[House Report 107-55]
[From the U.S. Government Publishing Office]



107th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     107-55

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



 
        CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL YEAR 2002

                                _______
                                

                  May 3, 2001.--Ordered to be printed

                                _______
                                

 Mr. Nussle, from the committee on conference, submitted the following

                           CONFERENCE REPORT

                     [To accompany H. Con. Res. 83]

      The committee of conference on the disagreeing votes of 
the two Houses on the amendment of the Senate to the concurrent 
resolution (H. Con. Res. 83), establishing the congressional 
budget for the United States Government for fiscal year 2002, 
revising the congressional budget for the United States 
Government for fiscal year 2001, and setting forth appropriate 
budgetary levels for each of fiscal years 2003 through 2011, 
having met, after full and free conference, have agreed to 
recommend and do recommend to their respective Houses as 
follows:
      That the House recede from its disagreement to the 
amendment of the Senate and agree to the same with an amendment 
as follows:
      In lieu of the matter proposed to be inserted by the 
Senate amendment, insert the following:

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

    (a) Declaration.--Congress determines and declares that the 
concurrent resolution on the budget for fiscal year 2001 is 
revised and replaced and that this resolution is the concurrent 
resolution on the budget for fiscal year 2002 including the 
appropriate budgetary levels for fiscal years 2003 through 2011 
as authorized by section 301 of the Congressional Budget Act of 
1974 (2 U.S.C. 632).
    (b) Table of Contents.--The table of contents for this 
concurrent resolution is as follows:

Sec. 1. Concurrent resolution on the budget for fiscal year 2002.

                 TITLE I--RECOMMENDED LEVELS AND AMOUNTS

Sec. 101. Recommended levels and amounts.
Sec. 102. Major functional categories.
Sec. 103. Reconciliation in the Senate.
Sec. 104. Reconciliation in the House.

               TITLE II--BUDGET ENFORCEMENT AND RULEMAKING

                     Subtitle A--Budget Enforcement

Sec. 201. Restrictions on advance appropriations in the House.
Sec. 202. Restrictions on advance appropriations in the Senate.
Sec. 203. Mechanism for implementing increase of fiscal year 2002 
          discretionary spending limits.
Sec. 204. Compliance with section 13301 of the Budget Enforcement Act of 
          1990. 

                        Subtitle B--Reserve Funds

Sec. 211. Reserve fund for Medicare.
Sec. 212. Reserve fund for Family Opportunity Act.
Sec. 213. Reserve fund for agriculture.
Sec. 214. Reserve fund for additional tax cuts and debt reduction.
Sec. 215. Technical reserve fund for student loans.
Sec. 216. Reserve fund for health insurance for the uninsured.
Sec. 217. Reserve fund for defense in the Senate.
Sec. 218. Strategic reserve fund in the House.

                  Subtitle C--Miscellaneous Provisions

Sec. 221. Application and effect of changes in allocations and 
          aggregates.
Sec. 222. Exercise of rulemaking powers.

         TITLE III--SENSE OF THE SENATE AND CONGRESS PROVISIONS

                     Subtitle A--Sense of the Senate

Sec. 301. Sense of the Senate on conservation.
Sec. 302. Sense of the Senate on aids and other infectious diseases.
Sec. 303. Sense of the Senate on consolidated health centers.
Sec. 304. Funding for Department of Justice programs for State and local 
          law enforcement assistance.
Sec. 305. Sense of the Senate regarding United States Coast Guard fiscal 
          year 2002 funding.
Sec. 306. Strengthening our national food safety infrastructure.
Sec. 307. Sense of the Senate with respect to increasing funds for 
          renewable energy research and development. 

                    Subtitle B--Sense of the Congress

Sec. 311. Asset building for the working poor.
Sec. 312. Federal fire prevention assistance.
Sec. 313. Funding for graduate medical education at children's teaching 
          hospitals. 
Sec. 314. Concurrent retirement and disability benefits to retired 
          members of the Armed Forces.
Sec. 315. Federal employee pay. 
Sec. 316. Sales tax deduction. 

                TITLE I--RECOMMENDED LEVELS AND AMOUNTS

SEC. 101. RECOMMENDED LEVELS AND AMOUNTS.

    The following budgetary levels are appropriate for the 
fiscal years 2001 through 2011:
    (1) Federal revenues.--For purposes of the enforcement of 
this resolution--
            (A) The recommended levels of Federal revenues are 
        as follows:
                    Fiscal year 2001: $1,630,462,000,000.
                    Fiscal year 2002: $1,653,202,000,000.
                    Fiscal year 2003: $1,706,044,000,000.
                    Fiscal year 2004: $1,780,310,000,000.
                    Fiscal year 2005: $1,852,646,000,000.
                    Fiscal year 2006: $1,901,304,000,000.
                    Fiscal year 2007: $1,994,674,000,000.
                    Fiscal year 2008: $2,089,726,000,000.
                    Fiscal year 2009: $2,193,954,000,000.
                    Fiscal year 2010: $2,318,055,000,000.
                    Fiscal year 2011: $2,436,550,000,000.
            (B) The amounts by which the aggregate levels of 
        Federal revenues should be changed are as follows:
                    Fiscal year 2001: $0.
                    Fiscal year 2002: -$50,286,000,000.
                    Fiscal year 2003: -$76,067,000,000.
                    Fiscal year 2004: -$84,025,000,000.
                    Fiscal year 2005: -$97,124,000,000.
                    Fiscal year 2006: -$138,279,000,000.
                    Fiscal year 2007: -$141,081,000,000.
                    Fiscal year 2008: -$153,084,000,000.
                    Fiscal year 2009: -$166,162,000,000.
                    Fiscal year 2010: -$171,247,000,000.
                    Fiscal year 2011: -$191,343,000,000.
    (2) New budget authority.--For purposes of the enforcement 
of this resolution, the appropriate levels of total new budget 
authority are as follows:
                    Fiscal year 2001: $1,653,681,000,000.
                    Fiscal year 2002: $1,525,948,000,000.
                    Fiscal year 2003: $1,668,530,000,000.
                    Fiscal year 2004: $1,733,617,000,000.
                    Fiscal year 2005: $1,814,079,000,000.
                    Fiscal year 2006: $1,866,139,000,000.
                    Fiscal year 2007: $1,945,112,000,000.
                    Fiscal year 2008: $2,025,075,000,000.
                    Fiscal year 2009: $2,102,398,000,000.
                    Fiscal year 2010: $2,186,341,000,000.
                    Fiscal year 2011: $2,277,143,000,000.
    (3) Budget outlays.--For purposes of the enforcement of 
this resolution, the appropriate levels of total budget outlays 
are as follows:
                    Fiscal year 2001: $1,600,529,000,000.
                    Fiscal year 2002: $1,491,841,000,000.
                    Fiscal year 2003: $1,641,515,000,000.
                    Fiscal year 2004: $1,709,251,000,000.
                    Fiscal year 2005: $1,790,389,000,000.
                    Fiscal year 2006: $1,837,846,000,000.
                    Fiscal year 2007: $1,912,602,000,000.
                    Fiscal year 2008: $1,994,838,000,000.
                    Fiscal year 2009: $2,071,497,000,000.
                    Fiscal year 2010: $2,154,203,000,000.
                    Fiscal year 2011: $2,243,394,000,000.
    (4) Surpluses.--For purposes of the enforcement of this 
resolution, the amounts of the surpluses are as follows:
                    Fiscal year 2001: $29,933,000,000.
                    Fiscal year 2002: $161,361,000,000.
                    Fiscal year 2003: $64,529,000,000.
                    Fiscal year 2004: $71,059,000,000.
                    Fiscal year 2005: $62,257,000,000.
                    Fiscal year 2006: $63,458,000,000.
                    Fiscal year 2007: $82,072,000,000.
                    Fiscal year 2008: $94,888,000,000.
                    Fiscal year 2009: $122,457,000,000.
                    Fiscal year 2010: $163,852,000,000.
                    Fiscal year 2011: $193,156,000,000.
    (5) Public debt.--The appropriate levels of the public debt 
are as follows:
                    Fiscal year 2001: $5,660,699,000,000.
                    Fiscal year 2002: $5,603,812,000,000.
                    Fiscal year 2003: $5,654,952,000,000.
                    Fiscal year 2004: $5,700,089,000,000.
                    Fiscal year 2005: $5,751,561,000,000.
                    Fiscal year 2006: $5,803,295,000,000.
                    Fiscal year 2007: $5,832,676,000,000.
                    Fiscal year 2008: $5,847,714,000,000.
                    Fiscal year 2009: $5,988,315,000,000.
                    Fiscal year 2010: $6,343,661,000,000.
                    Fiscal year 2011: $6,720,963,000,000.
    (6) Debt held by the public.--The appropriate levels of the 
debt held by the public are as follows:
                    Fiscal year 2001: $3,243,211,000,000.
                    Fiscal year 2002: $2,924,234,000,000.
                    Fiscal year 2003: $2,691,176,000,000.
                    Fiscal year 2004: $2,437,771,000,000.
                    Fiscal year 2005: $2,170,550,000,000.
                    Fiscal year 2006: $1,882,764,000,000.
                    Fiscal year 2007: $1,555,637,000,000.
                    Fiscal year 2008: $1,194,633,000,000.
                    Fiscal year 2009: $939,000,000,000.
                    Fiscal year 2010: $878,000,000,000.
                    Fiscal year 2011: $818,000,000,000.
      (7) Social security.--
            (A) Social security revenues.--For purposes of 
        Senate enforcement under section 311 of the 
        Congressional Budget Act of 1974 (2 U.S.C. 642), the 
        amounts of revenues of the Federal Old-Age and 
        Survivors Insurance Trust Fund and the Federal 
        Disability Insurance Trust Fund are as follows:
                    Fiscal year 2001: $504,109,000,000.
                    Fiscal year 2002: $532,308,000,000.
                    Fiscal year 2003: $560,938,000,000.
                    Fiscal year 2004: $588,674,000,000.
                    Fiscal year 2005: $620,060,000,000.
                    Fiscal year 2006: $649,221,000,000.
                    Fiscal year 2007: $679,935,000,000.
                    Fiscal year 2008: $712,454,000,000.
                    Fiscal year 2009: $746,439,000,000.
                    Fiscal year 2010: $782,029,000,000.
                    Fiscal year 2011: $819,185,000,000.
            (B) Social security outlays.--For purposes of 
        Senate enforcement under section 311 of the 
        Congressional Budget Act of 1974 (2 U.S.C. 642), the 
        amounts of outlays of the Federal Old-Age and Survivors 
        Insurance Trust Fund and the Federal Disability 
        Insurance Trust Fund are as follows:
                    Fiscal year 2001: $343,562,000,000.
                    Fiscal year 2002: $356,646,000,000.
                    Fiscal year 2003: $369,521,000,000.
                    Fiscal year 2004: $382,488,000,000.
                    Fiscal year 2005: $394,844,000,000.
                    Fiscal year 2006: $407,020,000,000.
                    Fiscal year 2007: $419,285,000,000.
                    Fiscal year 2008: $432,293,000,000.
                    Fiscal year 2009: $448,317,000,000.
                    Fiscal year 2010: $465,780,000,000.
                    Fiscal year 2011: $483,963,000,000.
            (C) Social security administrative expenses.--In 
        the Senate, the amounts of new budget authority and 
        budget outlays of the Federal Old-Age and Survivors 
        Insurance Trust Fund and the Federal Disability 
        Insurance Trust Fund for administrative expenses are as 
        follows:
                    Fiscal year 2001:
                            (A) New budget authority, 
                        $3,431,000,000.
                            (B) Outlays, $3,371,000,000.
                    Fiscal year 2002:
                            (A) New budget authority, 
                        $3,579,000,000.
                            (B) Outlays, $3,525,000,000.
                    Fiscal year 2003:
                            (A) New budget authority, 
                        $3,695,000,000.
                            (B) Outlays, $3,655,000,000.
                    Fiscal year 2004:
                            (A) New budget authority, 
                        $3,819,000,000.
                            (B) Outlays, $3,763,000,000.
                    Fiscal year 2005:
                            (A) New budget authority, 
                        $3,939,000,000.
                            (B) Outlays, $3,881,000,000.
                    Fiscal year 2006:
                            (A) New budget authority, 
                        $4,064,000,000.
                            (B) Outlays, $4,004,000,000.
                    Fiscal year 2007:
                            (A) New budget authority, 
                        $4,194,000,000.
                            (B) Outlays, $4,132,000,000.
                    Fiscal year 2008:
                            (A) New budget authority, 
                        $4,331,000,000.
                            (B) Outlays, $4,267,000,000.
                    Fiscal year 2009:
                            (A) New budget authority, 
                        $4,471,000,000.
                            (B) Outlays, $4,405,000,000.
                    Fiscal year 2010:
                            (A) New budget authority, 
                        $4,619,000,000.
                            (B) Outlays, $4,551,000,000.
                    Fiscal year 2011:
                            (A) New budget authority, 
                        $4,773,000,000.
                            (B) Outlays, $4,702,000,000.

SEC. 102. MAJOR FUNCTIONAL CATEGORIES.

