7       38.7       43.8
    OT....................................       12.3       14.9       19.5       28.2       27.0       25.6       34.1       37.1       40.2       45.2
Administration of Justice (750):
    BA....................................        1.0        4.3        9.9       13.3       16.6       19.7       22.8       26.0       28.2       33.3
    OT....................................        1.1        7.0       13.5       15.6       17.6       20.4       23.7       27.0       29.5       34.0
General Government (800):
    BA....................................        2.2  .........        2.3        4.5        7.3        9.9       10.3       13.0       14.7       19.2
    OT....................................        1.6        1.2        3.5        4.1        6.4        9.0       10.1       12.0       13.8       17.7
Net Interest (900):
    BA....................................      -11.2      -17.2      -24.2      -32.7      -40.6      -48.6      -57.6      -67.4      -78.3      -89.8
    OT....................................      -11.2      -17.2      -24.2      -32.7      -40.6      -48.6      -57.6      -67.4      -78.3      -89.8
    On-budget:
        BA................................       -5.9       -7.4       -9.2      -11.4      -12.7      -13.5      -14.7      -16.2      -18.0      -19.9
        OT................................       -5.9       -7.4       -9.2      -11.4      -12.7      -13.5      -14.7      -16.2      -18.0      -19.9
    Off-budget:
        BA................................       10.1       21.7       36.0       52.4       70.9       91.4      113.6      137.3      162.6      189.4
        OT................................       10.1       21.7       36.0       52.4       70.9       91.4      113.6      137.3      162.6      189.4
Allowances (920):
    BA....................................   -1,160.2   -1,261.2   -1,374.8   -1,411.4   -1,448.7   -1,494.7   -1,523.7   -1,580.1   -1,615.0   -1,678.8
    OT....................................     -707.9   -1,417.7   -1,682.8   -1,981.5   -2,104.3   -2,168.3   -2,227.1   -2,286.8   -2,335.3   -2,405.6
Undistributed Offsetting Receipts (950):
    BA....................................       10.0       33.1       36.6       21.7       25.4       30.7       34.8       39.1       44.6       50.4
    OT....................................       10.0       33.1       36.6       21.7       25.4       30.7       34.8       39.1       44.6       50.4
    On-budget:
        BA................................       10.6       36.7       39.1       18.8       21.4       25.9       28.4       31.2       35.3       39.3
        OT................................       10.6       36.7       39.1       18.8       21.4       25.9       28.4       31.2       35.3       39.3
    Off-budget:
        BA................................        7.5       15.9       24.9       35.4       44.7       53.9       65.7       77.1       89.4      104.5
        OT................................        7.5       15.9       24.9       35.4       44.7       53.9       65.7       77.1       89.4      104.5
--------------------------------------------------------------------------------------------------------------------------------------------------------

                             RECONCILIATION

                              ----------                              


    As provided in Section 310 of the Budget Act (2 U.S.C. 
641), the budget resolution instructs six authorizing 
committees to reconcile and report changes in law necessary to 
achieve the direct spending and revenue levels in the budget 
resolution. Each of these committees is directed to achieve 
aggregate direct spending, and revenue levels. The Budget 
Committee makes general assumptions about what each Committee 
will do to comply with its reconciliation instructions; 
however, the Committees have wide latitude to develop their 
legislation. The budget resolution directs: certain committees 
to increase spending on programs within their jurisdiction, one 
committee to increase the receipts, and certain committees to 
reduce the level of revenue the government receives. The budget 
resolution reflects these spending levels in its aggregates, 
committee allocations, and functional levels. Under the Budget 
Act, committees are free to adopt whatever policies they deem 
appropriate as long as they don't exceed the dollar limits 
imposed by the reconciliation instructions.

                     MULTIPLE RECONCILIATION BILLS

    The legislation provides for five different reconciliation 
bills. Section Four of the resolution contains directives to 
the Ways and Means Committee to report three tax-only bills 
that must be reported to the floor by May 2nd, May 23rd, and 
June 20th of fiscal year 2001. Additional directives to the 
Ways and Means and the Energy and Commerce Committees are 
designed to allow those committees to reform the Medicare 
program and provide a prescription drug benefit. The Medicare 
Reforms must be reported to the House Budget Committee no later 
than July 24, 2001. An additional omnibus bill will be composed 
of submissions from six different committees that will contain 
both spending and revenue changes. These Committees are 
required to report to the Budget Committee by September 11, 
2001.

                              TAX MEASURES

    The directive to the Ways and Means Committee stipulates 
that the sum of the changes it makes in tax policy in each of 
the four bills may not reduce revenue by more than $1.62 
trillion for fiscal years 2001 through 2011. Ways and Means may 
divide this amount among the three tax-only bills and the 
fourth omnibus bill in any way the committee determines. The 
Ways and Means Committee may also structure the tax reduction 
as it determines. Among the priorities for tax relief are those 
included in the summary budget submitted to the Congress by 
President Bush. A special provision permits the Ways and Means 
Committee to provide refundable tax provisions that would 
otherwise exceed the Committee's allocation as long as the cost 
of all the bills does not exceed the permissible amount of tax 
cuts--$1.62 trillion over 10 years.

                 MEDICARE REFORM AND PRESCRIPTION DRUGS

    The Committees on Energy and Commerce and Ways and Means 
are directed to spend $153 billion over a ten year period to 
provide prescription drug benefits to senior Americans and to 
reform the Medicare program. This bill must be reported to the 
House Budget Committee by July 24, 2001; the Budget Committee 
will then vote whether to send it to the floor. The Budget 
Committee may only consider whether or not to report the 
measure to the House floor for consideration, the Committee may 
not consider amendments. The resolution assumes that the 
measure will be on the same magnitude as the proposal that 
President Bush will submit to Congress. However, if the 
Congressional Budget Office determines that the cost of the 
President's legislation, or similar legislation reported by the 
two committees, will exceed $153 billion, the Chairman of the 
Budget Committee may increase the amount available for Medicare 
reform and prescription drug coverage under reconciliation.

                THE OMNIBUS SPENDING AND TAX LEGISLATION

    The resolution also instructs six committees to report 
changes in programs within their jurisdiction to the Budget 
Committee by September 11, 2001, including a fourth tax bill 
reported by the Ways and Means Committee. As mentioned, though 
a number of committees are reconciled for either spending 
increases or decreases, they will choose their own methods of 
complying with the directives. For instance, this resolution 
provides the Committee on Government Reform Committee with a 
number reducing budget authority and outlays; however, among 
the possible legislation that they might consider would be an 
extension of a 1997-enacted increase in the federal agency 
contributions to the Civil Service Retirement and Disability 
Trust Funds made on behalf of Civil Service Retirement System 
participating employees. The Financial Services Committee, 
similarly, may report language to the Budget Committee that 
would permit the payment of interest on business checking 
accounts and sterile reserves maintained at Federal Reserve 
Banks and hence achieve its reconciliation instruction.

                                  TABLE C1.--RECONCILIATION BY HOUSE COMMITTEE
                                     [By fiscal year in millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                   2001       2002       2003       2004        2005        2006      2001-2011
----------------------------------------------------------------------------------------------------------------
                               1. REVENUE BILL (REPORTED TO HOUSE BY MAY 2, 2001)

Revenue........................     (\1\)      (\1\)      (\1\)       (\1\)       (\1\)       (\1\)        (\1\)

                               2. REVENUE BILL (REPORTED TO HOUSE BY MAY 23, 2001)

Revenue........................     (\1\)      (\1\)      (\1\)       (\1\)       (\1\)       (\1\)        (\1\)

                              3. REVENUE BILL (REPORTED TO HOUSE BY JUNE 20, 2001)

Revenue........................     (\1\)      (\1\)      (\1\)       (\1\)       (\1\)       (\1\)        (\1\)

                               4. MEDICARE (REPORTED TO HBC BY JULY 24, 2001) \2\

Energy and Commerce:
    Direct Spending............     2,500     11,200     12,900      14,800      12,500      12,800      153,000
Ways and Means:
    Direct Spending............     2,500     11,200     12,900      14,800      12,500      12,800      153,000

                               5. OMNIBUS (REPORTED TO HBC BY SEPTEMBER 11, 2001)

Education and the Workforce:
    Direct Spending............         5          5          5           5           7          10           87
Energy and Commerce:
    Direct Spending............         0        180        466         561         681         836        7,867
Financial Services:
    Revenues...................         0       -139       -101         -92         -96        -101       -1,112
Government Reform:
    Direct Spending............         0          0       -496        -523        -501        -475       -3,871
Veterans' Affairs:
    Direct Spending............         0        264        479         761         816         885        7,087
Ways and Means:
    Revenues...................    -5,783    -64,427    -80,036    -106,584    -130,973    -165,166   -1,625,951
    Direct Spending............         0        820      3,035       2,842       3,925       4,267       39,515
----------------------------------------------------------------------------------------------------------------
\1\ Ways and Means is reconciled to produce changes in revenue totaling $1.6 trillion over 10 years. It may
  divide this amount among the four bills that will effect revenues.
\2\ Each Committee is reconciled for the entire amount to provide a prescription drugs benefit which will then
  be combined and considered as a single bill on the House floor. In addition, the reconciled amount may be
  increased should additional resources be required.

                     SECTION BY SECTION DESCRIPTION

                              ----------                              


    The Budget Resolution provides for aggregate levels of 
total new budget authority and outlays, total Federal revenues 
and the amount by which the aggregate level of Federal revenues 
should be increased or decreased by bills reported by the 
appropriate committees, the surplus or deficit, new budget 
authority and outlays for each major functional category, and 
the public debt.
    The Congressional Budget Act of 1974 [Budget Act] 
contemplated that it might be necessary to implement a 
procedure, known as reconciliation, in order to implement the 
policies implicit in the budget resolution. Under the framework 
set forth in section 310 of the Budget Act, the reconciliation 
process has been used at various times since 1981, most notably 
in 1990, 1993, and 1997. Section 301(b)(2) provides the 
authority for this process.
    This concurrent resolution on the budget provides the 
chairman of the Budget Committee with the authority to increase 
the budget aggregates, and in some cases the allocations, for 
specified legislation whose costs are not assumed in the 
allocation and/or aggregates. Absent these adjustments, any 
such legislation reported by the committees of jurisdiction 
would exceed the allocations in violation of section 302(f) of 
the Budget Act subjecting it to a point of order and preclude 
the House from considering the measure. Budget resolutions have 
long included these adjustments pursuant to section 301(b)(4) 
of the Budget Act, which permits the budget resolution to 
include ``such other matters, and require such other 
procedures, relating to the budget, as may be appropriate to 
carry out the purposes of this Act.''

  SECTION 1. CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL YEAR 2002

    In accordance with section 301(a) of the Congressional 
Budget Act of 1974, this section revises the budget resolution 
for fiscal year 2001, establishes the appropriate budgetary 
levels for the budget year, fiscal year 2002, and each of the 
succeeding 9 years, fiscal years 2003 through 2011.

               SECTION 2. RECOMMENDED LEVELS AND AMOUNTS

    This section establishes the recommended levels for 
revenue, reduction in revenue, total new budget authority, 
total budget outlays, surpluses, and public debt. The 
recommended level of revenue operates as a floor against which 
all bills are measured pursuant to section 311 of the 
Congressional Budget Act of 1974. Similarly, the recommended 
levels of new budget authority and budget outlays serve as a 
ceiling on the consideration of subsequent spending. The 
surpluses are on-budget in that they do not reflect outlays and 
revenue for Social Security. The public debt aggregates refer 
to the portion of gross Federal debt issued by the Treasury to 
the public or another fund or account.

                 SECTION 3. MAJOR FUNCTIONAL CATEGORIES

    As further required by section 301(a) of the Congressional 
Budget Act of 1974, section 3 establishes the appropriate 
budgetary levels for 20 functional categories for the current 
fiscal year, fiscal year 2001, the budget year, fiscal year 
2002, and fiscal years 2003 through 2011. The categories 
correspond to those used in the President's fiscal year 2002 
summary budget submission.

                       SECTION 4. RECONCILIATION

    As provided in Section 310 of the Congressional Budget Act 
of 1974, the budget resolution includes reconciliation 
instructions to 6 authorizing committees to report changes in 
law necessary to achieve the direct spending and revenue levels 
in the budget resolution. Each of these committees is directed 
to achieve changes in direct spending or revenue levels.
    Subsection (a) provides directives for the Committee on 
Ways and Means to report to the House 3 tax-related bills. The 
reporting dates for the 3 bills are May 2, May 23, and June 20, 
2001, respectively. The total of the 3 bills and bill that is 
submitted to the Budget Committee under subsection (c)(F)(ii) 
may not exceed the specified reduction in revenue levels for 
each of fiscal years 2001 through 2006 and $1.62 billion over 
fiscal years 2001 to 2011.
    Under subsection (b) the Committees on Ways and Means and 
Energy and Commerce are directed to submit to the Budget 
Committee a bill for Medicare reform and prescription drug 
coverage. The committees must submit their legislation by July 
24, 2001. Both Committees are subject to the same dollar 
limitations on their submissions; the legislation may not 
increase new budget authority and outlays by more than 
specified levels in each of fiscal years 2001 through 2006 and 
$153 billion over 10 years. The Budget Committee anticipates 
that the two versions will be integrated before the bill is 
considered on the floor and will not exceed $153 billion over 
10 years.
    These reconciliation instructions do not prejudge the 
financing source for the above bill. It merely imposes overall 
dollar limits on the cost of such legislation and enables it to 
be considered through reconciliation procedures.
    Subsection (c) reconciles the Committees on Education and 
the Workforce, Energy and Commerce, Financial Services, 
Government Reform, Veterans' Affairs, and Ways and Means to 
submit to the Budget Committee legislation in areas under their 
respective jurisdiction. The Committees must submit their 
recommendations to the Budget Committee by September 11, 2001. 
Each committee is given specific dollar limits on the amount of 
savings or increased spending they may submit to the Budget 
Committee. The limits apply to each of fiscal years 2001 to 
2006 and for the total for fiscal years 2002 to 2011.
    The Committee on Education and the Work Force's 
recommendations may not increase outlays by more than by $5 
million in fiscal year 2001, $5 million in fiscal year 2002, $5 
million in fiscal year 2003, $5 million in fiscal year 2004, $7 
million in fiscal year 2005, $10 million in fiscal year 2006, 
and $87 million in fiscal years 2001 through 2011.
    The House Committee on Energy and Commerce must report 
legislation to change laws within its jurisdiction that will 
not increase outlays by more than $0 million in fiscal year 
2001, $180 million in fiscal year 2002, $466 million in fiscal 
year 2003, $561 million in fiscal year 2004, $681 million in 
fiscal year 2005, $836 million in fiscal year 2006, and $7.87 
billion in fiscal years 2001 through 2011.
    The House Committee on Financial Services must report 
legislation to change laws within its jurisdiction that 
decrease revenues by up to $0 million in fiscal year 2001, $139 
million in fiscal year 2002, $101 million in fiscal year 2003, 
$92 million in fiscal year 2004, $96 million in fiscal year 
2005, $101 million in fiscal year 2006, and $1.11 billion for 
fiscal years 2001 through 2011.
    The House Committee on Government Reform must report 
legislation to change laws within its jurisdiction that 
decrease outlays by not more than $0 million in fiscal year 
2001, $0 in fiscal year 2002, $496 million in fiscal year 2003, 
$523 million in fiscal year 2004, $501 million in fiscal year 
2005, $475 million in fiscal year 2006, and $3.87 billion for 
fiscal years 2001 through 2011.
    The House Committee on Veterans' Affairs must report 
legislation to change laws within its jurisdiction that 
increase outlays by up to $0 million in fiscal year 2001, $264 
million in fiscal year 2002, $479 million in fiscal year 2003, 
$761 million in fiscal year 2004, $816 million in fiscal year 
2005, $885 million in fiscal year 2006, and $7.01 billion for 
fiscal years 2001 through 2011.
    The House Committee on Ways and Means must report 
legislation to change laws within its jurisdiction that 
increase outlays by not more than $0 million in fiscal year 
2001, $820 million in fiscal year 2002, $3.04 billion in fiscal 
year 2003, $2.84 billion in fiscal year 2004, $3.93 billion in 
fiscal year 2005, $4.27 billion in fiscal year 2006, and for 
the period of fiscal years 2001 through 2011, $39.52 billion. 
The reconciliation bill is a component of the overall tax 
reduction of $1.6 trillion from fiscal years 2001 through 2011. 
(See Subsection (a)).
    Subsection (d) contains a special rule that allows the 
chairman of the Budget Committee to make adjustments in the 
levels of budget authority and outlays should the bill or bills 
include provisions that are tax related but affect spending, in 
particular due to refundable tax credits like the Earned Income 
Credit and the Child Tax Credit.

                SECTION 5. RESERVE FUND FOR EMERGENCIES

    Section 5 supplants, on a one-time basis, the existing 
procedures for adjusting the appropriate levels in the budget 
resolution for amounts designated as an emergency by 
instituting a definition of an emergency and creating a reserve 
fund to fund them when they occur.
    In subsection (a) the House Budget Committee chairman is 
required, for fiscal year 2002, to increase the allocation of 
new budget authority to the Appropriations Committee for 
emergency spending provisions as the bills come to the floor of 
the House. The adjustments are made for appropriations in 
excess of $1.92 billion for selected emergency accounts, which 
would be funded through the regular process. The limit on the 
reserve fund, which is based on a rolling average of disaster 
funding, is set at $5.6 billion in fiscal year 2002.
    The floor reflects funding for base operations and routine 
disaster requirements. It is spread across four programs: the 
Federal Emergency Management Agency's disaster relief fund, the 
Department of Agriculture's fire fighting program, the 
Department of the Interior's firefighting program, and the 
Small Business Administration's disaster loan program.
    It is the intent of the Budget Committee that the 
Appropriations and Budget Committees will develop a procedure 
to establish separate levels for each of the disaster accounts 
within the $1.92 billion threshold that could trigger 
adjustments out of the emergency reserve fund even though the 
overall threshold is not breached. Other procedures will be 
developed to ensure there is no disruption of the efficient 
operations of the Appropriations Committee and its 
subcommittees.
    The Committee will consult extensively with the 
Appropriations Committee during the conference on the 
appropriate emergency accounts, funding thresholds, and 
appropriate implementing procedures.
    Subsection (b) defines the term ``emergency'' as a 
situation that requires new budget authority and outlays to 
prevent the imminent loss of life or property or in response to 
the loss of life or property.
    The term ``unanticipated'' is further defined as sudden, 
urgent, unforeseen and temporary.
    Subsection (c) requires the Budget Committee chairman to 
work with the chairman of the Appropriations Committee to 
publish guidelines for the application of the emergency 
definition.
    Subsection (d) authorizes the Appropriations Committee to 
identify emergency provisions in the report accompanying the 
appropriation bills.
    Subsection (e) requires the Director of the Congressional 
Budget Office to include in its annual report to Congress on 
the budget and economic outlook for the upcoming budget year, a 
table displaying the average annual enacted levels of budget 
authority and outlays for the previous 5 fiscal years.
    Subsection (f) suspends certain provisions of the 
Congressional Budget Act as they apply in the House of 
Representatives for fiscal year 2001 and 2002 and subsequent 
years.

                   SECTION 6. STRATEGIC RESERVE FUND

    This section establishes a reserve fund for Department of 
Defense requirements following the President's National Defense 
Review and a potential reauthorization of the Federal 
Agriculture Improvement Act of 1996. It could also accommodate 
other legislation.
    Subsection (a) gives the Budget Committee chairman the 
authority to adjust the budget resolution to accommodate 
specified legislation reported by the committees of 
jurisdiction by July 11, 2001.
    The adjustments may be made for appropriations for the 
Department of Defense, a reauthorization of the commodity title 
of the Federal Agriculture Improvement Act of 1996, and for 
other legislation.
    In making the adjustments for the above legislation, the 
Budget Committee chairman must consider the recommendations of 
the of the President's National Defense Review and any 
comparable review of agricultural review of national 
agriculture policy. The Budget Committee is directed to 
consider any Statements of the Administration Policy and 
supplemental budget requests on any legislation for which the 
Committee is considering an adjustment.
    The Committee assumes that a bill authorizing 
appropriations for the Department of Defense will lay the 
necessary groundwork for appropriations that will follow the 
President's National Defense Review. The adjustment would be 
for the Appropriations Committee because they would be charged 
with the discretionary appropriations provided to the 
Department of Defense.
    Subsection (b) limits the adjustments to the amounts by 
which the legislation exceeds the appropriate committee's 
allocation. Consistent with legislation passed in the House 
earlier this year by an almost unanimous vote (H.R. 2), it 
precludes the chairman from making any adjustments that would 
cause the on budget surplus to be less than $36 billion in 
fiscal year 2002 and comparable amounts in the outyears.

           SECTION 7. SUPPLEMENTAL RESERVE FUND FOR MEDICARE.

    This section establishes a reserve fund to accommodate a 
more expensive Medicare bill than was reflected in the budget 
resolution. The Budget Committee chairman is authorized to make 
the adjustment for reconciliation legislation providing for 
Medicare reform and prescription drug coverage.
    The Budget Committee chairman may not increase the 
allocation above the amount at which the Congressional Budget 
Office [CBO] estimates the President's proposal or an 
alternative plan submitted by the Ways and Means and Commerce 
Committees. CBO has not been given sufficient information by 
the Administration to score the President's plan. Recent data 
on drug spending for the Medicare population could push the 
cost of the bill above the levels reflected in the budget 
resolution.
    As a further limit on the cost of the bill, the adjustment 
under this section may not cause the on-budget surplus in the 
budget resolution to be less than $36 billion in fiscal year 
2002 and comparable levels in fiscal years 2003 through 2010.
    In addition to adjusting the 302(a) allocations to the Ways 
and Means and Energy and Commerce Committees, the chairman may 
adjust the reconciliation instructions under section 4(b).

              SECTION 8. RESERVE FUND FOR FISCAL YEAR 2001

    Subsection (a) establishes a reserve fund for fiscal year 
2001. The Chairman is authorized to make these adjustments. The 
adjustment may be made for Department of Defense shortfalls, 
emergency agricultural assistance, and other measures.
    Subsection (b) limits the amount of the adjustments, to the 
amount the bill exceeds the Committee's allocation. The 
adjustments may also not cause the on-budget surplus to be less 
than $29 billion in fiscal year 2001.

   SECTION 9. RESERVE FUND FOR PROMOTION OF FULL FUNDING FOR SPECIAL 
                               EDUCATION

    This section establishes a reserve fund to allow additional 
spending for programs authorized by the Individuals with 
Disabilities Education Act (IDEA) in fiscal year 2001. It 
permits the Budget Committee chairman to increase the 
allocation when an appropriation increases spending for IDEA.
    In order to ensure the amount is used to increase funding 
for IDEA, the chairman may make the adjustment if the 
appropriations for IDEA exceed the prior year's level ($6.37 
billion). The maximum adjustment is $1.25 billion.

  SECTION 10. RESERVE FUND FOR ADDITIONAL TAX CUTS AND DEBT REDUCTION

    As was the case in the fiscal year 2001 budget resolution, 
this section permits the budget resolution to be adjusted to 
accommodate a larger tax cut or debt reduction if the surplus 
estimates increase over the course of the spring and summer.
    The adjustment may only be made if the CBO estimates a 
larger surplus in its update of its budget and economic 
forecast for any fiscal years 2001 through 2011. If the 
estimate of the surplus does increase, the chairman may reduce 
the revenue totals to permit a larger tax cut or reduce the 
debt levels by up to the amount of the increase in the surplus. 
Alternatively, the Chairman could use some portion of the 
higher surplus to reduce the pubic debt levels in the budget 
resolution.
    If the chairman reduces the revenue total to accommodate 
additional tax cuts, he may also increase the amount of the tax 
cuts reconciled to the Committee on Ways and Means in section 
4.

   SECTION 11. APPLICATION AND EFFECTS OF CHANGES IN ALLOCATIONS AND 
                              AGGREGATES.

    This section sets forth the procedures for making 
adjustments pursuant to the reserve funds included in this 
resolution. Subsections (a)(1) and (2) provide that the 
adjustments may only be made during the interval that the 
legislation is under consideration and do not take effect until 
the legislation is actually enacted. This is consistent with 
the procedures for making adjustments for various initiatives 
under section 314 of the Congressional Budget Act of 1974.
    Subsection (a)(3) provides that in order to make the 
adjustments under the reserve funds, the chairman must insert 
the adjustments in the Congressional Record.
    Subsection (b) clarifies that any adjustments made under 
any of the reserve funds in the resolution have the same effect 
as if they were part of the original levels set forth in 
section 3. Therefore the adjusted levels are used to enforce 
points of order against legislation inconsistent with the 
allocations and aggregates included in the concurrent 
resolution on the budget.
    Subsection (c) clarifies that the Committee on the Budget 
shall determine the levels and estimates used to enforce points 
of order, as is the case for enforcing budget-related points of 
order pursuant to section 312 of the Budget Act.

