[House Report 107-376]
[From the U.S. Government Publishing Office]



107th Congress 
 2d Session             HOUSE OF REPRESENTATIVES                 Report
                                                                107-376
_______________________________________________________________________

                                     


                         CONCURRENT RESOLUTION

                         ON THE BUDGET--FISCAL

                               YEAR 2003

                               __________

                              R E P O R T

                                 of the

                        COMMITTEE ON THE BUDGET

                        HOUSE OF REPRESENTATIVES

                              to accompany

                            H. Con. Res. 353

ESTABLISHING THE CONGRESSIONAL BUDGET FOR THE UNITED STATES GOVERNMENT 
FOR FISCAL YEAR 2003 AND SETTING FORTH APPROPRIATE BUDGETARY LEVELS FOR 
                EACH OF FISCAL YEARS 2004 THROUGH 20007

                             together with

                     ADDITIONAL AND MINORITY VIEWS




 March 15, 2002.--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 of the Budget Resolution (Table 1)......    11
    Comparison of Economic Assumptions (Table 2).................    12
    Security for Ourselves and Our Families' Future..............    12
Revenue..........................................................    17
    Comparison of Total Revenues for President's Request and 
      Committee Recommendation (Table 3).........................    18
    Comparison of On-Budget Revenues for President's Request and 
      Committee Recommendation (Table 4).........................    19
    Comparison of Total Revenues for OMB Baseline and Committee 
      Recommendation (Table 5)...................................    19
    Comparison of Total Revenues, as Percentage of GDP, for OMB 
      Baseline and Committee Recommendation (Table 6)............    20
    OMB Baseline Revenues by Source, in Billions of Dollars 
      (Table 7)..................................................    20
    OMB Baseline Revenues by Source, as Percent of GDP (Table 8).    20
    Tax Expenditure Estimates by Budget Function, Fiscal Years 
      2002-2006 (Table 9)........................................    22
Function-by-Function Presentation:
    050 National Defense.........................................    28
    150 International Affairs....................................    30
    250 Science, Space and Technology............................    32
    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......    45
    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.......................................    61
    900 Net Interest.............................................    63
    920 Allowances...............................................    65
    950 Undistributed Offsetting Receipts........................    66
Summary Tables:
    Budget Resolution Total Spending and Revenue (Table 10)......    68
    Budget Resolution Discretionary Spending (Table 11)..........    70
    Budget Resolution Mandatory Spending (Table 12)..............    72
    Committee Recommendation Minus the President's Request: 
      President Total Spending and Revenues (Table 13)...........    74
    Committee Recommendation Compared to 2002: Total Spending and 
      Revenues (Table 14)........................................    76
    Committee Recommendation Compared to 2002: Percentage Change 
      (Table 15).................................................    78
Section-by-Section...............................................    81
The Congressional Budget Process.................................    89
    Appropriations Committee.....................................    89
    Authorizing Committees.......................................    91
    Enforcement..................................................    92
Enforcing the Budget Resolution..................................    93
Statutory Controls Over the Budget...............................    95
    Discretionary Spending Limits................................    96
    Pay-As-You-Go Requirements...................................    97
Votes of the Committee...........................................    99
Additional Report Language.......................................   119
Other Matters To Be Discussed Under the Rules of the House.......   127
    Committee on the Budget Oversight Findings and 
      Recommendations............................................   127
    New Budget Authority, Entitlement Authority, and Tax 
      Expenditures...............................................   127
    Additional and Minority Views................................   128
Appendix--The Concurrent Resolution on the Budget................   143
                                                                       
107th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     107-376

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



 
         CONCURRENT RESOLUTION ON THE BUDGET--FISCAL YEAR 2003

                                _______
                                

 March 15, 2002.--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 the Budget, submitted the following

                              R E P O R T

                             together with

                     ADDITIONAL AND MINORITY VIEWS

                    [To accompany H. Con. Res. 353]
                            A WARTIME BUDGET

                       to Secure America's Future

            THE HOUSE BUDGET RESOLUTION FOR FISCAL YEAR 2003

                              ----------                              


                                Summary

    America is at war. It is not a skirmish or a police action 
or a peacekeeping operation. It is a full-scale military 
conflict against a well-armed, stealthy, and widely dispersed 
enemy whose members may spend years planning and training for 
one, often suicidal action--an action such as the vicious 
assault on Americans that occurred on 11 September 2001.
    It is a war that requires steadfast resolve, and it may 
continue for years. At the same time, Americans must face up to 
a range of other public concerns demanding their attention. 
Doing so requires an ability to choose priorities and balance 
interests. Such is the balance maintained by this budget 
resolution for fiscal year 2003.
    It is a wartime budget that provides the three fundamental 
securities the Government is obliged to protect: national 
security, economic security, and personal security.

   Security for the Nation: This plan supports the 
        President's request for winning the war against 
        terrorism overseas and enhancing the safety of American 
        homeland. In addition, it promotes scientific research 
        that can speed the discovery of technologies capable of 
        improving the lives of all Americans; and it keeps 
        promises to America's veterans.

   Security of a Growing Economy: The budget returns to 
        the practice of paying down debt, further easing the 
        burden of Government on the economy. It includes the 
        recently enacted economic recovery and worker 
        assistance bill, and provides for an additional $28 
        billion in tax relief over the next 5 years. It further 
        contributes to the economy through investments in 
        energy, transportation, and agriculture.

   Security for Ourselves and Our Families' Future: 
        Because America is a community of individuals, the 
        budget helps Americans pursue their own destinies--by 
        supporting education and health care, safeguarding the 
        environment, and protecting retirement security.

    The remainder of this document provides policy detail of 
the ways in which this balanced budget contributes to the 
Government's principal task: Securing America's Future.

                           A Balanced Budget

    This budget is numerically balanced in fiscal year 2003, 
with the sole exception of recently enacted emergency 
legislation to support the economic recovery and help displaced 
workers. The Chairman's Mark calls for $2.077 trillion in tax 
revenue in fiscal year 2003, and $2.123 trillion in outlays. 
The difference of $45.6 billion is accounted for by the Job 
Creation and Worker Assistance Act. This job creation measure, 
signed by the President on 9 March 2002, was designated an 
emergency measure--providing needed support for the economy's 
recovery from September's terrorist attacks. The measure also 
provides much-needed help for people out of work.
    The budget also sets fiscal policy on a path to balance 
without exception by fiscal year 2004. This will allow the 
Government to resume repayment of the public debt.

                    Responding to the Triple Threat

    It is widely understood that a balanced budget is a proper 
benchmark under normal political and economic circumstances. 
But even balanced budget amendment proposals allow flexibility 
when emergencies occur, such as wars or economic recessions. In 
such emergencies, the balanced budget requirement is to be 
temporarily suspended.
    Americans have endured three extraordinary challenges since 
the middle of 2001: a national emergency resulting from 
terrorist attacks on the American homeland; a subsequent war 
against terrorism; and an economic slowdown once considered 
severe enough to qualify as a recession. Any one of these would 
qualify as an exception under most balanced budget amendments. 
More important, the American public--recently made accustomed 
to swelling budget surpluses--has appeared willing to tolerate 
short-term deficits to contend with the Nation's crises.

                        Security for the Nation

    Ensuring the Nation's security is the highest obligation of 
the Federal Government. If a nation cannot defend itself and 
its citizens, none of its other activities really matter.
    For America today, the most prominent role of national 
defense is the war against terrorism. This budget fully 
supports the President's commitment not just to fight the war, 
but to win it. The budget also enhances protections of American 
homeland, promotes scientific research that can lead to 
technological advances in the future, and keeps America's 
promises to the Nation's military veterans.

                   Winning the War Against Terrorism

    The resolution provides funding consistent with the 
President's program to combat terrorism. The administration has 
requested $27.3 billion in budget authority [BA] for this 
purpose in fiscal year 2003, a $16.8-billion, or 260-percent, 
increase over fiscal year 2002 (including fiscal year 2002 
emergency spending of $3.5 billion in BA). Total national 
defense funding would be $393.8 billion in BA in fiscal year 
2003, and $2.129 trillion over the next 5 years.
    Specific anti-terrorism measures supported by this budget 
include the following:

   Forward Deployment: The resolution supports 250,000 
        forward-deployed (in theaters of operation) troops in 
        the war against terrorism. Although the number of 
        combat personnel in areas such as Afghanistan is small, 
        they must be supported by large numbers of logistical, 
        intelligence support, and other personnel in adjacent 
        land areas and at sea.

   Intelligence Enhancements: The budget supports an 
        increase in funding for programs found effective in the 
        war against terrorism in Afghanistan, including at 
        least $3 billion to improve intelligence gathering and 
        computer networking. Intelligence programs in 
        particular are intended to provide forewarning for 
        potential future terrorist attacks.

   Unmanned Aerial Vehicles [UAVs]: The resolution 
        accommodates the President's request for $158 million 
        for missile-firing Predator drones like those used for 
        the first time against the Taliban. Another $629 
        million will speed production of Global Hawk, the long-
        range UAV that also debuted in Afghanistan.

   Precision Munitions: The budget provides $1.6 
        billion to buy 45,000 laser-guided bomb kits and 33,000 
        new satellite-guided bomb kits. It emphasizes precision 
        munitions, intended to maximize military effectiveness 
        while minimizing both collateral damage and 
        vulnerability of U.S. aircrews.

   Space-Based Radar: The budget accommodates one of 
        the President's top priorities: development of a 
        constellation of satellites that would track moving 
        vehicles on the ground as well as aircraft. This 
        program would expand on the success enjoyed by Joint 
        Stars, an aircraft-based radar that has the capability 
        of tracking vehicle movement.

    These provisions are included in overall national defense 
levels that should accommodate defense ``transformation'' 
(modernizing the force for 21st century combat) while 
maintaining readiness and supporting armed forces personnel. 
For example, the resolution provides funds for a 4.1-percent 
across-the-board pay raise for military personnel, beginning in 
January 2003. Further details of the overall defense budget 
appear in the discussion under Function 050.

                         Securing the Homeland

    In the aftermath of the terrorist attacks of 11 September, 
and the subsequent threat of biological agents (such as 
anthrax) being used as weapons, the budget resolution reflects 
the priority of enhancing the security of America's homeland. 
It proposes $37.7 billion for homeland security activities in 
fiscal year 2003, an increase of $8.4 billion, or 29 percent, 
over fiscal year 2002 (which included emergency spending of 
$9.8 billion in BA). Major policy initiatives supported by this 
funding level (distributed among various budget functions) 
include the following:

   Grants to First Responders: The resolution funds a 
        new Federal grant program to help States and localities 
        respond to acts of terrorism. The program--to be 
        administered by the Federal Emergency Management 
        Administration--provides $3.5 billion in fiscal year 
        2003. The grants will allow local police, fire 
        departments, and emergency rescue teams to hire needed 
        employees, train staff, enhance preparedness, and 
        purchase equipment to rescue victims of terrorism in 
        the critical early hours after an attack.

   Defending Against Biological Terrorism: Spending for 
        the Department of Health and Human Services' 
        bioterrorism efforts rises from $2.8 billion in fiscal 
        year 2002 to $4.3 billion in fiscal year 2003. Funds 
        would be used to counter bioterrorism through 
        enhancements in hospitals and other public health 
        facilities, research and development, pharmaceutical 
        stockpiles, and a national information network for 
        better detection of biological attacks and natural 
        disease outbreaks.

   Securing the Nation's Borders: For the Immigration 
        and Naturalization Service, the budget provides an 
        increase of $700 million, or 12 percent (excluding the 
        fiscal year 2002 emergency supplemental). This will 
        support hiring 570 Border Patrol agents and 1,160 
        inspection agents. The budget also includes $380 
        million for a new visa tracking system. For the Customs 
        Service, the proposed budget is $2.3 billion, an 
        increase of $146 million, or 7 percent. Of the total, 
        $744 million is for Northern Border Security--an 
        increase of $212 million, or 39.8 percent--and $684 
        million for Maritime Security--an increase of $329 
        million, or 92.7 percent.

   Securing Maritime Borders: The budget provides $6.1 
        billion for the Coast Guard, an increase of more than 
        $1 billion (not including the fiscal year 2002 
        emergency supplemental), or 20 percent. After 11 
        September, the Coast Guard's port security mission grew 
        from approximately 1 percent to 2 percent of daily 
        operations to between 50 percent and 60 percent. The 
        Coast Guard also has important national security 
        missions such as interdiction of illegal migrants, drug 
        interdiction, and port security.

   Aviation Security: Congress created the 
        Transportation Security Administration to improve 
        aviation security by accelerating deployment of 
        explosive-detection systems and other airport security 
        equipment; facilitate passenger and baggage inspection; 
        and deploy more Federal Air Marshals. The budget 
        provides $4.8 billion in budget resources: $2.5 billion 
        in new budget authority and $2.2 billion in offsetting 
        collections through a combination of new passenger and 
        air carrier fees.

                     Investing in Future Technology

    The resolution provides $22.7 billion in BA for science, an 
increase of $675 million, or 2.1 percent, over 2002. It 
reflects 2.6-percent annual growth in this function over the 
next 5 years. Key provisions include the following:

   National Science Foundation: The resolution enhances 
        the Nation's commitment to science and provides $4.0 
        billion for the National Science Foundation's research 
        and related activities, an increase of $374 million 
        over fiscal year 2002.

   NASA: The budget provides $15 billion for the 
        National Aeronautics and Space Administration [NASA], 
        1.4-percent increase over fiscal year 2002. This is in 
        addition to the 5-percent increase NASA received in 
        2002. The funding level is consistent with the NASA 
        Advisory Council's recommendations.

                    Keeping the Promise to Veterans

    Mindful of those who have made past contributions to the 
Nation's security, the budget also continues a record of 
support for America's veterans.

   Veterans Health Care: The budget includes $23.9 
        billion for VA medical care, an increase of $2.6 
        billion, or 12.0 percent, above the fiscal year 2002 
        levels. The budget does not assume the $1,500 
        deductible for priority 7 veterans (those who neither 
        have service-connected disabilities nor are low-
        income). The increased discretionary funding will 
        ensure that veterans receive high-quality health care, 
        and accurate and timely entitlement benefits.

   Concurrent Receipt: The resolution assumes 
        sufficient funding to accommodate an increase in 
        military retirement benefits a veteran can collect 
        without the current-law offset required when the 
        veteran also is collecting disability compensation from 
        the Department of Veterans Affairs [VA]. In a 5-year 
        phase-in, the budget assumes an increase in military 
        retirement payments, currently subject to offset, for 
        those with VA disability ratings of 60 percent or 
        greater, equal to what would be received under full 
        concurrent receipt.

                     Security of a Growing Economy

    In his first inaugural address, President Reagan said: ``We 
are a Nation that has a Government--not the other way around.'' 
His point was confirmed by Americans' response to the assault 
of 11 September. Through large and small acts of courage, of 
generosity, and of resolve, they proved the conviction that 
America is great because Americans are good.
    After the attacks, it was frequently said that Americans 
needed quickly to ``return to normalcy,'' to restore their way 
of life; otherwise, the argument went, the terrorists would 
already have won.
    But there was a more fundamental reason for restoration: 
Americans' way of life is the Nation's strength. It sustains 
America's institutions, including government, and one of its 
clearest expressions is the Nation's economy. Indeed, the 
Government secures its own stability by maintaining conditions 
that promote economic growth--because when the economy provides 
growing opportunities and prosperity, it strengthens Americans' 
support for their Nation and its Government.
    Today, the U.S. economy appears poised to return to solid 
non-inflationary growth following the difficult economic 
environment that existed over the past year and a half, 
including the sharp slowdown in growth that began in the second 
half of 2000 and the downturn in real gross domestic product 
[GDP] after the terrorist attacks. Aggressive policy actions by 
the President, the Congress, and the Federal Reserve combined 
to help keep the downturn relatively mild and brief. The quick 
return to growth is a tribute to the resiliency and flexibility 
of the Nation's economy and to the people who make it work. 
Nevertheless, even in a relatively mild downturn, many 
individuals face significant hardships through lost wages, 
jobs, and declines in business--a loss of economic security.
    The U.S. economy must return to a path of higher growth and 
employment, as envisioned in this budget resolution, to ensure 
that economic security will be realized.

             Recent Economic Performance and Policy Actions

    Following the significant slowdown that began in the second 
half of 2000, the U.S. economy experienced substantial 
disruptions during 2001. Real GDP, which had been growing at 
more than a 4-percent annual rate over the late 1990's, slowed 
to only a 1.6 percent annual rate of growth in the second half 
of 2000.
    During 2001, the economy weakened further with a brief 
decline in real GDP, a decline in payroll employment, and a 
rising unemployment rate. The terrorist acts of 11 September 
threw a shock through the economy--a blow that apparently drove 
a slow economy into negative growth. The National Bureau of 
Economic Research--the independent organization recognized as 
the official arbiter of business cycle turning points--said it 
was not clearly apparent until after the attacks that the 
economy was experiencing a decline sufficiently severe to be 
called a ``recession.''
    Policymakers had been responding throughout the year. In 
January 2001, the Federal Reserve began a series of aggressive 
interest rate reductions. From January through August, the Fed 
cut the Federal funds rate by 300 basis points, from 6.5 
percent to 3.5 percent. Meanwhile, Congress and the President 
produced the Economic Growth and Tax Relief Reconciliation Act 
of 2001 [EGTRRA]--including marginal income tax rate reductions 
and a tax rebate--which quickly put money in the hands of 
consumers to help keep the economy growing. Following the 11 
September attacks, monetary and fiscal policy acted to provide 
additional support for the economy. The Federal Reserve 
continued to quickly reduce interest rates, lowering the 
Federal funds rate an additional 175 basis points to 1.75 
percent--the lowest level in 4 decades.
    The Government's actions helped keep the downturn 
relatively mild. It now appears the economy will have 
experienced only 1 quarter of decline in real GDP--the 1.3-
percent annual rate of decline in the 3d quarter of 2001. 
Although most forecasters expected a continued decline in real 
GDP, preliminary data show the surprising result that real GDP 
resumed its growth--at a 1.4-percent annual rate--in the 4th 
quarter of 2001. Other incoming data available at this time--
including lower unemployment insurance claims; lower 
unemployment rates and an increase in nonfarm payroll jobs in 
February; a strong rebound in non-automotive retail sales in 
January and February; an upturn in industrial production in 
January and February--support the view that the economy resumed 
its expansion early this year. Many forecasters are now 
expecting real GDP growth to exceed 2 percent at an annual rate 
in the 1st quarter of 2002. If these preliminary data hold true 
and the recovery continues, this will have been the mildest 
recession on record for the post-World War II era.
    The economy's recent performance has differed sharply from 
what typically occurs during recessions. In most recessions, a 
chain-reaction occurs as declines in one sector spill over into 
declines in other sectors, leading to a deeper aggregate 
decline. In the recent episode, some sectors certainly 
experienced significant deterioration, particularly 
manufacturing and investment: manufacturing activity declined 
sharply with manufacturing industrial production falling nearly 
8 percent from June 2000 to December 2001; nonresidential fixed 
investment spending fell by more than 9 percent from the 4th 
quarter of 2000 to the 4th quarter of 2001. In labor markets, 
the number of nonfarm payroll jobs declined by 1.5 million from 
March to December 2001, and the unemployment rate rose from 3.9 
percent in October 2000 to 5.8 percent in December 2001. So, 
the downturn has not been without costs.
    But contrary to what typically happens, the declines in 
these areas did not spill over significantly into the largest 
component of GDP: personal consumption expenditures. In fact, 
quarterly measures of real consumption spending continued to 
increase throughout 2001, even surging by 6 percent at an 
annual rate in the 4th quarter--the period shortly after the 
September attacks.
    Clearly, the well-timed fiscal policy action from the tax 
cut package passed in June, with its marginal income tax rate 
reductions and the associated rebate checks distributed over 
the following several months, helped to bolster disposable 
personal income, consumer confidence, and spending at precisely 
the time it was needed. At the time of its passage, one 
respected private forecaster (Macroeconomic Advisers of St. 
Louis) labeled the tax cut package a ``Fiscal Policy 
Bullseye,'' stating: ``* * * once in a while we get lucky, and 
fiscal policy delivers to the economy a well-timed dose of 
stimulus. This year's tax cut is perhaps the best such example 
in recent memory.'' The Federal Reserve's interest rate cuts 
also played an important role, reducing credit and borrowing 
costs and allowing automobile manufacturers to provide special 
low-cost financing deals that helped boost auto purchases.
    The recent enactment of the Job Creation and Worker 
Assistance Act of 2002 is an additional example of a well-
targeted fiscal policy action, directed precisely at the 
economy's areas of weakness: higher unemployment and lower 
investment. The extension of unemployment insurance benefits 
will support the finances of the longer-term unemployed. The 
provisions allowing 30-percent expensing of equipment and 
software will promote business investment spending--a 
critically important component for promoting a continuation of 
the era of higher labor productivity growth.

                           Following Through

    This budget demonstrates the lessons learned from recent 
fiscal and tax policy. From 1998 through 2001, Congress reduced 
the Government's debt held by the public by nearly a half 
trillion dollars. The practice sprang from the prudent and 
typically American notion that in times of plenty, one should 
repay one's debts. But it may have had salutary economic 
effects as well, by easing government's burden on the economy.
    Following a temporary departure from this path--caused by 
the national emergency that resulted from September's terrorist 
attacks--this budget calls for a return to public debt 
reduction by 2004--and even sooner if the economy grows faster 
than expected. Over the 5-year budget period, 2003-2007, the 
budget envisions reducing public debt by a net total of $181 
billion.
    The budget also applies suitable tax policy. It assumes no 
tax increases. It includes the recently enacted Job Creation 
and Worker Assistance Act. The budget also accommodates $28 
billion in additional tax relief--subject to the discretion of 
the Committee on Ways and Means. These measures could include 
incentives for charitable giving, energy, and education.

                 Additional Economic Security Measures

    The budget also support various other policies that will 
help sustain long-term economic growth. These include the 
following:

   Energy: The resolution assumes the administration's 
        discretionary spending proposals, which fulfill the 
        President's National Energy Policy recommendations to 
        focus Federal investment on future energy solutions.

   Transportation: The resolution fully funds highways 
        and highway safety programs at levels guaranteed by the 
        Transportation Equity Act for the 21st Century [TEA-
        21], which automatically adjusts highway spending based 
        on receipts from Federal highway user taxes. But 
        because of the unforseen magnitude of the swing in 
        revenue estimates from fiscal year 2002 to fiscal year 
        2003, State highway and highway safety planning and 
        construction programs have been confronted with 
        significant uncertainty about their future funding 
        levels.
      Therefore, the resolution provides an additional $1.2 
        billion in outlays for highway and highway safety 
        spending for fiscal year 2003, which provides 
        sufficient outlays to restore the $4.4 billion in 
        budget authority that would be cut in fiscal year 2003 
        were the Revenue Aligned Budget Authority [RABA] 
        provision of TEA-21 implemented.

   Agriculture: The budget resolution includes full 
        funding of the House-passed farm bill (H.R. 2646). 
        These funds will maintain a safety net for farmers and 
        provide long-term certainty to benefit them in their 
        planning efforts. The resolution increases critical 
        homeland security initiatives by $146 million within 
        the Department of Agriculture consistent with the 
        President's recommendations, including an increase of 
        $48 million for animal health monitoring, and a $28-
        million increase for the Food Safety and Inspection 
        Services, to enhance consumer protection efforts 
        regarding meat, poultry, and egg products.

             Economic Assumptions of the Budget Resolution

    The budget resolution uses the economic assumptions 
developed by the Office of Management and Budget [OMB] and 
presented in Analytical Perspectives, Budget of the United 
States Government, Fiscal Year 2003 (see Table 1). OMB 
forecasts that real GDP will increase 0.7 percent from 2001 to 
2002, followed by a stronger growth rates in subsequent years 
as the economy rebounds and returns to expansion. For the 2003-
2007 projection period, real GDP growth is initially stronger, 
growing at 3.8 percent in 2003, 3.7 percent in 2004, and 3.6 
percent in 2005, before settling back to 3.2 percent in 2006 
and a trend rate of 3.1 percent by 2007. With the stronger 
growth in the economy, the civilian unemployment rate is 
expected to decline steadily, from 5.9 percent in 2002 to 4.9 
percent in 2006. Inflation is expected to remain at relatively 
low levels, with the GDP chain-weighted price index inflation 
projected to remain below 2 percent at an annual rate 
throughout the projection, and consumer price index [CPI] 
inflation rising gradually from 1.8 percent in 2002 to 2.4 
percent for 2005-2007. The 3-month Treasury bill rate is 
expected to increase as the economy rebounds, rising from a 
2.2-percent annual average for 2002 to 4.3 percent in 2005-
2007. The 10-year Treasury note rate is projected to remain 
relatively flat at 5.1 percent for 2001-2005, before rising 
slightly to 5.2 percent in 2006-2007.

                             TABLE 1.--ECONOMIC ASSUMPTIONS OF THE BUDGET RESOLUTION
                                           [Calendar years 2002-2007]
----------------------------------------------------------------------------------------------------------------
                                                              2002     2003     2004     2005     2006     2007
----------------------------------------------------------------------------------------------------------------
Real GDP (percentage change year over year)...............     0.7      3.8      3.7      3.6      3.2      3.1
GDP Price Index (percentage change year over year)........     2.0      1.8      1.7      1.8      1.9      1.9
Consumer Price Index (percentage change year over year)...     1.8      2.2      2.3      2.4      2.4      2.4
Unemployment Rate (percent, annual average)...............     5.9      5.5      5.2      5.0      4.9      4.9
3-month Treasury Bill Rate (percent, annual average)......     2.2      3.5      4.0      4.3      4.3      4.3
10-year Treasury Note Rate (percent, annual average)......     5.1      5.1      5.1      5.1      5.2      5.2
----------------------------------------------------------------------------------------------------------------

                   Comparison of Economic Assumptions

    A comparison of economic assumptions reveals that the OMB 
assumptions are roughly similar to those of the Congressional 
Budget Office [CBO] and the private consensus forecast as 
revealed by the Blue Chip consensus (see Table 2). The 
comparison forecasts shown in the table are CBO's updated March 
2002 economic projection and the March 2002 Blue Chip 
consensus. For 2002, CBO and Blue Chip forecast significantly 
higher real GDP growth than OMB--1.7 percent for CBO and 2.0 
percent for Blue Chip, compared to 0.7 percent for OMB. The 
relatively stronger growth rates for CBO and Blue Chip in 2002 
result in somewhat lower real growth rates relative to OMB for 
2003-2007. That is, CBO and Blue Chip expect the initial stages 
of economic recovery to be stronger and to occur sooner than 
does OMB. These differences mean the OMB economic projections 
start off being more conservative by a significant degree 
relative to CBO and Blue Chip. By the last 2 years of the 
projection period, OMB, CBO, and Blue Chip projections for real 
GDP growth are nearly identical, in the 3.1-percent to 3.2-
percent range.
    In the initial years of the projections, the inflation 
comparisons are mixed, but for the 2004-2007 period, the OMB 
and CBO projections show somewhat lower inflation than Blue 
Chip, by roughly 0.2 percentage point to 0.4 percentage point, 
depending on the specific point of comparison. The OMB 
inflation projection, in turn, generally is slightly lower than 
CBO by about 0.1 percentage point to 0.2 percentage point. 
OMB's projection for the unemployment rate is nearly identical 
to that of the Blue Chip, while CBO projects a higher 
unemployment rate throughout the projection by 0.2 percentage 
point to 0.3 percentage point. OMB's interest rate projections 
are generally somewhat lower than those of CBO and Blue Chip. 
For example, CBO expects a larger and faster increase in the 3-
month Treasury bill rate than OMB and Blue Chip: CBO's 
projection reaches a 4.9-percent rate in 2004, compared to 4.3 
percent for Blue Chip and 4.0 percent for OMB in that year. 
OMB's projection for the ultimate level of the 3-month Treasury 
bill rate, 4.3 percent, is somewhat lower than Blue Chip's 4.7 
percent and CBO's 4.9 percent. For the 10-year Treasury note 
rate, OMB's projection of 5.1 percent to 5.2 percent over the 
projection period is lower than CBO's and Blue Chip's paths, 
showing increases to the 5.8 percent [CBO] and 5.9 percent 
[Blue Chip] levels.

                                  TABLE 2.--COMPARISON OF ECONOMIC ASSUMPTIONS
                                           [Calendar years 2002-2007]
----------------------------------------------------------------------------------------------------------------
                                                              2002     2003     2004     2005     2006     2007
----------------------------------------------------------------------------------------------------------------
Real GDP (percentage change year over year):
    OMB...................................................     0.7      3.8      3.7      3.6      3.2      3.1
    CBO...................................................     1.7      3.4      3.5      3.2      3.2      3.2
    Blue Chip.............................................     2.0      3.6      3.4      3.3      3.2      3.1
GDP Price Index (percentage change year over year):
    OMB...................................................     2.0      1.8      1.7      1.8      1.9      1.9
    CBO...................................................     1.4      2.0      2.0      2.0      2.0      2.0
    Blue Chip.............................................     1.3      1.8      2.1      2.2      2.2      2.2
Consumer Price Index (percentage change year over year):
    OMB...................................................     1.8      2.2      2.3      2.4      2.4      2.4
    CBO...................................................     1.8      2.5      2.5      2.5      2.5      2.5
    Blue Chip.............................................     1.4      2.4      2.7      2.7      2.8      2.8
Unemployment Rate (percent, annual average):
    OMB...................................................     5.9      5.5      5.2      5.0      4.9      4.9
    CBO...................................................     6.1      5.9      5.4      5.2      5.2      5.2
    Blue Chip.............................................     5.9      5.5      5.2      5.0      5.0      4.9
3-month Treasury Bill Rate (percent, annual average):
    OMB...................................................     2.2      3.5      4.0      4.3      4.3      4.3
    CBO...................................................     2.2      4.5      4.9      4.9      4.9      4.9
    Blue Chip.............................................     2.1      3.4      4.3      4.5      4.7      4.7
10-year Treasury Note Rate (percent, annual average):
    OMB...................................................     5.1      5.1      5.1      5.1      5.2      5.2
    CBO...................................................     5.0      5.5      5.8      5.8      5.8      5.8
    Blue Chip.............................................     5.2      5.6      5.8      5.9      5.9      5.9
----------------------------------------------------------------------------------------------------------------
Sources: OMB, CBO, Blue Chip Economic Indicators (March 10, 2002).

    It is noteworthy that, of the past 32 House budgets, 17 did 
not use CBO economic assumptions--and 5 of those did use OMB. 
Looked at another way, of 21 House budget resolutions adopted 
from fiscal years 1977 through 1996, 11 did not use CBO.

            Security for Ourselves and Our Families' Future

    Personal security is what allows Americans to pursue their 
individual destinies, and fulfill their own lives. As Americans 
do this, freely and within the law, the entire Nation prospers 
from their imagination and productivity. The Government can 
enhance personal security by supporting its building blocks--
which include education, health, natural resources, and 
security in retirement. The Government also should help 
maintain good stewardship of the Nation's natural resources, to 
preserve and nurture them for future generations.

                               Education

    The Chairman's Mark is consistent with the President's 
requested level for education spending. This includes $22 
billion for programs authorized under the No Child Left Behind 
law, including a $1-billion increase for Title I aid to low-
income schools, and a $1-billion reserve fund increase for 
special education. The resolution also adjusts the levels in 
subsequent years to accommodate a 12-percent annual increase in 
spending for the Individuals with Disabilities Education Act 
[IDEA]--a rate of increase that would allow for full funding of 
the program within 10 years. Some key points:

   Special Education: The mark creates a reserve fund 
        for increasing IDEA $1 billion above the 2002 level. 
        This 13-percent increase would bring the overall 
        funding level to $8.53 billion. For 2004 and subsequent 
        years covered by the resolution, the mark raises levels 
        sufficiently to accommodate 12-percent annual increases 
        in IDEA spending, a rate of increase that puts the 
        Federal Government on a 10-year path to meet its full 
        commitment to the States to assist with special 
        education financing.

   Low-Income School Districts: A $1-billion increase 
        is provided for Title I grants to low-income school 
        districts. The increase is to be allocated through the 
        targeted grants formula, which focuses resources on the 
        highest-poverty school districts. Last year, Title I 
        grew by $2.7 billion, a 22-percent increase.

   Reading First: The budget provides a $100-million 
        increase, to $1 billion, for the President's reading 
        initiative. This increase will help the program improve 
        early reading instruction and also prevent more 
        children from being inappropriately steered into 
        special education by addressing reading difficulties at 
        an early age.

   New Elementary and Secondary Education Programs: The 
        resolution also accommodates the following sums for new 
        programs requested by the President: $100 million for 
        loan programs that assist with charter school 
        construction; $50 million for a choice demonstration 
        fund to support research projects encouraging both 
        private and public school choice options; and $25 
        million for a voluntary public school choice program, 
        to improve intradistrict and interdistrict choice 
        options, particularly for parents of children attending 
        low-performing schools.

   Pell Grants: The resolution assumes $549 million to 
        increase Pell Grant funding, enough to maintain the 
        historically high Pell Grant maximum level at $4,000.

                              Health Care

    The budget also supports a variety of measures to protect 
Americans' health and well-being. Among these are the 
following:

   Medicare: The budget provides substantial funds for 
        the Government's health coverage program for seniors, 
        reflecting a fund of $5 billion in 2003, $5 billion in 
        2004, and $350 billion over 10 years for a Medicare 
        modernization and a prescription drug benefit.

   Fighting Bioterrorism: The problem of bioterrorism 
        became a focus of Government activities shortly after 
        the terrorist attacks last September. The Department of 
        Health and Human Services [HHS] is the lead agency in 
        the efforts to prevent and address bio-terrorism. For 
        fiscal year 2003, total spending for HHS's bio-
        terrorism efforts would rise to $4.3 billion, an 
        increase of $1.3 billion, or 45 percent, above the 
        fiscal year 2002 level.
      These funding levels will support critical homeland 
        security initiatives, consistent with the President's 
        recommendations, including the following:

    - The National Pharmaceutical Stockpile--The budget calls 
            for $650 million for the Stockpile and costs 
            related to stockpiling smallpox vaccines and next-
            generation anthrax vaccines currently under 
            development.

    - Facilities Enhancements--The budget counters the threat 
            of bio-terrorism with enhancements in hospitals and 
            other public health facilities, research and 
            development, pharmaceutical stockpile, and a 
            national information network for better detection 
            of biological attacks as well as natural disease 
            outbreaks.

    - Research--A total of $1.7 billion is included in the 
            budget for bio-terrorism research, including 
            genomic sequencing of pathogens, development of an 
            improved anthrax vaccine, and National Institutes 
            of Health [NIH] laboratory and research facilities 
            construction related to bioterrorism.

   The National Institutes of Health: NIH remains a 
        priority. Funding in this resolution accommodates the 
        President's proposal to double NIH's 1998 funding level 
        of $13.6 billion by 2003. To accomplish this, the 2003 
        budget assumes $27.2 billion for NIH, a $3.9 billion 
        increase above the 2002 level.

                            The Environment

    Economic prosperity should go hand-in-hand with good 
stewardship of America's natural resources--resources that 
should be preserved and nurtured for future generations. In 
this regard, the Chairman's Mark is consistent with the 
President's funding level, which includes full funding for the 
Land and Water Conservation Fund at $911 million; a doubling of 
the Environmental Protection Agency's brownfields cleanup 
budget; and an additional $663 million to reduce the National 
Park Service's $4.9 billion backlog in operations and 
maintenance.

                          Retirement Security

    Americans' values include the conviction that one's 
retirement should be secure as well. Among the budget's 
contributions to this are the following:

   Social Security: This program is off-budget and not 
        directly addressed in the budget resolution. 
        Nevertheless, it is well known that Social Security 
        faces serious and growing financial problems that will 
        affect workers, beneficiaries, and the Federal budget 
        by the middle of the next decade. This budget makes a 
        down payment on needed reform by returning to debt 
        reduction. This improves the potential for economic 
        growth, increases national savings, and helps ensure 
        that the Nation will be equipped to provide the real 
        resources necessary to keep Social Security's promise 
        in the future. All Social Security benefits are fully 
        protected under this budget.

   Security for Pensions and Savings: A balanced budget 
        and debt reduction also are among the best measures for 
        securing Americans' private savings and pensions. In 
        addition, the budget supports the President's proposals 
        to strengthen Federal deposit insurance, which insures 
        trillions of dollars of private financial assets. The 
        budget also supports the President's plans to improve 
        management at the Securities and Exchange Commission, 
        and make the commission more responsive to changes in 
        financial markets resulting from global competition and 
        technology.