    Congress determines and declares that the appropriate 
levels of new budget authority, budget outlays, new direct loan 
obligations, and new primary loan guarantee commitments for 
fiscal years 2002 through 2011 for each major functional 
category are:
    (1) National Defense (050):
            Fiscal year 2001:
                    (A) New budget authority, $316,873,000,000.
                    (B) Outlays, $302,371,000,000.
            Fiscal year 2002:
                    (A) New budget authority, $324,832,000,000.
                    (B) Outlays, $319,137,000,000.
            Fiscal year 2003:
                    (A) New budget authority, $333,646,000,000.
                    (B) Outlays, $326,643,000,000.
            Fiscal year 2004:
                    (A) New budget authority, $342,294,000,000.
                    (B) Outlays, $335,184,000,000.
            Fiscal year 2005:
                    (A) New budget authority, $350,876,000,000.
                    (B) Outlays, $347,073,000,000.
            Fiscal year 2006:
                    (A) New budget authority, $359,807,000,000.
                    (B) Outlays, $353,482,000,000.
            Fiscal year 2007:
                    (A) New budget authority, $369,023,000,000.
                    (B) Outlays, $359,774,000,000.
            Fiscal year 2008:
                    (A) New budget authority, $378,505,000,000.
                    (B) Outlays, $372,416,000,000.
            Fiscal year 2009:
                    (A) New budget authority, $388,323,000,000.
                    (B) Outlays, $382,242,000,000.
            Fiscal year 2010:
                    (A) New budget authority, $398,338,000,000.
                    (B) Outlays, $392,227,000,000.
            Fiscal year 2011:
                    (A) New budget authority, $408,821,000,000.
                    (B) Outlays, $402,579,000,000.
    (2) International Affairs (150):
            Fiscal year 2001:
                    (A) New budget authority, $22,424,000,000.
                    (B) Outlays, $19,670,000,000.
            Fiscal year 2002:
                    (A) New budget authority, $23,214,000,000.
                    (B) Outlays, $19,082,000,000.
            Fiscal year 2003:
                    (A) New budget authority, $23,750,000,000.
                    (B) Outlays, $19,554,000,000.
            Fiscal year 2004:
                    (A) New budget authority, $24,214,000,000.
                    (B) Outlays, $20,164,000,000.
            Fiscal year 2005:
                    (A) New budget authority, $24,911,000,000.
                    (B) Outlays, $20,431,000,000.
            Fiscal year 2006:
                    (A) New budget authority, $25,504,000,000.
                    (B) Outlays, $20,900,000,000.
            Fiscal year 2007:
                    (A) New budget authority, $26,107,000,000.
                    (B) Outlays, $21,494,000,000.
            Fiscal year 2008:
                    (A) New budget authority, $26,482,000,000.
                    (B) Outlays, $22,031,000,000.
            Fiscal year 2009:
                    (A) New budget authority, $26,937,000,000.
                    (B) Outlays, $22,650,000,000.
            Fiscal year 2010:
                    (A) New budget authority, $27,458,000,000.
                    (B) Outlays, $23,235,000,000.
            Fiscal year 2011:
                    (A) New budget authority, $28,065,000,000.
                    (B) Outlays, $23,766,000,000.
    (3) General Science, Space, and Technology (250):
            Fiscal year 2001:
                    (A) New budget authority, $21,043,000,000.
                    (B) Outlays, $19,612,000,000.
            Fiscal year 2002:
                    (A) New budget authority, $21,583,000,000.
                    (B) Outlays, $20,725,000,000.
            Fiscal year 2003:
                    (A) New budget authority, $22,055,000,000.
                    (B) Outlays, $21,361,000,000.
            Fiscal year 2004:
                    (A) New budget authority, $22,379,000,000.
                    (B) Outlays, $21,945,000,000.
            Fiscal year 2005:
                    (A) New budget authority, $22,839,000,000.
                    (B) Outlays, $22,429,000,000.
            Fiscal year 2006:
                    (A) New budget authority, $23,323,000,000.
                    (B) Outlays, $22,847,000,000.
            Fiscal year 2007:
                    (A) New budget authority, $23,812,000,000.
                    (B) Outlays, $23,280,000,000.
            Fiscal year 2008:
                    (A) New budget authority, $24,303,000,000.
                    (B) Outlays, $23,743,000,000.
            Fiscal year 2009:
                    (A) New budget authority, $24,816,000,000.
                    (B) Outlays, $24,239,000,000.
            Fiscal year 2010:
                    (A) New budget authority, $25,335,000,000.
                    (B) Outlays, $24,749,000,000.
            Fiscal year 2011:
                    (A) New budget authority, $25,879,000,000
                    (B) Outlays, $25,274,000,000.
    (4) Energy (270):
            Fiscal year 2001:
                    (A) New budget authority, $1,225,000,000.
                    (B) Outlays, -$115,000,000.
            Fiscal year 2002:
                    (A) New budget authority, $1,360,000,000.
                    (B) Outlays, -$19,000,000.
            Fiscal year 2003:
                    (A) New budget authority, $1,328,000,000.
                    (B) Outlays, -$72,000,000.
            Fiscal year 2004:
                    (A) New budget authority, $1,309,000,000.
                    (B) Outlays, -$120,000,000.
            Fiscal year 2005:
                    (A) New budget authority, $1,254,000,000.
                    (B) Outlays, -$91,000,000.
            Fiscal year 2006:
                    (A) New budget authority, $1,336,000,000.
                    (B) Outlays, -$3,000,000.
            Fiscal year 2007:
                    (A) New budget authority, $1,411,000,000.
                    (B) Outlays, $71,000,000.
            Fiscal year 2008:
                    (A) New budget authority, $1,882,000,000.
                    (B) Outlays, $440,000,000.
            Fiscal year 2009:
                    (A) New budget authority, $1,998,000,000.
                    (B) Outlays, $579,000,000.
            Fiscal year 2010:
                    (A) New budget authority, $2,021,000,000.
                    (B) Outlays, $703,000,000.
            Fiscal year 2011:
                    (A) New budget authority, $1,990,000,000.
                    (B) Outlays, $691,000,000.
    (5) Natural Resources and Environment (300):
            Fiscal year 2001:
                    (A) New budget authority, $28,833,000,000.
                    (B) Outlays, $26,361,000,000.
            Fiscal year 2002:
                    (A) New budget authority, $30,381,000,000.
                    (B) Outlays, $28,652,000,000.
            Fiscal year 2003:
                    (A) New budget authority, $31,263,000,000.
                    (B) Outlays, $30,368,000,000.
            Fiscal year 2004:
                    (A) New budget authority, $32,249,000,000.
                    (B) Outlays, $31,506,000,000.
            Fiscal year 2005:
                    (A) New budget authority, $33,091,000,000.
                    (B) Outlays, $32,365,000,000.
            Fiscal year 2006:
                    (A) New budget authority, $33,965,000,000.
                    (B) Outlays, $33,281,000,000.
            Fiscal year 2007:
                    (A) New budget authority, $34,767,000,000.
                    (B) Outlays, $34,126,000,000.
            Fiscal year 2008:
                    (A) New budget authority, $35,691,000,000.
                    (B) Outlays, $34,903,000,000.
            Fiscal year 2009:
                    (A) New budget authority, $37,064,000,000.
                    (B) Outlays, $36,194,000,000.
            Fiscal year 2010:
                    (A) New budget authority, $38,111,000,000.
                    (B) Outlays, $37,190,000,000.
            Fiscal year 2011:
                    (A) New budget authority, $39,137,000,000.
                    (B) Outlays, $38,190,000,000.
    (6) Agriculture (350):
            Fiscal year 2001:
                    (A) New budget authority, $31,790,000,000.
                    (B) Outlays, $29,154,000,000.
            Fiscal year 2002:
                    (A) New budget authority, $26,265,000,000.
                    (B) Outlays, $24,593,000,000.
            Fiscal year 2003:
                    (A) New budget authority, $26,507,000,000.
                    (B) Outlays, $24,924,000,000.
            Fiscal year 2004:
                    (A) New budget authority, $26,562,000,000.
                    (B) Outlays, $25,120,000,000.
            Fiscal year 2005:
                    (A) New budget authority, $26,406,000,000.
                    (B) Outlays, $24,915,000,000.
            Fiscal year 2006:
                    (A) New budget authority, $25,452,000,000.
                    (B) Outlays, $23,853,000,000.
            Fiscal year 2007:
                    (A) New budget authority, $24,083,000,000.
                    (B) Outlays, $22,509,000,000.
            Fiscal year 2008:
                    (A) New budget authority, $22,723,000,000.
                    (B) Outlays, $21,134,000,000.
            Fiscal year 2009:
                    (A) New budget authority, $21,921,000,000.
                    (B) Outlays, $20,441,000,000.
            Fiscal year 2010:
                    (A) New budget authority, $21,553,000,000.
                    (B) Outlays, $20,174,000,000.
            Fiscal year 2011:
                    (A) New budget authority, $21,703,000,000.
                    (B) Outlays, $20,319,000,000.
    (7) Commerce and Housing Credit (370):
            Fiscal year 2001:
                    (A) New budget authority, $2,516,000,000.
                    (B) Outlays, -$771,000,000.
            Fiscal year 2002:
                    (A) New budget authority, $10,174,000,000.
                    (B) Outlays, $6,587,000,000.
            Fiscal year 2003:
                    (A) New budget authority, $11,394,000,000.
                    (B) Outlays, $5,952,000,000.
            Fiscal year 2004:
                    (A) New budget authority, $16,042,000,000.
                    (B) Outlays, $11,733,000,000.
            Fiscal year 2005:
                    (A) New budget authority, $16,163,000,000.
                    (B) Outlays, $12,387,000,000.
            Fiscal year 2006:
                    (A) New budget authority, $16,138,000,000.
                    (B) Outlays, $11,790,000,000.
            Fiscal year 2007:
                    (A) New budget authority, $16,245,000,000.
                    (B) Outlays, $12,061,000,000.
            Fiscal year 2008:
                    (A) New budget authority, $16,404,000,000.
                    (B) Outlays, $11,894,000,000.
            Fiscal year 2009:
                    (A) New budget authority, $16,479,000,000.
                    (B) Outlays, $11,934,000,000.
            Fiscal year 2010:
                    (A) New budget authority, $16,597,000,000.
                    (B) Outlays, $11,889,000,000.
            Fiscal year 2011:
                    (A) New budget authority, $16,714,000,000.
                    (B) Outlays, $11,915,000,000.
    (8) Transportation (400):
            Fiscal year 2001:
                    (A) New budget authority, $62,130,000,000.
                    (B) Outlays, $51,681,000,000.
            Fiscal year 2002:
                    (A) New budget authority, $64,965,000,000.
                    (B) Outlays, $56,167,000,000.
            Fiscal year 2003:
                    (A) New budget authority, $62,392,000,000.
                    (B) Outlays, $60,521,000,000.
            Fiscal year 2004:
                    (A) New budget authority, $64,154,000,000.
                    (B) Outlays, $62,662,000,000.
            Fiscal year 2005:
                    (A) New budget authority, $65,907,000,000.
                    (B) Outlays, $64,225,000,000.
            Fiscal year 2006:
                    (A) New budget authority, $67,794,000,000.
                    (B) Outlays, $65,702,000,000.
            Fiscal year 2007:
                    (A) New budget authority, $69,637,000,000.
                    (B) Outlays, $66,577,000,000.
            Fiscal year 2008:
                    (A) New budget authority, $71,490,000,000.
                    (B) Outlays, $67,775,000,000.
            Fiscal year 2009:
                    (A) New budget authority, $73,377,000,000.
                    (B) Outlays, $69,221,000,000.
            Fiscal year 2010:
                    (A) New budget authority, $76,412,000,000.
                    (B) Outlays, $70,588,000,000.
            Fiscal year 2011:
                    (A) New budget authority, $78,652,000,000.
                    (B) Outlays, $72,183,000,000.
    (9) Community and Regional Development (450):
            Fiscal year 2001:
                    (A) New budget authority, $11,225,000,000.
                    (B) Outlays, $11,366,000,000.
            Fiscal year 2002:
                    (A) New budget authority, $11,892,000,000.
                    (B) Outlays, $11,730,000,000.
            Fiscal year 2003:
                    (A) New budget authority, $12,067,000,000.
                    (B) Outlays, $11,731,000,000.
            Fiscal year 2004:
                    (A) New budget authority, $12,350,000,000.
                    (B) Outlays, $11,967,000,000.
            Fiscal year 2005:
                    (A) New budget authority, $12,664,000,000.
                    (B) Outlays, $11,913,000,000.
            Fiscal year 2006:
                    (A) New budget authority, $12,933,000,000.
                    (B) Outlays, $11,936,000,000.
            Fiscal year 2007:
                    (A) New budget authority, $13,198,000,000.
                    (B) Outlays, $12,181,000,000.
            Fiscal year 2008:
                    (A) New budget authority, $13,476,000,000.
                    (B) Outlays, $12,444,000,000.
            Fiscal year 2009:
                    (A) New budget authority, $13,759,000,000.
                    (B) Outlays, $12,696,000,000.
            Fiscal year 2010:
                    (A) New budget authority, $14,048,000,000.
                    (B) Outlays, $12,962,000,000.
            Fiscal year 2011:
                    (A) New budget authority, $14,340,000,000.
                    (B) Outlays, $13,233,000,000.
    (10) Education, Training, Employment, and Social Services 
(500):
            Fiscal year 2001:
                    (A) New budget authority, $76,951,000,000.
                    (B) Outlays, $69,850,000,000.
            Fiscal year 2002:
                    (A) New budget authority, $81,234,000,000.
                    (B) Outlays, $76,742,000,000.
            Fiscal year 2003:
                    (A) New budget authority, $82,805,000,000.
                    (B) Outlays, $81,479,000,000.
            Fiscal year 2004:
                    (A) New budget authority, $84,386,000,000.
                    (B) Outlays, $83,574,000,000.
            Fiscal year 2005:
                    (A) New budget authority, $87,122,000.000.
                    (B) Outlays, $85,819,000,000.
            Fiscal year 2006:
                    (A) New budget authority, $89,233,000,000.
                    (B) Outlays, $87,924,000,000.
            Fiscal year 2007:
                    (A) New budget authority, $91,327,000,000.
                    (B) Outlays, $89,955,000,000.
            Fiscal year 2008:
                    (A) New budget authority, $93,501,000,000.
                    (B) Outlays, $92,115,000,000.
            Fiscal year 2009:
                    (A) New budget authority, $95,780,000,000.
                    (B) Outlays, $94,341,000,000.
            Fiscal year 2010:
                    (A) New budget authority, $98,113,000,000.
                    (B) Outlays, $96,654,000,000.
            Fiscal year 2011:
                    (A) New budget authority, $100,517,000,000.
                    (B) Outlays, $99,017,000,000.
    (11) Health (550):
            Fiscal year 2001:
                    (A) New budget authority, $180,104,000,000.
                    (B) Outlays, $173,012,000,000.
            Fiscal year 2002:
                    (A) New budget authority, $198,775,000,000.
                    (B) Outlays, $196,668,000,000.
            Fiscal year 2003:
                    (A) New budget authority, $221,150,000,000.
                    (B) Outlays, $219,770,000,000.
            Fiscal year 2004:
                    (A) New budget authority, $235,474,000,000.
                    (B) Outlays, $234,672,000,000.
            Fiscal year 2005:
                    (A) New budget authority, $242,661,000,000.
                    (B) Outlays, $241,084,000,000.
            Fiscal year 2006:
                    (A) New budget authority, $259,125,000,000.
                    (B) Outlays, $257,594,000,000.
            Fiscal year 2007:
                    (A) New budget authority, $278,882,000,000.
                    (B) Outlays, $276,575,000,000.
            Fiscal year 2008:
                    (A) New budget authority, $299,116,000,000.
                    (B) Outlays, $297,091,000,000.
            Fiscal year 2009:
                    (A) New budget authority, $320,791,000,000.
                    (B) Outlays, $319,017,000,000.
            Fiscal year 2010:
                    (A) New budget authority, $345,380,000,000.
                    (B) Outlays, $343,729,000,000.
            Fiscal year 2011:
                    (A) New budget authority, $372,407,000,000.
                    (B) Outlays, $370,945,000,000.
    (12) Medicare (570):
            Fiscal year 2001:
                    (A) New budget authority, $217,531,000,000.
                    (B) Outlays, $217,708,000,000.
            Fiscal year 2002:
                    (A) New budget authority, $229,179,000,000.
                    (B) Outlays, $229,121,000,000.
            Fiscal year 2003:
                    (A) New budget authority, $244,838,000,000.
                    (B) Outlays, $244,596,000,000.
            Fiscal year 2004:
                    (A) New budget authority, $271,378,000,000.
                    (B) Outlays, $271,579,000,000.
            Fiscal year 2005:
                    (A) New budget authority, $306,158,000,000.
                    (B) Outlays, $306,079,000,000.
            Fiscal year 2006:
                    (A) New budget authority, $326,564,000,000.
                    (B) Outlays, $326,298,000,000.
            Fiscal year 2007:
                    (A) New budget authority, $363,686,000,000.
                    (B) Outlays, $363,901,000,000.
            Fiscal year 2008:
                    (A) New budget authority, $393,686,000,000.
                    (B) Outlays, $393,578,000,000.
            Fiscal year 2009:
                    (A) New budget authority, $424,278,000,000.
                    (B) Outlays, $423,993,000,000.
            Fiscal year 2010:
                    (A) New budget authority, $458,957,000,000.
                    (B) Outlays, $459,194,000,000.
            Fiscal year 2011:
                    (A) New budget authority, $497,379,000,000.
                    (B) Outlays, $497,366,000,000.
    (13) Income Security (600):
            Fiscal year 2001:
                    (A) New budget authority, $255,942,000,000.
                    (B) Outlays, $256,932,000,000.
            Fiscal year 2002:
                    (A) New budget authority, $273,840,000,000.
                    (B) Outlays, $272,122,000,000.
            Fiscal year 2003:
                    (A) New budget authority, $283,864,000,000.
                    (B) Outlays, $282,611,000,000.
            Fiscal year 2004:
                    (A) New budget authority, $295,030,000,000.
                    (B) Outlays, $293,420,000,000.
            Fiscal year 2005:
                    (A) New budget authority, $309,192,000,000.
                    (B) Outlays, $307,667,000,000.
            Fiscal year 2006:
                    (A) New budget authority, $316,761,000,000.
                    (B) Outlays, $315,312,000,000.
            Fiscal year 2007:
                    (A) New budget authority, $324,056,000,000.
                    (B) Outlays, $322,627,000,000.
            Fiscal year 2008:
                    (A) New budget authority, $338,278,000,000.
                    (B) Outlays, $336,950,000,000.
            Fiscal year 2009:
                    (A) New budget authority, $349,561,000,000.
                    (B) Outlays, $347,987,000,000.
            Fiscal year 2010:
                    (A) New budget authority, $360,308,000,000.
                    (B) Outlays, $358,600,000,000.
            Fiscal year 2011:
                    (A) New budget authority, $371,593,000,000.
                    (B) Outlays, $369,419,000,000.
    (14) Social Security (650):
            Fiscal year 2001:
                    (A) New budget authority, $9,805,000,000.
                    (B) Outlays, $9,805,000,000.
            Fiscal year 2002:
                    (A) New budget authority, $11,004,000,000.
                    (B) Outlays, $11,003,000,000.
            Fiscal year 2003:
                    (A) New budget authority, $11,733,000,000.
                    (B) Outlays, $11,733,000,000.
            Fiscal year 2004:
                    (A) New budget authority, $12,496,000,000.
                    (B) Outlays, $12,496,000,000.
            Fiscal year 2005:
                    (A) New budget authority, $13,308,000,000.
                    (B) Outlays, $13,308,000,000.
            Fiscal year 2006:
                    (A) New budget authority, $14,207,000,000.
                    (B) Outlays, $14,207,000,000.
            Fiscal year 2007:
                    (A) New budget authority, $15,168,000,000.
                    (B) Outlays, $15,168,000,000.
            Fiscal year 2008:
                    (A) New budget authority, $16,241,000,000.
                    (B) Outlays, $16,241,000,000.
            Fiscal year 2009:
                    (A) New budget authority, $17,483,000,000.
                    (B) Outlays, $17,483,000,000.
            Fiscal year 2010:
                    (A) New budget authority, $18,878,000,000.
                    (B) Outlays, $18,878,000,000.
            Fiscal year 2011:
                    (A) New budget authority, $20,388,000,000.
                    (B) Outlays, $20,388,000,000.
    (15) Veterans Benefits and Services (700):
            Fiscal year 2001:
                    (A) New budget authority, $46,675,000,000.
                    (B) Outlays, $45,926,000,000.
            Fiscal year 2002:
                    (A) New budget authority, $51,512,000,000.
                    (B) Outlays, $50,921,000,000.
            Fiscal year 2003:
                    (A) New budget authority, $53,801,000,000.
                    (B) Outlays, $53,408,000,000.
            Fiscal year 2004:
                    (A) New budget authority, $56,161,000,000.
                    (B) Outlays, $55,744,000,000.
            Fiscal year 2005:
                    (A) New budget authority, $60,317,000,000.
                    (B) Outlays, $59,847,000,000.
            Fiscal year 2006:
                    (A) New budget authority, $59,863,000,000.
                    (B) Outlays, $59,368,000,000.
            Fiscal year 2007:
                    (A) New budget authority, $59,345,000,000.
                    (B) Outlays, $58,853,000,000.
            Fiscal year 2008:
                    (A) New budget authority, $63,407,000,000.
                    (B) Outlays, $62,971,000,000.
            Fiscal year 2009:
                    (A) New budget authority, $64,981,000,000.
                    (B) Outlays, $64,570,000,000.
            Fiscal year 2010:
                    (A) New budget authority, $66,973,000,000.
                    (B) Outlays, $66,555,000,000.
            Fiscal year 2011:
                    (A) New budget authority, $69,063,000,000.
                    (B) Outlays, $68,632,000,000.
    (16) Administration of Justice (750):
            Fiscal year 2001:
                    (A) New budget authority, $30,577,000,000.
                    (B) Outlays, $30,003,000,000.
            Fiscal year 2002:
                    (A) New budget authority, $32,431,000,000.
                    (B) Outlays, $31,436,000,000.
            Fiscal year 2003:
                    (A) New budget authority, $32,545,000,000.
                    (B) Outlays, $32,809,000,000.
            Fiscal year 2004:
                    (A) New budget authority, $35,330,000,000.
                    (B) Outlays, $35,543,000,000.
            Fiscal year 2005:
                    (A) New budget authority, $36,420,000,000.
                    (B) Outlays, $36,347,000,000.
            Fiscal year 2006:
                    (A) New budget authority, $37,466,000,000.
                    (B) Outlays, $37,036,000,000.
            Fiscal year 2007:
                    (A) New budget authority, $38,543,000,000.
                    (B) Outlays, $38,013,000,000.
            Fiscal year 2008:
                    (A) New budget authority, $39,665,000,000.
                    (B) Outlays, $39,152,000,000.
            Fiscal year 2009:
                    (A) New budget authority, $40,822,000,000.
                    (B) Outlays, $40,292,000,000.
            Fiscal year 2010:
                    (A) New budget authority, $42,021,000,000.
                    (B) Outlays, $41,483,000,000.
            Fiscal year 2011:
                    (A) New budget authority, $43,284,000,000.
                    (B) Outlays, $42,728,000,000.
    (17) General Government (800):
            Fiscal year 2001:
                    (A) New budget authority, $16,307,000,000.
                    (B) Outlays, $16,065,000,000.
            Fiscal year 2002:
                    (A) New budget authority, $16,496,000,000.
                    (B) Outlays, $16,193,000,000.
            Fiscal year 2003:
                    (A) New budget authority, $16,651,000,000.
                    (B) Outlays, $16,493,000,000.
            Fiscal year 2004:
                    (A) New budget authority, $17,082,000,000.
                    (B) Outlays, $16,978,000,000.
            Fiscal year 2005:
                    (A) New budget authority, $17,560,000,000.
                    (B) Outlays, $17,201,000,000.
            Fiscal year 2006:
                    (A) New budget authority, $18,068,000,000.
                    (B) Outlays, $17,641,000,000.
            Fiscal year 2007:
                    (A) New budget authority, $18,609,000,000.
                    (B) Outlays, $18,144,000,000.
            Fiscal year 2008:
                    (A) New budget authority, $18,791,000,000.
                    (B) Outlays, $18,445,000,000.
            Fiscal year 2009:
                    (A) New budget authority, $19,377,000,000.
                    (B) Outlays, $18,882,000,000.
            Fiscal year 2010:
                    (A) New budget authority, $19,968,000,000.
                    (B) Outlays, $19,437,000,000.
            Fiscal year 2011:
                    (A) New budget authority, $20,599,000,000.
                    (B) Outlays, $20,048,000,000.
    (18) Net Interest (900):
            Fiscal year 2001:
                    (A) New budget authority, $275,467,000,000.
                    (B) Outlays, $275,467,000,000.
            Fiscal year 2002:
                    (A) New budget authority, $259,162,000,000.
                    (B) Outlays, $259,162,000,000.
            Fiscal year 2003:
                    (A) New budget authority, $252,364,000,000.
                    (B) Outlays, $252,364,000,000.
            Fiscal year 2004:
                    (A) New budget authority, $247,310,000,000.
                    (B) Outlays, $247,310,000,000.
            Fiscal year 2005:
                    (A) New budget authority, $240,115,000,000.
                    (B) Outlays, $240,115,000,000.
            Fiscal year 2006:
                    (A) New budget authority, $235,642,000,000.
                    (B) Outlays, $235,642,000,000.
            Fiscal year 2007:
                    (A) New budget authority, $232,136,000,000.
                    (B) Outlays, $232,136,000,000.
            Fiscal year 2008:
                    (A) New budget authority, $227,484,000,000.
                    (B) Outlays, $227,484,000,000.
            Fiscal year 2009:
                    (A) New budget authority, $221,933,000,000.
                    (B) Outlays, $221,933,000,000.
            Fiscal year 2010:
                    (A) New budget authority, $214,899,000,000.
                    (B) Outlays, $214,899,000,000.
            Fiscal year 2011:
                    (A) New budget authority, $207,328,000,000.
                    (B) Outlays, $207,328,000,000.
    (19) Allowances (920):
            Fiscal year 2001:
                    (A) New budget authority, $84,528,000,000.
                    (B) Outlays, $84,697,000,000.
            Fiscal year 2002:
                    (A) New budget authority, 
                -$103,548,000,000.
                    (B) Outlays, -$99,379,000,000.
            Fiscal year 2003:
                    (A) New budget authority, -$6,115,000,000.
                    (B) Outlays, -$5,222,000,000.
            Fiscal year 2004:
                    (A) New budget authority, -$6,268,000,000.
                    (B) Outlays, -$5,912,000,000.
            Fiscal year 2005:
                    (A) New budget authority, -$6,423,000,000.
                    (B) Outlays, -$6,263,000,000.
            Fiscal year 2006:
                    (A) New budget authority, -$6,580,000,000.
                    (B) Outlays, -$6,503,000,000.
            Fiscal year 2007:
                    (A) New budget authority, -$6,744,000,000.
                    (B) Outlays, -$6,665,000,000.
            Fiscal year 2008:
                    (A) New budget authority, -$6,908,000,000.
                    (B) Outlays, -$6,828,000,000.
            Fiscal year 2009:
                    (A) New budget authority, -$7,079,000,000.
                    (B) Outlays, -$6,994,000,000.
            Fiscal year 2010:
                    (A) New budget authority, -$7,251,000,000.
                    (B) Outlays, -$7,165,000,000.
            Fiscal year 2011:
                    (A) New budget authority, -$7,429,000,000.
                    (B) Outlays, -$7,340,000,000.
    (20) Undistributed Offsetting Receipts (950):
            Fiscal year 2001:
                    (A) New budget authority, -$38,265,000,000.
                    (B) Outlays, -$38,265,000,000.
            Fiscal year 2002:
                    (A) New budget authority, -$38,803,000,000.
                    (B) Outlays, -$38,803,000,000.
            Fiscal year 2003:
                    (A) New budget authority, -$49,508,000,000.
                    (B) Outlays, -$49,508,000,000.
            Fiscal year 2004:
                    (A) New budget authority, -$56,315,000,000.
                    (B) Outlays, -$56,315,000,000.
            Fiscal year 2005:
                    (A) New budget authority, -$46,463,000,000.
                    (B) Outlays, -$46,463,000,000.
            Fiscal year 2006:
                    (A) New budget authority, -$50,461,000,000.
                    (B) Outlays, -$50,461,000,000.
            Fiscal year 2007:
                    (A) New budget authority, -$48,179,000,000.
                    (B) Outlays, -$48,179,000,000.
            Fiscal year 2008:
                    (A) New budget authority, -$49,141,000,000.
                    (B) Outlays, -$49,141,000,000.
            Fiscal year 2009:
                    (A) New budget authority, -$50,203,000,000.
                    (B) Outlays, -$50,203,000,000.
            Fiscal year 2010:
                    (A) New budget authority, -$51,778,000,000.
                    (B) Outlays, -$51,778,000,000.
            Fiscal year 2011:
                    (A) New budget authority, -$53,287,000,000.
                    (B) Outlays, -$53,287,000,000.

SEC. 103. RECONCILIATION IN THE SENATE.

    (a) In General.--Subject to subsection (b), the Committee 
on Finance of the Senate shall report to the Senate a 
reconciliation bill not later than May 18, 2001 that consists 
of changes in laws within its jurisdiction sufficient to reduce 
revenues by not more than $1,250,000,000,000 for the period of 
years 2001 through 2011 and the total level of outlays may be 
increased by not more than $100,000,000,000 for the period of 
fiscal years 2001 through 2011.
    (b) Surplus.--Legislation described in subsection (a) may 
not, when taken together with all other previously-enacted 
legislation (except for legislation enacted pursuant to section 
211), reduce the on-budget surplus below the level of the 
Medicare Hospital Insurance Trust Fund surplus in any fiscal 
year covered by this resolution.
    (c) Sense of Congress.--It is the sense of the Congress 
that of the total amount reconciled in subsection (a), 
$100,000,000,000 will be for an economic stimulus package over 
the next 2 years.

SEC. 104. RECONCILIATION IN THE HOUSE.

    (a) In General.--Subject to subsection (b), the Committee 
on Ways and Means of the House of Representatives shall report 
to the House of Representatives a reconciliation bill not later 
than May 18, 2001 that consists of changes in laws within its 
jurisdiction sufficient * * * reported bill or joint 
resolution, or amendment thereto or conference report thereon, 
that would provide an advance appropriation.
    (b) Exception.--An advance appropriation may be provided--
            (1) for fiscal year 2003 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 $23,159,000,000 in new budget authority; and
            (2) for the Corporation for Public Broadcasting.
    (c) Application of Point of Order in the Senate.--
            (1) Waiver and appeal.--In the Senate, subsection 
        (a) may be waived or suspended in the Senate only by an 
        affirmative vote of three-fifths of the Members, duly 
        chosen and sworn. An affirmative vote of three-fifths 
        of the Members of the Senate, duly chosen and sworn, 
        shall be required in the Senate to sustain an appeal of 
        the ruling of the Chair on a point of order raised 
        under subsection (a).
            (2) Form of the point of order.--A point of order 
        under subsection (a) may be raised by a Senator as 
        provided in section 313(e) of the Congressional Budget 
        Act of 1974.
            (3) Conference reports.--If a point of order is 
        sustained under subsection (a) against a conference 
        report in the Senate, the report shall be disposed of 
        as provided in section 313(d) of the Congressional 
        Budget Act of 1974.
    (d) 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 2002 that first 
becomes available for any fiscal year after 2002.
    (e) Sense of Congress.--It is the sense of Congress that 
the Budget Enforcement Act of 1990 should be amended to address 
procedures for advance appropriations for fiscal years 
beginning with fiscal year 2003.

SEC. 203. MECHANISM FOR IMPLEMENTING INCREASE OF FISCAL YEAR 2002 
                    DISCRETIONARY SPENDING LIMITS.

    (a) Findings.--The Senate finds the following:
            (1) Unless and until the discretionary spending 
        limit for fiscal year 2002 (as set out in section 
        251(c) of the Balanced Budget and Emergency Deficit 
        Control Act of 1985) is increased, aggregate 
        appropriations which exceed the current law limits 
        would still be out of order in the Senate and subject 
        to a supermajority vote.
            (2) Except for a necessary adjustment included in 
        function 920 (to comply with section 312(b) of the 
        Congressional Budget Act of 1974), the functional 
        totals contained in this concurrent resolution envision 
        a level of discretionary spending for fiscal year 2002 
        as follows:
                    (A) For the discretionary category: 
                $659,540,000,000 in new budget authority and 
                $647,780,000,000 in outlays.
                    (B) For the highway category: 
                $28,489,000,000 in outlays.
                    (C) For the mass transit category: 
                $5,275,000,000 in outlays.
                    (D) For the conservation category: 
                $1,760,000,000 in new budget authority and 
                $1,232,000,000 in outlays.
            (3) To facilitate the Senate completing its 
        legislative responsibilities for the 1st Session of the 
        107th Congress in a timely fashion, it is imperative 
        that the Senate consider legislation which establishes 
        appropriate discretionary spending limits for fiscal 
        year 2002 through 2006 as soon as possible.
    (b) Adjustment to Allocations and Other Budgetary 
Aggregates and Levels.--Whenever a bill or joint resolution 
becomes law that increases the discretionary spending limit for 
fiscal year 2002 set out in section 251(c) of the Balanced 
Budget and Emergency Deficit Control Act of 1985, the chairman 
of the Committee on the Budget of the Senate shall increase the 
allocation called for in section 302(a) of the Congressional 
Budget Act of 1974 (2 U.S.C. 633(a)) to the appropriate 
Committee on Appropriations and shall also appropriately adjust 
all other budgetary aggregates and levels contained in this 
resolution.
    (c) Senate Defense Firewall.--
            (1) Definition.--In this subsection, for purposes 
        of enforcement in the Senate for fiscal year 2002, the 
        term ``discretionary spending limit'' means--
                    (A) for the defense category, 
                $325,070,000,000 in new budget authority; and
                    (B) for the nondefense category, 
                $336,230,000,000 in new budget authority.
            (2) Point of order in the senate.--
                    (A) In general.--After the adjustment to 
                the section 302(a) allocation to the Committee 
                on Appropriations is made pursuant to 
                subsection (b) and except as provided in 
                subparagraph (B), it shall not be in order in 
                the Senate to consider any bill, joint 
                resolution, amendment, motion, or conference 
                report that exceeds any discretionary spending 
                limit set forth in this subsection.
                    (B) Exception.--This paragraph shall not 
                apply if a declaration of war by Congress is in 
                effect.
            (3) Waiver and appeal.--This subsection may be 
        waived or suspended in the Senate only by an 
        affirmative vote of three-fifths of the Members, duly 
        chosen and sworn. An affirmative vote of three-fifths 
        of the Members of the Senate, duly chosen and sworn, 
        shall be required in the Senate to sustain an appeal of 
        the ruling of the Chair on a point of order raised 
        under this subsection.