 SECTION 12. COMPLIANCE WITH SECTION THE BUDGET ENFORCEMENT ACT OF 1990

    Section 12 provides authority to include the administrative 
expenses related to Social Security in the allocation to the 
Appropriations Committee. This language is necessary to ensure 
that the Appropriations Committee retains control of 
administrative expenses through the Congressional budget 
process.
    In the 106th Congress, the majority and minority of both 
the House and Senate Budget Committees decided to discontinue 
the inclusion of administrative expenses in the budget 
resolution. This change was intended to make the budget 
resolution consistent with CBO's baseline which does not 
include administrative expenses for Social Security.
    While the Budget Committees decided to discontinue 
reflecting these administrative expenses in the budget 
resolution, the Committee believed that they should continue to 
be reflected in the 302(a) allocations to the Appropriations 
Committee. Absent a waiver of section 302(a) of the Budget Act, 
the inclusion of these expenses in the allocation is construed 
as violating 302(a) of the Budget Act which states that the 
allocations must reflect the discretionary amounts in the 
budget resolution (and arguably, section 13302 of the Budget 
Enforcement Act, which states that Social Security benefits and 
revenue are off-budget).

           SECTION 13. RESTRICTIONS ON ADVANCE APPROPRIATIONS

    This section provides for scorekeeping rules related to 
advance appropriations. It directs that advance appropriations 
be scored against the 302(a) allocations and totals in the year 
in which they are enacted. Previously, such appropriations were 
scored in the year in which the agency can obligate the 
appropriation.
    An allowance is made for programs that by their very nature 
must be funded through advanced appropriations. The Budget 
Committee will consult with the Appropriations Committee during 
the Conference to identify the accounts and amounts subject to 
this exception.
    This scoring rule achieves the same purpose as the rule 
against exceeding a limit on advanced appropriations included 
in last year's budget resolution. The Committee makes this 
change out of deference to the Rules Committee's interest the 
number of rules enforced through points of order.

                    SECTION 14. FEDERAL EMPLOYEE PAY

    Section 14 states a sense of the House relating to Federal 
pay.

            SECTION 15. ASSET BUILDING FOR THE WORKING POOR

    Section 15 states a Sense of Congress relating to 
Individual Development Accounts and the working poor.

             SECTION 16. FEDERAL FIRE PREVENTION ASSISTANCE

    Section 16 provides a sense of Congress relating to Federal 
fire prevention assistance.

                    SECTION 17. SALES TAX DEDUCTION

    Section 17 states a sense of the House regarding the 
deduction of state sales tax from Federal income taxes.

   SECTION 18. FUNDING FOR GRADUATE MEDICAL EDUCATION AT CHILDREN'S 
                           TEACHING HOSPITALS

    Section 18 states a sense of Congress regarding funding for 
Graduate Medical Education at Children's Hospitals.

 SECTION 19. CONCURRENT RETIREMENT AND DISABILITY BENEFITS TO RETIRED 
                      MEMBERS OF THE ARMED FORCES

    Section 19 states a sense of Congress regarding concurrent 
receipt of retirement and disability benefits to retired 
members of the armed forces.

                    THE CONGRESSIONAL BUDGET PROCESS

                              ----------                              


    The spending and revenue levels established in the budget 
resolution are implemented through two parallel, but separate, 
mechanisms: allocations to the appropriations and authorizing 
committees, and reconciliation directives to the authorizing 
committees. The budget resolution may include instructions 
directing the authorizing committees to report legislation 
complying with entitlement, revenue, deficit or debt reduction 
targets. The report accompanying the budget resolution 
distributes or ``allocates'' amounts set forth in the budget 
aggregates for programs, projects and activities to the 
Appropriations Committee for annual appropriations and the 
authorizing committees if they have permanent or multiyear 
spending authority.
    As required under Section 302(a) of the Congressional 
Budget Act of 1974, the discretionary spending levels 
established in the budget resolution are allocated to the 
Appropriations Committee and the mandatory spending levels are 
allocated to each of the authorizing committees with mandatory 
spending authority. These levels can be enforced through points 
of order as discussed in the section ``Enforcing the Budget 
Resolution.'' Amounts provided under ``current law'' encompass 
programs that affect direct spending--entitlements and other 
mandatory programs that have spending authority or offsetting 
receipts. Amounts subject to discretionary action refer to 
programs that require subsequent legislation to provide the 
necessary spending authority. Amounts provided under 
``reauthorizations'' reflect amounts assumed to reauthorize 
expiring mandatory programs.
    This budget resolution provides for 10-year allocations of 
budget authority and outlays for each of the authorizing 
committees. Section 302 of the Congressional Budget Act of 1974 
(as modified by the Balanced Budget Act of 1997) requires that 
allocations of budget authority be provided in the budget 
resolution for the first fiscal year and at least the 4 ensuing 
fiscal years (except for the Committee on Appropriations).

                        APPROPRIATIONS COMMITTEE

    The report accompanying the budget resolution allocates a 
lump sum of discretionary budget authority assumed in the 
resolution and the corresponding outlays to the Committee on 
Appropriations. The Appropriations Committee is provided a 
revised allocation for the current year, fiscal year 2001, and 
an allocation for the upcoming budget year, Fiscal year 2001.
Term
    The allocation to the Appropriations Committee is for the 
fiscal year commencing on October 1, 2001. Unlike the 
authorizing committees, the Appropriations Committee does not 
receive a 5-year allocation of budget authority and outlays.
Allocations
    Upon receiving its 302(a) allocation, the Appropriations 
Committee is required to divide the allocation among its 13 
subcommittees. The amount that each subcommittee receives 
constitutes its 302(b) allocation. The allocations are divided 
into general purpose discretionary, highway, mass transit, and 
conservation categories of spending. These division levels do 
not constitute separate allocations in the House and hence are 
not subject to points of order under section 302(f) of the 
Congressional Budget Act of 1974.
Adjustments Made Under the Congressional Budget Act
    Section 314 of the Congressional Budget Act of 1974 
establishes a process by which the budget resolution can 
accommodate programs for which spending authority was not 
assumed in the budget resolution. Section 314 directs the 
Chairman of the Budget Committee to make adjustments to the 
302(a) allocations and the budgetary aggregates for five 
specified purposes. Through these adjustments, additional 
budget authority and outlays will be made available for 
Continuing Disability Reviews, special drawing rights, adoption 
assistance, designated emergencies, and an Earned Income Tax 
Credit Compliance Initiative. The Office of Management and 
Budget makes similar adjustments to the discretionary spending 
limits under section 251 of the Balanced Budget and Emergency 
Deficit Control Act of 1985 (see the section on Statutory 
Controls Over the Budget).
Additional Adjustments Made Pursuant to the Budget Resolution
    In addition to the adjustments made under the Congressional 
Budget Act, the Budget Resolution also provides the Chairman of 
the House Budget Committee with the authority to make certain 
adjustments in the aggregates and allocations.

                         AUTHORIZING COMMITTEES

    The authorizing committees are allocated a lump sum of new 
budget authority along with the corresponding outlays. This 
spending authority must be provided through subsequent 
legislation and is not controlled through the annual 
appropriations process. The budget authority allocated to these 
committees is categorized as subject to ``discretionary 
action'' when the resolution assumes a new or expanded 
mandatory program or a reduction in an existing program.
Term
    Since the spending authority for the authorizing committees 
is multiyear or permanent, the allocations are for the 
forthcoming budget year commencing on October 1st and a 10-year 
total for fiscal years 2002 through 2011. In addition, the 
report provides revised allocations for fiscal year 2001.
Allocations
    As previously noted, the authorizing committees are 
provided a single allocation of new budget authority that is 
not provided through annual appropriations. They are not 
required to file 302(b) allocations. Bills that are first 
effective in Fiscal year 2001 will be measured against the 
revised levels for fiscal years 2001 through 2010 as set forth 
in this report (See Table A2: Allocation of Spending Authority 
to House Committee Committees Other Than Appropriations.)

                              ENFORCEMENT

    In order to enforce these allocations, Members may raise a 
point of order against spending legislation that exceeds a 
committee's allocation (see section on Enforcing the Budget 
Resolution). The authorizing committees are given 10-year 
allocations, and hence the enforcement period for spending 
under section 302(f) of the Congressional Budget Act will be 
for the 10 years commencing from the year in which the 
committee's legislation is first effective. Since the Budget 
Resolution revises the allocations for 2001, legislation which 
is first effective in that year will have a ten year allocation 
period from fiscal years 2001 through 2010. For legislation 
first effective in fiscal year 2002, the period for both points 
of order will be fiscal years 2002 through 2011. The 
allocations for fiscal year 2001, fiscal year 2002, and fiscal 
years 2002 through 2011, are as follows:

    TABLE A1.--ALLOCATIONS OF SPENDING AUTHORITY TO HOUSE COMMITTEES
           [Appropriations Committee; in millions of dollars]
------------------------------------------------------------------------
                                                       2001       2002
------------------------------------------------------------------------
General Purpose: \1\
    BA............................................    640,803    651,062
    OT............................................    617,507    645,845
Highways: \1\
    BA............................................  .........  .........
    OT............................................     26,920     28,512
Mass Transit: \1\
    BA............................................  .........      1,349
    OT............................................      4,639      5,273
Conservation: \1\
    BA............................................  .........      1,500
    OT............................................  .........      1,345
Total Discretionary Action:
    BA............................................    640,803    653,911
    OT............................................    649,066    680,975
Current Law Mandatory:
    BA............................................    332,768    357,786
    OT............................................    316,432    350,418
------------------------------------------------------------------------
\1\ Shown for display purposes only.


                                            TABLE A2.--ALLOCATIONS OF SPENDING AUTHORITY TO HOUSE COMMITTEES
                                               [Committees other than Appropriations; millions of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                 Total
                                   2001      2002      2003      2004      2005      2006      2007      2008      2009      2010      2011    2002-2011
--------------------------------------------------------------------------------------------------------------------------------------------------------
Agriculture Committee:
    Current Law:
        BA.....................    21,035    14,020     3,570     3,436     3,486     3,537     3,580     3,362     3,855     3,997     4,062     46,905
        OT.....................    17,238    10,701        67       -11        -8        33        38      -284       361       720       830     12,447
    Reauthorizations:
        BA.....................         0         0    30,479    31,321    31,777    31,732    30,897    30,574    31,331    31,972    32,579    282,662
        OT.....................         0         0    29,137    31,222    31,690    31,654    30,825    30,507    31,268    31,918    32,533    280,754
        Total:
            BA.................    21,035    14,020    34,049    34,757    35,263    35,269    34,477    33,936    35,186    35,969    36,641    329,567
            OT.................    17,238    10,701    29,204    31,211    31,682    31,687    30,863    30,223    31,629    32,638    33,363    293,201
Armed Services Committee:
    Current Law:
        BA.....................    50,884    52,630    59,578    61,763    63,987    66,156    68,382    70,624    72,894    75,262    77,684    668,960
        OT.....................    50,761    52,536    59,494    61,675    63,905    66,070    68,293    70,535    72,806    75,177    77,599    668,090
Financial Services Committee:
    Current Law:
        BA.....................     9,629     6,697     6,978     6,404     6,189     5,904     5,833     5,668     5,637     5,737     5,865     60,912
        OT.....................     4,149     1,366     1,228       763       187      -710      -886    -1,092    -1,147    -1,196    -1,245     -2,732
Committee on Education and the
 Workforce:
    Current Law:
        BA.....................     5,408     5,698     4,774     4,123     5,099     5,302     5,396     5,498     5,624     5,752     5,867     53,133
        OT.....................     4,544     5,049     4,627     4,137     4,519     4,844     4,901     4,997     5,116     5,236     5,342     48,768
    Discretionary Action:
        BA.....................         5         5         5         5         7        10        10        10        10        10        10         82
        OT.....................         5         5         5         5         7        10        10        10        10        10        10         82
    Reauthorizations:
        BA.....................         0       305       305       757       774       793     3,640     3,731     3,820     3,914     4,012     22,051
        OT.....................         0        58       244       669       772       790     2,789     3,622     3,794     3,887     3,984     20,609
        Total:
            BA.................     5,413     6,008     5,084     4,885     5,880     6,105     9,046     9,239     9,454     9,676     9,889     75,266
            OT.................     4,549     5,112     4,876     4,811     5,298     5,644     7,700     8,629     8,920     9,133     9,336     69,459
Energy and Commerce Committee:
    Current Law:
        BA.....................     1,852     9,774    11,636    16,674    17,773    17,853    18,852    13,903    13,891    13,928    13,967    148,251
        OT.....................         3     9,660    10,240    16,538    17,592    17,687    17,867    17,189    17,594    14,925    13,919    153,211
    Discretionary Action:
        BA.....................         0       227       527       627       752       902       977       975     1,050     1,125     1,175      8,337
        OT.....................         0       180       466       561       681       836       926     1,011     1,030     1,061     1,115      7,867
    Reauthorizations:
        BA.....................         0         0         0         0         0         0         0     5,000     5,000     5,000     5,000     20,000
        OT.....................         0         0         0         0         0         0         0       893       833     3,721     4,993     10,440
        Total:
            BA.................     1,852    10,001    12,163    17,301    18,525    18,755    19,829    19,878    19,941    20,053    20,142    176,588
            OT.................         3     9,840    10,706    17,099    18,273    18,523    18,793    19,093    19,457    19,707    20,027    171,518
Government Reform Committee:
    Current Law:
        BA.....................    60,669    62,982    65,455    68,016    70,498    73,038    75,736    78,477    81,347    84,403    87,520    747,472
        OT.....................    59,270    61,610    64,142    66,808    69,358    71,963    74,709    77,574    80,423    83,676    86,797    737,060
    Discretionary Action:
        BA.....................         0         0      -496      -523      -501      -475      -446      -413      -378      -340      -299     -3,871
        OT.....................         0         0      -496      -523      -501      -475      -446      -413      -378      -340      -299     -3,871
        Total:
            BA.................    60,669    62,982    64,959    67,493    69,997    72,563    75,290    78,064    80,969    84,063    87,221    743,601
            OT.................    59,270    61,610    63,646    66,285    68,857    71,488    74,263    77,161    80,045    83,336    86,498    733,189
Committee on House
 Administration:
    Current Law:
        BA.....................       112        87        89        86        87        87        87        88        88        88        88        875
        OT.....................        68        33        60       252        42        27        59       221        88        70        64        916
International Relations
 Committee:
    Current Law:
        BA.....................    11,390    11,727    11,813    11,829    12,114    12,369    12,694    12,661    12,607    12,586    12,629    123,029
        OT.....................    10,463    10,482    10,599    10,838    11,039    11,281    11,607    11,817    11,935    12,005    12,078    113,681
Resources Committee:
    Current Law:
        BA.....................     2,682     2,742     2,552     2,291     2,324     2,363     2,507     2,512     2,624     2,728     2,691     25,334
        OT.....................     2,551     2,636     2,662     2,354     2,312     2,330     2,455     2,443     2,550     2,656     2,614     25,012
    Discretionary Action:
        BA.....................         0         0        84        86        89        92         0         0         0         0         0        351
        OT.....................         0         0       -37         8        54        86       130        81        31         0         0        353
        Total:
            BA.................     2,682     2,742     2,636     2,377     2,413     2,455     2,507     2,512     2,624     2,728     2,691     25,685
            OT.................     2,551     2,636     2,625     2,362     2,366     2,416     2,585     2,524     2,581     2,656     2,614     25,365
Judiciary Committee:
    Current Law:
        BA.....................     5,064     5,221     4,346     4,410     4,410     4,416     4,475     4,543     4,630     4,706     4,782     45,939
        OT.....................     4,847     4,695     4,541     4,469     4,444     4,392     4,415     4,425     4,494     4,556     4,632     45,063
Transportation and
 Infrastructure Committee:
    Current Law:
        BA.....................    52,510    54,571    51,777    10,815    10,930    11,154    11,273    11,890    12,198    12,437    12,798    199,843
        OT.....................     9,662     9,781     9,901     9,868     9,643     9,545     9,487     9,967    10,194    10,378    10,690     99,454
    Reauthorizations:
        BA.....................         0         0         0    41,114    41,114    41,114    41,114    41,114    41,114    41,114    41,114    328,912
        OT.....................         0         0         0        86       307       495       569       601       620       633       639      3,950
        Total:
            BA.................    52,510    54,571    51,777    51,929    52,044    52,268    52,387    53,004    53,312    53,551    53,912    528,755
            OT.................     9,662     9,781     9,901     9,954     9,950    10,040    10,056    10,568    10,814    11,011    11,329    103,404
Science Committee:
    Current Law:
        BA.....................       158       192       213        72        74        77        78        80        81        84        85      1,036
        OT.....................        66       104       147       179       197       145        97        79        80        83        83      1,194
Small Business Committee:
    Current Law:
        BA.....................      -375         0         0         0         0         0         0         0         0         0         0          0
        OT.....................      -475      -100      -100         0         0         0         0         0         0         0         0       -200
Veterans' Affairs Committee:
    Current Law:
        BA.....................     1,249     1,356     1,358     1,365     1,356     1,349     1,344     1,335     1,301     1,271     1,243     13,278
        OT.....................     1,041     1,195     1,220     1,259     1,262     1,274     1,300     1,303     1,277     1,261     1,240     12,591
    Discretionary Action:
        BA.....................         0       264       479       761       816       885       953     1,008       594       640       687      7,087
        OT.....................         0       264       479       761       816       885       953     1,008       594       640       687      7,087
    Reauthorizations:
        BA.....................         0       445     1,035     1,641     2,431     2,888     3,211     4,012     4,644     5,294     5,963     31,564
        OT.....................         0       407       985     1,590     2,355     2,798     3,111     3,960     4,591     5,240     5,907     30,944
        Total:
            BA.................     1,249     2,065     2,872     3,767     4,603     5,122     5,508     6,355     6,539     7,205     7,893     51,929
            OT.................     1,041     1,866     2,684     3,610     4,433     4,957     5,364     6,271     6,462     7,141     7,834     50,622
Ways and Means Committee:
    Current Law:
        BA.....................   697,787   684,366   680,440   697,193   718,687   729,999   752,688   771,900   791,581   810,744   831,149  7,468,747
        OT.....................   696,886   684,537   679,418   695,843   716,988   728,179   751,350   770,209   789,680   809,335   829,471  7,455,010
    Reauthorizations:
        BA.....................         0       285    19,793    19,994    20,001    20,007    20,014    20,022    20,036    20,045    20,053    180,250
        OT.....................         0       208    20,036    20,913    21,121    21,227    21,284    21,342    21,356    21,365    21,373    190,225
    Discretionary Action:
        BA.....................     2,500    11,200    12,900    14,800    12,500    12,800    13,400    15,500    16,700    19,700    23,500    153,000
    Medicare Reform: \1\
        OT.....................     2,500    11,200    12,900    14,800    12,500    12,800    13,400    15,500    16,700    19,700    23,500    153,000
    Discretionary Action:
        BA.....................         0     1,041     3,089     2,834     3,879     4,247     4,984     4,983     4,945     4,902     4,862     39,766
    Other: \1\
        OT.....................         0       820     3,035     2,842     3,925     4,267     4,994     4,973     4,935     4,882     4,842     39,515
        Total:
            BA.................   700,287   696,892   716,222   734,821   755,067   767,053   791,086   812,405   833,262   855,391   879,564  7,841,763
            OT.................   699,386   696,765   715,389   734,398   754,534   766,473   791,028   812,024   832,671   855,282   879,186  7,837,750
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Shown for display purposes only.

                    ENFORCING THE BUDGET RESOLUTION

                              ----------                              


    The budget resolution is more than a planning document. The 
allocations of spending authority and the aggregate levels of 
both spending authority and revenues are binding on the 
Congress when it considers subsequent spending and tax 
legislation. Legislation that would breach the levels set forth 
in the budget resolution is subject to points of order on the 
floor.
    Any Member of the House may raise a point of order against 
any tax or spending legislation that creates new entitlement 
authority during certain points in a calendar year, or breeches 
the allocations and aggregate spending levels established in 
the budget resolution. If the point of order is sustained, the 
House is precluded from further consideration of the measure.
    The major Budget Act requirements are as follows:
Section 302(f)
    Section 302 of the Congressional Budget Act prohibits the 
consideration of legislation that exceeds a committee's 
allocation of new budget authority. Section 302(f) applies to 
the budget year and the 10-year total for authorizing 
committees. For appropriations bills, however, it applies only 
to the budget year. The budget year is the first fiscal year to 
which a concurrent resolution on the budget applies. An 
exception is provided for legislation that is offset by tax 
increases above and beyond those required by the budget 
resolution.
Section 303(a)
    This section prohibits the consideration of spending and 
tax legislation before the House has passed a budget 
resolution. Section 303(a) does not apply to budget authority 
and revenue provisions first effective in an outyear or to 
appropriation bills after May 15.
Section 311(a)(1)
    Section 311(a)(1) prohibits the consideration of 
legislation that exceeds the ceiling on budget authority and 
outlays or reduces revenue below the revenue floor. Section 
311(a)(1) applies to the budget year and 10-year total for 
bills increasing revenue, but only to the budget year for 
appropriations bills. Section 311 does not apply to spending 
bills that do not breach the committee's 302(a) allocations.
Section 401(a)
    This section of the Congressional Budget Act prohibits the 
consideration of legislation providing borrowing authority, new 
credit authority, or contract authority that is not subject to 
discretionary appropriations.
Section 401(b)(1)
    This section prohibits the consideration of legislation 
creating new entitlement authority in the year preceding the 
budget year. Section 401(b)(1) does not apply to trust funds 
primarily financed by earmarked taxes.
Section 312
    Under sections 312 of the Budget Act, the Budget Committee 
advises the presiding officer on the application of points of 
order against specific legislation pending before the House. 
House Budget Committee rules also authorize the chairman to 
poll the committee on recommendations to the Rules Committee to 
enforce the budget resolution by not waiving the applicable 
points of order during the consideration of specific measures.

                   STATUTORY CONTROLS OVER THE BUDGET

                              ----------                              


    In addition to the allocations and aggregate spending 
levels in the budget resolution, the Federal budget is subject 
to statutorily established spending limits and budgetary 
controls. The Balanced Budget Act of 1997 revised and extended 
the caps on discretionary spending as well as the pay-as-you-go 
[PAYGO] requirements for entitlement and tax legislation. Both 
the spending caps and PAYGO requirements are enforced with 
automatic spending cuts through a process known as 
sequestration. However, both PAYGO and the discretionary caps 
are set to expire after fiscal year 2002. The President has 
recommended in his most recent budget submission to extend both 
the PAYGO regimen and the discretionary spending limits through 
2006. The general purpose discretionary caps expire after 
fiscal year 2002, though certain categories of discretionary 
spending which have separate caps extend beyond that date. 
Though the PAYGO scorecard includes levels through fiscal year 
2006, it only applies to legislation enacted prior to the end 
of fiscal year 2002, since direct spending and revenue 
legislation typically have effects beyond the year in which 
they are passed. The PAYGO scorecard reflects these out-year 
budgetary consequences.

                     DISCRETIONARY SPENDING LIMITS

    Under the Balanced Budget and Emergency Deficit Control Act 
of 1985, there is a general purpose discretionary spending 
limit in place for fiscal year 2002. Included within the 1998 
highway authorization bill (``Transportation Equity Act for the 
21st Century'' or TEA 21) were separate categories for highway 
and mass transit spending for fiscal years 1999 through 2003.
    In addition, in H.R.4578, the Department of the Interior 
and Related Agencies Appropriations Act of 2001, a new spending 
limit was created specifically for a conservation category of 
discretionary appropriations. While the overall discretionary 
spending limits lapse after fiscal year 2002, the conservation 
category spending caps extend through fiscal year 2006.
    The Deficit Control Act provides automatic adjustments to 
the spending caps for bills providing appropriations (subject 
to certain limitations) for emergencies, estimating differences 
in outlays, continuing disability reviews, the International 
Monetary Fund [IMF], adoption incentive payments, and an Earned 
Income Tax Credit compliance initiative. Similarly, TEA 21 
provides for an automatic cap adjustment for changes in revenue 
relating to the highway spending category. Additionally, the 
legislation creating the Conservation category provides an 
adjustment in that category to any sub-category spending limit 
when an appropriation bill provides less than the maximum 
amount for that sub-category. In that case, the spending limit 
for the fiscal year following that year's appropriation is 
increased by the difference between the spending cap of the 
sub-category and the actual amount appropriated.
    Discretionary spending in 2002 will be significantly higher 
than the current law spending limits, as adjusted. The 
President, in his budget submission, has proposed, and the 
Congress will consider, whether to extend these the 
discretionary spending limits beyond fiscal year 2002.
    For 2002, CBO estimates the total limits on discretionary 
spending to be $552 billion for budget authority and $576 
billion for outlays. In comparison, those caps are below the 
adjusted 2001 limits by $89 billion and $69 billion, 
respectively.

                            CURRENT STATUTORY CAPS BY BUDGET ENFORCEMENT ACT CATEGORY
                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                              12001     2002      2003     2004    2005    2006
----------------------------------------------------------------------------------------------------------------
Discretionary Category:\1\
    BA....................................................   640,803   550,035       na      na      na      na
    Outlay................................................   613,883   540,353       na      na      na      na
Highway Category:\2\
    BA....................................................       na        na        na      na      na      na
    Outlay................................................    26,920    28,889    27,728     na      na      na
Mass Transit Category:\2\
    BA....................................................       na        na        na      na      na      na
    Outlay................................................     4,639     5,490     6,256     na      na      na
Conservation Category:
    BA....................................................       na      1,760     1,920   2,080   2,240   2,400
    Outlay................................................       na      1,232     1,872   2,032   2,192   2,352
Total Discretionary Spending Limits as of January 25,
 2001:
    BA....................................................   640,803   551,795       na      na      na      na
    Outlay................................................   645,442   575,964       na      na      na      na
----------------------------------------------------------------------------------------------------------------
Source: Congressional Budget Office.