                Conclusion--The Real Meaning of Balance

    The principle of a balanced budget is more than simply a 
numbers game in which spending and revenue match up. It 
reflects the sense that Members of Congress are controlling the 
budget, not being controlled by it. This can only occur when 
Congress disciplines spending. If lawmakers must resort to 
higher taxes every time the Government's spending demands 
increase, then spending is running away with the budget. 
Instead of raising taxes to match whatever the spending demands 
are, Congress should first determine an appropriate level of 
taxation consistent with economic growth, and then live within 
its means. But for the emergency economic recovery measure 
noted above, that is what this budget does.
    Balance also means balancing the interests of various 
groups of Americans; and this budget does that as well. For 
families, it provides there will be no tax increases. For 
seniors, it fully protects Social Security, and allots $350 
billion over 10 years to modernize Medicare and add a 
prescription drug benefit. For farmers, it fully funds the 
House-passed farm bill (H.R. 2646), which will expand market 
opportunities, maintain an adequate safety net, and provide 
long-term financial stability. Everyone who learns can benefit 
from the budget's education funding; but America's minorities 
can especially benefit from the proposals in this area--
including the President's No Child Left Behind program, his 
Reading First initiative, and his $1 billion increase for low-
income schools under Title I.
    The budget funds these priorities within the broader 
framework of winning the war against terrorism, protecting the 
American homeland, and supporting the economic recovery. That 
is the real meaning of balance expressed by this resolution.
                                REVENUE

                              ----------                              


                            function summary

    The revenue totals reflect all of the Federal Government's 
various tax receipts that are classified as ``on budget.'' This 
includes individual income taxes; corporate income taxes; 
excise taxes, such as the gasoline tax; various other taxes, 
such as estate and gift taxes; and social insurance taxes 
except for Social Security. Customs duties, tariffs, and other 
miscellaneous receipts are also included in the revenue 
function.
    The component of social insurance taxes that is collected 
for the Social Security system, the Old Age and Survivors and 
Disability Insurance [OASDI] payroll tax, is off budget. The 
remaining social insurance taxes (the Hospital Insurance [HI] 
payroll portion of Medicare, the Federal Unemployment Tax Act 
[FUTA] payroll tax, railroad retirement, and other retirement 
systems) are all on budget. Pursuant to the Congressional 
Budget Act of 1974 and the Budget Enforcement Act of 1990, 
Social Security payroll taxes, which constitute slightly more 
than a quarter of all Federal receipts, are not included in the 
budget resolution.

                summary of committee-reported resolution

    The budget resolution calls for $1.532 trillion in on-
budget revenue to be collected in fiscal year 2003, and $8.672 
trillion to be collected from 2003 through 2007. (If Social 
Security taxes were added, the result would be a total of 
$2.077 trillion in total in fiscal year 2003, and $11.698 
trillion over the next 5 years.)
    Under the fiscal year 2003 budget resolution, taxpayers 
would keep $109 billion more of their own money between now and 
2007 than under the February current law baseline. Most of this 
tax relief is for the emergency economic revitalization, job 
creation and worker assistance bill signed by the President on 
9 March 2002. The major Presidential economic security 
initiative restores $81 million to the American people over 6 
years through the Internal Revenue Code. In 2003 alone, tax 
relief totals $44 billion, all but $4.4 billion of which is for 
economic revitalization.
    The economic recovery is expected to build into strong 
future growth, partly due to last year's tax reduction and no 
proposed tax increases in the future. It already appears that 
last year's economic slowdown was less severe than originally 
thought, and the tax relief almost certainly played a role in 
this.
    The budget also accommodates, but does not reconcile, $28 
billion in additional tax relief over 5 years. The particular 
mix of tax policies this amount could entail would be 
determined by the Committee on Ways and Means, but it could 
include incentives for charitable giving, education tax breaks 
for teachers and for families transferring their children out 
of failing schools, and energy conservation, reliability, and 
production provisions. Tariff and other revenue effects of 
various trade initiatives are possible as well.

                      the context of tax reduction

    Just 8 years ago, in 1992, tax revenues were only 17.5 
percent of gross domestic product [GDP]. Even with the 
additional tax relief in this budget, the tax burden on 
Americans will stay historically high, at more than 19 percent 
of GDP. In comparison, the post-World War II average is 18 
percent.
    The Office of Management and Budget projects the Federal 
Government would collect $11.8 trillion in taxes over the next 
5 years under the tax law in effect in February of this year. 
Under the proposals in this budget, tax collections would be 
slightly below $11.7 trillion--a reduction of less than 1 
percent. By comparison, the Federal Government's tax 
collections over the previous 5 years (1997-2001) was $9.1 
trillion.
    After this additional round of tax relief, Federal revenues 
will still grow by 30 percent over the next 5 years, from $1.99 
trillion in 2001 to $2.59 trillion in 2007.

                                                     REVENUE
                                   [On-budget totals, in billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                        2002       2003       2004       2005       2006       2007    2003-2007
----------------------------------------------------------------------------------------------------------------
Total..............................    1,450.3    1,531.9    1,626.6    1,748.0    1,838.0    1,927.2    8,671.7
----------------------------------------------------------------------------------------------------------------

                          REVENUE COMPARISONS

                              ----------                              


  table 3.--comparison of total revenues for president's request and 
                        committee recommendation

                        [In billions of dollars]

                                                                  Amount
Fiscal Year:
    1997 Actual..................................................1,579.3
    1998 Actual..................................................1,721.8
    1999 Actual..................................................1,827.5
    2000 Actual..................................................2,025.2
    2001 Actual..................................................1,991.0
Fiscal Year 2002:
    Administration's Request (February 2002).....................1,946.1
    Committee Level..............................................1,967.5
Fiscal Year 2003:
    Administration's Request (February 2002).....................2,048.1
    Committee Level..............................................2,077.2
Fiscal Year 2004:
    Administration's Request (February 2002).....................2,175.4
    Committee Level..............................................2,200.1
Fiscal Year 2005:
    Administration's Request (February 2002).....................2,338.0
    Committee Level..............................................2,356.2
Fiscal Year 2006:
    Administration's Request (February 2002).....................2,455.3
    Committee Level..............................................2,471.6
Fiscal Year 2007:
    Administration's Request (February 2002).....................2,571.7
    Committee Level..............................................2,592.5

table 4.--comparison of on-budget revenues for president's request and 
                        committee recommendation

                        [In billions of dollars]

                                                                  Amount
Fiscal Year:
    1997 Actual..................................................1,187.3
    1998 Actual..................................................1,306.0
    1999 Actual..................................................1,383.0
    2000 Actual..................................................1,544.6
    2001 Actual..................................................1,483.5
Fiscal Year 2002:
    Administration Request (February 2002).......................1,428.9
    Committee Level..............................................1,450.3
Fiscal Year 2003:
    Administration Request (February 2002).......................1,502.7
    Committee Level..............................................1,531.9
Fiscal Year 2004:
    Administration Request (February 2002).......................1,601.9
    Committee Level..............................................1,626.6
Fiscal Year 2005:
    Administration Request (February 2002).......................1,729.8
    Committee Level..............................................1,748.0
Fiscal Year 2006:
    Administration Request (February 2002).......................1,821.6
    Committee Level..............................................1,838.0
Fiscal Year 2007:
    Administration Request (February 2002).......................1,906.4
    Committee Level..............................................1,927.2

 table 5.--comparison of total revenues for omb baseline and committee 
                             recommendation

                        [In billions of dollars]

                                                                  Amount
Fiscal Year:
    1997 Actual..................................................1,579.3
    1998 Actual..................................................1,721.8
    1999 Actual..................................................1,827.5
    2000 Actual..................................................2,025.2
    2001 Actual..................................................1,991.0
Fiscal Year 2002:
    OMB Projection (January 2002)................................2,010.7
    Committee Level..............................................1,967.5
Fiscal Year 2003:
    OMB Projection (January 2002)................................2,121.1
    Committee Level..............................................2,077.2
Fiscal Year 2004:
    OMB Projection (January 2002)................................2,234.5
    Committee Level..............................................2,200.1
Fiscal Year 2005:
    OMB Projection (January 2002)................................2,365.9
    Committee Level..............................................2,356.2
Fiscal Year 2006:
    OMB Projection (January 2002)................................2,461.3
    Committee Level..............................................2,471.6
Fiscal Year 2007:
    OMB Projection (January 2002)................................2,581.1
    Committee Level..............................................2,592.5

  table 6.--comparison of total revenues, as percent of gdp, for omb 
                 baseline and committee recommendation

                        [In billions of dollars]

                                                                 Percent
Fiscal Year:
    1997 Actual...................................................  19.3
    1998 Actual...................................................  19.9
    1999 Actual...................................................  20.0
    2000 Actual...................................................  20.8
    2001 Actual...................................................  19.6
Fiscal Year 2002:
    OMB Projection (January 2002).................................  19.4
    Committee Level...............................................  19.0
Fiscal Year 2003:
    OMB Projection (January 2002).................................  19.4
    Committee Level...............................................  19.0
Fiscal Year 2004:
    OMB Projection (January 2002).................................  19.4
    Committee Level...............................................  19.1
Fiscal Year 2005:
    OMB Projection (January 2002).................................  19.5
    Committee Level...............................................  19.4
Fiscal Year 2006:
    OMB Projection (January 2002).................................  19.2
    Committee Level...............................................  19.3
Fiscal Year 2007:
    OMB Projection (January 2002).................................  19.2
    Committee Level...............................................  19.3

                                            TABLE 7.--OMB BASELINE REVENUES BY SOURCE, IN BILLIONS OF DOLLARS
                                                  [Includes on- and off-budget revenues, fiscal years]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                       Projected \1\
                                                                      1950      1960      1970      1980      1990       2000    -----------------------
                                                                                                                                     2002        2003
--------------------------------------------------------------------------------------------------------------------------------------------------------
Individual Income Tax.............................................     15.8      40.7      90.4     244.1     466.9     1,004.5       949.9     1,009.0
Corporate Income Tax..............................................     10.4      21.5      32.8      64.6      93.5       207.3       202.5       208.0
Social Insurance Tax and contributions............................      4.3      14.7      44.4     157.8     380.0       652.9       708.0       750.5
Excise Taxes......................................................      7.6      11.7      15.7      24.3      35.3        68.9        67.0        69.2
Estate and Gift Taxes.............................................      0.7       1.6       3.6       6.4      11.5        29.0        27.5        23.6
Customs Duties....................................................      0.4       1.1       2.4       7.2      16.7        19.9        19.3        20.7
Miscellaneous Receipts............................................      0.2       1.2       3.4      12.7      28.0        42.8        36.4        40.2
                                                                   -------------------------------------------------------------------------------------
    Total \2\.....................................................     39.4      92.5     192.8     517.1   1,032.0     2,025.2     2,010.7     2,121.1
On-Budget Revenues................................................    (37.3)    (81.9)   (159.3)   (403.9)   (750.3)   (1,544.6)   (1,493.5)   (1,575.7)
Off-Budget Revenues\3\............................................     (2.1)    (10.6)    (33.5)   (113.2)   (281.7)     (480.6)     (517.2)     (545.3)
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Prior to 3/9/02 enactment of the emergency economic security plan.
\2\ Details may not sum to totals due to rounding.
\3\ Social Security (OASDI) revenues.


                          TABLE 8.--OMB BASELINE REVENUES BY SOURCE, AS PERCENT OF GDP
                              [Includes on- and off-budget revenues, fiscal years]
----------------------------------------------------------------------------------------------------------------
                                                                                                  Projected \1\
                                            1950     1960     1970     1980     1990     2000  -----------------
                                                                                                  2002     2003
----------------------------------------------------------------------------------------------------------------
Individual Income Tax...................     5.8      7.8      8.9      8.9      8.1     10.3      9.2      9.2
Corporate Income Tax....................     3.8      4.1      3.2      2.4      1.6      2.1      2.0      1.9
Social Insurance Tax and contributions..     1.6      2.8      4.4      5.8      6.6      6.7      6.8      6.9
Excises.................................     2.8      2.3      1.6      0.9      0.6      0.7      0.6      0.6
Estate and Gift Taxes...................     0.3      0.3      0.4      0.2      0.2      0.3      0.3      0.2
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      0.4      0.4
                                         -----------------------------------------------------------------------
    Total \2\...........................    14.4     17.8     19.0     18.9     18.0     20.8     19.4     19.4
On-Budget Revenues......................   (13.7)   (15.8)   (15.7)   (14.8)   (13.1)   (15.9)   (14.4)   (14.4)
Off-Budget Revenues \3\.................    (0.8)    (2.1)    (3.3)    (4.1)    (4.9)    (4.9)    (5.0)    (5.0)
----------------------------------------------------------------------------------------------------------------
\1\ Prior to 3/9/02 enactment of emergency economic security plan.
\2\ Details may not sum to totals due to rounding.
\3\ Social Security (OASDI) revenues.


                                     TABLE 9.--TAX EXPENDITURE ESTIMATES BY BUDGET FUNCTION, FISCAL YEARS 2002-2006
                                                                  [Billions of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                      Corporations                                 Individuals
                      Function                       ------------------------------------------------------------------------------------------   Total
                                                        2002     2003     2004     2005     2006     2002     2003     2004     2005     2006    2002-06
--------------------------------------------------------------------------------------------------------------------------------------------------------
National Defense
  Exclusion of benefits and allowances to Armed       .......  .......  .......  .......  .......      2.3      2.3      2.4      2.4      2.4      11.8
   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  .......  .......  .......  .......  .......      2.8      3.0      3.2      3.4      3.6      16.0
  Exclusion of certain allowances for Federal         .......  .......  .......  .......  .......      0.3      0.4      0.4      0.4      0.5       2.0
   employees abroad.................................
  Exclusion of extraterritorial income..............      4.8      5.2      5.6      6.0      6.5  .......  .......  .......  .......  .......      28.1
  Deferral of active income of controlled foreign         4.2      4.4      4.7      5.0      5.3  .......  .......  .......  .......  .......      23.6
   corporations.....................................
  Inventory property sales source rule exception....      4.8      5.2      5.6      6.0      6.4  .......  .......  .......  .......  .......      28.0
  Deferral of certain financing income..............      0.6      0.2  .......  .......  .......  .......  .......  .......  .......  .......       0.8
General Science, Space, and Technology
  Tax credit for qualified research expenditures....      5.0      5.4      4.7      2.8      1.5    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)      19.4
  Expensing of research and experimental                  4.5      4.7      4.7      4.8      5.0    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)      23.7
   expenditures.....................................
Energy
  Expensing of exploration and development costs:
    Oil and gas.....................................      1.6      1.2      0.7      0.3      0.6    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)       4.4
    Other fuels.....................................    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)       0.2
  Excess of percentage over cost depletion:
    Oil and gas.....................................      0.5      0.4      0.4      0.4      0.4    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)       2.2
    Other fuels.....................................    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)       0.1
  Tax credit for enhanced oil recovery costs........      0.2      0.2      0.2      0.2      0.2      0.1      0.1      0.1      0.1      0.1       1.4
  Tax credit for production of non-conventional           1.3      0.8      0.5      0.5      0.5      0.3      0.2      0.1      0.1      0.1       4.5
   fuels............................................
  Tax credit 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\)      0.1    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)       0.3
   closed-loop biomass, and poultry waste...........
Natural Resources and Environment
  Expensing of exploration and development costs,       (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)       0.3
   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\)       0.9
  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            0.2      0.2      0.3      0.3      0.3  .......  .......  .......  .......  .......       1.3
   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\)      0.1      0.1      0.1      0.1      0.1       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 indebtedeness income   .......  .......  .......  .......  .......      0.1    (\1\)    (\1\)    (\1\)    (\1\)       0.2
   of farmers.......................................
  Cash accounting for agriculture...................    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)      0.5      0.3      0.3      0.3      0.3       1.7
  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 Credit
  Financial institutions:
    Exemption of credit union income................      0.9      0.9      0.9      1.0      1.0  .......  .......  .......  .......  .......       4.7
  Insurance companies:
    Exclusion of investment income on life insurance      1.3      1.4      1.4      1.5      1.5     23.6     24.2     24.9     25.5     26.2     131.6
     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      1.3      1.3      1.4      1.4  .......  .......  .......  .......  .......       6.6
     reserves.......................................
    Deduction of unpaid loss reserves for property        2.9      3.0      3.0      3.1      3.2  .......  .......  .......  .......  .......      15.2
     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-         .......  .......  .......  .......  .......     66.5     69.8     72.1     76.5     80.5     365.5
     occupied residences............................
    Deduction for property taxes on owner-occupied    .......  .......  .......  .......  .......     21.4     22.1     21.4     18.8     15.5      99.2
     residences.....................................
    Exclusion of capital gains on sales of principal  .......  .......  .......  .......  .......     13.8     13.8     13.9     14.0     14.1      69.6
     residences.....................................
    Exclusion of interest on State and local              0.3      0.3      0.3      0.3      0.3      0.7      0.8      0.8      0.8      0.8       5.3
     government bonds for owner-occupied housing....
    Exclusion of interest on State and local              0.1      0.1      0.1      0.1      0.1      0.1      0.1      0.2      0.2      0.2       1.0
     government bonds for rental housing............
    Depreciation of rental housing in excess of           0.3      0.3      0.3      0.3      0.3      2.5      2.7      2.8      3.1      3.4      16.0
     alternative depreciation system................
    Tax credit for low-income housing...............      2.7      2.9      3.0      3.2      3.3      1.2      1.2      1.3      1.4      1.4      21.6
    Tax credit for first-time homebuyers in the       .......  .......  .......  .......  .......    (\1\)    (\1\)    (\1\)  .......  .......       0.1
     District of Columbia...........................
    Tax credit for rehabilitation of historic             0.4      0.4      0.4      0.4      0.4      0.1      0.1      0.1      0.1      0.1       2.5
     structures.....................................
  Other business and commerce:
    Reduced rates of tax on long-term capital gains.  .......  .......  .......  .......  .......     65.1     57.4     56.8     53.8     53.3     286.4
    Exclusion of capital gains at death.............  .......  .......  .......  .......  .......     37.3     40.1     43.1     46.3     49.8     216.6
    Carryover basis of capital gains on gifts.......  .......  .......  .......  .......  .......      4.2      4.4      4.6      4.8      5.1      23.1
    Deferral of gain on non-dealer installment sales      0.6      0.6      0.6      0.7      0.7      0.4      0.4      0.4      0.4      0.4       5.2
    Deferral of gain on like-kind exchanges.........      1.3      1.4      1.4      1.5      1.5      0.4      0.5      0.5      0.5      0.5       9.5
    Deferral of gain on involuntary conversions       .......  .......  .......  .......  .......      (1)      (1)      (1)      (1)      (1)       0.1
     resulting from Presidentially-delcared
     disasters......................................
    Depreciation of buildings other than rental           1.2      1.2      1.1      0.9      0.9      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               28.0     31.0     32.8     33.9     34.5      7.5      8.4      8.8      9.0      9.1     203.0
     alternative depreciation system................
    Expensing of depreciable business property......      0.3      0.3      0.2      0.2      0.1      1.3      1.3      0.9      0.6      0.4       5.6
    Amortization of business startup costs..........      (1)      (1)      (1)      (1)      (1)      0.5      0.5      0.5      0.5      0.6       2.6
    Reduced rates on first $10,000,000 of corporate       4.7      4.7      4.8      4.9      5.0  .......  .......  .......  .......  .......      24.1
     taxable income.................................
    Permanent exemption from imputed interest rules.      (1)      (1)      (1)      (1)      (1)      0.2      0.3      0.3      0.3      0.3       1.4
    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)       1.2
    Cash accounting, other than agriculture.........      (1)      (1)      (1)      (1)      (1)      0.3      0.3      0.3      0.3      0.3       1.5
    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      0.2      0.2      0.3      0.3      0.3      0.3       2.0
    Ordinary income treatment of losses from sales    .......  .......  .......  .......  .......    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)       0.2
     of small business corporation stock............
Transportation
  Deferral of tax on capital construction funds for       0.1      0.1      0.1      0.1      0.1  .......  .......  .......  .......  .......       0.5
   shipping companies...............................
  Exclusion of employer-paid transportation benefits  .......  .......  .......  .......  .......      3.7      3.7      3.8      3.8      3.9      18.9
  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...................      0.2      0.3      0.3      0.3      0.3      0.3      0.4      0.4      0.4      0.4       3.3
  Renewal community tax incentives..................      0.1      0.1      0.1      0.2      0.2      0.3      0.4      0.4      0.4      0.4       2.7
  New markets tax credit............................      (1)      (1)      0.1      0.2      0.2      (1)      0.1      0.1      0.2      0.3       1.3
  District of Columbia tax incentives...............      (1)      (1)      0.1      0.1      0.1      (1)      0.1      0.1      0.1      0.1       0.6
  Indian reservation tax incentives.................      0.2      0.2      0.1    (\3\)     -0.1      0.1      0.1      0.1    (\3\)     -0.1       0.7
  Expensing of environmental remediation costs            0.1      0.1    (\1\)    (\3\)    (\3\)      0.1      0.1      0.1    (\3\)    (\3\)       0.5
   (``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        .......  .......  .......  .......  .......      4.3      4.3      4.3      4.3      4.3      21.5
     education......................................
    Deduction for interest on student loans.........  .......  .......  .......  .......  .......      0.6      0.6      0.7      0.8      0.8       3.5
    Deduction for higher education expenses.........  .......  .......  .......  .......  .......      1.5      2.1      3.7      2.9      0.1      10.3
    Exclusion of earnings of trust accounts for       .......  .......  .......  .......  .......      0.3      0.4      0.5      0.6      0.7       2.5
     education (``Coverdell accounts'').............
    Exclusion of interest on educational savings      .......  .......  .......  .......  .......    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)       0.1
     bonds..........................................
    Exclusion of earnings of qualified tuition        .......  .......  .......  .......  .......      0.1      0.2      0.2      0.3      0.3       1.1
     programs.......................................
    Exclusion of scholarship and fellowship income..  .......  .......  .......  .......  .......      1.3      1.4      1.5      1.5      1.6       7.3
    Exclusion of employer-provided education          .......  .......  .......  .......  .......      0.5      0.7      0.8      0.8      0.9       3.7
     assistance benefits............................
    Parental personal exemption for students age 19   .......  .......  .......  .......  .......      1.0      1.0      0.9      0.4      0.1       3.4
     to 23..........................................
    Exclusion of interest on State and local              0.1      0.1      0.1      0.1      0.1      0.2      0.2      0.2      0.2      0.3       1.7
     government student loan bonds..................
    Exclusion of interest on State and local              0.2      0.2      0.2      0.3      0.3      0.6      0.6      0.6      0.6      0.7       4.4
     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             1.0      1.1      1.2      1.3      1.4      5.5      6.1      6.4      6.6      6.5      37.1
     educational institutions.......................
  Employment:
    Exclusion of employee meals and lodging (other    .......  .......  .......  .......  .......      0.8      0.9      0.9      0.9      0.9       4.4
     than military).................................
    Exclusion of benefits provided under cafeteria    .......  .......  .......  .......  .......     11.4     12.7     13.7     14.8     15.6      68.2
     plans \4\......................................
    Exclusion of housing allowances for ministers...  .......  .......  .......  .......  .......      0.4      0.4      0.5      0.5      0.5       2.3
    Exclusion of miscellaneous fringe benefits......  .......  .......  .......  .......  .......      5.7      6.0      6.2      6.4      6.7      31.0
    Exclusion of employee awards....................  .......  .......  .......  .......  .......      0.1      0.1      0.1      0.1      0.1       0.7
    Exclusion of income earned by voluntary           .......  .......  .......  .......  .......      1.6      1.7      1.7      1.8      1.9       8.7
     employees' beneficiary associations............
    Special tax provisions for employee stock             0.8      0.9      0.9      0.9      0.9      0.2      0.2      0.3      0.3      0.3       5.7
     ownership plans (ESOPs)........................
    Work opportunity tax credit.....................      0.3      0.1      0.1    (\1\)    (\1\)      0.1    (\1\)    (\1\)  .......  .......       0.6
    Welfare-to-work tax credit......................      0.1    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)  .......  .......       0.2
    Exclusion of spread on acquisition of stock       .......  .......  .......  .......  .......      0.5      0.6      0.8      0.9      1.0       3.8
     under incentive stock option plans and employee
     stock purchase plans...........................
  Social services:
    Tax credit for children under age 17 \5\........  .......  .......  .......  .......  .......     26.9     26.9     26.8     30.2     31.5     142.3
    Tax credit for child and dependent care expenses  .......  .......  .......  .......  .......      3.1      3.1      3.0      2.5      2.0      13.8
    Exclusion of employer-provided child care \6\...  .......  .......  .......  .......  .......      0.6      0.8      0.8      0.9      0.9       4.0
    Tax credit for employer-provided child care.....    (\1\)      0.1      0.1      0.1      0.1    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)       0.6
    Exclusion of certain foster care payments.......  .......  .......  .......  .......  .......      0.5      0.5      0.6      0.6      0.6       2.8
    Adoption credit and employee adoption benefits    .......  .......  .......  .......  .......      0.2      0.2      0.3      0.3      0.3       1.3
     exclusion......................................
    Deduction for charitable contributions, other         1.7      1.9      2.1      2.2      2.4     30.0     32.9     34.8     35.8     35.1     178.9
     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      .......  .......  .......  .......  .......     69.1     75.1     80.0     86.5     93.3     404.1
   care, health insurance premiums, and long-term
   care insurance premiums \7\......................
  Exclusion of medical care and CHAMPUS/TRICARE       .......  .......  .......  .......  .......      1.4      1.5      1.5      1.5      1.5       7.4
   medical insurance for military dependents,
   retirees, and retiree dependents.................
  Deduction for health insurance premiums and long-   .......  .......  .......  .......  .......      1.6      2.4      2.8      2.9      3.1      12.8
   term care insurance premiums by the self-employed
  Deduction for medical expenses and long-term care   .......  .......  .......  .......  .......      5.6      6.0      6.4      6.8      7.2      32.0
   expenses.........................................
  Exclusion of workers' compensation benefits         .......  .......  .......  .......  .......      3.5      3.7      3.8      3.9      4.0      18.9
   (medical benefits)...............................
  Archer 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      1.0      1.0      1.0      1.0      1.1       7.2
   government bonds for private nonprofit hospital
   facilities.......................................
  Deducation for charitable contributions to health       1.0      1.0      1.1      1.2      1.3      3.8      4.2      4.4      4.5      4.5      27.0
   organizations....................................
  Tax credit for orphan drug clinical testing.......      0.1      0.1      0.1      0.1      0.1  .......  .......  .......  .......  .......       0.7
Medicare
  Exclusion of untaxed Medicare benefits:
    Hospital insurance..............................  .......  .......  .......  .......  .......     16.9     18.0     19.5     21.0     22.6      98.0
    Supplementary medical insurance.................  .......  .......  .......  .......  .......      9.8     11.1     11.9     12.7     13.7      59.2
Income Security
  Exclusion of workers' compensation benefits         .......  .......  .......  .......  .......      5.4      5.6      5.8      6.1      6.4      29.3
   (disability and survivors payments)..............
  Exclusion of damages on account of personal         .......  .......  .......  .......  .......      1.4      1.4      1.4      1.4      1.4       7.0
   physical injuries or physical sickness...........
  Exclusion of special benefits for disabled coal     .......  .......  .......  .......  .......      0.1      0.1      0.1      0.1      0.1       0.3
   miners...........................................
  Exclusion of cash public assistance benefits......  .......  .......  .......  .......  .......      0.7      0.7      0.7      0.7      0.8       3.6
  Net exclusion of pension contributions and
   earnings:
    Employer plans..................................  .......  .......  .......  .......  .......     87.9     87.7     86.7     89.1     93.5     445.0
    Individual retirement plans.....................  .......  .......  .......  .......  .......     14.0     14.2     15.4     16.8     18.1      78.5
    Keogh plans.....................................  .......  .......  .......  .......  .......      5.6      5.7      5.8      6.0      6.3      29.3
  Tax credit for certain individuals for elective     .......  .......  .......  .......  .......      1.3      1.9      1.7      1.6      1.5       8.0
   deferrals and IRA contributions..................
  Tax credit for new retirement plan expenses of        (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)    (\1\)       0.1
   small businesses.................................
  Exclusion of other employee benefits:
    Premiums on group term life insurance...........  .......  .......  .......  .......  .......      2.3      2.4      2.5      2.6      2.7      12.5
    Premiums on accident and disability insurance...  .......  .......  .......  .......  .......      2.3      2.4      2.6      2.7      2.8      12.8
  Additional standard deduction for the blind and     .......  .......  .......  .......  .......      2.0      2.1      2.2      2.3      2.3      10.8
   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) \5\....................  .......  .......  .......  .......  .......     33.7     35.0     35.7     36.2     37.0     177.6
Social Security and Railroad Retirement
  Exclusion of untaxed social security and railroad   .......  .......  .......  .......  .......     22.6     23.5     24.3     25.0     25.7     121.1
   retirement benefits..............................
Veterans' Benefits and Services
  Exclusion of veterans' disability compensation....  .......  .......  .......  .......  .......      2.3      2.4      2.4      2.5      2.6      12.1
  Exclusion of veterans' pensions...................  .......  .......  .......  .......  .......      0.1      0.1      0.1      0.1      0.1       0.6
  Exclusion of 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       6.1      6.2      6.2      6.3      6.4     15.7     15.8     16.0     16.3     16.5     112.0
   local government debt............................
  Deduction of nonbusiness State and local            .......  .......  .......  .......  .......     44.9     46.3     45.3     41.5     34.7     212.7
   government income and personal property taxes....
  Tax credit for Puerto Rico and possession income,       2.6      2.2      2.0      1.8      0.5  .......  .......  .......  .......  .......       9.1
   and Puerto Rico economic activity................
Interest
  Deferral of interest on savings bonds.............  .......  .......  .......  .......  .......      1.6      1.6      1.6      1.6      1.6       8.0
--------------------------------------------------------------------------------------------------------------------------------------------------------
\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 $0.7
  billion per year in fiscal years 2002 through 2006.
\3\ Negative tax expenditure of less than $50 million.
\4\ Estimate includes amounts of employer-provided health insurance purchased through cafeteria plans and employer-provided child care purchased through
  dependent care flexible spending accounts. These amounts are also included in other line items in this table.
\5\ The amount of refundable child tax credit and earned income tax credit used to offset taxes other than income tax or paid out as refunds is: $38.5
  billion in 2002, $39.5 billion in 2003, $40.2 billion in 2004, $40.5 in 2005, and $43.4 billion in 2006.
\6\ Estimate includes employer-provided child care purchased through dependent care flexible spending accounts.
\7\ Estimate includes employer-provided health insurance purchased through cafeteria plans.

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

Source: Joint Committee on Taxation.

                     FUNCTION 050: NATIONAL DEFENSE

                              ----------                              


                            function summary

    The funding levels in the resolution for Function 050 
reflect the Nation's urgent requirement to defeat terrorism 
overseas and improve homeland security, while providing 
continued investment in the transformation of the armed forces. 
The terrorist attacks of 11 September 2001 underscore the 
necessity for a revitalized military capable of winning 
decisively against conventional and unconventional threats to 
the security of the United States.
    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 [DOD] military activities, including 
funds for ballistic missile defense. The function also includes 
pay and benefits for military and civilian personnel; research, 
development, testing, and evaluation; procurement of weapon 
systems; military construction and family housing; and 
operations and maintenance of the defense establishment. The 
remaining funding in the function is applied to atomic energy 
defense activities of the Department of Energy, and other 
defense-related activities.
    Spending in this function grew from $292.3 billion in 
budget authority [BA] and $274.9 billion in outlays in fiscal 
year 1999 to $347.5 billion in BA and $344.8 billion in outlays 
in fiscal year 2002 (including emergency spending of $3.9 
billion in BA and $11.7 billion in outlays).

                summary of committee-reported resolution

    The resolution calls for $393.8 billion in BA and $375.3 
billion in outlays in fiscal year 2003, an increase of 13.3 
percent in BA compared with fiscal year 2002. The function 
totals are $2.13 trillion in BA and $2.04 trillion in outlays 
over 5 years.
    For fiscal year 2003 discretionary spending, the resolution 
calls for $392.7 billion in BA and $374.9 billion in outlays. 
This is an increase of $45.1 billion in BA and $30.1 billion in 
outlays over fiscal year 2002.
    Mandatory spending in this function is $1.1 billion in BA 
and $0.4 billion in outlays in fiscal year 2003; and $7.2 
billion in BA and $5.4 billion in outlays over 5 years. Over 
the 2003-2007 period, mandatory spending grows by $5.8 billion 
above the baseline; this growth reflects spending for 
concurrent receipt of military retired pay and VA disability 
compensation.
    The BA and outlay funding levels for National Defense will 
support critical homeland security initiatives, consistent with 
the President's recommendations. It accommodates the 
President's request for $4.6 billion to protect DOD personnel 
and facilities within the United States. The resolution 
provides funding levels consistent with the President's request 
for $600 million for DOD domestic consequence management and 
intelligence, as well as $1.3 billion for maintaining air 
patrols in United States airspace.
    The resolution accommodates funding for 250,000 forward-
deployed (in theaters of operation) troops in the war on 
terrorism, and for programs found effective in the war on 
terrorism in Afghanistan, including $3 billion to improve 
intelligence gathering and computer networking. These programs 
provide warning against potential future terrorist attacks. The 
resolution accommodates the President's estimate of $158 
million for missile-firing Predator drones like those used for 
the first time against the Taliban. Another $629 million will 
accelerate production of Global Hawk, the long-range unmanned 
aerial vehicle [UAV] that also debuted in Afghanistan. The 
President has requested $1.6 billion to buy 45,000 laser-guided 
bomb kits and 33,000 new satellite-guided bomb kits. Precision 
munitions kits are intended to maximize military effectiveness 
while minimizing both collateral damage and vulnerability of 
U.S. aircrews. The budget resolution accommodates full funding 
for these weapons in the war against terrorism.
    The levels should accommodate defense ``transformation'' 
(modernizing the force for 21st century combat) while 
maintaining readiness and supporting armed forces personnel. 
The resolution provides funds for a 4.1-percent across-the-
board pay raise for military personnel, beginning in January 
2003. It also accommodates the President's requested $68.7 
billion for military procurement, a $7.6-billion increase over 
this year's level. The President has proposed $53.9 billion for 
research, development, test, and evaluation--the seed money for 
the next generation of weapons. Resolution funding levels 
accommodate this request, which is a $5.5-billion increase over 
this year's appropriated level. The President's budget seeks 
$7.8 billion to explore technologies to protect against missile 
attack; budget resolution levels are consistent with the 
request. The resolution fully funds the President's readiness 
estimate of $140.4 billion, a $12.7-billion increase over this 
year's appropriated level. (Note: some DOD summary tables show 
operations and maintenance BA at $150.4 billion, but that would 
include the emergency reserve fund for the war against 
terrorism). The resolution accommodates $22.4 billion for 
military health care, a $4.1-billion increase over this year's 
appropriated level. The administration seeks this increase to 
continue to fund the expansion of military health care mandated 
by the fiscal year 2001 Defense Authorization Act.

                                         FUNCTION 050: NATIONAL DEFENSE
                                            [In billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                        2002       2003       2004       2005       2006       2007    2003-2007
----------------------------------------------------------------------------------------------------------------
Total Spending:
    Budget Authority...............      347.5      393.8      401.6      422.7      444.2      466.5    2,128.9
    Outlays........................      344.8      375.3      390.6      409.7      425.1      439.2    2,039.8
Discretionary Spending:
    Budget Authority...............      347.6      392.7      400.5      421.5      442.5      464.4    2,121.7
    Outlays........................      344.8      374.9      389.9      408.7      423.6      437.3    2,034.4
Mandatory Spending:
    Budget Authority...............     -000.1        1.1        1.1        1.2        1.7        2.0        7.2
    Outlays........................        (*)        0.4        0.6        1.0        1.5        1.9        5.4
----------------------------------------------------------------------------------------------------------------
Note.--* Less than $50 million.

                  FUNCTION 150: INTERNATIONAL AFFAIRS

                              ----------                              


                            function summary

    The resolution supports the war against terrorism by 
providing the funding necessary to maintain and expand support 
of the international coalition, and to provide employees at 
U.S. diplomatic missions safe, secure, and functional 
facilities.
    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.
    Spending in this function changed from $37.9 billion in 
budget authority [BA] and $15.2 billion in outlays in fiscal 
year 1999 to $22.2 billion in BA and $23.4 billion in outlays 
in fiscal year 2002. (The fiscal year 1999 foreign operations 
appropriations included $17.9 billion in budget authority, with 
no outlays, for the International Monetary Fund to confront the 
Asian financial crisis, Russia's economic problems, and other 
situations threatening global economic stability.)

                summary of committee-reported resolution

    The resolution calls for $23.8 billion in BA and $22.3 
billion in outlays in fiscal year 2003, an increase of 7.2 
percent in BA compared with 2002; and $127.1 billion in BA and 
$116.4 billion in outlays over 5 years.
    For discretionary spending, the resolution calls for $25.3 
billion in BA and $25.4 billion in outlays in fiscal year 2003. 
The 5-year discretionary spending totals are $133.1 billion in 
BA and $131.8 billion in outlays. Mandatory spending in this 
function is -$1.6 billion in BA and -$3.1 billion in outlays in 
fiscal year 2003; and -$6.0 billion in BA and -$15.4 billion in 
outlays over 5 years. In fiscal year 2003, the mandatory BA and 
outlay levels are negative, reflecting 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 resolution supports an increase in military assistance 
to key countries supporting the United States in the war 
against terrorism by accommodating the President's request to 
increase Foreign Military Financing by $457 million (not 
including the fiscal year 2002 emergency supplemental) to a 
total of $4.1 billion for fiscal year 2003.
    The provision of safe, secure, and functional facilities 
for employees at U.S. diplomatic missions worldwide remains a 
priority. Funding in this resolution accommodates the 
President's proposal to increase the State Department's 
Diplomatic and Consular Programs by $310 million (not including 
the fiscal year 2002 emergency supplemental), to a total of 
$4.0 billion for fiscal year 2003.
    The resolution accommodates the President's request 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 $86-million increase for the Andean 
Counterdrug Initiative.
    The resolution also supports an historically high level of 
funding to fight the HIV/AIDS pandemic and other infectious 
diseases by accommodating the President's proposal to provide 
nearly $1.2 billion in total U.S. bilateral and multilateral 
assistance for HIV/AIDS, tuberculosis, and malaria programs in 
developing countries. It also supports a U.S. contribution of 
$100 million for the Global Fund for HIV/AIDS, tuberculosis, 
and malaria.