SEC. 204. COMPLIANCE WITH SECTION 13301 OF THE BUDGET ENFORCEMENT ACT 
                    OF 1990.

    (a) In General.--In the House of Representatives, 
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 of Representatives, 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.

                       Subtitle B--Reserve Funds


SEC. 211. RESERVE FUND FOR MEDICARE.

    (a) Medicare Reform and Prescription Drugs.--If the 
Committee on Finance of the Senate or the Committee on Ways and 
Means or the Committee on Energy and Commerce of the House of 
Representatives reports a bill or joint resolution, or an 
amendment is offered thereto, or a conference report thereon is 
submitted, which reforms the medicare program under title XVIII 
of the Social Security Act (42 U.S.C. 1395 et seq.) and 
improves the access of beneficiaries under that program to 
prescription drugs, the appropriate chairman of the Committee 
on the Budget may revise committee allocations for that 
committee and other appropriate budgetary aggregates and 
allocations of new budget authority (and the outlays resulting 
therefrom) in this resolution by the amount provided by that 
measure for that purpose, but not to exceed $0 for fiscal year 
2002, $59,100,000,000 for the period of fiscal years 2002 
through 2006, and $300,000,000,000 for the period of fiscal 
years 2002 through 2011.
    (b) Medicare Payments to Home Health Agencies.--
            (1) In general.--Subject to paragraph (2), if the 
        Senate Committee on Finance or the House Committee on 
        Ways and Means or Committee on Energy and Commerce 
        report a bill, or if an amendment thereto is offered or 
        a conference report thereon is submitted, that repeals 
        the 15 percent reduction in payments under the medicare 
        program to home health agencies enacted by the Balanced 
        Budget Act of 1997 and now scheduled to go into effect 
        on October 1, 2002, the appropriate chairman of the 
        Committee on the Budget may increase the allocation of 
        new budget authority and outlays to that committee and 
        other appropriate budgetary aggregates and levels by 
        the amount the amount provided by that measure for that 
        purpose, but not to exceed $0 in new budget authority 
        and outlays in 2002, $4,000,000,000 for the period 2002 
        through 2006, and $13,700,000,000 for the period 2002 
        through 2011.
            (2) Surplus.--Legislation described in paragraph 
        (1) may not, when taken together with all other 
        previously-enacted legislation (except for legislation 
        enacted pursuant to subsection (a)), reduce the on-
        budget surplus below the level of the Medicare Hospital 
        Insurance Trust Fund surplus in any fiscal year covered 
        by this resolution.

SEC. 212. RESERVE FUND FOR FAMILY OPPORTUNITY ACT.

    (a) In General.--Subject to subsection (b), if the 
Committee on Finance of the Senate or the Committee on Energy 
and Commerce of the House of Representatives reports a bill or 
joint resolution, or if an amendment thereto is offered or a 
conference report thereon is submitted, that provides States 
with the opportunity to expand medicaid coverage for children 
with special needs, allowing families of disabled children with 
the opportunity to purchase coverage under the medicaid program 
for such children (commonly referred to as the ``Family 
Opportunity Act of 2001''), the appropriate chairman of the 
Committee on the Budget may revise committee allocations for 
that committee and other appropriate budgetary aggregates and 
allocations of new budget authority (and the outlays resulting 
therefrom) in this resolution by the amount provided by that 
measure for that purpose, but not to exceed $227,000,000 in new 
budget authority and $180,000,000 in outlays for fiscal year 
2002, $3,035,000,000 in new budget authority and $2,724,000,000 
in outlays for the period of fiscal years 2002 through 2006, 
and $8,337,000,000 in new budget authority and $7,867,000,000 
in outlays for the period of fiscal years 2002 through 2011.
    (b) Surplus.--Legislation described in subsection (a) may 
not, when taken together with all other previously-enacted 
legislation (except for legislation enacted pursuant to section 
211), reduce the on-budget surplus below the level of the 
Medicare Hospital Insurance Trust Fund surplus in any fiscal 
year covered by this resolution.

SEC. 213. RESERVE FUND FOR AGRICULTURE.

    (a) In General.--(1) Subject to subsection (b), if the 
Committee on Agriculture, Nutrition, and Forestry of the Senate 
or the Committee on Agriculture of the House of Representatives 
reports a bill, or an amendment thereto is offered, or a 
conference report thereon is submitted, to reauthorize the 
Federal Agriculture Improvement Act of 1996, title I of that 
Act, and other appropriate agricultural production legislation, 
the appropriate Chairman of the Committee on the Budget may 
increase the allocation of new budget authority and outlays to 
that committee for fiscal years 2003 through 2011 by the amount 
of new budget authority (and the outlays resulting therefrom) 
provided by that measure for that purpose not to exceed 
$66,150,000,000 in new budget authority and outlays for fiscal 
years 2003 through 2011.
    (2) In the House of Representatives, if an adjustment is 
made under paragraph (1), the Chairman of the Committee on the 
Budget may adjust the fiscal year 2002 level by an amount not 
to exceed the adjustment that is made for fiscal year 2003 (and 
reduce the adjustment made for fiscal year 2003 by that 
amount).
    (b) Surplus.--Legislation described in subsection (a) may 
not, when taken together with all other previously-enacted 
legislation (except for legislation enacted pursuant to section 
211), reduce the on-budget surplus below the level of the 
Medicare Hospital Insurance Trust Fund surplus in any fiscal 
year covered by this resolution.

SEC. 214. RESERVE FUND FOR ADDITIONAL TAX CUTS AND DEBT REDUCTION.

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

SEC. 215. TECHNICAL RESERVE FUND FOR STUDENT LOANS.

    (a) In General.--Subject to subsection (b), if the 
Committee on Health, Education, Labor, and Pensions of the 
Senate reports a bill, or an amendment thereto is offered, or a 
conference report thereon is submitted, or the Committee on 
Education and the Workforce of the House of Representatives 
reports a bill, or an amendment is offered, or a conference 
report is submitted, that provides additional resources for 
legislation that repeals the replacement interest rate 
structure for student loans scheduled to occur on July 1, 2003, 
the appropriate Chairman of the Committee on the Budget may 
increase the allocation of new budget authority and outlays to 
the appropriate committee--
            (1) for fiscal years 2001 and 2002 by the amount of 
        new budget authority (and the outlays resulting 
        therefrom) provided by that measure for that purpose 
        not to exceed $110,000,000 in new budget authority and 
        $100,000,000 outlays;
            (2) for fiscal years 2001 through 2006 by the 
        amount of new budget authority (and the outlays 
        resulting therefrom) provided by that measure for that 
        purpose not to exceed $3,440,000,000 in new budget 
        authority and $2,840,000,000 outlays; and
            (3) for fiscal years 2001 through 2011 by the 
        amount of new budget authority (and the outlays 
        resulting therefrom) provided by that measure for that 
        purpose not to exceed $7,665,000,000 in new budget 
        authority and $6,590,000,000 outlays.
    (b) Surplus.--Legislation described in subsection (a) may 
not, when taken together with all other previously-enacted 
legislation (except for legislation enacted pursuant to section 
211), reduce the on-budget surplus below the level of the 
Medicare Hospital Insurance Trust Fund surplus in any fiscal 
year covered by this resolution.

SEC. 216. RESERVE FUND FOR HEALTH INSURANCE FOR THE UNINSURED.

    (a) In General.--Subject to subsection (b), if the 
Committee on Finance of the Senate or the Committee on Energy 
and Commerce or Committee on Ways and Means of the House of 
Representatives report a bill or joint resolution, or an 
amendment thereto is offered, or a conference report thereon is 
submitted, that provides health insurance for the uninsured 
(including a measure providing for tax deductions for the 
purchase of health insurance for, among others, moderate income 
individuals not receiving health insurance from their 
employers), the appropriate chairman of the Committee on the 
Budget may revise committee allocations for that committee and 
other appropriate budgetary aggregates and allocations of new 
budget authority (and the outlays resulting therefrom) and may 
revise the revenue aggregates and other appropriate budgetary 
aggregates and allocations in this resolution by the amount 
provided by that measure for that purpose, but not to exceed 
$28,000,000,000 in new budget authority and outlays for the 
period of fiscal years 2002 through 2011 or $28,000,000,000 in 
revenues for the period of fiscal years 2002 through 2011 or 
any combination of budget authority and outlays or revenues as 
long as the sum of all revisions does not exceed 
$28,000,000,000. This resolutions allows these funds to be 
spent over the time period of fiscal years 2002 through 2004.
    (b) Surplus.--Legislation described in subsection (a) may 
not, when taken together with all other previously-enacted 
legislation (except for legislation enacted pursuant to section 
211), reduce the on-budget surplus below the level of the 
Medicare Hospital Insurance Trust Fund surplus in any fiscal 
year covered by this resolution.

SEC. 217. RESERVE FUND FOR DEFENSE IN THE SENATE.

    (a) In General.--Subject to subsection (b), if the 
President submits a budget amendment and the Committee on 
Appropriations or the Committee on Armed Services of the Senate 
reports a bill, or an amendment thereto is offered, or a 
conference report thereon is submitted, that provides 
additional resources for defense spending in response to the 
recommendations of the President's National Defense Review, the 
Chairman of the Committee on the Budget may increase the 
allocation of new budget authority and outlays to that 
committee for fiscal year 2002 by the amount of new budget 
authority (and the outlays resulting therefrom) provided by 
that measure for that purpose.
    (b) Surplus.--Legislation described in subsection (a) may 
not, when taken together with all other previously-enacted 
legislation (except for legislation enacted pursuant to section 
211), reduce the on-budget surplus below the level of the 
Medicare Hospital Insurance Trust Fund surplus in any fiscal 
year covered by this resolution.

SEC. 218. STRATEGIC RESERVE FUND IN THE HOUSE.

    (a) Adjustments.--In the House of Representatives, the 
chairman of the Committee on the Budget may adjust the 
appropriate aggregates and committee allocations of new budget 
authority (and outlays flowing therefrom) for fiscal year 2002 
for a bill making appropriations for the Department of Defense 
and, for fiscal years 2002 through 2011, a bill making 
authorizations for the Department of Defense, a bill providing 
a prescription drug benefit, and any other appropriate 
legislation. The chairman may also make adjustments for 
amendments to or conference reports on such bills. In making 
adjustments under this subsection, the chairman shall consider, 
as appropriate, the recommendations of the President's National 
Defense Review and any statement of administrative policy or 
supplemental budget request relating to any legislation 
referred to in this subsection.
    (b) Limitations.--(1) The adjustments for any bill referred 
to in subsection (a) shall be in an amount not to exceed the 
amount by which such bill breaches the applicable allocation or 
aggregate.
    (2) Legislation described in subsection (a) may not, when 
taken together with all other previously-enacted legislation 
(except for legislation enacted pursuant to section 211), 
reduce the on-budget surplus below the level of the Medicare 
Hospital Insurance Trust Fund surplus in any fiscal year 
covered by this resolution.

                  Subtitle C--Miscellaneous Provisions


SEC. 221. APPLICATION AND EFFECT OF CHANGES IN ALLOCATIONS AND 
                    AGGREGATES.

    (a) Application.--Any adjustments of allocations and 
aggregates made pursuant to this resolution shall--
            (1) apply while that measure is under 
        consideration;
            (2) take effect upon the enactment of that measure; 
        and
            (3) be published in the Congressional Record as 
        soon as practicable.
    (b) Effect of Changed Allocations and Aggregates.--Revised 
allocations and aggregates resulting from these adjustments 
shall be considered for the purposes of the Congressional 
Budget Act of 1974 as allocations and aggregates contained in 
this resolution.
    (c) Budget Committee Determinations.--For purposes of this 
resolution--
            (1) the levels of new budget authority, outlays, 
        direct spending, new entitlement authority, revenues, 
        deficits, and surpluses for a fiscal year or period of 
        fiscal years shall be determined on the basis of 
        estimates made by the Committee on the Budget of the 
        House of Representatives; and
            (2) such chairman, as applicable, may make any 
        other necessary adjustments to such levels to carry out 
        this resolution.
    (d) Enforcement in the House.--
            (1) In general.--In the House of Representatives, 
        for the purpose of enforcing this concurrent 
        resolution, sections 302(f) and 311(a) of the 
        Congressional Budget Act of 1974 shall apply to fiscal 
        year 2002 and the total for fiscal year 2002 and the 
        four ensuing fiscal years.
            (2) Appropriate levels.--For purposes of 
        enforcement of the Congressional Budget Act of 1974 in 
        the House of Representatives, the appropriate levels of 
        total new budget authority and total budget outlays for 
        fiscal years 2002 through 2011 prescribed by this 
        resolution pursuant to section 301(a)(1) of such Act 
        shall be based upon the table entitled ``Conference 
        Report Fiscal Year 2002, Budget Resolution Total 
        Spending and Revenues'' in conjunction with the 
        provisions of title II of this resolution.
    (e) Enforcement in the Senate.--The Senate, for purposes of 
enforcement of the Congressional Budget Act of 1974 and this 
resolution, measures discharged pursuant to Senate Resolution 8 
shall be considered as if the measure had been reported from 
the committee of jurisdiction.

SEC. 222. EXERCISE OF RULEMAKING POWERS.

    Congress adopts the provisions of this title--
            (1) as an exercise of the rulemaking power of the 
        Senate and the House of Representatives, respectively, 
        and as such they shall be considered as part of the 
        rules of each House, or of that House to which they 
        specifically apply, and such rules shall supersede 
        other rules only to the extent that they are 
        inconsistent therewith; and
            (2) with full recognition of the constitutional 
        right of either House to change those rules (so far as 
        they relate to that House) at any time, in the same 
        manner, and to the same extent as in the case of any 
        other rule of that House.

         TITLE III--SENSE OF THE SENATE AND CONGRESS PROVISIONS


                    Subtitle A--Sense of the Senate


SEC. 301. SENSE OF THE SENATE ON CONSERVATION.

    It is the sense of the Senate that conservation funding is 
a priority of the One Hundred Seventh Congress.

SEC. 302. SENSE OF THE SENATE ON AIDS AND OTHER INFECTIOUS DISEASES.

    Notwithstanding any other provision of this resolution, it 
is the sense of the Senate that:
            (1) Findings.--The Senate finds the following:
                    (A) HIV/AIDS, having already infected over 
                58 million people worldwide, is devastating the 
                health, economies, and social structures in 
                dozens of countries in Africa, and increasingly 
                in Asia, the Caribbean and Eastern Europe.
                    (B) AIDS has wiped out decades of progress 
                in improving the lives of families in the 
                developing world. As the leading cause of death 
                in Africa, AIDS has killed 17 million and will 
                claim the lives of one quarter of the 
                population, mostly productive adults, in the 
                next decade. In addition, 13 million children 
                have been orphaned by AIDS--a number that will 
                rise to 40 million by 2010.
                    (C) The Agency for International 
                Development, along with the Centers for Disease 
                Control, Department of Labor, and Department of 
                Defense have been at the forefront of the 
                international battle to control HIV/AIDS, with 
                global assistance totaling $330,000,000 from 
                the United States Agency for International 
                Development and $136,000,000 from other 
                agencies in fiscal year 2001, primarily focused 
                on targeted prevention programs.
                    (D) While prevention is key, treatment and 
                care for those affected by HIV/AIDS is an 
                increasingly critical component of the global 
                response. Improving health systems, providing 
                home-based care, treating AIDS-associated 
                diseases like tuberculosis, providing for 
                family support and orphan care, and making 
                antiretroviral drugs against HIV available will 
                reduce social and economic damage to families 
                and communities.
                    (E) Pharmaceutical companies recently 
                dramatically reduced the prices of 
                antiretroviral drugs to the poorest countries. 
                With sufficient resources, it is now possible 
                to improve treatment options in countries where 
                health systems are able to deliver and monitor 
                the medications.
                    (F) The United Nations AIDS program 
                estimates it will cost at least $3,000,000,000 
                for basic AIDS prevention and care services in 
                Sub-Saharan Africa alone, and at least 
                $2,000,000,000 more if antiretroviral drugs are 
                provided widely. In Africa, only $500,000,000 
                is currently available from all donors, lending 
                agencies and African governments themselves.
            (2) Sense of the senate.--It is the sense of the 
        Senate that the spending levels in this budget 
        resolution shall be increased by $200,000,000 in fiscal 
        year 2002 and by $500,000,000 in 2003 and for each year 
        thereafter for the purpose of helping the neediest 
        countries cope with the burgeoning costs of prevention, 
        care and treatment of those affected by HIV/AIDS and 
        associated infectious diseases.

SEC. 303. SENSE OF THE SENATE ON CONSOLIDATED HEALTH CENTERS.

    It is the sense of the Senate that appropriations for 
consolidated health centers under section 330 of the Public 
Health Service Act (42 U.S.C. 254b) should be increased by 100 
percent over the next 5 fiscal years in order to double the 
number of individuals who receive health services at community, 
migrant, homeless, and public housing health centers.

SEC. 304. FUNDING FOR DEPARTMENT OF JUSTICE PROGRAMS FOR STATE AND 
                    LOCAL LAW ENFORCEMENT ASSISTANCE.

    It is the sense of the Senate that the levels in this 
resolution assume increased funding for fiscal year 2002 for 
the Department of Justice State and local law enforcement grant 
programs.

SEC. 305. SENSE OF THE SENATE REGARDING UNITED STATES COAST GUARD 
                    FISCAL YEAR 2002 FUNDING.

     It is the sense of the Senate that any level of budget 
authority and outlays in fiscal year 2002 below the level 
assumed in this resolution for the Coast Guard would require 
the Coast Guard to--
            (1) close numerous units and reduce overall mission 
        capability, including the counter narcotics 
        interdiction mission which was authorized under the 
        Western Hemisphere Drug Elimination Act;
            (2) reduce the number of personnel of an already 
        streamlined workforce; and
            (3) reduce operations in a manner that would have a 
        detrimental impact on the sustainability of valuable 
        fish stocks in the North Atlantic and Pacific Northwest 
        and its capacity to stem the flow of illicit drugs and 
        illegal immigration into the United States.

SEC. 306. STRENGTHENING OUR NATIONAL FOOD SAFETY INFRASTRUCTURE.

    (a) Finding.--The Senate finds that the United States food 
supply is one of the safest in the world, but in order to 
maintain the integrity of our food supply in the face of 
emerging threats, we must make the necessary investments now, 
in a time of surplus.
    (b) Sense of the Senate.--It is the sense of the Senate 
that the levels in this resolution assume that the appropriate 
amount should be invested at the Food and Drug Administration 
and the Center for Disease Control food activities next year in 
order to strengthen our national food safety infrastructure 
by--
            (1) increasing the number of inspectors within the 
        Food and Drug Administration to enable the Food and 
        Drug Administration to inspect high-risk sites at least 
        annually;
            (2) supporting research that enables us to meet 
        emerging threats;
            (3) improving surveillance to identify and trace 
        the sources and incidence of food-borne illness;
            (4) otherwise maintaining at least current funding 
        levels for food safety initiatives in the Food and Drug 
        Administration and the United States Department of 
        Agriculture; and
            (5) providing additional funds should such needs 
        arise due to emerging food safety threats.

SEC. 307. SENSE OF THE SENATE WITH RESPECT TO INCREASING FUNDS FOR 
                    RENEWABLE ENERGY RESEARCH AND DEVELOPMENT.

    It is the sense of the Senate that the Senate recognizes 
the importance of renewable energy resources and that providing 
for such technologies should be increased by at least 
$450,000,000 for fiscal year 2002 and at a rate in excess of 
inflation in subsequent years.

                   Subtitle B--Sense of the Congress


SEC. 311. ASSET BUILDING FOR THE WORKING POOR.

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

SEC. 312. FEDERAL FIRE PREVENTION ASSISTANCE.

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

SEC. 313. FUNDING FOR GRADUATE MEDICAL EDUCATION AT CHILDREN'S TEACHING 
                    HOSPITALS.

    It is the sense of Congress that:
            (1) Function 550 includes an appropriate level of 
        funding for graduate medical education conducted at 
        independent children's teaching hospitals in order to 
        ensure access to care by millions of children 
        nationwide.
            (2) An emphasis should be placed on the role played 
        by community health centers in underserved rural and 
        urban communities.
            (3) Funding under function 550 should also reflect 
        the importance of the Ryan White CARE Act to persons 
        afflicted with HIV/AIDS.

SEC. 314. CONCURRENT RETIREMENT AND DISABILITY BENEFITS TO RETIRED 
                    MEMBERS OF THE ARMED FORCES.

    (a) Findings.--Congress finds that the Secretary of Defense 
is the appropriate official for evaluating the existing 
standards for the provision of concurrent retirement and 
disability benefits to retired members of the Armed Forces and 
the need to change these standards.
    (b) Sense of Congress.--It is the sense of Congress that--
            (1) the Secretary of Defense should report not 
        later than 180 days after the date of adoption of this 
        resolution to the congressional committees of 
        jurisdiction on the provision of concurrent retirement 
        and disability benefits to retired members of the Armed 
        Forces;
            (2) the report should address the number of 
        individuals retired from the Armed Forces who would 
        otherwise be eligible for disability compensation, the 
        comparability of the policy to Office of Personnel 
        Management guidelines for civilian Federal retirees, 
        the applicability of this policy to prevailing private 
        sector standards, the number of individuals potentially 
        eligible for concurrent benefits who receive other 
        forms of Federal assistance and the cost of that 
        assistance, and alternative initiatives that would 
        accomplish the same end as concurrent receipt of 
        military retired pay and disability compensation;
            (3) the Secretary of Defense should submit 
        legislation that he considers appropriate;
            (4) upon receiving such report, the committees of 
        jurisdiction, working with the Committees on the Budget 
        of the House and Senate, should consider appropriate 
        legislation; and
            (5) CBO and OMB should report not later than 30 
        days after the date of adoption of this resolution to 
        the Committees on the Budget on the risk that provision 
        of full concurrent receipt of military retired pay and 
        disability compensation would reduce the surplus below 
        the level of the Medicare Hospital Insurance Trust 
        Fund.

SEC. 315. FEDERAL EMPLOYEE PAY.

    (a) Findings.--Congress finds the following:
            (1) Members of the uniformed services and civilian 
        employees of the United States make significant 
        contributions to the general welfare of the Nation.
            (2) Increases in the pay of members of the 
        uniformed services and of civilian employees of the 
        United States have not kept pace with increases in the 
        overall pay levels of workers in the private sector, so 
        that there now exists--
                    (A) a 32 percent gap between compensation 
                levels of Federal civilian employees and 
                compensation levels of private sector workers; 
                and
                    (B) an estimated 10 percent gap between 
                compensation levels of members of the uniformed 
                services and compensation levels of private 
                sector workers.
            (3) The President's budget proposal for fiscal year 
        2002 includes a 4.6 percent pay raise for military 
        personnel.
            (4) The Office of Management and Budget has 
        requested that Federal agencies plan their fiscal year 
        2002 budgets with a 3.6 percent pay raise for civilian 
        Federal employees.
            (5) In almost every year during the past 2 decades, 
        there have been equal adjustments in the compensation 
        of members of the uniformed services and the 
        compensation of civilian employees of the United 
        States.
    (b) Sense of Congress.--It is the sense of Congress 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. 316. SALES TAX DEDUCTION.

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

                                   Jim Nussle,
                                   John E. Sununu,
                                 Managers on the Part of the House.