Note: The discretionary spending limits expire in 2002. The category limits in Highway, Mass Transit and
  Conservation displayed beyond that fiscal year are the statutory levels and have not been adjusted by either
  the Congressional Budget Office or the Office of Management and Budget.

\1\ This category comprises defense, nondefense, and violent crime reduction spending.
\2\ The highway and mass transit categories do not have budget authority limits. Obligation limitations, which
  are not counted as budget authority, control all of the spending in the highway category and most of the
  spending in the mass transit category.

                       PAY-AS-YOU-GO REQUIREMENTS

    The Omnibus Budget Reconciliation Act of 1990 established a 
pay-as-you-go [PAYGO] requirement for tax and entitlement 
legislation. Under PAYGO, the sum of all tax and entitlement 
(or otherwise mandatory) legislation may not increase the net 
deficit in any fiscal year. The Balanced Budget Act of 1997 
extended the PAYGO requirements through fiscal year 2002. As 
amended by the Omnibus Budget Reconciliation Act of 1993, PAYGO 
had been scheduled to expire at the end of fiscal year 1998. 
PAYGO is enforced through a sequestration applied to all non-
exempt entitlement programs. At the end of the 106th Congress, 
the President signed the Consolidated Appropriations Act of 
2001 (P.L. 106-554). This required that the pay-as-you-go 
balances that would have resulted in a significant sequester 
for FY 2001 be set to zero in the final sequestration report 
prepared by the Office of Management and Budget. There are 
currently the following balances on the pay-as-you-go 
scorecard. Agsent offsets, these balances would trigger a 
sequester each of fiscal years 2002 through 2006.

                                             PAY-AS-YOU-GO SCORECARD
                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                 2000   2001    2002      2003      2004      2005     2005-2006
----------------------------------------------------------------------------------------------------------------
Receipt Effect................................      0      0    -3,863    -3,920    -3,596    -3,820     -15,199
Outlay Effect.................................      0      0    12,190    14,545    15,740    16,853      59,328
Net Budget Cost...............................      0      0    16,053    18,465    19,336    20,673      74,527
----------------------------------------------------------------------------------------------------------------
Source: Office of Management and Budget as of March 15, 2001.

Note: Pursuant to P.L. 106-554, the pay-as-you-go balances that would result in a sequester for FY 2001 were set
  to zero in OMBs final sequestration report. Positive value indicates sequester would be required unless
  offsets are enacted. Negative value indicates balances of savings available as offsets.

                         VOTES OF THE COMMITTEE

                              ----------                              


    Clause 3(b) of House Rule XIII requires each committee 
report to accompany any bill or resolution of a public 
character, ordered to include the total number of votes cast 
for and against on each roll call vote, on a motion to report 
and any amendments offered to the measure or matter, together 
with the names of those voting for and against. Listed below 
are the roll call votes taken in the House Budget Committee on 
the concurrent resolution on the budget for fiscal year 2002.
    On March 21, 2001 the Committee met in open session, a 
quorum being present. The committee adopted and ordered 
reported the Concurrent Resolution on the Budget for Fiscal 
year 2002. The following votes were taken in Committee:
    Mr. Sununu asked unanimous consent that the Chairman be 
authorized, consistent with clause 4 of House Rule XVI, to 
declare a recess at any time during the Committee meeting.
    There was no objection to the unanimous consent request.
    Chairman Nussle asked unanimous consent to dispense with 
the first reading of the resolution and that the budget 
aggregates, functional cetagories, and other relevant items be 
open for amendment at any time.
    There was no objection to the unanimous consent request.
    1. Mr. Spratt offered an amendment to adjust the aggregate 
level of revenues by $44 billion for fiscal year 2002 and $883 
billion for fiscal years 2002 through 2011. The amendment would 
replace the reconciliation directive in section 4 of the 
Chairman's Mark language. The amendment directed that before 
April 30, 2001, the House Committee on Ways and Means report to 
the House a reconciliation bill that consists of changes in 
laws within its jurisdiction which removes the Federal Hospital 
Insurance Trust Fund from the on-budget portion of the unified 
Federal budget. It also required that all of the Social 
Security surplus in each fiscal year from 2002 through 2011 
would be used to purchase special non-marketable Treasury bonds 
to be used only to pay for Social Security benefits stipulated 
in current law. It also provided that all of the Federal 
Hospital Insurance Trust Fund surplus in each fiscal year from 
2002 through 2011 be used to purchase similar special non-
marketable bonds from the Treasury to pay for Medicare Hospital 
Insurance benefits stipulated in current law. The amendment 
further required that the Treasury use the proceeds of sales of 
special non-marketable bonds to the Social Security and 
Medicare Hospital Insurance trust fund exclusively for buying 
back publicly held debt.
    The amendment dictated that before May 13, 2001, the House 
Committee on Ways and Means submit legislation to the House 
Committee on the Budget providing for annual remittance from 
the General Fund of the Treasury to the Hospital Insurance 
(Medicare Part A) Trust Fund and to the Old Age and Survivors 
Insurance Trust Fund of an amount equal to $910 billion from 
fiscal year 2002 through fiscal year 2011, equally divided 
between the two trust funds, to extend their solvency until at 
least 2050 for Social Security and 2040 for Medicare. Prior to 
May 25, 2001, the House Committee on Ways and Means shall 
report to the House a reconciliation bill that consists of 
changes in laws within its jurisdiction to accomplish tax 
relief of $23 billion in 2002 and $737 billion over the 10-year 
period of fiscal years 2002 through 2011. The amendment would 
in addition set all spending functions in the budget resolution 
at baseline levels to maintain the constant purchasing power as 
stipulated by the Congressional Budget Office's March baseline 
with the exception of Function 900, net interest, which is 
adjusted to reflect as necessary the tax cut and remittances 
for Social Security and Medicare solvency as called for in the 
preceding part of the amendment. The amendment provided general 
language for the creation of a reserve fund to provide 
resources for a number of spending areas.
    The amendment offered by Mr. Spratt was not agreed to by 
voice vote.
    2. Mr. Bentsen offered an amendment for the protection of 
existing Social Security and Medicare benefits. The amendment 
directed that before April 30, 2001, the House Committee on 
Ways and Means report to the House a reconciliation bill that 
consists of changes in laws within its jurisdiction which 
removes the Federal Hospital Insurance Trust Fund from the on-
budget portion of the unified Federal budget. It also required 
that all of the Social Security surplus in each fiscal year 
from 2002 through 2011 would be used to purchase special non-
marketable Treasury bonds to be used only to pay for Social 
Security benefits stipulated in current law. It also provided 
that all of the Federal Hospital Insurance Trust Fund surplus 
in each fiscal year from 2002 through 2011 be used to purchase 
similar special non-marketable bonds from the Treasury to pay 
for Medicare Hospital Insurance benefits stipulated in current 
law. The amendment further required that the Treasury use the 
proceeds of sales of special non-marketable bonds to the Social 
Security and Medicare Hospital Insurance trust fund exclusively 
for buying back publicly held debt.
    The amendment also created a point of order in the House of 
Representatives and in the Senate against bills or budget 
resolutions which would cause or set forth a surplus at a lower 
level than the amount in the Federal Hospital Insurance Trust 
Fund.
    The amendment offered by Mr. Bentsen was not agreed to on a 
roll call vote of 19 ayes and 22 noes.


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,              X      .........  ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. SUNUNU          ..........       X      ............  Mr. McDERMOTT            X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HOEKSTRA        ..........  ..........  ............  Mr. THOMPSON        ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BASS            ..........       X      ............  Mr. BENTSEN              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GUTKNECHT       ..........       X      ............  Mr. DAVIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HILLEARY        ..........       X      ............  Mrs. CLAYTON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. THORNBERRY      ..........       X      ............  Mr. PRICE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYUN            ..........       X      ............  Mr. KLECZKA              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. COLLINS         ..........       X      ............  Mr. CLEMENT              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. FLETCHER        ..........       X      ............  Mr. MORAN                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. MILLER          ..........       X      ............  Ms. HOOLEY          ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TOOMEY          ..........       X      ............  Ms. BALDWIN              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WATKINS         ..........       X      ............  Mrs. McCARTHY            X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HASTINGS        ..........  ..........  ............  Mr. MOORE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. DOOLITTLE       ..........       X      ............  Mr. CAPUANO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PORTMAN         ..........       X      ............  Mr. HONDA                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. LA HOOD         ..........       X      ............  Mr. HOEFFEL              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Ms. GRANGER         ..........       X      ............  Mr. HOLT            ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SCHROCK         ..........       X      ............  Mr. MATHESON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CULBERSON       ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. BROWN           ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. KIRK            ..........       X
----------------------------------------------------------------------------------------------------------------

    3. Mr. Moore offered an amendment to provide for the 
solvency of Social Security and Medicare. The amendment 
directed that before April 30, 2001, the House Committee on 
Ways and Means report to the House a reconciliation bill that 
consists of changes in laws within its jurisdiction which 
removes the Federal Hospital Insurance Trust Fund from the on-
budget portion of the unified Federal budget. It also required 
that all of the Social Security surplus in each fiscal year 
from 2002 through 2011 would be used to purchase special non-
marketable Treasury bonds to be used only to pay for Social 
Security benefits stipulated in current law. It also provided 
that all of the Federal Hospital Insurance Trust Fund surplus 
in each fiscal year from 2002 through 2011 be used to purchase 
similar special non-marketable bonds from the Treasury to pay 
for Medicare Hospital Insurance benefits stipulated in current 
law. The amendment further required that the Treasury use the 
proceeds of sales of special non-marketable bonds to the Social 
Security and Medicare Hospital Insurance trust fund exclusively 
for buying back publicly held debt. The amendment dictated that 
before May 13, 2001, the House Committee on Ways and Means 
submit legislation to the House Committee on the Budget 
providing for annual remittance from the General Fund of the 
Treasury to the Hospital Insurance (Medicare Part A) Trust Fund 
and to the Old Age and Survivors Insurance Trust Fund of an 
amount equal to $910 billion from fiscal year 2002 through 
fiscal year 2011, equally divided between the two trust funds, 
to extend their solvency.
    The amendment offered by Moore was not agreed to by a roll 
call vote of 17 ayes and 22 noes.


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,              X      .........  ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. SUNUNU          ..........       X      ............  Mr. McDERMOTT            X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HOEKSTRA        ..........       X      ............  Mr. THOMPSON        ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BASS            ..........       X      ............  Mr. BENTSEN              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GUTKNECHT       ..........       X      ............  Mr. DAVIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HILLEARY        ..........       X      ............  Mrs. CLAYTON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. THORNBERRY      ..........       X      ............  Mr. PRICE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYUN            ..........       X      ............  Mr. KLECZKA              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. COLLINS         ..........       X      ............  Mr. CLEMENT              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. FLETCHER        ..........       X      ............  Mr. MORAN           ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. MILLER          ..........       X      ............  Ms. HOOLEY               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TOOMEY          ..........       X      ............  Ms. BALDWIN              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WATKINS         ..........       X      ............  Mrs. McCARTHY            X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HASTINGS        ..........       X      ............  Mr. MOORE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. DOOLITTLE       ..........  ..........  ............  Mr. CAPUANO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PORTMAN         ..........       X      ............  Mr. HONDA                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. LA HOOD         ..........       X      ............  Mr. HOEFFEL              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Ms. GRANGER         ..........       X      ............  Mr. HOLT                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SCHROCK         ..........       X      ............  Mr. MATHESON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CULBERSON       ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. BROWN           ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. KIRK
----------------------------------------------------------------------------------------------------------------

    4. Mr. Matheson offered an amendment to reduce the level of 
tax reduction and increase the amount of debt reduction. The 
amendment reduced the size of the tax reduction in the 
Chairman's Mark by $33.6 billion in fiscal year 2002 and by 
$810 billion for the period between fiscal years 2002 and 2005. 
The amendment provides an equal amount for debt reduction in 
fiscal year 2002 and the period between fiscal years 2002 and 
2005. The amendment dictated that before May 13, 2001, the 
House Committee on Ways and Means submit legislation to the 
House Committee on the Budget providing for annual remittance 
from the General Fund of the Treasury to the Hospital Insurance 
(Medicare Part A) Trust Fund and to the Old Age and Survivors 
Insurance Trust Fund of an amount equal to $910 billion from 
fiscal year 2002 through fiscal year 2011, equally divided 
between the two trust funds, to extend their solvency until at 
least 2050 for Social Security and 2040 for Medicare. Prior to 
May 25, 2001, the House Committee on Ways and Means shall 
report to the House a reconciliation bill that consists of 
changes in laws within its jurisdiction to accomplish tax 
relief of $23 billion in 2002 and $737 billion over the 10-year 
period of fiscal years 2002 through 2011. The amendment strikes 
the reconciliation instruction in section 4 and inserts 
additional language that would provides a directive to the Ways 
and Means Committee to report a bill which provides tax relief 
of $33.6 billion in fiscal year 2002 and $810 billion over the 
10-year period of fiscal years 2002 through 2011. It also 
requires the Ways and Means Committee to report legislation 
that reserves a portion of the non-Social Security, non-
Medicare Hospital Insurance Trust fund equal at least to $810 
billion over the 10-year period fiscal year 2002 through fiscal 
year 2011 for buying back publicly held debt.
    The amendment offered by Mr. Matheson was not agreed to by 
a roll call vote of 16 ayes and 23 noes.


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,              X      .........  ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. SUNUNU          ..........       X      ............  Mr. McDERMOTT            X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HOEKSTRA        ..........       X      ............  Mr. THOMPSON        ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BASS            ..........       X      ............  Mr. BENTSEN              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GUTKNECHT       ..........       X      ............  Mr. DAVIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HILLEARY        ..........       X      ............  Mrs. CLAYTON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. THORNBERRY      ..........       X      ............  Mr. PRICE           ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYUN            ..........       X      ............  Mr. KLECZKA              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. COLLINS         ..........       X      ............  Mr. CLEMENT              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. FLETCHER        ..........       X      ............  Mr. MORAN           ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. MILLER          ..........       X      ............  Ms. HOOLEY               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TOOMEY          ..........       X      ............  Ms. BALDWIN              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WATKINS         ..........       X      ............  Mrs. McCARTHY            X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HASTINGS        ..........       X      ............  Mr. MOORE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. DOOLITTLE       ..........  ..........  ............  Mr. CAPUANO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PORTMAN         ..........       X      ............  Mr. HONDA                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. LA HOOD         ..........       X      ............  Mr. HOEFFEL              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Ms. GRANGER         ..........       X      ............  Mr. HOLT                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SCHROCK         ..........       X      ............  Mr. MATHESON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CULBERSON       ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. BROWN           ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. KIRK            ..........       X
----------------------------------------------------------------------------------------------------------------

    5. Mr. McDermott offered an amendment to create voluntary 
universal Medicare Coverage for Prescription Drugs and Cost-
Sharing protections for Low-Income Americans. The amendment 
increases the budget authority function 550, in billions of 
dollars, by $.1 billion in 2002, $.7 billion in 2003, $2.6 
billion in 2004, $5 billion in 2005, $6 billion in 2006, $6.1 
billion in 2007, $6.4 billion in 2008, $6.7 billion in 2009, 
$7.1 billion in 2010 and $7.3 billion in 2011. The amendment 
increases the outlays in functions 550 and 570 by $.1 billion 
in 2002, $.7 billion in 2003, $2.6 billion in 2004, $5 billion 
in 2005, $6 billion in 2006, $6.1 billion in 2007, $6.4 billion 
in 2008, $6.7 billion in 2009, $7.1 billion in 2010 and $7.3 
billion in 2011. The amendment increases budget authority in 
function 570 by zero in 2002, $14.2 billion in 2003, $21.9 
billion in 2004, $25 billion in 2005, $28.4 billion in 2006, 
$32.5 billion in 2007, $37 billion in 2008, $41.9 billion in 
2009, $47.4 billion in 2010, $53.7 billion in 2011. The 
amendment increases outlays in function 570 by zero in 2002, 
$14.2 billion in 2003, $21.9 billion in 2004, $25 billion in 
2005, $28.4 billion in 2006, $32.5 billion in 2007, $37 billion 
in 2008, $41.9 billion in 2009, $47.4 billion in 2010, $53.7 
billion in 2011.
    The amendment offered by Mr. McDermott was not agreed to 
agreed to by a roll call vote of 16 ayes and 24 noes.


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,              X      .........  ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. SUNUNU          ..........       X      ............  Mr. McDERMOTT            X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HOEKSTRA        ..........       X      ............  Mr. THOMPSON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BASS            ..........       X      ............  Mr. BENTSEN              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GUTKNECHT       ..........       X      ............  Mr. DAVIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HILLEARY        ..........       X      ............  Mrs. CLAYTON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. THORNBERRY      ..........       X      ............  Mr. PRICE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYUN            ..........       X      ............  Mr. KLECZKA              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. COLLINS         ..........       X      ............  Mr. CLEMENT              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. FLETCHER        ..........       X      ............  Mr. MORAN                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. MILLER          ..........       X      ............  Ms. HOOLEY          ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TOOMEY          ..........       X      ............  Ms. BALDWIN              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WATKINS         ..........       X      ............  Mrs. McCARTHY       ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HASTINGS        ..........       X      ............  Mr. MOORE           ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. DOOLITTLE       ..........       X      ............  Mr. CAPUANO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PORTMAN         ..........       X      ............  Mr. HONDA                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. LA HOOD         ..........       X      ............  Mr. HOEFFEL              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Ms. GRANGER         ..........       X      ............  Mr. HOLT                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SCHROCK         ..........       X      ............  Mr. MATHESON        ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CULBERSON       ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. BROWN           ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. KIRK            ..........       X
----------------------------------------------------------------------------------------------------------------

    6. Mr. Honda offered an amendment to reduce revenue and 
increase spending to reflect increased budget authority and 
outlays for the education function. The amendment increases 
budget authority in function 500, in billions of dollars, by 
$4.218 in 2002, $4.994 in 2003, $5.810 in 2004, $6.721 in 2005, 
$7.417 in 2006, $8.171 in 2007, $8.990 in 2008, $9.893 in 2009, 
$10.880 in 2010, and $11.973 in 2011. The amendment increases 
outlays in function 500, in billions of dollars, by $.446 in 
2002, $1.844 in 2003, $3.359 in 2004, $4.935 in 2005, $6.049 in 
2006, $6.931 in 2007, $7.712 in 2008, $8.454 in 2009, $9.062 in 
2010, $9.899 in 2011. These increases were for the purpose of 
increasing Pell Grants, training, recruiting and hiring new 
teachers, and school construction through loans, grants, and 
tax credits. The amendment increased the level of revenue 
relative to the Chairman's Mark by an amount equal to the 
increases in outlays changes in function 500. It further 
reserved amounts within the remaining tax reduction for tax 
credits to eliminate the costs of bonds used to pay for school 
construction, or renovation of existing facilities in the 
following amounts: -$19 million for 2002, -$101 million for 
2003, -$269 million for 2004, -$533 for 2005, -$821 million for 
2006, -$988 million for 2007, -$1,025 million for 2007, -$1,025 
million for 2008, -$1,025 million for 2009, -$1,025 million for 
2010, -$1,025 million for 2011.
    The amendment offered by Mr. Honda was not agreed to by a 
roll call vote of 17 ayes and 23 noes.


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,              X      .........  ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. SUNUNU          ..........       X      ............  Mr. McDERMOTT            X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HOEKSTRA        ..........       X      ............  Mr. THOMPSON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BASS            ..........       X      ............  Mr. BENTSEN         ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GUTKNECHT       ..........       X      ............  Mr. DAVIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HILLEARY        ..........       X      ............  Mrs. CLAYTON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. THORNBERRY      ..........       X      ............  Mr. PRICE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYUN            ..........       X      ............  Mr. KLECZKA              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. COLLINS         ..........       X      ............  Mr. CLEMENT              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. FLETCHER        ..........       X      ............  Mr. MORAN                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. MILLER          ..........       X      ............  Ms. HOOLEY               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TOOMEY          ..........       X      ............  Ms. BALDWIN              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WATKINS         ..........  ..........  ............  Mrs. McCARTHY       ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HASTINGS        ..........       X      ............  Mr. MOORE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. DOOLITTLE       ..........       X      ............  Mr. CAPUANO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PORTMAN         ..........       X      ............  Mr. HONDA                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. LA HOOD         ..........       X      ............  Mr. HOEFFEL              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Ms. GRANGER         ..........       X      ............  Mr. HOLT                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SCHROCK         ..........       X      ............  Mr. MATHESON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CULBERSON       ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. BROWN           ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. KIRK            ..........       X
----------------------------------------------------------------------------------------------------------------

    7. Ms. Clayton offered an amendment to increase budget 
authority in function 600 and to increase the level of revenues 
provided for in the Chairman's Mark by an equal amount. The 
level of the increases in budget authority in the function are 
as follows, in billions of dollars: $1.453 in 2002, $6.174 in 
2003, $6.843 in 2004, $7.210 in 2005, $7.509 in 2006, $7.644 in 
2007, $8.055 in 2008, $8.365 in 2009, $8.856 in 2010, $9.123 in 
2011. The level of increases in outlays in the function are as 
follows, in billions of dollars: $1.076 in 2002, $6.094 in 
2003, $6.783 in 2004, $7.185 in 2005, $7.514 in 2006, $7.674 in 
2007, $8.095 in 2008, $8.440 in 2009, $8.633 in 2010, $9.193 in 
2011. These increases were for the purposes of spending more on 
the Earned Income Credit, Food Stamps, Supplemental Grants 
within the Temporary Assistance to Needy Families program and 
giving Supplemental Security Insurance and foods stamp benefits 
to legal immigrants. The amendment also increased function 500 
in millions of dollars by the following amounts: In budget 
authority, $680 in 2002, $680 in 2003, $680 in 2004, $680 in 
2004, $680 in 2005, $680 in 2006, $680 in 2007, $680 in 2008, 
$680 in 2009, $680 in 2010, $680 in 2011; and in outlays, $510 
in 2002, $680 in 2003, $680 in 2004, $680 in 2005, $680 in 
2006, $680 in 2007, $680 in 2008, $680 in 2009, $680 in 2010, 
$680 in 2011. The amendment would also increase the level of 
spending in function 550 by the following amounts in billions 
of dollars: In budget authority, $400 in 2002, $210 in 2003, 
$410 in 2004, $640 in 2005, $890 in 2006, $1,180 in 2007, 
$1,495 in 2008, $1,850 in 2009, $2,245 in 2010, and $2,268 in 
2011; and in outlays by $400 in 2002, $210 in 2003, $410 in 
2004, $640 in 2005, $890 in 2006, $1,180 in 2007, $1,495 in 
2008, $1,850 in 2009, $2,245 in 2010, and $2,268 in 2011. The 
amendment further proposes to increase the level of revenues 
relative to the Chairman's Mark by the amounts of the preceding 
spending increases, and then reserve within the remaining tax 
reduction the following amounts for the Earned Income Credit: -
$78 million in 2002, -$4,992 million in 2003, -$5,148 in 2004, 
-$5,304 in 2007, -$5,304 in 2008, -$5,304 in 2009, -$5,304 in 
2010, -$5,304 in 2011.
    The amendment offered by Ms. Clayton was not agreed to by a 
voice vote.
    8. Ms. Clayton offered an amendment to increase budget 
authority in function 600 and to increase the level of revenues 
provided for in the Chairman's Mark by an equal amount. The 
level of the increases in budget authority in the function are 
as follows, in billions of dollars: $9 in 2002, $4 in 2003, $4 
in 2004, $4 in 2005, $4 in 2006, $4 in 2007, $4 in 2008, $4 in 
2009, $4 in 2010, $4 in 2011 and in outlays in the function, in 
billions of dollars: $9 in 2002, $4 in 2003, $4 in 2004, $4 in 
2005, $4 in 2006, $4 in 2007, $4 in 2008, $4 in 2009, $4 in 
2010, $4 in 2011. The amendment increases the revenue level 
relative to the Chairman's Mark by an amount equal to the 
foregoing outlay changes. These spending increases in the 
function are for the purpose of increasing assistance to 
agriculture programs.
    The amendment offered by Mrs. Clayton was not agreed to by 
a roll call vote of 16 ayes and 21 noes.