                                       FUNCTION 150: INTERNATIONAL AFFAIRS
                                            [In billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                        2002       2003       2004       2005       2006       2007    2003-2007
----------------------------------------------------------------------------------------------------------------
Total Spending:
    Budget Authority...............       22.2       23.8       24.7       25.5       26.1       27.0      127.1
    Outlays........................       23.4       22.3       22.7       23.2       23.8       24.5      116.4
Discretionary Spending:
    Budget Authority...............       24.1       25.3       26.0       26.7       27.3       27.9      133.1
    Outlays........................       26.8       25.4       25.8       26.3       26.9       27.5      131.8
Mandatory Spending:
    Budget Authority...............       -1.9       -1.6       -1.3       -1.2       -1.1       -0.9       -6.0
    Outlays........................       -3.4       -3.1       -3.1       -3.1       -3.1       -3.0      -15.4
----------------------------------------------------------------------------------------------------------------

          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 fundamental 
or basic science programs of the Department of Energy [DOE]. 
The largest component of the function -- about two-thirds of 
total spending -- is for the space flight, research, and 
supporting activities of the National Aeronautics and Space 
Administration.
    Over the period 1999-2002, total budget authority [BA] in 
Function 250 rose from $18 billion to $22.2 billion, a 4.6-
percent annual average increase and outlays rose from $18.2. 
billion in fiscal year 1998 to $21.6 billion in fiscal year 
2002, a 4.9-percent annual average increase.

                summary of committee-reported resolution

    The budget resolution calls for $22.7 billion in BA and $22 
billion in outlays in fiscal year 2003, an increase of 3.1 
percent in BA compared with fiscal year 2002. The 5-year 
spending totals are $119.6 billion in BA and $117.2 billion in 
outlays. Mandatory spending in this function is $0.1 billion in 
BA and $0.1 billion in outlays in fiscal year 2003, and $0.2 
billion in BA and $0.4 billion in outlays over 5 years.
    The resolution enhances the Nation's commitment to science 
and provides $4.0 billion for the National Science Foundation's 
research and related activities, an increase of $374 million, 
over fiscal year 2002.

                              FUNCTION 250: GENERAL SCIENCE, SPACE, AND TECHNOLOGY
                                            [In billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                        2002       2003       2004       2005       2006       2007    2003-2007
----------------------------------------------------------------------------------------------------------------
Total Spending:
    Budget Authority...............       22.1       22.7       23.4       23.9       24.5       25.1      119.6
    Outlays........................       21.6       22.1       22.8       23.6       24.1       24.7      117.2
Discretionary Spending:
    Budget Authority...............       21.9       22.6       23.4       23.9       24.5       25.0      119.4
    Outlays........................       21.5       21.9       22.7       23.5       24.0       24.6      116.9
Mandatory Spending:
    Budget Authority...............        0.1        0.1        (*)        (*)        (*)        (*)        0.2
    Outlays........................        0.1        0.1        0.1        0.1        (*)        (*)        0.4
----------------------------------------------------------------------------------------------------------------
Note.--*Less than $50 million.

                          FUNCTION 270: ENERGY

                              ----------                              


                            function summary

    The Energy function reflects civilian energy and 
environmental activities and programs of the Federal 
Government. Through this function, spending is provided for 
energy supply programs, such as solar and renewable, fossil and 
nuclear research at the Department of Energy [DOE]; rural 
electricity and telecommunications loans, administered through 
the Rural Utilities Service of 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 Federal Energy Regulatory Commission, the 
Nuclear Regulatory Commission [NRC] and the U.S. Enrichment 
Corporation.
    Spending in this function decreased from $1.0 billion in 
budget authority [BA] and $0.9 billion in outlays in fiscal 
year 1999 to $0.6 billion in BA and $0.5 billion in outlays in 
fiscal year 2002. Receipts, repayments, and electricity sales 
result in negative mandatory budget authority and outlays.

                summary of committee-reported resolution

    The resolution calls for $0.316 billion in BA and $0.364 
billion in outlays in fiscal year 2003, a decrease of 44 
percent in BA compared with 2002 that results from increased 
negative spending on the mandatory side due to rural 
electrification and telecommunications loan repayments and 
liquidations, TVA and Power Marketing Administration 
electricity sales, nuclear waste disposal fees, and uranium 
sales and enrichment fees. The 5-year function totals are $2.2 
billion in BA and $2.1 billion in outlays.
    For discretionary spending, the resolution calls for $3.3 
billion in BA and $3.4 billion in outlays in fiscal year 2003 
(up from $3.2 billion and $3.3 billion in 2002, respectively); 
and $17.4 billion in BA and $17.5 billion in outlays over 5 
years, a 13-percent increase.
    Mandatory spending is -$2.9 billion in BA and -$3.0 billion 
in outlays in fiscal year 2003; and -$15.2 billion in BA and 
-$15.5 billion in outlays over 5 years.
    The resolution protects the homeland through additional 
resources for the NRC to continue to review nuclear plant 
security to strengthen physical facilities and information 
technology infrastructure. More resources are also provided for 
the DOE Office of Emergency Operations for energy systems 
security and assurance planning, response and recovery.
    The resolution assumes the President's discretionary 
proposals, which fulfill the National Energy Policy 
recommendations to focus Federal investment on future energy 
solutions. It also assumes the proposed increase in the 
Bonneville Power Administration's borrowing authority ceiling. 
While the budget resolution does not specifically include 
future savings from leasing limited tracts of land for oil and 
gas exploration in the Arctic National Wildlife Refuge, it does 
not preclude the House from taking further action in this 
regard. Should final Congressional authorization occur, net 
savings would accrue to the Federal Government in the form of 
receipts that would be reflected in subsequent budgets.

                                              FUNCTION 270: ENERGY
                                            [In billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                        2002       2003       2004       2005       2006       2007    2003-2007
----------------------------------------------------------------------------------------------------------------
Total Spending:
    Budget Authority...............        0.6        0.3        0.2        0.7        0.5        0.5        2.2
    Outlays........................        0.5        0.4        0.1        0.6        0.5        0.5        2.1
Discretionary Spending:
    Budget Authority...............        3.2        3.3        3.4        3.5        3.6        3.7       17.4
    Outlays........................        3.3        3.4        3.4        3.5        3.6        3.6       17.5
Mandatory Spending:
    Budget Authority...............       -2.7       -2.9       -3.2       -2.8       -3.0       -3.1      -15.2
    Outlays........................       -2.8       -3.0       -3.3       -2.9       -3.1       -3.2      -15.5
----------------------------------------------------------------------------------------------------------------

            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 the Forest 
Service; the National Oceanic and Atmospheric Administration 
[NOAA]; the Army Corps of Engineers; and the Environmental 
Protection Agency [EPA].
    Spending in this function grew from $24.4 billion in budget 
authority [BA] and $24.0 billion in outlays in fiscal year 1999 
to $30.1 billion in BA and $29.5 billion in outlays in fiscal 
year 2002, an 8.5-percent average annual BA increase.

                summary of committee-reported resolution

    The resolution calls for $29.2 billion in BA and $29.8 
billion in outlays in fiscal year 2003, a decrease of 0.3-
percent in BA and an increase of 0.1-percent in outlays 
compared with 2002 levels. The 5-year function totals are 
$153.5 billion in BA and $154.9 billion in outlays.
    For discretionary spending, the resolution calls for $27.6 
billion in BA and $28.7 billion in outlays in fiscal year 2003; 
$141.5 billion in BA and $145.6 billion in outlays over 5 
years. Mandatory spending is $1.6 billion in BA and $1.1 
billion in outlays in fiscal year 2003, and $12.0 billion in BA 
and $9.3 billion in outlays over 5 years.
    Included in the resolution's assumptions are the following 
recommendations by the President:

   Full funding of the Land and Water Conservation Fund 
        [LWCF] at $911 million. 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. For only 
        the second time in its 37-year history, the LWCF is 
        fully funded to its authorized level.

   An additional $663 million in 2003 as a down payment 
        on eliminating the National Park Service's deferred 
        maintenance backlog, currently estimated at $4.9 
        billion. This funding level follows a 30-percent 
        increase in park maintenance funds in 2002.

   A sum of $366 million for operations at the U.S. 
        Fish and Wildlife Service's refuge system an 18-percent 
        increase over fiscal year 2002.

   A total of $4.1 billion in funding for the EPA's 
        Operating Program, which comprises the agency's core 
        regulatory, research, and enforcement activities. This 
        is a $400 million increase over last year's budget 
        resolution.

   A doubling in EPA funds to assist States and 
        municipalities clean up brownfields or contaminated 
        industrial sites. The resolution calls for $200 million 
        a 104-percent increase over last year's budget request.

   A 17-percent increase in the Corps' salmon 
        conservation efforts including $100 million for the 
        Columbia River Ecosystem Restoration programs.

   A high level of funding for the wildland fire 
        program to reduce fire risk and minimize the damage of 
        wildfires including $229 million for the Forest 
        Service's Hazardous Fuels Treatments program, with more 
        than 70 percent directed to the wildland-urban 
        interface.

   The second installment of $164 million for Indian 
        school maintenance and repairs with the goal of 
        eliminating the $942 million backlog in tribal school 
        maintenance by 2006.

                                 FUNCTION 300: NATURAL RESOURCES AND ENVIRONMENT
                                            [In billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                        2002       2003       2004       2005       2006       2007    2003-2007
----------------------------------------------------------------------------------------------------------------
Total Spending:
    Budget Authority...............       30.1       29.2       30.5       31.4       30.9       31.5      153.5
    Outlays........................       29.5       29.8       30.4       30.9       31.7       32.0      154.9
Discretionary Spending:
    Budget Authority...............       29.0       27.6       28.2       28.8       28.2       28.8      141.5
    Outlays........................       28.9       28.7       28.6       29.0       29.5       29.8      145.6
Mandatory Spending:
    Budget Authority...............        1.1        1.6        2.4        2.7        2.7        2.6       12.0
    Outlays........................        0.6        1.1        1.8        1.9        2.2        2.2        9.3
----------------------------------------------------------------------------------------------------------------

                        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.
    Spending in this function grew from $24.1 billion in budget 
authority [BA] and $23.0 billion in outlays in fiscal year 1999 
to $28.8 billion in BA and $28.7 billion in outlays in fiscal 
year 2002, a 7-percent average annual BA increase. Included in 
these levels is over $30.0 billion in additional ad hoc 
assistance which was provided in fiscal years 1999 through 
2002, principally to address the impact of historically low 
commodity prices on producers or to remedy the effects of 
natural disasters. It should also be noted, however, that 
certain components of the broader policy envisioned under the 
FAIR Act such as regulatory relief, tax relief, and the 
expansion of overseas markets have been largely unfulfilled to 
date.

                summary of committee reported resolution

    The budget resolution 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 resolution accomplishes this second goal by 
fully budgeting for the House-passed farm bill (H.R. 2646). The 
resolution provides further that the funding streams are 
fungible on a year by year basis.
    Enactment of a new farm bill is needed throughout Rural 
America. Crop prices remain below historical averages due to 
favorable weather conditions, a strong U.S. dollar relative to 
our competitors, heavily subsidized international competitors, 
and a government-wide failure to provide farmers with 
meaningful regulatory relief. New farm legislation that is 
properly budgeted will provide an adequate safety net and 
certainty for our agricultural producers to make sound, long-
term business decisions.
    The budget resolution provides $23.6 billion in BA and 
$24.0 billion in outlays in fiscal year 2003.
    For discretionary spending, the resolution calls for $4.9 
billion in BA and $5.5 billion in outlays in fiscal year 2003 
and $27.5 billion in BA and $28.0 billion in outlays over 5 
years. Mandatory spending is $18.8 billion in BA and $18.5 
billion in outlays in fiscal year 2003 and $80.4 billion in BA 
and $80.2 billion in outlays over 5 years.
    The budget also assumes the following presidential 
recommendations:

   Increased funding to improve port of entry security 
        at high-risk border crossings with Canada, Mexico, and 
        other sensitive areas, such as Hawaii.

   Supports USDA food safety activities, including 
        record funds of $804 million for the Food Safety and 
        Inspection Service [FSIS] to maintain the current level 
        of 7,600 meat and poultry inspectors.

   Increases of $82 million for the Animal, Plant and 
        Health Inspection Service which protects U.S. 
        agriculture at our borders, and detects and responds to 
        diseases and pest outbreaks.

   Focuses USDA research on competitive in-house 
        programs including bio-based products, biotechnology, 
        counter-terrorism, invasive species, and genomics.

   Expands 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       2003       2004       2005       2006       2007    2003-2007
----------------------------------------------------------------------------------------------------------------
Total Spending:
    Budget Authority...............       28.8       23.6       22.8       21.1       20.2       20.1      107.8
    Outlays........................       28.7       24.1       22.7       21.1       20.2       20.1      108.2
Discretionary Spending:
    Budget Authority...............        5.7        4.9        5.6        5.5        5.7        5.8       27.5
    Outlays........................        5.9        5.5        5.5        5.5        5.6        5.8       28.0
Mandatory Spending:
    Budget Authority...............       23.2       18.8       17.2       15.6       14.6       14.3       80.4
    Outlays........................       22.7       18.5       17.1       15.6       14.6       14.3       80.2
----------------------------------------------------------------------------------------------------------------

               FUNCTION 370: COMMERCE AND HOUSING CREDIT

                              ----------                              


                            function summary

    Function 370 includes four components: mortgage credit 
(includes negative spending due to various program receipts and 
proceeds); the Postal Service (mostly off-budget); deposit 
insurance (negligible spending due to reserve supporting fees, 
etc.); and other advancement of commerce (the majority of the 
discretionary and mandatory spending in this function).
    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. Finally, most, but not all, Commerce Department funding 
is provided for in this function including the International 
Trade Administration, Bureau of Economic Analysis, Patent and 
Trademark Office [PTO], National Institute of Standards and 
Technology, National Telecommunications and Information 
Administration, and the Bureau of the Census; as well as 
independent agencies such as the Securities and Exchange 
Commission [SEC], the Commodity Futures Trading Commission, the 
Federal Trade Commission, the Federal Communications 
Commission, and the majority of the Small Business 
Administration.
    Overall, on-budget total budget authority [BA] in Function 
370 has gone from $4.6 billion in fiscal year 1996 to -$10.3 
billion in fiscal year 2002. On-budget outlays in this function 
went from $1.6 billion in outlays in fiscal year 1996 to $1.6 
billion in fiscal year 2002.

                Summary of committee-reported resolution

    For on-budget spending in this function, the resolution 
calls for $8.8 billion in BA and $5.0 billion in outlays in 
fiscal year 2003, an increase of 14 percent in BA compared with 
2002. The on-budget function totals are $44.3 billion in BA and 
$16.6 billion in outlays over 5 years.
    For fiscal year 2003 on-budget discretionary spending, the 
resolution calls for -$534 million in BA and -$335 million in 
outlays. The 5-year on-budget discretionary spending totals are 
-$2.1 billion in BA and -$2.2 billion in outlays. Discretionary 
spending is negative because receipts in this function (which 
are treated as a form of negative spending) exceed the 
financial obligations and resulting outlays of the balance of 
the functions' programs. The various baseline receipts and 
offsets recorded here include FHA mortgage insurance proceeds 
and excess SEC and PTO fees. These exceed the total costs of 
the Commerce Department, SBA and other independent agencies.
    On-budget mandatory spending in this function is $9.3 
billion in BA and $5.3 billion in outlays in fiscal year 2003; 
and $46.4 billion in BA and $18.8 billion in outlays over 5 
years. The mandatory spending is all at current law levels, the 
majority of which is out of the Universal Service Fund for 
telecommunications service subsidies to schools, libraries, 
health care providers, high-cost areas and low-income 
consumers.
    The resolution reflects outlays from the emergency 
terrorist response provided to the Postal Service in fiscal 
year 2002 and supports homeland security needs in the Bureau of 
Export Administration to inhibit the global spread of dual-use 
technologies that could be used in biological, chemical, and 
nuclear weapons of mass destruction, and in central Commerce 
Department management offices to strengthen physical and 
information technology security.
    The resolution does not assume the administration's 
legislative proposals for shifting spectrum auction deadlines 
and for imposing annual analog fees.

                                    FUNCTION 370: COMMERCE AND HOUSING CREDIT
                                   [On-budget amounts, in billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                        2002       2003       2004       2005       2006       2007    2003-2007
----------------------------------------------------------------------------------------------------------------
Total Spending:
    Budget Authority...............        7.7        8.8        9.3        8.8        8.0        9.4       44.3
    Outlays........................        1.6        5.0        4.2        3.1        1.9        2.4       16.6
Discretionary Spending:
    Budget Authority...............        (*)       -0.5       -0.2       -0.5       -0.9        0.1       -2.1
    Outlays........................        0.3       -0.3       -0.3       -0.6       -1.0        (*)       -2.2
Mandatory Spending:
    Budget Authority...............        7.7        9.3        9.5        9.3        8.9        9.4       46.4
    Outlays........................        1.3        5.3        4.4        3.7        2.9        2.4       18.8
----------------------------------------------------------------------------------------------------------------
Note.--* Less than $50 million.

                      FUNCTION 400: TRANSPORTATION

                              ----------                              


                            function summary

    As demonstrated by the terrorists attacks of 11 September 
2001, the Department of Transportation [DOT] is on the front 
line in the war against terrorism and the budget reflects this 
recognition. The major DOT homeland security initiatives 
includes the first full year of funding for the Transportation 
Security Administration [TSA] to provide security screening of 
airline passengers and baggage; the deployment of Federal Air 
Marshals to provide security on commercial aircraft; and 
additional operational funds for the United States Coast Guard 
to enhance port security and deploy Sea Marshals to secure 
commercial passenger and cargo vessels as they enter and exit 
U.S. ports.
    This function supports all major Federal transportation 
programs. Ground transportation (the Federal-aid highway 
program; mass transit operating and capital assistance; the 
National Rail Passenger Corporation [Amtrak]; and, high-speed 
rail and rail safety programs) accounts for about two-thirds of 
transportation spending. Additional components of this function 
are the Federal Aviation Administration airport improvement 
program; the FAA's facilities and equipment program; the 
operation of the national air traffic control system; the 
aeronautical activities of the National Aeronautics and Space 
Administration; water transportation through the Coast Guard 
and the Maritime Administration; and other transportation 
support activities.
    Over the period 1999-2002, total spending in Function 400 
rose from $51.6 billion in budget authority [BA] and $42.5 
billion in outlays to $65.3 billion in BA and $61.3 billion in 
outlays, a 26.5-percent increase in BA and 44.2-percent 
increase in outlays.

                summary of committee-reported resolution

    The resolution calls for $63.4 billion in BA and $60.6 
billion in outlays in fiscal year 2003; and $317.6 billion in 
BA and $304.6 billion in outlays over 5 years.
    For discretionary spending, the resolution calls for $20.8 
billion in BA and $57.4 billion in outlays in fiscal year 2003. 
The 5-year discretionary spending totals are $107.7 billion in 
BA and $293.7 billion in outlays. Mandatory spending in this 
function is $42.6 billion in BA and $3.2 billion in outlays in 
fiscal year 2003; and $209.9 billion in BA and $10.9 billion in 
outlays over 5 years.
    The resolution fully funds highway, highway safety, and 
transit programs at the levels guaranteed by the Transportation 
Equity Act for the 21st Century [TEA-21], which automatically 
adjusts highway spending based on receipts from Federal highway 
user taxes. But, because of the unforeseen magnitude of the 
swing in revenue estimates from fiscal year 2002 to fiscal year 
2003, State highway, highway safety, and construction programs 
have been confronted with significant uncertainty about their 
future funding levels. As a result, the resolution provides an 
additional $1.2 billion in outlays for highway and highway 
safety spending for fiscal 2003, that provides sufficient 
outlays to restore the cuts in fiscal year 2003 required under 
the Revenue Aligned Budget Authority [RABA] provisions of TEA-
21. In addition, the resolution fully funds the Federal 
Aviation Administration's operating ($7.5 billion), capital 
($3.0 billion), and airport grants ($3.4 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.

                                          FUNCTION 400: TRANSPORTATION
                                            [In billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                        2002       2003       2004       2005       2006       2007    2003-2007
----------------------------------------------------------------------------------------------------------------
Total Spending:
    Budget Authority...............       65.3       63.4       67.0       67.6       68.2       68.9      335.1
    Outlays........................       61.3       60.6       59.4       60.0       61.3       63.3      304.6
Discretionary Spending:
    Budget Authority...............       18.8       20.8       21.0       21.5       22.0       22.5      107.7
    Outlays........................       54.8       57.4       57.5       58.0       59.4       61.4      293.7
Mandatory Spending:
    Budget Authority...............       46.5       42.6       46.0       46.1       46.3       46.4      227.4
    Outlays........................        6.6        3.2        2.0        1.9        1.9        1.9       10.9
----------------------------------------------------------------------------------------------------------------

            FUNCTION 450: COMMUNITY AND REGIONAL DEVELOPMENT

                              ----------                              


                            function summary

    The Community and Regional Development function has taken 
on new importance as a significant share of homeland security 
funding appears in this function for the Federal Emergency 
Management Agency [FEMA]. FEMA's traditional mission of 
disaster relief and mitigation has been augmented with new 
responsibilities to protect the public from the effects of 
terrorism through enhanced capabilities of first responders 
such as police, firefighters, and emergency medical 
technicians.
    The function also contains 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. In the subfunction called ``area and 
regional development'' are the non-power 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. The Federal Flood Insurance program also appears in 
this function.
    Spending in this function grew from $11.3 billion in budget 
authority [BA] and $11.9 billion in outlays in fiscal year 1999 
to $18.5 billion in BA and $15.3 billion in outlays in fiscal 
year 2002 (including emergency spending of $6.7 billion in BA 
and $2.8 billion in outlays).

                summary of committee-reported resolution

    The resolution calls for $14.7 billion in BA and $17.4 
billion in outlays in fiscal year 2003, a decrease of 25.8 
percent in BA compared with 2002. The 5-year function totals 
are $77.7 billion in BA and $84.0 billion in outlays.
    For discretionary spending, the resolution calls for $15.1 
billion in BA and $18.0 billion in outlays in fiscal year 2003; 
$79.6 billion in BA and $87.4 billion in outlays over 5 years. 
Mandatory spending is -$467 million in BA and -$604 million in 
outlays in fiscal year 2003; -$1.9 billion in BA and -$3.4 
billion in outlays over 5 years.
    The budget assumes the President's Homeland Security 
initiatives, including:

   A total of $3.5 billion in 2003 for grants to first 
        responders such as police, firefighters and emergency 
        medical teams, which will be administered by the 
        Federal Emergency Management Administration. The grants 
        will allow local fire departments, police departments, 
        and emergency rescue teams to hire needed employees, 
        train staff, enhance preparedness, and purchase needed 
        equipment to improve their ability to rescue victims of 
        terrorism in the critical early hours after an attack, 
        when it is more likely that lives can be saved.

   Providing $50 million in 2003 for funding the Office 
        of National Preparedness, the office within FEMA that 
        works with State and local governments to ensure that 
        their planning, training and equipment needs are 
        addressed. The office will also administer the new 
        first responder grant program.

    The budget also assumes:

   A new $300-million Disaster Mitigation Grant 
        program, which will replace the formula-based Hazard 
        Mitigation Grant Program. The new grants will be 
        competitively based.

   Providing $350 million to modernize the Nation's 
        flood maps, and to digitize them and make them 
        available over the internet. Flooding is the single 
        most pervasive disaster faced in the Nation, and among 
        the most preventable. Flood damage represents 57 
        percent of the total disaster relief resources consumed 
        by the nation annually. But many of the Nation's flood 
        insurance maps are out of date or inaccurate. The new 
        funding seeks to correct this problem.

   Providing $2.9 billion in disaster relief funding 
        for 2003, including $1.8 billion in new budget 
        authority. Additionally, the budget proposes an 
        intensive review of unspent balances beginning with the 
        1994 Northridge Earthquake in California which is 
        expected to generate $1.1 billion in grant recoveries 
        over a 2-year period. Unspent balances often result 
        from mitigation and other projects that appeared to be 
        needed after a disaster but which were not pursued 
        after further public review or examination.

   Transfering of the Emergency Food and Shelter 
        Program to the Department of Housing and Urban 
        Development, where it will be consolidated with several 
        other programs which serve the needs of the homeless

    The budget also assumes the President's proposal to 
retarget funding within the Community Development Block Grant 
program from wealthier communities to communities in need, 
including a new initiative to improve living conditions in the 
Colonias along the Southwestern border.

                                FUNCTION 450: COMMUNITY AND REGIONAL DEVELOPMENT
                                            [In billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                        2002       2003       2004       2005       2006       2007    2003-2007
----------------------------------------------------------------------------------------------------------------
Total Spending:
    Budget Authority...............       18.5       14.7       15.3       15.5       15.9       16.3       77.7
    Outlays........................       15.3       17.4       18.0       17.5       15.7       15.5       84.0
Discretionary Spending:
    Budget Authority...............       18.4       15.1       15.6       15.9       16.3       16.7       79.6
    Outlays........................       15.3       18.0       18.6       18.2       16.4       16.3       87.4
Mandatory Spending:
    Budget Authority...............        0.1       -0.5       -0.3       -0.4       -0.4       -0.4       -1.9
    Outlays........................        (*)       -0.6       -0.6       -0.7       -0.7       -0.7       -3.4
----------------------------------------------------------------------------------------------------------------
Note.--* Less than $50 million.

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

                              ----------                              


                            function summary

    Function 500 consists of education, training and social 
service programs. Department of Education spending consumes the 
majority of the function total, and has grown rapidly in recent 
years. This function includes elementary and secondary 
education services, higher education aid, and research and 
general education aids--the latter category incorporating 
funding for arts, humanities, museums, libraries and public 
broadcasting. Job training and other Labor Department 
activities are located in this function, as are social services 
including the Social Services Block Grant, vocational 
rehabilitation and national service.
    Over the period 1999-2002, total budget authority [BA] in 
Function 500 rose from $55.5 billion to $79.2 billion, a $14.3-
percent average annual increase.

                SUMMARY OF COMMITTEE-REPORTED RESOLUTION

    The resolution calls for $81.1 billion in BA and $79.1 
billion in outlays in fiscal year 2003, an increase of $1.9 
billion, or 2.3 percent in BA compared with 2002. The function 
totals are $433.2 billion in BA and $420.7 billion in outlays 
over 5 years.
    For discretionary spending, the resolution calls for $72.1 
billion in BA and $70.4 billion in outlays in fiscal year 2003. 
The 5-year discretionary spending totals are $384.5 billion in 
BA and $373.3 billion in outlays.
    Mandatory spending in this function is $9.0 billion in BA 
and $8.8 billion in outlays in fiscal year 2003; $48.7 billion 
in BA and $47.4 billion in outlays over 5 years.

   Special Education--The resolution creates a fiscal 
        year 2003 IDEA reserve fund to increase special 
        education funding by $1 billion above the 2002 level. 
        For fiscal years 2004 and subsequent years covered by 
        the resolution, the Function 500 levels assume 12-
        percent annual increases for IDEA. These outyear 
        increases are at a rate sufficient to achieve full 
        funding of IDEA by 2012 and are contingent on 
        reauthorization of the IDEA statute.

   No Child Left Behind--The resolution assumes the 
        President's proposed $22 billion funding level for 
        elementary and secondary education programs authorized 
        under the No Child Left Behind act. This includes a $1-
        billion increase for targeted Title I aid to low-income 
        school districts and a $100 million increase to $1 
        billion for the President's Reading First initiative.

   Other Elementary and Secondary education programs--
        The resolution assumes funding for the following new 
        elementary/secondary education programs proposed by the 
        President:

    - $100 million for a credit enhancement for charter school 
            facilities program, which would provide grants to 
            public and nonprofit entities to leverage funds to 
            help charter schools purchase, construct, renovate 
            or lease academic facilities.

    - $50 million for a choice demonstration fund to support 
            research projects that develop, implement, and 
            evaluate innovative approaches to providing parents 
            with expanded school choice options, including both 
            private and public school choice; and

    - $25 million for a voluntary public school choice program 
            to support efforts to establish intradistrict and 
            interdistrict public school choice programs to 
            provide parents, particularly those whose children 
            attend low-performing public schools, with greater 
            choice for their children's education.

    The resolution also assumes a $53-million increase for 
research and dissemination funding for the Office of 
Educational Research and Improvement. This would expand efforts 
to develop proven, research-based practices for improving 
student achievement and disseminate those practices to States 
and school districts across the country.
    The resolution assumes funding for the following post-
secondary education proposals:

   $549 million to increase Pell Grant funding, enough 
        to maintain the historically-high Pell Grant maximum 
        level at $4,000.

   A 3.6-percent increase for funding to historically 
        black colleges, universities and graduate institutions; 
        as well as Hispanic-serving institutions.

    On the mandatory side, the resolution accommodates new tax 
credits for education amounting to $165 million in fiscal year 
2003 and $3.5 billion over 5 years.

Training and Employment

    Nearly $5 billion is provided for job training programs 
operated by the Department of Labor; this total assumes a $73-
million increase for the Job Corps program. It is also assumed 
that $1.3 billion in State carryover funds will be available. 
In all, the number of individuals receiving job training 
services is expected to increase under this budget.

Social Services

   Compassion Initiatives--Creates a $110 million 
        Compassion Capital Fund, which would provide grants to 
        faith-based community organizations that provide 
        services to low income communities. Provides $10 
        million for Maternity Group Homes to assist young unwed 
        mothers. Provides $25 million for mentoring the 
        children of prisoners. Launches a $20 million 
        Responsible Fatherhood Initiative to encourage 
        noncustodial fathers to play a role in their children's 
        lives and to economically support their children.

   Social Services Block Grant--The budget provides 
        $1.7 billion for the block grant in fiscal year 2003, 
        the same funding level available in fiscal year 2002.

   Head Start--The budget increases funding for Head 
        Start by $130 million in 2003 to maintain program 
        participation.

   Community Services Block Grant [CSBG]--The budget 
        funds CSBGs at $570 million in fiscal year 2003, a 
        reduction of $80 million from the fiscal year 2002 
        level of $650 million. The grants provide a small 
        fraction of the budget to a largely static group of 
        organizations. Moreover, little performance data exist 
        to show the outcome of CSBG funding. The budget assumes 
        that reductions are transferred to other higher-
        priority high performing programs.

                        FUNCTION 500: EDUCATION, TRAINING, EMPLOYMENT AND SOCIAL SERVICES
                                            [In billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                        2002       2003       2004       2005       2006       2007    2003-2007
----------------------------------------------------------------------------------------------------------------
Total Spending:
    Budget Authority...............       79.2       81.1       83.3       86.5       89.5       92.8      433.2
    Outlays........................       71.4       79.1       81.8       84.1       86.4       89.3      420.7
Discretionary Spending:
    Budget Authority...............       71.6       72.1       74.3       76.8       79.3       82.1      384.5
    Outlays........................       63.9       70.4       72.7       74.6       76.5       79.1      373.3
Mandatory Spending:
    Budget Authority...............        7.7        9.0        9.0        9.7       10.2       10.7       48.7
    Outlays........................        7.4        8.8        9.0        9.4        9.9       10.3       47.4
----------------------------------------------------------------------------------------------------------------

                          FUNCTION 550: HEALTH

                              ----------                              


                            function summary

    The Department of Health and Human Services [HHS] plays a 
lead role in addressing bio-terrorism a critical part of the 
budget's effort to enhance homeland security. Four key HHS 
components participate in homeland bio-terrorism security: the 
Centers for Disease Control and Prevention [CDC], the Food and 
Drug Administration [FDA], the Health Resources and Services 
Administration [HRSA], and the National Institutes of Health 
[NIH]. In fiscal year 2003, total spending for HHS's bio-
terrorism efforts would rise to $4.3 billion, an increase of 
$1.3 billion, or 45 percent, above the fiscal year 2002 level. 
These funding levels will support critical homeland security 
initiatives, consistent with the President's recommendations.
    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 NIH and substance abuse prevention and 
treatment; and consumer and occupational health and safety, 
including the Occupational Safety and Health Administration. 
Medicaid represents about 68 percent of the spending in this 
function.
    Over the period 2001-2002, total budget authority [BA] in 
Function 550 rose from $182.1 billion to $201.1 billion, a 
10.4-percent increase. Over the period 1999-2002, total budget 
authority [BA] in Function 550 rose from $142.2 billion to 
$201.0 billion, a 13.8-percent average annual increase. The 
largest component of this growth was Medicaid, which increased 
from $108.0 billion to $144.8 billion. Even this increase 
represents a moderation of Medicaid growth compared with the 
early 1990s, 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 from $13.6 billion in fiscal year 1998 to $23.3 
billion in fiscal year 2002. The budget assumes that by fiscal 
year 2003, NIH funding will have doubled over 5 years, to $27.3 
billion.

                summary of committee-reported resolution

    The resolution calls for $223.5 billion in BA and $219.9 
billion in outlays in fiscal year 2003, an increase of 11.4 
percent in BA compared with fiscal year 2002. The function 
totals are $1,287.2 billion in BA and $1,276.1 billion in 
outlays over 5 years.
    For discretionary spending, the resolution calls for $48.4 
billion in BA and $44.5 billion in outlays in fiscal year 2003. 
The 5-year discretionary spending totals are $254.8 billion in 
BA and $245.6 billion in outlays.
    Mandatory spending in this function is $175.0 billion in BA 
and $175.4 billion in outlays in fiscal year 2003 and $1,032.4 
billion in BA and $1,030.5 billion in outlays over 5 years.
    The budget resolution assumes a total of $4.3 billion to 
protect the Nation from bio-terrorism. These funds include $650 
million for the National Pharmaceutical Stockpile and costs 
related to stockpiling smallpox vaccines and next-generation 
anthrax vaccines currently under development. The $4.3 billion 
also counters the threat of bio-terrorism with enhancements in 
hospitals and other public health facilities, research and 
development, pharmaceutical stockpiles, and a national 
information network for better detection of biological attacks 
as well as natural disease outbreaks. A total of $1.7 billion 
is assumed in the budget for bio-terrorism research, including 
genomic sequencing of pathogens, development of an improved 
anthrax vaccine, and NIH laboratory and research facilities 
construction related to bio-terrorism.
    The resolution assumes enactment of the National Vaccine 
Compensation Program Improvement Act and the President's 
proposal for abstinence education. The resolution also assumes 
Medicaid initiatives in fiscal year 2004.

                                              FUNCTION 550: HEALTH
                                            [In billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                        2002       2003       2004       2005       2006       2007    2003-2007
----------------------------------------------------------------------------------------------------------------
Total Spending:
    Budget Authority...............      200.7      223.5      237.9      255.8      274.5      295.5    1,287.2
    Outlays........................      194.9      219.9      236.6      253.9      272.6      293.0    1,276.1
Discretionary Spending:
    Budget Authority...............       45.8       48.4       49.6       50.9       52.3       53.5      254.8
    Outlays........................       39.9       44.5       47.7       49.8       51.2       52.5      245.6
Mandatory Spending:
    Budget Authority...............      154.8      175.0      188.3      204.8      222.2      242.0    1,032.4
    Outlays........................      154.9      175.4      188.9      204.2      221.5      240.5    1,030.5
----------------------------------------------------------------------------------------------------------------

                         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, and private 
fee-for-service plans. In addition to covering all Medicare-
covered services, such plans may add benefits or reduce cost-
sharing required by the traditional Medicare program.
    The budget provides $237.7 billion in budget authority [BA] 
for Medicare in fiscal year 2003, an increase of $7.4 billion 
dollars or 3 percent. Function 570 will grow from $237.7 
billion in fiscal year 2003 to $317.4 billion in 2007, a 6.6 
percent average annual increase over the next 5 years.
    Over the period 1999-2002, total BA in Function 570 rose 
from $190.6 billion to $230.3 billion, a 6.5 percent average 
annual increase over the period. Medicare actually experienced 
a decrease in spending from 1998 to 1999, although that 
slowdown was in contrast to the first half of the 1990's when 
Medicare spending experienced approximately 13 percent average 
annual growth rates.

                summary of committee-reported resolution

    The resolution calls for $237.7 billion in BA and $237.6 
billion in outlays in fiscal year 2003, an increase of 3 
percent in BA compared with fiscal year 2002. The function 
totals are $1.366 trillion in BA and $1.366 trillion in outlays 
over 5 years.
    For discretionary spending, the resolution calls for $3.6 
billion in BA and $3.6 billion in outlays in fiscal year 2003. 
The 5-year discretionary spending totals are $18.9 billion in 
BA and $18.8 billion in outlays.
    For mandatory spending, the resolution calls for $234.1 
billion in BA and $234.0 billion in outlays in fiscal year 
2003. The 5-year mandatory spending totals are $1.347 trillion 
in BA and $1.347 trillion in outlays over 5 years.