                                   Pete Domenici,
                                   Chuck Grassley,
                                   Don Nickles,
                                   Phil Gramm,
                                   Christopher Bond,
                                Managers on the Part of the Senate.

       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

      The managers on the part of the Senate and the House at 
the conference on disagreeing votes of the two Houses on the 
amendment of the Senate to the concurrent resolution (House 
Concurrent Resolution 83), setting forth the congressional 
budget for the United States for fiscal years 2001, 2002, 2003, 
2004, 2005, 2006, 2007, 2008 2009, 2010 and 2011 submit the 
following joint statement to the House and the Senate in 
explanation of the effect of the action agreed upon by the 
managers and recommend in the accompanying conference report:
      The Senate amendment struck all out of the House 
resolution after the resolving clause and inserted a substitute 
text.
      The House recedes from its disagreement to the amendment 
of the Senate with an amendment which is a substitute for the 
House resolution and the Senate amendment.

                          Displays and Amounts

      The contents of concurrent budget resolutions are set 
forth in section 301(a) of the Congressional Budget Act of 
1974. The years in this document are fiscal years unless 
otherwise indicated.
      House Resolution.--The House budget resolution includes 
all of the items required as part of a concurrent budget 
resolution under section 301(a) of the Congressional Budget Act 
other than the spending and revenue levels for Social Security 
(which is used to enforce a point of order applicable only in 
the Senate).
      Senate Amendment.--The Senate amendment includes all of 
the items required under section 301(a) of the Congressional 
Budget Act. As permitted under section 301(b) of the 
Congressional Budget Act, Section 102 of the Senate amendment 
includes advisory levels on debt held by the public.
      Conference Agreement.--The Conference Agreement includes 
all of the items required by section 301(a) of the 
Congressional Budget Act.

                     Aggregates and Function Levels


                          Economic Assumptions

      Section 301(g)(2) of the Congressional Budget Act 
requires that the joint explanatory statement accompanying a 
conference report on a budget resolution set forth the common 
economic assumptions upon which the joint statement and 
conference report are based. The Conference Agreement is built 
upon the economic forecasts developed by the Congressional 
Budget Office and presented in CBO's ``The Economic and Budget 
Outlook: Fiscal Years 2002-2011'' (January 2001).
      House Resolution.--CBO's economic assumptions were used.
      Senate Amendment.--CBO's economic assumptions were used.
      Conference Agreement.--CBO's economic assumptions were 
used.


                         Functions and Revenues

      Pursuant to section 301(a)(3) of the Budget Act, the 
budget resolution must set appropriate levels for each major 
functional category based on the 302(a) allocations and the 
budgetary totals.
      The respective levels of the House resolution, the Senate 
amendment, and the Conference Agreement for each major budget 
function are discussed in the following section. The Conference 
Agreement provides aggregate discretionary spending in 2002 of 
$661.3 billion in budget authority (BA) and $682.8 billion in 
outlays.
      These two aggregate numbers are allocated to the 
Appropriations Committees to be suballocated to their 13 
individual appropriation subcommittees. For the purposes of 
presentation in this Conference Agreement, functional 
discretionary numbers are set at fiscal year 2002 Congressional 
Budget Office baseline estimates, and do not reflect any 
specific policy orientation except for the defense function, 
which assumes President Bush's budget authority request for 
fiscal year 2002. For years beyond 2002 this report assumes 
that the 2002 discretionary function levels grow by inflation.
      The only specific discretionary policy decision inherent 
in this resolution is a $661.3 billion discretionary budget 
authority allocation. The Appropriations Committees are 
responsible for allocating this budget authority to their 
subcommittees to address specific policy priorities.

                     function 050: national defense

      Major Programs in Function.--Under current law, spending 
for Function 050, National Defense, will total $310.3 billion 
in BA and $300.6 billion in outlays for 2001. This function 
includes funding for the Department of Defense (about 95% of 
the function), the defense activities of the Department of 
Energy (about 5% of the function), and other defense activities 
in other departments and agencies, including the Department of 
Transportation, the Department of Justice, the General Services 
Administration, and the Selective Service (less than 1% of the 
function).
      House Resolution.--The resolution establishes levels of 
$324.6 billion in budget authority [BA] and $319.3 billion in 
outlays in fiscal year 2002, an increase of 4.5 percent in BA 
compared with fiscal year 2001. The function totals are $1.71 
trillion in BA and $1.68 trillion in outlays over 5 years, and 
$3.68 trillion in BA and $3.61 trillion in outlays over 10 
years. Funding in the resolution accommodates the President's 
proposal to increase military pay and other compensation by 
$1.4 billion in 2002. The resolution also assumes an additional 
$400 million to improve the quality of housing for military 
personnel and their families, and $3.9 billion for the first 
year of expanded health benefits for over-65 military retirees 
(Tricare for Life). In addition, the resolution accommodates 
the President's proposed $2.6-billion initiative ($20 billion 
over 5 years) to fund research and development of new 
technologies. The Department of Defense intends to apply this 
funding to create new capabilities to defend against projected 
future threats, following a comprehensive review by the 
Secretary of Defense to assess national security needs. To 
potentially augment the levels in this function, the resolution 
creates two reserve funds that could accommodate additional 
defense spending: one, in fiscal year 2001, to eliminate 
Department of Defense shortfalls; and a second, in fiscal year 
2002, for possible legislation pursuant to the President's 
defense review. See also section 1218A.
      Senate Amendment.--The Senate amendment provides $334.5 
billion in BA and $326.8 billion in outlays in 2002, and $3.69 
trillion in BA and $3.62 trillion in outlays over 2002-2011. 
These amounts include full funding for the President's request, 
which for 2002 constitutes a $14.3. billion increase in BA over 
2001--a 4.6 percent nominal increase--and which in 2002 
accommodates increases of $1.4 billion in BA for military 
personnel pay and retention, $0.4 billion for military housing, 
$2.6 billion for research and development for missile defense 
and ``transformation,'' and $3.9 billion for the Tricare for 
Life program enacted in the 106th Congress. The President's 
request also incorporated reductions below inflated baseline 
levels for the Department of Energy defense activities 
(subfunction 053) and other defense-related activities in 
subfunction 054, amounting to approximately $1 billion per year 
over 2002-2011.
      The Senate amendment includes the President's proposal to 
make the Radiation Exposure Compensation Trust Fund a mandatory 
program and to delay payments to certain beneficiaries pending 
the scientific findings of a study by the National Institute of 
Occupational Safety and Health.
      The Senate amendment also encompasses increases directed 
by certain amendments adopted by the Senate for 2002. These 
include an amendment adding $8.5 billion in BA and $6.5 billion 
in outlays to redress serious and pressing Defense Health 
Program shortfalls ($3.1 billion), unfunded Department of 
Energy non-proliferation and ``Stockpile Stewardship'' 
activities ($900 million), and readiness shortages ($4.5 
billion). Another floor amendment added $1.0 billion in 
additional BA and $0.7 billion in outlays for the Department of 
Energy's Environmental Management program.
      Conference Agreement.--For 2001, the Conferees adopted 
$316.9 billion in BA and $302.4 billion in outlays. This is an 
increase of $6.5 billion in BA over previously enacted--
appropriations for 2001. For 2002, the Conferees adopted. 
$324.8 billion in BA and $319.1 billion in outlays. This is an 
increase of $14.5 billion above levels enacted to date for 
2001. For 2002-2011, the Conference Agreement totals $3.65 
trillion in BA and $3.59 trillion in outlays.
      Regarding discretionary spending, the Conferees adopted 
the House amendment with certain understandings and 
alterations. Among the understandings, the primary ones are to 
redress shortfalls in the National Defense budget function for 
2001 and 2002 regarding the Defense Health Program, readiness, 
and certain Department of Energy defense activities. The key 
alteration is a revised mechanism to accommodate the as yet 
unspecified additional funding needed for the results of the 
President's Defense Review to adjust U.S. national security 
strategy and defense programs to the requirements twenty-first 
century.
      To redress shortfalls in 2001, the Conferees have revised 
the Section 302(a) allocation up to the level of the statutory 
cap for 2001 to accommodate a 2001 supplemental for the 
Department of Defense totaling $6.5 billion in BA and $1.8 
billion in outlays. The Conferees assume and urge in the 
strongest possible terms that this budget authority be used, in 
the amounts specified, exclusively for urgent shortfalls in the 
Defense Health Program ($1.4 billion) and immediate readiness 
needs, including spare parts, training, depot and other 
maintenance, fuel and energy costs, and base operations ($5.1 
billion).
      For discretionary spending in 2002, the Conferees adopted 
$325.1 billion in BA and $319.4 billion in outlays. These 
totals match the President's request as scored by CBO, together 
with the outlays estimated by CBO from the 2001 supplemental 
allocation described above. In addition, the Conferees adopted 
reserve funds, described more fully in the discussion of Title 
II, to accommodate a Presidential budget amendment in response 
to the President's Defense Review.
      The Conferees assume that, taken together, the National 
Defense budget as originally submitted by the President and the 
subsequent budget amendment will fully fund the 
``transformation'' initiatives recommended by the President and 
the Secretary of Defense and all pre-existing priority national 
security programs in the Department of Defense and the 
Department of Energy. The Conferees are particularly concerned 
that the amended budget request fully address all shortfalls 
that have heretofore been identified for 2002, including those 
in the Defense Health Program (up to $3.1 billion), activities 
where readiness has in recent years fallen below optimal levels 
(totaling several billions of dollars), and essential national 
security programs in the Department of Energy, including 
Stockpile Stewardship ($800 million), non-proliferation 
activities ($100 million), and Environmental Management 
programs (up to $1 billion, which could occur in the fiscal 
year deemed most appropriate, 2001 or 2002). The Conferees 
agree that it is essential for the National Defense budget as 
amended, to fully fund each of these concerns respecting both 
shortfalls and ``transformation.''
      Regarding mandatory spending, the Conferees adopted the 
Senate amendment concerning the Radiation Exposure Compensation 
Trust Fund, revised to reflect more recent CBO scoring. This 
updated scoring amounts to $172 million in 2002 and $655 
million for 2002-2011 with an offsetting reduction of expenses 
in the Energy Occupation Illness Compensation fund that brings 
net costs to $146 million in 2002 and $440 million for 2002-
2011.

                  function 150: international affairs

      Major Programs in Function.--Under current law, spending 
for Function 150, International Affairs, will total $22.4 
billion in BA and $19.7 billion in outlays for 2001. This 
function includes funding for the operation of the foreign 
affairs establishment including embassies and other diplomatic 
missions abroad, foreign aid loan and technical assistance 
activities in developing countries, security assistance to 
foreign governments, activities of the Foreign Military Sales 
Trust Fund, U.S. contributions to international financial 
institutions and the United Nations, the Export-Import Bank and 
other trade promotion activities, and refugee assistance.
      House Resolution.--The resolution fully funds the 
President's requested levels of $23.9 billion in budget 
authority [BA] and $19.6 billion in outlays in fiscal year 
2002, an increase of 6.4 percent in BA compared with fiscal 
year 2001. The function totals are $123.8 billion in BA and 
$102.0 billion in outlays over 5 years, and $264.2 billion in 
BA and $219.7 billion in outlays over 10 years. The levels 
fully fund the President's request and accommodate his proposal 
to increase the Administration of Foreign Affairs funding by 
$888 million above the 2001 level, to a total of $5.7 billion 
for fiscal year 2002, and his request to increase military 
assistance to Israel by $60 million. In addition, to maintain 
and expand programs to stem the flow of cocaine and heroin from 
Colombia and its Andean neighbors, the budget assumes the 
President's $624-million increase for international narcotics 
control and law enforcement. The resolution also assumes 
sufficient resources for the Tropical Forest Conservation Act 
[TFCA].
      Senate Amendment.--The Senate amendment provides $24.1 
billion in BA and $19.8 billion in outlays in 2002, and $265.4 
billion in BA and $220.9 billion in outlays over 2002-2011. 
These amounts include full funding for the President's request, 
which for 2002 constitutes a $1.5 billion increase in BA over 
2001--a 6.7 percent nominal increase. The Senate amendment also 
reflects the Senate's adoption of a floor amendment to increase 
the President's request by $200 million in BA in 2002 and by 
$500 million in BA in 2003--with commensurate outlays--for the 
purpose of assisting the response of needy counties to the 
international HIV/AIDS pandemic. The Senate also adopted an 
amendment regarding conservation that affected several budget 
functions, including the addition of $50 million in BA in every 
year over the 2002-2011 period in Function 150.
      Conference Agreement.--The Conference Agreement totals 
$23.2 billion in BA and $19.1 billion in outlays for 2002. For 
2002-2011, the Conference Agreement totals $256.6 billion in BA 
and $213.3 billion in outlays, a reduction of $7.6 billion in 
BA below the request and the House Amendment. The BA and 
outlays for International Affairs equal the amounts of CBO's 
inflated baseline for 2002-2011, plus the outlays needed in 
2002 to address the payment of arrearages to the UN discussed 
below.
      Regarding discretionary spending, the Conferees strongly 
support Secretary of State Powell's proposals to reinvigorate 
the US foreign policy establishment and to expand some 
international programs. The Senate expressed this support in 
the form of expanding even further proposed programs to address 
the HIV/AIDS epidemic in regions, such as Africa.
      Regarding the payment of arrearages to the United 
Nations, the conferees recognize that Congress has appropriated 
funds for the payment of arrears to the UN and related agencies 
in 1999 and 2000. Those funds have not been obligated because 
not all of the reforms required by authorizing statute have 
been met, in particular the requirement that the United States' 
assessment for contributions to international peacekeeping 
activities be reduced to no more than 25 percent of the total. 
Recognizing the substantial reforms that have been negotiated, 
the President hasproposed legislation, not subject to PAYGO, 
that would release the funds for obligation. The legislative proposal 
would increase outlays by $582 million in 2001 and $244 million in 
2002. This resolution accommodates the increased spending in its 
estimates of outlays from prior year's appropriations. The conferees 
direct that if the legislative proposal is included in authorizing 
legislation, the cost of such legislation up to the amounts included in 
the fiscal year 2001 and 2002 allocations of the appropriations 
committee shall not be charged against the allocation of the 
authorizing committee for purposes of enforcing this resolution.

          function 250: general science, space and technology

      Major Programs in Function.--Under current law, spending 
for Function 250, General Science, Space and Technology, will 
total $21.0 billion in BA and $19.7 billion in outlays for 
2001. 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 
science programs of the Department of Energy [DOE]. The largest 
component of the function, nearly two thirds of the total, is 
for space flight, research, and supporting activities of the 
National Aeronautics and Space Administration [NASA] (except 
for NASA's air transportation programs, which are included in 
Function 400).
      House Resolution.--The resolution establishes levels of 
$22.2 billion in budget authority [BA] and $21.0 billion in 
outlays in fiscal year 2002, an increase of 5.7 percent in BA 
compared with fiscal year 2001. The function totals are $115.9 
billion in BA and $112.4 billion in outlays over 5 years, and 
$247.1 billion in BA and $240.2 billion in outlays over 10 
years. The resolution assumes $4.5 billion for the National 
Science Foundation [NSF], a $56-million increase from 2001. It 
assumes $14.5 billion for the National Aeronautics and Space 
Administration [NASA], a 2-percent increase over 2001. This 
total allows for the President's recommendations, including 
increased funds for International Space Station development and 
operations; a 64-percent increase over 2001 for NASA's Space 
Launch Initiative; six space shuttle flights a year; and 
continued funding for safety improvements in NASA.
      Senate Amendment.--The Senate amendment sets forth $22.8 
billion in BA and $21.2 billion in outlays in 2002, and $240.1 
billion in BA and $232.9 billion in outlays over 2002-2011. The 
total spending within Function 250 was amended by the following 
two amendments:
      The Senate adopted an amendment that added $1.441 billion 
in BA and $530 million in outlays in 2002 to the function total 
proposed by President Bush. The amendment assumed an increase 
of $674 million for NSF in 2002. The increase is intended to 
provide additional funding for NSF along a doubling path 
similar to that of the National Institutes of Health. NASA 
would also receive an increase of $518 million, and DOE science 
would increase by $469 million in 2002. The amendment would 
allow funding for all of the President's initiatives in 
Function 250, as well as address other needs within scientific 
community. The total assumed increase above the 2001 
appropriated level is $1.661 billion.
      The Senate also adopted an amendment related to global 
climate changes that affected several functional categories, 
including Function 150, 250, 270, 300, and 350. In this 
function, the amendment reflected an increase in BA of $50 
million each year for 10 years, for a total increase of $500 
million in BA from FY2002-2011.
      Conference Agreement.--The Conference Agreement assumes 
$21.6 billion in BA and $20.7 billion in outlays in 2002, and 
$236.3 billion in BA and $230.6 billion in outlays over the 
2002-2011 period.

                          FUNCTION 270: ENERGY

      Major Programs in Function.--Under current law, spending 
for Function 270 Energy, will total $1.2 billion in BA and 
-$0.1 billion in outlays for 2001. This Function includes 
civilian activities of the Department of Energy, the Rural 
Utilities Service, the power programs of the Tennessee Valley 
Authority (TVA), and the Nuclear Regulatory Commission (NRC). 
Mandatory spending in this function contains large levels of 
offsetting receipts, resulting in net mandatory spending of 
-$1.9 billion in BA and -$3.2 billion in outlays for 2001. 
Congress provided $3.1 billion in discretionary BA for 2001.
      House Resolution.--The resolution establishes levels of 
$835, million in budget authority [BA] and -$234 million in 
outlays in fiscal year 2002, a decrease of 33 percent in BA 
compared with fiscal year 2001. The 5-year function totals are 
$4.4 billion in BA and -$2.2 billion in outlays; and the 10-
year totals are $14.5 billion in BA and $598 million in 
outlays. The resolution assumes the President's proposed $1.4 
billion over 10 years (a $120-million increase) for the 
Department of Energy's Weatherization Assistance Program to 
help low-income families who live in poorly insulated housing 
or have insufficient heating or cooling systems. It also 
assumes a total of $8 million to support the Northeast Heating 
Oil Reserve that was established because of low heating oil 
stocks. Finally, in light of past management and security 
problems, the resolution accommodates the President's efforts 
to reform the Department of Energy.
      Senate Amendment.--The Senate amendment sets forth $1.676 
billion in BA and $.018 billion in outlays in 2002, and $17.162 
billion in BA and $2.785 billion in outlays over the 2002-2011 
period. The Senate amendment assumes the President's budget 
with the following Senate adopted amendments to discretionary 
spending: $205 million in BA each year over the 2002-2011 
period to reduce greenhouse gas emissions, $450 million in BA 
in 2002 for Renewable Energy R&D, and $150 million in BA in 
2002 for Fossil Energy R&D. The Senate amendment does not 
assume the President's proposal for the Arctic National 
Wildlife Refuge (ANWR).
      Conference Agreement.--The Conference Agreement assumes 
$1.36 billion in BA and -$0.02 in outlays in 2002 and $15.9 
billion in BA and $2.2 billion in outlays over the 2002-2011 
period.

          FUNCTION 300: NATURAL RESOURCES AND THE ENVIRONMENT

      Major Programs in Function.--Under current law, spending 
for Function 300 Natural Resources and the Environment, will 
total $28.8 billion in BA and $26.4 billion in outlays for 
2001. This Function includes funding for water resources, 
conservation and land management, recreation resources, and 
pollution control and abatement. Agencies with major program 
activities within the Function include the Environmental 
Protection Agency (EPA), the Army Corps of Engineers, the 
National Oceanic and Atmospheric Administration (NOAA), the 
Forest Service (within the Department of Agriculture), and the 
Department of the Interior, including the National Park 
Service, the Fish and Wildlife Service, the U.S. Geological 
Survey, the Bureau of Land Management and the Bureau of 
Reclamation, among others.
      House Resolution.--The resolution establishes levels of 
$26.7 billion in budget authority [BA] and $26.4 billion in 
outlays in fiscal year 2002, a decrease of 7.3 percent in BA 
compared with fiscal year 2001. The 5-year function totals are 
$137.1 billion in BA and $136.3 billion in outlays; and the 10-
year totals are $289.3 billion in BA and $285.3 billion in 
outlays. The resolution accommodates the President's 
recommendation to fully fund the Land and Water Conservation 
[LWC] Fund at $900 million starting in 2002, an increase of 
$356 million over 2001. It also provides for an addition of 
$440 million in 2002 as a down payment on eliminating the 
National Park Service's deferred maintenance backlog, currently 
pegged at $4.9 billion. In addition, it assumes more than $1 
billion in EPA grants for States and tribes to administer 
environmental programs, and a total of $3.7 billion in funding 
for the EPA's Operating Program, which comprises the agency's 
core regulatory, research, and enforcement activities. The 
resolution would support substantially reducing the backlog of 
school repairs and maintenance in the Bureau of Indian Affairs, 
with the goal of eliminating the backlog within 5 years, and 
assumes increased funding for the Army Corps of Engineers 
program evaluating proposed development in wetlands. The 
resolutions also accepts administration's proposed extension of 
user fee pilot programs in the Forest Service and the National 
Park Service, but does not include increase in Corps of 
Engineers recreation fees.
      Senate Amendment.--The Senate amendment sets forth $29.6 
billion in BA and $29.3 billion in outlays in 2002, and $296.4 
billion in BA and $292.3 billion in outlays over 2002-2011. The 
Senate amendment assumes the President's budget with the 
following Senate adopted amendments to discretionary spending: 
$250 million in BA and $199 million in outlays in 2002 to fully 
fund the Conservation Spending Cap, $44 million in BA in 2002 
for water system improvements, $1.3 billion in BA and outlays 
in 2002 for agriculture conservation programs, $100 million in 
BA in 2002 to reduce greenhouse gases, $800 million in BA in 
2002 for wastewater infrastructure improvements, and $100 
million in BA in 2002 for the Bureau of Reclamation 
construction account.
      The Senate amendment assumes mandatory spending of $350 
million in BA and outlays each year over the 2002-2011 period 
to address agricultural conservation needs.
      Conference Agreement.--The Conference Agreement assumes 
$30.4 billion in BA and $28.7 billion in outlays in 2002, and 
$345.7 billion in BA and $336.8 billion in outlays over the 
2002-2011 period. The Conference Agreement accepts the Senate 
position on the extension of the recreational fee demonstration 
program. The Conference Agreement assumes mandatory agriculture 
spending of $350 million in BA and outlays in 2002. It also 
assumes a reserve fund of $350 million per year in BA and 
outlays over the 2003-2011 period to be allocated to the 
Agriculture Committee for conservation programs.