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,              X      .........  ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. SUNUNU          ..........       X      ............  Mr. McDERMOTT            X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HOEKSTRA        ..........       X      ............  Mr. THOMPSON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BASS            ..........       X      ............  Mr. BENTSEN              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GUTKNECHT       ..........       X      ............  Mr. DAVIS           ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HILLEARY        ..........       X      ............  Mrs. CLAYTON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. THORNBERRY      ..........       X      ............  Mr. PRICE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYUN            ..........       X      ............  Mr. KLECZKA         ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. COLLINS         ..........       X      ............  Mr. CLEMENT              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. FLETCHER        ..........       X      ............  Mr. MORAN                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. MILLER          ..........       X      ............  Ms. HOOLEY               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TOOMEY          ..........  ..........  ............  Ms. BALDWIN              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WATKINS         ..........  ..........  ............  Mrs. McCARTHY            X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HASTINGS        ..........       X      ............  Mr. MOORE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. DOOLITTLE       ..........       X      ............  Mr. CAPUANO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PORTMAN         ..........  ..........  ............  Mr. HONDA           ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. LA HOOD         ..........       X      ............  Mr. HOEFFEL              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Ms. GRANGER         ..........       X      ............  Mr. HOLT                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SCHROCK         ..........       X      ............  Mr. MATHESON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CULBERSON       ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. BROWN           ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. KIRK            ..........       X
----------------------------------------------------------------------------------------------------------------

    9. Ms. Baldwin offered an amendment to increase spending 
levels of function 550 and increase the revenue level set forth 
in the Chairman's Mark. The level of the increases in budget 
authority in the function are as follows, in billions of 
dollars: zero in 2002, $1 in 2003, $2 in 2004, $3 in 2005, $5 
in 2006, $10 in 2007, $9 in 2008, $8 in 2009, $9 in 2010, and 
$9 in 2011. The level of the increases in outlays in the 
function are as follows, in billions of dollars: zero in 2002, 
$1 in 2003, $2 in 2004, $3 in 2005, $5 in 2006, $10 in 2007, $9 
in 2008, $8 in 2009, $9 in 2010, and $9 in 2011. The amendment 
increases the revenue level relative to the Chairman's Mark by 
an amount equal to the foregoing outlay changes. The purpose of 
the spending increases in the function are for the purpose of 
increasing assistance to states for the State Child Health 
Insurance Program or for Medicaid that allows states to provide 
health coverage to parents of children who are eligible for 
those programs.
    The amendment offered by Ms. Baldwin was not agreed to by a 
roll call vote of 15 ayes and 21 noes.


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,              X      .........  ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. SUNUNU          ..........       X      ............  Mr. McDERMOTT            X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HOEKSTRA        ..........       X      ............  Mr. THOMPSON        ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BASS            ..........       X      ............  Mr. BENTSEN         ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GUTKNECHT       ..........       X      ............  Mr. DAVIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HILLEARY        ..........       X      ............  Mrs. CLAYTON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. THORNBERRY      ..........       X      ............  Mr. PRICE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYUN            ..........       X      ............  Mr. KLECZKA         ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. COLLINS         ..........       X      ............  Mr. CLEMENT              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. FLETCHER        ..........       X      ............  Mr. MORAN                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. MILLER          ..........       X      ............  Ms. HOOLEY               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TOOMEY          ..........  ..........  ............  Ms. BALDWIN              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WATKINS         ..........  ..........  ............  Mrs. McCARTHY            X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HASTINGS        ..........       X      ............  Mr. MOORE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. DOOLITTLE       ..........       X      ............  Mr. CAPUANO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PORTMAN         ..........  ..........  ............  Mr. HONDA           ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. LA HOOD         ..........       X      ............  Mr. HOEFFEL              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Ms. GRANGER         ..........       X      ............  Mr. HOLT                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SCHROCK         ..........       X      ............  Mr. MATHESON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CULBERSON       ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. BROWN           ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. KIRK            ..........       X
----------------------------------------------------------------------------------------------------------------

    10. Mr. Holt offered an amendment to increase spending 
levels of function 300 and increase the revenue level set forth 
in the Chairman's Mark. The level of the increases in budget 
authority in the function are as follows, in millions of 
dollars: $260 in 2002, $420 in 2003, $580 in 2004, $640 in 
2005, $800 in 2006, $817 in 2007, $835 in 2008, $855 in 2009, 
$873 in 2010, $893 in 2011; the level of the increases in 
outlays in the function are as follows, in millions of dollars: 
$124 in 2002, $276 in 2003, $459 in 2004, $572 in 2005, $702 in 
2006, $771 in 2007, $822 in 2008, $840 in 2009, $859 in 2010, 
$878 in 2011. The amendment increases the revenue level 
relative to the Chairman's Mark by an amount equal to the 
foregoing outlay changes. The increase in spending levels in 
the function are provided for a increase in land conservation, 
preservation and infrastructure improvements.
    The amendment offered by Mr. Holt was not agreed to by a 
roll call vote of 17 ayes and 21 noes.


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,              X      .........  ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. SUNUNU          ..........       X      ............  Mr. McDERMOTT            X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HOEKSTRA        ..........       X      ............  Mr. THOMPSON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BASS            ..........       X      ............  Mr. BENTSEN              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GUTKNECHT       ..........       X      ............  Mr. DAVIS           ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HILLEARY        ..........       X      ............  Mrs. CLAYTON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. THORNBERRY      ..........       X      ............  Mr. PRICE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYUN            ..........       X      ............  Mr. KLECZKA         ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. COLLINS         ..........       X      ............  Mr. CLEMENT              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. FLETCHER        ..........       X      ............  Mr. MORAN                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. MILLER          ..........       X      ............  Ms. HOOLEY               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TOOMEY          ..........  ..........  ............  Ms. BALDWIN              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WATKINS         ..........  ..........  ............  Mrs. McCARTHY            X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HASTINGS        ..........       X      ............  Mr. MOORE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. DOOLITTLE       ..........       X      ............  Mr. CAPUANO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PORTMAN         ..........       X      ............  Mr. HONDA                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. LA HOOD         ..........       X      ............  Mr. HOEFFEL              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Ms. GRANGER         ..........       X      ............  Mr. HOLT                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SCHROCK         ..........  ..........  ............  Mr. MATHESON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CULBERSON       ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. BROWN           ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. KIRK            ..........       X
----------------------------------------------------------------------------------------------------------------

    11. Mr. Holt offered an amendment to increase spending 
levels of function 250 and increase the revenue level set forth 
in the Chairman's Mark. The level of the increases in budget 
authority in the function are as follows, in millions of 
dollars: $1,000 in 2002, $1,023 in 2003, $1,042 in 2004, $1,065 
in 2005, $1,089 in 2006, $1,112 in 2007, $1,136 in 2008, $1,159 
in 2009, $1,182 in 2010, $1,206 in 2011. The level of the 
increases in outlays in the function are as follows, in 
millions of dollars: 518 in 2002, 921 in 2003, 997 in 2004, 
$1,032 in 2005, $1,060 in 2006, $1,085 in 2007, $1,109 in 2008, 
$1,132 in 2009, $1,154 in 2010, $1,178 in 2011. The amendment 
increases the revenue level relative to the Chairman's Mark by 
an amount equal to the foregoing outlay changes. The increase 
in the spending levels in the function are provided for greater 
scientific research funding.
    The amendment offered by Mr. Holt was not agreed to by a 
roll call vote of 19 ayes and 21 noes.


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,              X      .........  ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. SUNUNU          ..........       X      ............  Mr. McDERMOTT            X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HOEKSTRA        ..........       X      ............  Mr. THOMPSON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BASS            ..........       X      ............  Mr. BENTSEN              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GUTKNECHT       ..........       X      ............  Mr. DAVIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HILLEARY        ..........       X      ............  Mrs. CLAYTON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. THORNBERRY      ..........       X      ............  Mr. PRICE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYUN            ..........       X      ............  Mr. KLECZKA              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. COLLINS         ..........       X      ............  Mr. CLEMENT              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. FLETCHER        ..........       X      ............  Mr. MORAN                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. MILLER          ..........       X      ............  Ms. HOOLEY               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TOOMEY          ..........  ..........  ............  Ms. BALDWIN              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WATKINS         ..........       X      ............  Mrs. McCARTHY            X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HASTINGS        ..........       X      ............  Mr. MOORE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. DOOLITTLE       ..........       X      ............  Mr. CAPUANO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PORTMAN         ..........       X      ............  Mr. HONDA                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. LA HOOD         ..........       X      ............  Mr. HOEFFEL              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Ms. GRANGER         ..........       X      ............  Mr. HOLT                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SCHROCK         ..........  ..........  ............  Mr. MATHESON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CULBERSON       ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. BROWN           ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. KIRK
----------------------------------------------------------------------------------------------------------------

    12. Mr. Clement offered an amendment to increase spending 
levels of function 050, 600, and 700; and increase the revenue 
level set forth in the Chairman's Mark. The level of the 
increases in budget authority in function 050 are as follows, 
in millions of dollars: $943 in 2002, $1,037 in 2003, $1,129 in 
2004, $1,230 in 2005, $1,326 in 2006, $1,424 in 2007, $1,524 in 
2008, $1,630 in 2009, $1,736 in 2010, $1,857 in 2011. The level 
of the increases in outlays in the function are as follows, in 
millions of dollars: $943 in 2002, $1,037 in 2003, $1,129 in 
2004, $1,230 in 2005, $1,326 in 2006, $1,424 in 2007, $1,524 in 
2008, $1,630 in 2009, $1,736 in 2010, $1,857 in 2011. The level 
of the increases in budget authority in function 600 are as 
follows, in millions of dollars: $2,879 in 2002, $3,090 in 
2003, $3,319 in 2004, $3,559 in 2005, $3,783 in 2006, $4,021 in 
2007, $4,275 in 2008, $4,524 in 2009, $4,789 in 2010, and 
$5,069 in 2011. The level of the increases in outlays in the 
function are as follows, in millions of dollars: $2,876 in 
2002, $3,090 in 2003, $3,319 in 2004, $3,559 in 2005, $3,783 in 
2006, $4,021 in 2007, $4,275 in 2008, $4,524 in 2009, $4,789 in 
2010, and $5,069 in 2011. The level of the increases in budget 
authority in function 700 are as follows, in millions of 
dollars: zero in 2002, $870 in 2003, $986 in 2004, $1,073 in 
2005, $1,174 in 2006, $1,276 in 2007, $1,477 in 2008, $1,679 in 
2009, $2,381 in 2010, $2,082 in 2011. The level of the 
increases in outlays in the function are as follows, in 
millions of dollars: zero in 2002, $1,371 in 2003, $960 in 
2004, $1,098 in 2005, $1,074 in 2006, $1,276 in 2007, $1,477 in 
2008, $1,679 in 2009, $2,281 in 2010, $1,982 in 2011. The 
amendment increases the revenue level relative to the 
Chairman's Mark by an amount equal to the foregoing outlay 
changes. The increase in the spending in these functions is for 
the purpose of recognizing the needs detailed by the Committee 
on Veterans' Affairs in its letter dated March 12, and fully 
funds the request. The amendment provides funds allowing full 
concurrent receipt of military retirement benefits and veterans 
disability compensation.
    The amendment offered by Mr. Clement, as amended by the 
second degree amendment offered by Mr. Thornberry was agreed to 
by a voice vote.
    12a. Mr. Thornberry offered a amendment to strike the 
language of the amendment offered by Mr. Clement and replace it 
with a sense of Congress that requires the Secretary of Defense 
to provide the Congress with a report on concurrent retirement 
and disability benefits.
    The amendment offered by Mr. Thornberry was agreed to by 
voice vote.
    13. Ms. McCarthy offered an amendment to increase spending 
levels of function 750; and increase the revenue level set 
forth in the Chairman's Mark. The level of the increases in 
budget authority in the function are as follows, in millions of 
dollars: 1055 in 2002, 1076 in 2003, 1098 in 2004, 1119 in 
2005, 1141 in 2006, 1163 in 2007, 1185 in 2008, 1209 in 2009, 
1232 in 2010, 1257 in 2011; The level of the increases in 
outlays in the function are as follows, in millions of 
dollars:1106 in 2002, 999 in 2003, 1258 in 2004, 1280 in 2005, 
1151 in 2006, 1123 in 2007, 1145 in 2008, 1167 in 2009, 1190 in 
2010, 1213 in 2011. The amendment decreases the amount of the 
contingency fund reflected in the Chairman's Mark by an amount 
equal to the amount in outlays in the foregoing increases. The 
increase in spending in this function is for the purpose of 
reflecting funding for the Community Oriented Policing Services 
program.
    The amendment offered by Ms. McCarthy was not agreed to by 
a roll call vote of 19 ayes and 22 noes.


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,              X      .........  ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. SUNUNU          ..........       X      ............  Mr. McDERMOTT            X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HOEKSTRA        ..........       X      ............  Mr. THOMPSON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BASS            ..........       X      ............  Mr. BENTSEN              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GUTKNECHT       ..........       X      ............  Mr. DAVIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HILLEARY        ..........       X      ............  Mrs. CLAYTON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. THORNBERRY      ..........       X      ............  Mr. PRICE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYUN            ..........       X      ............  Mr. KLECZKA              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. COLLINS         ..........       X      ............  Mr. CLEMENT              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. FLETCHER        ..........       X      ............  Mr. MORAN                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. MILLER          ..........       X      ............  Ms. HOOLEY               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TOOMEY          ..........  ..........  ............  Ms. BALDWIN              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WATKINS         ..........  ..........  ............  Mrs. McCARTHY            X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HASTINGS        ..........       X      ............  Mr. MOORE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. DOOLITTLE       ..........       X      ............  Mr. CAPUANO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PORTMAN         ..........       X      ............  Mr. HONDA                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. LA HOOD         ..........       X      ............  Mr. HOEFFEL              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Ms. GRANGER         ..........       X      ............  Mr. HOLT                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SCHROCK         ..........       X      ............  Mr. MATHESON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CULBERSON       ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. BROWN           ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. KIRK            ..........       X
----------------------------------------------------------------------------------------------------------------

    14. Ms. Hooley offered an amendment to increase spending 
levels of function 500; and increase the revenue level set 
forth in the Chairman's Mark. The level of the increases in 
budget authority in the function are as follows, in millions of 
dollars: 2500 in 2002, 5000 in 2003, 7500 in 2004, 10000 in 
2005, 12500 in 2006, 14760 in 2007, 15360 in 2008, 16060 in 
2009, 16760 in 2010, 17460 in 2011. The level of the increases 
in outlays in the function are as follows, in millions of 
dollars: 50 in 2002, 1675 in 2003, 4050 in 2004, 6550 in 2005, 
9050 in 2006, 11525 in 2007, 13856 in 2008, 15051 in 2009, 
15799 in 2010, 16494 in 2011. The amendment decreases the 
amount of the contingency fund reflected in the Chairman's Mark 
by an amount equal to the amount in outlays in the foregoing 
increases. The increases in spending for this function are for 
the purpose of increasing funding for the Individuals with 
Disabilities Education Act program.
    The amendment offered by Ms. Hooley was not agreed to by a 
roll call vote of 19 ayes and 22 noes.


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,              X      .........  ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. SUNUNU          ..........       X      ............  Mr. McDERMOTT            X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HOEKSTRA        ..........       X      ............  Mr. THOMPSON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BASS            ..........       X      ............  Mr. BENTSEN              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GUTKNECHT       ..........       X      ............  Mr. DAVIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HILLEARY        ..........       X      ............  Mrs. CLAYTON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. THORNBERRY      ..........       X      ............  Mr. PRICE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYUN            ..........  ..........  ............  Mr. KLECZKA              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. COLLINS         ..........       X      ............  Mr. CLEMENT              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. FLETCHER        ..........       X      ............  Mr. MORAN                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. MILLER          ..........       X      ............  Ms. HOOLEY               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TOOMEY          ..........  ..........  ............  Ms. BALDWIN              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WATKINS         ..........       X      ............  Mrs. McCARTHY            X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HASTINGS        ..........       X      ............  Mr. MOORE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. DOOLITTLE       ..........       X      ............  Mr. CAPUANO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PORTMAN         ..........       X      ............  Mr. HONDA                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. LA HOOD         ..........       X      ............  Mr. HOEFFEL              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Ms. GRANGER         ..........       X      ............  Mr. HOLT                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SCHROCK         ..........       X      ............  Mr. MATHESON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CULBERSON       ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. BROWN           ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. KIRK            ..........       X
----------------------------------------------------------------------------------------------------------------

    15. Mr. Capuano offered an amendment to change spending 
levels of functions 370 and 600; and increase the revenue level 
set forth in the Chairman's Mark. The level of the increases in 
budget authority in function 600 are as follows, in millions of 
dollars: $2,411 in 2002, $1,374 in 2003, $1,581 in 2004, $1,736 
in 2005, $1,863 in 2006, $2,099 in 2007, $2,177 in 2008, $2,263 
in 2009, $2,408 in 2010, $2,555 in 2011. The level of the 
increases in outlays in the function are as follows, in 
millions of dollars: $366 in 2002, $920 in 2003, $1,585 in 
2004, $1,717 in 2005, $1,903 in 2006, $1,989 in 2007, $2,069 in 
2008, $2,177 in 2009, $2,279 in 2010, $2,397 in 2011. The 
amendment would also decrease the budget authority in function 
370 by the following amounts, in millions of dollars: -$133 in 
2002, -$181 in 2003, -$185 in 2004, -$186 in 2005, -$186 in 
2006, -$186 in 2007, -$186 in 2008, -$186 in 2009, -$186 in 
2010, -$186 in 2011. The amendment would also decrease the 
outlays in function 370 by the following amounts, in millions 
of dollars: -$133 in 2002, -$181 in 2003, -$185 in 2004, -$186 
in 2005, -$186 in 2006, -$186 in 2007, -$186 in 2008, -$186 in 
2009, -$186 in 2010, -$186 in 2011. The amendment increases the 
revenue level relative to the Chairman's Mark by an amount 
equal to the foregoing outlay changes. The changes in function 
600 reflect higher spending on public housing programs. The 
changes in function 370 reflect increasing the loan limit under 
which the Federal Housing Authority may insure mortgages for 
home buyers.
    The amendment offered by Mr. Capuano was not agreed to by a 
voice vote.
    16. Mr. Moran offered an amendment which would have added a 
sense of the House of Representatives that legislation which 
decreases the surplus should include a mechanism by which the 
phase in of such actions may be suspended prospectively and 
apply to both spending and tax cuts, and require that the 
budget be balanced and that specified debt reduction targets 
met.
    The amendment offered by Mr. Moran was not agreed to by a 
roll call vote of 13 ayes and 25 noes.


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,         ..........      X      ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. SUNUNU          ..........       X      ............  Mr. McDERMOTT       ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. HOEKSTRA        ..........       X      ............  Mr. THOMPSON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BASS            ..........       X      ............  Mr. BENTSEN         ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. GUTKNECHT       ..........       X      ............  Mr. DAVIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HILLEARY        ..........       X      ............  Mrs. CLAYTON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. THORNBERRY      ..........       X      ............  Mr. PRICE           ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYUN            ..........       X      ............  Mr. KLECZKA              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. COLLINS         ..........       X      ............  Mr. CLEMENT              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. FLETCHER        ..........       X      ............  Mr. MORAN                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. MILLER          ..........  ..........  ............  Ms. HOOLEY               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TOOMEY          ..........  ..........  ............  Ms. BALDWIN         ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WATKINS         ..........       X      ............  Mrs. McCARTHY            X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HASTINGS        ..........       X      ............  Mr. MOORE           ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. DOOLITTLE       ..........       X      ............  Mr. CAPUANO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PORTMAN         ..........       X      ............  Mr. HONDA                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. LA HOOD         ..........       X      ............  Mr. HOEFFEL              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Ms. GRANGER         ..........       X      ............  Mr. HOLT                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SCHROCK         ..........       X      ............  Mr. MATHESON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CULBERSON
----------------------------------------------------------------------------------------------------------------
Mr. BROWN           ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. KIRK            ..........       X
----------------------------------------------------------------------------------------------------------------

    17. Mr. McDermott offered an amendment to decrease the 
level of revenue set forth in the Chairman's Mark by $1 billion 
in fiscal year 2002 and by $292 billion for the fiscal years 
2002 through 2011. The additional revenue loss would reflect 
the additional tax reduction required to prevent cuts in income 
tax rates from increasing relative to current law the number of 
individuals affected by the individual alternative minimum tax. 
The amendment further required that the reconciliation 
directives set forth in section 4 of the resolution include a 
directive to the Ways and Means Committee that any tax bill 
reducing taxes not increase the number of individuals affected 
by the alternative minimum tax.
    The amendment offered by Mr. McDermott was not agreed to by 
a roll call vote of 18 ayes and 23 noes.


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,              X      .........  ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. SUNUNU          ..........       X      ............  Mr. McDERMOTT            X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HOEKSTRA        ..........       X      ............  Mr. THOMPSON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BASS            ..........       X      ............  Mr. BENTSEN              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GUTKNECHT       ..........       X      ............  Mr. DAVIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HILLEARY        ..........       X      ............  Mrs. CLAYTON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. THORNBERRY      ..........       X      ............  Mr. PRICE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYUN            ..........       X      ............  Mr. KLECZKA              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. COLLINS         ..........       X      ............  Mr. CLEMENT              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. FLETCHER        ..........       X      ............  Mr. MORAN           ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. MILLER          ..........       X      ............  Ms. HOOLEY               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TOOMEY          ..........  ..........  ............  Ms. BALDWIN              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WATKINS         ..........       X      ............  Mrs. McCARTHY            X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HASTINGS        ..........       X      ............  Mr. MOORE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. DOOLITTLE       ..........       X      ............  Mr. CAPUANO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PORTMAN         ..........       X      ............  Mr. HONDA                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. LA HOOD         ..........       X      ............  Mr. HOEFFEL              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Ms. GRANGER         ..........       X      ............  Mr. HOLT                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SCHROCK         ..........       X      ............  Mr. MATHESON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CULBERSON       ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. BROWN           ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. KIRK            ..........       X
----------------------------------------------------------------------------------------------------------------

    18. Mr. McDermott offered an amendment to increase spending 
levels of function 150; and increase the revenue level set 
forth in the Chairman's Mark. The level of the increases in 
budget authority in the function are as follows, in millions of 
dollars: 550 in 2002. The level of the increases in outlays in 
the function are as follows, in millions of dollars: $166 in 
2002, $218 in 2003, $166 in 2004. The amendment decreases the 
amount of the contingency fund reflected in the Chairman's Mark 
by an amount equal to the amount in outlays in the foregoing 
increases. The purpose of the foregoing spending increases in 
the function are to reflect greater foreign aid in cases of 
emergencies, in circumstances such as have occurred in India 
and El Salvador.
    The amendment offered by Mr. McDermott was not agreed to on 
a roll call vote of 19 ayes and 22 noes.


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,              X      .........  ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. SUNUNU          ..........  ..........  ............  Mr. McDERMOTT            X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HOEKSTRA        ..........       X      ............  Mr. THOMPSON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BASS            ..........       X      ............  Mr. BENTSEN              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GUTKNECHT       ..........       X      ............  Mr. DAVIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HILLEARY        ..........       X      ............  Mrs. CLAYTON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. THORNBERRY      ..........       X      ............  Mr. PRICE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYUN            ..........       X      ............  Mr. KLECZKA              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. COLLINS         ..........       X      ............  Mr. CLEMENT              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. FLETCHER        ..........       X      ............  Mr. MORAN                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. MILLER          ..........       X      ............  Ms. HOOLEY               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TOOMEY          ..........  ..........  ............  Ms. BALDWIN              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WATKINS         ..........       X      ............  Mrs. McCARTHY            X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HASTINGS        ..........       X      ............  Mr. MOORE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. DOOLITTLE       ..........       X      ............  Mr. CAPUANO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PORTMAN         ..........       X      ............  Mr. HONDA                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. LA HOOD         ..........       X      ............  Mr. HOEFFEL              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Ms. GRANGER         ..........       X      ............  Mr. HOLT                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SCHROCK         ..........       X      ............  Mr. MATHESON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CULBERSON       ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. BROWN           ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. KIRK            ..........       X
----------------------------------------------------------------------------------------------------------------

    19. Mr. Thompson offered an amendment to include in the 
resolution a sense of the Congress that the Federal tax code 
should support a significant expansion of Individual 
Development Accounts so that millions of low-income, working 
families can save, build assets and move their lives forward.
    The amendment offered by Mr. Thompson was agreed to by a 
voice vote.
    20. Mrs. Clayton offered an amendment to increase spending 
levels of function 550; and increase the revenue level set 
forth in the Chairman's Mark. The level of the increases in 
budget authority in the function are as follows, in billions of 
dollars: $2.1 in 2002, $2.6 in 2003, $3.1 in 2004, $3.4 in 
2005, $4.5 in 2006, $5.5 in 2007, $6.4 in 2008, $7.6 in 2009, 
$8.9 in 2010, $10.5 in 2011; the level of the increases in 
outlays in the function are as follows, in billions of dollars: 
$2.1 in 2002, $2.6 in 2003, $3.1 in 2004, $3.4 in 2005, $4.5 in 
2006, $5.5 in 2007, $6.4 in 2008, $7.6 in 2009, $8.9 in 2010, 
$10.5 in 2011. The purpose of the foregoing spending increases 
in the function are to reflect a new capped block grant to 
boost state funding due to Federal census errors. The new fund, 
called the Census Undercount Fund, directly correlates with 
Medicaid funding in each state.
    The amendment offered by Ms. Clayton was not agreed to by a 
voice vote.
    21. Mr. Davis offered an amendment to increase spending 
levels of function 500; and increase the revenue level set 
forth in the Chairman's Mark. The level of the increases in 
budget authority in the function are as follows, in billions of 
dollars: $7 in 2002, $7 in 2003, $7 in 2004, $7 in 2005, $7 in 
2006, $7 in 2007, $7 in 2008, $7 in 2009, $7 in 2010, $7 in 
2011; the level of the increases in budget authority in the 
function are as follows, in billions of dollars: $7 in 2002, $7 
in 2003, $7 in 2004, $7 in 2005, 7 in 2006, 7 in 2007, 7 in 
2008, 7 in 2009, 7 in 2010, 7 in 2011. The purpose of the 
foregoing spending increases in the function are to reflect the 
passage of legislation that allows local educational agencies 
to use appropriated funds to carry out activities under a 
reauthorized Elementary and Secondary Education Act.
    The amendment offered by Mr. Davis was not agreed to by a 
voice vote.
    22. Mr. Moran offered an amendment express the sense of the 
House of Representatives that rates of compensation for 
civilian employees of the United States should be adjusted at 
the same time, and in the same proportion, as are rates of 
compensation for members of the uniformed services.
    The amendment offered by Mr. Moran was agreed to by a voice 
vote.
    23. Mr. Clement offered an amendment to express the sense 
of the Congress that the reconciliation directive for tax cuts 
called for in the budget resolution shall include language that 
makes State sales tax deductible against Federal income taxes.
    The amendment offered by Mr. Clement, as amended by the 
amendment offered by Mr. Nussle, was agreed to by a voice vote.
    23a. Mr. Nussle offered an amendment to the amendment 
offered by Mr. Clement that expressed the Sense of the Congress 
that the Ways and Means should include language that would make 
the state sales tax deductible against Federal income taxes.
    The amendment offered by Mr. Nussle to the amendment 
offered by Mr. Clement was agreed to by a voice vote.
    24. Ms. Hooley asked for language to be included in the 
report that indicated that the budget resolution assumes that 
the Pacific Northwest salmon recovery program, administered by 
federal agencies on the Federal Columbia River Power System and 
Pacific Coast, should be made a high-priority item for funding.
    Ms. Hooley's request was agreed to by the Committee.
    25 Mr. Moran offered an amendment to increase spending 
levels of function 050; and increase the revenue level set 
forth in the Chairman's Mark. The level of the increases in 
budget authority in the function are as follows, in millions of 
dollars: $1,400 in 2001. The level of the increase in the 
outlays in the function are as follows: $1,127 in 2001, $202 in 
2002, $39 in 2003, $21 in 2004, and $11 in 2005. The purpose of 
the foregoing spending increases in the function are to reflect 
the adoption of an urgent supplemental appropriation for fiscal 
year 2001 for the Department of Defense for the Defense Health 
Program.
    The amendment offered by Mr. Moran was not agreed to by a 
roll call vote of 19 ayes and 23 noes.