Medicare Modernization and Prescription Drug Benefit

    This function allocates $350 billion over 10 years for 
Medicare modernization, a prescription drug benefit, and 
adjustments to Medicare on a fee-for-service, capitated, or 
other basis. The committee intends that all these elements will 
be considered as part of a single comprehensive package.
    The $350 billion amount is $50 billion more than the amount 
contained in the fiscal year 2002 Budget Resolution Conference 
Report for Medicare reform and prescription drugs. The budget 
resolution does not preclude an authorizing committee from 
spending more than its allocation on Medicare initiatives as 
long as a committee's total net spending does not exceed its 
allocation. Funding for Medicare initiatives will be held in a 
reserve fund.
    Although the budget accommodates more funding for Medicare 
initiatives than the President, the budget endorses the broad 
principles the President has laid out for strengthening 
Medicare. They are the following:

   All seniors should have the option of a subsidized 
        prescription drug benefit as part of modernized 
        Medicare.

   Modernized Medicare should provide better coverage 
        for preventive care and serious illness.

   Today's beneficiaries and those approaching 
        retirement should have the option of keeping the 
        traditional plan with no changes.

   Medicare should make available better health 
        insurance options, like those available to all Federal 
        employees.

   Medicare legislation should strengthen the program's 
        long-term financial security.

   The management of the Government Medicare plan 
        should be strengthened to improve care for seniors.

   Medicare's regulations and administrative procedures 
        should be updated and streamlined, while the instances 
        of fraud and abuse should be reduced.

   Medicare should encourage high-quality health care 
        for all seniors.

The need for reform

    The principal arguments for Medicare reform are the 
following:
    Medicare's Financial Liabilities: According to the 2001 
Trustees Report, the Medicare HI Trust Fund is projected to be 
insolvent by 2029. But that is only part of Medicare's 
financial outlook.
    According to the Congressional Budget Office [CBO], the 
total Medicare Program (including both the HI and SMI Trust 
Funds) is already generating huge liabilities: in 2003, 
Medicare will require $71 billion in general revenues and, over 
10 years, Medicare will require $1.2 trillion in general 
revenues.
    Beyond CBO's 10-year projections, 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 retirees' benefits--will 
not keep pace with that of the retired population. The trustees 
project 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.
    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 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. Over the long term, 
Medicare spending will nearly quadruple its share of the 
economy.
    Medicare's Outmoded Benefit: Medicare was established in 
1965 and has lagged behind private health coverage over the 
years. Medicare's outmoded benefit does not cover prescription 
drugs, provide consistent coverage for many preventive 
treatments, support coordinated management of chronic diseases, 
or offer catastrophic coverage.
    Medicare Complexity: Providers have testified at 
congressional hearings that their participation in Medicare is 
becoming increasingly burdensome. Providers state that they are 
being inundated with a large volume of complicated, unclear, 
and inconsistent information from CMS. Moreover, because rules 
change frequently, providers understanding of billing rules may 
be obsolete and incorrect.
    The General Accounting Office [GAO] has prepared a report 
titled: Medicare: Provider Communications Can Be Improved. The 
report--requested in November 2000 by Messrs. Nussle and 
Chambliss, and Mrs. Johnson--gives the latest evidence of the 
need for fundamental Medicare reform. The report says in part: 
``[Medicare] information given to physicians by carriers is 
often difficult to use, out of date, inaccurate, and 
incomplete.'' The report also says: ``[T]he complexity of the 
environment in which CMS operates the Medicare program cannot 
be overstated.''

                                             FUNCTION 570: MEDICARE
                                            [In billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                        2002       2003       2004       2005       2006       2007    2003-2007
----------------------------------------------------------------------------------------------------------------
Total Spending:
    Budget Authority...............      230.3      237.7      245.6      272.9      292.4      317.4    1,366.0
    Outlays........................      226.3      237.6      245.9      272.8      292.2      317.7    1,366.1
Discretionary Spending:
    Budget Authority...............        3.6        3.6        3.7        3.8        3.9        4.0       18.9
    Outlays........................        3.6        3.6        3.7        3.7        3.8        3.9       18.8
Mandatory Spending:
    Budget Authority...............      226.6      234.1      241.9      269.1      288.5      313.4    1,347.1
    Outlays........................      222.7      234.0      242.2      269.0      288.3      313.7    1,347.3
----------------------------------------------------------------------------------------------------------------

                     FUNCTION 600: INCOME SECURITY

                              ----------                              


                            function summary

    The Income Security function covers most of the Federal 
Government's income support programs. The function includes 
general retirement and disability insurance (excluding Social 
Security)--mainly through the Pension Benefit Guaranty 
Corporation [PBGC]--and benefits to railroad retirees.
    Other components are Federal employee retirement and 
disability benefits (including military retirees); unemployment 
compensation; low-income housing assistance; food and nutrition 
assistance, including food stamps and school lunch subsidies; 
and other income security programs. They include Temporary 
Assistance to Needy Families [TANF]; Supplemental Security 
Income [SSI]; the refundable portion of the Earned Income 
Credit [EIC]; and the Low-Income Home Energy Assistance Program 
[LIHEAP].
    Agencies involved 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).
    Spending in this function grew from $243.5 billion in 
budget authority [BA] and $242.4 billion in outlays in fiscal 
year 1999 to $314.6 billion in BA and $319.1 billion in outlays 
in fiscal year 2002.

                summary of committee-reported resolution

    The resolution calls for $322.0 billion in BA and $322.4 
billion in outlays in fiscal year 2003, an increase of 2.4 
percent in BA compared with 2002. The function totals are 
$1.678 trillion in BA and $1.669 trillion in outlays over 5 
years.
    For fiscal year 2003 discretionary spending, the resolution 
calls for $44.9 billion in BA and $48.4 billion in outlays. The 
5-year discretionary spending totals are $237.8 billion in BA 
and $247.0 billion in outlays.
    Mandatory spending in this function is $277.1 billion in BA 
and $274.0 billion in outlays in fiscal year 2003; $1.440 
trillion in BA and $1.422 in outlays over 5 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. The budget 
assumes the President's recommended net new spending for re-
authorization of the 1996 law for the next 5 years, including 
the Temporary Assistance to Needy Families block grant and the 
Child Care entitlement to states.
    The budget resolution 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. In addition, 
the budget assumes the President's proposal to permit public 
housing authorities to obtain mortgages on their properties as 
a source of funding for capital improvements.
    Among the administration's policy proposals aimed at 
helping low-income families and children are the following:

   Providing $1.7 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 $4.7 billion 
        in fiscal year 2003, a level sufficient to serve all of 
        the estimated 7.8 million women and children eligible 
        for assistance.

                                          FUNCTION 600: INCOME SECURITY
                                            [In billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                        2002       2003       2004       2005       2006       2007    2003-2007
----------------------------------------------------------------------------------------------------------------
Total Spending:
    Budget Authority...............      314.6      322.0      325.4      334.5      344.0      352.0    1,678.0
    Outlays........................      319.1      322.4      323.8      332.6      341.8      348.0    1,668.5
Discretionary Spending:
    Budget Authority...............       43.2       44.9       47.3       48.2       48.4       48.9      237.8
    Outlays........................       47.5       48.4       49.4       50.0       50.0       49.2      247.0
Mandatory Spending:
    Budget Authority...............      271.3      277.1      278.0      286.3      295.7      303.1    1,440.2
    Outlays........................      271.6      274.0      274.3      282.6      291.7      298.9    1.421.5
----------------------------------------------------------------------------------------------------------------

                     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 Congressional Budget Act of 1974 and the 
Budget Enforcement Act of 1990, Social Security trust funds are 
considered to be ``off budget.'' But a small portion of 
spending within function 650--specifically a portion of the 
budget for the Office of the Inspector General of the Social 
Security Administration [SSA], the quinquennial adjustment for 
World War II veterans, and general fund transfers of taxes paid 
on Social Security benefits--are on budget.
    Total on-budget spending in this function grew from $10.8 
billion in budget authority [BA] and outlays in fiscal year 
1999 to $13.9 billion in BA and outlays in fiscal year 2002, a 
4-year cumulative increase of $3.1 billion, or 28.3 percent.

                summary of committee-reported resolution

    Total on-budget spending in the resolution is $14.3 billion 
in BA and outlays for fiscal year 2003, an increase of $392 
million in BA and outlays, or 2.8 percent, over the prior year. 
Between fiscal years 2003 and 2007, the resolution provides 
total on-budget spending of $80.4 billion in BA and outlays, a 
cumulative 5-year increase of $3.7 billion in BA and outlays, 
or 26 percent over fiscal year 2002.
    For fiscal year 2003 on-budget discretionary spending, the 
resolution calls for $21 million in BA and outlays, an increase 
of $2 million in BA and outlays, or 10.5 percent, over fiscal 
year 2002. Between fiscal years 2003 and 2007, the resolution 
provides on-budget discretionary spending of $109 million in BA 
and $107 million in outlays, a 5-year cumulative increase of $4 
million in BA and outlays, or 15 percent over fiscal year 2002.
    On-budget mandatory spending in this function is $14.3 
billion in BA in fiscal year 2003, an increase of $390 million, 
or 2.8 percent over fiscal year 2002. Between fiscal years 2003 
and 2007, the resolution provides on-budget mandatory spending 
of $80.4 billion in BA and outlays, a 5-year cumulative 
increase of $4.1 billion in BA and outlays, or 30 percent over 
fiscal year 2002.
    The largest component of on-budget spending in Function 650 
is the transfer of income taxes paid on benefits to the OASDI 
Trust Funds. Taxes on Social Security benefits are collected as 
Federal income taxes, then an equivalent payment to the Social 
Security Trust Funds is made from the general funds of the 
Treasury. Transfers of estimated aggregate tax liabilities are 
made quarterly and then adjusted as actual receipts are known. 
In fiscal year 2003, the estimated amount of income tax 
transfers is $13.3 billion in BA, an increase of $833 million 
or 6.7 percent over fiscal year 2002.
    Although OASDI benefits paid to Social Security recipients 
are off budget, it is notable that beneficiaries will receive a 
2.6-percent cost-of-living adjustment [COLA] in calendar year 
2002 and an estimated 1.8-percent COLA in calendar year 2003. 
The level of the COLA is determined annually by the Social 
Security Administration. Over 5 years, the estimated COLA for 
Social Security recipients ranges from 1.8 percent (in calendar 
year 2003) to 2.4 percent (in calendar year 2007).
    Experts agree that Social Security's spending path is 
unsustainable in the long run. This trend is driven largely by 
demographics. As the labor force shrinks relative to the number 
of retirees, and as beneficiaries live substantially longer in 
retirement, the costs of Social Security soon will outstrip its 
revenue base.
    According to the most recent report of the Social Security 
Trustees (March 2001), benefit costs will outstrip payroll tax 
revenues as early as 2016. In this first year, the cash 
shortfall in Social Security will total $28 billion (in 
constant 2001 dollars). At this time, SSA will redeem a portion 
of the special obligations bonds held by the Social Security 
trust funds. To meet this obligation, the Treasury will need to 
increase taxes, increase public debt, or cut other government 
programs by an equivalent amount.
    By 2020, the annual cash shortfall will reach $182 billion, 
and by 2038 the Social Security trust funds will run out of 
bonds entirely. By then, the annual cash shortfall will exceed 
$1 trillion.
    In December 2001, the President's Commission to Strengthen 
Social Security released its analysis of the financial problems 
confronting Social Security and its recommendations for 
addressing them. The Commission, comprising both Republicans 
and Democrats, determined that reforming Social Security to 
include personal retirement accounts would lead to better long-
run outcomes for future beneficiaries, the Social Security 
program, and the economy as a whole. Further, the Commission 
recommended that Congress and the President engage in a period 
of national discussion for at least one year to carefully 
consider all policy alternative, as well as the consequences of 
inaction, and then take the appropriate steps necessary to 
strengthen Social Security.

                                          FUNCTION 650: SOCIAL SECURITY
                                   [On-budget amounts, in billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                        2002       2003       2004       2005       2006       2007    2003-2007
----------------------------------------------------------------------------------------------------------------
Total Spending:
    Budget Authority...............       13.9       14.3       15.2       16.1       16.9       18.0       80.4
    Outlays........................       13.9       14.3       15.2       16.1       16.9       18.0       80.4
Discretionary Spending:
    Budget Authority...............        (*)        (*)        (*)        (*)        (*)        (*)        0.1
    Outlays........................        (*)        (*)        (*)        (*)        (*)        (*)        0.1
Mandatory Spending:
    Budget Authority...............       13.9       14.3       15.1       16.0       16.8       18.0       80.3
    Outlays........................       13.9       14.3       15.1       16.0       16.8       18.0       80.3
----------------------------------------------------------------------------------------------------------------
Note.--* Less than $50 million.

              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 25 
million veterans, but over the next 20 years this number will 
decline by one-third, to about 17 million.
    Over the period 1999-2002, total budget authority [BA] in 
Function 700 rose from $44.2 billion to $50.9 billion, a 4.8-
percent average annual increase. The largest component of this 
growth was medical care, which increased from $17.3 billion to 
$22.1 billion. Over this period, outlays rose from $43.2 
billion to $50.7 billion, a 5.5-percent average annual 
increase.

                SUMMARY OF COMMITTEE-REPORTED RESOLUTION

    The resolution calls for $56.9 billion in BA and $56.7 
billion in outlays in fiscal year 2003, an increase of 11.7 
percent in BA compared with fiscal year 2002. The function 
totals are $306.2 billion in BA and $305.0 billion in outlays 
over 5 years.
    For discretionary spending, the resolution calls for $26.8 
billion in BA and $26.5 billion in outlays in fiscal year 2003. 
Discretionary spending is $2.8 billion above the fiscal year 
2002 level. These levels are sufficient to 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 places of honor. The 
$1,500 deductible for category 7 veterans proposed in the 
administration's fiscal year 2003 budget is not assumed in the 
resolution.
    Mandatory spending in this function is $30.1 billion in BA 
and $30.2 billion in outlays in fiscal year 2003 and $167.3 
billion in BA and $166.9 billion in outlays over 5 years.
    The resolution assumes a significant increase in spending 
for retired military personnel who are severely disabled. While 
a specific policy is assumed in the resolution, the committee 
of jurisdiction, need not adopt this specific proposal.
    Concurrent receipt for disabled military retirees: Building 
on legislation reported by the Committee on Armed Services, 
which provided ``special compensation'' for severely disabled 
military retirees, the budget resolution assumes substantial 
funding for progress on concurrent receipt. It provides $516 
million in 2003 and $5.8 billion over the 5-year period 2003-
2007. The committee of jurisdiction will determine the 
concurrent receipt policy and might act to provide enhanced 
retirement benefits for all retirees currently subject to the 
offset. The budget resolution assumes enhanced benefits for 
severely disabled military retirees, as show in the following 
example, which is presented for illustrative purposes only. The 
2003 funds would support a 250 percent increase in the current 
``special compensation'' payments for severely disabled (60 
percent and higher) providing these higher payment to all 
military retirees with VA disability compensation ratings of 60 
percent or higher. Thus, on 1 January 2003, monthly payments 
would increase by 250 percent, as indicated in Table 1.

                                 TABLE 1
------------------------------------------------------------------------
                      2002 Monthly
  VA disability         special         2003 Monthly      2007 Monthly
      rating          compensation        payments          payments
                        payments
------------------------------------------------------------------------
            60                $50              $125              $790
            70                100               250               995
            80                100               250             1,155
            90                200               500             1,299
           100                300               750             2,163
------------------------------------------------------------------------

    The budget resolution assumption of substantial funding for 
progress on concurrent receipt are reflected in budget levels 
for function 050, National Defense. The discussion is presented 
here for completeness.

                                  FUNCTION 700: VETERANS BENEFITS AND SERVICES
                                            [In billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                        2002       2003       2004       2005       2006       2007    2003-2007
----------------------------------------------------------------------------------------------------------------
Total Spending:
    Budget Authority...............       50.9       56.9       59.1       61.2       63.4       65.6      306.2
    Outlays........................       50.7       56.7       58.9       63.5       63.2       62.6      305.0
Discretionary Spending:
    Budget Authority...............       23.9       26.8       27.2       27.7       28.3       28.9      138.8
    Outlays........................       23.8       26.5       27.1       27.6       28.2       28.8      138.1
Mandatory Spending:
    Budget Authority...............       27.0       30.1       32.0       33.5       35.1       36.6      167.3
    Outlays........................       26.9       30.2       31.8       35.9       35.1       33.9      166.9
----------------------------------------------------------------------------------------------------------------

                FUNCTION 750: ADMINISTRATION OF JUSTICE

                              ----------                              


                            function summary

    In the wake of the terrorist attacks of 11 September 2001, 
the Federal Government has made homeland defense and security 
its highest domestic priority. The resolution recognizes this 
priority and provides increased funding for securing the 
Nation's borders, enhancing Federal, State, and local law 
enforcement, stopping terrorist financing, and bringing 
terrorist conspirators to justice.
    This function supports all major Federal justice and law 
enforcement programs and activities. Function 750 includes 
funding for the Department of Justice, the Federal law 
enforcement activities of the Department of the Treasury, the 
Federal courts, and criminal justice assistance to State and 
local governments.
    Spending in this function grew from $27.6 billion in budget 
authority [BA] and $26.1 billion in outlays in fiscal year 1999 
to $36.4 billion in BA and $33.6 billion in outlays in fiscal 
year 2002 (including emergency spending of $2.8 billion in BA 
and $2.1 billion in outlays).

                summary of committee-reported resolution

    The resolution calls for $36.9 billion in BA and $39.3 
billion in outlays in fiscal year 2003, an increase of 1 
percent in BA compared with fiscal year 2002. The function 
totals are $192.9 billion in BA and $198.1 billion in outlays 
over 5 years.
    For fiscal year 2003 discretionary spending, the resolution 
calls for $32.1 billion in BA and $35.1 billion in outlays. 
This is a decrease of $2.4 billion in BA and an increase of 
$3.0 billion in outlays from fiscal year 2002.
    Mandatory spending in this function is $4.8 billion in BA 
and $4.3 billion in outlays in fiscal year 2003; and $16.6 
billion in BA and $16.8 billion in outlays over 5 years. Over 
the 2003-2007 period, mandatory spending declines by $2.2 
billion, primarily as a result of benefit payments from the 
September 11 Victim Compensation Fund.
    To support flexible grant funding for State and local law 
enforcement, the resolution assumes the President's proposal 
for merging Byrne Grants, Local Law Enforcement Block Grants, 
and the Community Oriented Policing Services Hiring Grants into 
a new $800 million Justice Assistance Grant Program. The 
resolution also assumes $380 million in BA and a corresponding 
level of outlays for the Immigration and Naturalization Service 
to implement a visa tracking system as part of a comprehensive 
plan to protect the United States and its territories from 
threats of terrorist attack.
    As part of an en bloc amendment adopted by the committee, 
the budget resolution decreases Function 750 by $400 million in 
BA and outlays in fiscal year 2003, fiscal year 2004, and 
fiscal year 2004, and fiscal year 2005, and provides a 
corresponding increase in Function 800 to reflect the provision 
of funding for matching grants, administered by the Federal 
Election Commission's Office of Election Administration or by a 
new Federal elections administration entity, to enable State 
and local jurisdictions to take advantage of improved voting 
technologies and administration, including voting machines, 
registration systems, voter education, and poll worker 
training.

                                     FUNCTION 750: ADMINISTRATION OF JUSTICE
                                            [In billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                        2002       2003       2004       2005       2006       2007    2003-2007
----------------------------------------------------------------------------------------------------------------
Total Spending:
    Budget Authority...............       36.4       36.9       39.7       37.6       38.9       39.8      192.9
    Outlays........................       33.6       39.3       42.2       38.2       38.8       39.6      198.1
Discretionary Spending:
    Budget Authority...............       34.5       32.1       35.6       35.1       36.3       37.2      176.3
    Outlays........................       32.0       35.1       37.6       35.5       36.2       36.9      181.2
Mandatory Spending:
    Budget Authority...............        1.9        4.8        4.1        2.5        2.6        2.6       16.6
    Outlays........................        1.6        4.3        4.6        2.7        2.6        2.6       16.8
----------------------------------------------------------------------------------------------------------------

                    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 the Treasury; the property and personnel costs of 
the General Services Administration and 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 [IRS] accounts for about half the spending in this 
function.
    Over the period 1999-2002, total budget authority [BA] in 
Function 800 rose from $17.0 billion to $17.1 billion, a less 
than 1-percent average annual increase. Outlays rose from $15.6 
billion in fiscal year 1999 to $18.3 billion in fiscal year 
2002, a 5.8-percent average annual increase.

                summary of committee-reported resolution

    The budget resolution calls for $17.6 billion in BA and 
$17.4 billion in outlays in fiscal year 2003, an increase of 
2.9 percent in BA compared with fiscal year 2002. The 5-year 
spending totals are $91.3 billion in BA and $90.7 billion in 
outlays. For discretionary spending, the budget resolution 
calls for $16.0 billion in BA and $15.9 billion in outlays in 
fiscal year 2003. The 5-year discretionary spending totals are 
$82.6 billion in BA and $82.1 billion in outlays. Mandatory 
spending in this function is $1.5 billion in BA and $1.5 
billion in outlays in fiscal year 2003, and $8.7 billion in BA 
and $8.6 billion in outlays over 5 years.
    The resolution provides the necessary funding for the IRS 
to continue the reforms and modernization required by the 1998 
IRS Restructuring and Reform Act to improve customer service 
and provide taxpayers accurate information.
    As part of an en bloc amendment adopted by the committee, 
the budget resolution increases Function 800 by $400 million in 
BA and outlays in fiscal year 2003, fiscal year 2004, and 
fiscal year 2005, and provides a corresponding decrease in 
Function 750 to reflect the provision of funding for matching 
grants, administered by the Federal Election Commission's 
Office of Election Administration or by a new Federal elections 
administration entity, to enable State and local jurisdictions 
to take advantage of improved voting technologies and 
administration, including voting machines, registration 
systems, voter education, and poll worker training.

                                        FUNCTION 800: GENERAL GOVERNMENT
                                            [In billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                        2002       2003       2004       2005       2006       2007    2003-2007
----------------------------------------------------------------------------------------------------------------
Total Spending:
    Budget Authority...............       17.1       17.6       18.1       18.4       18.4       18.8       91.3
    Outlays........................       17.7       17.4       18.2       18.3       18.2       18.6       90.7
Discretionary Spending:
    Budget Authority...............       15.6       16.0       16.3       16.6       16.6       17.0       82.6
    Outlays........................       16.0       15.9       16.3       16.6       16.5       16.8       82.1
Mandatory Spending:
    Budget Authority...............        1.4        1.5        1.8        1.8        1.8        1.8        8.7
    Outlays........................        1.7        1.5        1.9        1.7        1.8        1.7        8.6
----------------------------------------------------------------------------------------------------------------

                       FUNCTION 900: NET INTEREST

                              ----------                              


                            function summary

    Net interest is the interest paid for the Federal 
Government's borrowing. The accounting of net interest in the 
budget resolution includes only the on-budget component of 
interest spending. Function 900 is a mandatory payment, with no 
discretionary components.
    On-budget total budget authority [BA] and outlays for net 
interest has gone from $241.2 billion in fiscal year 1998 to 
$177.9 billion in fiscal year 2002, an overall decrease of 
26.2-percent.

                summary of committee-reported resolution

    The resolution estimates $178.7 billion for net interest in 
fiscal year 2003, an $0.8 billion or 0.4-percent increase over 
fiscal year 2002. Over the 2003-2007 period, net interest is 
estimated to grow an average of 0.3-percent per year.

    On-Budget Interest--The resolution provides $262.5 billion 
in budget authority [BA] for function 900 in fiscal year 2003, 
a $7.8 billion or 3.1 percent increase over fiscal year 2002. 
Over the 2003-2007 period, BA grows an average of 3.6 percent 
per year.

    Off-Budget Interest--The resolution assumes -$83.9 billion 
for interest credited to the Social Security Trust Fund in 
fiscal year 2003, $7.0 billion or 9.2 percent more than fiscal 
year 2002. Over the period 2003-2007, interest credited to the 
Social Security Trust Fund is expected to grow an average of 
9.9 percent per year.

    Due to the triple threat of the war against terrorism, the 
need to protect the homeland and the economic recession, on-
budget interest spending rises, though at a relatively moderate 
pace, from $275 billion in 2001 to $302 billion in 2007. But 
this increase masks the real benefit 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 actually 
being reduced. It declines from $206 billion in 2001 to $180 
billion in 2007.
    Spending in this function fell from $281.8 billion in BA 
and outlays in fiscal year 1999 to $254.7 billion in BA and 
outlays in fiscal year 2002; and from $275.0 billion in BA and 
outlays in fiscal year 2001 to $254.7 billion in BA and outlays 
in fiscal year 2002.

                                           FUNCTION 900: NET INTEREST
                                            [In billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                        2002       2003       2004       2005       2006       2007    2003-2007
----------------------------------------------------------------------------------------------------------------
Total Spending:
    Budget Authority...............      177.9      178.7      185.3      185.9      183.6      180.3      913.8
    Outlays........................      177.9      178.7      185.3      185.9      183.6      180.3      913.8
On-Budget:
    Budget Authority...............      254.7      262.5      277.3      286.9      294.6      302.4    1,423.8
    Outlays........................      254.7      262.5      277.3      286.9      294.6      302.4    1,423.8
Off-Budget:
    Budget Authority...............      -76.8      -83.9      -92.0     -101.0     -111.0     -122.1     -510.0
    Outlays........................      -76.8      -83.9      -92.0     -101.0     -111.0     -122.1     -510.0
----------------------------------------------------------------------------------------------------------------

                        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

    The resolution provides -$689 million in budget authority 
[BA] and -$1.8 billion in outlays for the function in fiscal 
year 2003, a $587 million or 46-percent increase in BA over 
fiscal year 2002. Over the 2003-2007 period, budget authority 
decreases insignificantly.
    For discretionary spending, the budget resolution calls for 
-$589 million in budget authority [BA] and -$1.7 billion in 
outlays in fiscal year 2003. The 5-year spending totals are 
-$3.1 billion in BA and -$4.1 billion in outlays. The majority 
of these savings are a multi-agency rescission in fiscal year 
2002 of low-priority programs and out-year program 
prioritization.
    For mandatory spending, the resolution provides -$100 
million in BA and outlays in fiscal year 2003. The 5-year 
spending totals are -$665 million in BA and outlays. This 
represents the baseline spectrum relocation fee in current law.

                                            FUNCTION 920: ALLOWANCES
                                            [In billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                        2002       2003       2004       2005       2006       2007    2003-2007
----------------------------------------------------------------------------------------------------------------
Total Spending:
    Budget Authority...............       -1.3       -0.7       -0.9       -0.8       -0.6       -0.7       -3.7
    Outlays........................        0.0       -1.8       -0.9       -0.8       -0.6       -0.7       -4.7
Discretionary Spending:
    Budget Authority...............       -1.3       -0.6       -0.6       -0.6       -0.6       -0.6       -3.1
    Outlays........................        0.0       -1.7       -0.5       -0.6       -0.6       -0.6       -4.1
Mandatory Spending:
    Budget Authority...............        0.0       -0.1       -0.3       -0.2        0.0       -0.1       -0.7
    Outlays........................        0.0       -0.1       -0.3       -0.2        0.0       -0.1       -0.7
----------------------------------------------------------------------------------------------------------------

            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 
employers 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 mandatory negative budget authority and outlays.

                summary of committee-reported resolution

    The resolution provides $57.8 billion in undistributed off-
setting receipts in fiscal year 2003, which are treated as 
negative budget authority [BA] and outlays in the function, 
$11.3 billion or 24-percent more receipts than fiscal year 
2002. Over the 2003-2007 period, undistributed off-setting 
receipts increase an average of 3.2-percent per year.

    On-Budget Receipts--The resolution provides -$48.2 billion 
in BA and outlays for the function in fiscal year 2003, a $11.0 
billion or 29-percent decrease below fiscal year 2002. Over the 
2003-2007 period, BA and outlays further decrease an average of 
2.5-percent per year. The on-budget receipts in this function 
consist of 7 items at baseline levels: Outer Continental Shelf 
receipts; spectrum auction receipts; agency contributions to 
the HI trust fund; agency contributions to the military 
retirement fund; Postal Service contributions to the Civil 
Service Retirement and Disability Fund; agency contributions to 
the DoD Retiree Health Care Fund; and other agency 
contributions to the civil and foreign service retirement and 
disability fund.

    Off-Budget Receipts--The resolution provides -$9.6 billion 
in BA and outlays for the function in fiscal year 2003, a $321 
million or 3.5-percent decrease below fiscal year 2002. Over 
the 2003-2007 period, BA and outlays further decrease an 
average of 6.7-percent per year. The off-budget receipts in 
this function are agencies' payments to the Social Security 
trust funds at baseline.

                                 FUNCTION 950: UNDISTRIBUTED OFFSETTING RECEIPTS
                                            [In billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                        2002       2003       2004       2005       2006       2007    2003-2007
----------------------------------------------------------------------------------------------------------------
Total Receipts:
    Budget Authority...............      -46.5      -57.8      -66.4      -68.4      -62.9      -65.6     -321.1
    Outlays........................      -46.5      -57.8      -66.4      -68.4      -69.2      -65.6     -321.1
On-Budget Receipts:
    Budget Authority...............      -37.2      -48.2      -56.2      -57.4      -51.2      -53.2     -266.1
    Outlays........................      -37.2      -48.2      -56.2      -57.4      -51.2      -53.2     -266.1
Off-Budget Receipts:
    Budget Authority...............       -9.2       -9.6      -10.2      -11.0      -11.7      -12.4      -55.0
    Outlays........................       -9.2       -9.6      -10.2      -11.0      -11.7      -12.4      -55.0
----------------------------------------------------------------------------------------------------------------


                  TABLE 10.--FISCAL YEAR 2003 BUDGET RESOLUTION AS REPORTED BY THE HOUSE BUDGET COMMITTEE, TOTAL SPENDING AND REVENUES
                                                                [In billions of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                            Fiscal year                                 2002        2003        2004        2005        2006        2007      2003-2007
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                         SUMMARY
Total Spending:
    BA.............................................................   2,065.960   2,158.232   2,219.574   2,323.033   2,428.600   2,539.936   11,669.375
    OT.............................................................   2,033.215   2,122.808   2,192.393   2,289.095   2,382.671   2,479.205   11,466.172
    On-Budget:
        BA.........................................................   1,701.964   1,784.032   1,839.183   1,928.997   2,019.464   2,113.668    9,685.344
        OT.........................................................   1,671.678   1,756.223   1,813.604   1,897.834   1,977.123   2,057.436    9,502.220
    Off-Budget:
        BA.........................................................     363.996     374.200     380.391     394.036     409.136     426.268    1,984.031
        OT.........................................................     361.537     366.585     378.789     391.261     405.548     421.769    1,963.952
    Revenues:
        Total......................................................   1,967.544   2,077.236   2,200.077   2,356.181   2,471.621   2,592.512   11,697.627
        On-budget..................................................   1,450.346   1,531.893   1,626.605   1,747.988   1,837.957   1,927.213    8,671.656
        Off-budget.................................................     517.198     545.343     573.472     608.193     633.664     665.299    3,025.971
    Surplus/Deficit (-):
        Total......................................................     -65.671     -45.572       7.684      67.086      88.950     113.307      231.455
        On-budget..................................................    -221.332    -224.330    -186.999    -149.846    -139.166    -130.223     -830.564
        Off-budget.................................................     155.661     178.758     194.683     216.932     228.116     243.530    1,062.019
Debt Held by the Public (end of year)..............................       3,437       3,495       3,503       3,445       3,365       3,264           NA
Debt Subject to Limit (end of year)................................       6,059       6,414       6,760       7,069       7,366       7,655           NA

                                                                       BY FUNCTION
National Defense (050):
    BA.............................................................     347.514     393.831     401.640     422.740     444.243     466.458    2,128.912
    OT.............................................................     344.777     375.261     390.579     409.696     425.090     439.181    2,039.807
International Affairs (150):
    BA.............................................................      22.156      23.752      24.683      25.481      26.137      27.043      127.096
    OT.............................................................      23.403      22.343      22.675      23.165      23.769      24.467      116.419
General Science, Space, and Technology (250):
    BA.............................................................      22.065      22.743      23.398      23.917      24.476      25.055      119.589
    OT.............................................................      21.645      22.095      22.798      23.577      24.073      24.667      117.210
Energy (270):
    BA.............................................................       0.561       0.316       0.157       0.687       0.526       0.532        2.218
    OT.............................................................       0.510       0.364       0.129       0.644       0.467       0.454        2.058
Natural Resources and Environment (300):
    BA.............................................................      30.115      29.215      30.546      31.449      30.851      31.474      153.535
    OT.............................................................      29.490      29.849      30.356      30.937      31.686      32.038      154.866
Agriculture (350):
    BA.............................................................      28.822      23.641      22.779      21.098      20.231      20.088      107.837
    OT.............................................................      28.663      24.054      22.669      21.089      20.247      20.116      108.175
Commerce and Housing Credit (370):
    BA.............................................................      10.541      13.954       9.642       9.285       8.405      10.602       51.888
    OT.............................................................       3.617       3.537       4.891       2.960       1.015       1.567       13.970
    On-budget:
        BA.........................................................       7.728       8.800       9.274       8.798       8.015       9.405       44.292
        OT.........................................................       1.602       4.985       4.192       3.128       1.910       2.361       16.576
    Off-budget:
        BA.........................................................       2.813       5.154       0.368       0.487       0.390       1.197        7.596
        OT.........................................................       2.015      -1.448       0.699      -0.168      -0.895      -0.794       -2.606
Transportation (400):
    BA.............................................................      65.314      63.447      66.950      67.561      68.221      68.897      335.076
    OT.............................................................      61.319      60.646      59.425      59.967      61.282      63.266      304.586
Community and Regional Development (450):
    BA.............................................................      18.459      14.668      15.315      15.515      15.895      16.295       77.688
    OT.............................................................      15.292      17.352      17.961      17.461      15.705      15.548       84.027
Education, Training, Employment and Social Services (500):
    BA.............................................................      79.243      81.087      83.291      86.527      89.513      92.784      433.202
    OT.............................................................      71.358      79.104      81.783      84.065      86.400      89.309      420.661
Health (550):
    BA.............................................................     200.662     223.486     237.880     255.767     274.526     295.491    1,287.150
    OT.............................................................     194.860     219.917     236.608     253.917     272.648     292.985    1,276.075
Medicare (570):
    BA.............................................................     230.256     237.704     245.612     272.903     292.418     317.411    1,366.048
    OT.............................................................     226.313     237.598     245.856     272.795     292.173     317.667    1,366.089
Income Security (600):
    BA.............................................................     314.573     322.034     325.372     334.538     344.039     352.017    1,678.000
    OT.............................................................     319.131     322.385     323.791     332.599     341.754     348.019    1,668.548
Social Security (650):
    BA.............................................................     461.161     476.769     497.460     521.660     548.305     577.629    2,621.823
    OT.............................................................     459.501     475.756     495.527     519.539     546.002     575.120    2,611.944
    On-budget:
        BA.........................................................      13.911      14.303      15.170      16.063      16.863      18.013       80.412
        OT.........................................................      13.912      14.303      15.170      16.062      16.863      18.012       80.410
    Off-budget:
        BA.........................................................     447.250     462.466     482.290     505.597     531.442     559.616    2,541.411
        OT.........................................................     445.589     461.453     480.357     503.477     529.139     557.108    2,531.534
Veterans Benefits and Services (700):
    BA.............................................................      50.919      56.858      59.127      61.220      63.401      65.550      306.156
    OT.............................................................      50.696      56.733      58.888      63.473      63.246      62.642      304.982
Administration of Justice (750):
    BA.............................................................      36.425      36.948      39.663      37.606      38.880      39.776      192.873
    OT.............................................................      33.605      39.329      42.215      38.196      38.775      39.550      198.065
General Government (800):
    BA.............................................................      17.069      17.565      18.067      18.426      18.442      18.788       91.288
    OT.............................................................      17.655      17.373      18.193      18.384      18.227      18.546       90.673
Net Interest (900):
    BA.............................................................     177.871     178.664     185.291     185.873     183.646     180.345      913.819
    OT.............................................................     177.870     178.664     185.290     185.872     183.645     180.344      913.815
    On-budget:
        BA.........................................................     254.695     262.520     277.326     286.887     294.598     302.442    1,423.773
        OT.........................................................     254.694     262.520     277.325     286.886     294.597     302.441    1,423.769
    Off-budget:
        BA.........................................................     -76.824     -83.856     -92.035    -101.014    -110.952    -122.097     -509.954
        OT.........................................................     -76.824     -83.856     -92.035    -101.014    -110.952    -122.097     -509.954
Allowances (920):
    BA.............................................................      -1.276      -0.689      -0.917      -0.816      -0.631      -0.696       -3.749
    OT.............................................................         0.0      -1.791      -0.859      -0.787      -0.609      -0.678       -4.724
Undistributed Offsetting Receipts (950):
    BA.............................................................     -46.490     -57.761     -66.382     -68.404     -62.924     -65.603     -321.074
    OT.............................................................     -46.490     -57.761     -66.382     -68.404     -62.924     -65.603     -321.074
    On-budget:
        BA.........................................................     -37.247     -48.197     -56.150     -57.370     -51.180     -53.155     -266.052
        OT.........................................................     -37.247     -48.197     -56.150     -57.370     -51.180     -53.155     -266.052
    Off-budget:
        BA.........................................................      -9.243      -9.564     -10.232     -11.034     -11.744     -12.448      -55.022
        OT.........................................................      -9.243      -9.564     -10.232     -11.034     -11.744     -12.448      -55.022
--------------------------------------------------------------------------------------------------------------------------------------------------------