                       FUNCTION 350: AGRICULTURE

      Major Programs in Function.--Under current law, spending 
for Function 350 Agriculture, is estimated to total $26.3 
billion in budget authority (BA) and $23.7 billion in outlays 
for FY 2001. This Function includes funding for federal 
programs intended to promote the economic stability of 
agriculture through direct assistance and loans to food and 
fiber producers; provide regulatory, inspection and reporting 
services for agricultural markets; and promote research as well 
as education in agriculture and nutrition.
      House Resolution.--The resolution establishes levels of 
$19.1 billion in budget authority [BA] in fiscal year 2002, and 
$17.5 billion in outlays. The 5-year function totals are $92.5 
billion in BA and $84.7 billion in outlays; and the 10-year 
totals are $172.5 billion in BA and $157.3 billion in outlays. 
The resolution accommodates the President's recommendations, 
including: support of United States Department of Agriculture 
[USDA] food safety activities, including providing 7,600 meat 
and poultry inspectors; allocation of conservation assistance 
to 650,000 landowners, farmers, and ranchers; maintaining 
funding for priority activities in the Forest Service's 
wildland fire management plan, including hazardous fuels 
reduction; redirecting USDA research to provide new emphasis in 
key areas such as biotechnology, the development of new 
agricultural products, and improved protection against emerging 
exotic plant and animal diseases as well as crop and animal 
pests; and expanding overseas markets for American agricultural 
products by strengthening USDA's market intelligence 
capabilities and the Department's expertise for resolving 
technical trade issues with foreign trading partners. The 
resolution contains two reserve funds that would accommodate 
additional agricultural needs: a fiscal year 2001 reserve fund 
that could be used for emergency Agricultural Market Transition 
payments; and a fiscal year 2002 reserve fund that could 
accommodate a reauthorization of the Federal Agricultural 
Improvement and Reform Act or additional emergency relief.
      Senate Amendment.--The Senate amendment revises the 2001 
spending levels. It increases BA and outlays by $9 billion to 
$35.3 and $32.7 respectively. For 2002, the Senate assumes 
$26.2 billion in BA and $24.5 billion in outlays. Over the ten-
year period 2002-2011, the Senate assumes a total of $227.9 
billion in BA and $212.8 billion in outlays. The Senate adopted 
mandatory amendments which increased CCC spending by $9 billion 
in BA and outlays in 2001 and a total of $55 billion in BA and 
outlays over the 2002-2011 period. The Senate adopted a 
discretionary amendment which added $0.045 billion in BA and 
$0.041 billion in outlays in 2002 and $0.45 billion in BA and 
$0.446 billion in outlays over the ten-year period 2002-2011.
      Conference Agreement.--The Conference Agreement revises 
the 2001 spending levels. It increases both BA and outlays by 
$5.5 billion to $31.8 billion and $29.2 billion respectively. 
For 2002, the Conference Agreement assumes $26.3 billion in BA 
and $24.6 billion in outlays. Over the ten-year period 2002-
2011, the agreement assumes a total of $243.2 billion in BA and 
$228.0 billion in outlays. The 2001 and 2002 levels assume 
$12.5 billion of new mandatory BA and outlays. This money would 
be allocated to the Senate and House agriculture authorizing 
committees. It is assumed that the additional funds for 2001 
and 2002 will address low income concerns in the agriculture 
sector today. For 2003 to 2011, the Conference Agreement 
assumes increased mandatory BA and outlays totaling $63 billion 
to be made available for the extension and revision of the 
Federal Agriculture Improvement and Reform Act of 1996, which 
expires in 2002. Fiscal Year 2003 monies may be made available 
for 2002 crop year support. The money would be placed in a 
reserve fund for the authorizing committees. This function 
assumes the necessary funding for the modernization plan of 
USDA's National Animal Disease Center and National Veterinary 
Services Laboratory in Ames, IA.

               FUNCTION 370: COMMERCE AND HOUSING CREDIT

      Major Programs in Function.--Under current law, spending 
for Function 370, Commerce and Housing Credit, will total about 
$3.5 billion in BA and $0.2 billion in outlays for 2001. 
Function 370 includes both on-budget and an off-budget (Postal 
Service) components, but the budget resolution text includes 
only the on-budget portion. Both on-budget and total spending 
are shown, however, in the summary tables contained in this 
Conference Agreement. This budget function includes funding for 
discretionary housing programs, such as subsidies for single 
and multifamily housing in rural areas and mortgage insurance 
provided by the Federal Housing Administration; off-budget net 
spending by the Postal Service; discretionary funding for 
commerce programs, such as international trade and exports, 
science and technology, the census, and small business; and 
mandatory spending for deposit insurance activities related to 
banks, savings and loans, and credit unions.
      House Resolution.--For on-budget spending in this 
function, the resolution establishes levels of $7.4 billion in 
budget authority [BA] and $4.4 billion in outlays in fiscal 
year 2002, an increase of 195 percent in BA compared with 
fiscal year 2001. The on-budget function totals are $54.2 
billion in BA and $33.5 billion in outlays over 5 years, and 
$128.1 billion in BA and $84.3 billion in outlays over 10 
years. The resolution assumes the President's recommendation 
that premiums for specified Federal Housing Administration 
[FHA] programs, such as condominiums, rehabilitation loans, and 
multifamily loans, are to be increased so that all single-
family FHA borrowers pay the same premiums, and that the 
programs operate without the need for a subsidy.
      Senate Amendment.--The Senate amendment does not revise 
the levels for 2001. For 2002, the resolution provides $7.7 
billion in BA and $4.5 billion in outlays. Over 10 years, the 
resolution provides $128.9 billion in BA and $85.0 billion in 
outlays. The Senate amendment does not include the House's 
assumption of a reduction in fees charged by the Securities and 
Exchange Commission. Because of an amendment adopted by the 
Senate that dropped the President's proposal to charge exam 
fees for state-chartered banks, the Senate amendment is now 
comparable to the House resolution in this regard. Further, the 
Senate amendment reflects the Senate's adoption of an amendment 
to increase spending on the International Trade Administration 
by $655 million over 2002-2011 and of another amendment to 
restore $264 million in funding in 2002 for programs of the 
Small Business Administration to offset cuts that had been 
proposed in the President's budget.
      Conference Agreement.--The Conference Agreement does not 
revise the fiscal year 2001 levels. For 2002, the resolution 
provides $10.2 billion in BA and $6.6 billion in outlays. Over 
10 years, it provides $152.4 billion in BA and $108.1 billion 
in outlays.

                      FUNCTION 400: TRANSPORTATION

      Major Programs in Function.--Under current law, spending 
for Function 400, Transportation, will total $62.1 billion in 
BA and $51.7 billion in outlays for 2001. The function 
primarily comprises funding for the Department of 
Transportation, including ground transportation programs, such 
as the federal-aid highway program, mass transit, motor carrier 
safety, and the National Rail Passenger Corporation (Amtrak); 
air transportation through the Federal Aviation Administration 
(FAA) airport improvement program, facilities and equipment 
program, research, and operation of the air traffic control 
system; water transportation through the Coast Guard and 
Maritime Administration; the Surface Transportation Board; the 
National Transportation Safety Board; and related 
transportation safety and support activities within the 
Department of Transportation. In addition, funds for air 
transportation programs under the auspices of NASA are included 
within this function.
      House Resolution.--The resolution establishes levels of 
$61.0 billion in BA and $55.6 in outlays in fiscal year 2002; 
$298.9 billion in BA and $299.8 billion in outlays over 5 
years; and $608.1 billion in BA and $639.6 billion in outlays 
over 10 years. The resolution accommodates the President's 
proposal to fully fund the authorized levels provided for 
highways ($32.3 billion) and transit ($6.7 billion) under the 
Transportation Equity Act for the 21st Century and for the 
Federal Aviation Administration's operating ($6.9 billion), 
capital ($2.9 billion), and airport grants ($3.3 billion) 
programs under the Aviation Investment and Reform Act for the 
21st Century. To assist Americans with disabilities in 
overcoming transportation barriers to work, the resolution 
assumes the President's $145-million proposal to fund two new 
programs under his New Freedom Initiative to increase the 
ability of individuals with disabilities to integrate into the 
workforce. The resolution also assumes an increase in Coast 
Guard operating expenses of $250 million above the fiscal year 
2002 level recommended by the President for fiscal year 2002 
and subsequent years. This increase is provided to eliminate 
Coast Guard vessel and aircraft spare parts problems, to 
improve personnel training, to fund new Department of Defense 
entitlements, and to operate drug interdiction assets at 
optimal levels. (The resolution acknowledged that the Office of 
Management and Budget's budget submission contained recently 
identified errors, and indicated conferees would seek to 
address them.)
      Senate Amendment.--The Senate amendment does not revise 
the 2001 levels. For 2002, theresolution provides $62.2 billion 
in BA and $56.1 billion in outlays. Over 10 years, the resolution 
provides $701.6 billion in BA and $645.8 billion in outlays. The Senate 
amendment assumes the President's budget plus a Senate adopted 
amendment to add $250 million in BA and outlays for the Coast Guard in 
2002.
      Conference Agreement.--The Conference Agreement does not 
revise the 2001 levels. For 2002, the resolution provides $65.0 
billion in BA and $56.2 billion in outlays. Over 10 years, it 
provides $694.8 billion in BA and $655.6 billion in outlays.

            function 450: community and regional development

      Major Programs in Function.--Under current law, spending 
for Function 450, Community and Regional Development, will 
total $11.2 billion in BA and $11.4 billion in outlays for 
2001. This function reflects programs that provide Federal 
funding for economic and community development in both urban 
and rural areas. Funding for disaster relief and insurance--
including activities of the Federal Emergency Management 
Agency--also is provided in this function.
      House Resolution.--The resolution establishes levels of 
$10.1 billion in budget authority [BA] and $11.4 billion in 
outlays in fiscal year 2002, a decrease of 9.8 percent in BA 
compared with fiscal year 2001. The 5-year totals are $53.2 
billion in BA and $53.7 billion in outlays; and the 10-year 
totals are $113.9 billion in BA and $108.8 billion in outlays. 
Consistent with the President's recommendations, the budget 
assumes continuation of Community Development Block Grant 
[CDBG] formula funding at the 2001 level. It also assumes that 
the Rural Housing and Economic Development Program, begun in 
1999, will be terminated due to its duplication of other 
programs, such as CDBGs.
      Senate Amendment.--For 2002, the Senate amendment sets 
forth $11.2 billion in BA and $11.6 billion in outlays. Over 
the 2002-2011 ten year period, it assumes $115.0 billion in BA 
and $108.0 billion in outlays. The Senate adopted an amendment 
to increase by $108 million Federal Emergency Management Agency 
(FEMA) funds in 2002. Also adopted was an amendment to increase 
clean water grants by $1.0 billion in 2002.
      Conference Agreement.--The Conference Agreement does not 
revise the fiscal year 2001 levels. For 2002, it sets forth 
$11.9 billion in BA and $11.7 billion in outlays. Over the 
2002-2011 ten year period, it sets forth $130.7 billion in BA 
and $122.8 billion in outlays.

   FUNCTION 500: EDUCATION, TRAINING, EMPLOYMENT AND SOCIAL SERVICES

      Major Programs in Function.--Under current law, spending 
for Function 500, Education, Training, Employment and Social 
Services, will total $76.9 billion in BA and $69.8. billion in 
outlays for 2001. This function includes funding for elementary 
and secondary, vocational, and higher education; education 
research and other education activities; job training and 
employment services; aging services; children and families 
services; adoption and foster care assistance; and funding for 
the arts and humanities.
      House Resolution.--The resolution establishes levels of 
$82.1 billion in budget authority [BA] and $76.2 billion in 
outlays in fiscal year 2002, an increase of 6.8 percent in BA 
compared with fiscal year 2001. The 5-year function totals are 
$425.6 billion in BA and $412.7 billion in outlays; and the 10-
year totals are $917.7 billion in BA and $891.7 billion in 
outlays.
      The resolution assumes the President's proposal to 
redirect the $1.2 billion provided for school renovation, first 
funded in 2001, allowing States to reallocate the 2001 funds 
among school renovation, technology, or special education. For 
2002, the budget assumes States can use this funding stream for 
priorities such as special education, help for low-perfoming 
schools, or accountability reforms.
      The resolution also accommodates the President's proposed 
increase in program spending of the Department of Education by 
$4.6 billion, or 11.5 percent, in fiscal year 2002. It provides 
sufficient funding in elementary and secondary education for 
the President's ``No Child Left Behind'' education reform plan. 
Key initiatives include the following:
      --A tripling of reading education funds, to $900 million 
in 2002, and a total increase in reading education spending of 
$5 billion over 5 years.
      --The provision of $2.6 billion for States to improve 
teacher quality through high-quality professional development, 
recruitment and retention activities.
      --A total of $320 million to help States to develop 
annual assessments of students, and to establish strong 
accountability systems; and $69 million to expand State 
participation in the National Assessment of Education Progress, 
so that parents, teachers and policymakers can ensure that 
students are improving.
      --Consolidation and streamlining of existing Federal 
elementary and secondary education programs.
      The resolution also assumes the following recommendations 
by the President: an increase of $137 million for the Impact 
Aid construction program, which currently receives only $12.8 
million; consolidation and increased funding for teacher 
training and recruiting; a sum of $175 million to help charter 
schools acquire, construct, or renovate facilities; an increase 
for ``character education'' from $9.3 million to $25 million; 
an increase for the Troops to Teachers program to $30 million; 
an expansion of the teacher student loan forgiveness program by 
increasing the loan forgiveness limit from $5,000 to $17,500 
for math and science majors who teach those subjects in high-
need schools for 5 years.
      To provide fiscal assistance to low-income college 
students, the budget accommodates the President's proposal to 
increase the Pell Grant program by $1 billion. This will 
increase the maximum award for all qualifying students to 
$3,850.
      The budget also assumes an increase of 6.4 percent in 
funding for historically black colleges and graduate 
institutions, and Hispanic serving institutions, with a goal of 
increasing these programs 30 percent by 2005. The resolution 
also accommodates the President's proposed expansion of 
programs to protect abused and neglected children under the 
Safe and Stable Families Act, and provision of education or 
training vouchers to children aging out of foster care.
      The resolution creates a $1.25-billion reserve fund for 
the Individuals with DisabilitiesEducation Act [IDEA] Part B 
grants to States.
      Senate Amendment.--The Senate Amendment does not revise 
the 2001 levels. For 2002, the Senate provides $111.9 billion 
in BA and $79.4 billion in outlays. Over the ten-year period 
2002-2011, the Senate provides a total of $1,265.4 billion in 
BA, and $1,194.1 billion in outlays.
      The Senate adopted the following amendments to the 
President's budget:
      --For unspecified education funding, an amendment adding 
$8.3 billion in discretionary BA and $1.0 billion in outlays in 
2002, and adding $242.0 billion in mandatory BA and $223.6 
billion in outlays over the period 2003-2011.
      --For IDEA (special education), an amendment adding $70.0 
billion in mandatory BA and $70.0 billion in outlays over the 
ten-year period 2002-2011.
      --For the Social Services Block Grant, an amendment 
adding $680 million in mandatory BA and outlays in 2002.
      --For education technology, an amendment adding $628 
million in discretionary BA and $35 million in outlays in 2002.
      --For Impact Aid, an amendment adding $300 million in 
discretionary BA and $150 million in outlays in 2002.
      --For children's services, an amendment adding $271 
million in discretionary BA and $243 million in outlays in 
2002.
      --For American history education, an amendment adding 
$100 million in discretionary BA and $25 million in outlays in 
2002.
      Conference Agreement.--The Conference Agreement revises 
2001 levels to $77.0 billion in BA and $69.9 billion in 
outlays. For 2002, the Conference Agreement provides $81.2 
billion in BA and $76.7 billion in outlays. Over the ten-year 
period 2002-2011, the Conference Agreement provides a total of 
$904.0 billion in BA and $887.6 billion in outlays. The 
Conferees assume that within these aggregate numbers, the 
Grants to States program under the Individuals with 
Disabilities Education Act (IDEA) will receive funds of at 
least $7.59 billion in 2002, and that further additional 
resources for education should be focused on this program.

                          FUNCTION 550: HEALTH

      Major Programs in Function.--Under current law, spending 
for Function 550, Health, will total $180.1 billion in BA and 
$173.0 billion in outlays for 2001. The major programs in this 
function include Medicaid, the State Children's Health 
Insurance Program, health benefits for federal workers and 
retirees, the National Institutes of Health, the Food and Drug 
Administration, the Health Resources Services Administration, 
Indian Health Services, the Centers for Disease Control and 
Prevention, and the Substance Abuse and Mental Health Services 
Administration.
      House Resolution.--The resolution establishes levels of 
$204.0 billion in BA and $201.1 billion in outlays in fiscal 
year 2002, an increase of 11.7 percent in BA compared with 
fiscal year 2001.
      The function totals are $1.20 trillion in BA and $1.19 
trillion in outlays over 5 years, and $2.86 trillion in BA and 
$2.84 trillion in outlays over 10 years. Funding in the 
resolution accommodates the President's proposal to double the 
National Institutes of Health [NIH] 1998 funding level of $13.6 
billion by 2003. To accomplish this, the 2002 budget assumes 
$23.1 billion for NIH, a $2.8 billion increase above the 2001 
level. To strengthen the health care safety net, the budget 
assumes the President's $124-million increase for community 
health centers. The budget also assumes $8.3 billion over 10 
years for the enactment of H.R. 600, the Family Opportunity Act 
of 2001. Under the Act, States would have the option to expand 
Medicaid coverage for children with special needs, allowing 
families of disabled children with the opportunity to purchase 
coverage under the Medicaid program for such children.
      Finally, Function 550 assumes $43.1 billion (fiscal years 
2002-2005) of the President's proposed Medicare reform, 
including the Immediate Helping Hand Prescription Drug Plan. 
(The costs for fiscal years 2006 through 2011 are reflected in 
Function 570.) The resolution also assumes the outlay effect of 
the President's proposed refundable health care tax credits, 
and the impact of the extension of an OBRA 1990 provision 
limiting Department of Veterans Affairs [VA] pensions for 
Medicaid recipients in nursing homes.
      Senate Amendment.--The Senate amendment revises 2001 BA 
and outlays by $2.5 billion for the President's Immediate 
Helping Hand prescription drug program for seniors. The 
amendment sets forth $216.1 billion in BA and $213.2 billion in 
outlays in 2002, and $2,938.3 billion in BA and $2,914.4 
billion in outlays over 2002-2011.
      The Senate amendment as introduced assumed the 
President's budget for both mandatory and discretionary 
spending. The following provisions were added through floor 
amendments. For mandatory spending, an additional $28 billion 
was added over 2002-2004 for health spending for the uninsured. 
A reserve fund of $200 million in 2002 and $7.9 billion over 10 
years was included for the Family Opportunity Act. In 
discretionary spending, an additional $700 million was assumed 
for NIH spending in 2002. The Indian Health Service was 
increased by $67.3 billion over 10 years. Budget authority for 
the FDA was increased by $40 million in 2002 and $400 million 
over 10 years. Amendments were adopted to increase funding for 
graduate medical education at children's hospitals by $50 
million in 2002 and to provide an additional $136 million in 
2002 for both graduate medical education and consolidated 
health centers.
      Conference Agreement.--The Conference Agreement does not 
revise the 2001 levels. For 2002, the resolution provides 
$198.8 billion in BA and $196.7 billion in outlays. Over 10 
years, it provides $2,773.8 billion in BA and $2,757.1 billion 
in outlays.
      Under the Conference Agreement, funding for the 
President's Immediate Helping Hand prescription drug proposal 
($43.1 billion over 2002-2005 plus an additional $2.5 billion 
in 2001) was moved to Function 570 (Medicare). The Conference 
Agreement includes a reserve fund for the Family Opportunity 
Act of $227 million in 2002 and $8.3 billion over 10 years. The 
function totals also include a reserve fund of $28 billion over 
10 years for additional health spending for the uninsured; the 
budget levels and aggregates in this function assume that these 
funds will be spent over the 2002-2004 period. This reserve 
fund can be used for either direct spending orrevenue changes 
associated with legislation to improve health insurance coverage. The 
Conference Agreement also assumes Medicaid Upper Payment Limit savings 
of $11.7 billion over 10 years.

                         FUNCTION 570: MEDICARE

      Major Programs in Function.--Under current law, spending 
for Function 570, Medicare, will total $217.5 billion in BA and 
$217.7 billion in outlays for 2001. Medicare provides health 
insurance coverage for persons over age 65 and qualified 
disabled workers.
      House Resolution.--The resolution establishes levels of 
$229.1 billion in budget authority [BA] and outlays in fiscal 
year 2002, an increase of 5.3 percent in BA compared with 
fiscal year 2001. The function totals are $1.34 trillion in BA 
and $1.33 trillion in outlays over 5 years, and $3.31 trillion 
in BA and outlays over 10 years. As proposed in the President's 
budget, the budget resolution assumes $153 billion over 10 
years for Medicare Reform, including the Immediate Helping Hand 
Prescription Drug Plan. This total is shared by Function 550 
and Function 570; Function 570 incorporates $109.9 billion of 
the total over 10 years. The budget is consistent with the 
provisions of the Social Security and Medicare Lock-Box Act of 
2001, which stipulates that the Medicare Hospital Insurance 
[HI] surplus can be used only for debt reduction or Medicare 
reform. The resolution establishes a reserve fund that could be 
used to accommodate a more expanded Medicare reform/
prescription drug proposal. It also establishes a general 
purpose reserve fund that could address Medicare initiatives.
      Senate Amendment.--The Senate amendment does not revise 
2001 levels. For 2002, the amendment provides $229.1 billion in 
BA and outlays. Over 10 years, the amendment provides $3,308.0 
billion in BA and $3,307.6 billion in outlays for this 
function, the same as the House resolution.
      The Senate amendment as introduced assumed the 
President's budget for both mandatory and discretionary 
spending. The following provisions were added through floor 
amendments. A reserve fund was adopted that allows for 
additional spending for Medicare reform and prescription drugs 
that goes beyond the $153 billion over 10 years already 
included in the functional totals and budget aggregates. (This 
amount includes $43.1 billion in Function 550 and $109.9 
billion in Function 570.) The amount allocated from the reserve 
fund will be determined by the Chairman of the Senate Budget 
Committee using a Congressional Budget Office cost estimate of 
the President's Medicare reform proposal or a comparable 
proposal submitted by the Committee on Finance. In no case will 
the amount exceed $300 billion over 10 years (including the 
$153 already reflected in the budget totals). The Senate 
amendment also includes a reserve fund of $13.7 billion over 10 
years for additional Medicare home health spending.
      Conference Agreement.--The Conference Agreement does not 
revise 2001 levels. For 2002, the resolution provides $229.2 
billion in BA and $229.1 billion in outlays. Over 10 years, the 
resolution provides $3,516.1 billion in BA and $3,515.7 billion 
in outlays for this function.
      The Conference Agreement includes a reserve fund of up to 
$300 billion for Medicare reform and a prescription drug 
benefit. The amount allocated from the reserve fund will be 
determined by the Chairmen of the Budget Committees of the 
House and Senate. The resolution also includes a reserve fund 
of $13.7 billion over 10 years for additional Medicare home 
health spending. This reserve fund is to be used to finance the 
repeal of the 15% reduction in Medicare home health payments, 
currently scheduled to take effect on October 1, 2002.