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,              X      .........  ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. SUNUNU          ..........       X      ............  Mr. McDERMOTT            X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HOEKSTRA        ..........       X      ............  Mr. THOMPSON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. BASS            ..........       X      ............  Mr. BENTSEN              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. GUTKNECHT       ..........       X      ............  Mr. DAVIS                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HILLEARY        ..........       X      ............  Mrs. CLAYTON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. THORNBERRY      ..........       X      ............  Mr. PRICE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYUN            ..........       X      ............  Mr. KLECZKA              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. COLLINS         ..........       X      ............  Mr. CLEMENT              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. FLETCHER        ..........       X      ............  Mr. MORAN                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. MILLER          ..........       X      ............  Ms. HOOLEY               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TOOMEY          ..........  ..........  ............  Ms. BALDWIN              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WATKINS         ..........       X      ............  Mrs. McCARTHY            X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HASTINGS        ..........       X      ............  Mr. MOORE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. DOOLITTLE       ..........       X      ............  Mr. CAPUANO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PORTMAN         ..........       X      ............  Mr. HONDA                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. LA HOOD         ..........       X      ............  Mr. HOEFFEL              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Ms. GRANGER         ..........       X      ............  Mr. HOLT                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SCHROCK         ..........       X      ............  Mr. MATHESON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CULBERSON       ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. BROWN           ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. KIRK            ..........       X
----------------------------------------------------------------------------------------------------------------

    26. Mr. Thompson offered an amendment to express the sense 
of Congress that the Government should support the core 
operations of the Federal Emergency Management Agency by 
providing needed fire grant programs to assist our firefighters 
and rescue personnel as they respond to more than 17,000,000 
emergency calls annually. To accomplish this task, Congress 
supports preservation of the Assistance to Firefighters grant 
program. Continued support of the Assistance to Firefighters 
grant program will enable local firefighters to adequately 
protect the lives of countless Americans put at risk by 
insufficient fire protection.
    The amendment offered by Mr. Thompson was agreed to by 
voice vote.
    27. Mr. Capuano offered an amendment to increase spending 
levels of function 500; and increase the revenue level set 
forth in the Chairman's Mark. The level of the increases in 
budget authority in the function are as follows, in millions of 
dollars: $300 in 2002, $306 in 2003, $312 in 2004, $318 in 
2005, $324 in 2006, $331 in 2007, $337 in 2008, $344 in 2009, 
$350 in 2010, $357 in 2011; the level of the increases in 
outlays in the function are as follows, in millions of dollars: 
$37 in 2002, $229 in 2003, $280 in 2004, $294 in 2005, $308 in 
2006, $322 in 2007, $329 in 2008, $335 in 2009, $342 in 2010, 
$348 in 2011. The purpose of the foregoing spending increases 
in the function are to reflect increased funding for training 
and employment services.
    The amendment offered by Mr. Capuano was not agreed to by a 
voice vote.
    28. Mr. Capuano offered an amendment express the sense of 
Congress that: Function 550 of the President's budget ought to 
include an appropriate level of funding for graduate medical 
education conducted at independent children's teaching 
hospitals in order to ensure access to care by millions of 
children nationwide. An emphasis must be placed on the role 
played by community health centers in underserved rural and 
urban communities. An increase in funding for community health 
centers should not come at the expense of the Community Access 
Program. Both programs should be funded adequately, with the 
intention of doubling funding for increased capacity for 
community health centers in addition to keeping the Community 
Access Program operational. The medicare program must emphasize 
such preventive medical services as those provided by vision 
rehabilitation professionals in saving Government funds and 
preserving the independence of a growing number of seniors in 
the coming years. Funding under function 550 should also 
reflect the importance of the Ryan White CARE Act.
    The amendment offered by Mr. Capuano was agreed to by a 
voice vote.
    29. Mr.Capuano offered an amendment to increase spending 
levels of function 270 and 600; and increase the revenue level 
set forth in the Chairman's Mark. The level of the increases in 
budget authority in function 270 are as follows, in billions of 
dollars: $.7 in 2002, $.8 in 2003, $.6 in 2004, $.5 in 2005, 
$.5 in 2006, $.5 in 2007, $.2 in 2008, $.2 in 2009, $.2 in 
2010, $.2 in 2011; the level of the increases in outlays 
function 270 are as follows, in billions of dollars: $.3 in 
2002, $.6 in 2003, $.6 in 2004, $.6 in 2005, $.6 in 2006, $.6 
in 2007, $.2 in 2008, $.2 in 2009, $.2 in 2010, $.2 in 2011. 
The level of the increases in budget authority in function 600 
are as follows, in billions of dollars: $1.7 in 2002, $1.7 in 
2003, $1.7 in 2004, $1.8 in 2005, $1.8 in 2006, $1.8 in 2007, 
$1.9 in 2008, $1.9 in 2009, $1.9 in 2010, $2.0 in 2011; the 
level of the increases in outlays function 600 are as follows, 
in billions of dollars: $1.4 in 2002, $1.8 in 2003, $1.9 in 
2004, $1.9 in 2005, $1.9 in 2006, $2.0 in 2007, $2.0 in 2008, 
$2.1 in 2009, $2.1 in 2010, $2.1 in 2011. The purpose of the 
foregoing spending increases in the function are to reflect the 
doubling of funding for the Weatherization Assistance Program, 
a ten percent increase for solar and renewable energy, and a 
doubling of the funding for the Low-Income Home Energy 
Assistance Program.
    The amendment offered by Mr. Capuano was not agreed to by 
voice vote.
    30. Mr. Bentsen offered an amendment to increase spending 
levels of function 300; and increase the revenue level set 
forth in the Chairman's Mark. The level of the increases in 
budget authority in the function are as follows, in millions of 
dollars: $600 in 2002, $600 in 2003, $600 in 2004, $600 in 
2005, $600 in 2006, $600 in 2007, $600 in 2008, $600 in 2009, 
$600 in 2010, $600 in 2011; the level of the increases in 
outlays in the function are as follows, in millions of dollars: 
$448 in 2002, $589 in 2003, $600 in 2004, $600 in 2005, $600 in 
2006, $600 in 2007, $600 in 2008, $600 in 2009, $600 in 2010, 
$600 in 2011. This level of spending in the function is to 
reflect a freeze of the Army Corps of Engineers funding at the 
fiscal year 2001 level.
    The amendment offered by Mr. Bentsen was not agreed to by 
voice vote.
    31. Mr. Holt offered an amendment to increase spending 
levels of function 300; and increase the revenue level set 
forth in the Chairman's Mark. The level of the increases in 
budget authority in the function are as follows, in millions of 
dollars: $.535 in 2002, $.545 in 2003, $.556 in 2004, $.567 in 
2005, $.578 in 2006, $.589 in 2007, $.600 in 2008, $.612 in 
2009, $.623 in 2010, $.635 in 2011; the level of the increases 
in outlays in the function are as follows, in millions of 
dollars: $.027 in 2002, $.348 in 2003, $.375 in 2004, $.516 in 
2005, $.553 in 2006, $.574 in 2007, $.585 in 2008, $.597 in 
2009, $608 in 2010, $620 in 2011. This level of funding 
reflects the need to maintain the Eisenhower Professional 
Development Program.
    The amendment offered by Mr. Holt was not agreed to by a 
voice vote.
    32. Mr. Sununu made a motion that the Committee adopt the 
aggregates, function totals, and other relevant items as the 
Concurrent Resolution on the Budget for Fiscal year 2001.
    The motion offered by Mr. Sununu was agreed to by voice 
vote.
    Mr. Sununu made a motion that the Committee report the 
Concurrent Resolution with a favorable recommendation and that 
the Concurrent Resolution pass. The motion offered by Mr. 
Sununu was agreed to by a roll call vote of 23 ayes and 19 
noes.


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,              X      ..........  ............  Mr. SPRATT,         ..........      X      ...........
 Chairman                                                  Ranking
----------------------------------------------------------------------------------------------------------------
Mr. SUNUNU               X      ..........  ............  Mr. McDERMOTT       ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. HOEKSTRA             X      ..........  ............  Mr. THOMPSON        ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. BASS                 X      ..........  ............  Mr. BENTSEN         ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. GUTKNECHT            X      ..........  ............  Mr. DAVIS           ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. HILLEARY             X      ..........  ............  Mrs. CLAYTON        ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. THORNBERRY           X      ..........  ............  Mr. PRICE           ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. RYUN                 X      ..........  ............  Mr. KLECZKA         ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. COLLINS              X      ..........  ............  Mr. CLEMENT         ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. FLETCHER             X      ..........  ............  Mr. MORAN           ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. MILLER               X      ..........  ............  Ms. HOOLEY          ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. TOOMEY          ..........  ..........  ............  Ms. BALDWIN         ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. WATKINS              X      ..........  ............  Mrs. McCARTHY       ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. HASTINGS             X      ..........  ............  Mr. MOORE           ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. DOOLITTLE            X      ..........  ............  Mr. CAPUANO         ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. PORTMAN              X      ..........  ............  Mr. HONDA           ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. LA HOOD              X      ..........  ............  Mr. HOEFFEL         ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Ms. GRANGER              X      ..........  ............  Mr. HOLT            ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. SCHROCK              X      ..........  ............  Mr. MATHESON        ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. CULBERSON            X
----------------------------------------------------------------------------------------------------------------
Mr. BROWN                X
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW             X
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM               X
----------------------------------------------------------------------------------------------------------------
Mr. KIRK                 X
----------------------------------------------------------------------------------------------------------------

    Mr. Sununu asked for unanimous consent that the Chairman be 
authorized to make a motion to go to conference pursuant to 
clause 1 of House Rule XXII, the staff be authorized to make 
any necessary technical and conforming corrections in the 
resolution, and any committee amendments, and calculate any 
remaining elements required in the resolution, prior to filing 
the resolution, and the motion to reconsider be laid upon the 
table.
    There was no objection to the unanimous consent request.
                       ADDITIONAL REPORT LANGUAGE

                              ----------                              


                           SPECIAL EDUCATION

    The committee believes that all children deserve a quality 
education, including children with disabilities. That is the 
goal of the Individuals with Disabilities Education Act [IDEA], 
which provides that Federal, State and local governments are to 
share in the expense of educating children with disabilities. 
The committee is concerned, however, that the IDEA law may not 
be working as originally intended, and recommends that the 
committee of jurisdiction make necessary changes to the statute 
as soon as practicably possible.
    Special education has risen as a percentage of total 
enrollment every year since the passage of IDEA in 1975. 
Currently, more than 6 million public school age children 12 
percent of all students are in special education. According to 
the best available research, many need not be there.
    More than one-third of all children assigned to special 
education are categorized as having specific learning 
disabilities due primarily to reading difficulties. Early 
identification of reading problems and proper instruction based 
on valid scientific research could prevent as many as 1.5 
million students from developing a severe reading disability 
and therefore having to participate in IDEA. That is why this 
committee strongly endorses the President's Reading First 
initiative, and funds it at a level of $900 million in Fiscal 
year 2002 and $5 billion over five years.
    In recent years, Congress has made gradual progress toward 
the goal of increasing the Federal contribution to special 
education to 40 percent of the average per pupil expenditure 
the maximum Federal share authorized under law. The goal post 
is pushed back each year, however, as the cost of compliance 
with the IDEA statute grows unchecked. The Education and the 
Workforce Committee, therefore, should consider how the Federal 
Government can best meet its obligation to special education 
during the upcoming IDEA reauthorization process.
    The regulatory structure of IDEA should also be examined as 
part of the reauthorization. The committee suggests a full 
study of IDEA regulations be undertaken that includes: The 
identification of duplicative and conflicting regulations which 
make compliance unnecessarily difficult or costly for local 
school districts; an analysis of the total cost of IDEA 
regulations as well as the specific costs associated with the 
identified duplicative and conflicting regulations; 
recommendations on simplifiscal yearing the regulatory 
structure in a way that reduces compliance costs; and the 
identification of structural weaknesses of the program 
requiring legislative action.
    Concerted efforts should be made to address early reading 
difficulties, to avoid the over-identification of children as 
learning disabled, and to eliminate costly and unnecessary 
Federal regulations. This multi-pronged approach could 
alleviate the financial pressure on States and local school 
districts struggling to provide a first rate education to all 
children, including children with disabilities.

                    TROPICAL FOREST CONSERVATION ACT

    The President's fiscal year 2002 budget requests increased 
resources for the Tropical Forest Conservation Act (TFCA), 
bipartisan legislation enacted into law in 1998 to protect the 
world's tropical forests through ``debt for nature'' 
mechanisms. This creative market-oriented conservation program 
expands the previous Bush Administration's Enterprise for the 
America's Initiative (EAI) to protect threatened tropical 
forests on a sustained basis worldwide. This resolution assumes 
the program will receive sufficient resources to continue 
progress on this important work. In addition, the committee 
strongly supports the reauthorization of TFCA during fiscal 
year 2002.

                           FOREIGN ASSISTANCE

    The committee has included full funding for the President's 
international affairs request. The committee is aware of the 
urgent funding needs to support the Middle East Peace Process 
and the war against drugs in the Andean countries. The United 
States is the world's leading democracy and super power. 
Programs funded through this account, provide desperately 
needed assistance and hope to countless of people across the 
globe. Through the work of the Department of State, Department 
of the Treasury, and U.S. Agency for International Development 
in cooperation with non-governmental organizations (NGOs), 
critical work is being preformed in areas including health 
care, emergency relief, democracy building, and international 
security assistance. Monies spent through these foreign 
assistance programs assist stability and preventing conflicts 
and disasters before they become a global financial burden, a 
threat to our national security, and, most importantly a threat 
to the lives of innocent men, women and children.

                           RURAL DEVELOPMENT

    The budget assumes the President's proposal to terminate 
the Rural Telephone Bank based on the accomplishment of the 
banks mission. The budget further assumes that funding which 
would otherwise have been directed to new lending by the Rural 
Telephone Bank will be directed instead to a successor effort 
to expand the infrastructure for technology in rural 
communities. This effort may include making grants available to 
rural communities seeking to enhance economic growth and job 
creation through the development of new communications or other 
technology capacity.

                            BUDGET ESTIMATES

    The committee believes that current budget forecasting 
models are inaccurate. Accurate forecasts are essential 
decision-making tools for Congress. Budget projections can be 
improved by using real world models that anticipate economic 
responses to changes in government policy. The Congressional 
Budget Office should consider the effects of policy on economic 
behavior in future forecasts.

                               IMPACT AID

    The committee strongly supports funding for the education 
of dependents of military personnel. Payments to school 
districts accepting these children, made under the Impact Aid 
program, are necessary to ensure that local school districts 
receive full compensation for their students living on federal 
property. The Impact Aid program is intended to fill a gap 
created by the Federal government; Congress must fully fund 
this program to ensure that all children have access to the 
best possible education.

                                DEFENSE

    The committee recognizes that the 050 function should be 
strongly supported because of the need to revitalize the 
Nation's defenses. The committees of jurisdiction are 
recommended to give particular attention to key areas including 
the need for a ballistic missile defense for the United States 
and its allies, electronic warfare, and naval training.

                            VOTING MACHINES

    The committee recognizes that there is an important role 
for the Congress to play in ensuring that elections are 
conducted fairly and in ways that inspire confidence. The 
committee strongly encourages the Congress to make every effort 
during the fiscal year 2002 appropriations cycle to provide 
financial assistance to States and localities to modernize 
their voting equipment before the 2002 general election, in 
order to ensure accurate vote counts and to minimize voter 
error, with particular attention to replacement of the most 
error-prone equipment.

                            SALMON RECOVERY

    This budget resolution assumes that the Pacific Northwest 
salmon recovery program, administered by federal agencies on 
the Federal Columbia River Power System and Pacific Coast, 
should be made a high-priority item for funding.

             MEDICARE MODERNIZATION AND PRESCRIPTION DRUGS

    The budget resolution recognizes there are multiple ways of 
funding the President's comprehensive Medicare modernization 
and prescription drug proposal.

                          MEDICARE HOME HEALTH

    The committee recognizes the importance of home health care 
for seniors and disabled citizens. It acknowledges that the 
Medicare, Medicaid, and SCHIP Benefits Improvement and 
Protection Act of 2000 reformed the home heath payment system 
to restore home health funding and delay the automatic 15 
percent payment reduction for one year. However, The committee 
believes that Congress and the Administration should continue 
to work together to maintain quality care for patients whose 
care is more extensive and expensive than the typical Medicare 
patient, including the sickest and frailest Medicare 
beneficiaries. Consequently, Congress and the Administration 
should work together to avoid the 15 percent reduction in the 
prospective payment system.

                        MEDICARE PAYMENT EQUITY

    The committee believes that the Medicare+Choice regional 
disparity among reimbursement rates is unfair, and that full 
funding of the Medicare+Choice program is a priority as 
Congress deals with any Medicare reform legislation. Further, 
there is also a need to assess the fairness of urban/rural 
payment disparities in the fee-for-service portion of Medicare.

           DEFENSE ENVIRONMENTAL RESTORATION WASTE MANAGEMENT

    The committee makes no specific assumption regarding atomic 
energy defense activities of the Department of Energy, but 
recognizes that as much as $6.65 billion for the Department's 
Environmental Management program may be required to perform 
various nuclear restoration and clean-up activities, including 
critical initiatives such as those at Hanford, for 2002 and 
beyond.

                        MEDICARE PATIENT ACCESS

    Recognizing the importance of patient access to care, The 
committee urges the House to undertake balanced reform of the 
Medicare program's reimbursement for drugs and practice 
expenses, following analysis by the General Accounting Office 
and the Secretary of Health and Human Services.

                       PHASE IN OF TAX PROVISIONS

    The committee recognizes the inherent uncertainty of 
budgetary projections. The committee hopes that The Committee 
on Ways and Means will make every effort to fully phase in 
within a ten-year period the tax relief reconciled to it in 
section 4 of the resolution.

                   THE NATIONAL INSTITUTES OF HEALTH

    The National Institutes of Health [NIH] is the world's 
leading biomedical research institution. Due to the ground 
breaking research of the NIH, lives are saved and health care 
costs reduced while jobs are created. This research has 
produced major advances in the treatment of countless diseases 
including cancer, heart disease and diabetes, which effect 
millions of American families. The budget resolution assumes 
increased funding for the NIH and believes that it is a high 
priority program within the overall discretionary spending 
allocation.

                      AMBULANCE SERVICE PROVIDERS

    The House Committee on the Budget believes that ambulance 
service providers are an important component of the Medicare 
Program. It further believes that within the context of 
comprehensive Medicare reform, Congress should take whatever 
steps are necessary to ensure that ambulance service providers 
for Medicare beneficiaries are reimbursed at an appropriate 
level to ensure beneficiary access to these services.

                       TAX BENEFITS FOR EDUCATION

    The committee recognizes that changes in the tax code can 
contribute to strengthening our educational system. These 
include increasing the annual contribution ceiling for 
Education IRAs; providing a tax deduction for teachers to 
deduct up to $400 to help defray the costs associated with out-
of-pocket classroom expenses, such as books and school 
supplies; exempting from Federal taxation all qualified pre-
paid tuition savings plans; allowing State private-activity 
bonds to be used for school construction and repair; and 
expanding loan forgiveness for math and science teachers in 
high-need schools.

                             PROJECT IMPACT

    The committee recognizes the importance of efforts to 
prevent property damage and loss of life from natural 
disasters. Project Impact, a program administered by the 
Federal Emergency Management Administration [FEMA], has proven 
valuable at helping communities to prepare for potential 
disasters, thus savings millions of dollars in recovery costs 
and limiting the loss of life when disasters have struck. The 
committee urges the Committee on Appropriations to consider the 
successes Project Impact has had in mitigating the effects of 
natural disasters when it makes funding decisions about FEMA 
and related programs during the appropriations process.

                   PHYSICAL SCIENCES AND ENGINEERING

    The committee recognizes the importance of research in the 
physical sciences and engineering and will revisit these 
funding levels in the future to ensure that there are adequate 
resources in the science function.

                            SOCIAL SECURITY

    Social security is part of nearly every American's life and 
an important source of income for most of today's older 
Americans. It provides more than half of the total income of 
two-thirds of today's retirees and provides nearly all of the 
income of one-third of elderly people.
    For the first time in the history of these programs, a 
significant number of people from five different generations of 
Americans have a claim on program benefits. The current ratio 
of workers to Social Security recipients stands at 3.4 workers 
to each recipient. As the Baby Boom Generation begins to 
retire, this ratio will continue to decrease, eventually 
reaching a level of two workers for each recipient by 
approximately 2030. Under current estimates, outlays will begin 
exceeding receipts into the Social Security trust funds as 
early as 2013.
    Congress has an obligation to act before the cash flow into 
the system turns negative to put the Social Security system on 
a more economically sound basis to allay the fears of those who 
are counting on benefits. Congress should formulate a 
bipartisan and cross-generational consensus on reforms that 
will provide opportunities for a fair return on contributions 
while still preserving the traditional safety net of the 
present system for existing and future beneficiaries.

                  STAFFING SHORTAGES IN LONG TERM CARE

    The committee recognizes the need to address the shortage 
of caregivers in long term care settings nationwide. Nearly 
every long term care setting has vacancies they are unable to 
fill, and each vacancy is a threat to patient care. The 
shortage includes registered and licensed practical nurses, 
therapists, administrators, and other providers. To ensure 
adequacy of staffing and availability of long term care 
services for our Nation's elderly and disabled populations, the 
Budget Committee urges The committees of jurisdiction to 
address this shortage in the appropriate manner.

                        ARMY CORPS OF ENGINEERS

    The committee believes that the Congress should consider 
during the current budget cycle the needs of Army Corps of 
Engineers-managed recreation areas, which were damaged by the 
ice storm that struck eastern and southeastern Oklahoma, 
western Arkansas, northeastern Texas, and northern Louisiana in 
December of 2000.

       OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE

                              ----------                              


     Committee on the Budget Oversight Findings and recommendations

    Clause 3(c)(1) of rule XIII requires each committee report 
to contain oversight findings and recommendations pursuant to 
clause 2(b)(1) of rule X. The Budget Committee has no findings 
to report at the present time.

   New Budget Authority , Entitlement Authority, and Tax Expenditures

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

                General Performance Goals and Objectives

    Clause 3(c)(4) of rule XIII requires each committee report 
to contain a statement of general performance goals and 
objectives, including outcome-related goals and objectives, for 
which the measure authorizes funding. The Budget Committee has 
no such goals and objectives to report at this time.