      

 TABLE 11.--FISCAL YEAR 2003 BUDGET RESOLUTION AS REPORTED BY THE HOUSE BUDGET COMMITTEE, DISCRETIONARY SPENDING
                                            [In billions of dollars]
----------------------------------------------------------------------------------------------------------------
           Fiscal year                2002       2003       2004       2005       2006       2007     2003-2007
----------------------------------------------------------------------------------------------------------------
                                                     SUMMARY
Total Spending:
    BA...........................    709.290    759.059    780.807    809.458    837.672    870.178    4,057.174
    OT...........................    731.975    781.470    809.814    833.459    853.993    877.218    4,155.954
Defense:
    BA...........................    347.570    392.745    400.502    421.498    442.515    464.415    2,121.675
    OT...........................    344.792    374.867    389.943    408.706    423.587    437.317    2,034.420
Nondefense:
    BA...........................    361.720    366.314    380.305    387.960    395.157    405.763    1,935.499
    OT...........................    387.183    406.603    419.871    424.753    430.406    439.901    2,121.534

                                                   BY FUNCTION
National Defense (050):
    BA...........................    347.570    392.745    400.502    421.498    442.515    464.415    2,121.675
    OT...........................    344.792    374.867    389.943    408.706    423.587    437.317    2,034.420
International Affairs (150):
    BA...........................     24.097     25.315     25.961     26.656     27.263     27.928      133.123
    OT...........................     26.800     25.409     25.764     26.291     26.886     27.456      131.806
General Science, Space, and
 Technology (250):
    BA...........................     21.930     22.601     23.379     23.901     24.460     25.038      119.379
    OT...........................     21.497     21.949     22.697     23.522     24.045     24.644      116.857
Energy (270):
    BA...........................      3.228      3.264      3.399      3.495      3.573      3.652       17.383
    OT...........................      3.281      3.371      3.428      3.514      3.581      3.645       17.539
Natural Resources and Environment
 (300):
    BA...........................     29.013     27.579     28.156     28.799     28.154     28.835      141.523
    OT...........................     28.853     28.703     28.596     29.010     29.450     29.841      145.600
Agriculture (350):
    BA...........................      5.661      4.859      5.606      5.534      5.663      5.804       27.466
    OT...........................      5.937      5.517      5.527      5.530      5.628      5.815       28.017
Commerce and Housing Credit
 (370):
    BA...........................     -0.021     -0.534     -0.204     -0.535     -0.925      0.054       -2.144
    OT...........................      0.345     -0.335     -0.254     -0.593     -1.004     -0.043       -2.229
    On-budget:
        BA.......................     -0.021     -0.534     -0.204     -0.535     -0.925      0.054       -2.144
        OT.......................      0.345     -0.335     -0.254     -0.593     -1.004     -0.043       -2.229
    Off-budget:
        BA.......................  .........  .........  .........  .........  .........  .........  ...........
        OT.......................  .........  .........  .........  .........  .........  .........  ...........
Transportation (400):
    BA...........................     18.811     20.827     20.977     21.451     21.954     22.476      107.685
    OT...........................     54.767     57.420     57.451     58.031     59.381     61.370      293.653
Community and Regional
 Development (450):
    BA...........................     18.365     15.135     15.632     15.896     16.268     16.653       79.584
    OT...........................     15.258     17.956     18.600     18.154     16.414     16.258       87.382
Education, Training, Employment
 and Social Services (500):
    BA...........................     71.563     72.060     74.256     76.814     79.302     82.095      384.527
    OT...........................     63.919     70.350     72.747     74.634     76.504     79.051      373.286
Health (550):
    BA...........................     45.849     48.442     49.596     50.923     52.295     53.524      254.780
    OT...........................     39.922     44.502     47.696     49.750     51.174     52.503      245.625
Medicare (570):
    BA...........................      3.648      3.619      3.697      3.782      3.874      3.969       18.941
    OT...........................      3.590      3.647      3.664      3.748      3.840      3.932       18.831
Income Security (600):
    BA...........................     43.229     44.940     47.348     48.242     48.378     48.885      237.793
    OT...........................     47.505     48.399     49.448     49.954     50.031     49.167      246.999
Social Security (650):
    BA...........................      3.528      3.858      4.103      4.197      4.294      4.396       20.848
    OT...........................      3.743      3.989      4.080      4.169      4.266      4.366       20.870
    On-budget:
        BA.......................      0.019      0.021      0.021      0.022      0.022      0.023        0.109
        OT.......................      0.020      0.021      0.021      0.021      0.022      0.022        0.107
    Off-budget:
        BA.......................      3.509      3.837      4.082      4.175      4.272      4.373       20.739
        OT.......................      3.723      3.968      4.059      4.148      4.244      4.344       20.763
Veterans Benefits and Services
 (700):
    BA...........................     23.933     26.781     27.164     27.705     28.295     28.903      138.848
    OT...........................     23.764     26.500     27.057     27.569     28.163     28.767      138.056
Administration of Justice (750):
    BA...........................     34.525     32.116     35.552     35.085     36.328     37.193      176.274
    OT...........................     32.023     35.050     37.599     35.471     36.186     36.927      181.233
General Government (800):
    BA...........................     15.637     16.041     16.285     16.631     16.612     17.004       82.573
    OT...........................     15.979     15.867     16.315     16.586     16.470     16.830       82.068
Allowances (920):
    BA...........................     -1.276     -0.589     -0.602     -0.616     -0.631     -0.646       -3.084
    OT...........................  .........     -1.691     -0.544     -0.587     -0.609     -0.628       -4.059
----------------------------------------------------------------------------------------------------------------


   TABLE 12.--FISCAL YEAR 2003 BUDGET RESOLUTION AS REPORTED BY THE HOUSE BUDGET COMMITTEE, MANDATORY SPENDING
                                            [In billions of dollars]
----------------------------------------------------------------------------------------------------------------
         Fiscal year             2002        2003        2004        2005        2006        2007      2003-2007
----------------------------------------------------------------------------------------------------------------
                                                     SUMMARY
Total Spending:
    BA......................   1,356.670   1,399.173   1,438.767   1,513.575   1,590.928   1,669.758   7,612.201
    OT......................   1,301.240   1,341.338   1,382.579   1,455.636   1,528.678   1,601.987   7,310.218
    On-budget:
        BA..................     996.183   1,028.810   1,062.458   1,123.714   1,186.064   1,247.863   5,648.909
        OT..................     943.426     978.721   1,007.849   1,068.523   1,127.374   1,184.562   5,367.029
    Off-budget:
        BA..................     360.487     370.363     376.309     389.861     404.864     421.895   1,963.292
        OT..................     357.814     362.617     374.730     387.113     401.304     417.425   1,943.189

                                                   BY FUNCTION
National Defense (050):
    BA......................      -0.056       1.086       1.138       1.242       1.728       2.043       7.237
    OT......................      -0.015       0.394       0.636       0.990       1.503       1.864       5.387
International Affairs (150):
    BA......................      -1.941      -1.563      -1.278      -1.175      -1.126      -0.885      -6.027
    OT......................      -3.397      -3.066      -3.089      -3.126      -3.117      -2.989     -15.387
General Science, Space, and
 Technology (250):
    BA......................       0.135       0.142       0.019       0.016       0.016       0.017       0.210
    OT......................       0.148       0.146       0.101       0.055       0.028       0.023       0.353
Energy (270):
    BA......................      -2.667      -2.948      -3.242      -2.808      -3.047      -3.120     -15.165
    OT......................      -2.771      -3.007      -3.299      -2.870      -3.114      -3.191     -15.481
Natural Resources and
 Environment (300):
    BA......................       1.102       1.636       2.390       2.650       2.697       2.639      12.012
    OT......................       0.637       1.146       1.760       1.927       2.236       2.197       9.266
Agriculture (350):
    BA......................      23.161      18.782      17.173      15.564      14.568      14.284      80.371
    OT......................      22.726      18.537      17.142      15.559      14.619      14.301      80.158
Commerce and Housing Credit
 (370):
    BA......................      10.562      14.488       9.846       9.820       9.330      10.548      54.032
    OT......................       3.272       3.872       5.145       3.553       2.019       1.610      16.199
    On-budget:
        BA..................       7.749       9.334       9.478       9.333       8.940       9.351      46.436
    OT......................       1.257       5.320       4.446       3.721       2.914       2.404      18.805
    Off-budget:
        BA..................       2.813       5.154       0.368       0.487       0.390       1.197       7.596
        OT..................       2.015      -1.448       0.699      -0.168      -0.895      -0.794      -2.606
Transportation (400):
    BA......................      46.503      42.620      45.973      46.110      46.267      46.421     227.391
    OT......................       6.552       3.226       1.974       1.936       1.901       1.896      10.933
Community and Regional
 Development (450):
    BA......................       0.094      -0.467      -0.317      -0.381      -0.373      -0.358      -1.896
    OT......................       0.034      -0.604      -0.639      -0.693      -0.709      -0.710      -3.355
Education, Training,
 Employment and Social
 Services (500):
    BA......................       7.680       9.027       9.035       9.713      10.211      10.689      48.675
    OT......................       7.439       8.754       9.036       9.431       9.896      10.258      47.375
Health (550):
    BA......................     154.813     175.044     188.284     204.844     222.231     241.967   1,032.370
    OT......................     154.938     175.415     188.912     204.167     221.474     240.482   1,030.450
Medicare (570):
    BA......................     226.608     234.085     241.915     269.121     288.544     313.442   1,347.107
    OT......................     222.723     233.951     242.192     269.047     288.333     313.735   1,347.258
Income Security (600):
    BA......................     271.344     277.094     278.024     286.296     295.661     303.132   1,440.207
    OT......................     271.626     273.986     274.343     282.645     291.723     298.852   1,421.549
Social Security (650):
    BA......................     457.633     472.911     493.357     517.463     544.011     573.233   2,600.975
    OT......................     455.758     471.767     491.447     515.370     541.736     570.754   2,591.074
    On-budget:
        BA..................      13.892      14.282      15.149      16.041      16.841      17.990      80.303
    OT......................      13.892      14.282      15.149      16.041      16.841      17.990      80.303
    Off-budget:
        BA..................     443.741     458.629     478.208     501.422     527.170     555.243   2,520.672
        OT..................     441.866     457.485     476.298     499.329     524.895     552.764   2,510.771
Veterans Benefits and
 Services (700):
    BA......................      26.986      30.077      31.963      33.515      35.106      36.647     167.308
    OT......................      26.932      30.233      31.831      35.904      35.083      33.875     166.926
Administration of Justice
 (750):
    BA......................       1.900       4.832       4.111       2.521       2.552       2.583      16.599
    OT......................       1.582       4.279       4.616       2.725       2.589       2.623      16.832
General Government (800):
    BA......................       1.432       1.524       1.782       1.795       1.830       1.784       8.715
    OT......................       1.676       1.506       1.878       1.748       1.757       1.716       8.605
Net Interest (900):
    BA......................     177.871     178.664     185.291     185.873     183.646     180.345     913.819
    OT......................     177.870     178.664     185.290     185.872     183.645     180.344     913.815
    On-budget:
        BA..................     254.695     262.520     277.326     286.887     294.598     302.442   1,423.773
        OT..................     254.694     262.520     277.325     286.886     294.597     302.441   1,423.769
    Off-budget:
        BA..................     -76.824     -83.856     -92.035    -101.014    -110.952    -122.097    -509.954
        OT..................     -76.824     -83.856     -92.035    -101.014    -110.952    -122.097    -509.954
Allowances (920):
    BA......................  ..........      -0.100      -0.315      -0.200  ..........      -0.050      -0.665
    OT......................  ..........      -0.100      -0.315      -0.200  ..........      -0.050      -0.665
Undistributed Offsetting
 Receipts (950):
    BA......................     -46.490     -57.761     -66.382     -68.404     -62.924     -65.603    -321.074
    OT......................     -46.490     -57.761     -66.382     -68.404     -62.924     -65.603    -321.074
    On-budget:
        BA..................     -37.247     -48.197     -56.150     -57.370     -51.180     -53.155    -266.052
        OT..................     -37.247     -48.197     -56.150     -57.370     -51.180     -53.155    -266.052
    Off-budget:
        BA..................      -9.243      -9.564     -10.232     -11.034     -11.744     -12.448     -55.022
        OT..................      -9.243      -9.564     -10.232     -11.034     -11.744     -12.448     -55.022
----------------------------------------------------------------------------------------------------------------


  TABLE 13.--FISCAL YEAR 2003 BUDGET RESOLUTION AS REPORTED BY THE HOUSE BUDGET COMMITTEE MINUS THE PRESIDENT'S
                                                     BUDGET
                                            [In billions of dollars]
----------------------------------------------------------------------------------------------------------------
            Fiscal year                2002       2003       2004       2005       2006       2007     2003-2007
----------------------------------------------------------------------------------------------------------------
                                                     SUMMARY
Total Spending:
    BA............................    -23.816     -6.016      8.699     12.572     13.123     10.141      38.519
    OT............................    -23.377     -5.411      3.310     12.212     13.580     11.518      35.209
    On-Budget:
        BA........................    -23.818     -6.016      8.699     12.572     13.123     10.141      38.519
        OT........................    -23.379     -5.411      3.310     12.212     13.580     11.518      35.209
    Off-Budget:
        BA........................      0.002      0.000      0.000      0.000      0.000      0.000       0.000
        OT........................      0.002      0.000      0.000      0.000      0.000      0.000       0.000
Revenues:
    Total.........................     21.906     29.187     24.735     18.159     16.334     20.855     109.270
    On-Budget.....................     21.906     29.187     24.735     18.159     16.334     20.855     109.270
    Off-Budget....................      0.000      0.000      0.000      0.000      0.000      0.000       0.000
Surplus/Deficit (-):
    Total.........................     45.283     34.598     21.425      5.947      2.754      9.337      74.061
    On-Budget.....................     45.285     34.598     21.425      5.947      2.754      9.337      74.061
    Off-Budget....................     -0.002      0.000      0.000      0.000      0.000      0.000       0.000

                                                   BY FUNCTION
National Defense (050):
    BA............................      0.000      0.516      0.652      1.025      1.605      2.006       5.804
    OT............................      0.000     -0.264      1.432      1.025      1.605      2.006       5.804
International Affairs (150):
    BA............................      0.000      0.000      0.000      0.000      0.000      0.000       0.000
    OT............................      0.000      0.000      0.000      0.000      0.000      0.000       0.000
General Science, Space, and
 Technology (250):
    BA............................      0.000      0.189      0.194      0.199      0.204      0.209       0.995
    OT............................      0.000      0.047      0.139      0.171      0.183      0.192       0.732
Energy (270):
    BA............................      0.000     -0.149     -0.149     -0.150     -0.150     -0.150      -0.748
    OT............................      0.000     -0.149     -0.149     -0.150     -0.150     -0.150      -0.748
Natural Resources and Environment
 (300):
    BA............................     -0.617      0.006      0.001     -0.095     -0.106     -0.112      -0.306
    OT............................     -0.177      0.006      0.001      0.028     -0.007     -0.053      -0.025
Agriculture (350):
    BA............................     -4.021      0.000      0.000      0.000      0.000      0.000       0.000
    OT............................     -4.021      0.000      0.000      0.000      0.000      0.000       0.000
Commerce and Housing Credit (370):
    BA............................      0.000      0.000      0.000      0.000      0.000      0.000       0.000
    OT............................      0.000      0.000      0.000      0.000      0.000      0.000       0.000
    On-budget:
        BA........................      0.000      0.000      0.000      0.000      0.000      0.000       0.000
        OT........................      0.000      0.000      0.000      0.000      0.000      0.000       0.000
    Off-budget:
        BA........................      0.000      0.000      0.000      0.000      0.000      0.000       0.000
        OT........................      0.000      0.000      0.000      0.000      0.000      0.000       0.000
Transportation (400):
    BA............................      0.000     -0.317      8.435      2.834      2.152      1.456      14.560
    OT............................      0.000      1.180      3.044      3.863      4.222      4.502      16.811
Community and Regional Development
 (450):
    BA............................      0.000      0.007      0.028      0.060      0.100      0.153       0.348
    OT............................      0.000      0.043      0.075      0.115      0.165      0.227       0.625
Education, Training, Employment
 and Social Services (500):
    BA............................     -1.456      0.358      1.601      2.691      3.778      5.030      13.458
    OT............................     -0.180      0.234      0.927      1.547      2.347      3.378       8.433
Health (550):
    BA............................      0.000     -0.770     -4.052     -4.459     -4.163     -3.827     -17.271
    OT............................      0.000     -0.694     -4.459     -4.981     -4.340     -3.917     -18.391
Medicare (570):
    BA............................      0.000      3.320      1.625     11.598     10.482     11.970      38.995
    OT............................      0.000      3.320      1.625     11.598     10.482     11.970      38.995
Income Security (600):
    BA............................      8.578      4.020      0.182     -0.284     -1.950     -3.118      -1.150
    OT............................      8.578      4.023      0.187     -0.275     -1.945     -3.119      -1.129
Social Security (650):
    BA............................      0.000      0.000      0.000      0.000      0.000      0.000       0.000
    OT............................      0.000      0.000      0.000      0.000      0.000      0.000       0.000
    On-budget:
        BA........................      0.000      0.000      0.000      0.000      0.000      0.000       0.000
        OT........................      0.000      0.000      0.000      0.000      0.000      0.000       0.000
    Off-budget:
        BA........................      0.000      0.000      0.000      0.000      0.000      0.000       0.000
        OT........................      0.000      0.000      0.000      0.000      0.000      0.000       0.000
Veterans Benefits and Services
 (700):
    BA............................      0.000      1.145      1.180      1.209      1.239      1.270       6.043
    OT............................     -0.001      1.042      1.166      1.199      1.230      1.261       5.898
Administration of Justice (750):
    BA............................      0.000     -0.400     -0.400     -0.400      0.000      0.000      -1.200
    OT............................      0.000     -0.400     -0.400     -0.400      0.000      0.000      -1.200
General Government (800):
    BA............................      0.000      0.393     -0.801      0.399     -0.101     -0.001      -0.111
    OT............................      0.000      0.393     -0.801      0.399     -0.101     -0.001      -0.111
Net Interest (900):
    BA............................     -0.576     -1.995     -3.540     -4.358     -4.665     -4.988     -19.546
    OT............................     -0.576     -1.995     -3.540     -4.358     -4.665     -4.988     -19.546
    On-budget:
        BA........................     -0.578     -1.995     -3.540     -4.358     -4.665     -4.988     -19.546
        OT........................     -0.578     -1.995     -3.540     -4.358     -4.665     -4.988     -19.546
    Off-budget:
        BA........................      0.002      0.000      0.000      0.000      0.000      0.000       0.000
        OT........................      0.002      0.000      0.000      0.000      0.000      0.000       0.000
Allowances (920):
    BA............................    -25.724     -8.289     -2.009     -0.399     -0.204     -0.259     -11.160
    OT............................    -27.000     -8.147     -1.689     -0.271     -0.348     -0.292     -10.747
Undistributed Offsetting Receipts
 (950):
    BA............................      0.000     -4.050      5.752      2.702      4.902      0.502       9.808
    OT............................      0.000     -4.050      5.752      2.702      4.902      0.502       9.808
    On-budget:
        BA........................      0.000     -4.050      5.752      2.702      4.902      0.502       9.808
        OT........................      0.000     -4.050      5.752      2.702      4.902      0.502       9.808
    Off-budget:
        BA........................      0.000      0.000      0.000      0.000      0.000      0.000       0.000
        OT........................      0.000      0.000      0.000      0.000      0.000      0.000       0.000
----------------------------------------------------------------------------------------------------------------


         TABLE 14.--HOUSE BUDGET COMMITTEE RECOMMENDATION COMPARED TO 2002: TOTAL SPENDING AND REVENUES
                                            [In billions of dollars]
----------------------------------------------------------------------------------------------------------------
            Fiscal year                2002       2003       2004       2005       2006       2007     2003-2007
----------------------------------------------------------------------------------------------------------------
                                                     SUMMARY
Total Spending:
    BA............................  .........     96.983    158.325    261.784    367.351    478.687   1,363.130
    OT............................  .........     93.865    163.450    260.152    353.728    450.262   1,321.457
    On-Budget:
        BA........................  .........     86.781    141.932    231.746    322.213    416.417   1,199.089
        OT........................  .........     88.819    146.200    230.430    309.719    390.032   1,165.200
    Off-Budget:
        BA........................  .........     10.202     16.393     30.038     45.138     62.270     164.041
        OT........................  .........      5.046     17.250     29.722     44.009     60.230     156.257
Revenues:
    Total.........................  .........    109.194    232.035    388.139    503.579    624.470   1,857.417
    On-Budget                       .........     81.049    175.761    297.144    387.113    476.369   1,417.436
    Off-Budget                      .........     28.145     56.274     90.995    116.466    148.101     439.981
Surplus/Deficit (-):
    Total.........................  .........     15.329     68.585    127.987    149.851    174.208     535.960
    On-Budget.....................  .........     -7.770     29.561     66.714     77.394     86.337     252.236
    Off-Budget....................  .........     23.099     39.024     61.273     72.457     87.871     283.724

                                                   BY FUNCTION
National Defense (050):
    BA............................  .........     46.317     54.126     75.226     96.729    118.944     391.342
    OT............................  .........     30.484     45.802     64.919     80.313     94.404     315.922
International Affairs (150):
    BA............................  .........      1.596      2.527      3.325      3.981      4.887      16.316
    OT............................  .........     -1.060     -0.728     -0.238      0.366      1.064      -0.596
General Science, Space, and
 Technology (250):
    BA............................  .........      0.678      1.333      1.852      2.411      2.990       9.264
    OT............................  .........      0.450      1.153      1.932      2.428      3.022       8.985
Energy (270):
    BA............................  .........     -0.245     -0.404      0.126     -0.035     -0.029      -0.587
    OT............................  .........     -0.146     -0.381      0.134     -0.043     -0.056      -0.492
Natural Resources and Environment
 (300):
    BA............................  .........     -0.281      1.050      1.953      1.355      1.978       6.055
    OT............................  .........      0.538      1.045      1.626      2.375      2.727       8.311
Agriculture (350):
    BA............................  .........     -1.160     -2.022     -3.703     -4.570     -4.713     -16.168
    OT............................  .........     -0.588     -1.973     -3.553     -4.395     -4.526     -15.035
Commerce and Housing Credit (370):
    BA............................  .........      3.413     -0.899     -1.256     -2.136      0.061      -0.817
    OT............................  .........     -0.080      1.274     -0.657     -2.602     -2.050      -4.115
    On-budget:
        BA........................  .........      1.072      1.546      1.070      0.287      1.677       5.652
        OT........................  .........      3.383      2.590      1.526      0.308      0.759       8.566
    Off-budget:
        BA........................  .........      2.341     -2.445     -2.326     -2.423     -1.616      -6.469
        OT........................  .........     -3.463     -1.316     -2.183     -2.910     -2.809     -12.681
Transportation (400):
    BA............................  .........     -1.867      1.636      2.247      2.907      3.583       8.506
    OT............................  .........     -0.673     -1.894     -1.352     -0.037      1.947      -2.009
Community and Regional Development
 (450):
    BA............................  .........     -3.791     -3.144     -2.944     -2.564     -2.164     -14.607
    OT............................  .........      2.060      2.669      2.169      0.413      0.256       7.567
Education, Training, Employment
 and Social Services (500):
    BA............................  .........      3.120      5.324      8.560     11.546     14.817      43.367
    OT............................  .........      7.746     10.425     12.707     15.042     17.951      63.871
Health (550):
    BA............................  .........     22.834     37.228     55.115     73.874     94.839     283.890
    OT............................  .........     25.067     41.758     59.067     77.798     98.135     301.825
Medicare (570):
    BA............................  .........      7.448     15.356     42.647     62.162     87.155     214.768
    OT............................  .........     11.285     19.543     46.482     65.860     91.354     234.524
Income Security (600):
    BA............................  .........      7.461     10.799     19.965     29.466     37.444     105.135
    OT............................  .........      3.254      4.660     13.468     22.623     28.888      72.893
Social Security (650):
    BA............................  .........     15.608     36.299     60.499     87.144    116.468     316.018
    OT............................  .........     16.255     36.026     60.038     86.501    115.619     314.439
    On-budget:
        BA........................  .........      0.392      1.259      2.152      2.952      4.102      10.857
        OT........................  .........      0.391      1.258      2.150      2.951      4.100      10.850
    Off-budget:
        BA........................  .........     15.216     35.040     58.347     84.192    112.366     305.161
        OT........................  .........     15.864     34.768     57.888     83.550    111.519     303.589
Veterans Benefits and Services
 (700):
    BA............................  .........      5.939      8.208     10.301     12.482     14.631      51.561
    OT............................  .........      6.038      8.193     12.778     12.551     11.947      51.507
Administration of Justice (750):
    BA............................  .........      0.523      3.238      1.181      2.455      3.351      10.748
    OT............................  .........      5.724      8.610      4.591      5.170      5.945      30.040
General Government (800):
    BA............................  .........      0.496      0.998      1.357      1.373      1.719       5.943
    OT............................  .........     -0.282      0.538      0.679      0.572      0.891       2.398
Net Interest (900):
    BA............................  .........      0.854      7.481      8.063      5.836      2.535      24.769
    OT............................  .........      0.855      7.481      8.063      5.836      2.535      24.770
    On-budget:
        BA........................  .........      7.888     22.694     32.255     39.966     47.810     150.613
        OT........................  .........      7.889     22.694     32.255     39.966     47.810     150.614
    Off-budget:
        BA........................  .........     -7.034    -15.213    -24.192    -34.130    -45.275    -125.844
        OT........................  .........     -7.034    -15.213    -24.192    -34.130    -45.275    -125.844
Allowances (920):
    BA............................  .........     -0.689     -0.917     -0.816     -0.631     -0.696      -3.749
    OT............................  .........     -1.791     -0.859     -0.787     -0.609     -0.678      -4.724
Undistributed Offsetting Receipts
 (950):
    BA............................  .........    -11.271    -19.892    -21.914    -16.434    -19.113     -88.624
    OT............................  .........    -11.271    -19.892    -21.914    -16.434    -19.113     -88.624
    On-budget:
        BA........................  .........    -10.950    -18.903    -20.123    -13.933    -15.908     -79.817
        OT........................  .........    -10.950    -18.903    -20.123    -13.933    -15.908     -79.817
    Off-budget:
        BA........................  .........     -0.321     -0.989     -1.791     -2.501     -3.205      -8.807
        OT........................  .........     -0.321     -0.989     -1.791     -2.501     -3.205      -8.807
----------------------------------------------------------------------------------------------------------------


         TABLE 15.--HOUSE BUDGET COMMITTEE RECOMMENDATION COMPARED TO 2002: TOTAL SPENDING AND REVENUES
                                               [Percentage change]
----------------------------------------------------------------------------------------------------------------
            Fiscal year                2002       2003       2004       2005       2006       2007     2003-2007
----------------------------------------------------------------------------------------------------------------
                                                     SUMMARY
Total Spending:
    BA............................  .........        4.7        7.7       12.7       17.8       23.2        66.1
    OT............................  .........        4.6        8.1       12.8       17.4       22.2        65.1
    On-Budget:
        BA........................  .........        5.1        8.4       13.7       19.0       24.5        70.7
        OT........................  .........        5.3        8.8       13.8       18.6       23.4        69.9
    Off-Budget:
        BA........................  .........        2.8        4.5        8.3       12.4       17.1        45.1
        OT........................  .........        1.4        4.8        8.2       12.2       16.7        43.3
Revenues:
    Total.........................  .........        5.5       11.8       19.7       25.6       31.7        94.3
    On-Budget.....................  .........        5.6       12.1       20.5       26.7       32.8        97.7
    Off-Budget....................  .........        5.4       10.9       17.6       22.5       28.6        85.0
Surplus/Deficit (-):
    Total.........................  .........      -25.2     -112.6     -210.2     -246.1     -286.1      -880.2
    On-Budget.....................  .........        3.6      -13.7      -30.8      -35.7      -39.9      -116.5
    Off-Budget....................  .........       14.8       25.1       39.4       46.5       56.5       182.3

                                                   BY FUNCTION
National Defense (050):
    BA............................  .........       13.3       15.6       21.6       27.8       34.2       112.5
    OT............................  .........        8.8       13.3       18.8       23.3       27.4        91.6
International Affairs (150):
    BA............................  .........        7.2       11.4       15.0       18.0       22.1        73.7
    OT............................  .........       -4.5       -3.1       -1.0        1.6        4.5        -2.5
General Science, Space, and
 Technology (250):
    BA............................  .........        3.1        6.0        8.4       10.9       13.6        42.0
    OT............................  .........        2.1        5.3        8.9       11.2       14.0        41.5
Energy (270):
    BA............................  .........      -43.7      -72.0       22.5       -6.2       -5.2      -104.6
    OT............................  .........      -28.6      -74.7       26.3       -8.4      -11.0       -96.4
Natural Resources and Environment
 (300):
    BA............................  .........       -1.0        3.6        6.6        4.6        6.7        20.5
    OT............................  .........        1.8        3.6        5.5        8.1        9.3        28.3
Agriculture (350):
    BA............................  .........       -4.7       -8.2      -14.9      -18.4      -19.0       -65.2
    OT............................  .........       -2.4       -8.0      -14.4      -17.8      -18.4       -61.0
Commerce and Housing Credit (370):
    BA............................  .........       32.4       -8.5      -11.9      -20.3        0.6        -7.7
    OT............................  .........       -2.2       35.2      -18.2      -71.9      -56.7      -113.8
    On-budget:
        BA........................  .........       13.9       20.0       13.8        3.7       21.7        73.1
        OT........................  .........      211.2      161.7       95.3       19.2       47.4       534.8
    Off-budget:
        BA........................  .........       83.2      -86.9      -82.7      -86.1      -57.4      -229.9
        OT........................  .........     -171.9      -65.3     -108.3     -144.4     -139.4      -629.3
Transportation (400):
    BA............................  .........       -2.9        2.5        3.4        4.5        5.5        13.0
    OT............................  .........       -1.1       -3.1       -2.2       -0.1        3.2        -3.3
Community and Regional Development
 (450):
    BA............................  .........      -20.5      -17.0      -15.9      -13.9      -11.7       -79.0
    OT............................  .........       13.5       17.5       14.2        2.7        1.7        49.6
Education, Training, Employment
 and Social Services (500):
    BA............................  .........        4.0        6.8       11.0       14.8       19.0        55.6
    OT............................  .........       10.9       14.6       17.8       21.1       25.2        89.6
Health (550):
    BA............................  .........       11.4       18.6       27.5       36.8       47.3       141.6
    OT............................  .........       12.9       21.4       30.3       39.9       50.4       154.9
Medicare (570):
    BA............................  .........        3.2        6.7       18.5       27.0       37.9        93.3
    OT............................  .........        5.0        8.6       20.5       29.1       40.4       103.6
Income Security (600):
    BA............................  .........        2.4        3.4        6.3        9.4       11.9        33.4
    OT............................  .........        1.0        1.5        4.2        7.1        9.1        22.9
Social Security (650):
    BA............................  .........        3.4        7.9       13.1       18.9       25.3        68.6
    OT............................  .........        3.5        7.8       13.1       18.8       25.2        68.4
    On-budget:
        BA........................  .........        2.8        9.1       15.5       21.2       29.5        78.1
        OT........................  .........        2.8        9.0       15.5       21.2       29.5        78.0
    Off-budget:
        BA........................  .........        3.4        7.8       13.0       18.8       25.1        68.1
        OT........................  .........        3.6        7.8       13.0       18.8       25.0        68.2
Veterans Benefits and Services
 (700):
    BA............................  .........       11.7       16.1       20.2       24.5       28.7       101.2
    OT............................  .........       11.9       16.2       25.2       24.8       23.6       101.7
Administration of Justice (750):
    BA............................  .........        1.4        8.9        3.2        6.7        9.2        29.4
    OT............................  .........       17.0       25.6       13.7       15.4       17.7        89.4
General Government (800):
    BA............................  .........        2.9        5.8        8.0        8.0       10.1        34.8
    OT............................  .........       -1.6        3.0        3.8        3.2        5.0        13.4
Net Interest (900):
    BA............................  .........        0.5        4.2        4.5        3.3        1.4        13.9
    OT............................  .........        0.5        4.2        4.5        3.3        1.4        13.9
    On-budget:
        A.........................  .........        3.1        8.9       12.7       15.7       18.8        59.2
        OT........................  .........        3.1        8.9       12.7       15.7       18.8        59.2
    Off-budget:
        BA........................  .........        9.2       19.8       31.5       44.4       58.9       163.8
        OT........................  .........        9.2       19.8       31.5       44.4       58.9       163.8
Allowances (920):
    BA............................  .........         NA         NA         NA         NA         NA          NA
    OT............................  .........         NA         NA         NA         NA         NA          NA
Undistributed Offsetting Receipts
 (950):
    BA............................  .........       24.2       42.8       47.1       35.3       41.1       190.5
    OT............................  .........       24.2       42.8       47.1       35.3       41.1       190.5
    On-budget:
        BA........................  .........       29.4       50.8       54.0       37.4       42.7       214.3
        OT........................  .........       29.4       50.8       54.0       37.4       42.7       214.3
    Off-budget:
        BA........................  .........        3.5       10.7       19.4       27.1       34.7        95.4
        OT........................  .........        3.5       10.7       19.4       27.1       34.7        95.4
----------------------------------------------------------------------------------------------------------------

                     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.

  section 1. concurrent resolution on the budget for fiscal year 2003

    In accordance with section 301(a) of the Congressional 
Budget Act of 1974, this section establishes the appropriate 
budgetary levels for the budget year, fiscal year 2003, and 
each of the succeeding 4 years, fiscal years 2004 through 2007.

                 Title I Recommended Levels and Amounts

              section 101. recommended levels and amounts

    Consistent with section 301 of the Congressional Budget Act 
of 1975, this section establishes the recommended levels for 
revenue, reduction in revenue, total new budget authority, 
total budget outlays, surpluses or deficits, and debt subject 
to the statutory limit. Additionally, the resolution 
establishes the appropriate levels of debt held by the public. 
The recommended level of revenue operates as a floor against 
which all revenue 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 surplus or deficit levels reflect only on-budget outlays 
and revenue and hence do not reflect most outlays and receipts 
related to Social Security and certain Postal Service 
operations. The debt subject to statutory limit aggregates 
refer to the portion of gross Federal debt issued by the 
Treasury to the public or another government fund or account 
whereas the debt held by the public is the amount of debt 
issued and held by entities or individuals other than the U.S. 
Government.

                     section 102. homeland security

    As a result of the increased importance to securing U.S. 
territories from the threat of terrorist attacks, the 
resolution establishes a separate level of budget authority and 
outlays for homeland security. It establishes these levels for 
fiscal year 2003 only because of the uncertainty of the future 
funding requirements of homeland security. The amount of budget 
authority and outlays for homeland security is a component of 
the overall budget authority and outlay aggregate levels of 
spending included in the previous section. In addition, 
spending on homeland security is distributed across various 
functional categories that appear in the following section, and 
is included in the totals of those relevant functions. Amounts 
established for homeland security are further described in the 
introduction of this report. Similarly, specific assumptions 
related to homeland security are further described the in the 
``Function By Function'' analysis in this report.

                section 103. major functional categories

    As further required by section 301(a) of the Congressional 
Budget Act of 1974, section 103 establishes the appropriate 
budgetary levels for 20 functional categories for the current 
fiscal year, fiscal year 2002, the budget year, fiscal year 
2003, and fiscal years 2004 through 2007. The categories 
correspond to those used in the President's fiscal year 2003 
budget submission. The amount of spending included in any 
function level for fiscal year 2003 is further described in the 
``Function By Function'' analysis in this committee report.