                     FUNCTION 600: INCOME SECURITY

      Major Programs in Function.--Under current law, spending 
for Function 600, Income Security, will total $255.9 billion in 
BA and $256.9 billion in outlays for 2001. This function 
contains: (1) major cash and in-kind means-tested entitlements; 
(2) general retirement, disability, and pension programs 
excluding Social Security and Veterans' compensation programs; 
(3) federal and military retirement programs; (4) unemployment 
compensation; (5) low-income housing programs; and (6) other 
low-income support programs. This last category includes 
Temporary Assistance to Needy Families (TANF), Supplemental 
Security Income (SSI), and spending for the refundable portion 
of the Earned Income Credit (EIC).
      House Resolution.--The resolution establishes levels of 
$271.5 billion in budget authority [BA] and $272.1 billion in 
outlays in fiscal year 2002, an increase of 6 percent in BA 
compared with fiscal year 2001. The function totals are $1.47 
trillion in BA and outlays over 5 years, and $3.21 trillion in 
BA and $3.20 trillion in outlays over 10 years. Consistent with 
the President's budget, the resolution accommodates continued 
State innovation, and the mobilization of private-sector, 
corporate, and faith-based sources, for addressing the needs of 
low-income Americans--a process that began with the historic 
1996 welfare reform law. In particular, the budget proposes a 
number of initiatives to encourage more charitable giving to 
community organizations that are effectively helping 
disadvantaged Americans to improve their lives and increase 
their families' well-being. Other initiatives are intended to 
strengthen low-income families and to address the needs of 
children caught in the Nation's foster care system. The budget 
provides sufficient funding to renew all expiring public 
housing contracts, and adds funding for 34,000 new section 8 
vouchers. Additionally, the budget provides new funding to 
increase home-ownership among low-income families. Beyond these 
priorities, the focus in fiscal year 2002 will be to improve 
management of HUD's programs, several of which have been 
designated among the General Accounting Office's ``High Risk'' 
programs, vulnerable to substantial amounts of fraud and 
mismanagement.
      Other assumptions of the resolution are the following:
      --Providing $1.4 billion for Low-Income Home Energy 
Assistance Program [LIHEAP] funding to help low-income families 
heat their homes.
      --Funding the Special Supplemental Nutrition Program for 
Women, Infants and Children [WIC] at 7.25 million individuals 
per month, maintaining current program level.
      --Maintaining current law policies for the Food Stamp 
Program, which will result in $20 billion in outlays for 
benefits and program administration in fiscal year 2002.
      The resolution also accommodates the outlay effects 
related to the President's refundable tax proposals.
      Senate Amendment.--The Senate amendment does not revise 
2001 levels. For 2002, the resolution provides $278.8 billion 
in BA and $274.9 billion in outlays. Over 10 years, the 
resolution provides $3,210.0 billion in BA and $3,194.5 billion 
in outlays. The Senate adopted three amendments to the 
President's budget. In mandatory funds for 2002, the Senate 
amendment includes $319 million to extend TANF supplemental 
grants. In discretionary funds for 2002, the Senate amendment 
includes an additional $2.6 billion for Low Income Home Energy 
Assistance and $870 million for child care. The remaining 
difference between the House resolution and the Senate 
amendment is due to the Senate's treatment of advance 
appropriations and the greater amount of BA and outlays 
provided in the House resolution for the refundable portion of 
tax credits.
      Conference Agreement.--The Conference Agreement does not 
revise 2001 levels. For 2002, the resolution provides $273.8 
billion in BA and $272.1 billion in outlays. Over 10 years, it 
provides $3,222.5 billion in BA and $3,206.7 billion in 
outlays. The Conference Agreement adopts the Senate amendment 
regarding TANF supplemental grants.

                     FUNCTION 650: SOCIAL SECURITY

      Major Programs in Function.--Under current law, spending 
for Function 650, Social Security, will total $435.2 billion in 
BA and $433.1 billion in outlays for 2001. This function 
includes Social Security benefits and administrative expenses. 
Under provisions of the Budget Enforcement Act, Social Security 
tust funds are off-budget. The figures below reflect the on-
budget portions of this function, primarily payments from the 
general fund to the trust funds to credit the trust funds for 
income taxes collected on Social Security benefits. Both on-
budget and off-budget spending are shown, however, in the 
summary tables contained in the statement of managers 
accompanying the Conference Agreement.
      House Resolution.--For on-budget spending in this 
function, the resolution establishes levels of $11.0 billion in 
budget authority [BA] and outlays in fiscal year 2002, an 
increase of 12.2 percent in BA compared with fiscal year 2001. 
The on-budget function totals are $62.8 billion in BA and $62.7 
billion in outlays over 5 years, and $150.9 billion in BA and 
outlays over 10 years. The resolution supports the President's 
approach to Social Security reform through the following 
specific measures:
      --It assumes provisions of the Social Security and 
Medicare Lock-Box Act of 2001 (H.R. 2), recently passed by the 
House, which prohibits using Social Security surpluses for any 
purpose other than debt reduction or Social Security reform.
      --It assumes the President's proposal to provide $7.7 
billion for the SSA, an increase of $456 million, or 6.3 
percent, above fiscal year 2001. The increase will allow SSA to 
process 100,000 more initial disability claims in 2002 than in 
2001.
      --It makes no changes in current Social Security benefits 
or taxes.
      Senate Amendment.--The Senate amendment does not revise 
2001 on-budget totals of $9.8 billion in BA and outlays. For 
2002, the resolution assumes $10.9 billion in both BA and 
outlays. Over 10 years, the resolution provides $140.0 billion 
in both BA and outlays.
      The President's budget assumes no changes to Social 
Security benefits. Indirectly, however, the tax cut proposal 
would decrease both on-budget spending and the trust fund 
surplus. The President's tax proposal would reduce marginal 
income rates, thereby decreasing the amount of income taxes 
paid on Social Security benefits. This reduces on-budget 
payments from the general fund to the trust funds to credit the 
trust funds for income taxes paid on Social Security benefits 
by $11 billion over 10 years. The difference between the House 
resolution and the Senate amendment is that the House holds the 
Social Security trust funds harmless for the impact of the tax 
cut.
      Conference Agreement.--The Conference Agreement does not 
revise 2001 on-budget totals. The Senate recedes to the House 
and agrees to hold the trust funds harmless for the impact of 
any tax cuts resulting from this agreement. For 2002, the 
Conference Agreement assumes $11.0 billion in both BA and 
outlays. Over 10 years, it provides $150.9 billion in BA and 
$150.9 billion in outlays.

              FUNCTION 700: VETERANS BENEFITS AND SERVICES

      Major Programs in Function.--Under current law, spending 
for Function 700 Veterans Benefits and Services, will total 
$46.7 billion in BA and $45.9 billion in outlays for 2001. This 
budget function includes income security needs of disabled 
veterans, indigent veterans, and survivors of deceased veterans 
through compensation benefits, pensions, and life insurance 
programs. Major education, training, and rehabilitation and 
readjustment programs include the Montgomery GI Bill, the 
Veterans Educational Assistance program, and the Vocational 
Rehabilitation and Counseling program. Veterans can also 
receive guarantees on home loans. Roughly half of all spending 
in this function is for the Veterans Health Administration, 
which is comprised of hospitals, nursing homes, domiciliaries, 
and outpatient clinics.
      House Resolution.--The resolution establishes levels of 
$52.3 billion in BA and $51.6 billion in outlays in fiscal year 
2002, an increase of 12 percent in BA compared with fiscal year 
2001. The function totals are $278.7 billion in BA and $276.5 
in outlays over 5 years, and $594.0 billion in BA and $589.8 
billion in outlays over 10 years.
      The budget assumes the enactment of veterans' burial 
benefits enhancements in H.R. 801, the Veterans' Opportunity 
Act of 2001. It also assumes increases in mandatory spending 
for Montgomery GI Bill education benefits improvements. The 
budget assumes the permanent extension of several expiring 
provisions of existing law pertaining to veterans benefits. 
These include IRS income verification for means-tested veterans 
and survivor benefits; limiting VA pension to Medicaid 
recipients in nursing homes; and continuing current housing 
loan fees.
      Senate Amendment.--The Senate amendment assumes $53.8 
billion in BA and $53.1 billion in outlays in 2002, and $600.6 
billion in BA and $596.2 billion in outlays over 2002-2011. 
TheSenate adopted two amendments to increase funding for Veterans 
Medical Care. The first amendment added $1.718 billion in BA each year 
from 2002 to 2011 and the second amendment added, $967 million in BA 
for 2002.
      Conference Agreement.--For 2002, it sets forth $51.5 
billion in BA and $50.9 billion in outlays. Over 10 years, it 
provides $605.4 billion in BA and $600.9 billion in outlays.
      The agreement also assumes an increase in funding in 
mandatory spending for improvements to the Montgomery GI Bill 
and veterans burial benefits. The agreement also assumes an 
extension of several expiring provisions of the Omnibus Budget 
Reconciliation Act of 1990.

                FUNCTION 750: ADMINISTRATION OF JUSTICE

      Major Programs in Function.--Under current law, spending 
for Function 750, Administration of Justice, will total $30.6 
billion in BA and $30.0 billion in outlays for 2001. This 
function provides funding for federal law enforcement 
activities. These activities include criminal investigations by 
the Federal Bureau of Investigation and the Drug Enforcement 
Administration, and border enforcement and the control of 
illegal immigration by the Customs Service and the Immigration 
and Naturalization Service. Also funded through this function 
are the federal courts, federal prison operation and 
construction, and criminal justice assistance.
      House Resolution.--The resolution establishes levels of 
$30.9 billion in budget authority [BA] and $30.3 billion in 
outlays in 2002, an increase of 1.0 percent in BA compared with 
fiscal year 2001. The function totals are $166.6 billion in BA 
and $166.5 billion in outlays over 5 years, and $359.3 billion 
in BA and $356.8 billion in outlays over 10 years. The 
resolution accommodates the President's proposals to increase 
funding for the Drug Enforcement Agency by 9 percent; the 
Federal Bureau of Investigation by 8 percent; the Federal 
Bureau of Prisons by 8 percent; the U.S. Attorneys by 7 
percent; and to hire and train 550 new Border Control agents.
      Senate Amendment.--For 2002, the resolution sets forth 
$32.4 billion in BA and $31.8 billion in outlays. Over the 
2002-2011 ten year period, it sets forth $360.8 billion in BA 
and $358.3 billion in outlays. These levels reflect adoption of 
an amendment to increase Department of Justice state and local 
law enforcement assistance grant programs by $1.5 billion in 
2002.
      Conference Agreement.--The Conference Agreement sets 
forth $32.4 billion in BA and $31.4 billion in outlays for 
2002. Over the 2002-2011 ten year period, the agreement sets 
forth $378.5 billion in BA and $374.8 billion in outlays.

                    FUNCTION 800: GENERAL GOVERNMENT

      Major Programs in Function.--Under current law, spending 
for Function 800 General Government, will total $16.3 billion 
in BA and $16.1 billion in outlays for 2001. This function 
consists of the activities of the Legislative Branch, the 
Executive Office of the President, U.S. Treasury fiscal 
operations (including the Internal Revenue Service), personnel 
and property management, and general purpose fiscal assistance 
to states, localities, and U.S. territories.
      House Resolution.--The resolution establishes levels of 
$16.7 billion in budget authority [BA] and $16.3 billion in 
outlays in fiscal year 2002, an increase of 2.2 percent in BA 
compared with fiscal year 2001. The function totals are $84.2 
billion in BA and $83.0 billion in outlays over 5 years, and 
$176.7 billion in BA and $173.4 billion in outlays over 10 
years.
      Senate Amendment.--The Senate amendment does not revise 
the 2001 levels. For 2002, the resolution assumes $16.6 billion 
in BA and $16.3 outlays. Over 10 years, the resolution provides 
$176.7 billion in BA and $173.4 billion in outlays.
      Conference Agreement.--The Conference Agreement does not 
revise the 2001 levels. For 2002, the Conference Agreement 
assumes $16.5 billion in both BA and $16.2 billion outlays. 
Over 10 years, it provides $183.2 billion in BA and $179.5 
billion in outlays.

                       FUNCTION 900: NET INTEREST

      Major Programs in Function.--Under current law, on-budget 
spending for Function 900, Net Interest, will total $254.8 
billion in BA and outlays for 2002. Net interest is the 
interest paid for the federal government's borrowing minus the 
interest income received by the federal government. Net 
interest includes both on-budget and off-budget components, but 
the budget resolution text includes only the on-budget portion. 
Both on-budget and total interest spending are shown, however, 
in the summary tables contained in the statement of managers 
accompanying the Conference Agreement. Interest is a mandatory 
payment, with no discretionary component.
      House Resolution.--The accounting of net interest in the 
budget includes only the on-budget component of interest 
spending. This spending declines at a relatively steady but 
moderate pace from $274 billion in 2001 to $219 billion in 
2011. But even this decline understates--by significant 
amounts--the benefits to taxpayers of the debt reduction 
incorporated in this budget. When off-budget interest is taken 
into account (the increasing Federal credit accruing to the 
Social Security Trust Fund surplus in the form of government 
IOUs, and entered as negative spending), the overall net 
interest spending of the Federal Government is being virtually 
eliminated. It declines from $205 billion in 2001 to just $21 
billion. in 2011.
      Senate Amendment.--The Senate amendment revises the 2001 
on-budget levels to $275.5 billion in BA and outlays. For 2002, 
it sets forth on-budget levels of $262.7 billion in BA and 
outlays. Over ten years, it provides on-budget amounts of 
$2,440.3 billion in BA and outlays.
      Conference Agreement.--The Conference Agreement revises 
the 2001 on-budget levels to $275.5 billion in BA and outlays. 
For 2002, it sets forth on-budget levels of $262.2 billion in 
BA and outlays. Over ten years, it provides on-budget amounts 
of $2,425.7 billion in BA and outlays.

                        FUNCTION 920: ALLOWANCES

      Major Programs in Function.--Under current law, spending 
for Function 920, Allowances, will total -$0.5 billion in BA 
and -$0.3 billion in outlays for 2001. This function usually 
displays the budgetary effects of proposals that cannot be 
easily distributed across other budget functions. In the case 
of 2001, it reflects the 0.22% across-the-board cut that was 
enacted in the Omnibus Consolidated and Emergency Supplemental 
Appropriations for Fiscal Year 2001. But CBO could not display 
those cuts by account and by function until the Administration 
could display how the cuts would be implemented in the release 
of the full President's budget request.
      In past years, Function 920 has also included total 
savings or costs from proposals associated with emergency 
spending or proposals contingent on possible future events that 
have uncertain chances of occurring. Most recently, in the 
Senate amendment and Conference Agreement on budget resolutions 
for both 2001 and 2002, the figures expressed in the budget 
resolution text (as well as the summary tables) for all other 
budget functions reflect the total level of discretionary 
spending contemplated by the budget resolution (e.g., as 
described in section 203 of the Conference Agreement on the 
2002 budget). These levels are higher than the statutory cap on 
discretionary spending in place for those years. But because a 
budget resolution would be out of order in the Senate if it 
contains a level of discretionary spending higher than the 
statutory cap, the figures in the budget resolution text in 
Function 920 have had to reflect a negative entry that reduces 
the net level of discretionary spending from the contemplated 
level (as aggregated across all other budget functions) to the 
statutory level. The summary tables, however, omit this 
negative entry for Function 920 so that their aggregates 
reflect the levels ultimately intended by the resolution.
      House Resolution.--For discretionary spending, the budget 
resolution calls for $5.0 billion in budget authority [BA] and 
$1.8 billion in outlays in fiscal year 2002. The 5-year 
spending totals are $29.1 billion in BA and $22.4 billion in 
outlays; and the 10-year totals are $64.0 billion in BA and 
$55.5 billion in outlays. There is no mandatory spending in 
this function.
      The funds identified constitute primarily a set-aside 
fund for unanticipated emergency needs during the fiscal year.
      Senate Amendment.--The Senate amendment revises the 2001 
levels to $80.5 billion in BA and $80.7 billion in outlays in 
2001, reflecting the Senate's adoption of an amendment to 
further increase a tax refund for that year. For 2002, the 
resolution sets forth -$6.1 billion in BA and -$8.6 billion in 
outlays. The resolution provides -$15.9 billion in BA and 
-$23.1 billion in outlays over 2002-2010. These figures (as 
shown in the summary tables) reflect the effect of 13 
amendments adopted by the Senate that sought to suggest an 
increase in spending in other functions and that appeared to 
``offset'' such increased spending by bookkeeping the same 
amount with a negative value in Function 920. These figures do 
not include the entry necessary to reduce the overall 
discretionary level to the statutory cap.
      Conference Agreement.--The Conference Agreement revises 
the 2001 levels to $84.5 billion in BA and $84.7 billion in 
outlays. For 2002, the resolution provides -$0.7 billion in BA 
and -$0.6 billion in outlays. Over 10 years, it provides -$7.2 
billion in BA and -$7.7 billion in 23 outlays. Regarding the 
language adopted by the Senate amendment (included in the 
resolution text setting forth levels for this function) that 
directed how the tax rebate for 2001 was to be provided, the 
Senate receded to the House.

            FUNCTION 950: UNDISTRIBUTED OFFSETTING RECEIPTS

      Major Programs in Function.--Under current law, receipts 
in Function 950, Undistributed Offsetting Receipts, will total 
about $46.2 billion (negative BA and outlays) for 2001. 
Function 950 includes both on-budget and off-budget components, 
but the budget resolution text includes only the on-budget 
portion. Both on-budget and total receipts are shown, however, 
in the summary tables contained in this Conference Agreement. 
This function records offsetting receipts (receipts, not 
federal revenues or taxes, that the budget shows as offsets to 
spending programs) that are too large to record in other budget 
functions. Such receipts are either intrabudgetary (a payment 
from one federal agency to another, such as agency payments to 
the retirement trust funds) or proprietary (a payment from the 
public for some type of business transaction with the 
government). The main types of receipts recorded as 
``undistributed'' in this function are: the payments federal 
agencies make to retirement trust funds for their employees, 
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 the public property 
or resources, such as the electromagnetic spectrum.
      House Resolution.--The resolution calls for -$42.3 
billion in budget authority [BA] and outlays in fiscal year 
2002, a decrease of 10.6 percent in BA compared with fiscal 
year 2001, (or an increase of 10.6 percent in receipts compared 
with fiscal year 2001). The 5-year function totals are -$239.8 
billion in BA and outlays; and the 10-year totals are -$492.3 
billion in BA and outlays.
      These totals comprise entirely of mandatory spending. 
There is no discretionary spending in this function.
      The resolution does not assume lease bonuses from the 
Arctic National Wildlife Refuge or an analog spectrum license 
fee or other spectrum offsets. It also assumes permanent 
extension of the Balanced Budget Act [BBA] provision that 
increased, by 1.51 percentage points, Federal agency 
contributions to the Civil Service Retirement and Disability 
Trust Fund [CSRDF] on behalf of their CSRS-participant 
employees. That provision had been scheduled to sunset after 
fiscal year 2002.
      Senate Amendment.--The Senate amendment does not revise 
the 2001 levels. For 2002, the resolution provides -$38.8 
billion in BA and outlays. Over 10 years, the resolution 
provides -$495.7 billion in BA and outlays. The Senate 
amendment is the same as the House resolution, except that it 
reflects both the President's proposals to delay certain 
spectrum auctions and to impose a fee on broadcasters using 
spectrum channels for analog broadcasts to encourage the 
transition to digital television.
      Conference Agreement.--The Conference Agreement does not 
revise the 2001 levels. For 2002, the resolution provides 
-$38.8 billion in BA and outlays. Over 10 years, it provides 
-$494.1billion in BA and outlays. The conferees agree to the 
President's proposal to delay certain spectrum auctions that was 
assumed in the Senate amendment, but do not agree to the President's 
proposal for an analog lease fee.

                                Revenues

      Federal revenues are taxes and other collections from the 
public that result from the government's sovereign or 
governmental powers. Federal revenues include individual income 
taxes, corporate income taxes, social insurance taxes, excise 
taxes, estate and gift taxes, customs duties and miscellaneous 
receipts (which include deposits of earnings by the Federal 
Reserve System, fines, penalties, fees for regulatory services, 
and others).
      Under current law, federal tax collections are projected 
to total $28 trillion over the next ten years. This year, total 
revenues are projected to equal 20.7 percent of GDP, slightly 
below the World War II record level of 20.9 percent. Over the 
projection period 2002-2011, under current law, total revenues 
are projected to average 20.3 percent of GDP, far above 
historical averages for any time period, including times of 
war.
      House Resolution.--The House resolution provides for 
$1.62 trillion in tax reduction over the next 10 years. This 
level would accommodate the President's priority tax cut 
proposals: reducing marginal tax rates, doubling the per-child 
tax credit; providing relief from the marriage penalty, and 
providing death tax relief. It also provides for additional tax 
reduction, subject to the discretion of the Committee on Ways 
and Means. Such measures might include charitable deduction 
expansion; refundable tax credits for private health insurance; 
Education Savings Account expansion and other education 
provisions; Individual Retirement Account [IRA] increases and 
other pension reform; and permanent extension of the research 
and development [R&D] tax credit. (The refundable elements of 
the President's tax proposals, which are treated as spending, 
appear in the functional areas to which they apply.) It also 
assumes, but does not reconcile, the revenue effect of a 
proposed reduction in fees levied by the Securities and 
Exchange Commission, and a requirement that the Federal Reserve 
pay interest on deposits at the Reserve. The resolution also 
establishes a reserve fund for further tax reduction should the 
Congressional Budget Office's summer update indicate additional 
non-Social Security surpluses. The reserve fund could allow for 
measures such as extension of Medical Savings Accounts, repeal 
of transportation deficit reduction fuel taxes, and reduction 
of the capital gains rate.
      Senate Amendment.--The Senate amendment revises the 2001 
on-budget revenue level to $1,630.3 billion. It sets forth on-
budget revenues of $1,644.8 billion in 2002, and $20,007.1 
billion over the ten years 2002-2011. The Senate amendment 
assumes a tax reduction, relative to the CBO baseline, of 
$1,188.1 billion over the period 2002-2011, about $450 billion 
less than the tax relief assumed in the House resolution. The 
Senate amendment includes an allowance (in Function 920) for a 
surplus refund of up to $85 billion in 2001. The refund 
represents about 88 percent of the $96 billion non-Social 
Security, non-Hospital Insurance surplus projected under 
current law for 2001. The tax relief assumed in the Senate 
amendment represents just four percent of all projected 
revenues over the next ten years, and less than one percent of 
GDP over the next ten years.
      Conference Agreement.--The Conference Agreement includes 
language for reconciliation of tax relief including a surplus 
refund of $1,350 billion over the period 2001-2011. In 
addition, the Conference Agreement accepts the House position 
to assume a one-year extension of tax provisions expiring in 
2001, legislation to reduce SEC fees, and legislation to permit 
the Federal Reserve System to pay interest on reserve balances. 
These three provisions would not be reconciled, and are assumed 
to reduce revenues by $19 billion over ten years. The total 
amount of tax relief, surplus refund, and other revenue changes 
assumed in the Conference Agreement, both reconciled and non-
reconciled, is $1,369 billion over the 2001-2011 period.

                              Debt Levels

      Debt held by the public peaked at $3.773 trillion in 
1997. At the end of 2001, debt held by the public is projected 
to be $3.243 trillion, $530 billion lower than just four years 
ago. This is a reduction of 14 percent from peak levels.
      The table on the following page shows the levels of debt 
held by the public resulting from the policies assumed in the 
Conference Agreement. The policies assumed in the Conference 
Agreement result in a reduction in debt in every year through 
2011 and total debt reduction of $2.425 trillion from the end 
of 2001 through the end of 2011. Debt held by the public falls 
to 4.8 percent of GDP, its lowest level since 1916, prior to 
World War I.
      The Conference Agreement proposals result in retiring the 
maximum amount of public debt that can reasonably be retired. 
Under the budget resolution, the debt remaining in 2010 and 
2011 is considered (by CBO's estimates) to be the minimum debt 
level. It consists mostly of marketable bonds that will not 
have matured and that will be too expensive to buy back, 
savings bonds, and special bonds for State and local 
governments.

                         2002 Budget Resolution

                              [$ billions]

      Debt Held by the Public: 2001--3,243.2; 2002--3,037.9; 
2003--2,810.7; 2004--2,563.6; 2005--2,303.1; 2006--2,022.5; 
2007--1,702.9; 2008--1,350.0; 2009--947.3; 2010--878.0; 2011--
818.0.