                       Views of Committee Members

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

    MINORITY VIEWS OF JOHN M. SPRATT, JR., JIM McDERMOTT, BENNIE G. 
   THOMPSON, KEN BENTSEN, JIM DAVIS, EVA M. CLAYTON, DAVID E. PRICE, 
 GERALD D. KLECZKA, BOB CLEMENT, JAMES P. MORAN, DARLENE HOOLEY, TAMMY 
BALDWIN, CAROLYN McCARTHY, DENNIS MOORE, MICHAEL E. CAPUANO, MICHAEL M. 
         HONDA, JOSEPH M. HOEFFEL, RUSH HOLT, AND JIM MATHESON

    The Budget Resolution reported in this document closely 
follows President Bush's program. Thus, it comes as no surprise 
that the Resolution shares all of the faults of the preliminary 
budget document sent from the White House to the Congress at 
the end of February.
    In sum, the Budget Resolution is imprudent and 
fundamentally flawed. At best, it wastes an unique opportunity 
to use our extraordinary prosperity to address enduring 
problems, and at the same time to prepare for future 
challenges. At worst, it threatens the very prosperity that is 
at the heart of that economic opportunity.
    Nine years ago, the height of the federal government's 
budgetary ambitions was to survive the fiscal year. Since then, 
at great cost to the American taxpayers, the federal government 
has raised its sights to maintaining budget surpluses above and 
beyond its deposits in the Social Security and Medicare trust 
funds--which is the minimum it should do to build a financial 
foundation for the retirement of the baby-boom generation. The 
Resolution reduces those surpluses to the bone, leaving 
virtually no margin for error in policy choice, economic 
assumptions or budget estimation. In so doing, it cuts the flow 
of national saving that helped to turn the economy around. If 
the economy should weaken, for this or any other reason, the 
budget will again drain the Social Security and Medicare 
surpluses that should instead be reserved for the demographic 
challenge that begins just seven years from now.
    Given the extraordinary uncertainty of today's budget and 
economy, the Resolution is especially unwise. But it would be a 
poor choice even if we knew the next ten years with certainty. 
Its keystone is an over-large and uneven tax cut, which 
predetermines the budget's course before priority investments 
such as defense, health and human services, and agriculture are 
even planned and considered. Essential government services, 
such as up-to-date prescription drug coverage under Medicare 
and support for education, have already been forced to give 
way. If the budget outlook weakens, given how difficult it 
would be to reverse course on taxes, the basic workings of 
government will surely be hindered even more.
    Democrats support a significant but affordable tax cut, 
leaving a cushion against any adverse economic developments, 
plus further resources for federal initiatives needed to 
safeguard our prosperity. This course leaves full flexibility 
for adjustment for bad news--or good news--without an enduring 
cost. This more patient and prudent course continues the spirit 
of the economic strategy of the 1990s that brought us such 
opportunities.

               BACKGROUND--THE BENEFITS OF DEBT REDUCTION

    To grow, a nation's economy needs investment. To invest, a 
nation's economy needs saving--the sum of the saving by 
households, businesses, and governments. The more familiar 
household saving rate is one component of national saving, and 
so is important; but it is the nation's total saving that 
determines the full quantity of resources available to build 
the new factories and machines that will be the productive base 
of the economy in the future, and that will add to worker 
productivity, incomes, and prosperity.
    In the 1980s, federal budget deficits soared--depleting the 
nation's pool of saving. This pushed interest rates higher than 
they otherwise would have been, and raised the cost of capital 
to businesses and consumers alike. This held business 
investment as a share of our GDP flat for the entire decade, 
inhibiting economic growth and productivity.
    Beginning with the 1990 deficit-reduction package signed by 
President Bush's father, and particularly the 1993 Democratic 
budget, that situation turned around. The improvement in the 
federal budget added to the nation's pool of saving--and so, 
even though the household saving rate declined, national saving 
increased dramatically. (Net national saving more than doubled 
as a percentage of net national product between 1992 and 1998). 
As a result, long-term interest rates declined markedly; the 
yield on the ten-year Treasury note, which had averaged about 
eight percent in the 1980s, fell to an average of about six 
percent in the 1990s. With this reduction in the cost of 
capital, private business investment soared. (Real business 
fixed investment, which had averaged less than 10 percent of 
real GDP in the 1980s, rose to 15 percent in 1998.) And as that 
increased business investment came on line, productivity growth 
accelerated, bringing with it higher wages and profits. (Growth 
in labor productivity in the non-farm business sector increased 
from an average of 1.5 percent per year from 1974 to 1995, to 
2.9 percent since then.) With that greater productivity growth 
came the budget improvement that we have enjoyed, including the 
longest string of consecutive budget improvement, and the 
largest budget surpluses, in the history of the United States.
    The improvement in the federal budget helped to clear the 
way for the private sector to raise our prosperity in the 
1990s. And budget improvement has also helped to maintain the 
stability of our economy. Financial markets, including markets 
around the world, have come to rely upon the fiscal 
responsibility of the federal government. That has helped to 
maintain the flow of foreign capital that our nation has 
needed. Even though the federal budget has improved 
substantially, household saving remains too low, and our 
nation's savings do not fully finance our strong level of 
investment. Many analysts have expressed concern that a loss of 
confidence of foreign investors in the U.S. economy now, given 
our need for foreign capital, would have serious adverse 
consequences.
    Some argue that a big tax cut would increase household 
saving, and so would help to solve our national saving problem. 
But this argument badly misses the point. The Resolution's 
over-large tax cut directly and immediately reduces national 
saving dollar for dollar. Even if the recipients of that tax 
cut saved ten percent of it--a faint hope, given that the 
household saving rate right now is near zero--national saving 
would decline by 90 percent of theexcessively large tax cut. 
And of course, given that the Resolution's advocates today argue that 
the taxpayers would spend the proceeds of the tax cut to stimulate the 
economy, we are left to wonder how the same dollar of tax cut can 
possibly be used a second time to increase saving simultaneously.
    Given the nation's very low household saving rate, the 
nation's fiscal policy should be set to maintain and grow the 
other components of national saving. Allowing the federal 
budget to follow our low household saving and drive national 
saving down, now of all times, would be risky and 
irresponsible, and could have adverse consequences, both 
domestically and internationally.

                   The Budget Resolution's Framework

Principles

    Democrats approach fiscal policy today from fundamental 
principles, which are ostensibly shared by the Republicans in 
Congress. First, we believe that the Social Security trust fund 
surplus should be protected, and should be used to reduce the 
public debt, because these funds are encumbered by commitments 
for future Social Security benefits. Policymakers must ensure 
that this surplus adds to the nation's savings pool, and so 
prepares the economy to keep those commitments. Second, we 
believe that the Medicare Part A (or Hospital Insurance) trust 
fund surplus should be treated in exactly the same way, for 
exactly the same reason. House Republicans claim to hold these 
principles, and unanimously passed their own Medicare 
``lockbox'' just a few weeks ago. But the lockbox bill that 
they passed addressed this issue in a very specific way:

          It is the purpose of this Act to . . . prevent the 
        surpluses of the social security and medicare hospital 
        insurance trust funds from being used for any purpose 
        other than providing retirement and health security; 
        and . . . use such surpluses to pay down the national 
        debt until such time as medicare and social security 
        reform legislation is enacted.

    Instead, the Majority's Budget Resolution specifically uses 
the already encumbered funds of the Medicare trust fund surplus 
to finance a new program--thereby reducing the solvency of 
Medicare. In contrast, Democrats recognize the inescapable 
logic that diverting those surpluses to even somewhat related 
uses--such as a prescription drug program for the elderly, or 
financing for individual accounts for retirement--shortens the 
solvency of the core programs (or increases long-term debt). It 
seems elementary that the first step in dealing with programs 
facing funding challenges should not be to make the problems 
worse.
    So Democrats take the lockbox bill at its word, and use a 
framework in which both the Social Security and Medicare trust 
fund surpluses are fenced off for debt reduction, and thus for 
preparation of the economy for the coming challenge of 
population aging.
    The following table shows the ten-year course of the budget 
under Congressional Budget Office assumptions and estimates, 
using this basic framework. It shows that the total surplus of 
$5.6 trillion is actually an available surplus of $2.7 
trillion, after moving the encumberedSocial Security and 
Medicare surpluses out of reach.
    The table then adds the Resolution's proposals for tax 
reduction ($1.6 trillion), net new spending above the CBO 
baseline that underlies the estimates (about $250 billion), and 
the resulting increase in debt service above the baseline 
(almost $500 billion). This presentation makes clear just how 
little margin for error this budget plan leaves for the next 
ten years.

                   The Budget Resolution is Imprudent

The Resolution leaves no margin for error

    For perspective, CBO reported in its most recent annual 
budget projection volume that its average error in estimating 
the budget surplus or deficit for a fiscal year already in 
progress has been about 0.5 percent of the GDP--at the current 
size of the economy, about $54 billion, rising to about $85 
billion by 2011. The Budget Resolution dissipates the available 
surplus to less than this most minimal standard of estimating 
confidence in the first eight years of the ten-year budget 
window, and barely surpasses it in the last two years. Given 
the widely escalating range of uncertainty as projections 
become more distant--CBO reports that its average error for a 
fiscal year five years in the future rises sixfold, to 3.1 
percent of GDP--it is clear that the projected small surpluses 
under the Resolution could easily change to substantial 
deficits.
    And even the point estimates of the surpluses, if realized, 
are unsatisfactory. The Resolution invades the Social Security 
and Medicare surpluses by a small amount in 2005. The surplus 
in 2006 is a paltry $3 billion. The projected surpluses do not 
surpass the estimated level for the current fiscal year, 2001, 
until the very last year of the ten-year projection window, 
2011. The total of the Resolution's true reserve is only $364 
billion over ten years; CBO's last reestimate changed the 
projected ten-year cumulative budget surplus by three times 
that amount, based on just six months' worth of new 
information. Thus, the Resolution, on its own terms, respects 
the basic standard of protection for the Social Security and 
Medicare surpluses only by the narrowest of margins.
    The Republican analysis of their own budget would differ 
from this only in their treatment of their Social Security and 
Medicare surpluses. They plan to divert at least 40 percent of 
the projected Medicare surplus to their prescription-drug plan 
(which we believe is unsound and underfunded); and they have 
encouraged diversion of the Social Security surplus similarly 
to an as yet unarticulated privatization plan. We oppose both 
of those diversions, which would reduce the solvency of the 
core programs. (We include in our substitute Resolution a 
Medicare prescription-drug plan, fully funded from non-Medicare 
revenues, so that Medicare solvency is maintained.) But even 
from the Republican perspective, which allows drains on Social 
Security and Medicare solvency, we believe that the Resolution 
is an imprudent response to our current circumstance.

Why defenses of the Resolution are not valid

    Budget projections are uncertain; budget outcomes could 
certainly be more favorable than CBO anticipates. But arguments 
that we should bet our future on such favorable outcomes are 
not convincing.
    Some contend that the CBO projections are extraordinarily 
conservative, and so more favorable outcomes are especially 
likely. One line of argument is that receipts have grown faster 
than our GDP recently, but that CBO projects that they will 
grow more slowly than GDP for several years; if this historical 
pattern continues, therefore, surpluses will be much larger. 
However, receipts cannot grow faster than the GDP forever, 
because receipts logically cannot exceed the GDP. Furthermore, 
one likely reason why receipts have grown more rapidly than GDP 
over the last few years is the extraordinary strength of the 
stock market; taxes on capital gains (and stock options) add to 
the total of receipts, but are not counted in the GDP (because 
they are not current production of goods or services). If the 
stock market grows more slowly in the future, that may well 
reduce the growth of receipts relative to the GDP.
    Another argument is that CBO's projected economic growth 
rates are slower than those for the last four years or so. But 
growth over that period was so high that virtually all serious 
economists acknowledged that it was not sustainable.
    Yet another reason given for a robust economic forecast is 
that tax cuts improve growth. The fly in this ointment is that 
the most rapid economic growth of recent years followed upon 
the deficit reduction legislation of 1993, which raised taxes 
(while cutting spending by the same amount). Over the 1980s and 
early 1990s, business investment, which was the driver of this 
economic boom, was a flat percentage of our GDP, and the 
deficit ballooned; after the 1993 law, with the lower interest 
rates that it caused, the investment share of GDP nearly 
doubled, and the budget zoomed into surplus.
    Evocations of the Kennedy-Johnson tax cut of 1964 as a part 
of this argument that tax cuts increase growth are similarly 
misplaced. The tax system prior to 1964 was leagues behind the 
tax law that we already have today. Before the Kennedy tax cut, 
the highest marginal income tax rate was 91 percent--meaning 
that the reward for an extra dollar of work was only 9 cents. 
The Kennedy-Johnson tax cut reduced the top-bracket rate to 70 
percent--meaning that the reward to an extra dollar's worth of 
work increased to 30 cents, or more than triple what it was. 
Now, the highest marginal rate is only 39.6 percent--more than 
10 percentage points lower than the Reagan goal of 50 percent. 
The proposed cut in the top tax rate would not triple the 
reward for work as the Kennedy tax cut did, but rather would 
increase it by only 11 percent. At the other end of the income 
scale, the lowest marginal tax rate prior to 1964 was 20 
percent. Under the current law, however, more than 75 percent 
of taxpayers are already in marginal rate brackets of either 15 
percent or zero. Thus, more than 75 percent of today's 
taxpayers already pay at marginal tax rates lower than the 
lowest rate prior to the Kennedy tax cut. There is no ground to 
assume that extra economic growth will rescue the budget from 
the baseline projections under the Resolution.
    The bottom line is that no economic or budget forecast 
covering ten years, however conscientious, can be a sound basis 
for a plan to spend an available budget surplus down to 
precisely zero. There must be a greater margin of safety. And 
even if policymakers have considerable confidence that the 
actual outcomes will be more favorable than the projections, 
they must recognize that the cost of an adverse outcome could 
be enormous. We have only seven years before the baby boom 
begins to retire on reduced Social Security benefits; we canno 
longer afford the near-20 year delay between the 1981 policy mistake 
and its ultimate correction. So just as the prudent family breadwinner, 
even with considerable confidence that he or she will survive the year, 
still pays the life insurance premium, so the prudent policymaker in 
this day of uncertainty and demographic change should leave a 
considerable margin against any bad news. The Budget Resolution does 
not meet this standard.

We can pay down more debt

    Another argument for a large and early tax cut is based on 
a fear that the nation will pay off too much debt. This 
argument holds that a large portion of the publicly held debt 
does not mature for ten or more years, and that before that 
date, all other debt will be paid off, and the federal 
government will have surpluses left over. That money will have 
to be invested in private securities, the argument goes, which 
will distort capital markets and so must be avoided at all 
costs. Thus, we must dissipate the surplus quickly now, before 
we remotely approach the holding of ``excess balances.'' In 
fact, we have far greater flexibility than this argument 
allows; and we should use that flexibility.
    First of all, given how crucial national saving is to our 
continued prosperity, it is imprudent in the extreme to assume 
excessive future surpluses over ten or more years, and so cut 
taxes dramatically and immediately to avoid an ``excess 
surplus'' problem that is itself years away. The projected 
surpluses may or may not materialize. If they do, we can cut 
taxes years from now and still head off this distant problem. 
If they do not, a large tax cut now could be most destructive 
to our economy and our budget.
    But beyond that, the problem of irredeemable debt has been 
overstated. The Treasury has for two years successfully bought 
back existing debt before it matures in a cost-effective way. 
Republican arguments that this process will involve exorbitant 
``penalty premiums'' are not borne out by this experience.
    Republicans have argued that it is wasteful to buy Treasury 
bonds that are trading in a free market at prices greater than 
their face value. But private-sector investors buy Treasury 
bonds trading at prices greater than their par value every day. 
Of the 165 separate issues of Treasury bonds listed on the 
Washington Post website on the morning of March 14, 159 were 
trading in the free market at premiums.
    The most rudimentary analysis of the bond market 
contradicts this fear of buying bonds at premiums. For example, 
Getting Started in Bonds, by Sharon Saltzgiver Wright (John 
Wiley & Sons, 1999, pages 201-202), explains:

          Almost all investors approach buying bonds quite 
        literally, meaning they refuse to pay a premium for a 
        bond. In a cloud of missed opportunities and 
        misunderstanding, they feel paying a premium means you 
        paid too much for a bond. You and I know that all a 
        premium price tells you is that interest rates have 
        fallen since the bond was issued.
          Because so many investors have their ignorance lead 
        them away from premium bonds, sometimes these bonds 
        will have higher yields than other similar bonds. So * 
        * * while a premium bond's price may make it appear 
        more expensive to the untrained eye, it can actually be 
        cheaper * * *
    So premium prices on bonds indicate simply that the bond 
was issued at a time of higher interest rates, and so pays a 
higher yield on its coupon. If the Treasury buys back that 
bond, it does not have to pay, and so saves, that larger 
coupon. The Treasury's decision to buy back a bond thus is 
exactly the same as a private investor's decision to buy that 
bond. The private investor would pocket the interest and the 
redemption payment; the Treasury would not have to make the 
interest and the redemption payment.
    Some have argued that the premium problem is not in the 
present, but in the future. As debt is paid down, the argument 
goes, Treasury securities will become more expensive because of 
a scarcity premium. However, their analysis ignores that 
Treasuries already carry extra value because of a liquidity 
premium; investors value Treasuries more because there are so 
many of them, and they are therefore traded so freely, that it 
is easy to find a buyer on short notice with little loss of 
value should the need arise. But once the quantity of 
Treasuries declines, even while scarcity pushes their value up, 
their reduced liquidity will push their value down. It is by no 
means clear that the scarcity factor will be stronger than the 
liquidity factor. In fact, the evidence leans the other way--
that Treasuries will become cheaper, not more expensive. Prices 
of Treasury issues that have been the subject of debt buybacks 
have declined, not increased (relative to comparable Treasuries 
whose supply has not been reduced), after the buybacks were 
concluded. And other nations that have engaged in debt 
exchanges, a related debt-management tool, have found that the 
bond issues that they have reduced in size have become cheaper, 
not more expensive.
    In keeping with this analysis, the Treasury's debt buyback 
program thus far has been a great success. To date, Treasury 
has successfully and efficiently conducted 24 buyback 
operations, repurchasing $36.2 billion par amount of debt. The 
Treasury has received on average 4.1 offers for every bond 
repurchased. In fact, the Treasury has received more offers per 
bond for its buybacks than it has for its regular auction 
sales. Merrill Lynch and Goldman, Sachs both have consistently 
found that Treasury buyback ``concessions'' (the difference 
between the yield paid on repurchased bonds and the yield in 
the market place at the exact time of a particular buyback 
operation) have been negligible. GAO concurred when they 
reported to Congress last month that ``while there was 
variation across the 20 buyback operations, generally the 
average concession was small or negative.'' Over the first 24 
buyback operations, Treasury has paid a concession versus the 
market for non-callable debt on average of only one-tenth to 
two-tenths of a basis point (that is, a small fraction of 1/
100th of one percent). This equates to only $80,000 to $165,000 
per billion dollars of buybacks. (Estimates are from Goldman, 
Sachs & Co., reported by GAO.) Obviously, the cost of 
continuing the current buyback program would be very small.
    Because of this success, the financial markets anticipate 
that Treasury will repurchase between $35 billion and $45 
billion of bonds this year, and will continue buybacks well 
into the future. Investment banks such as Goldman, Sachs and 
Merrill Lynch project significant continuing buybacks. Merrill 
Lynch recently projected approximately $245 billion in buybacks 
over the next five years. Last year, Goldman, Sachs projected 
the program growing to $40 billion to $50 billion this year, 
and to higher levels going forward. Wrightson Associates 
forecasts thatTreasury will continue buybacks at the current 
pace into the future. The General Accounting Office, in their report to 
Congress last month, also assumed that buybacks would continue into the 
future. In assessing the prospects for redemption of non-maturing debt 
in the future before this Committee, Federal Reserve Chairman Alan 
Greenspan was very clear that the amount of debt that could be 
purchased in a cost-effective way is a matter of judgment, and an open 
question.
    The Administration's judgment on this open question is 
zero; its estimates of irredeemable debt assume no debt 
buybacks whatsoever after 2001. But if the Treasury were to 
engage in debt buybacks according to the projections of these 
private-sector investment firms and the GAO, it could add 
almost two years to the time before we would reach the level of 
``irredeemable debt.'' Instead of changing our successful 
policy now out of fear, we could continue to pay down more 
debt, and learn with greater certainty whether the projected 
budget surpluses will in fact materialize. This added 
information would greatly reduce the chance of making a major 
public policy mistake.

Passage of the budget is premature

    The impatience that drives this Resolution is not 
justified, and is especially risky. As of the Budget Resolution 
markup, the Joint Committee on Taxation still maintained that 
it had too little information to estimate the cost of the 
President's proposed tax cut. The Resolution reserves the right 
to revisit the Department of Agriculture budget. The Department 
of Defense request in the budget is still tentative, pending 
the completion of a strategic review. The Administration and 
Republicans on the Budget Committee have taken great pride in 
their restraint in waiting to finalize the Defense mark until a 
broad, comprehensive review of all needs and costs is 
completed. One can only wonder why the same standard of care 
should not extend to the budget as a whole--of which national 
security expenditure is such a large part.
    Some would argue that today, with the budget in surplus, 
our leaders have less need of prudence than did those in the 
days of routine deficits in the 1970s and the early 1980s. But 
in 1981, our debt was only about 25 percent of GDP, not the 
near 35 percent of today; and the retirement of the baby-boom 
generation was decades away, not the mere seven years that we 
now have to prepare. Because the effects of economic 
developments on budget results often appear only after a 
considerable lag, the Congress could enact a large tax cut now 
and learn only after a couple of years that it had seriously 
overstepped. One economic downturn, and the time needed for the 
economy to recover, could further cut our remaining lead time 
before the baby boom's retirement. The opportunity for a sound 
preparation for the budgetary pressure of the baby boom's 
retirement could be lost for good. Especially given the 
enormous size of the proposed tax cuts, the much greater risks 
on the side of acting now make the case for caution much more 
persuasive. This is no time for risk-taking.

                              THE TAX CUT

    The Resolution's tax cut is lopsided. The advocates claim 
that the tax cut is fair because the percentage tax reductions 
in the President's plan are largest at the bottom of the income 
distribution. However, that amounts to saying that a restaurant 
worker whose income taxliability of $200 is totally eliminated 
gets a larger benefit than a lawyer whose $20,000 tax liability is cut 
in half.
    The claim that ``the typical family of four will be able to 
keep at least $1,600 more of their own money when the plan is 
fully effective'' is equally unjustified. A married couple with 
two children and annual income of $50,000 would get a $1,600 
tax cut, though only after 2005 when the plan was fully phased-
in. But more than 85 percent of tax filers will get tax cuts 
less than that amount, and many will get nothing. A single 
mother with two children and a $22,000 annual income would get 
nothing. A retired widow with no children and an income of 
$30,000 would get a mere $300. Meanwhile, the top one percent 
of tax filers, with incomes averaging more than $900,000 per 
year, would get an average tax cut of $46,000. The top one 
percent receives 43 percent of the tax cut's benefits, even 
though they pay only 21 percent of federal taxes.
    Republican statistics are portrayed as if the income tax 
were the only federal tax. In fact, however, three quarters of 
all taxpayers pay more payroll taxes than income taxes, and the 
Resolution does nothing to address this burden. This is because 
the underlying Bush tax package makes no changes to the earned 
income tax credit (EITC), which was originally designed in part 
to offset the impact of payroll taxes on low-income workers.

                      Consequences for Priorities

    The over-large tax cut impinges on priorities for the 
government's services to the people. The tentative defense mark 
may go higher, pending completion of a military posture review, 
which could swing the budget numbers by hundreds of billions of 
dollars over the ten-year budget window. To illustrate this 
point, the Resolution includes no figure for the President's 
desired missile defense program; impartial estimates suggest 
that the cost of a system that would meet the President's 
objectives could be in excess of $100 billion. Meeting the 
President's campaign goal of holding constant or increasing 
defense spending as a percentage of GNP would increase ten-year 
costs by more than $650 billion--almost double the true ten-
year reserve of $364 billion in the Resolution.
    The non-defense part of the budget is excessively 
constrained because of the size of the tax cut. While funding 
the President's new initiatives in education and health 
research, the budget allows total spending to grow at slightly 
less than the rate which the Congressional Budget Office (CBO) 
identifies as necessary to maintain current program levels. 
Thus, if the new proposals are to be funded, the current core 
government activities must be cut back--not only in inflation- 
adjusted terms, but even more from the pace of growth under the 
Republican Congresses of recent years. There is no indication 
of where those cuts should fall; they are left to future 
appropriations cycles, in a manner reminiscent of the 1981 
Reagan budget's reliance on ``program savings to be identified 
later''--the notorious ``magic asterisk''--to make its numbers 
add up. As just one example of the priorities left unaddressed 
because of the size of the tax cut, more people will find it 
tough to make ends meet if the economy slows down. The 
President's proposal and this resolution provide no support for 
basic housing needs, including preserving existing affordable 
housing, creating new affordable housing, andmore importantly 
increasing down payment assistance so that more low to moderate income 
Americans can own homes.