              Title II Reserve Funds and Contingency Funds

    Pursuant to the Congressional Budget Act of 1974, the 
resolution provides the Chairman of the House 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, such legislation reported by the 
committees of jurisdiction would exceed the applicable 
committee's allocations in violation of section 302(f) of the 
Congressional Budget Act of 1974. This would subject the 
measure 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.''

     Subtitle A--Reserve Fund For Legislation Assumed in Aggregates

             section 201. reserve fund for war on terrorism

    This section creates a reserve fund that requires the 
Chairman of the House Budget Committee to adjust the allocation 
of budget authority to the Committee on Appropriations or the 
Committee on Armed Services for any measure that provides 
funding for the war on terrorism for fiscal year 2003. The 
amount of the adjustment may not exceed $10 billion in budget 
authority for that fiscal year likely be made after the 
Committee on Armed Services has acted and after the 
Appropriations Committee reports a bill providing budget 
authority for the war on terrorism.
    Section 201 was included at the direct request of the 
administration. The Committee assumes that the Chairman would 
exercise his authority under this section for any measure that 
provides amounts related to the war on terrorism and for which 
an adjustment is necessary.

 section 202. reserve fund for Medicare modernization and prescription 
                                 drugs

    Subsection (a) creates a reserve to provide funds for 
Medicare Reform, a new Prescription Drug benefit for senior 
Americans and to increase the reimbursements made to Medicare 
and Medicare providers. It provides the Chairman of the House 
Budget Committee with the authority to make adjustments in the 
allocations to both the Ways and Means Committee and the Energy 
and Commerce Committee. It is the intent of this section to 
ensure that these three elements of Medicare policy are 
initially considered as part of a single legislative package.
    The two committees may report out legislation for these 
purposes, though the cost of the legislation may not increase 
new budget authority and outlays by more than $5 billion in 
fiscal year 2003 and $350 billion for fiscal years 2003 through 
2012. Though each committee may report a bill, the Budget 
Committee anticipates the two versions will be combined before 
the legislation will be considered on the floor and the 
resulting legislation will be consistent with the adjusted 
levels.
    Subsection (c) gives authority to the Chairman of the House 
Budget Committee to further revise the allocation levels as 
appropriate if it becomes clear that the legislation reported 
will not be enacted.

            section 203. reserve fund for special education

    The budget resolution provides for a trajectory of annual 
increases in the Function 500 level sufficient to achieve full 
funding of the authorized maximum amount for the Individuals 
with Disabilities Education Act (IDEA) Part B Grants to States 
program (special education) within 10 years. It does so by 
allowing for annual increases in special education of up to 12 
percent each year. The amounts are reflected in the budgetary 
totals and in Function 500 (Education, Training and Social 
Services).
    The resolution includes procedural mechanisms to ensure 
that the annual sums made available are only for IDEA. This is 
accomplished through two separate reserve funds: one for fiscal 
year 2003, and another for fiscal years 2004 and subsequent 
years. For fiscal year 2003, the resolution reserves $1 billion 
from the Appropriations Committee's 302(a) allocation. This 
reserve will be released by the Chairman only to increase 
special education funding above the 2002 level.
    For fiscal years 2004 and subsequent years, the budget 
resolution permits additional increases for special education 
contingent on reauthorization of IDEA. The resolution allows 
for the Education and the Workforce Committee to make changes 
during reauthorization to the financing structure of special 
education whether they result in maintenance of discretionary 
spending, a transition to mandatory spending, or some 
combination thereof and does not preclude the making available 
of additional resources in the future above and beyond those 
provided herein.
    The Budget Committee Chairman has discretion in determining 
the maximum amount of the adjustment each year. This 
determination will be based, in part, on an assessment of the 
amount necessary to maintain a path to full funding. This 
discretion is appropriate because the reauthorization may 
reduce the cost of the program such that annual increases of 
less than 12-percent are sufficient to attain the same goal of 
full funding.
    Under this resolution, the maximum level of funding (budget 
authority) available for IDEA Part B Grants to States in each 
fiscal year is the following: $8.529 billion in 2003; $9.587 
billion in 2004; $10.755 billion in 2005; $12.047 billion in 
2006; and $13.497 billion in 2007.

       section 204. reserve fund for highways and highway safety

    Section 204 creates a reserve fund that allows the Chairman 
of the House Budget Committee to adjust the allocation of 
outlays to the Committee on Appropriations for any measure that 
increases the obligation limitation for the Highway Category. 
The Chairman may make the adjustment if the bill reported sets 
an obligation limitation higher than $23.864, but it may result 
in no more than $1.18 billion in additional outlays for fiscal 
year 2003. In addition, the bill reported, in order to access 
the funds held in reserve, must distribute these amounts as 
specified under section 1102 of the Transportation Equity Act 
for the 21st Century [TEA-21].
    The reserve fund is intended to hold the highway trust fund 
harmless for the reduction in the obligation limitation 
resulting from a decline in highway tax revenues. Under TEA-21, 
the contract authority, obligation limitation and outlay levels 
are tied to receipts into the highway trust fund. If receipts 
decline from the anticipated levels in TEA-21, the spending 
levels are automatically reduced. In February the President 
complied with this statutory requirement by reducing the 
obligation limitation by $4.369 billion, which also resulted in 
a reduction in outlays of $1.18 billion for fiscal year 2003. 
While the highway trust fund experienced a windfall of $9 
billion over the last 3 years when receipts exceeded the levels 
assumed in TEA-21, the Committee believes it is not reasonable 
in the current economic climate for States to absorb the full 
reduction in spending required under the adjustment in the 
Balanced Budget and Emergency Deficit Control Act known as 
Revenue Aligned Budget Authority [RABA].
    This section was negotiated as part of a three-party 
agreement between the Administration, the Committee on 
Transportation and Infrastructure, and the Budget Committee. As 
part of this agreement, the Administration agreed to identify 
additional sources of contract authority for the authorizing 
committees. The Transportation and Infrastructure Committee 
agreed to suspend action on H.R. 3694, the Highway Funding 
Restoration Act; to support an extension of the discretionary 
spending limits, general purpose, highways and transit; and to 
resist demands to raise the obligation limitation by $8.6 
billion (the difference between the obligation limitation as 
adjusted under RABA for fiscal year 2002 and the RABA-adjusted 
obligation limitation for fiscal year 2003). Finally, the 
Budget Committee agreed to make additional resources available 
to the Appropriations Committee to increase the obligation 
limitation, and to work to not only extend the highway, transit 
and general purpose caps, but to revise RABA to eliminate the 
sharp year-to-year swings in spending.

         Subtitle B--Contingency Fund for Additional Surpluses

         section 211. contingency fund for additional surpluses

    Section 211 establishes a reserve fund to demonstrate that 
any surpluses in excess of the levels assumed in the budget 
resolution are used solely for deficit reduction or debt 
repayment. It recognizes that the assumptions on which the 
resolution is based could well turn out overly optimistic and 
the updated forecasts in August could yield a higher surplus. 
If this is the case, the Chairman is directed to reduced the 
appropriate levels of the on-budget surplus as well as the 
public debt and debt held by the public levels by the amount of 
the excess.

          Subtitle C--Contingency Funds for Accounting Changes

            section 221. reserve fund for accrual accounting

    In his Budget submission to Congress, the President 
recommended a policy change in the way government agencies 
account for payments to various retirement funds. To 
accommodate this change, the Administration's budget assumes an 
increase in discretionary budget authority together with an 
offsetting reduction in mandatory budget authority and outlays. 
As part of his budget submission for fiscal year 2003, 
President Bush proposed funding certain retirement and health 
costs on an accrual basis and reflecting these costs within the 
budgets of the appropriate Federal agencies. This would entail 
shifting funding for these costs from central mandatory 
accounts to program accounts within each Federal agency.
    The Committee believes that there is much to commend in 
this approach. If properly designed, accrual budgeting has the 
potential to improve budgetary decision by recognizing the full 
cost of manpower decisions and to attribute such costs to the 
appropriate agency, programs or activity. If not properly 
executed, however, it could unfairly penalize the 
Appropriations Committee because it would be expected to incur 
higher discretionary costs.
    In order to address the Appropriations Committee's 
concerns, section 251 would make additional resources available 
to the Appropriations Committee should accrual legislation be 
enacted. Upon the enactment of such legislation, the House 
Budget Committee Chairman would increase the allocation to the 
Appropriations Committee by the amount of BA and outlays that 
the Congressional Budget Office estimates is necessary to 
accommodate the accrual shift. At the same time, it would 
reduce the 302(a) allocation to the authorizing committee 
making the change to ensure that any illusory savings 
attributed to it under existing scoring rules are not used to 
increase Federal financial commitments.

            section 222. contingency fund for student loans

    Section 231 establishes a reserve fund to facilitate a 
reclassification of administrative expenses for student loans. 
If legislation is enacted subjecting this program to annual 
appropriations, it would direct the House Budget Committee to 
increase the 302(a) allocations to the Committee on 
Appropriations by the amount of additional resources necessary 
to accommodate the reclassified program. In order to ensure 
that this does not increase the deficit, it would also reduce 
the allocation to the Committee on Education by the same amount 
because these savings would be attributed to them and could 
otherwise be used to incur further obligations.

      Subtitle D--Implementation of Contingency and Reserve Funds

  section 231. 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. Subsection (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 approximately 
consistent with the procedures for making adjustments for 
various initiatives under section 314 of the Congressional 
Budget Act.
    Subsection (a)(3) provides that in order to make the 
adjustments provided for in the reserve funds, the Chairman of 
the House Budget Committee is directed to insert these 
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 101. 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 House Budget Committee 
determines 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.
    Subsection (d) provides that Medicare-related legislation 
considered under section 302(f) will be limited to the first 
and 10-year levels assumed in the resolution. Otherwise, it 
would have been solely limited to the first year and the 5 year 
total.

                     Title III--Budget Enforcement

          section 301. restrictions on advance appropriations

    Section 301 imposes a limitation on advance appropriations 
similar to a provision included in the last two budget 
resolutions. It effectively limits which programs can receive 
an advance appropriation and overall amount of advanced 
appropriations. It is enforced by prohibiting the managers of 
any appropriations measure from accepting advance 
appropriations in a conference committee unless a separate vote 
on the spending is taken by the whole House.
    It establishes this procedural mechanism with regard to any 
advance appropriation for 2004 and any year thereafter with two 
exceptions. First, advance appropriations may be provided for 
the accounts in the appropriation bills under the section 
``Accounts Identified Advanced Appropriations'' in the Joint 
Statement of Managers on any Conference Report on the Budget 
Resolution. The list is expected to be the same as that which 
appears in this report in the section ``Additional Report 
Language'' and with the same heading. In addition, advance 
appropriations for these accounts may not exceed $23.543 
billion in budget authority for fiscal year 2003.
    The second exception exempts the Corporation for Public 
Broadcasting from the limitation, and allows advance 
appropriations for the accounts that fund it.
    Subsection (c) defines an ``advance appropriation'' as any 
new discretionary budget authority making general 
appropriations or continuing appropriations for fiscal year 
2003 that first becomes available for any fiscal year after 
2003.
    This limitation may be enforced by any member making a 
point of order at the appropriate time against any advance 
appropriations not falling within an exception or exceeding the 
overall limit. The effect of a point of order under this 
section, if sustained by the Chair, is to cause the 
appropriation(s) to be stricken from the bill or joint 
resolution. The bill itself, however, would continue to be 
considered in the House.

 section 302. compliance with section 13301 the budget enforcement act 
                                of 1990

    This section 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 joint Leadership of the House 
and Senate Budget Committees decided to discontinue including 
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.
    At the same time, the House Budget Committee believed that 
these expenses 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 13301 of the Budget Enforcement Act, which 
states that Social Security benefits and revenues are off-
budget).

   section 303. Reporting requirement for congressional budget office

    The variability between projected and actual economic and 
technical factors are a large part of the forecasting 
inaccuracies identified by the Congressional Budget Office 
[CBO] in its estimates. This section requires CBO to report to 
Congress and include the following: a variance analysis between 
forecasted and actual budget results; and a comparison of the 
differing impact between forecasted economic variables used to 
model that year's projections and what actually happened 
recommendations on how to use the backcast to improve 
forecasting accuracy in the future.

       Title IV--Senses of Congress and Sense of House Provisions

               section 401. combating infectious diseases

    Section 401 states a sense of the Congress relating to the 
Federal assistance to certain countries to combat infectious 
diseases.

            section 402. asset building for the working poor

    Section 402 states a sense of the Congress relating to 
Individual Development Accounts and the working poor.

                   section 403. Federal employee pay

    Section 403 states a sense of the Congress relating to 
Federal employee pay

          section 404. Medicare + choice regional disparities

    Section 404 states a sense of the Congress relating to 
Medicare + Choice.

            section 405. border security and anti-terrorism

    Section 405 states a sense of the Congress relating to 
border security and anti-terrorism.

             section 406. pacific northwest salmon recovery

    Section 406 states a sense of Congress relating to the 
recovery of Pacific Northwest salmon.
                    THE CONGRESSIONAL BUDGET PROCESS

                              ----------                              


    The spending and revenue levels established in the budget 
resolution are executed through two parallel, but separate, 
mechanisms: allocations to the appropriations and authorizing 
committees, and reconciliation directives to the authorizing 
committees. The budget resolution may include instructions 
directing the authorizing committees to report legislation 
complying with entitlement, revenue, 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. For fiscal year 2003, the budget resolution 
reported from the Budget Committee does not include any 
reconciliation instructions.
    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 are enforced through points of 
order as discussed in the section ``Enforcing the Budget 
Resolution.'' Amounts provided under ``current law''' encompass 
programs that affect direct spending entitlement and other 
programs that have spending authority or offsetting receipts. 
Amounts subject to discretionary action refer to programs that 
require subsequent legislation to provide the necessary 
spending authority. Amounts provided under 
``reauthorizations''' reflect amounts assumed to reauthorize 
expiring mandatory programs.
    This budget resolution provides for 5-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 which 
only receives an allocation for the budget year). An exception 
is made for certain Medicare modernization legislation which 
receives an allocation for fiscal year 2003 and the totals for 
fiscal years 2003 through 2012.

                        Appropriations Committee

    The report accompanying the budget resolution allocates a 
lump sum of discretionary budget authority assumed in the 
resolution and corresponding outlays to the Committee on 
Appropriations.
Term
    The allocation to the Appropriations Committee is for the 
fiscal year commencing on 1 October 2002. 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 each subcommittee receives 
constitutes its allocation pursuant to section 302(b) of the 
Congressional Budget Act. The allocations are divided into 
general purpose discretionary, highway, mass transit, and 
conservation categories of spending. These division levels do 
not constitute separate allocations 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 two 
purposes. Through these adjustments, additional budget 
authority and outlays will be made available for designated 
emergencies, and adoption assistance. 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, in certain 
circumstances.
    In section 201, the Chairman of the House Budget Committee 
is given authority to adjust the allocation of budget authority 
to the Committee on Appropriations or the Committee on Armed 
Services for any measure that provides funding for the war 
against terrorism for fiscal year 2003.
    In section 202, the Chairman of the House Budget Committee 
is given the authority to make adjustments in the allocation of 
budget authority to the Committee on Ways and Means and the 
Committee on Energy and Commerce if either committee reports a 
bill which provides for Medicare modernization and a 
prescription drug benefit; and adjustments to the Medicare 
program on a fee-for-service, capitated, or other basis.
    In section 203, the Chairman of the House Budget Committee 
is given authority to adjust the allocation of budget authority 
to the Committee on Appropriations for any measure that 
provides funding for grants to States under Part B of the 
Individuals with Disabilities Education Act [IDEA] for fiscal 
year 2003. It also allows the Chairman of the Budget Committee 
to make additional adjustments for the period of fiscal year 
2003 through 2007.
    In section 204, the Chairman of the House Budget Committee 
is given the authority to make adjustments in the allocation to 
the Appropriations Committee in order to provide higher 
spending amounts for highway projects. The Budget Committee 
Chairman, under the terms of this reserve fund, will make an 
adjustment to the obligation limits which are included in the 
appropriation measure. Most discretionary spending is 
implemented by appropriating budget authority, but in the 
Highway Category, budget authority is provided on the mandatory 
side. The outlays resulting therefrom are restricted through 
the use of ``obligation limits'' included in appropriation 
acts.
    In section 211, the Chairman of the House Budget Committee 
is given the authority to make adjustments in the surplus or 
deficit, as applicable, and reduce the level of the public debt 
and debt held by the public to ensure that any additional 
surpluses that may arise, as determined by the House Budget 
Committee in consultation with the Office of Management and 
Budget and the Congressional Budget Office, are used solely for 
deficit reduction and debt repayment.
    In section 221, the House Budget Committee Chairman may 
adjust the allocation of the appropriations if given the 
authority to make adjustments in the allocation of budget 
authority to the Committee on Appropriations if it reports a 
measure providing funding for agencies charged with the full 
cost of accrued Federal retirement and health benefits. The 
adjustment may only be made if legislation is first enacted 
which requires Federal agencies to be so charged.
    In section 222, there is established a reserve fund to 
facilitate a reclassification of administrative expenses for 
student loans. If legislation is enacted subjecting this 
program to annual appropriations, it would direct the House 
Budget Committee to increase the 302(a) allocations to the 
Committee on Appropriations by the amount of additional 
resources necessary to accommodate the reclassified program.

                         Authorizing committees

    The authorizing committees are allocated a lump sum of new 
budget authority along with the corresponding outlays. A 
committee is allocated this budget authority for the programs 
in its jurisdiction that are implemented by the Executive 
Branch pursuant to current law. In addition, the committees may 
be allocated additional budget authority categorized as subject 
to discretionary action. This occurs when the budget resolution 
assumes a new or expanded mandatory program or a reduction in 
an existing program. Such spending authority must be provided 
through subsequent legislation and is not controlled through 
the annual appropriations process.
Term
    Since the spending authority for the authorizing committees 
is multi-year or permanent, the allocations are for the 
forthcoming budget year commencing on October 1 and a 5-year 
total for fiscal years 2003 through 2007.
Allocations
    The authorizing committees are provided a single allocation 
of new budget authority (divided between current law and 
discretionary action) that is not provided through annual 
appropriations. They are not required to file 302(b) 
allocations. Bills first effective in fiscal year 2002 will be 
measured against the budget resolution for that year 
(H.Con.Res. 83) and also the 5-year budget window encompassed 
by the new budget resolution starting in fiscal year 2003. 
Again, Medicare modernization and related initiatives are 
enforced through an allocation for fiscal year 2003 and the 
totals for fiscal years 2003 through 2012.

                              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 5-year 
allocations, and hence the enforcement period for spending 
under section 302(f) of the Congressional Budget Act will be 
for the 5 years commencing from the year in which the 
committee's legislation is first effective.
                    ENFORCING THE BUDGET RESOLUTION

                              ----------                              


                      house enforcement procedures

    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 breaching the levels set forth in the 
budget resolution is subject to points of order on the House 
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.
    These points of order may take on added importance if the 
discretionary spending limits and pay-as-you-go requirements 
set forth in the Balanced Budget and Emergency Deficit Control 
Act are not extended. Absent the threat of sequestration, the 
Congress will have impose budgetary discipline with the limited 
tools of the Congress budget process.
    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 5-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 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. It does not apply to trust funds primarily 
financed by earmarked taxes.
Sections 303(g), 308(b)(2), and 311(c)
    Under sections 303(g), 308(b)(2), and 311(c) of the Budget 
Act, the Budget Committee advises the presiding officer on the 
application of points of order against specific legislation 
pending before the House. House Budget Committee rules also 
authorize the chairman to poll the committee on recommendations 
to the Rules Committee to enforce the Budget Act by not waiving 
points of order against specific legislation.
                   STATUTORY CONTROLS OVER THE BUDGET

                              ----------                              


    For the first time since the mid-1980's, the Congress and 
the President are entering a budget cycle in which there are no 
budget controls enforced through automatic spending cuts. Both 
the discretionary spending limits [caps] and the pay-as-you-go 
[PAYGO] rule for entitlement and tax legislation, adopted in 
1990 and most recently extended in 1997, are scheduled to 
expire at the end of the current fiscal year.
    In lieu of calling for an outright extension of the caps 
and PAYGO, as it did last year, the administration states that 
it will work with Congress to extend budgetary disciplines.
    It is unclear if the caps will be extended. A reasonable 
argument can be made that Congress should return to the days of 
the early 1980's, when Congress and the President made no 
attempt to develop a joint budgetary framework before they 
considered individual spending and tax bills. Some Members may 
believe that the only true budgetary framework is the sum of 
all the appropriations, tax, and entitlement bills that are 
enacted in a given session of Congress. Further, it may not 
make sense to extend budget controls that in recent years have 
been routinely circumvented by both Congress and the 
administration. Finally, it can be argued that it is impossible 
to get an agreement on the caps and PAYGO when there is divided 
control of the Congress.
    Yet, the Committee believes there are compelling arguments 
for extending the Budget Enforcement Act [BEA]. The principal 
reason is the disappearance of budget surpluses in the wake of 
11 September and a recession from which the economy is only now 
beginning to recover. As in the late 1980's and early and mid-
1990's, policy makers may need the discipline imposed by fixed 
caps on appropriations and a pay-as-you-go rule for new or 
expanded entitlements. Moreover, the long-term pressures on the 
budget arising from the aging of the baby boom generation and 
skyrocketing health costs call for a mechanism such as PAYGO to 
keep entitlement initiatives within manageable limits.
    The Committee concurs with those who lament Congress's 
failure to adhere to the caps. Clearly the caps and PAYGO 
cannot be a substitute for making the tough choices necessary 
to put the budget back on a path toward eliminating the public 
debt. Still, the BEA can augment the efforts of those in 
Congress and the administration to impose budgetary discipline. 
Congress should extend the caps, if it is willing to comply 
with them or to permit a sequester if it fails to comply with 
these limits.
    There is no consensus for abandoning what limited tools the 
Congress has for imposing budget discipline should yearly caps 
be allowed to lapse. Last year the House Budget Committee 
reported by a unanimous vote, legislation changing the caps. In 
addition, the Chairmen and Ranking Minority Members of both the 
House and Senate Budget Committees have recognized the value of 
extending the BEA framework. Even among committees with 
disparate institutional concerns, a consensus seems to be 
emerging that the caps should be retained. The administration, 
too, has supported an extension of the caps and PAYGO or the 
adoption of some other form of budgetary controls.

                     Discretionary Spending Limits

    The discretionary spending limits continue through the end 
of fiscal year 2002. Though all the regular appropriations 
bills have been enacted, a sequester is still possible if 
Congress passes supplemental appropriations taking total 
discretionary spending above the limit for this fiscal year. 
Typically such supplemental appropriations are designated 
``emergencies'' and cause an automatic adjustment in the limits 
and the sequestration process is not applicable.
    While the caps were extended under the Balanced Budget Act 
of 1997 through fiscal year 2002, additional caps have been put 
in place for two program areas within overall discretionary 
spending. Included in the Transportation Equity Act for the 
21st Century [TEA 21] (Public Law 105-178) were separate 
categories for highway and mass transit spending for fiscal 
years 1999 through 2003.
    In addition, the Department of the Interior and Related 
Agencies Appropriations Act of 2001 (Public Law 106-291), 
created a new spending limit specifically for the conservation 
category of discretionary appropriations. The conservation 
category spending caps extend through fiscal year 2006. This 
category has a variety of ``sub-category'' spending limits for 
each fiscal year through 2006 that identify the various program 
spending levels funded in the overall conservation category.
    Although these separate categories for transportation and 
conservation extend beyond the expiration of the general 
discretionary limit, because the enforcement mechanism of 
sequestration expires along with the Deficit Control Act in 
fiscal year 2002, they cannot be enforced unless some form of 
extension of the sequestration process is enacted.
    In the Department of Defense and Emergency Supplemental 
Appropriations for Recovery From and Response to Terrorist 
Attacks on the United States Act (Public Law 107-117), the 
statutory caps for fiscal year 2002 were increased to 
$681,441,000,000 in new budget authority and $670,206,000,000 
in outlays. In addition, the measure altered the outlay cap in 
the Conservation category to $1,473,000, to accommodate re-
estimates of spending resulting from the budget authority cap 
limit when the Conservation category was created.

                          TABLE 14.--STATUTORY CAPS BY BUDGET ENFORCEMENT ACT CATEGORY
                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                              2002       2003       2004       2005       2006
----------------------------------------------------------------------------------------------------------------
Discretionary Category:
    BA...................................................    704,548         NA         NA         NA         NA
    Outlay...............................................    696,092         NA         NA         NA         NA
Highway Category:
    BA...................................................         NA         NA         NA         NA         NA
    Outlay*..............................................     28,489     29,100         NA         NA         NA
Mass Transit Category:
    BA...................................................         NA         NA         NA         NA         NA
    Outlay...............................................      5,275      5,531         NA         NA         NA
Conservation Category:
    BA...................................................      1,760      1,920      2,080      2,240      2,400
    Outlay...............................................      1,473      1,872      2,032      2,192      2,352
Total Discretionary Spending Limits:
    BA...................................................    706,308         NA         NA         NA         NA
    Outlay...............................................    731,329         NA         NA         NA         NA
----------------------------------------------------------------------------------------------------------------
Notes: The discretionary spending limits expire in 2002.

These figures are based on the final sequestration report for 2001 issued by the Office of Management and
  Budget. The category limits for Conservation displayed beyond fiscal year 2003 are the statutory levels and
  have not been adjusted by either the Congressional Budget Office or the Office of Management and Budget.
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 first session of 
the 107th Congress, the President signed the Department of 
Defense and Emergency Supplemental Appropriations for Recovery 
From and Response to Terrorist Attacks on the United States Act 
(Public Law 107-117). Included in the act was legislation 
requiring the pay-as-you-go balances that would have resulted 
in a significant sequester in fiscal year 2002 be set to zero 
in the final sequestration report prepared by the Office of 
Management and Budget.
    Though the PAYGO statutory requirements expire at the end 
of fiscal year 2002, sequestration may occur through fiscal 
year 2006. In fact large balances remain on the PAYGO scorecard 
for fiscal year 2003, and each year through fiscal year 2006. 
Any legislation enacted prior to the end of this fiscal year 
that either increases spending or decreases revenue, and that 
is not offset, will add to the balances on the scorecard. These 
balances, if not reset to zero in some future legislation, will 
cause large across-the-board spending reductions in all non-
exempt mandatory spending programs.

                                       TABLE 15.--PAY-AS-YOU-GO SCORECARD
                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                               2002      2003         2004         2005         2006       2007
----------------------------------------------------------------------------------------------------------------
Outlay Effect..............................     -180      24,173       24,413       23,832        9,219    1,000
Receipt Effect.............................        0     -86,866     -106,319     -107,744     -126,474        0
Net Budget Cost............................     -180     111,039      130,732      131,576      135,693    1,000
----------------------------------------------------------------------------------------------------------------
Source: Office of Management and Budget as of March 12, 2002.

Note: For net budget costs, 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 2003.
    On March 13, 2002 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 2003. 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 budget aggregates, function levels, 
and other appropriate matter; that the aggregates, function 
totals, and other appropriate matter be open for amendment; and 
that amendments be considered as read.
    There was no objection to the unanimous consent requests.
    1. Mr.McDermott offered an amendment to replace the 
Chairman's Mark with the budget recommended by the President, 
as adjusted for Public Law 107-147, the Job Creation and Worker 
Assistance Act of 2002, as re-estimated by the Congressional 
Budget Office.


----------------------------------------------------------------------------------------------------------------
  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        ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
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         ..........       X      ............  Mrs. McCARTHY       ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. HASTINGS        ..........       X      ............  Mr. MOORE           ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. DOOLITTLE       ..........       X      ............  Mr. CAPUANO         ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. PORTMAN         ..........  ..........  ............  Mr. HONDA           ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. LA HOOD         ..........  ..........  ............  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
----------------------------------------------------------------------------------------------------------------

    The amendment offered by Mr. McDermott was not agreed to by 
a vote of zero ayes and 39 noes.
    2. Mr. McDermott offered an amendment to insert at the 
appropriate place language making all necessary conforming 
changes to the spending, revenue, debt, interest, aggregate, 
and other amounts in the Chairman's Mark related to the 
amendment.
    It inserted the following reconciliation directive: Not 
later than July 30, 2002, the House Committee on Ways and Means 
shall report to the House a reconciliation bill that consists 
of changes within its jurisdiction that implements one of the 
three proposals recommended on December 21, 2001 by the 
President's Commission to Strengthen Social Security for 
partially privatizing Social Security.
    Upon reporting of such a reconciliation bill to the House, 
the Chairman of the House Budget Committee shall have authority 
to change spending, revenue, debt, interest, aggregate, and 
other amounts in the Budget Resolution to reflect provisions of 
the reconciliation bill to partially privatize Social Security.


----------------------------------------------------------------------------------------------------------------
  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        ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
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        ..........       X      ............  Mr. MOORE           ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. DOOLITTLE       ..........       X      ............  Mr. CAPUANO         ..........      X      ...........
----------------------------------------------------------------------------------------------------------------
Mr. PORTMAN         ..........  ..........  ............  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
----------------------------------------------------------------------------------------------------------------

    The amendment offered by Mr. McDermott was not agreed to on 
a roll call vote of 0 ayes and 39 noes.
    3. Mr. Moran offered an amendment to create a ``Trigger to 
Protect the Social Security Trust Fund Surplus.'' It provided 
that if the Congressional Budget Office [CBO] projects an on-
budget deficit in any fiscal year, effective on January 1, 
2003, then the concurrent resolution on the budget for the 
budget year must reduce on-budget deficits relative to CBO's 
projections and put the budget on a path to balance within 5 
years. It also created a point of order in the Senate against 
the consideration of a budget if it so included an on-budget 
deficit for any such year. In addition, it created a point of 
order in the Senate against the consideration of an amendment 
to a budget resolution that would cause an on-budget deficit 
for any fiscal year.


----------------------------------------------------------------------------------------------------------------
  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        ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
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        ..........       X      ............  Mr. MOORE           ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. DOOLITTLE       ..........       X      ............  Mr. CAPUANO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PORTMAN         ..........  ..........  ............  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            ..........  ..........  ............
----------------------------------------------------------------------------------------------------------------

    The amendment offered by Moran was not agreed to by a roll 
call vote of 16 ayes and 21 noes.
    4. Mr. Honda offered an amendment to increase budget 
authority and outlays in Function 500 to reflect increased 
funding levels for the newly reauthorized Elementary and 
Secondary Education Act to improve teacher quality, support 
Title I (Education for the Disadvantaged), increase funding for 
21st Century Community Learning Centers after school program, 
and support other programs the act authorizes: In Budget 
Authority: 2003: 3.0; 2004: 3.021; 2005: 3.042; 2006: 3.063; 
2007: 3.084; Outlays: 2003: .150; 2004: 2.101; 2005: 2.866; 
2006: 3.036; 2007: 3.057. ($billions for fiscal year)
    It also directed that the aggregate levels of revenues be 
adjusted by amounts equal to the changes in that function, 
reflecting a reduction in the amount of the new tax cuts 
assumed in the budget resolution.


----------------------------------------------------------------------------------------------------------------
  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         ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. COLLINS         ..........  ..........  ............  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       ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. HASTINGS        ..........  ..........  ............  Mr. MOORE                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. DOOLITTLE       ..........  ..........  ............  Mr. CAPUANO              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. PORTMAN         ..........       X      ............  Mr. HONDA                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. LA HOOD         ..........       X      ............  Mr. HOEFFEL              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Ms. GRANGER         ..........  ..........  ............  Mr. HOLT                 X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. SCHROCK         ..........       X      ............  Mr. MATHESON             X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. CULBERSON       ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. BROWN           ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. CRENSHAW        ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. PUTNAM          ..........       X
----------------------------------------------------------------------------------------------------------------
Mr. KIRK            ..........       X
----------------------------------------------------------------------------------------------------------------

    The amendment offered by Mr. Honda was not agreed to by a 
roll call vote of 16 ayes and 20 noes.
    5. Mr. Price offered an amendment to amend the Chairman's 
Mark to show year-by-year numbers for Fiscal Years 2003 through 
2012 for all spending, revenue, interest, debt, aggregate and 
other amounts. It was to be amended to show year-by-year 
numbers for fiscal years 2003 through 2012 for all economic 
assumptions.
    It stated that all spending, revenue, interest, debt, 
aggregate and other amounts in the Chairman's Mark be based on 
the most current estimates by the Congressional Budget Office 
of the previous pre-policy baseline and for all policies 
embodied in the Chairman's Mark.


----------------------------------------------------------------------------------------------------------------
  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         ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. COLLINS         ..........  ..........  ............  Mr. CLEMENT              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. FLETCHER        ..........       X      ............  Mr. MORAN                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. MILLER          ..........       X      ............  Ms. HOOLEY               X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. TOOMEY          ..........       X      ............  Ms. BALDWIN              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. WATKINS         ..........       X      ............  Mrs. McCARTHY       ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
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
----------------------------------------------------------------------------------------------------------------

    The amendment offered by Mr. Price was not agreed to agreed 
to by a roll call vote of 17 ayes and 22 noes.
    6. Mr. Bentsen offered an amendment to increase budget 
authority and outlays in Function 570 (Medicare) to reflect 
additional spending for a Medicare prescription drug benefit 
within the Medicare program. In Budget Authority: 2003: 0; 
2004: 0; 2005: 26; 2006: 22; 2007: 21; Outlays: 2003: 0; 2004: 
0; 2005: 26; 2006: 22; 2007: 21. (billions for fiscal year)
    It also included the directive to include a reconciliation 
instruction to the Ways and Means Committee requiring that the 
additional spending in Function 570 be budget-neutral.


----------------------------------------------------------------------------------------------------------------
  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         ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. COLLINS         ..........  ..........  ............  Mr. CLEMENT              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. FLETCHER        ..........       X      ............  Mr. MORAN                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
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       ..........       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
----------------------------------------------------------------------------------------------------------------

    The amendment offered by Mr. Bentsen was not agreed to by a 
roll call vote of 18 ayes and 23 noes.
    7. Mr. Matheson offered an amendment to increase the budget 
authority and outlays in Function 750 to reflect the 
restoration of funding for Local Law Enforcement Block Grants. 
In Budget Authority: 2003: 488; 2004: 502; 2005: 517; 2006: 
533; 2007: 548; Outlays: 2003: 467; 2004: 478; 2005: 486; 2006: 
506; 2007: 520. ($millions for fiscal year)
    It also directed that the aggregate levels of revenues be 
adjusted by amounts equal to the changes in that function, 
reflecting a reduction in the amount of the new tax cuts 
assumed in the budget resolution.


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,         ..........  .........  ...........
 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         ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. COLLINS         ..........  ..........  ............  Mr. CLEMENT              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. FLETCHER        ..........       X      ............  Mr. MORAN                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
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       ..........       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
----------------------------------------------------------------------------------------------------------------

    The amendment offered by Mr. Matheson was not agreed to by 
a roll call vote of 16 ayes and 23 noes.
    8. Mr. Holt offered an amendment to increase the budget 
authority and outlays in Function 250 to reflect increased 
funding for scientific research. In Budget Authority: 2003: 
535; 2004: 546; 2005: 557; 2006: 569; 2007: 581; Outlays: 2003: 
134; 2004: 393; 2005: 482; 2006: 513; 2007: 534. ($millions for 
fiscal year)
    It also directed that the aggregate levels of revenues be 
adjusted by amounts equal to the changes in that function, 
reflecting a reduction in the amount of the new tax cuts 
assumed in the budget resolution.


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,         ..........  .........  ...........
 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         ..........  ..........  ............  Mr. CLEMENT              X      .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. FLETCHER        ..........       X      ............  Mr. MORAN                X      .........  ...........
----------------------------------------------------------------------------------------------------------------
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       ..........       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
----------------------------------------------------------------------------------------------------------------

    The amendment offered by Mr. Holt was not agreed to by a 
roll call vote 15 ayes and 23 noes.
    9. Ms. Baldwin offered an amendment to increase budget 
authority and outlays for Function 550 to reflect an increase 
in spending for the State Children's Health Insurance Program 
[SCHIP]. In Budget Authority: 2003: 2.1; 2004: 5.0; 2005: 1.6; 
2006: 1.3; 2007: .1; Outlays: 2003: 1.9; 2004: 1.9; 2005: 1.6; 
2006: 1.3; 2007: .1. ($billions for fiscal year)
    It also directed that the aggregate levels of revenues be 
adjusted by amounts equal to the changes in that function, 
reflecting a reduction in the amount of the new tax cuts 
assumed in the budget resolution.