                      Reconciliation Instructions

      Under section 310(a) of the Budget Act, the budget 
resolution may include directives to the committees of 
jurisdiction to make revisions in law necessary to accomplish a 
specified change in spending or revenues. If the resolution 
includes directives to only one committee of the House or 
Senate, then that committee is required to directly report to 
its House legislative language of its design that would 
implement the spending or revenue changes provided for in the 
resolution. Any bill considered pursuant to a reconciliation 
instruction is subject to special procedures set forth in 
sections 310 and 313 of the Budget Act.
House resolution
      Section 4 provides for five different reconciliation 
bills. It contains directives to the Ways and Means Committee 
to report three tax-only bills to the floor by May 2nd, May 
23rd, and June 20th of fiscal year 2001. Additional directives 
to the Ways and Means and the Energy and Commerce Committees 
are designed to allow those committees to reform the Medicare 
program and provide a prescription drug benefit. The Medicare-
related legislation must be submitted to the House Budget 
Committee no later than July 24, 2001. An additional omnibus 
bill will be composed of submissions from six different 
committees that will contain both spending and revenue changes. 
These Committees are required to submit their recommendations 
to the Budget Committee by September 11, 2001.
Senate amendment
      The Senate amendment provides a reconciliation 
instruction to the Senate Committee on Finance to reduce 
revenues for the period of fiscal years 2001 through 2011 by 
not more than the amount of revenue reductions set out in the 
revenue aggregates in the resolution. It also instructs the 
Committee on Finance to increase outlays by not more than $60 
billion for the period of fiscal years 2001 through 2011. This 
reconciliation instruction was added by an amendment offered by 
Senator Domenici. The reduction in the revenue aggregates plus 
the $60 billion in outlays would permit up to $1.248 trillion 
in ``tax relief'' over this 11-year period.
Conference agreement
      The Conference Agreement provides a reconciliation 
instruction to the House Committee on Ways and Means and to the 
Senate Committee on Finance to report, by May 18, 2001, 
legislation to reduce revenues by not more than $1,250 billion 
for the period of fiscal years 2001 through 2011. It also 
instructs the House Committee on Ways and Means and the Senate 
Committee on Finance to report, by May 18, 2001, legislation to 
increase outlays by not more than $100 billion for the period 
of fiscal years 2001 through 2011. The total reconciliation 
instruction to both the House Committee on Ways and Means and 
the Senate Committee on Finance is for $1,350 billion including 
a $100 billion economic stimulus package to be distributed over 
the next two years.

                              Allocations

      As required in section 302 of the Budget Act, the joint 
statement of the managers includes an allocation, based on the 
Conference Agreement, of total budget authority and total 
budget outlays among each of the appropriate House and Senate 
committees.
      The allocations are as follows:
    
    
      The Conferees agree that it would be ideal to enforce 
this resolution using CBO's best cost estimates based on its 
most recent baseline. Typically, CBO prepares a preliminary 
baseline published in January and then a revised baseline in 
March that incorporates information CBO learns in reestimating 
the President's budget, which is usually released in early 
February. Almost always, the budget resolution is based on 
CBO's revised baseline. This year, however, the President's 
budget was not released until April 9, so CBO will not release 
its full analysis of the President's budget and accompanying 
revised baseline until May 18. Thus, this budget resolution is 
still based on CBO's preliminary baseline. Therefore the 
Conferees intend that the Chairmen of the Committees on the 
Budget may make necessary adjustments only after CBO publishes 
its analysis of the President's budgetary proposals for fiscal 
year 2002 including its revised baseline and only to reflect 
the revised baseline, and may use CBO's estimates (that are 
consistent with the revised baseline) for purposes of enforcing 
the budget resolution.
      The Conferees also agree that transfers from non-
budgetary governmental entities such as the Federal Reserve 
Banks shall not be used to offset increased on-budget spending 
when such transfers produce no real budgetary effects. It has 
long been the view of both Committees on the Budget that 
transfers of Federal Reserve surpluses to the Treasury are not 
valid offsets for increased spending. Nonetheless, such 
transfers have been legislated in the past--as recently as the 
fall of 1999. The Conferees agree to a scoring rule to make 
clear that such transfers will not be taken into account when 
determining compliance with the various Budget Act and Senate 
paygo points of order.

                  Rulemaking and Budgetary Procedures

                         enforcement procedures

      The Budget Act contains procedures for the enforcement of 
the levels contained therein. In addition, many budget 
resolutions have contained additional enforcement procedures. 
In general enforcement is accomplished by setting forth new 
scoring rules or new points of order which can be raised by any 
member of either House. Subtitle A of title II of the 
Conference Agreement contains 4 such provisions.
House resolution
            Section 5: Reserve Fund for Emergencies
      Section 5 modifies Congressional procedures related to 
emergency spending in fiscal year 2001. It establishes a 
separate allocation to the Appropriations Committee for 
emergencies of $5.6 billion. In lieu of the current practice of 
automatically increasing the appropriate levels in the budget 
resolution for designated emergencies, it permits the 
Appropriations Committee to make such adjustments only if 
emergency-designated appropriations meet a statutory definition 
of an emergency and key disaster accounts have been fully 
funded.
            Section 13: Restrictions on Advance Appropriations
      Section 13 establishes a scoring rule and budgetary 
control designed to limit advance appropriations. It provides 
that for purposes of enforcing the budget resolution, advance 
appropriations are to be scored in the year in which they are 
enacted. Under current scorekeeping conventions, appropriations 
are scored in the year in which they are available for 
obligation. An exception is provided for programs for which 
advance appropriations do not exceed a specified level that 
will be identified in the joint statement of managers.
            Section 12: Compliance with Section 13301
      Section 12 provides the House the authority to include 
the administrative expenses related to Social Security in the 
302(a) allocation to the Appropriations Committee. As part of 
an agreement between the House and Senate Budget Committees in 
2000, the administrative expenses of the Social Security trust 
funds are no longer included in the budget resolution. The 
Budget Committees, however, continue to include these expenses 
in the 302(a) allocations of the Appropriations Committee 
because they are controlled through the annual appropriations 
process. Absent the authority provided under section 12, these 
expenses could not be included in the 302(a) allocations 
because the allocations must be consistent with the amounts set 
forth in the budget resolution.
Senate amendment
            Section 201: Restrictions on Advance Appropriations
      The Senate amendment contains a new scoring rule with 
respect to advance appropriations. The new rule provides that 
both the BA and the outlays for an advance appropriation will 
be scored for the budget year regardless of the fiscal year in 
which the funds actually become available for obligation. An 
exception is provided for advance appropriations which provide 
full funding for a capital project. The exception is intended 
to apply to the federal buildings fund within the General 
Services Administration and not as a means of providing 
incremental funding to other federal acquisitions.
            Section 202: Mechanism for implementing increase of fiscal 
                    year 2002 discretionary spending limits
      The Senate amendment contains a mechanism virtually 
identical to that which was included in section 206 of the 
fiscal year 2001 budget resolution. The Senate amendment 
provides the Chairman of the Senate Committee on the Budget the 
authority to increase the section 302(a) allocation to the 
Committee on Appropriations after the statutory discretionary 
spending limit for fiscal year 2002 (set forth in section 251 
of the Balanced Budget and Emergency Deficit Control Act of 
1985) has been amended. Such adjustment is limited to the 
levels set forth in the mechanism. As passed the Senate, the 
allocation may be adjusted up to $689.2 billion in BA and 
$666.5 in outlays for the general discretionary category, $28.5 
billion in outlays for the highway category, $5.3 billion in 
outlays for the mass transit category, and $1.76 billion in BA 
and $1.38 in outlays for the conservation category. Note that 
with an exception for a necessary adjustment within Function 
920 (to bring the Senate-passed resolution in compliance with 
section 312(b) of the Budget Act) these numbers are intended to 
reflect the sum of the functional totals. However due to 
mathematical inconsistency within some of the amendments 
adopted during the Senate debate of the resolution, this may 
not be the case.
            Section 207: Limitation on consideration of amendments 
                    under reconciliation and a budget resolution
      The Senate amendment contains language which modifies the 
time for debate on budget resolutions, reconciliation bills, 
and amendments thereto. The language was added by an amendment 
offered by Senator Byrd. The Senate amendment modifies the 
procedural rules as follows: (1) limits overall debate time 
(including the offering of amendments) for both budget 
resolutions and reconciliation bills to 50 hours (current rules 
permit 50 hours for budget resolutions and 20 for 
reconciliation bills); (2) eliminates the non-debatable motion 
to reduce the time, so that time may only be reduced by 
unanimous consent; (3) reduces time on 1st degree amendments 
from 2 hours to 1 hour, and reduce time on amendments to 
amendments (and debatable motions and appeals) from 1 hour to 
30 minutes; (4) requires that 1st degree amendments be offered 
or filed with the Clerk prior to the end of the 10th hour of 
consideration and that 2nd degree amendments be offered or 
filed with the Clerk prior to the end of the 20th hour of 
consideration; (5) requires that after 40 hours of 
consideration, the resolution be set aside for 1 calendar day; 
(6) provides that waiver or appeal from these new rules 
requires 60 votes in the Senate.
Conference Agreement
            Section 201: Restrictions on Advance Appropriations--House
      Section 201 of the Conference Agreement adopts a 
limitation on advance appropriations similar to the approach 
taken in last year's budget resolution. Unlike last year's 
resolution, the same rule will govern in the House of 
Representatives. The Conference Agreement prohibits any advance 
appropriation for 2003 and any year thereafter with two 
exceptions: (1) advance appropriations may be provided for the 
accounts in the appropriations bills listed below, provided 
that their sum does not exceed $23.159 billion in budget 
authority for 2003 and (2) advance appropriations may be 
provided for the Corporation for Public Broadcasting.
      Accounts Identified for Advance Appropriations:

Commerce, Justice, State
  Patent and Trademark Office (13 1006 01 376)
  Legal Activities and U.S. Marshals, Antitrust Division (15 
            0319 01 752)
  U.S. Trustee System (15 5073 02 752)
  Federal Trade Commission (29 0100 01 376)
Interior
  Elk Hills (89 5428 02 271)
Labor, Health and Human Services, Education
  Employment and Training Administration (16 0174 01 504)
  Health Resources (75 0350 01 551)
  Low Income Home Energy Assistance Program (75 1502 01 609)
  Child Care Development Block Grant (75 1515 01 609)
  Elementary and Secondary Education [reading excellence] (91 
            0011 01 501)
  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)
Treasury, General Government
  Payment to Postal Service (18 1001 01 372)
  Federal Building Fund (47 4542 04 804)
Veterans, Housing and Urban Development
  Section 8 Renewals (86 0319 01 604)

      The Conference Agreement adopts the definition of 
``advance appropriation'' that was used in section 203(b)(2) of 
last year's budget resolution (which was the provision 
applicable in the House of Representatives). Both the overall 
cap for fiscal year 2002 (with the specified accounts) and the 
prohibition (and single exception) for subsequent fiscal years 
will be enforced in the House by points of order. This 
limitation is enforced by points of order, which may be raised 
against advance appropriations not falling within the 
exception. 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, continues to be considered.
            Section 202: Restrictions on Advance Appropriations--Senate
      Section 201(a) of the Conference Agreement adopts a 
limitation on advance appropriations similar to the approach 
taken in last year's budget resolution. The Conference 
Agreement prohibits any advance appropriation for 2003 and any 
year thereafter with two exceptions: (1) advance appropriations 
may be provided for the accounts in the appropriation bills 
listed below, provided that their sum does not exceed $23.159 
billion in budget authority for 2003 and (2) advance 
appropriations may be provided for the Corporation for Public 
Broadcasting.
      Accounts Identified for Advance Appropriations:

Commerce, Justice, State
  Patent and Trademark Office (13 1006 01 376)
  Legal Activities and U.S. Marshals, Antitrust Division (15 
            0319 01 752)
  U.S. Trustee System (15 5073 02 752)
  Federal Trade Commission (29 0100 01 376)
Interior
  Elk Hills (89 5428 02 271)
Labor, Health and Human Services, Education
  Employment and Training Administration (16 0174 01 504)
  Health Resources (75 0350 01 551)
  Low Income Home Energy Assistance Program (75 1502 01 609)
  Child Care Development Block Grant (75 1515 01 609)
  Elementary and Secondary Education [reading excellence] (91 
            0011 01 501)
  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)
Treasury, General Government
  Payment to Postal Service (18 1001 01 372)
  Federal Building Fund (47 4542 04 804)
Veterans, Housing and Urban Development
  Section 8 Renewals (86 0319 01 604)

      The Conference Agreement adopts the definition of 
``advance appropriation'' that was used in section 203(b)(2) of 
last year's budget resolution (which was the provision 
applicable in the Senate). Both the overall cap on advanced 
appropriations for fiscal year 2002 for the specified accounts 
and the prohibition for subsequent fiscal years will be 
enforced in the Senate by a 60-vote point of order. 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, continues 
to be considered.
            Section 203: Mechanism for Implementing Increase of Fiscal 
                    Year 2002 Discretionary Spending Limits
      Section 203 of the Conference Agreement retains the 
language from section 202 of the Senate amendment. Virtually 
identical language was included in section 206 of last year's 
budget resolution. It provides the Chairman of the Senate 
Committee on the Budget the authority to increase the section 
302(a) allocation to the Committee on Appropriations after the 
statutory discretionary spending limit for fiscal year 2002 
(set forth in section 251 of the Balanced Budget and Emergency 
Deficit Control Act of 1985) has been amended. The Conference 
Agreement permits the allocation to be adjusted up to $659.850 
billion in BA and $647.780 in outlays for the general 
discretionary category, $28.489 billion in outlays for the 
highway category, $5,275 billion in outlays for the mass 
transit category, and $1.760 billion in BA and $1.232 in 
outlays for the conservation category. Note that with an 
exception for a necessary adjustment within Function 920 (to 
bring the Conference Agreement in to compliance with section 
312(b) of the Budget Act), the functional totals of this 
Conference Agreement reflect a level of discretionary spending 
equal to the levels provided in this section.
      Section 203 of the Conference Agreement also includes a 
mechanism for establishing a budget authority firewall in the 
Senate with respect to defense and nondefense discretionary 
spending. This firewall would be enforced by a 60-vote point of 
order only after the section 251 discretionary spending limit 
for 2002 has been amended. Similar language was included in 
section 207 of last year's budget resolution. The Conferees 
feel that a firewall is necessary to add credibility to the 
total level of discretionary spending provided for in this 
resolution given the additional authority set out in section 
218 of the resolution to increase the section 302(a) allocation 
to the Committee on Appropriations for additional defense 
spending. The Conferees stress the need for the President to 
transmit to Congress a amendment requesting additional 
resources for defense after the completion of the President's 
National Defense Review prior to the Chairman of the Budget 
Committee considering any increase in the 302(a) allocation 
pursuant to section 218.
            Section 204: Compliance with Section 13301 of the Budget 
                    Enforcement Act of 1990
      Section 204 of the Conference Agreement retains the 
language of section 12 of the House Resolution regarding the 
budgetary treatment in the House of discretionary spending for 
the Social Security Administration. Similar language was 
included in section 231 of last year's resolution.
            Other issues
      The Conference Agreement does not include any language 
reflecting section 206 of the Senate amendment which provided 
limitations on consideration of amendments to budget 
resolutions and reconciliation bills in the Senate.
            Senate Pay-as-you-go Point of Order
      For convenience, and in keeping with previous years, the 
text of the Senate's current Pay-go point of order (see Section 
207 of H. Con. Res. 68 (106th Cong. 1st Sess.) and the starting 
balances for the Senate pay-go scorecard are set out below. The 
starting balance represents the Congressional Budget Office's 
baseline estimate of the on-budget surpluses over the ten-year 
period. The Conferees note that the levels of spending and 
revenue reductions set out in the Conference Agreement, if 
enacted, would not result in a violation of the Senate pay-as-
you-go point of order.

SEC.   . PAY-AS-YOU-GO POINT OF ORDER IN THE SENATE.

      (a) Purposes.--The Senate declares that it is essential 
to--
            (1) ensure continued compliance with the balanced 
        budget plan set forth in this resolution; and
           (2) continue the pay-as-you-go enforcement system.
      (b) Point of Order.--
            (1) In general.--It shall not be in order in the 
        Senate to consider any direct spending or revenue 
        legislation that would increase the on-budget deficit 
        or cause an on-budget deficit for any one of the three 
        applicable time periods as measured in paragraphs (5) 
        and (6).
            (2) Applicable time periods.--For the purposes of 
        this subsection the term ``applicable time period'' 
        means any one of the three following time periods:
                    (A) The first year covered by the most 
                recently adopted concurrent resolution on the 
                budget.
                    (B) The period of the first 5 fiscal years 
                covered by the most recently adopted concurrent 
                resolution on the budget.
                    (C) The period of the 5 fiscal years 
                following the first 5 fiscal years covered by 
                the most recently adopted concurrent resolution 
                on the budget.
            (3) Direct-spending legislation.--For purposes of 
        this subsection and except as provided in paragraph 
        (4), the term ``direct-spending legislation'' means any 
        bill, joint resolution, amendment, motion, or 
        conference report that affects direct spending as that 
        term is defined by and interpreted for purposes of the 
        Balanced Budget and Emergency Deficit Control Act of 
        1985.
            (4) Exclusion.--For purposes of this subsection the 
        terms ``direct-spending legislation'' and ``revenue 
        legislation'' do not include--
                    (A) any concurrent resolution on the 
                budget; or
                    (B) any provision of legislation that 
                affect the full funding of, and continuation 
                of, the deposit insurance guarantee commitment 
                in effect on the date of enactment of the 
                Budget Enforcement Act of 1990.
            (5) Baseline.--Estimates prepared pursuant to this 
        section shall--
                    (A) use the baseline used for the most 
                recently adopted concurrent resolution on the 
                budget, and
                    (B) be calculated under the requirements of 
                subsection (b) through (d) of section 257 of 
                the Balanced Budget and Emergency Deficit 
                Control Act of 1985 for fiscal years beyond 
                those covered by that concurrent resolution on 
                the budget.
            (6) Prior surplus.--If direct spending or revenue 
        legislation increases the on-budget deficit or cause an 
        on-budget deficit when taken individually, then it must 
        also increase the on-budget deficit or causes an on-
        budget deficit when taken together with all direct 
        spending and revenue legislation enacted since the 
        beginning of the calendar year not accounted for in the 
        baseline under paragraph (5)(A), except that the direct 
        spending or revenue effects resulting from legislation 
        enacted pursuant to the reconciliation instruction 
        included in that concurrent resolution on the budget 
        shall not be available.
      (c) Waiver.--This section may be waived or suspended in 
the Senate only by the affirmative vote of three-fifths of the 
Members, duly chosen and sworn.
      (d) Appeals.--Appeals in the Senate from the decisions of 
the Chair relating to any provision of this section shall be 
limited to 1 hour, to be equally divided between, and 
controlled by, the appellant and the manager of the bill or 
joint resolution, as the case may be. An affirmative vote of 
three-fifths of the Members of the Senate, duly chosen and 
sworn, shall be required in the Senate to sustain an appeal of 
the ruling of the Chair on a point of order raised under this 
section.
      (e) Determination of Budget Levels.--For purposes of this 
section, the levels of new budget authority, outlays, and 
revenues for a fiscal year shall be determined on the basis of 
estimates made by the Committee on the Budget of the Senate.
      (f) Conforming Amendment.--Section 23 of H. Con. Res. 218 
(103rd Cong.) is repealed.
      (g) Sunset.--Subsections (a) through (e) of this section 
shall expire September 30, 2002.

                         2002 Budget Resolution

                              [$ billions]

      Baseline on-budget surpluses: 2002--142.097; 2003--
171.286; 2004--195.686; 2005--211.605; 2006--266.799; 2007--
316.203; 2008--359.195; 2009--416.669; 2010--484.265; 2011--
558.187.