                         The Empty Reserve Fund

    The Resolution purports to cover these and other potential 
costs with a ``contingency reserve'' of $517 billion (according 
to Committee materials). However, this figure is achieved only 
by funding the President's prescription drug initiative out of 
the Medicare Part A surplus, thereby shortening Medicare's 
solvent life. Counting the prescription drug funding out of the 
general fund, the size of the reserve falls to $364 billion. 
That is not nearly enough to cover the many conceivable 
contingencies: the creation of Social Security individual 
accounts; defense expansions; economic misfortune; or 
estimating errors. If defense funding increases by as much as 
the President's campaign promises would suggest, and if the 
Republican Congress increases appropriations at a rate more 
like its spending of the last few years rather than what 
President Bush now requests, then there will be no source for 
individual Social Security accounts or Medicare prescription 
drug coverage other than the Social Security and Medicare 
surpluses, which are already committed to pay existing 
benefits.

                               Conclusion

    The Resolution follows the Bush budget in betting the 
nation's fiscal future on ten-year projections, just to achieve 
its large tax cut. But with the retirement of the baby boom 
just seven years away, this is no time for such risks.
    Instead, the Democrats offer a prudent budget framework. It 
provides a tax cut, but one that is affordable. It addresses 
the nation's priorities, including education, prescription drug 
coverage for seniors, and the solvency of Social Security and 
Medicare. But it leaves more margin for the inevitable bumps in 
the road over a long ten-year horizon. It does so because we 
recognize that the future is longer than ten years. By the end 
of this formal budget window, the new world of an aging 
population will just be beginning; and what will be around us 
will be just as unpredictable as this world was ten years ago. 
The nation has seen once before the enormous costs of 
overreaching to provide a large tax cut. We must not make that 
mistake again, certainly not now. We believe that the 
Democratic alternative is a better approach for the problems 
and potential of today.

                                   John M. Spratt, Jr.
                                   Jim McDermott.
                                   Bennie G. Thompson.
                                   Ken Bentsen.
                                   Jim Davis.
                                   Eva M. Clayton.
                                   David E. Price.
                                   Jerry Kleczka.
                                   Bob Clement.
                                   James Moran.
                                   Darlene Hooley.
                                   Tammy Baldwin.
                                   Carolyn McCarthy.
                                   Dennis Moore.
                                   Michael E. Capuano.
                                   Michael M. Honda.
                                   Joe Hoeffel.
                                   Jim Matheson.
                                   Rush Holt.

                                                                                   BUDGET RESOLUTION FRAMEWORK
                                                                                    [In billions of dollars]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                  2001      2002      2003      2004      2005      2006      2007      2008      2009      2010      2011     2002-06   2002-11
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Baseline Unified Surplus......................................     281.1     312.9     359.1     396.8     432.9     505.0     572.7     635.1     710.4     796.0     888.7   2,006.8   5,609.7
Social Security...............................................     156.2     170.8     187.9     201.1     221.3     238.2     256.5     275.9     293.7     311.7     330.5   1,019.4   2,487.7
Medicare Part A...............................................      29.0      36.0      39.0      41.0      40.0      44.0      41.0      41.0      39.0      37.0      34.0     200.0     392.0
Available Surplus.............................................      95.9     106.1     132.3     154.7     171.6     222.8     275.2     318.2     377.7     447.3     524.2     787.5   2,730.0
Tax Cut.......................................................       5.8      67.7      83.1     108.6     133.0     167.4     187.2     201.1     217.0     232.7     240.9     559.9   1,638.7
Spending Increases............................................       3.2      15.6      16.3      15.9      17.3      20.3      24.9      29.7      33.2      39.1      44.0      85.5     256.4
Net Interest..................................................       0.2       2.7       7.2      13.7      21.9      32.3      45.1      60.0      76.5      95.2     115.8      77.9     470.5
On-Budget Surplus.............................................      86.8      20.1      25.6      16.5     (0.6)       2.7      18.1      27.4      51.0      80.2     123.5      64.2     364.4
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

                            A P P E N D I X

                              ----------                              


                            H. Con. Res. 83

    A Concurrent Resolution establishing the congressional 
budget for the United States Government for fiscal year 2002, 
revising the congressional budget for the United States 
Government for fiscal year 2001, and setting forth appropriate 
budgetary levels for each of fiscal years 2003 through 2011.
  Resolved by the House of Representatives (the Senate 
concurring), 

SECTION 1. CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL YEAR 2002.

  The Congress declares that the concurrent resolution on the 
budget for fiscal year 2001 is hereby revised and replaced and 
that this is the concurrent resolution on the budget for fiscal 
year 2002 and that the appropriate budgetary levels for fiscal 
years 2003 through 2011 are hereby set forth.

SEC. 2. RECOMMENDED LEVELS AND AMOUNTS.

  The following budgetary levels are appropriate for each of 
fiscal years 2001 through 2011:
          (1) Federal revenues.--For purposes of the 
        enforcement of this resolution:
                  (A) The recommended levels of Federal 
                revenues are as follows:
                        Fiscal year 2001: $1,624,700,000,000.
                        Fiscal year 2002: $1,635,800,000,000.
                        Fiscal year 2003: $1,699,000,000,000.
                        Fiscal year 2004: $1,755,700,000,000.
                        Fiscal year 2005: $1,816,700,000,000.
                        Fiscal year 2006: $1,872,200,000,000.
                        Fiscal year 2007: $1,948,600,000,000.
                        Fiscal year 2008: $2,041,700,000,000.
                        Fiscal year 2009: $2,143,200,000,000.
                        Fiscal year 2010: $2,256,600,000,000.
                        Fiscal year 2011: $2,378,000,000,000.
                  (B) The amounts by which the aggregate levels 
                of Federal revenues should be reduced are as 
                follows:
                        Fiscal year 2001: $5,800,000,000,000.
                        Fiscal year 2002: $67,700,000,000.
                        Fiscal year 2003: $83,100,000,000.
                        Fiscal year 2004: $108,600,000,000.
                        Fiscal year 2005: $133,100,000,000.
                        Fiscal year 2006: $167,400,000,000.
                        Fiscal year 2007: $187,100,000,000.
                        Fiscal year 2008: $201,100,000,000.
                        Fiscal year 2009: $217,000,000,000.
                        Fiscal year 2010: $232,700,000,000.
                        Fiscal year 2011: $240,900,000,000.
          (2) New budget authority.--For purposes of the 
        enforcement of this resolution, the appropriate levels 
        of total new budget authority are as follows:
                        Fiscal year 2001: $1,556,900,000,000.
                        Fiscal year 2002: $1,613,700,000,000.
                        Fiscal year 2003: $1,660,300,000,000.
                        Fiscal year 2004: $1,723,200,000,000.
                        Fiscal year 2005: $1,799,900,000,000.
                        Fiscal year 2006: $1,851,600,000,000.
                        Fiscal year 2007: $1,918,000,000,000.
                        Fiscal year 2008: $1,998,500,000,000.
                        Fiscal year 2009: $2,077,000,000,000.
                        Fiscal year 2010: $2,161,500,000,000.
                        Fiscal year 2011: $2,252,800,000,000.
          (3) Budget outlays.--For purposes of the enforcement 
        of this resolution, the appropriate levels of total 
        budget outlays are as follows:
                        Fiscal year 2001: $1,508,900,000,000.
                        Fiscal year 2002: $1,579,800,000,000.
                        Fiscal year 2003: $1,634,600,000,000.
                        Fiscal year 2004: $1,698,600,000,000.
                        Fiscal year 2005: $1,777,600,000,000.
                        Fiscal year 2006: $1,825,700,000,000.
                        Fiscal year 2007: $1,889,900,000,000.
                        Fiscal year 2008: $1,973,700,000,000.
                        Fiscal year 2009: $2,053,600,000,000.
                        Fiscal year 2010: $2,139,900,000,000.
                        Fiscal year 2011: $2,230,200,000,000.
          (4) Surpluses.--For purposes of the enforcement of 
        this resolution, the amounts of the surpluses are as 
        follows:
                        Fiscal year 2001: $115,800,000,000.
                        Fiscal year 2002: $56,000,000,000.
                        Fiscal year 2003: $64,400,000,000.
                        Fiscal year 2004: $57,100,000,000.
                        Fiscal year 2005: $39,100,000,000.
                        Fiscal year 2006: $46,500,000,000.
                        Fiscal year 2007: $58,700,000,000.
                        Fiscal year 2008: $68,000,000,000.
                        Fiscal year 2009: $89,600,000,000.
                        Fiscal year 2010: $116,700,000,000.
                        Fiscal year 2011: $156,800,000,000.
          (5) Public debt.--The appropriate levels of the 
        public debt are as follows:
                        Fiscal year 2001: $5,575,000,000,000.
                        Fiscal year 2002: $5,623,000,000,000.
                        Fiscal year 2003: $5,674,000,000,000.
                        Fiscal year 2004: $5,733,000,000,000.
                        Fiscal year 2005: $5,807,000,000,000.
                        Fiscal year 2006: $5,903,000,000,000.
                        Fiscal year 2007: $6,394,000,000,000.
                        Fiscal year 2008: $6,972,000,000,000.
                        Fiscal year 2009: $7,596,000,000,000.
                        Fiscal year 2010: $8,623,000,000,000.
                        Fiscal year 2011: $9,436,000,000,000.

SEC. 3. MAJOR FUNCTIONAL CATEGORIES.

  The Congress determines and declares that the appropriate 
levels of new budget authority and budget outlays for fiscal 
years 2001 through 2011 for each major functional category are:
          (1) National Defense (050):
                  Fiscal year 2001:
                          (A) New budget authority, 
                        $310,300,000,000.
                          (B) Outlays, $300,600,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        $324,600,000,000.
                          (B) Outlays, $319,300,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $333,300,000,000.
                          (B) Outlays, $325,500,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $342,600,000,000.
                          (B) Outlays, $334,000,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $352,200,000,000.
                          (B) Outlays, $347,200,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $362,100,000,000.
                          (B) Outlays, $354,600,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $372,200,000,000.
                          (B) Outlays, $361,900,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $382,700,000,000.
                          (B) Outlays, $375,600,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $393,500,000,000.
                          (B) Outlays, $386,500,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $404,500,000,000.
                          (B) Outlays, $397,600,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $416,300,000,000.
                          (B) Outlays, $409,200,000,000.
          (2) International Affairs (150):
                  Fiscal year 2001:
                          (A) New budget authority, 
                        $22,400,000,000.
                          (B) Outlays, $19,700,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        $23,900,000,000.
                          (B) Outlays, $19,600,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $23,900,000,000.
                          (B) Outlays, $19,900,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $24,500,000,000.
                          (B) Outlays, $20,400,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $25,400,000,000.
                          (B) Outlays, $20,800,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $26,200,000,000.
                          (B) Outlays, $21,400,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $26,900,000,000.
                          (B) Outlays, $22,100,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $27,400,000,000.
                          (B) Outlays, $22,800,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $28,000,000,000.
                          (B) Outlays, $23,600,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $28,400,000,000.
                          (B) Outlays, $24,200,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $29,600,000,000.
                          (B) Outlays, $25,000,000,000.
          (3) General Science, Space, and Technology (250):
                  Fiscal year 2001:
                          (A) New budget authority, 
                        $21,000,000,000.
                          (B) Outlays, $19,600,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        $22,200,000,000.
                          (B) Outlays, $21,000,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $22,600,000,000.
                          (B) Outlays, $21,900,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $23,100,000,000.
                          (B) Outlays, $22,600,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $23,600,000,000.
                          (B) Outlays, $23,200,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $24,300,000,000.
                          (B) Outlays, $23,700,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $24,900,000,000.
                          (B) Outlays, $24,300,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $25,600,000,000.
                          (B) Outlays, $24,900,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $26,200,000,000.
                          (B) Outlays, $25,600,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $26,700,000,000.
                          (B) Outlays, $26,100,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $27,800,000,000.
                          (B) Outlays, $26,900,000,000.
          (4) Energy (270):
                  Fiscal year 2001:
                          (A) New budget authority, 
                        $1,200,000,000.
                          (B) Outlays, -$100,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        $800,000,000.
                          (B) Outlays, -$200,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $800,000,000.
                          (B) Outlays, -$500,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $900,000,000.
                          (B) Outlays, -$600,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $900,000,000.
                          (B) Outlays, -$500,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $1,000,000,000.
                          (B) Outlays, -$400,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $1,100,000,000.
                          (B) Outlays, -$200,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $2,200,000,000.
                          (B) Outlays, $400,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $2,300,000,000.
                          (B) Outlays, $800,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $2,300,000,000.
                          (B) Outlays, $1,000,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $2,200,000,000.
                          (B) Outlays, $900,000,000.
          (5) Natural Resources and Environment (300):
                  Fiscal year 2001:
                          (A) New budget authority, 
                        $28,000,000,000.
                          (B) Outlays, $26,400,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        $26,700,000,000.
                          (B) Outlays, $26,400,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $26,800,000,000.
                          (B) Outlays, $27,000,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $27,700,000,000.
                          (B) Outlays, $27,500,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $27,900,000,000.
                          (B) Outlays, $27,700,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $28,000,000,000.
                          (B) Outlays, $27,800,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $28,600,000,000.
                          (B) Outlays, $28,300,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $29,300,000,000.
                          (B) Outlays, $28,800,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $30,600,000,000.
                          (B) Outlays, $29,900,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $31,200,000,000.
                          (B) Outlays, $30,500,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $32,400,000,000.
                          (B) Outlays, $31,500,000,000.
          (6) Agriculture (350):
                  Fiscal year 2001:
                          (A) New budget authority, 
                        $26,300,000,000.
                          (B) Outlays, $23,700,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        $19,100,000,000.
                          (B) Outlays, $17,500,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $18,600,000,000.
                          (B) Outlays, $17,000,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $18,500,000,000.
                          (B) Outlays, $17,100,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $18,300,000,000.
                          (B) Outlays, $16,900,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $17,900,000,000.
                          (B) Outlays, $16,300,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $16,500,000,000.
                          (B) Outlays, $14,900,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $15,600,000,000.
                          (B) Outlays, $14,100,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $15,800,000,000.
                          (B) Outlays, $14,400,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $15,900,000,000.
                          (B) Outlays, $14,500,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $16,100,000,000.
                          (B) Outlays, $14,700,000,000.
          (7) Commerce and Housing Credit (370):
                  Fiscal year 2001:
                          (A) New budget authority, 
                        $2,500,000,000.
                          (B) Outlays, -$800,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        $7,400,000,000.
                          (B) Outlays, $4,400,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $8,600,000,000.
                          (B) Outlays, $3,200,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $12,800,000,000.
                          (B) Outlays, $8,600,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $12,700,000,000.
                          (B) Outlays, $9,000,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $12,700,000,000.
                          (B) Outlays, $8,400,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $13,500,000,000.
                          (B) Outlays, $9,200,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $13,900,000,000.
                          (B) Outlays, $9,300,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $14,300,000,000.
                          (B) Outlays, $9,600,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $18,700,000,000.
                          (B) Outlays, $12,800,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $13,500,000,000.
                          (B) Outlays, $9,800,000,000.
          (8) Transportation (400):
                  Fiscal year 2001:
                          (A) New budget authority, 
                        $62,100,000,000.
                          (B) Outlays, $51,700,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        $61,000,000,000.
                          (B) Outlays, $55,600,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $58,700,000,000.
                          (B) Outlays, $58,300,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $59,200,000,000.
                          (B) Outlays, $60,200,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $59,700,000,000.
                          (B) Outlays, $62,000,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $60,300,000,000.
                          (B) Outlays, $63,700,000,000.
                  cal year 2007:
                          (A) New budget authority, 
                        $60,800,000,000.
                          (B) Outlays, $64,900,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $61,300,000,000.
                          (B) Outlays, $66,400,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $61,800,000,000.
                          (B) Outlays, $68,000,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $62,200,000,000.
                          (B) Outlays, $69,300,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $63,100,000,000.
                          (B) Outlays, $71,200,000,000.
          (9) Community and Regional Development (450):
                  Fiscal year 2001:
                          (A) New budget authority, 
                        $11,200,000,000.
                          (B) Outlays, $11,400,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        $10,100,000,000.
                          (B) Outlays, $11,400,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $10,300,000,000.
                          (B) Outlays, $11,000,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $10,600,000,000.
                          (B) Outlays, $10,700,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $10,900,000,000.
                          (B) Outlays, $10,400,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $11,200,000,000.
                          (B) Outlays, $10,300,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $11,500,000,000.
                          (B) Outlays, $10,500,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $11,800,000,000.
                          (B) Outlays, $10,800,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $12,100,000,000.
                          (B) Outlays, $11,000,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $12,300,000,000.
                          (B) Outlays, $11,300,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $12,800,000,000.
                          (B) Outlays, $11,600,000,000.
          (10) Education, Training, Employment, and Social 
        Services (500):
                  Fiscal year 2001:
                          (A) New budget authority, 
                        $76,900,000,000.
                          (B) Outlays, $69,800,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        $82,100,000,000.
                          (B) Outlays, $76,200,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $82,000,000,000.
                          (B) Outlays, $81,700,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $83,900,000,000.
                          (B) Outlays, $82,300,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $87,300,000,000.
                          (B) Outlays, $84,800,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $90,200,000,000.
                          (B) Outlays, $87,700,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $92,800,000,000.
                          (B) Outlays, $90,400,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $95,700,000,000.
                          (B) Outlays, $93,000,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $98,400,000,000.
                          (B) Outlays, $95,900,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $100,500,000,000.
                          (B) Outlays, $98,400,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $104,600,000,000.
                          (B) Outlays, $101,400,000,000.
          (11) Health (550):
                  Fiscal year 2001:
                          (A) New budget authority, 
                        $182,600,000,000.
                          (B) Outlays, $175,500,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        $204,000,000,000.
                          (B) Outlays, $201,100,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $229,700,000,000.
                          (B) Outlays, $225,800,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $246,500,000,000.
                          (B) Outlays, $244,700,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $253,800,000,000.
                          (B) Outlays, $251,500,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $266,800,000,000.
                          (B) Outlays, $264,600,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $287,000,000,000.
                          (B) Outlays, $284,200,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $307,600,000,000.
                          (B) Outlays, $305,200,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $329,700,000,000.
                          (B) Outlays, $327,600,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $354,200,000,000.
                          (B) Outlays, $352,500,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $382,400,000,000.
                          (B) Outlays, $380,200,000,000.
          (12) Medicare (570):
                  Fiscal year 2001:
                          (A) New budget authority, 
                        $217,500,000,000.
                          (B) Outlays, $217,700,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        $229,100,000,000.
                          (B) Outlays, $229,100,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $243,900,000,000.
                          (B) Outlays, $243,700,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $260,200,000,000.
                          (B) Outlays, $260,400,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $291,800,000,000.
                          (B) Outlays, $291,700,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $309,900,000,000.
                          (B) Outlays, $309,700,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $336,100,000,000.
                          (B) Outlays, $336,400,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $362,800,000,000.
                          (B) Outlays, $362,700,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $391,100,000,000.
                          (B) Outlays, $390,800,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $423,400,000,000.
                          (B) Outlays, $423,700,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $459,400,000,000.
                          (B) Outlays, $459,400,000,000.
          (13) Income Security (600):
                  Fiscal year 2001:
                          (A) New budget authority, 
                        $255,900,000,000.
                          (B) Outlays, $256,900,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        $271,500,000,000.
                          (B) Outlays, $272,100,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $281,800,000,000.
                          (B) Outlays, $282,300,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $293,300,000,000.
                          (B) Outlays, $292,500,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $308,100,000,000.
                          (B) Outlays, $306,700,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $315,900,000,000.
                          (B) Outlays, $314,400,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $323,400,000,000.
                          (B) Outlays, $321,900,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $337,900,000,000.
                          (B) Outlays, $336,500,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $349,300,000,000.
                          (B) Outlays, $347,600,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $359,900,000,000.
                          (B) Outlays, $358,200,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $371,600,000,000.
                          (B) Outlays, $369,400,000,000.
          (14) Social Security (650):
                  Fiscal year 2001:
                          (A) New budget authority, 
                        $9,800,000,000.
                          (B) Outlays, $9,800,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        $11,000,000,000.
                          (B) Outlays, $11,000,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $11,700,000,000.
                          (B) Outlays, $11,700,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $12,500,000,000.
                          (B) Outlays, $12,500,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $13,300,000,000.
                          (B) Outlays, $13,300,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $14,200,000,000.
                          (B) Outlays, $14,200,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $15,200,000,000.
                          (B) Outlays, $15,200,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $16,200,000,000.
                          (B) Outlays, $16,200,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $17,500,000,000.
                          (B) Outlays, $17,500,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $18,900,000,000.
                          (B) Outlays, $18,900,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $20,400,000,000.
                          (B) Outlays, $20,400,000,000.
          (15) Veterans Benefits and Services (700):
                  Fiscal year 2001:
                          (A) New budget authority, 
                        $46,700,000,000.
                          (B) Outlays, $45,900,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        $52,300,000,000.
                          (B) Outlays, $51,600,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $53,000,000,000.
                          (B) Outlays, $52,800,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $55,300,000,000.
                          (B) Outlays, $54,900,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $59,300,000,000.
                          (B) Outlays, $58,900,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $58,800,000,000.
                          (B) Outlays, $58,300,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $58,100,000,000.
                          (B) Outlays, $57,700,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $62,000,000,000.
                          (B) Outlays, $61,600,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $63,400,000,000.
                          (B) Outlays, $63,000,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $64,700,000,000.
                          (B) Outlays, $64,400,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $67,100,000,000.
                          (B) Outlays, $66,700,000,000.
          (16) Administration of Justice (750):
                  Fiscal year 2001:
                          (A) New budget authority, 
                        $30,600,000,000.
                          (B) Outlays, $30,000,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        $30,900,000,000.
                          (B) Outlays, $30,300,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $31,900,000,000.
                          (B) Outlays, $32,100,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $33,600,000,000.
                          (B) Outlays, $34,100,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $34,600,000,000.
                          (B) Outlays, $34,700,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $35,700,000,000.
                          (B) Outlays, $35,300,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $36,600,000,000.
                          (B) Outlays, $36,100,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $37,600,000,000.
                          (B) Outlays, $37,100,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $38,500,000,000.
                          (B) Outlays, $38,100,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $39,200,000,000.
                          (B) Outlays, $38,800,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $40,800,000,000.
                          (B) Outlays, $40,200,000,000.
          (17) General Government (800):
                  Fiscal year 2001:
                          (A) New budget authority, 
                        $16,300,000,000.
                          (B) Outlays, $16,100,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        $16,700,000,000.
                          (B) Outlays, $16,300,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $16,300,000,000.
                          (B) Outlays, $16,300,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $16,700,000,000.
                          (B) Outlays, $16,600,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $17,000,000,000.
                          (B) Outlays, $16,700,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $17,500,000,000.
                          (B) Outlays, $17,100,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $17,900,000,000.
                          (B) Outlays, $17,500,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $18,000,000,000.
                          (B) Outlays, $17,700,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $18,400,000,000.
                          (B) Outlays, $18,000,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $18,700,000,000.
                          (B) Outlays, $18,300,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $19,400,000,000.
                          (B) Outlays, $18,900,000,000.
          (18) Net Interest (900):
                  Fiscal year 2001:
                          (A) New budget authority, 
                        $273,600,000,000.
                          (B) Outlays, $273,600,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        $257,600,000,000.
                          (B) Outlays, $257,600,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $253,200,000,000.
                          (B) Outlays, $253,200,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $248,500,000,000.
                          (B) Outlays, $248,500,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $242,400,000,000.
                          (B) Outlays, $242,400,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $239,000,000,000.
                          (B) Outlays, $239,000,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $236,500,000,000.
                          (B) Outlays, $236,500,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $233,300,000,000.
                          (B) Outlays, $233,300,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $229,300,000,000.
                          (B) Outlays, $229,300,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $224,400,000,000.
                          (B) Outlays, $224,400,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $219,100,000,000.
                          (B) Outlays, $219,100,000,000.
          (19) Allowances (920):
                  Fiscal year 2001:
                          (A) New budget authority, 
                        -$500,000,000.
                          (B) Outlays, -$300,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        $5,000,000,000.
                          (B) Outlays, $1,800,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $5,500,000,000.
                          (B) Outlays, $4,000,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $6,000,000,000.
                          (B) Outlays, $4,800,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $6,200,000,000.
                          (B) Outlays, $5,700,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $6,400,000,000.
                          (B) Outlays, $6,100,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $6,600,000,000.
                          (B) Outlays, $6,300,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        $6,700,000,000.
                          (B) Outlays, $6,400,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        $7,000,000,000.
                          (B) Outlays, $6,600,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        $7,200,000,000.
                          (B) Outlays, $6,800,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        $7,500,000,000.
                          (B) Outlays, $7,000,000,000.
          (20) Undistributed Offsetting Receipts (950):
                  Fiscal year 2001:
                          (A) New budget authority, 
                        -$38,300,000,000.
                          (B) Outlays, -$38,300,000,000.
                  Fiscal year 2002:
                          (A) New budget authority, 
                        -$42,300,000,000.
                          (B) Outlays, -$42,300,000,000.
                  Fiscal year 2003:
                          (A) New budget authority, 
                        -$52,300,000,000.
                          (B) Outlays, -$52,300,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        -$53,200,000,000.
                          (B) Outlays, -$53,200,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        -$45,500,000,000.
                          (B) Outlays, -$45,500,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        -$46,500,000,000.
                          (B) Outlays, -$46,500,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        -$48,200,000,000.
                          (B) Outlays, -$48,200,000,000.
                  Fiscal year 2008:
                          (A) New budget authority, 
                        -$49,100,000,000.
                          (B) Outlays, -$49,100,000,000.
                  Fiscal year 2009:
                          (A) New budget authority, 
                        -$50,200,000,000.
                          (B) Outlays, -$50,200,000,000.
                  Fiscal year 2010:
                          (A) New budget authority, 
                        -$51,800,000,000.
                          (B) Outlays, -$51,800,000,000.
                  Fiscal year 2011:
                          (A) New budget authority, 
                        -$53,300,000,000.
                          (B) Outlays, -$53,300,000,000.