----------------------------------------------------------------------------------------------------------------
  Representative        Aye         No         Present      Representative        Aye         No       Present
----------------------------------------------------------------------------------------------------------------
Mr. NUSSLE,         ..........       X      ............  Mr. SPRATT,         ..........  .........  ...........
 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        ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. THORNBERRY      ..........       X      ............  Mr. PRICE           ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
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          ..........       X      ............  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
----------------------------------------------------------------------------------------------------------------

    The amendment offered by Ms. Baldwin was not agreed to by a 
roll call vote of 14 ayes and 24 noes.
    10. Mr. Hoeffel offered an amendment to increase budget 
authority and outlays for Function 300 to reflect an increase 
in funding for natural resources and environmental protection 
programs. In Budget Authority: 2003: 2,358; 2004: 2,618; 2005: 
2,815; 2006: 4,312; 2007: 4,527; Outlays: 2003: 1,481; 2004: 
2,151; 2005: 2,541; 2006: 3,707; 2007: 4,199. ($millions for 
fiscal year)
    It also directed that the aggregate levels of revenues be 
adjusted by amounts equal to the changes in that function, 
reflecting a reduction in the amount of the new tax cuts 
assumed in the budget resolution.


----------------------------------------------------------------------------------------------------------------
  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        ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
Mr. THORNBERRY      ..........       X      ............  Mr. PRICE           ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
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          ..........       X      ............  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
----------------------------------------------------------------------------------------------------------------

    The amendment offered by Mr. Hoeffel was not agreed to by a 
roll call vote of 15 ayes and 24 noes.
    11. Mr. McDermott offered an amendment to increase budget 
authority and outlays for Function 600 to reflect additional 
funding to expand the number of low--income children receiving 
childcare assistance under the Child Care and Development Fund 
[CCDF] and improve the quality of the care they receive. In 
Budget Authority: 2003: 1,290; 2004: 1,790; 2005: 2,286; 2006: 
2,779; 2007: 3,272; Outlays: 2003: 516; 2004: 1,320; 2005: 
2,073; 2006: 2,722; 2007: 3,062. ($millions for fiscal year)
    It also directed that the aggregate levels of revenues be 
adjusted by amounts equal to the changes in that function, 
reflecting a reduction in the amount of the new tax cuts 
assumed in the budget resolution.
    The amendment offered by Mr. McDermott was not agreed to by 
voice vote.
    12. Ms. Baldwin offered an amendment to increase budget 
authority and outlays for Function 500 to reflect an increase 
in funding for the following: To increase enrollment in Head 
Start to one million eligible children and increasing the 
maximum Pell Grant award to $4,500 for 2003. In Budget 
Authority: 2003: 2.788; 2004: 2.801; 2005: 2.814; 2006: 2.827; 
2007: 2.841; Outlays: 2003: .652; 2004: 2.704; 2005: 2.794; 
2006: 2.812; 2007: 2.825. ($billions for fiscal year)
    It also directed that the aggregate levels of revenues be 
adjusted by amounts equal to the changes in that function, 
reflecting a reduction in the amount of the new tax cuts 
assumed in the budget resolution.
    The amendment offered by Ms. Baldwin was not agreed to by 
voice vote.
    13. Mr. Clement offered an amendment to increase budget 
authority and outlays for Function 400 to reflect an increase 
in funding for the Federal-aid Highways program. In Budget 
Authority: 2003: 1,300; 2004: 1,328; 2005: 1,354; 2006: 1,382; 
2007: 1,410; Outlays: 2003: 351; 2004: 904; 2005: 1,144; 2006: 
1,246; 2007: 1,323. ($millions for fiscal year)
    It also directed that the aggregate levels of revenues be 
adjusted by amounts equal to the changes in that function, 
reflecting a reduction in the amount of the new tax cuts 
assumed in the budget resolution.
    The amendment offered by Mr. Clement was not agreed to by 
voice vote.
    14. Mrs. Clayton offered an amendment to increase budget 
authority and outlays for Function 550 to reflect temporary and 
targeted increases in the Medicaid program's Federal medical 
assistance percentage [FMAP]. In Budget Authority: 2002: 4.6; 
2003: 1.7; 2004: 0.0; 2005: 0.0; 2006: 0.0; 2007: 0.0; Outlays: 
2002: 4.6; 2003: 1.7; 2004: 0.0; 2005: 0.0; 2006: 0.0; 2007: 
0.0. ($billions for fiscal year)
    It also directed that the aggregate levels of revenues be 
adjusted by amounts equal to the changes in that function, 
reflecting a reduction in the amount of the new tax cuts 
assumed in the budget resolution.
    The amendment offered by Mrs. Clayton was not agreed to by 
a voice vote.
    15. Ms. Hooley offered an amendment to increase budget 
authority and outlays for Function 500 to reflect raising the 
Federal share of special education funding 40 percent. In 
Budget Authority: 2003: 1.5; 2004: 2.8; 2005: 4.1; 2006: 5.4; 
2007: 6.7; Outlays: 2003: 0.030; 2004: 1.001; 2005: 2.296; 
2006: 3.606; 2007: 4.906. ($billions for fiscal year)
    It also directed that the aggregate levels of revenues be 
adjusted by amounts equal to the changes in that function, 
reflecting a reduction in the amount of the new tax cuts 
assumed in the budget resolution.
    The amendment offered by Ms. Hooley was not agreed to by a 
voice vote.
    16. Mr. Moore offered an amendment to increase budget 
authority and outlays for Function 370 to reflect funding of 
pay parity for employees of the Securities and Exchange 
Commission [SEC]. In Budget Authority: 2003: 69; 2004: 72; 
2005: 74; 2006: 76; 2007: 79; Outlays: 2003: 53; 2004: 71; 
2005: 73; 2006: 75; 2007: 77. ($millions for fiscal year)
    It also directed that the aggregate levels of revenues be 
adjusted by amounts equal to the changes in that function, 
reflecting a reduction in the amount of the new tax cuts 
assumed in the budget resolution.


----------------------------------------------------------------------------------------------------------------
  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         ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
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         ..........       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
----------------------------------------------------------------------------------------------------------------

    The amendment offered by Mr. Moore was not agreed to by a 
roll call vote of 17 ayes and 24 noes.
    17. Ms. Baldwin offered an amendment to increase budget 
authority and outlays for Function 500 to reflect a freeze of 
the Workforce Investment Act's funding at the fiscal year 2002 
level for employment and training programs. In Budget 
Authority: 2003: 686; 2004: 686; 2005: 686; 2006: 686; 2007: 
686; Outlays: 2003: 70; 2004: 515.9; 2005: 625.6; 2006: 646.2; 
2007: 664.1. ($millions for fiscal year)
    It also directed that the aggregate levels of revenues be 
adjusted by amounts equal to the changes in that function, 
reflecting a reduction in the amount of the new tax cuts 
assumed in the budget resolution.


----------------------------------------------------------------------------------------------------------------
  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         ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
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         ..........       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
----------------------------------------------------------------------------------------------------------------

    The amendment offered by Ms. Baldwin was not agreed to by a 
roll call vote of 17 ayes and 24 noes.
    18. Ms. Hooley offered an amendment to increase budget 
authority and outlays for Function 300 to reflect a freeze of 
the Army Corps of Engineers [ACOE] funding at the fiscal year 
2002 level in the construction general and operations and 
maintenance accounts. In Budget Authority: 2003: 3,693; 2004: 
3,693; 2005: 3,693; 2006: 3,693; 2007: 3,693; Outlays: 2003: 
2,697; 2004: 3,736; 2005: 3,693; 2006: 3,693; 2007: 3,693. 
($millions for fiscal year)
    It also directed that the aggregate levels of revenues be 
adjusted by amounts equal to the changes in that function, 
reflecting a reduction in the amount of the new tax cuts 
assumed in the budget resolution.
    The amendment offered by Ms. Hooley was not agreed to by a 
voice vote.
    19. Mr. Holt offered an amendment to increase budget 
authority and outlays for Function 400 to reflect an increase 
in funding for Amtrak. In Budget Authority: 2003: 679; 2004: 
0.0; 2005: 0.0; 2006: 0.0; 2007: 0.0; Outlays: 2003: 679; 2004: 
0.0; 2005: 0.0; 2006: 0.0; 2007: 0.0. ($millions for fiscal 
year)
    It also directed that the aggregate levels of revenues be 
adjusted by amounts equal to the changes in that function, 
reflecting a reduction in the amount of the new tax cuts 
assumed in the budget resolution.
    The amendment offered by Mr. Holt was not agreed to by a 
voice vote.
    20. Mr. Matheson offered an amendment to increase budget 
authority and outlays for Function 300 to reflect an increase 
in funding for the Payment in Lieu of Taxes program to fully 
fund the program at the authorized level by 2007. In Budget 
Authority: 2003: 25; 2004: 50; 2005: 75; 2006: 100; 2007: 125; 
Outlays: 2003: 25; 2004: 50; 2005: 75; 2006: 100; 2007: 125. 
($millions for fiscal year)
    It also directed that the aggregate levels of revenues be 
adjusted by amounts equal to the changes in that function, 
reflecting a reduction in the amount of the new tax cuts 
assumed in the budget resolution.


----------------------------------------------------------------------------------------------------------------
  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         ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
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         ..........       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
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Mr. KIRK            ..........       X
----------------------------------------------------------------------------------------------------------------

    The amendment offered by Mr. Matheson was not agreed to by 
a roll call vote of 14 ayes and 27 noes.
    21. Mr. Capuano offered an amendment to increase budget 
authority and outlays for Function 600 (Income Security) to 
reflect increased funding for ensuring the safety and security 
of public housing, create new opportunities for home ownership 
for low and moderate-income families through the HOME program, 
sheltering the homeless, and providing flexible housing 
assistance to families through additional Section 8 rental 
housing vouchers, housing for persons living with HIV and AIDS, 
and housing in rural areas. In Budget Authority: 2003: 1,235; 
2004: 1,265; 2005: 1,275; 2006: 1,272; 2007: 1,272; Outlays: 
2003: 160; 2004: 520; 2005: 894; 2006: 1,071; 2007: 1,224. 
($millions for fiscal year)
    It also directed that the aggregate levels of revenues be 
adjusted by amounts equal to the changes in that function, 
reflecting a reduction in the amount of the new tax cuts 
assumed in the budget resolution.
    The amendment offered by Mr. Capuano was not agreed to by a 
voice vote.
    22. Mr. Capuano asked for language to be included in the 
report on the concurrent resolution on the budget. The report 
language read as follows: ``The budget resolution assumes that 
full and equitable funding will be provided to local first 
responders in desperate need of Federal assistance for homeland 
security efforts. The committee recognizes that our Nation's 
first responders rose to the occasion in recent months, 
answering the call to protect and stabilize our communities 
after the terrorist attacks on September 11th as well as the 
anthrax attacks of October 2001. While we are encouraged by the 
President's proposed increases in homeland security spending, 
particularly the $3.5 billion for FEMA's proposed State and 
Local Terrorism Preparedness initiative, $2.625 billion of 
which will be directed toward local communities, we note with 
concern that local communities may not be able to participate 
because of an onerous 25% local `match' prerequisite for 
Federal assistance. In order to relieve local communities of 
this unfunded mandate, and ensure that local first responders 
may continue to serve as America's first line of defense, the 
committee recommends that Congress consider waiving the local 
match requirement for local terrorism preparedness.''
    The report language offered by Mr. Capuano was not 
accepted.
    23. Mr. Putnam offered an amendment related to border 
security. The amendment expressed the sense of the House that 
the budget resolution assumes $380 million in Function 750 will 
be used to implement a visa tracking system in the Immigration 
and Naturalization Service.
    The amendment offered by Mr. Putnam was agreed to by a 
voice vote.
    24. Mr. Gutknecht offered an amendment that expressed the 
sense of the House that rural and lower-payment areas within 
the Medicare + Choice program, which receive lower 
reimbursements due to the formula used in the program, should 
receive any additional funds given to the Medicare + Choice 
program if a bill reforming Medicare is reported from the Ways 
and Means Committee.
    Mr. Gutknecht's amendment was agreed to by the Committee.
    25. Mr. Nussle offered an en bloc amendment comprised of 
four amendments: an amendment sponsored by Mr. Moran that it is 
the sense of the House that 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 as the 
military; an amendment sponsored by Mr. Price that increased 
budget authority in Function 750 by $400 million in fiscal 
years 2003, 2004, and 2005 and reduced budget authority by the 
same amount in Function 800 in order to increase funding for 
poll worker training and voter education and other election-
related needs; an amendment expressing the sense of Congress on 
Asset Building for the Working Poor sponsored by Mr. Thompson 
to encourage the creation of Individual Development Accounts, 
which are savings accounts for low-income people augmented by 
the Federal Government; and an amendment sponsored by Ms. 
Hooley expressing the sense of Congress that indicates the 
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.
    The en bloc amendment was agreed to by voice vote.
    Mr. Sununu made a motion that the Committee adopt the 
aggregates, function totals, and other appropriate matter, with 
any amendments.
    The motion offered by Mr. Sununu was agreed to by voice 
vote.
    Chairman Nussle called up the Concurrent Resolution on the 
Budget for fiscal year 2003 incorporating the aggregates, 
function totals, and other appropriate matter as previously 
agreed.
    Mr. Sununu made a motion that the Committee report the 
Concurrent Resolution with a favorable recommendation and that 
the Concurrent Resolution do pass. The motion offered by Mr. 
Sununu was agreed to by a roll call vote of 23 ayes and 17 
noes.

                           Final vote passage


----------------------------------------------------------------------------------------------------------------
  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         ..........  .........  ...........
----------------------------------------------------------------------------------------------------------------
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              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         ..........  ..........  ............  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.
    There was no objection to the unanimous consent requests.
                       ADDITIONAL REPORT LANGUAGE

                              ----------                              


           defense environmental restoration waste management

    The budget resolution accommodates $6.7 billion for the 
Department of Energy's [DOE] Environmental Management Program 
for fiscal year 2003 as requested by the administration. 
Additionally, the Committee recommends that an additional $300 
million be made available, consistent with the administration's 
request, to fully fund DOE's expedited cleanup agreements with 
the States. The Committee recommends that DOE ensure each site 
in the complex be provided sufficient funding to continue 
cleanup at not less than last year's level.

                           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 war against terrorism, our 
Middle East allies, and the war against drugs in the Andean 
countries. The United States is the world's leading democracy 
and superpower. Programs funded in this account, provide 
desperately needed assistance and hope to countless 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 performed in areas including 
health care, emergency relief, democracy building, and 
international security assistance. The 11 September terrorist 
attacks highlight the need for these programs. Funds spent 
through the foreign assistance programs assist stability and 
prevent conflicts and disasters before they become a global 
financial burden, a threat to national security, and, most 
important a threat to the lives of innocent men, women and 
children.

                            budget estimates

    The Committee is dedicated to employing the most accurate 
estimates to prepare the budget. In fiscal year 2001, the 
Congressional Budget Office [CBO] forecast a unified budget 
surplus that was more than $150 billion higher than the surplus 
actually achieved. In fiscal year 2000, CBO projections 
underestimated the actual surplus by $60 billion. More than 
half the budget surplus inaccuracy was due not to changes in 
legislation, but to errors in ``economic and technical'' 
factors used to predict economic activity. One area of 
potential improvement for CBO's current model is the relation 
of tax relief to government receipts, and how lower tax rates 
may boost the economy. In addition, CBO should consider whether 
tax increases result in higher government spending without 
diminishing economic activity. Expert and academic studies have 
well established that labor and productivity are linked to 
taxes and government spending through elastic responses to 
changes at the margin. CBO's current model has not adopted this 
well-settled principle.
    One recognized expert, Federal Reserve Chairman Alan 
Greenspan, testified before the Senate Banking, Housing and 
Urban Affairs on March 7, 2002, saying, ``As you know, Senator, 
most economists will agree that, in evaluating the effects of 
various different fiscal policies, it would be far better to 
use what we call dynamic scoring--that is, the ability to get 
the interaction of the effect as well as the initial impact.'' 
There is a clear need for more accurate estimating of taxation 
and its effect on labor and capital, and assessing what tax 
rates are optimum to cause more labor or capital to be employed 
in productive activities, which can spur the economy to higher 
output.
    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 is encouraged to 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 should fully fund 
this program to ensure that all children have access to the 
best possible education.

                     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 affect 
millions of American families. The Committee specifically notes 
the important research being done at NIH to cure juvenile 
diabetes. The budget resolution assumes increased funding for 
the NIH and believes that it is a high priority program within 
the overall discretionary spending allocation.

                       nasa aeronautical research

    Amounts included under this function assume a high priority 
for funding advanced technology low noise jet engine 
development leading toward the production of Stage IV aircraft 
engines for commercial use.

                   federal fire prevention assistance

    The Committee reports the following findings: (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 demonstrate a critical need for Federal 
investment in support of firefighting personnel.
    In the wake of the terrorist attacks of 11 September 2001, 
and the ultimate sacrifice paid by over 300 firefighters, it is 
the Sense of Congress that the Assistance to Firefighters Grant 
Program should, at a minimum, be fully funded. The Assistance 
to Firefighters Grant Program, administered by the Federal 
Emergency Management Agency, should also remain a separate and 
distinct program, which provides financial resources for basic 
fire fighting needs.

                        inland waterways system

    The Committee recognizes the importance of the inland 
waterway system and the need to modernize the navigation 
infrastructure so agriculture and related industries can 
compete in the international marketplace.

                         u.s. future's exchange

    The Committee is aware that the administration's fiscal 
year 2003 budget assumes enactment of yet-to-be proposed 
legislation to establish a ``transactions fee'' on commodity 
futures and options contracts traded on U.S. futures exchanges. 
The resolution does not specifically assume enactment of such a 
fee. The Committee is also aware of concerns that this new fee 
could harm the competitive position of U.S. futures exchanges, 
reduce liquidity in these regulated exchange markets, and 
encourage customers to take their business to competing 
overseas markets at the expense of U.S. employment and tax 
revenues.

                empowerment zones/enterprise communities

    The Committee strongly supports the continued funding of 
the Round II Urban and Rural Empowerment Zone and Enterprise 
Community (EC/EZ) initiatives at least at the level pledged by 
the Round II designation of 1999. The Committee recognizes that 
the current EC/EZ initiative is yielding measurable results; 
improving the economy and quality of life in distressed areas; 
enabling self-sufficiency of disadvantaged residents; and 
leveraging private and nonprofit resources. In competing for 
designation, these communities were selected for their 
thoughtful use of Federal funds over a full 10-year cycle, not 
on how quickly they could withdraw from funds from the 
Treasury. The Round II EZ/EC designees have received only a 
small portion of the Federal grant funds they were promised to 
implement their strategic plans for revitalization. This 
resolution assumes the program will receive sufficient 
resources to continue progress on this important work.

                            worker training

    The Committee's assumption regarding net discretionary 
spending increases for education in Function 500 includes a 
recognition that the federally assisted national workforce 
development system administered by the U.S. Department of Labor 
is central to America's ``second chance'' education system. 
Each year, tens of thousands of youth and adults receive 
remedial education, skills training, and various employment and 
re-employment services, which they access through the newly 
established national network of one-stop centers. Continued 
Federal investment in the new national workforce development 
system is critical to the Nation's competitiveness in the world 
economy.

                       tax benefits for education

    The Committee recognizes that changes in the tax code can 
significantly contribute to strengthening the educational 
system. These changes include providing a tax credit to 
individuals for qualified educational expenses such as tuition, 
books, computer technology or special education services; 
providing a tax credit to corporations and individuals for 
donations to public schools or to organizations that give 
tuition scholarships to low-income children; providing a tax 
credit for teachers to help defray the costs associated with 
professional development and out-of-pocket classroom expenses; 
and expanding 529 savings plans to elementary secondary 
education.

                               fragile x

    The Committee recognizes the importance of funding for 
fragile X research. Thousands of Americans families are 
devastated by fragile X, and increased funding for research 
could create tremendous opportunities for the potential for the 
development of a cure and tools for early diagnosis. The 
Committee believes increased funding would enhance and increase 
the efforts and commitments to fragile X research.

                          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 1 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 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.

                              global aids

    Each day, AIDS, tuberculosis and malaria kill more than 
17,000 people. The Global Fund will support a wide range of 
interventions, from education and prevention to the procurement 
of HIV/AIDS/TB-related drugs and commodities, including 
antiretroviral agents in situations where their use can be 
managed effectively, and the anti-malaria interventions such as 
insecticide-treated bed nets. To maximize the Global Fund's 
impact, the funds will be used for results-based programs that 
specifically increase the number of people covered by the 
direct provision of drugs, other commodities and services to 
beneficiaries in countries severely affected by these diseases. 
The Budget Committee encourages the State Department to seek 
additional funding for the Global Fund to fight HIV/AIDS/TB and 
Malaria as part of a potential supplemental appropriations 
request for fiscal year 2002.

                            Election reform

    The budget resolution assumes that $400 million will be 
provided for matching grants, administered by the Federal 
Election Commission's Office of Election Administration or by a 
new Federal elections administration entity, to enable State 
and local jurisdictions to take advantage of improved voting 
technologies and administration, including voting machines, 
registration systems, voter education, and poll worker 
training.

                           tax sales fairness

    The Committee reports the following findings: (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. The Committee believes that the Committee on 
Ways and Means should consider legislation that makes State 
sales tax deductible against Federal income taxes.

                         International food aid

    The budget resolution assumes full funding of the 
President's request for PL 480 Title II, which is $1.185 
billion and full funding for the ocean freight differential for 
the use of U.S. flag vessels for PL 480 Title II. Private 
voluntary organizations and cooperatives, which currently 
implement nearly all of the CCC-funded Food for Progress 
programs would continue to be eligible to implement Food for 
Progress programs.

                     health related report language

    It is the view of the Committee that grants to the States 
for the establishment of health insurance risk pools merit 
serious consideration. The Committee is also aware that funding 
for graduate medical education [GME] conducted at independent 
children's hospitals is necessary to ensure access to care by 
millions of children nationwide; that a precipitous decline in 
Medicaid disproportionate share hospital [DSH] payments could 
be detrimental to the ability of rural and urban hospital to 
deliver essential services to under-served communities; and 
that funding for Ryan White CARE Act serves as a safety net for 
thousands of low-income people living with HIV/AIDS who are 
ineligible for entitlement programs. Moreover, the CARE Act 
provides critically needed grants directly to existing 
community-based clinics and public health providers and ongoing 
comprehensive services to persons with HIV/AIDS. Finally, the 
Committee is aware that funding for indirect medical education 
[IME] payments to the Nation's teaching hospitals plays an 
important role in maintaining high quality medical care for 
Medicare beneficiaries.

                     Relief funding for afghanistan

    The budget resolution assumes that reconstruction aid and 
humanitarian assistance directed to the people of Afghanistan 
be high priorities for funding. The Committee acknowledges and 
supports the President's proposals to provide substantial 
reconstruction assistance for post-Taliban Afghanistan. The 
Committee is a aware of the critical need for humanitarian 
assistance to aid in the repatriation of more than 3l.6 million 
Aghan refugees that have been displaced. The Committee notes 
that the United States is the largest single provider of 
humanitarian assistance to the Afghan people. The Committee 
believes that every effort should be made to encourage other 
countries to participate financially toward rebuilding 
Afghanistan.

                              coast guard

    The Committee believes that it is important to the Coast 
Guard to fund the President's fiscal year 2003 budget request. 
In light of budget shortfalls and personnel and operational 
constraints, the Coast Guard has maintained its longstanding 
and distinguished reputation of protecting American's critical 
maritime interests. The Coast Guard should be provided with the 
necessary resources to protect America's maritime homeland 
security while maintaining other vital missions such as search 
and rescue, pollution prevention, fisheries law enforcement, 
drug and migrant interdiction and boating safety.

                   diesel fuel deficit reduction tax

    The 4.3 cent-per gallon Diesel Fuel Deficit Reduction Tax 
remains an issue which needs redress even though Congress has 
twice passed legislation to repeal this unfair and 
discriminatory tax. This tax is inconsistent with sound 
national transportation policy because it effectively singles 
out the nation's railroads and the inland waterway industry.

              homeland Security--agricultural bioterrorism

    The strength and value of the U.S. food and agricultural 
system makes it a logical terrorist target. By virtue of its 
significance to the American economy, U.S. agriculture is 
vulnerable to a bioterrorism incident specifically targeting 
key animal or plant commodities. The U.S. Department of 
Agriculture's (USDA) internal and external agency structures 
must be strengthened to protect America's agricultural industry 
from agricultural bioterrorism threats, and to position key 
agencies, such as USDA, as critical components of America's 
Homeland Security infrastructure. Homeland Security policies, 
in particular with regard to the USDA, must focus on preventing 
and responding to potential attacks on American agriculture's 
infrastructure and the nation's food supply, in the same way 
and with the same vigor, that we address threats to our 
population and non-agricultural economic targets.

                     agriculture--invasive species

    Ensuring the continued strength of our nation's 
agricultural infrastructure requires an investment in services 
to protect farmers, ranchers, and consumers from the threats of 
crop and animal pests and food borne diseases. The FY 2003 
Budget sets the framework to safeguard U.S. plant and animal 
resources from inadvertent as well as intentional pests and 
disease threats.
    Helping protect the health of animal and plant resources 
from inadvertent, as well as intentional pest and disease 
threats is the primary responsibility of the U.S. Department of 
Agriculture. The FY 2003 budget should strengthen USDA's Animal 
and Plant Health Inspection Service (APHIS) reflecting the 
continued and enhanced challenges to protecting U.S. 
agriculture at our borders. These resources will be used to 
more effectively detect and respond to a pest or disease 
outbreak and enhanced monitoring and surveillance systems for 
pest and disease outbreaks.
    Once detected, prompt eradication of an outbreak is 
essential to limit damages and reduce overall control costs. 
The 2003 budget continues an emphasis on funding of several 
critical eradication programs, including the Citrus Canker 
eradication program, vital to the State of Florida. Ensuring 
the safety of our food supply from intentional as well as 
nonintentional threats represents a major area of concern for 
all Americans. The FY 2003 Budget represents an investment 
toward his end, as protection of our food supply is the first 
line of defense in establishing a strong and well-fortified 
agriculture infrastructure.

             accounts identified for advance appropriations

Interior Appropriations
Elk Hills (89 5428 02 271)
Labor, Health and Human Services, Education Appropriations
Employment and Training administration (16 0174 01 504)
Education for the Disadvantaged (91 0900 01 501)
School Improvement (91 1000 01 501)
Children and Family Services [head start] (75 1536 01 506)
Special Education (91 0300 01 501)
Vocational and Adult Education (91 0400 01 501)
Transportation
Transportation (highways; transit; Farley Bldg.)
Treasury, General Government Appropriations
Payment to Postal Service (18 1001 01 372)
Veterans, Housing and Urban Development Appropriations
Section 8 Renewals (86 0319 01 604)
       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's oversight 
findings and recommendations are reflected in the body of this 
report.

   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.

                       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 
views in its report. The following views were submitted:

               ADDITIONAL VIEWS OF HON. MARK STEVEN KIRK

    ``What we anticipate seldom occurs; what we least expected 
generally happens.''--Prime Minister Benjamin Disraeli
    If he were alive today, Disraeli could assist the Congress 
to forecast budget trends. As Chairman Nussle stated during the 
mark-up of the House Budget Concurrent Resolution, we know that 
the budget projections we use this year will be proven wrong by 
the end of fiscal year (FY) 2003. Taxpayers trust us to 
prudently allocate trillions of dollars--but we are guided by 
faulty numbers. This status quo is not acceptable. We must 
improve the accuracy of forecasts we rely on to set federal 
budget priorities.
    Even the one year estimates that the Congressional Budget 
Office (CBO) provided were seriously off the mark. These 
surplus/deficit forecasts primarily are inaccurate because of 
misestimated ``economic and technical variables'' used by CBO 
to advise the Congress. These technical details--rarely 
examined by any member of Congress--are vitally important to 
congressional decision making and are responsible for almost 
half of the errors we make each year in the preparation of the 
budget.
    The table below lists the projected surplus or deficit by 
the CBO for the coming year. The errors are always in the 
billions and recently missed the mark by over $50 billion. This 
error alone is over four times the size of Illinois state 
budget. More importantly, at least 45 percent of the errors 
were caused by faulty estimates and in some years the error 
equaled three times that amount. Table 1 illustrates the point:

                     TABLE 1.--HISTORICAL COMPARISON OF CBO'S BASELINE ONE-YEAR BUDGET PROJECTION COMPARED TO ACTUAL BUDGET NUMBERS
                                     [Impact of legislative changes on budget projection inaccuracies/$ in billions]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                              Impact of
                                                                                                                    Impact of                  variance
                                                                                                                     variance     Variance       not
                                                   Projected      Actual                  Inaccuracy    Variance      due to        not       accounted
                                                   surplus or   surplus or   Inaccuracy   as a % of      due to      enacted     accounted      for by
                                                    deficit      deficit                  surplus or    enacted    legislation     for by    legislation
                                                                                           deficit    legislation       on      legislation       on
                                                                                                                    Inaccuracy                Inaccuracy
                                                                                                                       (%)                       (%)
--------------------------------------------------------------------------------------------------------------------------------------------------------
2001............................................         $487         $333        -$154         46.2         -$84         54.5         -$70         45.5
2000............................................          400          460           60         13.0         -$27        (\1\)           88        146.7
1999............................................          339          354           15          4.2  ...........  ...........           15        100.0
1998............................................          239          310           70         22.6           $4          5.1           67         94.9
1997............................................          123          222           99         44.6           $1          1.0           98         99.0
1996............................................           96          134           38         28.3  ...........  ...........           38        100.0
1995............................................           59           68            9         13.2           -2        (\1\)           11        122.0
1994............................................          -22            0           22  ...........           -1        (\1\)           23        104.5
1993............................................         -112          -56           56        100.0            6         10.7           50         89.3
1992............................................         -151          -91           60         65.9           -6        (\1\)           66        110.0
1991............................................          -99          -75           24         32.0          -13        (\1\)           37        154.2
1990............................................           42          -37          -79        213.5            2        (\1\)          -80       101.3
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Variance reduced inaccuracy.

 Projected Surplus or Deficit is net of interest adjustments; Inaccuracy as a % of Surplus/Deficit is calculated using absolute numbers.

 Source: Congressional Budget Office, ``Uncertainties in Projecting Budget Surpluses: A Discussion of Data and Methods,'' February 2002.

    In six out of the last twelve years, legislative changes 
actually diminished the impact of misjudged economic forecasts 
and technical errors.
    We must begin the process of learning from our mistakes, to 
compare projected estimates to actual performance and determine 
the cause for errors. This will establish a path for 
progressively more accurate forecasts--first for the next 
fiscal year, then for longer term horizons. To this end, I am 
pleased that this year's Budget Resolution includes my 
suggestion that CBO provide Congress with a detailed formal 
review of why their forecast was off. This look back--or 
``backcasting''--review will include the following:
         (1) a sensitivity analysis that will show which mis-
        forecast variables caused the greatest errors in 
        projected surpluses and deficits;
         (2) an identification of the technical factors that 
        contributed to forecasting inaccuracies;
         (3) a variance analysis between forecasted and actual 
        budget results, and most importantly;
         (4) recommendations on how to improve forecasting 
        accuracy in the future.
    I commend CBO for its early recognition of forecasting 
errors for FY2002. In testimony before the Senate Budget 
Committee on March 6, 2002, Budget Director Crippen advised the 
Congress of revisions to the projections that CBO published in 
January. Its latest data analysis shows that higher than 
expected economic growth added $23 billion to Federal revenue 
in fiscal year 2002 and $16 billion in fiscal year 2003.
    How can CBO miss their projections so quickly? CBO's 
current ``static'' economic model requires the Congress to 
ignore changes in taxpayer behavior and the economy. Under this 
outdated rule, Congress did not properly account for the 
stimulative effect of Congress's taxrelief enacted last year. 
CBO's current model assumes that tax relief reduces government receipt 
in certain ways that can be projected, but gives only uncertain boosts 
to the economy that cannot be projected. Meanwhile, tax increases 
result in higher government that can be projected without diminishing 
economic activity that cannot be predicted. Our model--the critical 
tool used by the American people's elected representatives to set their 
priorities--assumes that taxpayers do not change their behavior in 
reaction to legislative changes that affect their pocketbook--but the 
academic literature and common sense clearly indicates that this 
critical assumption is wrong. Benjamin Franklin advised the Congress 
that taxing a good make it less available. Models in use on Wall Street 
show that when the government increases taxes on something--such as 
saving and investment--we get less of it. A change in tax policy 
influences the decisions that individuals and businesses make--thereby 
affecting federal revenues. In order to make the best decisions, 
Congress needs Real World Scoring Estimates that do not ignore the 
interaction between federal taxes, federal programs, and individual 
behavior.
    We should support the views of Alan Greenspan, who 
testified before the Senate Banking, Housing and Urban Affairs 
on March 7, 2002, saying, ``As you know, Senator, most 
economists will agree that, in evaluating the effects of 
various different fiscal policies, it would be far better to 
use what we call dynamic scoring--that is, the ability to get 
the interaction of the effect as well as the initial impact.''
    What does the term ``Real World Scoring'' mean? It means 
taking into account how real individuals respond when they are 
provided incentives to undertake an activity desired by 
Congress or to stop something Congress wishes to diminish. We 
measure the impact of individual behavior on the overall 
economy. This is the Real World. It recognizes that decreases 
in taxes on labor or capital will cause more labor or capital 
to be employed in productive activities, which can spur the 
economy to higher levels of output. This is not done now by 
either CBO or the Joint Tax Committee. The data show that this 
is large part of the reason why the Budget Committee and the 
Congress as a whole often misjudges the impact of tax changes. 
If we hold forecasters accountable for their errors during this 
time that we are evaluating the impact of the first major tax 
cut in a generation, I am confident that we will see the Real 
World in action.
    Budget estimates or changes in capital gains tax policy 
demonstrate the serious shortcomings of today's ``Static 
Analysis.'' In 1984, Congress passed the ``Deficit Reduction 
Act'' which temporarily reduced the long-term capital gains 
holding period from 12 months to six months, making it easier 
for investors to qualify for better tax treatment. Investors 
reacted--and quickly. Capital gains realizations in 1986 jumped 
to almost twice that of 1985. However, this investor stampede 
was short-lived because Congress repealed the partial long-term 
capital gains exclusions as part of the ``Tax Reform Act of 
1986.'' Budget experts prepared static estimates that 
anticipated large federal revenue gains from the higher capital 
gains tax. Instead, capital gains realizations tumbled in 1987. 
Despite these clear errors in the economic model, we left the 
erroneous assumptions in place and continued building errors 
into our tax policy.
    The static model was again found to be wrong in 1997, when 
Congress passed the ``Taxpayer Relief Act,'' lowering the long-
term capital gains tax rate to 20 percent. A static trending of 
current capital gains realization growth rates predicted a 
dismal drop in revenues dueto the tax cut. Instead, capital 
gains realizations increased steadily, and capital gains tax revenues 
substantially contributed to the surpluses from 1998 to 2000. Table 2 
clearly outlines the errors repeated by the model used by Congress:

  TABLE 2.--ANTICIPATED CAPITAL GAINS REALIZATIONS COMPARED TO ACTUAL CAPITAL GAINS REALIZATIONS, TRACKED WITH
                                              CHANGES IN TAX POLICY
                                            [In billions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                      Static
                                                                  expectation of  Actual capital
                            Tax year                               capital gains       gains        Difference
                                                                   realizations    realizations
----------------------------------------------------------------------------------------------------------------
Deficit Reduction Act (lowering capital gains rates)--1984:
    1985........................................................             171             171  ..............
    1986........................................................             192             332             140
Tax Reform Act of 1986 (raising capital gains rates):
    1987........................................................             213             137             -75
    1988........................................................             237             154             -83
    1989........................................................             267             146            -121
    1990........................................................             292             114            -178
    1991........................................................             301             103            -199
    1992........................................................             307             118            -189
    1993........................................................             335             144            -191
    1994........................................................             368             142            -226
    1995........................................................             410             170            -239
    1996........................................................             448             252            -196
Taxpayer Relief Act of 1997 lowers cap gains rate, effectively
 restoring about 90% of the exclusion available before 1986:
    1997........................................................             269             356              87
    1998........................................................             288             446             158
    1999........................................................             308             546             238
    2000........................................................             329             643             314
----------------------------------------------------------------------------------------------------------------
The static capital gains realization estimates from 1985 through 1996 are derived by methods consistent with
  those used by the Joint Committee on Taxation, starting with 1985 as the baseline year; the projections for
  1997 through 2000 apply existing trends to 1996 actual realizations, as a static analysis would do.