                             Reserve Funds

      Reserve funds are special procedures which permit the 
consideration of specified legislation by making available the 
resources that are assumed within the aggregate levels of the 
budget resolution, but are not initially allocated to the 
appropriate committee of jurisdiction. In general, such 
provisions provide that upon the reporting of the legislation 
by the appropriate committee, the Chairmen of the Committees on 
the Budget may adjust the appropriate allocations to 
accommodate the legislation provided that all the terms of the 
reserve fund have been satisfied. The Chairmen intend to make 
reserve fund adjustments only for legislation reported by the 
appropriate committee. Subtitle B of Title II of the Conference 
Agreement contains nine reserve funds.
House resolution
            Section 6: Strategic Reserve
      Section 6 establishes a reserve fund for Department of 
Defense spending following the President's National Defense 
Review and a potential reauthorization of the Federal 
Agriculture Improvement Act of 1996. It could also accommodate 
other legislation. In order to be eligible for adjustments 
under this section, the legislation must be reported before 
July 11, 2001.
            Section 7: Supplemental Reserve for Medicare
      Section 7 establishes a reserve fund to accommodate a 
potentially more expensive Medicare bill than was reflected in 
the budget resolution. The Budget Committee chairman is 
authorized to make the adjustment for reconciliation 
legislation that provides for Medicare reform and prescription 
drug coverage. The Budget Committee chairman may increase the 
302(a) allocations to the appropriate committees of 
jurisdiction by the amount of the Congressional Budget Office 
[CBO] reestimate of the cost of the President's Medicare plan 
or an alternative plan submitted by the Ways and Means and 
Commerce Committees. As a further limit on the cost of the 
bill, the adjustment under this section may not cause the on-
budget surplus in the budget resolution to be less than $36 
billion in fiscal year 2002 and comparable levels in fiscal 
years 2003 through 2010.
            Section 8: Reserve for FY 2001
      Section 8 establishes a reserve fund for fiscal year 
2001. The Chairman of the Budget Committee is authorized to 
make adjustments for Department of Defense shortfalls, 
emergency agricultural assistance, and other measures. It also 
limits the amount of the adjustments to the amount the bill 
exceeds the Committee's allocation. The adjustments may also 
not cause the on-budget surplus to be less than $29 billion in 
fiscal year 2001.
            Section 9: Reserve for Education
      Section 9 establishes a reserve fund to allow additional 
spending for programs authorized by the Individuals with 
Disabilities Education Act (IDEA) in fiscal year 2001. It 
permits the Budget Committee chairman to increase the 
allocation when an appropriation increases spending for IDEA 
above the baseline level of $6.37 billion. The adjustment may 
not exceed $1.25 billion.
            Section 10: Reserve for Additional Tax Cuts and Debt 
                    Reduction
      Section 10 permits the budget resolution to be adjusted 
to accommodate a larger tax cut or debt reduction if the 
surplus estimates increase in the Congressional Budget Office 
update of its budget and economic forecast for any fiscal years 
2001 through 2011. If the estimate of the on-budget surplus 
increases, the chairman of the Budget Committee may increase 
the tax cut or reduce the debt levels by up to the amount of 
the increase in the surplus.
Senate amendment
            Section 203: Reserve fund for prescription drugs and 
                    Medicare reform in the Senate
      The Senate amendment contains language creating a reserve 
fund for Medicare reform and a prescription drug benefit. This 
reserve fund replaced the language in the initial substitute 
amendment offered by Senator Domenici and was added by an 
amendment offered by Senator Grassley. The Senate amendment 
permits budget resolution levels and committee allocation to be 
adjusted for legislation reported from Senate Committee on 
Finance that reforms medicare and improves access to 
prescription drugs for beneficiaries. The adjustments may not 
exceed the Congressional Budget Offices's cost estimate of 
either a plan submitted by the President or a comparable plan 
submitted by the Chairman of the Committee on Finance and in no 
case may total spending exceed $300 billion for the period of 
fiscal years 2002 through 2011. Note that the aggregates and 
function levels in the Senate amendment assume only $153 
billion (of the potential $300 billion) over ten years.
            Section 206: Reserve fund for Medicare payments to home 
                    health agencies
      The Senate amendment contains language creating a reserve 
fund to restore Medicare payments to home health agencies. This 
reserve fund was added by an amendment offered by Senator 
Collins. The Senate amendment permits budget resolution levels 
and committee allocation to be adjusted for legislation 
reported from Senate Committee on Finance that repeals the 
scheduled 15% reduction in home health payments. Adjustments 
may not exceed $4 billion for the period of fiscal years 2002 
through 2006 and $13.7 billion for the period of fiscal years 
2002 through 2011. In addition, no adjustments may be made if 
the cost of such legislation, taken together with all 
previously enacted legislation would reduce the on-budget 
surplus before the level of the Medicare HI Trust Fund surplus 
for any fiscal year covered by this budget resolution. Note 
that the function levels and aggregates in the Senate amendment 
assume the reductions would have gone into effect.
            Section 208: Reserve fund for the payment of retired pay 
                    and compensation to disabled military retirees
      The Senate amendment contains language creating a reserve 
fund to provide for the payment of retired pay and veterans' 
disability benefits to disabled military retirees. This reserve 
fund was added by an amendment offered by Senator Reid. The 
Senate amendment permits budget resolution levels and committee 
allocation to be adjusted for legislation reported from Senate 
Committee on Armed Services (and the appropriate committee of 
the House of Representatives) that funds the payment of full 
retired pay and veterans' disability benefits to disabled 
military retirees. The amendment does not, however, make any 
provision for the additional $14.4 billion in discretionary 
spending that the Congressional Budget Office has estimated 
would also be required to fully fund these benefits. 
Adjustments may not exceed $2.9 billion for fiscal year 2002 or 
$40 billion for the period of fiscal years 2002 through 2011. 
In addition, no adjustment may be made if the sum of the cost 
of this legislation taken together with previously enacted 
legislation would reduce the level of the Medicare Hospital 
Insurance trust fund for any fiscal year covered by the budget 
resolution.
            Section 209: Reserve fund for refundable tax credits
      The Senate amendment contains language which in effect 
provides ``fungibility'' between outlays and revenues in a 
reconciliation tax legislation. This provision was added by an 
amendment offered by Senator Bingaman. The Senate amendment 
permits budget resolution levels, committee allocation, and 
reconciliation instruction to be adjusted for legislation 
reported from the Senate Committee on Finance that provides 
refundable tax credits. Adjustments are limited such that the 
sum of the spending increase and revenue reductions must not 
exceed the total amount of the reconciliation instruction. This 
will have the same effect as the ``fungibility'' language set 
out in section 310(c) of the Budget Act--and is superfluous in 
this case since the reconciliation instruction in the Senate 
amendment to Senate Finance contains an outlay component.
            Section 212: Reserve fund for Family Opportunity Act
      The Senate amendment contains a reserve fund to 
facilitate the consideration of the Family Opportunity Act in 
the Senate. This reserve fund was added by an amendment offered 
by Senator Grassley. The Senate amendment permits budget 
resolution levels and committee allocation to be adjusted for 
legislation reported from Senate Committee on Finance that 
expands Medicaid coverage for children with special needs to 
permit their parents to purchase such coverage. Adjustments may 
not exceed $200 million for fiscal year 2002 or $7.9 billion 
for the period of fiscal years 2002 through 2011. In addition, 
no adjustment may be made if the sum of the cost of this 
legislation taken together with previously enacted legislation 
would reduce the level of the Medicare Hospital Insurance trust 
fund for any fiscal year covered by the budget resolution.
            Section 213: Reserve fund for Veterans' education
      The Senate amendment contains a reserve fund to provide 
additional resources for veterans' education benefits. This 
reserve fund was added by an amendment offered by Senator 
Collins. The Senate amendment permits budget resolution levels 
and committee allocation to be adjusted for legislation 
reported from Senate Committee on Veterans' Affairs (and the 
appropriate committee of the House of Representatives) that 
increases the basic monthly benefit under the G.I. bill. 
Adjustments may not exceed $775 million for fiscal year 2002 or 
$4.3 billion for the period of fiscal years 2002 through 2006 
or $9.9 billion for the period of fiscal years 2002 through 
2011. In addition, no adjustment may be made if the sum of the 
cost of this legislation taken together with previously enacted 
legislation would reduce the level of the Medicare Hospital 
Insurance trust fund for any fiscal year covered by the budget 
resolution.
            Section 214: Reserve fund for payments in lieu of taxes
      The Senate amendment contains a reserve fund to provide 
additional resources for payments in lieu of taxes and for 
refuge revenue sharing. This reserve fund was added by an 
amendment offered by Senator Bingaman. The Senate amendment 
permits budget resolution levels and committee allocation to be 
adjusted for legislation reported from Senate Committee on 
Energy and Natural Resources that fully funds payments in lieu 
of taxes for entitlement lands under chapter 69 of title 31 of 
the U.S. Code. Adjustments may not exceed $353 million for 
fiscal year 2002 or $3.709 billion for the period of fiscal 
years 2002 through 2011. In addition, no adjustment may be made 
if the sum of the cost of this legislation taken together with 
previously enacted legislation would reduce the level of the 
Medicare Hospital Insurance trust fund for any fiscal year 
covered by the budget resolution.
Conference agreement
            Section 211: Medicare Reserve Fund
      Section 211 of the Conference Agreement is in two parts. 
Section (a) retains the language from the House and Senate 
resolutions to accommodate Medicare reform and prescription 
drug legislation. The language is modeled on section 203 of the 
Senate Amendment. The aggregate level of spending for such 
legislation has been assumed within the Function 570 levels and 
the aggregates in the Conference Agreement, but will not be 
allocated to the committees. The Conference Agreement applies 
in both the House of Representatives and the Senate and permits 
the appropriate Budget Committee chairman to adjust committee 
allocations and other appropriate budgetary aggregates and 
allocations for legislation which is reported from the Senate 
Finance Committee and the House Committee on Ways and Means or 
the Committee on Energy and Commerce if the committee report 
legislation providing for Medicare reform and a prescription 
drug benefit provided that the cost of such legislation does 
not exceed $59.1 billion in BA and outlays for the period of 
fiscal years 2003 through 2006 and $300 billion in BA and 
outlays for the period of fiscal years 2003 through 2011. The 
Conferees note that the authority granted under this section 
does not permit the Chairman of the Committee on the Budget to 
make any adjustments for floor amendments offered to unrelated 
legislation.
      The Conferees note that it would be appropriate for the 
cost of such legislation (but no other legislation) to be 
funded in whole or in part from the surpluses of the Hospital 
Insurance Trust Fund.
      Section 211(b) of the Conference Agreement retains the 
language of section 206 of the Senate Amendment which provides 
a reserve fund for legislation regarding payments under 
Medicare to home health providers--with a modification. The 
Conference Agreement applies in both the House of 
Representatives and the Senate and permits the appropriate 
Budget Committee chairman to adjust committee allocations and 
other appropriate budgetary aggregates and allocations for 
legislation which is reported (or for amendments thereto or 
conference report thereon) from the Senate Finance Committee 
and the House Committee on Ways and Means or the Committee on 
Energy and Commerce if the committees report legislation that 
repeals the scheduled 15% reduction in home health payments. 
The aggregate level of spending for such legislation has been 
assumed within the Function 570 levels and the aggregates in 
the Conference Agreement, but will not be allocated to the 
committees. Adjustments may not exceed $4 billion in BA and 
outlays for the period of fiscal years 2003 through 2006 and 
$13.7 billion in BA and outlays for the period of fiscal years 
2003 through 2011. The Conferees note that the authority 
granted under this section does not permit the Chairman of the 
Committee on the Budget to make any adjustments for floor 
amendments offered to unrelated legislation. Subsection (b) 
provides, however, that no adjustments may be made if the cost 
of such legislation, taken together with all previously enacted 
legislation, would reduce the surplus below the level of the 
Medicare HI Trust Fund surplus for any fiscal year covered by 
this budget resolution.
            Section 212: Reserve Fund for the Family Opportunity Act
      Section 212 of the Conference Agreement retains the 
language of section 212 of the Senate Amendment which provides 
a reserve fund for legislation to enable the expansion of 
Medicaid coverage for children with special needs to permit 
their parents to purchase such coverage--with a modification. 
The Conference Agreement applies in both the House of 
Representatives and the Senate and permits the appropriate 
Budget Committee chairman to adjust committee allocations and 
other appropriate budgetary aggregates and allocations for 
legislation which is reported (and amendments thereto, or any 
conference report thereon) from the Senate Finance Committee 
and the House Committee on Ways and Means or the Committee on 
Energy and Commerce if the committees report legislation that 
expands Medicaid coverage for children with special needs to 
permit their parents to purchase such coverage. Adjustments may 
not exceed $227 million in BA and $180 million in outlays for 
fiscal year 2002, $3.035 billion in BA and $2.724 billion in 
outlays for the period of fiscal years 2002 through 2006 and 
$8.337 billion in BA and $7.867 billion in outlays for the 
period of fiscal years 2002 through 2011.
      The Conferees note that the authority granted under this 
section does not permit the Chairman of the Committee on the 
Budget to make any adjustments for floor amendments offered to 
unrelated legislation. Note that the aggregate level of 
spending for such legislation has been assumed within the 
Function 550 levels and the aggregates in the Conference 
Agreement, but will not be allocated to the committees. The 
Conference Agreement provides, however, that no adjustments may 
be made if the cost of such legislation, taken together with 
all previously enacted legislation would reduce the surplus 
below the level of the Medicare HI Trust Fund surplus for any 
fiscal year covered by this budget resolution.
            Section 213: Reserve Fund for Agriculture
      Section 213 of the Conference Agreement includes a new 
reserve fund for legislation reauthorizing the Federal 
Agriculture Improvement and Reform (FAIR) Act of 1996, Title I 
of such act, and other appropriate agriculture production 
legislation. Funding for agriculture was assumed in the budget 
totals but not the allocation. The Conference Agreement applies 
in both the House of Representatives and the Senate and permits 
the appropriate Budget Committee chairman to adjust committee 
allocations and other appropriate budgetary aggregates and 
allocations for legislation which is reported (and amendments 
thereto, or any conference report thereon) from the Senate 
Committee on Agriculture, Nutrition and Forestry and the House 
Committee on Agriculture if the committees report such 
legislation. Adjustments may not exceed $66.15 billion in BA 
and outlays for the period of fiscal years 2003 through 2011.
      The Conferees note that the authority granted under this 
section does not permit the Chairman of the Committee on the 
Budget to make any adjustments for floor amendments offered to 
unrelated legislation. Note that the aggregate level of 
spending for such legislation has been assumed within the 
levels for Function 300 and 350 and within the aggregates in 
the Conference Agreement, but will not be allocated to the 
committees. The Conference Agreement provides however that no 
adjustments may be made if the cost of such legislation, taken 
together with all previously enacted legislation would reduce 
the surplus below the level of the Medicare HI Trust Fund 
surplus for any fiscal year covered by this budget resolution.
            Section 214: Reserve Fund for Additional Tax Cuts and Debt 
                    Reduction
      Section 214 of the Conference Agreement retains the 
language of Section 10 of the House Resolution, which provides 
a mechanism by which the assumed tax cuts or debt levels may be 
adjusted by an increase in CBO's mid session update of the 
surplus. Similar language was included in section 213 of last 
year's budget resolution.
            Section 215: Technical Reserve Fund for Student Loans
      Section 215 of the Conference Agreement includes a new 
technical reserve for legislation that permanently retains the 
interest rate schedule currently in effect for student loans 
and that repeals the switch to a replacement interest rate 
structure scheduled to occur under current law on July 1, 2003. 
This technical reserve would permit extension of the 
overwhelmingly bipartisan agreement reached in the Higher 
Education Amendments of 1998 to support the interest rate 
structure of the student loan programs as it operates today.
      The Conference Agreement permits the appropriate Budget 
Committee chairman to adjust committee allocations and other 
appropriate budgetary aggregates and allocations for 
legislation(reported from the Senate Committee on Health, 
Education, Labor and Pensions and within the jurisdiction of House 
Committee on Education and the Workforce) that repeals an provision 
(from 1993) that, if left in place, would dismantle the existing 
interest rate structure for student loans starting July 1, 2003. The 
adjustment may not exceed $110 million in BA and $100 million in 
outlays for the combined period 2001-2002, nor may it exceed $3.440 
billion in BA and $2.840 billion in outlays for the combined period 
2001-2006, nor may it exceed $7.665 billion in BA and $6.590 billion in 
outlays over the 2001-2011 period. The Conferees note that the 
authority granted under this section does not permit the Chairman of 
the Committee on the Budget to make any adjustments for floor 
amendments offered to unrelated legislation.
            Section 216: Reserve Fund for the Purchase of Health 
                    Insurance by the Uninsured
      Section 216 of the Conference Agreement includes a 
reserve fund for legislation which provides resources to 
facilitate the purchase of health insurance for the uninsured. 
The Conference Agreement applies in both the House of 
Representatives and the Senate and permits the appropriate 
Budget Committee chairman to adjust committee allocations and 
other appropriate budgetary aggregates and allocations 
(including the revenue aggregates) for legislation which is 
reported (and amendments thereto, or any conference report 
thereon) from the Senate Finance Committee and the House 
Committee on Ways and Means or the Committee on Energy and 
Commerce if the committees report legislation that enables the 
uninsured to purchase health insurance. The aggregate level of 
spending for such legislation has been assumed within the 
Function 550 levels and the spending aggregates in the 
Conference Agreement, but will not be allocated to the 
committees. The budget levels and aggregates in Function 550 
assume that the $28 billion is spent over the 2002-2004 period. 
Adjustments may not exceed $28 billion in BA and outlays or $28 
billion in revenues or any combination of spending and revenues 
for the period of fiscal years 2002 through 2011.
      The Conferees note that the authority granted under this 
section does not permit the Chairman of the Committee on the 
Budget to make any adjustments for floor amendments offered to 
unrelated legislation. The Conferees intend, however, to 
provide complete flexibility to the authorizing committees to 
draft such legislation providing spending or tax changes. The 
Conference Agreement provides however that no adjustments may 
be made if the cost of such legislation, taken together with 
all previously enacted legislation would reduce the surplus 
below the level of the Medicare HI Trust Fund surplus for any 
fiscal year covered by this budget resolution.
            Section 217: Reserve Fund for Defense in the Senate
      Section 217 of the Conference Agreement includes a 
mechanism in the Senate to increase the section 302(a) 
allocation (and other appropriate budgetary aggregates) to the 
Committee on Appropriations and the Committee on Armed Services 
of the Senate for 2002 in order to make additional resources 
available in response to the President's National Defense 
Review. The Conference Agreement permits the Chairman of the 
Committee on the Budget to increase the 302(a) allocation only 
when two requirements are satisfied. First, the President must 
submit a specific budget amendment to the Congress requesting 
additional funding for fiscal year 2002 in response to the 
National Defense Review. Second, the Committee on 
Appropriations must have reported an appropriations measure 
which provides funding for such budget amendment.
      The Conferees note that the authority granted under this 
section does not permit the Chairman of the Committee on the 
Budget to make any adjustments for floor amendments offered to 
unrelated legislation. Note that neither the Function 050 
levels nor the aggregates of the resolution contain any 
additional resources for this National Defense Review. 
Therefore, any adjustments made pursuant to the authority in 
this section will reduce the surplus aggregates contained in 
the resolution. The Conference Agreement provides, however, 
that no adjustments may be made if the cost of such 
legislation, taken together with all previously enacted 
legislation would reduce the surplus below the level of the 
Medicare HI Trust Fund surplus for any fiscal year covered by 
this budget resolution.
            Section 218: Strategic Reserve Fund in the House
      Section 218 of the Conference Agreement establishes a 
reserve in the House of Representatives for authorizing or 
appropriations measures for the Department of Defense, 
following the President's National Defense Review; it also may 
be used for legislation that would provide for a prescription 
drug benefit, or for other appropriate legislation. The 
adjustment may only be made for the amount that the relevant 
legislation exceeds the applicable committee's allocation or 
the aggregate provided for in the budget resolution. The 
reserve fund is further limited in that the adjustment may not 
be made if it would cause the on-budget surplus to be less than 
an amount equal to the Medicare Hospital Insurance Trust Fund.
            Additional items
      The Conferees note that the Conference Agreement does not 
include any reserve fund language from section 9 of the House 
resolution regarding additional discretionary funding for 
programs authorized in the Individuals with Disabilities Act.
      The Conferees note that the Conference Agreement does not 
include any reserve fund language from section 208 of the 
Senate Amendment regarding the payment of retired pay and 
veterans' disability benefits to disabled military retirees. 
The Conference Agreement does however retain the Sense of the 
Congress language from section 19 of the House Resolution which 
is set out in section 314.
      The conference report includes a sense of the Congress 
directing the Secretary of Defense to report within 180 days 
after the adoption of this Conference Agreement to the relevant 
congressional defense committees and to the House and Senate 
Budget Committees on the provision of concurrent retirement and 
disability benefits for retired members of the Armed Forces. 
The report shall address the number of individuals retired from 
the Armed Forces who would otherwise be eligible for disability 
compensation under the proposed legislation (S. 170 in the 
Senate and H.R. 303 in the House of Representatives); the 
comparability of the policy toOffice of Personnel Management 
guidelines for civilian Federal retirees; the comparability of this 
proposed policy to prevailing private sector standards; the numbers of 
individuals potentially eligible for concurrent benefits who receive 
other forms of Federal assistance and the cost of that assistance; and 
alternative initiatives that would accomplish the same result as 
concurrent receipt of military retired pay and disability compensation 
at different levels of cost. The Secretary of Defense may submit 
legislation that he considers appropriate.
      Section 314 of the Conference Agreement also includes a 
Sense of Congress requesting the Congressional Budget Office 
and the Office of Management and Budget to report to the Budget 
Committees within 30 days after the adoption of this conference 
report on the risk that providing full concurrent receipt of 
military retired pay and disability compensation under the 
proposed legislation identified above could reduce the on-
budget surplus below the level of the Medicare Hospital 
Insurance Trust Fund.
      The Conferees also note that the Conference Agreement 
does not include any reserve fund language from section 209 of 
the Senate Amendment which purported to provide ``fungibility'' 
between outlays and revenues in reconciliation tax legislation. 
Given the language in section 310(c) of the Budget Act which 
statutorily provides for ``fungibility,'' the language from 
section 209 was superfluous.
      The Conference Agreement does not include the language 
from section 213 of the Senate Amendment regarding increased 
funding for veterans' education benefits. Instead the Conferees 
agreed to include the funding within the Function 700 levels, 
the resolution aggregates, and the allocation to the 
appropriate authorizing committees of the House of 
Representatives and the Senate.
      The Conference Agreement does not include the language 
from section 214 of the Senate Amendment regarding additional 
resources for payments in lieu of taxes and for refuge revenue 
sharing.

                        Miscellaneous Provisions

      In addition to enforcement provisions and reserve funds, 
budget resolutions may contain miscellaneous provisions which 
may effect the level of spending, provide additional 
enforcement mechanisms or additional guidance in interpreting 
the resolution. Subtitle C of Title II of the Conference 
Agreement contains two of these provisions.
House resolution
            Section 11. Application and effect of changes in 
                    allocations and aggregates
      Section 11 establishes the procedures for making 
adjustments pursuant to the reserve funds included in this 
resolution. It provides 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. It also requires the Budget Committee chairman to 
submit any revisions in the budget resolution pursuant to the 
reserves for printing in the Congressional Record.
Senate amendment
            Section 204: Application and effect of changes in 
                    allocations and aggregates
      The Senate amendment contains language which is similar 
to the language found in section 222 of the fiscal year 2001 
budget resolution and clarifies the application and 
effectiveness of the adjustments made by the Chairman of the 
Committee on the Budget pursuant to the ``reserve funds'' set 
out in the resolution.
            Section 205: Exercise of rulemaking powers
      The Senate amendment contains language identical to 
section 234 of the fiscal year 2001 budget resolution and 
states the authority by which Congress adopts the various 
budgetary enforcement rules and procedures for the 
consideration of certain legislation set out in the resolution.
            Section 210: Additional Revenue reductions
      The Senate amendment contains a provision which states 
that revenue reductions set out in the underlying resolution 
should be increased by an additional $69 billion for the period 
of fiscal years 2002 through 2011--in order to provide marriage 
penalty relief. The language was added by an amendment offered 
by Senator Hutchison (TX).
            Section 211: Increase funding for IDEA
      The Senate amendment contains a provision that states 
that the revenue reductions set out in the underlying 
resolution should be reduced by $70 billion for the period of 
fiscal years 2002 through 2011 and an additional $70 billion in 
BA and outlays should be added to Function 500 (Education) over 
that same time period--in order to provide additional resources 
to IDEA. This language was added by an amendment offered by 
Senator Breaux.
Conference agreement
            Section 221: Application and Effect of Changes in 
                    Allocations and Aggregates
      Section 221 of the Conference Agreement retains the 
language of section 11 of the House Resolution (which is 
virtually identical to Section 204 of the Senate Amendment) 
clarifying the process for implementing any adjustment made 
pursuant to the reserve funds and the status of these adjusted 
levels. It further clarifies that the Budget Committee 
determines scoring for purposes of points of order. This 
section also makes clear that levels in the joint statement 
willbe used for purposes of budget enforcement rather than the 
levels in the conference report. Finally the Budget Committee chairmen 
are given the authority to score legislation for enforcement purposes 
based on CBO's updated baseline.
            Section 222: Exercise of Rulemaking Powers
      Section 222 of the Conference Agreement retains the 
language of section 205 of the Senate Amendment. It states the 
authority by which Congress adopts the various budgetary 
enforcement rules and procedures for the consideration of 
certain legislation set out in the budget resolution. An 
identical provision was included in section 234 of last year's 
budget resolution.
      The Conference Agreement does not include the language 
from either section 210 or 211 of the Senate Amendment because 
all assumptions regarding revenues are taken into account 
within the actual revenue aggregates set out in the Conference 
Agreement. In addition, the issue of the level of funding for 
programs authorized in the Individuals with Disabilities 
Education Act is taken into account within the levels for 
Function 500, the spending aggregates and the reserve fund set 
out in section 216 of the Conference Agreement.

             Sense of Congress, House and Senate Provisions

House resolution
      The House budget resolution contains the following Senses 
of the House or Congress that have no legal force but reflect 
the Congress' views on a variety of budget-related issues. The 
section numbers and section headings of these reserve funds are 
as follows:
      Section 14 states a Sense of the House concerning Federal 
pay.
      Section 15 states a Sense of Congress relating to 
Individual Development Accounts and the working poor.
      Section 16 provides a Sense of Congress relating to 
Federal fire prevention assistance.
      Section 17 states a Sense of the House regarding the 
deduction of state sales tax from Federal income taxes.
      Section 18 states a Sense of Congress regarding funding 
for Graduate Medical Education.
Senate amendment
      The Senate amendment contains the following Sense of the 
Senate provisions:
      Section 301 Sense of the Senate on Debt Reduction.
      Section 302 Sense of the Senate on AIDS and Other 
Infectious Diseases.
      Section 303 Sense of the Senate on Consolidated Health 
Centers.
      Section 304 Sense of the Senate on Funding for Department 
of Justice Programs for State and Local Law Enforcement 
Assistance.
      Section 305 Sense of the Senate on United States Coast 
Guard Fiscal Year 2002 Funding.
      Section 306 Sense of the Senate on Strengthening our 
National Food Safety Infrastructure.
      Section 307 Sense of the Senate with Respect to 
Increasing Funds for Renewable Energy Research and Development.
Conference agreement
      The Conference Agreement contains the following Sense of 
the Senate and Sense of Congress provisions:
      Subtitle A.
      Section 301 Sense of the Senate on conservation.
      Section 302 Sense of the Senate on AIDS and other 
infectious diseases.
      Section 303 Sense of the Senate on Consolidated Health 
Centers.
      Section 304 Sense of the Senate on Funding for Department 
of Justice Programs for State and Local Law Enforcement 
Assistance.
      Section 305 Sense of the Senate on United States Coast 
Guard Fiscal Year 2002 Funding.
      Section 306 Sense of the Senate on Strengthening our 
National Food Safety Infrastructure.
      Section 307 Sense of the Senate with Respect to 
Increasing Funds for Renewable Energy Research and Development.
      Subtitle B.
      Section 311 Asset building for the working poor.
      Section 312 Federal Fire prevention assistance.
      Section 313 Funding for graduate medical education at 
children's teaching hospitals.
      Section 314 Concurrent retirement and disability benefits 
to retired members of the armed forces.
      Section 315 Federal Employee Pay.
      Section 316 Sales tax deduction.

                                   Jim Nussle,
                                   John E. Sununu,
                                 Managers on the Part of the House.

                                   Pete Domenici,
                                   Chuck Grassley,
                                   Don Nickles,
                                   Phil Gramm,
                                   Christopher Bond,
                                Managers on the Part of the Senate.

                                
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