SEC. 4. RECONCILIATION.

  (a) Submissions by the House Committee on Ways and Means for 
Tax Relief.--The House Committee on Ways and Means shall--
          (1) report to the House a reconciliation bill--
                  (A) not later than May 2, 2001;
                  (B) not later than May 23, 2001; and
                  (C) not later than June 20, 2001; and
          (2) submit to the Committee on the Budget 
        recommendations pursuant to section (c)(2)(F)(ii) not 
        later than September 11, 2001;
        that consists of changes in laws within its 
        jurisdiction sufficient to reduce the total level of 
        revenues by not more than: $5,783,000,000 for fiscal 
        year 2001, $64,427,000,000 for fiscal year 2002, 
        $80,036,000,000 for fiscal year 2003, $106,584,000,000 
        for fiscal year 2004, $130,973,000,000 for fiscal year 
        2005, $165,166,000,000 for fiscal year 2006, and 
        $1,625,951,000,000 for the period of fiscal year 2001 
        through 2011.
  (b) Submissions by House Committees on Energy and Commerce 
and Ways and Means for Medicare Reform and Prescription 
Drugs.--(1) Not later than July 24, 2001, the House Committees 
named in paragraph (2) shall submit their recommendations to 
the House Committee on the Budget. After receiving those 
recommendations, the House Committee on the Budget shall report 
to the House a reconciliation bill carrying out all such 
recommendations without any substantive revision.
  (2)(A) The House Committee on Energy and Commerce shall 
report changes in laws within its jurisdiction that provide 
direct spending sufficient to increase outlays by not more than 
the following: $2,500,000,000 for fiscal year 2001, 
$11,200,000,000 for fiscal year 2002, $12,900,000,000 for 
fiscal year 2003, $14,800,000,000 for fiscal year 2004, 
$12,500,000,000 for fiscal year 2005, $12,800,000,000 for 
fiscal year 2006, and $153,000,000 for the period of fiscal 
year 2001 through 2011.
  (B) The House Committee on Ways and Means shall report 
changes in laws within its jurisdiction that provide direct 
spending sufficient to increase outlays by not more than the 
following: $2,500,000,000 for fiscal year 2001, $11,200,000,000 
for fiscal year 2002, $12,900,000,000 for fiscal year 2003, 
$14,800,000,000 for fiscal year 2004, $12,500,000,000 for 
fiscal year 2005, $12,800,000,000 for fiscal year 2006, and 
$153,000,000,000 for the period of fiscal year 2001 through 
2011.
  (c) Other Submissions by House Committees.--(1) Not later 
than September 11, 2001, the House Committees named in 
paragraph (2) shall submit their recommendations to the House 
Committee on the Budget. After receiving those recommendations, 
the House Committee on the Budget shall report to the House a 
reconciliation bill carrying out all such recommendations 
without any substantive revision.
  (2)(A) The House Committee on Education and the Workforce 
shall report changes in laws within its jurisdiction that 
provide direct spending sufficient to increase outlays by not 
more than the following: $5,000,000 for fiscal year 2001, 
$5,000,000 for fiscal year 2002, $5,000,000 for fiscal year 
2003, $5,000,000 for fiscal year 2004, $7,000,000 for fiscal 
year 2005, $10,000,000 for fiscal year 2006, and $87,000,000 
for the period of fiscal year 2001 through 2011.
  (B) The House Committee on Energy and Commerce shall report 
changes in laws within its jurisdiction that provide direct 
spending sufficient to increase outlays by not more than the 
following: $0 for fiscal year 2001, $180,000,000 for fiscal 
year 2002, $466,000,000 for fiscal year 2003, $561,000,000 for 
fiscal year 2004, $681,000,000 for fiscal year 2005, 
$836,000,000 for fiscal year 2006, and $7,867,000,000 for the 
period of fiscal year 2001 through 2011.
  (C) The House Committee on Financial Services shall report 
changes in laws within its jurisdiction that provide direct 
spending sufficient to reduce revenues, as follows: $0 for 
fiscal year 2001, $139,000,000 for fiscal year 2002, 
$101,000,000 for fiscal year 2003, $92,000,000 for fiscal year 
2004, $96,000,000 for fiscal year 2005, $101,000,000 for fiscal 
year 2006, and $1,112,000,000 for the period of fiscal year 
2001 through 2011.
  (D) The House Committee on Government Reform shall report 
changes in laws within its jurisdiction that provide direct 
spending sufficient to reduce outlays by not less than the 
following: $0 for fiscal year 2001, $0 for fiscal year 2002, 
$496,000,000 for fiscal year 2003, $523,000,000 for fiscal year 
2004, $501,000,000 for fiscal year 2005, $475,000,000 for 
fiscal year 2006, and $3,871,000 for the period of fiscal year 
2001 through 2011.
  (E) The House Committee on Veterans' Affairs shall report 
changes in laws within its jurisdiction that provide direct 
spending sufficient to increase outlays by not more than the 
following: $0 for fiscal year 2001, $264,000,000 for fiscal 
year 2002, $479,000,000 for fiscal year 2003, $761,000,000 for 
fiscal year 2004, $816,000,000 for fiscal year 2005, 
$885,000,000 for fiscal year 2006, and $7,087,000,000 for the 
period of fiscal year 2001 through 2011.
  (F)(i) The House Committee on Ways and Means shall report 
changes in laws within its jurisdiction that provide direct 
spending sufficient to increase outlays by not more than the 
following: $0 for fiscal year 2001, $820,000,000 for fiscal 
year 2002, $3,035,000,000 for fiscal year 2003, $2,842,000,000 
for fiscal year 2004, $3,925,000,000 for fiscal year 2005, 
$4,267,000,000 for fiscal year 2006, and $39,515,000,000 for 
the period of fiscal year 2001 through 2011.
  (ii) The House Committee on Ways and Means shall report 
changes in laws within its jurisdiction sufficient to reduce 
the total level of revenues as specified in subsection (a).
  (d) Special Rules.--In the House, if any bill reported 
pursuant to subsection (a) or subsection (c)(2)(F)(ii), 
amendment thereto or conference report thereon, has refundable 
tax provisions that increase outlays, the chairman of the 
Committee on the Budget may increase the amount of new budget 
authority provided by such provisions (and outlays flowing 
therefrom) allocated to the Committee on Ways and Means and 
adjust the revenue levels set forth in such subsection 
accordingly such that the increase in outlays and reduction in 
revenue resulting from such bill does not exceed the amounts 
specified in subsection (a) or subsection (c)(2)(F)(ii), as 
applicable.

SEC. 5. RESERVE FUND FOR EMERGENCIES.

  (a) Adjustments for Emergencies.--In the House, after the 
reporting of a bill or joint resolution by the Committee on 
Appropriations, the offering of an amendment thereto, or the 
submission of a conference report thereon, the chairman of the 
Committee on the Budget shall increase the allocation of new 
budget authority and outlays under section 302(a) of the 
Congressional Budget Act of 1974 for fiscal year 2002 by the 
amount provided by that measure for an emergency as defined by 
this section. Adjustments to such allocation made under this 
subsection may be made only for amounts for emergencies in 
excess of $1,923,000,000 in new budget authority for fiscal 
year 2002 and the total of any such adjustments for such fiscal 
year shall not exceed $5,627,000,000 in new budget authority.
  (b) Definitions.--As used in this section:
          (1) The term `emergency' means a situation (other 
        than a threat to national security) that--
                  (A) requires new budget authority (and 
                outlays flowing therefrom) to prevent the 
                imminent loss of life or property or in 
                response to the loss of life or property; and
                  (B) is unanticipated.
          (2) The term `unanticipated' means that the 
        underlying situation is--
                  (A) sudden, which means quickly coming into 
                being or not building up over time;
                  (B) urgent, which means a pressing and 
                compelling need requiring immediate action;
                  (C) unforeseen, which means not predicted or 
                anticipated as an emerging need; and
                  (D) temporary, which means not of a permanent 
                duration.
  (c) Development of Guidelines.--As soon as practicable, the 
chairman of the Committee on the Budget of the House shall, 
after consulting with the chairman of the Committee on 
Appropriations of the House, publish in the Congressional 
Record guidelines for application of the definition of 
emergency set forth in subsection (b).
  (d) Committee Explanation of Emergency Legislation.--Whenever 
the Committee on Appropriations of the House (including a 
committee of conference) reports any bill or joint resolution 
that provides new budget authority for any emergency, the 
report accompanying that bill or joint resolution (or the joint 
explanatory statement of managers in the case of a conference 
report on any such bill or joint resolution) should explain the 
reasons such amount designated under section 251(b)(2)(A) of 
the Balanced Budget and Emergency Deficit Control Act of 1974 
falls within the definition of emergency set forth in 
subsection (b) pursuant to the guidelines published under 
subsection (c).
  (e) CBO Report on the Budget.--The Director of the 
Congressional Budget Office shall include in each report 
submitted under section 202(e)(1) of the Congressional Budget 
Act of 1974 the average annual enacted levels of discretionary 
budget authority and the resulting outlays for emergencies for 
the 5 fiscal years preceding the fiscal year of the most 
recently agreed to concurrent resolution on the budget.
  (f) Section 314(b)(1) Adjustment.--Section 314(b)(1) of the 
Congressional Budget Act of 1974 shall not apply in the House--
          (1) for fiscal year 2001; or
          (2) for fiscal year 2002 or any subsequent fiscal 
        year, except for emergencies affecting national 
        security.

SEC. 6. STRATEGIC RESERVE FUND.

  (a) Adjustments.--In the House, the chairman of the Committee 
on the Budget may, not later than July 25, 2001, increase 
allocations of new budget authority (and outlays flowing 
therefrom) and adjust aggregates (and adjust any other 
appropriate levels) for fiscal year 2002 for a bill making 
appropriations for the Department of Defense for the fiscal 
year ending September 30, 2002, and for any fiscal year for a 
bill to reauthorize title I of the Federal Agriculture 
Improvement Act of 1996 and other appropriate legislation, 
reported by July 11, 2001; and, in the House, the chairman may 
also make adjustments for amendments to or conference reports 
on such bills. The chairman shall consider the recommendations 
of the President's National Defense Review, any comparable 
review by the President of national agricultural policy, and 
any statement of administrative policy or supplemental budget 
request relating to any matter referred to in the preceding 
sentence.
  (b) Limitations.--(1) The adjustments for any bill referred 
to in subsection (a) shall be in an amount not to exceed the 
amount by which such bill breaches the applicable allocation or 
aggregate.
  (2) The total adjustments made under subsection (a) for any 
fiscal year may not cause the surplus set forth in this 
resolution for any fiscal year, as adjusted, covered by this 
resolution to be less than the surplus of the Federal Hospital 
Insurance Trust Fund for that fiscal year, as determined 
consistent with procedures set forth in H.R. 2 (107th 
Congress), as passed the House.

SEC. 7. SUPPLEMENTAL RESERVE FUND FOR MEDICARE.

  In the House, whenever a reconciliation bill is reported, or 
an amendment thereto is offered or a conference report thereon 
is submitted, under section 4, the chairman of the Committee on 
the Budget may, for any of fiscal years 2001 through 2011, 
increase any allocations and aggregates of new budget authority 
(and outlays resulting therefrom) up to the amount provided by 
that measure to reform medicare and provide coverage for 
prescription drugs that is in excess of the instruction to the 
Committee on Energy and Commerce and the Committee on Ways and 
Means under section 4(b) (and make all other appropriate 
adjustments). The total adjustments made under this section for 
any fiscal year may not exceed the amount by which the 
Congressional Budget Office's estimate of the President's 
prescription drug plan (or, if such a plan is not submitted in 
a timely manner, the Congressional Budget Office's estimate of 
a comparable plan submitted by the chairmen of the committees 
of jurisdiction at levels to be determined by the chairman of 
the Committee on the Budget) exceeds the levels set forth in 
section 4(b)(2) for the period of fiscal years 2001 through 
2011.

SEC. 8. RESERVE FUND FOR FISCAL YEAR 2001.

  (a) Adjustments.--In the House, the chairman of the Committee 
on the Budget may increase allocations of new budget authority 
(and outlays flowing therefrom) and adjust aggregates (and 
adjust any other appropriate levels) for fiscal year 2001 for 
reported bills, or amendments thereto or conference reports 
thereon, by the amount of new budget authority (and the outlays 
resulting therefrom) provided by such measure to eliminate 
shortfalls for the Department of Defense, for assistance for 
producers of program crops and specialty crops, and for other 
critical needs.
  (b) Limitations.--(1) The adjustments for any bill referred 
to in subsection (a) shall be in an amount not to exceed the 
amount by which such bill breaches the applicable allocation or 
aggregate.
  (2) The total adjustments made under subsection (a) for 
fiscal year 2001 may not cause the surplus set forth in this 
resolution for that fiscal year, as adjusted, to be less than 
the surplus of the Federal Hospital Insurance Trust Fund for 
that fiscal year, as determined consistent with procedures set 
forth in H.R. 2 (107th Congress), as passed the House.

SEC. 9. RESERVE FUND FOR PROMOTION OF FULL FUNDING FOR SPECIAL 
                    EDUCATION.

  In the House, whenever the Committee on Appropriations 
reports a bill or joint resolution, or an amendment thereto is 
offered, or a conference report thereon is submitted that 
provides new budget authority for fiscal year 2002 in excess of 
$6,368,000,000 for programs authorized under the Individuals 
with Disabilities Education Act (IDEA), the chairman of the 
Committee on the Budget may increase the appropriate 
allocations of new budget authority and outlays by the amount 
of that excess, but not to exceed $1,250,000,000 (and adjust 
any other appropriate levels).

SEC. 10. RESERVE FUND FOR ADDITIONAL TAX CUTS AND DEBT REDUCTION.

  If the report provided pursuant to section 202(e)(2) of the 
Congressional Budget Act of 1974, the budget and economic 
outlook: update (for fiscal years 2002 through 2011), estimates 
an on-budget surplus for any of fiscal years 2001 through 2011 
that exceeds the estimated on-budget surplus set forth in the 
Congressional Budget Office's January 2001 budget and economic 
outlook for such fiscal year, the chairman of the Committee on 
the Budget of the House may, in an amount not to exceed the 
increase in such surplus for that fiscal year--
          (1) reduce the recommended level of Federal revenues 
        and make other appropriate adjustments (including the 
        reconciliation instructions) for that fiscal year;
          (2) reduce the appropriate level of the public debt, 
        increase the amount of the surplus, and make other 
        appropriate adjustments for that fiscal year; or
          (3) any combination of paragraphs (1) and (2).

SEC. 11. APPLICATION AND EFFECT OF CHANGES IN ALLOCATIONS AND 
                    AGGREGATES.

  (a) Application.--Any adjustments of allocations and 
aggregates made pursuant to this resolution shall--
          (1) apply while that measure is under consideration;
          (2) take effect upon the enactment of that measure; 
        and
          (3) be published in the Congressional Record as soon 
        as practicable.
  (b) Effect of Changed Allocations and Aggregates.--Revised 
allocations and aggregates resulting from these adjustments 
shall be considered for the purposes of the Congressional 
Budget Act of 1974 as allocations and aggregates contained in 
this resolution.
  (c) Budget Committee Determinations.--For purposes of this 
resolution--
          (1) the levels of new budget authority, outlays, 
        direct spending, new entitlement authority, revenues, 
        deficits, and surpluses for a fiscal year or period of 
        fiscal years shall be determined on the basis of 
        estimates made by the Committee on the Budget of the 
        House of Representatives; and
          (2) such chairman, as applicable, may make any other 
        necessary adjustments to such levels to carry out this 
        resolution.

SEC. 12. COMPLIANCE WITH SECTION 13301 OF THE BUDGET ENFORCEMENT ACT OF 
                    1990.

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

SEC. 13. RESTRICTIONS ON ADVANCE APPROPRIATIONS.

  For purposes of title III of the Congressional Budget Act of 
1974, advance appropriations shall be scored as new budget 
authority for the fiscal year in which the appropriations are 
enacted, except that advance appropriations in excess of the 
levels specified in the joint explanatory statement of managers 
accompanying this resolution for programs, projects, activities 
or accounts identified in such joint statement shall continue 
to be scored as new budget authority in the year in which they 
first become available for obligation.

SEC. 14. FEDERAL EMPLOYEE PAY.

  (a) Findings.--The House of Representatives finds the 
following:
          (1) Members of the uniformed services and civilian 
        employees of the United States make significant 
        contributions to the general welfare of the Nation.
          (2) Increases in the pay of members of the uniformed 
        services and of civilian employees of the United States 
        have not kept pace with increases in the overall pay 
        levels of workers in the private sector, so that there 
        now exists--
                  (A) a 32 percent gap between compensation 
                levels of Federal civilian employees and 
                compensation levels of private sector workers; 
                and
                  (B) an estimated 10 percent gap between 
                compensation levels of members of the uniformed 
                services and compensation levels of private 
                sector workers.
          (3) The President's budget proposal for fiscal year 
        2002 includes a 4.6 percent pay raise for military 
        personnel.
          (4) The Office of Management and Budget has requested 
        that Federal agencies plan their fiscal year 2002 
        budgets with a 3.6 percent pay raise for civilian 
        Federal employees.
          (5) In almost every year during the past 2 decades, 
        there have been equal adjustments in the compensation 
        of members of the uniformed services and the 
        compensation of civilian employees of the United 
        States.
  (b) Sense of the House of Representatives.--It is the sense 
of the House of Representatives that rates of compensation for 
civilian employees of the United States should be adjusted at 
the same time, and in the same proportion, as are rates of 
compensation for members of the uniformed services.

SEC. 15. ASSET BUILDING FOR THE WORKING POOR.

  (a) Findings.--Congress find the following:
          (1) For the vast majority of United States 
        households, the pathway to the economic mainstream and 
        financial security is not through spending and 
        consumption, but through savings, investing, and the 
        accumulation of assets.
          (2) One-third of all Americans have no assets 
        available for investment and another 20 percent have 
        only negligible assets. The situation is even more 
        serious for minority households; for example, 60 
        percent of African-American households have no or 
        negative financial assets.
          (3) Nearly 50 percent of all children in America live 
        in households that have no assets available for 
        investment, including 40 percent of Caucasian children 
        and 73 percent of African-American children.
          (4) Up to 20 percent of all United States households 
        do not deposit their savings in financial institutions 
        and, thus, do not have access to the basic financial 
        tools that make asset accumulation possible.
          (5) Public policy can have either a positive or a 
        negative impact on asset accumulation. Traditional 
        public assistance programs based on income and 
        consumption have rarely been successful in supporting 
        the transition to economic self-sufficiency. Tax 
        policy, through $288,000,000,000 in annual tax 
        incentives, has helped lay the foundation for the great 
        middle class.
          (6) Lacking an income tax liability, low-income 
        working families cannot take advantage of asset 
        development incentives available through the Federal 
        tax code.
          (7) Individual Development Accounts have proven to be 
        successful in helping low-income working families save 
        and accumulate assets. Individual Development Accounts 
        have been used to purchase long-term, high-return 
        assets, including homes, postsecondary education and 
        training, and small business.
  (b) Sense of Congress.--It is the sense of Congress that the 
Federal tax code should support a significant expansion of 
Individual Development Accounts so that millions of low-income, 
working families can save, build assets, and move their lives 
forward; thus, making positive contributions to the economic 
and social well-being of the United States, as well as to its 
future.

SEC. 16. FEDERAL FIRE PREVENTION ASSISTANCE.

  (a) Findings.--Congress finds the following:
          (1) Increased demands on firefighting and emergency 
        medical personnel have made it difficult for local 
        governments to adequately fund necessary fire safety 
        precautions.
          (2) The Government has an obligation to protect the 
        health and safety of the firefighting personnel of the 
        United States and to ensure that they have the 
        financial resources to protect the public.
          (3) The high rates in the United States of death, 
        injury, and property damage caused by fires 
        demonstrates a critical need for Federal investment in 
        support of firefighting personnel.
  (b) Sense of Congress.--It is the sense of Congress that the 
Government should support the core operations of the Federal 
Emergency Management Agency by providing needed fire grant 
programs to assist our firefighters and rescue personnel as 
they respond to more than 17,000,000 emergency calls annually. 
To accomplish this task, Congress supports preservation of the 
Assistance to Firefighters grant program. Continued support of 
the Assistance to Firefighters grant program will enable local 
firefighters to adequately protect the lives of countless 
Americans put at risk by insufficient fire protection.

SEC. 17. SALES TAX DEDUCTION.

  (a) Findings.--The House finds that--
          (1) in 1986 the ability to deduct State sales taxes 
        was eliminated from the Federal tax code;
          (2) the States of Tennessee, Texas, Wyoming, 
        Washington, Florida, Nevada, and South Dakota have no 
        State income tax;
          (3) the citizens of those seven States continue to be 
        treated unfairly by paying significantly more in taxes 
        to the Government than taxpayers with an identical 
        profile in different State because they are prohibited 
        from deducting their State sales taxes from their 
        Federal income taxes in lieu of a State income tax;
          (4) the design of the Federal tax code is 
        preferential in its treatment of States with State 
        income taxes over those without State income taxes;
          (5) the current Federal tax code infringes upon 
        States' rights to tax their citizens as they see fit in 
        that the Federal tax code exerts unjust influence on 
        States without State income taxes to impose one their 
        citizens;
          (6) the current surpluses that our Government holds 
        provide an appropriate time and opportunity to allow 
        taxpayers to deduct either their State sales taxes or 
        their State income taxes from their Federal income tax 
        returns; and
          (7) over 50 Members of the House have cosponsored 
        legislation to restore the sales tax deduction option 
        to the Federal tax code.
  (b) Sense of House.--It is the sense of the House of 
Representatives that the Committee on Ways and Means should 
consider legislation that makes State sales tax deductible 
against Federal income taxes.

SEC. 18. FUNDING FOR GRADUATE MEDICAL EDUCATION AT CHILDREN'S TEACHING 
                    HOSPITALS

  It is the sense of Congress that:
          (1) Function 550 of the President's budget should 
        include an appropriate level of funding for graduate 
        medical education conducted at independent children's 
        teaching hospitals in order to ensure access to care by 
        millions of children nationwide.
          (2) An emphasis should be placed on the role played 
        by community health centers in underserved rural and 
        urban communities. An increase in funding for community 
        health centers should not come at the expense of the 
        Community Access Program. Both programs should be 
        funded adequately, with the intention of doubling 
        funding for increased capacity for community health 
        centers, in addition to keeping the Community Access 
        Program operational.
          (3) The medicare program should emphasize such 
        preventive medical services as those provided by vision 
        rehabilitation professionals in saving Government funds 
        and preserving the independence of a growing number of 
        seniors in the coming years.
          (4) Funding under function 550 should also reflect 
        the importance of the Ryan White CARE Act to persons 
        afflicted with HIV/AIDS. Funds allocated from the CARE 
        Act serve as the safety net for thousands of low-income 
        people living with HIV/AIDS who reside in metropolitan 
        areas but are ineligible for entitlement programs. 
        Moreover, the CARE Act provides critically needed 
        grants directly to existing community-based clinics and 
        public health providers to develop and deliver both 
        early and ongoing comprehensive services to persons 
        with HIV/AIDS.

SEC. 19. CONCURRENT RETIREMENT AND DISABILITY BENEFITS TO RETIRED 
                    MEMBERS OF THE ARMED FORCES.

  (a) Findings.--Congress finds that the Secretary of Defense 
is the appropriate official for evaluating the existing 
standards for the provision of concurrent retirement and 
disability benefits to retired members of the Armed Forces and 
the need to change these standards.
  (b) Sense of Congress.--It is the sense of Congress that--
          (1) the Secretary of Defense should report to the 
        congressional committees of jurisdiction on the 
        provision of concurrent retirement and disability 
        benefits to retired members of the Armed Forces;
          (2) the report should address the number of 
        individuals retired from the Armed Forces who would 
        otherwise be eligible for disability compensation, the 
        comparability of the policy to Office of Personnel 
        Management guidelines for civilian Federal retirees, 
        the applicability of this policy to prevailing private 
        sector standards, the number of individuals potentially 
        eligible for concurrent benefits who receive other 
        forms of Federal assistance and the cost of that 
        assistance, and alternative initiatives that would 
        accomplish the same end as concurrent receipt of 
        military retired pay and disability compensation;
          (3) the Secretary of Defense should submit 
        legislation that he considers appropriate; and
          (4) upon receiving such report, the committees of 
        jurisdiction, working with the Committees on the Budget 
        of the House and Senate, should consider appropriate 
        legislation.

                                
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