    Budget projections that fail to take into account what will 
happen when Congress subsidizes something will also be off, 
sometimes badly. When a good or service costs less, individuals 
will use more of it. The relationship between the fall in the 
price of a good or service and its increased use depends on its 
demand elasticity. Broccoli farmers growing former President 
Bush's least favorite commodity could drop the price of their 
product by 50 percent and not see much of an increase in 
consumption. Chocolate producers, on the other hand, might see 
consumers buying more than twice the amount of candy bars if 
they cut prices by half. Economic projections that do not 
incorporate a increase in usage of a subsidized product at an 
appropriate measure of elasticity will underestimate the cost 
of any new government program.
    This has often happened with Medicare Part B projections. 
When Congress added a renal dialysis benefit to Medicare in 
1972, forecasts used at that time predicted that program 
enrollment would level out at about 90,000 patients by 1995. 
The 90,000 mark was surpassed in 1985. By 1995, enrollment 
stood at 239,000. By 2005, Medicare actuaries expect enrollment 
to exceed 400,000. Home health care is another example. 
Medicare payments for home health care exceeded all 
expectations in the early 1990s jumping 51 percent in 1990 
alone, and increasing by a factor of four--from $4 billion to 
$17 billion--between 1990 and 1995. Congress excluded foreign 
sugar to allow domestic producers to charge four times the 
world price to American families. With such strong incentive, 
more and more domestic producers entered production. 
Eventually, the United States produced so much domestic sugar 
that the elimination of all imports could not support the high 
prices demanded by Congress.
    Finally, getting unit costs wrong can be just as bad as 
getting utilization rates wrong. In 1986, the Air Force 
estimated that the unit cost of developing and purchasing the 
B-2 Bomber would be $700 million, measured in 2000 dollars. In 
1998, the Government Accounting Office estimated that each B-2 
would $2.2 billion--and this didn't include expected 
modifications. Recent estimates place the cost at $2.7 billion. 
Total program cost has risen from $44 billion for 20 aircraft 
in 1998 to $57 billion for 21 B-2s. Such cost overruns leave 
less money to fund other priorities, such as new education 
initiatives.
    Whether we are talking about correctly measuring taxpayer 
responses to tax rate reductions or increases, beneficiary 
responses to new subsidies, or correctly projecting unit costs 
of large capital assets, accurate Real World Estimates should 
be a bipartisan initiative, focused on the goal of making 
government more effective. Increasing the reliability of the 
projections we work with will improve the quality of our policy 
decisions. When we truly understand that well-crafted policies 
can encourage economic growth, we can keep this economy 
rolling.

                                                  Mark Steven Kirk.

    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, JAMES P. MORAN, DARLENE HOOLEY, TAMMY BALDWIN, 
 MICHAEL E. CAPUANO, MICHAEL M. HONDA, JOSEPH M. HOEFFEL, AND RUSH D. 
                                  HOLT

    Three times in the 1990s, Congress enacted measures to bear 
down on the deficit beginning with the Budget Summit in 1990, 
and then the Clinton budget in 1993, and finally the Balanced 
Budget Act of 1997. And each year, for eight straight years 
from 1993 through 2000, we reaped the results. Each year, the 
bottom line of the budget got better.
    The prospects peaked last year when CBO and OMB projected 
current policies out ten years and saw unified surpluses that 
totaled $5.6 trillion.
    Democrats knew these were blue sky forecasts, and we warned 
against betting the budget on them. We urged that a third of 
the on-budget surplus be set aside for Social Security, and 
until we had settled on a plan for saving Social Security, that 
it be held in reserve, in case these rosy projections didn't 
pan out.
    Democrats proposed tax cuts, but we also proposed more for 
education, more for prescription drugs under Medicare, and more 
for debt reduction.

From fiscal improvement to fiscal reversal

        Fiscal year                                      Surplus/deficit
1992..........................................................   -$290.4
1993..........................................................    -255.1
1994..........................................................    -203.3
1995..........................................................    -164.0
1996..........................................................    -107.5
1997..........................................................     -22.0
1998..........................................................     +69.2
1999..........................................................    +125.5
2000..........................................................    +236.4
2001..........................................................    +127.1
2002..........................................................     -46.0

    President Bush proposed much larger tax cuts, $1.7 trillion 
to start with; these became the driving force in the Republican 
budget resolution. We pointed out that the impact on the 
budget, when debt service was included, would come to more than 
$2 trillion, out of a non-Social Security budget surplus of 
only $2.6 trillion. We pointed to clouds gathering over the 
economy, and warned that if CBO were off by just 10 percent, 
the budget would be back in the red, and back into the Social 
Security surplus.
    Here is what the President said in reply:

          Tax relief is central to my plan to encourage 
        economic growth, and we can proceed with tax relief 
        without fear of budget deficits, even if the economy 
        softens. Projections for the surplus in my budget are 
        cautious and conservative. They already assume an 
        economic slowdown in the year 2001.--President Bush, 
        Western Michigan University, March 27, 2001

    Democrats thought that both political parties had drawn one 
bright line in the budget, and made the Social Security 
surpluses inviolate. In fact, these are the promises made by 
the President and Congressional Republicans:

          None of the Social Security trust funds and Medicare 
        trust funds will be used to fund other spending 
        initiatives or tax relief.--A Blueprint for New 
        Beginnings: A Responsible Budget for America's 
        Priorities, Office of Management and Budget, February 
        28, 2001, Page 11

          To make sure the retirement savings of America's 
        seniors are not diverted into any other program, my 
        budget protects all $2.6 trillion of the Social 
        Security surplus for Social Security and for Social 
        Security alone.--President Bush, Address to Joint 
        Session of Congress, February 27, 2001

          We are going to wall off Social Security trust funds 
        and Medicare trust funds . . . And consequently, we pay 
        down the public debt when we do that. So we are going 
        to continue to do that. That's in the parameters of our 
        budget and we are not going to dip into that at all.--
        House Speaker Dennis Hastert, Quoted in BNA's Daily Tax 
        Report, March 2, 2001

          We must understand that it is inviolate to intrude 
        against either Social Security or Medicare and if that 
        means forgoing or, as it were, paying for tax cuts, 
        then we'll do that.--House Majority Leader Richard 
        Armey, BNA's Daily Tax Report, July 11, 2001

    The lock-boxes brought to the floor may have been gimmicks; 
but Democrats thought we had consensus on the core concept. We 
thought we had agreement that the trust fund surpluses would be 
saved, not borrowed and spent, to buy back Treasury debt held 
by the public. That could add more than $3 trillion to national 
savings, boost the economy, and in time retire virtually all 
the Treasury's debt. Then, in 2025, when the Social Security 
trustees needed to begin liquidating bonds to pay benefits, the 
Treasury would be in far stronger shape to redeem those 
obligations.
    Before the last budget year was over we would find this 
principle honored in the breach.
    Our arguments and admonitions went unheeded last year. The 
Republicans passed their budget, and left no margin for error 
as the chart below shows. For the next seven years, they spent 
virtually the entire non-Social Security, non-Medicare surplus; 
if anything at all were to gowrong, the nation's entire 
economic strategy would be ruined.
    So, when the forecasting errors began to show up, when the 
economy began to drop below OMB's projections, the unified 
surplus went down too, as this table below shows. According to 
the August estimate, before the influences of the terrorist 
attack in September, the surplus went down by $2.5 trillion, or 
45 percent.


    This year, if Republicans pass the President's budget, by 
OMB's accounting, the surplus will be slashed all the way down 
to $661 billion, just 12 percent of what was projected last 
year. Instead of $5.6 trillion, the unified surplus will be 
$0.6 trillion.


    And that surplus, as the next table shows, is only what is 
left over of the surplus in Social Security. By OMB's own 
reckoning, if Republicans vote to pass the President's budget 
this year, they will be voting to spend all $560 billion of the 
Medicare surplus and $1.650 trillion dollars of the Social 
Security surplus, from 2002 through 2011 creating a $1.650 
trillion on-budget deficit.


    That dire calculation assumes that OMB's estimate of 
Medicare spending is correct, even though it is $226 billion 
less than CBO estimates the cost to Medicare will be.


    OMB's calculation also assumes that Republicans can hold 
non-defense discretionary spending for ten years $215 billion 
below what CBO estimates is needed to maintain the level of 
current services.


    That calculation further assumes that the nation can make 
it through the next ten years without major adjustments to the 
individual Alternative Minimum Tax, even though the number of 
tax filers affected will increase twenty-fold, from fewer than 
2 million to 39 million. The President's budget overlooks the 
AMT altogether. The cost of correcting this problem will be at 
least $450 billion.
    Any developments could cause the Republican budget to 
consume the entire Social Security surplus, in addition to the 
surplus in Medicare.
    So much for the lock box. And sadly, so much for our plan 
to save the Social Security surplus. The Republican budget 
dashes any hope that we can carry it out.
    Republicans can seek absolution by blaming the economy and 
the war, but this next pie chart, using OMB numbers, shows that 
the largest share of the blame (43 percent), stems from the tax 
cuts they enacted.


    Last year, the budget, excluding Social Security, was 
totally in the black. Every year for ten years, CBO projected 
an on-budget surplus, as the following chart shows. The two 
Republican budgets, this year and last, cause that bottom line 
to do an about-face. Now, CBO says that every year for ten 
years, there will be an on-budget deficit.


    As of last year, according to CBO, all the Treasury debt 
held by the public could be paid, or payment provided for, by 
2008. But under today's Republican budget, between 2001 and 
2004, Treasury debt held by the public actually goes up. And by 
2008, when the baby boomers start to retire, the government 
will owe more debt to the public ($3.479 trillion) that it owes 
today. (CBO Analysis of President's Budget, Page 18, Table 2.)


    So much for paying down the public debt.
    Facing such a reversal, one would hope that Republicans 
would be scrambling for solutions. But rather than face the 
problem, they avoid it. For the first time in years, rather 
than adopting the baseline that is consistent with the Budget 
Act and with past practice, Republicans pick the projections 
that favor Republican policies most: the very same OMB 
estimates, derived by political appointees, that Congressional 
Republicans protested by shutting down the government just 
seven short years ago.
    For the first time in years, Republicans also offer only a 
five-year budget instead of a ten-year budget. Presumably, 
their budget yields no consequences that they want to 
acknowledge in the second five years, and so they choose not to 
show those years at all. Republicans propose new programs, like 
drug coverage under Medicare, but because they present only a 
five-year budget, we have no way of telling if those 
initiatives are realistically funded. By not running their 
budget past 2007, Republicans avoid deciding whether the tax 
cut sunset in 2010 is to be repealed in their Budget 
Resolution. But the very day of the markup of the resolution, 
while Republicans were telling us that their proposal was 
silent on extending the tax cuts, their Speaker was announcing 
a new bill to do just that. This choice has a big impact on 
revenues, almost $400 billion. Without knowing out-year 
revenues, the Congress is at a loss to know if near-term tax 
cuts--extenders, for example--can be accommodated in this 
budget.
    This budget does not recover in five years. As for what 
happens in ten years, we are left to infer. Either Republicans 
have no ten-year plan of recovery, which is bad or they have a 
plan but it won't stand scrutiny, which is worse. In any event, 
there are no targets, no objectives, and no strategies that we 
can find in this budget. It takes the track all the President's 
witnesses took at Budget Committee hearings this year, which is 
to admit that there is no work-out strategy, except a hope for 
more economic growth than the forecast already assumes.
    This is not the path that led to eight straight years of 
better bottom lines. And this is not the path that leads to 
debt reduction and Social Security solvency and the furtherance 
of priorities that Democrats hold high, like education. 
Republicans went the wrong way at the fork last year. Before 
this year is out, we hope in some way to get the budget back on 
path. But this resolution takes us in the opposite direction.

                                   John M. Spratt, Jr.
                                   Jim McDermott.
                                   Bennie G. Thompson.
                                   Jim Davis.
                                   Eva M. Clayton.
                                   David Price.
                                   Jerry Kleczka.
                                   James P. Moran.
                                   Darlene Hooley.
                                   Tammy Baldwin.
                                   Michael E. Capuano.
                                   Michael M. Honda.
                                   Joseph M. Hoeffel.
                                   Rush Holt.
                                   Ken Bentsen.
                            A P P E N D I X

                              ----------                              


                            H. CON. RES. 353

    A Concurrent Resolution establishing the congressional 
budget for the United States Government for fiscal year 2003 
and setting forth appropriate budgetary levels for each of 
fiscal years 2004 through 2007.
  Resolved by the House of Representatives (the Senate 
concurring), 

SECTION 1. CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL YEAR 2003.

  The Congress declares that this is the concurrent resolution 
on the budget for fiscal year 2003 and that the appropriate 
budgetary levels for fiscal years 2004 through 2007 are hereby 
set forth.

                TITLE I--RECOMMENDED LEVELS AND AMOUNTS

SEC. 101. RECOMMENDED LEVELS AND AMOUNTS.

  The following budgetary levels are appropriate for each of 
fiscal years 2003 through 2007:
          (1) Federal revenues.--For purposes of the 
        enforcement of this resolution:
                  (A) The recommended levels of Federal 
                revenues are as follows:
                          Fiscal year 2003: $1,531,893,000,000.
                          Fiscal year 2004: $1,626,605,000,000.
                          Fiscal year 2005: $1,747,988,000,000.
                          Fiscal year 2006: $1,837,957,000,000.
                          Fiscal year 2007: $1,927,213,000,000.
                  (B) The amounts by which the aggregate levels 
                of Federal revenues should be reduced are as 
                follows:
                          Fiscal year 2003: $4,431,000,000.
                          Fiscal year 2004: $5,455,000,000.
                          Fiscal year 2005: $6,418,000,000.
                          Fiscal year 2006: $5,994,000,000.
                          Fiscal year 2007: $5,555,000,000.
          (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 2003: $1,784,032,000,000.
                  Fiscal year 2004: $1,839,183,000,000.
                  Fiscal year 2005: $1,928,997,000,000.
                  Fiscal year 2006: $2,019,464,000,000.
                  Fiscal year 2007: $2,113,668,000,000.
          (3) Budget outlays.--For purposes of the enforcement 
        of this resolution, the appropriate levels of total 
        budget outlays are as follows:
                  Fiscal year 2003: $1,756,223,000,000.
                  Fiscal year 2004: $1,813,604,000,000.
                  Fiscal year 2005: $1,897,834,000,000.
                  Fiscal year 2006: $1,977,123,000,000.
                  Fiscal year 2007: $2,057,436,000,000.
          (4) On-budget deficits.--For purposes of the 
        enforcement of this resolution, the amounts of the on-
        budget deficits are as follows:
                  Fiscal year 2003: $224,330,000,000.
                  Fiscal year 2004: $186,999,000,000.
                  Fiscal year 2005: $149,846,000,000.
                  Fiscal year 2006: $139,166,000,000.
                  Fiscal year 2007: $130,223,000,000.
          (5) Public debt.--The appropriate levels of the 
        public debt are as follows:
                  Fiscal year 2003: $6,414,000,000,000.
                  Fiscal year 2004: $6,760,000,000,000.
                  Fiscal year 2005: $7,069,000,000,000.
                  Fiscal year 2006: $7,366,000,000,000.
                  Fiscal year 2007: $7,655,000,000,000.
          (6) Debt held by the public.--The appropriate levels 
        of debt held by the public are as follows:
                  Fiscal year 2003: $3,495,000,000,000.
                  Fiscal year 2004: $3,503,000,000,000.
                  Fiscal year 2005: $3,445,000,000,000.
                  Fiscal year 2006: $3,365,000,000,000.
                  Fiscal year 2007: $3,264,000,000,000.

SEC. 102. HOMELAND SECURITY.

  The Congress determines and declares that the appropriate 
levels of new budget authority and outlays for fiscal year 2003 
for Homeland Security are as follows:
          (1) New budget authority, $37,702,000,000.
          (2) Outlays, $21,860,000,000.

SEC. 103. MAJOR FUNCTIONAL CATEGORIES.

  The Congress determines and declares that the appropriate 
levels of new budget authority and outlays for fiscal years 
2003 through 2007 for each major functional category are:
          (1) National Defense (050):
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $393,831,000,000.
                          (B) Outlays, $375,261,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $401,640,000,000.
                          (B) Outlays, $390,579,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $422,740,000,000.
                          (B) Outlays, $409,696,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $444,243,000,000.
                          (B) Outlays, $425,090,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $466,458,000,000.
                          (B) Outlays, $439,181,000,000.
          (2) International Affairs (150):
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $23,752,000,000.
                          (B) Outlays, $22,343,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $24,683,000,000.
                          (B) Outlays, $22,675,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $25,481,000,000.
                          (B) Outlays, $23,165,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $26,137,000,000.
                          (B) Outlays, $23,769,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $27,043,000,000.
                          (B) Outlays, $24,467,000,000.
          (3) General Science, Space, and Technology (250):
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $22,743,000,000.
                          (B) Outlays, $22,095,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $23,398,000,000.
                          (B) Outlays, $22,798,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $23,917,000,000.
                          (B) Outlays, $23,577,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $24,476,000,000.
                          (B) Outlays, $24,073,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $25,055,000,000.
                          (B) Outlays, $24,667,000,000.
          (4) Energy (270):
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $316,000,000.
                          (B) Outlays, $364,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $157,000,000.
                          (B) Outlays, $129,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $687,000,000.
                          (B) Outlays, $644,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $526,000,000.
                          (B) Outlays, $467,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $532,000,000.
                          (B) Outlays, $454,000,000.
          (5) Natural Resources and Environment (300):
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $29,215,000,000.
                          (B) Outlays, $29,849,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $30,546,000,000.
                          (B) Outlays, $30,356,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $31,449,000,000.
                          (B) Outlays, $30,937,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $30,851,000,000.
                          (B) Outlays, $31,686,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $31,474,000,000.
                          (B) Outlays, $32,038,000,000.
          (6) Agriculture (350):
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $23,641,000,000.
                          (B) Outlays, $24,054,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $22,779,000,000.
                          (B) Outlays, $22,669,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $21,098,000,000.
                          (B) Outlays, $21,089,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $20,231,000,000.
                          (B) Outlays, $20,247,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $20,088,000,000.
                          (B) Outlays, $20,116,000,000.
          (7) Commerce and Housing Credit (370):
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $8,800,000,000.
                          (B) Outlays, $4,985,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $9,274,000,000.
                          (B) Outlays, $4,192,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $8,798,000,000.
                          (B) Outlays, $3,128,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $8,015,000,000.
                          (B) Outlays, $1,910,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $9,405,000,000.
                          (B) Outlays, $2,361,000,000.
          (8) Transportation (400):
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $63,447,000,000.
                          (B) Outlays, $60,646,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $66,950,000,000.
                          (B) Outlays, $59,425,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $67,561,000,000.
                          (B) Outlays, $59,967,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $68,221,000,000.
                          (B) Outlays, $61,282,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $68,897,000,000.
                          (B) Outlays, $63,266,000,000.
          (9) Community and Regional Development (450):
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $14,668,000,000.
                          (B) Outlays, $17,352,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $15,315,000,000.
                          (B) Outlays, $17,961,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $15,515,000,000.
                          (B) Outlays, $17,461,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $15,895,000,000.
                          (B) Outlays, $15,705,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $16,295,000,000.
                          (B) Outlays, $15,548,000,000.
          (10) Education, Training, Employment, and Social 
        Services (500):
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $81,087,000,000.
                          (B) Outlays, $79,104,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $83,291,000,000.
                          (B) Outlays, $81,783,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $86,527,000,000.
                          (B) Outlays, $84,065,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $89,513,000,000.
                          (B) Outlays, $86,400,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $92,784,000,000.
                          (B) Outlays, $89,309,000,000.
          (11) Health (550):
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $223,486,000,000.
                          (B) Outlays, $219,917,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $237,880,000,000.
                          (B) Outlays, $236,608,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $255,767,000,000.
                          (B) Outlays, $253,917,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $274,526,000,000.
                          (B) Outlays, $272,648,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $295,491,000,000.
                          (B) Outlays, $292,985,000,000.
          (12) Medicare (570):
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $237,704,000,000.
                          (B) Outlays, $237,598,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $245,612,000,000.
                          (B) Outlays, $245,856,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $272,903,000,000.
                          (B) Outlays, $272,795,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $292,418,000,000.
                          (B) Outlays, $292,173,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $317,411,000,000.
                          (B) Outlays, $317,667,000,000.
          (13) Income Security (600):
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $322,034,000,000.
                          (B) Outlays, $322,385,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $325,372,000,000.
                          (B) Outlays, $323,791,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $334,538,000,000.
                          (B) Outlays, $332,599,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $344,039,000,000.
                          (B) Outlays, $341,754,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $352,017,000,000.
                          (B) Outlays, $348,019,000,000.
          (14) Social Security (650):
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $14,303,000,000.
                          (B) Outlays, $14,303,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $15,170,000,000.
                          (B) Outlays, $15,170,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $16,063,000,000.
                          (B) Outlays, $16,062,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $16,863,000,000.
                          (B) Outlays, $16,863,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $18,013,000,000.
                          (B) Outlays, $18,012,000,000.
          (15) Veterans Benefits and Services (700):
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $56,858,000,000.
                          (B) Outlays, $56,733,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $59,127,000,000.
                          (B) Outlays, $58,888,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $61,220,000,000.
                          (B) Outlays, $63,473,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $63,401,000,000.
                          (B) Outlays, $63,246,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $65,550,000,000.
                          (B) Outlays, $62,642,000,000.
          (16) Administration of Justice (750):
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $36,948,000,000.
                          (B) Outlays, $39,329,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $39,663,000,000.
                          (B) Outlays, $42,215,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $37,606,000,000.
                          (B) Outlays, $38,196,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $38,880,000,000.
                          (B) Outlays, $38,775,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $39,776,000,000.
                          (B) Outlays, $39,550,000,000.
          (17) General Government (800):
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $17,565,000,000.
                          (B) Outlays, $17,373,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $18,067,000,000.
                          (B) Outlays, $18,193,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $18,426,000,000.
                          (B) Outlays, $18,334,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $18,442,000,000.
                          (B) Outlays, $18,227,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $18,788,000,000.
                          (B) Outlays, $18,546,000,000.
          (18) Net Interest (900):
                  Fiscal year 2003:
                          (A) New budget authority, 
                        $262,520,000,000.
                          (B) Outlays, $262,520,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        $277,326,000,000.
                          (B) Outlays, $277,325,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        $286,887,000,000.
                          (B) Outlays, $286,886,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        $294,598,000,000.
                          (B) Outlays, $294,597,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        $302,442,000,000.
                          (B) Outlays, $302,441,000,000.
          (19) Allowances (920):
                  Fiscal year 2003:
                          (A) New budget authority, 
                        -$689,000,000.
                          (B) Outlays, -$1,791,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        -$917,000,000.
                          (B) Outlays, -$859,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        -$816,000,000.
                          (B) Outlays, -$787,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        -$631,000,000.
                          (B) Outlays, -$609,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        -$696,000,000.
                          (B) Outlays, -$678,000,000.
          (20) Undistributed Offsetting Receipts (950):
                  Fiscal year 2003:
                          (A) New budget authority, 
                        -$48,197,000,000.
                          (B) Outlays, -$48,197,000,000.
                  Fiscal year 2004:
                          (A) New budget authority, 
                        -$56,150,000,000.
                          (B) Outlays, -$56,150,000,000.
                  Fiscal year 2005:
                          (A) New budget authority, 
                        -$57,370,000,000.
                          (B) Outlays, -$57,370,000,000.
                  Fiscal year 2006:
                          (A) New budget authority, 
                        -$51,180,000,000.
                          (B) Outlays, -$51,180,000,000.
                  Fiscal year 2007:
                          (A) New budget authority, 
                        -$53,155,000,000.
                          (B) Outlays, -$53,155,000,000.

                TITLE II--RESERVE AND CONTINGENCY FUNDS

    Subtitle A--Reserve Funds for Legislation Assumed in Aggregates

SEC. 201. RESERVE FUND FOR WAR ON TERRORISM.

  In the House, if the Committee on Appropriations or the 
Committee on Armed Services reports a bill or joint resolution, 
or if an amendment thereto is offered or a conference report 
thereon is submitted, that provides new budget authority (and 
outlays flowing therefrom) for the Department of Defense 
relating to activities to respond to or protect against acts or 
threatened acts of terrorism, the chairman of the Committee on 
the Budget shall make the appropriate revisions to the 
allocations and other levels in this resolution by the amount 
provided by that measure for that purpose, but the total 
adjustment for all measures considered under this section shall 
not exceed $10,000,000,000 in new budget authority for fiscal 
year 2003 and outlays flowing therefrom.

SEC. 202. RESERVE FUND FOR MEDICARE MODERNIZATION AND PRESCRIPTION 
                    DRUGS.

  (a) In General.--In the House, if the Committee on Ways and 
Means or the Committee on Energy and Commerce reports a bill or 
joint resolution, or if an amendment thereto is offered or a 
conference report thereon is submitted, that provides a 
prescription drug benefit and modernizes medicare, and provides 
adjustments to the medicare program on a fee-for-service, 
capitated, or other basis, the chairman of the Committee on the 
Budget may revise the appropriate committee allocations for 
such committees and other appropriate levels in this resolution 
by the amount provided by that measure for that purpose, but 
not to exceed $5,000,000,000 in new budget authority and 
$5,000,000,000 in outlays for fiscal year 2003 and 
$350,000,000,000 in new budget authority and $350,000,000,000 
in outlays for the period of fiscal years 2003 through 2012.
  (b) Application.--After the consideration of any measure for 
which an adjustment is made pursuant to subsection (a), the 
chairman of the Committee on the Budget shall make any further 
appropriate adjustments.

SEC. 203. RESERVE FUND FOR SPECIAL EDUCATION.

  (a) Fiscal Year 2003.--In the House, if the Committee on 
Appropriations reports a bill or joint resolution, or if an 
amendment thereto is offered or a conference report thereon is 
submitted, that provides in excess of $7,529,000,000 in new 
budget authority for fiscal year 2003 for grants to States 
authorized under part B of the Individuals with Disabilities 
Education Act (IDEA), the chairman of the Committee on the 
Budget may revise the appropriate allocations for such 
committee and other appropriate levels in this resolution by 
the amount provided by that measure for that purpose, but not 
to exceed $1,000,000,000 in new budget authority for fiscal 
year 2003 and outlays flowing therefrom.
  (b) Fiscal Years 2004-2007.--In the House, if the Committee 
on Education and the Workforce reports a bill or joint 
resolution, or if an amendment thereto is offered or a 
conference report thereon is submitted, that reauthorizes 
grants to States under part B of the Individuals with 
Disabilities Education Act (IDEA), the chairman of the 
Committee on the Budget may revise the applicable allocations 
of the appropriate committees to accommodate a total budget 
authority and outlay level for such program not in excess of 
the following: $9,587,000,000 in budget authority for fiscal 
year 2004 and outlays flowing therefrom, $10,755,000,000 in 
budget authority for fiscal year 2005 and outlays flowing 
therefrom, $12,047,000,000 in budget authority for fiscal year 
2006 and outlays flowing therefrom, and $13,497,000,000 in 
budget authority for fiscal year 2007 and outlays flowing 
therefrom (assuming changes from current policy levels of the 
following: $1,752,000,000 in new budget authority for fiscal 
year 2004, $2,763,000,000 in new budget authority for fiscal 
year 2005, $3,894,000,000 in new budget authority for fiscal 
year 2006, and $5,180,000,000 in new budget authority for 
fiscal year 2007).

SEC. 204. RESERVE FUND FOR HIGHWAYS AND HIGHWAY SAFETY.

  (a) In General.--In the House, if the Committee on 
Appropriations reports a bill or joint resolution, or if an 
amendment thereto is offered or a conference report thereon is 
submitted, that establishes an obligation limitation in excess 
of $23,864,000,000 for fiscal year 2003 for programs, projects, 
and activities within the highway category (under section 
251(c)(7)(A) of the Balanced Budget and Emergency Deficit 
Control Act of 1985), the chairman of the Committee on the 
Budget may increase the allocation of outlays for such 
committee by the amount of outlays resulting from such excess, 
but--
          (1) only if chairman of the Committee on the Budget 
        determines that the bill or joint resolution, or 
        amendment thereto or conference report thereon, that 
        establishes such obligation limitation provides that 
        the obligation limitation is made available solely for 
        programs, projects, or activities as distributed under 
        section 1102 of the Transportation Equity Act for the 
        21st Century;
          (2) only if the total amount of obligation limitation 
        for programs, projects, or activities distributed by 
        such formula for fiscal year 2003 exceeds 
        $23,864,000,000; and
          (3) does not exceed $1,180,000,000 in outlays for 
        fiscal year 2003.
  (b) Rule of Enforcement.--In the House, section 302(f)(1) of 
the Congressional Budget Act of 1974 shall be deemed to also 
apply to the applicable allocation of outlays in the case of 
any bill or joint resolution that establishes an obligation 
limitation for fiscal year 2003 for programs within the highway 
category, or amendment thereto or conference report thereon.

      Subtitle B--Additional Surpluses Reserved for Debt Reduction

SEC. 211. CONTINGENCY FUND FOR ADDITIONAL SURPLUSES.

  In the House, if after the release of the report pursuant to 
section 202(e)(2) of the Congressional Budget Act of 1974 
entitled the Budget and Economic Outlook: Update (for fiscal 
years 2003 through 2012), the chairman of the Committee on the 
Budget determines, in consultation with the Directors of the 
Congressional Budget Office and of the Office of Management and 
Budget, that the estimated unified surplus for fiscal year 2003 
and for the period of fiscal years 2003 through 2007 exceeds 
the estimated unified surplus for fiscal year 2003 and for that 
period as set forth in the report of the Committee on the 
Budget for this resolution, then the chairman of that committee 
may increase the surplus or reduce the deficit, as applicable, 
and reduce the level of the public debt and debt held by the 
public by the difference between such estimates for that 
period.

          Subtitle C--Contingency Funds for Accounting Changes

SEC. 221. CONTINGENCY FUND FOR ACCRUAL ACCOUNTING.

  In the House, if legislation is enacted that charges Federal 
agencies for the full cost of accrued Federal retirement and 
health benefits and the Committee on Appropriations reports a 
measure that provides new budget authority to carry out that 
legislation, the chairman of the Committee on the Budget may 
revise the section 302(a) allocation for the Committee on 
Appropriations by the amounts provided by that committee in 
that measure for the purpose of carrying out that legislation, 
but such amounts shall not exceed the reduction in mandatory 
budget authority estimated by the Director of the Congressional 
Budget Office to result from that legislation.

SEC. 222. CONTINGENCY FUND FOR RECLASSIFICATION OF STUDENT AID 
                    ACCOUNTS.

  In the House, if a bill or joint resolution is enacted that 
amends the Higher Education Act to make student aid 
administration subject to annual appropriations, the chairman 
of the Committee on the Budget may--
          (1) increase the section 302(a) allocation for the 
        Committee on Appropriations by the amount provided by 
        that measure but not to exceed $797,000,000 in new 
        budget authority for fiscal year 2003; and
          (2) make the appropriate adjustment in the section 
        302(a) allocation for the Committee on Education and 
        the Workforce resulting from the enactment of the bill 
        or joint resolution making the student aid 
        administration subject to annual appropriations.

      Subtitle D--Implementation of Reserve and Contingency Funds

SEC. 231. 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; and
          (2) such chairman may make any other necessary 
        adjustments to such levels to carry out this 
        resolution.
  (d) Special Rule.--In the House, for the purpose of enforcing 
this resolution against consideration of any bill or joint 
resolution, or amendment thereto or conference report thereon, 
for which an adjustment is made under section 202, section 
302(f) of the Congressional Budget Act of 1974 shall apply to 
the appropriate section 302(a) allocations for fiscal years 
2003 through 2012 included in the joint explanatory statement 
of managers accompanying this resolution.

                     TITLE III--BUDGET ENFORCEMENT

SEC. 301. RESTRICTIONS ON ADVANCE APPROPRIATIONS IN THE HOUSE.

  (a) In General.--(1) In the House, except as provided in 
subsection (b), an advance appropriation may not be reported in 
a bill or joint resolution making a general appropriation or 
continuing appropriation, and may not be in order as an 
amendment thereto.
  (2) Managers on the part of the House may not agree to a 
Senate amendment that would violate paragraph (1) unless 
specific authority to agree to the amendment first is given by 
the House by a separate vote with respect thereto.
  (b) Exception.--In the House, an advance appropriation may be 
provided--
          (1) for fiscal year 2004 for programs, projects, 
        activities or accounts identified in the joint 
        explanatory statement of managers accompanying this 
        resolution under the heading ``Accounts Identified for 
        Advance Appropriations'' in an aggregate amount not to 
        exceed $23,178,000,000 in new budget authority; and
          (2) for the Corporation for Public Broadcasting.
  (c) Definition.--In this section, the term ``advance 
appropriation'' means any discretionary new budget authority in 
a bill or joint resolution making general appropriations or 
continuing appropriations for fiscal year 2003 that first 
becomes available for any fiscal year after 2003.

SEC. 302. 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. 303. REPORTING REQUIREMENTS FOR THE CONGRESSIONAL BUDGET OFFICE.

  The report submitted by the Director of the Congressional 
Budget Office on or before February 15 of each year pursuant to 
section 202(e)(1) of the Congressional Budget Act of 1974 shall 
include the following information for the preceding fiscal 
year--
          (1) a comparison of the different impact between 
        forecasted economic variables used to model projections 
        for that fiscal year and what actually happens;
          (2) an identification of the technical factors that 
        contributed to the forecasting inaccuracies for that 
        fiscal year;
          (3) a variance analysis between forecasted and actual 
        budget results for that fiscal year; and
          (4) recommendations on how to improve forecasting 
        accuracies.

       TITLE IV--SENSE OF CONGRESS AND SENSE OF HOUSE PROVISIONS

SEC. 401. COMBATING INFECTIOUS DISEASES.

  (a) Findings.--Congress finds that--
          (1) the United States has historically taken an 
        unparalleled leadership role in providing humanitarian 
        assistance and relief to the world's poorest people;
          (2) that role has included initiatives to expand 
        trade, relieve debt of countries pursuing structural 
        economic reforms, and provide medical technology to 
        improve health and life expectancy around the globe; 
        and
          (3) good governance and continued economic reforms 
        are essential to eliminating poverty, encouraging 
        economic growth, and ensuring stability in developing 
        countries.
  (b) Sense of Congress.--It is the sense of Congress that the 
United States should continue to assist, through expanded 
international trade, debt relief, and medical assistance to 
combat infectious diseases, those countries that reform their 
economies, promote democratic institutions, and respect basic 
human rights.

SEC. 402. ASSET BUILDING FOR THE WORKING POOR.

  (a) Findings.--Congress finds 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 businesses.
  (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. 403. FEDERAL EMPLOYEE PAY.

  (a) Findings.--The House 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 
        2003 includes a 4.1 percent pay raise for military 
        personnel.
  (4) The Office of Management and Budget has requested that 
federal agencies plan their fiscal year 2003 budgets with a 2.6 
percent pay raise for civilian Federal employees.
          (5) In almost every year during the past two 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.--It is the sense of the House 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. 404. SENSE OF THE HOUSE ON MEDICARE+CHOICE REGIONAL DISPARITIES.

  (a) Findings.--The House finds that--
          (1) one of the goals of the Balanced Budget Act of 
        1997 was to expand options for Medicare beneficiaries 
        under the Medicare+Choice program;
          (2) the funding formula in that Act was intended to 
        make these choices available to all Americans; and
          (3) despite attempts by Congress to equalize regional 
        disparities in Medicare+Choice payments in the Balanced 
        Budget Refinement Act of 1999 and the medicare, 
        medicaid, and SCHIP Benefits and Improvement and 
        Protection Act of 2000, rural and other low-payment 
        areas have continued to lag significantly behind their 
        higher-payment counterparts in average adjusted per 
        capita (AAPCC) reimbursements.
  (b) Sense of the House.--It is the sense of the House that if 
the Committee on Ways and Means reports a bill to reform 
medicare, it should apply all new funds directed to the 
Medicare+Choice program to increase funding to counties 
receiving floor or blended rates relative to counties receiving 
the minimum update.

SEC. 405. BORDER SECURITY AND ANTI-TERRORISM.

  It is the sense of the House that this resolution assumes 
$380 million in new budget authority and a corresponding level 
of outlays in functional category 750 (Administration of 
Justice) for the Immigration and Naturalization Service to 
implement a visa tracking system as part of a comprehensive 
plan to protect the United States and its territories from 
threats of terrorist attack.

SEC. 406. PACIFIC NORTHWEST SALMON RECOVERY.

  (a) Findings.--Congress finds that--
          (1) Pacific Salmon are historically, culturally, and 
        economically important to the people of the Northwest;
          (2) the United States Government has negotiated 
        treaties with the Columbia River Indian tribes;
          (3) the National Marine Fisheries Service in December 
        2000 issued a biological opinion on the Federal 
        Columbia River Power System calling for greater efforts 
        by the Federal Government, to satisfy the ESA standards 
        of section 7(a)(2) of the Endangered Species Act; and
          (4) the citizens of the Pacific Northwest are 
        committed to salmon recovery and their hard work in 
        communities throughout the region to advance local 
        solutions deserve Federal assistance.
  (b) Sense of Congress.--It is the sense of Congress that this 
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.

                                  
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